Document:

Exhibit 10.3

 

Execution
Copy

 

first
AMENDMENT AND JOINDER TO TERM LOAN AGREEMENT

 

This
FIRST AMENDMENT AND JOINDER TO TERM LOAN AGREEMENT (this “Amendment”) dated as of December 15, 2016,
by and among AGREE LIMITED PARTNERSHIP, a Delaware limited partnership (the “Borrower”), AGREE REALTY CORPORATION,
a Maryland corporation (the “Parent”), the other Guarantors party hereto, each of the Lenders party hereto and
CAPITAL ONE, NATIONAL ASSOCIATION, as Administrative Agent (the “Administrative Agent”).

 

WHEREAS, the Borrower,
the Lenders, the Administrative Agent and certain other parties have entered into that certain Term Loan Agreement dated as of
July 1, 2016 (as amended and as in effect immediately prior to the effectiveness of this Amendment, the “Loan Agreement”);
and

 

WHEREAS, the Borrower,
the Lenders and the Administrative Agent desire to amend certain provisions of the Loan Agreement on the terms and conditions contained
herein.

 

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

 

Section 1. Specific
Amendment to Loan Agreement. Upon the satisfaction of the conditions set forth in Section 2 hereof, the parties hereto agree
that the Loan Agreement is amended as follows:

 

(a)          The
Loan Agreement is amended by restating the following definitions included in 1.01 of the Loan Agreement:

 

“Anti-Terrorism
Laws” means any Laws relating to terrorism, Sanctions and embargoes, import/export licensing, money laundering or bribery,
and any regulation, order, or directive promulgated, issued or enforced pursuant to such Laws, all as amended, supplemented or
replaced from time to time.

 

“Applicable
Rate” means,

 

(a)          Prior
to the Investment Grade Rating Date, the following percentages per annum, based upon the Leverage Ratio as set forth in the most
recent Compliance Certificate received by the Administrative Agent pursuant to Section 7.02(a):

 

	Pricing Level	 	 	Leverage Ratio	 	Applicable Rate

for Eurodollar 

Rate Loans	 	 	Applicable Rate

for Base Rate

Loans	 
	1	 	 	< 40%	 	 	1.65	%	 	 	0.65	%
	 2	 	 	≥ 40% but < 45%	 	 	1.75	%	 	 	0.75	%
	3	 	 	≥ 45% but < 50%	 	 	1.90	%	 	 	0.90	%
	4	 	 	≥ 50% but < 55%	 	 	2.05	%	 	 	1.05	%
	5	 	 	≥ 55%	 	 	2.25	%	 	 	1.25	%

 

     

     

    

 

Any increase or decrease
in the Applicable Rate resulting from a change in the Leverage Ratio shall become effective as of the first Business Day immediately
following the date a Compliance Certificate is delivered pursuant to Section 7.02(a); provided, however, that
if a Compliance Certificate is not delivered when due in accordance with such Section, then Pricing Level 5, shall apply as
of the fifth Business Day after the date on which such Compliance Certificate was required to have been delivered and shall remain
in effect until the date on which such Compliance Certificate is delivered. The Applicable Rate in effect as of the Closing Date
shall be determined based upon Pricing Level 1.

 

(b)          On
and at all times after the Investment Grade Rating Date, the applicable rate per annum set forth in the tables below corresponding
to the Pricing Level in the first column of the tables in which the Parent’s or Borrower’s Credit Rating falls.

 

	Pricing Level	 	 	Credit Rating	 	Applicable Rate

for Term

Eurodollar Rate

Loans	 	 	Applicable Rate

for Term Base

Rate Loans	 
	1	 	 	≥ A-/A3	 	 	1.50	%	 	 	0.50	%
	2	 	 	BBB+/Baa1	 	 	1.55	%	 	 	0.55	%
	3	 	 	BBB/Baa2	 	 	1.65	%	 	 	0.65	%
	4	 	 	BBB-/Baa3	 	 	1.90	%	 	 	0.90	%
	5	 	 	<BBB-/Baa3/Unrated	 	 	2.45	%	 	 	1.45	%

 

During any
period that the Parent or Borrower has received Credit Ratings from each of S&P, Fitch and Moody’s that are not equivalent
and the difference between the highest and lowest of such Credit Ratings is (i) one Pricing Level, then the Applicable Rate shall
be determined based on the highest of such Credit Ratings or (ii) two or more Pricing Levels, then the Applicable Rate shall be
determined based on the average of the two highest Credit Ratings (unless the average is not a recognized Pricing Level, in which
case the Applicable Rate shall be determined based on the second highest Credit Rating). During any period that the Parent or Borrower
has received only two Credit Ratings from any of S&P, Fitch and Moody’s that are not equivalent and the difference between
such Credit Ratings is (x) one Pricing Level, then the Applicable Rate shall be determined based on the higher of such Credit Ratings
or (y) two or more Pricing Levels, then the Applicable Rate shall be determined based on the Pricing Level that would be applicable
if the rating was one higher than the lower of the two applicable Credit Ratings received. During any period that the Parent or
Borrower has only received a Credit Rating from Moody’s or S&P, then the Applicable Rate shall be based upon such Credit
Rating. During any period after the Investment Grade Rating Date that the Parent or Borrower has (A) not received a Credit Rating
from any Rating Agency or (B) only received a Credit Rating from a Rating Agency that is neither S&P nor Moody’s, then
the Applicable Rate shall be determined based on Pricing Level 5 in the table above.

 

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“Capitalization
Rate” means 7.00% for all properties.

 

“Change
of Control” means an event or series of events by which:

 

(a)          any
“person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, but excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity
as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined
in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately
or only after the passage of time (such right, an “option right”)), directly or indirectly, of 35% or more of the equity
securities of the Borrower entitled to vote for members of the board of directors or equivalent governing body of the Borrower
on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant
to any option right); or

 

(b)          during
any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of
the Parent cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day
of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred
to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent
governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals
referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board
or equivalent governing body; or

 

(c)          the
Parent fails at any time to own, directly or indirectly, at least 75% of the Equity Interests of the Borrower, free and clear of
all Liens.

 

“Credit
Rating” means the published or private rating assigned by a Rating Agency to the senior unsecured long term Indebtedness
of a Person.

 

“Eligible
Ground Lease” means a ground lease containing terms and conditions customarily required by mortgagees making a loan secured
by the interest of the holder of the leasehold estate demised pursuant to a ground lease, including the following: (a) a remaining
term (exclusive of any unexercised extension options) of 30 years or more from the First Amendment Date; (b) the right of the lessee
to mortgage and encumber its interest in the leased property, and to amend the terms of any such mortgage or encumbrance, in each
case, without the consent of the lessor; (c) the obligation of the lessor to give the holder of any mortgage Lien on such leased
property written notice of any defaults on the part of the lessee and agreement of such lessor that such lease will not be terminated
until such holder has had a reasonable opportunity to cure or complete foreclosures, and fails to do so; (d) acceptable transferability
of the lessee’s interest under such lease, including ability to sublease; (e) acceptable limitations on the use of the leased
property; and (f) clearly determinable rental payment terms which in no event contain profit participation rights.

 

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“Immaterial
Subsidiary” means any Subsidiary whose assets constitute less than one percent (1%) of Total Asset Value; provided that
if at any time the aggregate Total Asset Value of the “Immaterial Subsidiaries” exceeds ten percent (10%) of all Total
Asset Value, then the Borrower shall designate certain “Immaterial Subsidiaries” as Guarantors such that the aggregate
Total Asset Value of the “Immaterial Subsidiaries” which are not Guarantors does not exceed ten percent (10%) of all
Total Asset Value.

