Document:

EMPLOYEE AND DIRECTOR

INCENTIVE RESTRICTED SHARE PLAN

OF

ARC REALTY FINANCE TRUST, INC.

 

SECTION 1.         PURPOSES
OF THE PLAN AND DEFINITIONS

 

1.1          Purposes.
The purposes of the Employee and Director Incentive Restricted Share Plan (this “Plan”) of ARC Realty
Finance Trust, Inc. (the “Company”) are to:

 

(1)         provide
incentives to individuals chosen to receive share-based awards because of their ability to improve operations and increase profits;

 

(2)         encourage
the Advisor and selected persons to accept positions with or continue to provide services to the Company, the Advisor and Affiliates
of the Company, as applicable; and

 

(3)         increase
the interest of Directors in the Company’s welfare through their participation in the growth in value of the Company’s
Shares.

 

To accomplish these purposes, this Plan
provides a means whereby employees of the Advisor and Affiliates of the Company, officers of the Company, the Advisor and Affiliates
of the Company, Directors, the Advisor and other enumerated persons may receive Awards.

 

1.2          Definitions.
For purposes of this Plan, the following terms have the following meanings:

 

“Advisor” means
the Person or Persons, if any, appointed, employed or contracted with by the Company to be responsible for directing or performing
the day-to-day business affairs of the Company, including any Person to whom the Advisor subcontracts substantially all such functions.
The initial Advisor is ARC Realty Finance Advisors, LLC.

 

“Advisory Agreement”
shall mean that agreement dated , 2013, by and among, the Company, the Advisor and ARC Realty Finance Operating Partnership, L.P.

 

“Affiliate” means
any Person (other than an Advisor), whose employees, directors or officers are eligible to receive Awards under this Plan. The
determination of whether a Person is an Affiliate shall be made by the Board acting in its sole and absolute discretion.

 

“Applicable Laws”
means the requirements relating to the administration of Awards under state corporation laws, U.S. federal and state securities
laws, the Code, any stock exchange or quotation system on which the Shares are listed or quoted and the applicable laws of any
foreign country or jurisdiction where Awards are, or will be, granted under this Plan.

 

    	 

    	 

    

 

“Articles of Incorporation”
means the articles of incorporation of the Company, as the same may be amended from time to time.

 

“Award” means
any award of Restricted Shares under this Plan.

 

“Award Agreement”
means, with respect to each Award, the written agreement executed by the Company and the Participant or other written document
approved by the Board setting forth the terms and conditions of the Award.

 

“Board” means
the Board of Directors of the Company.

 

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

 

“Committee” means
the Board or a duly appointed committee of the Board to which the Board has delegated its powers and functions hereunder.

 

“Company” means
ARC Realty Finance Trust, Inc.

 

“Director” means
a person elected or appointed and serving as a member of the Board in accordance with the Articles of Incorporation and the Maryland
General Corporation Law.

 

“Director Shares”
means Shares issued under Section 6.

 

“Effective Date”
has the meaning given it in Section 15.

 

“Employment Termination”
means that a Participant has ceased, for any reason and with or without cause, to be an employee or Director of, or a consultant
to, the Company, the Advisor or any Affiliate of the Company. However, the term “Employment Termination” shall not
include a transfer of a Participant from the Company to the Advisor or any Affiliate of the Company or the Advisor or vice
versa, or from any such Affiliate to another, or a leave of absence duly authorized by the Company unless the Board has
provided otherwise.

 

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

 

“Fair Market Value”
means with respect to Shares:

 

(i)          If
the Shares are listed on any established stock exchange or a national market system, their Fair Market Value shall be the closing
sales price for the Shares, or the mean between the high bid and low asked prices if no sales were reported, as quoted on such
system or exchange (or, if the Shares are listed on more than one exchange, then on the largest such exchange) for the date the
value is to be determined (or if there are no sales or bids for such date, then for the last preceding business day on which there
were sales or bids), as reported in The Wall Street Journal .

 

(ii)         If
the Shares are regularly quoted by a recognized securities dealer but selling prices are not reported, or if there is no secondary
trading market for the Shares, their Fair Market Value shall be determined in good faith by the Board.

 

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“Grant Date” has
the meaning set forth in Section 5.1(c).

 

“Non-Employee Director”
means a person who is a Director of the Company, but who is not also an employee or officer of the Company or the Advisor.

 

“Participant”
means an eligible person who is granted an Award.

 

“Person” means
an individual, a corporation, partnership, trust, association, or any other entity.

 

“Plan” means this
Employee and Director Incentive Restricted Share Plan.

 

“Restricted Shares”
means an Award granted under Section 5.2.

 

“Retainer” has
the meaning given it in Section 6.3.

