Document:

Unassociated Document

    

    LIMITED
      LIABILITY COMPANY AGREEMENT

    

    OF

    

    AMERICAN
      REALTY CAPITAL EQUITY BRIDGE, LLC

    (a
      Delaware limited liability company)

    

    

    

    

                                

    Dated
      as of August 20, 2008

                                

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    LIMITED
      LIABILITY COMPANY OPERATING AGREEMENT OF

    AMERICAN
      REALTY CAPITAL EQUITY BRIDGE, LLC

    

    (a
      Delaware Limited Liability Company)

    

    This
      LIMITED LIABILITY COMPANY OPERATING AGREEMENT (as the same may be amended from
      time to time, this “Agreement” or “Operating Agreement”) of American Realty
      Capital Equity Bridge, LLC, a limited liability company organized under the
      laws
      of the State of Delaware (the “Company”), is made and effective as of August 20,
      2008 by and among American Realty Capital II, LLC, a Delaware limited liability
      company (the “ARC Member”) and the CAMBR COMPANY, INC., a New York corporation
      (the “Skolnick Member”), being hereinafter sometimes referred to individually as
      a “Member” and collectively as the “Members”. 

    

    BACKGROUND

    

    The
      Company was formed on August __, 2008, upon the filing of a Certificate of
      Formation with the Department of State of the State of Delaware (the
“Certificate”) pursuant to the provisions of the Delaware Limited Liability
      Company Act of 1992, Del. Code tit. 6, §§ 18-101 et seq., as amended and in
      effect from time to time (the “Act”). 

    

    The
      Members are entering into this Operating Agreement as the governing instrument
      of the Company from and after the date of this Agreement.

    

      ARC
        Member is $100% owned by: Nicholas S. Schorsch, William M. Kahane, Peter
        Budko,
        Michael Weil and Brian Block, all presently senior executives engaged full-time
        in managing American Realty Capital affiliated companies (collectively, the
“
Principals”).

    

     

    NOW,
      THEREFORE,
      intending to be legally bound and in consideration of the promises made herein,
      the Members agree as follows:

    

    ARTICLE
      1

    

    GENERAL
      PROVISIONS

    1.1 Defined
      Terms.

    

    “Adjusted
      Capital Account” means, with respect to any Member, the deficit balance, if any,
      in such Member’s Capital Account as of the end of the relevant Fiscal Year,
      after giving effect to the following adjustments:

    

    (i) Credit
      to
      such Capital Account any amounts that such Member is obligated to restore
      pursuant to any provision of this Agreement or is deemed to be obligated to
      restore pursuant to the penultimate sentences of Treasury Regulations Sections
      1.704-2(g)(1) and 1.704-2(i)(5); and

    

    (ii) Debit
      to
      such Capital Account the items described in Treasury Regulations Sections
      1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), and
      1.704-1(b)(2)(ii)(d)(6).

    

    The
      foregoing definition of “Adjusted Capital Account” is intended to comply with
      the provisions of Treasury Regulations Section 1.704-1(b)(2)(ii)(d) and shall
      be
      interpreted consistently therewith.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Affiliate”
      shall mean any entity that directly or indirectly through one or more
      intermediaries controls, is controlled by, or is under common control with
      a
      party hereto. “Control” (including, with correlative meanings, the terms
“controlled by” and “under common control with”) means the ownership or control
      of securities possessing at least 50% of the voting power of all outstanding
      voting securities of an entity or the power to otherwise direct or cause the
      direction of the management and policies of such entity, whether through the
      ownership of voting stock or similar rights. For the purposes of this
      definition, partnerships, joint ventures or similar entities, a
      majority-in-interest of whose partners, venturers or other owners is a party
      hereto and/or an Affiliate of a party hereto, shall be deemed to be Affiliates
      of such party.

    

    “Capital
      Account” shall mean, with respect to a Member, such Member’s capital account
      established and maintained in accordance with the provisions of Section
      7.1.

    

    “Capital
      Contribution” shall mean, with respect to any Member, the aggregate amount of
      money and the fair market value of any property other than money contributed
      to
      the Company by such Member (net of any associated liabilities assumed by the
      Company).

    

    “Code”
      shall mean the Internal Revenue Code of 1986, as amended from time to time
      (or
      any corresponding provisions of succeeding law).

    

    “Distribution”
      shall mean, with respect to any Member, the amount of money, and the fair market
      value of any property other than money, distributed to such Member by the
      Company (net of associated liabilities assumed by such Member).

    

    “Family
      Member” shall mean the spouse, parents, descendants, siblings, mother and
      father-in-law, sons and daughters-in-law and brothers and sisters-in-law of
      a
      Member and any trust whose beneficiaries are one or more of the Member and
      such
      persons or any partnership or other entity whose owners are one or more of
      the
      Member and such persons.

    

    “Income”
      means the gross income and gains of the Company (as computed for federal income
      tax purposes) plus (a) income of the Company exempt from tax and described
      in
      Code Section 705(a)(1)(B), (b) the excess, if any, of the fair market value
      of
      distributed property over its Tax Book Value and (c) the amount of any increase
      in the Tax Book Value of the Company’s property pursuant to Section 11.7(c)
      hereof. In computing Income, items of income and gain relating to Company assets
      shall be computed based upon the Tax Book Values of the Company assets rather
      than upon the assets’ adjusted basis for federal income tax
      purposes.

    

    “IRS”
      shall mean the Internal Revenue Service.

    

    “Loss”
      means the deductions and gross losses of the Company (as computed for federal
      income tax purposes) plus (a) items of expenditure described in Code Section
      705(a)(2)(B), (b) the excess, if any, of the Tax Book Value of the distributed
      property over its fair market value and (c) the amount of any decrease in the
      Tax Book Value of the Company’s property pursuant to Section 11.7(c) hereof. In
      computing Loss, items of deduction and loss relating to Company assets shall
      be
      computed based upon the Tax Book Values of the Company assets rather than upon
      the assets’ adjusted basis for federal income tax purposes. 

    

    “Majority-in-Interest”
      shall mean Members holding a Percentage Interest of at least fifty one percent
      (51%) of the Percentage Interest held by all members.

    

    “Membership
      Interest” shall mean an ownership interest in the Company.

     

    
      
        
        

      

      
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    “Minimum
      Gain” has the meaning specified in Treasury Regulation Section
      1.704-2(d).

    

    “Net
      Cash
      Flow” shall mean the amount determined by the Manager in accordance with the
      following principles: Net Cash Flow during any period shall be the excess,
      if
      any, of (a) the sum of (1) the gross receipts of the Company (as determined
      in
      accordance with the cash receipts and disbursements method of accounting) during
      such period, but without regard to any amounts received by the Company on the
      sale or other disposition of all or substantially all of its assets, (2) all
      amounts contributed to the Company during such period by any Member, and (3)
      any
      amounts released during such period by the Manager from any reserve maintained
      by the Company, over (b) the sum of (1) all expenditures of the Company (as
      determined under the aforesaid method of accounting) during such period, (2)
      all
      amounts applied during such period in payment of interest or principal on any
      borrowing of the Company, and (3) any amount added during such period by the
      Manager to reserves for working capital, contingencies, replacements,
      expansions, acquisitions, or other expenditures of the Company. Releases and
      additions to the reserves described in this definition shall be made by the
      Manager.

    

    “Percentage
      Interest” shall mean the percentage ownership interest of each Member in the
      Company. The initial Percentage Interest of each of the Members is set forth
      on
Schedule
      A.

    

    “Person”
      shall mean any individual or entity, and the heirs, executors, administrators,
      legal representatives, successors and assigns of such Person as the context
      may
      require.

    

    “Proceeding”
      means any threatened, pending or completed action, suit, appeal or other
      proceeding of any nature, whether civil, criminal, administrative or
      investigative, whether formal or informal, and whether brought by or in the
      right of the Company, a class of its Members or security holders or otherwise.
      

    

    “Properties”
      means single-tenant, usually free-standing, real estate assets net-leased to
      investment grade or other credit worthy tenants consisting of various national
      retailers and major corporations, including commercial banks, or such other
      properties as the Members shall agree. 

    

    “Purchase
      Price” means the sum of: (a) the appraised value (based upon a third party
      appraisal of the Properties) prepared by a third party appraiser acceptable
      to
      Company and prepared in accordance with the appraisal requirements generally
      acceptable to the Company (“Appraised Value”); and (b) all transaction
      costs and expenses directly related to the purchase, subject to a limit of
      5% of
      (a) above. The Purchase Price shall include only related acquisition costs,
      and shall not include any general administrative expenses or overhead costs
      of
      the Company, or of the Facility, or of the ARC Member, or of the Skolnick
      Member. 

    

    “Treasury
      Regulations” shall mean the income tax regulations promulgated under the Code,
      as may be amended from time to time (including corresponding provisions of
      succeeding regulations). 

    

    Capitalized
      terms not defined in this Agreement shall have meanings set forth in the Loan
      Agreement.

    

    1.2 Business.
      The
      Company may carry on any lawful business, purpose or activity for which limited
      liability companies may be organized under the Act, including to provide a
      revolving loan of up to $10,000,000 from time to time to Affiliates of the
      ARC
      Member as needed to provide short-term financing related to property
      acquisitions (the “Facility”) in accordance with the terms and conditions of the
      Form of Loan Agreement (the “Loan Agreement”). The Company shall possess and may
      exercise all the powers and privileges granted by the Act or by any other law,
      together with any powers incidental thereto, so far as such powers and
      privileges are necessary or convenient to the conduct, promotion or attainment
      of the business, purposes or activities of the Company.

     

    
      
        
        

      

      
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    1.3 Principal
      and Registered Office.
      The
      address of the principal office of the Company is 1725 The Fairway, Jenkintown,
      PA 19046. The registered office of the Company in the State of Delaware is
      c/o
      Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington,
      New
      Castle County, Delaware 19808. The initial registered agent at such address
      is
      Corporation Service Company. The registered office and the registered agent
      may
      be changed from time to time by action of the Manager by filing notice of such
      change with the Department of State of the State of Delaware. The Manager will
      promptly notify the Members of any change of the registered office or registered
      agent.

     

    1.4 Term.
      The
      Company commenced operating on August __, 2008, on the date the certificate
      was
      filed with the Secretary of State of the State of Delaware and, unless earlier
      terminated or dissolved pursuant to the Act or this Agreement, the Company
      shall
      have a term of one (1) year, and the option of an additional one (1) year
      extension, which extension is subject to the unanimous prior consent of the
      Members.

     

    1.5 Fiscal
      Year.
      The
      fiscal year of the Company shall be its taxable year and shall begin on January
      1 and end on December 31 of each calendar year, unless a different year is
      required under the Code.

     

    1.6 Members
      Names and Addresses.
      The
      name and address of each Member is set forth on Schedule
      A
      hereto. 

     

    1.7 Partition.
      No
      Member, nor any successor-in-interest to any Member, shall have the right,
      while
      this Agreement remains in effect, to have the property of the Company
      partitioned, or to file a complaint or institute any Proceeding at law or in
      equity to have the property of the Company partitioned, and each of the Members,
      on behalf of itself and its successors, representatives and assigns, hereby
      irrevocably waives any such right.

     

    1.8 Title
      to Company Property.
      All
      property owned by the Company, whether real or personal, tangible or intangible,
      shall be deemed to be owned by the Company, and no Member individually shall
      have any interest in such property. Title to all such property may be held
      in
      the name of the Company or a designee, which designee may be a Member or an
      entity affiliated with a Member.

     

    1.9 Activities
      of the Members.
      Each
      Member and any affiliates of such Member may engage in or hold an interest
      in
      other business ventures of any nature, including ventures and activities similar
      to and competitive with the Company. 

     

    1.10 Member
      Reimbursement.
      Each
      Member shall bear its own costs and expenses in entering into this Agreement
      and
      fulfilling its duties and obligations as a Member.

    

    1.11 Membership
      Interests Uncertificated.
      The
      interests of the Members in the Company shall not be certificated.

    

    
      
        
        

      

      
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    ARTICLE
      2

    

    MEETINGS
      GENERALLY

    2.1 Manner
      of Giving Notice.
      A
      notice of meeting shall specify the place, day and hour of the meeting and
      any
      other information required by any provision of the Act, the Certificate or
      this
      Agreement. When a meeting is adjourned, it shall not be necessary to give any
      notice of the adjourned meeting or of the business to be transacted at an
      adjourned meeting, other than by announcement at the meeting at which the
      adjournment is taken, unless the adjournment is for more than 60 days or the
      Members or the Manager fix a new record date for the adjourned meeting in which
      event notice shall be given in accordance with Section 2.2 or Section 2.3,
      as
      applicable. 

     

    2.2 Notice
      of Meetings of Members.
      Written
      notice of every meeting of the Members shall be given to each Member of record
      entitled to vote at the meeting at least five days prior to the day named for
      the meeting in any other case. If the Manager neglects or refuses to give notice
      of a meeting, the person or persons calling the meeting may do so.

     

    2.3 Waiver
      of Notice.
      Whenever any written notice is required to be given under the provisions of
      the
      Act, the Certificate or this Agreement, a waiver thereof in writing, signed
      by
      the person or persons entitled to the notice, whether before or after the time
      stated therein, shall be deemed equivalent to the giving of the notice. Neither
      the business to be transacted at, nor the purpose of, a meeting need be
      specified in the waiver of notice of the meeting. Attendance of a person at
      any
      meeting shall constitute a waiver of notice of the meeting except where a person
      attends a meeting for the express purpose of objecting, at the beginning of
      the
      meeting, to the transaction of any business because the meeting was not lawfully
      called or convened.

