Document:

Form of Master Property Agreement

 Exhibit 10.2 

FORM OF MASTER PROPERTY MANAGEMENT, LEASING 

AND CONSTRUCTION MANAGEMENT AGREEMENT 

THIS MASTER PROPERTY, LEASING AND CONSTRUCTION MANAGEMENT AGREEMENT (“Agreement”) is made and entered into as of
                    , 2010, by and among PHILLIPS EDISON – ARC PROPERTIES REIT INC., a Maryland corporation (“REIT”), PHILLIPS
EDISON – ARC PROPERTIES OPERATING PARTNERSHIP, L.P., a Delaware limited partnership (“OP”), and PHILLIPS EDISON & COMPANY LTD., an Ohio limited liability company (“PECO”). 

R E C I T A L S: 

A. OP is a newly formed limited partnership whose general partner is REIT, and was formed to acquire, own, operate, lease, finance and
manage shopping center properties throughout the continental United States. For purposes of this Agreement, OP and REIT, as well as any of their direct and indirect subsidiaries and any joint ventures into which any of the foregoing may enter and
which are controlled by the OP or REIT, are individually or collectively referred to herein as “Owner.” 
 B. PECO
operates, manages, leases and manages construction with respect to shopping center properties located throughout the continental Unites States. 

C. Owner desires to engage PECO, and PECO desires to accept such engagement, to manage the shopping center properties hereafter acquired
by Owner under the terms and conditions set forth herein. 
 NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1.
Definitions. Except as otherwise specified or as the context may otherwise require, the following terms have the respective meanings set forth below for all purposes of this Agreement, and the definitions of such terms are equally
applicable both to the singular and plural forms thereof: 
 (a) “Improvements” means buildings, structures,
and equipment from time to time located on the Properties and all parking and common areas located on the Properties. 
 (b)
“Major Lease” means a lease of premises containing 5,000 square feet of leasable area or more. 
 (c)
“Management Fees” means the fees and expenses payable to PECO pursuant to Section 6, “Compensation” hereof. 

(d) “On-Site Personnel” means persons hired or retained as employees of PECO to perform services at the Properties

 (e) “Owner” has the meaning set forth in Recital A. 

(f) “PECO” has the meaning set forth in the introductory paragraph above. 

(g) “Property” means an individual real estate asset owned by Owner and all tracts acquired by Owner related to that
asset subject to this Agreement as more fully described in a Property Addendum (as defined below). 
 (h)
“Properties” means all of the real estate assets of Owner covered by this Agreement, collectively. 
  (i)
“Property Addendum” means an addendum (as the same may be modified, amended or supplemented in writing, from time to time) which shall be attached to this Agreement and incorporated herein by reference as each Property is purchased
and made subject to this Agreement describing the Property, including its real estate and the improvements thereon. If any Property is sold by Owner, the Property Addendum with respect to such Property may, at Owner’s election be deemed of no
further force or effect from and after the closing of any such sales, except to the extent of post closing management and accounting functions thereafter to be performed. 

2. Appointment of PECO. 

(a) Owner hereby engages and retains PECO as the sole and exclusive manager of each Property for which a Property Addendum is executed
with respect to the property management function to perform such functions as are specified herein and/or on the Property Addendum related to each such Property. PECO hereby accepts such appointment. 

(b) Owner hereby engages and retains PECO as the sole and exclusive leasing agent for the leasing of all space in each Property for which
a Property Addendum is executed with respect to the leasing agent function as well as for obtaining ground leases on any outparcels. PECO shall perform such functions as are specified herein and/or on the Property Addendum related to each such
Property. PECO hereby accepts such appointment. 
 (c) Owner hereby engages and retains PECO as the sole and exclusive
construction manager of each Property for which a Property Addendum is executed with respect to the construction management function to perform such functions as are specified herein and/or on the Property Addendum related to such Property. PECO
hereby accepts such appointment. 
 (d) PECO shall act under this Agreement as an independent contractor and not as the
Owner’s agent or employee. PECO 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 or in a Property Addendum. Any action taken by PECO which is
not expressly permitted by this Agreement shall not bind the Owner. 
 3. Standards. PECO shall in good faith,
with due diligence and in accordance with generally accepted management and construction management standards in the shopping 
  

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center industry within the geographical areas of the Properties, perform its management, leasing and construction management duties and obligations described herein. In all events, such standards
of performance shall be consistent with the standards of management, leasing and construction management to which PECO performs with respect to its own portfolio of properties. PECO shall devote its commercially reasonable efforts to performing its
duties hereunder to manage, operate, maintain and lease the Properties in a diligent, careful and professional manner to maximize all potential revenues to the Owner and to minimize expenses and losses to the Owner. The services of PECO 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. PECO will make available to the
Owner the full benefit of the judgment, experience and advice of the members of PECO’s organization. PECO 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 the Owner’s assets. 
 4. Term. This Agreement shall commence on upon full execution of
this Agreement and shall continue until terminated in accordance with Section 10. 
 5. Duties of PECO.

 (a) PECO’s duties as property manager for the Properties include the following for each of the Properties (as may be
supplemented with additional duties as detailed in the applicable Property Addendum for each Property) and for Owner, as applicable: 

(i) For Accounting: 

(A) Calculate, bill and collect rental payments and other charges due to the Owner from tenants in the Properties under the respective
tenant leases or otherwise with regard to the Properties. To the extent tenant leases affecting any Property so require, PECO 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. 

(B) Cash Management. 

(1) PECO will establish on behalf of the OP a concentration account (a “Concentration Account”) at a bank to be
specified in writing by Owner, which such Concentration Account will be tied into each Operating Account (as defined below) via a daily automated two-way sweep. This automated two-way sweep shall work in the following manner: all checks or wires
presented on behalf of each Property’s Operating Account will be funded by having the cash automatically pulled down from the Concentration Account to fund the check or wire, and all cash deposited into each Property’s Operating Account or
lockbox accounts will be automatically swept up to the Concentration Account on a daily basis. 
  

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 (2) Notwithstanding the preceding, if (a) an Owner is not a wholly owned subsidiary of
the REIT or OP and its governing documents so require, or (b) the payments in respect of a Property are required by a lender to be made into a lockbox account, or (c) if the payments in respect of a Property are required to be handled
otherwise by a contractual restriction agreed to by Owner, then such requirements shall be followed by PECO following written notice thereof by Owner. Funds released from any such lockbox account or other arrangement to the custody of the Owner
shall otherwise follow the above procedures. 
 (3) PECO will establish on behalf of the Owner for each Property an operating
account (an “Operating Account”) at a bank to be agreed upon in writing by Owner upon receipt of a fully-executed Property Addendum and a W9 completed by the Owner. The signature card for the Operating Account shall indicate that
PECO is dealing with the Operating Account as a fiduciary of the Owner. The Operating Account and all funds therein shall at all times be the property of the Owner. The Owner shall have electronic banking system access to the Operating Account which
shall permit it to obtain account information and make withdrawals from the Operating Account. 
 (4) Notwithstanding anything
to the contrary contained herein, the Owner may direct payments or deposits received by PECO or payments or transfers from the Operating Account for a Property to deviate from the above procedures by a written request to PECO. In such event, PECO
shall provide the Owner with all information necessary to effect such deposits, transfers or payments. 
 (5) If required by
state law, PECO will deposit security deposits and/or advance rentals in separate accounts in the name of the Owner at the financial institution designated by Owner with respect to the applicable Property. 

(6) PECO agrees to pay all invoices directly from the Operating Account unless directed otherwise by the Owner. 

(7) On or before the 25th day of each month, PECO shall prepare and submit an invoice to the Owner accompanied by a computation of the
fees and expense reimbursements due to PECO in accordance with this Agreement. The Owner shall have the right to review such invoice and obtain any supporting documentation with respect thereto from PECO. To the extent that the Owner believes the
computation provided by PECO is inconsistent with the computation permitted hereunder, the Owner and PECO shall work together in good faith to reach a computation of such fees which is reasonably agreeable to both parties. 

(8) Without in any way limiting the foregoing, (i) PECO shall not commingle its funds or property or the funds or property of any
other entities for which it provides services with any other funds or property of Owner, and (ii) PECO shall deposit amounts relating to a Property in the respective Property’s Operating Account within one (1) business day of receipt.
PECO shall have no proprietary interest in the Clearing Account or any Operating Account, or in any other account authorized hereby, and all sums collected by PECO relating to the Properties and all sums placed in such account or accounts will be
the 
  

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property of the Owner and to the extent not yet deposited shall be held in trust by PECO for the Owner. 

(C) Subject to the terms of this Agreement relating to allocation of expenses, pay fees, charges, expenses and commissions of
independent contractors, architects, engineers, subcontractors, suppliers which contract with PECO and PECO utilized in the management, operation, maintenance or repair of the Properties, subject to the PECO’s review of same to confirm accuracy
and agreement with same. 
 (D) Owner expressly authorizes PECO to promptly and diligently enforce the Owner’s rights
under any tenant leases affecting any Property, including without limitation taking the following actions where appropriate: (i) with the Owner’s prior written consent: (a) terminating tenancies, (b) instituting and prosecuting
actions, and evicting tenants, (c) settling, compromising and releasing such actions or suits or re-instituting such tenancies, and (d) recovering rents and other sums due by legal proceedings in a court of general jurisdiction; and
(ii) without the Owner’s prior written consent: (a) in a magistrates court or other court of special jurisdiction as applicable, signing and serving such notices as are deemed necessary by PECO, and (b) recovering rents and other
sums due by legal proceedings in a magistrates court or similar jurisdiction, in each case PECO shall promptly notify the Owner of such action in writing. If authorized by the Owner, PECO shall consult an attorney for the purpose of enforcing the
Owner’s rights or taking any such actions and the Owner 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. PECO shall keep the Owner informed of any
dissatisfaction with the law firm or such services or the reasonableness of the cost thereof. 
 (E) Prepare and maintain
routine and customary financial and business books and records for Owner and the Properties and to employ and supervise outside accountants for preparation of income and other tax returns and specialty accounting services for Owner and the
Properties. The preparation of income and other tax returns and the performance of such specialty accounting services shall be supervised by PECO but will be completed at Owner’s expense. PECO will use the accrual method of accounting in
accordance with GAAP, with such policies as are to be determined by management subject to Owner’s determination (including without limitation, capitalization policies, depreciation and amortization policies, and such other accounting policies
as Owner may direct from time to time). 
 (F) Maintain fixed asset accounting detail and related depreciation. 

