Document:

EXECUTIVE
agreement

 

THIS EXECUTIVE AGREEMENT (the “Agreement”)
by and between Hudson Global, Inc. (the “Company”) and Mary Jane Raymond (the “Executive”) is made as of
May 31, 2013 (the “Effective Date”).

 

WHEREAS, the Company and the Executive have
mutually agreed to Executive’s imminent departure from employment with the Company as its Executive Vice President and Chief
Financial Officer and to the following satisfactory transitional arrangements.

 

NOW, THEREFORE, in consideration of this mutual
Agreement, the Company and the Executive hereby agree as follows:

 

1.Departure. Executive’s
duties as Executive Vice President and Chief Financial Officer shall conclude on the Effective Date and Executive’s employment
with the Company shall cease on the Effective Date (the “Departure Date”).

 

2.Consulting Term. During the
90-day period immediately following the Departure Date (the “Consulting Term”), Executive will make herself available
to the Company to provide reasonable assistance in transitioning her duties to her successor, as requested by, and reporting to,
the Company’s Chief Executive Officer (the “Services”), as may be requested from time to time by the Company,
provided that such Services will not be required for more than 20 hours per week during the Consulting Term. The parties intend
and agree that Executive will act during the Consulting Term as an independent contractor and shall not be deemed an employee or
agent of the Company for any purpose whatsoever in performance of the Services. Executive shall have no right or authority to make
or undertake any promise, warranty or representation, to execute any contract or otherwise to assume any obligation or responsibility
in the name or on behalf of the Company. Executive shall not receive any additional consideration for the Services other than the
departure payments contemplated by Section 3 below and shall not be eligible for any Company benefits including, but not limited
to, insurance programs, medical benefits, vacation pay and personal time, except as otherwise provided in Section 5(a) of this
Agreement with respect to Executive’s employment prior to the Departure Date or pursuant to COBRA rights (as defined in Section
3(c) of this Agreement).

 

3.Departure Payments. The Company
will provide the Executive with the following compensation, provided that the Executive has timely executed and not revoked the
Release (as defined in Section 7 of this Agreement) and provided further that the Executive does not violate Section 6 of this
Agreement:

 

(a)The Company will pay the
Executive Four Hundred Sixty-Eight Thousand Seven Hundred Fifty Dollars ($468,750) over a 15-month period commencing on the Departure
Date in accordance with the payroll practices of the Company in effect from time to time, and less such taxes and other deductions
required by applicable law or authorized by the Executive; provided that any amounts that would have been payable hereunder prior
to the time the Release becomes effective (without being revoked) will be accumulated and paid on the first payroll date following
the date the Release becomes effective.

 

    	

    	 

    

 

 

(b) The Executive will not
be eligible for the Senior Management Bonus Plan for 2013.

 

(c)If the Executive elects
to exercise Executive’s rights to continue group medical and dental plan coverage for a limited period (commonly referred
to as “COBRA rights”) within the statutorily prescribed time period commencing immediately following the Departure
Date, and the Executive pays an amount equal to an active employee’s share of the premium for such group medical and dental
benefits, the Company will waive the remaining COBRA continuation premium for the fifteen (15) month period following the Departure
Date. Notwithstanding the foregoing, if the group medical and dental plan coverage are fully-insured and, as a result of the Company’s
subsidization of the Executive’s COBRA premiums, the plans are considered discriminatory such that the Company would be subject
to an excise tax, then in lieu of the foregoing, the Company shall pay the Executive an amount equal to what would have been the
Company’s subsidy amount had the Executive continued COBRA coverage for the fifteen (15) month period.

 

(d)The Company will pay the
Executive the value of all the Executive’s earned, but unused, vacation days through the Departure Date in accordance with
Company policy; provided that any such payment will be made within 30 days following the Departure Date.

 

(e)The Company confirms that
all the Executive’s shares of stock of the Company held in the Hudson Global, Inc. 401(k) savings plan are fully vested as
of the Departure Date. All the Executive’s non-vested shares of restricted stock of the Company that were previously granted
to the Executive with the exception of the May 14, 2013 grant, and which were scheduled to vest based on certain performance and
service conditions, shall be fully vested as of the Departure Date. These consist of 48,155 shares, or:

 

(i)The remaining 14,667 shares
of the 2009 grant which vest on stock price achievement, with the $9/share and $12/share tranches still awaiting vesting.

 

(ii)The remaining 22,182 shares
of the 2011 grant, the performance conditions for which were met in February 2012 and for which the final one-third would vest
in February 2014.

 

(iii)The remaining 11,306 shares
of the 2012 grant, the performance conditions for which were met in March 2013 and for which the final two-thirds would vest over
time.

 

(f)The Company shall pay for
outplacement services, to be provided by an outplacement firm chosen by the Executive, for up to 12 months following the Departure
Date; provided that the aggregate cost to the Company of such services shall not exceed $20,000 and that the Executive provides
reasonable documentation of the costs of such outplacement services.

 

    	-2-

    	 

    

 

 

4.Obligations of Executive at Departure.
Executive hereby resigns as an officer or director of any subsidiaries of the Company effective as of the Departure Date and represents
and warrants that Executive will, on or before the Departure Date, provide any resignations from such other positions as the Company
deems necessary. Executive further represents and warrants that Executive will, on or before such date, deliver to the Company
the original and all copies of all documents, records, and property of any nature whatsoever which are in Executive’s possession
or control and which are the property of the Company or which relate to Confidential Information (as described below), or to the
business activities, facilities, or customers of the Company, including any records (electronic or otherwise), documents or property
created by the Executive.

 

5.Other Agreements. Except as
provided below, all the terms of the agreement between the Company and the Executive are embodied in this Agreement and it fully
supersedes any and all prior agreements or understandings, written or oral, including any notice periods contained therein, between
the Executive and the Company, including, but not limited to, the Executive Employment Agreement, as amended and restated effective
February 7, 2012 between the Company and the Executive (the “Employment Agreement”):

 

(a)This Agreement does not
limit or restrict in any way Executive’s existing rights or obligations under the Company’s employee benefit plans,
including any retirement plan, retirement savings plan, or group medical plan.

 

(b)Except as provided in Section
3(e) of this Agreement, this Agreement does not limit or restrict in any way Executive’s rights and obligations under any
stock options and/or restricted stock awards previously issued to Executive.

 

6.Restrictive Covenants. In consideration
of Executive’s position with the Company immediately prior to the Departure Date, the business relationships the Executive
has developed while employed by the Company, and the Executive’s knowledge of the Company’s business affairs including
the Confidential Information (as defined below), Executive agrees to the following restrictive covenants (the “Restrictive
Covenants”), which are a continuation of certain covenants previously agreed to by the Executive in Attachment A to the Employment
Agreement:

 

(a)Non-Solicitation of
Clients. During the 15-month period following the Departure Date (the "Restricted Period"), the Executive agrees
that Executive will not, directly or indirectly, unless such action is waived in writing by the Chief Executive Officer of the
Company, for the Executive’s benefit or on behalf of any person, corporation, partnership or entity whatsoever, call on,
solicit, provide services for, interfere with or endeavor to entice away from the Company any client to whom the Executive provides
services at any time during the 12-month period proceeding the Departure Date or during the Consulting Term, or any prospective
client to whom the Executive had made a presentation at any time during the 12-month period preceding the Departure Date or during
the Consulting Term. Notwithstanding the foregoing, nothing in this Agreement is intended to prevent the Executive from being employed
by any of the Company’s clients in a Chief Financial Officer position in which the Executive is not soliciting clients of
the Company.

 

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(b)Non-Hire of Employees.
During the Restricted Period, the Executive agrees that Executive will not, directly or indirectly, unless such action is waived
in writing by the Chief Executive Officer of the Company, for the Executive’s benefit or on behalf of any person, corporation,
partnership or entity whatsoever, hire, attempt to hire, or solicit for hire any employee of the Company or its subsidiaries, or
any individual who was employed by the Company or its subsidiaries, as of the last day of the Executive’s employment with
the Company.

 

(c)No Participation in
Business Combinations with Company. During the Restricted Period, the Executive agrees that Executive will not make, or participate
with any other person who makes, any proposal for a business combination involving the Company or the acquisition of the Company.

 

(d)Confidentiality.
Executive agrees that during the Restricted Period, Executive shall maintain the confidentiality of any and all information about
the Company which is not generally known or available outside the Company, including without limitation, strategic plans, technical
and operating know-how, business strategy, trade secrets, customer information, business operations and other proprietary information
(“Confidential Information”), and Executive will not, directly or indirectly, disclose any Confidential Information
to any person or entity, or use any Confidential Information, whether for the benefit of Executive or the benefit of any new employer
or any other person or entity, or in any other manner that is detrimental to or inconsistent with any interest of the Company.
If Executive receives notice that Executive must disclose Confidential Information pursuant to a subpoena or other lawful process,
Executive must notify the Company’s General Counsel immediately. Except as permitted in writing by the Company, Executive
agrees not to discuss this Agreement publicly and will disclose its contents only to Executive’s attorneys, financial consultants,
and immediate family members. The provisions of the forgoing sentence shall not apply to any truthful statement required to be
made by Executive in any legal proceeding or government or regulatory investigation, provided, however, that prior to making such
statement Executive will give the Company reasonable notice and, to the extent Executive is legally entitled to do so, afford the
Company the ability to seek a confidentiality order.

 

(e)Acknowledgement of Reasonableness
of Restrictions. Executive acknowledges and agrees that the scope and duration of these Restrictive Covenants are reasonable
and necessary to protect the legitimate business interests of the Company. Executive acknowledges that Executive has received substantial
compensation from the Company in consideration for these Restrictive Covenants and that Executive’s general skills and abilities
are such that Executive can be gainfully employed and that this Agreement will not prevent Executive from earning a living following
Executive’s separation from service with the Company.

 

    	-4-

    	 

    

 

 

(f)Company Entitled to
Injunctive Relief. Executive agrees that the Company will suffer irreparable damage in the event the provisions of this Section
are breached and that Executive’s acceptance of the provisions of this Section was a material factor in Executive’s
and the Company’s decision to enter into this Agreement. Executive further agrees that the Company shall be entitled as a
matter of right to injunctive relief to prevent a breach by Executive. Resort to such equitable relief, however, shall not constitute
a waiver of any other rights or remedies the Company may have. The provisions of this Section shall not apply to any truthful statement
required to be made by Executive in any legal proceeding or government or regulatory investigation, provided, however, that prior
to making such statement Executive will give the Company reasonable written notice and, to the extent Executive is legally entitled
to do so, afford the Company the ability to seek a confidentiality order. Nothing herein modifies or reduces Executive’s
obligation to comply with applicable laws relating to trade secrets, confidential information, or unfair competition.

 

7.Release. The Executive and
the Company shall execute the General Release attached hereto as Exhibit A (the “Release”) on the Departure
Date.

 

8.No Disparagement. The Executive
agrees that, except as may be required by the lawful order of a court or agency of competent jurisdiction, the Executive will not
take any action or make any statement or disclosure, written or oral, that is intended or reasonably likely to disparage the Company
or any of its affiliates, or any of their past or present employees, officers or directors, and the Company will not knowingly
disparage, criticize or otherwise make any derogatory statements regarding the Executive. For purposes of this Section 8 only,
the term “Company” means only the Company’s executive officers and directors.

 

9.Power
of Attorney. The Company hereby revokes any and all powers of attorney the Company may have granted the Executive during the Executive’s
employment with the Company.

 

10.Expenses
and Insurance. With respect to services provided by the Executive to the Departure Date and pursuant to this Agreement, the
Company shall (a) reimburse Executive for reasonable expenses incurred in the performance of Executive’s services, (b) maintain
Director and Officer insurance coverage for the Executive consistent with that provided to other Company directors and officers,
and (c) provide Executive with full indemnification as permitted by law. 

 

11.Regulatory
Notices. The Company confirms that to the best of its knowledge the Company has not received from any regulatory agency any
notice pertaining to any regulatory matter related to the Executive. 

 

12.Taxes.
All payments made herein or the value of all property transferred to Executive hereunder shall be subject to applicable payroll
and withholding taxes. This Agreement shall be construed and administered in compliance with Section 409A of the Internal Revenue
Code. The parties agree to amend the Agreement as may be necessary to avoid application of Code Section 409A excise taxes or penalties
to payments made pursuant to this Agreement. 

 

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13.Severability. In the event
any one or more of the provisions of this Agreement (or any part thereof) shall for any reason be held to be invalid, illegal or
unenforceable, the remaining provisions of this Agreement (or part thereof) shall be unimpaired, and the invalid, illegal or unenforceable
provision (or part thereof) shall be replaced by a provision (or part thereof), which, being valid, legal and enforceable, comes
closest to the intention of the parties underlying the invalid, illegal or unenforceable provisions. However, in the event that
any such provision of this Agreement (or part thereof) is adjudged by a court of competent jurisdiction to be invalid, illegal
or unenforceable, but that the other provisions (or part thereof) are adjudged to be valid, legal and enforceable if such invalid,
illegal or unenforceable provision (or part thereof) were deleted or modified, then this Agreement shall apply with only such deletions
or modifications, or both, as the case may be, as are necessary to permit the remaining separate provisions (or part thereof) to
be valid, legal and enforceable.

 

14.Governing Law. This Agreement
shall be governed by the substantive laws of the State of New York without regard to its conflict of laws provisions or the laws
of any other jurisdiction in which the Executive resides or performs any duties hereunder, or where any violation of the Agreement
occurs.

 

15.Successors; Binding Agreement.
The Company shall have the right to assign its obligations under this Agreement to any entity that acquires all or substantially
all of the assets of the Company and continues the Company’s business. The rights and obligations of the Company under this
Agreement shall inure to the benefit of and shall be binding upon the Company and its successors and assigns. The Executive may
not assign the Executive’s rights or delegate the Executive’s obligations hereunder.

 

16.Amendment; Waiver. This Agreement
may be amended or modified only by a written instrument executed by the Company and the Executive. No provision of this Agreement
may be waived or discharged unless such waiver or discharge is in writing and signed by the Chief Executive Officer of the Company.
Any failure by Executive or the Company to enforce any of the provisions of this Agreement shall not be construed to be a waiver
of such provisions or any right to enforce each and every provision in the future. A waiver of any breach of this Agreement shall
not be construed as a waiver of any other or subsequent breach.

 

THE COMPANY AND THE EXECUTIVE ACKNOWLEDGE
THAT (A) EACH HAS CAREFULLY READ THIS AGREEMENT, (B) EACH UNDERSTANDS ITS TERMS, (C) ALL UNDERSTANDINGS AND AGREEMENTS BETWEEN
THE COMPANY AND THE EXECUTIVE RELATING TO THE SUBJECTS COVERED IN THE AGREEMENT ARE CONTAINED IN IT, AND (D) EACH HAS ENTERED INTO
THIS AGREEMENT VOLUNTARILY AND NOT IN RELIANCE ON ANY PROMISES OR REPRESENTATIONS BY THE OTHER, OTHER THAN THOSE CONTAINED IN THIS
AGREEMENT ITSELF.

 

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IN WITNESS WHEREOF, the parties hereto
have executed this Agreement.

 

	Mary Jane Raymond	 	Hudson Global, Inc.	 
	 	 	 	 	 
	/s/ Mary Jane Raymond	 	By:	/s/ Manuel Marquez Dorsch	 
	Signature of Executive	 	 	Manuel Marquez Dorsch,	 
		 	 	Chairman and Chief Executive Officer	 
	 	 	 	 	 
	 	 	 	 	 
	June 4, 2013	 	 	June 4, 2013	 
	Date	 	 	Date	 

 

 

 

    	-7-

    	 

    

EXHIBIT A

 

GENERAL RELEASE

 

		1.	In consideration of the substantial compensation provided by Hudson Global, Inc. (the “Company”) under the Executive
Agreement (the “Agreement”) entered into by and between the Company and Mary Jane Raymond (“Executive”)
dated as of May 31, 2013, for the benefit of Executive, including the payments and other benefits that are to be provided to Executive
pursuant to the Agreement, Executive, on behalf of Executive, Executive’s spouse, heirs, executors, administrators, agents,
successors, assigns and representatives of any kind (hereinafter collectively referred to as the “Releasors”) confirm
that Releasors have, as of the date set forth below (the “Effective Date”), released the Company, and each of its subsidiaries,
affiliates, their employees, successors, assigns, executors, trustees, directors, advisors, agents and representatives, and all
their respective predecessors and successors (hereinafter collectively referred to as the “Releasees”), from any and
all actions, causes of action, charges, debts, liabilities, accounts, demands, damages and claims of any kind whatsoever arising
prior to the Effective Date, including, but not limited to, those arising out of the changes in the terms and conditions of Executive’s
relationship with the Company described in the Agreement.