     

    2.4 Use
      of
      Conference Telephone and Similar Equipment.
      Any
      Member may participate in any meeting of the Members by means of conference
      telephone or similar communications equipment by means of which all persons
      participating in the meeting can hear each other. Participation in a meeting
      pursuant to this Section shall constitute presence in person at the
      meeting. 

     

    2.5 Consent
      in Lieu of Meeting.
      Any
      action required or permitted to be taken at a meeting of the Members may be
      taken without a meeting if, prior or subsequent to the action, written consents
      describing the action to be taken are signed by the minimum number of Members
      that would be necessary to authorize the action at a meeting at which all
      Members entitled to vote thereon were present and voting. The consents shall
      be
      filed with the Manager. Prompt notice of the taking of the Company action
      without a meeting by less than unanimous written consent shall be given to
      those
      Members who have not consented in writing.

    

    ARTICLE
      3

    

    MANAGEMENT

     

    3.1 Management
      of the Company Generally.
      The
      business and affairs of the Company shall be managed by its Manager. Unless
      authorized to do so by this Agreement or by the Manager of the Company, no
      attorney-in-fact, employee, officer or agent of the Company other than the
      Manager shall have any power or authority to bind the Company in any way, to
      pledge its credit or to render it liable pecuniarily for any purpose. No Member
      shall have any power or authority to bind the Company unless the Member has
      been
      expressly authorized by the Manager to act as an agent of the Company. Except
      for situations in which the approval of the Members is expressly required by
      this Agreement or by non-waivable provision of the Act, the Manager shall have
      full and complete authority, power and discretion to direct, manage and control
      the business, affairs and properties of the Company, to make all decisions
      regarding those matters and to perform any and all other acts or activities
      customary or incident to the management of the Company’s business. 

     

    
      
        
        

      

      
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    3.2 Designation
      of Manager.
      A
      Person may be named or designated as a Manager of the Company pursuant to
      Section 3.4. A Manager may make contributions to the Company and share in the
      profits and losses of, and in distributions from, the Company as a Member.
      A
      Person who is both a Manager and a Member has the rights and powers, and is
      subject to the restrictions and liabilities, of a Manager and, except as
      provided in this Agreement, also has the rights and powers, and is subject
      to
      the restrictions and liabilities, of a Member to the extent of his or her
      participation in the Company as a Member.

     

    3.3 Compensation
      of Manager; Reimbursement.
      No
      fees, compensation, reimbursement, salaries or other benefits shall be paid
      to
      Manager or any successor manager in its capacity as Manager. Neither Manager
      nor
      its Affiliates shall receive any other fee or compensation for acting as Manager
      or in connection with the loan agreements contemplated herein. The Manager
      or
      any successor manager in its capacity as manager shall bear its own costs and
      expenses incurred in connection with fulfilling its duties and obligations
      as
      manager. 

     

    3.4 Number,
      Selection and Term of Office.
      There
      shall be one Manager and, initially, the ARC Member shall be Manager. The
      Manager may be replaced by a successor manager elected by a Majority-in-Interest
      of the Members. Each Manager shall hold office until a successor has been
      elected or until such Manager’s earlier resignation or removal.

     

    3.5 Reliance
      by Third Parties.
      Persons
      dealing with the Company are entitled to rely conclusively upon a certificate
      of
      the Manager to the effect that it is then acting as the Manager and upon the
      power of the Manager as herein set forth. 

     

    3.6 Liability
      for Certain Acts.
      The
      Manager shall perform its managerial duties in good faith, in a manner
      reasonably believed to be in the best interests of the Company, and with such
      care and business judgment as an ordinarily prudent person in a like position
      would use under similar circumstances, including the reliance in good faith
      upon
      the records of the Company and upon such information, opinions, reports or
      statements presented to the Company by the Manager, Members, officers, employees
      or committees of the Company or by any other person, as to matters the Manager
      reasonably believe are within such other person’s professional or expert
      competence and who has been selected with reasonable care by or on behalf of
      the
      Company. The Manager does not, in any way, guarantee the return of the Members’
Capital Contributions or a profit for the Members from the operations of the
      Company. The Manager who so performs the duties of the Manager shall not be
      liable to the Company or to any Member for any loss or damage sustained by
      the
      Company or any Member, unless (i) the Manager has breached or failed to perform
      the duties of its position under the Act, the Certificate or this Agreement
      and
      (ii) the breach or failure to perform constitutes self-dealing, willful
      misconduct or recklessness by the Manager. Nothing in this paragraph shall
      apply
      to the liability of a Manager pursuant to any criminal statute, or for the
      payment of taxes pursuant to federal, state or local law.

     

    3.7 Reliance
      on Reports and Information by Member or Manager.
      A
      Member or Manager of the Company shall be fully protected in relying in good
      faith upon the records of the Company and upon such information, opinions,
      reports or statements presented to the Company by any of its other Members,
      officers, employees or committees of the Company, or by any other person, as
      to
      matters the Member or Manager reasonably believes are within such other person’s
      professional or expert competence and who has been selected with reasonable
      care
      by or on behalf of the Company, including information, opinions, reports or
      statements as to the value and amount of the assets, liabilities, profits or
      losses of the Company or any other facts pertinent to the existence and amount
      of assets from which distributions to Members might properly be
      paid.

     

    
      
        
        

      

      
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    3.8 Bank
      Accounts.
      The
      Manager may from time to time open bank accounts in the name of the Company,
      and
      the Manager shall be the sole signatory or signatories thereon.

     

    3.9 Resignation.
      A
      Manager of the Company may resign at any time by giving written notice to the
      Company. The resignation of a Manager shall be effective upon receipt of such
      notice or at such later time as shall be specified in the notice. Unless
      otherwise specified in the notice, the acceptance of the resignation shall
      not
      be necessary to make such resignation effective. The resignation of a Manager
      who is also a Member shall not affect the Manager’s rights as a Member and shall
      not constitute a withdrawal of a Member.

     

    3.10 Removal.
      Any
      individual Manager may be removed from office at any time, without assigning
      any
      cause by the affirmative vote of Members who hold a Majority-in-Interest. The
      removal of a Manager who is also a Member shall not affect the Manager’s rights
      as a Member and shall not constitute a withdrawal of a Member. 

     

    3.11 Vacancies.
      Any
      vacancy with respect to a Manager occurring for any reason may be filled by
      election pursuant to Section 3.4. 

     

    3.12 Outside
      Interests.
      A
      Manager shall not be required to manage the Company as such Manager’s sole and
      exclusive function, and a Manager may engage, invest and participate in and
      otherwise enter into other business ventures of any kind, nature or description,
      individually or with others, whether or not any such business venture competes
      with the business of the Company, and neither the Company nor any Member shall
      have any right in or to any such activities or the income or profits derived
      therefrom.

    

    ARTICLE
      4

    

    MEMBERS

     

    4.1 Admission
      of Members.
      One or
      more Persons may be admitted as members of the Company from time to time subject
      to (i) the prior consent of the Members and (ii) each additional Member’s
      execution of a counterpart signature page of this Agreement (as such may be
      required to be amended for the purpose of admitting additional Members);
      provided, however, that prior to such admission, the Manager shall consult
      with
      appropriate tax counsel to determine the effects, if any, upon the continued
      qualification of the Company as an entity that is disregarded as an entity
      separate from the Member for federal and state income tax purposes. The Manager
      may issue additional Membership Interests (including different classes of
      Membership Interests) at fair market value to such Persons (including any
      Member, any Affiliate of any Member or any Person who is not then a Member)
      and
      on such terms as the Manager may determine, subject to Section 4.11. The Manager
      shall promptly amend Schedule
      A
      to
      reflect the issuance of additional Membership Interests to a new or existing
      Member. Each new Member shall execute an instrument agreeing to be bound as
      a
      Member by the terms and conditions of this Agreement.

     

    4.2 Meetings.
      Meetings of the Members, for any purpose or purposes, unless otherwise
      prescribed by statute, may be called by the Manager or by any
      Member.

     

    
      
        
        

      

      
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    4.3 Place
      of Meeting.
      The
      Manager or Members calling a meeting pursuant to Section 4.2 may designate
      any
      place as the place for any meeting of the Members. If no designation is made,
      the place of meeting shall be the principal office of the Company.

     

    4.4 Record
      Date.
      For the
      purpose of determining Members entitled to notice of, or to vote at, any meeting
      of Members or any adjournment of the meeting, or Members entitled to receive
      payment of any distribution, or to make a determination of Members for any
      other
      purpose, the date on which notice of the meeting is mailed or the date on which
      the resolution declaring the distribution or relating to such other purpose
      is
      adopted, as the case may be, shall be the record date for the determination
      of
      Members. Only Members of record on the date fixed shall be so entitled
      notwithstanding any permitted transfer of a Member’s Membership Interest after
      any record date fixed as provided in this Section. When a determination of
      Members entitled to vote at any meeting of Members has been made as provided
      in
      this Section, the determination shall apply to any adjournment of the
      meeting.

     

    4.5 Quorum.
      A
      meeting of Members of the Company duly called shall not be organized for the
      transaction of business unless a quorum is present. The presence of Members
      who
      own a Majority-in-Interest represented in person or by proxy shall constitute
      a
      quorum at any meeting of Members. In the absence of a quorum at any meeting,
      Members who own a Majority-in-Interest so represented may adjourn the meeting
      from time to time for a period not to exceed 60 days without further notice.
      However, if the adjournment is for more than 60 days, or if after the
      adjournment a new record date is fixed for the adjourned meeting, a notice
      of
      the adjourned meeting shall be given to each Member of record entitled to vote
      at the meeting pursuant to Section 2.1. At an adjourned meeting at which a
      quorum shall be present or represented, any business may be transacted which
      might have been transacted at the meeting as originally noticed. The Members
      present at a duly organized meeting may continue to transact business until
      adjournment, notwithstanding the withdrawal during the meeting of Members whose
      absence would cause less than a quorum.

     

    4.6 Manner
      of Acting.
      Except
      as otherwise provided in the Act or the Certificate or this Agreement, whenever
      any Company action is to be taken by vote of the Members of the Company, it
      shall be authorized upon receiving the affirmative vote of a
      Majority-in-Interest of the Members.

     

    4.7 Voting
      Rights of Members.
      Unless
      otherwise provided in the Certificate, every Member of the Company shall be
      entitled to such number of votes as is equal to that Member’s then current
      Percentage Interest.

     

    4.8 Relationship
      of Members.
      Except
      as otherwise expressly and specifically provided in or as authorized pursuant
      to
      the Certificate or this Agreement, (a) in the event that any Member (or any
      of
      such Member’s shareholders, partners, members, owners, or Affiliates
      (collectively, the “Liable Member”)) has incurred any indebtedness or obligation
      prior to the date of this Agreement that relates to or otherwise affects the
      Company, neither the Company nor any other Member shall have any liability
      or
      responsibility for or with respect to such indebtedness or obligation unless
      such indebtedness or obligation is assumed by the Company pursuant to this
      Agreement or a written instrument signed by all Members; (b) neither the Company
      nor any Member shall be responsible or liable for any indebtedness or obligation
      that is incurred after the date of this Agreement by any Liable Member, and
      in
      the event that a Liable Member, whether prior to or after the date hereof,
      incurs (or has incurred) any debt or obligation that neither the Company nor
      any
      of the other Members is to have any responsibility or liability for, the Liable
      Member shall indemnify and hold harmless the Company and the other Members
      from
      any liability or obligation they may incur in respect thereof; (c) nothing
      contained herein shall render any Member personally liable for any debts,
      obligations or liabilities incurred by the other Members or the Company whether
      arising in contract, tort or otherwise or for the acts or omissions of any
      other
      Member, Manager, agent or employee of the Company; (d) no Member shall be
      constituted an agent of the other Members or the Company; (e) nothing contained
      herein shall create any interest on the part of any Member in the business
      or
      other assets of the other Members; (f) nothing contained herein shall be deemed
      to restrict or limit in any way the carrying on of separate businesses or
      activities by any Member now or in the future, even if such businesses or
      activities are competitive with the Company; and (g) no Member shall have any
      authority to act for, or to assume any obligation on behalf of, the other
      Members or the Company.

     

    
      
        
        

      

      
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    4.9 Business
      Transactions of Member or Manager with the Company.
      A
      Member or Manager may lend money to, borrow money from, act as a surety,
      guarantor or endorser for, guarantee or assume one or more obligations of,
      provide collateral for, and transact other business with the Company and,
      subject to other applicable law, has the same rights and obligations with
      respect to any such matter as a person who is not a Member or
      Manager.

     

    4.10 Interested
      Transactions.

    

    (a) General
      Rule.
      A
      contract or transaction between the Company and one or more of its Affiliates,
      Members, Manager or officers or between the Company and another limited
      liability company, corporation, partnership, joint venture, trust or other
      enterprise in which one or more of its Members, Manager or officers are members,
      Manager or officers or have a financial or other interest, shall not be void
      or
      voidable solely for that reason, or solely because the Member, Manager or
      officer is present at or participates in the meeting of the Members that
      authorizes the contract or transaction, or solely because his, her or their
      votes are counted for that purpose, if:

    

    (1) material
      facts as to its relationship or interest and as to the contract or transaction
      are disclosed or are known to the Members entitled to vote thereon and the
      contract or transaction is specifically approved in good faith by a
      Majority-in-Interest of the Members; or

    

    (2) the
      contract or transaction is fair as to the Company as of the time it is
      authorized, approved or ratified by the Manager or the Members.

    

    (b) Quorum.
      Common
      or interested Members may be counted in determining the presence of a quorum
      at
      a meeting of the Members which authorizes a contract or transaction specified
      in
      subsection (a). 