(G) PECO shall prepare and submit to Owner 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 PECO for the operation, repair and maintenance of the Properties (the “Budget”)
and a marketing and leasing plan on the Properties (a “Plan”) (assuming PECO is retained as leasing agent), in each case for the calendar year immediately following such submission. Each Budget and Plan will be in the form approved
by the Owner prior to the date thereof. A draft Budget and, as applicable, Plan for each Property shall be 
  

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submitted to Owner on or prior to October 31 of the year preceding the January 1 of the year to which such budget shall apply. Owner shall have 21 days after receipt thereof within
which to approve or reject in writing such Budget and, as applicable, Plan, any such rejection to be accompanied by a reasonably detailed explanation of such rejection. PECO shall then submit a revised draft Budget and, as applicable, Plan to Owner
within 10 days thereafter. Owner shall have 10 days after receipt thereof to approve or reject the same in writing, any such rejection to be accompanied by a reasonably detailed explanation of such rejection. The foregoing process shall then repeat
with 10 days between receipt and revision, on PECO’s end, and receipt and acceptance or rejection on Owner’s end, until each Budget and, as applicable, Plan has been approved. If the parties cannot come to agreement on a Budget and, as
applicable, Plan for a Property, PECO shall operate the applicable Property on the Budget and, as applicable, Plan most recently approved by Owner. To the extent any expenditure to be made by PECO shall exceed the applicable line item in such prior
year’s Budget by 5% or more, the same shall require Owner’s prior written consent, provided that, excluded from the foregoing expenditures requiring such consent shall be expenditures related to snow and ice removal, electricity, insurance
premiums and emergency items outside of the control of PECO. PECO shall provide supporting information reasonably requested by the Owner in connection with their review of any Budget or Plan submitted by PECO for their review. 

PECO shall implement the Budget and Plan and use its commercially reasonable efforts to ensure that the actual cost of operating the
Properties shall not exceed the Budget. The Budget shall constitute an authorization for PECO to expend necessary monies to manage and operate the Properties in accordance with the Budget and subject to the provisions of this Agreement until a
subsequent Budget is approved. The approval of non-recurring costs and capital improvements in the Budget and Plan shall constitute an authorization for PECO to collect bids for the expenditure and present a final recommendation to the Owner for
expenditure of monies to implement such items called for in the Budget and Plan. 
 Without affecting any other limitation
imposed by this Agreement and except as may be expressly provided to the contrary elsewhere in this Agreement, PECO shall secure the prior written approval of the Owner prior to incurring any liability or obligation for any item in excess of $10,000
not reflected on the Budget or the Plan approved in writing by the Owner except with respect to emergency items as described in this subsection (G) or unless another threshold with respect to any matter is specified elsewhere in this Agreement
or in a written directive or authorization of Owner, in which case the threshold for such matter shall be as so set forth. 

(H) Pay wages, salaries, commissions and employee benefits of all On-Site Personnel including, without limitation, workers’
compensation insurance, social security taxes, unemployment insurances and other taxes or levies now in force or hereafter imposed with respect to any such On-Site Personnel, all of which shall be deemed an operating expense of the Properties and
shall be in accordance with approved Budgets. 
 (I) Deliver to Owner, within 15 days after the end of each month during the
term hereof, the monthly reporting package detailed on Exhibit A attached hereto which shall relate to the Properties and the immediately preceding calendar month or any 

 

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portion thereof. Such reporting package shall be made on an accrual basis and shall include all such transactions, whether or not reimbursable pursuant to the provisions hereof. 

(J) Deliver to Owner, within 15 days after the end of each calendar quarter during the term hereof, the quarterly reporting package
detailed on Exhibit B attached hereto which shall relate to the Properties and the immediately preceding calendar quarter or any portion thereof. Such reporting package shall be made on an accrual basis and shall include all such transactions,
whether or not reimbursable pursuant to the provisions hereof. 
 (K) Deliver to Owner, within 30 days after the end of each
calendar year during the term hereof, the annual reporting package detailed on Exhibit C attached hereto which shall relate to the Properties and the immediately preceding calendar year or any portion thereof. Such reporting package shall be made on
an accrual basis and shall include all such transactions, whether or not reimbursable pursuant to the provisions hereof. 
 (L)
File real, personal and ad valorem (real or personal) property tax returns required to be filed by Owner with respect to the Properties and pay all such ad valorem taxes and assessments out of the operating accountants of each of the Properties.
PECO shall also utilize, on Owner’s behalf, the services of independent tax consultants and attorneys to appeal or challenge any real, personal and ad valorem (real or personal) property taxes and PECO shall manage such process on Owner’s
behalf by supplying needed information and making required payments out of the operating funds for each Property or the separate funds of Owner. 

(ii) For Operations. PECO shall use commercially reasonable efforts to operate in accordance with the Budget and Plan unless otherwise
specifically approved in writing by Owner and except in the case of emergencies: 
 (A) PECO will investigate, hire, train,
pay, supervise and discharge the On-Site Personnel necessary to maintain and operate the Properties including, without limitation, property managers who shall have experience and education satisfactory to the Owner. Such personnel shall in every
instance be agents or employees of PECO and not of the Owner, but Owner shall have the right to approve via the annual budget process, the compensation of PECO’s personnel for which PECO has the right to be reimbursed hereunder. PECO has the
right to be reimbursed for (i) On-Site Personnel that are employed at the Properties or at management field offices or corporate offices, should there be no office located on site. The management field office and corporate office 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 Owner and PECO 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 or monthly rate pre-approved by the Owner and only for the actual and reasonably
necessary time spent on such Property by such personnel. The Owner shall have no right to supervise or direct such agents or employees. 

PECO, at PECO’s sole cost and expense, shall maintain during the term of this

  

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Agreement a bond or applicable insurance covering PECO and all persons who handle, have access to or are responsible for the Owner’s monies, in an amount and form reasonably acceptable to
the Owner. PECO shall provide the Owner with a certificate or other satisfactory documentation evidencing the existence and terms of such bond(s) upon execution of this Agreement. 

PECO, shall supervise and at Owner’s cost and expense, shall retain, to the extent such services are not sufficiently provided by
On-Site Personnel, but in accordance with the Budget, independent contractors, subcontractors, and suppliers to provide for the management, maintenance, repair and operation of the Properties as well as security functions. 

(B) If commercially reasonable within the geographic area in which a Property is located, to obtain not less than three
(3) competing bids for, contract with and supervise onsite management of, contractors. 
 (C) Assist in coordinating the
opening and closing of the businesses of tenants, including but not limited to obtaining of insurance and signage approval. 

(D) In accordance with the operating budget, purchase necessary supplies and equipment required for the proper operation, maintenance,
repair and restoration of the Properties. 
 (E) Make or cause to be made repairs, replacements, renovations and capital
improvements on the Properties. 
 (F) Contract and pay charges for utilities used in the operation of the Properties,
including without limitation water, electricity, gas, telephone and sewerage services unless carried or covered under the respective tenant’s name. 

(G) Contract for and maintain such policies of commercial general liability and bodily injury and property damage insurance with respect
to the Properties as are acceptable to Owner. 
 (H) Advertise the Properties by such means and media and at such costs as are
in accordance with the Budget and Plan and as PECO shall deem appropriate (and at PECO’s expense, except as set forth in the last sentence of this subsection (H)) to implement an effective leasing program for the Properties on a local and
national basis, with no less effort and professionalism than that used for the advertising programs employed by PECO with respect to its own portfolio of properties. This advertising shall include attendance and facilities for ICSC and related
leasing events. Notwithstanding the foregoing, to the extent Owner shall request specific advertising that differs from or is in addition to PECO’s planned approach, the incremental cost of such specific advertising shall be borne by Owner.

 (I) Assist in securing leases with temporary tenants or licensees for use of the Properties. 

 

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 (J) Actively promote and market the Properties to potential tenants, current tenants and
the general community. 
 (K) Conduct complete inspections of the Properties as is prudent to determine that the same are in
good order and repair, but no less frequently than once per calendar quarter during the term of this Agreement. 
 (L) Forward
to Owner promptly upon receipt all notices of violation or other notices from any governmental authority, and board of fire underwriters or any insurance company, and shall make such recommendations regarding compliance with such notice as shall be
appropriate. 
 (M) Maintain business-like relations with the tenants of the Properties and respond promptly to tenant
complaints in a prudent, businesslike manner. PECO shall maintain a record of all written tenant complaints for no less than one year and PECO’s response to such complaints which record shall be available for review by Owner. 

(N) Analyze all bills received for services, work and supplies in connection with the maintaining and operating the Properties, pay all
such bills and any other amount payable in respect to the Properties. PECO shall use reasonable commercial efforts to pay all bills within the time required to obtain discounts, if any. Owner may from time to time request that PECO forward certain
bills to Owner promptly after receipt, and PECO shall comply with any such request. PECO will ensure timely 1099 reporting to the IRS, with 1099’s filed under PECO’s name and PECO’s taxpayer identification number (TIN), listing PECO
as the “payer”. PECO will provide annually a signed declaration indicating compliance with 1099 reporting; PECO will provide this declaration to Owner with the February Reporting Package. Penalties for misfilings as a result of PECO’s
negligence are not to be charged to the property, but are payable by PECO. 
 (iii) Other: 

(A) In accordance with the Budget or as otherwise approved in writing by Owner, employ, in-house or outside attorneys, at Owner’s
expense, to handle any legal matters involving the Properties. It is understood that PECO employs an in-house lease administration staff which will perform some or all of the legal services described herein. To the extent any of such lease
administration staff performs any of such services, the cost of such lease administration staff, based upon approved Budgets and Plans and consistent with the hourly rates charged internally by PECO to the other property funds for which it performs
management and leasing services, shall be deemed an operating expense of the Properties and shall be reimbursable by Owner. 

(B) Perform leasing analysis and credit underwriting with respect to prospective tenants (and subtenants and assignees); prepare leases
and other tenant related documents; and engage in a competitive construction bidding process for lease-related construction projects expected to exceed $25,000 not otherwise within the duties of a construction manager (as, for example, pursuant to
Section 5(c) below). 
  

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 (C) Take such other action and perform such other functions as PECO reasonably deems
advisable or necessary for the efficient and economic management, operation and maintenance of the Properties. 
 (b)
PECO’s duties as leasing agent for any of the Properties indicated on a Property Addendum as being subject to the leasing agent services as provided herein and subject to the Budget and Plan include the following: 

(i) Leasing Functions. PECO will coordinate and negotiate the leasing of the Properties using reasonable commercial efforts to
secure executed leases (both new and renewal) from qualified tenants for available space in the Properties. Such leases must be consistent with form and terms approved by Owner unless a tenant requires use of its own lease form. PECO shall be
responsible for the hiring of all leasing agents as necessary for the leasing of the Properties, to work with outside brokers and leasing agents, and otherwise to oversee and manage the leasing process on behalf of Owner. PECO’s duties in this
regard shall include, without limitation, (1) the preparation and distribution of listings to potential tenants and/or their representatives and to reputable and active real estate agents; (2) the supplying of sufficient information to
cooperating brokers and agents to enable them to promote the rental of the Properties, (3) to market and promote the Properties, (4) at all times to maintain and update a merchandising and leasing plan for each Property, and (5) to
provide an updated leasing budget and leasing reforecast for the following twelve (12) month period. Additionally, in connection with the budgeting process referred to above, PECO shall submit a yearly leasing budget for approval in accordance
(and simultaneously) with the procedure set forth above for the approval of each Property’s budget by Owner. 
 (ii)
Advertising. Owner authorizes PECO to advertise and to place signage on the Properties regarding the leasing, provided that such signage complies with all applicable governmental laws, regulations and requirements. PECO will provide a
marketing package, aerial photographs, demographic reports, site plans, signage and a two-sided flyer for each Property at PECO’s expense consistent with Section 5(a)(ii)(H). Any additional advertising and promotion requested by Owner will
be done at Owner’s expense pursuant to a program and budget agreed upon by Owner and PECO. 
 (iii) Other Actions.
PECO will take such other action and perform such other functions as PECO or Owner deems reasonably advisable or necessary for the efficient and economic leasing of the Properties. 

