Document:

ex10-1.htm

Exhibit 10.1

 

ASSET PURCHASE AND SALE AGREEMENT

 

THIS ASSET PURCHASE AND SALE AGREEMENT (“Agreement”) is made and entered into this 22 day of June, 2015 (the “Effective Date”), by and between IMK GROUP, INC., a Delaware corporation (“Assignor”), and BUDDY YOUNG, an individual, (“Assignee”), with respect to the following:

 

RECITALS

WHEREAS: 

 

A.     Assignor is in the business of manufacturing and distributing cosmetics products;

 

B.     Since 2008 Assignor has also been in the business of producing and distributing self–improvement, educational and workforce training videos (“Legacy Business”); 

 

C.     Assignor no longer wishes to conduct the Legacy Business;

 

D.     Assignee wishes to purchase and acquire from Assignor, and Assignor wishes to sell and transfer to Assignee, all of Assignor’s assets related exclusively to the Legacy Business (“Legacy Assets”) in exchange for the assumption by Assignee of all of the liabilities related exclusively to the Legacy Business (“Legacy Liabilities”); and

 

E.     The parties wish to set forth in this Agreement the terms and conditions of the purchase and sale of the Legacy Assets and the assignment and assumption of the Legacy Liabilities.

 

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

 

1.     Transfer of Assets and Assignment and Assumption of Liabilities.

 

a.     Transfer of Assets. Effective as of the Effective Date, Assignor hereby grants, conveys, assigns and transfers to Assignee, and Assignee hereby accepts the grant, conveyance, assignment and transfer, of all of Assignor’s right, title and interest in and to all of the Legacy Assets including, but not limited to, the following:

 

(1)      Intellectual Property.      All of the Assignor’s right, title and interest in all trademarks, trade names, copyrights, service marks, internet domain names, websites and licenses relating to the Legacy Business, including but not limited to those listed below:

 

	 	(a)   	Advanced Knowledge trade name; and
	 	 	 
	 	
(b)
	
All rights and title to the self-improvement, education and training videos produced by Advanced Knowledge, including but not limited to, the titles listed below:

	 	 	 
	 	 	Twelve Angry Men: Teams That Don't Quit; The Cuban Missile Crisis: A Case Study in Decision Making and Its Consequences; It’s a Wonderful Life: Leading Through Service; How Do You Put A Giraffe Into A Refrigerator?; Teamspeak: How To Ask Positive Questions; What It Really Takes To Be A World Class Company; Generation Why; Workteams and the Wizard of Oz; Pit Crew Challenge; and Character in Action;

 

 

 

 

 

(2)     Contracts. All of the Assignor's right, title and interest in and to production and distribution agreements and contracts relating to the Legacy Business (the “Agreements”);

 

(3)     Personal Property and Fixtures. All furniture, production equipment, computer equipment, other equipment, hardware, other tangible personal property and any fixtures located at 17337 Ventura Boulevard, Suite 312, Encino, California 91316;

 

(4)     Office and Equipment Leases. All of Assignor's right, title and interest as lessee in and to that leased office space located at 17337 Ventura Boulevard, Suite 312, Encino California, 91316 (“Legacy Office”) and any and all all leased equipment located at the Legacy Office;

 

(5)     Inventory. All inventory relating to the Legacy Business;

 

(6)     Accounts Receivable. All accounts receivable relating to the Legacy Business;

 

(7)     Royalties. All of Assignor’s right, title and interest in royalties relating to the Legacy Business;

 

(8)     Bank Accounts. The Advanced Knowledge Bank of America checking account, the account number for which is set out in that separate Confidential Disclosure Schedule dated as of the Effective Date (“Legacy Bank Account”) and all funds in the Legacy Bank Account; and 

 

(9)     All Other Assets. Any and all other assets of Assignor relating to the Legacy Business, whether or not specifically referred to in any of the preceding paragraphs of this Section 1.

