Document:

Exhibit 4.2

 

EXECUTION COPY

 

AFN ABSPROP001, LLC

 

AFN ABSPROP001-A, LLC

 

and

 

AFN ABSPROP001-B, LLC

 

each, as an Issuer,

 

and

 

CITIBANK, N.A.,

as Indenture Trustee

 

 

 

SERIES 2019-1 SUPPLEMENT

 

Dated as of May 30, 2019

 

to the

 

Master Indenture dated as of May 30, 2019

 

 

 

NET-LEASE MORTGAGE NOTES,

SERIES 2019-1, CLASS A-1 AND CLASS A-2

 

    	 		 

     

    

 

TABLE OF CONTENTS

  

	 	Page
	 	 
	ARTICLE I Definitions	2
	 
	Section 1.01.	Definitions	2
	 
	ARTICLE II Creation of the Series 2019-1 Notes; Payments on the Series 2019-1 Notes	7
	 
	Section 2.01.	Designation	7
	Section 2.02.	Payments on the Series 2019-1 Notes	8
	Section 2.03.	Voluntary Prepayment	9
	Section 2.04.	Early Refinancings	10
	Section 2.05.	Unscheduled Principal Payments.	10
	Section 2.06.	Triple A Release Event.	10
	 
	ARTICLE III Representations and Warranties	11
	 
	Section 3.01.	Representations and Warranties	11
	Section 3.02.	Conditions Precedent Satisfied	11
	Section 3.03.	Collateral Representations and Warranties	11
	 
	ARTICLE IV Miscellaneous Provisions	12
	 
	Section 4.01.	Ratification of Indenture	12
	Section 4.02.	Counterparts	12
	Section 4.03.	Governing Law	12
	Section 4.04.	Beneficiaries	12
	Section 4.05.	Non-Petition	12
	Section 4.06.	Non-Recourse	13
	Section 4.07.	Amendments	13
	Section 4.08.	Notice to the Rating Agency	13
	Section 4.09.	Assignment of Owner’s Title Policy	13

 

	Exhibits	 	
	EXHIBIT A	Additional Representations and Warranties	
	 	 	
	Schedules	 	
	SCHEDULE I-A	Properties / Locations	
	SCHEDULE I-B	Representations and Warranties Exception Schedule	
	SCHEDULE II-A	Amortization Schedule (Class A-1 (AAA) Notes)	
	SCHEDULE II-B	Amortization Schedule (Class A-2 (A) Notes)	

 

    	 		 

     

    

 

SERIES 2019-1 SUPPLEMENT,
dated as of May 30, 2019 (the “Series 2019-1 Supplement”), among AFN ABSPROP001, LLC, a Delaware limited
liability company, as an issuer (“AFN ABSPROP001”), AFN ABSPROP001-A, LLC, a Delaware limited liability
company, as an issuer (“AFN ABSPROP001-A”), AFN ABSPROP001-B, LLC, a Delaware limited liability company,
as an issuer (“AFN ABSPROP001-B”; collectively with AFN ABSPROP001 and AFN ABSPROP001-A, the “Issuers”
and each, an “Issuer”) and CITIBANK, N.A. (the “Indenture Trustee”).

 

Pursuant to this Series 2019-1
Supplement to the Master Indenture, dated as of May 30, 2019 (the “Master Indenture”), among the Issuers
and the Indenture Trustee, the Issuers and the Indenture Trustee hereby create a new Series of Notes (the “Series 2019-1
Notes”), which consists of the Class A-1 (AAA) Notes (as defined below) and the Class A-2 (A) Notes (as defined below),
and specify the Principal Terms thereof.

 

Pursuant to the Master Indenture,
the Issuers, together with any applicable co-issuers, may from time to time direct the Indenture Trustee to authenticate one or
more new Series of Notes. The Principal Terms of any new Series are to be set forth in a related Series Supplement to the Master
Indenture.

 

ARTICLE
I

 

Definitions

 

Section 1.01.       Definitions.

 

Capitalized terms used herein
and not otherwise defined shall have the meaning set forth in the Master Indenture or in the Property Management Agreement, as
applicable.

 

“Accrual Period”:
With respect to the Series 2019-1 Notes and any Payment Date, the period from and including the 20th day of the preceding month
(or, with respect to the initial Accrual Period, from and including the Series Closing Date) to, but excluding, the 20th day of
the month of payment. For the avoidance of doubt, the Accrual Period will always be computed on the basis of a 360-day year consisting
of twelve 30-day months.

 

“Adjustment Amount”:
For the Class A-1 (AAA) Notes, the Class A-1 Adjustment Amount and for the Class A-2 (A) Notes, the Class A-2 Adjustment Amount.

 

“Aggregate Collateral
Value”: As defined in the Property Management Agreement.

 

“Allocated Loan
Amount”: As defined in the Property Management Agreement.

 

“Allocated Release
Amount”: As defined in the Property Management Agreement.

 

“Anticipated
Repayment Date”: With respect to the Class A-1 (AAA) Notes, the Payment Date occurring in May 2026. With respect
to the Class A-2 (A) Notes, the Payment Date occurring in May 2029.

 

    	 	2	 

     

    

 

“Class A-1 (AAA)
Notes”: Any of the $ 121,000,000 Net-Lease Mortgage Notes, Series 2019-1, Class A-1 (AAA), issued pursuant to this
Series 2019-1 Supplement and the Master Indenture, executed by the Issuers and authenticated by the Indenture Trustee or the Authenticating
Agent, if any, substantially in the form of Exhibits A-1, A-2 or A-3 attached to the Indenture.

 

“Class A-2 (A)
Notes”: Any of the $121,000,000 Net-Lease Mortgage Notes, Series 2019-1, Class A-2 (A), issued pursuant to this Series
2019-1 Supplement and the Master Indenture, executed by the Issuers and authenticated by the Indenture Trustee or the Authenticating
Agent, if any, substantially in the form of Exhibits A-1, A-2 or A-3 attached to the Indenture.

 

“Class A-1 (AAA)
Note Interest”: On any Payment Date for the Class A-1 (AAA) Notes, the interest accrued during the related Accrual
Period at the Class A-1 (AAA) Note Rate, applied to the Outstanding Principal Balance of the Class A-1 (AAA) Notes before giving
effect to any payments of principal on such Payment Date.

 

“Class A-2 (A)
Note Interest”: On any Payment Date for the Class A-2 (A) Notes, the interest accrued during the related Accrual
Period at the Class A-2 (A) Note Rate, applied to the Outstanding Principal Balance of the Class A-2 (A) Notes before giving effect
to any payments of principal on such Payment Date.

 

“Class A-1 (AAA)
Note Rate”: The Note Rate set forth in Section 2.01(a) that corresponds to the Class A-1 (AAA) Notes.

 

“Class A-2 (A)
Note Rate”: The Note Rate set forth in Section 2.01(a) that corresponds to the Class A-2 (A) Notes.

 

“Class A-1 (AAA)
Noteholder”: With respect to any Class A-1 (AAA) Note, the Person in whose name such Note is registered on the Note
Register.

 

“Class A-2 (A)
Noteholder”: With respect to any Class A-2 (A) Note, the Person in whose name such Note is registered on the Note
Register.

 

“Class A-1 Adjustment
Amount”: On any Payment Date, the lesser of (i) the Outstanding Principal Balance of the Class A-1 (AAA) Notes before
giving effect to any payments of principal on such Payment Date and (ii) maximum of (a) the amount by which the Series Adjustment
Amount exceeds the Class A-2 Adjustment Amount and (b) zero.

 

“Class A-2 Adjustment
Amount”: On any Payment Date, the lesser of (i) the Outstanding Principal Balance of the Class A-2 (A) Notes before
giving effect to any payments of principal on such Payment Date of the Class A-2 (A) Notes and (ii) the Series Adjustment Amount
for such Payment Date.