(c) PECO’s duties as construction manager for the Properties shall be in accordance with a capital budget established by Owner and
PECO prior to the commencement of construction activities and shall include the following: 
 (i) General. PECO shall
secure or assist in securing licenses, registrations, or permits required by law and shall comply with ordinances, laws, orders, codes, rules, and regulations pertaining to building improvements and/or the services described herein.

  

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PECO shall secure lien waivers and affidavits and properly file, to the extent required, terminations of notices of commencement prior to payment to contractors. 

(ii) Bidding. For all projects estimated to cost more than $25,000.00, PECO shall obtain bids from at least three outside
contractors. PECO shall select the low bid unless it has supplied Owner with a reasonable justification in writing for the selection of a bidder other than the low bidder (e.g., PECO determines in its reasonable discretion that the bidder to be
selected is more likely to complete the job on time, with commercially reasonable workmanship and in the most efficient manner). PECO shall manage the bidding process consistent with the manner in which it manages bidding for projects within its own
portfolio of properties. 
 (iii) New Construction, Tenant Improvements, and Redevelopments. PECO will perform the
following duties for construction of Improvements on undeveloped land (“New Construction”) and for construction of Improvements that are to be made at the direction of, or in conformity with lease obligations to, tenants
(“Tenant Improvements”) or for the improvement to Improvements that change the size or nature of such Improvements or for the redevelopment of Improvements (collectively, “Redevelopments”): 

(A) Provide updated and detailed project budgets to Owner. 

(B) Arrange for, coordinate, supervise and advise Owner with respect to the selection of architects, contractors, design firms and
consultants, and the execution of design, construction and consulting contracts. 
 (C) Review design documents, and drafts
thereof, submitted by the architect or other consultants, and notify Owner in writing of any mistakes, errors or omissions that PECO observes in the documents and any recommendations it may have with respect to such mistakes, errors or omissions,
provided PECO shall not in any manner be responsible for the accuracy, adequacy or completeness of such documents. 
 (D)
Evaluate and make recommendations to Owner concerning cost estimates prepared by others. 
 (E) Review and evaluate proposed
schedules for construction. 
 (F) Procure subcontractors through a minimum of three quotes for any jobs estimated to involve
in excess of $25,000. 
 (G) Coordinate the work of subcontractors. 

(H) Monitor the progress of construction. 

(I) Endeavor to work with the general contractor to identify any deficiencies in the work performed by subcontractors. 

 

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 (J) Provide Owner with monthly written status reports. 

(K) Advise Owner with respect to alterations and modifications in any design documents submitted by the architect or other consultants
that may be in Owner’s interest, including obtaining advantages in terms of cost savings, scheduling, leasing, operation and maintenance issues and other matters affecting the overall benefit of the project. 

(L) Review and advise Owner on change order proposals and requests for additional services submitted to Owner. 

(M) Schedule, coordinate, and attend necessary or appropriate project meetings. 

(N) Monitor and coordinate punch list preparation and resolution by the subcontractors. 

(O) Make recommendations to Owner concerning, and monitor, the use of the site by subcontractors, particularly as it relates to staging
and storage, ingress and egress, temporary signage, fencing, barricades, restrictions on hours of operation, safety considerations and similar considerations. 

(P) Coordinate, monitor, supervise and advise Owner with respect to preparation, execution, completion and filing of project-related
documents, including, but not limited to, contracts, permit applications, licenses, certifications, zoning requirements, land use restrictions, governmental filings applicable to the project and any other similar documents. 

(Q) Review and advise Owner with respect to draw requests submitted on the project. 

(R) Upon completion of construction, walk the completed New Construction, Tenant Improvements, or Redevelopments with Owner to ensure
that everything has been completed in accordance with the specifications. PECO shall cause the subcontractors to repair or replace any items that are determined to be deficient during this walk. 

(S) As instructed by Owner, perform additional related project management functions. 

(T) Collect warranties and operation manuals, certificates, guarantees, as-builts and any similar documentation for the benefit of
Owner. 
 (iv) New Construction and Redevelopments. In addition, PECO will perform the following duties with respect to
New Construction and Redevelopments: 
 (A) Provide Owner with a budget for each Improvement to be built prior to beginning
construction of the respective Improvement. 
  

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 (B) Meet on a regular basis with Owner’s leasing agents and representatives of
prospective tenants. 
 (C) Arrange for, coordinate, supervise and advise Owner with respect to various development services
prior to design and construction of the Project, including due diligence, site investigations, land use and zoning matters, and similar development services. 

(v) Tenant Improvements. In addition, PECO will perform the following duties related to Tenant Improvements: 

(A) 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 a Lease of such space or which are customarily provided to tenants. 
 (B) Meet with
tenants and prospective tenants and their architects, engineers, consultants and contractors to facilitate design and construction of leasehold improvements. 

(C) Maintain separate files as to each tenant, and thereby document the entire design and construction process for each tenant.

 (D) Compile and disseminate such data regarding each tenant as Owner may reasonably require. 

(vi) Duties with Respect to Tenant Directed Improvements. PECO will supervise and facilitate tenant installations performed by
the tenant and/or tenant’s contractors, including: 
 (A) Review and evaluate lease exhibit language that identifies the
scope and nature of tenant construction of the improvements. 
 (B) Review tenant construction documents for compliance with
landlord criteria and requirements applicable to the improvements. 
 (C) Review and evaluate proposed schedules for tenant
construction. 
 (D) Coordinate delivery of shell space to tenants as required by the tenant’s lease. 

(E) Monitor the progress of tenant construction including but not limited to compliance with scheduling requirements, compliance with
rules and regulations of the Property, verify that tenant has obtained proper permits, etc., coordinating requests for tenant improvement allowance draws 
  

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 (F) Maintain appropriate files and records as to each project documenting the design and
construction process for each tenant in a manner consistent with PECO’s record retention guidelines. 
 (vii) Duties
with Respect to All Improvements. PECO will supervise all Improvement projects, such supervision to include, but not be limited to, preparation of budgets, plans, bidding, subcontractor selection, material selection, job supervision, collection
of lien waivers, sworn statements, affidavits and the like. PECO shall require such lien waivers, sworn statements, affidavits and similar documentation as a condition to disbursement. 

(d) Other. PECO shall in all events comply with the reasonable requests of Owner related to property management of, leasing of,
and construction management of the Improvements to be made to, the Properties. Owner shall maintain sufficient funds in an account or accounts so that PECO will have funds available to pay all obligations contemplated hereunder when due. Under no
circumstances shall PECO have any obligations or duty to advance funds to or for the account of Owner. 
 (e) Ownership
Agreements. Owner agrees to obtain and review copies of all (1) agreements of limited partnership, joint venture partnership agreements and operating agreements of Owner and its affiliates as well as the articles of incorporation, bylaws,
and registration statement on Form S-11 (no. 333-164313) of REIT, including all prospectus supplements and post-effective amendments thereto (collectively, the “Ownership Agreements”) and (2) mortgages on all Properties and
inform PECO of any restrictions relating to property use arising therefrom. PECO will use reasonable care to avoid any act or omission which, in the performance of its duties hereunder, in any way conflicts with the terms of the Ownership Agreements
or the mortgages in the absence of the express direction of the REIT’s board of directors, and PECO shall promptly notify Owner if any such conflict arises. 

(f) Periodic Meetings. As reasonably required by Owner, PECO its personnel or contractors engaged or involved in the management,
operation, leasing or construction management of the Properties shall meet to discuss the historical results of operations, to consider deviations from any budget, and to discuss any other matters so requested by the Owner upon reasonable notice
from Owner. 
 6. Compensation and Expense Reimbursement. 

(a) For each Property for which PECO provides property management services, Owner shall pay PECO a monthly management fee equal to four
and one/half percent (4.5%) of the Gross Receipts (as defined below) for that given month, payable from that month’s receipts. “Gross Receipts” means (i) all fixed and minimum rent, percentage rent and license fees
paid by tenants and other occupants of each Property, (ii) the profit of Owner derived from the sale of electricity (i.e., the spread between the wholesale and retail prices of electricity that is re-sold to tenants of the Properties),
utilities and heating, ventilation and air conditioning to tenants and other occupants of each Property, (iii) all amounts paid by tenants and other occupants of each Property for common area maintenance, real estate taxes, insurance, interest

  

 - 14 - 

 
and any other payments of any nature (including attorneys’ fees and late fees) made by any such tenants or other occupants, and (iv) proceeds of rent insurance 

(b) For each Property for which PECO provides leasing services, Owner shall pay PECO leasing fees at market rates for the geographic area
in which the applicable Property is located as specified on the Property Addendum for such Property. 
 (c) For each Property
for which PECO provides construction management services, PECO shall be entitled to fees for tenant and tenant directed improvements, capital improvements and construction management services, all at market rates for the geographic area in which the
applicable Property is located, as may be more fully set forth on the applicable Property Addendum or another writing executed by PECO and Owner. 

(d) PECO will pay such other reimbursable expenses and costs as Owner has approved and deems advisable or necessary for the efficient and
economic management and leasing of the Properties through its annual budgets or as otherwise provided for in this Agreement (e.g., for marketing or leasing programs that exceed in scope that which PECO would normally utilize for its own properties,
as provided for in Sections 5(a)(ii)(H) and 5(b)(ii). Owner shall reimburse PECO for such expenses, which shall include, to the extent included in the applicable Property budgets or a general property management and leasing budget to be agreed upon,
personnel costs for On-Site Personnel providing direct services for the Properties, cost of travel and entertainment, printing and stationery, advertising, marketing, signage, long distance phone calls and other direct expenses. 