 

b.     Assignment and Assumption of Liabilities. In exchange for and in full consideration of the sale and transfer of assets from Assignor to Assignee provided for in Section 1.a., effective as of the Effective Date, Assignor hereby assigns, and Assignee hereby accepts the assignment of and irrevocably and unconditionally assumes, all of the Legacy Liabilities, including but not limited to all operating and other expenses, accounts payable, taxes payable, debts owed and other liabilities of any kind relating exclusively to the Legacy Business.

 

2.     No Further Conveyance Necessary. This Agreement shall effectively transfer and convey all of the interest in the Legacy Assets from Assignor to Assignee without any further documents of conveyance. Likewise, this Agreement shall fully evidence the assumption of all of the Legacy Liabilities by Assignee without any further instrument of conveyance or assumption. Notwithstanding the forgoing, Assignor and Assignee agree to execute and deliver such further documents and instruments, and to do all such further acts and things, as may be necessary to carry out the full intent and meaning of this Agreement and to effect the transactions contemplated by this Agreement.

 

 

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3.     Representations of Assignor. Assignor represents and warrants as follows as of the Effective Date:

 

a.     Organization. Assignor is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has the corporate powers necessary to own its property and to carry on its business as now conducted and as proposed to be conducted.

 

b.      Authorization. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action on the part of Assignor. This Agreement constitutes the valid and binding obligation of Assignor, enforceable against it in accordance with its terms.

 

c.     No Breach. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not violate, result in any breach of, or constitute a default under (1) Assignor's Certificate of Incorporation or Bylaws, (2) any material agreement to which Assignor is a party or by which Assignor is bound, (3) any order, judgment, injunction or decree of any court, arbitrator or governmental agency binding upon Assignor or by which any of' Assignor’s material assets are bound, or (4) any law, rule or regulation applicable to Assignor.

 

d.     Title to Property. Assignor will transfer to Assignee on the Effective Date good and marketable title to the Legacy Assets, free and clear of mortgages, pledges, charges or encumbrances (other than the Legacy Liabilities).

 

e.     Effects of Representations. The representations and warranties of Assignor set forth in Section 3 are made solely for the purpose of this Agreement and shall not (1) survive the consummation of the transactions contemplated by this Agreement, (2) inure to the benefit of, or be enforceable by or against, either the successors or permitted assigns of the parties hereto or any other person, or (3) give rise to any action or claim against Assignor, including, without limitation, any action for negligent misrepresentation.

 

4.     Representations of Assignee. Assignee represents and warrants as follows as of the Effective Date:

 

a.      Legal Capacity. Assignee is of legal age and capacity with the full right, power, capacity and authority to enter into this Agreement and to perform his duties and obligations hereunder. This Agreement constitutes the valid and binding obligation of Assignee, enforceable against him in accordance with its terms.

 

b.     No Breach. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby will not violate, result in any breach of, or constitute a default under (1) any material agreement to which Assignee is a parry or by which Assignee is hound, (2) any order, judgment, injunction or decree of' any court, arbitrator or governmental agency binding upon Assignee or by which any of Assignee’s material assets are bound, or (3) any law, rule or regulation applicable to Assignee.

 

c.     Effect of Representations. The representations and warranties of Assignee set forth in Section 4 arc made solely for the purpose of this Agreement and shall not (1) survive the consummation of the transactions contemplated by this Agreement, (2) inure to the benefit of, or he enforceable by or against, either the successors or permitted assigns of the parties hereto or any other person, or (3) give rise to any action or claim against Assignee, including, without limitation, any action for negligent misrepresentation.

 

 

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5.     Indemnification. The Assignor and Assignee agree to indemnify and hold harmless each other as follows:

 

a.      Assignor shall indemnify, defend and hold harmless Assignee and his employees and agents, from and against any and all losses, costs, expenses, liabilities, demands, suits, damages, actions or claims (including attorneys' fees) (collectively, “Claims” and individually, each a “Claim”) arising out of or relating to, whether directly or indirectly, any breach or violation of any covenant or obligation of Assignor under this Agreement.

 

b.     Assignee shall indemnify, defend and hold harmless Assignor and its directors, officers, employees and agents from any and all Claims arising out of or relating to, whether directly or indirectly: (i) the Legacy Business, including, but not limited to, the Legacy Liabilities; and (ii) any breach or violation of any covenant or obligation of Assignor under this Agreement.