     

    4.11 Approval
      of Certain Matters by the Members.
      Notwithstanding any provision of this Agreement to the contrary, the following
      matters require unanimous approval of the Members: (a) merger or consolidation
      of the Company with any other entity; (b) sale of all or substantially all
      of
      the assets of the Company; (c) division or conversion to corporate form of
      the
      Company; (d) payment of compensation to any Manager for acting in such capacity;
      (e) the admission of additional Members to the Company, except for transfers
      permitted by Section 9.1(a) of this Agreement; (f) liquidation of the Company;
      or (g) acquisition of another entity; or (h) making advances to an
      Affiliate of the ARC Member pursuant to the Facility and the terms and
      conditions of the Loan Agreement.

     

    4.12 Bankruptcy
      of a Member.
      A
      Person ceases to be a Member upon the happening of any of the following events
      (each, a “Bankruptcy Event”), after which the Person shall be entitled to
      receive only the allocations and distributions attributed to the Person’s
      Membership Interest in the Company, if any, but shall not be entitled to any
      other rights of a Member:

     

    
      
        
        

      

      
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    (a) A
      Member
      takes any of the following actions:

    

    (1) Makes
      an
      assignment for the benefit of creditors;

    

    (2) Files
      a
      voluntary petition in bankruptcy;

    

    (3) Is
      adjudged a bankrupt or insolvent, or has entered against the Member an order
      for
      relief, in any bankruptcy or insolvency proceeding;

    

    (4) Files
      a
      petition or answer seeking for himself any reorganization, arrangement,
      composition, readjustment, liquidation, dissolution or similar relief under
      any
      statute, law or regulation;

    

    (5) Files
      an
      answer or other pleading admitting or failing to contest the material
      allegations of a petition filed against the Member in any proceeding of this
      nature; or

    

    (6) Seeks,
      consents to or acquiesces in the appointment of a trustee, receiver or
      liquidator of the Member or of all or any substantial part of the properties
      of
      the Member.

    

    (b) 120
      days
      after the commencement of any proceeding against the Member seeking
      reorganization, arrangement, composition, readjustment, liquidation, dissolution
      or similar relief under any statute, law or regulation, if the proceeding has
      not been dismissed, or if within 90 days after the appointment without the
      consent or acquiescence of the Member, of a trustee, receiver or liquidator
      of
      the Member or of all of any substantial part of the properties of the Member,
      the appointment is not vacated or stayed, or within 90 days after the expiration
      of any such stay, the appointment is not vacated.

    

    ARTICLE
      5

    

    INDEMNIFICATION

     

    5.1 Indemnification
      by the Company.
      To the
      fullest extent permitted by the laws of the State of Delaware, as they exist
      on
      the date hereof or as they may hereafter be amended, the Company shall indemnify
      any person who is or was a Manager, Member, Tax Matters Member, employee or
      agent of the Company or any person who is the legal representative of any such
      Manager, Member, Tax Matters Member, employee or agent of the Company (an
“Indemnitee”), from and against any and all claims, demands and expenses
      (including without limitation attorneys’ fees, judgments, fines, penalties,
      excise taxes and amounts paid in settlement) incurred by the Indemnitee by
      reason of the fact that such person was a Manager, Member or Tax Matters Member,
      or, while serving as a Manager, is or was at the request of the Company also
      serving as a manager, director, employee, officer, or agent of another entity
      (including without limitation any employee benefit plan). The right of
      indemnification created by this Section 5.1 shall be a contract right
      enforceable by an Indemnitee against the Company, and it shall be exclusive
      of
      any other rights to which an Indemnitee may otherwise be entitled. The
      provisions of this Section 5.1 shall inure to the benefit of the heirs and
      legal
      representatives of an Indemnitee. No amendment, alteration, change, addition
      or
      repeal of or to this Operating Agreement shall deprive any Indemnitee of any
      rights under this Section 5.1 with respect to any act or omission of such
      Indemnitee occurring prior to such amendment, alteration, change, addition
      or
      repeal.

     

    
      
        
        

      

      
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    ARTICLE
      6

    

    CAPITALIZATION 

     

    6.1 Capital
      Accounts. 

    

    (a) The
      Company shall maintain Capital Accounts determined and adjusted in accordance
      with the rules of Treasury Regulations Section 1.704-1(b)(2)(iv).

    

    (b) A
      Member
      shall not be entitled to withdraw any part of its Capital Account or to receive
      any distribution from the Company, except as specifically provided in this
      Agreement. Any Member, including any substituted Member, that shall receive
      a
      Membership Interest or whose Membership Interest shall be increased by means
      of
      a transfer to it of all or part of the Membership Interest of another Member,
      shall have a Capital Account that reflects such transfer.

     

    6.2 Initial
      Capital Contributions. Each Member has made an irrevocable capital
      commitment of $5 million, such that in the aggregate the commitment to the
      Facility shall be $10 million. Upon execution of this Agreement, each Member
      shall affirm the capital commitment set forth opposite such Member’s name on
Schedule A hereto and shall receive therefor the Percentage
      Interest set forth thereon. The initial Capital Accounts of the Members shall
      be
      equal to the fair market value of the Members’ initial Capital Contribution, and
      shall be drawn, pari passu, pursuant to the terms of this Agreement.
      (See Article 14.)  

     

    6.3 No
      Additional Contributions. No Member shall be required to contribute any
      capital to the Company in addition to the amounts required by Section 6.2,
      unless the Members unanimously agree to increase the amount of Capital
      Contributions. 

     

    6.4 Use
      of
      Capital Contributions.
      The
      Capital Contributions made pursuant to this Article shall be used, together
      with
      other funds available to the Company, to engage in the Business, including
      without limitation, to make advances under the Facility pursuant to the terms
      and conditions of the Loan Agreement and for the payment of the liabilities
      and
      obligations of the Company.

     

    6.5 No
      Interest on or Return of Capital.
      No
      Member shall be entitled to interest on any Capital Contribution or Capital
      Account, except to the extent the Capital Contribution becomes a loan pursuant
      to the terms of the Loan Agreement. No Member shall have the right to demand
      or
      receive the return of all or any part of any Capital Contribution or Capital
      Account, except as otherwise may be expressly provided herein, and no Member
      shall be personally liable for the return of the Capital Contribution of any
      other Member.

     

    6.6 Limitations
      Upon Liability of Members.
      Except
      as otherwise expressly and specifically provided in or required by the
      Certificate or this Agreement, the personal liability of each Member to the
      Company, to the other Members, to the creditors of the Company or any third
      party for the losses, debts or liabilities of the Company shall be limited
      to
      the amount of its Capital Contribution which has not theretofore been returned
      to it as a distribution (including a distribution upon liquidation). For
      purposes of the foregoing sentence, distributions to a Member shall first be
      deemed a return of its Capital Contribution. No Member shall at any time be
      liable or held accountable to the Company, to the other Members, to the
      creditors of the Company or to any other third party for or on account of any
      negative balance in its Capital Account. To the fullest extent permitted by
      the
      Act, a Member shall have no obligation to return any distributions received
      from
      the Company.

     

    
      
        
        

      

      
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    ARTICLE
      7

    

    ALLOCATIONS
      OF PROFIT AND LOSS

     

    7.1 Allocations
      Generally.
      Except
      as otherwise provided in Sections 7.2 or 7.3 hereof, each item of Income and
      Loss shall be allocated as follows:

    

    (a) Income
      in Excess of Loss.
      Income
      in excess of Loss shall be allocated: (i) first, to restore losses allocated
      under Section 7.1(b)(iii) to the extent of, such negative balances, (ii) second,
      to restore losses allocated under Section 7.1(b)(ii) to the extent of, such
      negative balances, and (iii) third, among the Members in accordance with their
      respective Percentage Interests. 

    

    (b) Loss
      in Excess of Income.
      Loss in
      excess of Income shall be allocated: (i) first, among the Members in accordance
      with their respective Percentage Interest unless and until the Adjusted Capital
      Account of any Member has been reduced to zero, (ii) second, among the Members
      who have positive Adjusted Capital Account balances in proportion to and to
      the
      extent of, those positive Adjusted Capital Account balances, and (iii) third,
      to
      the Members in proportion to their respective Percentage Interests.

     

    7.2 Allocations
      Under Regulations.

    

    (a) Company
      Nonrecourse Deductions.
      Loss
      attributable (under Treasury Regulation Section 1.704-2(c)) to “company
      nonrecourse liabilities” (within the meaning of Treasury Regulation Section
      1.704-2(b)(1)) shall be allocated among the Members in accordance with their
      respective Percentage Interest. As the allocation of company nonrecourse
      deductions will increase the potential minimum gain chargeback under Section
      7.2(d), an allocation of company nonrecourse deductions under this provision
      will not reduce a Member’s Capital Account.

    

    (b) Member
      Nonrecourse Deductions.
      Loss
      attributable (under Treasury Regulation Section 1.704-2(i)(2)) to “member
      nonrecourse debt” (within the meaning of Treasury Regulation Section
      1.704-2(b)(4)) shall be allocated, in accordance with Treasury Regulation
      Section 1.704- 2(i)(1), to the Member who bears the economic risk of loss with
      respect to the debt to which the Loss is attributable. As the allocation of
      member nonrecourse deductions will increase the potential minimum gain
      chargeback under Section 7.2(d), an allocation of member nonrecourse provisions
      under this provision will not reduce a Member’s Capital Account.

    

    (c) Minimum
      Gain Chargeback.
      If, in
      any year there is a net decrease in Company Minimum Gain (as defined in Treasury
      Regulation Section 1.704-2(d)) (other than a decrease attributable to a “book
      up” in the Tax Book Value of the Company’s assets, a decrease offset by an
      increase in Member Minimum Gain or any other decrease for which a minimum gain
      chargeback is not required under Treasury Regulation Section 1.704-2(f)), then
      each Member will be allocated Income equal to that Member’s share of the net
      decrease in minimum gain for the year, as determined by Treasury Regulation
      Section 1.704-2(g)(2). The items of Income to be allocated under this Section
      are determined under Treasury Regulation Section 1.704-2(j)(2). In the event
      there is insufficient Income for the year to fully chargeback each Member’s
      share of the decrease in Company Minimum Gain, then the chargeback for the
      year
      shall be in proportion to each Member’s share of the decrease and any decrease
      that has not been charged back shall be carried over and be treated as a
      decrease in Company Minimum Gain in the following year. This subsection is
      intended to comply with the minimum gain chargeback requirement of Treasury
      Regulation Section 1.704-2(f) and shall be interpreted consistently
      therewith.

     

    
      
        
        

      

      
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    (d) Member
      Minimum Gain Chargeback.
      If, in
      any year there is a net decrease in Member Minimum Gain (as defined in Treasury
      Regulation Section 1.704-2(i)) (other than a decrease attributable to a “book
      up” in the Tax Book Value of the Company’s assets, a decrease offset by an
      increase in Member Minimum Gain or any other decrease for which a Member Minimum
      Gain chargeback is not required under Treasury Regulation Section
      1.704-2(i)(4)), then, after the allocation set forth above in Section 7.2(c),
      each Member will be allocated Income equal to that Member’s share of the net
      decrease in Member Minimum Gain for the year, as determined by Treasury
      Regulation Section 1.704-2(i)(3). The items of Income to be allocated under
      this
      Section are determined under Treasury Regulation Section 1.704-2(j)(2). In
      the
      event there is insufficient Income for the year to fully chargeback each
      Member’s share of the decrease in Member Minimum Gain, then the chargeback for
      the year shall be in proportion to each Member’s share of the decrease and any
      decrease that has not been charged back shall be carried over and be treated
      as
      a decrease in Member Minimum Gain in the following year. This subsection is
      intended to comply with the requirement of Treasury Regulation Section
      1.704-2(i)(4) that there be a chargeback of Member nonrecourse debt minimum
      gain
      and shall be interpreted consistently therewith.

    

    (e) Qualified
      Income Offset.
      In the
      event any Member received any adjustment, allocation or distribution described
      in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) that was not
      reasonably expected at the end of the preceding year and that causes, or
      increases, a deficit in the Member’s Capital Account, Income (composed of a pro
      rata portion of each element remaining after the allocations in earlier
      subsections of this Section) shall be allocated to that Member in an amount
      and
      manner sufficient to eliminate any portion of the deficit balance in the
      Member’s Capital Account that is attributable to the adjustment, allocation, or
      distribution referred to above. If there is insufficient Income in any year
      to
      make the allocation called for under this subsection, then the shortfall shall
      be carried over to subsequent years and will be treated as items to be offset
      in
      those years. Allocations under this subsection will only be made to the extent
      that a Member has a deficit in his or her Capital Account after all other
      allocations provided in this Article have been tentatively made as if this
      subsection were not in the Agreement. For purposes of this subsection, a
      Member’s Capital Account balance shall be increased by (i) its share of Minimum
      Gain, (ii) its share of Member Minimum Gain, (iii) the amount, if any, by which
      its deficit Capital Account balance exceeds the sum of (i) and (ii) and which
      the Member is obligated to restore (or is treated as obligated to restore under
      Treasury Regulation Section 1.704-1(b)(2)(ii)(c)) and decreased by (iv) the
      amount of expected distributions in the next year from the current year’s
      earnings and (v) to the extent not previously taken into account, the items
      described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5) and
      (6).

