Document:

Exhibit 10.1

 

Execution Version

 

THIRD AMENDED AND RESTATED

 

ADVISORY AGREEMENT

 

BY AND AMONG

 

AMERICAN FINANCE TRUST, INC.,

 

AMERICAN FINANCE OPERATING PARTNERSHIP,
L.P.,

 

AND

 

AMERICAN FINANCE ADVISORS, LLC

 

Dated as of September 6, 2016

 

     

     

    

 

TABLE OF CONTENTS

 

	
	 	Page
	1.	DEFINITIONS	2
	 	 	 
	2.	APPOINTMENT	12
	 	 	 
	3.	DUTIES OF THE ADVISOR	12
	 	 	 
	4.	AUTHORITY OF ADVISOR	14
	 	 	 
	5.	FIDUCIARY RELATIONSHIP	15
	 	 	 
	6.	NO PARTNERSHIP OR JOINT VENTURE	15
	 	 	 
	7.	BANK ACCOUNTS	15
	 	 	 
	8.	RECORDS; ACCESS	15
	 	 	 
	9.	LIMITATIONS ON ACTIVITIES	15
	 	 	 
	10.	FEES	16
	 	 	 
	11.	EXPENSES	18
	 	 	 
	12.	OTHER SERVICES	20
	 	 	 
	13.	OTHER ACTIVITIES OF THE ADVISOR	20
	 	 	 
	14.	THE AMERICAN REALTY CAPITAL NAME	21
	 	 	 
	15.	TERM OF AGREEMENT	21
	 	 	 
	16.	TERMINATION BY THE PARTIES	22
	 	 	 
	17.	ASSIGNMENT	22
	 	 	 
	18.	PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION	22
	 	 	 
	19.	INCORPORATION OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT	24
	 	 	 
	20.	INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP	24
	 	 	 
	21.	INDEMNIFICATION BY ADVISOR	26

 

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	22.	NOTICES	26
	 	 	 
	23.	MODIFICATION	27
	 	 	 
	24.	SEVERABILITY	27
	 	 	 
	25.	COMPANY EXISTING PROPERTY MANAGEMENT AND LEASING AGREEMENT; COMPANY ADDITIONAL AGREEMENTS	27
	 	 	 
	26.	GOVERNING LAW	27
	 	 	 
	27.	ENTIRE AGREEMENT	28
	 	 	 
	28.	NO WAIVER	28
	 	 	 
	29.	EFFECTIVENESS OF THIRD AMENDED AND RESTATED ADVISORY AGREEMENT	28
	 	 	 
	30.	PRONOUNS AND PLURALS	28
	 	 	 
	31.	HEADINGS	28
	 	 	 
	32.	EXECUTION IN COUNTERPARTS	28

 

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ADVISORY AGREEMENT

 

THIS THIRD AMENDED AND RESTATED ADVISORY
AGREEMENT (this “Agreement”) dated as of September 6, 2016, is entered into among American Finance Trust, Inc.,
a Maryland corporation (the “Company”), American Finance Operating Partnership, L.P., a Delaware limited partnership
(the “Operating Partnership”), and American Finance Advisors, LLC, a Delaware limited liability company.

 

WITNESSETH

 

WHEREAS, the Company is a Maryland corporation
created in accordance with Maryland General Corporation Law;

 

WHEREAS, the Company is the general partner
of the Operating Partnership;

 

WHEREAS, the Company and the Operating Partnership
desire to avail themselves of the experience, sources of information, advice, assistance and certain facilities of 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;

 

WHEREAS, the Advisor is willing 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;

 

WHEREAS, the Company, the Operating Partnership
and the Advisor (i) entered into that certain Advisory Agreement, dated as of April 4, 2013 (the “Original Agreement”),
(ii) amended and restated the Original Agreement on June 5, 2013 and as amended April 15, 2015 (the “Amended and Restated
Advisory Agreement”) and (iii) amended and restated the Amended and Restated Advisory Agreement on April 29, 2015 (as
amended by the First Amendment to Second Amended and Restated Advisory Agreement, dated as of January 18, 2016, the “Second
Amended and Restated Advisory Agreement”);

 

WHEREAS, as of the
date hereof, the Company and the Operating Partnership have entered into the Agreement and Plan of Merger (the “Merger
Agreement”) with Genie Acquisition, LLC, American Realty Capital – Retail Centers of America, Inc. and American
Realty Capital Retail Operating Partnership, L.P.; and

 

WHEREAS, in connection with the Merger Agreement,
the Company, the Operating Partnership and the Advisor desire to amend and restate the Second Amended and Restated Advisory Agreement
with the effectiveness conditioned on, subject to, and only at, the Effective Time (as defined in the Merger Agreement, and such
date being the “Effective Date”), and in the event that Closing (as defined in the Merger Agreement) does not
occur or the Merger Agreement is terminated, then this Third Amended and Restated Advisory Agreement shall not take effect and
the Second Amended and Restated Advisory Agreement shall continue in full force and effect;  

 

     

     

    

 

NOW, THEREFORE, in consideration of the
foregoing and of the mutual covenants and agreements contained herein, the parties hereto, intending to be legally bound as of
the Effective Date, hereby agree as follows:

 

1.          DEFINITIONS.
As used in this Agreement, the following terms have the definitions set forth below:

 

“Acquisition Expenses”
means any and all expenses, incurred by the Company, the Operating Partnership, the Advisor or any of their Affiliates
in connection with the selection, evaluation, acquisition, origination, making or development of any Investments, whether or not
acquired, including, without limitation, legal fees and expenses, travel and communications expenses, brokerage fees, costs of
appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses, title insurance premiums and
the costs of performing due diligence.

 

“Adjusted Outstanding Shares”
means, for the applicable period, the number of shares of Common Stock, OP Units and other equity-based awards, excluding restricted
stock units or any other equity based awards that are subject to performance metrics that are not currently achieved, outstanding
on a daily weighted average basis during such period, adjusted as necessary to exclude the effect of dividends or distributions
paid in shares of Common Stock, subdivision of outstanding shares of Common Stock into a greater number of shares, combination
of outstanding shares of Common Stock into a smaller number of shares, any reclassification of shares of Common Stock, repurchases
by the Company of shares of Common Stock and redemptions of shares of Common Stock.

 

“Advisor” means
American Finance Advisors, LLC, a Delaware limited liability company, any successor advisor to the Company and the Operating Partnership,
or any Person to which American Finance Advisors, LLC or any successor advisor subcontracts substantially all its functions. Notwithstanding
the foregoing, a Person hired or retained by American Finance Advisors, LLC to perform property management and related services
for the Company or the Operating Partnership that is not hired or retained to perform substantially all the functions of American
Finance Advisors, LLC with respect to the Company and the Operating Partnership as a whole shall not be deemed to be an Advisor.

 

“Affiliate” or
“Affiliated” means with respect to any Person, (i) any other Person directly or indirectly owning, controlling
or holding, with the power to vote, ten percent (10%) or more of the outstanding voting securities of such Person; (ii) any other
Person ten percent (10%) or more of whose outstanding voting securities are directly or indirectly owned, controlled or held, with
the power to vote, by such Person; (iii) any other Person directly or indirectly controlling, controlled by or under common control
with such Person; (iv) any executive officer, director, trustee or general partner of such Person; and (v) any legal entity for
which such Person acts as an executive officer, director, trustee or general partner. For purposes of this definition, the terms
“controls,” “is controlled by,” or “is under common control with” shall mean the possession,
direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through
ownership or voting rights, by contract or otherwise.

 

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“Agreement” has
the meaning set forth in the preamble, and such term shall include any amendment or supplement hereto from time to time.

 

“Amended and Restated Advisory
Agreement” has the meaning set forth in the recitals.

 

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

 

“Base Management Fee”
means the fees payable to the Advisor or its assignees pursuant to Section 10(g).

 

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

 

“By-laws” means
the by-laws of the Company, as amended and as the same are in effect from time to time.

 

“Cause”
means (i) fraud, criminal conduct, willful misconduct or illegal or negligent breach of fiduciary duty by the Advisor,
or (ii) if any of the following events occur: (A) the Advisor shall breach any material provision of this Agreement, and after
written notice of such breach, shall not cure such default within thirty (30) days or have begun action within thirty (30) days
to cure the default which shall be completed with reasonable diligence; (B) the Advisor shall be adjudged bankrupt or insolvent
by a court of competent jurisdiction, or an order shall be made by a court of competent jurisdiction for the appointment of a receiver,
liquidator, or trustee of the Advisor, for all or substantially all its property by reason of the foregoing, or if a court of competent
jurisdiction approves any petition filed against the Advisor for reorganization, and such adjudication or order shall remain in
force or unstayed for a period of thirty (30) days; or (C) the Advisor shall institute proceedings for voluntary bankruptcy or
shall file a petition seeking reorganization under the federal bankruptcy laws, or for relief under any law for relief of debtors,
or shall consent to the appointment of a receiver for itself or for all or substantially all its property, or shall make a general
assignment for the benefit of its creditors, or shall admit in writing its inability to pay its debts, generally, as they become
due.

 

“Change of Control”
means a change of control of the Company of a nature that would be required to be reported in response to the disclosure requirements
of Schedule 14A of Regulation 14A promulgated under the Exchange Act, as enacted and in force on the date hereof, whether or not
the Company is then subject to such reporting requirements; provided, however, that, without limitation, a Change
of Control shall be deemed to have occurred if: (i) any “person” (within the meaning of Section 13(d) of the Exchange
Act, as enacted and in force on the date hereof) is or becomes the “beneficial owner” (as that term is defined in Rule
13d-3, as enacted and in force on the date hereof, under the Exchange Act) of securities of the Company representing 9.8% or more
of the combined voting power of the Company’s securities then outstanding; (ii) there occurs a merger, consolidation or other
reorganization of the Company which is not approved by the Board of Directors; (iii) there occurs a sale, exchange, transfer or
other disposition of substantially all the assets of the Company to another Person, which disposition is not approved by the Board
of Directors; or (iv) there occurs a contested proxy solicitation of the Stockholders that results in the contesting party electing
candidates to a majority of the Board of Directors’ positions next up for election.

    3

     

    

 

“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.

 

“Common Stock”
means the shares of the Company’s common stock, par value $0.01 per share.

 

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

 

“Company Additional Agreements”
means, collectively, the Amended and Restated Property Management and the Amended and Restated Leasing Agreement, each executed
on the date hereof between the Company and American Finance Properties, LLC, a Delaware limited liability company, and each effective
only if and when this Third Amended and Restated Advisory Agreement becomes effective at the Effective Time as provided in Section
29 and as also provided in each such agreement.

 

“Company Existing Property Management
and Leasing Agreement” means the Amended and Restated Property Management and Leasing Agreement executed on the date
hereof among the Company, the Operating Partnership and American Finance Properties, LLC (formerly known as American Realty Capital
Properties V, LLC), a Delaware limited liability company and effective only if and when this Third Amended and Restated Advisory
Agreement becomes effective at the Effective Time as provided in Section 29 and as also provided in Section 6.13 of such
agreement.

 

“Contract Purchase Price”
means the amount actually paid for (including, without duplication, any indebtedness and fair market value of any liability assumed
in) the purchase, development or construction of a Property or the amount of funds advanced under a Mortgage, or the amount actually
paid for an Investment, in each case exclusive of Acquisition Expenses.

 

“Core Earnings”
means the net income (loss), computed in accordance with GAAP, excluding (i) non-cash equity compensation expense, (ii) the Variable
Management Fee, (iii) acquisition and transaction related fees and expenses, (iv) financing related fees and expenses, (v) depreciation
and amortization, (vi) realized gains and losses on the sale of assets, (vii) any unrealized gains or losses or other non-cash
items that are included in net income (loss) for the applicable reporting period, regardless of whether such items are included
in other comprehensive income or loss, or in net income, (viii) one-time events pursuant to changes in GAAP and certain non-cash
charges, (ix) impairment losses on real estate related investments and other than temporary impairment of securities, (x) amortization
of deferred financing costs, (xi) amortization of tenant inducements, (xii) amortization of straight-line rent, (xiii) amortization
of market lease intangibles, (xiv) provision for loan losses and (xv) other non-recurring revenue and expenses, in each case after
discussions between the Advisor and the Independent Directors and approved by a majority of the Independent Directors.

 

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“Core Earnings Per Adjusted
Share” means, for the applicable period, Core Earnings divided by the Adjusted Outstanding Shares for such period.

 

“Dealer Manager”
means Realty Capital Securities, LLC, or such other Person selected by the Board of Directors to act as the dealer manager for
the Offering.

 

“Dealer Manager Fee”
means the fee from the sale of Shares in a Primary Offering, payable to the Dealer Manager for serving as the dealer manager of
such Primary Offering.

 

“Director” means
a director of the Company.

 

“Distributions”
means any distributions of money or other property by the Company to Stockholders, including distributions that may constitute
a return of capital for U.S. federal income tax purposes.

 

“Equity Proceeds”
means with respect to any period, the cumulative net proceeds of all common and preferred equity issued by the Company and its
subsidiaries during such period, including: (1) any equity issued in exchange or conversion of exchangeable notes based on the
stock price at the date of issuance; (2) any other issuances of equity, including but not limited to units in the Operating Partnership
(excluding equity based compensation but including issuances related to an acquisition, investment, joint-venture or partnership);
and (3) any cumulative Core Earnings in excess of cumulative distributions paid on common stock.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time, or any successor statute thereto. Reference to any provision
of the Exchange Act 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.

 

“FINRA” means
the Financial Industry Regulatory Authority, Inc.

 

“GAAP” means United
States generally accepted accounting principles, consistently applied.

 

“Good Reason”
means: (i) any failure to obtain a satisfactory agreement from any successor to the Company or the Operating Partnership to assume
and agree to perform obligations under this Agreement; or (ii) any material breach of this Agreement of any nature whatsoever by
the Company or the Operating Partnership.

 

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“Gross Proceeds”
means the aggregate purchase price of all Shares sold for the account of the Company through an Offering, without deduction for
Selling Commissions, volume discounts, any marketing support and due diligence expense reimbursement or Organization and Offering
Expenses. For the purpose of computing Gross Proceeds, the purchase price of any Share for which reduced Selling Commissions are
paid to the Dealer Manager or a Soliciting Dealer (where net proceeds to the Company are not reduced) shall be deemed to be the
full amount of the offering price per Share pursuant to the Prospectus for such Offering without reduction.

 

“Indemnitee” has
the meaning set forth in Section 20.

 

“Independent Director”
means a Director who is not and who has not been within the last two years, directly or indirectly associated with the Sponsor
or the Advisor by virtue of ownership of an interest in the Sponsor, the Advisor or any of their Affiliates,

 

“Insourced Acquisition Expenses”
means Acquisition Expenses incurred in connection with services performed by the Advisor or any of its Affiliates, including
legal advisory expenses, due diligence expenses, personnel expenses, acquisition-related administrative and advisory expenses,
survey, property, contract review expenses, travel and communications expenses and other closing costs.

 

“Internalization”
has the meaning set forth in Section 18(b)(i).

 

“Internalization Fee”
means an amount equal to (i) $15,000,000 (the “Fixed Amount”); plus (ii) (x) 4.5 multiplied by
the Subject Fees, if the effective date of Internalization is on or prior to December 31, 2028 or (y) 3.5 multiplied by
the Subject Fees, if the effective date of Internalization is on or after January 1, 2029; plus (iii) 1.00% multiplied
by (x) the Contract Purchase Price (not including any portion of such Contract Purchase Price funded solely with Equity Proceeds
in respect of the period occurring on or prior to the end of the fiscal quarter in which the Notice Date occurs and previously
increased the Variable Portion) of any Investment that is acquired (i.e., closing has occurred) after the end of the fiscal quarter
in which the Notice Date occurs and prior to the effective date of Internalization and (y) without duplication, all Equity Proceeds
in respect of the period following the end of the fiscal quarter in which the Notice Date occurs and prior to the effective date
of Internalization.