 

c.     Promptly after receipt of notice of the commencement of any Claims in respect of which indemnity may be sought against the other party hereunder (“Indemnifying Party”), the party seeking indemnity hereunder (“Indemnified Party”) will notify the Indemnifying Party in writing of the commencement thereof and the Indemnifying Party shall, subject to the provisions stated below, assume the defense of such Claim (including the employment of counsel who shall be counsel reasonably satisfactory to the Indemnified Party), and the payment of expenses insofar as such Claim shall relate to any alleged liability in respect of which indemnity as available. The Indemnified Party shall have the right to employ separate counsel in any action and to participate in the defense thereof, but the expenses of such counsel shall not be at the expense of the Indemnifying Party unless the Indemnifying Party has specifically authorized the employment of that counsel.

 

d.     The Indemnified Party shall not settle or compromise or consent to the entry of any judgment in respect of any Claim for which indemnity may be sought from an Indemnifying Party without first obtaining the written consent of the Indemnifying Party. If the Indemnified Party enters into any settlement, compromise or consent with respect to any Claim without first obtaining the written consent of the Indemnifying Party, the Indemnified Party shall no longer be entitled to seek any indemnity hereunder from the Indemnifying Party with respect to such Claim.

 

6.     Miscellaneous.

 

a.     Assignment. No assignment or transfer of any interest, right or obligation of any party hereunder shall be allowed without the prior written consent of both parties to this Agreement.

 

b.     Amendments. This Agreement may not he amended, supplemented or otherwise modified except in writing signed by or on behalf of each party hereto.

 

 

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c.     Severability. In the event that any provision of this Agreement shall be held to be invalid, illegal or unenforceable, in whole or in part, such invalidity, illegality or unenforceability shall not in any way affect the validity of the other provisions of this Agreement and such other provisions shall remain in full force and effect.

 

d.     Governing Law. The laws of the State of California shall govern this Agreement.

 

e.     Survival of Obligations. The covenants, agreements and obligations of Assignor and Assignee set forth in this Agreement shall survive the consummation of the transactions contemplated in this Agreement. 

 

f.     Time of the Essence. Time shall be of the essence of this Agreement.

 

g.     Counterparts. This Agreement may be signed in as many counterparts as may be necessary, each of which so signed shall be deemed to be an original, and such counterparts together shall constitute one and the same instrument and , notwithstanding the date of execution, shall be deemed to bear the date first set forth above.

 

 

-- INTENTIONALLY LEFT BLANK --

 

 

5

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in multiple originals as of the day and year first above written.

 

“Assignor”

 

IMK GROUP, INC., a Delaware corporation

 

 

By:           /s/ Rak Gu Kim

______________________________________

Name: Rak Gu Kim

Title: Chief Financial Officer, Treasurer and Secretary

 

 

“Assignee”

 

BUDDY YOUNG, an Individual

 

 

By:          /s/ Buddy Young

______________________________________

Buddy Young

 

 

6Exhibit 10.1

 

AMENDED AND RESTATED ADVISORY AGREEMENT

 

BY AND AMONG

 

AMERICAN REALTY CAPITAL NEW YORK CITY
REIT, INC.,

 

NEW YORK CITY OPERATING PARTNERSHIP,
L.P.,

 

AND

 

NEW YORK CITY ADVISORS, LLC

 