7. Insurance. PECO shall obtain and keep in full force and effect at Owner’s expense insurance (1) on the
Properties, and (2) on activities at the Properties against such hazards as Owner and PECO shall deem appropriate and as may be required under any mortgage or other loan documents binding upon Owner. In any event, PECO shall procure, for the
Properties for which PECO is property manager, insurance sufficient to comply with the leases and the Ownership Agreements. All liability policies shall provide sufficient insurance satisfactory to both Owner and PECO and shall contain waivers of
subrogation for the benefit of PECO and the applicable Owner. 
 (a) PECO shall obtain and keep in full force and effect, in
accordance with the laws of the state in which each Property is located, worker’s compensation insurance covering all employees of PECO at the Properties and all persons engaged in the performance of any work required hereunder. PECO shall also
obtain and keep in full force and effect, in accordance with the laws of the state in which each Property is located, employer’s liability, employee theft, commercial general liability, and umbrella insurance, and PECO shall furnish Owner
certificates of insurers naming Owner as co-insureds and evidencing that such insurance is in effect and that insurer will provide directly to Owner no less than 30 days’ notice of any cancellation or non-renewal. If any work under this
Agreement is subcontracted as permitted herein, PECO shall include in each subcontract a provision that the subcontractor shall also furnish Owner, as appropriate, with such a certificate evidencing coverage (and any other coverage PECO deems
appropriate in the circumstances) and the naming of Owner as co-insured and evidencing that such insurance is in effect and that insurer will provide directly to Owner no less than 30 days’

  

 - 15 - 

 
notice of any cancellation or non-renewal, as well as indemnification as is customary. The cost of such insurance procured by PECO shall be reimbursable to the same extent as provided in this
Agreement. 
 (b) PECO shall cooperate with and provide reasonable access to the Properties to representatives of insurance
companies and insurance brokers with respect to insurance which is in effect or for which application has been made. PECO shall use its good faith efforts in a commercially reasonable manner to comply with all requirements of insurers. 

(c) PECO shall promptly investigate and shall report in detail to Owner and the applicable insurance carriers all accidents, claims for
damage relating to the ownership, operation or maintenance of the Properties, and any damage or destruction to the Properties and the estimated costs of repair thereof, and shall prepare for approval by Owner all reports required by the applicable
insurance company in connection with any such accident, claim, damage, or destruction. Owner shall reimburse PECO’s third party costs in connection therewith. Such reports shall be given to Owner promptly and any report not so given within 10
days after the occurrence of any such accident, claim, damage or destruction shall be noted in the monthly reports delivered to Owner. PECO is authorized to settle any claim against an insurance company arising out of any policy and, in connection
with such claim, to execute proofs of loss and adjustments of loss and to collect and provide receipts for loss proceeds using commercially reasonable good faith efforts. 

8. Liability of PECO. PECO shall not be liable for any errors in judgment or for mistakes of fact or of law or for anything
which it may in good faith do or refrain from doing, except in the case of gross negligence, fraud or willful misconduct. 
 9.
Indemnity. Owner shall indemnify PECO and its managers, employees and officers against and agrees to defend, protect, hold and save them free and harmless from any liability or expenses (including reasonable attorney’s fees and
court costs) arising out of injuries or damages to persons or property by reason of any cause relating to the Properties, except to the extent caused by the gross negligence, fraud or willful misconduct and which is not otherwise covered by
insurance held by Owner. Owner shall name PECO as an “additional insured” or “co-insured” on any and all liability insurance policies for the Properties. PECO shall indemnify Owner and its employees and officers against and
agrees to defend, protect, hold and save them free and harmless from any liability or expenses (including reasonable attorney’s fees and court costs) arising out of injuries or damages to persons or property by reason of any cause relating to
the Properties caused by the gross negligence, fraud or willful misconduct, which is not otherwise covered by insurance held by Owner. 

10. Termination. This Agreement may be terminated by either party upon thirty (30) days’ written notice, in toto
or only with respect to any Property, provided such termination shall not affect any rights or obligations accrued to either party prior to termination (subject to any offsetting claims for damages), including, but not limited to payment of property
management fees, leasing fees and construction management fees earned to the date of termination (provided 
  

 - 16 - 

 
that, if termination occurs before a construction project is completed, the construction management fee to be earned shall be prorated based upon the reasonably estimated portion of the
applicable project that had been completed up to the date of termination). If this Agreement is terminated, only commissions and management fees with respect to any Properties that are subject to such termination and that have accrued prior to the
termination date shall be due to PECO. Notwithstanding anything to the contrary contained in this Agreement, if either Owner or PECO defaults in performing any of its obligations under this Agreement, the other party may terminate this Agreement
effective upon delivery of notice of such default. The indemnification obligations of the parties hereunder shall survive the expiration or termination of this Agreement. PECO’s obligations under this Agreement for physical property management,
leasing and construction management may, at Owner’s election, terminate as to any particular Property upon its sale, provided that PECO’s obligations for the performance of accounting and other so-called “back office functions”
shall terminate only at such time as a final tax return with respect to the applicable Property has been prepared and filed and such customary and ordinary information related to the Property or Properties has been provided to Owner. PECO shall
cooperate subsequent to any termination of this Agreement as to a particular Property to provide final property reconciliations and other reports as reasonably requested by Owner. 

11. PECO’S Obligations After Termination. Upon the termination of this Agreement, PECO shall have the following
duties: 
 (a) PECO shall deliver to Owner, or its designee, all books and records (including data files in magnetic or other
similar storage media but specifically excluding any licensed software) with respect to the Properties. 
 (b) PECO shall
transfer and assign to Owner, or its designee, or terminate upon Owner’s direction, all service contracts (designated by Owner for transfer and assignment) and personal property relating to or used in the operation and maintenance of the
Properties, except personal property paid for and owned by PECO. PECO shall also, for a period of sixty (60) days immediately following the date of such termination (with respect to this entire Agreement or any Property terminated as being
subject to this Agreement), make itself available to consult with and advise Owner, or its designee, regarding the operation, maintenance and leasing of the Properties at no additional cost to Owner. 

(c) PECO shall render to Owner an accounting of all funds of Owner in its possession and shall deliver to Owner a statement of Management
Fees claimed to be due PECO and shall cause funds of Owner held by PECO relating to the Properties to be paid to Owner or their designees and shall assist in the transferring of approved signatories on all Accounts. 

12. No Obligation to Third Parties. None of the obligations and duties of PECO under the Agreement shall in any way or in
any manner be deemed to create any obligations of PECO to any third party with the exception of Owner. 
 13. Additional
Services. The services contemplated hereunder are normal and customary property management, leasing and general and construction management services. If PECO is required or requested to perform additional services beyond the scope of this

  

 - 17 - 

 
Agreement, then Owner shall pay PECO fees for these additional services at market rates as mutually agreed upon in advance by the parties. 

14. PECO’S Action on Tenant’s Default. If the reasonably expected costs are less than a threshold to be agreed
upon by PECO and Owner with respect to each Property (or with respect to leases or contracts less than certain thresholds with respect to each Property), PECO shall have the right, in its own name or in the name of Owner, to take any and all
actions, including distraint, which PECO deems advisable and which Owner shall have the right to take, in the event of any tenant’s breach of any covenant, provision or condition binding upon such tenant under its lease with Owner. Nothing in
this paragraph shall be deemed to require PECO to institute legal action against any tenant. If the reasonably expected costs exceed the agreed upon thresholds, then Owner shall only be responsible for such costs if it pre-approves such actions. In
addition, if Owner desires to commence legal action notwithstanding PECO’s recommendation to the contrary, it shall pay for all costs and reasonable attorneys’ fees in connection therewith. 

15. Binding Effect. This Agreement and all the provisions hereof shall be binding upon, and shall inure to the benefit of,
the parties hereto and their respective successors and assigns. 
 16. Entire Agreement. This Agreement supersedes
all agreements previously made between the parties relating to its subject matter. There are no other understandings or agreements between them. 

17. Assignment. PECO may delegate partially or in full its duties and rights under this Agreement but only with the prior
written consent of Owner. Except as provided in the immediately preceding sentence, this Agreement shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns. 

18. Amendments. This Agreement may be amended only by an instrument in writing signed by the party against whom enforcement
of the amendment is sought. 
 19. Other Business. Nothing herein contained shall prevent PECO from engaging in
other activities or business ventures, whether or not such other activities or ventures are in competition with Owner or the business of Owner, including, without limitation, property management activities for other parties (including other REITs)
and the provision of services to other programs advised, sponsored or organized by PECO or its affiliates or third parties; nor shall this Agreement limit or restrict the right of any director, officer, employee, or stockholder of PECO or its
affiliates to engage in any other business or to render services of any kind to any other partnership, corporation, firm, individual, trust or association. PECO may, with respect to any investment in which the Owner is a participant, also render
advice and service to each and every other participant therein. PECO shall report to the board of directors of REIT 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 PECO’s obligations to Owner and its obligations to or its interest in any other partnership, corporation, firm, individual, trust or association. 

 

 - 18 - 

 20. Notices. All notices under this Agreement shall be in writing and
delivered personally or mailed by certified mail, postage prepaid, addressed to the parties at their last known addresses. All notices, approvals, consents and other communications hereunder shall be in writing, and, except when receipt is required
to start the running of a period of time, shall be deemed given when delivered in person or on the fifth day after its mailing by either party by registered or certified United States mail, postage prepaid and return receipt requested, to the other
party, at the addresses set forth after their respect name below or at such different addresses as either party shall have theretofore advised the other party in writing in accordance with this Section. 

 

					
		 	OP:	 	Phillips Edison – Arc Properties Operating Partnership, L.P.,
		 		 	11501 Northlake Drive
		 		 	Cincinnati, OH 45249
		 		 	Attention: President
			
		 	REIT:	 	Phillips Edison – Arc Properties REIT Inc.
		 		 	11501 Northlake Drive
		 		 	Cincinnati, OH 45249
		 		 	Attention: President
			
		 	With a copy to:	 	DLA Piper LLC (US)
		 		 	4141 Parklake Drive, Suite 300
		 		 	Raleigh, NC 27612
		 		 	Attention: Robert Bergolt, Esq.
			
		 	PECO:	 	Phillips Edison & Company Ltd.
		 		 	11501 Northlake Drive
		 		 	Cincinnati, OH 45249
		 		 	Attention: President
			
		 	With a copy to:	 	Honigman Miller Schwartz and Cohn LLP
		 		 	38500 Woodward Avenue, Suite 100
		 		 	Bloomfield Hills, MI 48304-5048
		 		 	Attention: J. Adam Rothstein, Esq.

 21.
Non-Waiver. No delay or failure by either party to exercise any right under this Agreement, and no partial or single exercise of that right, shall constitute a waiver of that or any other right, unless otherwise expressly provided
herein. 
 22. Headings. Headings in this Agreement are for convenience only and shall not be used to interpret or
construe its provisions. 
 23. Severability. If any term, covenant or condition of this Agreement or the
application thereof to any Person or circumstance shall, to any extent, be held to be invalid or unenforceable, then the remainder of this Agreement, or the application of such term, covenant 

 

 - 19 - 

 
or condition to persons or circumstances other than those as to which it is held to be invalid or unenforceable, shall not be affected thereby, and each term, covenants or condition of this
Agreement shall be valid and shall be enforced to the fullest extent permitted by law. 
 24. Governing Law. This
Agreement shall be construed in accordance with and governed by the laws of the State of Ohio. Any action to enforce this Agreement or an action for a breach of this Agreement shall be maintained in a binding arbitration proceeding before the
American Arbitration Association in Cincinnati, Ohio. 
 25. Counterpart. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 

26. Audit Right. PECO shall cooperate with the REIT’s independent auditors with respect to the annual audit of the
REIT for the purpose of expressing an opinion on the financial statements of the REIT (the “Annual REIT Audit”). In addition, the REIT shall have the right to conduct an audit of PECO’s books and records solely with respect to the
fees and expense reimbursements relating to the services provided pursuant to this Agreement (the “Fee Audit”). The REIT may conduct the Fee Audit by using its own internal auditors or by employing independent auditors no more than once
per year. Costs associated with conducting such Fee Audits by internal or independent auditors, and costs of the Annual REIT Audit, shall be borne by REIT. If any Fee Audit conducted by or on behalf of REIT reveals a discrepancy in excess of ten
percent (10%), and greater than $10,000, for the aggregate fees and expense reimbursements payable during the period under audit pursuant to the Fee Audit, PECO shall be responsible for the reasonable expenses of such audit. 