 

“Controlling
Party”: With respect to the Series 2019-1 Notes, the Noteholders representing in the aggregate more than 50% of the
Outstanding Principal Balance of the Class A-1 (AAA) Notes, or, if such Series Class A-1 (AAA) Notes have been paid in full, Noteholders
representing in the aggregate more than 50% of the Outstanding Principal Balance of the Class A-2 (A) Notes.

 

    	 	3	 

     

    

 

“Early Refinancing
Prepayment”: As defined in Section 2.04.

 

“Early Refinancing
Notice Date”: As defined in Section 2.04.

 

“Full Redemption
Amount”: The amount specified in Section 2.03(b).

 

“Indenture”:
The Master Indenture, as supplemented by this Series 2019-1 Supplement and any other Series Supplement, as applicable.

 

“Indenture Trustee
Fee Rate”: With respect to the Series 2019-1 Notes, 0.0125%.

 

“Initial Purchaser”:
Credit Suisse Securities (USA) LLC.

 

“Initial Principal
Balance”: The Initial Principal Balance set forth in Section 2.01(a) hereof that corresponds to each Class
of Series 2019-1 Notes, as applicable.

 

“Issuer Manager”:
American Finance Operating Partnership, L.P., in its capacity as manager of each Issuer, and its permitted successors and assigns.

 

“Issuer LLC Agreement”:
As the context requires, (i) the limited liability company agreement of AFN ABSPROP001, dated as of March 26, 2019, (ii) the limited
liability company agreement of AFN ABSPROP001-A, dated as of March 26, 2019, or (iii) the limited liability company agreement of
AFN ABSPROP001-B, dated as of March 26, 2019, in each case as may be amended or restated from time to time.

 

“Make Whole Amount”:
With respect to any Class of the Series 2019-1 Notes and any Voluntary Prepayment or Unscheduled Principal Payment, an amount (not
less than zero) equal to: (A) using the Reinvestment Yield, the sum of the discounted present values of the aggregate payments
of principal and interest remaining for such Class of Series 2019-1 Notes due on or prior to the Payment Date in May 2024 with
respect to the Class A-1 (AAA) Notes and May 2026 with respect to the Class A-2 (A) Notes being prepaid (calculated prior to the
application of the Voluntary Prepayment or Unscheduled Principal Payment), minus (B) the amount of principal repaid by the
Voluntary Prepayment or Unscheduled Principal Payment made with respect to such Class of Series 2019-1 Notes, as applicable.

 

    	 	4	 

     

    

 

“Maximum Property
Concentration”: Means, with respect to any Determination Date, after giving effect to any Qualified Substitute Property,
Replacement Property and, in each case, the Leases thereunder, the following percentages equal to the aggregate Allocated Loan
Amounts of the Properties in such concentration over the aggregate Allocated Loan Amount of the Collateral Pool: (i) (a) with respect
to the Restaurants – Limited Service and Restaurants – Full Service Business Sectors as of any Determination Date,
no limit, so long as no related Restaurant Concept exceeds 25.00% of the Allocated Loan Amount of the Collateral Pool) as of such
Determination Date, (b) with respect to the Gas/Convenience Business Sector as of any Determination Date, a percentage equal to
40.00%, and (c) with respect to each other Business Sector as of any Determination Date, a percentage equal to 20.00%; (ii) with
respect to any Tenant (including affiliates thereof), (a) in the case of the largest Tenant (including affiliates thereof) as of
such Determination Date, a percentage equal to 30.00% and (b) in the case of the five (5) largest Tenants (including affiliates
thereof) as of such Determination Date, an aggregate percentage equal to 70.00% as of such Determination Date; (iii) with respect
to Properties with a FCCR less than 1.25x as of such Determination Date, a percentage equal to 5.00% as of such Determination Date;
(iv) with respect to Tenant Ground Leases as of such Determination Date, a percentage equal to 2.00% as of such Determination Date;
(v) with respect to Percentage Rent as a percentage of total rent as of such Determination Date, a percent equal to 2.00% as of
such Determination Date; (vi) with respect to Properties with less than twelve (12) months of operating history at such location
as of such Determination Date, a percentage equal to 10.00% as of such Determination Date; (vii) with respect to Properties with
 “double-net” leases as of such Determination Date, a percentage equal to 7.00% as of such Determination Date; and (viii)
with respect to Properties in any NAICS business sector not identified on Exhibit A (other than any new Business Sector added on
an Issuance Date), a percentage equal to 15.00% as of such Determination Date with no requirement to obtain consent from Noteholders;
provided, that the Rating Condition is satisfied with respect to any such addition.

 

“Note Rate”:
The Note Rate set forth in Section 2.01(a) hereof that corresponds to each Class of Series 2019-1 Notes, as applicable.

 

“Post-ARD Additional
Interest Rate”: With respect to the Series 2019-1 Notes, a per annum rate equal to the rate determined by the Property
Manager to be the greater of (i) 5.00% and (ii) the amount, if any, by which the sum of the following exceeds the Note Rate for
such Class of Series 2019-1 Notes: (A) the yield to maturity (adjusted to a “mortgage equivalent basis” pursuant to
the standards and practices of the Securities Industry and Financial Markets Association) on such Anticipated Repayment Date of
the United States Treasury Security having a term closest to ten (10) years, plus (B) 5.00%, plus (C) the applicable Post-ARD
Spread.

 

“Post-ARD Spread”:
With respect to (i) the Class A-1 (AAA) Notes, 1.65%, and (ii) the Class A-2 (A) Notes, 2.25%.

 

“Private Placement
Memorandum”: With respect to the Series 2019-1 Notes, the Private Placement Memorandum dated May 24, 2019.

 

“Property Management
Agreement”: The Property Management Agreement, dated as of May 30, 2019, by and among the Issuers, American Finance
Properties, LLC, as the Property Manager and the Special Servicer, KeyBank National Association, as the Back-Up Manager, Citibank,
N.A., as the Indenture Trustee and any additional joining party, each such joining party as a Co-Issuer.

 

“Qualified Release
Amount”: A portion of the Collateral Pool that may be released in connection with an Early Refinancing Prepayment,
applying a Release Price for each asset to be released equal to the greater of Fair Market Value and one hundred fifteen percent
(115%) of the Allocated Loan Amount of the Properties being released, that in the aggregate is no greater than the dollar amount
of the Notes being prepaid in connection with such Early Refinancing Prepayment.

 

“Rated Final
Payment Date”: With respect to the Series 2019-1 Notes, the Payment Date occurring in May 2049.

 

“Rating Agency”:
S&P Global, Inc.

 

    	 	5	 

     

    

 

“Related Series
Closing Date”: The date of issuance of any Related Series Notes.

 

“Related Series
Notes”: One or more additional series of Notes issued by the Issuers and any applicable co-issuer pursuant to the
Master Indenture and the applicable Series Supplement, each of which will also be secured by the Collateral Pool on a pro rata
basis.

 

“Reinvestment
Yield”: With respect to any Class of Series 2019-1 Notes, the yield on the United States Treasury Securities having
the closest maturity (month and year) to the weighted average life of such Class of Series 2019-1 Notes as of such Payment Date,
measured as of the Anticipated Repayment Date with respect to such Class of Series 2019-1 Notes (prior to the application of any
Voluntary Prepayment or Unscheduled Principal Prepayment with respect thereto) plus 0.50%. If more than one such United
States Treasury Security is quoted as maturing on such date, then the yield of the United States Treasury Security quoted closest
to par shall be used in the calculation of the Reinvestment Yield.

 

“Requisite Global
Majority”: The Series 2019-1 Noteholders representing more than 66 2/3% of the Aggregate Series Principal Balance.