 

“Indebtedness”
means, for the Consolidated Group, without duplication, all of the following, whether or not included as indebtedness or liabilities
in accordance with GAAP:

 

(a)          all
obligations for borrowed money and all obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

 

(b)          all
direct or contingent obligations under letters of credit (including standby and commercial), bankers’ acceptances and similar
instruments (including bank guaranties, surety bonds, comfort letters, keep-well agreements and capital maintenance agreements)
to the extent such instruments or agreements support financial, rather than performance, obligations;

 

(c)          net
obligations under any Swap Contract;

 

(d)          all
obligations to pay the deferred purchase price of property or services other than accounts payable incurred in the ordinary course
and not past due;

 

(e)          capital
leases, Synthetic Lease Obligations and Synthetic Debt;

 

(f)           all
obligations to purchase, redeem, retire, defease or otherwise make any payment in respect of Mandatorily Redeemable Stock issued
by such Person or any other Person, valued at the greater of its voluntary or involuntary liquidation preference, plus accrued
and unpaid dividends;

 

(g)          indebtedness
(excluding prepaid interest thereon) secured by a Lien on property (including indebtedness arising under conditional sales or other
title retention agreements) whether or not such indebtedness has been assumed by the grantor of the Lien or is limited in recourse;
and

 

(h)          all
Guarantees in respect of any of the foregoing (except for Guarantees of customary exceptions for fraud, misapplication of funds,
environmental indemnities, voluntary bankruptcy, collusive involuntary bankruptcy and other similar exceptions to non-recourse
liability).

 

For all purposes hereof, Indebtedness
shall include the Consolidated Group’s pro rata share of the foregoing items and components attributable to Indebtedness
of Unconsolidated Affiliates. The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap
Termination Value thereof as of such date. The amount of any capital lease or Synthetic Lease Obligation as of any date shall be
deemed to be the amount of Attributable Indebtedness in respect thereof as of such date.

 

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“Investment Grade Rating”
means a Credit Rating of BBB- (or equivalent) or higher from S&P and Baa3 (or equivalent) or higher from Moody’s.

 

“Net
Income” means the net income (or loss) of the Consolidated Group for the subject period; provided, however that Net Income
shall exclude (a) extraordinary gains and extraordinary losses for such period, (b) the net income of any subsidiary of the Parent
during such period to the extent that the declaration or payment of dividends or similar distributions by such subsidiary of such
income is not permitted by operation of the terms of its organization documents or any agreement, instrument or law applicable
to such subsidiary during such period, except that the Parent’s equity in any net loss of any such subsidiary for such period
shall be included in determining Net Income, (c) any income (or loss) for such period of any Person if such Person is not a subsidiary
of the Parent, except that the Parent’s equity in the net income of any such Person for such period shall be included in
Net Income up to the aggregate amount of cash actually distributed by such Person during such period to the Parent or a subsidiary
thereof as a dividend or other distribution (and in the case of a dividend or other distribution to a subsidiary of the Parent,
such subsidiary is not precluded from further distributing such amount to the Parent as described in clause (b) of this proviso),
and (d) rental or other income from (i) any lease in respect of real property to tenants in any proceedings under any Debtor Relief
Laws during the subject period that was not paid on the date rent was due to be paid by such tenant taking into account any applicable
grace or cure period provided for by the terms of such lease, (ii) any lease in respect of real property to tenants in any proceedings
under any Debtor Relief Laws that did not physically occupy such real property during the entirety of such period, and (iii) any
leases in respect of real property to tenants, which leases have been rejected in any proceeding under Debtor Relief Laws during
the subject period.

 

“Net
Operating Income” means for any real property and for any period, an amount equal to the following (without duplication):
(a) the aggregate gross revenues from the operations of such real property during such period (exclusive of any rental or other
income from (i) any lease in respect of such real property to tenants in any proceedings under any Debtor Relief Laws during the
subject period that was not paid on the date rent was due to be paid by such tenant taking into account any applicable grace or
cure period provided for by the terms of such lease, (ii) any lease in respect of such real property to tenants in any proceedings
under any Debtor Relief Laws that did not physically occupy such real property during the entirety of such period, and (iii) any
leases in respect of such real property to tenants, which leases have been rejected in any proceeding under Debtor Relief Laws
during the subject period), plus (b) the aggregate gross revenues from any ground leases, minus (c) the sum of (i) all expenses
and other proper charges incurred in connection with the operation of such real property during such period (including accruals
for real estate taxes and insurance and an amount equal to the greater of (x) 1% of rents and (y) actual management fees paid in
cash, but excluding capital expenditures, debt service charges, income taxes, depreciation, amortization and other non-cash expenses),
which expenses and accruals shall be calculated in accordance with GAAP minus (d) the Annual Capital Expenditure Adjustment.

 

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“Permitted
Liens” means, with respect to any asset or property of a Person:

 

(a)         Liens
for taxes, assessments, charges and levies imposed by any Governmental Authority (excluding any Lien imposed under ERISA or pursuant
to any Environmental Laws), in each case, not yet delinquent or which are being contested in good faith and by appropriate proceedings
diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person in accordance
with GAAP;

 

(b)         carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business which are not overdue for a period of more than 30 days or which are being contested in good faith and by appropriate
proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person;

 

(c)         pledges
or deposits in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other
social security legislation, other than any Lien imposed by ERISA;

 

(d)         deposits
to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business;

 

(e)         easements,
rights-of-way, restrictions, leases, occupancy agreements and other similar encumbrances arising in the ordinary course of business
affecting real property which, in the aggregate, are not substantial in amount, and which do not in any case materially detract
from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable
Person; and

 

(f)         Liens
securing judgments for the payment of money not constituting an Event of Default under Section 9.01(j).

 

“Sanctioned
Country” means a country or territory subject to Sanctions, currently Crimea, Cuba, Iran, North Korea, Sudan and Syria.

 

“Shareholder
Covered Entity” means any Person that is a Covered Entity solely because such Person owns Equity Interests in the Parent.

 

“Tangible
Net Worth” means for the Consolidated Group as of any date of determination, (a) total equity on a consolidated basis
determined in accordance with GAAP, minus (b) all intangible assets other than lease intangibles on a consolidated basis
determined in accordance with GAAP plus (c) all depreciation determined in accordance with GAAP.

 

“Unencumbered
Pool NOI” means, at any time with respect to an Unencumbered Pool Property, the Net Operating Income from such Property
for the fiscal quarter most recently ended multiplied by four. For the avoidance of doubt, the Net Operating Income of a Property
that has been owned or leased by a Person for less than one fiscal quarter will be included in calculating Unencumbered Pool NOI
as if such Property was owned by such Person for the then most recent fiscal quarter. For the avoidance of doubt, the Net Operating
Income of a Property that was sold by a Person within the fiscal quarter will be excluded in calculating Unencumbered Pool NOI.
For the purposes of calculating the aggregate Unencumbered Pool NOI of all Unencumbered Pool Properties:

 

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(a)          no
more than twenty-five (25%) of the aggregate Unencumbered Pool NOI may be in respect of Unencumbered Pool Properties that are located
in any one Metropolitan Statistical Area, with any excess over such limit being deducted from the aggregate Unencumbered Pool NOI;

 

(b)          no
more than twenty (20%) of the aggregate Unencumbered Pool NOI may be from a single tenant, with any excess over such limits being
deducted from the aggregate Unencumbered Pool NOI;

 

(c)          if
the aggregate occupancy rate (determined with respect to tenants in actual occupancy and paying rent) of all Properties included
as Unencumbered Pool Properties would be less than eighty percent (80%), Borrower shall exclude from the determination of the Unencumbered
Pool NOI one or more of such Unencumbered Pool Properties as may be necessary for such aggregate occupancy rate to equal or exceed
eighty percent (80%); and

 

(d)          to
the extent that more than fifteen (15%) of the aggregate Unencumbered Pool NOI would be attributable to Properties leased under
Eligible Ground Leases, such excess shall be excluded from the aggregate Unencumbered Pool NOI.