 

“Rule 16b-3” means
Rule 16b-3 adopted under Section 16(b) or any successor rule, as it may be amended from time to time, and references to paragraphs
or clauses of Rule 16b-3 refer to the corresponding paragraphs or clauses of Rule 16b-3 as it exists at the Effective Date or the
comparable paragraph or clause of Rule 16b-3 or successor rule, as that paragraph or clause may thereafter be amended.

 

“Section 16(b)”
means Section 16(b) of the Exchange Act.

 

“Section 409A of
the Code” means the nonqualified deferred compensation rules under Section 409A of the Code and any applicable Treasury
regulation or other official guidance promulgated thereunder.

 

“Securities Act”
means the Securities Act of 1933, as amended from time to time.

 

“Shares” means
common shares of capital stock of the Company, $0.01 par value per share.

 

SECTION 2.        ELIGIBLE
PERSONS

 

Every person who, at or as of the Grant
Date, is:

 

(a)          a
full-time employee of the Advisor, the Company or any Affiliate of the Company;

 

(b)          an
officer of the Company, the Advisor or any Affiliate of the Company, including the Advisor;

 

(c)          a
Director of the Company;

 

(d)          a
director of the Advisor or any Affiliate of the Company; or

 

(e)          someone
whom the Board designates as eligible for an Award because the person:

 

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(i)          performs
bona fide consulting or advisory services for the Company, the Advisor or any Affiliate of the Company pursuant to a written agreement
(other than services in connection with the offer or sale of securities in a capital-raising transaction), and

 

(ii)         has
a direct and significant effect on the financial development of the Company or any Affiliate of the Company,

 

shall be eligible to receive Awards hereunder.

 

Directors of the Company who are not full-time employees are
only eligible to receive Director Shares under Section 6.

 

SECTION 3.         SHARES
SUBJECT TO THIS PLAN

 

The total number of Shares that may be issued
under Awards shall not exceed 5.0% of the Company’s outstanding Shares on a fully diluted basis at any time and in any event
will not, exceed 4,000,000 Shares. The number of Shares reserved for issuance under this Plan is subject to adjustment in accordance
with the provisions for adjustment in Section 5.1. If any Shares awarded under this Plan are forfeited for any reason, the
number of forfeited Shares shall again be available for purposes of granting Awards under this Plan.

 

SECTION 4.         ADMINISTRATION

 

4.1          Administration.
This Plan shall be administered by the Committee.

 

4.2          Committee’s
Powers. Subject to the express provisions of this Plan, the Committee shall have the authority, in its sole discretion:

 

(a)          to
adopt, amend and rescind administrative and interpretive rules and regulations relating to this Plan;

 

(b)          to
determine the eligible persons to whom, and the time or times at which, Awards shall be granted;

 

(c)          to
determine the number of Shares that shall be the subject of each Award;

 

(d)          to
determine the terms and provisions of each Award (which need not be identical) and any amendments thereto, including provisions
defining or otherwise relating to:

 

(i)          the
extent to which the transferability of Shares issued or transferred pursuant to any Award is restricted;

 

(ii)         the
effect of Employment Termination on an Award;

 

(iii)        the
effect of approved leaves of absence; and

 

(iv)        to
construe the respective Award Agreements and this Plan.

 

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(e)          to
make determinations of the Fair Market Value of Shares;

 

(f)          to
waive any provision, condition or limitation set forth in an Award Agreement;

 

(g)          to
delegate its duties under this Plan to such agents as it may appoint from time to time; and

 

(h)          to
make all other determinations, perform all other acts and exercise all other powers and authority necessary or advisable for administering
this Plan, including the delegation of those ministerial acts and responsibilities as the Committee deems appropriate.

 

The Committee may correct any defect, supply
any omission or reconcile any inconsistency in this Plan, in any Award or in any Award Agreement in the manner and to the extent
it deems necessary or desirable to implement this Plan, and the Committee shall be the sole and final judge of that necessity or
desirability. The determinations of the Committee on the matters referred to in this Section 4.2 shall be final and conclusive.
Notwithstanding any provision in this Plan to the contrary, Awards will be made to Non-Employee Directors only under Section
6 of this Plan. In addition, except as provided in Section 5.1(b) herein, the Committee may not in any manner exercise
discretion under this Plan with respect to any Awards made to Non-Employee Directors.

 

4.3          Term
of Plan. No Awards shall be granted under this Plan after 10 years from the Effective Date of this Plan.

 

SECTION 5.         CERTAIN
TERMS AND CONDITIONS OF AWARDS

 

5.1          All
Awards. All Awards shall be subject to the following terms and conditions:

 

(a)          Changes
in Capital Structure. If the number of outstanding Shares is increased by means of a share dividend payable in Shares, a share
split or other subdivision or by a reclassification of Shares, then, from and after the record date for such dividend, subdivision
or reclassification, the number and class of Shares subject to this Plan shall be increased in proportion to such increase in outstanding
Shares. If the number of outstanding Shares is decreased by means of a reverse share split or other combination or by a reclassification
of Shares, then, from and after the record date for such combination or reclassification, the number and class of Shares subject
to this Plan shall be decreased in proportion to such decrease in outstanding Shares.