     

    7.3 Other
      Allocations.

    

    (a) Allocations
      when Tax Book Value Differs from Tax Basis. When the Tax Book Value of a Company
      asset is different from its adjusted tax basis for income tax purposes, then,
      solely for federal, state and local income tax purposes and not for purposes
      of
      computing Capital Accounts, income, gain, loss, deduction and credit with
      respect to such assets (“Section 704(c) Assets”) shall be allocated among the
      Members to take this difference into account in accordance with the principles
      of Code Section 704(c), as set forth herein and in the Treasury Regulations
      thereunder and under Code Section 704(b). Except to the extent otherwise
      required by final Treasury Regulations, the calculation and allocations
      eliminating the differences between Tax Book Value and adjusted tax basis of
      the
      Section 704(c) Assets shall be made pursuant to the method elected by the
      Manager or their designee. 

    

    (b) The
      Members agree to be bound by the provisions of this Article in reporting their
      shares of Company income, gain, loss and deduction for tax
      purposes.

     

    
      
        
        

      

      
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    (c) For
      purposes of determining the Income, Losses or any other items allocable to
      any
      period, Income, Loss and any such other items shall be determined on a daily,
      monthly or other basis, using any permissible method under Code Section 706
      and
      the Treasury Regulations thereunder as elected by the Manager or their designee;
      provided, however, that Income or Loss described in clause (c) of the definition
      of “Income” and “Loss” shall be allocated only to those persons who held
      interests in the Company immediately before the event giving rise to such Income
      or Loss.

    

    ARTICLE
      8

    

    DISTRIBUTIONS 

     

    8.1 Declaration
      and Payment of Distributions. 

    

    (a) Except
      as
      provided in Section 10.4(a) regarding liquidating distributions, Net Cash Flow
      shall be determined by the Manager and shall be distributed to the Members
      in
      accordance with their respective Percentage Interests as follows: (i) with
      respect to interest payments under the Loan Agreement, distributions shall
      be
      made monthly; (ii) with respect to the Repayment Premium and Extension Fee,
      distributions shall be made at the time of the repayment or exercise of the
      Extension Option; and, (iii) with respect to all other distributions, e.g.,
      Unused Line Fee, distributions shall be made annually. 

    

    (b) For
      purposes of this Section, the Members acknowledge that, in accordance with
      the
      definition of Net Cash Flow provided in Section 1.1, the Manager may, in their
      sole discretion, adjust the amount which would otherwise constitute Net Cash
      Flow by establishing, adding amounts to, and releasing amounts from, such
      reserves as it deems, in its sole discretion, to be necessary or advisable
      for
      working capital, contingencies, replacements, expansions, acquisitions, or
      other
      expenditures of the Company.

     

    8.2 Limitations
      on Distributions. 

    

    (a) The
      Company shall not make a distribution to a Member to the extent that at the
      time
      of the distribution, after giving effect to the distribution, all liabilities
      of
      the Company, other than liabilities to Members on account of their Membership
      Interests in the Company and liabilities for which the recourse of creditors
      is
      limited to specified property of the Company, exceed the fair value of the
      assets of the Company, except that the fair value of property that is subject
      to
      a liability for which the recourse of creditors is limited shall be included
      in
      the assets of the Company only to the extent that the fair value of that
      property exceeds that liability.

    

    (b) A
      Member
      who receives a distribution in violation of subsection (a), and who knew at
      the
      time of the distribution that the distribution violated this Section, shall
      be
      liable to the Company for the amount of the distribution. A Member who receives
      a distribution in violation of this Section, and who did not know at the time
      of
      the distribution that the distribution violated this Section, shall not be
      liable for the amount of the distribution. Subject to subsection (c), this
      subsection shall not affect any obligation or liability of a Member under other
      applicable law for the amount of a distribution.

    

    (c) A
      Member
      who receives a distribution from the Company shall have no liability under
      this
      Section, the Act or other applicable law for the amount of the distribution
      after the expiration of three years from the date of the distribution unless
      an
      action to recover the distribution from such Member is commenced prior to the
      expiration of such three-year period and an adjudication of liability against
      such Member is made in the action. 

     

    8.3 Amounts
      of Tax Paid or Withheld.
      All
      amounts paid or withheld pursuant to the Code or any provision of any state
      or
      local tax law with respect to any Member shall be treated as amounts distributed
      to the Member pursuant to this Article for all purposes under this
      Agreement.

     

    
      
        
        

      

      
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    8.4 Distribution
      in Kind.

    

    (a) No
      Member, regardless of the nature of its Capital Contribution, shall have a
      right
      to demand and receive any distribution in any form other than cash.

    

    (b) No
      Member
      shall be compelled to accept a distribution of any asset in kind to the extent
      that the percentage of the asset distributed to the Member exceeds a percentage
      of that asset that is equal to the percentage in which the Member shares in
      distributions from the Company generally.

    

    ARTICLE
      9

    

    TRANSFERABILITY

     

    9.1 Restriction
      on Transfer.
      No
      Member shall have the right to sell, assign, pledge, hypothecate, transfer,
      exchange, give or otherwise transfer all or any part of its Membership Interest
      except in compliance with Section 9.2].

     

    9.2 Effect
      of Transfer. 

    

    (a) In
      addition to satisfaction of Sections 4.11(e) and 9.1 above, no assignee or
      transferee of all or part of a Membership Interest in the Company shall have
      the
      right to become admitted as a Member, unless and until:

    

    (1) the
      assignee or transferee has executed an instrument reasonably satisfactory to
      the
      Manager accepting and adopting the provisions of this Agreement;

    

    (2) the
      assignee or transferee has paid all reasonable expenses of the Company requested
      to be paid by the Manager in connection with the admission of such assignee
      or
      transferee as a Member;

    

    (3) if
      requested by any Manager, the transferee has delivered to the Company an opinion
      of counsel reasonably satisfactory to such Manager that such transfer is exempt
      from the registration requirements of the Securities Act of 1933, as amended
      (the “1933 Act”), and applicable state securities laws; and

    

    (4) such
      assignment or transfer shall be reflected in a revised Schedule
      A
      to this
      Agreement.

    

    (b) A
      person
      who acquires a Membership Interest without satisfying this Section 9.2 and
      Section 9.1, shall be entitled to receive only the allocations and distributions
      attributable to the acquired Membership Interest in the Company, if any, but
      shall not be entitled to any other rights of a Member.

    

    (c) A
      person
      who is an assignee of a Membership Interest in the Company may be admitted
      to
      the Company as a Member and may receive a Membership Interest in the Company
      without making a contribution or being obligated to make a contribution to
      the
      Company.

     

    9.3 No
      Resignation of Members.
      A
      Member may not withdraw or resign from the Company prior to dissolution or
      winding up of the Company. If a Member who is an individual dies or a court
      of
      competent jurisdiction adjudges the individual to be incompetent to manage
      the
      person or property of the individual, the executor, administrator, guardian,
      conservator or other legal representative of the Member may exercise all of
      the
      rights of the Member for the purpose of settling the estate or administering
      the
      property of the Member, including the power under this Agreement of an assignee
      to become a Member. If a Member is a corporation, limited liability company,
      trust or other entity and is dissolved or terminated, the powers of that Member
      may be exercised by its legal representative or successor.

     

    
      
        
        

      

      
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    9.4 Voluntary
      Discontinuation of Business.
      Nothing
      in this Agreement shall prevent the Members from mutually agreeing to dissolve
      the Company and discontinue its business pursuant to Section 10.1 of this
      Agreement, rather than triggering any of the provisions of this
      Article.

    

    ARTICLE
      10

    

    DISSOLUTION
      AND TERMINATION

     

    10.1 Dissolution.
      The
      Company shall be dissolved upon the occurrence of any of the following events
      (“Dissolution Event”):

    

    (a) By
      the
      Manager, with the approval of the Members, upon their
      determination that it is no longer in the best interests of the Company to
      continue the business of the Company; 

     

    (b) Upon
      the
      sale by the Company of all or substantially all of its assets;

    

    (c) At
      any
      time there are no Members, provided, that, the Company need not be dissolved
      if,
      within ninety (90) days after the occurrence of the event that terminated the
      continued membership of the last remaining Member, the personal representative
      of the last remaining Member agrees in writing to continue the Company and
      to
      the admission of such personal representative or its nominee or designee to
      the
      Company as a Member, effective as of the occurrence of the event that terminated
      the continued membership of the last remaining Member;

    

    (d) Upon
      the
      entry of a decree of judicial dissolution under § 18-802 of the
      Act.

     

    10.2 Activities
      of the Company Pending Liquidation.
      Upon
      the occurrence of a Dissolution Event, the continuing operation of the Company’s
      business shall be confined to those activities reasonably necessary to wind
      up
      the Company’s affairs, discharge its obligations, and preserve and distribute
      its assets.

     

    10.3 Winding
      Up and Liquidation.

    

    (a) Upon
      dissolution of the Company, the Manager or a liquidator or liquidating committee
      selected by the Manager (the “Liquidator”) shall be responsible for the winding
      up of the affairs of the Company and the distribution of its assets. In
      connection with a winding up of the affairs of the Company, the Liquidator
      shall
      cause an accounting to be made of the assets and liabilities of the Company.
      If
      any liability is contingent or uncertain in amount, a reserve will be
      established in such amount as the Liquidator deems reasonably necessary. Upon
      satisfaction or other discharge of such contingency, the amount of the reserve
      not required, if any, will be distributed as provided in this
      Section.

     

    
      
        
        

      

      
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    (b) The
      Liquidator shall be entitled to receive such compensation for its services
      as
      may be approved by the Manager. The Liquidator shall agree not to resign at
      any
      time without fifteen (15) days’ prior written notice and may be removed at any
      time, with or without cause, by notice of removal signed by the Manager. Upon
      dissolution, removal or resignation of the Liquidator, a successor and
      substitute Liquidator (who shall have and succeed to all rights, powers and
      duties of the original Liquidator) shall within thirty (30) days thereafter
      be
      selected by the Manager. The right to appoint a successor or substitute
      Liquidator in the manner provided herein shall be recurring and continuing
      for
      so long as the functions and services of the Liquidator are authorized to
      continue under the provisions hereof, and every reference herein to the
      Liquidator will be deemed to refer also to any such successor or substitute
      Liquidator appointed in the manner herein provided. Except as expressly provided
      in this Article, the Liquidator appointed in the manner provided herein shall
      have and may exercise, without further authorization or consent of any of the
      Members, all of the powers conferred upon the Liquidator under the terms of
      this
      Agreement (but subject to all of the applicable limitations, contractual and
      otherwise, upon the exercise of such powers) to the extent necessary or
      desirable in the good faith judgment of the Liquidator to carry out the duties
      and functions of the Liquidator hereunder for and during such period of time
      as
      shall be reasonably required in the good faith judgment of the Liquidator to
      complete the winding up and liquidation of the Company as provided for
      herein.

    

    (c) The
      Liquidator shall liquidate the assets of the Company and apply and distribute
      the proceeds of such liquidation in the order of priority set forth in Section
      10.4, unless otherwise required by mandatory provisions of applicable
      law.

    

    (d) The
      Liquidator shall be authorized to sell any, all or substantially all of the
      assets of the Company for deferred payment obligations, and to hold, collect
      and
      otherwise administer any such obligations or any other deferred payment
      obligations held or acquired as assets of the Company.

    

    (e) A
      reasonable time, including, without limitation, any time required to collect
      deferred payment obligations, shall be allowed for the orderly liquidation
      of
      the assets of the Company and the discharge of liabilities to creditors so
      as to
      enable the Liquidator to reasonably minimize any losses attendant upon the
      liquidation.

     

    10.4 Distribution
      of Assets. 

    

    (a) In
      the
      event of a dissolution of the Company, upon the winding up of the Company,
      its
      assets shall be distributed in the following manner and order of
      priority:

    

    (1) First,
      to
      creditors, including Members and Manager who are creditors, to the extent
      otherwise permitted by law, in satisfaction of liabilities of the Company
      (whether by payment or the making of reasonable provision for payment thereof)
      other than liabilities for which reasonable provision for payment has been
      made;
      including the establishment of any reserves as the Liquidator may deem
      reasonably necessary for contingent, conditional or unmatured claims or
      obligations of the Company arising out of or in connection with the Company
      or
      its liquidation. Such reserves shall be held by the Liquidator for the purpose
      of disbursing such reserves in payment of any of the aforementioned
      contingencies, and, as soon as practicable, to distribute the balance thereafter
      remaining in the manner provided in the following subdivisions of this Section;
      and

    

    (2) Second,
      the balance to the Members in proportion to the positive balances of their
      respective Capital Accounts, as determined after taking into account all
      adjustments to such Capital Accounts for the fiscal year of the Company during
      which such distribution occurs as promptly as practicable, but in any event
      within the time required by Treasury Regulations Section
      1.704-1(b)(2)(ii)(b)(2).

    

    (b) The
      Company following dissolution (i) shall pay or make reasonable provision to
      pay
      all claims and obligations, including all contingent, conditional or unmatured
      contractual claims, known to the Company, (ii) shall make such provision as
      will
      be reasonably likely to be sufficient to provide compensation for any claim
      against the Company which is the subject of a pending action, suit or Proceeding
      to which the Company is a party and (iii) shall make such provision as will
      be
      reasonably likely to be sufficient to provide compensation for claims that
      have
      not been made known to the Company or that have not arisen but that, based
      on
      facts known to the Company, are likely to arise or to become known to the
      Company within 10 years after the date of dissolution. If there are sufficient
      assets, such claims and obligations shall be paid in full and any such provision
      for payment made shall be made in full. If there are insufficient assets, such
      claims and obligations shall be paid or provided for according to their priority
      and, among claims of equal priority, ratably to the extent of assets available
      therefor. Any remaining assets shall be distributed as provided in subsection
      (a). Any Liquidator winding up the Company’s affairs who has complied with this
      Section shall not be personally liable to the claimants of the dissolved Company
      by reason of such person’s actions in winding up the Company.