 

		2.	Executive also releases and waives any claim or right to further compensation, benefits, damages, penalties, attorney’s
fees, costs or expenses of any kind from the Company or any of the other Releasees based on events occurring on or prior to the
Effective Date, except for the specific compensation and benefits described in Section 3 and Section 5 of the Agreement.

 

		3.	Executive further agrees not to file, pursue, or participate in any lawsuits of any kind in either state or federal court against
any of the Releasees with respect to any claim released herein, including any claim arising out of or in connection with the employment
of Executive by the Company or the termination of such employment (other than pursuing a claim for unemployment compensation benefits
to which Executive may be entitled).

 

		4.	This General Release specifically includes, but is not limited to, a release of any and all claims pursuant to state or federal
wage payment laws and those arising under any labor, employment discrimination (including, without limitation, the Age Discrimination
in Employment Act of 1967, as amended; Title VII of the Civil Rights of Act of 1964, as amended; the Rehabilitation Act of 1973;
the Reconstruction Era Civil Rights Acts, 42 U.S.C. Sec. 1981 – 1988; the Civil Rights Act of 1991; the Americans with Disabilities
Act; the New York Human Rights Law, as amended; state or federal family and/or medical leave acts), contract or tort laws, equity
or public policy, wrongful termination, retaliation, defamation, misrepresentation, invasion of privacy, or negligence standard,
whether known or unknown, certain or speculative, which against any of the Releasees, any of the Releasors ever had or now has.

 

		5.	Notwithstanding the foregoing, this General Release does not waive rights, if any, Executive or Executive’s successors
and assigns may have under or pursuant to, or release any member of Releasees from obligations, if any, it may have to them or
to their successors and assigns on claims arising out of, related to or asserted under or pursuant to the Agreement or any indemnity
agreement or obligation contained in or adopted or acquired pursuant to any provision of the charter or by-laws of the Company
or its subsidiaries or affiliates or in any applicable insurance policy carried by the Company or its affiliates for any matter
which arises or may arise after the Effective Date in connection with Executive’s employment with the Company. Further, Executive
is not waiving, releasing or giving up any claim for vested benefits under any retirement plan or any right to continued benefits
in accordance with the Consolidated Omnibus Budget Reconciliation Act of 1985.

 

    	-8-

    	 

    

 

 

		6.	The Company (and all other Releasees) hereby releases Executive (and the other Releasors) from any and all actions, causes
of action, charges, debts, liabilities, accounts, demands, damages and claims of any kind whatsoever arising prior to the Effective
Date except as provided by law. This General Release does not release Executive or the Company from their respective ongoing obligations
under the Agreement.

 

		7.	Executive hereby acknowledges that Executive has up to twenty-one (21) days to review this General Release from the date
of the Agreement and Executive has been advised to review it with an attorney of Executive’s choice. Executive further understands
that the twenty-one (21) day review period ends when Executive signs this General Release. Executive also has seven (7) days
after Executive signs this General Release to revoke by so notifying the Company in writing. Failure to provide the Company with
this General Release does not delay occurrence of the Departure Date (as defined in the Agreement).

 

		8.	Executive acknowledges that Executive’s eligibility for the payments and other benefits described in Section 3 of the
Agreement is contingent on Executive’s signing and returning this General Release to the Company in a timely manner and on
its taking effect thereafter in accordance with its terms.

 

		9.	Executive acknowledges that Executive has carefully read this General Release, knows and understands the contents hereof and
its binding legal effect. Executive signs the same of Executive’s own free will and act, and it is Executive’s intention
that Executive be legally bound thereby.

 

IN WITNESS WHEREOF, the parties
hereto have executed this General Release this 4th day of June, 2013.

 

 

	Mary Jane Raymond	 	Hudson Global, Inc.	 
	 	 	 	 	 
	/s/ Mary Jane Raymond	 	By:	/s/ Manuel Marquez Dorsch	 
	Signature	 	 	Manuel Marquez Dorsch,	 
		 	 	Chairman and Chief Executive Officer	 

 

    	-9-SECURITIES PURCHASE AGREEMENT

 

THIS SECURITIES
PURCHASE AGREEMENT (this “Agreement”), dated as of June 4, 2013, by and among American Realty Capital Properties,
Inc., a Maryland corporation (the “Company”), and each investor identified on the signature pages hereto (individually,
an “Investor” and collectively, the “Investors”).

 

BACKGROUND

 

A.           The
Company and each Investor are executing and delivering this Agreement in reliance upon the exemption from registration afforded
by Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 of
Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”)
under the Securities Act.

 

B.           Each
Investor, severally and not jointly, wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in
this Agreement, (i) that aggregate number of shares of the common stock, par value $0.01 per share, of the Company (the “Common
Stock”), set forth on such Investor’s signature page to this Agreement (which aggregate amount for all Investors
together shall be 29,411,764 shares of Common Stock and shall collectively be referred to herein as the “Common Shares”).

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and the Investors agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1 Definitions.
In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act.

 

“Agent”
has the meaning set forth in Section 3.1(h).

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Business
Day” means any day other than Saturday, Sunday, any day which shall be a federal legal holiday in the United States or
any day on which banking institutions in The State of New York are authorized or required by law or other governmental action to
close.

 

    	 

    	 

    

 

“CapLease
Acquisition” means the Company’s pending acquisition of CapLease, Inc. pursuant to that certain Agreement
and Plan of Merger, dated as of March 28, 2013, between the Company, CapLease, Inc. and certain of their subsidiaries.

 

“Closing”
means the closing of the purchase and sale of the Common Shares pursuant to Section 2.1.

 

“Closing
Date” means the date and time of the Closing, which shall occur on the third (3rd) Business Day following
the date of this Agreement or such other date and time as is mutually agreed to by the Company and each Investor.

 

“Closing Price”
means, for any date, the closing price per Common Share for such date (or, if not a Trading Day, the nearest preceding date that
is a Trading Day) on the primary Eligible Market or exchange or quotation system on which the Common Stock is then listed or quoted.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Company”
has the meaning set forth in the Preamble.

 

“Company
Counsel” means Proskauer Rose LLP, counsel to the Company.

 

“Common Shares”
has the meaning set forth in the Preamble.

 

“Common Stock”
has the meaning set forth in the Preamble.

 

“Contingent
Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect
to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring
such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will
be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will
be protected (in whole or in part) against loss with respect thereto.

 

“Convertible
Securities” means any stock or securities (other than Options) convertible into or exercisable or exchangeable for Common
Stock.

 

“Disclosure
Materials” has the meaning set forth in Section 3.1(f).

 

“DTC”
means The Depository Trust Company.

 

“Effective
Date” means the date that the Registration Statement is first declared effective by the SEC.

 

“Effectiveness
Period” has the meaning set forth in Section 6.1(b).

 

“8-K Filing”
has the meaning set forth in Section 4.5. 

 

    	-2-

    	 

    

 

“Eligible
Market” means any of the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global
Market, the NASDAQ Capital Market or OTC Bulletin Board.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Filing
Date” means the date that is fifteen (15) days after the Closing Date or, if such date is not a Business Day, the next
date that is a Business Day.

 

“GAAP”
has the meaning set forth in Section 3.1(f).

 

“GE Portfolio
Acquisition” means the Company’s pending acquisition of a property portfolio from certain subsidiaries of GE Capital
pursuant to that certain purchase and sale agreement dated May 31, 2013.

 

“Indebtedness”
of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed
as the deferred purchase price of property or services (other than trade payables entered into in the ordinary course of business),
(C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (D)
all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection
with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other
title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds
of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are
limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which,
in connection with generally accepted accounting principles, consistently applied for the periods covered thereby, is classified
as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest
or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any Person, even though
the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all
Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G)
above.

 

“Indemnified
Party” has the meaning set forth in Section 6.4(c).

 

“Indemnifying
Party” has the meaning set forth in Section 6.4(c).

 

“Insolvent”
has the meaning set forth in Section 3.1(g). 

 

“Investor”
has the meaning set forth in the Preamble. 

 

    	-3-

    	 

    

  

“Lien”
means any lien, charge, claim, security interest, encumbrance, right of first refusal or other restriction.

 

“Losses”
means any and all losses, claims, damages, liabilities, settlement costs and expenses, including, without limitation, reasonable
attorneys’ fees.

 

“Material
Adverse Effect” means (i) a material adverse effect on the results of operations, assets, business, prospects or financial
condition of the Company and the Subsidiaries taken as a whole on a consolidated basis or (ii) material and adverse impairment
of the Company's ability to perform its obligations under any of the Transaction Documents, provided, that, none of the following
alone shall be deemed, in and of itself, to constitute a Material Adverse Effect: (i) a change in the market price or trading volume
of the Common Stock or (ii) changes in general economic conditions or changes affecting the industry in which the Company operates
generally (as opposed to Company-specific changes) so long as such changes do not have a disproportionate effect on the Company
and its Subsidiaries taken as a whole.

 

“Options”
means any outstanding rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

 

“Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
a government or any department or agency thereof and any other legal entity.

 

“Preferred
Stock Purchase Agreement” means that certain Convertible Preferred Stock Purchase Agreement, dated as of the date hereof,
between the Company and certain Investors.

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, a partial proceeding, such as a deposition),
whether commenced or threatened in writing.

 

“Prospectus”
means the prospectus included in the Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated
under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of
any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to the
Prospectus including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference
in such Prospectus.

 

“Registrable
Securities” means the Common Shares issued or issuable pursuant to the Transaction Documents, together with any securities
issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event with respect to the
foregoing.

 

“Registration
Statement” means each registration statement required to be filed under Article VI with respect to the Registrable
Securities, including (in each case) the Prospectus, amendments and supplements to such registration statement or Prospectus, including
pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated
by reference in such registration statement.

 

    	-4-

    	 

    

 

“Regulation
D” has the meaning set forth in the Preamble. 

 

“Rule 144,”
“Rule 415,” and “Rule 424” means Rule 144, Rule 415 and Rule 424,
respectively, promulgated by the SEC pursuant to the Securities Act, as such rules may be amended from time to time, or any similar
rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule.

 

“SEC”
has the meaning set forth in the Preamble.

 

“SEC Reports”
has the meaning set forth in Section 3.1(f).

 

“Securities
Act” has the meaning set forth in the Preamble. 

 

“Selling
Expenses” means all underwriting discounts, selling fees or commissions and stock transfer taxes applicable to any sale
of Registrable Securities.

 

“Shares”
means shares of the Company’s Common Stock.

 

“Short Sales”
has the meaning set forth in Section 3.2(i).

 

“Subsidiary”
means any direct or indirect subsidiary of the Company.

 

“Trading Day”
means (i) a day on which the Common Stock is traded on a Trading Market (other than the OTC Bulletin Board), or (ii) if the Common
Stock is not listed or quoted on a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded
in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock is not listed or quoted on
any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by the Pink Sheets LLC
(or any similar organization or agency succeeding to its functions of reporting prices); provided, that, in the event that the
Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.

 

“Trading Market”
means whichever of the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ
Capital Market or OTC Bulletin Board on which the Common Stock is listed or quoted for trading on the date in question.

 

“Transaction”
has the meaning set forth in Section 3.2(i).

 

“Transaction
Documents” means this Agreement, the schedules and exhibits attached hereto and the Transfer Agent Instructions.

 

    	-5-

    	 

    

  

“Transfer
Agent” means Computershare Trust Company, N.A., or any successor transfer agent for the Company.

 

“Transfer
Agent Instructions” means, with respect to the Company, the Irrevocable Transfer Agent Instructions, in the form of Exhibit E,
executed by the Company and delivered to and acknowledged in writing by the Transfer Agent.

 

ARTICLE II

PURCHASE AND SALE

 

2.1 Closing.
Subject to the terms and conditions set forth in this Agreement, at the Closing the Company shall issue and sell to each
Investor, and each Investor shall, severally and not jointly, purchase from the Company, such number of Common Shares (either
in certificated or book-entry form, as the Investor and the Company shall agree) for the price set forth on such
Investor’s signature page to this Agreement. The date and time of the Closing and shall be 10:00 a.m., New York City
Time, on the Closing Date. The Closing shall take place at the offices of Company Counsel.

 

2.2 Closing
Deliveries.

 

(a) At
the Closing, the Company shall deliver or cause to be delivered to each Investor the following:

 

(i)          a
copy of the Company’s irrevocable instructions to the Transfer Agent instructing the Transfer Agent to (A) if physical certificates
are required by the Investor, deliver, on an expedited basis, one or more stock certificates or (B) if physical certificates are
not required by the Investor, make a book-entry record through the facilities of DTC, in each case free and clear of all restrictive
and other legends (except as expressly provided in Section 4.1(b) hereof) and evidencing such number of Common Shares
set forth on such Investor’s signature page to this Agreement, registered in the name of such Investor;

 

(ii)         duly
executed Transfer Agent Instructions acknowledged by the Company’s transfer agent;

 

(iii)        a
legal opinion of Company Counsel and Venable LLP, the Company’s Maryland counsel, in the form of Exhibits C-1
and C-2, respectively, executed by such counsel and delivered to the Investors;

 

(iv)        a
certificate of the Secretary of the Company, dated as of the Closing Date, (a) certifying the resolutions adopted by the Board
of Directors of the Company approving the transactions contemplated by this Agreement and the other Transaction Documents and the
issuance of the Common Shares, (b) certifying the current versions of the certificate of incorporation, as amended, and by-laws
of the Company and (c) certifying as to the signatures and authority of persons signing the Transaction Documents and related
documents on behalf of the Company; and

 

    	-6-

    	 

    

 

(v)         a
certificate of the Chief Executive Officer or Chief Financial Officer of the Company, dated as of the Closing Date, certifying
to the fulfillment of the conditions specified in Section 5.2.

 

(b) At
the Closing, each Investor shall deliver or cause to be delivered to the Company the purchase price set forth on such Investor’s
signature page to this Agreement in United States dollars and in immediately available funds, by wire transfer to an account designated
in writing to such Investor by the Company for such purpose.

 

(c) At
the Closing, the Company and each Investor shall execute and deliver a contingent value rights agreement, substantially in the
form of Exhibit D (“Contingent Value Rights Agreement”), which shall provide that such Investor shall
be issued a number of contingent value rights equal to the number of Common Shares issued to such Investor hereunder.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

3.1 Representations
and Warranties of the Company. The Company hereby represents and warrants as of the date hereof (except for the
representations and warranties that speak as of a specific date, which shall be made as of such date) to the Investors as
follows:

 

(a) Organization
and Qualification. The Company and each “significant subsidiary” (as such term is defined in Rule 1-02 of Regulation
S-X of the Securities Act) (a “Significant Subsidiary”) of which the Company owns, directly or indirectly, an
interest, if any, is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its
incorporation, with the requisite power and legal authority to own and use its properties and assets and to carry on its business
as currently conducted. The Company is not in violation of any of the provisions of its certificate or articles of incorporation,
bylaws or other organizational or charter documents. The Company is duly qualified to do business and is in good standing as a
foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it
makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would
not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.