 

(b)          Certain
Corporate Transactions In the event of any change in the capital structure or business of the Company by reason of any recapitalization,
reorganization, merger, consolidation, split-up, subdivision, combination, exchange of Shares or any similar change affecting the
Company’s capital structure or business, then the aggregate number and kind of Shares which thereafter may be issued under
this Plan shall be appropriately adjusted consistent with such change in such manner as the Committee or the Board may deem equitable
to prevent substantial dilution or enlargement of the rights granted to, or available for, Participants under this Plan, and any
such adjustment determined by the Committee or the Board in good faith shall be binding and conclusive on the Company and all Participants
and employees and their respective heirs, executors, administrators, successors and assigns.

 

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(c)          Grant
Date. Each Award Agreement shall specify the date as of which it shall be effective (the “Grant Date”).

 

(d)          Vesting.
Each Award shall vest, and any restrictions thereunder shall lapse, as the case may be, at such times and in such amounts as may
be specified by the Committee in the applicable Award Agreement.

 

(e)          Nonassignability
of Rights. Awards shall not be transferable other than with the consent of the Committee or the Board or by will or the laws
of descent and distribution.

 

(f)           Termination
of Employment from the Company, the Advisor or any Affiliate of the Company or Termination of the Advisory Agreement. The Committee
shall establish, in respect of each Award when granted, the effect of an Employment Termination or Termination of the Advisory
Agreement on the rights and benefits thereunder and in so doing may, but need not, make distinctions based upon the cause of termination
(such as retirement, death, disability or other factors) or which party effected the termination (the employer, the employee or
the Advisor).

 

(g)          Minimum
Purchase Price. Notwithstanding any provision of this Plan to the contrary, if authorized but previously unissued Shares are
issued under this Plan, such Shares shall not be issued for a consideration which is less than as permitted under Applicable Law,
and in no event, shall such consideration be less than the par value per Share multiplied by the number of Shares to be issued.

 

(h)          Other
Provisions. Each Award Agreement may contain such other terms, provisions and conditions not inconsistent with this Plan, as
may be determined by the Committee.

 

5.2          Restricted
Shares. Restricted Shares shall be subject to the following terms and conditions:

 

(a)          Grant.
The Committee may grant one or more Awards of Restricted Shares to any Participant other than Non-Employee Directors. Each Award
of Restricted Shares shall specify the number of Shares to be issued to the Participant, the date of issuance and the restrictions
imposed on the Shares including the conditions of release or lapse of such restrictions. Upon the issuance of Restricted Shares,
the Participant may be required to furnish such additional documentation or other assurances as the Committee may require to enforce
restrictions applicable thereto.

 

(b)         Restrictions.
Except as specifically provided elsewhere in this Plan or the Award Agreement regarding Restricted Shares, Restricted Shares may
not be sold, assigned, transferred, pledged or otherwise disposed of or encumbered, either voluntarily or involuntarily, until
the restrictions have lapsed and the rights to the Shares have vested. The Committee may in its sole discretion provide for the
lapse of such restrictions in installments and may accelerate or waive such restrictions, in whole or in part, based on service,
performance or such other factors or criteria as the Committee may determine.

 

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(c)          Dividends.
Unless otherwise determined by the Committee, cash dividends with respect to Restricted Shares shall be paid to the recipient of
the Award of Restricted Shares on the normal dividend payment dates, and dividends payable in Shares shall be paid in the form
of Restricted Shares having the same terms as the Restricted Shares upon which such dividend is paid. Each Award Agreement for
Awards of Restricted Shares shall specify whether and, if so, the extent to which the Participant shall be obligated to return
to the Company any cash dividends paid with respect to any Restricted Shares which are subsequently forfeited.

 

(d)          Forfeiture
of Restricted Shares. Except to the extent otherwise provided in the applicable Award Agreement, when a Participant’s
Employment Termination occurs, the Participant shall automatically forfeit all Restricted Shares still subject to restriction.

 

SECTION 6.         DIRECTOR
SHARES

 

6.1          Automatic
Grant. Non-Employee Directors shall receive 1,333 Restricted Shares on the date of such Non-Employee Director’s initial
election to the Board and on the date of each annual stockholders’ meeting.

 

6.2          Vesting.
Notwithstanding the provisions of Section 5.1(d), Awards of Restricted Shares made to Non-Employee Directors shall vest
over a five-year period following the first anniversary of the Grant Date in increments of 20% per annum.

