Document:

Exhibit 10.7

 

AMERICAN REALTY CAPITAL NEW YORK
CITY REIT II, INC.

 

FORM OF DISTRIBUTION SUPPORT AGREEMENT

 

DISTRIBUTION
SUPPORT AGREEMENT (the “Agreement”) dated [•], 2015 by and among American Realty Capital III, LLC (the
“Sponsor”) and American Realty Capital New York City REIT II, Inc. (the “Company”).

 

WHEREAS, the Company has registered for
public sale (the “Offering”) a maximum of 44,700,000 shares of its common stock, $0.01 par value per share
(the “Shares”), of which amount: (a) up to 30,000,000 Shares are being offered to the public pursuant to
the Company’s primary offering; and (b) up to 14,700,000 Shares are being offered to stockholders of the Company (the
“Stockholders”) pursuant to the Company’s distribution reinvestment plan (the
“DRIP”);

 

WHEREAS,
the majority of the net proceeds of the Offering are intended to be invested in a portfolio of commercial real estate properties,
with a lesser portion permitted to be invested in commercial real estate debt and commercial real estate related investments; and

 

WHEREAS,
to provide the Company with funds to pay cash distributions authorized and declared to Stockholders during the Offering, the
Sponsor has agreed to purchase up to an aggregate of $10,000,000 in Shares in accordance with the terms set forth herein.

 

NOW THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.           Definitions. The following terms, when
used herein, shall have the following meanings:

 

“Advisor”
means New York City Advisors II, LLC, the Company’s advisor, or any Affiliated successor.

 

"Affiliate"
means with respect to any Person: (i) any Person directly or indirectly controlling, controlled by, or under common control with
such other Person; (ii) any Person directly or indirectly owning, controlling, or holding with the power to vote 10% or more of
the outstanding voting securities of such other Person; (iii) any legal entity for which such Person acts as an executive officer,
director, trustee, or general partner; (iv) any Person 10% or more of whose outstanding voting securities are directly or indirectly
owned, controlled, or held, with power to vote, by such other Person; and (v) any executive officer, director, trustee, or general
partner of such other Person. An entity shall not be deemed to control or be under common control with a program sponsored by the
sponsor of the Company unless (A) the entity owns 10.0% or more of the voting equity interests of such program or (B) a majority
of the Board (or equivalent governing body) of such program is composed of Affiliates of the entity.

 

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

 

“Business
Day” means any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions
in New York City are authorized or required by law, regulation or executive order to close.

 

“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” has the meaning set forth
in the recitals.

 

    	 

    	 

    

 

“Distribution
Shortfall” means, with respect to any calendar quarter during the Term, the amount by which Quarterly Distributions exceed
MFFO for such quarter or, in the event MFFO is negative, the amount of the Quarterly Distributions for such quat1er.

 

“Invested
Capital” means the amount calculated by multiplying the total number of Shares purchased by Stockholders by the Issue
Price, reduced by: (i) any amounts paid by the Company to repurchase Shares pursuant to the Company's plan for redemption of Shares;
and (ii) the aggregate amount of net sale proceeds distributed to Stockholders as a result of the sale of one or more of the Company's
investments.

 

“Issue Date” has the meaning set
forth in Section 3(b) hereof.

 

“Issue
Price” means the gross price per Share the original purchasers of Shares paid to the Company for the Shares (as adjusted
for any stock dividends, combinations, splits, recapitalizations and the like with respect to the Shares).

 

“MFFO”
means the Company's modified funds from operations as disclosed in the Company's Periodic Report filed with respect to the applicable
period.

 

“Offering”
has the meaning set forth in the recitals.

 

“Periodic
Report” means the Company’s quarterly report on Form 10-Q or annual report on Form 10-K, as applicable.

 

“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.

 

“Prospectus”
means the prospectus for the Offering contained in the Company's registration statement on Form S-11, filed with the SEC pursuant
to the Securities Act of 1933, as amended, and the applicable rules and regulations of the SEC promulgated thereunder, and declared
effective by the SEC, as such prospectus may be supplemented or amended thereafter.