 

“Internalization Notice”
has the meaning set forth in Section 18(b)(i)(B).

 

“Internalization Stock”
has the meaning set forth in Section 18(b)(i)(D).

 

“Investments”
means any investments by the Company or the Operating Partnership, directly or indirectly, in Real Estate Assets, Real Estate Related
Loans or any other asset.

 

“Issuance Date”
has the meaning set forth in Section 15(b)(i)(D).

 

“Joint Ventures”
means the joint venture or partnership or other similar arrangements (other than between the Company and the Operating Partnership)
in which the Company or the Operating Partnership or any of their subsidiaries is a co-venturer, limited liability company member,
limited partner or general partner, which are established to acquire or hold Investments.

 

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“Listing” means
the listing of the Common Stock on a national securities exchange, or the inclusion of the Common Stock for trading in the over-the-counter-market.

 

“Loans” means
any indebtedness or obligations in respect of borrowed money or evidenced by bonds, notes, debentures, deeds of trust, letters
of credit or similar instruments, including mortgages and mezzanine loans.

 

“Market Check”
means an analysis comparing (a) the amount of Insourced Acquisition Expenses paid in the previous calendar year to the Advisor
or any of its Affiliates with (b) the projected amount of Acquisition Expenses for the following calendar year assuming that a
Person other than the Advisor or its Affiliates performs substantially similar services for a substantially similar amount of Investments.

 

“Mortgages” means,
in connection with mortgage financing provided by the Company, all of the notes, deeds of trust, security interests or other evidences
of indebtedness, which are secured or collateralized by Real Property owned by the borrowers under such notes, deeds of trust,
security interests or other evidences of indebtedness.

 

“Notice” has the
meaning set forth in Section 22.

 

“Notice Date”
has the meaning set forth in Section 18(b)(i)(B).

 

“Offering” means
any public offering and sale of Shares pursuant to an effective registration statement filed under the Securities Act.

 

“Operating Partnership”
has the meaning set forth in the preamble.

 

“Operating Partnership Agreement”
means the Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of the date hereof, among
the Company, American Finance Trust V Special Limited Partner, LLC, and the Advisor, as the same may be amended from time to time.

 

“OP Units” means
units of limited partnership interest in the Operating Partnership.

 

“Organization and Offering Expenses”
means all expenses (other than the Selling Commission and the Dealer Manager Fee) to be paid by the Company in connection with
an Offering, including legal, accounting, printing, mailing and filing fees, charges of the escrow holder and transfer agent, charges
of the Advisor for administrative services related to the issuance of Shares in an Offering, reimbursement of the Advisor for costs
in connection with preparing supplemental sales materials, the cost of bona fide training and education meetings held by the Company
(primarily the travel, meal and lodging costs of the registered representatives of broker-dealers), attendance and sponsorship
fees and cost reimbursement for employees of the Company’s Affiliates to attend retail seminars conducted by broker-dealers
and, in special cases, reimbursement to soliciting broker-dealers for technology costs associated with an Offering, costs and expenses
related to such technology costs, and costs and expenses associated with facilitation of the marketing of the Shares and the ownership
of Shares by such broker-dealer’s customers.

 

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

 

“Outside Date”
has the meaning set forth in Section 18(b)(i)(D)(4).

 

“Person” means
an individual, corporation, partnership, estate, trust (including a trust qualified under Sections 401(a) or 501(c)(17) of the
Code), 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 legal entity
and also includes a group as that term is used for purposes of Section 13(d)(3) of the Exchange Act.

 

“Primary Offering”
means the portion of an Offering other than the Shares offered pursuant to the Company’s distribution reinvestment plan.

 

“Property” or
“Properties” means, as the context requires, any, or all, respectively, of the Real Property
acquired by the Company, directly or indirectly through joint venture arrangements or other partnership or investment interests.

 

“Property Transaction”
means an acquisition, disposition or financing transaction for which a Specified Advisor had initiated discussions or negotiations
prior to, and is subsequently consummated following, a Specified Transaction in which the Specified Agreement to which such Specified
Advisor was a party is terminated.

 

“Prospectus” means
a final prospectus of the Company filed pursuant to Rule 424(b) of the Securities Act, as the same may be amended or supplemented
from time to time.

 

“Real Estate Assets”
means any investment by the Company or the Operating Partnership in unimproved and improved Real Property (including fee or leasehold
interests, options and leases), directly, through one or more subsidiaries or through a Joint Venture.

 

“Real Estate Related Loans”
means any investments in mortgage loans and other types of real estate related debt financing, including, mezzanine loans, bridge
loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests and participations
in such loans, by the Company or the Operating Partnership, directly, through one or more subsidiaries or through a Joint Venture.

 

    8

     

    

 

“Real Property”
means (i) land, (ii) rights in land (including leasehold interests), and (iii) any buildings, structures, improvements, furnishings,
fixtures and equipment located on or used in connection with land and rights or interests in land.

 

“Registration Statement”
has the meaning set forth in Section 18(b)(i)(D)(1).

 

“REIT” means a
corporation, trust, association or other legal entity (other than a real estate syndication) that is engaged primarily in investing
in equity interests in real estate (including fee ownership and leasehold interests) or in loans secured by real estate or both,
as defined pursuant to Sections 856 through 860 of the Code and any successor or other provisions of the Code relating to real
estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the regulations
promulgated thereunder.

 

“Sale” or “Sales”
means any transaction or series of transactions whereby: (i) the Company or the Operating Partnership directly or indirectly (except
as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its direct or indirect
ownership of any Real Estate Assets, Loan or other Investment or portion thereof, including the lease of any Real Estate Assets
consisting of a building only, and including any event with respect to any Real Estate Assets that gives rise to a significant
amount of insurance proceeds or condemnation awards; (ii) the Company or the Operating Partnership directly or indirectly (except
as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of all or
substantially all the direct or indirect interest of the Company or the Operating Partnership in any Joint Venture in which it
is a co-venturer, member or partner; (iii) any Joint Venture directly or indirectly (except as described in other subsections of
this definition) in which the Company or the Operating Partnership as a co-venturer, member or partner sells, grants, transfers,
conveys, or relinquishes its direct or indirect ownership of any Real Estate Assets or portion thereof, including any event with
respect to any Real Estate Assets which gives rise to insurance claims or condemnation awards; or (iv) the Company or the Operating
Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants, conveys or relinquishes
its direct or indirect interest in any Real Estate Related Loans or portion thereof (including with respect to any Real Estate
Related Loan, all payments thereunder or in satisfaction thereof other than regularly scheduled interest payments) and any event
which gives rise to a significant amount of insurance proceeds or similar awards; or (v) the Company or the Operating Partnership
directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes
its direct or indirect ownership of any other asset not previously described in this definition or any portion thereof, but not
including any transaction or series of transactions specified in clauses (i) through (v) above in which the proceeds of such transaction
or series of transactions are reinvested by the Company in one or more assets within 180 days thereafter.

 

“Second Amended and Restated
Advisory Agreement” has the meaning set forth in the recitals.

 

    9

     

    

 

“Securities Act”
means the Securities Act of 1933, as amended from time to time, or any successor statute thereto. Reference to any provision of
the Securities Act 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.

 

“Selling Commission”
means the fee payable to the Dealer Manager and reallowable to Soliciting Dealers with respect to Shares sold by them in a Primary
Offering.

 

“Shares” means
the shares of beneficial interest or of common stock of the Company of any class or series, including Common Stock, that has the
right to elect the Directors of the Company.

 

“Soliciting Dealers”
means broker-dealers that are members of FINRA, or that are exempt from broker-dealer registration, and that, in either case, have
executed soliciting dealer or other agreements with the Dealer Manager to sell Shares.

 

“Specified Advisor”
means, with respect to any Specified Target, the entity that advises such Specified Target.

 

“Specified Agreement”
means, with respect to any Specified Target, the advisory agreement in effect on the date hereof pursuant to which the applicable
Specified Advisor provides advisory services to such Specified Target.

 

“Specified Equity Value”
means, with respect to any Specified Transaction, an amount equal to the aggregate total consideration paid to the holders of common
stock, preferred stock, convertible preferred stock or other equity of the Specified Target or of the operating partnership of
such Specified Target that is the subject of the acquisition that constitutes such Specified Transaction; provided, that
Specified Equity Value shall not include any consideration paid for or in redemption of “special limited partner interests”
in the operating partnership of such Specified Target (“special limited partner interests” being understood to be interests
in such partnerships similar in type to the interest designated in the Operating Partnership Agreement as the “Special Limited
Partner Interest”). 

 

“Specified Increase”
means, with respect to any Specified Transaction, an amount equal to the Specified Equity Value of such Specified Transaction multiplied
by (i) during the twelve (12) month period following such Specified Transaction, 0.0031, (ii) during the twelve (12) month
period following the period described in clause (i), 0.0047 and (iii) thereafter, 0.0062.

 

“Specified Target”
means, any REIT other than American Realty Capital-Retail Centers of America, Inc. that, as of the Effective Date, is advised by
an entity that is wholly-owned (directly or indirectly) by the Sponsor or AR Capital, LLC.

 

“Specified Transaction”
means, other than any Joint Ventures, the acquisition by the Company (whether by merger, consolidation or otherwise) of any Specified
Target.

    10

     

    

  

“Sponsor” means
AR Global Investments, LLC, a Delaware limited liability company.

 

“Stockholders”
means the holders of record of the Shares as maintained on the books and records of the Company or its transfer agent.

 

“Subject Fees”
means (i) (x) (A) the actual Base Management Fee plus (B) the actual Variable Management Fee, in each of clauses (A) and (B), payable
for the fiscal quarter in which the Notice Date occurs multiplied by (y) four (4) plus (ii) without duplication,
the annual increase in the Base Management Fee resulting from Equity Proceeds in respect of the fiscal quarter in which the Notice
Date occurs.

 

“Termination Date”
means the date of termination of this Agreement.

 

“Trading Day”
means a day on which the principal national securities exchange on which a security is listed or admitted to trading is open for
the transaction of business or, if a security is not listed or admitted to trading on any national securities exchange, shall mean
any day other than a Saturday, a Sunday or a day on which banking institutions in the State of New York are authorized or obligated
by law or executive order to close.

 

“Value” means,
with respect to any security, the average of the daily market price of such security for the ten consecutive Trading Days immediately
preceding the date of such valuation. The market price for each such Trading Day shall be: (i) if the security is listed or admitted
to trading on the NYSE or any national securities exchange, the last reported sale price, regular way, on such day, or if no such
sale takes place on such day, the average of the closing bid and asked prices, regular way, on such day, (ii) if the security is
not listed or admitted to trading on the NYSE or any national securities exchange, the last reported sale price on such day or,
if no sale takes place on such day, the average of the closing bid and asked prices on such day, as reported by a reliable quotation
source designated by the Advisor, or (iii) if the security is not listed or admitted to trading on the NYSE or any national securities
exchange and no such last reported sale price or closing bid and asked prices are available, the average of the reported high bid
and low asked prices on such day, as reported by a reliable quotation source designated by the Advisor, or if there shall be no
bid and asked prices on such day, the average of the high bid and low asked prices, as so reported, on the most recent day (not
more than ten days prior to the date in question) for which prices have been so reported; provided, that if there are no
bid and asked prices reported during the ten days prior to the date in question, the value of the security shall be determined
by the Advisor acting in good faith on the basis of such quotations and other information as it considers, in its reasonable judgment,
appropriate. In the event the security includes any additional rights, then the value of such rights shall be determined by the
Advisor acting in good faith on the basis of such quotations and other information as it considers, in its reasonable judgment,
appropriate.

 

“Variable Management Fee”
means the fees payable to the Advisor or its assignees pursuant to Section 10(f).

    11

     

    

  

2.          APPOINTMENT.
The Company and the Operating Partnership hereby appoint the Advisor to serve as their advisor to perform the services set
forth herein on the terms and subject to the conditions set forth in this Agreement and subject to the supervision of the Board,
and the Advisor hereby accepts such appointment.

 

3.          DUTIES
OF THE ADVISOR. The Advisor will use its reasonable best efforts to present to the Company and the Operating Partnership potential
investment opportunities and to provide 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. In performance of this undertaking, subject
to the supervision of the Board and consistent with the provisions of the Articles of Incorporation, By-laws and the Operating
Partnership Agreement, the Advisor, directly or indirectly, will:

 

(a)          serve
as the Company’s and the Operating Partnership’s investment and financial advisor;

 

(b)          provide
the daily management for the Company and the Operating Partnership and perform and supervise the various administrative functions
necessary for the day-to-day management of the operations of the Company and the Operating Partnership;

 

(c)          investigate,
select and, on behalf of the Company and the Operating Partnership, engage and conduct business with and supervise the performance
of such Persons as the Advisor deems necessary to the proper performance of its obligations hereunder (including consultants, accountants,
correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries,
custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, property managers,
real estate management companies, real estate operating companies, securities investment advisors, mortgagors, the registrar and
the transfer agent and any and all agents for any of the foregoing), including Affiliates of the Advisor and Persons acting in
any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services (including
entering into contracts in the name of the Company and the Operating Partnership with any of the foregoing);

 

(d)          consult
with the officers and Directors of the Company and assist the Directors 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 or the Operating Partnership;

    12

     

    

  

(e)          subject
to the provisions of Section 4, (i) participate in formulating an investment strategy and asset allocation framework; (ii)
locate, analyze and select potential Investments; (iii) structure and negotiate the terms and conditions of transactions pursuant
to which acquisitions and dispositions of Investments will be made; (iv) research, identify, review and recommend acquisitions
and dispositions of Investments to the Board and make Investments on behalf of the Company and the Operating Partnership in compliance
with the investment objectives and policies of the Company; (v) arrange for financing and refinancing and make other changes in
the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with, Investments;
(vi) enter into leases and service contracts for Real Estate Assets and, to the extent necessary, perform all other operational
functions for the maintenance and administration of such Real Estate Assets; (vii) actively oversee and manage Investments for
purposes of meeting the Company’s investment objectives and reviewing and analyzing financial information for each of the
Investments and the overall portfolio; (viii) select Joint Venture partners, structure corresponding agreements and oversee and
monitor these relationships; (ix) oversee, supervise and evaluate Affiliated and non-Affiliated property managers who perform services
for the Company or the Operating Partnership; (x) oversee Affiliated and non-Affiliated Persons with whom the Advisor contracts
to perform certain of the services required to be performed under this Agreement; (xi) manage accounting and other record-keeping
functions for the Company and the Operating Partnership, including reviewing and analyzing the capital and operating budgets for
the Real Estate Assets and generating an annual budget for the Company; (xii) recommend various liquidity events to the Board when
appropriate; and (xiii) source and structure Real Estate Related Loans;

 

(f)          upon
request, provide the Board with periodic reports regarding prospective investments;

 

(g)          make
investments in, and dispositions of, Investments within the discretionary limits and authority as granted by the Board;

 

(h)          negotiate
on behalf of the Company and the Operating Partnership with banks or other lenders for Loans to be made to the Company, the Operating
Partnership or any of their subsidiaries, and negotiate with investment banking firms and broker-dealers on behalf of the Company,
the Operating Partnership or any of their subsidiaries, or negotiate private sales of Shares or obtain Loans for the Company, the
Operating Partnership or any of their subsidiaries, but in no event in such a manner so that the Advisor shall be acting as 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, the Operating Partnership or any of their subsidiaries;

 

(i)          obtain
reports (which may, but are not required to, be prepared by the Advisor or its Affiliates), where appropriate, concerning the value
of Investments or contemplated investments of the Company and the Operating Partnership;

 

(j)          from
time to time, or at any time reasonably requested by the Board, make reports to the Board of its performance of services to the
Company and the Operating Partnership under this Agreement, including reports with respect to potential conflicts of interest involving
the Advisor or any of its Affiliates;

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(k)         provide
the Company and the Operating Partnership with all necessary cash management services;

 

(l)          deliver
to, or maintain on behalf of, the Company copies of all appraisals obtained in connection with the investments in any Real Estate
Assets as may be required to be obtained by the Board;

 

(m)        notify
the Board of all proposed material transactions before they are completed;

 

(n)         effect
any private placement of OP Units, tenancy-in-common (TIC) or other interests in Investments as may be approved by the Board;

 

(o)         perform
investor-relations and Stockholder communications functions for the Company;

 

(p)          render
such services as may be reasonably determined by the Board of Directors consistent with the terms and conditions herein; and

 

(q)         maintain
the Company’s accounting and other records and assist the Company in filing all reports required to be filed by it with the
Securities and Exchange Commission, the Internal Revenue Service and other regulatory agencies;

 

(r)          do
all things reasonably necessary to assure its ability to render the services described in this Agreement.

