Document:

Form of Amended and Restated Escrow Agreement

 Exhibit 4.5 
 FORM OF SUBSCRIPTION ESCROW AGREEMENT 
 THIS SUBSCRIPTION ESCROW
AGREEMENT (this “Escrow Agreement”), dated as of                     , 2010, is entered into by and among Realty Capital
Securities, LLC (the “Dealer Manager”), Phillips Edison – ARC Shopping Center REIT Inc. (the “Company”) and Wells Fargo Bank, National Association, as Escrow Agent (the “Escrow Agent”).

 WHEREAS, the Company intends to raise cash funds from investors (the “Investors”) pursuant to a public offering (the
“Offering”) of not less than $2,500,000 (the “Minimum Amount”) nor more than $1,500,000,000 of shares of common stock, par value $0.01 of the Company (the “Securities”) pursuant to the registration
statement on Form S-11 of the Company (No. 333-164313) (the “Offering Document”), as amended, a copy of which is attached as Exhibit A hereto. 
 WHEREAS, the Company desires to establish an escrow account with the Escrow Agent for funds contributed by the Investors with the Escrow Agent, to be held for the benefit of the Investors and the
Company until such time as (i) subscriptions for the Minimum Amount of the Securities have been deposited into escrow or otherwise in accordance with the terms of this Escrow Agreement and (ii) in the case of subscriptions received from
residents of Pennsylvania (“Pennsylvania Investors”), aggregate subscriptions from all Investors resulting in a total minimum capital raised of $50,000,000 (the “Pennsylvania Minimum Amount”) and deposited into
escrow or otherwise provided in accordance with the terms of this Escrow Agreement. 
 WHEREAS, the Company has entered into an Amended
and Restated Exclusive Dealer Manager Agreement, dated April 9, 2010, with the Dealer Manager pursuant to which the Dealer Manager is authorized to solicit and collect Investor Funds (as defined below) on behalf of the Company. 
 WHEREAS, the Escrow Agent is willing to accept appointment as escrow agent only for the expressed duties outlined herein. 
 NOW, THEREFORE, in consideration of the premises set forth above and other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto agree as follows: 
 1. Proceeds to be Escrowed. On or before the first date of the Offering, the
Company shall establish an escrow account with the Escrow Agent to be invested in accordance with Section 9 hereof entitled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS FOR COMMON STOCK OF PHILLIPS EDISON – ARC SHOPPING CENTER REIT
INC.” (with such abbreviations as may be required to comply with Escrow Agent’s operating systems, the “Escrow Account”). All funds received from Investors in payment for the Securities (“Investor
Funds”) will be delivered to the Escrow Agent within one (1) business day following the day upon which such Investor Funds are received by the Company or its agents, and shall, upon receipt by the Escrow Agent, be retained in escrow by
the Escrow Agent and invested as stated herein. During the term of this Escrow Agreement, the Company or its agents shall cause all checks received by and made payable to it in payment for the Securities to be endorsed in favor of the Escrow Agent
and delivered to the Escrow Agent for deposit in the Escrow Account. 
 Proceeds received from Pennsylvania Investors shall be accounted for
separately in a subaccount entitled “Escrow Account for the Benefit of Pennsylvania Investors for Phillips Edison – ARC Shopping Center REIT Inc.” (with such abbreviations as may be required to comply with Escrow Agent’s
operating systems, the “Pennsylvania Escrow Account” and together with the Escrow Account, the “REIT Escrow Accounts”), until such Pennsylvania Escrow Account has terminated pursuant to Section 4
hereof. The

  

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Company shall, and shall cause its agents to, cooperate with the Escrow Agent in separately accounting for subscription proceeds from Pennsylvania Investors in the Pennsylvania Escrow Account,
and the Escrow Agent shall be entitled to rely upon information provided by the Company or its agents in this regard. 
 The Escrow Agent shall
have no duty to make any disbursement, investment or other use of Investor Funds until and unless it has good and collected funds. In the event that any checks deposited in the REIT Escrow Accounts are returned or prove uncollectible after the
funds represented thereby have been released by the Escrow Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs incurred for such, upon request, and the Escrow Agent shall deliver the returned checks to the
Company. The Escrow Agent shall be under no duty or responsibility to enforce collection of any check delivered to it hereunder. The Escrow Agent reserves the right to deny, suspend or terminate participation by any Investor to the extent
the Escrow Agent deems it advisable or necessary to comply with applicable laws or to eliminate practices that are not consistent with the purposes of the Offering. 
 2. Investors. Persons subscribing to purchase the Securities will be instructed by the Dealer Manager or any soliciting dealers to remit the purchase price in the form of checks (hereinafter
“instruments of payment”) payable to the order of, or funds wired in favor of, “WELLS FARGO BANK, NA, ESCROW AGENT FOR PHILLIPS EDISON – ARC SHOPPING CENTER REIT INC.” Any checks received made payable to a party other
than the Escrow Agent shall be returned to the soliciting dealer who submitted the check. By 12:00 p.m. (noon) the next business day after receipt of instruments of payment from the Offering, the Escrow Agent shall be furnished with a list of
the Investors who have paid for the Securities showing the name, address, tax identification number, amount of Securities subscribed for, the amount paid and whether such Investors are Pennsylvania Investors. The information comprising the
identity of Investors shall be provided to the Escrow Agent in the format set forth in the “List of Investors” attached hereto as Exhibit B. The Escrow Agent shall be entitled to conclusively rely upon the list of Investors in
determining whether Investors are Pennsylvania Investors and shall have no duty to independently determine or verify the same. 
 All Investor
Funds deposited in the REIT Escrow Accounts shall not be subject to any liens or charges by the Company or the Escrow Agent, or judgments or creditors’ claims against the Company, until and unless released to the Company as hereinafter
provided. The Company understands and agrees that the Company shall not be entitled to any Investor Funds on deposit in the REIT Escrow Accounts and no such funds shall become the property of the Company, or any other entity except as released
to the Company pursuant to Section 3 or Section 4 for Pennsylvania Investors. The Escrow Agent will not use the information provided to it by the Company for any purpose other than to fulfill its obligations as Escrow Agent. The
Company, the Dealer Manager and the Escrow Agent will treat all Investor information as confidential. The Escrow Agent shall not be required to accept any Investor Funds which are not accompanied by the information on the List of Investors.

 3. Disbursement of Funds. Once the Escrow Agent is in receipt of good and collected Investor Funds totaling at least the Minimum
Amount from Investors (excluding funds from Pennsylvania Investors), the Escrow Agent shall notify the Company of same in writing. Additionally, at the end of the third business day following the Termination Date (as defined in Section 6), the
Escrow Agent shall notify the Company of the amount of the Investor Funds received. If the Minimum Amount has been obtained on or before the Termination Date, the Escrow Agent shall promptly notify the Company and, upon receiving an
acknowledgement of such notice written instructions from the Company’s General Counsel or Chief Financial Officer, the Escrow Agent shall disburse to the Company, by check or wire transfer, the funds in the Escrow Account representing the gross
purchase price of the Securities. The Escrow Agent agrees that funds in the Escrow Account shall not be released to the Company until and unless the Escrow Agent receives written instructions to release the funds from the Company’s General
Counsel or Chief Financial Officer. 
  

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 If the Minimum Amount has not been obtained prior to the Termination Date, the Escrow Agent shall, within a
reasonable time following the Termination Date, but in no event more than thirty (30) days after the Termination Date, refund to each Investor by check funds deposited in the Escrow Account, or shall return the instruments of payment delivered
to Escrow Agent if such instruments have not been processed for collection prior to such time, directly to each Investor at the address provided in the list of Investors. Included in the remittance shall be a proportionate share of the income earned
in the account allocable to each Investor’s investment in accordance with the terms and conditions specified herein, except that in the case of Investors who have not provided an executed Form W-9 or substitute Form W-9 (or the applicable
substitute Form W-8 for foreign investors), the Escrow Agent shall withhold the applicable percentage of the earnings attributable to those Investors in accordance with IRS regulations. Notwithstanding the foregoing, the Escrow Agent shall not be
required to remit any payments until funds represented by such payments have been collected by Escrow Agent. 
 In the event the Escrow Agent
receives written notice from the Company that the Company intends to reject an Investor’s subscription, the Escrow Agent shall pay to the applicable Investor(s), within a reasonable time not to exceed ten (10) business days after receiving
notice of the rejection, by first class United States Mail at the address appearing on the List of Investors, or at such other address as shall be furnished to the Escrow Agent by the Investor in writing, all collected sums paid by the Investor for
Securities and received by the Escrow Agent, together with the interest earned on such Investor Funds. 
 4. Disbursement of Proceeds for
Pennsylvania Investors. Notwithstanding the foregoing, proceeds from Pennsylvania Investors will not count towards meeting the Minimum Amount for purposes of Section 3. Proceeds received from Pennsylvania Investors will not be
released from the Pennsylvania Escrow Account until the Pennsylvania Minimum Amount is obtained. If the Pennsylvania Minimum Amount is obtained at any time prior to the Termination Date, the Escrow Agent shall promptly notify the Company and,
upon receiving acknowledgement of such notice and written instructions from the Company’s General Counsel or Chief Financial Officer, the Escrow Agent shall disburse to the Company, by check or wire transfer, the funds in the Pennsylvania
Escrow Account representing the gross purchase price of the Securities. The Escrow Agent agrees that funds in the Pennsylvania Escrow Account shall not be released to the Company until and unless the Escrow Agent receives written instructions
to release the funds from the Company’s General Counsel or Chief Financial Officer. 
 If the Pennsylvania Minimum Amount has not been
obtained prior to the Termination Date, the Escrow Agent shall, within a reasonable time following the Termination Date, but in no event more than thirty (30) days after the Termination Date, refund to each Pennsylvania Investor by check funds
deposited in the Pennsylvania Escrow Account, or shall return the instruments of payment delivered to Escrow Agent if such instruments have not been processed for collection prior to such time, directly to each Pennsylvania Investor at the address
provided in the list of Investors. Included in the remittance shall be a proportionate share of the income earned in the account allocable to each Pennsylvania Investor’s investment in accordance with the terms and conditions specified herein,
except that in the case of Investors who have not provided an executed Form W-9 or substitute Form W-9, the Escrow Agent shall withhold the applicable percentage of the earnings attributable to those Investors in accordance with IRS regulations.
Notwithstanding the foregoing, the Escrow Agent shall not be required to remit any payments until funds represented by such payments have been collected by Escrow Agent. 
 If the Escrow Agent is not in receipt of evidence of subscriptions accepted on or before the close of business on such date that is 120 days after the date that the Company first accepts a subscription
from a Pennsylvania Investor (which date the Company or the Dealer Manager will provide to the Escrow Agent

  

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in writing) (the “Initial Escrow Period”), and instruments of payment dated not later than that date, for the purchase of Securities providing for total purchase proceeds from
all nonaffiliated sources that equal or exceed the Pennsylvania Minimum Amount, the Escrow Agent shall promptly notify the Company. Thereafter, the Company or its agents shall send to each Pennsylvania Investor by certified mail within ten
(10) calendar days after the end of the Initial Escrow Period a notification substantially in the form of Exhibit F. If, pursuant to such notification, a Pennsylvania Investor requests the return of his or her subscription funds
within ten (10) calendar days after receipt of the notification (the “Request Period”), the Escrow Agent shall promptly refund directly to each Pennsylvania Investor the collected funds deposited in the Pennsylvania Escrow
Account on behalf of such Pennsylvania Investor or shall return the instruments of payment delivered, but not yet processed for collection prior to such time, to the address provided by the Dealer Manager or the Company or their respective agents to
the Escrow Agent, which the Escrow Agent shall be entitled to rely upon, together with interest income (which interest shall be paid within five business days after the first business day of the succeeding month) in the amounts calculated pursuant
to Section 9. Notwithstanding the above, if the Escrow Agent has not received an executed Form W-9 or substitute Form W-9 for such Pennsylvania Investor, the Escrow Agent shall thereupon remit an amount to such Pennsylvania Investor in
accordance with the provisions hereof, withholding the applicable percentage for backup withholding required by the Internal Revenue Code, as then in effect, from any interest income earned on subscription proceeds (determined in accordance with
Section 9) attributable to such Pennsylvania Investor. However, the Escrow Agent shall not be required to remit such payments until the Escrow Agent has collected funds represented by such payments. 
 The Investor Funds of Pennsylvania Investors who do not request the return of their Investor Funds within the Request Period shall remain in the
Pennsylvania Escrow Account for successive 120-day escrow periods (a “Successive Escrow Period”), each commencing automatically upon the termination of the prior Successive Escrow Period, and the Company and Escrow Agent shall
follow the notification and payment procedure set forth above with respect to the Initial Escrow Period for each Successive Escrow Period until the occurrence of the earliest of (i) the Termination Date, (ii) the receipt and acceptance by
the Company of subscriptions for the purchase of Securities with total purchase proceeds that equal or exceed the Pennsylvania Minimum Amount and the disbursement of the Pennsylvania Escrow Account on the terms specified herein, or (iii) all
funds held in the Pennsylvania Escrow Account having been returned to the Pennsylvania Investors in accordance with the provisions hereof. 
 5. [Intentionally Omitted.] 
 6. Term of Escrow. The “Termination Date” shall be the earlier of
(i) the close of business on the one year anniversary of the date of this Escrow Agreement; (ii) the disbursement of all funds held in the REIT Escrow Accounts to the Company or to Investors pursuant to Section 3 or Section 4 for
Pennsylvania Investors, and instruction from the Company to the Escrow Agent in writing, directing the termination each of the REIT Escrow Accounts; (iii) the date the Escrow Agent receives written notice from the Company that it is abandoning
the sale of the Securities; or (iv) the date the Escrow Agent receives notice from the Securities and Exchange Commission or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the
Offering Document and has remained in effect for at least twenty (20) days. After the Termination Date the Company shall not deposit, and the Escrow Agent shall not accept, any additional amounts representing payments by prospective
Investors. 
 7. Duty and Liability of the Escrow Agent. The sole duty of the Escrow Agent shall be to receive Investor Funds and hold
them subject to release, in accordance herewith, and the Escrow Agent shall be under no duty to determine whether the Company or the Dealer Manager is complying with requirements of this Escrow Agreement, the Offering or applicable securities or
other laws in tendering the Investor Funds to the Escrow Agent. No other agreement entered into between the parties, or any of them, shall be considered as adopted or binding, in whole or in part, upon the Escrow Agent notwithstanding that any