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

     

    (c) A
      Member
      who receives a distribution in violation of subsection (a), and who knew at
      the
      time of the distribution that the distribution violated subsection (a), shall
      be
      liable to the Company for the amount of the distribution. A Member who receives
      a distribution in violation of subsection (a) of this Section, and who did
      not
      know at the time of the distribution that the distribution violated subsection
      (a), shall not be liable for the amount of the distribution. 

     

    10.5 Cancellation
      of Certificate.
      The
      Certificate of the Company shall be canceled upon the dissolution and the
      completion of winding up of the Company.

    

    ARTICLE
      11

    

    BOOKS;
      REPORTS TO MEMBERS; TAX ELECTIONS

     

    11.1 Books
      and Records.
      The
      Manager shall maintain separate books of account for the Company which shall
      show a true and accurate record of all costs and expenses incurred, all charges
      made, all credits made and received and all income derived in connection with
      the conduct of the Company and the operation of its business, and, to the extent
      inconsistent therewith, in accordance with this Agreement. The Company may
      maintain its records in other than a written form if such form is capable of
      conversion into written form within a reasonable time.

     

    11.2 Tax
      Information.
      Within
      ninety (90) days after the end of each fiscal year, the Company shall endeavor
      to supply to each Member all information necessary and appropriate to be
      included in each Member’s income tax returns for that year.

     

    11.3 Annual
      Reports.
      Within
      ninety (90) days after the end of each fiscal year, the Company shall cause
      to
      be prepared, and each Member furnished with, financial statements accompanied
      by
      a report thereon of the Company’s accountants stating that such statements are
      prepared and fairly stated in all material respects in accordance with generally
      accepted accounting principles, and, to the extent inconsistent therewith,
      in
      accordance with this Agreement, including the following: (a) a copy of the
      balance sheet of the Company as of the last day of such fiscal year; (b) a
      statement of income or loss for the Company for such fiscal year; and (c) a
      statement of the Members’ Capital Accounts, changes thereto for such fiscal year
      and Percentage Interests at the end of such fiscal year.
      Members
      shall share the cost of preparing the Annual Reports in proportion to their
      Percentage Interest. 

     

    11.4 Tax
      Matters Member.

    

    (a) The
      ARC
      Member is hereby appointed and shall serve as the tax matters member of the
      Company (the “Tax Matters Member”) within the meaning of Code Section 6231(a)(7)
      for so long as he is not the subject of a bankruptcy event as defined in Section
      4.12 and otherwise is entitled to act as the Tax Matters Member. The Tax Matters
      Member may file a designation of itself as such with the Internal Revenue
      Service. The Tax Matters Member shall (i) furnish to each Member affected by
      an
      audit of the Company income tax returns a copy of each notice or other
      communication received from the IRS or applicable state authority, (ii) keep
      such Member informed of any administrative or judicial Proceeding, as required
      by Section 6223(g) of the Code, and (iii) allow such Member an opportunity
      to
      participate in all such administrative and judicial Proceedings. The Tax Matters
      Member shall take such action as may be reasonably necessary to constitute
      the
      other Member a “notice member” within the meaning of Section 6231(a)(8) of the
      Code, provided that the other Member provides the Tax Matters Member with the
      information that is necessary to take such action.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

     

    (b) The
      Company shall not be obligated to pay any fees or other compensation to the
      Tax
      Matters Member in its capacity as such. However, the Company shall reimburse
      the
      expenses (including reasonable attorneys’ and other professional fees) incurred
      by the Tax Matters Member in such capacity. Each Member who elects to
      participate in Company administrative tax Proceedings shall be responsible
      for
      its own expenses incurred in connection with such participation. In addition,
      the cost of any adjustments to a Member and the cost of any resulting audits
      or
      adjustments of a Member’s tax return shall be borne solely by the affected
      Member.

    

    (c) The
      Company shall indemnify and hold harmless the Tax Matters Member from and
      against any loss, liability, damage, cost or expense (including reasonable
      attorneys’ fees) sustained or incurred as a result of any act or decision
      concerning Company tax matters and within the scope of such Member’s
      responsibilities as Tax Matters Member, so long as such act or decision was
      not
      the result of gross negligence, fraud, bad faith or willful misconduct by the
      Tax Matters Member. The Tax Matters Member shall be entitled to rely on the
      advice of legal counsel as to the nature and scope of its responsibilities
      and
      authority as Tax Matters Member, and any act or omission of the Tax Matters
      Member pursuant to such advice shall in no event subject the Tax Matters Member
      to liability to the Company or either Member.

     

    11.5 Tax
      Audits/Special Assessments.
      If the
      federal tax return of either the Company or an individual Member with respect
      to
      an item or items of Company income, loss, deduction, etc., potentially affecting
      the tax liability of the Members generally is subject to an audit by the
      Internal Revenue Service, the Manager may, in the exercise of their business
      judgment, determine that it is necessary to contest proposed adjustments to
      such
      return or items. If such a determination is made, the Manager will finance
      the
      contest of the proposed adjustments out of the Net Cash Flow.

     

    11.6 Tax
      Elections.
      The
      Company will elect to amortize organizational costs. Upon the death of a Member,
      in the event of the distribution of property, upon the transfer of a Membership
      Interest or the issuance of a Membership Interest to a new Member, the Company
      may file an election, in accordance with applicable Treasury Regulations, to
      cause the basis of the Company’s property to be adjusted for federal income tax
      purposes as provided by Code Section 734, Code Section 743 and Code Section
      754.
      The determination whether to make and file any such election shall be made
      by
      the Manager in their sole discretion.

     

    11.7 Determination
      of Tax Book Value of Company Assets.

    

    (a) Except
      as
      set forth below, the “Tax Book Value” of any Company asset is its adjusted basis
      for federal income tax purposes.

    

    (b) The
      initial Tax Book Value of any assets contributed by a Member to the Company
      shall be the agreed fair market value of such assets, increased by the amount
      of
      liabilities of the contributing Member assumed by the Company in connection
      with
      the contribution of such assets plus the amount of any other liabilities to
      which such assets are subject.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

     

    (c) The
      Tax
      Book Value of all Company assets may be adjusted by the Manager to equal their
      respective gross fair market value as provided for in Treasury Regulation
      Section 1.704-1(b)(2)(iv)(f).

    

    (d) This
      Section shall not affect the book value of any assets for financial reporting
      purposes.

     

    ARTICLE
      12

    

    CONFIDENTIALITY
      OF CERTAIN INFORMATION

     

    12.1 Maintenance
      of Confidentiality.
      Each of
      the Members shall, during the term of this Agreement and at all times
      thereafter, maintain in confidence all confidential and proprietary information
      and data of the Company, and of the other Members or their Affiliates, (each,
      a
“disclosing party”) disclosed to it (the “Confidential Information”). Each of
      the Members further agrees that it shall not use the Confidential Information
      during the term of this Agreement or at any time thereafter for any purpose
      other than the performance of its obligations or the exercise of its rights
      under this Agreement. The Company and each Member shall take all reasonable
      measures necessary to prevent any unauthorized disclosure of the Confidential
      Information by any of their employees, agents or consultants.

     

    12.2 Permitted
      Disclosures.
      Nothing
      herein shall prevent the Company, any Member, or any employee, agent or
      consultant of the Company or any Member (the “receiving party”) from using,
      disclosing, or authorizing the disclosure of any information it receives in
      the
      course of the business of the Company which: (a) becomes publicly available
      other than through default hereunder by the receiving party; (b) is lawfully
      acquired by the receiving party from a source not under any obligation to the
      disclosing party regarding disclosure of such information; (c) is in the
      possession of the receiving party in written or other recorded form at the
      time
      of its disclosure hereunder; or (d) is non-confidentially disclosed to any
      third
      party by or with the permission of the disclosing party.

    

    ARTICLE
      13

    

    INVESTMENT
      REPRESENTATION

     

    13.1 Investment
      Purpose.
      Each
      Member represents and warrants to the Company and to each other Member that
      it
      has acquired the Membership Interest for such Member’s own account, for
      investment only and not with a view to the distribution thereof, except to
      the
      extent provided in or contemplated by this Agreement.

     

    13.2 No
      Registration.
      The
      Membership Interests have not been registered with the Securities and Exchange
      Commission under the 1933 Act or under similar laws of any states in reliance
      upon exemptions under those acts. The sale or other disposition of the
      Membership Interests is restricted as provided in this Agreement.

    

    ARTICLE
      14

    

    FACILITY
      ADVANCES

     

    14.1 Advance
      Procedures.
      The
      Company shall make advances under the Facility to Affiliates of the ARC Member
      based on the following criteria:

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

     

    (a) Five
      (5)
      calendar days prior to the submission of the draw request by the Manager to
      the
      Members (the “Draw Request”), which form of Draw Request is set forth in Exhibit
      B, the Manager shall submit to the Members an Investment Memorandum. This
      Investment Memorandum, together with accompanying analysis, shall describe:
      (a) the amount of the Loan advance requested; (b) specific property
      information, including location, square footage, improvements; (c) summary
      of appraised value; (d) Purchase Price; (e) debt capitalization;
      (f) sources and uses; (g) market and demographic data; (h) tenant
      summary/credit evaluation; (i) property condition; (j) title, survey
      and zoning matters; (i) environmental issues; and (l) other material
      matters pertaining to the property. 

    

    (b) The
      Manager shall make a Draw Request in the form set forth as Exhibit B
      five (5)
      calendar days prior to the required funding date. The Draw Request shall specify
      the ARC Member Affiliate purchasing the property, and the Manager shall
      represent that the Facility shall fund only at closing when the Property has
      been acquired or post-closing after the Property has been acquired by the ARC
      Member Affiliate. The
      Draw
      Request shall specify the anticipated date upon which the transaction is to
      be
      funded and shall provide a representation that the Manager shall promptly advise
      the Members of any change, delay or adjournment of the transaction closing
      date.
Each
      time
      the Manager makes a draw request, the Manager shall require that the ARC Member
      Affiliate shall submit a financial statement describing in detail the assets
      and
      liabilities of such ARC Member Affiliate. Such financial statement shall be
      subject to the review and approval of the Manager before such draw request
      shall
      be funded

    

    (c) The
      Manager shall represent to the Company that the following conditions have been
      satisfied: (a) all information, books, records, rent rolls, lease reports,
      exhibits, representations, statements, and other matters and documentation
      have
      been reviewed and are acceptable; (b) satisfactory title insurance has been
      obtained through a title insurance company selected and engaged by the Company
      and acceptable to such Manager, at such ARC Member Affiliate’s expense
      (c) a survey of the property satisfactory to the Manager and its counsel
      and the title company has been obtained; (d) satisfactory casualty,
      liability, rent loss and other required insurance coverage has been obtained
      in
      amounts and types and through providers as required under the Loan Agreement;
      (e) satisfactory organizational documents have been prepared which meet the
      Manager’s requirements for single purpose bankruptcy remote entities;
      (f) satisfactory estoppels, if any, have been delivered (including ground
      lessor and lease guarantor estoppels, as applicable) and, as applicable,
      subordination, non-disturbance and attornment agreements for all tenants as
      provided in the lease if applicable; (g) satisfactory opinion of counsel
      has been prepared, should Manager deem such opinion necessary;]
      (h) satisfactory evidence of compliance with all laws, including zoning,
      building code and health and safety requirements has been presented; and
      (i) satisfactory review of Lease documents, if any, by the Manager’s
      counsel has been completed. 

    

    (d) The
      ARC
      Member Affiliate receiving the advance under the Facility (i) shall enter into
      a
      Loan Agreement in a form approved by the Members, including the form of Note
      attached to the Loan Agreement, (ii) shall undertake to repay funds drawn
      against the Facility with Interest and Repayment Premium within 12 months or
      sooner of drawing funds, subject to the exercise of the Extension Option,
      payment of the Extension Fee, and annual payment of an Unused Line Fee equal
      to
      3% per annum of the amount of the Facility (less funds advanced by the Company
      to an ARC Affiliate and then outstanding), and (ii) shall guaranty repayment
      of
      the Loan, which Loan shall be otherwise unsecured.

    

    (e) The
      Draw
      Request shall not exceed the Purchase Price of the underlying properties that
      are the subject of such Draw Request.

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      15

    

    MISCELLANEOUS

     

    15.1 Binding
      Effect.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and assigns. If a Member who is an individual
      dies or a court of competent jurisdiction adjudges him or her to be incompetent
      to manage his or her person or property, the executor, administrator, guardian,
      conservator or other legal representative of the Member may exercise all of
      the
      rights of the Member for the purpose of settling such Member’s estate or
      administering such Member’s property, including the power the Member had to give
      an assignee the right to become a Member. If a Member is a corporation, trust
      or
      other entity and is dissolved or otherwise terminated, the powers of that Member
      may be exercised by its legal representatives or successors. The successor
      of a
      Member shall succeed to the right of the Member to receive allocations and
      distributions hereunder, and may be admitted as a Member in accordance with
      the
      provisions of Section 9.2, but shall not be deemed a Member, and shall not
      be
      entitled to voting rights hereunder, unless and until so admitted.

     

    15.2 Entire
      Agreement.
      This
      Agreement contains the entire agreement of the parties hereto with respect
      to
      the subject matter hereof and supersedes all prior understandings and agreements
      of the parties with respect thereto.

     

    15.3 Amendments.
      The
      Certificate and this Agreement may not be amended except by the written
      agreement of a Majority-in-Interest of the Members.