 

“Scheduled Class
A-1 Principal Balance”: With respect to any Payment Date and the Class A-1 (AAA) Notes, the amount set forth for
such date on the Amortization Schedule annexed hereto as Schedule II-A.

 

“Scheduled Class
A-2 Principal Balance”: With respect to any Payment Date and the Class A-2 (A) Notes, the amount set forth for such
date on the Amortization Schedule annexed hereto as Schedule II-B.

 

“Scheduled Class
A-1 Principal Payment”: With respect to each Payment Date and the Class A-1 (AAA) Notes, an amount, calculated by
the Property Manager and confirmed by the Indenture Trustee upon receipt of and based upon the Determination Date Report equal
to the sum of (a) any unpaid portion of Scheduled Class A-1 Principal Payment, from any prior Payment Dates and (b) the product
of (i)(A) the related Scheduled Class A-1 Principal Balance for the prior Payment Date minus (B) the Scheduled Class A-1 Principal
Balance for the current Payment Date and (ii) a fraction (A) the numerator of which is equal to the Outstanding Principal Balance
of the Class A-1 (AAA) Notes (without taking into account any payments to be made on such Payment Date) minus the amounts specified
in clause (a) of this definition and (B) the denominator of which is the related Scheduled Class A-1 Principal Balance for the
prior Payment Date.

 

“Scheduled Class
A-2 Principal Payment”: With respect to each Payment Date and the Class A-2 (A) Notes, an amount, calculated by the
Property Manager and confirmed by the Indenture Trustee upon receipt of and based upon the Determination Date Report equal to the
sum of (a) any unpaid portion of Scheduled Class A-2 Principal Payment, from any prior Payment Dates and (b) the product of (i)(A)
the related Scheduled Class A-2 Principal Balance for the prior Payment Date minus (B) the Scheduled Class A-2 Principal Balance
for the current Payment Date and (ii) a fraction (A) the numerator of which is equal to the Outstanding Principal Balance of the
Class A-2 (A) Notes (without taking into account any payments to be made on such Payment Date) minus the amounts specified in clause
(a) of this definition and (B) the denominator of which is the related Scheduled Class A-2 Principal Balance for the prior Payment
Date.

 

    	 	6	 

     

    

 

“Scheduled Series
Principal Balance”: The Scheduled Class A-1 Principal Balance or the Scheduled Class A-2 Principal Balance, as the
context requires.

 

“Series 2019-1
Early Refinancing Period”: As defined in Section 2.04.

 

“Series 2019-1
Note”: Any of the Class A-1 (AAA) Notes and the Class A-2 (A) Notes.

 

“Series 2019-1
Noteholder”: Any of the Class A-1 (AAA) Noteholders and the Class A-2 (A) Noteholders.

 

“Series Closing
Date”: May 30, 2019.

 

“Series Collateral
Release”: As defined in the Property Management Agreement.

 

“Series Disposition
Period Date”: As defined in Section 2.01(f).

 

“Triple A Release
Event”: As defined in Section 2.06.

 

ARTICLE
II

 

Creation
of the Series 2019-1 Notes; Payments on the Series 2019-1
Notes

 

Section 2.01.       Designation.

 

(a)       There
is hereby created a Series of Notes consisting of the Class A-1 (AAA) Notes and the Class A-2 (A) Notes to be issued by the Issuers
pursuant to the Indenture and this Series 2019-1 Supplement to be known as “Net-Lease Mortgage Notes, Series 2019-1.”
The Series 2019-1 Notes shall have the following Class designations, Initial Principal Balances, Note Rates and Ratings:

 

	Class Designation	 	Initial
 Principal
    Balance	 	 	Note Rate	 	 	Ratings (S&P)	 
	Class A-1 (AAA)	 	$	121,000,000	 	 	 	3.78	%	 	 	AAA (sf)	 
	Class A-2 (A)	 	$	121,000,000	 	 	 	4.46	%	 	 	A (sf)	 

 

The Note Interest with respect
to the Series 2019-1 Notes will be computed on the basis of a 360-day year consisting of twelve 30-day months.

 

The Series 2019-1 Notes shall
not have preference or priority over the Notes of any other Series except to the extent set forth in the Indenture. The Series
2019-1 Notes shall not be subordinate to any other Series.

 

(b)       The
initial Payment Date with respect to the Series 2019-1 Notes shall be the Payment Date occurring in June 2019.

 

    	 	7	 

     

    

 

(c)       The
initial Collection Period with respect to the Series 2019-1 Notes shall be the period commencing on the Series Closing Date and
ending on (and including) the Determination Date in June 2019.

 

(d)       On
the Series Closing Date, the Series 2019-1 Notes shall be issued in the form of Book-Entry Notes. For the avoidance of doubt, the
Series 2019-1 Notes may be transferred in accordance with Article II of the Master Indenture, subject to the additional requirements
set forth herein.

 

(e)       Each
statement, notice or other document related to the Series 2019-1 Notes required to be provided to any applicable Rating Agency
pursuant to Section 5.14 of the Master Indenture via email shall be sent to the following addresses: servicer_reports@sandp.com,
with a copy to the 17g-5 site at afinabs20191rbgn@17g5.com.

 

(f)        The
 “Series Disposition Period Date” with respect to the Series 2019-1 Notes shall be the Payment Date occurring
in May 2046.

 

Section 2.02.       Payments
on the Series 2019-1 Notes. On each Payment Date, the Indenture Trustee will apply the Series Available Amount with respect
to the Series 2019-1 Notes for such Payment Date for the following purposes and in the following order of priority:

 

(1)          to
the Class A-1 (AAA) Noteholders, the Class A-1 (AAA) Note Interest, plus unpaid Class A-1 (AAA) Note Interest from any prior Payment
Date, together with interest on any such unpaid Class A-1 (AAA) Note Interest at the Class A-1 (AAA) Note Rate;

 

(2)          to
the Class A-2 (A) Noteholders, the Class A-2 (A) Note Interest, plus unpaid Class A-2(A) Note Interest from any prior Payment Date,
together with interest on any such unpaid Class A-2 (A) Note Interest at the Class A-2 (A) Note Rate;

 

(3)          (I)
for so long as no Early Amortization Period or Event of Default has occurred and is continuing, to the Class A-1 (AAA) Noteholders,
an amount equal to the Scheduled Class A-1 Principal Payment and the Unscheduled Principal Payment allocable to the Series 2019-1
Notes for such Payment Date; or (II) if an Early Amortization Period or Event of Default has occurred and is continuing, to the
Class A-1 (AAA) Noteholders all remaining Series Available Amounts until the Outstanding Principal Balance of the Class A-1 (AAA)
Notes has been reduced to zero;

 

(4)          to
the Class A-1 (AAA) Noteholders, the Interest Carry-Forward Amount with respect to the Class A-1 (AAA) Notes, if any, due on such
Payment Date;

 

(5)          (I)
for so long as no Early Amortization Period or Event of Default has occurred and is continuing, to the Class A-2 (A) Noteholders,
an amount equal to the Scheduled Class A-2 Principal Payment and the Unscheduled Principal Payment allocable to the Series 2019-1
Notes for such Payment Date remaining after distributions to the Class A-1 (AAA) Noteholders pursuant to clause (3)(I) above, if
any; or (II) if an Early Amortization Period or Event of Default has occurred and is continuing, to the Class A-2 (A) Noteholders
all remaining Series Available Amounts until the Outstanding Principal Balance of the Class A-2 (A) Notes has been reduced to zero;

 

    	 	8	 

     

    

 

(6)          to
the Class A-2 (A) Noteholders, the Interest Carry-Forward Amount with respect to the Class A-2 (A) Notes, if any, due on such Payment
Date;

 

(7)          to
the Class A-1 (AAA) Noteholders, the Make Whole Amount allocated to the Class A-1 (AAA) Notes, if any, due on such Payment Date;

 

(8)          to
the Class A-2 (A) Noteholders, the Make Whole Amount allocated to the Class A-2 (A) Notes, if any, due on such Payment Date;

 

(9)          to
the Class A-1 (AAA) Noteholders, any Post-ARD Additional Interest and Deferred Post-ARD Additional Interest, if any, due to the
Class A-1 (AAA) Notes on such Payment Date;

 

(10)        to
the Class A-2 (A) Noteholders, any Post-ARD Additional Interest and Deferred Post-ARD Additional Interest, if any, due to the Class
A-2 (A) Notes on such Payment Date; and

 

(11)        to
the Issuers, all remaining Series Available Amounts (such amounts to be released from the lien of the Indenture).