 

(b) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by each of the Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder.
The execution and delivery of each of the Transaction Documents to which it is a party by the Company and the consummation by it
of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part of
the Company and no further consent or action is required by the Company, its Board of Directors or its stockholders. Each of the
Transaction Documents to which it is a party has been (or upon delivery will be) duly executed by the Company and is, or when delivered
in accordance with the terms hereof, will constitute, the valid and binding obligation of the Company enforceable against the Company
in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

    	-7-

    	 

    

 

(c) No
Conflicts. The execution, delivery and performance of the Transaction Documents to which it is a party by the Company and
the consummation by the Company of the transactions contemplated hereby and thereby do not, and will not, (i) conflict
with or violate any provision of the Company’s certificate or articles of incorporation, bylaws or other organizational
or charter documents, (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or
without notice, lapse of time or both) of, or result in the creation of any lien, security interest, charge or encumbrance
upon any of the properties or assets of the Company or any Significant Subsidiary under the terms or conditions of, any
agreement, credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which
the Company or any Significant Subsidiary is a party or by which any property or asset of the Company is bound, or affected,
except to the extent that such conflict, default, termination, amendment, acceleration or cancellation right would not
reasonably be expected to have a Material Adverse Effect, or (iii) result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or any
Significant Subsidiary is subject (including, assuming the accuracy of the representations and warranties of the Investors
set forth in Section 3.2 hereof, federal and state securities laws and regulations and the rules and regulations of
any self-regulatory organization to which the Company or its securities are subject, including all applicable Trading
Markets), or by which any property or asset of the Company or any Significant Subsidiary is bound or affected, except to the
extent that such violation would not reasonably be expected to have a Material Adverse Effect. The issuance of shares of the
Company’s Series C Convertible Preferred Stock (the “Series C Preferred Stock”) pursuant to
the Preferred Stock Purchase Agreement will not conflict with, or constitute a default (or an event that with notice or lapse
of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument
(evidencing a Company debt or otherwise) or other understanding to which the Company is a party or by which any property or
asset of the Company is bound, or affected. Other than in connection or in compliance with the provisions of the
Securities Act, no notice to, filing with, exemption or review by, or authorization, consent, approval of, any governmental
authority is necessary for the consummation of the transactions contemplated by the Transaction Documents.

 

(d) The
Common Shares. The Common Shares are duly authorized and, when
issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable,
free and clear of all Liens and will not be subject to preemptive or similar rights of stockholders (other than those imposed by
the Investors).

 

    	-8-

    	 

    

 

(e) Capitalization.
Except as contemplated by the Preferred Stock Purchase Agreement, the authorized capital stock of the Company is as set forth
in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 and filed with the SEC on May 6,
2013. As of the date hereof, (i) 154,888,410 shares of Common Stock are issued and outstanding, (ii) 545,454 shares of the
Company’s Series A Convertible Preferred Stock are issued and outstanding, (iii) 283,018 shares of the Company’s
Series B Convertible Preferred Stock are issued and outstanding and (iv) no shares of Manager’s Stock are issued and
outstanding. As of the Closing, (i) 184,300,174 shares of Common Stock will be issued and outstanding, (ii) 545,454 shares of
the Company’s Series A Convertible Preferred Stock will be issued and outstanding, (iii) 283,018 shares of the
Company’s Series B Convertible Preferred Stock will be issued and outstanding, (iv) 28,398,213 shares of the Series C
Preferred Stock will be issued and outstanding and (v) no shares of Manager’s Stock will be issued and outstanding.
Additionally, as of the date hereof, 9,612,586 common units of limited partnership interest in the form of “OP
Units” in ARC Properties Operating Partnership, L.P. were issued and outstanding. As of the date hereof, and as of the
Closing, all outstanding shares of capital stock are duly authorized, validly issued, fully paid and nonassessable and have
been issued in compliance in all material respects with all applicable securities laws. Except as disclosed in the SEC
Reports filed prior to the date hereof, the Company did not have outstanding at March 31, 2013 any other Options, script
rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations
convertible into or exercisable or exchangeable for, or entered into any agreement giving any Person any right to subscribe
for or acquire, any Common Shares, or securities or rights convertible or exchangeable into Common Shares. Except as
disclosed in SEC Reports, and except for customary adjustments as a result of stock dividends, stock splits, combinations
of shares, reorganizations, recapitalizations, reclassifications or other similar events, there are no anti-dilution or price
adjustment provisions contained in any security issued by the Company (or in any agreement providing rights to security
holders) and the issuance and sale of the Common Shares will not obligate the Company to issue Common Shares or other
securities to any Person (other than the Investors) and will not result in a right of any holder of securities to adjust the
exercise, conversion, exchange or reset price under such securities. To the knowledge of the Company, except as disclosed in
the SEC Reports filed prior to the date hereof and any Schedules 13D or 13G filed with the SEC pursuant to Rule 13d-1 of the
Exchange Act by reporting persons or in Schedule 3.1(e) hereto, no Person or group of related Persons beneficially owns (as
determined pursuant to Rule 13d-3 under the Exchange Act), or has the right to acquire, by agreement with or by obligation
binding upon the Company, beneficial ownership of in excess of 5% of the outstanding Common Stock.

  

    	-9-

    	 

    

 

(f) SEC
Reports; Financial Statements. Except as set forth in SEC Reports filed prior to the date hereof or on Schedule
3.1(f) hereto, the Company has filed all reports required to be filed by it under the Exchange Act, including pursuant to
Section 13(a) or 15(d) thereof, for the 12 months preceding the date hereof on a timely basis or has received a valid
extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension and has
filed all reports required to be filed by it under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof. Such reports required to be filed by the Company under the Exchange Act,
including pursuant to Section 13(a) or 15(d) thereof, together with any materials filed or furnished by the Company under the
Exchange Act, whether or not any such reports were required, including the exhibits thereto and documents incorporated by
reference therein, being collectively referred to herein as the “SEC Reports” and, together with this
Agreement and the Schedules to this Agreement, the “Disclosure Materials”. As of their respective dates
(or, if amended or superseded by a filing prior to the date hereof, then on the date of such filing), the SEC Reports filed
by the Company complied in all material respects with the requirements of the Securities Act and the Exchange Act and the
rules and regulations of the SEC promulgated thereunder, and none of the SEC Reports, when filed (or, if amended
or superseded by a filing prior to the date hereof, then on the date of such filing) by the Company, contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading. The financial
statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements
and the rules and regulations of the SEC with respect thereto as in effect at the time of filing (or, if amended or
superseded by a filing prior to the Closing Date, then on the date of such filing). Such financial statements have been
prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the
periods involved (“GAAP”), except as may be otherwise specified in such financial statements, the notes
thereto and except that unaudited financial statements may not contain all footnotes required by GAAP or may be condensed or
summary statements, and fairly present in all material respects the consolidated financial position of the Company and its
consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then
ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments. Except for agreements related to
the GE Portfolio Acquisition, all material agreements to which the Company is a party or to which the property or assets of
the Company are subject are included as part of or identified in the SEC Reports, to the extent such agreements are required
to be included or identified pursuant to the rules and regulations of the SEC.

 

    	-10-

    	 

    

 

(g) Material
Changes; Undisclosed Events, Liabilities or Developments; Solvency. Since the date of the latest audited financial statements
included within the SEC Reports, except as disclosed in the SEC Reports (other than forward-looking statements, risk factors and
others statements cautionary in nature) filed prior to the date hereof or in Schedule 3.1(g) hereto, (i) there has
been no event, occurrence or development that, individually or in the aggregate, has had or that would result in a Material Adverse
Effect, (ii) the Company has not incurred any material liabilities other than (A) trade payables and accrued expenses
incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected
in the Company's financial statements pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the
Company has not altered its method of accounting or changed its auditors, (iv) the Company has not declared or made any dividend
or distribution of cash or other property to its stockholders, in their capacities as such, or purchased, redeemed or made any
agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not issued any equity securities
to any officer, director or Affiliate, except pursuant to existing Company stock-based plans. The Company has not taken any steps
to seek protection pursuant to any bankruptcy law nor does the Company have any knowledge or reason to believe that its creditors
intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor
to do so. The Company is not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at
the applicable Closing, will not be Insolvent (as defined below). For purposes of this Section 3.1(g), “Insolvent”
means (i) the present fair saleable value of the Company's assets is less than the amount required to pay the Company's total Indebtedness,
(ii) the Company is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities
become absolute and matured, (iii) the Company intends to incur or believes that it will incur debts that would be beyond its ability
to pay as such debts mature or (iv) the Company has unreasonably small capital with which to conduct the business in which it is
engaged as such business is now conducted and is proposed to be conducted.

 

(h) No
General Solicitation; Placement Agent's Fees. Neither the Company, nor any of its Affiliates, nor any Person acting on its
or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D)
in connection with the offer or sale of the Common Shares. The Company shall be responsible for the payment of any placement agent’s
fees, financial advisory fees, or brokers’ commission (other than for persons engaged by any Investor or its investment advisor)
relating to or arising out of the issuance of the Common Shares pursuant to this Agreement. The Company shall pay, and hold each
Investor harmless against, any liability, loss or expense (including, without limitation, reasonable attorney's fees and out-of-pocket
expenses) arising in connection with any such claim for fees arising out of the issuance of the Common Shares pursuant to this
Agreement. The Company acknowledges that is has engaged JMP Securities, LLC as its exclusive placement agent (the “Agent”)
in connection with the sale of the Common Shares. Other than the Agent, the Company has not engaged any placement agent or other
agent in connection with the sale of the Common Shares.

 

(i) Private
Placement; Investment Company. Neither the Company nor any of its Affiliates nor, any Person acting on the
Company’s behalf has, directly or indirectly, at any time within the past six months, made any offer or sale of any
security or solicitation of any offer to buy any security under circumstances that would (i) eliminate the availability
of the exemption from registration under Regulation D under the Securities Act in connection with the offer and sale by
the Company of the Common Shares as contemplated hereby or (ii) cause the offering of the Common Shares pursuant to the
Transaction Documents to be integrated with prior offerings by the Company for purposes of any applicable law, regulation or
stockholder approval provisions, including, without limitation, under the rules and regulations of any Trading Market. Assuming
the accuracy of the representations and warranties of the Investors set forth in Section 3.2, no registration under
the Securities Act is required for the offer and sale of the Common Shares by the Company to the Investors as contemplated
hereby. The sale and issuance of the Common Shares hereunder does not contravene the rules and
regulations of any Trading Market on which the Common Stock is listed or quoted. The Company is not required to be registered
as, and is not an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940,
as amended. 

 

    	-11-

    	 

    

 

(j) Form
S-3ASR. The Company has an effective shelf registration statement on Form S-3ASR promulgated under the Securities Act and
is eligible to register the Common Shares for resale by the Investors using such registration statement.

 

(k) Listing
and Maintenance Requirements. The Company has not, in the twelve months preceding the date hereof, received notice
(written or oral) from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the
Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no
reason to believe that it will not in the foreseeable future continue to be, in compliance with all such listing and
maintenance requirements.

 

(l) Registration
Rights. Except as disclosed in the SEC Reports, the Company has not granted or agreed to grant to any Person any rights
(including “piggy-back” registration rights) to have any securities of the Company registered with the SEC or any
other governmental authority that have not expired or been satisfied or waived. No Person has registration or
“piggy-back” rights that would preempt or “cut-back” the registration rights granted to the Investors
under this Agreement.

 

(m) Absence
of Litigation. Except as disclosed in the SEC Reports (other than forward-looking statements,
risk factors and others statements cautionary in nature) filed prior to the date hereof, to the Company's knowledge,
there is no action, suit, claim, Proceeding, inquiry or investigation, before or by any court, public board, government
agency, self-regulatory organization or body pending or, to the Company’s knowledge, threatened against or affecting
the Company that could, individually or in the aggregate, to have a Material Adverse Effect.

 

(n) Application
of Takeover Protections. The Company and its Board of Directors have taken all necessary action, if any, to render
inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights
agreement) or other similar anti-takeover provision under the Company’s charter documents or the laws of its state of
incorporation that is or could become applicable to any of the Investors as a result of the Investors and the Company
fulfilling their obligations or exercising their rights under the Transaction Documents, including, without limitation, as a
result of the Company’s issuance of the Common Shares and the Investors’ ownership of the Common Shares.

 

(o) Compliance.
Except as would not, individually or in the aggregate, reasonably be expected to have or result in a Material Adverse Effect, (i)
the Company is not in default under or in violation of (and no event has occurred that has not been waived that, with notice or
lapse of time or both, would result in a default by the Company under), nor has the Company received written notice of a claim
that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument
to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived),
(ii) the Company is not in violation of any order of any court, arbitrator or governmental body, or (iii)  the Company
is not and has not been in violation of any statute, rule or regulation of any governmental authority.

 

    	-12-

    	 

    

 

(p) Domestically
Controlled REIT. To the Company’s knowledge and belief, the Company is, and the Company expects that it will be
immediately after the Closing and after any conversion of the Series C Preferred Stock, a “domestically controlled
qualified investment entity” (within the meaning of Section 897(h)(4) of the Code, and, for the avoidance of doubt,
taking into account the ownership of the Common Stock of the Company), provided that in applying Section 897(h)(4)(B)
of the Code for purposes of this representation, it shall be assumed that all persons who own stock in the Company as a
result of the transactions contemplated by this Agreement and by the Articles Supplementary (including any conversion of the
Series C Preferred Stock) are foreign persons.

 

(q) Internal
Accounting Controls. The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles
and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general
or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

 

(r) Sarbanes-Oxley
Act. The Company is in compliance in all respects with applicable requirements of the Sarbanes-Oxley Act of 2002 and
applicable rules and regulations promulgated by the SEC thereunder, except where such noncompliance would not have,
individually or in the aggregate, a Material Adverse Effect.

 

3.2 Representations
and Warranties of the Investors. Each Investor hereby, as to itself only and for no other Investor, represents and
warrants to the Company, severally and not jointly, as follows:

 

(a) Organization;
Authority. Such Investor is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization with the requisite corporate, partnership or other power and authority to enter into and to consummate the
transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The
purchase by such Investor of the Common Shares hereunder has been duly authorized by all necessary corporate, partnership or other
action on the part of such Investor. This Agreement has been duly executed and delivered by such Investor and constitutes the valid
and binding obligation of such Investor, enforceable against it in accordance with its terms, except (i) as limited by general
equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by
applicable law.

 

    	-13-

    	 

    

 

(b) No
Public Sale or Distribution. Such Investor is acquiring the Common Shares in the ordinary course of business for its
own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except
pursuant to sales registered under the Securities Act or under an exemption from such registration and in compliance with
applicable federal and state securities laws, and such Investor does not have a present arrangement to effect any
distribution of the Common Shares to or through any person or entity; provided, however, that by making the
representations herein, such Investor does not agree to hold any of the Common Shares for any minimum or other specific term
and reserves the right to dispose of the Common Shares at any time in accordance with or pursuant to a registration statement
or an exemption under the Securities Act.

 

(c) Investor
Status. At the time such Investor was offered the Common Shares, it was, and at the date hereof it is, an
“accredited investor” as defined in Rule 501(a) under the Securities Act or a “qualified institutional
buyer” as defined in Rule 144A(a) under the Securities Act. Such Investor is not a registered broker dealer registered
under Section 15(a) of the Exchange Act, or a member of the Financial Regulatory Authority, Inc. (“FINRA”)
or an entity engaged in the business of being a broker dealer. Except as otherwise disclosed in writing to the Company on Exhibit
B-2 (attached hereto) on or prior to the date of this Agreement, such Investor is not affiliated with any broker dealer
registered under Section 15(a) of the Exchange Act, or a member of FINRA or an entity engaged in the business of being a
broker dealer.

 

(d) General
Solicitation. Such Investor is not purchasing the Common Shares as a result of any advertisement, article, notice or
other communication regarding the Common Shares published in any newspaper, magazine or similar media, broadcast over
television or radio, disseminated over the Internet or presented at any seminar or any other general solicitation or general
advertisement.

 

(e) Experience
of Such Investor. Such Investor, either alone or together with its representatives has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective
investment in the Common Shares, and has so evaluated the merits and risks of such investment. Such Investor understands that
it must bear the economic risk of this investment in the Common Shares indefinitely, and is able to bear such risk and is
able to afford a complete loss of such investment.