Dated as of June 26, 2015

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	1.	DEFINITIONS	1
	 	 	 
	2.	APPOINTMENT	6
	 	 	 
	3.	DUTIES OF THE ADVISOR	6
	 	 	 
	4.	AUTHORITY OF ADVISOR	9
	 	 	 
	5.	FIDUCIARY RELATIONSHIP	9
	 	 	 
	6.	NO PARTNERSHIP OR JOINT VENTURE	9
	 	 	 
	7.	BANK ACCOUNTS	9
	 	 	 
	8.	RECORDS; ACCESS	9
	 	 	 
	9.	LIMITATIONS ON ACTIVITIES	9
	 	 	 
	10.	FEES	10
	 	 	 
	11.	EXPENSES	12
	 	 	 
	12.	OTHER SERVICES	13
	 	 	 
	13.	REIMBURSEMENT TO THE ADVISOR	13
	 	 	 
	14.	OTHER ACTIVITIES OF THE ADVISOR	14
	 	 	 
	15.	THE AMERICAN REALTY CAPITAL NAME	14
	 	 	 
	16.	TERM OF AGREEMENT	15
	 	 	 
	17.	TERMINATION BY THE PARTIES	15
	 	 	 
	18.	ASSIGNMENT TO AN AFFILIATE	15
	 	 	 
	19.	PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION	15
	 	 	 
	20.	INCORPORATION OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT	15
	 	 	 
	21.	INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP	16
	 	 	 
	22.	INDEMNIFICATION BY ADVISOR	17
	 	 	 
	23.	NOTICES	17
	 	 	 
	24.	MODIFICATION	18
	 	 	 
	25.	SEVERABILITY	18
	 	 	 
	26.	GOVERNING LAW	18
	 	 	 
	27.	ENTIRE AGREEMENT	18
	 	 	 
	28.	NO WAIVER	18
	 	 	 
	29.	PRONOUNS AND PLURALS	18
	 	 	 
	30.	HEADINGS	18
	 	 	 
	31.	EXECUTION IN COUNTERPARTS	18

 

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AMENDED AND RESTATED ADVISORY AGREEMENT

 

THIS AMENDED AND RESTATED ADVISORY AGREEMENT
(this “Agreement”) dated as of June 26, 2015, is entered into among American Realty Capital New York City REIT,
Inc., a Maryland corporation (the “Company”), New York City Operating Partnership, L.P., a Delaware limited
partnership (the “Operating Partnership”), and New York City Advisors, LLC, a Delaware limited liability company.

 

WITNESSETH

 

WHEREAS, the Company, the Operating Partnership
and the Advisor entered into that certain Advisory Agreement, dated as of April 24, 2014, (as amended, the “Original Advisory
Agreement”); and

 

WHEREAS, the Company, the Operating Partnership
and the Advisor desire to amend and restate the Original Advisory Agreement;

 

NOW, THEREFORE, in consideration of the
foregoing and of the mutual covenants and agreements contained herein, the parties hereto, intending to be legally bound, hereby
agree that the Original Advisory Agreement is amended and restated in its entirety to read 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, exclusive of Acquisition Fees, 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, costs of appraisals,
nonrefundable option payments on property not acquired, accounting fees and expenses and title insurance premiums.

 

“Acquisition Fee”
means the fee payable to the Advisor or its Affiliates pursuant to Section 10(a).

 

“Advisor” means
New York City Advisors, LLC, a Delaware limited liability company, any successor advisor to the Company and the Operating Partnership,
or any Person to which New York City Advisors, LLC or any successor advisor subcontracts substantially all its functions. Notwithstanding
the foregoing, a Person hired or retained by New York City 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 New York City
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.

 

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

 

“Annual Subordinated Performance
Fee” means the fees payable to the Advisor or its assignees pursuant to Section 10(e).

 

    	 

    	 

    

 

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

 

“Average Invested Assets”
has the meaning set forth in the Articles of Incorporation. For an equity interest owned in a Joint Venture, the calculation of
Average Invested Assets shall take into consideration the underlying Joint Venture’s aggregate book value for the equity
interest.

 

“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.

 

“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.

 

“Competitive Real Estate Commission”
means a real estate or brokerage commission for the purchase or sale of an asset which is reasonable, customary and competitive
in light of the size, type and location of the asset.

 

“Contract Purchase Price”
has the meaning set forth in the Articles of Incorporation.

 

“Contract Sales Price”
means the total consideration received by the Company for the sale of an Investment.

 

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“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.

 

“Excess Amount”
has the meaning set forth in Section 13.

 

“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.

 

“Expense Year”
has the meaning set forth in Section 13.