Signatures on next page. 
  

 - 20 - 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written. 
 On behalf of “OWNER”: 

OP: 
  

			
	PHILLIPS EDISON – ARC PROPERTIES OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
		
	 By:
	 	PHILLIPS EDISON PROPERTIES OP GP LLC,
		 	a                      limited liability
company
		 	General Partner

  

					
		 	 By:
	 	  

		 		 	John B. Bessey, President

 REIT: 

 

			
	PHILLIPS EDISON – ARC PROPERTIES REIT INC. a Maryland corporation

 

					
		 	By:	 	  

		 		 	John B. Bessey, President

 PECO: 

 

			
	PHILLIPS EDISON & COMPANY LTD.,
	an Ohio limited liability company
		
	By:	    	  

		    	R. Mark Addy, COO

 EXHIBIT A 

MONTHLY REPORTING PACKAGE 

For the current month and year to date, statements presenting, on a comparative basis, actual to budget (and/or forecast or other projections), including
variance explanations for material variances: 
  

	 	•	 	 Executive Summary (operations, leasing, capital, tenant/market issues, other) 

 

	 	•	 	 Balance Sheet 

  

	 	•	 	 Income Statement 

  

	 	•	 	 Aged Receivables and Delinquencies Report 

  

	 	•	 	 Rent Rolls (as requested in writing by Owner) 

  

	 	•	 	 Month to date and year to date variance report with explanations (budget to actual and actual to previous year actual) 

 

	 	•	 	 List of any material accrual adjustment that may have been missed on the last business day of each month 

 

	 	•	 	 Leasing Update 

  

	 	•	 	 Consolidated Financial Statements 

  

	 	•	 	 Reforecast operating projections and cash flow 

  

	 	•	 	 Any additional reports that Owner shall reasonably request 

 

 - 22 - 

 EXHIBIT B 

QUARTERLY REPORTING PACKAGE 
  

	•	 	 All items in the monthly reporting package. 

  

	•	 	 Quarter to date variance reports with explanations compared to budget and same period prior year. 

 

	•	 	 Copy of cash receipts ledger entries for such period, if requested. 

 

	•	 	 The originals (or copies, as Owner may request) of all contracts entered into by PECO on behalf of Owner during such period, if requested.

  

	•	 	 Consolidated financial statements. 

  

	•	 	 Such other reports as may be required by Owner. 

 

 - 23 - 

 EXHIBIT C 

ANNUAL REPORTING PACKAGE 
  

	 	•	 	 All items in the quarterly reporting package which shall include annual operating statements and a list of variances and explanations of material
variances (budget to actual and actual to previous year actual). 

  

	 	•	 	 All information required for tax filings, as determined by Owner. 

 

	 	•	 	 Certifications of assessment, testing and compliance with internal controls. 

Any other reports reasonably requested by Owner. 
  

 - 24 - 

 Form of Property Addendum 

PROPERTY DESCRIPTION: 
 Property Name:

 Street Address: 
 City, State, Zip
Code: 
 County: 
 Owner Name:

 Owner Tax ID#: 
 Tax Parcel ID #:

 SERVICES TO BE PROVIDED: 
  

	 ̈	Property Management Services as specified in this Agreement with: 

  

							
		 	______ No changes
			
		 	______ Changes as follows:	 	_________________________________________________________________________________________________________________________________________________________________________
		
		 	                
_________________________________________________________________________________________________________________________________________________________________________
		
		 	                
_________________________________________________________________________________________________________________________________________________________________________
	
	Threshold pursuant to Section 14:
______________________________________________________________________________________________________________________________________
		
		 	                
_________________________________________________________________________________________________________________________________________________________________________
		
		 	                
_________________________________________________________________________________________________________________________________________________________________________
	
	Property Management Fees:
		
	 ̈    	 	 Property Management Fee: 4.5% of Gross Receipts, as specified in
Section 6(a).

		
	 ̈    	 	Property Management Fee (other calculation):
__________________________________________________________________________________________________________________
		
		 	  

		
		 	  

		
		 	  

	 ̈	Leasing Agreement duties as specified in Section 5(b) of the Agreement except as specified below: 

          
_________________________________________________________________________________________________________________________________________________________________________ 

          
_________________________________________________________________________________________________________________________________________________________________________ 

          
_________________________________________________________________________________________________________________________________________________________________________ 
  

	 ̈	Leasing Agreement Fees: 

  

	 	 ̈	New Lease Commission Percentage:                     
percent (    %) of the gross amount of all base rent under the first                     
(    ) years of the primary term of said leases, plus                      percent
(    %) of the gross amount of all base rent under the next                     
(    ) years of the primary term, payable [e.g., one-half] upon the full execution of the lease and [one-half] upon tenant opening for business. 

 

	 	 ̈	Notwithstanding the foregoing, for any new lease for over
                     square feet, the leasing commission shall be at a fixed rate of
                     Dollars ($        ) per square foot of leasable area.

  

	 	 ̈	Renewals: PECO shall not be paid a fee for any renewal or extension for which an option exists in the initial lease, provided that if, in connection with a lease
renewal or extension, an outside, third party broker is owed a commission, Owner shall pay to PECO such commission for delivery to such broker. If a renewal or extension is not provided for in the initial lease and PECO negotiates, on behalf of
Owner, a renewal or extension, PECO shall be paid:
                                      

                
_________________________________________________________________________________________________________________________________________________________________________ 

                
_________________________________________________________________________________________________________________________________________________________________________ 
  

	 	 ̈	Expansions: For each lease amendment or modification in which the tenant expands its premises, Owner will pay PECO a leasing commission of
                     percent (    %) of the gross amount of the base rent represented by such
additional space under the balance of the then current term of the lease, payable [one-half] upon execution of the amendment or modification document and [one-half] upon the tenant opening for business from the expansion space.

 Co-Brokers:    As leasing agent for the Properties, PECO may
cooperate with independent real estate brokers or agents. If PECO hires a co-broker in order to assist PECO in securing a tenant or if an opportunity is brought to PECO by an independent broker, PECO shall be paid in accordance with this Agreement
and the co-broker’s commission will be the responsibility of PECO. If the co-broker’s fee would exceed what PECO would otherwise be entitled to pursuant to the above fee schedule, such co-broker’s commission may be paid only upon
written approval of Owner. 
  

	 ̈	 Notwithstanding the preceding, in the event of the use of a co-broker, regardless of the amount of fee co-broker shall be entitled to, PECO shall be
entitled to a fee of not less 

  

 A-2 

	 	 
than                      percent (    %) of the
gross amount of all base rent under the first                      (    ) years of the primary term of any
applicable lease for which a co-broker was used, plus                      percent (    %)of the gross
amount of all base rent under the next                      (    ) years of the primary term of any such lease,
even if such fee plus the co-broker’s fee exceeds the percentage otherwise provided for above under “New Lease Commission Percentage.” 

  

	 ̈	Payment terms (if other than specified above):
                     

  

 A-3 

	 ̈	Construction Management Services as specified in Section 5(c) of the Agreement except as specified below. In particular, the construction management will include
the following (add attachments as necessary): 

          
_________________________________________________________________________________________________________________________________________________________________________ 

          
_________________________________________________________________________________________________________________________________________________________________________ 

          
_________________________________________________________________________________________________________________________________________________________________________ 

          
_________________________________________________________________________________________________________________________________________________________________________ 

          
_________________________________________________________________________________________________________________________________________________________________________ 

          
_________________________________________________________________________________________________________________________________________________________________________ 

          
_________________________________________________________________________________________________________________________________________________________________________ 

          
_________________________________________________________________________________________________________________________________________________________________________ 

          
_________________________________________________________________________________________________________________________________________________________________________ 

Fees 
  

	 ̈	Construction management Fees: 

  

 
  

 
  

 
  

 
  

 
  

 
  

 
  

 
 Examples: 

 

	 ̈	The Owner agrees to pay PECO a management fee in the amount of $         within fifteen (15) days of acceptance
of the Improvement by the Owner. 

  

	 ̈	As payment for the services to be performed by the PECO hereunder, Owner shall pay the PECO a fee of
                     ($        ), to be paid on the first day of each month of the term
of the project in equal monthly installments of                      ($        ), plus
reimbursable expenses referenced in this Agreement. 

  

	 ̈	PECO agrees to collect and provide the Owner with invoices for the work completed on the Improvement on a monthly basis unless the Owner and PECO agree to a more
frequent basis. Upon delivery of such invoices, the Owner will be solely responsible for promptly paying the company or companies performing the work. The contract form used by the Owner shall specify that PECO has no responsibility for payment.
Reimbursable expenses as described in this Agreement shall be reimbursed to the PECO at cost plus ten percent (10%) and shall be billed on a monthly basis. 

 

 A-4Form of Ameded and Restated 2010 Independent Director Stock Plan

 Exhibit 10.3 

PHILLIPS EDISON — ARC SHOPPING CENTER REIT INC. 

FORM OF AMENDED AND RESTATED 

2010 INDEPENDENT DIRECTOR STOCK PLAN 

 Exhibit 10.3 

PHILLIPS EDISON — ARC SHOPPING CENTER REIT INC. 