 

Section 2.03.       Voluntary
Prepayment.

 

(a)        The
Issuers may, at their option, elect to make a Voluntary Prepayment with respect to the Series 2019-1 Notes in whole or in part
on the related Redemption Date in accordance with Section 7.01 of the Master Indenture.

 

(b)        The
 “Full Redemption Amount” in connection with a Voluntary Prepayment of the Series 2019-1 Notes in full
shall be an amount equal to the sum of (i) the then Outstanding Principal Balance of the Series 2019-1 Notes, (ii) all accrued
and unpaid interest thereon (plus any Interest Carry-Forward Amount, Post-ARD Additional Interest and Deferred Post-ARD Additional
Interest), (iii) all amounts related to such Series 2019-1 Notes that are outstanding to the Indenture Trustee, the Property Manager,
the Special Servicer, the Back-Up Manager and any other parties to the Transaction Documents and (iv) the required Make Whole Amount,
if applicable.

 

(c)      The
Partial Redemption Amount in connection with a Voluntary Prepayment of the Series 2019-1 Notes in part shall be as set forth in
Section 7.01(d) of the Master Indenture. For the avoidance of doubt, proceeds from a Series Collateral Release are not permitted
to be used for a Voluntary Prepayment in connection with a partial prepayment of the Series 2019-1 Notes or any Related Series
Notes.

 

(d)      In
addition, the Issuers may prepay a Class of Series 2019-1 Notes in full (without prepaying any Related Series Notes or any other
Class of Series 2019-1 Notes) on any Business Day that is on or following the Payment Date in May 2024, with respect to the Class
A-1 (AAA) Notes and in May 2026, with respect to the Class A-2 (A) Notes; provided, that, except in connection with a Series
Collateral Release, such Class of Series 2019-1 Notes may only be prepaid in full (without prepaying any Related Series Notes or
other Class of Series 2019-1 Notes) if no other Class of Series 2019-1 Notes or class of any other Series of Notes with a higher
alphabetical designation and an Anticipated Repayment Date that is the same as or sooner than the Anticipated Repayment Date of
the Series 2019-1 Notes is then outstanding.

 

    	 	9	 

     

    

 

Section 2.04.       Early
Refinancings. With respect to the Series 2019-1 Notes and on any Payment Date on or following the Payment Date in June 2021,
the Issuers have the right to prepay an aggregate amount up to thirty-five percent (35%) of the Initial Principal Balance of the
Series 2019-1 Notes (the “Early Refinancing Prepayment”). No Make Whole Amount will be due in relation
to any Early Refinancing Prepayment; provided, that (i) the prepayment is made with funds obtained from a Qualified Deleveraging
Event, (ii) the Issuers provided no less than thirty (30) days’ notice to the Series 2019-1 Noteholders (such date, the “Early
Refinancing Notice Date”) and (iii) such Early Refinancing Prepayment is used to prepay a portion of the Outstanding
Principal Balance of the Series 2019-1 Notes no later than twelve (12) months following the Early Refinancing Notice Date (the
 “Series 2019-1 Early Refinancing Period”); provided, that the maximum Early Refinancing Prepayments
permitted to be made is an amount equal to (A) thirty-five percent (35%) of the Initial Principal Balance of the Series 2019-1
Notes, minus (B) the amount of Early Refinancing Prepayments and Unscheduled Principal Payments made on the Notes from Allocated
Release Amounts since the Series Closing Date.

 

Section 2.05.      Unscheduled
Principal Payments. A Make Whole Amount will be due to Noteholders of each Class of Series 2019-1 Notes in connection with
the payment of any Unscheduled Principal Payment actually paid on the related Payment Date, other than any portion thereof consisting
of Insurance Proceeds, Condemnation Proceeds, Early Refinancing Prepayments made in connection with the Qualified Deleveraging
Event, amounts disbursed to the Payment Account from the DSCR Reserve Account and amounts received in respect of a Specially Managed
Unit or a repurchase due to a Collateral Defect, or for prepayments of the Series 2019-1 Notes in respect of Allocated Release
Amounts in an aggregate amount up to ten percent (10%) of the Initial Principal Balance of the Series 2019-1 Notes; provided,
however, that when combined with any Early Refinancing Prepayments made since the Series Closing Date, such Allocated Release
Amounts shall not exceed thirty-five percent (35%) of the Initial Principal Balance of the Series 2019-1 Notes (and for any amount
that does exceed thirty-five percent (35%), a Make Whole Amount will be due).

 

Section 2.06.       Triple
A Release Event. In the event that any Class A-1 (AAA) Notes remain outstanding on the Payment Date in May 2034, and an Early
Amortization Period is in effect, the Property Manager shall be required to use commercially reasonable efforts to sell Properties
in an amount equal to thirty-five percent (35%) of the Aggregate Collateral Value, taking into account the sum of the Collateral
Value of all Released Properties released since the Series Closing Date by paying the Release Price (such occurrence, a “Triple
A Release Event”). Any Release Price collected in connection with a Triple A Release Event pursuant to this Section
2.06, together with any other amounts on deposit in the Release Account at such time, shall be deposited as Unscheduled Proceeds
into the Collection Account and shall be included in the Available Amount on the following Payment Date to be applied as Unscheduled
Principal Payments, in accordance with the Master Indenture.

 

    	 	10	 

     

    

 

ARTICLE
III

 

Representations
and Warranties

 

Section 3.01.       Representations
and Warranties.

 

(a)       The
Issuers and the Indenture Trustee hereby restate as of the Series Closing Date, or as of such other date as is specifically referenced
in the body of such representation and warranty, all of the representations and warranties set forth in Section 2.19, Section 2.20,
Section 2.21, Section 2.22, Section 5.06 and Section 9.04, as applicable, of the Master Indenture.

 

(b)       Each
of the Issuers and the Indenture Trustee hereby represents and warrants to each other as of the Series Closing Date:

 

(i)                         it
has full corporate power and authority to execute, deliver and perform its obligations under this Series 2019-1 Supplement, and
to consummate the transactions set forth herein. The consummation of the transactions contemplated by this Series 2019-1 Supplement
will not conflict with, or result in a breach of, any of the terms, conditions or provisions of its organizational documents, or
any material agreement or instrument to which it is now a party or by which it is bound, or result in the violation of any law,
rule, regulation, order, judgment or decree to which it or its property is subject, except any such conflict, violation or breach
that would not result in a material adverse effect on such party’s ability to perform its obligations hereunder or the enforceability
of any of the Transaction Documents. The execution, delivery and performance by it of this Series 2019-1 Supplement, and the consummation
by it of the transactions contemplated hereby, have been duly authorized by all necessary corporate action or limited liability
company action, as applicable. This Series 2019-1 Supplement has been duly executed and delivered by it and, assuming due authorization,
execution and delivery by each other party hereto, constitutes the valid and legally binding obligation of it enforceable against
it in accordance with its terms (except as such enforceability may be limited by bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting creditors’ rights generally
or by general equitable principles, whether considered in a proceeding at law or in equity and by an implied covenant of good faith
and fair dealing); and

 

(ii)                        No
consent, approval, order or authorization of, or declaration, filing or registration with, any governmental entity is required
to be obtained or made by it in connection with the execution, delivery or performance by it of this Series 2019-1 Supplement,
or the consummation by it of the transactions contemplated hereby, except such as have already been obtained.