 

“Financing Coordination Fee”
means the fee payable to the Advisor or its Affiliates pursuant to Section 10(d).

 

“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.

 

“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 21.

 

“Independent Director”
has the meaning set forth in the Articles of Incorporation.

 

“Independent Valuation Advisor”
means a firm that is (i) engaged in the business of conducting appraisals on real estate properties, (ii) not an Affiliate of the
Advisor and (iii) engaged by the Company with the Board’s approval to appraise the Real Properties and other Investments
pursuant to the Valuation Guidelines.

 

“Insourced Acquisition Expenses”
means Acquisition Expenses incurred in connection with services performed by the Advisor or any of its Affiliates.

 

“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.

 

“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.

 

“NASAA REIT Guidelines”
means the Statement of Policy Regarding Real Estate Investment Trusts as revised and adopted by the North American Securities Administrators
Association on May 7, 2007, as the same may be amended from time to time.

 

“NAV” means the
Company’s net asset value, calculated pursuant to the Valuation Guidelines.

 

“NAV Pricing Start Date”
means the first date on which the Company calculates NAV.

 

“Net Income” means,
for any period, the Company’s total revenues applicable to such period, less the total expenses applicable to such period
other than additions to reserves for depreciation, bad debts, impairments or other similar non-cash reserves and excluding any
gain from the sale of the Company’s assets.

 

“Notice” has the
meaning set forth in Section 23.

 

“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 Agreement of Limited Partnership of the Operating Partnership, dated as of April 24, 2014, among the Company, New York
City Special Limited Partnership, 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-dealers’ customers.

 

“Person” has the
meaning set forth in the Articles of Incorporation.

 

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

 

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“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 Commission”
means the fees payable to the Advisor pursuant to Section 10(c).

 

“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.

 

“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”
means the Company’s registration statement on Form S-11 (File No. 333-194135) and the prospectus contained therein.

 

“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.

 

“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.

 

    	5

    	 

    

 

“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.

 

“Sponsor” means
American Realty Capital III, 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.

 

“Subordinated Participation
Interest” means a profits interest in the Operating Partnership designated as a Class B Unit in accordance with the
terms of the Operating Partnership Agreement.

 

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

 

“Total Operating Expenses”
has the meaning set forth in the Articles of Incorporation. The definition of “Total Operating Expenses” set forth
above is intended to encompass only those expenses which are required to be treated as Total Operating Expenses under the NASAA
REIT Guidelines. As a result, and notwithstanding the definition set forth above, any expense of the Company which is not part
of Total Operating Expenses under the NASAA REIT Guidelines shall not be treated as part of Total Operating Expenses for purposes
hereof.

 

“Total Return to Stockholders”
means receipt by Stockholders of an annual cumulative, pre-tax, non-compounded return on the capital contributed by Stockholders
in excess of a return of capital contributions to Stockholders.

 

“Valuation Guidelines”
means the valuation guidelines adopted by the Board, as may be amended from time to time.

 

“2%/25% Guidelines”
has the meaning set forth in Section 13.

 

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;

 

    	6

    	 

    

 

(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;

 

(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;

 

    	7

    	 

    

 

(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;

 

(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;

 

(s)          at
the end of each quarter, calculate the NAV as provided in the Registration Statement, and in connection therewith, obtain appraisals
performed by the Independent Valuation Advisor;

 

(t)          supervise
one or more Independent Valuation Advisor and, if and when necessary, recommend to the Board its replacement;

 

(u)          from
time to time, or at any time reasonably requested by the Board, make reports to the Board on the Advisor’s performance of
services to the Company and the Operating Partnership under this Agreement;

 

(v)         make
reports to the Independent Directors each quarter of the investments that have been made by other programs sponsored by the Advisor
or any of its Affiliates, as well as any investments that have been made by the Advisor or any of its Affiliates directly, in each
case to the extent such investments constitute a conflict of interest or a potential conflict of interest with the investment policies
and objectives of the Company;

 

(w)         manage
and coordinate with the transfer agent the monthly distribution process and payments to Stockholders;

 

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

 

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

 

(z)          perform
all reporting, record keeping, internal controls and similar matters in a manner that allows the Company to comply with applicable
law, including federal and state securities laws and the Sarbanes Oxley Act of 2002.