 

6.3          Election.
The Company shall pay to each individual who is a Non-Employee Director an annual fee in the amount set from time to time by the
Board (the “Retainer”). Each Non-Employee Director shall be entitled to receive his or her Retainer exclusively
in cash, exclusively in unrestricted Shares (“Director Shares”) or any portion in cash and Director Shares.
Following the approval of this Plan by the stockholders of the Company, each Non-Employee Director shall be given the opportunity,
during the month in which the Non-Employee Director first becomes a Non-Employee Director, and during each December thereafter,
to elect among these choices for the balance of the calendar year (in the case of the election made during the month the Non-Employee
Director first becomes a Non-Employee Director) and for the ensuing calendar year (in the case of a subsequent election made during
any December). If the Non-Employee Director chooses to receive at least some of his or her Retainer in Director Shares, the election
shall also indicate the percentage of the Retainer to be paid in Director Shares. If a Non-Employee Director makes no election
during his or her first opportunity to make an election, the Non-Employee Director shall be assumed to have elected to receive
his or her entire Retainer in cash.

 

6.4          Issuance.
The Company shall make the first issuance of Director Shares to electing Directors on the first business day following the last
day of the full calendar quarter following the approval of this Plan by the Company’s stockholders. Subsequent issuances
of Director Shares shall be made on the first business day of each subsequent calendar quarter and shall be made to all persons
who are Non-Employee Directors on that day except any Non-Employee Director whose Retainer is to be paid entirely in cash. The
number of Shares issuable to those Non-Employee Directors on the relevant date indicated above shall equal:

 

(% x R/4)/P, where:

 

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% = the percentage of the Non-Employee Director’s
Retainer that the Non-Employee Director elected or is deemed to have elected to receive in the form of Director Shares, expressed
as a decimal;

 

R = the Non-Employee Director’s Retainer
for the year during which the issuance occurs; and

 

P = the Fair Market Value.

 

Director Shares shall not include any fractional Shares. Fractions
shall be rounded to the nearest whole Share (with one-half being rounded upward).

 

SECTION 7.         SECURITIES
LAWS

 

Nothing in this Plan or in any Award or
Award Agreement shall require the Company to issue any Shares with respect to any Award if, in the opinion of counsel for the Company,
that issuance could constitute a violation of any Applicable Laws. As a condition to the grant of any Award, the Company may require
the Participant (or, in the event of the Participant’s death, the Participant’s legal representatives, heirs, legatees
or distributees) to provide written representations concerning the Participant’s (or such other person’s) intentions
with regard to the retention or disposition of the Shares covered by the Award and written covenants as to the manner of disposal
of such Shares as may be necessary or useful to ensure that the grant or disposition thereof will not violate the Securities Act,
any other law or any rule of any applicable securities exchange or securities association then in effect. The Company shall not
be required to register any Shares under the Securities Act or register or qualify any Shares under any state or other securities
laws.

 

SECTION 8.         EMPLOYMENT
OR OTHER RELATIONSHIP

 

Nothing in this Plan or any Award shall
in any way interfere with or limit the right of the Company, the Advisor or any Affiliate of the Company to terminate any Participant’s
employment or status as a consultant or Director at any time, nor confer upon any Participant any right to continue in the employ
of, or as a Director or consultant of, the Company, the Advisor or any Affiliate of the Company. Nothing in this Plan shall interfere
with the Company’s ability to terminate the Advisory Agreement.

 

SECTION 9.         AMENDMENT,
SUSPENSION AND TERMINATION OF THIS PLAN

 

The Board may at any time amend, suspend
or discontinue this Plan, provided that such amendment, suspension or discontinuance meets the requirements of Applicable Laws,
including without limitation, any applicable requirements for stockholder approval. Notwithstanding the above, an amendment, suspension
or discontinuation shall not be made if it would impair the rights of any Participant under any Award previously granted, without
the Participant’s consent, except to conform this Plan and Awards granted to the requirements of Applicable Laws. The provisions
of this Plan relating to Awards for Non-Employee Directors may not be amended more than once each six months. Notwithstanding any
provision of the Plan to the contrary, if the Board determines that any Award may be subject to Section 409A of the Code, the Board
may adopt such amendment to the Plan and the applicable Award Agreement or adopt other policies and procedures (including amendments,
policies and procedures with retroactive effect), or take any other actions that the Board determines are necessary or appropriate,
without the consent of the Participant, to (a) exempt the Award from Section 409A of the Code and/or preserve the intended tax
treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code.