 

Section 3.02.       Conditions
Precedent Satisfied. The Issuers hereby represent and warrant to the Indenture Trustee that, as of the Series Closing Date,
each of the conditions precedent set forth in the Master Indenture to the issuance of the Series 2019-1 Notes have been satisfied.

 

Section 3.03.      Collateral
Representations and Warranties. The Issuers hereby represent and warrant to the Indenture Trustee on behalf of the Series 2019-1
Noteholders that the representations and warranties set forth in Section 2.20 of the Master Indenture and Exhibit A hereto,
if any, are true and correct as of the Series Closing Date (or such other date as is set forth in any such representation or warranty)
with respect to the Properties and Leases Granted by such Issuer on the Series Closing Date, except as otherwise set forth in Schedule
I-B hereto.

 

    	 	11	 

     

    

 

ARTICLE
IV

 

Miscellaneous
Provisions

 

Section 4.01.      Ratification
of Indenture. As supplemented by this Series 2019-1 Supplement, the Master Indenture is in all respects ratified and confirmed
and the Indenture, as so supplemented by this Series 2019-1 Supplement shall be read, taken and construed as one and the same instrument.

 

Section 4.02.     Counterparts.
This Series 2019-1 Supplement may be executed in any number of counterparts, each of which shall be deemed to be an original regardless
of whether delivered in physical or electronic form, but all of which shall constitute one and the same instrument. Delivery of
an executed counterpart of a signature page of this Series 2019-1 Supplement in Portable Document Format (PDF) or by facsimile
transmission shall be as effective as delivery of a manually executed original counterpart of this Series 2019-1 Supplement.

 

Section 4.03.      Governing
Law. THIS SERIES 2019-1 SUPPLEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAW PROVISIONS THEREOF, OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

Section 4.04.      Beneficiaries.
As supplemented by this Series 2019-1 Supplement, the Master Indenture shall inure to the benefit of and be binding upon the parties
hereto, the Series 2019-1 Noteholders, and their respective successors and permitted assigns. No other Person shall have any right
or obligation hereunder.

 

Section 4.05.      Non-Petition.
Each Series 2019-1 Noteholder shall be deemed to have agreed, by acceptance of its Series 2019-1 Note, and the Indenture Trustee
hereby covenant and agrees, not to file or join in filing any petition in any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings, or other proceedings, under any federal or state bankruptcy or similar law in respect of any Issuer
for a period of two (2) years and thirty-one (31) days following payment in full of all of the Notes (including the Series 2019-1
Notes) issued or co-issued by the Issuers under the Indenture provided, however, that nothing in this Section
4.05 shall constitute a waiver of any right to indemnification, reimbursement or other payment from the Issuers pursuant to
the Indenture. In the event that any such Series 2019-1 Noteholder or the Indenture Trustee takes action in violation of this Section
4.05, the applicable Issuer, shall file or cause to be filed an answer with the bankruptcy court or otherwise properly contesting
the filing of such a petition by any such Series 2019-1 Noteholder or the Indenture Trustee against such Issuer or the commencement
of such action and raising the defense that such Series 2019-1 Noteholder or the Indenture Trustee has agreed in writing not to
take such action and should be estopped and precluded therefrom and such other defenses, if any, as its counsel advises that it
may assert. The provisions of this Section 4.05 shall survive the termination of the Indenture, and the resignation or removal
of the Indenture Trustee. Nothing contained herein shall preclude participation by any Series 2019-1 Noteholder or the Indenture
Trustee in the assertion or defense of its claims in any such proceeding involving any Issuer.

 

    	 	12	 

     

    

 

Section 4.06.      Non-Recourse.
Notwithstanding anything to the contrary herein or otherwise in the Indenture, the Series 2019-1 Notes are nonrecourse obligations
solely of the Issuers and shall be payable only from the Collateral Pool. Upon the exhaustion of the Collateral included in the
Collateral Pool, any liabilities of the Issuers hereunder shall be extinguished. No recourse shall be had for the payment of any
amount owing in respect of any fee hereunder or any other obligation or claim arising out of or based upon the Indenture against
any member, employee, officer or director of the Issuers. Fees, expenses, costs or other obligations payable by the Issues hereunder
shall be payable by the Issuers only to the extent that funds are then available or thereafter become available for such purpose
pursuant to Section 2.11 of the Master Indenture. In the event that sufficient funds are not available for their payment pursuant
to Section 2.11 of the Master Indenture, the excess unpaid amount of such fees, expenses, costs or other obligations shall in no
event constitute a claim (as defined in Section 101 of the Bankruptcy Code) against, or corporate obligation of, the Issuers. Nothing
in this Section 4.06 shall be construed to limit the Indenture Trustee, on behalf of the Noteholders, from exercising its
rights hereunder and otherwise in accordance with Article IV of the Master Indenture with respect to the Collateral Pool.

 

Section 4.07.       Amendments.
This Series 2019-1 Supplement may, from time to time, be amended, modified or waived in accordance with Article VIII of the Master
Indenture.

 

Section 4.08.       Notice
to the Rating Agency. Any communication provided for or permitted hereunder or otherwise pursuant to the Indenture shall be
in writing and, unless otherwise expressly provided herein, shall be deemed to have been duly given if delivered by courier or
mailed by first class mail, postage prepaid, or if transmitted by facsimile and confirmed in a writing delivered or mailed as aforesaid,
to, in the case of S&P Global, Inc., 55 Water Street, 41st Floor, New York, New York, 10004, Attention: Asset-Backed Surveillance
Department, facsimile number: (212) 438-2435; or, as to such Person, such other address or facsimile number as may hereafter be
furnished by such Person to the parties hereto in writing.

 

Section 4.09.      Assignment
of Owner’s Title Policy AFN ABSPROP001 hereby expressly collaterally transfers, sets over and assigns to the Indenture
Trustee on behalf of the Noteholders all of its right, title and interest in and to the owner’s title policy with respect
to the Properties identified as Children of America 2-Pack on the Property Schedule, which is issued in the name of AFN ABSPROP001’s
predecessor-in-interest. Upon the occurrence of a claim or any state of facts which could reasonably give rise to a claim under
such title policy, AFN ABSPROP001 shall execute and deliver such further documents as the Indenture Trustee reasonably requests
to further evidence the assignment made herein.

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

    	 	13	 

     

    

 

IN WITNESS WHEREOF, the Issuers
and the Indenture Trustee have caused this Series 2019-1 Supplement to be duly executed and delivered by their respective officers
thereunto duly authorized and their respective seals, duly attested, to be hereunto affixed, all as of the day and year first above
written.