  

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such other agreement may be referred to herein or deposited with the Escrow Agent or the Escrow Agent may have knowledge thereof, including specifically but without limitation the Offering
Document, and the Escrow Agent’s rights and responsibilities shall be governed solely by this Escrow Agreement. The Escrow Agent shall not be responsible for or be required to enforce any of the terms or conditions of any Offering Document
or other agreement between the Company and any other party. The Escrow Agent may conclusively rely upon and shall be protected in acting upon any statement, certificate, notice, request, consent, order or other document believed by it to be
genuine and to have been signed or presented by the proper party or parties. The Escrow Agent shall have no duty or liability to verify any such statement, certificate, notice, request, consent, order or other document, and its sole responsibility
shall be to act only as expressly set forth in this Escrow Agreement. Concurrent with the execution of this Escrow Agreement, the Company shall deliver to the Escrow Agent an authorized signers form in the form of Exhibit C to this Escrow
Agreement. The Escrow Agent shall be under no obligation to institute or defend any action, suit or proceeding in connection with this Escrow Agreement unless first reasonably indemnified to its satisfaction. The Escrow Agent may
reasonably consult counsel of its own choice with respect to any question arising under this Escrow Agreement and shall be protected in acting or not acting in reliance on such counsel’s advice, except as otherwise provided herein. The
Escrow Agent shall not be liable for any action taken or omitted by it, except to the extent that a court of competent jurisdiction determines that the Escrow Agent’s gross negligence or willful misconduct was the primary cause of loss. The
Escrow Agent is acting solely as escrow agent hereunder and owes no duties, covenants or obligations, fiduciary or otherwise, to any other person by reason of this Escrow Agreement, except as otherwise stated herein, and no implied duties, covenants
or obligations, fiduciary or otherwise, shall be read into this Escrow Agreement against the Escrow Agent. In the event of any disagreement between any of the parties to this Escrow Agreement, or between any of them and any other person,
including any Investor, resulting in adverse claims or demands being made in connection with the matters covered by this Escrow Agreement, or in the event that the Escrow Agent is in doubt as to what action it should take hereunder, the Escrow Agent
may, at its option, refuse to comply with any claims or demands on it, or refuse to take any other action hereunder, so long as such disagreement continues or such doubt exists, and in any such event, the Escrow Agent shall not be or become liable
in any way or to any person for its failure or refusal to act, and the Escrow Agent shall be entitled to continue so to refrain from acting until (i) the rights of all interested parties shall have been fully and finally adjudicated by a court
of competent jurisdiction, or (ii) all differences shall have been adjudged and all doubt resolved by agreement among all of the interested persons, and the Escrow Agent shall have been notified thereof in writing signed by all such persons.
Notwithstanding the foregoing, the Escrow Agent may in its discretion obey the order, judgment, decree or levy of any court, whether with or without jurisdiction and the Escrow Agent is hereby authorized in its sole discretion to comply with and
obey any such orders, judgments, decrees or levies. In the event that any controversy should arise with respect to this Escrow Agreement the Escrow Agent shall have the right, at its option, to institute an interpleader action in any court of
competent jurisdiction to determine the rights of the parties. IN NO EVENT SHALL THE ESCROW AGENT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL LOSSES OR DAMAGES OF ANY KIND WHATSOEVER (INCLUDING WITHOUT
LIMITATION LOST PROFITS), EVEN IF THE ESCROW AGENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES AND REGARDLESS OF THE FORM OF ACTION. The parties agree that the Escrow Agent has no role in the preparation of the Offering
Document and makes no representations or warranties with respect to the information contained therein or omitted therefrom. The Escrow Agent shall have no obligation, duty or liability with respect to compliance with any federal or state
securities, disclosure or tax laws concerning the Offering Document or the issuance, offering or sale of the Securities. The Escrow Agent shall have no duty or obligation to monitor the application and use of the Investor Funds once transferred
to the Company, that being the sole obligation and responsibility of the Company. 
  

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 8. Escrow Agent’s Fee. The Escrow Agent shall be entitled to compensation for its services as
stated in the fee schedule attached hereto as Exhibit D, which compensation shall be paid by the Company. The fee agreed upon for the services rendered hereunder is intended as full compensation for the Escrow Agent’s services as contemplated
by this Escrow Agreement; provided, however, that in the event that the conditions for the disbursement of funds under this Escrow Agreement are not fulfilled, or the Escrow Agent renders any material service not contemplated in this Escrow
Agreement, or there is any assignment of interest in the subject matter of this Escrow Agreement, or any material modification hereof, or if any material controversy arises hereunder, or the Escrow Agent is made a party to any litigation pertaining
to this Escrow Agreement, or the subject matter hereof, then the Escrow Agent shall be reasonably compensated for such extraordinary services and reimbursed for all costs and expenses, including reasonable attorney’s fees, occasioned by any
delay, controversy, litigation or event, and the same shall be recoverable from the Company. The Company’s obligations under this Section 8 shall survive the resignation or removal of the Escrow Agent and the assignment or termination
of this Escrow Agreement. 
 9. Investment of Proceeds. The Investor Funds shall be deposited in the REIT Escrow Accounts in accordance
with Section 3 or Section 4 for Pennsylvania Investors. The Escrow Agent is hereby directed to invest all funds received under this Escrow Agreement, including principal and interest, in the Wells Fargo Bank Money Market Deposit
Account, as directed in writing in the form of Exhibit E to this Escrow Agreement. The Escrow Agent shall invest the Investor Funds in alternative investments in accordance with written instructions as may from time to time be provided to the
Escrow Agent and signed by the Company. In the absence of written investment instructions from the Company to the contrary, the Escrow Agent is hereby directed to invest the Investor Funds in the Wells Fargo Bank Money Market Deposit Account.
Notwithstanding the foregoing, Investor Funds shall not be invested in anything other than “Short Term Investments” in compliance with Rule 15c2-4 of the Securities Exchange Act of 1934, as amended. The following are not permissible
investments: (a) money market mutual funds, (b) corporate debt or equity securities, (c) repurchase agreements, (d) banker’s acceptance, (e) commercial paper, and (f) municipal securities. Any interest
received by the Escrow Agent with respect to the Investor Funds, including reinvested interest shall become part of the Investor Funds, and shall be disbursed pursuant to Section 3 or Section 4 for Pennsylvania Investors. The Company
agrees that, for tax reporting purposes, all interest or other taxable income earned on the Investor Funds in any tax year shall be taxable to the Company. 
 The Escrow Agent shall be entitled to sell or redeem any such investments as necessary to make any payments or distributions required under this Escrow Agreement. The Escrow Agent shall have no
responsibility or liability for any loss which may result from any investment made pursuant to this Escrow Agreement, or for any loss resulting from the sale of such investment. The parties acknowledge that the Escrow Agent is not providing
investment supervision, recommendations, or advice. 
 The Company on the date of this Escrow Agreement shall provide the Escrow Agent with
certified tax identification numbers by furnishing appropriate IRS forms W-9 or W-8 (or substitute forms W-9 or W-8) and other forms and documents that the Escrow Agent may reasonably request. The Company understands that if such tax reporting
documentation is not so certified to the Escrow Agent, the Escrow Agent may be required by the Internal Revenue Code of 1986, as amended, to withhold a portion of any interest or other income earned on the Investor Funds pursuant to this Escrow
Agreement. 
 The Company agrees to indemnify and hold the Escrow Agent harmless from and against any taxes, additions for late payment,
interest, penalties and other expenses that may be assessed against the Escrow Agent on or with respect to any payment or other activities under this Escrow Agreement unless any such tax, addition for late payment, interest, penalties and other
expenses shall be determined by a court of competent jurisdiction to have been caused by the Escrow Agent’s gross negligence or willful misconduct. The terms of this Section shall survive the termination of this Escrow Agreement and the
resignation or removal of the Escrow Agent. 
  

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 10. Notices. All notices, requests, demands, and other communications under this Escrow
Agreement shall be in writing and shall be deemed to have been duly given (a) on the date of service if served personally on the party to whom notice is to be given, (b) on written confirmation of receipt if sent by facsimile/email
transmission to the facsimile number/email address given below, provided such facsimile/email transmission contains a document bearing an authorized signature (c) on the day after delivery to Federal Express or similar overnight courier or the
Express Mail service maintained by the United States Postal Service, or (d) on the fifth day after mailing, if mailed to the party to whom notice is to be given, by first class mail, registered or certified, postage prepaid, and properly
addressed, return receipt requested, to the party as follows: 
 If to the Company: 
 Phillips Edison – ARC Shopping Center REIT Inc. 
 11501 Northlake Drive 
 Cincinnati, Ohio 45249 
 Fax: [•] 
 Attention: John Bessey, President 
 Attention: Richard Smith, Chief Financial Officer 
 with a copy to: 
 DLA Piper LLP (US) 
 4141 Parklake Avenue 
 Suite 300 
 Raleigh, North Carolina 27612 
 Attention: Robert H. Bergdolt, Esq. 
 If to the Dealer Manager: 
 Realty Capital Securities, LLC 
 Three Copley Place 
 Suite 3300 
 Boston, MA 02116 
 Attention: Nicholas
Corvinus, Chief Executive Officer 
 with a copy to: 
 Proskauer Rose LLP 
 1585 Broadway 
 New York, New York 10036 
 Fax: (212) 969-2900 
 Attention: Peter M. Fass, Esq. 
 Attention: James P. Gerkis, Esq. 
 If to Escrow Agent: 
 Wells Fargo Bank, National Association 
 45 Broadway, 14th Floor 
 New York, NY 10006 
 Fax: (212) 509-1716

 Attention: Matt Sherman 
  

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 Any party may change its address for purposes of this Section by giving the other party written notice of
the new address in the manner set forth above. 
 11. Indemnification of Escrow Agent. The Company and the Dealer Manager hereby jointly
and severally indemnify, defend and hold harmless the Escrow Agent from and against, any and all loss, liability, cost, damage and expense, including, without limitation, reasonable counsel fees and expenses, which the Escrow Agent may suffer or
incur by reason of any action, claim or proceeding brought against the Escrow Agent arising out of or relating in any way to this Escrow Agreement or any transaction to which this Escrow Agreement relates unless such loss, liability, cost, damage or
expense is finally determined by a court of competent jurisdiction to have been primarily caused by the willful misconduct of the Escrow Agent. The terms of this Section shall survive the termination of this Escrow Agreement and the resignation
or removal of the Escrow Agent. 
 12. Successors and Assigns. Except as otherwise provided in this Escrow Agreement, no party hereto
shall assign this Escrow Agreement or any rights or obligations hereunder without the prior written consent of the other parties hereto and any such attempted assignment without such prior written consent shall be void and of no force and effect.
This Escrow Agreement shall inure to the benefit of and shall be binding upon the successors and permitted assigns of the parties hereto. Any corporation or association into which the Escrow Agent may be converted or merged, or with which it
may be consolidated, or to which it may sell or transfer all or substantially all of its corporate trust business and assets as a whole or substantially as a whole, or any corporation or association resulting from any such conversion, sale, merger,
consolidation or transfer to which the Escrow Agent is a party, shall be and become the successor Escrow Agent under this Escrow Agreement and shall have and succeed to the rights, powers, duties, immunities and privileges as its predecessor,
without the execution or filing of any instrument or paper or the performance any further act. 
 13. Governing Law; Jurisdiction. This
Escrow Agreement shall be construed, performed, and enforced in accordance with, and governed by, the internal laws of the State of New York, without giving effect to the principles of conflicts of laws thereof. 
 14. Severability. In the event that any part of this Escrow Agreement is declared by any court or other judicial or administrative body to be null,
void, or unenforceable, said provision shall survive to the extent it is not so declared, and all of the other provisions of this Escrow Agreement shall remain in full force and effect. 
 15. Amendments; Waivers. This Escrow Agreement may be amended or modified, and any of the terms, covenants, representations, warranties, or conditions hereof may be waived, only by a written
instrument executed by the parties hereto, or in the case of a waiver, by the party waiving compliance. Any waiver by any party of any condition, or of the breach of any provision, term, covenant, representation, or warranty contained in this Escrow
Agreement, in any one or more instances, shall not be deemed to be nor construed as further or continuing waiver of any such condition, or of the breach of any other provision, term, covenant, representation, or warranty of this Escrow
Agreement. The Company and the Dealer Manager agree that any requested waiver, modification or amendment of this Escrow Agreement shall be consistent with the terms of the Offering. 
  

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 16. Entire Agreement. This Escrow Agreement contains the entire understanding among the parties
hereto with respect to the escrow contemplated hereby and supersedes and replaces all prior and contemporaneous agreements and understandings, oral or written, with regard to such escrow. 
 17. Section Headings. The section headings in this Escrow Agreement are for reference purposes only and shall not affect the meaning or
interpretation of this Escrow Agreement. 
 18. Counterparts. This Escrow Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which shall constitute the same instrument. 
 19. Resignation. The Escrow Agent may resign upon 30
days’ advance written notice to the parties hereto. If a successor escrow agent is not appointed within the 30-day period following such notice, the Escrow Agent may petition any court of competent jurisdiction to name a successor escrow agent
or may interplead the Investor Funds with such court, whereupon the Escrow Agent’s duties hereunder shall terminate. 
 20. References
to Escrow Agent. Other than the Offering Document and any amendments or supplements thereto, no printed or other matter in any language (including, without limitation, notices, reports and promotional material) which mentions the Escrow
Agent’s name or the rights, powers, or duties of the Escrow Agent shall be issued by the Company or the Dealer Manager, or on the Company’s or the Dealer Manager’s behalf, unless the Escrow Agent shall first have given its specific
written consent thereto. Notwithstanding the foregoing, any amendment or supplement to the Offering Document (including the subscription agreement and exhibits thereto) that revises, alters, modifies, changes or adds to the description of the
Escrow Agent or its rights, powers or duties hereunder shall not be issued by the Company or the Dealer Manager, or on the Company’s or Dealer Manager’s behalf, unless the Escrow Agent has first given specific written consent thereto.

 IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to be executed the date and year first set forth above.

  

			
	 PHILLIPS EDISON – ARC
 SHOPPING CENTRE REIT INC.