 

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.

 

    	8

    	 

    

 

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.

 

(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 and its Stockholders.

 

6.           NO
PARTNERSHIP OR JOINT VENTURE. Except as provided in Section 10(h), 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.

 

    	9

    	 

    

 

10.         FEES.

 

(a)         Acquisition
Fee. Subject to Section 10(b), the Company shall pay an Acquisition Fee to the Advisor or its Affiliates as compensation
for services rendered in connection with the investigation, selection and acquisition (by purchase, investment or exchange) of
Investments. If the Advisor is terminated without Cause pursuant to Section 17(a), the Advisor or its Affiliates shall be entitled
to an Acquisition Fee for any Investments acquired after the Termination Date for which a contract to acquire any such Investment
had been entered into at or prior to the Termination Date. The total Acquisition Fee payable to the Advisor or its Affiliates shall
equal one and one-half percent (1.5%) of the Contract Purchase Price of each Investment. The purchase price allocable for an Investment
held through a Joint Venture shall equal the product of (i) the Contract Purchase Price of the Investment and (ii) the direct or
indirect ownership percentage in the Joint Venture held directly or indirectly by the Company or the Operating Partnership. For
purposes of this Section 10(a), “ownership percentage” shall be the percentage of capital stock, membership
interests, partnership interests or other equity interests held by the Company or the Operating Partnership, without regard to
classification of such equity interests. The Company shall pay to the Advisor or its Affiliates the Acquisition Fee promptly upon
the closing of the Investment. The Acquisition Fee shall cover services rendered by the Advisor or its Affiliates until such time
as a letter of intent to purchase such Investment has been submitted to the seller by the Advisor and the Advisor has presented
a detailed investment memorandum to the Board of Directors for approval. In addition, if during the period ending two years after
the close of the initial Offering, the Company sells an Investment and then reinvests in other Investments, the Company will pay
to the Advisor or its Affiliates one percent (1.0%) of the Contract Purchase Price of the Investments.

 

(b)         Limitation
on Total Acquisition Fees, Financing Coordination Fees and Acquisition Expenses.

 

(i)          The
total of all “Acquisition Fees” (as defined in the Articles of Incorporation), Financing Coordination Fees and
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; provided, however, that once all the proceeds from the initial Offering have
been fully invested, the total of all Acquisition Fees and Financing Coordination Fees shall not exceed one and one-half
percent (1.5%) of the Contract Purchase Price of all the Investments acquired.

 

(ii)         The
total of all Acquisition Fees, Financing Coordination Fees and 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 fees and expenses in excess of these limits if they determine the transaction
to be commercially competitive, fair and reasonable to the Company.

 

(c)         Real
Estate Commission. In connection with a Sale of a Real Estate Asset in which the Advisor or any Affiliate or agent of the
Advisor provides a substantial amount of services, as determined by the Independent Directors, the Company shall pay to the Advisor
or its assignees a Real Estate Commission up to the lesser of (i) two percent (2.0%) of the Contract Sales Price of such Real Estate
Asset or (ii) one-half of the Competitive Real Estate Commission paid if a non-Affiliate broker is also involved; provided,
however, that in no event may the Real Estate Commission paid to the Advisor, its Affiliates and non-Affiliates, exceed the
lesser of six percent (6.0%) of the Contract Sales Price and a Competitive Real Estate Commission.

 

(d)         Financing
Coordination Fee. The Company shall pay a Financing Coordination Fee to the Advisor or its assignees in connection with
the financing of any Investment, assumption of any Loans with respect to any Investment or refinancing of any Loan in an amount
equal to 0.75% of the amount made available and/or outstanding under any such Loan, including any assumed Loan. The Advisor may
reallow some of or all this Financing Coordination Fee to reimburse third parties with whom it may subcontract to procure any such
Loan.