 

“Unsecured
Interest Expense” means, as of any given date, Interest Expense of any of the Consolidated Group with respect to Indebtedness
that is not Secured Indebtedness.

 

(b)           The
Loan Agreement is adding the following definitions to Section 1.01 of the Loan Agreement in the appropriate alphabetical order:

 

“First
Amendment Date” shall mean the effective date of that certain First Amendment to Term Loan Agreement by and among the
Borrower, the lenders party thereto and the Administrative Agent.

 

“Investment
Grade Rating Date” means the date specified by the Borrower in a written notice to the Administrative Agent after the
Parent or the Borrower obtains an Investment Grade Rating from either Moody’s or S&P.

 

“Mandatorily
Redeemable Stock” means, with respect to any Person, any Equity Interest of such Person which by the terms of such Equity
Interest (or by the terms of any security into which it is convertible or for which it is exchangeable or exercisable), upon the
happening of any event or otherwise, (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise
(other than an Equity Interest to the extent redeemable in exchange for common stock or other equivalent common Equity Interests
at the option of the issuer of such Equity Interest), (b) is convertible into or exchangeable or exercisable for Indebtedness or
Mandatorily Redeemable Stock, or (c) is redeemable at the option of the holder thereof, in whole or part (other than an Equity
Interest which is redeemable solely in exchange for common stock or other equivalent common Equity Interests), in each case on
or prior to the date on which all Loans are scheduled to be due and payable in full.

 

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“Material
Acquisition” means any acquisition by the Borrower or any Subsidiary in which the GAAP book value of the assets acquired
exceeds 10.0% of the consolidated total assets of the Borrower and its Subsidiaries determined under GAAP as of the last day of
the most recently ending fiscal quarter of the Borrower for which financial statements are publicly available.

 

“OFAC”
means the U.S. Department of Treasury’s Office of Foreign Assets Control, and any successor thereto.

 

“Sanctions”
means sanctions administered or enforced from time to time by the United States government, including those administered by OFAC,
the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury or other relevant
sanctions authority.

 

(c)           The
Loan Agreement is amended by restating Section 2.11(b) in its entirety to read as follows:

 

(b)          If,
as a result of any restatement of or other adjustment to the financial statements of the Borrower, the inaccurate reporting of
the Credit Rating or for any other reason, the Borrower or the Lenders determine that (i) the Pricing Level as determined by the
Leverage Ratio calculated by the Borrower or the Credit Rating reported as of any applicable date was inaccurate and (ii) a proper
determination of the Pricing Level would have resulted in higher pricing for such period, the Borrower shall immediately and retroactively
be obligated to pay to the Administrative Agent for the account of the Lenders, promptly on demand by the Administrative Agent
(or, after the occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy
Code of the United States, automatically and without further action by the Administrative Agent or any Lender), an amount equal
to the excess of the amount of interest and fees that should have been paid for such period over the amount of interest and fees
actually paid for such period. This paragraph shall not limit the rights of the Administrative Agent or any Lender, as the case
may be, under Section 2.09(b) or under Article IX. The Borrower’s obligations under this paragraph shall survive the termination
of the Term Loan Commitment and the repayment of all Obligations hereunder.

 

(d)          The
Loan Agreement is amended by restating Section 3.04(b) in its entirety to read as follows:

 

(b)          Capital
Requirements. If any Lender determines that any Change in Law affecting such Lender or any Lending Office of such Lender or
such Lender’s holding company, if any, regarding capital or liquidity ratios or requirements has or would have the effect
of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any,
as a consequence of this Agreement, or the Term Loans made by such Lender, to a level below that which such Lender or such Lender’s
holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the
policies of such Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay
to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any
such reduction suffered.

 

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(e)          The
Loan Agreement is amended by restating the introductory paragraph in Article VI in its entirety to read as follows:

 

Each of the Parent
and the Borrower represents and warrants to the Administrative Agent and the Lenders that:

 

(f)           The
Loan Agreement is amended by restating Section 7.02(e) in its entirety to read as follows:

 

(e)          not
later than seven (7) Business Days after the Parent or the Borrower receives notice of the same from any Rating Agency or otherwise
learns of the same, notice of the issuance of any change or withdrawal in the Credit Rating by any Rating Agency in respect of
the Parent or the Borrower, together with the details thereof, and of any announcement by such Rating Agency that any such Credit
Rating is “under review” or that any such Credit Rating has been placed on a watch list or that any similar action
has been taking by such Rating Agency;

 

(g)          The
Loan Agreement is amended by adding the following sentence immediately prior to the final sentence in Section 7.14(b) as the penultimate
sentence in such Section:

 

“Unless the Administrative
Agent notifies the Borrower otherwise, such Guarantor shall be deemed to have been released from its Guaranty upon the later to
occur of ten (10) Business Days following the Administrative Agent’s receipt of such notice and the date set forth in such
notice as the requested date of release.”

 

(h)          The
Loan Agreement is amended by restating Section 8.02 in its entirety to read as follows:

 

8.02       Investments.
Make any Investments, except:

 

(a)         Investments
in the form of cash or cash equivalents;

 

(b)         Investments
existing on the date hereof and set forth on Schedule 6.13;

 

(c)         advances
to officers, directors and employees of the Borrower and Subsidiaries for travel, entertainment, relocation and analogous ordinary
business purposes;

 

(d)         Investments
of the Guarantor and the Borrower in the form of Equity Interests and investments of the Borrower in any wholly-owned Subsidiary,
and Investments of Borrower directly in, or of any wholly-owned Subsidiary in another wholly-owned Subsidiary which owns, real
property assets which are located within the United States, provided in each case the Investments held by Borrower or Subsidiary
are in accordance with the provisions of this Section 8.02 other than this Section 8.02(d);

 

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(e)          Investments
consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit
in the ordinary course of business;

 

(f)          Investments
in unimproved land holdings not to at any time exceed ten percent (10%) of Total Asset Value;

 

(g)          Investments
in mortgages, mezzanine loans and notes receivable not to at any time exceed ten percent (10%) of Total Asset Value;

 

(h)          Investments
in Construction in Progress not to at any time exceed twenty percent (20%) of Total Asset Value; and

 

(i)          Investments
in non-wholly owned Subsidiaries and Unconsolidated Affiliates not to at any time exceed twenty percent (20%) of Total Asset Value.

 

Determinations of whether an
Investment in an asset is permitted will be made after giving effect to the subject Investment. Investments pursuant to clauses
(f) through (i) above in the aggregate will not exceed twenty-five percent (25%) of Total Asset Value.

 

(i)          The
Loan Agreement is amended by restating Section 8.06 in its entirety to read as follows:

 

8.06         Change
in Nature of Business. Engage in any material line of business other than a business primarily focused on the ownership and
management of single-tenant net lease retail properties or other businesses involving net leased properties as described in the
Parent’s then current SEC public filings and, in each case, businesses substantially related or incidental thereto.

 

(j)          The
Loan Agreement is amended by deleting the reference to “(a)” in the second line in Section 8.08.

 

(k)          The
Loan Agreement is amended by restating Section 8.10 in its entirety to read as follows:

 

8.10         Minimum
Number of Unencumbered Pool Properties. Without the prior written consent of Required Lenders allow there to be less than one
hundred (100) Unencumbered Pool Properties.

 

(l)          The
Loan Agreement is amended by restating Section 8.11 in its entirety to read as follows:

 

8.11         Industry
Concentration. Not permit more than twenty-five percent (25%) of annualized base rents of the Loan Parties and their Subsidiaries
for any twelve (12) month period to be attributable to any one industry type.