 

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SECTION 10.       LIABILITY
AND INDEMNIFICATION OF THE BOARD

 

No person constituting, or member of the
group constituting, the Board shall be liable for any act or omission on such person’s part, including but not limited to
the exercise of any power or discretion given to such member under this Plan, except for those acts or omissions resulting from
such member’s gross negligence or willful misconduct. The Company shall indemnify each present and future person constituting,
or member of the group constituting, the Board against, and each person or member of the group constituting the Board shall be
entitled without further act on his or her part to indemnity from the Company for, all expenses (including the amount of judgments
and the amount of approved settlements made with a view to the curtailment of costs of litigation) reasonably incurred by such
person in connection with or arising out of any action, suit or proceeding to the fullest extent permitted by law and by the Articles
of Incorporation and Bylaws of the Company.

 

SECTION 11.       SEVERABILITY

 

If any provision of this Plan is held to
be illegal or invalid for any reason, that illegality or invalidity shall not affect the remaining portions of this Plan, but such
provision shall be fully severable and this Plan shall be construed and enforced as if the illegal or invalid provision had never
been included in this Plan. Such an illegal or invalid provision shall be replaced by a revised provision that most nearly comports
to the substance of the illegal or invalid provision. If any of the terms or provisions of this Plan or any Award Agreement conflict
with the requirements of Applicable Laws, those conflicting terms or provisions shall be deemed inoperative to the extent they
conflict with Applicable Law.

 

SECTION 12.       SECTION
409A OF THE CODE

 

Awards granted under the Plan are intended
to be exempt from Section 409A of the Code. To the extent that the Plan is not exempt from the requirements of Section 409A of
the Code, the Plan is intended to comply with the requirements of Section 409A of the Code and shall be limited, construed and
interpreted in accordance with such intent. Notwithstanding the foregoing, in no event whatsoever shall the Company be liable for
any additional tax, interest or penalty that may be imposed on a Participant by Section 409A of the Code or any damages for failing
to comply with Section 409A of the Code.

 

SECTION 13.       WITHHOLDING

 

The Company shall have the right to deduct
from any payment to be made to a Participant, or to otherwise require, prior to the issuance or delivery of any Shares or the payment
of any cash hereunder, payment by the Participant of, any federal, state or local taxes required by law to be withheld. Upon the
vesting of Restricted Shares, or upon making an election under Section 83(b) of the Code, a Participant shall pay all required
withholding to the Company. The Board may permit any such statutory withholding obligation with regard to any Participant to be
satisfied by reducing the number of Shares otherwise deliverable or by delivering Shares already owned.

 

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SECTION 14.       GOVERNING
LAW

 

This Plan shall be governed and construed
in accordance with the laws of the State of Maryland (regardless of the law that might otherwise govern under applicable principles
of conflict of laws).

 

SECTION 15.       EFFECTIVE
DATE AND PROCEDURAL HISTORY

 

This Plan was originally approved by the
Company’s Board on February 7, 2013 (the “Effective Date”). It was approved in that form by the
holders of the Company’s voting Shares on February 7, 2013.

 

    	10Mr. Nick Radesca	February 4, 2013
	Chief Financial Officer and Treasurer	 
	ARC Realty Finance Trust, Inc. 405 Park	 
	Ave - 15th Floor	 
	New York, NY 10022	 

 

Re: Engagement Letter for Duff & Phelps’ Professional
Services 

 

Dear Mr. Radesca

 

This Letter of Engagement confirms that we, Duff & Phelps,
LLC (“D&P”), have been retained by you, ARC Realty Finance Trust, Inc. (the “Company”) to provide the
services (the “Services”) set out below in connection with the valuation of commercial mortgage loans (hereafter referred
to as the “Subject Loans”) on a quarterly basis (the “Valuation Dates”) commencing within six months of
the two-year anniversary of the date that the Company’s applicable public offering is deemed effective by the Securities
and Exchange Commission. Collectively, this arrangement is referenced to as our “Engagement.” The Subject Loans are
future acquisitions of commercial real estate mortgages secured by real estate located across the United States and Europe.

 

It is understood that the purpose of the Services will be to
estimate the “as is” market value of the Subject Loans. The intended use by the Company for the valuation is to provide
a basis for valuation of net asset value as described in the Company’s registration statement on Form S-11, as amended from
time to time (the “Registration Statement”).

 

Valuation Approaches/Premises

 

We will utilize standard and accepted appraisal methodology
in arriving at our opinions of value. This would include primarily, the Income Approach to value. The Income Approach to value
simulates the reasoning of an investor who views the cash flows that would result from the anticipated net revenue from the loan
throughout its term. This net revenue is discounted to a present value via discounted cash flow methodology.

 

Procedures

 

		·	We will complete a desktop valuation of all loans contained within the trust as of the end of each
quarter (March 31, June 30, September 31, December 31) updating the values previously concluded upon for the loans which have been
held since our previous valuation. We will rely upon the contractual loan payments provided for these assets on an individual or
master loan basis to provide our value conclusion.