 

“Purchase
Price” means, as of any given date, the per share price of the Shares in the Offering, net of the maximum per share selling
commissions and maximum dealer manager fees specified in the Prospectus.

 

“Quarterly
Distributions” means the aggregate amount of cash distributions (excluding distributions reinvested through the DRIP)
paid to Stockholders during a calendar quarter.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Shares”
has the meaning set forth in the recitals.

 

“Stockholders”
has the meaning set forth in the recitals.

 

“Stockholders’
6% Return” means, as of any date, an aggregate amount equal to a 6% cumulative, non-compounded, annual return on aggregate
Invested Capital (calculated like simple interest on a daily basis based on a 365 day year). For purposes of calculating the Stockholders'
6% Return, aggregate Invested Capital shall be determined for each day during the period for which the Stockholders' 6% Return
is being calculated.

 

“Threshold
Amount” means an amount equal to the Stockholders' 6% Return, prorated for such quarter.

 

“Term”
has the meaning set forth in Section 4 hereof.

 

    	 

    	 

    

 

2.            Share
Purchase Commitment. In the event of a Distribution Shortfall for any calendar quarter during the Term, the Sponsor shall purchase
Shares from the Company in an aggregate amount equal to the Distribution Shortfall; provided, however, that the Sponsor
shall not be obligated to purchase Shares for any quarter in which MFFO for such quarter exceeds the Threshold Amount and further
provided, that Sponsor’s obligation to purchase Shares pursuant to this Agreement, shall be limited to an aggregate of $10,000,000
in purchase amount (when aggregated with any Shares the Sponsor or its Affiliates purchased in order to satisfy the minimum Offering
requirements set forth in the Prospectus). Any Shares purchased by the Sponsor pursuant to this Section 2 shall be purchased pursuant
to the Offering and at the Purchase Price in effect as of the date of purchase of the Shares.

 

3.             Procedure for Purchase of Shares.

 

		(a)	In the event of a Distribution Shortfall, the Company
shall deliver to the Sponsor a written notice within ten (10) Business Days following the Company's filing with the SEC of its
Periodic Report for such calendar quarter or year, as the case may be, specifying the number of Shares to be purchased by the
Sponsor pursuant to Section 2 above and the Company's calculation of the Distribution Shortfall.

 

		(b)	On the fifth Business Day following the delivery of such
notice (the "Issue Date"), the Company shall issue to the Sponsor the Shares being sold against the Sponsor’s
delivery of its executed subscription for the Offering and payment of the purchase price for such Shares by wire transfer of immediately
available funds.

 

		(c)	If the Sponsor fails to deliver the required amount of
funds ("Deficit Amount") pursuant to Section 3(b) above within three (3) Business Days thereafter, from time
to time when the Company would otherwise be obligated to pay fees to the Sponsor (or its Affiliates) for services performed for
the Company, the Company shall offset such fees until such time as the Deficit Amount has been fully repaid.

 

4.          Term.
This Agreement shall be in effect until the earlier of (a) the second anniversary of the commencement of the Offering or (b) the
day in which neither the Advisor nor another Affiliate of the Sponsor is serving as the Company’s advisor.

 

5.           Notices.
All notices shall be in writing and shall be given or made, by delivery in person or by guaranteed delivery overnight courier to
the Company or the Sponsor at the addresses set forth below:

 

To the Company:

 

American Realty Capital New York City REIT II, Inc.

405
Park Avenue

New York, New York 10022

Attention: Michael A. Happel

   President

 

with a copy to:

 

James Tanaka, Esq.

405 Park Avenue

New York, New York 10022

 

    	 

    	 

    

 

To the Sponsor:

 

American Realty Capital III, LLC

405 Park Avenue

New York, New York 10022

Attention: William M. Kahane

 

with a copy to:

 

James Tanaka, Esq.

405 Park Avenue

New York, New York 10022

 

or to such
other addresses as the Company and the Sponsor may designate to the Sponsor and Company, respectively, in writing. Notices shall
be effective upon receipt in the case of personal delivery or one Business Day after being sent in the case of delivery by overnight
courier.