 

Notwithstanding the foregoing or anything
else that may be to the contrary in this Agreement, the Advisor may delegate any of the foregoing duties to any Person so long
as the Advisor or its Affiliate remains responsible for the performance of the duties set forth in this Section 3.

 

4.          AUTHORITY
OF ADVISOR.

 

(a)         Pursuant
to the terms of this Agreement (including the restrictions included in this Section 4 and in Section 9), and subject
to the continuing and exclusive authority of the Board over the supervision of the Company, the Company, acting on the authority
of the Board of Directors, hereby delegates to the Advisor the authority to perform the services described in Section 3.

 

(b)         Notwithstanding
anything herein to the contrary, all Investments will require the prior approval of the Board, any particular Directors specified
by the Board or any committee of the Board specified by the Board, as the case may be.

 

(c)         If
a transaction requires approval by the Independent Directors, the Advisor will deliver to the Independent Directors all documents
and other information reasonably required by them to evaluate properly the proposed transaction.

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(d)        The
Board may, at any time upon the giving of Notice to the Advisor, modify or revoke the authority set forth in this Section 4;
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 or the Operating Partnership prior to the
date of receipt by the Advisor of such notification.

 

5.          FIDUCIARY
RELATIONSHIP. The Advisor, as a result of its relationship with the Company and the Operating Partnership pursuant to this
Agreement, has a fiduciary responsibility and duty to the Company, the Stockholders and the partners in the Operating Partnership.

 

6.          NO
PARTNERSHIP OR JOINT VENTURE. Except as provided in Section 10(i), the parties to this Agreement are not partners or
joint venturers with each other and nothing herein shall be construed to make them partners or joint venturers or impose any liability
as such on either of them.

 

7.          BANK
ACCOUNTS. The Advisor may establish and maintain one or more bank accounts in the name of the Company or the Operating Partnership
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 or the Operating Partnership, under such terms and conditions as the Board may approve; provided, that no
funds shall be commingled with the funds of the Advisor; and, upon request, the Advisor shall render appropriate accountings of
such collections and payments to the Board and to the auditors of the Company.

 

8.          RECORDS;
ACCESS. The Advisor shall maintain appropriate records of all its activities hereunder and make such records available for
inspection by the Directors and by counsel, auditors and authorized agents of the Company, at any time and from time to time. The
Advisor shall at all reasonable times have access to the books and records of the Company and the Operating Partnership.

 

9.          LIMITATIONS
ON ACTIVITIES. Notwithstanding anything herein to the contrary, the Advisor shall refrain from taking any action which, in
its sole judgment, or in the sole judgment of the Company, made in good faith, would (a) adversely affect the status of the Company
as a REIT, unless the Board has determined that REIT qualification is not in the best interests of the Company and its Stockholders,
(b) subject the Company to regulation under the Investment Company Act of 1940, as amended, or (c) violate any law, rule, regulation
or statement of policy of any governmental body or agency having jurisdiction over the Company, the Operating Partnership or the
Shares, or otherwise not be permitted by the Articles of Incorporation or By-laws, except if such action shall be ordered by the
Board, in which case the Advisor shall notify promptly 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.

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10.         FEES.

 

(a)          [Intentionally
Omitted].

 

(b)          Limitation
on Acquisition Expenses.

 

(i)          The
total of all Acquisition Expenses payable in connection with the Company’s total portfolio of Investments and reinvestments,
if any, shall be reasonable and shall not exceed an amount equal to four and one-half percent (4.5%) of the Contract Purchase Price
of the Company’s total portfolio of Investments or four and one-half percent (4.5%) of the amount advanced for the Company’s
total portfolio of Investments.

 

(ii)         The
total of all Acquisition Expenses payable in connection with any Investment or any reinvestment shall be reasonable and shall not
exceed an amount equal to four and one-half percent (4.5%) of the Contract Purchase Price of the Investment or four and one-half
percent (4.5%) of the amount advanced for any Investment; provided, further, however, that a majority of the
Directors (including a majority of the Independent Directors) not otherwise interested in the transaction may approve expenses
in excess of these limits if they determine the transaction to be commercially competitive, fair and reasonable to the Company.

 

(iii)        [Intentionally
Omitted].

 

(c)          [Intentionally
Omitted].

 

(d)          [Intentionally
Omitted].

 

(e)          [Intentionally
Omitted].

 

(f)          Variable
Management Fee. The Company shall pay the Advisor a Variable Management Fee, payable quarterly in arrears, in an amount
equal to (i) the product of (A) the Adjusted Outstanding Shares for the calendar quarter multiplied by (B) 15% multiplied by (C)
the excess of Core Earnings Per Adjusted Share for the previous 3-month period over $0.375, plus (ii) the product of (X)
the Adjusted Outstanding Shares for the calendar quarter multiplied by (Y) 10% multiplied by (Z) the excess of Core Earnings Per
Adjusted Share for the previous 3-month period over $0.50.

 

(g)         Base
Management Fee. 

 

(i)          The
Company shall pay the Advisor a Base Management Fee, payable on the first business day of each month following the Effective Date.
Subject to Section 10(g)(ii), the Base Management Fee shall be equal to (x) (i) $1,750,000 during the twelve (12) month
period following the Effective Date, (ii) $1,875,000 during the twelve (12) month period following the period described in clause
(i) and (iii) thereafter, $2,000,000 (the portion of the Base Management Fee described in this clause (x), the “Fixed
Portion”); plus (y) an amount equal to (A) 1.25% of the Equity Proceeds in respect of the period following the
Effective Date (other than in connection with a Specified Transaction), divided by (B) twelve (12) (the portion of the Base
Management Fee described in this clause (y), the “Variable Portion”).

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(ii)         In
connection with any Specified Transaction consummated by the Company following the Effective Date, the Fixed Portion shall be increased
by the Specified Increase for such Specified Transaction.

 

(h)          Payment
of Fees.

 

(i)          In
connection with the Variable Management Fee, the Company shall pay such fees to the Advisor or its assignees in cash, in Shares,
or a combination of both, the form of payment to be determined in the sole discretion of the Advisor.

 

(ii)         The
Base Management Fee shall be payable in the form determined, at the discretion of the Advisor, in cash, OP Units, Shares, or any
combination thereof. Each OP Unit or Share shall be valued at the Value of a Share.

 

(i)          Exclusion
of Certain Transactions.

 

(i)          If
the Company or the Operating Partnership shall propose to enter into any transaction in which the Advisor, any Affiliate of the
Advisor or any of the Advisor’s directors or officers has a direct or indirect interest, then such transaction shall be approved
by a majority of the Board not otherwise interested in such transaction, including a majority of the Independent Directors.

 

(ii)         Neither
the Company nor the Operating Partnership shall make Loans to the Advisor or any Affiliate thereof or certain of the Stockholders
except Mortgages or loans to wholly owned subsidiaries of the Company. None of the Advisor nor any Affiliate thereof, or certain
of the Stockholders shall make loans to the Company or the Operating Partnership, or to Joint Ventures, unless approved by a majority
of the Directors (including a majority of the Independent Directors) not otherwise interested in such transaction as fair, competitive,
and commercially reasonable, and no less favorable to the Company or Operating Partnership, as applicable, than comparable loans
between unaffiliated parties.

 

(iii)        The
Company and the Operating Partnership may enter into Joint Ventures with the Advisor or its Affiliates provided that (a) a majority
of Directors (including a majority of Independent Directors) not otherwise interested in the transaction approves the transaction
as being fair and reasonable to the Company or Operating Partnership, as applicable, and (b) the investment by the Company or Operating
Partnership, as applicable, is on substantially the same terms as those received by other joint venturers.

    17

     

    

  

(j)          Limitation
on Insourced Acquisition Expenses.

 

(i)          The
total of all Insourced Acquisition Expenses with respect to any Investment shall initially be fixed at, and shall not exceed, 0.50%
of the Contract Purchase Price of the Investment or 0.50% of the amount advanced for an Investment, which the Company shall pay
to the Advisor or its Affiliate at the closing of each Investment. For the avoidance of doubt, no payment in respect of Insourced
Acquisition Expenses shall be made unless the Advisor or its Affiliates shall have performed services related to selecting, evaluating
and acquiring an Investment, regardless of whether such Investment is ultimately acquired.

 

(ii)         The
total of all Insourced Acquisition Expenses for any calendar year shall initially be fixed at, and shall not exceed, 0.50% of the
Contract Purchase Price of the Investments acquired during such period or 0.50% of the amounts advanced for the Investments made
during such period (to be prorated for any partial calendar year); provided, however, within a reasonable period
of time following the end of each such calendar year, the Company shall perform a Market Check and provide the results thereof
to the Advisor within a reasonable period of time and, if the result of the Market Check is that the projected amount of Acquisition
Expenses that would be incurred if substantially similar services with respect to a substantially similar amount of properties
were to be provided by a Person other than the Advisor or any of its Affiliates during the subsequent calendar year is lower than
the amount of Insourced Acquisition Expenses paid to the Advisor or its Affiliates during the previous calendar year, either (A)
the Advisor shall agree to reduce the cap on the Insourced Acquisition Expenses until the next Market Check such that the cap on
Insourced Acquisition Expenses does not exceed the projected amount of Acquisition Expenses that would be incurred if substantially
similar services with respect to a substantially similar amount of properties were to be provided by a Person other than the Advisor
or any of its Affiliates during the subsequent calendar year or (B) the Company may outsource to a Person other than the Advisor
or its Affiliate certain services previously provided by the Advisor or its Affiliates until the next Market Check.

 

11.         EXPENSES.

 

(a)          In
addition to the compensation paid to the Advisor pursuant to Section 10, the Company or the Operating Partnership shall
pay directly or reimburse the Advisor, quarterly and in arrears, for all the expenses paid or incurred by the Advisor or its Affiliates
in connection with the services it provides to the Company and the Operating Partnership pursuant to this Agreement, including,
the following:

 

(i)          Organization
and Offering Expenses, including third-party due diligence fees related to the Primary Offering, as set forth in detailed and itemized
invoices; provided, however, that the Company shall not reimburse the Advisor to the extent such reimbursement would
cause the total amount of Organization and Offering Expenses paid by the Company and the Operating Partnership to exceed two percent
(2.0%) of the Gross Proceeds raised in all Primary Offerings;

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(ii)         Acquisition
Expenses, subject to the limitations set forth in Section 10(b), and Insourced Acquisition Expenses, subject to the limitations
set forth in Section 10(i);

 

(iii)        the
actual cost of goods and services used by the Company and obtained from entities not Affiliated with the Advisor;

 

(iv)        interest
and other costs for Loans, including discounts, points and other similar fees;

 

(v)         taxes
and assessments on income of the Company or Investments;

 

(vi)        costs
associated with insurance required in connection with the business of the Company or by the Board;

 

(vii)       expenses
of managing and operating Investments owned by the Company, whether payable to an Affiliate of the Company or a non-affiliated
Person;

 

(viii)      all
expenses in connection with payments to the Directors for attending meetings of the Board and Stockholders;

 

(ix)         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;

 

(x)          expenses
connected with payments of Distributions;

 

(xi)         expenses
of organizing, revising, amending, converting, modifying or terminating the Company, the Operating Partnership or any subsidiary
thereof or the Articles of Incorporation, By-laws or governing documents of the Operating Partnership or any subsidiary of the
Company or the Operating Partnership;

 

(xii)        expenses
of 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;

 

(xiii)       administrative
service expenses, including all costs and expenses incurred by the Advisor or its Affiliates in fulfilling its duties hereunder,
including reasonable salaries and wages, benefits and overhead of all employees directly involved in the performance of such services;
provided, however, that no reimbursement shall be made for costs of such employees of the Advisor or its Affiliates
to the extent that such employees perform services for which the Advisor receives a separate fee; and

 

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(xiv)      audit,
accounting and legal fees.

 

(b)          Commencing
upon the earlier to occur of (i) the fifth fiscal quarter after the Company makes its first Investment and (ii) six (6) months
after the commencement of the initial Offering, expenses incurred by the Advisor on behalf of the Company and the Operating Partnership
or in connection with the services provided by the Advisor hereunder and payable pursuant to this Section 11 shall be reimbursed
(excluding Insourced Acquisition Expenses which shall be paid as described in Section 10(j)(i) of this Agreement), no less
than monthly, to the Advisor.

 

12.         OTHER
SERVICES. Should the Board request that the Advisor or any director, officer or employee thereof render services for the Company
and the Operating Partnership other than set forth in Section 3, such services shall be separately compensated at such customary
rates and in such customary amounts as are agreed upon by the Advisor and the Board, including a majority of the Independent Directors,
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.

 

13.         OTHER
ACTIVITIES OF THE ADVISOR. Except as set forth in this Section 13, 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 Sponsor or its Affiliates;
nor shall this Agreement limit or restrict the right of any director, officer, member, partner, employee or stockholder 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 and earn fees for rendering such services; provided, however , that the Advisor must devote sufficient resources
to the Company’s business to discharge its obligations to the Company under this Agreement. 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 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 report to the Board the
existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which 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. If the Advisor, Director or Affiliates thereof have sponsored other investment programs with similar investment objectives
which have investment funds available at the same time as the Company, the Advisor shall inform the Board of the method to be applied
by the Advisor in allocating investment opportunities among the Company and competing investment entities and shall provide regular
updates to the Board of the investment opportunities provided by the Advisor to competing programs in order for the Board (including
the Independent Directors) to fulfill its duty to ensure that the Advisor and its Affiliates use their reasonable best efforts
to apply such method fairly to the Company.

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14.         THE
AMERICAN REALTY CAPITAL NAME. The Advisor and its Affiliates have or may have a proprietary interest in the names “American
Realty Capital,” “ARC”, “AR Capital” and “AR Global.” 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,”
“ARC”, “AR Capital” and “AR Global,” a non-transferable, non-assignable, non-exclusive, royalty-free
right and license to use the names “American Realty Capital,” “ARC”, “AR Capital” and “AR
Global” 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,” “ARC”, “AR Capital”
and “AR Global,” 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,” “ARC”, “AR Capital” and “AR Global” 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,” “ARC”, “AR Capital” and “AR Global” 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 the words “American Realty Capital,” “ARC”, “AR
Capital” and “AR Global.” 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 “American
Realty Capital,” “ARC”, “AR Capital” and “AR Global” 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,” “ARC”,
“AR Capital” and “AR Global” licensed hereunder or the use thereof (including without limitation as to
whether the use of the names “American Realty Capital,” “ARC” and “AR Capital” 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,” “ARC” and “AR Capital.”

 

15.         TERM
OF AGREEMENT. This Agreement shall be in effect from the Effective Date through the twentieth (20th) anniversary
of April 29, 2015 and shall be automatically renewed for an additional twenty-year term on each anniversary of such twentieth anniversary
date.

 

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16.         TERMINATION
BY THE PARTIES. This Agreement may be terminated (i) in accordance with Section 18(b) or (ii) upon sixty (60) days’ prior
written notice (a) by the Independent Directors of the Company or by the Advisor with Cause without penalty, (b) by the Advisor
for Good Reason, or (c) by the Advisor upon a Change of Control; provided, that termination of this Agreement with Cause
shall be upon forty-five (45) days’ prior written notice. The provisions of Sections 14 and 18 through 30
(inclusive) of this Agreement shall survive any expiration or earlier termination of this Agreement.