 

Duff
& Phelps, LLC            T +1 312 697 4740   ross.prindle@duffandphelps.com

311 South Wacker Drive     F +1 312
265 3581   www.duffandphelps.com

Suite 4200

Chicago, IL

60606

 

    	 

    	 

    

 

		·	We will incorporate any additional loans which have been acquired since this time period into our
overall analysis and will complete desktop valuations on these loans using the same methodology.

 

		·	We will provide a brief discussion of notable economic and market dynamics which have affected
our capital market assumptions for our Discounted Cash Flow approach.

 

Form of Report and Timetable

 

At the conclusion of our analysis, we will provide you with
a narrative report (the “Report”) with supporting exhibits containing calculations leading to our value conclusions.
The report will be prepared in accordance with the Code of Professional Ethics and Standards of Professional Practice set for the
by the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice (USPAP) as adopted by the Appraisal Foundation.

 

We are ready to begin our work immediately upon our receipt
of this signed Engagement and upon receipt of information provided in conjunction with an agreed upon timetable considering the
various valuation dates. Once you have read the draft Report, we will issue our final Report bearing the firm’s signature.

 

We will work with the Company to arrive at a workable timetable
for delivery of the valuation conclusions and quarterly Report.

 

Staffing and Fees

 

Ross Prindle, CRE, MAI will be the Managing Director in charge
of the Services on behalf of D&P. Ross is the Managing Director in charge of the global Real Estate Services Group at Duff
& Phelps. Ross will call upon additional experienced staff when required.

 

Our fees for the Services to be provided reflect the complexity
of the Engagement, the time scale for its completion, the caliber of staff engaged, and the value of the Services provided. Our
estimated fees will depend on the assets acquired and as loans have not been acquired as of the writing of this engagement letter,
fees will be determined at a later date. Generally, our fees will be $1,500 to $2,000 for each individual loan (not including multi-property
loans) and our quarterly updates will be 25 percent of the initial fee charged. These fees are estimates at this time as of the
date of this letter no loans have been acquired by the Company.

 

    	 

    	 

    

 

Acknowledgement and Acceptance

 

In accordance with D&P policy, it is necessary that we receive
an executed copy of this Engagement Letter and the attached Terms and Conditions (to which this Engagement is subject) prior to
commencement of the Services. If the scope and terms of the Engagement Letter and the attached Terms and Conditions are acceptable,
please acknowledge your acceptance by signing the confirmation below and returning this Letter to us at the above address and emailing
ross.prindle@duffandphelps.com  or by fax at 312-265-3581.

 

Please do not hesitate to contact me if you have any questions
or amendments.

 

Yours sincerely,

 

	By:	/s/ Ross Prindle	 
	 	Ross Prindle, MAI, CRE	 
	 	Managing Director	 

 

Confirmation of Terms of Engagement

 

Having read this Engagement Letter from Duff &
Phelps, LLC and the attached Terms and Conditions, the Company acknowledges acceptance of and agree to engage Duff & Phelps,
LLC in accordance with the terms and provisions of this Engagement Letter and the attached Terms and Conditions.

 

/s/Nicholas Radesca, Chief Financial Officer and Treasurer
    Date:        February 4, 2013

 

	Signed:	Nicholas Radesca
	On behalf of:	ARC Realty Finance Trust, Inc.

 

    	 

    	 

    

 

Attachment to the Engagement Letter

 

Terms and Conditions

 

The following are the Terms and Conditions
on which Duff & Phelps will provide the Services set forth in the attached Engagement Letter. Together, the Terms and Conditions
and the Engagement Letter are referred to as the “Contract,” which forms the entire agreement between Duff &
Phelps and the Company relating to the Services.

 

Fees

 

		1.	Duff & Phelps’ invoices are payable upon receipt. If we do not receive payment of any
invoice within forty-five (45) days of the invoice date, we shall be entitled, without prejudice to any other rights that we may
have, to suspend provision of the Services until all sums due are paid in full. Under no circumstances can Duff & Phelps issue
its final Report with any billings that remain outstanding.

 

		2.	If any amounts payable hereunder are not paid within thirty (30) days when due, such amounts shall
accrue interest at a rate equal to the lesser of two percent (2%) per month or the highest interest rate allowed under the law
of New York. In the event that we are required to initiate a lawsuit or hire attorneys to collect any past due amounts, in addition
to any other rights and remedies available to us, Duff & Phelps shall be entitled to reimbursement of its attorney’s
fees and other costs of collection.

 

		3.	Other than as set forth in the Company’s Registration Statement we have no responsibility
to update any opinion, report, analysis or any other document relating to this Engagement for any events or circumstances occurring
subsequent to the date of such opinion, report, analysis or other document. Any such subsequent consultations or work shall be
subject to arrangements at Duff & Phelps’ then standard fees plus expenses.