 

6.           Voting
Agreement. The Sponsor agrees and shall cause its Affiliates to whom it may transfer Shares to agree on behalf of the Sponsor
and to require any subsequent transferees that are Affiliates to agree that, with respect to any Shares purchased pursuant to this
Agreement or otherwise acquired, the Sponsor will not vote or consent on matters submitted to the Stockholders regarding any transaction
between the Company and the Advisor or a transaction between the Company and any Affiliate of the Sponsor, including, without limitation,
the removal of one or more of the Advisor Entities or any of their Affiliates as the Company's Advisor. These voting restrictions
shall survive until such time that the Advisor or its Affiliates are no longer serving as the Company's Advisor.

 

7.           Assignment;
Third Party Beneficiaries. This Agreement may not be assigned by any of the parties; provided, however, that the Sponsor
may assign its obligations under this Agreement to any one or more of its Affiliates, but no such assignments shall relieve the
Sponsor of its obligations hereunder. This Agreement shall inure to the benefit of and shall be binding upon the heirs, executors,
administrators, legal representatives, successors and assigns of the parties hereto.

 

8.          Governing
Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York without reference
to conflict of laws provisions.

 

9.           Amendment. No amendment,
modification or waiver of this Agreement will be valid unless made in writing and duly executed by each party hereto.

 

10.       Entire
Agreement. This agreement constitutes the entire understanding among the parties with respect to the subject matter hereof.
This agreement may be executed in one or more counterparts.

 

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

 

    	 

    	 

    

  

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

 

	 	AMERICAN REALTY CAPITAL 
	 	NEW YORK CITY REIT II, INC.
	 	 
	 	By: 	 
	 	Name: 	 
	 	Title: 	 
	 	 	 
	 	American Realty Capital III, LLC
	 	 	 
	 	By: 	 
	 	Name: 	 
	 	Title:EX-4.b

 CONTRACT DATA PAGE 

Contract Number:
[P9999999999]                        Contract Date: [May 2, 2011] 

 

			
	 Owner: [JOHN DOE]
		 [Date of Birth: [March 1, 1976]      Age at Issue: [35]]

		
	 [Owner: [JANE DOE]
		 Date of Birth: [June 10, 1976]        Age at Issue: [34]]

		
	 Annuitant: [JOHN DOE]
		 Date of Birth: [March 1, 1976]       Age at Issue: [35]

		
	 [Annuitant: [JANE DOE]
		 Date of Birth: [June 10, 1976]        Age at Issue: [34]]

 Beneficiary: As named by You 

Initial Purchase Payment: [$10,000.00] 

Purchase Payment Age Limit: [Prior to the 86th birthday] 

Minimum Subsequent Purchase Payment: [$500] 

Fixed Account Options – Minimum Guarantee Rate: [1.0% - 3.0%] 

Minimum Partial Withdrawal Amount: [$1,000] 

Maximum Penalty-Free Withdrawal Percentage: [10%] 

Minimum Systematic Withdrawal Amount: [$100] 

Minimum Amount Remaining After a Partial Withdrawal: [$2,500] 

Withdrawal Charge Schedule: 
  

 
 See Page [11] for Withdrawal Provisions. 

  

					
	AS-993-PPS4 (12/10)		 3
		

 CONTRACT DATA PAGE (Cont’d.) 

 

 Minimum Transfer Amount: [$100] 

Separate Account Charge (including guaranteed death benefit risk charge of [0.10%]): 

 
 Annual Contract Maintenance Fee: [$50] 

Transfer Fee: [$25] 

Earliest Annuity Date After Contract Date: [Two years] 

Latest Annuity Date: [1st day of the month following Age 95] 

Separate Account: [Variable Separate Account] 
  

									
	 

		 Optional Elections:

SunAmerica Income Plus
				 Optional Election Details:
 See
Attached Endorsement ASE-6248
		 

							

  

  

					
	AS-993-PPS4 (12/10)		 4

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