 

17.         ASSIGNMENT.
This Agreement may be assigned by the Advisor (a) to an Affiliate of the Advisor, or (b) to any party with expertise in commercial
real estate and, together with its Affiliates, over $100 million of assets under management. The Advisor may assign any rights
to receive fees or other payments under this Agreement to any Person. This Agreement shall not be assigned by the Company or the
Operating Partnership without the consent of the Advisor, except in the case of an assignment by the Company or the Operating Partnership
to a Person which is a successor to all the assets, rights and obligations of the Company or the Operating Partnership, in which
case such successor Person shall be bound hereunder and by the terms of said assignment in the same manner as the Company or the
Operating Partnership, as applicable, is bound by this Agreement.

 

18.         PAYMENTS
TO AND DUTIES OF ADVISOR UPON TERMINATION.

 

(a)          Amounts
Owed. After the Termination Date, the Advisor shall be entitled to receive from the Company or the Operating Partnership
within thirty (30) days after the effective date of such termination all amounts then accrued and owing to the Advisor, including
all its interest in the Company’s income, losses, distributions and capital by payment of an amount equal to the then-present
fair market value of the Advisor’s interest.

 

(b)          Internalization.

 

(i)          The
Company shall have the right to internalize the services provided by Advisor hereunder (an “Internalization”)
at any time during the term of this Agreement if:

 

(A)         more
than 67% of the Independent Directors have approved such Internalization;

 

(B)         the
Company has provided written notice to the Advisor of the approval described in clause (A) above (the “Internalization
Notice” and the date the Internalization Notice is received by the Advisor, the “Notice Date”); provided,
however, that the Notice Date shall not be earlier than January 1, 2018;

 

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(C)         the
effective date of Internalization is at least nine (9) months, but not more than fifteen (15) months, following the Notice Date;
provided, that the Company shall have the option to extend the effective date of Internalization for an additional three
(3) months if, fifteen (15) months following the Notice Date the Company is working in good faith to complete a transaction, Listing
or Offering that the Company is undertaking in conjunction with the Internalization; provided, further, that in the
event such three (3) month extension occurs, the Internalization Fee shall be calculated as if the Notice Date occurred in the
fiscal quarter following the fiscal quarter in which the Notice Date actually occurred; and

 

(D)         the
Company pays the Advisor the Internalization Fee in cash concurrently with the consummation of the Internalization; provided,
however, that up to ten percent (10%) of the Internalization Fee may be payable in Shares of Common Stock (the Shares representing
such ten percent (10%) portion, the “Internalization Stock” and the date such Internalization Stock is issued,
the “Issuance Date”)); provided, further, that the Internalization Fee shall be paid entirely
in cash unless all of the following conditions is met:

 

1.          the
Company is eligible to file a resale registration on Form S-3 covering the Internalization Stock (the “Registration
Statement”) as of the effective date of Internalization;

 

2.          as
of the Issuance Date, the Company shall have an equity market cap of at least $1,600,000,000;

 

3.          the
Registration Statement shall be effective no later than the Issuance Date; and

 

4.          the
Issuance Date shall be not more than sixty (60) days following the effective date of Internalization (such date, the “Outside
Date”).

 

(ii)         Any
portion of the Internalization Fee payable in Internalization Stock shall instead be paid in cash within five (5) business days
of the failure of any of the conditions set forth in Section 18(b)(i)(D) to be met (for the avoidance of doubt, the inability
to determine the per-share price of the Internalization Stock by the Outside Date due to an insufficient average daily trading
volume as contemplated by the following sentence shall be deemed to be a failure of the conditions set forth in Section 18(b)(i)(D)
above. The Internalization Stock shall be issued at a per-share price equal to the volume weighted average price of a Share of
Common Stock for the twenty (20) Trading Days ending with the last Trading Day prior to the Issuance Date; provided, however,
that the average daily trading volume of Common Stock during such twenty (20) day period must be as least one hundred thousand
(100,000) Shares.

 

(iii)        For
the avoidance of doubt, an Internalization shall not be deemed to constitute Cause.

 

    23

     

    

 

(c)          Advisor’s
Duties. The Advisor shall promptly upon termination of this Agreement:

 

(i)          pay
over to the Company and the Operating Partnership all money collected and held for the account of the Company and the Operating
Partnership pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it
is then entitled;

 

(ii)         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;

 

(iii)        deliver
to the Board all assets, including all Investments, and documents of the Company and the Operating Partnership then in the custody
of the Advisor; and

 

(iv)        cooperate
with the Company and the Operating Partnership to provide an orderly management transition.

 

19.         INCORPORATION
OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT. To the extent that the Articles of Incorporation
or the Operating Partnership Agreement as in effect on the date hereof impose obligations or restrictions on the Advisor or grant
the Advisor certain rights which are not set forth in this Agreement, the Advisor shall abide by such obligations or restrictions
and such rights shall inure to the benefit of the Advisor with the same force and effect as if they were set forth herein.

 

20.         INDEMNIFICATION
BY THE COMPANY AND THE OPERATING PARTNERSHIP.

 

(a)          The
Company and the Operating Partnership, jointly and severally, shall indemnify and hold harmless the Advisor and its Affiliates,
as well as their respective officers, directors, equity holders, members, partners, stockholders, other equity holders and employees
(collectively, the “Indemnitees,” and each, an “Indemnitee”), from and against all losses,
claims, damages, losses, joint or several, expenses (including reasonable attorneys’ fees and other legal fees and expenses),
judgments, fines, settlements, and other amounts (collectively, “Losses,” and each, a “Loss”)
arising in the performance of their duties hereunder, including reasonable attorneys’ fees, to the extent such Losses are
not fully reimbursed by insurance, and to the extent that such indemnification would not be inconsistent with the laws of the State
of New York, the Articles of Incorporation. Notwithstanding the foregoing, the Company and the Operating Partnership shall not
provide for indemnification of an Indemnitee for any Loss suffered by such Indemnitee, nor shall they provide that an Indemnitee
be held harmless for any Loss suffered by the Company and the Operating Partnership, unless all the following conditions are met:

    24

     

    

 

(i)          the
Indemnitee has determined, in good faith, that the course of conduct that caused the loss or liability was in the best interest
of the Company and the Operating Partnership;

 

(ii)         the
Indemnitee was acting on behalf of, or performing services for, the Company or the Operating Partnership;

 

(iii)        such
Loss was not the result of negligence or willful misconduct by the Indemnitee; and

 

(iv)        such
indemnification or agreement to hold harmless is recoverable only out of the Company’s net assets and not from the Stockholders.

 

(b)          Notwithstanding
the foregoing, an Indemnitee shall not be indemnified by the Company and the Operating Partnership for any Losses arising from
or out of an alleged violation of federal or state securities laws by such Indemnitee 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 securities law violations as to the Indemnitee;

 

(ii)         such
claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the Indemnitee; or

 

(iii)        a
court of competent jurisdiction approves a settlement of the claims against the 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 or the Operating Partnership were offered or sold as to indemnification for violation of securities
laws.

 

(c)          In
addition, the advancement of the Company’s or the Operating Partnership’s funds to an Indemnitee for legal expenses
and other costs incurred as a result of any legal action for which indemnification is being sought is permissible only if all the
following conditions are satisfied:

 

(i)          the
legal action relates to acts or omissions with respect to the performance of duties or services on behalf of the Company or the
Operating Partnership;

 

(ii)         the
legal action is initiated by a third party who is not a Stockholder or the legal action is initiated by a Stockholder acting in
such Stockholder’s capacity as such and a court of competent jurisdiction specifically approves such advancement; and

 

(iii)        the
Indemnitee undertakes to repay the advanced funds to the Company or the Operating Partnership, together with the applicable legal
rate of interest thereon, in cases in which such Indemnitee is found not to be entitled to indemnification.

    25

     

    

 

21.         INDEMNIFICATION
BY ADVISOR. The Advisor shall indemnify and hold harmless the Company and the Operating Partnership from Losses, including
reasonable attorneys’ fees to the extent that such Losses are not fully reimbursed by insurance and are incurred by reason
of the Advisor’s bad faith, fraud, willful misfeasance, intentional misconduct, gross negligence or reckless disregard of
its duties; provided, however, that the Advisor shall not be held responsible for any action of the Board in following
or declining to follow any advice or recommendation given by the Advisor.

 

22.         NOTICES.
Any notice, report or other communication (each a “Notice”) required or permitted to be given hereunder
shall be in writing unless some other method of giving such Notice is required by the Articles of Incorporation, the By-laws, and
shall be given by being delivered by hand, by courier or overnight carrier or by registered or certified mail to the addresses
set forth below:

 

	To the Company:	American Finance Trust, Inc.
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention:  Edward M. Weil, Jr.
	 	                   President
	 	 
	 	with a copy to:
	 	 
	 	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, New York 10036
	 	Attention: Peter M. Fass, Esq.
	 	Attention: James P. Gerkis, Esq.
	 	 
	To the Operating Partnership:	American Finance Operating Partnership, L.P.
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention: Edward M. Weil, Jr.
	 	 
	 	with a copy to:
	 	 
	 	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, New York 10036
	 	Attention: Peter M. Fass, Esq.

 

    26

     

    

 

	To the Advisor:	American Finance Advisors, LLC
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention: Edward M. Weil, Jr.
	 	 
	 	with a copy to:
	 	 
	 	Paul, Weiss, Rifkind, Wharton & Garrison LLP
	 	1285 Avenue of the Americas
	 	New York, New York 10019
	 	Attention: Jeffrey D. Marell, Esq.

 

Any party may at any time give Notice in writing to the other
parties of a change in its address for the purposes of this Section 22.

 

23.         MODIFICATION.
This Agreement shall not be amended, supplemented, terminated, or discharged, in whole or in part, except by an instrument
in writing signed by the parties hereto, or their respective successors or assignees.

 

24.         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.

 

25.         COMPANY
EXISTING PROPERTY MANAGEMENT AND LEASING AGREEMENT; COMPANY ADDITIONAL AGREEMENTS. The Advisor acknowledges and agrees that
the Company Existing Property Management and Leasing Agreement constitutes the only agreement of the Advisor or its Affiliates
with respect to property management and leasing of properties and assets of the Company, the Operating Partnership and/or their
subsidiaries. At such time, if at all, that the Company Additional Agreements become effective at the Effective Time, then such
Company Additional Agreements shall apply solely to: (i) those real estate properties owned by American Realty Capital –
Retail Centers of America, Inc. and American Realty Capital Retail Operating Partnership, L.P. and/or their subsidiaries immediately
prior to the Effective Time and (ii) any existing anchored, stabilized core retail properties, such as power centers and lifestyle
centers, acquired by the Company, the Operating Partnership and/or their subsidiaries after the Effective Time and during the term
of such Company Additional Agreements. In the event that the Company, the Operating Partnership and/or their subsidiaries acquires
a Property after the Effective Date that is neither (x) a triple or double net leased Property similar to the properties currently
owned by Company nor (y) an existing anchored, stabilized core retail Property, such as a power center or lifestyle center, then
the Company and Advisor shall use good faith, reasonable efforts to agree on market-based terms and conditions for the management
and leasing of such property.

 

26.         GOVERNING
LAW. 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.

 

    27

     

    

 

27.         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 or usage of the trade inconsistent with any of the terms hereof.

 

28.         NO
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.

 

29.         EFFECTIVENESS
OF THIRD AMENDED AND RESTATED ADVISORY AGREEMENT. This Third Amended and Restated Advisory Agreement shall not become effective
for any purpose until the Effective Time and prior to the Effective Time the Second Amended and Restated Advisory Agreement shall
remain in full force and effect; and in the event that Closing under the Merger Agreement does not occur or the Merger Agreement
is terminated, then this Third Amended and Restated Advisory Agreement shall not take effect and the Second Amended and Restated
Advisory Agreement shall continue in full force and effect.

 

30.         PRONOUNS
AND PLURALS. Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

 

31.         HEADINGS.
The titles of sections and subsections 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.

 

32.         EXECUTION
IN COUNTERPARTS. This Agreement may be executed (including by facsimile transmission) 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.

 

[Remainder of page intentionally left
blank]

 

    28

     

    

  

IN WITNESS WHEREOF, the undersigned have
executed this Agreement as of the date first written above.

 

	 	AMERICAN FINANCE TRUST, INC.
	 	 	 
	 	By:  	/s/ Edward M. Weil, Jr.
	 	 	Name:	 Edward M. Weil, Jr.
	 	 	Title:	Chief Executive Officer
	 	 	 
	 	AMERICAN FINANCE OPERATING PARTNERSHIP, L.P.
	 	 	 
	 	By:	American Finance Trust, Inc. its General Partner
	 	 	 
	 	By:	/s/ Edward M. Weil, Jr.
	 	 	Name: 	Edward M. Weil, Jr.
	 	 	Title:	Chief Executive Officer
	 	 	 
	 	AMERICAN FINANCE ADVISORS, LLC
	 	 	 
	 	By:	American Realty Capital Trust V Special Limited Partner, LLC, its sole member
	 	 	 
	 	By:	AR Global Investments, LLC, its sole member
	 	 	 
	 	By:	/s/ Jesse C. Galloway
	 	 	Name:  	Jesse C. Galloway
	 	 	Title:	Authorized SignatoryExhibit 10.2

 

Execution Version

 

AMENDED AND RESTATED 

 

PROPERTY MANAGEMENT AGREEMENT 

 

by and between 

 

AMERICAN FINANCE PROPERTIES, LLC

 

and 

 

AMERICAN FINANCE TRUST, INC.

 

     

     

    

 

PROPERTY MANAGEMENT AGREEMENT 

TABLE OF CONTENTS

 

	ARTICLE 1 DEFINITIONS	2
	 	 	 
	1.1	Definitions	3
	 	 	 
	1.2	Certain Defined Terms	3
	 	 	 
	ARTICLE 2 ENGAGEMENT OF THE PROPERTY MANAGER	3
	 	 	 
	2.1	Engagement	3
	 	 	 
	2.2	Status of the Property Manager; Limitation on Authority	3
	 	 	 
	ARTICLE 3 DUTIES OF THE PROPERTY MANAGER	3
	 	 	 
	3.1	Duties; Standard of Performance	3
	 	 	 
	3.2	Specific Duties of the Property Manager	4
	 	 	 
	 	A.	Collection of Moneys; Enforcement of Rights	4
	 	 	 	 
	 	B.	Property Documents	4
	 	 	 	 
	 	C.	Maintenance	5
	 	 	 	 
	 	D.	Services	5
	 	 	 	 
	 	E.	Taxes	5
	 	 	 	 
	 	F.	Insurance; Reports and Claims	6
	 	 	 	 
	 	G.	Compliance with Laws; Matters of Record	6
	 	 	 	 
	 	H.	Construction	7
	 	 	 	 
	 	I.	Employees	7
	 	 	 	 
	 	J.	Notices	7
	 	 	 	 
	 	K.	Extraordinary Services	8
	 	 	 	 
	 	L.	Lease Obligations	8
	 	 	 	 
	 	M.	Third-Party Property Managers	8
	 	 	 	 
	 	N.	Inspections	8
	 	 	 	 
	 	O.	Accounting Services	8
	 	 	 
	3.3	Contracts	8
	 	 	 
	3.4	Use of Property	9
	 	 	 
	3.5	Cash Management	9
	 	 	 
	 	A.	Clearing Account	9
	 	 	 	 
	 	B.	Order of Priority of Funds in Clearing Account	9
	 	 	 	 
	 	C.	Operating Account	9
	 	 	 
	3.6	Indemnification	11
	 	 	 
	3.7	Complaints and Notices	12

 

    	 	i	 

     

    

 