		
	By:	 	 
		 	Name: John Bessey
		 	Title:   President

  

			
	REALTY CAPITAL SECURITIES, LLC
		
	By:	 	 
		 	Name: Nicholas S. Schorsch
		 	Title:   Chief Executive Officer

  

			
	 WELLS FARGO BANK, NATIONAL
 ASSOCIATION, as Escrow Agent

		
	By:	 	 
		 	Name:
		 	Title:

  

 9 

 Exhibit A 
 Copy of Offering Document 
  

 A-1 

 Exhibit B 
 List of Investors 
 Pursuant to the Escrow Agreement
dated                     , 2010, by and between Phillips Edison – ARC Shopping Center REIT Inc., (the “Company”), and
Wells Fargo Bank, National Association (the “Escrow Agent”), the Company hereby certifies that the following Investors have paid money for the purchase of shares of the Company’s common stock, par value $0.01, and the money has
been deposited with the Escrow Agent: 
  

	1.	Name of Investor 

 Address 
 Tax Identification Number 
 Amount of Securities
subscribed for 
 Amount of money paid and deposited with Escrow Agent 
 Is Investor a resident of Pennsylvania (Yes or No)? 
  

	2.	Name of Investor 

 Address 
 Tax Identification Number 
 Amount of Securities
subscribed for 
 Amount of money paid and deposited with Escrow Agent 
 Is Investor a resident of Pennsylvania (Yes or No)? 
  

			
	Company:	 	 

			
	By:	 	 

			
	Its:	 	 

			
	Date:	 	 

  

 B-1 

 Exhibit C 
 CERTIFICATE AS TO AUTHORIZED SIGNATURES 
 Account Name: 
 Account Number: 
 The specimen signatures
shown below are the specimen signatures of the individuals who have been designated as Authorized Representatives of Phillips Edison – ARC Shopping Center REIT Inc. and are authorized to initiate and approve transactions of all types for
the above-mentioned account on behalf of Phillips Edison – ARC Shopping Center REIT Inc. 
  

					
	 Name/Title
	  	 Specimen Signature
	 	  
			
	 Jeffrey S. Edison
 Chief
Executive Officer
	  	  
 Signature
	 	
			
	 John Bessey
 President
	  	  
 Signature
	 	
			
	 Richard Smith
 Chief Financial
Officer
	  	  
 Signature
	 	
			
	[Title]	  	  
 Signature
	 	
			
	[Title]	  	  
 Signature
	 	

  

 C-1 

 Exhibit D 
 GENERAL SCHEDULE OF FEES 
 to act as ESCROW AGENT for the 

Phillips Edison – ARC Shopping Center REIT Inc. Subscription Escrow up to $50,000,000 
  

				
	 Acceptance Fee:
	  	$	500

 Initial Fees as they relate to
Wells Fargo Bank acting in the capacity of Escrow Agent – includes review of the Escrow Agreement; acceptance of the Escrow appointment; setting up of Escrow Account(s) and accounting records; and coordination of receipt of funds for deposit to
the Escrow Account(s). 
 Acceptance Fee payable at time of Escrow Agreement execution. 
  

			
	 Escrow Agent Annual Administration Fee:
	  	$5,000.00 on first offering, $3,500 on subsequent
	 Pennsylvania Sub-Accounting Administration Fee:
	  	$1500

 For ordinary administrative services by
Escrow Agent – includes daily routine account management; investment transactions; cash transaction processing (including wire and check processing); monitoring claim notices pursuant to the agreement; disbursement of funds in accordance with
the agreement; and mailing of trust account statements to all applicable parties. Float credit received by the bank for receiving funds that remain uninvested are deemed part of the Paying Agent/Escrow Agent’s compensation. These fees
do not contemplate paying interest to Investors or providing 1099s which would be the responsibility of ACS. If individual 1099s, interest checks, interest accrual calculations or any individual Investor information are required additional fees will
be charged. For rejected subscriptions or a failed offering, the following fees will apply. 
 1099 Reporting $25
each 
 Interest Rate Calculations and Interest Checks/Wires $35 each 
 Returned Item Charges $35 each 
 The administrative fee is payable in advance, with the first year fee due upon opening of the account. The Annual Fee covers a full year or any part thereof, and therefore will not be prorated or refunded in the year of early
termination. These fees do not include bank activity fees associated with Desktop Deposit system. Fees for these services will be provided separately by our Treasury Management Group. 
 Wells Fargo’s bid is based on the following assumptions: 
  

	 	•	 	 Number of Escrow Accounts to be established: Two (2) 

  

	 	•	 	 Number of Deposits to Escrow Account: Electronically, approximately (10-20 per day) 

  

	 	•	 	 Number of Withdrawals from Escrow Fund: Not more than two per week. 

  

	 	•	 	 Term of Escrow: One (1) year 

  

	 	•	 	 APPOINTMENT SUBJECT TO RECEIPT OF REQUESTED DUE DILIGENCE INFORMATION AS PER THE USA PATRIOT ACT 

  

	 	•	 	 THIS PROPOSAL ASSUMES THAT BALANCES IN THE ACCOUNT WILL BE INVESTED IN MONEY MARKET DEPOSIT ACCOUNT 

  

	 	•	 	 ALL FUNDS WILL BE RECEIVED FROM OR DISTRIBUTED TO A DOMESTIC OR AN APPROVED FOREIGN ENTITY 

  

	 	•	 	 IF THE ACCOUNT(S) DOES NOT OPEN WITHIN THREE (3) MONTHS OF THE DATE SHOWN BELOW, THIS PROPOSAL WILL BE DEEMED TO BE NULL AND VOID

  

 D-1 

			
	 Out-of Pocket Expenses:
	  	At Cost

 We will charge for
out-of-pocket expenses in response to specific tasks assigned by the client or provided for in the escrow agreement. Possible expenses would be, but are not limited to, express mail and messenger charges, travel expenses to attend closing or
other meetings. There are no charges for indirect out-of- pocket expenses. 
 This fee schedule is based upon the assumptions listed
above which pertain to the responsibilities and risks involved in Wells Fargo undertaking the role of Escrow Agent. These assumptions are based on information provided to us as of the date of this fee schedule. Our fee schedule is subject
to review and acceptance of the final documents. Should any of the assumptions, duties or responsibilities change, we reserve the right to affirm, modify or rescind our fee schedule. Extraordinary services (services other than the ordinary
administration services of Escrow Agent described above) are not included in the annual administration fee and will be billed as incurred at the rates in effect from time to time. 
 Submitted on:                     , 2010 
  

 D-2 

 Exhibit E 
 Agency and Custody Account Direction 
 For Cash Balances 

Wells Fargo Bank Money Market Deposit Accounts 
 Direction to use the following Wells Fargo Bank Money Market Deposit Accounts for Cash Balances for the escrow account (the “Account”) created under the Escrow Agreement to which this Exhibit is
attached. 
 You are hereby directed to deposit, as indicated below, or as we shall direct further in writing from time to time, all cash in the
Account in the following money market deposit account of Wells Fargo Bank, National Association (“Bank”): 
 Wells
Fargo Bank Money Market Deposit Account (“MMDA”) 
 We understand that amounts on deposit in the MMDA are insured, subject to the
applicable rules and regulations of the Federal Deposit Insurance Corporation (the “FDIC”), in the basic FDIC insurance amount of $250,000 per depositor, per insured bank. This includes principal and accrued interest up to a total of
$250,000.
 We acknowledge that we have full power to direct investments in the Account. 
 We understand that we may change this direction at any time and that it shall continue in effect until revoked or modified by us by written notice to you.

  

	
	Phillips Edison Shopping Center REIT Inc.
	
	  
	Signature
	
	  
	Date

  

 E-1 

 Exhibit F 
 [Form of Notice to Pennsylvania Investors] 
 You have tendered a subscription to purchase shares
of common stock of Phillips Edison Shopping Center REIT Inc. (the “Company”). Your subscription is currently being held in escrow. The guidelines of the Pennsylvania Securities Commission do not permit the Company to accept
subscriptions from Pennsylvania residents until an aggregate of $50,000,000 of gross offering proceeds have been received by the Company. The Pennsylvania guidelines provide that until this minimum amount of offering proceeds is received by the
Company, every 120 days during the offering period Pennsylvania Investors may request that their subscription be returned. If you wish to continue your subscription in escrow until the Pennsylvania minimum subscription amount is received,
nothing further is required. 
 If you wish to terminate your subscription for the Company’s common stock and have your subscription
returned please so indicate below, sign, date, and return to the Escrow Agent, Wells Fargo Bank, National Association, at: 
 Wells Fargo Bank,
N.A. 
 45 Broadway, 14th Floor 
 New
York, NY 10006 
 Attention: Matthew Sherman 
 I hereby terminate my prior subscription to purchase shares of common stock of Phillips Edison Shopping Center REIT Inc. and request the return of my subscription funds. I certify to Phillips Edison
Shopping Center REIT Inc. that I am a resident of Pennsylvania. 
  

			
	Signature:	 	 
		
	Name:	 	 
		 	(please print)
		
	Date:	 	 

  

	
	Please send the subscription refund to:
	  
	  
	  
	

  

 F-1Second Amended and Restated Advisory Agreement

 Exhibit 10.1 
 Second Amended and Restated 
 Advisory Agreement 

between 
 Phillips Edison – ARC Shopping Center REIT Inc. 
 and 
 American Realty Capital II Advisors, LLC 
 April 9, 2010

 Table of Contents 
  

			
	 	  	Page
	 Article 1 - Definitions
	  	1
	 Article 2 - Appointment
	  	9
	 Article 3 - Duties Of The Advisor
	  	9
	 3.1 Organizational and Offering Services
	  	9
	 3.2 Acquisition Services
	  	10
	 3.3 Asset Management Services
	  	10
	 3.4 Stockholder Services
	  	14
	 3.5 Other Services
	  	14
	 Article 4 - Authority Of Advisor
	  	14
	 4.1 General
	  	14
	 4.2 Powers of the Advisor
	  	14
	 4.3 Approval by the Board
	  	14
	 4.4 Modification or Revocation of Authority of Advisor
	  	15
	 Article 5 - Bank Accounts
	  	15
	 Article 6 - Records And Financial Statements
	  	15
	 Article 7 - Limitation On Activities
	  	15
	 Article 8 - Fees
	  	16
	 8.1 Acquisition Fees
	  	16
	 8.2 Asset Management Fee
	  	17
	 8.3 Disposition Fees
	  	17
	 8.4 Financing Fee
	  	17
	 8.5 Subordinated Share of Cash Flows
	  	18
	 8.6 Subordinated Incentive Fee
	  	18
	 8.7 Other Services
	  	19
	 8.8 Changes to Fee Structure
	  	19
	 Article 9 - Expenses
	  	19
	 9.1 General
	  	19
	 9.2 Timing of and Limitations on Reimbursements
	  	21
	 Article 10 - Voting Agreement
	  	22
	 10.1 Election of Directors
	  	22
	 10.2 Other Voting of Shares
	  	23
	 Article 11 - Relationship Of Advisor And Company; Other Activities Of The Advisor
	  	23
	 11.1 Relationship
	  	23
	 11.2 Time Commitment
	  	23
	 11.3 Investment Opportunities and Allocation
	  	24
	 Article 12 - The Phillips Edison and ARC Names
	  	24
	 12.1 The American Realty Capital and ARC Names
	  	24
	 12.2 The Phillips Edison and PECO Names
	  	25
	 Article 13 - Term And Termination of the Agreement and Sub-advisory Agreement
	  	26
	 13.1 Term
	  	26
	 13.2 Termination by Either Party
	  	26

  

 i 

			
	 13.3 Payments on Termination and Survival of Certain Rights and Obligations
	  	26
	 Article 14 - Assignment
	  	29
	 14.1 Assignment of Agreement
	  	29
	 14.2 Assignment of Payments
	  	29
	 Article 15 - Indemnification And Limitation Of Liability
	  	30
	 15.1 Indemnification
	  	30
	 15.2 Limitation on Indemnification
	  	30
	 15.3 Limitation on Payment of Expenses
	  	31
	 Article 16 - Miscellaneous
	  	31
	 16.1 Notices
	  	31
	 16.2 Modification
	  	32
	 16.3 Severability
	  	32
	 16.4 Construction
	  	33
	 16.5 Entire Agreement
	  	33
	 16.6 Waiver
	  	33
	 16.7 Gender
	  	33
	 16.8 Titles Not to Affect Interpretation
	  	33
	 16.9 Third Party Beneficiary
	  	33
	 16.10 Counterparts
	  	33

  

 ii 

 Second Amended and Restated Advisory Agreement 
 This Second Amended and Restated Advisory Agreement, dated as of April 9, 2010 (this “Agreement”), is between Phillips
Edison – ARC Shopping Center REIT Inc., a Maryland corporation (the “Company”), and American Realty Capital II Advisors, LLC, a Delaware limited liability company (the “Advisor”). 
 W I T N E S S E T H 
 WHEREAS, the parties entered into the Advisory Agreement on January 11, 2010 (the “Original Agreement”); 
 Whereas, the parties entered into the Amended and Restated Advisory Agreement on March 1, 2010 (the “Amended Agreement”); 
 WHEREAS, the parties have agreed to make certain amendments and desire to amend and restate the Amended Agreement; 
 WHEREAS, the Company desires to avail itself of the knowledge, experience, sources of information, advice, assistance and certain facilities
available to the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of, the Board of Directors of the Company, all as provided herein; and 
 WHEREAS, the Advisor is willing to undertake to render such services, subject to the supervision of the Board of Directors of the Company,
on the terms and subject to the conditions hereinafter set forth. 
 NOW, THEREFORE, in consideration of the foregoing and of
the mutual covenants and agreements contained herein, the parties hereto agree as follows: 
 Article 1 
 Definitions 
 The following defined terms used in this Agreement shall have the meanings specified below: 
 “Acquisition
Expenses” means any and all expenses, excluding the Acquisition Fees, incurred by the Company, the Advisor or any Affiliate of either in connection with the consideration, investigation, selection, evaluation, acquisition or development of
any Property, Loan or other Permitted Investment, whether or not acquired or originated, as applicable, including legal fees and expenses, travel and communications expenses, brokerage fees, costs of appraisals, nonrefundable option payments on
Properties, Loans or other Permitted Investments not acquired, accounting fees and expenses, title insurance premiums and the costs of performing due diligence. 
  