 

(m)          The
Loan Agreement is amended by restating Section 8.14 in its entirety to read as follows:

 

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8.14        Financial
Covenants. Not, directly or indirectly, permit:

 

(a)          Maximum
Leverage Ratio. Total Indebtedness to exceed sixty percent (60%) of Total Asset Value at any time; provided, however, that
if Total Indebtedness exceeds sixty percent (60%) of Total Asset Value but does not exceed sixty-five percent (65%), then the Borrower
shall be deemed to be in compliance with this subsection (a) so long as (w) the Borrower or any Subsidiary completed a Material
Acquisition during the quarter in which such percentage first exceeded sixty percent (60%), (x) such percentage does not exceed
sixty percent (60%) after the fiscal quarter immediately following the fiscal quarter in which such Material Acquisition was completed,
(y) the Borrower shall not maintain compliance with this subsection (a) in reliance on this proviso more than one time during the
term of this Agreement and (z) such percentage is not greater than sixty-five percent (65%) at any time.

 

(b)          Maximum
Secured Leverage Ratio. Total Secured Indebtedness to exceed forty percent (40%) of Total Asset Value at any time.

 

(c)          Minimum
Tangible Net Worth. Tangible Net Worth at any time to be less than the sum of (i) $ $480,986,250 plus (ii) an amount equal
to seventy-five percent (75%) of net equity proceeds received by the Parent after September 30, 2016 (other than proceeds received
in connection with any dividend reinvestment program).

 

(d)          Minimum
Fixed Charge Coverage Ratio. The ratio of Adjusted EBITDA to Fixed Charges to be less than 1.50 to 1.0 at any time.

 

(e)          Maximum
Secured Recourse Indebtedness. Total Indebtedness that is Secured Recourse Indebtedness to be in excess of fifteen percent
(15%) of Total Asset Value at any time.

 

(f)          Maximum
Unencumbered Leverage Ratio. Total Indebtedness that is Unsecured Indebtedness to exceed sixty percent (60%) of Unencumbered
Asset Value at any time; provided, however, that if Total Indebtedness that is Unsecured Indebtedness exceeds sixty percent (60%)
of Unencumbered Asset Value but does not exceed sixty-five percent (65%), then the Borrower shall be deemed to be in compliance
with this subsection (f) so long as (w) the Borrower or any Subsidiary completed a Material Acquisition during the quarter in which
such percentage first exceeded sixty percent (60%), (x) such percentage does not exceed sixty percent (60%) after the fiscal quarter
immediately following the fiscal quarter in which such Material Acquisition was completed, (y) the Borrower shall not maintain
compliance with this subsection (f) in reliance on this proviso more than one time during the term of this Agreement and (z) such
percentage is not greater than sixty-five percent (65%) at any time.

 

(g)          Minimum
Unsecured Interest Expense Ratio. The ratio of Unencumbered Pool NOI to Unsecured Interest Expense to be less than 1.75 to
1.00 at any time.

 

(n)          The
Loan Agreement is amended by restating clauses (g), (h), (i) and (j) in Section 9.01 in their entirety to read as follows:

 

    - 11 -

     

    

 

(g)          Cross-Default.
(i) Any Loan Party or any Subsidiary (A) fails to make any payment when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) after taking into account any applicable grace or cure periods in respect of any (a) Recourse
Indebtedness (other than Indebtedness hereunder and Indebtedness under Swap Contracts) having an aggregate principal amount (including
undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement)
of more than $25,000,000, or (b) Non-Recourse Indebtedness having an aggregate principal amount (including undrawn committed or
available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than
an amount equal to 5% of Total Asset Value as of any date, or (B) fails to observe or perform any other agreement or condition
relating to any such Indebtedness or Guarantee described in subsections (a) or (b), above, or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or
to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent
on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness
to be demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to
repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become payable
or cash collateral in respect thereof to be demanded; or (ii) there occurs under any Swap Contract an Early Termination Date (as
defined in such Swap Contract) resulting from (A) any event of default under such Swap Contract as to which the Borrower or any
Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so defined) under such Swap
Contract as to which the Borrower or any Subsidiary is an Affected Party (as so defined) and, in either event, the Swap Termination
Value owed by such Loan Party or such Subsidiary as a result thereof is greater than $5,000,000; or

 

(h)          Insolvency
Proceedings, Etc. Any Loan Party or any Material Subsidiary institutes or consents to the institution of any proceeding under
any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part
of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without
the application or consent of such Person and the appointment continues undischarged or unstayed for 90 calendar days; or any proceeding
under any Debtor Relief Law relating to any such Person or to all or any material part of its property is instituted without the
consent of such Person and continues undismissed or unstayed for 90 calendar days, or an order for relief is entered in any such
proceeding; or

 

(i)          Inability
to Pay Debts; Attachment. (i) Any Loan Party or any Material Subsidiary (other than a Material Subsidiary whose only liability
is Non-Recourse Indebtedness in an aggregate principal amount of less than 5% of Total Asset Value) becomes unable or admits in
writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution
or similar process is issued or levied against all or any material part of the property of any such Person and is not released,
vacated or fully bonded within 30 days after its issue or levy; or

 

    - 12 -

     

    

 

(j)          Judgments.
There is entered against any Loan Party or any Subsidiary (i) one or more final judgments or orders for the payment of money in
an aggregate amount (as to all such judgments or orders) exceeding $25,000,000 (to the extent not covered by independent third-party
insurance as to which the insurer does not dispute coverage), or (ii) any one or more non-monetary final judgments that have, or
could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement
proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 30 consecutive days during which
a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or

 

(o)          The
Loan Agreement is amended by restating the “FOURTH” clause in Section 9.03 in its entirety to read as follows:

 

Fourth,
to payment of that portion of the Obligations constituting unpaid principal of the Term Loans ratably among the Lenders in proportion
to the respective amounts described in this clause Fourth held by them; and

 

(p)          The
Loan Agreement is amended by restating Section 11.08 in its entirety to read as follows:

 

11.08         Right
of Setoff. If an Event of Default shall have occurred and be continuing, each Lender and each of its respective Affiliates
is hereby authorized at any time and from time to time but in the case of a Lender or an Affiliate of a Lender, subject to receipt
of the prior written consent of the Administrative Agent exercised in its sole discretion, to the fullest extent permitted by applicable
law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency)
at any time held and other obligations (in whatever currency) at any time owing by such Lender or any such Affiliate to or for
the credit or the account of the Borrower or any other Loan Party against any and all of the obligations of the Borrower or such
Loan Party now or hereafter existing under this Agreement or any other Loan Document to such Lender, irrespective of whether or
not such Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations of the
Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office of such Lender different from the
branch or office holding such deposit or obligated on such indebtedness; provided, that in the event that any Defaulting Lender
shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent
for further application in accordance with the provisions of Section 2.18 and, pending such payment, shall be segregated by such
Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and
(y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations
owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender and their respective Affiliates
under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender or their respective
Affiliates may have. Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and
application; provided that the failure to give such notice shall not affect the validity of such setoff and application.

 

    - 13 -

     

    

 

(q)          The
Loan Agreement is amended by amending and restating Exhibit C, Form of Compliance Certificate, in its entirety and replacing it
with Exhibit C attached hereto.

 

(r)          The
Loan Agreement is amended by amending and restating Exhibit E, Form of Unencumbered Pool Certificate, in its entirety and replacing
it with Exhibit E attached hereto.