 

(f) Access
to Information. Such Investor acknowledges that it has reviewed the Disclosure Materials and all other materials such
Investor deemed necessary for the purpose of making an investment decision with respect to the Common Shares, including
information regarding the GE Portfolio Acquisition and the CapLease Acquisition, and has been afforded: (i) the
opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company
concerning the Company’s business, management and financial affairs and terms and conditions of the offering of the
Common Shares and the merits and risks of investing in the Common Shares; (ii) access to information (including material
non-public information) about the Company and its Subsidiaries and their respective financial condition, results of
operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and
(iii) the opportunity to obtain such additional information that the Company possesses or can acquire without
unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Such
Investor has evaluated the risks of investing in the Common Shares, understands there are substantial risks of loss
incidental to the investment and has determined that it is a suitable investment for the Investor.

 

    	-14-

    	 

    

 

(g) No
Governmental Review. Such Investor understands that no United States federal or state agency or any other government or
governmental agency has passed on or made any recommendation or endorsement of the Common Shares or the fairness or
suitability of the investment in the Common Shares nor have such authorities passed upon or endorsed the merits of the
offering of the Common Shares.

 

(h) No
Conflicts. The execution, delivery and performance by such Investor of this Agreement and the consummation by such Investor
of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Investor
or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument
to which such Investor is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree
(including federal and state securities laws) applicable to such Investor, except in the case of clauses (ii) and (iii) above,
for such that are not material and do not otherwise affect the ability of such Investor to consummate the transactions contemplated
hereby.

 

(i)  Prohibited
Transactions; Confidentiality. No Investor, directly or indirectly, and no Person acting on behalf of or pursuant to any
understanding with any Investor, has engaged in any purchases or sales in the securities, including derivatives, of the
Company (including, without limitation, any Short Sales (a “Transaction”) involving any of the
Company’s securities) since the time that such Investor was first contacted by the Company, the Agent or any other
Person regarding an investment in the Company. Such Investor covenants that neither it nor any Person acting on its behalf or
pursuant to any understanding with such Investor will engage, directly or indirectly, in any Transactions in the securities
of the Company (including Short Sales) prior to the time the transactions contemplated by this Agreement and the
audited and pro form financial information with respect to the GE Portfolio Acquisition are
publicly disclosed. “Short Sales” include, without limitation, all “short sales” as defined in
Rule 200 promulgated under Regulation SHO under the Exchange Act and all types of direct and indirect stock pledges, forward
sale contracts, options, puts, calls, short sales, swaps, derivatives and similar arrangements (including on a total
return basis), and sales and other transactions through non-U.S. broker-dealers or foreign regulated brokers.

 

(j) Restricted
Securities. The Investors understand that the Common Shares are characterized as “restricted
securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a
transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold
without registration under the Securities Act only in certain limited circumstances.

 

    	-15-

    	 

    

 

(k) Legends. It
is understood that, except as provided in Section 4.1(b), certificates evidencing the Common Shares may bear any
legend as required by the "blue sky" laws of any state and a restrictive legend in substantially the form set forth
in Section 4.1(b) (and, with respect to Common Shares held in book-entry form, the Transfer Agent will record such
a legend or other notation on the share register of the Company).

 

(l) No
Legal, Tax or Investment Advice. Such Investor understands that nothing in this Agreement or any other materials
presented by or on behalf of the Company to the Investor in connection with the purchase of the Common Shares constitutes
legal, tax or investment advice. Such Investor has consulted such legal, tax and investment advisors as it, in its sole
discretion, has deemed necessary or appropriate in connection with its purchase of the Common Shares. Such Investor
understands that the Agent has acted solely as the agent of the Company in this placement of the Common Shares, and that the
Agent makes no representation or warranty with regard to the merits of this transaction or as to the accuracy of any
information such Investor may have received in connection therewith. Such Investor acknowledges that he has not relied on any
information or advice furnished by or on behalf of the Agent.

 

(m) Certain
Information. Each Investor acknowledges that the Company may have material, non-public information not known to the
Investors regarding the Common Shares and the Company, including, without limitation, (i) information, including actual and
pro forma financial information, with respect to (A) the GE Portfolio Acquisition and (B)
the CapLease Acquisition and (ii) information received by the Company on a privileged basis from the attorneys and financial
advisers representing the Company and its Board of Directors. Each Investor understands, based on its experience, the
disadvantage to which such Investor is subject due to the disparity of information between the Company and such Investor and,
notwithstanding this, such Investor has deemed it appropriate to enter into this Agreement and engage in the transactions
contemplated hereby.

 

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1 Transfer
Restrictions.

 

(a) Each
Investor (severally and not jointly) covenants that the Common Shares will only be disposed of pursuant to an effective registration
statement under, and in compliance with the requirements of, the Securities Act or pursuant to an available exemption from the
registration requirements of the Securities Act, and in compliance with any applicable state securities laws. In connection with
any transfer of Common Shares other than pursuant to an effective registration statement or to the Company, or pursuant to Rule
144, the Company may require the transferor to provide to the Company an opinion of counsel selected by the transferor and reasonably
acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect
that such transfer does not require registration under the Securities Act. Notwithstanding the foregoing, the Company hereby consents
to and agrees to register on the books of the Company and with its Transfer Agent, without any such legal opinion, except to the
extent that the transfer agent requests such legal opinion, any transfer of Common Shares by an Investor to an Affiliate of such
Investor, provided that the transferee certifies to the Company that it is an “accredited investor” as defined in Rule
501(a) under the Securities Act and provided that such Affiliate does not request any removal of any existing legends on any certificate
evidencing the Common Shares.

 

    	-16-

    	 

    

 

(b) The
Investors agree that certificates representing the Common Shares shall bear any legend as required by the "blue sky"
laws of any state and a restrictive legend in substantially the following form (and, with respect to Common Shares held in book-entry
form, the Transfer Agent will record such a legend or other notation on the share register of the Company):

 

THESE SECURITIES
HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY APPLICABLE
STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS. THESE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS
AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

(c) Removal
of Legends. The restrictive legend set forth in Section 4.1(b) above shall be removed and the Company shall issue a
certificate without such restrictive legend or any other restrictive legend to the holder of the applicable Common Shares upon
which it is stamped or issue to such holder by electronic delivery at the applicable balance account at DTC, at such time as Common
Shares are being resold, (i) if a registration statement (including the Registration Statement) covering the resale of the Common
Shares is effective under the Securities Act, (ii) following any sale of such Common Shares pursuant to Rule 144 if
the holder provides the Company with a legal opinion (and the documents upon which the legal opinion is based) reasonably acceptable
to the Company to the effect that the Common Shares can be sold under Rule 144, (iii) at the request of the holder (regardless
of whether such Common Shares are then being resold), if the Common Shares are eligible for sale under Rule 144 without
any volume limitation, or (iv) if the holder provides the Company with a legal opinion (and the documents
upon which the legal opinion is based) reasonably acceptable to the Company to the effect that the legend is not required
under applicable requirements of the Securities Act (including controlling judicial interpretations and pronouncements issued
by the Staff of the SEC). In connection with the resale of any Common Shares, following the Effective Date and provided the registration
statement referred to in clause (i) above is then in effect, or at such earlier time as a legend is no longer required for certain
Common Shares, the Company will no later than three Trading Days following the delivery by an
Investor to the Company or the Transfer Agent (if delivery is made to the Transfer Agent a copy shall be contemporaneously delivered
to the Company) of (i) a legended certificate representing such Common Shares (and, in the case of a requested transfer, endorsed
or with stock powers attached, signatures guaranteed, and otherwise in form necessary to affect transfer), and (ii) an opinion
of counsel to the extent required by Section 4.1(a), deliver or cause to be delivered to such Investor a certificate representing
such Common Shares that is free from all restrictive and other legends. Certificates for Common Shares free from all restrictive
legends may be transmitted by the Transfer Agent to the Investor by crediting the account of the Investor’s primary broker
with DTC as directed by the Investor. The Company may not make any notation on its records or give instructions to the Transfer
Agent that enlarge the restrictions on transfer set forth in this Section 4.1(c).

 

    	-17-

    	 

    

 

(d) Acknowledgement.
Each Investor acknowledges its responsibilities under the Securities Act and accordingly will not sell or otherwise transfer
the Common Shares or any interest therein without complying with the requirements of the Securities Act and any other
applicable securities laws.

 

4.2
Furnishing of Information. Until the date that any Investor owning Common Shares may sell all of them without restriction
under Rule 144 of the Securities Act (or any successor provision), the Company covenants to use its reasonable best efforts
to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to
be filed by the Company after the date hereof pursuant to the Exchange Act. The Company further covenants that it will take
such further action as any holder of Common Shares may reasonably request to satisfy the provisions of this Section
4.2.

 

4.3 Integration.
The Company shall not, and shall use its commercially reasonable efforts to ensure that no Affiliate thereof shall, sell,
offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of
the Securities Act) that would be integrated with the offer or sale of the Common Shares in a manner that would require the
registration under the Securities Act of the sale of the Common Shares to the Investors or that would be integrated with the
offer or sale of the Common Shares for purposes of the rules and regulations of any Trading Market.

 

4.4  Reservation
of Common Shares. The Company shall maintain a reserve from its duly authorized Common Shares for issuance pursuant to
the Transaction Documents in such amount as may be required to fulfill its obligations to issue such Shares under the
Transaction Documents. In the event that at any time the then authorized Common Shares are insufficient for the Company to
satisfy its obligations to issue such Shares under the Transaction Documents, the Company shall promptly take such actions as
may be required to increase the number of authorized Shares.

 

4.5 Securities
Laws Disclosure; Publicity. The Company shall, at or before 9:00 a.m., New York time, on the first (1st)
Trading Day following execution of this Agreement, issue a press release disclosing all material terms of the transactions
contemplated hereby. On or before 9:00 a.m., New York time, on the fourth (4th) Trading Day following execution of this
Agreement, the Company shall file a Current Report on Form 8-K with the SEC (the “8-K Filing”) describing
the terms of the transactions contemplated by the Transaction Documents and including as exhibits to such Current Report on
Form 8-K the Transaction Documents (including the schedules and the names, and addresses of the Investors and the amount(s)
of Common Shares respectively purchased) in the form required by the Exchange Act. The Company shall file the financial
statements required by Regulation S-X with respect to the GE Portfolio Acquisition on or before 5:30 p.m., New York time, on
the third (3rd) Trading Day following execution of this Agreement. Thereafter, the Company shall timely file any
filings and notices required by the SEC or applicable law with respect to the transactions contemplated hereby and provide
copies thereof to the Investors promptly after filing. Except as herein provided, neither the Company nor any Subsidiary
shall publicly disclose the name of any Investor, or include the name of any Investor in any press release without the prior
written consent of such Investor (which consent shall not be unreasonably withheld or delayed), unless otherwise required by
law, regulatory authority or Trading Market, including disclosing information with respect to the Investors as selling
stockholders in a Prospectus or Prospectus supplement. Neither the Company nor any Subsidiary shall, and shall cause each of
its their respective officers, directors, employees and agents not to, provide any Investor with any material
nonpublic information regarding the Company or any Subsidiary from and after the issuance of the above referenced press
release without the express written consent of such Investor. 

 

    	-18-

    	 

    

 

4.6 Use
of Proceeds. The Company intends to use the net proceeds from the sale of the Common Shares for working capital and
general corporate purposes, including for the acquisition of real estate or companies. Pending these uses, the Company
intends to invest the net proceeds from this offering in short-term, interest-bearing, investment-grade securities, or as
otherwise pursuant to the Company's customary investment policies.

 

4.7 Lock-Up.
Each Investor agrees that it will not, without the prior written consent of the Company, purchase, offer, sell, contract to
sell, pledge or otherwise dispose of or transact in (or enter into any transaction which is designed to, or might reasonably
be expected to, result in the disposition (whether by actual disposition or effective economic disposition due to cash
settlement or otherwise) by such Investor or any Affiliate of such Investor or any Person in privity with such Investor or
any Affiliate of such Investor), directly or indirectly, including the filing (or participation in the filing) of a
registration statement with the SEC in respect of, or establish or increase a put equivalent position or liquidate or
decrease a call equivalent position within the meaning of Section 16 of the Exchange Act, and the rules and regulations of
the SEC promulgated thereunder with respect to, any shares of capital stock of the Company or any securities convertible
into, or exercisable or exchangeable for such capital stock, or publicly announce an intention to effect any such
transaction, for a period from the date hereof until the Company files a Current Report on Form 8-K disclosing the audited
and pro form financial information with respect to the GE Portfolio Acquisition.

 

4.8 Further
Assurances. Each Investor agrees to promptly provide any and all information reasonably requested by the Company in
connection with the Company’s compliance with the terms of its charter, including with respect to the ownership
limitations therein, and its continued qualification as a real estate investment trust under the Code.

 

    	-19-

    	 

    

  

ARTICLE V

CONDITIONS

 

5.1 Conditions
Precedent to the Obligations of the Investors. The obligation of each Investor to acquire Common Shares at the Closing is
subject to the satisfaction or waiver by such Investor, at or before the Closing, of each of the following conditions:

 

(a) Representations
and Warranties. The representations and warranties of the Company contained herein shall be true and correct in all
material respects as of the date when made and as of the Closing as though made on and as of such date; and

 

(b) Performance.
The Company and each other Investor shall have performed, satisfied and complied in all material respects with all covenants,
agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by it at or prior
to the Closing.

 

(c)  No
Suspensions of Trading in Common Stock; Listing. Trading in the Common Stock shall not have been suspended by the SEC or
any Trading Market (except for any suspensions of trading of not more than one Trading Day solely to permit dissemination of
material information regarding the Company) at any time since the date of execution of this Agreement, and the Common Stock
shall have been at all times since such date listed for trading on a Trading Market.

 

(d) Absence
of Litigation. No action, suit or proceeding by or before any court or any governmental body or authority, against the
Company or any Subsidiary or pertaining to the transactions contemplated by this Agreement or their consummation, shall have
been instituted on or before the Closing Date, which action, suit or proceeding would, if determined adversely, have a Material
Adverse Effect.

 

(e) Preferred
Stock Purchase Agreement. The Company shall have simultaneously consummated the transactions contemplated by the
Preferred Stock Purchase Agreement.

 

5.2 Conditions
Precedent to the Obligations of the Company. The obligation of the Company to sell the Common Shares at the Closing is
subject to the satisfaction or waiver by the Company, at or before the Closing, of each of the following conditions:

 

(a) Representations
and Warranties. The representations and warranties of the Investors contained herein shall be true and correct in all
material respects as of the date when made and as of the Closing Date as though made on and as of such date; and

 

(b) Performance.
The Investors shall have performed, satisfied and complied in all material respects with all covenants, agreements and
conditions required by the Transaction Documents to be performed, satisfied or complied with by the Investors at or prior to
the Closing.

 

    	-20-

    	 

    

 

ARTICLE VI

REGISTRATION RIGHTS

 

6.1 Registration
Statement.

 

(a) On
or prior to the Filing Date, the Company shall prepare and file with the SEC a Registration Statement or, if a Registration Statement
is then effective, a supplement to the Prospectus, in either case covering the resale of all Registrable Securities for an offering
to be made on a continuous basis pursuant to Rule 415 (or any successor provision); provided, that the Company may, in its
sole discretion, extend the Filing Date for up to ten (10) days. The Registration Statement shall be on Form S-3 (except if the
Company is not then eligible to register for resale the Registrable Securities on Form S-3, in which case such registration shall
be on another appropriate form in accordance with the Securities Act and the Exchange Act). This Prospectus or supplement thereto,
as applicable, shall contain (except if otherwise directed by the Investors or requested by the SEC) the “Plan of Distribution”
in substantially the form (subject to any changes that may be made in accordance with Section 6.2(a)) attached hereto as
Exhibit E.

 

(b) The
Company shall use its reasonable best efforts to keep the Registration Statement continuously effective under the Securities Act
until the earlier of the date that all Registrable Securities covered by such Registration Statement have been sold or can be sold
publicly without any volume limitations under Rule 144 (the “Effectiveness Period”).