	3.8	Tenant Insurance Certificates	12
	 	 	 
	3.9	Licenses and Authorizations	12
	 	 	 
	3.10	Asbestos and Similar Compliance Matters	12
	 	 	 
	3.11	Special Billings	13
	 	 	 
	ARTICLE 4 ACCOUNTING, RECORDS, REPORTS	13
	 	 	 
	4.1	Records	13
	 	 	 
	4.2	Reports and Supporting Documentation	13
	 	 	 
	4.3	Budgets	14
	 	 	 
	4.4	Audit	15
	 	 	 
	ARTICLE 5 EXPENSES AND COMPENSATION	15
	 	 	 
	5.1	Payment of Expenses	15
	 	 	 
	5.2	Expenditure Authorization	17
	 	 	 
	 	A.	Utilities	17
	 	 	 	 
	 	B.	Expenses per Budget	17
	 	 	 	 
	 	C.	Emergencies	17
	 	 	 
	5.3	Compensation for Management Services	18
	 	 	 
	 	A.	Management Fee	18
	 	 	 	 
	 	B.	Transition Fee	18
	 	 	 	 
	 	C.	Construction Fee	18
	 	 
	ARTICLE 6 TERM	19
	 	 
	6.1	Term	19
	 	 	 
	6.2	Sale of Properties	19
	 	 	 
	6.3	Termination Upon Notice	19
	 	 	 
	6.4	Termination for Cause	19
	 	 	 
	6.5	Effect of Termination	20
	 	 	 
	ARTICLE 7 REPRESENTATIONS AND WARRANTIES  OF THE PROPERTY MANAGER	21
	 	 	 
	7.1	Organization	21
	 	 	 
	7.2	Authorization	21
	 	 	 
	7.3	Validity	21
	 	 	 
	7.4	Licenses	21
	 	 	 
	7.5	Independent Contractor	21
	 	 	 
	ARTICLE 8 MISCELLANEOUS	21
	 	 	 
	8.1	Company’s Rights	21
	 	 	 
	8.2	Company’s Representative	22

  

    	 	ii	 

     

    

 

	8.3	No Personal Liability	22
	 	 	 
	8.4	Nature of Relationship	22
	 	 	 
	8.5	No Third Party Beneficiaries	22
	 	 	 
	8.6	Notices	23
	 	 	 
	8.7	Amendments	23
	 	 	 
	8.8	Exhibits	24
	 	 	 
	8.9	Laws	24
	 	 	 
	8.10	No Implied Waivers	24
	 	 	 
	8.11	Severability	24
	 	 	 
	8.12	Governing Law	24
	 	 	 
	8.13	Benefit and Assignment	24
	 	 	 
	8.14	Effectiveness of Property Management Agreement	24
	 	 	 
	8.15	Headings	25
	 	 	 
	8.16	Counterparts	25
	 	 	 
	8.17	Entire Agreement	25

 

		SCHEDULE A	Transition Fee

 

    	 	iii	 

     

    

 

AMENDED AND RESTATED

 

PROPERTY MANAGEMENT AGREEMENT

 

THIS AMENDED AND
RESTATED PROPERTY MANAGEMENT AGREEMENT is made as of September 6, 2016 (the “Property Management Agreement”)
by and between AMERICAN FINANCE TRUST, INC., a Maryland corporation (the “Company”) and AMERICAN FINANCE PROPERTIES,
LLC, a Delaware limited liability company (the “Property Manager”).

 

WHEREAS, pursuant to
that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of the date hereof, by and among
the Company, Genie Acquisition, LLC (“Merger Sub”), American Realty Capital Operating Partnership V, L.P., American
Realty Capital – Retail Centers of America, Inc. (“RCA”) and American Realty Capital Retail Operating
Partnership, L.P. (“RCA OP”), (i) RCA was merged with and into Merger Sub, with Merger Sub being the surviving
entity in the merger and (ii) RCA OP was merged with and into American Finance Operating Partnership, L.P. (the “Company
OP”), with the Company OP being the surviving entity in the merger;

 

WHEREAS, American Realty
Capital Retail Advisor, LLC (the “Former Property Manager”) and RCA entered into that certain Property Management
Agreement, dated as of March 17, 2011 (the “Original Property Management Agreement”);

 

WHEREAS, in accordance
with Section 8.13 of the Original Property Management Agreement and in connection with the Merger Agreement, the Former Property
Manager assigned the Original Property Management Agreement to the Property Manager with the effectiveness of such assignment conditioned
on, subject to, and only at, the Effective Time (as defined in the Merger Agreement, and such date being the “Effective
Date”), and in the event that Closing (as defined in the Merger Agreement) does not occur or the Merger Agreement is
terminated in accordance with its terms, then the assignment of the Original Property Management Agreement shall not take effect
and shall be void ab initio;

 

WHEREAS, in accordance
with Section 8.7 of the Original Property Management Agreement and in connection with the Merger Agreement, the Company and the
Property Manager desire to amend and restate the Original Property Management Agreement as set forth in the Property Management
Agreement with the effectiveness of such amendment and restatement conditioned on, subject to, and only at, the Effective Time,
and in the event that Closing (as defined in the Merger Agreement) does not occur or the Merger Agreement is terminated in accordance
with its terms, then this Property Management Agreement shall not take effect and the Original Property Management Agreement shall
continue in full force and effect;

 

WHEREAS, the Company
intends to raise money from the sale of its common stock to be used, net of payment of certain offering costs and expenses, for
investment in the acquisition of certain real estate and other real estate-related investments, some or all of which are to be
acquired and held by the Owner (as hereinafter defined) on behalf of the Company; and

 

     

     

    

  

WHEREAS, the Company
is retaining the Property Manager to manage and coordinate the day-to-day operations of the Properties acquired by the Owner, and
the Property Manager desires to be so retained, all under the terms and conditions set forth in this Property Management Agreement.

 

NOW, THEREFORE, in
consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto, intending to be legally bound hereby, do hereby agree, as follows:

 

ARTICLE 1

DEFINITIONS

 

1.1           Definitions.
The following defined terms used in this Property Management Agreement shall have the meaning specified below:

 

“Investment
Property Management Agreement” means an agreement between a third-party property manager and an Owner Subsidiary, which
governs the day-to-day management of the Property owned by such Owner Subsidiary.

 

“Owner”
means the Company, the operating partnership of which the Company is the general partner, and all Owner Subsidiaries that own,
in whole or in part, on behalf of the Company, any Properties.

 

“Owner Subsidiary”
or “Owner Subsidiaries” means an entity or entities formed by or at the direction of the Company or a subsidiary
thereof to directly own, in whole or in part, on behalf of the Company or such subsidiary, any Properties.

 

“Properties”
means any of the RCA Properties and Specified Properties.

 

“RCA Owner”
means RCA, the operating partnership of which RCA is the general partner, and all RCA Owner Subsidiaries that own, in whole or
in part, on behalf of RCA, any Properties.

 

“RCA Owner
Subsidiary” or “RCA Owner Subsidiaries” means an entity or entities formed by or at the direction
of RCA or a subsidiary thereof to directly own, in whole or in part, on behalf of RCA or such subsidiary, any Properties.

 

“RCA Properties”
means all real estate properties owned, directly or indirectly, by the RCA Owner immediately prior to the Effective Date and all
tracts owned by the RCA Owner immediately prior to the Effective Date on which the RCA Owner will develop or rehabilitate improvements
in connection with an anchored, stabilized core retail property, such as a power center or lifestyle center.

 

    	 	2	 

     

    

  

“Specified
Properties” means real estate properties that will be acquired by the Owner after the Effective Date (i) that constitute
anchored, stabilized core retail properties, such as a power center or lifestyle center or (ii) on which the Owner will develop
or rehabilitate anchored, stabilized core retail properties, such as a power center or lifestyle center.

 

1.2           Certain
Defined Terms. Capitalized terms used herein but not defined shall have the meanings ascribed to them in the Amended and Restated
Advisory Agreement, dated as of the date hereof, by and among the Company, the Property Manager and the Company OP (the “Advisory
Agreement”).

 

ARTICLE 2

ENGAGEMENT OF THE PROPERTY MANAGER

 

2.1           Engagement.
The Company hereby engages and retains the Property Manager to manage, operate and maintain the Properties as property manager
on behalf of the Owner, on the terms in this Property Management Agreement, and the Property Manager accepts such engagement and
agrees to perform such service on such terms; it being understood, that the Property Manager may engage a third party (each a
“Sub-Manager”) as the Property Manager deems necessary or desirable, without the consent of the Company, and
may delegate to a Sub-Manager all or a portion of the services to be provided hereunder to such Sub-Manager. Any fees payable
to a Sub-Manager (i) shall be the responsibility of the Property Manager out of payments received from the Company and (ii) may,
at the instruction of the Property Manager, be deducted from the Operating Account (as hereinafter defined) or the fees payable
hereunder and paid by the Owner to such Sub-Manager, or be paid directly by the Property Manager to such Sub-Manager, in the Property
Manager’s sole discretion. Any fees payable by an Owner to a Sub-Manager or Lincoln Retail REIT Services, LLC in respect
of services to be provided hereunder, whether engaged directly or otherwise, shall be a dollar for dollar reduction in the amounts
payable by the Company to the Property Manager under this Property Management Agreement.

 

2.2           Status
of the Property Manager; Limitation on Authority. The Property Manager shall act under this Property Management Agreement
as an independent contractor and not as the Owner’s agent or employee. The Property Manager shall not have the right, power
or authority to enter into agreements or incur liability on behalf of the Owner except as expressly set forth herein. Any action
taken by the Property Manager which is not expressly permitted by this Property Management Agreement shall not bind the Owner.

 

ARTICLE 3

DUTIES OF THE PROPERTY MANAGER

 

3.1           Duties;
Standard of Performance. The Property Manager shall devote its commercially reasonable efforts to performing its duties hereunder
to manage, operate and maintain the Properties in a diligent, careful and professional manner to maximize all potential revenues
to the Owner Subsidiaries and to minimize expenses and losses to the Owner Subsidiaries. The services of the Property Manager
are to be of a scope and quality not less than those generally performed by first class, professional managers of properties similar
in type and quality to the Properties and located in the same market area as the Properties. The Property Manager will at all
times act in good faith, in a commercially reasonable manner and in a fiduciary capacity with respect to the proper protection
of and accounting for each Owner Subsidiary’s assets; it being understood, that, the Property Manager’s fiduciary
relationship with each Owner Subsidiary is limited solely to the proper protection of and accounting for the Owner Subsidiary’s
assets and the Property Manager owes no other fiduciary duties to the Owner or security holders of any Owner entity.

 

    	 	3	 

     

    

  

3.2           Specific
Duties of the Property Manager. Without limiting the obligations of the Property Manager under other provisions of this Property
Management Agreement, the Property Manager will have the following specific duties:

 

A.           Collection
of Moneys; Enforcement of Rights. The Property Manager will use diligent, commercially reasonable efforts to collect all rent
and other payments due from tenants in the Properties and any other sums due the Owner Subsidiaries regarding the Properties.
To the extent tenant leases affecting any Property so require, the Property Manager shall timely make or verify any calculations
that are required to determine the amount of rent due from tenants, including without limitation calculating percentage rent,
operating expense “pass-throughs” and consumer price index adjustments and, where required, shall give timely notice
thereof to tenants.

 

The Property Manager
will promptly and diligently enforce the Owner Subsidiaries’ rights under any tenant leases affecting any Property, including
without limitation taking the following actions where appropriate, in accordance with the procedures specified in the Property
Manager’s property management handbook in effect as of the date hereof: (i) terminating tenancies, (ii) instituting and prosecuting
actions, and evicting tenants, (iii) settling, compromising and releasing such actions or suits or re-instituting such tenancies,
(iv) recovering rents and other sums due by legal proceedings in a court of general jurisdiction, (v) signing and serving such
notices as are deemed necessary by the Property Manager, and (vi) recovering rents and other sums due by legal proceedings in a
magistrate’s court or similar jurisdiction; in each case, the Property Manager shall promptly notify the Company of such
action in writing. If authorized by the Company, the Property Manager shall consult an attorney for the purpose of enforcing an
Owner Subsidiary’s rights or taking any such actions and the Company shall have the right to designate counsel for any matter
and to control all litigation affecting or arising out of the operation of any Property. The Property Manager shall keep the Company
informed of any dissatisfaction with the law firm or such services or the reasonableness of the cost thereof.

 

B.           Property
Documents. The Property Manager will pay all sums out of the applicable Operating Account from time to time due from each
Owner Subsidiary and otherwise comply with the obligations of each Owner Subsidiary under any mortgages, deed of trust, leases,
easements, restrictions, service contracts and other agreements now or hereafter affecting the Properties as instructed by the
Company (the “Property Documents”).

 

    	 	4	 

     

    

  

C.           Maintenance.
Subject to the applicable Budget or any Company constraints, the Property Manager shall perform or cause to be performed under
contract or agreement with contractors, subcontractors or consultants, entered into in the name and on behalf of each Owner Subsidiary,
all ordinary maintenance, repairs, alterations, replacements and installations, do all decorating and landscaping, and purchase
all supplies necessary for (i) the proper operation of each Property, (ii) the fulfillment of the applicable Owner Subsidiary’s
obligations under any lease of space in any Property, (iii) the fulfillment of the Owner’s obligations under any mortgage
encumbering any Property of which the Property Manager has actual knowledge, and (iv) compliance with all covenants, conditions
and restrictions affecting any Property of which the Property Manager has actual knowledge.

 

Subject to the applicable
Budget or the Company’s constraints, the Property Manager shall obtain all necessary receipts, releases, waivers, discharges
and assurances necessary to keep each Property free of any mechanics’, laborers’, materials suppliers’ or vendors’
liens in connection with work, materials or supplies for which the Property Manager contracts. All such documentation shall be
in such form as reasonably specified and required by the Company.

 

D.           Services.
The Property Manager shall arrange for, and negotiate contracts on behalf of the Owner Subsidiaries for, gas, electricity, water,
telephone, trash collection, sewer, elevator service, landscaping, janitorial service, security service and such other services
as are, or will be, furnished to the Properties for terms of not greater than one year, unless otherwise approved by the Company.
All such service contracts shall be entered into by the Property Manager for the account of and in the name of the applicable
Owner Subsidiary and shall be terminable on thirty (30) days’ notice or less, unless otherwise approved by the Company.
The funds necessary to pay for such services shall be paid from the applicable Operating Account. All utilities contracts shall
be in the name of the applicable Owner Subsidiary, with all notices to be addressed to the Company, with a copy to the Property
Manager, at the Property Manager’s address.

 

E.           Taxes.
Promptly following receipt, the Property Manager shall send to the Company all notices concerning the Properties regarding taxes
or valuations. The Owner shall pay all such taxes unless the Owner requests the Property Manager to pay such taxes, in which case
the Property Manager shall pay such taxes from the applicable Operating Account. Upon the Company’s written request, the
Property Manager in conjunction with an outside third party named by the Company, shall protest and attempt to reduce the property
taxes or adjust the valuation for any Property through administrative appeal for a fee to be negotiated.

 

    	 	5	 

     

    

  

F.           Insurance;
Reports and Claims. The Property Manager shall, on behalf of and at each Owner Subsidiary’s expense, procure and maintain
throughout the term hereof through Independent Insurance Advisors, as each Owner Subsidiary’s designated insurance representative,
insurance coverages with respect to each Property, including: (i) all-risk replacement value property damage coverage insuring
the full value of the Properties and the applicable Owner Subsidiary’s personal property and fixtures and rent loss coverage
for at least twelve (12) months; (ii) commercial general liability and umbrella liability coverages in an amount not less than
$10,000,000 combined single limit per occurrence and in the aggregate per year; and (iii) such other insurance as the Property
Manager deems appropriate. All insurance policies shall have provisions giving the Property Manager thirty (30) days’ prior
notice of cancellation, non-renewal or material modification of the coverage. All insurance policies maintained by the Owner with
respect to the Properties shall be issued through insurers with an A.M. Best rating of A or better and shall include waiver of
subrogation provisions in favor of the Owner. The Property Manager, any Sub-Manager engaged by the Property Manager in accordance
with Section 2.1 of this Property Management Agreement, the Company and the Company’s Representative as defined in
Section 8.2 hereof shall be named as additional insureds (with form CG 2010 85 or equivalent) on any liability insurance maintained
by the Owner on each Property, and such liability insurance shall be primary to and not contribute with any liability insurance
maintained by the Property Manager.