 

Section 2. Conditions
Precedent. The effectiveness of this Amendment is subject to satisfaction of the following conditions:

 

(a)          receipt
by the Administrative Agent of a counterpart of this Amendment duly executed by the Borrower, the Guarantors, the Administrative
Agent and each of the Lenders;

 

(b)          that
certain Amended and Restated Revolving Credit and Term Loan Agreement by and among Agree Limited Partnership, Agree Realty Corporation,
the lenders party thereto and PNC Bank, National Association, as administrative agent (the “A&R Credit Agreement”),
shall have closed, all signatures thereto shall have been released and such A&R Credit Agreement shall be effective;

 

(c)          receipt
by the Administrative Agent of any deliveries required under Section 7.14 of the Term Loan Agreement with respect to the addition
or removal of any Guarantors party to the Guaranty to be effective upon the effectiveness of this Amendment; and

 

(d)          receipt
by the Administrative Agent of satisfactory evidence that all fees, expenses and reimbursement amounts due and payable to the Administrative
Agent and the Arrangers, including without limitation, the reasonable fees and expenses of counsel to the Administrative Agent,
have been paid; and

 

(c)          receipt
by the Administrative Agent of such other documents, agreements and instruments as the Administrative Agent, or any Lender through
the Administrative Agent, may reasonably request.

 

Section  3. Representations.
The Borrower represents and warrants to the Administrative Agent and the Lenders that:

 

(a)          Authorization;
No Contravention. The execution and delivery of the Amendment by each Loan Party and the performance by each Loan Party of
this Amendment and the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate or other
organizational action, and do not and will not (a) contravene the terms of each such Person’s Organization Documents; (b)
conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made
under (i) any Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person
or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to
which such Person or its property is subject; or (c) violate any Law.

 

(b)          Governmental
Authorization; Other Consents. No approval, consent, exemption, authorization, or other action by, or notice to, or filing
with, any Governmental Authority or any other Person is necessary or required in connection with the execution and delivery of
this Amendment or performance by, or enforcement against, any Loan Party of this Amendment or the Loan Agreement, as amended by
this Amendment.

 

    - 14 -

     

    

 

(c)          Binding
Effect. This Amendment has been duly executed and delivered by each Loan Party that is a party hereto. Each of this Amendment
and the Loan Agreement, as amended by this Amendment, constitutes a legal, valid and binding obligation of each Loan Party a party
thereto, enforceable against such Loan Party in accordance with its terms.

 

(d)          No
Default. No Default has occurred and is continuing as of the date hereof nor will exist immediately after giving effect to
this Amendment.

 

Section  4. Reaffirmation
of Representations. The Borrower and the Parent hereby repeats and reaffirms all representations and warranties made or deemed
made by the Borrower or the Parent, as applicable, to the Administrative Agent and the Lenders in the Loan Agreement as amended
by this Amendment and the other Loan Documents on and as of the date hereof with the same force and effect as if such representations
and warranties were set forth in this Amendment in full and such representations and warranties are true and correct in all material
respects on and as of the date hereof immediately after giving effect to this Amendment except to the extent that such representations
and warranties specifically refer to an earlier date, in which case they were true and correct as of such earlier date.

 

Section  5. Joinder.
By this Amendment, as of the First Amendment Date, the Parent hereby becomes (a) a direct party to the Loan Agreement and (b) continues
to be a “Guarantor” under the Loan Agreement and a party to the Guaranty. The Parent agrees that it is and shall be
bound by, and hereby assumes, all representations, warranties, covenants, terms, conditions, duties and waivers applicable to the
Parent under the Loan Agreement from and after the First Amendment Date.

 

Section  6. Reaffirmation
by Guarantors. Each of the Guarantors (including the Parent) hereby reaffirms its continuing obligations to the Administrative
Agent and the Lenders under the Guaranty and agrees that the transactions contemplated by this Amendment shall not in any way affect
the validity and enforceability of the Guaranty or reduce, impair or discharge the obligations of such Guarantor thereunder.

 

Section  7. Certain
References. Upon the effectiveness of the amendments set forth herein, each reference to the Loan Agreement in any of the Loan
Documents shall be deemed to be a reference to the Loan Agreement, as amended by this Amendment. This Amendment is a Loan Document.

 

Section  8. Costs
and Expenses. The Borrower shall reimburse the Administrative Agent for all reasonable out-of-pocket expenses (including attorneys’
fees) incurred by the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment and
the other agreements and documents executed and delivered in connection herewith.

 

Section  9. Benefits.
This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

 

Section  10. GOVERNING
LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

 

Section  11. Effect;
Ratification. Except as expressly herein amended, the terms and conditions of the Loan Agreement and the other Loan Documents
remain in full force and effect. The amendments contained herein shall be deemed to have prospective application from the effectiveness
thereof only. The Loan Agreement is hereby ratified and confirmed in all respects. Nothing in this Amendment shall limit, impair
or constitute a waiver of the rights, powers or remedies available to the Administrative Agent or the Lenders under the Loan Agreement
or any other Loan Document.

 

    - 15 -

     

    

 

Section  12. Counterparts.
This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding
upon all parties, their successors and assigns.

 

Section  13. Definitions.
All capitalized terms not otherwise defined herein are used herein with the respective definitions given them in the Loan Agreement.

 

Section  14. Termination.
This Amendment shall terminate and be of no further force or effect without giving effect to the amendments described herein upon
the earlier to occur of (a) 5:00 p.m. (Eastern Time, Standard or Daylight, as applicable) on January 31, 2017 if the conditions
set forth in Section 2 hereof are not satisfied on or before such date and (b) each of the parties hereto shall agree in writing
that this Amendment has terminated.

 

[Signatures on Next Page]

 

    - 16 -

     

    

 

 

IN WITNESS WHEREOF,
the parties hereto have caused this First Amendment and Joinder to Term Loan Agreement to be executed as of the date first above
written.

 

	 	AGREE LIMITED PARTNERSHIP,
	 	a Delaware limited partnership
	 	 
	 	By:	Agree Realty Corporation,
	 	 	a Maryland corporation, its sole
                    general partner

	 	 	 
	 	By: 	             	 
	 	 	Name: Joel N. Agree
	 	 	Title:  President

 

[Signatures Continued on Next Page]

 

     

     

    

 

Signature Page to First Amendment and
Joinder to Term Loan Agreement for Agree Limited Partnership]

 

	 	AGREE REALTY CORPORATION,
	 	a Maryland corporation
	 	 
	 	By: 	 	 
	 	 	Name: Joel N. Agree
	 	 	Title: President

 

	 	
        AGREE 17-92, LLC,

        a Florida limited liability company

	 	
        AGREE ALCOA TN LLC,

        a Tennessee limited liability company

	 	
        AGREE ALLENTOWN PA LLC,

        a Pennsylvania limited liability company

	 	
        AGREE ALTOONA PA, LLC,

        a Delaware limited liability company

	 	
        AGREE ANDERSON SC LLC,

        a Delaware limited liability company

	 	
        AGREE ANN ARBOR JACKSON, LLC,

        a Delaware limited liability company

	 	AGREE ANN ARBOR STATE STREET, LLC, a Michigan limited liability company
	 	
        AGREE APOPKA FL, LLC,

        a Delaware limited liability company

	 	
        AGREE ARLINGTON TX LLC,

        a Texas limited liability company

	 	
        AGREE ATCHISON, LLC,

        a Kansas limited liability company

	 	
        AGREE ATLANTIC BEACH, LLC,

        a Delaware limited liability company
        

        AGREE BATON ROUGE LA LLC,

        a Louisiana limited liability company

 

	 	By:	Agree Limited Partnership,

a Delaware limited partnership
	 	Its:	Sole Member

 

	 	By: 	Agree
Realty Corporation,

a Maryland corporation

	 	Its: 	Sole General Partner

 

	 	By: 	 
	 	 	Joel N. Agree
	 	Its: 	President

 

     

     

    

 