 

(c)
Notwithstanding anything in this Agreement to the contrary, after 120 consecutive Trading Days of continuous effectiveness of
the initial Registration Statement filed and declared effective (or Prospectus filed, as appropriate) pursuant to this
Agreement, the Company may, by written notice to the Investors, suspend sales under a Registration Statement after the
Effective Date thereof and/or require that the Investors immediately cease the sale of Registrable Securities pursuant
thereto and/or defer the filing of any subsequent Registration Statement if the Company is engaged in a material merger,
acquisition or sale and the Company’s Board of Directors determines in good faith, by appropriate resolutions, that, as
a result of such activity, (A) it would be materially detrimental to the Company (other than as relating solely to the
price of the Common Stock) to maintain a Registration Statement at such time or (B) it is in the best interests
of the Company to suspend sales under such registration at such time. Upon receipt of such notice, each Investor shall
immediately discontinue any sales of Registrable Securities pursuant to such registration until such Investor is advised in
writing by the Company that the current Prospectus or amended Prospectus, as applicable, may be used. In no event, however,
shall this right be exercised to suspend sales beyond the period during which (in the good faith determination of the
Company’s Board of Directors) the failure to require such suspension would be materially detrimental to the
Company. The Company’s rights under this Section 6.1(c) may be exercised for a period of no more than 20 Trading
Days at a time and not more than three times in any twelve-month period. Immediately after the end of any suspension period
under this Section 6.1(c), the Company shall take all necessary actions (including filing any required supplemental
Prospectus) to restore the effectiveness of the applicable Registration Statement and the ability of the Investors to
publicly resell their Registrable Securities pursuant to such effective Registration Statement.

 

    	-21-

    	 

    

 

6.2 Registration
Procedures. In connection with the Company’s registration obligations hereunder, the Company shall:

 

(a) Not
less than three Trading Days prior to the filing of a Registration Statement or any related Prospectus or any amendment or supplement
thereto, furnish to the Investors copies of all such documents proposed to be filed, which documents (other than any document that
is incorporated or deemed to be incorporated by reference therein) will be subject to the review of such Investors. The Company
shall reflect in each such document when so filed with the SEC such comments regarding the description of the transactions contemplated
by this Agreement or the Preferred Stock Purchase Agreement, the Investors and the plan of distribution as the Investors may reasonably
and promptly propose no later than two Trading Days after the Investors have been so furnished with copies of such documents as
aforesaid.

 

(b)
(i) Subject to Section 6.1(c), prepare and file with the SEC such amendments, including post-effective
amendments, to each Registration Statement and the Prospectus used in connection therewith as may be necessary to keep the
Registration Statement continuously effective, as to the applicable Registrable Securities for the Effectiveness Period and
prepare and file with the SEC such additional Registration Statements in order to register for resale under the Securities
Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required
Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424 (or any successor provision); and
(iii) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the
disposition of all Registrable Securities covered by the Registration Statement during the applicable period in accordance
with the intended methods of disposition by the Investors thereof set forth in the Registration Statement as so amended or in
such Prospectus as so supplemented.

 

(c)
Notify the Investors as promptly as reasonably possible, and (if requested by the Investors confirm such notice in writing no
later than two Trading Days thereafter, of any of the following events: (i) the SEC issues any stop order suspending the
effectiveness of any Registration Statement or initiates any Proceedings for that purpose; (ii) the Company receives
notice of any suspension of the qualification or exemption from qualification of any Registrable Securities for sale in any
jurisdiction, or the initiation or threat of any Proceeding for such purpose; or (iii) the financial statements included
in any Registration Statement become ineligible for inclusion therein or any Registration Statement or Prospectus or other
document contains any untrue statement of a material fact or omits to state any material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading.

 

(d) Use
its reasonable best efforts to avoid the issuance of or, if issued, obtain the withdrawal of (i) any order suspending the
effectiveness of any Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification)
of any of the Registrable Securities for sale in any jurisdiction, as soon as possible.

 

    	-22-

    	 

    

 

(e)
Promptly deliver to each Investor, without charge, as many copies of the Prospectus or Prospectuses (including each form of
prospectus) and each amendment or supplement thereto as such Persons may reasonably request. The Company hereby consents to
the use of such Prospectus and each amendment or supplement thereto by each of the selling Investors in connection with the
offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto to the
extent permitted by federal and state securities laws and regulations.

 

(f)
(i) In the manner required by each Trading Market, prepare and file with such Trading Market an additional shares
listing application (or applications) covering all of the Registrable Securities; (ii) take all steps necessary to cause
such Common Shares to be approved for listing on each Trading Market as soon as possible thereafter; (iii) provide to
each Investor evidence of such listing; and (iv) except as a result of events provided for in Section 6.1(d),
during the Effectiveness Period, maintain the listing of such Common Shares on each such Trading Market or another Eligible
Market.

 

(g)
Prior to any public offering of Registrable Securities, use reasonable best efforts to register or qualify or cooperate with
the selling Investors in connection with the registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions
within the United States as any Investor requests in writing, to keep each such registration or qualification (or exemption
therefrom) effective for so long as required, but not to exceed the duration of the Effectiveness Period, and to do any and
all other acts or things reasonably necessary or advisable to enable the disposition in such jurisdictions of the Registrable
Securities covered by a Registration Statement; provided, however, that the Company shall not be obligated to
file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any
jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any
jurisdiction in which it is not otherwise so subject.

 

(h)
Cooperate with the Investors to facilitate the timely preparation and delivery of certificates or book-entry records, as
required by the Investors, representing Registrable Securities to be delivered to a transferee pursuant to a Registration
Statement, which certificates or records, as applicable, shall be free, to the extent permitted by this Agreement and under
law, of all restrictive legends, and to enable such certificates to be in such denominations and registered in such names as
any such Investors may reasonably request.

 

(i)
Upon the occurrence of any event described in Section 6.2(c)(iii), as promptly as reasonably possible, prepare a
supplement or amendment, including a post-effective amendment, to the Registration Statement or a supplement to the related
Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required
document so that, as thereafter delivered, neither the Registration Statement nor such Prospectus will contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading.

  

    	-23-

    	 

    

 

(j)
Cooperate with any reasonable due diligence investigation undertaken by the Investors in connection with the sale of
Registrable Securities, including, without limitation, by making available documents and information; provided, that, the
Company will not deliver or make available to any Investor material, nonpublic information unless such Investor requests in
advance in writing to receive material, nonpublic information and agrees in writing to keep such information
confidential.

 

(k)
Comply with all rules and regulations of the SEC applicable to the registration of the Common Shares.

 

(l) It
shall be a condition precedent to the obligations of the Company to complete the registration or Prospectus supplement filing pursuant
to this Agreement with respect to the Registrable Securities of any particular Investor that such Investor furnish to the Company
the information specified in Exhibits B-1, B-2 and B-3 hereto and such other information regarding itself,
the Registrable Securities and other Common Shares held by it and the intended method of disposition of the Registrable Securities
held by it (if different from the Plan of Distribution set forth on Exhibit E hereto) as shall be reasonably required to
effect the registration of such Registrable Securities or file a Prospectus supplement with respect to the Registrable Securities
and shall complete and execute such documents in connection with the foregoing as the Company may reasonably request.

 

(m) The
Company shall comply with all applicable rules and regulations of the SEC under the Securities Act and the Exchange Act, including,
without limitation, Rule 172 (or any successor provision) under the Securities Act, file any final Prospectus, including any supplement
or amendment thereof, with the SEC pursuant to Rule 424 (or any successor provision) under the Securities Act, reasonably promptly
inform the Investors in writing if, at any time during the Effectiveness Period, the Company does not satisfy the conditions specified
in Rule 172 (or any successor provision) and, as a result thereof, the Investors are required to make available a Prospectus in
connection with any disposition of Registrable Securities and take such other actions as may be reasonably necessary to facilitate
the registration of the Registrable Securities hereunder.

 

6.3 Registration
Expenses. The Company shall pay all fees and expenses (other than Selling Expenses) incurred in connection with the
performance of or compliance with Article VI of this Agreement by the Company, including without limitation (a) all
registration and filing fees and expenses, including without limitation those related to filings with the SEC, any Trading
Market and in connection with applicable state securities or Blue Sky laws, (b) printing expenses (including without
limitation expenses of printing certificates for Registrable Securities), (c) messenger, telephone and delivery
expenses, (d) fees and disbursements of counsel for the Company, (e) fees and expenses of all other Persons retained by
the Company in connection with the consummation of the transactions contemplated by this Agreement, and (f) all listing
fees to be paid by the Company to the Trading Market. All Selling Expenses incurred in connection with the sale of
Registrable Securities shall be borne by the Investor or other holder selling such Registrable Securities. Each Investor or
other holder of Registrable Securities shall pay the expenses of its own counsel and other advisers.

 

    	-24-

    	 

    

 

6.4 Indemnification

 

(a) Indemnification
by the Company.

 

(i)          The
Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Investor, each Investor’s
officers, directors, agents and employees and each Person who controls any such Investor (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act), to the fullest extent permitted by applicable law, from and against
any and all Losses, as incurred, arising out of or based on (i) any misrepresentation or breach of any representation or warranty
made by the Company in the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby
or (ii) any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus or any
form of Company prospectus or in any amendment or supplement thereto or in any Company preliminary prospectus, or arising out of
or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements
therein (in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which
they were made) not misleading, except to the extent that (A) such untrue statements, alleged untrue statements, omissions
or alleged omissions are based solely upon information regarding such Investor furnished in writing to the Company by such Investor
or its agent for use therein, or to the extent that such information relates to such Investor or such Investor's proposed method
of distribution of Registrable Securities and was reviewed and expressly approved by such Investor or its agent in writing expressly
for use in the Registration Statement, such Prospectus or such form of prospectus or in any amendment or supplement thereto (it
being understood that the information provided by the Investor to the Company in Exhibits B-1, B-2 and B-3
and the Plan of Distribution set forth on Exhibit E, as the same may be modified by such Investor and other information
provided by the Investor to the Company in or pursuant to the Transaction Documents constitutes information reviewed and expressly
approved by such Investor in writing expressly for use in the Registration Statement and Prospectus, as applicable), or (B) with
respect to any Prospectus, if the untrue statement or omission of material fact contained in such Prospectus was corrected on a
timely basis in the Prospectus, as then amended or supplemented, if such corrected Prospectus was timely made available by the
Company to the Investor, and the Investor or its agent seeking indemnity hereunder was advised in writing not to use the incorrect
Prospectus prior to the use giving rise to Losses.

 

(ii)         If
(a) any holder of Common Shares (or, in the case of a holder which is a partnership or disregarded entity for U.S. federal income
tax purposes, any direct or indirect partner, member or owner of such holder) (any such person, a “Tax-Indemnified Person”)
is advised by such Tax-Indemnified Person’s tax advisors to pay, or (b) the U.S. taxing authorities seek to impose on any
Tax-Indemnified Person, a tax pursuant to Section 897 of the Code in respect of (i) a sale or other disposition of such Common
Shares, or (ii) a payment of cash pursuant to the Contingent Value Rights Agreement, the Company shall indemnify such Tax-Indemnified
Person, on an after-tax basis, for the amount of such tax, including any interest or penalties thereon; provided, that the
Company's indemnity obligation under this Section 6.4(a)(ii) shall survive until ninety (90) days following the expiration
of the applicable statute of limitations.

 

    	-25-

    	 

    

 

(b) Indemnification
by Investors. Each Investor shall, severally and not jointly, notwithstanding any termination of this Agreement,
indemnify and hold harmless the Company, its directors, officers, agents and employees and each Person who controls the
Company (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act), to the fullest extent
permitted by applicable law, from and against all Losses (i) arising out of or based on any misrepresentation or breach of
any representation or warranty made by such Investor in the Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby or (ii) arising out of (A) any violation or purported violation of securities laws by
such Investor in connection with any resale of Common Shares and (B) any untrue statement of a material fact contained in the
Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising out
of or relating to any omission of a material fact required to be stated therein or necessary to make the statements therein
(in the case of any Prospectus or form of prospectus or supplement thereto, in the light of the circumstances under which
they were made) not misleading, but only to the extent that such untrue statements or omissions are based solely upon
information regarding such Investor furnished to the Company by such Investor or its agent in writing expressly for use
therein, or to the extent that such information relates to such Investor or such Investor’s proposed method of
distribution of Registrable Securities and was reviewed and expressly approved in writing by such Investor or its agent
expressly for use in the Registration Statement, such Prospectus or such form of prospectus or in any amendment or supplement
thereto (it being understood that the information provided by the Investor to the Company in Exhibits B-1, B-2
and B-3 and the Plan of Distribution set forth on Exhibit E, as the same may be modified by such Investor and
other information provided by the Investor to the Company in or pursuant to the Transaction Documents constitutes information
reviewed and expressly approved by such Investor in writing expressly for use in the Registration Statement and
Prospectus, as applicable). In no event shall the liability of any selling Investor hereunder be greater in amount than the
dollar amount of the net proceeds received by such Investor upon the sale of the Registrable Securities giving rise to such
indemnification obligation.

 

(c) Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom
indemnity is sought (the “Indemnifying Party”) in writing, and the Indemnifying Party shall assume the
defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all
fees and expenses incurred in connection with defense thereof; provided, that, the failure of any Indemnified Party to give
such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except
(and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the
Indemnifying Party.

  

    	-26-

    	 

    

 

An Indemnified Party
shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party
has agreed in writing to pay such fees and expenses; or (ii) the Indemnifying Party shall have failed promptly to assume the
defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (iii) the
named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same
counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies
the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying
Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of separate counsel shall be
at the expense of the Indemnifying Party). It shall be understood, however, that the Indemnifying Party shall not, in connection
with any one such Proceeding (including separate Proceedings that have been or will be consolidated before a single judge) be liable
for the fees and expenses of more than one separate firm of attorneys at any time for all Indemnified Parties, which firm shall
be appointed by a majority of the Indemnified Parties. The Indemnifying Party shall not be liable for any settlement of any such
Proceeding effected without its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, effect the settlement or compromise of, or consent to the entry of
any judgment with respect to, any pending or threatened Proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not such Indemnified Party is an actual or potential party to such action or claim) unless such settlement,
compromise or judgment (A) includes an unconditional release of such Indemnified Party from all liability arising out of such action
or claim and (B) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf
of the Indemnified Party.

 

All reasonable fees
and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating
or preparing to defend such Proceeding in a manner not inconsistent with this Section 6.4(c)) shall be paid to the Indemnified
Party, as incurred, within 20 Trading Days of written notice thereof to the Indemnifying Party (regardless of whether it is ultimately
determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that, the Indemnifying Party may require
such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that
such Indemnified Party is not entitled to indemnification hereunder).

 

(d) Contribution.
If a claim for indemnification under Section 6.4(a) or  (b) is unavailable to an Indemnified Party (by
reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions,
statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative
fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any
action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified
Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include,
subject to the limitations set forth in Section 6.4(c), any reasonable attorneys’ or other reasonable fees or
expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for
such fees or expenses if the indemnification provided for in this Section 6.4 was available to such party in
accordance with its terms.

 

    	-27-

    	 

    

 

The parties hereto
agree that it would not be just and equitable if contribution pursuant to this Section 6.4(c) were determined by pro rata
allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the
immediately preceding paragraph. Notwithstanding the provisions of this Section 6.4(c), no Investor shall be required to
contribute, in the aggregate, any amount in excess of the amount by which the net proceeds actually received by such Investor from
the sale of the Registrable Securities subject to the Proceeding exceed the amount of any damages that such Investor has otherwise
been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation.