 

    	10

    	 

    

 

(e)          Annual
Subordinated Performance Fee. The Company may pay the Advisor an Annual Subordinated Performance Fee calculated on the
basis of the Total Return to Stockholders, payable monthly in arrears in any year in which the Company’s Total Return to
Stockholders exceeds six percent (6%) per annum, in an amount equal to fifteen percent (15%) of the excess Total Return to Stockholders,
provided, that the Annual Subordinated Performance Fee shall not exceed ten percent (10%) of the aggregate Total Return to Stockholders
for such year.

 

(f)          Payment
of Fees. In connection with the Acquisition Fee, Real Estate Commission, Annual Subordinated Performance Fee and Financing
Coordination 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. For the purposes of the payment of any fees in Shares,
(i) if at the applicable time an Offering is underway, (a) prior to the NAV Pricing Start Date, each Share shall be valued at the
per-share offering price of the Shares in such Offering minus the maximum Selling Commissions and Dealer Manager Fee allowed in
such Offering, and (b) after the NAV Pricing Start Date, each Share shall be valued at the then-current NAV per Share; and (ii)
at all other times, each Share shall be valued by the Board in good faith (A) at the estimated value thereof, calculated in accordance
with the provisions of NASD Rule 2340(c)(1) (or any successor or similar FINRA rule), or (B) if no such rule shall then exist,
at the fair market value thereof.

 

(g)          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 any officers of the Company
or Directors except Mortgages (as defined in the Articles of Incorporation) pursuant to Section 9.3(iii) of the Articles of Incorporation
(or any successor provision) or loans to wholly owned subsidiaries of the Company. None of the Advisor nor any Affiliate thereof,
or any officers of the Company or Directors, 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.

 

(iv)        If
the Board elects to internalize any management services provided by the Advisor, neither the Company nor the Operating Partnership
shall pay any compensation or other remuneration to the Advisor or its Affiliates in connection with such internalization of management
services; provided, that nothing in this Section 10(g) shall create any right to (x) any assets, intellectual property, personnel
or pipeline of assets of the Advisor or its Affiliates or (y) terminate the Agreement other than as set forth in Section 17.

 

(h)          Subordinated
Participation Interests. The Company shall cause the Operating Partnership to periodically issue Subordinated Participation
Interests in the Operating Partnership to the Advisor or its assignees, pursuant to the terms and conditions contained in the Operating
Partnership Agreement, in connection with the Advisor’s (or its assignees’) management of the Operating Partnership’s
assets.

 

    	11

    	 

    

 

(i)          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.

 

(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 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;

 

(ii)          Acquisition
Expenses, subject to the limitations set forth in Section 10(b), and a specific reimbursement to the Advisor not to exceed
0.10% of the Contract Purchase Price of an Investment for legal expenses it or its Affiliates incur in connection with the selection,
evaluation and acquisition of an Investment, also subject to the limitations set forth in Section 10(b);

 

(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;

 

    	12

    	 

    

 

(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 no reimbursement shall be
made for salaries, bonuses or benefits to be paid to the Company’s executive officers; and

 

(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(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 those 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.        REIMBURSEMENT
TO THE ADVISOR. The Company shall not reimburse the Advisor at the end of any fiscal quarter in which Total Operating Expenses
incurred by the Advisor for the four (4) consecutive fiscal quarters then ended (the “Expense Year”) exceed
(the “Excess Amount”) the greater of two percent (2%) of Average Invested Assets and twenty-five percent (25%)
of Net Income (the “2%/25% Guidelines”) for such year. Any Excess Amount paid to the Advisor during a fiscal
quarter shall be repaid to the Company or, at the option of the Company, subtracted from the Total Operating Expenses reimbursed
during the subsequent fiscal quarter. If there is an Excess Amount in any Expense Year and the Independent Directors determine
that such excess was justified based on unusual and nonrecurring factors which they deem sufficient, then the Excess Amount may
be carried over and included in Total Operating Expenses in subsequent Expense Years and reimbursed to the Advisor in one or more
of such years, provided that there shall be sent to the Stockholders a written disclosure of such fact, together with an explanation
of the factors the Independent Directors considered in determining that such excess expenses were justified. Such determination
shall be reflected in the minutes of the meetings of the Board. All figures used in the foregoing computation shall be determined
in accordance with GAAP applied on a consistent basis.