     

    15.4 Choice
      of Law.
      Notwithstanding the place where this Agreement may be executed by any of the
      parties hereto, the parties expressly agree that all the terms and provisions
      hereof shall be construed under the laws of the State of Delaware (without
      regard to any conflicts of law principles.) Each of the Members hereby expressly
      submits itself generally and unconditionally to the personal jurisdiction of
      any
      U.S. or state court which would have jurisdiction over the subject matter of
      an
      action to enforce any or all of the terms of this Agreement or to recover
      damages for a breach of any of its provisions.

     

    15.5 Notices.
      Except
      as otherwise provided in this Agreement, any notice, demand or communication
      required or permitted to be given by any provision of this Agreement shall
      be
      deemed to have been sufficiently given or served for all purposes if delivered
      personally or sent by facsimile transmission or overnight express to the party
      or to an executive officer of the party to whom the same is directed or, if
      sent
      by registered or certified mail, postage and charges prepaid, addressed to
      the
      Member’s address, which is set forth on Schedule
      A
      and to
      the Company at its principal place of business, or at such other address as
      a
      party may direct in writing.

     

    15.6 Headings.
      The
      titles of the Articles and the headings of the Sections of this Agreement are
      for convenience of reference only and are not to be considered in construing
      the
      terms and provisions of this Agreement.

     

    15.7 Pronouns.
      All
      pronouns shall be deemed to refer to the masculine, feminine, neuter, singular
      or plural, as the identity of the person or persons, firm or corporation may
      require in the context thereof.

     

    15.8 Waivers.
      The
      failure of any party to seek redress for violation of or to insist upon the
      strict performance of any covenant or condition of this Agreement shall not
      prevent a subsequent act that would have originally constituted a violation
      from
      having the effect of an original violation.

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

     

    15.9 Severability.
      If any
      provision of this Agreement or its application to any person or circumstance
      shall be invalid, illegal or unenforceable to any extent, the remainder of
      this
      Agreement and its application shall not be affected and shall be enforceable
      to
      the fullest extent permitted by law.

     

    15.10 Publicity.
      No
      press release or other public announcement related to this Agreement or the
      Company or the transactions contemplated hereby shall be issued by any Member
      without the prior approval of the Manager, except that any Member may make
      such
      public disclosure which it believes in good faith to be required by law or
      by
      the terms of any listing agreement with a securities exchange (in which case
      such Member shall make a reasonable effort to consult with the Members prior
      to
      making such disclosure).

     

    15.11 No
      Third Party Beneficiaries.
      None of
      the provisions of this Agreement shall be for the benefit of or enforceable
      by
      any person other than the parties to this Agreement and their respective
      successors and assigns.

     

    15.12 Interpretation.
      It is
      the intention of the Members that, during the term of this Agreement, the rights
      of the Members and their successors-in-interest shall be governed by the terms
      of this Agreement, and that the right of any Member or successor-in-interest
      to
      assign, transfer, sell or otherwise dispose of any Membership Interest in the
      Company shall be subject to limitations and restrictions
      of
      this Agreement.

     

    15.13 Tax
      Classification of Company.
      The
      Members hereby acknowledge their intention that the Company be classified,
      for
      federal, state and local income tax purposes, as a partnership and not an
      association taxable as a corporation pursuant to Section 7701(a)(2) of the
      Code
      and the Regulations promulgated thereunder and hereby agree that the provisions
      of this Agreement shall be applied and construed in a manner to give full effect
      to such intent. Each Member further agrees not to make or consent to an election
      to treat the Company as a corporation and to execute and deliver such further
      agreements or instruments and do, or cause to be done, such further acts and
      things, as may be reasonably necessary, in the opinion of the Members and
      counsel to the Company, to cause the Company to be classified as a partnership
      for federal, state and local income tax purposes.

     

    15.14 Further
      Assurances.
      Each
      Member shall execute all such certificates and other documents and shall do
      all
      such other acts as the Manager deem appropriate to comply with (a) the
      requirements of law for the formation of the Company, (b) any laws, rules,
      regulations and third-party requests relating to the acquisition, operation
      or
      holding of the property of the Company or (c) the intent and purposes of this
      Agreement.

     

    15.15 Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original, but all of which taken together shall constitute one and the same
      instrument.

    

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the undersigned Member, intending to be legally bound, has
      executed this Operating Agreement as of the date first above
      written.

     

    
      
        	 	
                MEMBERS:

              	 	 
	 	 	 	 	 
	 	
                AMERICAN
                  REALTY CAPITAL II, LLC

              	 
	 	 	 	 	 
	 	 	 	 	 
	 	
                By:

              	
                
                  /s/
                    Nicholas S. Schorsch

                

              	 
	 	
                 

              	
                Name:

              	
                Nicholas
                  S. Schorsch

              	 
	 	
                 

              	
                Title:

              	
                Chairman
                  and CEO

              	 
	 	 	 	 	 
	 	 	 	 	 
	 	
                CAMBR
                  COMPANY, INC.

              	 
	 	 	 	 	 
	 	 	 	 	 
	 	
                By:

              	
                
                  /s/
                    Allen
                    Skolnick

                

              	 
	 	
                 

              	
                Name:

              	
                Allen
                  Skolnick

              	 
	 	
                 

              	
                Title:

              	
                President

              	 

      

       

    

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

    

    Members

    (as
      of August __, 2008)

    

    
      	
              Member
                Name

              and
                Address

            	
              Capital

              Contribution

            	
              Percentage

              Interest

            
	 	 	 
	
              American
                Realty Capital II, LLC

              1725
                The Fairway

              Jenkintown,
                PA 19046

            	
              $5,000,000.00

            	
              50%

            
	 	 	 
	
              CAMBR
                COMPANY, INC.

              410
                Ocean Avenue

              Box
                330

              Lynbrook,
                NY 11563

            	
              $5,000,000.00

            	
              50%

            
	
            	
              

            	
              

            
	
              Totals:

            	
              $10,000,000.00

            	
              100.00%Unassociated Document

    ARC
      WBPCFL0001, LLC

    ARC
      WBPBFL0001, LLC

     

    AGREEMENT
      FOR TRANSFER

    OF
      MEMBERSHIP INTERESTS

    

    THIS
      AGREEMENT FOR TRANSFER OF MEMBERSHIP INTERESTS (this “Agreement”)
      entered into as of August ___, 2008 between ARC GROWTH FUND I, LLC, a Delaware
      limited liability company (“Seller”),
      and
      AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP, L.P., a Delaware limited
      partnership (“Buyer”).

    

    STATEMENT
      OF PURPOSE

    

    Seller
      is
      the sole member of ARC WBPCFL0001, LLC ("Palm
      Coast"),
      and
      ARC WBPBFL0001, LLC ("Pompano
      Beach"),
      each
      a Delaware limited liability company (each a “Company”,
      together the "Companies").
      Palm
      Coast is a single-purpose entity created for the purpose of owning, operating
      and managing that certain tract or parcel of land more particularly described
      in
      Exhibit “A-1” attached hereto (the “Palm
      Coast Land”)
      and
      those certain improvements commonly known as 175 Cypress Point Parkway, Palm
      Coast, FL. Pompano Beach is also a single-purpose entity created for the purpose
      of owning, operating and managing the tracts or parcels of land more
      particularly described in Exhibit “A-2” attached hereto (collectively, the
“Pompano
      Beach Land”,
      together with the Palm Coast Land, the "Land")
      and
      those certain improvements commonly known as 289 South Pompano Parkway, Pompano
      Beach, FL.

    

    Palm
      Coast currently leases the Palm Coast Land and improvements located thereon
      to
      National City Bank (the “Tenant”),
      pursuant to that certain lease agreement more particularly described in Exhibit
      “B-1” attached hereto (the “Palm
      Coast Lease”).

    

    Pompano
      Beach currently leases the Pompano Beach Land and improvements located thereon
      to Tenant pursuant to that certain lease agreement more particularly described
      in Exhibit “B-2” attached hereto (the “Pompano
      Beach Lease”
      together with the Palm Coast Lease, the "Leases").

    

    Buyer
      desires to purchase from Seller, and Seller desires to sell and transfer all
      of
      its right, title and interest in and to the Companies to Buyer subject to the
      terms and provisions of this Agreement.

    

    AGREEMENT

    

    1. Transfer
      of Membership Interests.
      Seller
      agrees to sell to Buyer, and Buyer agrees to purchase from Seller, all of
      Seller’s right title and interest in and to Seller’s membership interests in the
      Companies (each a “Membership
      Interest”
and
      collectively, the “Membership
      Interests”),
      as
      set forth in the Limited Liability Company Agreements for each Company, copies
      of which are attached hereto as Exhibits “C-1” and “C-2”,
      respectively.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. Representations
      and Warranties of Seller.
      Seller
      represents and warrants to Buyer as of the date hereof and as of the Closing
      as
      follows:

    

    (a) Ownership
      of Membership Interests.
      Seller
      is the sole owner of the Membership Interests. Seller owns the Membership
      Interests free and clear of all liens, encumbrances, claims or restrictions
      on
      transfer or voting, other than restrictions on transfer imposed by the terms
      of
      the Loan, and federal and state securities laws. At all times between the date
      of formation of the Companies and the Closing Date, Seller has constituted
      and
      shall constitute the sole holder of the Membership Interests.

    

    (b) Authority
      of Seller.
      Subject
      to obtaining the consent of Lender (as hereinafter defined) to the transaction
      contemplated by this Agreement (the “Transaction”),
      Seller has the right, power and authority to enter into this Agreement and
      to
      consummate the Transaction. This Agreement is a valid and legally binding
      obligation of Seller, enforceable in accordance with its terms except to the
      extent that enforcement may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium and other laws relating to or affecting the rights
      of
      creditors generally, and except as enforcement is subject to the laws of equity.
      Subject to obtaining Lender’s consent to the Transaction, the execution by
      Seller of this Agreement and consummation of the Transaction does not, and
      as of
      the Closing will not, result in the breach of any of the terms and provisions
      of, or constitute a default under any document to which Seller or the Company
      is
      a party.

    

    (c) Assets
      of the Company.
      The
      assets of each Company are more particularly described in Exhibits "D-1" and
      "D-2", respectively, attached hereto (each a "Property",
      and
      collectively, the "Properties").

    

    (d) The
      Loan.
      Seller
      represents and warrants that the Properties are encumbered by that certain
      loan
      in the principal amount of up to $32,000,000.00 (the “Loan”)
      by KBC
      Bank, N.V. (together with its successors and assigns, the “Lender”).

    

    (e) Due
      Formation of Seller.
      Seller
      is a limited liability company duly organized and validly existing and in good
      standing under the laws of the State of Delaware.

    

    (f) The
      Membership Interests.
      The
      Membership Interests comprises all of the economic interest in the
      Companies.

    

    (g) Bankruptcy.
      Neither
      Seller nor either of the Companies are the subject of or a party to any state
      or
      federal bankruptcy or insolvency proceeding. Neither Seller nor either of the
      Companies is contemplating either (i) the filing of a petition by it under
      any
      state or federal bankruptcy or insolvency laws, or (ii) the liquidation of
      all
      or a major portion of the assets of Seller or either of the
      Companies.

    

    (h) Due
      Formation of Companies.
      The
      Companies are limited liability companies duly organized, validly existing
      and
      in good standing under the laws of the State of Delaware and qualified to do
      business in, and in good standing under the laws of the State of Florida. The
      Companies have not transacted business in any state other than the State of
      Florida. The Companies have the requisite power and authority to conduct their
      business as now conducted and to own their respective Property.

     

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

     

    (i) Litigation.
      There
      are no pending or, to Seller’s knowledge, threatened or contemplated actions,
      suits, proceedings, arbitrations, claims or governmental investigations which
      affect, or may affect, the Companies or the Properties or the Membership
      Interests.

     

    (j) FIRPTA.
      Seller
      is not a “foreign person” as defined in Section 1445(f)(3) of the Internal
      Revenue Code.

    

    The
      representations and warranties contained in this Section 2 shall survive the
      Closing for a period of six (6) months following the Closing. Except as
      expressly provided otherwise in this Section 2, the remaining representations
      and warranties contained in this Section 2 shall survive the
      Closing.

    

    To
      the
      extent that Seller makes representations and warranties “to Seller’s knowledge”
or the like, such representations and warranties are made without due inquiry
      and are limited solely to the knowledge of William Kahane. William Kahane shall
      not have any liability hereunder in connection with such representations or
      warranties.

    

    3. Representations
      and Warranties of the Buyer.
      Buyer
      hereby represents and warrants to Seller, that:

    

    (a) Authority
      of Buyer.
      Buyer
      is a limited partnership validly existing and in good standing under the laws
      of
      the State of Delaware. Buyer has the right, power and authority to enter into
      this Agreement and to consummate the Transaction. This Agreement is a valid
      and
      legally binding obligation of Buyer, enforceable in accordance with its terms,
      except to the extent that enforcement may be limited by applicable bankruptcy,
      insolvency, reorganization, moratorium and other laws relating to or affecting
      the rights of creditors generally, and except as enforcement is subject to
      the
      laws of equity. The execution by Buyer of this Agreement and consummation of
      the
      Transaction does not, and, as of the Closing, will not, result in the breach
      of
      any of the terms and provisions of, or constitute a default under any document
      to which Buyer is a party.

    

    (b) Litigation.
      There
      are no pending or, to Buyer’s knowledge, threatened or contemplated actions,
      suits, proceedings, arbitrations, claims or governmental investigations which
      affect, or may affect, the ability of the Buyer to consummate the Transaction
      contemplated hereby.

    

    (c) Consents
      and Approvals.
      The
      execution, delivery and performance by Buyer of this Agreement and the
      consummation of the transactions contemplated hereby do not and will not require
      any consent, approval, authorization or other action by, or declaration, filing
      or registration with, or notification to, any governmental agencies or
      bodies.