 

The indemnity and contribution
agreements contained in this Section 6.4 are in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

 

6.5 Dispositions.
Each Investor agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it
in connection with sales of Registrable Securities pursuant to the Registration Statement and, to the extent any such sales
are made under the Registration Statement, shall sell its Registrable Securities in accordance with the Plan of Distribution
set forth in the Prospectus. Each Investor further agrees that, upon receipt of a notice from the Company of the occurrence
of any event of the kind described in Section 6.2(c), such Investor will discontinue disposition of such Registrable
Securities under the Registration Statement until such Investor is advised in writing by the Company that the use of the
Prospectus, or amended Prospectus, as applicable, may be resumed. The Company may provide appropriate stop orders to enforce
the provisions of this paragraph. Each Investor, severally and not jointly with the other
Investors, agrees that the removal of the restrictive legend from certificates or book-entry records representing Common
Shares as set forth in this Section 6.5 is predicated upon the Company’s reliance that the Investor will comply
with the provisions of this subsection. Both the Company and the Transfer Agent, and their respective directors, officers,
employees and agents, may rely on this subsection.

  

    	-28-

    	 

    

 

ARTICLE VII

MISCELLANEOUS

 

7.1 Termination.
This Agreement may be terminated by the Company or any Investor, by written notice to the other parties, if the Closing has
not been consummated by the tenth (10th) Trading Day following the date of this Agreement; provided, however,
that the right to terminate this Agreement pursuant to this Section 7.1 shall not be available to any party if the
failure of such party to perform any of its obligations under this Agreement has been a principal cause of, or
resulted in, the failure of the Closing to be consummated on or before such date. No termination
pursuant to this Section 7.1 will affect the right of any party to sue for any breach by the other party (or
parties).

 

7.2 Fees and
Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses
of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the
negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees,
stamp taxes and other taxes and duties levied in connection with the sale and issuance of the Common Shares.

 

The Company, whether
or not the transactions contemplated hereunder are consummated or this Agreement is terminated, in accordance with the provisions
of Section 7.1 hereunder, will pay to Luxor Capital Group, LP, an Investor, on the Closing Date in immediately available
funds to an account designated in writing by it all reasonable and customary out-of-pocket expenses incurred by it and incident
to the negotiation and performance of its obligations hereunder, including reasonable fees and documented disbursements of its
counsel (“Reimbursable Expenses”), which Reimbursable Expenses, together with all Reimbursable Expenses (as
defined in the Preferred Stock Purchase Agreement) pursuant to the Preferred Stock Purchase Agreement, in the aggregate, will not
exceed $200,000.

 

7.3 Entire
Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or
written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and
schedules. At or after the Closing, and without further consideration, the Company will execute and deliver to the Investors
such further documents as may be reasonably requested in order to give practical effect to the intention of the parties under
the Transaction Documents.

 

7.4 Notices.
All notices, consents, approvals, waivers or other communications (each, a “Notice”) required or permitted
hereunder, except as herein otherwise specifically provided, shall be in writing and shall be: (i) delivered personally or by
commercial messenger; (ii) sent via a recognized overnight courier service, or (iii) sent by facsimile or e-mail
transmission, provided confirmation of receipt is received by sender and such Notice is sent or delivered contemporaneously
by an additional method provided in this Section 7.4; in each case so long as such Notice is addressed to the intended
recipient thereof as set forth below:

 

If to the Company:

 

American Realty Capital
Properties, Inc.

405 Park Avenue

New York, New York 10022

Facsimile: (212) 421-5799 

Email: mweil@rcsecurities.com

Attention: Edward M.
Weil, Jr.

 

    	-29-

    	 

    

 

with a copy to:

 

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036

Facsimile No.: (212)
969-2900

Email: pfass@proskauer.com

Attention: Peter M. Fass,
Esq.

 

If to Investor:

 

At its addresses on the
signature page hereto;

 

Any party may change its
address specified above by giving each party Notice of such change in accordance with this Section 7.4. Any Notice shall
be deemed given upon actual receipt (or refusal of receipt).

 

7.5 Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an
amendment, by the Company and each of the Investors or, in the case of a waiver, by the party against whom enforcement of any
such waiver is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement
shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other
provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in
any manner impair the exercise of any such right. Notwithstanding the foregoing, a waiver or consent to depart from the
provisions hereof with respect to a matter that relates exclusively to the rights of Investors under Article VI
may be given by Investors holding at least a majority of the Registrable Securities to which such waiver or consent
relates.

 

7.6 Construction.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent, and no rules of strict construction will be applied against any party.

 

7.7 Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and
permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of the Investors. Any Investor may assign its rights under this Agreement to any Person to whom such Investor assigns
or transfers any Common Shares, provided (i) such transferor agrees in writing with the transferee or assignee to assign such
rights, and a copy of such agreement is furnished to the Company after such assignment, (ii) the Company is furnished with
written notice of (x) the name and address of such transferee or assignee and (y) the Registrable Securities with respect to
which such registration rights are being transferred or assigned, (iii) following such transfer or assignment, the further
disposition of such securities by the transferee or assignee is restricted under the Securities Act and applicable state
securities laws, (iv) such transferee agrees in writing to be bound, with respect to the transferred Common Shares, by the
provisions hereof that apply to the “Investors” and (v) such transfer shall have been made in accordance with the
applicable requirements of this Agreement and with all laws applicable thereto.

 

    	-30-

    	 

    

 

7.8 No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective
successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other
Person, except that each Indemnified Party is an intended third party beneficiary of Section 6.4 and (in
each case) may enforce the provisions of such Section applicable to them directly against the parties with obligations
thereunder.

 

7.9 Governing
Law; Venue; Waiver of Jury Trial. THE CORPORATE LAWS OF THE STATE OF MARYLAND
SHALL GOVERN ALL ISSUES CONCERNING THE RELATIVE RIGHTS OF THE COMPANY AND ITS STOCKHOLDERS. ALL QUESTIONS CONCERNING THE CONSTRUCTION,
VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK. THE COMPANY AND INVESTORS HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL
COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT BY THE COMPANY OR ANY
INVESTOR HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT
TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION
OR PROCEEDING BROUGHT BY THE COMPANY OR ANY INVESTOR, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH
COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND
CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL
OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT
AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED HEREIN
SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW. THE COMPANY AND INVESTORS HEREBY
WAIVE ALL RIGHTS TO A TRIAL BY JURY.

 

7.10 Survival.
The representations and warranties contained herein shall survive the Closing for a period of one year following the Closing
Date.

 

    	-31-

    	 

    

 

7.11 Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the
same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party,
it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or email attachment, such signature shall create a valid and binding obligation of the party executing
(or on whose behalf such signature is executed) with the same force and effect as if such facsimile or email-attached
signature page were an original thereof.

 

7.12 Severability.
If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties
will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing,
shall incorporate such substitute provision in this Agreement.

 

7.13 Replacement
of Stock Certificates. If any certificate or instrument evidencing any Common Shares is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or
in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably
satisfactory to the Company of such loss, theft or destruction and the execution by the holder thereof of a customary lost
certificate affidavit of that fact and an agreement to indemnify and hold harmless the Company for any losses in connection
therewith. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable
third-party costs associated with the issuance of such replacement Stock Certificates.

 

7.14 Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each
of the Investors and the Company will be entitled to seek specific performance under the Transaction Documents. The parties
agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations
described in the foregoing sentence and hereby agree to waive in any action for specific performance of any such obligation
(other than in connection with any action for a temporary restraining order) the defense that a remedy at law would be
adequate.

 

7.15 Payment
Set Aside. To the extent that the Company makes a payment or payments to any Investor hereunder or any Investor enforces or
exercises its rights hereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof
are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required
to be refunded, repaid or otherwise restored to the Company by a trustee, receiver or any other person under any law (including,
without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any
such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force
and effect as if such payment had not been made or such enforcement or setoff had not occurred.

 

    	-32-

    	 

    

 

7.16 Adjustments
in Share Numbers and Prices. In the event of any stock split, subdivision, dividend or distribution payable in Common
Shares (or other securities or rights convertible into, or entitling the holder thereof to receive directly or indirectly
Common Shares), combination or other similar recapitalization or event occurring after the date hereof, each reference in any
Transaction Document to a number of shares or a price per share shall be amended to appropriately account for such event.

 

7.17 Independent
Nature of Investors' Obligations and Rights. The obligations of each Investor under any Transaction Document are
several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the
performance of the obligations of any other Investor under any Transaction Documents. The decision of each Investor to
purchase Common Shares pursuant to this Agreement has been made by such Investor independently of any other Investor and
independently of any information, materials, statements or opinions as to the business, affairs, operations, assets,
properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company which may have
been made or given by any other Investor or by any agent or employee of any other Investor, and no Investor or any of its
agents or employees shall have any liability to any other Investor (or any other person) relating to or arising from any such
information, materials, statements or opinions. Nothing contained herein or in any Transaction Document, and no action taken
by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a
group with respect to such obligations or the transactions contemplated by the Transaction Document. Each Investor
acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment hereunder
and that no other Investor will be acting as agent of such Investor in connection with monitoring its investment hereunder.
Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the rights
arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Investor
to be joined as an additional party in any Proceeding for such purpose.

 

[SIGNATURE PAGES FOLLOW]

 

    	-33-

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

	 	AMERICAN REALTY CAPITAL PROPERTIES, INC.
	 	 	 
	 	By:	/s/ Nicholas S. Schorsch
	 	 	Name: Nicholas S. Schorsch
	 	 	Title: Chairman and Chief Executive Officer

 

    	 

    	 

    

 

Investor Signature Page

 

By its execution and
delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms and conditions of
the Securities Purchase Agreement, dated as of June 4, 2013 (the “Purchase Agreement”) by and among American
Realty Capital Properties, Inc. and the Investors (as defined therein), as to the number of Common Shares set forth below, and
authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Investor:
	 	 
	 	Orange Capital LLC
	 	 	 
	 	By: 	    /s/ Daniel
    Lewis
	 	 	Name:  Daniel Lewis
	 	 	Title:    Managing Member

 

	 	Address:	1370 Avenue of the Americas
	 	 	23rd Floor
	 	 	New York, New York 10019

 

	 	Telephone No.:	212-375-6040

 

	 	Facsimile No.:	212-375-6042

 

	 	Email Address: 	dlewis@orangecap.com

 

	 	Number of Shares:	 

 

	 	Aggregate Purchase Price: 	$20,000,000

  

Delivery Instructions (if different than above):

 

c/o: _________________________________________________________

 

Address: _________settlement@orangecap.com_____________________________

 

        ________________________________________________________

 

Telephone No.: _______________________________________________________

Facsimile No. : _______________________________________________________

    	 

    	 	

    

 

Investor Signature Page

 

By its execution and
delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms and conditions of
the Securities Purchase Agreement, dated as of June 4, 2013 (the “Purchase Agreement”) by and among American
Realty Capital Properties, Inc. and the Investors (as defined therein), as to the number of Common Shares set forth below, and
authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Investor:
	 	 
	 	White Desert A, LLC
	 	 	 
	 	By: 	    /s/ Norris
    Nissim
	 	 	Name:  Norris Nissim
	 	 	Title:    General Counsel, Luxor
	 	 	             Capital Group, LP, its investment manager

 

	 	Address:	1114 Avenue of the Americas
	 	 	Fl. 29
	 	 	New York, New York 10036

 

	 	Telephone No.:	212-763-8041

 

	 	Facsimile No.:	

 

	 	Email Address: 	legal@luxorcap.com

 

	 	Number of Shares:	4,292,182

 

	 	Aggregate Purchase Price: 	$67,258,493

  

Delivery Instructions (if different than above):

 

c/o: _________________________________________________________

 

Address: __________________________________________________________

 

        ________________________________________________________

 

Telephone No.: _______________________________________________________

Facsimile No. : _______________________________________________________

    	 

    	 	

    

 

Investor Signature Page

 

By its execution and
delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms and conditions of
the Securities Purchase Agreement, dated as of June 4, 2013 (the “Purchase Agreement”) by and among American
Realty Capital Properties, Inc. and the Investors (as defined therein), as to the number of Common Shares set forth below, and
authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Investor:
	 	 
	 	White Desert B, LLC
	 	 	 
	 	By: 	    /s/ Norris
    Nissim
	 	 	Name:  Norris Nissim
	 	 	Title:    General Counsel, Luxor
	 	 	             Capital Group, LP, its investment manager

 

	 	Address:	1114 Avenue of the Americas
	 	 	Fl. 29
	 	 	New York, New York 10036

 

	 	Telephone No.:	212-763-8041

 

	 	Facsimile No.:	

 

	 	Email Address: 	legal@luxorcap.com

 

	 	Number of Shares:	1,494,962

 

	 	Aggregate Purchase Price: 	$23,426,056

  

Delivery Instructions (if different than above):

 

c/o: _________________________________________________________

 

Address: __________________________________________________________

 

        ________________________________________________________

 

Telephone No.: _______________________________________________________

Facsimile No. : _______________________________________________________

    	 

    	 	

    

 

Investor Signature Page

 

By its execution and
delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms and conditions of
the Securities Purchase Agreement, dated as of June 4, 2013 (the “Purchase Agreement”) by and among American
Realty Capital Properties, Inc. and the Investors (as defined therein), as to the number of Common Shares set forth below, and
authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Investor:
	 	 
	 	Luxor Wavefront, LP
	 	 	 
	 	By: 	    /s/ Norris
    Nissim
	 	 	Name:  Norris Nissim
	 	 	Title:    General Counsel, Luxor
	 	 	             Capital Group, LP, its investment manager

 

	 	Address:	1114 Avenue of the Americas
	 	 	Fl. 29
	 	 	New York, New York 10036

 

	 	Telephone No.:	212-763-8041

 

	 	Facsimile No.:	

 

	 	Email Address: 	legal@luxorcap.com

 

	 	Number of Shares:	2,519,906

 

	 	Aggregate Purchase Price: 	$39,486,928

  

Delivery Instructions (if different than above):

 

c/o: _________________________________________________________

 

Address: __________________________________________________________

 

        ________________________________________________________

 

Telephone No.: _______________________________________________________

Facsimile No. : _______________________________________________________

    	 

    	 	

    

 

Investor Signature Page

 

By its execution and
delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms and conditions of
the Securities Purchase Agreement, dated as of June 4, 2013 (the “Purchase Agreement”) by and among American
Realty Capital Properties, Inc. and the Investors (as defined therein), as to the number of Common Shares set forth below, and
authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Investor:
	 	 
	 	Luxor Capital Partners, LP
	 	 	 
	 	By: 	    /s/ Norris
    Nissim
	 	 	Name:  Norris Nissim
	 	 	Title:    General Counsel, Luxor
	 	 	             Capital Group, LP, its investment manager

 

	 	Address:	1114 Avenue of the Americas
	 	 	Fl. 29
	 	 	New York, New York 10036

 

	 	Telephone No.:	212-763-8041

 

	 	Facsimile No.:	

 

	 	Email Address: 	legal@luxorcap.com

 

	 	Number of Shares:	7,966,083

 

	 	Aggregate Purchase Price: 	$124,828,523

  

Delivery Instructions (if different than above):

 

c/o: _________________________________________________________

 

Address: __________________________________________________________

 

        ________________________________________________________

 

Telephone No.: _______________________________________________________

Facsimile No. : _______________________________________________________

    	 

    	 	

    

 

Investor Signature Page

 

By its execution and
delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms and conditions of
the Securities Purchase Agreement, dated as of June 4, 2013 (the “Purchase Agreement”) by and among American
Realty Capital Properties, Inc. and the Investors (as defined therein), as to the number of Common Shares set forth below, and
authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Investor:
	 	 
	 	BHR Master Fund, Ltd.
	 	 	 
	 	By: 	    /s/ William
    Brown
	 	 	Name:  William Brown
	 	 	Title:    Partner, President & COO

 

	 	Address:	545 Madison Avenue
	 	 	10th Floor
	 	 	New York, New York 10022

 

	 	Telephone No.:	212-378-0834

 

	 	Facsimile No.:	646-556-8076

 

	 	Email Address: 	wbrown@bhrcap.com

 

	 	Number of Shares:	2,293,108

 

	 	Aggregate Purchase Price: 	$37,500,002.36

  

Delivery Instructions (if different than above):

 

_________________________________________________________________

 

Address: ___________________________________________________________

 

        ________________________________________________________

 

Telephone No.: _______________________________________________________

Facsimile No. : _______________________________________________________

    	 

    	 	

    
 

Investor Signature Page

 

By its execution and
delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms and conditions of
the Securities Purchase Agreement, dated as of June 4, 2013 (the “Purchase Agreement”) by and among American
Realty Capital Properties, Inc. and the Investors (as defined therein), as to the number of Common Shares set forth below, and
authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Investor:
	 	 
	 	BHR OC Master Fund, Ltd.
	 	 	 