 

	 	AFN ABSPROP001, LLC

 

	 	By:	American Finance Operating Partnership, L.P., a Delaware limited partnership, its sole member

 

	 	By:	American Finance Trust, Inc., a Maryland Corporation, its general partner

 

	 	By:	/s/ Katie P. Kurtz

		Name:
    Katie P. Kurtz
	 	Title:
    Chief Financial Officer

 

	 	AFN ABSPROP001-A, LLC

 

	 	By:  	American Finance Operating Partnership, L.P., a Delaware limited partnership, its sole member

 

	 	By:	American Finance Trust, Inc., a Maryland Corporation, its general partner

 

	 	By: 	/s/ Katie P. Kurtz

	 	Name:
    Katie P. Kurtz
	 	Title:
    Chief Financial Officer

  

	 	AFN ABSPROP001-B, LLC

 

	 	By:	American Finance Operating Partnership, L.P., a Delaware limited partnership, its sole member

 

	 	By:	American Finance Trust, Inc., a Maryland Corporation, its general partner

 

	 	By:	/s/ Katie P. Kurtz

	 	Name: Katie P. Kurtz
	 	Title:
    Chief Financial Officer

 

Series Supplement (AFIN 2019-1)

 

    	 		 

     

    

 

		CITIBANK, N.A., not in its individual capacity but solely as Indenture Trustee

 

	 	By:	/s/ James Polcari

	 	Name: James Polcari
	 	Title: Senior Trust Officer

 

Series Supplement (AFIN 2019-1)

 

    	 		 

     

    

 

SCHEDULE II-A

 

CLASS A-1 (AAA) NOTES

AMORTIZATION SCHEDULE

 

	Payment Date	 	Scheduled Class A-1 

Principal Balance	 
	Series Closing Date	 	$	121,000,000	 
	6/20/2019	 	 	120,899,167	 
	7/20/2019	 	 	120,798,334	 
	8/20/2019	 	 	120,697,501	 
	9/20/2019	 	 	120,596,668	 
	10/20/2019	 	 	120,495,835	 
	11/20/2019	 	 	120,395,002	 
	12/20/2019	 	 	120,294,169	 
	1/20/2020	 	 	120,193,336	 
	2/20/2020	 	 	120,092,503	 
	3/20/2020	 	 	119,991,670	 
	4/20/2020	 	 	119,890,837	 
	5/20/2020	 	 	119,790,004	 
	6/20/2020	 	 	119,689,171	 
	7/20/2020	 	 	119,588,338	 
	8/20/2020	 	 	119,487,505	 
	9/20/2020	 	 	119,386,672	 
	10/20/2020	 	 	119,285,839	 
	11/20/2020	 	 	119,185,006	 
	12/20/2020	 	 	119,084,173	 
	1/20/2021	 	 	118,983,340	 
	2/20/2021	 	 	118,882,507	 
	3/20/2021	 	 	118,781,674	 
	4/20/2021	 	 	118,680,841	 
	5/20/2021	 	 	118,580,008	 
	6/20/2021	 	 	118,530,101	 
	7/20/2021	 	 	118,480,194	 
	8/20/2021	 	 	118,430,287	 
	9/20/2021	 	 	118,380,380	 
	10/20/2021	 	 	118,330,473	 
	11/20/2021	 	 	118,280,566	 
	12/20/2021	 	 	118,230,659	 
	1/20/2022	 	 	118,180,752	 
	2/20/2022	 	 	118,130,845	 
	3/20/2022	 	 	118,080,938	 
	4/20/2022	 	 	118,031,031	 

 

    	 	II-A-1	 

     

    

 

	Payment Date	 	Scheduled Class A-1 

Principal Balance	 
	5/20/2022	 	 	117,981,124	 
	6/20/2022	 	 	117,931,217	 
	7/20/2022	 	 	117,881,310	 
	8/20/2022	 	 	117,831,403	 
	9/20/2022	 	 	117,781,496	 
	10/20/2022	 	 	117,731,589	 
	11/20/2022	 	 	117,681,682	 
	12/20/2022	 	 	117,631,775	 
	1/20/2023	 	 	117,581,868	 
	2/20/2023	 	 	117,531,961	 
	3/20/2023	 	 	117,482,054	 
	4/20/2023	 	 	117,432,147	 
	5/20/2023	 	 	117,382,240	 
	6/20/2023	 	 	117,332,333	 
	7/20/2023	 	 	117,282,426	 
	8/20/2023	 	 	117,232,519	 
	9/20/2023	 	 	117,182,612	 
	10/20/2023	 	 	117,132,705	 
	11/20/2023	 	 	117,082,798	 
	12/20/2023	 	 	117,032,891	 
	1/20/2024	 	 	116,982,984	 
	2/20/2024	 	 	116,933,077	 
	3/20/2024	 	 	116,883,170	 
	4/20/2024	 	 	116,833,263	 
	5/20/2024	 	 	116,783,356	 
	6/20/2024	 	 	116,733,449	 
	7/20/2024	 	 	116,683,542	 
	8/20/2024	 	 	116,633,635	 
	9/20/2024	 	 	116,583,728	 
	10/20/2024	 	 	116,533,821	 
	11/20/2024	 	 	116,483,914	 
	12/20/2024	 	 	116,434,007	 
	1/20/2025	 	 	116,384,100	 
	2/20/2025	 	 	116,334,193	 
	3/20/2025	 	 	116,284,286	 
	4/20/2025	 	 	116,234,379	 
	5/20/2025	 	 	116,184,472	 
	6/20/2025	 	 	116,134,565	 
	7/20/2025	 	 	116,084,658	 
	8/20/2025	 	 	116,034,751	 
	9/20/2025	 	 	115,984,844	 
	10/20/2025	 	 	115,934,937	 
	11/20/2025	 	 	115,885,030	 
	12/20/2025	 	 	115,835,123	 
	1/20/2026	 	 	115,785,216	 
	2/20/2026	 	 	115,735,309	 
	3/20/2026	 	 	115,685,402	 
	4/20/2026	 	 	115,635,495	 
	5/20/2026	 	 	-	 

 

    	 	II-A-2	 

     

    

 

SCHEDULE II-B

 

CLASS A-2 (A) NOTES

AMORTIZATION SCHEDULE

 

	Payment Date	 	Scheduled Class A-2 

Principal Balance	 
	Series Closing Date	 	$	121,000,000.00	 
	6/20/2019	 	 	121,000,000.00	 
	7/20/2019	 	 	121,000,000.00	 
	8/20/2019	 	 	121,000,000.00	 
	9/20/2019	 	 	121,000,000.00	 
	10/20/2019	 	 	121,000,000.00	 
	11/20/2019	 	 	121,000,000.00	 
	12/20/2019	 	 	121,000,000.00	 
	1/20/2020	 	 	121,000,000.00	 
	2/20/2020	 	 	121,000,000.00	 
	3/20/2020	 	 	121,000,000.00	 
	4/20/2020	 	 	121,000,000.00	 
	5/20/2020	 	 	121,000,000.00	 
	6/20/2020	 	 	121,000,000.00	 
	7/20/2020	 	 	121,000,000.00	 
	8/20/2020	 	 	121,000,000.00	 
	9/20/2020	 	 	121,000,000.00	 
	10/20/2020	 	 	121,000,000.00	 
	11/20/2020	 	 	121,000,000.00	 
	12/20/2020	 	 	121,000,000.00	 
	1/20/2021	 	 	121,000,000.00	 
	2/20/2021	 	 	121,000,000.00	 
	3/20/2021	 	 	121,000,000.00	 
	4/20/2021	 	 	121,000,000.00	 
	5/20/2021	 	 	121,000,000.00	 
	6/20/2021	 	 	120,949,074.00	 
	7/20/2021	 	 	120,898,148.00	 
	8/20/2021	 	 	120,847,222.00	 
	9/20/2021	 	 	120,796,296.00	 
	10/20/2021	 	 	120,745,370.00	 
	11/20/2021	 	 	120,694,444.00	 
	12/20/2021	 	 	120,643,518.00	 
	1/20/2022	 	 	120,592,592.00	 
	2/20/2022	 	 	120,541,666.00	 
	3/20/2022	 	 	120,490,740.00	 
	4/20/2022	 	 	120,439,814.00	 
	5/20/2022	 	 	120,388,888.00	 
	6/20/2022	 	 	120,337,962.00	 

 

    	 	II-B-1	 

     

    

 