    

    Except
      as
      expressly provided otherwise in this Section 3, the representations and
      warranties contained in this Section 3 shall survive the Closing.

     

    
      
        
        

      

      
        -
          3 -

        
          

        

      

      
        
        

      

    

     

    4. Purchase
      Price.
      The
      total purchase price (the “Purchase Price”) to be paid by Buyer to Seller for
      the Membership Interests shall be SIX MILLION SIX HUNDRED SIXTY THREE THOUSAND
      SEVEN HUNDRED EIGHTY SIX AND NO/100 DOLLARS ($6,663,786.00), of which
      $3,000,000.00 shall be allocated to the purchase of Palm Coast's Membership
      Interests, and $3,663,786.00 shall be allocated to the purchase of Pompano
      Beach's Membership Interests. The total Purchase Price shall be payable as
      follows:

    

    (a) By
      cash
      or immediately available funds, or by check subject to collection, to the order
      of Chicago Title Insurance Company (in this capacity, “Escrow
      Agent”)
      located at Suite 2550, 1601 Market Street, Philadelphia, PA 19103, Attention:
      Edwin G. Ditlow, Tel: (215) 568-4889, Fax: (215) 568-4880, in the amount of
      THREE HUNDRED THIRTY THREE THOUSAND ONE HUNDRED NINETY AND NO/100 DOLLARS
      ($333,190.00) (the “Deposit”),
      simultaneously with the execution and delivery of this Agreement by Buyer to
      Seller to be held in accordance with the terms of this Agreement and Escrow
      Agent’s standard escrow instructions. The Deposit shall be
      non-refundable.

    

    (b) By
      unendorsed bank check or certified check to the order of Escrow Agent, drawn
      on
      a bank that is a member of the New York Clearing House Association, or, at
      Seller’s option, by wire transfer of immediately available funds for the
      difference between the Purchase Price minus the Deposit on the Closing Date
      for
      the balance of the Purchase Price, subject to adjustment as hereinafter
      provided, on the Closing Date. 

    

    5. Conditions
      Precedent. Seller’s
      obligation to Close is contingent upon Seller having obtained
      the
      written approval of Lender to the Transaction. 

    

    6. Closing
      and Closing Date.
      The
      consummation of the transfer by Seller to Buyer of the Membership Interests
      (the
“Closing”)
      shall
      take place through escrow at the offices of Escrow Agent on the later of (i)
      September 15, 2008 or (ii) the date which is three (3) business days after
      the
      Lender approves the Transaction (oral confirmation by Lender with written
      confirmation by Lender being delivered at Closing shall be deemed sufficient)
      (the “Closing
      Date”).
      TIME
      BEING OF THE ESSENCE WITH RESPECT TO THE CLOSING DATE.

     

    7. Liabilities
      of the Companies.
      Buyer
      acknowledges the existence of the liabilities of the Companies under the
      Permitted Exceptions (as defined in Section 8 herein) and the Leases, and
      provided that the Transaction closes in accordance with Section 6 herein, agrees
      to accept the Membership Interests and the Properties subject to all the terms
      and conditions contained in the Permitted Exceptions and the
      Leases.

    

    8. Title
      to the Property.
      At the
      Closing, the Companies shall hold fee simple title to the Land and Improvements,
      respectively, subject only to exceptions to title described in the title
      insurance policies (the “Permitted
      Exceptions”)
      and
      real estate taxes, sewer charges and assessments which are a lien but not yet
      due and payable. 

    

    9. Closing
      Costs.
      Subject
      to the limitations set forth below, Seller shall pay deed transfer and/or stamp
      taxes, if any. All charges and expenses relating to any loan secured by the
      Properties obtained after the Closing shall be payable by Buyer. Escrow fees
      payable to Escrow Agent shall be split 50/50 between Seller and Buyer. Each
      party shall pay its own legal and attorneys’ fees.

    

    10. Proration.
      Net
      rent due under the Leases, to the extent the same is payable upon the Closing
      (computed as accrued Basic Rent (as defined in the Lease) shall be apportioned
      as of the date of the Closing. No other apportionments shall be made at the
      Closing.

     

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

     

    11. No
      Other Representations.
      Except
      for the representations and warranties of Seller in this Agreement, it is
      expressly agreed that Buyer shall accept the Properties, in their present
      condition, “AS IS”, “WHERE IS” and “WITH ALL FAULTS”, subject to all patent and
      latent defects and faults, if any, with no representation or warranty by Seller
      as to the fitness, suitability, merchantability, habitability, or usability,
      including but not limited to, (a)
      the
      quality or condition of all improvements and the real property, including
      without limitation, the water, soil and geology, (b) any
      construction defects, errors, omissions or on account of any other conditions
      affecting the Land and Improvements, (c)
      the
      manner of operating the Land or Improvements and the expenses related thereto,
      (d)
      the
      compliance of the Land or Improvements with any laws, rules, ordinances or
      regulations of any governmental body; and (e)
      the
      nature and extent of any recorded servitudes, rights-of-way, leases, possession,
      liens, encumbrances, licenses, reservations, conditions or otherwise.

    

    12. Brokers
      Fees.
      Seller
      and Buyer represent and warrant each to the other that they have not dealt
      with
      any broker or realtor in connection with the Transaction. In the event of a
      breach of the foregoing warranties, the breaching party agrees to save, defend,
      indemnify and hold harmless the non breaching party from and against any claims,
      losses, damages, liabilities and expenses, including but not limited to
      attorneys’ fees.

    

    13. Closing
      Documents.

     

    (a) At
      Closing, Seller shall deliver to Escrow Agent the following:

    

    (i) A
      duly
      executed Assignment and Assumption of Membership Interest for each Company
      in
      the form attached hereto as Exhibit
      “E”
      to this
      Agreement;

    

    (ii) A
      certification in a form reasonably acceptable to Buyer, that Seller is not
      a
      foreign person;

    

    (iii) Such
      documents as Buyer’s counsel may reasonably request to evidence Seller’s
      authority to execute and perform under this Agreement and to execute and deliver
      all documents assigning the Membership Interests to Buyer;

    

    (iv) Such
      documents described in this Agreement to be executed by Seller, and deliver
      such
      other documents and papers which may be reasonably necessary to the consummation
      of the Transaction as may be reasonably requested by Buyer, or its respective
      counsel;

     

    (v) Certificates
      of Good Standing for each Company and Certificates of Authority from each state
      where the Companies are qualified to do business in;

    

    (vi) Copies
      of
      the Certificate of Formation and Operating Agreement together with all
      modifications and amendments thereto for each Company, certified as true and
      correct by an authorized officer of Seller;

    

    (vii) The
      original Limited Liability Company Agreement for each Company to which a
      certification from an authorized officer of Seller shall be attached stating
      that the Limited Liability Company Agreements have not been modified or amended
      except in requested herein;
      

     

    
      
        
        

      

      
        -
          5 -

        
          

        

      

      
        
        

      

    

     

    (viii) The
      original Title Insurance issued by First American Insurance Company for each
      Property; and

    

    (ix) Notice
      to
      Tenant notifying Tenant of this Transaction; 

    

    (b) At
      closing, Buyer shall:

    

    (i) Deliver
      to Escrow Agent the balance of the Purchase Price;

    

    (ii) Deliver
      to Seller such documents as Seller or Seller’s respective counsel, may
      reasonably request to evidence Buyer’s authority to execute and perform under
      this Agreement;

    

    (iii) Deliver
      to Seller a duly executed Assignment and Assumption of Membership Interest
      for
      each Company; and 

    

    (iv) Such
      documents described in this Agreement to be executed by Buyer, and deliver
      such
      other documents and papers which may be reasonably necessary to the consummation
      of the Transaction as may be reasonably requested by Seller, Seller’s respective
      counsel.

    

    14. Default
      and Remedies.
      

    

    (a) In
      the
      event Seller defaults or willfully fails to perform any of the conditions or
      obligations of Seller under this Agreement
      and
      provided Buyer has performed all of its obligations hereunder
      required
      to be performed as of the date of Seller’s breach,
      Buyer,
      as Buyer’s sole and exclusive remedy,
      shall
      have the
      right to declare
      this Agreement terminated and, upon such termination (in which event Escrow
      Agent shall return the Deposit to Buyer), the parties shall have no further
      rights,
      liabilities
      or
      obligations with respect to this Agreement.

    

    (b) In
      the
      event that the terms and conditions of this Agreement have been satisfied by
      Seller and Buyer fails to close on this Agreement within the time limits set
      forth, Seller, as Sellers sole and exclusive remedy, shall be entitled to retain
      the Deposit as liquidated damages and declare this Agreement terminated, the
      parties shall have no further rights, obligations or liabilities with respect
      to
      this Agreement.

    

    15. Notices.
      Any
      notice required or permitted to be given under this Agreement shall be in
      writing and shall be deemed to have been given when deposited in the United
      States mail, registered or certified mail, postage prepaid, return receipt
      requested, or when faxed or deposited with a nationally recognized overnight
      courier service for next day delivery, and addressed to each party as set forth
      below. Either party may, from time to time, designate a different address to
      which notices shall be sent.

     

    
      
        
        

      

      
        -
          6 -

        
          

        

      

      
        
        

      

    

     

    To
      Seller: 

    

    ARC
      GROWTH FUND I, LLC

    405
      Park
      Avenue, 15th Floor

    New
      York,
      New York 10022

    Telephone:
      (212) 415-6500

    Fax
      No.:
      (212) 421-5799

    

    To
      Buyer:

    

    AMERICAN
      REALTY CAPITAL OPERATING 

    PARTNERSHIP,
      L.P.

    106
      Old
      York Road

    Jenkintown,
      Pennsylvania 19046

    Telephone:
      (215) 887-2189

    Fax
      No.:
      (215) 887-2585

    

    16. Miscellaneous.

    

    (a) This
      Agreement shall be governed by and construed in accordance with the laws of
      Delaware.

    

    (b) This
      Agreement and the attached Exhibits contain the entire understanding and
      agreement by and between the parties with respect to the subject matter of
      this
      Agreement and all prior or contemporaneous oral or written agreements or
      instruments are merged in this Agreement and no amendment to this Agreement
      shall be effective unless the same is in writing and signed by the parties
      hereto.

    

    (c) The
      parties hereby designate Buyer’s attorney as the responsible party for filing a
      Form 1099 (or other substitute, additional or replacement forms) reporting
      this
      transaction to the Internal Revenue Service and agree to furnish such party
      with
      all information necessary to permit such party to file the same. 

    

    (d) This
      Agreement shall be binding upon and shall inure to the benefit of the parties
      and their respective heirs, successors, executors, administrators and permitted
      assigns.

    

    (e) Each
      party represents and warrants to the other party that the execution of this
      Agreement and any other documents required or necessary to be executed pursuant
      to the provisions of this Agreement are valid, binding obligations and are
      enforceable in accordance with their terms.

    

    (f) The
      captions and headings throughout this Agreement are for convenience and
      reference only and the words contained therein shall in no way be held to define
      or add to the interpretation, construction or meaning of any provision of this
      Agreement.

    

    (g) This
      Agreement may not be changed orally, but only by an agreement in writing signed
      by both Buyer and Seller. No waiver of any of the provisions to this Agreement
      shall be valid unless in writing and signed by the party against whom such
      waiver is sought to be enforced.

     

    
      
        
        

      

      
        -
          7 -

        
          

        

      

      
        
        

      

    

     

    (h) In
      the
      event either party shall bring any action or proceeding pursuant to this
      Agreement, the prevailing party therein shall be entitled to recover its costs
      and expenses in such action or proceeding, including reasonable attorneys’ fees.
      The provisions of this subparagraph (g) shall survive the Closing or early
      termination of this Agreement.

    

    (i) This
      Agreement shall not be assignable without the consent of the Seller which may
      be
      withheld or granted in its sole discretion; provided, however, nothing herein
      shall prevent Buyer from assigning this Agreement to an Intermediary (as
      hereinafter defined) or to an entity which is owned or controlled by or commonly
      controlled with Buyer, or the Intermediary. Buyer shall nevertheless have the
      right with notice to Seller to assign this Agreement or its right to purchase
      the Company to an entity owned by, controlled by or under common control with
      Buyer. In no event shall any assignment of this Agreement release or discharge
      Buyer from any liability or obligation hereunder.

     

    (j) This
      Agreement may be executed in several counterparts, each of which shall be deemed
      an original, and all such counterparts together shall constitute one and the
      same instrument. Delivery of executed facsimile counterparts of this Agreement
      shall be deemed effective delivery hereof.

    

    17. NO
      ATTORNEY CLIENT RELATIONSHIP/NO TAX ADVICE.
      BUYER
      ACKNOWLEDGES THAT SELLER HAS NOT HELD ITSELF OUT AS ENGAGED IN THE PRACTICE
      OF
      LAW OR ACCOUNTING AND HAS NOT ESTABLISHED, DIRECTLY OR INDIRECTLY, AN
      ATTORNEY-CLIENT OR ACCOUNTANT-CLIENT RELATIONSHIP WITH SELLER, OR ANY OF
      SELLER’S OFFICERS, DIRECTORS, MANAGERS, AGENTS, EMPLOYEES OR REPRESENTATIVES
      (INCLUDING, WITHOUT LIMITATION, SELLER’S LEGAL COUNSEL) (COLLECTIVELY,
“SELLER’S
      PARTIES”).
      IT IS
      UNDERSTOOD AND AGREED THAT ANY REPRESENTATIONS OR STATEMENTS MADE BY SELLER
      OR
      ANY OF SELLER’S PARTIES REGARDING LEGAL OR TAX CONSEQUENCES MAY NOT BE USED OR
      RELIED UPON BY BUYER. BUYER REPRESENTS THAT IT HAS EITHER OBTAINED LEGAL COUNSEL
      AND TAX ADVICE PRIOR TO ENTERING INTO THIS AGREEMENT OR IT HAS ITSELF DEEMED
      IT
      UNNECESSARY TO SEEK SUCH ADVICE. SELLER SHALL NOT BE HELD RESPONSIBLE FOR ANY
      FAILURE OF BUYER TO SEEK AND OBTAIN LEGAL AND TAX ADVICE. 