 

The Property Manager
shall promptly investigate and make a full, timely, written report to the Company and Independent Insurance Advisors as to all
accidents, claims for damages relating to the ownership or operation and maintenance of any Property, and any damage or destruction
to any Property and the estimated cost of repair thereof. Thereafter, unless otherwise directed by the Company, Independent Insurance
Advisors will timely process all casualty insurance claims on behalf of the applicable Owner Subsidiary, obtain the necessary documentation
therefor and the Property Manager will prepare any and all reports required by Independent Insurance Advisors or any insurance
company in connection therewith. All such reports shall be timely filed with the insurance company as required under the terms
of the insurance policy involved. The Property Manager is authorized to settle any and all claims against insurance companies arising
out of any policies, including the execution of proofs of loss, the adjustment of losses, signing of receipts and the collection
of money. Finally, the Property Manager will fully cooperate with and assist all liability insurance carriers and their authorized
agents and adjusters in defending, litigating or settling any liability claims.

 

G.           Compliance
with Laws; Matters of Record. Subject to the other provisions of this Property Management Agreement, the Property Manager
will take such action as may be necessary to comply with any and all laws applicable to any Property and the Property Manager’s
employees and all known ordinances, regulations and orders relative to the use, operation, repair and maintenance of the Properties
and with the rules, regulations or orders of the local Board of Fire Underwriters or other similar body. Expenses incurred in
so complying and in correcting any such violation shall be included in the Budget or otherwise approved in advance by the Company.
The Property Manager agrees to perform all obligations of each Owner Subsidiary and pay all costs, expenses and other amounts
(including, without limitation, any liquidated damages) which each Owner Subsidiary or the Property Manager may be required to
pay in accordance with, and to comply and cause a Property to comply in all respects with all of the terms and conditions of,
any reciprocal easement agreement, any ground lease, mortgage, deed of trust or other security instruments affecting such Property
of which the Property Manager has actual knowledge, or any other agreement or document of record now affecting such Property or
hereafter executed or filed with the Company’s written consent (each, herein referred to as a “Matter of Record,”
and collectively as the “Matters of Record”) during the term of this Property Management Agreement. Further,
the Property Manager shall not cause, or fail to take commercially reasonable actions to prevent, a divestiture of title from
any of the Owner Subsidiaries under any encumbrance or any other Matter of Record. Each Owner Subsidiary shall be responsible
for any expenses, costs or other amounts paid by the Property Manager in respect of compliance with this Section 3.2(G) which
are not otherwise included in the applicable Budget.

 

    	 	6	 

     

    

  

H.           Construction.
If the Company has authorized any construction or renovation on any Property, including but not limited to construction of tenant
finish-out, and the Company has requested in writing the services of the Property Manager with regard to any construction, renovation
or tenant finish-out, then the Property Manager will (i) review and forward to the Company all space planning layouts, drawings,
plans and specifications pertaining to such construction, together with a recommendation as to approval thereof by the Company;
(ii) supervise third party contractors responsible for construction or renovation work for a fee to be negotiated; (iii) solicit
or supervise the solicitation of competitive bids following the Company’s guidelines for all construction contracts in excess
of $10,000; (iv) require that all construction contracts and subcontracts contain provisions adequately protecting the applicable
Owner Subsidiary, in accordance with local procedures and any requirements of the Company, against mechanic’s, materialman’s
or similar liens affecting such Property and requiring ten percent (10%) retainage until at least thirty (30) days after completion;
(v) inspect all work in place; (vi) prepare and review all draws requested for submission to the Company and, if requested by
the Company, pay all draw requests on approval by the Company; and (vii) compile all documentation related to a construction project
necessary for the release of any lender reserves related to such construction project.

 

I.           Employees.
The Property Manager has the right to be reimbursed for (i) employees that are employed at the Properties or at management field
offices or corporate offices, should there be no office located on site. These employees shall be charged to the respective Property
on the basis of the percentage of time spent attending to such Property based on actual wages and fringe benefits, unless the
Company and the Property Manager agree in writing to another basis; and (ii) roving maintenance personnel to the extent needed
at the Properties from time to time, and these employees shall be charged to the respective Properties at a reasonable hourly
rate pre-approved by the Company and only for the actual and reasonably necessary time spent on such Property by such personnel.
The Company shall have no right to supervise or direct such agents or employees.

 

J.           Notices.
The Property Manager will promptly notify the Company of any of the following if in any way relating to the Properties: notice
of any claim of violation of any governmental or legal requirement, any notice of any claim of liability, any summons or other
legal process, any damage, any default or alleged default by landlord or tenant under any lease, and any other material information.
The Property Manager will fully cooperate with the Company in all legal and arbitration proceedings relating to any Property.

 

    	 	7	 

     

    

  

K.          Extraordinary
Services. For those efforts of the Property Manager requested by an Owner Subsidiary or the Company, which are not standard,
recurring property management activities and not anticipated to occur at least once per year, the Property Manager shall be compensated
on a basis to be agreed to in writing and in advance by such Owner Subsidiary (or the Company on its behalf) and the Property
Manager. For illustrative purposes, examples of such additional services include, but are not limited to, efforts related to estoppel
certificates, subordination and non-disturbance agreements, information pertaining to sale or financing of any Property, tax matters
(other than ad valorum real estate taxes), casualty or condemnation to any Property, lawsuit defense, except for intentional misdeeds
of the Property Manager, and other items of a similar non-recurring nature.

 

L.           Lease
Obligations. The Property Manager shall perform all duties of the landlord under all leases insofar as such duties relate
to operation, maintenance and day-to-day management of the Properties. The Property Manager shall also provide or cause to be
provided, at each Owner Subsidiary’s expense, all services normally provided to tenants of like premises, including where
applicable and without limitation, gas, electricity or other utilities required to be furnished to tenants under leases, normal
repairs and maintenance, and cleaning, and janitorial service. The Property Manager shall arrange for and supervise the performance
of all installations and improvements in space leased to any tenant which are either expressly required under the terms of the
lease of such space or that are customarily provided to tenants. The Property Manager shall maintain business-like relations with
the tenants of the Properties.

 

M.           Third-Party
Property Managers. The Property Manager shall be responsible for overseeing the performance of any third-party property managers
appointed in accordance with this Property Management Agreement.

 

N.           Inspections.
The Property Manager shall conduct periodic on-site property visits to some or all (as the Company or its designee deems reasonably
necessary or desirable) of the Properties to inspect the physical condition of the Properties and to evaluate the performance
of the third-party property managers and on-site personnel of the Property Manager.

 

O.           Accounting
Services. The Property Manager shall use the Company’s accounting application and follow the Company’s processes
required in connection with the preparation of the Budget and financial reporting for each of the Properties.

 

3.3           Contracts.
In fulfilling its duties to the Owner, the Property Manager may and hereby is authorized to enter into any leases, contracts or
other agreements on behalf of the Owner in the ordinary course of the management, operation and maintenance and leasing of the
Properties.

 

    	 	8	 

     

    

  

3.4           Use
of Property. The Property Manager will not knowingly permit the use of any Property for any purpose which might impair any
policy of insurance on such Property or which might render any loss insured thereunder uncollectible or which would be in violation
of any applicable law. The Property Manager will operate and maintain the Properties according to the highest standards achievable
consistent with the Company’s authorization. The Property Manager will use commercially reasonable efforts to secure compliance
by tenants with their respective leases.

 

3.5           Cash
Management.

 

A.           Clearing
Account. The Property Manager shall cause all gross revenue in respect of each Property to be transmitted directly into an
individual clearing account (each a “Clearing Account”) controlled by the applicable Owner Subsidiary, established
with a financial institution to be determined by the Property Manager (the “Clearing Bank”), except to the
extent the payments in respect of a Property are required by a lender to be made into a lockbox account, in which case payments
will be deposited in the Clearing Account for such Property after release from such lockbox account. Without in any way limiting
the foregoing if the Property Manager receives any gross revenue from a Property, then (i) such amounts shall not be commingled
with any other funds or property of the Property Manager, and (ii) the Property Manager shall deposit such amounts in the Clearing
Account for such Property within one (1) business day of receipt.

 

B.           Order
of Priority of Funds in Clearing Account. On the 10th day of each month, all funds deposited into each Clearing
Account shall be applied on such date in the following order of priority: (i) first, if applicable, to make the required
payments of debt service, including late payment charges, if any, for such Property; and (ii) second, any remaining funds
in such Clearing Account shall be swept by the Clearing Bank into the Operating Account (as hereinafter defined) for such Property
and applied and disbursed in accordance with this Property Management Agreement.

 

C.           Operating
Account. All monies swept from each Clearing Account by the Clearing Bank shall be deposited in a separate depository account
for each Property in the applicable Owner Subsidiary’s name (each an “Operating Account”). Each Operating
Account shall be opened by the Property Manager, upon receipt of a fully-executed Owner Subsidiary Property Management Agreement
between the Property Manager and the applicable Owner Subsidiary and a W9 completed by such Owner Subsidiary, at U.S. Bank, N.A.
or another bank to be determined by the Property Manager. The signature card for each Operating Account shall indicate that the
Property Manager is dealing with the Operating Account as a fiduciary of the applicable Owner Subsidiary. Each Operating Account
and all funds therein shall at all times be the property of the applicable Owner Subsidiary. Each Owner Subsidiary shall have
electronic banking system access to its Operating Account, which shall permit it to obtain account information and make withdrawals
from such Operating Account.

 

Notwithstanding anything
to the contrary contained herein, the Company may direct payments or deposits received by the Property Manager to an operating
account relating to any Property to be controlled by the Owner Subsidiary and direct payments to be made into the Operating Account.
In such event, the Property Manager shall provide the Owner Subsidiary with all information necessary to make payments of expenses
with respect to such Property.

 

    	 	9	 

     

    

  

The Property Manager
shall remit to each Owner Subsidiary monthly, on or before the 20th day of each month, excess cash as of the end of
the preceding month, held in the Operating Account and not applied to the payment of (i) the applicable Owner Subsidiary’s
expenses as herein provided, (ii) expenses permitted by Section 5.1 hereof, and (iii) amounts payable to the Property Manager
in accordance with Section 5.3 hereof, less applicable reserves for real estate taxes, debt service, capital improvements
or operating expenses and Ten Thousand Dollars ($10,000) as reserve for working capital and other contingencies, and any additional
amount as the Company may authorize for such purposes. The remittance of funds to an Owner Subsidiary shall be compatible with
the financial reports provided by the Property Manager pursuant to Section 4.2.

 

If an Owner Subsidiary
should make any request for a distribution other than the standard monthly distribution to such Owner Subsidiary on or before the
20th day of each month as noted immediately above, such request by the Owner Subsidiary must be directed to the Property
Manager in writing with a minimum of two (2) full working days’ advance notice. Except to the extent it would cause there
to be insufficient funds to pay amounts due to the Property Manager under Section 5.1 and Section 5.3 hereof, every
attempt will be made to process the additional distribution request through the Property Manager’s accounting department
in a timely manner, but the Property Manager will not process any distribution based on a telephone call or be expected to accomplish
such distribution with less than two (2) full working days’ advance written notice.

 

Other than the monthly
distribution noted above, if required by state law, the Property Manager will deposit security deposits and/or advance rentals
in separate accounts in the name of the applicable Owner Subsidiary at said financial institution. All monies held in Operating
Accounts shall in no event be commingled with the Property Manager’s own funds or with funds held by the Property Manager
for the account of other parties. The Property Manager shall have no proprietary interest in the Operating Accounts, or in any
other account authorized hereby, and all sums collected by the Property Manager relating to each of the Properties and all sums
placed in such account or accounts by the applicable Owner Subsidiary or the Company will be the property of such Owner Subsidiary
and held in trust by the Property Manager for such Owner Subsidiary. The Property Manager agrees to pay all invoices directly from
the Operating Account unless directed otherwise by the applicable Owner Subsidiary or the Company. The Property Manager may draw
on each Operating Account only to pay (i) operating expenses permitted by Section 5.1 hereof, (ii) amounts payable to the
applicable Owner Subsidiary, (iii) amounts payable to the Property Manager under Section 5.3 hereof, and (iv) a specified
amount to a payee which the applicable Owner Subsidiary may from time to time expressly authorize in writing.

 

    	 	10	 

     

    

  

Each of the Management
Fee, the Transition Fee and the Construction Fee shall be paid to the Property Manager in accordance with Section 5.3 hereof.
In accordance with and pursuant to Section 4.2 hereof, the Property Manager shall prepare and submit an invoice to the Company
which shall include a computation of the fees paid to the Property Manager in accordance with Section 5.3 and any expenses
to be reimbursed to the Property Manager in accordance with Sections 5.1 and 5.2. The Company shall have the right
to review such invoice and obtain any supporting documentation with respect thereto from the Property Manager. To the extent that
the Company believes the computation provided by the Property Manager is inconsistent with the computation permitted hereunder,
the Company and the Property Manager shall work together in good faith to reach a computation of such fees which is reasonably
agreeable to both parties. If the Company and the Property Manager agree that one or more of the fees paid to the Property Manager
for a prior period exceeded the amount permitted hereunder, the Property Manager shall deduct the amount of such excess from the
fees it is to be paid in accordance with Section 5.3 hereof for the current calendar month.

 

3.6           Indemnification.
The Owner shall indemnify, defend and hold the Property Manager and any Sub-Manager directly or indirectly engaged by the Property
Manager in accordance with Section 2.1 of this Property Management Agreement harmless from and against all claims, damages
and costs (including counsel fees) arising out of or in connection with the management of the Properties and the operation thereof,
except for acts of the Property Manager or a Sub-Manager, as applicable, taken outside of the scope of this Property Management
Agreement or an agreement with the Sub-Manager, as applicable, and the Property Manager’s, or a Sub-Manager’s, as
applicable, engagement in acts of negligence, misconduct or fraud. Notwithstanding anything to the contrary stated herein, the
Property Manager shall be held strictly accountable for all receipts and disbursements; and the Property Manager shall indemnify
and hold the Owner harmless from and against all claims, damages and costs (including counsel fees) arising out of or in connection
with the management of the Properties and the operation thereof to the extent such claims arise out of or result from acts of
the Property Manager taken outside of the scope of this Property Management Agreement or the Property Manager’s engagement
in acts of negligence, misconduct or fraud. The Property Manager shall indemnify the Company and its Affiliates from any claims,
damages and costs (including counsel fees) arising out of or in connection with the acts of the Property Manager taken in connection
with the management of the Properties and the operation thereof or the Property Manager’s engagement in acts of negligence,
misconduct or fraud. The indemnities herein contained shall not apply to any claim with respect to which and to the extent the
indemnified party is covered by insurance; provided, that the foregoing exclusion does not invalidate the indemnified party’s
insurance coverage. Each party will procure a waiver of subrogation with respect to claims against the other party under policies
in which the other party is not a named insured, and shall promptly notice the other party in the event that any such waiver is
unobtainable or is obtainable only upon payment of an additional premium. If such waiver is obtainable only upon payment of an
additional premium, the other party shall have the right at its option to pay such additional premium.

 

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3.7          Complaints
and Notices. The Property Manager shall promptly handle complaints and requests from tenants, concessionaires and licensees.
The Property Manager shall notify the Company promptly of: (A) any notice received by the Property Manager or known to the Property
Manager of violation of any governmental requirements (and make recommendations regarding compliance therewith); (B) any notice
received by the Property Manager or known to the Property Manager of violation of covenants, conditions and restrictions affecting
any Property or noncompliance with loan documents affecting any Property, if any; (C) any fire, accident or other casualty or
damage to any Property; (D) any condemnation proceedings, rezoning or other governmental order, lawsuit or threat thereof involving
any Property known to the Property Manager; (E) any violations relative to the leasing, use, repair and maintenance of any Property
under governmental laws, rules, regulations, ordinances or like provisions known to the Property Manager; or (F) any violation
of any insurance requirement of which the Property Manager has actual knowledge. The Property Manager shall promptly deliver to
the Company copies of any documentation in its possession relating to such matters. The Property Manager shall keep the Company
reasonably informed of the status of the particular matter through the final resolution thereof. In the event the Property Manager
becomes aware of any fire or other damage to any Property or violation or alleged violation of laws respecting hazardous materials,
the Property Manager shall immediately give telephonic notice thereof to the Company. The Property Manager shall complete all
necessary and customary loss reports in connection with any fire or other damage to any Property. The Property Manager shall retain
in the records it maintains for each Property copies of all supporting documentation with reference to such notices.