	Payment Date	 	Scheduled Class A-2 

Principal Balance	 
	7/20/2022	 	 	120,287,036.00	 
	8/20/2022	 	 	120,236,110.00	 
	9/20/2022	 	 	120,185,184.00	 
	10/20/2022	 	 	120,134,258.00	 
	11/20/2022	 	 	120,083,332.00	 
	12/20/2022	 	 	120,032,406.00	 
	1/20/2023	 	 	119,981,480.00	 
	2/20/2023	 	 	119,930,554.00	 
	3/20/2023	 	 	119,879,628.00	 
	4/20/2023	 	 	119,828,702.00	 
	5/20/2023	 	 	119,777,776.00	 
	6/20/2023	 	 	119,726,850.00	 
	7/20/2023	 	 	119,675,924.00	 
	8/20/2023	 	 	119,624,998.00	 
	9/20/2023	 	 	119,574,072.00	 
	10/20/2023	 	 	119,523,146.00	 
	11/20/2023	 	 	119,472,220.00	 
	12/20/2023	 	 	119,421,294.00	 
	1/20/2024	 	 	119,370,368.00	 
	2/20/2024	 	 	119,319,442.00	 
	3/20/2024	 	 	119,268,516.00	 
	4/20/2024	 	 	119,217,590.00	 
	5/20/2024	 	 	119,166,664.00	 
	6/20/2024	 	 	119,115,738.00	 
	7/20/2024	 	 	119,064,812.00	 
	8/20/2024	 	 	119,013,886.00	 
	9/20/2024	 	 	118,962,960.00	 
	10/20/2024	 	 	118,912,034.00	 
	11/20/2024	 	 	118,861,108.00	 
	12/20/2024	 	 	118,810,182.00	 
	1/20/2025	 	 	118,759,256.00	 
	2/20/2025	 	 	118,708,330.00	 
	3/20/2025	 	 	118,657,404.00	 
	4/20/2025	 	 	118,606,478.00	 
	5/20/2025	 	 	118,555,552.00	 
	6/20/2025	 	 	118,504,626.00	 
	7/20/2025	 	 	118,453,700.00	 
	8/20/2025	 	 	118,402,774.00	 
	9/20/2025	 	 	118,351,848.00	 
	10/20/2025	 	 	118,300,922.00	 
	11/20/2025	 	 	118,249,996.00	 
	12/20/2025	 	 	118,199,070.00	 
	1/20/2026	 	 	118,148,144.00	 

 

    	 	II-B-2	 

     

    

 

	Payment Date	 	Scheduled Class A-2 

Principal Balance	 
	2/20/2026	 	 	118,097,218.00	 
	3/20/2026	 	 	118,046,292.00	 
	4/20/2026	 	 	117,995,366.00	 
	5/20/2026	 	 	117,944,440.00	 
	6/20/2026	 	 	117,893,514.00	 
	7/20/2026	 	 	117,842,588.00	 
	8/20/2026	 	 	117,791,662.00	 
	9/20/2026	 	 	117,740,736.00	 
	10/20/2026	 	 	117,689,810.00	 
	11/20/2026	 	 	117,638,884.00	 
	12/20/2026	 	 	117,587,958.00	 
	1/20/2027	 	 	117,537,032.00	 
	2/20/2027	 	 	117,486,106.00	 
	3/20/2027	 	 	117,435,180.00	 
	4/20/2027	 	 	117,384,254.00	 
	5/20/2027	 	 	117,333,328.00	 
	6/20/2027	 	 	117,282,402.00	 
	7/20/2027	 	 	117,231,476.00	 
	8/20/2027	 	 	117,180,550.00	 
	9/20/2027	 	 	117,129,624.00	 
	10/20/2027	 	 	117,078,698.00	 
	11/20/2027	 	 	117,027,772.00	 
	12/20/2027	 	 	116,976,846.00	 
	1/20/2028	 	 	116,925,920.00	 
	2/20/2028	 	 	116,874,994.00	 
	3/20/2028	 	 	116,824,068.00	 
	4/20/2028	 	 	116,773,142.00	 
	5/20/2028	 	 	116,722,216.00	 
	6/20/2028	 	 	116,671,290.00	 
	7/20/2028	 	 	116,620,364.00	 
	8/20/2028	 	 	116,569,438.00	 
	9/20/2028	 	 	116,518,512.00	 
	10/20/2028	 	 	116,467,586.00	 
	11/20/2028	 	 	116,416,660.00	 
	12/20/2028	 	 	116,365,734.00	 
	1/20/2029	 	 	116,314,808.00	 
	2/20/2029	 	 	116,263,882.00	 
	3/20/2029	 	 	116,212,956.00	 
	4/20/2029	 	 	116,162,030.00	 
	5/20/2029	 	 	-	 

 

    	 	II-B-3Exhibit 10.1

 

EXECUTION VERSION

 

GUARANTY

 

This
GUARANTY (this “Guaranty”) is executed as of May 30, 2019, by American
Finance Operating Partnership, L.P., a Delaware limited partnership (the “Support Provider”), for
the benefit of CITIBANK, N.A., a national banking association, as Indenture Trustee (“Indenture Trustee”)
under the Indenture (as defined below) for the benefit of the holders of the Notes (as hereinafter
defined) (the “Noteholders”).

 

WITNESSETH:

 

WHEREAS, pursuant to
an Indenture, dated May 30, 2019 (as from time to time may be amended
or supplemented, the “Master Indenture”), by and among AFN ABSPROP001, LLC (“AFN”), AFN ABSPROP001-A,
LLC (“AFN-A”), AFN ABSPROP001-B, LLC (“AFN-B”; collectively with AFN, AFN-A, and any other
party designated as an “Issuer” in any Series Supplement, the “Issuers”) and the Indenture Trustee,
as supplemented by the Series 2019-1 Supplement (“Series 2019-1 Supplement”), dated as of May
30, 2019, among AFN, AFN-A, AFN-B (collectively, the “Series 2019-1 Issuers”) and the Indenture Trustee
(together with the Master Indenture and any other indenture supplement thereto, the “Indenture”), the Series
2019-1 Issuers have issued their Net-Lease Mortgage Notes, Series 2019-1 (the “Series 2019-1 Notes”) and the
Issuers in the future may issue or co-issue additional series of notes (“Related Series Notes” and, together
with the Series 2019-1 Notes, the “Notes”). Such indebtedness of the Issuers to the Noteholders will be secured
by, among other things, all of the Issuers’ right, title and interest in the Properties and the related Leases;

 

WHEREAS, the Indenture
requires, as a condition of the issuance of the Notes, among other things, that the Support Provider execute and provide to Indenture
Trustee this Guaranty;

 

WHEREAS, the Support
Provider is the owner of a direct or indirect interest in Issuers, and Support Provider will directly benefit from the issuance
of indebtedness of Issuers evidenced by the Notes (such indebtedness, “Debt”);

 

WHEREAS, capitalized
terms used herein but not otherwise defined shall have the meaning specified in the Indenture or, if not defined therein, in the
Master Indenture or the Property Management Agreement, as the context requires;

 

NOW, THEREFORE, as
an inducement to the Noteholders to acquire the Notes, and to extend such additional credit as may from time to time be extended
under the Master Indenture and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby
acknowledged, the parties do hereby agree as follows:

 

     

     

    

 

ARTICLE I

NATURE AND SCOPE OF GUARANTY

 

1.1.        Guaranty
of Obligation. The Support Provider hereby irrevocably and unconditionally guarantees
to the Indenture Trustee and its successors and assigns the payment and the full and prompt performance of the Guaranteed Obligations
as and when the same shall be due and payable, whether by lapse of time, by acceleration of maturity or otherwise. Support Provider
hereby irrevocably and unconditionally covenants and agrees that it is liable for the Guaranteed Obligations as a primary obligor.