	 	By: 	    /s/ William
    Brown
	 	 	Name:  William Brown
	 	 	Title:    Partner, President & COO

 

	 	Address:	545 Madison Avenue
	 	 	10th Floor
	 	 	New York, New York 10022

 

	 	Telephone No.:	212-378-0834

 

	 	Facsimile No.:	646-556-8076

 

	 	Email Address: 	wbrown@bhrcap.com

 

	 	Number of Shares:	797,702

 

	 	Aggregate Purchase Price: 	$12,499,990.34

  

Delivery Instructions (if different than above):

 

c/o: _________________________________________________________

 

Address: ___________________________________________________________

 

        ________________________________________________________

 

Telephone No.: _______________________________________________________

Facsimile No. : _______________________________________________________

    	 

    	 	

    

 

Investor Signature Page

 

By its execution and
delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms and conditions of
the Securities Purchase Agreement, dated as of June 4, 2013 (the “Purchase Agreement”) by and among American
Realty Capital Properties, Inc. and the Investors (as defined therein), as to the number of Common Shares set forth below, and
authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Investor:
	 	 
	 	Senator Global Opportunity Fund LP
	 	 	 
	 	By: 	    /s/ Evan
    Gartenlaub
	 	 	Name:  Evan Gartenlaub
	 	 	Title:    General Counsel

 

	 	Address:	Attn: General Counsel
	 	 	510 Madison Avenue, 28th Fl
	 	 	New York, New York 10022

 

	 	Telephone No.:	212-376-4300

 

	 	Facsimile No.:	855-376-43466

 

	 	Email Address: 	egartenlaub@senatorlp.com

 

	 	Number of Shares:	 

 

	 	Aggregate Purchase Price: 	$20,400

  

Delivery Instructions (if different than above):

 

c/o: _________________________________________________________

 

Address: ___________________________________________________________

 

        ________________________________________________________

 

Telephone No.: _______________________________________________________

Facsimile No. : _______________________________________________________

    	 

    	 	

    

 

Investor Signature Page

 

By its execution and
delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms and conditions of
the Securities Purchase Agreement, dated as of June 4, 2013 (the “Purchase Agreement”) by and among American
Realty Capital Properties, Inc. and the Investors (as defined therein), as to the number of Common Shares set forth below, and
authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Investor:
	 	 
	 	Senator Global Opportunity Intermediate Fund LP.
	 	 	 
	 	By: 	    /s/ Evan
    Gartenlaub
	 	 	Name:  Evan Gartenlaub
	 	 	Title:    General Counsel

 

	 	Address:	Attn: General Counsel
	 	 	510 Madison Avenue, 28th Fl
	 	 	New York, New York 10022

 

	 	Telephone No.:	212-376-4300

 

	 	Facsimile No.:	855-376-43466

 

	 	Email Address: 	egartenlaub@senatorlp.com

 

	 	Number of Shares:	 

 

	 	Aggregate Purchase Price: 	$39,600,000

  

Delivery Instructions (if different than above):

 

c/o: _________________________________________________________

 

Address: ___________________________________________________________

 

        ________________________________________________________

 

Telephone No.: _______________________________________________________

Facsimile No. : _______________________________________________________

 

 

    	 

    	 	

    
 

 

Investor Signature Page

 

By its execution and
delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms and conditions of
the Securities Purchase Agreement, dated as of June 4, 2013 (the “Purchase Agreement”) by and among American
Realty Capital Properties, Inc. and the Investors (as defined therein), as to the number of Common Shares set forth below, and
authorizes this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

	 	Name of Investor:
	 	 
	 	Perry Arc LLC
	 	 	 
	 	By: 	    /s/ Michael C. Neus
	 	 	Name:  Michael C. Neus
	 	 	Title:    Manager

 

	 	Address:	c/o Perry Capital LLC
	 	 	767 Fifth Avenue, 19th Floor
	 	 	New York, New York 10153

 

	 	Telephone No.:	212-583-4123

 

	 	Facsimile No.:	855-583-4146

 

	 	Email Address: 	mneus@senatorlp.com

 

	 	Number of Shares:	 

 

	 	Aggregate Purchase Price: 	$70,000,000

  

Delivery Instructions (if different than above):

 

c/o: _________________________________________________________

 

Address: ___________________________________________________________

 

        ________________________________________________________

 

Telephone No.: _______________________________________________________

Facsimile No. : _______________________________________________________

 

 

    	 

    	 

    

 

Exhibits:

 

		A	Instruction Sheet for Investors

		B-1	Stock Certificate/Registration Questionnaire

		B-2	Registration Statement/Prospectus Questionnaire

		B-3	Certificate for Corporate, Partnership, Limited Liability Company, Trust, Foundation and Joint
Investors

		C-1	Opinion of Company Counsel

		C-2	Opinion of Venable LLP
	 	D	Form of Contingent Value Rights Agreement

		E	Plan of Distribution

		F	Company Transfer Agent Instructions

 

    	 

    	 

    

 

Schedule 3.1(f)

 

		·	Current Report on Form 8-K, filed with the Securities and Exchange
Commission on April 22, 2013, was filed late.

 

		·	The Company plans to file separate Current Reports on Form 8-K including the financial statements
for (a) the GE Portfolio Acquisition and (b) the CapLease Acquisition.

 

    	 

    	 

    

 

Schedule 3.1(g)

 

		·	On May 28, 2013, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”)
with CapLease, Inc., a Maryland corporation (“CapLease”), Safari Acquisition, LLC, a Delaware limited liability
company and wholly owned subsidiary of the Company (“Merger Sub”), Caplease, LP, a Delaware limited partnership
and the operating partnership of the Company (the “CapLease Operating Partnership”), CLF OP General Partner LLC, a
Delaware limited liability company and the sole general partner of the CapLease Operating Partnership, and ARC Properties Operating
Partnership, L.P., a Delaware limited partnership and the operating partnership of Parent (the “Operating Partnership”).
The Merger Agreement provides for (i) the merger of CapLease with and into Merger Sub, with Merger Sub surviving as a wholly owned
subsidiary of the Company, and (ii) the merger of the CapLease Operating Partnership with and into the Operating Partnership, with
the Operating Partnership surviving.

 

		·	On May 31, 2013, the Company, through the Operating Partnership, entered into a purchase and sale
agreement to acquire a portfolio comprised of 471 properties including 468 restaurants (including three other revenue generating
assets) and three retail tenants located in 44 states representing 2,136,025 square feet. The sellers of the properties are subsidiaries
of GE Capital.

 

    	 

    	 

    

 

Exhibit A

 

INSTRUCTION
SHEET FOR INVESTOR

 

(to be read in conjunction with the entire
Securities Purchase Agreement)

 

		A.	Complete the following items in the Securities Purchase Agreement:

 

		1.	Complete and execute the Investor Signature Page. The Agreement must be executed by an individual authorized to bind the Investor.

 

		2.	Exhibit B-1 - Stock Certificate/Registration Questionnaire:

 

Provide the information
requested by the Stock Certificate/Registration Questionnaire;

 

		3.	Exhibit B-2 - Registration Statement/Prospectus Questionnaire:

 

Provide the information
requested by the Registration Statement/Prospectus Questionnaire.

 

		4.	Exhibit B-3 - Investor Certificate:

 

Provide
the information requested by the Investor Certificate.

 

		5.	Return, via facsimile, the signed Securities Purchase Agreement including the properly completed Exhibits B-1 through B-3,
to:

 

E-mail: lvolchyok@proskauer.com

Telephone: 212-969-3434

Attn: Leon Volchyok

 

		B.	Instructions regarding the wire transfer of funds for the purchase of the Common Shares will be e-mailed to the Investor by
the Company at a later date.

 

    	 

    	 

    

 

Exhibit B-1

 

AMERICAN
REALTY CAPITAL PROPERTIES, INC.

 

STOCK CERTIFICATE/REGISTRATION
QUESTIONNAIRE

 

	 	 	Please provide us with the following information:	 	 
	 	 	 	 	 
	1.	 	The exact name that the Common Shares are to be registered in (this is the name that will appear on the records of the Company, or, if required, stock certificate(s)).  You may use a nominee name if appropriate:	 	 
	 	 	 	 	 
	2.	 	The relationship between the Investor of the Common Shares and the Registered Holder listed in response to item 1 above:	 	 
	 	 	 	 	 
	3.	 	The mailing address, telephone and telecopy number and email address of the Registered Holder listed in response to item 1 above:	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	4.	 	The Tax Identification Number of the Registered Holder listed in response to item 1 above:		 

 

    	 

    	 

    

 

Exhibit B-2

 

AMERICAN REALTY CAPITAL PROPERTIES,
INC.

 

REGISTRATION STATEMENT/PROSPECTUS
QUESTIONNAIRE

 

In connection with
the Registration Statement/Prospectus, please provide us with the following information regarding the Investor.

 

1.          Please state your
organization’s name exactly as it should appear in the Registration Statement/Prospectus:

 

_______________________________________________________________________________________

 

Except
as set forth below, your organization does not hold any equity securities of the Company on behalf of another person or entity.

 

State
any exceptions here:

 

_______________________________________________________________________________________

 

If the Investor is
not a natural person, please identify the natural person or persons who will have voting and investment control over the Common
Shares owned by the Investor:

 

_______________________________________________________________________________________

 

2.          Address
of your organization:

 

______________________________________________________

 

______________________________________________________

 

Telephone:
__________________________

 

Fax:
________________________________

 

Contact
Person: _______________________

 

    	 

    	 

    

 

3.          Have you or your organization had any position, office or other material relationship within the past three years with
the Company or its affiliates? (Include any relationships involving you or any of
your affiliates, officers, directors, or principal equity holders (5% or more) that has held any position or office or has had
any other material relationship with the Company (or its predecessors or affiliates) during the past three years.)

 

	_______	Yes	_______	No
	 	 	 	 

 

If yes, please indicate
the nature of any such relationship below:

 

4.          Are you the beneficial owner of any other securities of the Company? (Include
any equity securities that you beneficially own or have a right to acquire within 60 days after the date hereof, and as to which
you have sole voting power, shared voting power, sole investment power or shared investment power.)

 

	_______	Yes	_______	No
	 	 	 	 

 

If yes, please describe
the nature and amount of such ownership as of a recent date.

 

5.          Except as set forth below, you wish that all the shares of the Company’s common stock beneficially owned by you or that you
have the right to acquire from the Company be offered for your account in the Registration Statement/Prospectus.

 

State
any exceptions here:

 

6.          Have you made or are you aware of any arrangements relating to the distribution of the shares of the Company pursuant
to the Registration Statement/Prospectus?

 

	_______	Yes	_______	No
	 	 	 	 

 

If yes, please describe
the nature and amount of such arrangements.

 

    	-2-

    	 

    

 

		7.	FINRA Matters

 

(a)          State below
whether (i) you or any associate or affiliate of yours are a member of the FINRA, a controlling shareholder
of an FINRA member, a person associated with a member, a direct or indirect affiliate of a member,
or an underwriter or related person with respect to the proposed offering; (ii) you or any associate or affiliate
of yours owns any stock or other securities of any FINRA member not purchased in the open market; or (iii) you or any associate
or affiliate of yours has made any outstanding subordinated loans to any FINRA member. If you are a general or limited
partnership, a no answer asserts that no such relationship exists for you as well as for each of your general or limited partners.

 

	_______	Yes:	_______	No:
	 	 	 	 

 

If “yes,”
please identify the FINRA member and describe your relationship, including, in the case of a general or limited partner,
the name of the partner:

 

If you answer
“no” to Question 7(a), you need not respond to Question 7(b).

 

(b)          State
below whether you or any associate or affiliate of yours has been an underwriter, or a controlling person
or member of any investment banking or brokerage firm which has been or might be an underwriter for securities of the Corporation
or any affiliate thereof including, but not limited to, the common stock now being registered.

 

	_______	Yes:	_______	No:
	 	 	 	 

 

If “yes,”
please identify the FINRA member and describe your relationship, including, in the case of a general or limited partner,
the name of the partner.

 

    	-3-

    	 

    

 

ACKNOWLEDGEMENT

 

The
undersigned hereby agrees to notify the Company promptly of any changes in the foregoing information which should be made as a
result of any developments, including the passage of time. The undersigned also agrees to provide the Company and the Company’s
counsel any and all such further information regarding the undersigned promptly upon request in connection with the preparation,
filing, amending, and supplementing of the Registration Statement (or any prospectus contained therein). The undersigned hereby
consents to the use of all such information in the Registration Statement/Prospectus.

 

The
undersigned understands and acknowledges that the Company will rely on the information set forth herein for purposes of the preparation
and filing of the Registration Statement/Prospectus.

 

The
undersigned understands that the undersigned may be subject to serious civil and criminal liabilities if the Registration Statement,
when it becomes effective, or Prospectus either contains an untrue statement of a material fact or omits to state a material fact
required to be stated in the Registration Statement/Prospectus or necessary to make the statements in the Registration Statement/Prospectus
not misleading. The undersigned represents and warrants that all information it provides to the Company and its counsel is currently
accurate and complete and will be accurate and complete at the time the Registration Statement becomes effective or the Prospectus
is filed and at all times subsequent thereto, and agrees during the Effectiveness Period and any additional period in which the
undersigned is making sales of Registrable Securities under and pursuant to the Registration Statement/Prospectus, and agrees during
such periods to notify the Company immediately of any misstatement of a material fact in the Registration Statement/Prospectus,
and of the omission of any material fact necessary to make the statements contained therein not misleading.

 

Dated:
__________

 

	 	 
	 	Name
	 	 
	 	 
	 	Signature
	 	 
	 	 
	 	Name and Title of Signatory

 

    	-4-

    	 

    

 

Exhibit B-3

 

AMERICAN REALTY CAPITAL PROPERTIES,
INC.

 

CERTIFICATE FOR CORPORATE, PARTNERSHIP,
LIMITED LIABILITY COMPANY, 

TRUST, FOUNDATION AND JOINT INVESTORS

 

If the Investor is
a corporation, partnership, limited liability company, trust, pension plan, foundation, joint Investor (other than a married couple)
or other entity, an authorized officer, partner, or trustee must complete, date and sign this Certificate.

 

CERTIFICATE

 

The undersigned certifies
that the representations and responses below are true and accurate:

 

(a)          The Investor
has been duly formed and is validly existing and has full power and authority to invest in the Company. The person signing on behalf
of the undersigned has the authority to execute and deliver the Securities Purchase Agreement on behalf of the Investor and to
take other actions with respect thereto.

 

(b)          Indicate the
form of entity of the undersigned:

 

____     Limited Partnership

 

____     General Partnership

 

____     Limited Liability
Company

 

____     Corporation

 

____     Revocable Trust
(identify each grantor and indicate under what circumstances the trust is revocable by the grantor): ______________________________________________________________________________________

 

	(Continue on a separate piece of paper, if necessary.)

 

____     Other type of
Trust (indicate type of trust and, for trusts other than pension trusts, name the grantors and beneficiaries):  _____________________________________________________________________________

 

	(Continue on a separate piece of paper, if necessary.)

 

____     Other
form of organization (indicate form of organization (______________________________

_______________________________________________________________________________________________).

 

    	-5-

    	 

    

 

(c)          Indicate the
approximate date the undersigned entity was formed: ________________________.

 

(d)          In order for
the Company to offer and sell the Common Shares in conformance with state and federal securities laws, the following information
must be obtained regarding your investor status. Please initial each category applicable to you as an investor in the Company.