2010 INDEPENDENT DIRECTOR STOCK PLAN 
  

			
	 ARTICLE 1 PURPOSE
	  	1
	 1.1. GENERAL
	  	1
	 ARTICLE 2 DEFINITIONS
	  	1
	 2.1. DEFINITIONS
	  	1
	 ARTICLE 3 EFFECTIVE TERM OF PLAN
	  	4
	 3.1. EFFECTIVE DATE
	  	4
	 3.2. TERMINATION OF PLAN
	  	4
	 ARTICLE 4 ADMINISTRATION
	  	4
	 4.1. COMMITTEE
	  	4
	 4.2. ACTION AND INTERPRETATIONS BY THE COMMITTEE
	  	4
	 4.3. AUTHORITY OF COMMITTEE
	  	4
	 4.4. AWARD CERTIFICATES
	  	5
	 ARTICLE 5 SHARES SUBJECT TO THE PLAN
	  	5
	 5.1. NUMBER OF SHARES
	  	5
	 5.2. SHARE COUNTING
	  	5
	 5.3. STOCK DISTRIBUTED
	  	5
	 ARTICLE 6 ELIGIBILITY
	  	6
	 6.1. GENERAL
	  	6
	 ARTICLE 7 RESTRICTED STOCK
	  	6
	 7.1. GRANT OF RESTRICTED STOCK
	  	6
	 7.2. ISSUANCE AND RESTRICTIONS
	  	6
	 7.3. FORFEITURE
	  	6
	 7.4. DELIVERY OF RESTRICTED STOCK
	  	6
	 ARTICLE 8 PROVISIONS APPLICABLE TO AWARDS
	  	6
	 8.1. TERM OF AWARD
	  	6
	 8.2. FORM OF PAYMENT FOR AWARDS
	  	6
	 8.3. LIMITS ON TRANSFER
	  	6
	 8.4. BENEFICIARIES
	  	7
	 8.5. STOCK TRADING RESTRICTIONS
	  	7
	 8.6. ACCELERATION UPON DEATH OR DISABILITY
	  	7
	 8.7. ACCELERATION UPON A CHANGE IN CONTROL
	  	7

  

 i 

			
	 8.8. ACCELERATION FOR ANY REASON
	  	7
	 8.9. FORFEITURE EVENTS
	  	7
	 8.10. SUBSTITUTE AWARDS
	  	7
	 ARTICLE 9 CHANGES IN CAPITAL STRUCTURE
	  	8
	 9.1. MANDATORY ADJUSTMENTS
	  	8
	 9.2. DISCRETIONARY ADJUSTMENTS
	  	8
	 ARTICLE 10 AMENDMENT, MODIFICATION AND TERMINATION
	  	8
	 10.1. AMENDMENT, MODIFICATION AND TERMINATION
	  	8
	 10.2. AWARDS PREVIOUSLY GRANTED
	  	9
	 10.3. COMPLIANCE AMENDMENTS
	  	9
	 ARTICLE 11 GENERAL PROVISIONS
	  	9
	 11.1. RIGHTS OF PARTICIPANTS
	  	9
	 11.2. WITHHOLDING
	  	9
	 11.3. SPECIAL PROVISIONS RELATED TO SECTION 409A OF THE CODE
	  	10
	 11.4. UNFUNDED STATUS OF AWARDS
	  	11
	 11.5. RELATIONSHIP TO OTHER BENEFITS
	  	11
	 11.6. EXPENSES
	  	11
	 11.7. TITLES AND HEADINGS
	  	11
	 11.8. GENDER AND NUMBER
	  	11
	 11.9. FRACTIONAL SHARES
	  	11
	 11.10. GOVERNMENT AND OTHER REGULATIONS
	  	11
	 11.11. GOVERNING LAW
	  	12
	 11.12. ADDITIONAL PROVISIONS
	  	12
	 11.13. NO LIMITATIONS ON RIGHTS OF COMPANY
	  	12
	 11.14. INDEMNIFICATION
	  	12

  

 ii 

 Exhibit 10.3 

PHILLIPS EDISON — ARC SHOPPING CENTER REIT INC. 

2010 INDEPENDENT DIRECTOR STOCK PLAN 

ARTICLE 1 

PURPOSE 
 1.1.
GENERAL. The purpose of the Phillips Edison — ARC Shopping Center REIT Inc. 2010 Independent Director Stock Plan (the “Plan”) is to promote the success, and enhance the value, of Phillips Edison — ARC Shopping Center REIT
Inc. (the “Company”), by linking the personal interests of directors of the Company to those of Company stockholders. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the
services of directors upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. Accordingly, the Plan permits the grant of incentive awards from time to time to selected directors
of the Company. 
 ARTICLE 2 

DEFINITIONS 
 2.1.
DEFINITIONS. When a word or phrase appears in this Plan with the initial letter capitalized, and the word or phrase does not commence a sentence, the word or phrase shall generally be given the meaning ascribed to it in this Section or in
Section 1.1 unless a clearly different meaning is required by the context. The following words and phrases shall have the following meanings: 
  

	 	(a)	“Affiliate” means (i) any Subsidiary or Parent, or (ii) an entity that directly or through one or more intermediaries controls, is controlled by or
is under common control with, the Company, as determined by the Committee. 

  

	 	(b)	“Award” means any Restricted Stock or any other right or interest relating to Stock or cash, granted to a Participant under the Plan.

  

	 	(c)	“Award Certificate” means a written document, in such form as the Committee prescribes from time to time, setting forth the terms and conditions of an Award.
Award Certificates may be in the form of individual award agreements or certificates or a program document describing the terms and provisions of an Award or series of Awards under the Plan. The Committee may provide for the use of electronic,
internet or other non-paper Award Certificates, and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by a Participant. 

 

	 	(d)	“Beneficial Owner” shall have the meaning given such term in Rule 13d-3 of the General Rules and Regulations under the 1934 Act.

  

	 	(e)	“Board” means the Board of Directors of the Company. 

  

	 	(f)	“Change in Control” means and includes the occurrence of any one of the following events but shall specifically exclude a Public Offering:

  

	 	(i)	 individuals who, on the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a
majority of such Board, provided that any person becoming a director after the Effective Date and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an
Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to the election or removal of directors
(“Election Contest”) or other 

  

 1 

	 	 
actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or
settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director; or 

  

	 	(ii)	any person becomes a Beneficial Owner, directly or indirectly, of either (A) 25% or more of the then-outstanding shares of common stock of the Company
(“Company Common Stock”) or (B) securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting
Securities”); provided, however, that for purposes of this subsection (ii), the following acquisitions of Company Common Stock or Company Voting Securities shall not constitute a Change in Control: (w) an acquisition directly
from the Company, (x) an acquisition by the Company or a Subsidiary, (y) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, or (z) an acquisition pursuant to a
Non-Qualifying Transaction (as defined in subsection (iii) below); or 

  

	 	(iii)	the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or a Subsidiary (a
“Reorganization”), or the sale or other disposition of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another corporation or other entity (an “Acquisition”),
unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and entities who were the Beneficial Owners, respectively, of the outstanding Company Common Stock and outstanding Company
Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly, more than 25% of, respectively, the then outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their ownership,
immediately prior to such Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no person (other than (x) the Company or any Subsidiary,
(y) the Surviving Entity or its ultimate parent entity, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the Beneficial Owner, directly or indirectly, of 25% or more of the total
common stock or 25% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity were
Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in
(A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or 

  

	 	(iv)	approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

 

	 	(g)	“Code” means the Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections of the Code shall be deemed to
include references to any applicable regulations thereunder and any successor or similar provision. 

  

	 	(h)	“Committee” means the committee of the Board described in Article 4. 

 

 2 

	 	(i)	“Company” means Phillips Edison — ARC Shopping Center REIT Inc., a Maryland corporation, or any successor corporation. 

 

	 	(j)	“Continuous Status as a Participant” means the absence of any interruption or termination of service as a director of the Company. Whether military,
government or other service or other leave of absence shall constitute a termination of Continuous Status as a Participant shall be determined in each case by the Committee at its discretion, and any determination by the Committee shall be final and
conclusive. 

  

	 	(k)	“Disability” of a Participant means that the Participant (i) is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health
plan covering employees of the Participant’s employer. In the event of a dispute, the determination of whether a Participant is Disabled will be made by the Committee and may be supported by the advice of a physician competent in the area to
which such Disability relates. 

  

	 	(l)	“Effective Date” has the meaning assigned such term in Section 3.1. 

 

	 	(m)	“Eligible Participant” means a director of the Company. 

  

	 	(n)	“Exchange” means any national securities exchange on which the Stock may from time to time be listed or traded. 

 

	 	(o)	“Fair Market Value,” on any date, means (i) if the Stock is listed on an Exchange, the closing sales price on such Exchange or over such system on such
date or, in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Stock is not listed on an Exchange, the mean between the bid and offered prices as
quoted by the applicable interdealer quotation system, provided that if the Stock is not quoted on such interdealer quotation system or it is determined that the fair market value is not properly reflected by such quotations, Fair Market Value will
be determined by such other method as the Committee determines in good faith to be reasonable and in compliance with Code Section 409A. 

  

	 	(p)	“Parent” means a corporation, limited liability company, partnership or other entity which owns or beneficially owns a majority of the outstanding voting
stock or voting power of the Company. 

  

	 	(q)	“Participant” means an independent director of the Company who has been granted an Award under the Plan; provided that in the case of the death of a
Participant, the term “Participant” refers to a beneficiary designated pursuant to Section 8.4 or the legal guardian or other legal representative acting in a fiduciary capacity on behalf of the Participant under applicable state law
and court supervision. 

  

	 	(r)	“Person” means any individual, entity or group, within the meaning of Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3) or 14(d)(2) of
the 1934 Act. 

  

	 	(s)	“Plan” means the Phillips Edison — ARC Shopping Center REIT Inc. 2010 Independent Director Stock Plan, as amended from time to time.

  

	 	(t)	“Public Offering” shall occur on the closing date of a public offering of any class or series of the Company’s equity securities pursuant to a
registration statement filed by the Company under the 1933 Act. 

  

 3 

	 	(u)	“Restricted Stock” means Stock granted to a Participant under Article 7 that is subject to certain restrictions and to risk of forfeiture.

  

	 	(v)	“Shares” means shares of the Company’s Stock. If there has been an adjustment or substitution pursuant to Section 9.1, the term “Shares”
shall also include any shares of stock or other securities that are substituted for Shares or into which Shares are adjusted pursuant to Section 9.1. 

  

	 	(w)	“Stock” means the $0.01 par value common stock of the Company and such other securities of the Company as may be substituted for Stock pursuant to
Section 9.1. 

  

	 	(x)	“Subsidiary” means any corporation, limited liability company, partnership or other entity of which a majority of the outstanding voting stock or voting power
is beneficially owned directly or indirectly by the Company. 

  

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

 

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

ARTICLE 3 

EFFECTIVE TERM OF PLAN 

3.1. EFFECTIVE DATE. The Plan shall be effective as of the date it is approved by both the Board and the stockholders of the Company (the
“Effective Date”). 
 3.2. TERMINATION OF PLAN. The Plan shall terminate on the tenth anniversary of the Effective Date unless
earlier terminated as provided herein. The termination of the Plan on such date shall not affect the validity of any Award outstanding on the date of termination, which shall continue to be governed by the applicable terms and conditions of this
Plan. 
 ARTICLE 4 

ADMINISTRATION 
 4.1.
COMMITTEE. The Plan shall be administered by the Conflicts Committee (as defined in the Company’s Charter) or a subcommittee thereof. Either of which is referred to herein as the “Committee.” 