 1 

 “Acquisition Fees” means the fee payable to the Advisor pursuant to
Section 8.1 plus all other fees and commissions, excluding Acquisition Expenses, paid by any Person to any Person in connection with making or investing in any Property or other Permitted Investment or the purchase, development or construction
of any Property by the Company. Included in the computation thereof shall be any real estate commission, selection fee, Development Fee, Construction Fee, nonrecurring management fee, loan fees or points or any fee of a similar nature, however
designated. Excluded in the computation thereof shall be Development Fees and Construction Fees paid to Persons not Affiliated with the Advisor or Sub-advisor in connection with the actual development and construction of a Property. 
 “Advisor” has the meaning set forth at the head of this Agreement. 
 “Affiliate” means, with respect to any Person, any of the following: (i) any other Person directly or indirectly
controlling, controlled by, or under common control with such Person; (ii) any other Person directly or indirectly owning, controlling, or holding with the power to vote 10% or more of the outstanding voting securities of such Person;
(iii) any legal entity for which such Person acts as an executive officer, director, trustee, or general partner; (iv) any other Person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled, or
held, with power to vote, by such Person; and (v) any executive officer, director, trustee, or general partner of such Person. An entity shall not be deemed to control or be under common control with an Advisor- or Sub-advisor-sponsored program
unless (A) the entity owns 10% or more of the voting equity interests of such program or (B) a majority of the board of directors (or equivalent governing body) of such program is composed of Affiliates of the entity. The term
“Affiliated” shall have a meaning correlative thereto. For the avoidance of doubt, none of the Company, the Sub-advisor, any subsidiary of the Company, any subsidiary of the Sub-advisor and any other Person controlled by,
controlling or under common control with Phillips Edison & Company shall be an Affiliate of the Advisor. 
 “Appraised Value” means the value according to an appraisal made by an Independent Appraiser. 
 “Articles of Incorporation” means the Articles of Incorporation of the Company under Title 2 of the Corporations and Associations Article of the Annotated Code of Maryland, as amended from time to time. 
 “Asset Management Fee” shall have the meaning set forth in Section 8.2. 
 “Average Invested Assets” means, for a specified period, the average of the aggregate book value of the assets of the
Company invested, directly or indirectly, in Properties, Loans and other Permitted Investments secured by real estate before reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the average of such values at
the end of each month during such specified period. 
  

 2 

 “Board of Directors” or “Board” means the persons holding
such office, as of any particular time, under the Articles of Incorporation of the Company, whether they be the Directors named therein or additional or successor Directors. 
 “Board Observer” shall have the meaning set forth in Section 10.1. 
 “Bylaws” means the bylaws of the Company, as amended from time to time. 
 “Cash from Financings” means the net cash proceeds realized by the Company from the financing of Properties, Loans or other
Permitted Investments or from the refinancing of any Company indebtedness (after deduction of all expenses incurred in connection therewith). 
 “Cash from Sales and Settlements” means the net cash proceeds realized by the Company (i) from the sale, exchange or other disposition of any of its assets or any portion thereof
after deduction of all expenses incurred in connection therewith; (ii) from the prepayment, maturity, workout or other settlement of any Loan or Permitted Investment or portion thereof after deduction of all expenses incurred in connection
therewith; and (iii) from regular principal payments on any Loan (or to the extent applicable, any Permitted Investment). In the case of a transaction described in clause (i) (C) of the definition of “Sale” and clause (i)(B)
of the definition of “Settlement,” Cash from Sales and Settlements means the proceeds of any such transaction actually distributed to the Company from the Joint Venture or partnership. Cash from Sales and Settlements shall not include Cash
from Financings. 
 “Cash from Sales, Settlements and Financings” means the total sum of Cash from Sales and
Settlements and Cash from Financings. 
 “Code” means the Internal Revenue Code of 1986, as amended from time
to time, or any successor statute thereto. Reference to any provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations
as in effect from time to time. 
 “Company” means Phillips Edison – ARC Shopping Center REIT Inc., a
corporation organized under the laws of the State of Maryland. 
 “Competitive Real Estate Commission” means a
real estate or brokerage commission for the purchase or sale of property that is reasonable, customary, and competitive in light of the size, type, and location of the property. 
 “Conflicts Committee” shall have the meaning set forth in the Company’s Articles of Incorporation. 
 “Construction Fee” means a fee or other remuneration for acting as general contractor and/or construction manager to
construct improvements, supervise and coordinate projects or to provide major repairs or rehabilitation on a Property. 
  

 3 

 “Contract Sales Price” means the total consideration received by the
Company for the sale of a Property, Loan or other Permitted Investment. 
 “Cost of Loans and other Permitted
Investments” means the sum of the cost of all Loans and Permitted Investments held by the Company, calculated each month on an ongoing basis, and calculated as follows for each Loan or Permitted Investment: the lesser of (i) the amount
actually paid or allocated to acquire or fund the Loan or Permitted Investment (inclusive of expenses related thereto and the amount of any debt associated with or used to acquire or fund such Loan or Permitted Investment) and (ii) the
outstanding principal amount of such Loan or Permitted Investment, as of the time of calculation. With respect to any Loan or Permitted Investment held by the Company through a Joint Venture or partnership of which it is, directly or indirectly, a
co-venturer, such amount shall be the Company’s proportionate share thereof. 
 “Cost of Real Estate
Investments” means the sum of (i) with respect to Properties wholly owned, directly or indirectly, by the Company, the amount actually paid or allocated to the purchase, development, construction or improvement of Properties, inclusive
of expenses related thereto, plus the amount of any outstanding debt attributable to such Properties and (ii) in the case of Properties owned by any Joint Venture or partnership in which the Company or the Partnership is, directly or
indirectly, a co-venturer or partner, the portion of the amount actually paid or allocated to the purchase, development, construction or improvement of Properties, inclusive of expenses related thereto, plus the amount of any outstanding debt
associated with such Properties that is attributable to the Company’s investment in the Joint Venture or partnership. 
 “Dealer Manager” means (i) Realty Capital Securities, LLC, a Delaware limited liability company, or (ii) any successor dealer manager to the Company. 
 “Development Fee” means a fee for the packaging of a Property, including negotiating and approving plans, and undertaking
to assist in obtaining zoning and necessary variances and necessary financing for the Property, either initially or at a later date. 
 “Director” means a member of the Board of Directors of the Company. 
 “Disposition
Fee” shall have the meaning set forth in Section 8.3. 
 “Distributions” means any distributions
of money or other property by the Company to owners of Shares, including distributions that may constitute a return of capital for federal income tax purposes. 
 “Financing Fee” shall have the meaning set forth in Section 8.4. 
 “GAAP” means accounting principles generally accepted in the United States. 
 “Gross
Proceeds” means the aggregate purchase price of all Shares sold for the account of the Company through an Offering, without deduction for Organization and Offering Expenses. 
  

 4 

 “include,” “included,” “including” and
“such as” are to be construed as if followed by the phrase “without limitation.” 
 “Independent Appraiser” means a person with no material current or prior business or personal relationship with the Advisor or the Directors, who is engaged to a substantial extent in the business of rendering opinions
regarding the value of assets of the type held by the Company, and who is a qualified appraiser of real estate as determined by the Board. Membership in a nationally recognized appraisal society such as the American Institute of Real Estate
Appraisers (“M.A.I.”) or the Society of Real Estate Appraisers (“S.R.E.A.”) shall be conclusive evidence of such qualification. 
 “Initial Public Offering” means the initial public offering of Shares registered on the Registration Statement pursuant to the Securities Act of 1933, as amended. 
 “Invested Capital” means the amount calculated by multiplying the total number of Shares purchased by Stockholders by the
issue price, reduced by any amounts paid by the Company to repurchase Shares pursuant to the Company’s plan for redemption of Shares. 
 “Joint Venture” means any joint venture, limited liability company or other Affiliate of the Company that owns, in whole or in part, on behalf of the Company any Properties, Loans or
other Permitted Investments. 
 “Listed” or “Listing” shall have the meaning set forth in the
Company’s Articles of Incorporation. 
 “Loans” means mortgage loans and other types of debt financing
investments made by the Company or the Partnership, either directly or indirectly, including through ownership interests in a Joint Venture or partnership, and including mezzanine loans, B-notes, bridge loans, convertible mortgages, wraparound
mortgage loans, construction mortgage loans, loans on leasehold interests, and participations in such loans. 
 “Management Fee Base” means, for a specified period, the sum of the Cost of Real Estate Investments and the Cost of Loans and other Permitted Investments computed by taking the average of such values at
the end of each month during such specified period. 
 “NASAA Guidelines” means the NASAA Statement of
Policy Regarding Real Estate Investment Trusts as in effect on the date hereof. 
 “Net Income” means, for any
period, the total revenues of the Company applicable to such period, less the total expenses applicable to such period excluding additions to reserves for depreciation, bad debts or other similar non-cash reserves; provided, however, that Net Income
for purposes of calculating total allowable Operating Expenses shall exclude the gain from the sale of the Company’s assets. 
 “Observer Period” shall have the meaning set forth in Section 10.1. 
  

 5 

 “Offering” means any offering of Shares that is registered with the SEC
pursuant to the Securities Act of 1933, as amended, excluding Shares offered under any employee benefit plan. 
 “Operating Cash Flow” means Operating Revenue Cash Flows minus the sum of (i) Operating Expenses, (ii) all principal and interest payments on indebtedness and other sums paid to lenders, (iii) the expenses of
raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution,
transfer, registration and Listing of the Shares, (iv) taxes, (v) incentive fees paid in compliance with Section IV.F. of the NASAA Guidelines and (vi) Acquisition Fees, Acquisition Expenses, real estate commissions on resale of
property, and other expenses connected with the acquisition, disposition, and ownership of real estate interests, loans or other property (other than commissions on the sale of assets other than real property), such as the costs of foreclosure,
insurance premiums, legal services, maintenance, repair and improvement of property. 
 “Operating
Expenses” means all costs and expenses incurred by the Company, as determined under GAAP, that in any way are related to the operation of the Company or to Company business, including fees paid to the Advisor, but excluding
(i) the expenses of raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees, printing and other such expenses and taxes incurred in connection with the
issuance, distribution, transfer, registration and Listing of the Shares, (ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization, bad loan reserves, impairments of value, and mark-to-market
losses, (v) incentive fees paid in compliance with Section IV.F. of the NASAA Guidelines and (vi) Acquisition Fees, Acquisition Expenses, real estate commissions on resale of property, property management fees, and other expenses connected
with the acquisition, disposition, and ownership of real estate interests, loans or other property (other than commissions on the sale of assets other than real property), such as the costs of foreclosure, insurance premiums, legal services,
maintenance, repair and improvement of property.  
 “Operating Revenue Cash Flows” means the
Company’s cash flow from ownership and/or operation of (i) Properties, (ii) Loans, (iii) Permitted Investments, (iv) short-term investments, and (v) interests in Properties, Loans and Permitted Investments owned by any
Joint Venture or any partnership in which the Company or the Partnership is, directly or indirectly, a co-venturer or partner. 
 “Organization and Offering Expenses” means all expenses incurred by or on behalf of the Company in connection with or in preparing the Company for registration of and subsequently offering and distributing its Shares to the
public, whether incurred before, on or after the date of this Agreement, which may include total underwriting and brokerage discounts and commissions (including fees of the underwriters’ attorneys); any expense allowance granted by the Company
to the underwriter or any reimbursement of expenses of the underwriter by the Company; expenses for printing, engraving and mailing; compensation of employees while engaged in sales activity; charges of transfer agents, registrars, trustees, escrow
holders, depositaries and experts; and expenses of qualification of the sale of the securities under Federal and state laws, including taxes and fees, accountants’ and attorneys’ fees. 
  

 6 

 “Other Liquidity Event” has the meaning set forth in Section 13.3(F).

 “Partnership” means Phillips Edison – ARC Shopping Center Operating Partnership, L.P., a Delaware
limited partnership formed to own and operate Properties, Loans and other Permitted Investments on behalf of the Company. 
 “Permitted Investments” means all investments (other than Properties and Loans) in which the Company acquires an interest, either directly or indirectly, including through ownership interests in a Joint Venture or
partnership, pursuant to its Articles of Incorporation, Bylaws and the investment objectives and policies adopted by the Board from time to time, other than short-term investments acquired for purposes of cash management. 
 “Person” or “person” means an individual, corporation, partnership, estate, trust (including a trust
qualified under Section 401(a) or 501(c) (17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the
meaning of Section 509(a) of the Code, joint stock company or other entity, or any government or any agency or political subdivision thereof, and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities
Exchange Act of 1934, as amended. 
 “Property” or “Properties” means any real property or
properties transferred or conveyed to the Company, the Partnership, or any subsidiary of the Company or the Partnership, either directly or indirectly, and/or any real property or properties transferred or conveyed to a Joint Venture or partnership
in which the Company is, directly or indirectly, a co-venturer or partner. 
 “Property Manager” means an
entity that has been retained to perform and carry out at one or more of the Properties property-management services, excluding Persons retained or hired to perform facility management or other services or tasks at a particular Property, the costs
for which are passed through to and ultimately paid by the tenant at such Property. 
 “Registration Statement”
means the registration statement filed by the Company with the SEC pursuant to the Securities Act of 1933, as amended, on Form S-11, as amended from time to time, in connection with the Initial Public Offering. 
 “REIT” means a “real estate investment trust” under Sections 856 through 860 of the Code. 
 “Sale” or “Sales” means (i) any transaction or series of transactions whereby: (A) the Company
or the Partnership sells, grants, transfers, conveys, or relinquishes its direct or indirect ownership of any Property, Loan or other Permitted Investment or portion thereof, including the transfer of any Property that is the subject of a ground

  