     

    18. Recordation.
      Neither
      this Agreement nor any memorandum hereof may be recorded or filed. Any attempted
      recordation of this Agreement or a memorandum hereof shall render it null and
      void with Seller entitled to retain the Deposit paid hereunder.

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        -
          8 -

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      parties have caused this Agreement to be executed by their authorized
      representatives.

    

      
        	 	
                SELLER

              
	 	 	 	 	 	 
	 	
                ARC
                  GROWTH FUND I, LLC,

              
	 	
                a
                  Delaware limited liability company

              
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	
                By:

              	      

	 	 	
                Name:

              	
                William
                  Kahane

              
	 	 	
                Title:

              	
                President

              
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	
                BUYER

              
	 	 	 	 	 	 
	 	
                AMERICAN
                  REALTY CAPITAL 

                OPERATING
                  PARTNERSHIP, L.P., 

              
	 	
                a
                  Delaware limited partnership

              
	 	 	 	 	 	 
	 	
                By:  

              	
                American
                  Realty Capital Trust, Inc., its general partner

              
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	
                By:

              	     

	 	 	 	Name: 
                	
                Brian
                  Block

              
	 	 	 	Title:
                	
                Chief
                  Financial Officer

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      OF EXHIBITS

    

      
        	
                Exhibit
                  A-1

              	
                Description
                  of the Palm Coast Land

              
	 	 
	
                Exhibit
                  A-2

              	
                Description
                  of the Pompano Beach Land

              
	 	 
	
                Exhibit
                  B-1

              	
                The
                  Palm Coast Lease

              
	 	 
	
                Exhibit
                  B-2

              	
                The
                  Pompano Beach Lease

              
	 	 
	
                Exhibit
                  C-1

              	
                Limited
                  Liability Company Agreement of ARC WBPCFL0001, LLC

              
	 	 
	
                Exhibit
                  C-2

              	
                Limited
                  Liability Company Agreement of ARC WBPBFL0001, LLC

              
	 	 
	
                Exhibit
                  D-1

              	
                The
                  Palm Coast Property

              
	 	 
	
                Exhibit
                  D-2

              	
                The
                  Pompano Beach Property

              
	 	 
	
                Exhibit
                  E

              	
                Form
                  of Assignment and Assumption of Membership
                  Interest

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

    

    EXHIBIT
      “A-1”

    

    Description
      of the Palm Coast Land

    

    Lot
      7,
      Southwest Quadrant Phase I, according to the plat thereof, as recorded in Plat
      Book 29, Pages 94 and 95, of the Public Records of Flagler County,
      Florida.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      "A-2"

    

    Description
      of the Pompano Beach Land

    

    All
      of
      Tract B of PALM-AIRE MARKETPLACE, according to the Plat thereof recorded in
      Plat
      Book 164, Page 35, of the Public Records of Broward County,
      Florida.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “B-1”

    

    The
      Palm Coast Lease

    

    Lease
      dated as of June 30, 2008, between American Realty Capital II, LLC (predecessor
      in interest to ARC WBPCFL0001, LLC), as landlord, and National City Bank, as
      tenant, as assigned by that certain Assignment and Assumption of Lease dated
      as
      of July, 2008 by American Realty Capital II, LLC, as assignor, to ARC
      WBPCFL0001, LLC, as assignee, as further amended by letter agreement dated
      August 22, 2008 from National City Bank to ARC WBPCFL0001, LLC, and further
      by
      that certain Commencement Date Certificate dated as of August 22,
      2008.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “B-2”

    

    The
      Pompano Beach Lease

    

    Lease
      dated as of July 23, 2008, between ARC WBPBFL0001, LLC, as landlord, and
      National City Bank, as tenant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “C-1”

    

    Limited
      Liability Company Agreement for ARC WBPCFL0001, LLC

    

    [TO
      BE
      ATTACHED]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “C-2”

    

    Limited
      Liability Company Agreement for ARC WBPBFL0001, LLC

    

    [TO
      BE
      ATTACHED]

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      “D-1” 

    

    Palm
      Coast Property

    

    With
      respect to ARC
      WBPCFL0001, LLC (collectively,
      the "Palm
      Coast Property"):

    

    (a) All
      of
      the Palm Coast’s interest as fee owner of the Palm Coast Land;

    

    (b) Subject
      to the terms of the Palm Coast Lease, all improvements and fixtures now located
      on the Palm Coast Land including, without limitation, any and all other
      buildings, structures, parking areas, landscaping improvements and other
      amenities currently located on the Palm Coast Land (collectively, the
      "Palm
      Coast Improvements");

    

    (c) Subject
      to the terms of the Palm Coast Lease, all personal property, if any, now owned
      or hereafter acquired by Palm Coast and located on or to be located on or in
      or
      used in connection with the Palm Coast Land and Palm Coast Improvements
      (collectively, the "Palm
      Coast Personal Property");

    

    (d) All
      of
      the Palm Coast's interest, if any, in any intangible property now or hereafter
      owned by the Palm Coast and used in connection with the Palm Coast Land, the
      Palm Coast Improvements and the Palm Coast Personal Property, including, without
      limitation, the following: (A) all existing warranties and guaranties issued
      in
      connection with the Palm Coast Property; and (B) all existing permits, licenses,
      approvals and authorizations issued by any governmental authority in connection
      with the Palm Coast Property, including, without limitation, the right to use
      any name or trade name associated with any of the foregoing (collectively,
      the
“Palm
      Coast Intangible Property”).

    

    (e) All
      of
      the Palm Coast's right, title and interest as landlord under the Lease,
      including any and all rents, charges, and claims of landlord thereunder, tenant
      estoppel certificates, reimbursement rights, and the like (collectively, the
      “Palm
      Coast Lease Rights”).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      “D-2” 

    

    Pompano
      Beach Property

    

    With
      respect to Pompano Beach (collectively, the "Pompano
      Beach Property"):

    

    (a) All
      of
      the Pompano Beach’s interest as fee owner of the Pompano Beach
      Land;

    

    (b) Subject
      to the terms of the Pompano
      Beach Lease,
      all improvements and fixtures now located on the Pompano
      Beach Land
      including, without limitation, any and all other buildings, structures, parking
      areas, landscaping improvements and other amenities currently located on the
      Pompano
      Beach Land
      (collectively, the "Pompano
      Beach Improvements",
      together with the Palm Coast Improvements, the "Improvements");

    

    (c) Subject
      to the terms of the Pompano
      Beach Lease,
      all personal property, if any, now owned or hereafter acquired by Pompano Beach
      and located on or to be located on or in or used in connection with the
Pompano
      Beach Land
      and
Pompano
      Beach Improvements
      (collectively, the "Pompano
      Beach Personal
      Property",
      together with the Palm Coast Personal Property, the "Personal
      Property");

    

    (d) All
      of
      the Pompano Beach's interest, if any, in any intangible property now or
      hereafter owned by the Pompano Beach and used in connection with the
Pompano
      Beach Land,
      the
Pompano
      Beach Improvements
      and the Pompano
      Beach Personal
      Property, including, without limitation, the following: (A) all existing
      warranties and guaranties issued in connection with the Pompano
      Beach Property;
      and (B) all existing permits, licenses, approvals and authorizations issued
      by
      any governmental authority in connection with the Pompano
      Beach Property,
      including, without limitation, the right to use any name or trade name
      associated with any of the foregoing (collectively, the “Pompano
      Beach Intangible
      Property”,
      together with the Palm Coast Intangible Property, the "Intangible
      Property").

    

    (e) All
      of
      the Pompano Beach's right, title and interest as landlord under the Pompano
      Beach Lease,
      including any and all rents, charges, and claims of landlord thereunder, tenant
      estoppel certificates, reimbursement rights, and the like (collectively, the
      “Pompano
      Beach Lease
      Rights”,
      together with the Palm Coast Lease Rights, the "Lease
      Rights").

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      “E”

    

    Assignment
      and Assumption of Membership Interest

    

    THIS
      ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP INTEREST (“Assignment”)
      is
      entered into as of __________, 2008 by and among ARC GROWTH FUND I, LLC
      (“Transferor”),
      and
      AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP, L.P. (“Transferee”).

    

    RECITALS:

    

    A. ARC
      _________, LLC, a Delaware limited liability company (the “LLC”),
      was
      formed pursuant to a Limited Liability Company Agreement dated as of
      _____________ (the “LLC
      Agreement”),
      executed by Transferor, as the sole member of the LLC.

    

    B. Pursuant
      to Section 8.1 of the LLC Agreement Transferor desires to assign and transfer
      one hundred percent (100%) of its Membership Interest (as such term is defined
      in the LLC Agreement) in the LLC, as the sole Member (as such term is defined
      in
      the LLC Agreement) in the LLC to Transferee and to admit Transferee as a Member
      of the LLC (the “Transaction”).

    

    AGREEMENT:

    

    NOW,
      THEREFORE, in consideration of the mutual covenants set forth in this Assignment
      and the LLC Agreement, and for other good and valuable consideration, the
      receipt and sufficiency of which are hereby acknowledged, the parties hereto
      agree as follows:

    

    1. Definitions.
      All
      terms used herein which have their initial letter capitalized which have been
      specially defined in the LLC Agreement shall have the same meaning herein as
      set
      forth in the LLC Agreement, unless expressly provided otherwise
      herein.

    

    2. Assignment.
      Transferor does hereby assign and transfer unto Transferee one hundred percent
      (100%) of its Membership Interest in the LLC, which Membership Interest
      constitutes the entire ownership interest outstanding in the LLC. By execution
      of this Assignment, Transferee intends to become the sole Member of the LLC.
      Transferee hereby accepts the assignment and transfer of such Membership
      Interest in the LLC from Transferor, and does hereby ratify, accept, adopt
      and
      agree to and hereby agrees to be bound by, all of the terms and provisions
      of
      the LLC Agreement, and such Transferee hereby assumes all obligations,
      responsibilities, duties, liabilities and costs of a Member accruing or becoming
      due from and after the date hereof. The Transferor, as the Member of the LLC,
      hereby approves Transferee and the transfer of the Membership Interest belonging
      to the Transferor to Transferee. Transferee is hereby admitted as a Member
      with
      respect to the Membership Interest so transferred, and from and after the
      execution and delivery of this Assignment, Transferee shall be the sole Member
      of the LLC under the LLC Agreement.  

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Counterparts.
      To
      facilitate execution, this instrument may be executed in as many counterparts
      as
      may be convenient or required. It shall not be necessary that the signature
      or
      acknowledgment of, or on behalf of, each party, or that the signature of all
      persons required to bind any party, or the acknowledgment of such party, appear
      on each counterpart. All counterparts shall collectively constitute a single
      instrument. It shall not be necessary in making proof of this instrument to
      produce or account for more than a single counterpart containing the respective
      signatures of, or on behalf of, and the respective acknowledgments of, each
      of
      the parties hereto. Any signature or acknowledgment page to any counterpart
      may
      be detached from such counterpart without impairing the legal effect of the
      signatures or acknowledgments thereon and thereafter attached to another
      counterpart identical thereto except having attached to it additional signature
      or acknowledgment pages.

    

    4. Severability.
      Any
      provision of this Assignment that is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction.

    

    5. Successors
      and Assigns.
      All
      covenants and agreements contained herein shall be binding upon and inure to
      the
      benefit of the parties hereto, and their respective successors and assigns.
      Any
      request, notice, direction, consent, waiver, or other writing or action by
      the
      Managers or the Members prior to the date hereof shall bind each of its or
      their
      successors and assigns.

    

    6. No
      Amendments.
      Except
      as amended hereby, the LLC Agreement shall not be amended and shall remain
      in
      full force and effect in accordance with its terms.

    

    7. Governing
      Law.
      THIS
      ASSIGNMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
      OF
      THE STATE OF DELAWARE APPLICABLE TO CONTRACTS TO BE PERFORMED ENTIRELY WITHIN
      SUCH STATE, INCLUDING ALL MEANS OF CONSTRUCTION, VALIDITY AND
      PERFORMANCE.

    

    [SIGNATURES
      TO APPEAR ON THE FOLLOWING PAGES]

    

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

    

     

    EXECUTED
      as of the date first above written.

    
      

        
          	 	 	 	 	 	 
	 	
                  TRANSFEROR:

                
	 	 
	 	
                  ARC
                    GROWTH FUND I, LLC,

                
	 	 	 	 	 	 
	 	
                  By:

                	     

	 	
                	
                  Name:

                	
                  William
                    Kahane

                
	 	
                	
                  Title:
                    

                	
                  President

                
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	TRANSFEREE:
	 	 	 	 	 	 
	 	
                  AMERICAN REALTY CAPITAL

                  OPERATING PARTNERSHIP, L.P.,

                  a Delaware limited partnership

                
	 	 	 	 	 	 
	 	
                  By:  

                	
                  
                    American
                      Realty Capital Trust, Inc., its general partner

                  

                
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	
                	
                  By:
                    

                	     

	 	 	
                	Name: 
                  	
                  Brian
                    Block

                
	 	 	
                	Title:	
                  Chief
                    Financial Officer

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