4.2. ACTION AND INTERPRETATIONS BY THE COMMITTEE. For purposes of administering the Plan, the Committee may from time to time adopt rules,
regulations, guidelines and procedures for carrying out the provisions and purposes of the Plan and make such other determinations, not inconsistent with the Plan, as the Committee may deem appropriate. The Committee’s interpretation of the
Plan, any Awards granted under the Plan, any Award Certificate and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties. Each member of the Committee is entitled to, in good
faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Affiliate, the Company’s or an Affiliate’s independent certified public accountants, Company counsel or
any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan. 
 4.3.
AUTHORITY OF COMMITTEE. Except as provided in Section 4.1 and 4.2 hereof, the Committee has the exclusive power, authority and discretion to: 
  

	 	(a)	Grant Awards; 

  

	 	(b)	Designate Participants; 

  

	 	(c)	Determine the type or types of Awards to be granted to each Participant; 

  

 4 

	 	(d)	Determine the number of Awards to be granted and the number of Shares or dollar amount to which an Award will relate; 

 

	 	(e)	Determine the terms and conditions of any Award granted under the Plan; 

  

	 	(f)	Prescribe the form of each Award Certificate, which need not be identical for each Participant; 

 

	 	(g)	Decide all other matters that must be determined in connection with an Award; 

 

	 	(h)	Establish, adopt or revise any rules, regulations, guidelines or procedures as it may deem necessary or advisable to administer the Plan; 

 

	 	(i)	Make all other decisions and determinations that may be required under the Plan or as the Committee deems necessary or advisable to administer the Plan;

  

	 	(j)	Amend the Plan or any Award Certificate as provided herein; and 

  

	 	(k)	Adopt such modifications, procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of non-U.S. jurisdictions in which the Company
or any Affiliate may operate, in order to assure the viability of the benefits of Awards granted to Participants located in such other jurisdictions and to meet the objectives of the Plan. 

4.4. AWARD CERTIFICATES. Each Award shall be evidenced by an Award Certificate. Each Award Certificate shall include such provisions, not
inconsistent with the Plan, as may be specified by the Committee. 
 ARTICLE 5 

SHARES SUBJECT TO THE PLAN 

5.1. NUMBER OF SHARES. Subject to adjustment as provided in Sections 5.2 and Section 9.1, the aggregate number of Shares reserved and
available for issuance pursuant to Awards granted under the Plan shall be 200,000. 
 5.2. SHARE COUNTING. Shares covered by an Award
shall be subtracted from the Plan share reserve as of the date of grant, but shall be added back to the Plan share reserve in accordance with this Section 5.2. 
  

	 	(a)	To the extent that an Award is canceled, terminates, expires, is forfeited or lapses for any reason, any unissued or forfeited Shares subject to the Award will again be
available for issuance pursuant to Awards granted under the Plan. 

  

	 	(b)	Shares withheld from an Award or delivered by a Participant to satisfy minimum tax withholding requirements will again be available for issuance pursuant to Awards
granted under the Plan. 

  

	 	(c)	To the extent that the full number of Shares subject to an Award is not issued for any reason, including by reason of failure to achieve maximum performance goals, only
the number of Shares issued and delivered shall be considered for purposes of determining the number of Shares remaining available for issuance pursuant to Awards granted under the Plan. 

 

	 	(d)	Substitute Awards granted pursuant to Section 8.10 of the Plan shall not count against the Shares otherwise available for issuance under the Plan under
Section 5.1. 

 5.3. STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in whole or in part,
of authorized and unissued Stock, treasury Stock or Stock purchased on the open market. 
  

 5 

 ARTICLE 6 

ELIGIBILITY 
 6.1.
GENERAL. Awards may be granted only to Eligible Participants. 
 ARTICLE 7 

RESTRICTED STOCK 
 7.1.
GRANT OF RESTRICTED STOCK. The Committee is authorized to make Awards of Restricted Stock to Participants in such amounts and subject to such terms and conditions as may be selected by the Committee. An Award of Restricted Stock shall be
evidenced by an Award Certificate setting forth the terms, conditions, and restrictions applicable to the Award. 
 7.2. ISSUANCE AND
RESTRICTIONS. Restricted Stock shall be subject to such restrictions on transferability and other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock or the right to receive
dividends or distributions on the Restricted Stock). These restrictions may lapse separately or in combination at such times, under such circumstances, in such installments, upon the satisfaction of performance goals or otherwise, as the Committee
determines at the time of the grant of the Award or thereafter. Except as otherwise provided in an Award Certificate or any special Plan document governing an Award, the Participant shall have all of the rights of a stockholder with respect to the
Restricted Stock. Unless otherwise provided in the applicable Award Certificate, Awards of Restricted Stock will be entitled to full dividend and distribution rights and any dividends or distributions paid thereon will be paid or distributed to the
holder no later than the end of the calendar year in which the dividends or distributions are paid to stockholders or, if later, the 15th day of the third month following the date the dividends or distributions are paid to stockholders. 

7.3. FORFEITURE. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of
Continuous Status as a Participant during the applicable restriction period or upon failure to satisfy a performance goal during the applicable restriction period, Restricted Stock that is at that time subject to restrictions shall be forfeited.

 7.4. DELIVERY OF RESTRICTED STOCK. Shares of Restricted Stock shall be delivered to the Participant at the time of grant either by
book-entry registration or by delivering to the Participant, or a custodian or escrow agent (including, without limitation, the Company or one or more of its employees) designated by the Committee, a stock certificate or certificates registered in
the name of the Participant. If physical certificates representing shares of Restricted Stock are registered in the name of the Participant, such certificates must bear an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Restricted Stock. 
 ARTICLE 8 

PROVISIONS APPLICABLE TO AWARDS 

8.1. TERM OF AWARD. The term of each Award shall be for the period as determined by the Committee. 

8.2. FORM OF PAYMENT FOR AWARDS. Except as otherwise provided in this Plan, payment of Awards will be made in Stock. In addition, payment of
Awards may include such terms, conditions, restrictions and/or limitations, if any, as the Committee deems appropriate, including, in the case of Awards paid in the form of Stock, restrictions on transfer and forfeiture provisions. Further, payment
of Awards may be made in the form of a lump sum, or in installments, as determined by the Committee. 
 8.3. LIMITS ON TRANSFER. No right
or interest of a Participant in any unexercised or restricted Award may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company 

 

 6 

 
or an Affiliate, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company or an Affiliate. No unexercised or restricted Award shall
be assignable or transferable by a Participant other than by will or the laws of descent and distribution; provided, however, that the Committee may (but need not) permit other transfers (other than transfers for value) where the Committee concludes
that such transferability (a) does not result in accelerated taxation and (b) is otherwise appropriate and desirable, taking into account any factors deemed relevant, including without limitation, state or federal tax or securities laws
applicable to transferable Awards. 
 8.4. BENEFICIARIES. Notwithstanding Section 8.3, a Participant may, in the manner determined
by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person
claiming any rights under the Plan is subject to all terms and conditions of the Plan and any Award Certificate applicable to the Participant, except to the extent the Plan and Award Certificate otherwise provide, and to any additional restrictions
deemed necessary or appropriate by the Committee. If no beneficiary has been designated or survives the Participant, payment shall be made to the Participant’s estate. Subject to the foregoing, a beneficiary designation may be changed or
revoked by a Participant at any time provided the change or revocation is filed with the Committee. 
 8.5. STOCK TRADING RESTRICTIONS.
All Stock issuable under the Plan is subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with federal or state securities laws, rules and regulations and the rules of any national
securities exchange or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate or issue instructions to the transfer agent to reference restrictions applicable to the
Stock. 
 8.6. ACCELERATION UPON DEATH OR DISABILITY. Except as otherwise provided in the Award Certificate or any special Plan document
governing an Award, upon the termination of a person’s Continuous Status as a Participant by reason of death or Disability all time-based vesting restrictions on that Participant’s outstanding Awards shall lapse as of the date of
termination. 
 8.7. ACCELERATION UPON A CHANGE IN CONTROL. Except as otherwise provided in the Award Certificate or any special Plan
document governing an Award, upon the occurrence of a Change in Control, all time-based vesting restrictions on outstanding Awards shall lapse. 

8.8. ACCELERATION FOR ANY REASON. Regardless of whether an event has occurred as described in Section 8.6 or 8.7 above, the Committee may in
its sole discretion at any time determine that all or a part of the time-based vesting restrictions on all or a portion of the outstanding Awards shall lapse as of such date as the Committee may, in its sole discretion, declare. The Committee may
discriminate among Participants and among Awards granted to a Participant in exercising its discretion pursuant to this Section 8.8. Notwithstanding anything in the Plan, including this Section 8.8, the Committee may not accelerate the
payment of any Award if such acceleration would violate Section 409A(a)(3) of the Code. 
 8.9. FORFEITURE EVENTS. The Committee may
specify in an Award Certificate that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to
any otherwise applicable vesting or performance conditions of an Award. Such events shall include, but shall not be limited to violation of material Company or Affiliate policies, breach of noncompetition, confidentiality or other restrictive
covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business or reputation of the Company or any Affiliate. 

8.10. SUBSTITUTE AWARDS. The Committee may grant Awards under the Plan in substitution for stock and stock-based awards held by employees or
directors of another entity who become directors of the Company as a result of a merger or consolidation of the former entity with the Company or an Affiliate or the acquisition by the Company or an Affiliate of property or stock of the former
employing 
  

 7 

 
corporation. The Committee may direct that the substitute Awards be granted on such terms and conditions as the Committee considers appropriate in the circumstances. 

ARTICLE 9 

CHANGES IN CAPITAL STRUCTURE 

9.1. MANDATORY ADJUSTMENTS. In the event of a nonreciprocal transaction between the Company and its stockholders that causes the per-share value
of the Stock to change (including, without limitation, any stock dividend, stock split, spin-off, rights offering, or large nonrecurring cash dividend), the authorization limits under Section 5.1 shall be adjusted proportionately, and the
Committee shall make such adjustments to the Plan and Awards as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately resulting from such transaction. Action by the Committee may include:
(a) adjustment of the number and kind of shares that may be delivered under the Plan; (b) adjustment of the number and kind of shares subject to outstanding Awards; (c) adjustment of the measure to be used to determine the amount of
the benefit payable on an Award; and (d) any other adjustments that the Committee determines to be equitable. Without limiting the foregoing, in the event of a subdivision of the outstanding Stock (stock-split), a declaration of a dividend
payable in Shares, or a combination or consolidation of the outstanding Stock into a lesser number of Shares, the authorization limits under Section 5.1 shall automatically be adjusted proportionately, and the Shares then subject to each Award
shall automatically, without the necessity for any additional action by the Committee, be adjusted proportionately without any change in the aggregate purchase price therefor. 

9.2. DISCRETIONARY ADJUSTMENTS. Upon the occurrence or in anticipation of any corporate event or transaction involving the Company (including,
without limitation, any merger, reorganization, recapitalization, combination or exchange of shares, or any transaction described in Section 9.1), the Committee may, in its sole discretion, provide (a) that Awards will be settled in cash
rather than Stock, (b) that Awards will become immediately vested and will expire after a designated period of time, (c) that Awards will be assumed by another party to a transaction or otherwise be equitably converted or substituted in
connection with such transaction, (d) that outstanding Awards may be settled by payment in cash or cash equivalents equal to the excess of the Fair Market Value of the underlying Stock, as of a specified date associated with the transaction,
over the price of the Award, or (e) any combination of the foregoing. The Committee’s determination need not be uniform and may be different for different Participants whether or not such Participants are similarly situated. 