 

3.8           Tenant
Insurance Certificates. The Property Manager shall use its commercially reasonable efforts to obtain from all tenants certificates
of insurance and renewals thereof required to be furnished by the terms of their leases. The Property Manager shall forward copies
of the certificates to the Company if requested by the Company. The Property Manager shall establish systems and procedures to
enforce lease requirements with regard to insurance certificates.

 

3.9           Licenses
and Authorizations.

 

A.           The
Property Manager shall obtain and keep in full force and effect all licenses, permits, consents and authorizations as may be necessary
for the maintenance, operation, management, repair, servicing or occupancy of each Property. All of such licenses, permits, consents
and authorizations shall be in the name of the applicable Owner Subsidiary, if required in writing by the Company.

 

B.           The
Property Manager shall obtain and keep in full force and effect all real estate and business licenses and governmental authorizations,
at the applicable Owner Subsidiary’s expense (including qualifications to do business) as may be necessary for the proper
performance by the Property Manager of its duties and obligations under this Property Management Agreement. All such licenses and
authorizations shall be in the name of the Property Manager.

 

3.10         Asbestos
and Similar Compliance Matters. If any Property is subject to the Occupational Safety and Health Administration’s regulations
relating to asbestos, or to any state law or regulation relating to asbestos, or to any state law or regulation relating to carcinogenic
or toxic chemicals, the Property Manager shall, at the applicable Owner Subsidiary’s expense, comply with such laws and
regulations as they relate to such Property.

 

    	 	12	 

     

    

  

3.11         Special
Billings. For purposes of this Property Management Agreement, the term “Special Billing” is defined as
any periodic billing requirement or change in a billing rate charged to a tenant under such tenant’s lease as a result of
a Property’s operating expenses, a tenant’s volume of business, or a CPI or other index, including, but not limited
to, such items as commonly are described as expense pass-throughs, recoveries, escalations, CAM or CPI adjustments, and percentage
sales or rent. Within ninety (90) days after the date each Property is acquired and becomes subject to this Property Management
Agreement, the Property Manager shall deliver a statement to the Company describing all of the information, data and documents
which the Property Manager has used to establish a basis for calculation of Special Billings for each tenant at the Properties.
During the term of this Property Management Agreement, the Property Manager shall be responsible for sending Special Billings
to each tenant in accordance with the terms of such tenant’s lease.

 

ARTICLE 4

ACCOUNTING, RECORDS, REPORTS

 

4.1           Records.
The Property Manager shall establish and maintain a comprehensive system of office records, books and accounts, as well as an
accounting and management reporting system that will duly account for all transactions relating to the Properties in a format
consistent with the Company’s accounting system. The Company and others designated by the Company shall, with prior notice
to the Property Manager, have access to such records, books and accounts and to all vouchers, files and all other material pertaining
to the Properties and this Property Management Agreement, all of which the Property Manager agrees to keep safe, available and
separate from any records not having to do with the Properties. All of such books, records and other information concerning such
Property shall be the property of the applicable Owner Subsidiary; and within sixty (60) days following termination of this Property
Management Agreement, the Property Manager shall deliver the original copies to the Company or its designate. The Property Manager
or its representatives shall have the right to inspect such books, records and other information and to make copies thereof during
a two-year period following the termination of this Property Management Agreement unless the Company requests and receives all
such books and records upon termination of this Property Management Agreement.

 

4.2           Reports
and Supporting Documentation. The Property Manager shall, during the term of this Property Management Agreement, deliver monthly
reports to the Company relating to the management and operation of the Properties for the preceding calendar month, not later
than thirty (30) days after the end of the preceding month. Reports will be delivered to the Company in an electronic format consistent
with the Company’s accounting system for each Property. The Property Manager shall deliver to the Company the following
for the preceding month, for each Property and with respect to clause (1), (2) and (8), shall also provide the information with
respect to the Properties in the aggregate:

 

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(1)         a
profit and loss statement;

 

(2)         a
balance sheet;

 

(3)         a
general ledger;

 

(4)         a
cash receipts and disbursement journal;

 

(5)         all
bank statements and bank reconciliations;

 

(6)         an
aged schedule of delinquent accounts receivable;

 

(7)         the
current rent roll;

 

(8)         a
calculation of the fees paid in accordance with Section 5.3 hereof; and

 

(9)         a
construction report, if applicable.

 

4.3           Budgets.
The Property Manager shall prepare and submit to the Company a proposed operating and capital budget, including an itemized statement
of the estimated receipts and disbursements in reasonable detail, which shall include, without limitation, reasonable detail as
to employee expenses to be reimbursed to the Property Manager for the operation, repair and maintenance of each of the Properties
(each a “Budget”), in each case for the calendar year immediately following such submission. Each Budget will
be in the form approved by the Company prior to the date thereof. Thereafter, on or before the date specified each year by the
Company (but not later than November 1st), the Property Manager shall prepare and submit to the Company preliminary Budgets for
the next calendar year followed by final Budgets for the next calendar year, incorporating any reasonable changes requested by
the Company. Such Budgets shall: (A) be prepared in accordance with the Company’s accounting system, (B) be prepared on
a cash or modified cash basis, as directed by the Company, and (C) show a month by month projection of income, expenses, capital
expenditures, reserves, and other non-recurring items. In connection with any acquisition of a Property by the Owner, the Property
Manager will prepare a Budget for such Property for the remainder of the calendar year.

 

The Company will approve
or disapprove each Budget within a reasonable time after the receipt of same, but not later than thirty (30) days after the submission
thereof to the Company. The Property Manager will make any reasonable changes to each Budget that are requested by the Company.
At such time as the Company shall request, which in no event shall exceed three (3) requests per calendar year, the Property Manager
shall submit to the Company for its approval an updated Budget incorporating such changes as shall be necessary to reflect cost
over-runs and the like or other changes occurring subsequent to the prior Budget during such period. If the Company does not disapprove
of such revised Budget within 30 days after receipt thereof by the Company, such Budget shall be deemed approved. If the Company
shall disapprove of any such Budget, the Property Manager shall submit a revised Budget, as applicable, within ten (10) days of
receipt of notice of disapproval, and the Company shall have ten (10) days to provide notice to the Property Manager if it disapproves
of any such further revised Budget.

 

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The Property Manager
shall implement each Budget and use its commercially reasonable efforts to ensure that the actual cost of operating each Property
shall not exceed the applicable Budget. The Budgets shall constitute an authorization for the Property Manager to expend necessary
monies to manage and operate the Properties in accordance with the respective Budgets and subject to the provisions of this Property
Management Agreement until subsequent Budgets are approved. The approval of non-recurring costs and capital improvements in a Budget
shall constitute an authorization for the Property Manager to collect bids for the expenditure and present a final recommendation
to the Company for expenditure of monies to implement such items called for in such Budget.

 

The Property Manager
shall provide supporting information reasonably requested by the Company in connection with their review of any Budget submitted
by the Property Manager for its review.

 

Without affecting any
other limitation imposed by this Property Management Agreement and except as may be expressly provided to the contrary elsewhere
in this Property Management Agreement, the Property Manager shall secure the prior written approval of the Company prior to incurring
any liability or obligation for any item in excess of $10,000 that is not reflected on the applicable Budget approved in writing
by the Company.

 

4.4           Audit.
At its option, the Company may at any time upon five (5) business days’ advance written notice to the Property Manager,
cause the books and financial operations of any Property to be audited by an auditor to be selected by the Company including the
internal auditing staff of the Company or any of its Affiliates. The Property Manager agrees to cooperate with such auditor and
to make any of its facilities located at such Property or the Property Manager’s office available to such auditor. Any adjustments
in amounts due and owing by either the Company or the Property Manager shall be paid promptly but no later than fifteen (15) days
following receipt of the audit. The audit shall be at the Owner’s expense.

 

ARTICLE 5

EXPENSES AND COMPENSATION

 

5.1           Payment
of Expenses. Notwithstanding any contrary provision of this Property Management Agreement, the Property Manager shall be obligated
to make payments required under this Property Management Agreement only to the extent of funds derived from the Properties or
provided by the Owner. The Property Manager shall reimburse itself from funds derived from the Properties for all expenses properly
incurred by the Property Manager under this Property Management Agreement which are either set forth in the applicable Budget
or approved by the Company, except to the extent the Property Manager is permitted to incur such expense without the Company’s
approval in accordance with this Property Management Agreement. All expenses related specifically to the operation and maintenance
of the Properties will be billed to the respective Properties. These expenses shall include, but not be limited to:

 

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(1)         documented
postage (mailing of rental statements, late notices; legal correspondence; general correspondence to tenants, vendors, etc.);

 

(2)         mileage
incurred by the Property Manager, director of property management or other personnel of the Property Manager for travel to/from
a Property and all other mileage specifically related to the operation of the Properties; specific backup will be provided. Mileage
to be charged at the then-current rate pursuant to Internal Revenue Service (IRS) guidelines;

 

(3)         documented
copies (for mass tenant mailings, copying required upon sale or other legal matters and extensive tenant or lease issues);

 

(4)         a
proportionate share of after-hours emergency phone service which is charged to the common area maintenance and billed to tenants
in accordance with each tenant’s specific lease language;

 

(5)         preparation,
printing and distribution of leasing brochures and site plans for the Properties;

 

(6)         a
proportionate share of office equipment and supplies located at the on-site or management field office should one be established
and used for the benefit of the Properties; and

 

(7)         compensation
and benefits of property management, accounting, lease administration, executive and supervisory personnel of the Property Manager.

 

Expenses which will
be paid by the Property Manager and not billed to the Properties or the Owner shall include, but may not be limited to:

 

(1)         office
furniture, phone systems and monthly bills, fixtures, space rental, etc. incurred by the Property Manager in its corporate offices
and/or general management offices; and

 

(2)         compensation
and all expenses applicable to time spent on matters other than the Properties.

 

The Company may, at
its sole discretion, expressly approve in writing the payment or reimbursement to the Property Manager of any specific expense
otherwise excluded or excepted above; and, unless expressly stated to the contrary in such written approval, such approval shall
apply only to the specific expense itemized and/or up to the amount specified in such approval.

 

    	 	16	 

     

    

  

5.2           Expenditure
Authorization.

 

A.           Utilities.
The Property Manager shall pay from the applicable Operating Account the actual amount incurred for utilities each month for each
Property without the Company’s further consent or signature on such check or withdrawal, notwithstanding that a lesser amount
therefor may have been projected or allocated in the Budget for such Property approved by the Company.

 

B.           Expenses
per Budget. With respect to each Property, to the extent set forth in the most recent Budget for such Property approved by
the Company, and if requested by the Company, the Property Manager will make all payments for debt service on mortgages secured
by such Property, for taxes and/or for the applicable Owner Subsidiary’s insurance. In addition, with respect to each Property,
to the extent set forth in the most recent Budget for such Property approved by the Company and without further consent of the
Company, the Property Manager shall pay each and every expense properly incurred in the ordinary course of managing the Properties
during the calendar year covered by the Budget; provided, that, if such expenses exceed the Budget for such Property approved
by the Company by more than ten percent (10%) during the calendar year covered by the Budget (each, an “Overrun”),
the Company may elect to terminate this Property Management Agreement solely with respect to such Property, it being understood,
that, such termination shall constitute the Company’s sole remedy with respect to such Overrun and such Overrun shall not
be deemed a breach of this Property Management Agreement, but such termination shall not prevent liability for any other breach
by the Property Manager under this Property Management Agreement; and provided further, that, the Company shall not be
permitted to so terminate this Property Management Agreement if such Budget excess (i) was due to amounts incurred for insurance,
taxes and/or utilities, and/or (ii) was caused by or resulted from the following acts: (a) acts of God; (b) flood, fire or explosion;
(c) acts of terror, war, invasion, riot or other civil unrest; (d) government order or law that becomes effective after the approval
of the Budget and was not known to the Property Manager prior to the approval of the Budget; (e) actions, embargoes or blockades
in effect after the approval of the Budget; (f) action by any governmental authority that occurs after the approval of the
Budget and was not known to the Property Manager prior to the approval of the Budget; and (g) national or regional emergency
(each of (a) through (g), a “Force Majeure Event”). If the Property Manager suffers a Force Majeure Event,
it shall give notice to the Company, stating the anticipated period of time the event is expected to continue and shall use commercially
reasonable efforts to ensure the effects of such Force Majeure Event are minimized.

 

C.           Emergencies.
Notwithstanding the foregoing, if emergency action is necessary to prevent damage to any Property or danger to persons, the Property
Manager may incur such expenses as are reasonably necessary without the prior written approval of the Company to protect such
Property or persons. The Property Manager will give prompt telephone and written notice to the Company of any such emergency repairs
for which prior approval is not required.

 

    	 	17	 

     

    

  

5.3           Compensation
for Management Services.

 

A.           Management
Fee. On or before the last business day of each month, the Property Manager shall pay itself from the respective Operating
Accounts as compensation for its management services hereunder in an amount (the “Management Fee”) equal to
four percent (4%) of the “Gross Rental Receipts” for such month (as hereinafter defined). The term “Gross
Rental Receipts” as used herein is defined as all receipts of every kind and nature actually collected from the operation
of the Property, determined on a cash basis, including without limitation, all fixed rents (including parking rents not excluded
below), common area maintenance reimbursements, tax and insurance reimbursements, percentage rental payments, utility reimbursements,
late fees, vending machine collections, service charges, rental interruption insurance, and a fifteen percent (15%) administrative
charge for common area expenses (if such an allowable expense is collected from tenants pursuant to tenant leases), and all other
forms of miscellaneous income actually collected in cash by the Owner Subsidiaries or by the Property Manager from tenants of
the Properties, net forfeited security deposits, but excluding (i) any income from investment of cash including the interest on
the Operating Account, (ii) security deposits, and any portion of forfeited security deposits allocable to compensation for
loss or damage, (iii) payments for physical installations or finish-out work, (iv) payments in the nature of indemnification or
compensation for loss, damage or liability sustained, including but not limited to insurance proceeds and condemnation awards,
(v) all purchase discounts, rental and ad valorem tax refunds or rebates, (vi) any repair or other such expense reimbursement
from individual tenants, (vii) any sums which, under normal accounting practice, are attributable to capital, (viii) executive
suite expenses, if any (e.g., personnel, equipment, etc.) paid by tenants and (ix) such other additional income the Company and
the Property Manager mutually agree to eliminate.

 

B.           Transition
Fee. For duties performed by the Property Manager in reviewing and abstracting an Owner Subsidiary’s leases and contracts,
preparing ledgers, creating a database of such Owner Subsidiary’s tenants and vendors, establishing Property bank account(s),
and similar necessary, preliminary functions, the Property Manager shall pay itself from the applicable Operating Account a one-time
fee (the “Transition Fee”) in the amount shown on Schedule A attached hereto and incorporated herein by this
reference. The Transition Fee shall be paid within thirty (30) days after execution of an Investment Property Management Agreement
with respect to a particular Property by all parties thereto or within thirty (30) days after receipt of all leases and other
documents necessary to perform a full set up of any Property, whichever is later. The Transition Fee shall be based on the number
of tenants with active leases in such Property, including those tenants whose lease term and/or rental have not yet commenced,
but who have executed leases with the applicable Owner Subsidiary, as of the Commencement Date of the applicable Investment Property
Management Agreement.