Signature Page to First Amendment and
Joinder to Term Loan Agreement for Agree Limited Partnership]

 

	 	AGREE BELTON MO LLC, 

                           a Delaware limited liability company

	
         

         
	
        AGREE BELVIDERE
        IL LLC,

        an Illinois limited liability company

	 	
        AGREE BERWYN IL LLC,

        an Illinois limited liability company

	 	
        AGREE BRENHAM TX, LLC,

        a Delaware limited liability company

	 	
        AGREE BRIGHTON, LLC,

        a Delaware limited liability company

	 	
        AGREE BROOKLYN OH LLC,

        an Ohio limited liability company

	 	
        AGREE BUFFALO CENTER IA, LLC,

        a Delaware limited liability company

	 	
        AGREE BURLINGTON, LLC,

        a Delaware limited liability company

        AGREE CANNON STATION LLC,

        a Delaware limited liability company

	 	
        AGREE CEDAR PARK TX, LLC,

        a Delaware limited liability company

	 	AGREE CENTER POINT BIRMINGHAM AL LLC, an Alabama limited liability company
	 	
        AGREE CHARLOTTE POPLAR, LLC,

        a North Carolina limited liability company

	 	
        AGREE CHICAGO KEDZIE, LLC,

        a Illinois limited liability company

	 	
        AGREE COCHRAN GA, LLC,

        a Georgia limited liability company

	 	
        AGREE COLUMBIA SC LLC,

        a Delaware limited liability company

	 	
        AGREE CONCORD, LLC,

        a North Carolina limited liability company

	 	
        AGREE CW, LLC,

        a Delaware limited liability company

        AGREE DANIEL MORGAN AVE SPARTANBURG LLC,

        a South Carolina limited liability company

 

	 	By:	Agree Limited Partnership,

a Delaware limited
                           partnership

	 	Its:	Sole Member

 

	 	By: 	Agree Realty
Corporation,

a Maryland corporation

	 	Its: 	Sole General Partner

 

	 	By: 	 
	 	 	Joel N. Agree
	 	Its: 	President

 

     

     

    

 

Signature Page to First Amendment and
Joinder to Term Loan Agreement for Agree Limited Partnership]

 

	 	AGREE DAVENPORT IA, LLC, 

                           a Delaware limited liability company

	 	
        AGREE DES MOINES IA, LLC,

        a Delaware limited liability company

	 	
        AGREE EAST PALATKA, LLC,

        a Florida limited liability company

        AGREE EVERGREEN CO, LLC,

        a Delaware limited liability company

	 	
        AGREE FACILITY NO. 1, LLC,

        a Delaware limited liability company

	 	
        AGREE FOREST MS LLC,

        a Mississippi limited liability company

	 	
        AGREE FOREST VA LLC,

        a Virginia limited liability company

	 	
        AGREE FORT MILL SC, LLC,

        a South Carolina limited liability company

	 	
        AGREE FORT WORTH TX, LLC,

        a Delaware limited liability company

	 	
        AGREE FUQUAY VARINA LLC,

        a North Carolina limited liability company

	 	
        AGREE GRAND CHUTE WI LLC,

        a Delaware limited liability company

	 	
        AGREE GRAND FORKS LLC,

        a North Dakota limited liability company

	 	
        AGREE HARLINGEN LLC,

        a Texas limited liability company

	 	
        AGREE HAZARD KY, LLC,

        a Delaware limited liability company

	 	
        AGREE HOLLY SPRINGS MS, LLC,

        a Delaware limited liability company

	 	
        AGREE INDIANAPOLIS GLENDALE LLC,

        a Delaware limited liability company

	 	
        AGREE INDIANAPOLIS IN II, LLC,

        a Delaware limited liability company

	 	
        AGREE JACKSON MS, LLC,

        a Delaware limited liability company

 

	 	By:	Agree Limited
Partnership,

a Delaware limited partnership

	 	Its:	Sole Member

 

	 	By: 	Agree Realty
Corporation,

a Maryland corporation

	 	Its: 	Sole General Partner

 

	 	By: 	 
	 	 	Joel N. Agree
	 	Its: 	President

 

     

     

    

 

Signature Page to First Amendment and
Joinder to Term Loan Agreement for Agree Limited Partnership]

 

	 	AGREE JACKSONVILLE NC, LLC,
	 	a North Carolina limited liability company

	
         

         
	
        AGREE JOPLIN MO LLC,

        a Missouri limited liability company

	 	
        AGREE JUNCTION CITY KS LLC,

        a Delaware limited liability company

	 	
        AGREE KIRKLAND WA, LLC,

        a Delaware limited liability company

	 	
        AGREE LAKE IN THE HILLS, LLC,

        an Illinois limited liability company

	 	
        AGREE LAKE ZURICH IL, LLC,

        an Illinois limited liability company

	 	
        AGREE LEBANON VA LLC,

        a Virginia limited liability company

	 	
        AGREE LEJUNE SPRINGFIELD IL, LLC,

        an Illinois limited liability company

	 	
        AGREE LIGONIER PA, LLC,

        a Pennsylvania limited liability company

	 	
        AGREE LOWELL, LLC,

        a Delaware limited liability company

	 	
        AGREE LYONS GA LLC,

        a Georgia limited liability company

	 	
        AGREE M-59, LLC

        a Michigan limited liability company

        AGREE MADISONVILLE TX LLC,

        a Texas limited liability company

	 	
        AGREE MAGNOLIA KNOXVILLE TN LLC,

        a Tennessee limited liability company

	 	
        AGREE MANCHESTER LLC,

        a Connecticut limited liability company

	 	
        AGREE MARSHALL MI OUTLOT, LLC,

        a Delaware limited liability company

	 	
        AGREE MCKINNEY TX, LLC,

        a Texas limited liability company

	 	
        AGREE MEMPHIS GETWELL, LLC,

        a Tennessee limited liability company

 

	 	By:	Agree Limited Partnership,

a Delaware limited partnership
	 	Its:	Sole Member

 

	 	By: 	Agree Realty
Corporation,

a Maryland corporation

	 	Its: 	Sole General Partner

 

	 	By: 	 
	 	 	Joel N. Agree
	 	Its: 	President

 

     

     

    

 

Signature Page to First Amendment and
Joinder to Term Loan Agreement for Agree Limited Partnership]

 

	 	AGREE MINNEAPOLIS CLINTON AVE, LLC, 

                           a Minnesota limited liability company

	 	
        AGREE MONTGOMERY AL LLC,

        an Alabama limited liability
        company

	 	
        AGREE MORROW GA, LLC,

        a Georgia limited liability
        company

	 	
        AGREE MT. DORA FL, LLC,

        a Delaware limited liability
        company

	 	
        AGREE NEW LENOX 2, LLC,

        an Illinois limited liability
        company

        AGREE NORTH LAS VEGAS, LLC,

        a Nevada limited liability company

	 	
        AGREE NOVI MI LLC,

        a Michigan limited liability
        company

	 	
        AGREE ORANGE & MCCOY,
        LLC,

        a Florida limited liability
        company

	 	
        AGREE PALAFOX PENSACOLA FL,
        LLC,

        a Delaware limited liability
        company

	 	
        AGREE PENSACOLA LLC,

        a Florida limited liability
        company

	 	
        AGREE PENSACOLA NINE MILE
        LLC,

        a Florida limited liability
        company

	 	
        AGREE PINELLAS PARK, LLC,

        a Michigan limited liability
        company

	 	
        AGREE PLAINFIELD, LLC,

        a Michigan limited liability
        company

	 	
        AGREE POINCIANA LLC,

        a Florida limited liability
        company

	 	
        AGREE PORT ORANGE FL, LLC,

        a Delaware limited liability
        company

	 	
        AGREE PORT ST. JOHN LLC,

        a Delaware limited liability
        company

	 	
        AGREE PORTLAND ME, LLC,

        a Delaware limited liability
        company

	 	
        AGREE PORTLAND OR LLC,

        an Oregon limited liability
        company

 