ARTICLE 10 

AMENDMENT, MODIFICATION AND TERMINATION 

10.1. AMENDMENT, MODIFICATION AND TERMINATION. The Board or the Committee may, at any time and from time to time, amend, modify or terminate the
Plan without stockholder approval; provided, however, that if an amendment to the Plan would, in the reasonable opinion of the Board or the Committee, either (a) materially increase the number of Shares available under the Plan, (b) expand
the types of awards under the Plan, (c) materially expand the class of participants eligible to participate in the Plan, (d) materially extend the term of the Plan, or (e) otherwise constitute a material change requiring stockholder
approval under applicable laws, policies or regulations or the applicable listing or other requirements of an Exchange, then such amendment shall be subject to stockholder approval; and provided, further, that the Board or Committee may condition
any other amendment or modification on the approval of stockholders of the Company for any reason, including by reason of such approval being necessary or deemed advisable (a) to comply with the listing or other requirements of an Exchange, or
(b) to satisfy any other tax, securities or other applicable laws, policies or regulations. 
  

 8 

 10.2. AWARDS PREVIOUSLY GRANTED. At any time and from time to time, the Committee may amend, modify
or terminate any outstanding Award without approval of the Participant; provided, however: 
  

	 	(a)	Subject to the terms of the applicable Award Certificate, such amendment, modification or termination shall not, without the Participant’s consent, reduce or
diminish the value of such Award determined as if the Award had been vested, cashed in or otherwise settled on the date of such amendment or termination; and 

 

	 	(b)	No termination, amendment, or modification of the Plan shall adversely affect any Award previously granted under the Plan, without the written consent of the
Participant affected thereby. An outstanding Award shall not be deemed to be “adversely affected” by a Plan amendment if such amendment would not reduce or diminish the value of such Award determined as if the Award had been vested, cashed
in or otherwise settled on the date of such amendment. 

 10.3. COMPLIANCE AMENDMENTS. Notwithstanding anything in the Plan
or in any Award Certificate to the contrary, the Board may amend the Plan or an Award Certificate, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or Award Certificate to any present
or future law relating to plans of this or similar nature (including, but not limited to, Section 409A of the Code), and to the administrative regulations and rulings promulgated thereunder. By accepting an Award under this Plan, a Participant
agrees to any amendment made pursuant to this Section 10.3 to any Award granted under the Plan without further consideration or action. 

ARTICLE 11 

GENERAL PROVISIONS 
 11.1.
RIGHTS OF PARTICIPANTS. 
  

	 	(a)	No Participant or any Eligible Participant shall have any claim to be granted any Award under the Plan. Neither the Company, its Affiliates nor the Committee is
obligated to treat Participants or Eligible Participants uniformly, and determinations made under the Plan may be made by the Committee selectively among Eligible Participants who receive, or are eligible to receive, Awards (whether or not such
Eligible Participants are similarly situated). 

  

	 	(b)	Nothing in the Plan, any Award Certificate or any other document or statement made with respect to the Plan, shall interfere with or limit in any way the right of the
Company to terminate any Participant’s service as a director, at any time, nor confer upon any Participant any right to continue as a director of the Company, whether for the duration of a Participant’s Award or otherwise.

  

	 	(c)	Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company or any Affiliate and, accordingly, subject to Article
10, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company or any of its Affiliates. 

 

	 	(d)	No Award gives a Participant any of the rights of a stockholder of the Company unless and until Shares are in fact issued to such person in connection with such Award.

 11.2. WITHHOLDING. The Company shall have the authority and the right to deduct or withhold, or require a Participant to
remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any lapse of restriction or other taxable event arising as a
result of the Plan. With respect to withholding required upon any taxable event under the Plan, the Committee may, at the time the Award is granted or thereafter, 

 

 9 

 
require or permit that any such withholding requirement be satisfied, in whole or in part, by withholding from the Award Shares having a Fair Market Value on the date of withholding equal to the
minimum amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes. All such elections shall be subject to any restrictions or limitations that the Committee, in
its sole discretion, deems appropriate. 
 11.3. SPECIAL PROVISIONS RELATED TO SECTION 409A OF THE CODE. 

 

	 	(a)	General. It is intended that the payments and benefits provided under the Plan and any Award shall either be exempt from the application of, or comply with, the
requirements of Section 409A of the Code. The Plan and all Award Certificates shall be construed in a manner that effects such intent. Nevertheless, the tax treatment of the benefits provided under the Plan or any Award is not warranted or
guaranteed. Neither the Company, its Affiliates nor their respective directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result
of the Plan or any Award. 

  

	 	(b)	Definitional Restrictions. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, to the extent that any amount or benefit that would
constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable, or a different form of payment (e.g., lump sum or installment) would be effected, under the Plan or
any Award Certificate by reason of the occurrence of a Change in Control, or the Participant’s Disability or separation from service, such amount or benefit will not be payable or distributable to the Participant, and/or such different form of
payment will not be effected, by reason of such circumstance unless the circumstances giving rise to such Change in Control, Disability or separation from service meet any description or definition of “change in control event”,
“disability” or “separation from service”, as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition). This
provision does not prohibit the vesting of any Award upon a Change in Control, Disability or separation from service, however defined. If this provision prevents the payment or distribution of any amount or benefit, such payment or
distribution shall be made on the next earliest payment or distribution date or event specified in the Award Certificate that is permissible under Section 409A. If this provision prevents the application of a different form of payment of any
amount or benefit, such payment shall be made in the same form as would have applied absent such designated event or circumstance. 

  

	 	(c)	Allocation among Possible Exemptions. If any one or more Awards granted under the Plan to a Participant could qualify for any separation pay exemption described
in Treas. Reg. Section 1.409A-1(b)(9), but such Awards in the aggregate exceed the dollar limit permitted for the separation pay exemptions, the Company (acting through the Committee or the Head of Human Resources) shall determine which Awards
or portions thereof will be subject to such exemptions. 

  

	 	(d)	Six-Month Delay in Certain Circumstances. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, if any amount or benefit that would
constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable under this Plan or any Award Certificate by reason of a Participant’s separation from service
during a period in which the Participant is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Committee under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii)
(conflicts of interest), or (j)(4)(vi) (payment of employment taxes): 

  

	 	(i)	 the amount of such non-exempt deferred compensation that would otherwise be payable during the six-month period immediately following the
Participant’s separation from 

  

 10 

	 	 
service will be accumulated through and paid or provided on the first day of the seventh month following the Participant’s separation from service (or, if the Participant dies during such
period, within 30 days after the Participant’s death) (in either case, the “Required Delay Period”); and 

  

	 	(ii)	the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period. 

For purposes of this Plan, the term “Specified Employee” has the meaning given such term in Code Section 409A and the final regulations
thereunder, provided, however, that, as permitted in such final regulations, the Company’s Specified Employees and its application of the six-month delay rule of Code Section 409A(a)(2)(B)(i) shall be determined in accordance with
rules adopted by the Board or any committee of the Board, which shall be applied consistently with respect to all nonqualified deferred compensation arrangements of the Company, including, if applicable, this Plan. 

11.4. UNFUNDED STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for incentive and deferred compensation. With respect to
any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Certificate shall give the Participant any rights that are greater than those of a general creditor of the Company or any Affiliate. This
Plan is not intended to be subject to the Employment Retirement Income Security Act of 1974, as amended. 
 11.5. RELATIONSHIP TO OTHER
BENEFITS. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or benefit plan of the Company or any Affiliate unless provided
otherwise in such other plan. 
 11.6. EXPENSES. The expenses of administering the Plan shall be borne by the Company and its Affiliates.

 11.7. TITLES AND HEADINGS. The titles and headings of the Sections in the Plan are for convenience of reference only, and in the event
of any conflict, the text of the Plan, rather than such titles or headings, shall control. 
 11.8. GENDER AND NUMBER. Except where
otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 

11.9. FRACTIONAL SHARES. No fractional Shares shall be issued and the Committee shall determine, in its discretion, whether cash shall be given in
lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down. 
 11.10. GOVERNMENT AND OTHER
REGULATIONS. 
  

	 	(a)	Notwithstanding any other provision of the Plan, no Participant who acquires Shares pursuant to the Plan may, during any period of time that such Participant is an
affiliate of the Company (within the meaning of the rules and regulations of the Securities and Exchange Commission under the 1933 Act), sell such Shares, unless such offer and sale is made (i) pursuant to an effective registration statement
under the 1933 Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption from the registration requirement of the 1933 Act, such as that set forth in Rule 144 promulgated under the 1933 Act.

  

	 	(b)	 Notwithstanding any other provision of the Plan, if at any time the Committee shall determine that the registration, listing or qualification of the
Shares covered by an Award upon any Exchange or under any foreign, federal, state or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the
granting of such Award or the purchase or receipt of Shares thereunder, no Shares may be purchased, delivered or received pursuant to such Award unless and until such 

 

 11 

	 	 
registration, listing, qualification, consent or approval shall have been effected or obtained free of any condition not acceptable to the Committee. 

Any Participant receiving or purchasing Shares pursuant to an Award shall make such representations and agreements and furnish such information as the
Committee may request to assure compliance with the foregoing or any other applicable legal requirements. The Company shall not be required to issue or deliver any certificate or certificates for Shares under the Plan prior to the Committee’s
determination that all related requirements have been fulfilled. The Company shall in no event be obligated to register any securities pursuant to the 1933 Act or applicable state or foreign law or to take any other action in order to cause the
issuance and delivery of such certificates to comply with any such law, regulation or requirement. 
 11.11. GOVERNING LAW. To the extent
not governed by federal law, the Plan and all Award Certificates shall be construed in accordance with and governed by the laws of the State of Maryland. 

11.12. ADDITIONAL PROVISIONS. Each Award Certificate may contain such other terms and conditions as the Committee may determine; provided that
such other terms and conditions are not inconsistent with the provisions of the Plan. 
 11.13. NO LIMITATIONS ON RIGHTS OF COMPANY. The
grant of any Award shall not in any way affect the right or power of the Company to make adjustments, reclassification or changes in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of
its business or assets. The Plan shall not restrict the authority of the Company, for proper corporate purposes, to draft or assume awards, other than under the Plan, to or with respect to any person. If the Committee so directs, the Company may
issue or transfer Shares to an Affiliate, for such lawful consideration as the Committee may specify, upon the condition or understanding that the Affiliate will transfer such Shares to a Participant in accordance with the terms of an Award granted
to such Participant and specified by the Committee pursuant to the provisions of the Plan. 
 11.14. INDEMNIFICATION. Each person who is
or shall have been a member of the Committee, or of the Board shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection
with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him
or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own
expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf, unless such loss, cost, liability, or expense is a result of his or her own willful misconduct or except as expressly provided by
statute. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Articles of Amendment and Restatement, as amended, or bylaws, as a matter of
law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
  

 12 

 The foregoing is hereby acknowledged as being the Phillips Edison — ARC Shopping Center REIT Inc. 2010
Independent Director Stock Plan as adopted by the Board on June 7, 2010 and by the stockholders on June 2, 2010. 
  

			
	 PHILLIPS EDISON — ARC SHOPPING CENTER

REIT INC.

		
	By:	 	  

	Its:	 	

  

 13

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