 

C.           Construction
Fee. For duties performed by the Property Manager pursuant to Section 3.2(H) hereof, the Property Manager shall pay itself
from the applicable Operating Account a fee (“Construction Fee”) equal to six percent (6%) of the construction
hard costs. In no event shall the Construction Fee be less than Five Hundred and No/100 Dollars ($500). Actual costs shall not
include fees paid by the Owner for architectural or engineering services or construction permits. No fee shall be paid for actual
costs of tenant improvements for services for which the tenant is responsible for payment. The Construction Fee shall be paid
within ten (10) days after completion of tenant’s improvements for each individual tenant or completion of capital or Property
improvement projects.

 

    	 	18	 

     

    

  

ARTICLE 6

TERM

 

6.1           Term.
The initial term of this Property Management Agreement shall commence on the Effective Date (the “Commencement Date”),
shall continue in full force and effect through October 1, 2018, and shall be automatically renewed for an unlimited number of
successive one (1) year periods thereafter, subject to earlier termination as hereinafter provided. The term of this Property
Management Agreement may be extended for such additional periods of time as the parties agree to in writing.

 

6.2           Sale
of Properties. This Property Management Agreement shall automatically terminate, in respect of a Property, upon the consummation
of any sale or other disposition of such Property by the applicable Owner Subsidiary to any entity not affiliated with the Owner.

 

6.3           Termination
Upon Notice. Either the Company or the Property Manager may terminate this Property Management Agreement upon written notice
delivered to the other party at least sixty (60) days prior to the end of any term. The effective date of any such termination
shall be the last day of the term in which such notice is given.

 

6.4           Termination
for Cause.

 

A.           The
Company may terminate this Property Management Agreement at any time, effective immediately upon written notice to the Property
Manager, if (i) the Property Manager has materially breached this Property Management Agreement; provided, that (a) the
Property Manager does not cure any such material breach within thirty (30) days of receiving notice of such material breach from
the Company, or (b) if such material breach is not of a nature that can be remedied within such period, the Property Manager does
not diligently take all reasonable steps to cure such breach or does not cure such breach within sixty (60) days; (ii) there is
fraud, criminal conduct, or willful misconduct by the Property Manager; (iii) a court of competent jurisdiction enters a decree
or order for relief in respect of the Property Manager in any involuntary case under the applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, or appoints a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of the Property Manager or for any substantial part of any of its property or orders the winding up or liquidation of
the Property Manager’s affairs; or (iv) the Property Manager commences a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or consents to the entry of an order for relief in an involuntary case
under any such law, or consents to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of the Property Manager or for any substantial part of any of its property, or makes any general
assignment for the benefit of creditors, or fails generally to pay its debts as they become due. The Property Manager agrees that
if any of the events specified in subsections (iii) or (iv) above occur, it shall give written notice thereof to the Company within
seven (7) days after the occurrence of such event.

 

    	 	19	 

     

    

  

B.           The
Property Manager may terminate this Property Management Agreement at any time, effective immediately upon written notice to the
Company, if (i) the Company has materially breached this Property Management Agreement; provided, that (a) the Company does
not cure any such material breach within thirty (30) days of receiving notice of such material breach from the Property Manager,
or (b) if such material breach is not of a nature that can be remedied within such period, the Company does not diligently take
all reasonable steps to cure such breach or does not cure such breach within sixty (60) days; (ii) there is fraud, criminal conduct,
or willful misconduct by the Company; (iii) a court of competent jurisdiction enters a decree or order for relief in respect of
the Company in any involuntary case under the applicable bankruptcy, insolvency or other similar law now or hereafter in effect,
or appoints a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Company or for any
substantial part of any of its property or orders the winding up or liquidation of the Company’s affairs; or (iv) the Company
commences a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or consents
to the entry of an order for relief in an involuntary case under any such law, or consents to the appointment of or taking possession
by a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Company or for any substantial
part of any of its property, or makes any general assignment for the benefit of creditors, or fails generally to pay its debts
as they become due. The Company agrees that if any of the events specified in subsections (iii) or (iv) above occur, it shall give
written notice thereof to the Property Manager within seven (7) days after the occurrence of such event.

 

C.           For
the avoidance of doubt, a material breach of the Amended and Restated Leasing Agreement by and between the Company and the Property
Manager, dated as of the date hereof, shall be a material breach of this Property Management Agreement.

 

6.5           Effect
of Termination. The termination of this Property Management Agreement for any reason shall not affect any right, obligation
or liability which has accrued under this Property Management Agreement on or before the effective date of such termination. Each
agreement between the Property Manager and a Sub-Manager with respect to any of the Property Manager’s duties under this
Property Management Agreement shall terminate immediately upon the termination of this Property Management Agreement. Upon termination
of this Property Management Agreement for any reason, the Property Manager will cooperate with the Company in an effort to achieve
an efficient transition of the management of the Properties without detriment to the rights of the Company or the Owner or to
the continued management of the Properties. Without limiting the foregoing, the Property Manager will, before receiving final
payment of any fees, facilitate the retrieval of or deliver to the Company or to such person or persons as the Company may direct,
all Property Documents, permits, books, records and accounts, rent rolls, insurance policies, files and other materials relating
to the Properties, including without limitation any bank account signature cards or other documentation required to transfer sole
control over the Operating Accounts to the applicable Owner Subsidiary or its designate. The Property Manager shall facilitate
the retrieval by the Company or the Company’s Representative of all personal property of the Company or Owner, whether on
the Properties or elsewhere. Within forty-five (45) days after the termination of this Property Management Agreement, the Property
Manager will deliver a final accounting to the Company reflecting all income and expenses of the Properties as of the date of
termination.

 

    	 	20	 

     

    

  

ARTICLE
7

REPRESENTATIONS AND WARRANTIES

OF THE PROPERTY MANAGER

 

To induce the Company
to enter into this Property Management Agreement, the Property Manager makes the following representations and warranties, which
shall survive the execution and termination of this Property Management Agreement:

 

7.1           Organization.
The Property Manager is duly organized, validly existing and in good standing under the laws of the state of Delaware. The Property
Manager has all power and authority required to execute, deliver and perform this Property Management Agreement.

 

7.2           Authorization.
The execution, delivery and performance of this Property Management Agreement has been duly authorized by all necessary action
on the part of the Property Manager.

 

7.3           Validity.
This Property Management Agreement constitutes a legal, valid and binding agreement of the Property Manager enforceable against
the Property Manager in accordance with its terms except as limited by bankruptcy, insolvency, receivership and similar laws of
general application.

 

7.4           Licenses.
During the entire term of this Property Management Agreement, the Property Manager shall cause all persons performing licensable
activities to have and to maintain in full force and effect all licenses, including, without limitation, any real estate broker’s
license obtained by the Property Manager, which the real estate licensing law requires and all permits necessary to perform its
obligations under this Property Management Agreement and shall pay all taxes, fees or charges imposed on the business engaged
in by the Property Manager hereunder.

 

7.5           Independent
Contractor. The Property Manager’s status under this Property Management Agreement is that of an independent contractor
and not as an agent or employee of the Owner.

 

ARTICLE 8

MISCELLANEOUS

 

8.1           Company’s
Rights. Nothing in this Property Management Agreement shall be deemed to limit the Company’s right to do anything regarding
any Property which an owner of such Property would otherwise be entitled to do, including but not limited to the right to enter
upon such Property, to inspect such Property, to perform any repair or maintenance thereof, and to do anything required of the
Property Manager hereunder if the Property Manager fails to do so in a timely manner.

 

    	 	21	 

     

    

  

8.2           Company’s
Representative. The Company may designate one (1) representative to serve as the Company’s representative in all dealings
with the Property Manager hereunder (the “Company’s Representative”). Whenever the approval or consent
or other action of the Company is called for hereunder, such approval, consent or action shall be processed through the Company’s
Representative unless the Company notifies the Property Manager otherwise in writing. The Company’s Representative may be
changed at the discretion of the Company, at any time, by writing delivered to the Property Manager. Except as may be expressly
provided to the contrary elsewhere in this Property Management Agreement, whenever the approval or consent or other action of
the Company is called for under this Property Management Agreement, if the Property Manager requests such approval, consent or
other action of the Company’s Representative and does not receive a response from the Company’s Representative within
five (5) business days after making such request, the Property Manager shall make a second request for approval or consent or
other action of the Company’s Representative specifying that unless a response is received within two (2) days after making
such request, the request shall be deemed approved by the Company.

 

8.3           No
Personal Liability. THE PROPERTY MANAGER’S DIRECTORS, SHAREHOLDERS, OFFICERS, EMPLOYEES, AGENTS AND REPRESENTATIVES
SHALL NOT BE PERSONALLY LIABLE FOR ANYTHING RELATED TO THIS PROPERTY MANAGEMENT AGREEMENT. THE COMPANY, ITS DIRECTORS, SHAREHOLDERS,
OFFICERS, EMPLOYEES, AGENTS AND REPRESENTATIVES, SHALL NOT BE PERSONALLY LIABLE FOR ANYTHING RELATED TO THIS PROPERTY MANAGEMENT
AGREEMENT.

 

8.4           Nature
of Relationship. The Property Manager shall be responsible for all of its employees, the supervision of all persons performing
services regarding the Properties, and for determining the manner of performance of all services for which the Property Manager
is responsible hereunder. The Property Manager is an independent contractor and not an agent or employee of the Company or the
Owner. Nothing in this Property Management Agreement, nor any acts of the parties hereto, shall be deemed or construed by the
parties hereto, or either of them, or any third party, to create the relationship of principal and agent, employer and employee,
or a partnership or joint venture, between or among the Owner, the Company and the Property Manager.

 

8.5           No
Third Party Beneficiaries. Neither this Property Management Agreement nor any part thereof nor any service, relationship or
other matter alluded to herein shall inure to the benefit of any third party, to any trustee in bankruptcy, to any assignee for
the benefit of creditors, to any receiver by reason of insolvency, to any other fiduciary or officer representing a bankruptcy
or insolvent estate of either party, or to the creditors or claimants of such an estate. Without limiting the generality of the
foregoing sentence, it is specifically understood and agreed that insolvency or bankruptcy of either an Owner Subsidiary or the
Company, on the one hand or the Property Manager on the other hand, shall at the option of the other void all rights of such insolvent
or bankrupt party hereunder (or so many of such rights as the other party shall elect to void).

 

    	 	22	 

     

    

  

8.6           Notices.
Except as provided in Section 5.2(c) as to emergencies, all notices and communications required or permitted hereunder
shall be in writing and shall be personally delivered or sent by registered or certified mail, return receipt requested, addressed
as follows:

 

	If mailed or personally 

delivered to an Owner 

and/or the Company:	American Finance Trust, Inc.

405 Park Avenue 

New York, New York 10022 

Telephone: (212) 415-6500 

Facsimile: (212) 421-5799 

Attention: Mr. William Kahane, President
	 	Mr. Jesse Galloway, Esq.
	 	 
	With a copy mailed to:	Proskauer Rose LLP

Eleven Times Square 

New York, NY 10036 

Attention: Mr. Peter M. Fass, Esq.
	 	Mr. Steven Fishman, Esq.
	 	 
	If mailed or personally 

delivered to the Property Manager:	American Finance Properties, LLC

405 Park Avenue 

New York, New York 10022 

Telephone: (212) 415-6500 

Facsimile: (212) 421-5799 

Attention: Mr. William Kahane                
	 	Mr. Jesse Galloway, Esq.
	 	 
	With a copy mailed to:	Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas 

New York, NY 10019

Attention: Mr. Jeffrey D. Marell, Esq.          
	 	 
	With a copy mailed to:	Lincoln Retail REIT Services, LLC

2000 McKinney Avenue, Suite 1000 

Dallas, Texas 75201 

Attention: Mr. Robert Dozier
	 	Mr. Gregory Courtwright

 

or to such address as either party may from time to time specify
by written notice to the other. Notices shall be deemed to be received and, therefore, effective on the earlier of the date of
delivery or, the third (3rd) day after the date the notice is mailed.

 

8.7           Amendments.
This Property Management Agreement may not be amended except by further agreement in writing executed by each party to be bound
thereby.

 

    	 	23	 

     

    

  

8.8           Exhibits.
All exhibits or addenda to this Property Management Agreement are intended to be attached to this Property Management Agreement
and, whether or not so attached, are incorporated herein by reference as if set forth in full.

 

8.9           Laws.
The term “laws” as used in this Property Management Agreement means all applicable constitutional provisions, statutes,
ordinances, codes and rules and regulations of any governmental body having jurisdiction over any Property, the parties or this
Property Management Agreement.

 

8.10        No
Implied Waivers. No failure or delay by either party in exercising any right or remedy under this Property Management Agreement
and no course of dealing between the parties shall operate as a waiver of any such right or remedy nor shall any single or partial
exercise of any right or remedy by either party under this Property Management Agreement preclude any other or further exercise
of such right or remedy. The rights and remedies available to the parties are cumulative and not exclusive of any other rights
and remedies provided by law or equity.

 

8.11         Severability.
Whenever possible each provision of this Property Management Agreement shall be interpreted in such manner as to be effective
and valid under all applicable laws. However, if any provision of this Property Management Agreement is invalid under any applicable
law, such provision shall be ineffective only to the extent of such invalidity without invalidating the remaining provisions of
this Property Management Agreement and, to the fullest extent possible, this instrument shall be interpreted so as to give effect
to the stated written intent of the parties.

 

8.12         Governing
Law. This Property Management Agreement shall be governed by and construed in accordance with the laws of the State of New
York, without regard to the principles of conflicts of law thereof.

 

8.13        Benefit
and Assignment. This Property Management Agreement shall be binding upon the Company and the Property Manager and their respective
successors and assigns and shall inure to the benefit of the Company, its successors and assigns. Except as provided in Section
2.1 of this Property Management Agreement, the Property Manager may not assign or transfer any of its rights or obligations
under this Property Management Agreement to a third party without the prior written consent of the Owner and the approval of a
majority of independent directors of the Company and any such assignment without the prior written consent of the Owner and the
approval of a majority of independent directors of the Company shall be void and of no effect.

 

8.14        Effectiveness
of Property Management Agreement. This Property Management Agreement shall not become effective for any purpose until the
Effective Time, and prior to the Effective Time, the Original Property Management Agreement shall remain in full force and effect;
and in the event that Closing under the Merger Agreement does not occur or the Merger Agreement is terminated in accordance with
its terms, then this Property Management Agreement shall not take effect and the Original Property Management Agreement shall
continue in full force and effect.

 

    	 	24	 

     

    

  

8.15         Headings.
The captions and headings in this Property Management Agreement are for convenience only and do not limit or amplify any provision
of this Property Management Agreement.

 

8.16         Counterparts.
This Property Management Agreement may be executed in any number of counterparts and each shall be considered an original and
together they shall constitute one Agreement.

 

8.17         Entire
Agreement. This Property Management Agreement sets forth the entire Agreement and understanding between the parties regarding
the subject matter of this Property Management Agreement and supersedes all prior agreements and understandings.

 

Signature page follows on next page.

 

    	 	25	 

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Property Management Agreement as of the date first above written.

 

	 	AMERICAN FINANCE PROPERTIES, LLC
	 	 
	 	By:	American Realty Capital Trust V Special Limited Partner, LLC
	 	 	Its Sole Member
	 	 	 
	 	By: 	AR Global Investments, LLC
	 	 	Its Sole Member
	 	 	 
	 	By:	/s/ Jesse C. Galloway
	 	 	Name:  	Jesse C. Galloway
	 	 	Title:	Authorized Signatory
	 	 
	 	AMERICAN FINANCE TRUST, INC.
	 	 
	 	By:	/s/ Edward M. Weil, Jr.
	 	 	Name:	Edward M. Weil, Jr.
	 	 	Title:	Chief Executive Officer

 

     

     

    

 

SCHEDULE A 

Transition Fee 

 

Pursuant to Paragraph 5.3B

	Number of 
 Tenants	 	0-9	 	 	10-17	 	 	18-24	 	 	25 or more	 
	Fee	 	$	1,000	 	 	$	1,500	 	 	$	2,000	 	 	$	2,500

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