	 	By:	Agree Limited Partnership,

a Delaware limited partnership
	 	Its:	Sole Member

 

	 	By: 	Agree Realty
Corporation,

a Maryland corporation

	 	Its: 	Sole General Partner

 

	 	By: 	 
	 	 	Joel N. Agree
	 	Its: 	President

 

     

     

    

 

Signature Page to First Amendment and
Joinder to Term Loan Agreement for Agree Limited Partnership]

 

	 	AGREE PROVO UT, LLC, 

                                                a Delaware limited liability company

	
         

         
	
        AGREE RAPID CITY SD, LLC,

        a South Dakota limited liability company

	 	
        AGREE RICHMOND VA LLC,

        a Delaware limited liability company

	 	
        AGREE ROCHESTER NY LLC,

        a New York limited liability company

	 	
        AGREE SALEM OR, LLC,

        a Delaware limited liability company

	 	
        AGREE SARASOTA FL, LLC,

        a Delaware limited liability company

	 	
        AGREE SILVER SPRING SHORES, LLC,

        a Delaware limited liability company

        AGREE SOUTHFIELD LLC,

        a Michigan limited liability company

	 	
        AGREE SPARTANBURG SC LLC,

        a South Carolina limited liability company

	 	
        AGREE SPRINGFIELD IL LLC,

        an Illinois limited liability company

        AGREE SPRINGFIELD OH, LLC,

        a Delaware limited liability company

	 	
        AGREE ST PETERSBURG LLC,

        a Florida limited liability company

	 	
        AGREE ST. AUGUSTINE SHORES, LLC,

        a Delaware limited liability company

	 	
        AGREE ST. JOSEPH MO, LLC,

        a Missouri limited liability company

	 	
        AGREE STATHAM GA, LLC,

        a Georgia limited liability company

	 	
        AGREE SUN VALLEY NV LLC,

        a Nevada limited liability company

	 	
        AGREE SUNNYVALE CA, LLC,

        a Delaware limited liability company

	 	
        AGREE TERRE HAUTE IN LLC,

        a Delaware limited liability company

 

	 	By:	Agree
Limited Partnership,

a Delaware limited partnership

	 	Its:	Sole Member

 

	 	By: 	Agree
Realty Corporation,

a Maryland corporation

	 	Its: 	Sole General Partner

 

	 	By: 	 
	 	 	Joel N. Agree
	 	Its: 	President

 

     

     

    

 

Signature Page to First Amendment and
Joinder to Term Loan Agreement for Agree Limited Partnership]

 

	 	AGREE TOPEKA KS, LLC, 

                                            a Delaware limited liability company

	 	
        AGREE TRI-STATE LEASE, LLC,

        a Delaware limited liability company

	 	
        AGREE UPLAND CA, LLC,

        a Delaware limited liability company

	 	
        AGREE VENICE, LLC,

        a Florida limited liability company

	 	
        AGREE VERO BEACH FL, LLC,

        a Delaware limited liability company

	 	
        AGREE WHEATON IL, LLC,

        a Delaware limited liability company

        AGREE WHITTIER CA, LLC,

        a Delaware limited liability company

	 	
        AGREE WICHITA FALLS TX LLC,

        a Texas limited liability company

	 	
        INDIANAPOLIS STORE NO. 16, LLC,

        a Delaware limited liability company

	 	
        LAWRENCE STORE NO. 203, LLC,

        a Delaware limited liability company

	 	
        LUNACORP LLC,

        a Delaware limited liability company

	 	
        MT PLEASANT OUTLOT I, LLC,

        a Michigan limited liability company

	 	
        MT PLEASANT SHOPPING CENTER LLC,

        a Michigan limited liability company

  

	 	By:	
        Agree Limited Partnership,

a Delaware limited
        partnership

	 	Its:	Sole Member

 

	 	By:	Agree
Realty Corporation,

a Maryland corporation

	 	Its: 	Sole General Partner

 

	 	By: 	 
	 	 	Joel N. Agree
	 	Its: 	President

 

[Signatures Continued on Next Page]

 

     

     

    

 

Signature Page
to First Amendment and Joinder to Term Loan Agreement for Agree Limited Partnership]

 

	 	Capital One, National
    Association,
	 	as Administrative Agent and as a Lender
	 	 
	 	By:	 
	 	 	Name: 	 
	 	 	Title: 	 

 

[Signatures Continued on Next Page]

 

     

     

    

 

Signature Page
to First Amendment and Joinder to Term Loan Agreement for Agree Limited Partnership]

 

	 	Raymond James Bank,
    N.A., as a Lender
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

     

     

    

 

EXHIBIT C

 

FORM OF COMPLIANCE CERTIFICATE

 

	Financial Statement Date: ____________

 

	To:	Capital One, National Association, as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to
that certain Term Loan Agreement dated as of July 1, 2016 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the “Agreement”; capitalized terms used but not defined herein shall have the meanings
given to them in the Agreement), among Agree Limited Partnership, a Delaware limited partnership (the “Borrower”),
the Lenders from time to time party thereto and Capital One, National Association, as Administrative Agent (the “Administrative
Agent”).

 

The undersigned [chief
executive officer][chief financial officer][treasurer][controller] of the Parent hereby certifies as of the date hereof that he/she
is the [chief executive officer][chief financial officer][treasurer][controller] of the Parent, and that, he/she is authorized
to execute and deliver this Compliance Certificate to the Administrative Agent on the behalf of the Parent. In such capacity, and
not individually, the undersigned further certifies that:

 

[Use following paragraph 1 for fiscal
year-end financial statements]

1.          The
Parent has delivered the year-end audited financial statements required by Section 7.01(a) of the Agreement for the fiscal year
of the Parent ended as of the above date, together with the report and opinion of an independent certified public accountant required
by such Section.

 

[Use following paragraph 1 for fiscal
quarter-end financial statements]

1.          The
Parent has delivered the unaudited financial statements required by Section 7.01(b) of the Agreement for the fiscal quarter of
the Parent ended as of the above date. Such financial statements fairly present the financial condition, results of operations
and cash flows of the Parent and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to
normal year-end audit adjustments and the absence of footnotes.

 

2.          The
undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision,
a detailed review of the transactions and condition (financial or otherwise) of the Parent and its Subsidiaries during the accounting
period covered by such financial statements.

 

3.          A
review of the activities of the Parent and its Subsidiaries during such fiscal period has been made under the supervision of the
undersigned with a view to determining whether during such fiscal period each Loan Party performed and observed all its Obligations
under the Loan Documents, and

 

    	 	Exhibit C-1	 

     

    

 

[Select One]

[to the best of the undersigned’s
knowledge, in such capacity as [chief executive officer][chief financial officer][treasurer][controller] of the Parent, and not
individually, that during such fiscal period, each Loan Party performed and observed each covenant and condition of the Loan Documents
applicable to it, and no Default has occurred and is continuing.]

—or--

[to the best of the undersigned’s knowledge, in such capacity
as [chief executive officer][chief financial officer][treasurer][controller] of the Parent, and not individually, that during such
fiscal period, the following covenants or conditions have not been performed or observed and the following is a list of each such
Default and its nature and status:]

 

4.          The
representations and warranties of the Borrower contained in Article VI of the Agreement, and any representations and warranties
of any Loan Party that are contained in any document furnished at any time under or in connection with the Loan Documents, are
true and correct on and as of the date hereof, except to the extent that such representations and warranties specifically refer
to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Compliance
Certificate, the representations and warranties contained in subsections (a) and (b) of Section 6.05 of the Agreement shall be
deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 7.01 of the Agreement,
including the statements in connection with which this Compliance Certificate is delivered.