 7 

 
lease, and including any event with respect to any Property, Loan or other Permitted Investment that gives rise to a significant amount of insurance proceeds or condemnation awards; (B) the
Company or the Partnership sells, grants, transfers, conveys, or relinquishes its ownership of all or substantially all of the direct or indirect interest of the Company or the Partnership in any Joint Venture or partnership in which it is, directly
or indirectly, a co-venturer or partner; or (C) any Joint Venture or partnership (in which the Company or the Partnership is, directly or indirectly, a co-venturer or partner) sells, grants, transfers, conveys, or relinquishes its direct or
indirect ownership of any Property, Loan or other Permitted Investment or portion thereof, including any event with respect to any Property, Loan or other Permitted Investment that gives rise to insurance claims or condemnation awards, but
(ii) not including any transaction or series of transactions specified in clause (i) (A), (i) (B), or (i) (C) above in which the proceeds of such transaction or series of transactions are reinvested in one or more
Properties, Loans or other Permitted Investments within 180 days thereafter. 
 “SEC” means the United States
Securities and Exchange Commission. 
 “Settlement” means (i) the payment of principal, prepayment,
maturity, workout or other settlement of any Loan or other Permitted Investment or portion thereof owned, directly or indirectly, by (A) the Company or the Partnership or (B) any Joint Venture or any partnership in which the Company or the
Partnership is, directly or indirectly, a partner, but (ii) not including any transaction or series of transactions specified in clause (i) (A) or (i) (B) above in which the proceeds of such prepayment, maturity, workout or
other settlement are reinvested in one or more Properties, Loans or other Permitted Investments within 180 days thereafter. 
 “Shares” means the shares of common stock of the Company, par value $.01 per share. 
 “Stockholders” means the registered holders of the Shares. 
 “Stockholders’ 7%
Return” means, as of any date, an aggregate amount equal to a 7% cumulative, non-compounded, annual return on Invested Capital (calculated like simple interest on a daily basis based on a three hundred sixty-five day year). For purposes of
calculating the Stockholders’ 7% Return, Invested Capital shall be determined for each day during the period for which the Stockholders’ 7% Return is being calculated and shall be calculated net of (1) Distributions of Operating Cash
Flow to the extent such Distributions of Operating Cash Flow provide a cumulative, non-compounded, annual return in excess of 7%, as such amounts are computed on a daily basis based on a three hundred sixty-five day year and (2) Distributions
of Cash from Sales, Settlements and Financings, except to the extent such Distributions would be required to supplement Distributions of Operating Cash Flow in order to achieve a cumulative, non-compounded, annual return of 7%, as such amounts are
computed on a daily basis based on a three hundred sixty-five day year. 
  “Sub-advisor” means
(i) Phillips Edison & Company NTR LLC (formerly known as Phillips Edison & Company SubAdvisor LLC), a Delaware limited liability company, or (ii) any successor sub-advisor to the Advisor. 
   

 8 

 “Sub-advisory Agreement” means that Sub-advisory Agreement between the
Advisor and the Sub-advisor, dated as of the date hereof. 
 “Subordinated Incentive Fee” means the fee payable
to the Advisor under certain circumstances if the Shares are Listed, as calculated in Section 8.6. 
 “Subordinated
Performance Fee Due Upon Termination” means the fee payable to the Advisor or its assignees under certain circumstances upon termination of this Agreement, as calculated in Section 13.3. 
 “Subordinated Share of Cash Flows” means any amount payable to the Advisor or its assignees pursuant to Section 8.5.

 “Termination” means the termination of this Agreement in accordance with Articles 13 hereof. 
 “Termination Date” means the date of termination of the Agreement determined in accordance with Article 13 hereof.

 “2%/25% Guidelines” has the meaning set forth in Section 9.2(C). 
 Article 2 
 Appointment 
 The Company hereby appoints the Advisor to serve as its advisor and asset manager on the terms
and subject to the conditions set forth in this Agreement, and the Advisor hereby accepts such appointment. 
 Article 3 

 Duties Of The Advisor 
 The Advisor is responsible for managing, operating, directing and supervising the operations and administration of the Company and its assets. The Advisor undertakes to use its reasonable best efforts to
present to the Company potential investment opportunities and to provide the Company with a continuing and suitable investment program consistent with the investment objectives and policies of the Company as determined and adopted from time to time
by the Board. Subject to the limitations set forth in this Agreement, including Article 4 hereof, consistent with the provisions of the Articles of Incorporation and Bylaws and the continuing and exclusive authority of the Board over the supervision
of the Company, the Advisor shall, either directly or by engaging an Affiliate, the Sub-advisor or third party, perform the following duties: 
  

	3.1	Organizational and Offering Services. The Advisor shall perform all services related to the organization of the Company or any Offering or private sale of the
Company’s securities, other than services that (i) are to be performed by the Dealer Manager, (ii) the Company elects to perform directly or (iii) would require the Advisor to register as a broker-dealer with the SEC or any
state. 

  

 9 

	3.2	Acquisition Services. The Advisor shall: 

  

	 	(A)	Serve as the Company’s investment and financial advisor and provide relevant market research and economic and statistical data in connection with the
Company’s assets and investment objectives and policies; 

  

	 	(B)	Subject to Article 4 hereof and the investment objectives and policies of the Company: (a) locate, analyze and select potential investments; (b) structure and
negotiate the terms and conditions of transactions pursuant to which investments in Properties, Loans and other Permitted Investments will be made; (c) acquire, originate and dispose of Properties, Loans and other Permitted Investments on
behalf of the Company (including through Joint Ventures); (d) arrange for financing and refinancing and make other changes in the asset or capital structure of investments in Properties, Loans and other Permitted Investments; (e) select
Joint Venture partners and structure corresponding agreements; and (f) enter into leases, service contracts and other agreements for Properties, Loans and other Permitted Investments; 

  

	 	(C)	Perform due diligence on prospective investments and create due diligence reports summarizing the results of such work; 

  

	 	(D)	Prepare reports regarding prospective investments that include recommendations and supporting documentation necessary for the Directors to evaluate the proposed
investments; 

  

	 	(E)	Obtain reports (which may be prepared by the Advisor, the Sub-advisor or their Affiliates), where appropriate, concerning the value of contemplated investments of the
Company; 

  

	 	(F)	Deliver to or maintain on behalf of the Company copies of all appraisals obtained in connection with the Company’s investments; and 

  

	 	(G)	Negotiate and execute approved investments and other transactions, including Settlements of Loans and other Permitted Investments. 

  

	3.3	Asset Management Services. The Advisor shall (or shall retain other Persons to (but shall remain responsible to the Company)): 

  

	 	(A)	Real Estate and Related Services: 

  

	 	(1)	 Investigate, select and, on behalf of the Company, engage and conduct business with (including enter contracts with) and supervise the performance of
such Persons as the Advisor deems necessary to the proper performance of its obligations as set forth

  

 10 

	 	 
in this Agreement, including consultants, accountants, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for
collection, insurers, insurance agents, banks, builders, developers, property owners, security investment advisors, mortgagors, the registrar and the transfer agent, construction companies, Property Managers and any and all Persons acting in any
other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services; 

  

	 	(2)	Negotiate and service the Company’s debt facilities and other financings and negotiate on behalf of the Company with banks or other lenders for debt facilities to
be made to the Company or with investment banking firms and broker-dealers or negotiate private sales of Shares or obtain debt facilities for the Company, but in no event in such a manner so that the Advisor shall be acting as a broker-dealer or
underwriter; provided, however, that any fees and costs payable to third parties incurred by the Advisor in connection with the foregoing shall be the responsibility of the Company; 

  

	 	(3)	Monitor applicable markets and obtain reports (which may be prepared by the Advisor, Sub-advisor or their Affiliates) where appropriate, concerning the value of
investments of the Company; 

  

	 	(4)	Monitor and evaluate the performance of each asset of the Company and the Company’s overall portfolio of assets, provide daily management services to the Company
and perform and supervise the various management and operational functions related to the Company’s investments; 

  

	 	(5)	Formulate and oversee the implementation of strategies for the administration, promotion, management, operation, maintenance, investment, improvement, financing and
refinancing, marketing, leasing and disposition of Properties, Loans and other Permitted Investments on an overall portfolio basis; 

  

	 	(6)	Consult with the Company’s officers and the Board and assist the Board in the formulation and implementation of the Company’s financial policies, and, as
necessary, furnish the Board with advice and recommendations with respect to the making of investments consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken by the
Company; 

  

	 	(7)	Oversee the performance by the Property Managers of their duties, including collection and proper deposits of rental payments and payment of Property expenses and
maintenance; 

  

 11 

	 	(8)	Conduct periodic on-site property visits to some or all (as the Advisor or its designee deems reasonably necessary) of the Properties to inspect the physical condition
of the Properties and to evaluate the performance of the Property Managers; 

  

	 	(9)	Review, analyze and comment upon the operating budgets, capital budgets and leasing plans prepared and submitted by each Property Manager and aggregate these property
budgets into the Company’s overall budget; 

  

	 	(10)	Coordinate and manage relationships between the Company and any co-venturers or partners; and 

  

	 	(11)	Consult with the Company’s officers and the Board and provide assistance with the evaluation and approval of potential asset dispositions, sales and refinancings.

  

	 	(B)	Accounting and Other Administrative Services: 

  

	 	(1)	Provide the day-to-day management of the Company and perform and supervise the various administrative functions reasonably necessary for the management of the Company;

  

	 	(2)	From time to time, or at any time reasonably requested by the Board, make reports to the Board on the Advisor’s performance of services to the Company under this
Agreement; 

  

	 	(3)	Make reports to the Conflicts Committee each quarter of the investments that have been made by other programs sponsored by the Advisor, the Sub-advisor or any of their
Affiliates, as well as any investments that have been made by the Advisor, Sub-advisor or any of their Affiliates directly; 

  

	 	(4)	Provide or arrange for any administrative services and items, legal and other services, office space, office furnishings, personnel and other overhead items necessary
and incidental to the Company’s business and operations; 

  

	 	(5)	Provide financial and operational planning services; 

  

	 	(6)	Maintain accounting and other record-keeping functions at the Company and investment levels, including information concerning the activities of the Company as shall be
required to prepare and to file all periodic financial reports, tax returns and any other information required to be filed with the SEC, the Internal Revenue Service and any other regulatory agency; 

  

 12 

	 	(7)	Maintain and preserve all appropriate books and records of the Company; 

  

	 	(8)	Provide tax and compliance services and coordinate with appropriate third parties, including the Company’s independent auditors and other consultants, on related
tax matters; 

  

	 	(9)	Provide the Company with all necessary cash management services; 

  

	 	(10)	Deliver to, or maintain on behalf of, the Company copies of all appraisals obtained in connection with Properties, Loans and Permitted Investments;

  

	 	(11)	Manage and coordinate with the transfer agent the monthly dividend process and payments to Stockholders; 

  

	 	(12)	Consult with the Company’s officers and the Board and assist the Board in evaluating and obtaining adequate insurance coverage based upon risk management
determinations; 

  

	 	(13)	Consult with the Company’s officers and the Board and assist the Board in evaluating various liquidity events when appropriate; 

  

	 	(14)	Provide the Company’s officers and the Board with timely updates related to the overall regulatory environment affecting the Company, as well as managing
compliance with such matters, including compliance with the Sarbanes-Oxley Act of 2002; 

  

	 	(15)	Consult with the Company’s officers and the Board relating to the corporate governance structure and appropriate policies and procedures related thereto;

  

	 	(16)	Perform all reporting, record keeping, internal controls and similar matters in a manner to allow the Company to comply with applicable law, including federal and state
securities laws and the Sarbanes-Oxley Act of 2002; 

  

	 	(17)	Notify the Board of all proposed material transactions before they are completed; and 

  

	 	(18)	Do all things necessary to assure its ability to render the services described in this Agreement. 

  

 13 

	3.4	Stockholder Services. The Advisor shall (or shall retain other Persons to (but shall remain responsible to the Company)): 

  

	 	(A)	Manage services for and communications with Stockholders, including answering phone calls, preparing and sending written and electronic reports and other
communications; 

  

	 	(B)	Oversee the performance of the transfer agent and registrar; 

  

	 	(C)	Establish technology infrastructure to assist in providing Stockholder support and service; and 

  

	 	(D)	Consistent with Section 3.1, perform the various subscription processing services reasonably necessary for the admission of new Stockholders.

  

	3.5	Other Services. Except as provided in Article 7, the Advisor shall perform any other services reasonably requested by the Company (acting through the Conflicts
Committee). 

 Article 4 
 Authority of Advisor 
  

	4.1	General. All rights and powers to manage and control the day-to-day business and affairs of the Company shall be vested in the Advisor. The Advisor shall have
the power to delegate all or any part of its rights and powers to manage and control the business and affairs of the Company to such officers, employees, Affiliates, agents and representatives of the Advisor or the Company or to the Sub-advisor as
it may deem appropriate. Any authority delegated by the Advisor to any other Person shall be subject to the limitations on the rights and powers of the Advisor specifically set forth in this Agreement or the Articles of Incorporation.

  

	4.2	Powers of the Advisor. Subject to the express limitations set forth in this Agreement, to the continuing and exclusive authority of the Board over the
supervision of the Company, and to the right of the Advisor to delegate its responsibilities pursuant to Section 4.1, the power to direct the management, operation and policies of the Company shall be vested in the Advisor, which shall have the
power by itself and shall be authorized and empowered on behalf and in the name of the Company to carry out any and all of the objectives and purposes of the Company and to perform all acts and enter into and perform all contracts and other
undertakings that it may in its sole discretion deem necessary, advisable or incidental thereto to perform its obligations under this Agreement. 

  

	4.3	Approval by the Board. Notwithstanding the foregoing, the Advisor may not take any action on behalf of the Company without the prior approval of the Board or
duly authorized committees thereof if the Articles of Incorporation or Maryland General Corporation Law require the prior approval of the Board. The Advisor will deliver to the Board all documents required by it to evaluate a proposed investment
(and any related financing). 

  

 14 

	4.4	Modification or Revocation of Authority of Advisor. The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the authority or
approvals set forth in Article 3 and this Article 4 hereof; provided, however, that such modification or revocation shall be effective upon receipt by the Advisor and shall not be applicable to investment transactions to which the Advisor has
committed the Company prior to the date of receipt by the Advisor of such notification. 