 

    	13

    	 

    

 

14.         OTHER
ACTIVITIES OF THE ADVISOR. Except as set forth in this Section 14, 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.

 

15.         THE
AMERICAN REALTY CAPITAL NAME. The Advisor and its Affiliates have or may have a proprietary interest in the names “American
Realty Capital,” “ARC” and “AR Capital.” 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” and
“AR Capital,” a non-transferable, non-assignable, non-exclusive, royalty-free right and license to use the names “American
Realty Capital,” “ARC” and “AR Capital” 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” and “AR Capital,” 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” and “AR Capital” 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” and “AR Capital” 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” and “AR Capital.” 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”
and “AR Capital” 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” and “AR Capital” 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.”

 

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16.         TERM
OF AGREEMENT. This Agreement shall continue in force for a period of one year from the date hereof. Thereafter, the term may
be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties.

 

17.         TERMINATION
BY THE PARTIES. This Agreement may be terminated upon sixty (60) days’ prior written notice (a) by the Independent Directors
of the Company or the Advisor, without Cause and 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 15 and 19 through 31 (inclusive) of this Agreement shall survive
any expiration or earlier termination of this Agreement.

 

18.         ASSIGNMENT
TO AN AFFILIATE. This Agreement may be assigned by the Advisor to an Affiliate with the approval of a majority of the Directors
(including a majority of the Independent Directors). The Advisor may assign any rights to receive fees or other payments under
this Agreement to any Person without obtaining the approval of the Directors. 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,
and which the Board (including a majority of the Independent Directors) has determined possesses sufficient qualifications to perform
the advisory function for the Company, 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.

 

19.         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, subject to the 2%/25% Guidelines to the extent applicable.

 

(b)          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.

 

20.         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.

 

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21.         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 or the provisions of Section II.G of the NASAA REIT Guidelines. 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:

 

(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

 

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(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.

 

22.         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.

 

23.         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 or 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 Realty Capital New York City REIT, Inc.
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention:  Chief Executive Officer   
	 	 
	 	with a copy to:
	 	 
	 	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, New York 10036
	 	Attention:  Peter M. Fass, Esq.
	 	 
	To the Operating Partnership:	New York City Operating Partnership, L.P.
	 	C/O American Realty Capital New York City REIT, Inc., its General Partner
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention:  Chief Executive Officer
	 	 
	 	with a copy to:
	 	 
	 	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, New York 10036
	 	Attention:  Peter M. Fass, Esq.
	 	 
	To the Advisor:	New York City Advisors, LLC
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention:  Chief Executive Officer
	 	 	 
	 	with a copy to:
	 	 
	 	RCS Capital Corporation
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention: General Counsel

 

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 23.

 

    	17

    	 

    

 

24.         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.

 

25.         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.

 

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.         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.         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.

 

30.         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.

 

31.         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]

 

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

 

	 	
        AMERICAN REALTY CAPITAL NEW YORK CITY REIT,

        INC.

 

	 	By:	/s/ Michael A. Happel
	 	 	Name:  Michael A. Happel
	 	 	Title:    Chief Executive Officer, President and Secretary

 

	 	NEW YORK CITY OPERATING PARTNERSHIP, L.P.

 

	 	By:	American Realty Capital New York City REIT, Inc.
	 	 	its General Partner

 

	 	By:	/s/ Michael A. Happel
	 	 	Name:  Michael A. Happel
	 	 	Title:    Chief Executive Officer, President and Secretary

 

	 	NEW YORK CITY ADVISORS, LLC

 

	 	By:	New York City Special Limited Partner, LLC
	 	 	its Member

 

	 	By:	American Realty Capital III, LLC
	 	 	its Managing Member

 

	 	By:	/s/ William M. Kahane
	 	 	Name:  William M. Kahane
	 	 	Title:  Authorized Signatory

 

    	19

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