 

5.          The
financial covenant analyses and information set forth on Schedule 1 attached hereto are true and accurate on and as of the
date of this Compliance Certificate.

 

IN WITNESS WHEREOF,
the undersigned has executed this Compliance Certificate as of ______________________.

 

	 	By: 	 
	 	Name:	 
	 	Title: [chief executive  officer][chief financial officer][treasurer][controller] of Agree Realty Corporation

 

    	 	Exhibit C-2	 

     

    

 

SCHEDULE 1

to the Compliance Certificate

 

For the fiscal [quarter][year] ended _______________________

 

Capitalized terms used but not defined
herein shall have the meanings given to them in the Agreement. Attached hereto as Exhibit A are detailed calculations with respect
to the below covenant compliance representations.

 

	Covenant	 	Requirement	 	Actual
	Maximum Leverage
    Ratio	 	Not to exceed 60%1	 	 
	Maximum Secured Leverage
    Ratio	 	Not to exceed 40%	 	 
	Minimum Tangible
    Net Worth	 	Not to be less than
    the sum of (i) $480,986,250 plus (ii) an amount equal to seventy-five percent (75%) of net equity proceeds received
    by the Parent after September 30, 2016 (other than proceeds received in connection with any dividend reinvestment program)	 	 
	Minimum Fixed Charge
    Coverage Ratio	 	The ratio of Adjusted
    EBITDA to Fixed Charges at the end of any quarter not to be less than 1.50 to 1.0	 	 
	Maximum Secured Recourse
    Indebtedness	 	Not to exceed 15%	 	 
	Maximum Unencumbered
    Leverage Ratio	 	Not to exceed 60%2	 	 

                                     

 

 

1
If Total Indebtedness exceeds 60% of Total Asset Value but does not exceed 65%, then the Borrower shall be deemed
to be in compliance so long as (w) the Borrower or any Subsidiary completed a Material Acquisition during the quarter in
which such percentage first exceeded 60%, (x) such percentage does not exceed 60% after the fiscal quarter immediately following
the fiscal quarter in which such Material Acquisition was completed, (y) the Borrower shall not maintain compliance in reliance
on this proviso more than one time during the term of the Agreement and (z) such percentage is not greater than 65% at any
time.

 

2
If Total Indebtedness that is Unsecured Indebtedness exceeds 60% of Unencumbered Asset Value but does not 65%,
then the Borrower shall be deemed to be in compliance so long as (w) the Borrower or any Subsidiary completed a Material
Acquisition during the quarter in which such percentage first exceeded 60%, (x) such percentage does not exceed 60% after
the fiscal quarter immediately following the fiscal quarter in which such Material Acquisition was completed, (y) the Borrower
shall not maintain compliance in reliance on this proviso more than one time during the term of the Agreement and (z) such
percentage is not greater than 65% at any time.

 

    	 	Exhibit C-3	 

     

    

 

	Covenant	 	Requirement	 	Actual
	Minimum Unsecured
    Interest Expense Ratio	 	The ratio of Unencumbered
    Pool NOI to Unsecured Interest Expense not to be less than 1.75 to 1.0	 	 
	Industry Concentration	 	Not more than 25%
    of annualized base rents of the Loan Parties and their Subsidiaries for any 12 month period may be attributable to any one
    industry type	 	 
	Minimum
Number of Unencumbered Pool Properties
	 	Not less than 100
    Unencumbered Pool Properties	 	 
	Permitted Investments	 	(a) Investments in unimproved land holdings
    not to at any time exceed 10% of Total Asset Value	 	 
	 	 	(b) Investments in mortgages, mezzanine loans
    and notes receivable not to at any time exceed 10% of Total Asset Value	 	 
	 	 	(c) Investments in Construction in Progress
    not to at any time exceed 20% of Total Asset Value	 	 
	 	 	(d) Investments in non-wholly owned Subsidiaries
    and Unconsolidated Affiliates not to at any time exceed 20% of Total Asset Value	 	 
	 	 	Investments pursuant to clauses (a) through
    (d) above in the aggregate will not exceed 25% of Total Asset Value	 	 
	Permitted Distributions
    of Parent for any fiscal year	 	Restricted Payments
    in an amount not to exceed in the aggregate the greater of (i) 95% of Funds From Operations, calculated on a trailing twelve
    month basis, and (ii) the amount of Restricted Payments required to be paid by the Parent in order for it to (x) maintain
    its REIT status for federal or state income tax purposes and (y) avoid the payment of federal or state income or excise tax	 	 

 

    	 	Exhibit C-4	 

     

    

 

EXHIBIT E

 

FORM OF UNENCUMBERED POOL REPORT

 

	To:	Capital One, National Association, as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to
that certain Term Loan Agreement dated as of July 1, 2016 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the “Agreement”; capitalized terms used but not defined herein shall have the meanings
given to them in the Agreement), among Agree Limited Partnership, a Delaware limited partnership (the “Borrower”),
the Lenders from time to time party thereto and Capital One, National Association, as Administrative Agent (the “Administrative
Agent”). This Unencumbered Pool Report, together with supporting calculations attached hereto, is delivered to you pursuant
to the terms of the Agreement.

 

The Borrower hereby
certifies and warrants to the Administrative Agent and the Lenders that at the close of business on __________________ (the “Calculation
Date”), the Unencumbered Pool Amount was $_______________ computed as set forth on Schedule I attached hereto.

 

The Borrower has caused
this Unencumbered Pool Report to be executed and delivered by its duly authorized officer on _______________________.

 

	 	By: 	 
	 	Name:	 
	 	Title: [chief executive officer][chief financial officer][treasurer][controller] of Agree Limited Partnership

                                                 

    	 	Exhibit E-1	 

     

    

 

SCHEDULE I

to the Unencumbered Pool Report

 

For the fiscal [quarter][year] ended _______________________

 

Capitalized terms used but not defined
herein shall have the meanings given to them in the Agreement. Attached hereto as Exhibit A are detailed calculations with respect
to the below elements of Unencumbered Pool NOI.

 

	Requirement	 	Actual
	No more than 25% of the aggregate Unencumbered Pool NOI may be in respect of Unencumbered Pool Properties that are located in any one Metropolitan Statistical Area	 	 
	No more than 20% of the aggregate Unencumbered Pool NOI may be from a single tenant 	 	 
	Aggregate occupancy
    rate of all Properties included as Unencumbered Pool Properties may not to be less than 80%3	 	 
	No more than 15%
    of the aggregate Unencumbered Pool NOI may be attributable to Properties leased under Eligible Ground Leases4	 	 

 

 

3
If the aggregate occupancy rate is less than 80%, then Borrower shall exclude from determination one or more
Unencumbered Pool Properties as may be necessary for such aggregate occupancy rate to equal or exceed 80%.

 

4
To the extent more than 15% of the aggregate Unencumbered Pool NOI is attributable to Properties leased under
Eligible Ground Leases, such excess shall be excluded from the aggregate Unencumbered Pool NOI.

 

    	 	Exhibit E-2Exhibit
10.11

 

SUMMARY OF
COMPENSATION FOR

THE BOARD
OF DIRECTORS OF

AGREE REALTY
CORPORATION

 

 

 

Annual Cash Retainer:

 

Non-Employee
Director: $30,000

 

Audit Committee
Chair: $4,000 (in addition to non-employee retainer)

 

Other:

 

Directors traveling
from outside the Bloomfield Hills, Michigan area are reimbursed for all out-of-pocket expenses incurred in connection with attending
meetings of the Board or any committees thereof.

 

Directors who
are employees or officers of the Company do not receive any compensation for serving on the Board or any committees thereof.

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