 Article 5

 Bank Accounts 
 The Advisor may establish and maintain one or more bank accounts in its own name for the account of the Company or in the name of the Company and may collect and deposit into any such account or accounts,
and disburse from any such account or accounts, any money on behalf of the Company, under such terms and conditions as the Board may approve; provided, that no funds shall be commingled with the funds of the Advisor. The Advisor shall upon request
render appropriate accountings of such collections and payments to the Board and the independent auditors of the Company. 
 Article 6 
 Records And Financial Statements 
 The Advisor, in the conduct of its responsibilities to the Company, shall maintain adequate and separate books and records for the
Company’s operations in accordance with GAAP, which shall be supported by sufficient documentation to ascertain that such books and records are properly and accurately recorded. Such books and records shall be the property of the Company and
shall be available for inspection by the Board and by counsel, auditors and other authorized agents of the Company, at any time or from time to time during normal business hours. Such books and records shall include all information necessary to
calculate and audit the fees or reimbursements paid under this Agreement. The Advisor shall utilize procedures to attempt to ensure such control over accounting and financial transactions as is reasonably required to protect the Company’s
assets from theft, error or fraudulent activity. All financial statements that the Advisor delivers to the Company shall be prepared on an accrual basis in accordance with GAAP, except for special financial reports that by their nature require a
deviation from GAAP. The Advisor shall liaise with the Company’s officers and independent auditors and shall provide such officers and auditors with the reports and other information that the Company so requests. 
 Article 7 
 Limitation On Activities 
 Notwithstanding any provision in this Agreement to the contrary, the Advisor shall
not take any action that, in its sole judgment made in good faith, would (i) adversely affect the ability of the Company to qualify or continue to qualify as a REIT under the

  

 15 

 
Code (unless the Board has determined that REIT qualification is not in the best interests of the Company and its Stockholders), (ii) subject the Company to regulation under the Investment
Company Act of 1940, as amended, (iii) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company, its Shares or its other securities, (iv) require the Advisor to
register as a broker-dealer with the SEC or any state, or (v) violate the Articles of Incorporation or Bylaws. In the event an action that would violate (i) through (v) of the preceding sentence but such action has been ordered by the
Board, the Advisor shall notify the Board of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the Board. In such event, the
Advisor shall have no liability for acting in accordance with the specific instructions of the Board so given. 
 Article 8

 Fees 
  

	8.1	 Acquisition Fees. As compensation for the investigation, selection, sourcing and acquisition or origination (by purchase, investment or
exchange) of Properties, Loans and other Permitted Investments, the Company shall pay an Acquisition Fee to the Advisor or its assignees for each such investment (whether an acquisition or origination). With respect to the acquisition or origination
of a Property, Loan or other Permitted Investment to be owned, directly or indirectly, by the Company or the Partnership, the Acquisition Fee payable to the Advisor or its assignee shall equal 1.0% of the sum of the amount actually paid or allocated
to fund the acquisition, origination, development, construction or improvement of the Property, Loan or other Permitted Investment, inclusive of the Acquisition Expenses associated with such Property, Loan or other Permitted Investment and the
amount of any debt associated with, or used to fund the investment in, such Property, Loan or other Permitted Investment. Acquisition Fees will also include any amounts incurred or reserved for capital expenditures that will be used to provide funds
for capital improvements and repairs applied to any real property investment acquired where the Company plans to add value. With respect to the acquisition or origination of a Property, Loan or other Permitted Investment through any Joint Venture or
any partnership in which the Company or the Partnership is, directly or indirectly, a co-venturer or partner, the Acquisition Fee payable to the Advisor or its assignee shall equal 1.0% of the portion that is attributable to the Company’s or
the Partnership’s direct or indirect investment in such Joint Venture or partnership of the amount actually paid or allocated to fund the acquisition, origination, development, construction or improvement of the Property, Loan or other
Permitted Investment, inclusive of the Acquisition Expenses associated with such Property, Loan or other Permitted Investment, plus the amount of any debt associated with, or used to fund the investment in, such Property, Loan or other Permitted
Investment. Notwithstanding anything herein to the contrary, the payment of Acquisition Fees by the Company shall be subject to the limitations on Acquisition Fees contained in the Company’s Charter. The Advisor shall submit an invoice to the
Company following the closing or closings

  

 16 

	 	 
of each acquisition or origination, accompanied by a computation of the Acquisition Fee. The Acquisition Fee payable to the Advisor or its assignees shall be paid at the closing of the
transaction upon receipt of the invoice by the Company. 

  

	8.2	Asset Management Fee. The Company shall pay the Advisor or its assignees as compensation for the services described in Section 3.3 hereof a quarterly fee
(the “Asset Management Fee”) in an amount equal to 0.25% of the Management Fee Base. The Asset Management Fee is payable quarterly in advance, on January 1, March 1, July 1 and October 1, in the amount
of 0.25% of the Management Fee Base for the preceding fiscal quarter. The Advisor shall submit an invoice to the Company, accompanied by a computation of the Asset Management Fee for the applicable period. 

  

	8.3	Disposition Fees. If the Advisor or Sub-advisor or any of their Affiliates provides a substantial amount of services (as determined by the Conflicts Committee)
in connection with a Sale, then the Advisor or its assignees shall receive a fee at the closing (the “Disposition Fee”) equal to 2.0% of the Contract Sales Price; provided, however, that the payment of any Disposition Fees by the
Company shall be subject to the limitations contained in the Company’s Articles of Incorporation. Any Disposition Fee payable under this Section 8.3 may be paid in addition to commissions paid to non-Affiliates, provided that the total
commissions (including such Disposition Fee) paid to all Persons by the Company for each Sale shall not exceed an amount equal to the lesser of (i) 6.0% of the aggregate Contract Sales Price of each applicable Property, Loan or other Permitted
Investment and (ii) the Competitive Real Estate Commission for each applicable Property, Loan or other Permitted Investment. Substantial assistance in connection with the Sale of a Property includes the preparation of an investment package for
the Property (including a new investment analysis, rent rolls, tenant information regarding credit, a property title report, an environmental report, a list of prospective buyers, a structural report and exhibits) or such other substantial services
performed by the Advisor or Sub-advisor or any of their Affiliates in connection with a Sale. The Disposition Fee payable to the Advisor or its assignees shall be paid at the closing of the transaction upon receipt of the invoice by the Company.

  

	8.4	 Financing Fee. In the event of any debt financing obtained by or for the Company, the Company will pay to the Advisor or its assignees upon the
closing of such debt financing a fee (a “Financing Fee”) equal to (i) 0.75% of the amount available under the financing for financings at the Company, Partnership, or any direct or indirect subsidiary level and (ii) 0.75%
of the portion that is attributable to the Company’s or the Partnership’s direct or indirect investment in a Joint Venture or partnership in which the Company or the Partnership is, directly or indirectly, a co-venturer or partner. The
Financing Fee includes the reimbursement of the specified costs incurred by the Advisor (or Sub-advisor) of engaging third parties to source debt financing. Nothing herein shall prevent the Advisor or Sub-advisor from entering fee-splitting
arrangements with third parties

  

 17 

	 	 
with respect to the Financing Fee. All or any portion of the Financing Fees not taken as to any fiscal year shall be deferred without interest and may be paid in such other fiscal year as the
Advisor shall determine. 

  

	8.5	Subordinated Share of Cash Flows. The Company will pay, from time to time when available, Subordinated Share of Cash Flows to the Advisor or its assignees in an
amount equal to 15% of Operating Cash Flow and 15% of Cash from Sales, Settlements and Financings remaining after the Stockholders have received Distributions of Operating Cash Flow and of Cash from Sales, Settlements and Financings such that the
owners of all outstanding Shares have received Distributions in an aggregate amount equal to the sum of, as of such point in time: 

  

	 	(A)	the Stockholders’ 7% Return and 

  

	 	(B)	Invested Capital. 

 When
determining whether the above threshold has been met: 
  

	 	(1)	Any stock dividend shall not be included as a Distribution; and 

  

	 	(2)	Distributions paid on Shares redeemed by the Company (and thus no longer included in the determination of Invested Capital), shall not be included as a Distribution.

 Following Listing, no Subordinated Share of Cash Flows will be paid to the Advisor or its assignees. 

 

	8.6	Subordinated Incentive Fee. Upon Listing, the Advisor or its assignees shall be entitled to the Subordinated Incentive Fee in an amount equal to 15.0% of the
amount by which (i) the market value of the outstanding Shares, measured by taking the average closing price or the average of the bid and asked price, as the case may be, over a period of 30 days during which the Shares are traded, with such
period beginning 180 days after Listing (the “Market Value”), plus the total of all Distributions paid to Stockholders (excluding any stock dividends and Distributions paid on Shares that have been redeemed by the Company) from the
Company’s inception until the date that Market Value is determined, exceeds (ii) the sum of (A) 100% of Invested Capital and (B) the total Distributions required to be paid to the Stockholders as of the date Market Value is
determined in order to pay the Stockholders’ 7% Return from inception through the date Market Value is determined. The Company shall have the option to pay such fee in the form of cash, Shares, a promissory note or any combination of the
foregoing. The Subordinated Incentive Fee will be reduced by the amount of any prior payment to the Advisor or its assignees of a Subordinated Share of Cash Flows. In the event the Subordinated Incentive Fee is paid to the Advisor or its assignees
following Listing, no additional Subordinated Share of Cash Flows will be paid to the Advisor. 

  

 18 

	8.7	Other Services. Should the Board request that the Advisor or the Sub-advisor or any Affiliate or director, officer or employee of any of the foregoing render
services for the Company other than as set forth in this Agreement, such services shall be separately compensated at such rates and in such amounts as are agreed upon by the Advisor, Sub-advisor or such Affiliate or other Person, on the one hand,
and the Board, including a majority of the Conflicts Committee, on the other hand, subject to the limitations contained in the Articles of Incorporation, and shall not be deemed to be services pursuant to the terms of this Agreement.

  

	8.8	Changes to Fee Structure. In the event of Listing, the Company and the Advisor shall negotiate in good faith to establish a fee structure appropriate for a
perpetual-life entity. 

 Article 9 
 Expenses 
  

	9.1	General. In addition to the compensation paid to the Advisor pursuant to Article 8 hereof, the Company shall pay directly or reimburse the Advisor or
Sub-advisor, as the case may be, for all of the expenses paid or incurred by the Advisor, the Sub-advisor or their Affiliates on behalf of the Company or in connection with the services provided to the Company pursuant to this Agreement, including,
but not limited to: 

  

	 	(A)	All Organization and Offering Expenses; provided, however, that: 

  

	 	(1)	the Company shall not reimburse the Advisor or Sub-advisor to the extent such reimbursement would cause the total amount spent by the Company on Organization and
Offering Expenses (excluding underwriting and brokerage discounts and commissions) to exceed 1.5% of Gross Proceeds raised in an Offering as of the termination of such Offering; 

  

	 	(2)	within 60 days after the end of the month in which an Offering terminates, the Advisor shall reimburse the Company to the extent the Company incurred Organization and
Offering Expenses (excluding underwriting and brokerage discounts and commissions) exceeding 1.5% of Gross Proceeds raised in such Offering; and 

  

	 	(3)	the Company shall not reimburse the Advisor or Sub-advisor for any Organization and Offering Expenses that the Conflicts Committee determines are not fair and
commercially reasonable to the Company. 

  

	 	(B)	 Acquisition Fees and Acquisition Expenses incurred in connection with the selection and acquisition of Properties, Loans and other Permitted
Investments, including such expenses incurred related to assets pursued or

  

 19 

	 	 
considered but not ultimately acquired by the Company, provided that, notwithstanding anything herein to the contrary, the payment of Acquisition Fees and Acquisition Expenses by the Company
shall be subject to the limitations contained in the Company’s Articles of Incorporation; 

  

	 	(C)	Third-party due diligence fees of up to 0.5% of the Gross Proceeds as set forth in a detailed and itemized invoice; 

  

	 	(D)	The actual out-of-pocket cost of goods and services used by the Company and obtained from entities not Affiliated with the Advisor or Sub-advisor, including travel,
meals and lodging expenses incurred by the Advisor or Sub-advisor in performing duties associated with the acquisition or origination of Properties, Loans or other Permitted Investments; 

  

	 	(E)	Interest and other costs for borrowed money, including discounts, points and other similar fees; 

  

	 	(F)	Taxes and assessments on income or Properties, taxes as an expense of doing business and any other taxes otherwise imposed on the Company and its business, assets or
income; 

  

	 	(G)	Out-of-pocket costs associated with insurance required in connection with the business of the Company or by its officers and Directors; 

  

	 	(H)	Expenses of managing, improving, developing, operating and selling Properties, Loans and other Permitted Investments owned, directly or indirectly, by the Company, as
well as expenses of other transactions relating to such Properties, Loans and other Permitted Investments, including prepayments, maturities, workouts and other settlements of Loans and other Permitted Investments; 

  

	 	(I)	All out-of-pocket expenses in connection with payments to the Board and meetings of the Board and Stockholders; 

  

	 	(J)	All out-of-pocket expenses associated with a Listing, if applicable, or with the issuance and distribution of Shares, such as selling commissions and fees, advertising
expenses, taxes, legal and accounting fees, listing and registration fees, and other Organization and Offering Expenses; 

  

	 	(K)	Personnel and related employment costs incurred by the Advisor, the Sub-advisor or their Affiliates in performing the services described in Article 3 hereof, including
reasonable salaries and wages, benefits and overhead of all employees directly involved in the performance of such services, provided that no reimbursement shall be made for costs of such employees of the Advisor, Sub-advisor or their Affiliates to
the extent that such employees perform services for which the Advisor receives Acquisition Fees or Disposition Fees; 

  

 20 

	 	(L)	Out-of-pocket expenses of providing services for and maintaining communications with Stockholders, including the cost of preparation, printing, and mailing annual
reports and other Stockholder reports, proxy statements and other reports required by governmental entities; 

  

	 	(M)	Audit, accounting and legal fees, and other fees for professional services relating to the operations of the Company and all such fees incurred at the request, or on
behalf of, the Board, the Conflicts Committee or any other committee of the Board; 

  

	 	(N)	Out-of-pocket costs for the Company to comply with all applicable laws, regulations and ordinances; 

  

	 	(O)	Expenses connected with payments of Distributions made or caused to be made by the Company to the Stockholders; 

  

	 	(P)	Expenses of organizing, redomesticating, merging, liquidating or dissolving the Company or of amending the Articles of Incorporation or the Bylaws; and

  

	 	(Q)	All other out-of-pocket costs incurred by the Advisor or Sub-advisor in performing the Advisor’s duties hereunder. 