 

		___	1.          A
bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined
in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;

 

		___	2.          A
broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934;

 

		___	3.          An
insurance company as defined in Section 2(a)(13) of the Securities Act;

 

		___	4.          An
investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 
2(a)(48) of that Act;

 

		___	5.          A
Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of
the Small Business Investment Act of 1958;

 

		___	6.          A
plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political
subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000;

 

		___	7.          An
employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is
made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association,
insurance company, or registered investment advisor, or if the employee benefit plan has total assets in excess of $5,000,000
or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

 

		___	8.          A
private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;

 

		___	9.          Any
partnership or corporation or any organization described in Section 501(c)(3) of the Internal Revenue Code or similar business
trust, not formed for the specific purpose of acquiring the Shares, with total assets in excess of $5,000,000;

 

		___	10.          A
trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares, whose purchase
is directed by a sophisticated person as described in Rule  506(b)(2)(ii) of the Exchange Act;

 

    	-6-

    	 

    

 

		___	11.          An entity in which all of the
                                                                                 equity owners qualify under any of the above subparagraphs. If the undersigned belongs to this investor category only, list
                                                                                 the equity owners of the undersigned, and the investor category which each such equity owner satisfies: _____________________________________

 

	 	(Continue on a separate piece of paper, if necessary.)

 

Please set forth in
the space provided below the (i) states, if any, in the U.S. in which you maintained your principal office during the past
two years and the dates during which you maintained your office in each state, (ii) state(s), if any, in which you are incorporated
or otherwise organized and (iii) state(s), if any, in which you pay income taxes.

 

	 	 
	 	 
	 	 
	 	 
	 	 

 

Dated:__________________________, 2013

 

	 	 
	Print Name of Investor	 
	 	 
	 	 
	Name:	 
	Title:	 
	(Signature and title of authorized officer, partner or trustee)	 

 

    	-7-

    	 

    

 

Exhibit C-1

 

OPINION OF COMPANY COUNSEL

 

    	-8-

    	 

    

 

Exhibit C-2

 

OPINION OF VENABLE LLP

 

    	-9-

    	 

    

 

Exhibit D

 

FORM OF CONTINGENT VALUE RIGHTS AGREEMENT

 

This CONTINGENT VALUE RIGHTS AGREEMENT
(this “Agreement”), dated as of June [__], 2013, is by and among American Realty Capital Properties, Inc., a
Maryland corporation (the “Company”), and the holder set forth on the signature page hereto (together with
their successor and their permitted assigns, the “Holder”).

 

WHEREAS, in connection with the
issuance by the Company of 29,411,764 shares of the Company’s common stock, par value $0.01
per share (the “Common Stock”) on the date hereof pursuant to that certain Stock Purchase Agreement, dated as
of June 4, 2013 (the “Stock Purchase Agreement”), by and among the Company and the investors party thereto (the
“Investors”), the Company is obligated to issue 29,411,764 contingent value rights subject to the terms and
conditions contained herein (each such right, a “Contingent Value Right”), including [______] Contingent Value
Rights to the Holder (which initially is an Investor) pursuant to this Agreement. Capitalized terms used but not defined in this
Agreement shall have the respective meanings assigned thereto in the Stock Purchase Agreement.

 

NOW, THEREFORE, in consideration
of the mutual covenants and undertakings contained herein and for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

		1)	Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms
have the meanings indicated:

 

“Purchase Price” shall
initially equal $15.47; provided that such amount shall be equitably adjusted upon the occurrence of any event that would have
resulted in the adjustment of the “Fixed Conversion Price” (as defined in the Articles Supplementary for the Company’s
Series C Convertible Preferred Stock (the “Series C Preferred Stock”) and to the same extent of such adjustment
(the “Articles Supplementary”).

 

“Test Date” means the
sixty-first (61st) trading day following the Closing.

 

“VWAP” means the dollar
volume-weighted average price for the Common Stock on its Trading Market during the period beginning at 9:30:01 a.m., New York
time (or such other time as the Trading Market publicly announces is the official open of trading), and ending at 4:00:00 p.m.,
New York time (or such other time as the Trading Market publicly announces is the official close of trading), as reported by Bloomberg,
L.P. through its “Volume at Price” function or, if the foregoing does not apply, the dollar volume-weighted average
price of such security in the over-the-counter market on the electronic bulletin board for such security during the period beginning
at 9:30:01 a.m., New York time (or such other time as the Trading Market publicly announces is the official open of trading), and
ending at 4:00:00 p.m., New York City Time (or such other time as the Trading Market publicly announces is the official close
of trading), as reported by Bloomberg, L.P., or, if no dollar volume-weighted average price is reported for such security by Bloomberg,
L.P. for such hours, the average of the highest closing bid price and the lowest closing ask price of any of the market makers
for such security as reported in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.).
If the VWAP cannot be calculated for the Common Stock on a particular date on any of the foregoing bases, the VWAP of the Common
Stock shall be the fair market value of the Common Stock on such date as determined by the Company’s Board of Directors in
good faith.

 

    	 

    	 

    
 

		2)	Contingent Value Rights.

 

(a)   
On the Test Date, the Company shall calculate the VWAP per Common Share for the period covering the 30th through
the 60th trading days after the Closing (the “CVR Period VWAP”).

 

(b)  
Within five (5) Business Days following the Test Date, the Company shall pay to the Holder, in immediately available funds
to an account designated in writing by such Holder, an amount equal to (a) the number of Contingent Value Rights held by the Holder
on the Test Date multiplied by (ii) the amount (the “Settlement Amount”), which shall not be less than
zero nor greater than $1.50, equal to the difference between (A) the Purchase Price and (B) the CVR Period VWAP.

 

(c)   
If the number of shares of Common Stock is adjusted upon the occurrence of any event that would have resulted in the adjustment
of the Fixed Conversion Price (as defined in the Articles Supplementary), the number of Contingent Value Rights shall be adjusted
proportionately.

 

		3)	Termination. This Agreement shall terminate and no Holder shall have any rights hereunder (to payment or otherwise)
upon the payment by the Company of the Settlement Amount, if any, due to the Holder pursuant to Section 2.
	 	 	 
		4)	Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Holder. Any Holder may assign all or a portion of its rights under this Agreement to any Person, provided (i) such transferee
is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities
Act”), (ii) such transferor agrees in writing with the transferee or assignee to assign such rights, and a copy of such
agreement is furnished to the Company after such assignment, (iii) the Company is furnished with written notice of the name and
address of such transferee or assignee, (iv) such transferee agrees in writing to be bound by the provisions hereof that apply
to the “Holder”, (v) such transfer shall have been made pursuant to the safe harbor for the resale of restricted securities
provided by Rule 144A under the Securities Act provided, however, that for purposes of this clause (v): (1) this Agreement or any
rights or obligations hereunder shall be deemed not to be the same class of securities as the Common Stock for purposes of Rule
144A(d)(3)(i) and (2) if the Company as the “issue” does not meet the requirements of Rule 144A(d)(4), then the Agreement
or any rights or obligations hereunder may be assigned pursuant to any other exemption from registration under the Securities Act
and (vi) such transfer shall have been made pursuant to and in accordance with the applicable requirements of this Agreement and
with all laws applicable thereto.

 

    	 

    	 

    
 

		5)	No Rights as Shareholders. This Agreement shall not entitle the Holder (or its successors or permitted assigns)
to any voting rights or other rights as a stockholder of the Company.
	 	 	 
		6)	Incorporation of Certain Sections By Reference. The following sections from the Stock Purchase Agreement shall be deemed
incorporated by reference into this Agreement, with appropriate changes as the context requires: Sections 7.4, 7.5, 7.6, 7.8, 7.9,
7.11, 7.12, 7.14 and 7.17.

 

 

[Signature
pages follow.]

    	 

    	 

    

IN WITNESS WHEREOF, each
party hereto has duly executed this Agreement or has caused this Agreement to be duly executed by an authorized officer as of the
day and year first above written.

 

	 	AMERICAN REALTY CAPITAL PROPERTIES, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

	 	[NAME OF HOLDER]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

Exhibit E

 

PLAN OF DISTRIBUTION

 

The selling stockholders may, from time
to time, sell any or all of the shares of our common stock beneficially owned by them and offered hereby directly or through one
or more underwriters, broker-dealers, agents or directly. The selling stockholders will be responsible for any underwriting discounts
or agent’s commissions. The common stock may be sold in one or more transactions at fixed prices, at prevailing market prices
at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. The selling stockholders may
use any one or more of the following methods when selling shares:

 

		·	on NASDAQ or any other national securities exchange or quotation service
on which the securities may be listed or quoted at the time of sale;

		·	in the over-the-counter market;

		·	in transactions otherwise than on these exchanges or systems or in
the over-the-counter market;

		·	through the writing of options, whether such options are listed on
an options exchange or otherwise;

		·	through ordinary brokerage transactions and transactions in which
the broker-dealer solicits purchasers;

		·	through block trades in which the broker-dealer will attempt to sell
the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

		·	through purchases by a broker-dealer as principal and resale by the
broker-dealer for its account;

		·	in an exchange distribution in accordance with the rules of the applicable
exchange;

		·	in privately negotiated transactions;

		·	through the settlement of short sales;

		·	a combination of any such methods of sale; and

		·	any other method permitted pursuant to applicable law.

 

The selling stockholders also may sell shares
under Rule 144 promulgated under the Securities Act of 1933, as amended, or the Securities Act, rather than under this prospectus
supplement.

 

In addition, the selling stockholders may
enter into hedging transactions with broker-dealers which may engage in short sales of shares in the course of hedging the positions
they assume with the selling stockholders. The selling stockholders also may sell shares short and deliver the shares to close
out such short position. The selling stockholders also may enter into option or other transactions with broker-dealers that require
the delivery by such broker-dealers of the shares, which shares may be resold thereafter pursuant to this prospectus supplement.

 

    	-2-

    	 

    

 

Broker-dealers engaged by the selling stockholders
may arrange for other broker-dealers to participate in sales. If the selling stockholders effect such transactions through underwriters,
broker-dealers or agents, such underwriters, broker-dealers or agents may receive compensation in the form of discounts, concessions
or commissions from the selling stockholders or commissions from purchasers of the shares of our common stock for whom they may
act as agent or to whom they may sell as principal, or both (which discounts, concessions or commissions as to particular underwriters,
broker-dealers or agents may be less than or in excess of those customary in the types of transactions involved).

 

The selling stockholders and any broker-dealers
or agents that are involved in selling the shares may be deemed to be “underwriters” within the meaning of the Securities
Act in connection with such sales. In such event, any compensation received by such broker-dealers or agents and any profit on
the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.
While neither we nor any selling stockholder can presently estimate the amount of such compensation, if applicable, in compliance
with the guidelines of the Financial Industry Regulatory Authority, Inc., or FINRA, the aggregate maximum discount, commission,
agency fees or other items constituting underwriting compensation to be received by any FINRA member or independent broker-dealer
will not exceed 8% of any offering pursuant to this prospectus supplement or pricing supplement, as the case may be. However, it
is anticipated that the maximum commission or discount to be received in any particular offering of securities will be less than
this amount.

 

We have agreed to indemnify the selling
stockholders against certain liabilities, including liabilities arising under the Securities Act. The selling stockholders may
agree to indemnify any agent, dealer or broker-dealer that participates in transactions involving sales of shares of common stock
against certain liabilities, including liabilities arising under the Securities Act.

 

Because selling stockholders may be deemed
to be “underwriters” within the meaning of Section 2(a)(11) of the Securities Act, the selling stockholders will be
subject to the prospectus delivery requirements of the Securities Act, which may include delivery through the facilities of NASDAQ
pursuant to Rule 153 under the Securities Act.

 

The selling stockholders will be subject
to the Securities Exchange Act of 1934, as amended, or the Exchange Act, including Regulation M promulgated thereunder, which may
limit the timing of purchases and sales of common stock by the selling stockholders and their affiliates.

 

Upon being notified by a selling stockholder
that any material arrangement has been entered into with a broker-dealer or underwriter for the sale of shares of common stock
through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer, we
will file a supplement to this prospectus supplement, if required, pursuant to Rule 424(b) under the Securities Act, disclosing
(i) the name of each such selling stockholder and of the participating broker-dealer(s) or underwriter(s), (ii) the number of shares
of common stock involved, (iii) the price at which such shares were or will be sold, (iv) the commissions paid or to be paid or
discounts or concessions allowed to such broker-dealer(s) or underwriter(s), where applicable, (v) that, as applicable, such broker-dealer(s)
or underwriter(s) did not conduct any investigation to verify the information set out or incorporated by reference in this prospectus
supplement or the accompanying prospectus and (iv) other facts material to the transaction.

 

    	-3-

    	 

    

 

There can be no assurance that the selling
stockholders will sell any or all of the shares of common stock registered pursuant to the registration statement, of which this
prospectus supplement or the accompanying prospectus form a part.

 

    	-4-

    	 

    

 

Exhibit F

 

COMPANY TRANSFER AGENT INSTRUCTIONS

 

Computershare Trust Company,
N.A.

[ADDRESS]

Attention:     [_________],
Account Representative

 

Ladies and Gentlemen:

 

Reference is made to that certain Securities
Purchase Agreement, dated as of June 4, 2013 (the “Agreement”), by and among American Realty Capital Properties,
Inc., a Maryland corporation (the “Company”), and the investors named on the Schedule of Investors attached
thereto (collectively, the “Holders”), pursuant to which the Company is issuing to the Holders shares (the “Common
Shares”) of Common Stock of the Company, par value $0.01 per share (the “Common Stock”).

 

In connection with
the consummation of the transactions contemplated by the Agreement, this letter shall serve as our irrevocable authorization and
direction to you:

 

(i) to issue an aggregate
of 29,411,764 shares of our Common Stock in the names and denominations set forth on Annex I attached hereto. The certificates
or book-entry records should bear the legend set forth on Annex II attached hereto and “stop transfer” instructions
should be placed against their subsequent transfer. Kindly make a book-entry record or deliver the certificates to the respective
delivery addresses set forth on Annex I via hand delivery or overnight courier, as instructed by the Company. We confirm that these
shares will be validly issued, fully paid and non-assessable upon issuance; and

 

(ii)  to issue
or record, as applicable (provided that you are the transfer agent of the Company at such time), certificates or book-entry records,
as applicable, for Common Shares upon transfer or resale of the Common Shares and receipt by you of certificate(s), if any, for
the Common Shares so transferred or sold (duly endorsed or accompanied by stock powers duly endorsed, in each case with signatures
guaranteed and otherwise in form eligible for transfer).

 

You acknowledge and
agree that so long as you have previously received written instruction from the Company’s legal counsel to remove the restrictive
legend(s) with respect to the Common Shares, then, unless otherwise required by law, within three (3) business days of your
receipt of certificates, if any, representing the Common Shares, you shall issue the certificates or book-entry records, as then
instructed by the Company, representing the Common Shares to the Holders or their transferees, as the case may be, registered in
the names of such Holders or transferees, as the case may be, and such certificates or book-entry records, as applicable, shall
not bear any legend restricting transfer of the Common Shares thereby and should not be subject to any stop-transfer restriction.
Any certificates tendered for transfer shall be endorsed or with stock powers attached, signatures guaranteed, and otherwise in
form necessary to affect transfer.

 

    	-5-

    	 

    

 

Please be advised that
the Holders are relying upon this letter as an inducement to enter into the Agreement and, accordingly, each Holder is a third
party beneficiary to these instructions.

 

Please execute this
letter in the space indicated to acknowledge your agreement to act in accordance with these instructions. Should you have any questions
concerning this matter, please contact our counsel, Peter M. Fass, Esq., at (212) 969-3445.

 

	 	Very truly yours,
	 	 	 
	 	AMERICAN REALTY CAPITAL 

PROPERTIES, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

THE FOREGOING INSTRUCTIONS ARE

ACKNOWLEDGED AND AGREED TO

this [___] day of [________], 2013

 

computershare
trust company, n.a.

 

	By:	 	 	 
	 	Name:	 	 
	 	Title:	 	 

 

Enclosures

 

    	-6-

    	 

    

 

ANNEX I

 

SCHEDULE OF INVESTORS

 

    	-7-

    	 

    

 

ANNEX II

 

LEGEND TO BE BORNE ON CERTIFICATES AND BOOK-ENTRY
RECORDS

 

    	-8-

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