 

		4.	Either party may request changes to the Services. We shall work with you to consider and, if appropriate,
to vary any aspect of the Engagement, subject to payment of reasonable additional fees and a reasonable additional period to provide
any additional services. Any variation to this Contract, including any variation to fees, services, or time for performance of
the Services, shall be set forth in a separate engagement letter executed by both parties which shall form part of this Contract.

 

		5.	Duff & Phelps’ performance of the Services is dependent upon you providing us with accurate
and timely information and assistance as we may reasonably require from time to time. You shall use reasonable skill, care and
attention to ensure that all information we may reasonably require is provided on a timely basis and is accurate and complete.
You shall notify us if you subsequently learn that the information provided is inaccurate or otherwise should not be relied upon.
The inability to supply Duff & Phelps with the agreed upon information in a useable form within the amount of time reasonably
required by Duff & Phelps may increase fees and delay completion. Additionally, in the event unforeseen complications are encountered
which would significantly increase fees; we would discuss these with you and await your approval before proceeding.

 

    	 

    	 

    

 

Termination

 

		6.	The initial term of this Contract shall be for one year, which shall be deemed to be automatically
renewed unless either Duff & Phelps or the Company provides prior written notice of no less than ninety (90) days of such party’s
election to terminate this Contract.

 

		7.	Upon termination of this Contract, each party shall, upon written request from the other, return
to the other all property and documentation of the other that is in its possession, except that we shall be entitled to retain
one copy of such documents in order to maintain a professional record of Duff & Phelps’ involvement in the Engagement,
subject to Duff & Phelps’ continuing confidentiality obligations hereunder.

 

		8.	The provisions included within “Fees”, “Preservation of Confidential Information”
and “Other Terms and Provisions” shall survive the termination or expiration of this Contract.

 

Valuation Work Products and Report

 

		9.	You acknowledge that Duff & Phelps will use and rely upon the financial and other information,
including prospective financial information, provided by the Company. Duff & Phelps’ conclusion is dependent on such
information being complete and accurate in all material respects. We assume no responsibility and make no representations as to
the accuracy and completeness of such provided information. In addition, we will not independently verify any information that
we obtain from public or other sources. There will usually be differences between estimated and actual results because events and
circumstances frequently do not occur as expected, and those differences may be material. You acknowledge that no reliance shall
be placed on draft Reports, conclusions or advice, whether oral or written, issued by us since the same may be subject to further
work, revision and other factors which may mean that such drafts are substantially different from any final Report or advice issued.

 

		10.	Any advice given or Report issued by us is provided solely for your use and benefit and only in
connection with the Services that are provided hereunder. You agree to obtain Duff & Phelps’ written consent which Duff
& Phelps may at its discretion grant, withhold, or grant subject to conditions, before disclosing any of Duff & Phelps’s
advice, analysis or Report to anyone else, or otherwise making reference to its role, whether orally or in writing; provided, however,
that no prior written consent shall be required in connection with any federal or state regulatory or governmental inquiry or proceeding,
pursuant to applicable law or in connection with any request by a third due diligence firm (subject to such due diligence firm
entering into a customary release letter in form and substance satisfactory to Duff & Phelps). When Duff & Phelps gives
such consent, it is subject to the prior approval of Duff & Phelps of such disclosure. Further, you shall not provide such
Report to any third party without the third party first executing a standard Duff & Phelps Release Letter. In no event, regardless
of whether consent or pre-approval has been provided, shall we assume any responsibility to any third party to which any advice
or Report is disclosed or otherwise made available.

 

		11.	It is understood and agreed that the final Report resulting from this Engagement shall remain your
property. To the extent that Duff & Phelps utilizes any of its property (including, without limitation, any hardware or software)
in connection with this Engagement, such property shall remain the property of Duff & Phelps, and you shall not acquire any
right or interest in such property or in any partially completed Report. We shall have ownership (including, without limitation,
copyright ownership) and all rights to use and disclose Duff & Phelps’ ideas, concepts, know-how, methods, techniques,
processes and skills, and adaptations thereof in conducting its business (collectively, “Know-How”) regardless
of whether such Know-How is incorporated in any way in the final Report.

 

    	 

    	 

    

 

		12.	The scope of the final Report we will provide pursuant to the terms of this Contract will be limited
to the scope as described in the Scope of Services section. One or more additional issues may exist that could affect the Federal
tax treatment of the subject matter of Duff & Phelps’ final Report. Duff & Phelps’ final Report will not consider
or provide a conclusion with respect to any of those issues. With respect to any significant Federal tax issue outside the scope
of the final Report, the final Report will not be written, and cannot be used, by anyone for the purpose of avoiding Federal tax
penalties.