  

	9.2	Timing of and Additional Limitations on Reimbursements. 

  

	 	(A)	Expenses incurred by the Advisor or Sub-advisor on behalf of the Company and reimbursable pursuant to this Article 9 shall be reimbursed no less than monthly to the
Advisor or Sub-advisor in the manner and proportion directed by the Advisor and Sub-advisor. The Advisor shall prepare a statement documenting the expenses of the Company during each quarter and shall deliver such statement to the Company within 45
days after the end of each quarter. 

  

	 	(B)	Notwithstanding anything else in this Article 9 to the contrary, the expenses enumerated in this Article 9 shall not become reimbursable to the Advisor unless and until
the Company has raised $2,500,000 in the Initial Public Offering. 

  

	 	(C)	 Commencing upon the end of the fourth fiscal quarter after the Company’s acquisition of its first real estate asset, the following limitation on
Operating Expenses shall apply: The Company shall not reimburse the Advisor or Sub-advisor at the end of any fiscal quarter for Operating Expenses that in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed
(the “Excess Amount”) the greater of 2% of Average Invested Assets or 25% of Net Income (the “2%/25% Guidelines”) for such year unless the Conflicts Committee determines that such excess was justified, based on
unusual and nonrecurring factors that the Conflicts Committee deems sufficient. If the Conflicts Committee

  

 21 

	 	 
does not approve such excess as being so justified, the Advisor or Sub-advisor shall repay to the Company any Excess Amount paid to the Advisor or Sub-advisor during a fiscal quarter. If the
Conflicts Committee determines such excess was justified, then, within 60 days after the end of any fiscal quarter of the Company for which total reimbursed Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, the Advisor, at the
direction of the Conflicts Committee, shall cause such fact to be disclosed to the Stockholders in writing (or the Company shall disclose such fact to the Stockholders in the next quarterly report of the Company or by filing a Current Report on Form
8-K with the SEC within 60 days of such quarter end), together with an explanation of the factors the Conflicts Committee considered in determining that such excess expenses were justified. The Company will ensure that such determination will be
reflected in the minutes of the meetings of the Board. All figures used in the foregoing computation shall be determined in accordance with GAAP applied on a consistent basis. 

 Article 10 
 Voting Agreement 
  

	10.1	Election of Directors. The Company agrees that it will take such actions that are necessary to cause William M. Kahane, Nicholas Schorsch or another
representative of the Advisor reasonably satisfactory to the Company and Sub-advisor to be a member of the initial Board of Directors of the Company if such representative executes an advance letter of resignation to become effective upon such time
that the Advisor is no longer serving as the advisor to the Company. The Company agrees that if a representative of the Advisor is not a member of the Board of Directors of the Company during the Observer Period, the Advisor shall have the right to
appoint William Kahane, Nicholas Schorsch or another representative of the Advisor reasonably satisfactory to Company and the Sub-advisor as a board observer (the “Board Observer”) who shall be entitled to attend all meetings of the
Company’s Board of Directors and all committees thereof (excluding any committee meeting of independent directors to which none of the Company’s management and non-independent directors is invited), participate in discussions of matters
before the Board or any committee thereof and receive copies of all materials furnished to the Board or any committee thereof, including notices, minutes, consents and any and all other materials provided to directors (other than any materials that
outside counsel for the Company has reasonably determined in writing that the furnishing thereof to the Board Observer would result in the loss of the Company’s attorney/client privilege); provided, however, that the Board Observer shall have
no voting rights with respect to actions taken or elected not to be taken by the Board or any committee thereof. Prior to attending any meeting of the Board or a committee thereof, the Board Observer shall agree in writing to a customary
confidentiality agreement. As used in this letter agreement, “Observer Period” means the earlier to occur of (i) the fifth anniversary of the effective date of the Initial Public Offering and (ii) if the Company terminates
this Agreement, the effective date of such termination. 

  

 22 

	10.2	Other Voting of Shares. The Advisor agrees that, with respect to any Shares now or hereinafter owned by it, the Advisor will not vote or consent on matters
submitted to the stockholders of the Company regarding (i) the removal of the Advisor or any Affiliate of the Advisor or (ii) any transaction between the Company and the Advisor or any of its Affiliates. This voting restriction shall
survive until such time that the Advisor is no longer serving as such. 

 Article 11 
 Relationship Of Advisor And Company; Other Activities Of The Advisor 
  

	11.1	Relationship. The Company and the Advisor are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such
partners or joint venturers. Nothing herein contained shall prevent the Advisor or any of its Affiliates from engaging in or earning fees from other activities, including the rendering of advice to other Persons (including other REITs) and the
management of other programs advised, sponsored or organized by the Advisor or any of its Affiliates. Nor shall this Agreement limit or restrict the right of any manager, director, officer, member, partner, employee or equityholder of the Advisor or
any of its Affiliates to engage in or earn fees from any other business or to render services of any kind to any other Person. The Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to
each and every other participant therein, and earn fees for rendering such advice and service. Specifically, it is contemplated that the Company may enter into Joint Ventures or other similar co-investment arrangements with certain Persons, and
pursuant to the agreements governing such Joint Ventures or other similar co-investment arrangements, the Advisor may be engaged to provide advice and service to such Persons, in which case the Advisor will earn fees for rendering such advice and
service. The Advisor shall promptly disclose to the Board the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, that creates or could create a conflict of interest between the Advisor’s obligations
to the Company and its obligations to or its interest in any other Person. 

  

	11.2	Time Commitment. The Advisor shall, and shall cause its Affiliates and their respective employees, officers and agents to, devote to the Company such time as
shall be reasonably necessary to conduct the business and affairs of the Company in an appropriate manner consistent with the terms of this Agreement. The Company acknowledges that the Advisor and its Affiliates and their respective employees,
officers and agents may also engage in activities unrelated to the Company and may provide services to Persons other than the Company or any of its Affiliates. 

  

 23 

	11.3	Investment Opportunities. The Advisor shall be required to use commercially reasonable efforts to present a continuing and suitable investment program to the
Company that is consistent with the investment policies and objectives of the Company. So long as the Advisor acts in its capacity as advisor under this Agreement, neither the Advisor nor any Affiliate of the Advisor shall pursue any opportunity to
acquire any Property, Loan or other Permitted Investment that is directly competitive with the Company’s strategy, unless and until the opportunity is presented first to the Company; provided, however, that the Advisor or any Affiliate of the
Advisor shall be permitted to pursue any opportunity in respect of (i) any net leased retail, office and industrial properties or other property consistent with the investment policies of American Reality Capital Trust, Inc., or (ii) any
commercial real estate or other real estate investments that relate to office, retail, multi-family residential, industrial and hotel property types, located primarily in the New York metropolitan area or other property consistent with the
investment policies of American Realty Capital New York Recovery REIT, Inc. If the Company passes on such acquisition, then the Advisor or its Affiliates may acquire the subject investment. 

 Article 12 
 The Phillips Edison and ARC Names 
  

	12.1	 The American Realty Capital and ARC Names. The Advisor and its Affiliates have or may have a proprietary interest in the names “American
Realty Capital” and “ARC.” The Advisor hereby grants to the Company, to the extent of any proprietary interest the Advisor may have in any of the names “American Realty Capital” and “ARC,” a non-transferable,
non-assignable, non-exclusive royalty-free right and license to use the names “American Realty Capital” and “ARC” during the term of this Agreement. The Company agrees that the Advisor and its Affiliates will have the right to
approve of any use by the Company of the names “American Realty Capital” or “ARC,” such approval not to be unreasonably withheld or delayed. Accordingly, and in recognition of this right, if at any time the Company ceases to
retain the Advisor or one of its Affiliates to perform advisory services for the Company, the Company will, promptly after receipt of written request from the Advisor, cease to conduct business under or use the names “American Realty
Capital” and “ARC” or any derivative thereof and the Company shall change its name and the names of any of its subsidiaries to a name that does not contain the names “American Realty Capital” or “ARC” or any other
word or words that might, in the reasonable discretion of the Advisor, be susceptible of indication of some form of relationship between the Company and the Advisor or any its Affiliates. At such time, the Company will also make any changes to any
trademarks, servicemarks or other marks necessary to remove any references to any of the names “American Realty Capital” or “ARC.” Consistent with the foregoing, it is specifically recognized that the Advisor or one or more of
its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service organizations having any of the names

  

 24 

	 	 
“American Realty Capital” or “ARC” as a part of their name, all without the need for any consent (and without the right to object thereto) by the Company. Neither the Advisor
nor any of its Affiliates makes any representation or warranty, express or implied, with respect to the names “American Realty Capital” or “ARC” licensed hereunder or the use thereof (including without limitation as to whether
the use of the name “American Realty Capital” or “ARC” will be free from infringement of the intellectual property rights of third parties). Notwithstanding the preceding, the Advisor represents and warrants that it is not aware
of any pending claims or litigation or of any claims threatened in writing regarding the use or ownership of the names “American Realty Capital” or “ARC.” 

  

	12.2	The Phillips Edison and PECO Names. The Sub-advisor and its Affiliates have or may have a proprietary interest in the names “Phillips Edison” and
“PECO.” The Sub-advisor hereby grants to the Company, to the extent of any proprietary interest the Sub-advisor may have in the names “Phillips Edison” and “PECO,” a non-transferable, non-assignable, non-exclusive
royalty-free right and license to use the names “Phillips Edison” and “PECO” during the term of this Agreement. The Company and Advisor agree that the Sub-advisor and its Affiliates will have the right to approve of any use by
the Company of the names “Phillips Edison” or “PECO,” such approval not to be unreasonably withheld or delayed. Accordingly, and in recognition of this right, if at any time the Advisor ceases to retain the Sub-advisor or one of
its Affiliates to perform advisory services for the Company, the Company will, promptly after receipt of written request from the Sub-advisor, cease to conduct business under or use the names “Phillips Edison” and “PECO” or any
derivative thereof and the Company shall change its name and the names of any of its subsidiaries to a name that does not contain any of the names “Phillips Edison” and “PECO” or any other word or words that might, in the
reasonable discretion of the Sub-advisor, be susceptible of indication of some form of relationship between the Company and the Sub-advisor or any its Affiliates. At such time, the Company will also make any changes to any trademarks, servicemarks
or other marks necessary to remove any references to any of the names “Phillips Edison” or “PECO.” Consistent with the foregoing, it is specifically recognized that the Sub-advisor or one or more of its Affiliates has in the past
and may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate) and financial and service organizations having the names “Phillips Edison” or
“PECO” as a part of their name, all without the need for any consent (and without the right to object thereto) by the Company. Neither the Sub-advisor nor any of its Affiliates makes any representation or warranty, express or implied, with
respect to the names “Phillips Edison” or “PECO” licensed hereunder or the use thereof (including without limitation as to whether the use of the name “Phillips Edison” or “PECO” will be free from infringement
of the intellectual property rights of third parties). Notwithstanding the preceding, the Sub-advisor represents and warrants that it is not aware of any pending claims or litigation or of any claims threatened in writing regarding the use or
ownership of the names “Phillips Edison” or “PECO.” 

  

 25 

 Article 13 
 Term And Termination Of The Agreement 
  

	13.1	Term. This Agreement shall have an initial term of one year from the date hereof and may be renewed for an unlimited number of successive one-year terms upon
mutual consent of the parties. The Company (acting through the Conflicts Committee) will evaluate the performance of the Advisor annually before renewing this Agreement, and each such renewal shall be for a term of no more than one year. Any such
renewal must be approved by the Conflicts Committee. 

  

	13.2	Termination by Either Party. This Agreement may be terminated upon 60 days’ written notice without cause or penalty by either the Company (acting through
the Conflicts Committee) or the Advisor. The provisions of Section 14.2 and Articles 1, 12, 13, 15 and 16 (other than Section 16.11) shall survive termination of this Agreement. Notwithstanding anything else that may be to the contrary
herein, the expiration or earlier termination of this Agreement shall not relieve a party for liability for any breach occurring prior to such expiration or earlier termination. 

  

	13.3	Payments on Termination and Survival of Certain Rights and Obligations. 

  

	 	(A)	After the Termination Date, the Advisor shall not be entitled to compensation for further services hereunder except the Advisor (and its assignees, including the
Sub-advisor) shall be entitled to receive from the Company within 30 days after the effective date of such termination (1) all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Advisor or its assignees prior to
termination of this Agreement and (2) the Subordinated Performance Fee Due Upon Termination; provided, that no Subordinated Performance Fee Due Upon Termination will be paid if the Company has paid or is obligated to pay the Subordinated
Incentive Fee. 

  

	 	(B)	The Advisor shall promptly upon termination: 

  

	 	(1)	pay over to the Company all money collected pursuant to this Agreement, if any, after deducting any accrued compensation and reimbursement for its expenses to which it
is then entitled; 

  

	 	(2)	deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period
following the date of the last accounting furnished to the Board; 

  

	 	(3)	deliver to the Board all assets and documents of the Company then in the custody of the Advisor; and 

  

 26 

	 	(4)	cooperate with the Company to provide an orderly transition of advisory functions. 

  

	 	(C)	After the Termination Date, the Sub-advisor shall be entitled to receive from the Company, within 30 days after the effective date of such termination (1) all
unpaid reimbursements of expenses and all earned but unpaid fees payable to the Sub-advisor prior to the termination of this Agreement and (2) the Sub-advisor’s share of the Subordinated Performance Fee Due Upon Termination, if any;
provided, that no Subordinated Performance Fee Due Upon Termination will be paid if the Company has paid or is obligated to pay the Subordinated Incentive Fee. 

  

	 	(D)	After the termination of the Sub-advisory Agreement, to the extent payments are not provided for by Section 13.3(C) (i.e., if the Sub-advisory Agreement is
terminated independently of the Advisory Agreement), the Sub-advisor shall be entitled to receive from the Company, within 30 days after the effective date of such termination, all unpaid reimbursements of expenses and all earned but unpaid fees
payable to the Sub-advisor prior to the termination of the Sub-advisory Agreement. 

  

	 	(E)	Promptly upon the termination of the Sub-advisory Agreement, the Sub-advisor shall promptly upon such termination: 

  

	 	(1)	pay over to the Company all money, if any, collected and held on behalf of the Company pursuant to the Sub-advisory Agreement after deducting any accrued compensation
and reimbursement for its expenses to which it is then entitled; 

  

	 	(2)	deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period
following the date of the last accounting furnished to the Board; 

  

	 	(3)	deliver to the Board all assets and documents of the Company then in the custody of the Sub-advisor; and 

  

	 	(4)	cooperate with the Company to provide an orderly transition of advisory functions. 

  

	 	(F)	 The “Subordinated Performance Fee due upon Termination” will equal the greater of (1) 15% of the amount, if any, by which
(a) the Appraised Value of the Properties at the Termination Date, less amounts of all indebtedness secured by such Properties at the Termination Date, plus the fair market value of all other Loans and Permitted Investments of the Company at
the Termination Date, less amounts of indebtedness related to such Loans and Permitted Investments at the Termination Date, plus total Distributions (excluding any stock dividends and Distributions paid on Shares that have been redeemed by the
Company) through the

  

 27 

	 	 
Termination Date exceeds (b) the sum of Invested Capital as of the Termination Date, plus total Distributions required to be made to the Stockholders in order to pay the Stockholders’
7% Return from inception through the Termination Date to the Stockholders as of the Termination Date, or (2) deemed real estate commissions equal to 3% of the contract sales price that would have been paid to the Advisor or its Affiliates
(assuming the sale of substantially all of the assets of the Company at the Termination Date at a fair market value on such date) (provided that in no event may such deemed real estate commissions exceed the aggregate Competitive Real Estate
Commission), less (3) any prior payment to the Advisor and/or Sub-advisor (as applicable) of a Subordinated Share of Cash Flows. The Advisor and Sub-advisor may each elect to defer its respective right to receive the Subordinated Performance
Fee due upon Termination (or its applicable portion thereof) until (x) a Listing, (y) a merger in which the Stockholders receive in exchange for their Shares shares of a company that are traded on a national securities exchange, or
(z) any other liquidity event occurs, including a liquidation, sale of substantially all of the Company’s assets (an “Other Liquidity Event”). 

  

	 	(G)	 If either the Advisor or Sub-advisor or both elect to defer their right to receive a Subordinated Performance Fee due upon Termination (or its
applicable portion thereof) and there is a Listing or a merger in which the Stockholders receive in exchange for their Shares shares of a company that are traded on a national securities exchange, then the Advisor and/or Sub-advisor (each to the
extent entitled pursuant to the assignment of such right to payment between the Advisor and Sub-advisor) will be entitled to receive a Subordinated Performance Fee due upon Termination (or its applicable portion thereof) equal to the greater of
(1) 15% of the amount, if any, by which (a) the Appraised Value of the Company’s Properties (determined by appraisal as of the date of Listing or merger, as applicable) owned as of the Termination Date, less amounts of all
indebtedness secured by the Company’s Properties at the Termination Date, plus the fair market value of all other Loans and Permitted Investments of the Company at the Termination Date, plus any assets acquired after Termination for which the
Advisor or Sub-advisor would have been entitled to receive an Acquisition Fee (referred to herein as the “included assets”), less amounts of indebtedness related to such Loans and Permitted Investments or such included assets at the
Termination Date, plus total Distributions (excluding any stock dividends and Distributions paid on Shares that have been redeemed by the Company) through the date of Listing or merger, as applicable, exceeds (b) the sum of Invested Capital as
of the date of Listing or merger, as applicable, plus total Distributions required to be made to the Stockholders in order to pay the Stockholders’ 7% Return from inception through the date of Listing or merger, as applicable, to the
Stockholders as of the date of Listing or merger, as applicable, or (2) deemed real estate commissions equal to 3% of the contract sales price that would have been paid to the Advisor or its

  

 28 

	 	 
Affiliates (assuming the sale of substantially all of the assets of the Company at the Termination Date at a fair market value on such date) (provided that in no event may such deemed real estate
commissions exceed the aggregate Competitive Real Estate Commission), less (3) any prior payment to the Advisor and/or Sub-advisor (as applicable) of a Subordinated Share of Cash Flows. 

  

	 	(H)	If the Advisor or Sub-advisor or both elect to defer their right to receive a Subordinated Performance Fee due upon Termination (or its applicable portion thereof) and
there is an Other Liquidity Event, then the Advisor and/or Sub-advisor (each to the extent entitled pursuant to the assignment of such right to payment between the Advisor and Sub-advisor) will be entitled to receive a Subordinated Performance Fee
due upon Termination (or its applicable portion thereof) in an amount equal to the sum of (1) 15% of the amount, if any, by which (a) the net sales proceeds of the Company’s assets that were owned at the Termination Date, plus total
Distributions (excluding any stock dividends and Distributions paid on Shares that have been redeemed by the Company) through the date of the Other Liquidity Event exceeds (b) the sum of Invested Capital as of the date of the Other Liquidity
Event plus total Distributions required to be made to the Stockholders in order to pay the Stockholders’ 7% Return from inception through the date of the Other Liquidity Event to the Stockholders as of the date of the Other Liquidity Event,
plus (2) deemed real estate commissions equal to 3% of the contract sales price that would have been paid to the Advisor or its Affiliates (assuming the sale of substantially all of the assets of the Company at the Termination Date at a fair
market value on such date) (provided that in no event may such deemed real estate commissions exceed the aggregate Competitive Real Estate Commission), less (3) any prior payment to the Advisor and/or Sub-advisor (as applicable) of a
Subordinated Share of Cash Flows. 

 Article 14 
 Assignment 
  

	14.1	Assignment of Agreement. This Agreement may be assigned by the Advisor to an Affiliate with the consent of the Conflicts Committee. This Agreement shall not be
assigned by the Company without the consent of the Advisor, except in the case of an assignment by the Company to a corporation or other organization that is a successor to all of the assets, rights and obligations of the Company, in which case such
successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company is bound by this Agreement. 

  

	14.2	Assignment of Payments. The Advisor may assign any rights to receive fees or other payments under this Agreement without obtaining the approval of the Board or
Conflicts Committee, and the Company shall honor and pay directly the assignee of such assignment. 

  

 29 

 Article 15 
 Indemnification And Limitation Of Liability 
  

	15.1	Indemnification. Except as prohibited by the restrictions provided in this Section 15.1, Section 15.2 and Section 15.3, the Company shall
indemnify, defend and hold harmless the Advisor, the Sub-advisor and their Affiliates, as well as their respective officers, directors, equity holders, members, partners and employees, from all liability, claims, damages or losses arising in the
performance of their duties hereunder or under any sub-advisory agreement, and related expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by
insurance. Any indemnification of the Advisor or Sub-advisor may be made only out of the net assets of the Company and not from Stockholders. 

 Notwithstanding the foregoing, the Company shall not indemnify the Advisor or Sub-advisor or their Affiliates, as well as their respective officers, directors, equity holders, members, partners and
employees, for any loss, liability or expense arising from or out of an alleged violation of federal or state securities laws by such party unless one or more of the following conditions are met: (i) there has been a successful adjudication on
the merits of each count involving alleged material securities law violations as to the particular indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the particular
indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against a particular indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering the
request for indemnification has been advised of the position of the Securities and Exchange Commission and of the published position of any state securities regulatory authority in which securities of the Company were offered or sold as to
indemnification for violations of securities laws. 
  

	15.2	Limitation on Indemnification. Notwithstanding the foregoing, the Company shall not provide for indemnification of the Advisor, the Sub-advisor or their
Affiliates or of their respective officers, directors, equity holders, members, partners and employees, for any liability or loss suffered by any of them, nor shall any of them be held harmless for any loss or liability suffered by the Company,
unless all of the following conditions are met: 

  

	 	(A)	The Advisor, the Sub-advisor or one of their Affiliates (as applicable) has determined, in good faith, that the course of conduct that caused the loss or liability was
in the best interests of the Company. 

  

 30 

	 	(B)	The Advisor, the Sub-advisor or one of Affiliates (as applicable) was acting on behalf of or performing services for the Company. 

  

	 	(C)	Such liability or loss was not the result of negligence or misconduct by the Advisor, the Sub-advisor or one of their Affiliates (as applicable).

  

	15.3	Limitation on Payment of Expenses. The Company shall pay or reimburse reasonable legal expenses and other costs incurred by any of the Advisor, the Sub-advisor
or their Affiliates, or by any of their respective officers, directors, equity holders, members, partners and employees, in advance of the final disposition of a proceeding only if (in addition to any applicable procedures required by the Maryland
General Corporation Law, as amended from time to time) all of the following are satisfied: (a) the proceeding relates to acts or omissions with respect to the performance of duties or services on behalf of the Company, (b) the legal
proceeding was initiated by a third party who is not a stockholder or, if by a stockholder acting in his or her capacity as such, a court of competent jurisdiction approves such advancement and (c) such Person undertakes to repay the amount
paid or reimbursed by the Company, together with the applicable legal rate of interest thereon, if it is ultimately determined that such Person is not entitled to indemnification. 

 Article 16 
 Miscellaneous 
  

	16.1	Notices. Any notice, request, demand, approval, consent, waiver or other communication required or permitted to be given hereunder or to be served upon any of
the parties hereto (each a “Notice”) shall be in writing and shall be (a) delivered in person, (b) sent by facsimile transmission (with the original thereof also contemporaneously given by another method specified in this
Section 16.1), (c) sent by a nationally-recognized overnight courier service, or (d) sent by certified or registered mail (postage prepaid, return receipt requested), to the address of such party set forth herein.

 To the Company or the Board: 
 Phillips Edison – ARC Shopping Center REIT Inc. 
 11501 Northlake Drive

 Cincinnati, OH 45249 
 with a copy to (which shall not constitute Notice): 
 DLA Piper LLP (US)

 4141 Parklake Drive , Suite 300 
 Raleigh, North Carolina 27612 
 Attention: Robert Bergdolt 
 Telephone: (919) 786-2002

  

 31 

 
Facsimile: (919) 786-2202 
 To the Advisor: 
 American Realty Capital II Advisors, LLC 
 405 Park Avenue 
 New York, New York 10022 
 Attention: Nicholas S. Schorsch 
                   Jesse Galloway 
 with a copy to (which shall not constitute Notice): 
 Proskauer Rose LLP

 1585 Broadway 
 New York, New York 10036 
 Attention: Peter M. Fass, Esq. 
                   James P. Gerkis, Esq. 

Telephone: (212) 969-3000 
 Facsimile: (212) 969-2900 
 To the Sub-advisor: 
  Phillips Edison NTR LLC 
  11501 Northlake Drive 
 Cincinnati, OH 45249 
 with a copy to (which shall not constitute Notice): 
 DLA Piper LLP (US) 4141 
 Parklake Drive , Suite 300 
 Raleigh, North Carolina 27612 
 Attention: Robert Bergdolt 
 Telephone: (919) 786-2002 
 Facsimile: (919) 786-2202 
 Any party may at any time give Notice in writing to the other party of a change in its address for the purposes of this Section 16.1. Each Notice shall be deemed given and effective upon receipt (or
refusal or receipt). 
  

	16.2	Modification. This Agreement shall not be amended, supplemented, changed, modified, terminated or discharged, in whole or in part, except by an instrument in
writing signed by the Company and the Advisor, or their respective successors or permitted assigns; provided, however, that no modification that impacts the rights or obligations of the Sub-advisor may be made without the
Sub-advisor’s consent and signature. 

  

	16.3	Severability. The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or
unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part. 

  

 32 

	16.4	Construction. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of New York as at the time in effect,
without regard to the principles of conflicts of laws thereof. 

  

	16.5	Entire Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and
supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede
any course of performance and/or usage of the trade inconsistent with any of the terms hereof. 

  

	16.6	Waiver. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or
privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have
granted such waiver. 

  

	16.7	Gender. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural,
and any other gender, masculine, feminine or neuter, as the context requires. 

  

	16.8	Titles Not to Affect Interpretation. The titles of Articles and Sections contained in this Agreement are for convenience only, and they neither form a part of
this Agreement nor are they to be used in the construction or interpretation hereof. 

  

	16.9	Third Party Beneficiary. The Sub-advisor is intended to be a third party beneficiary of the Company’s payment and indemnification obligations hereunder.
Except for those Persons entitled to indemnification under Article 15 who shall be third party beneficiaries of this Agreement, no other Person is a third party beneficiary of this Agreement. 

  

	16.10	Counterparts. This Agreement may be executed with counterpart signature pages or in any number of counterparts, each of which shall be deemed to be an original
as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterpart signatures pages or counterparts hereof, individually or
taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. 

  

 33 

	16.11	Restricted Stock. Each of the Company, the Advisor and the Sub-advisor agrees that no restricted stock awards or grants shall be made by the Company to any
Persons other than to (a) both the Advisor and the Sub-advisor, or (b) the members of the Conflicts Committee. To the extent that the Company makes restricted stock awards or grants to the Advisor and the Sub-advisor, the Company shall
issue (and the Advisor and the Sub-advisor shall use reasonable efforts to cause the Company to issue) 15% of such restricted stock awards or grants to the Advisor and 85% of such restricted stock awards or grants to the Sub-advisor. In turn, each
of the Advisor and the Sub-advisor may allocate, in its sole discretion and as it may determine, all or any part of such restricted stock award or grant so issued to it to its or its Affiliates’ directors, officers, employees, members or to its
respective Affiliates on such terms and conditions as may be determined by it. Notwithstanding Section 13.2, the provision of this Section 16.11 shall terminate upon termination of this Agreement in accordance with its terms.

 [The remainder of this page is intentionally left blank. 
 Signature page follows.] 
  

 34 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year
first above written. 
  

							
		 		 	Phillips Edison – ARC Shopping Center REIT Inc.
				
		 		 	By:	 	/s/ John B. Bessey
		 		 		 	John B. Bessey, President
			
		 		 	American Realty Capital II Advisors, LLC
				
		 		 	By:	 	/s/ William Kahane
		 		 		 	William Kahane, President
			
	With respect to Sections 12.2 and 13.3, Article 9, Article 14, Article 15 and Article 16:	 		 	Phillips Edison NTR LLC (formerly known as Phillips Edison & Company Subadvisor LLC)
	 		 	By:	 	  
 /s/ John B.
Bessey

		 		 		 	John B. Bessey, President

  [Signature
Page to Second Amended and Restated Advisory Agreement between Phillips Edison – ARC Shopping Center REIT Inc. and American Realty Capital II Advisors, LLC]

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