 

		13.	The Report or any results of Duff & Phelps’ Services shall not constitute a Solvency
Opinion or a Fairness Opinion and may not be relied upon by you or any other party as such. Furthermore, any analyses we perform
should not be taken to supplant any procedures that you should undertake in your consideration of any transaction or investment,
and you acknowledge and agree that any decision relating to, or whether or not to enter into, any transaction or make any investment
decision is solely the responsibility of Company management.

 

		14.	By its very nature, valuation work cannot be regarded as an exact science and the conclusions arrived
at in many cases will of necessity be subjective and dependent on the exercise of individual judgment.

 

Preservation of Confidential Information

 

		15.	Neither Duff & Phelps nor the Company will disclose to any third party without the prior written
consent of the other party any confidential information which is received from the other party for the purposes of providing or
receiving the Services which if disclosed in tangible form is marked confidential or if disclosed otherwise is confirmed in writing
as being confidential or, if disclosed in tangible form or otherwise, is manifestly confidential; it being understood that the
reports prepared by Duff & Phelps for the Company shall not be considered confidential information for purposes herein. Duff
& Phelps and the Company agree that any confidential information received from the other party shall only be used for the purposes
of providing or receiving the Services under this or any other contract between Duff & Phelps and the Company.

 

		16.	These restrictions will not apply to any information which: (a) is or becomes generally available
to the public other than as a result of a breach of an obligation by the receiving party; (b) is acquired from a third party who
owes no obligation of confidence with respect to the information; or (c) is or has been independently developed by the recipient.

 

		17.	Notwithstanding the foregoing, either party will be entitled to disclose confidential information
of the other (i) to Duff & Phelps’ or the Company’s respective insurers or legal advisors, or (ii) to a third party
to the extent that this is required, by any court of competent jurisdiction, or by a governmental or regulatory authority or where
there is a legal right, duty or requirement to disclose, provided that (and without breaching any legal or regulatory requirement)
where reasonably practicable not less than two (2) business days’ notice in writing is first given to the other party.

 

    	 

    	 

    

 

Other Terms and Provisions

 

		18.	Except in the event of Duff & Phelps’ willful misconduct or fraud, in no event shall
we be liable to you (or any person claiming through you) under this Contract, under any legal theory, for any amount in excess
of the total professional fees paid by you to us under this Contract or any addendum to which the claim relates. In no event shall
we be liable to you under this Contract under any legal theory for any consequential, indirect, lost profit or similar damages
relating to or arising from Duff & Phelps’ Services provided under this Contract.

 

		19.	You accept and acknowledge that any legal proceedings arising from or in connection with this Contract
(or any variation or addition thereto) must be commenced within one (1) year from the date when you become aware of or ought reasonably
to have become aware of the facts, which give rise to Duff & Phelps’ alleged liability. You also agree that no action
or claims will be brought against any Duff & Phelps employees personally.

 

		20.	You agree to indemnify and hold harmless Duff & Phelps, its affiliates and their respective
employees from and against any and all third party claims, liabilities, losses, costs, demands and reasonable expenses, including
but not limited to reasonable legal fees and expenses, internal management time and administrative costs, relating to Services
we render under this Contract or otherwise arising under this Contract. The foregoing indemnification obligations shall not apply
in the event that a court of competent jurisdiction finally determines that such claims resulted directly from the gross negligence,
willful misconduct or fraudulent acts of Duff & Phelps.

 

		21.	You accept and acknowledge that we have not made any warranties or guarantees, whether express
or implied, with respect to the Services or the results that you may obtain as a result of the provision of the Services.

 

		22.	Except for the Company’s payment obligations, neither Duff & Phelps nor the Company will
be liable to the other for any delay or failure to fulfill obligations caused by circumstances outside our reasonable control.

 

		23.	This Contract constitutes the entire agreement between the parties hereto regarding the subject
matter hereof and supersedes any prior agreements (whether written or oral) between the parties regarding the subject matter hereof.
This Contract may be executed in any number of counterparts each of which shall be an original, but all of which together shall
constitute one and the same instrument.

 

		24.	Duff & Phelps reserves the right to use your name and a description of the nature of the Engagement
in general marketing materials.

 

		25.	This Contract shall be governed by and interpreted in accordance with the internal laws of the
State of New York and the courts of the State of New York shall have exclusive jurisdiction in relation to any claim arising out
of this Contract.

 

		26.	Duff & Phelps acknowledges that (A) its valuations will be used or incorporated into the Company’s
Registration Statement and periodic filings; (B) Duff & Phelps will be named as an expert in the Registration Statement; (C)
Duff & Phelps will provide a consent of independent valuer in form satisfactory to the Company and Duff & Phelps to be
attached as an exhibit to the Registration Statement under Exhibit 99; and (D) Duff & Phelps’ provision of the aforementioned
consent is subject to the Company providing Duff & Phelps a commercially reasonable opportunity to review and consent to references
to Duff & Phelps in any regulatory filings which require Duff & Phelps to be named as an expert.

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