 

1.2.        Definition
of Guaranteed Obligations. (a) As used herein, the term “Guaranteed Obligations” means the obligations
or liabilities of Issuers to Indenture Trustee for any loss, damage, cost, expense, liability, claim or other obligation incurred
by Indenture Trustee (including but not limited to attorneys’ fees and costs reasonably incurred) arising out of or in connection
with the following:

 

(i)          fraud
or intentional misrepresentation by any Issuer or Support Provider in connection with the Debt;

 

(ii)         the
gross negligence or willful misconduct or bad faith of any Issuer;

 

(iii)        intentional
destruction or waste of the Properties by any Issuer;

 

(iv)        the
breach of any representation, warranty, covenant or indemnification provision in the Indenture concerning Environmental Laws, Hazardous
Substances or Asbestos and, with respect to any Property operating in the NAICS industry group Gas/Convenience Stores, any representation,
warranty, covenant or indemnification with respect to the required insurance policies;

 

(v)         the
removal or disposal of any portion of any Property during the continuation of an Event of Default (other than as permitted by the
Indenture and the Property Management Agreement);

 

(vi)        the
misapplication or conversion by any Issuer of (A) any insurance proceeds paid by reason of any loss, damage or destruction to the
Properties, (B) any awards or other amounts received in connection with the condemnation of all or a portion of the Properties,
(C) any Monthly Lease Payments following an Event of Default, (D) any Monthly Lease Payments paid more than one month in advance,
(E) premiums for the Property Insurance Policies (as defined in the Property Management Agreement) required under the Property
Management Agreement and received by such Issuer from any third party or Tenant under the Leases (as defined in the Property Management
Agreement) or (F) any funds received by such Issuer for payment of Taxes or other charges that can create liens on any portion
of the Properties;

 

    	 	2	 

     

    

 

(vii)       any
security deposits (including letters of credit) collected with respect to any Property which are not delivered to Indenture Trustee
upon a foreclosure of such Property or action in lieu thereof, except to the extent any such security deposits were applied in
accordance with the terms and conditions of any of the Leases prior to the occurrence of the Event of Default that gave rise to
such foreclosure or action in lieu thereof; and

 

(viii)      any
lis pendens that has been filed against the Properties identified as “Children of America 2-Pack” on the Property
Schedule or any adverse judgment arising from the related litigation.

 

(b)          In
addition, the Support Provider shall guaranty and be liable for the full amount of the Debt in the event that within ninety (90)
days from the date hereof, (A) a receiver, liquidator or trustee of any Issuer or Support Provider shall be appointed at the request
of, or with the consent of, such Issuer or Support Provider, (B) any voluntary petition for bankruptcy, reorganization or arrangement
pursuant to federal bankruptcy law, or any similar federal or state law, shall be filed by or against, consented to, or acquiesced
in by, any Issuer or Support Provider or (C) any proceeding for the dissolution or liquidation of any Issuer or Support Provider
shall be instituted by such Issuer or Support Provider.

 

(c)          In
the event of a breach by any Issuer of its obligation to cure a Collateral Defect (as defined in the Property Management Agreement)
or cause a release or substitution of the related Property as required under the Property Management Agreement, the Support Provider
shall guaranty and be liable for curing such breach or exchanging one or more Qualified Substitute Properties for such Property
or shall be obligated to purchase the related Property for the Payoff Amount (as defined in the Property Management Agreement).

 

(d)          Any
obligations or liabilities incurred by Support Provider under subparagraphs (b) and (c) immediately above shall be included in
the definition of “Guaranteed Obligations”.

 

(e)          Notwithstanding
anything to the contrary in any of the Transaction Documents, Indenture Trustee shall not be deemed to have waived any right which
Indenture Trustee may have under Section 506(a), 506(b), 1111(b) or any other provisions of the U.S. Bankruptcy Code to file a
claim for the full amount of the Debt secured by the Mortgages or to require that all collateral shall continue to secure all of
the Debt owing to Indenture Trustee in accordance with the Transaction Documents.

 

    	 	3	 

     

    

 

1.3.          Nature
of Guaranty. This Guaranty is an irrevocable, absolute, continuing guaranty of payment and performance and not
a guaranty of collection. This Guaranty may not be revoked by Support Provider and shall continue to be effective with respect
to any Guaranteed Obligations arising or created after any attempted revocation by Support Provider and after (if Support Provider
is a natural person) Support Provider’s death (in which event this Guaranty shall be binding upon Support Provider’s
estate and Support Provider’s legal representatives and heirs). The fact that at any time or from time to time the Guaranteed
Obligations may be increased or reduced shall not release or discharge the obligation of Support Provider to Indenture Trustee
with respect to the Guaranteed Obligations. This Guaranty may be enforced by Indenture Trustee and any subsequent holder of the
Notes and shall not be discharged by the assignment or negotiation of all or part of the Notes.

 

1.4.          Guaranteed
Obligations Not Reduced by Offset. The Notes, the Guaranteed Obligations and the liabilities and obligations of
Support Provider to Indenture Trustee hereunder, shall not be reduced, discharged or released because or by reason of any existing
or future offset, claim or defense of Issuer, or any other party, against Indenture Trustee or any other party or against payment
of the Guaranteed Obligations, whether such offset, claim or defense arises in connection with the
Guaranteed Obligations (or the transactions creating the Guaranteed Obligations) or otherwise.

 

1.5.          Payment
By Support Provider. If all or any part of the Guaranteed Obligations shall not be punctually paid when due, whether
at demand, maturity, acceleration or otherwise, Support Provider shall, immediately upon demand by Indenture Trustee, and without
presentment, protest, notice of protest, notice of non-payment, notice of intention to accelerate the maturity, notice of acceleration
of the maturity, or any other notice whatsoever, pay in lawful money of the United States of America, the amount due on the Guaranteed
Obligations to Indenture Trustee at Indenture Trustee’s address as set forth herein. Such demand(s) may be made at any time
coincident with or after the time for payment of all or part of the Guaranteed Obligations, and may be made from time to time
with respect to the same or different items of Guaranteed Obligations. Such demand shall be deemed made, given and received if
made, given or received in accordance with the notice provisions hereof.

 

    	 	4	 

     

    

 

1.6.          No
Duty To Pursue Others. It shall not be necessary for Indenture Trustee (and Support Provider hereby waives any
rights which Support Provider may have to require Indenture Trustee), in order to enforce the obligations of Support Provider
hereunder, first to (i) institute suit or exhaust its remedies against Issuers or others liable on the Debt or the Guaranteed
Obligations or any other person, (ii) enforce Indenture Trustee’s rights against any collateral which shall ever have been
given to secure the Debt, (iii) enforce Indenture Trustee’s rights against any other guarantors of the Guaranteed Obligations,
(iv) join Issuers or any others liable on the Guaranteed Obligations in any action seeking to enforce this Guaranty, (v) exhaust
any remedies available to Indenture Trustee against any collateral which shall ever have been given to secure the Debt, or (vi)
resort to any other means of obtaining payment of the Guaranteed Obligations. Indenture Trustee shall not be required to mitigate
damages or take any other action to reduce, collect or enforce the Guaranteed Obligations.

 

1.7.          Waivers. Support Provider agrees to the provisions of the Transaction Documents, and hereby waives notice of (i) any loans or advances
made by Indenture Trustee to Issuer, (ii) acceptance of this Guaranty, (iii) any amendment or extension of the Notes, the Indenture,
the Mortgages or of any other Transaction Documents, (iv) the execution and delivery by any Issuer and Indenture Trustee of any
other loan or credit agreement or of any Issuer’s execution and delivery of any promissory notes or other documents arising
under the Transaction Documents or in connection with the Properties, (v) the occurrence of any breach by any Issuer or a Default
or an Event of Default, (vi) Indenture Trustee’s transfer or disposition of the Guaranteed Obligations, or any part thereof,
(vii) sale or foreclosure (or posting or advertising for sale or foreclosure) of any collateral for the Guaranteed Obligations,
(viii) protest, proof of non-payment or default by any Issuer or any other party, (ix) any other action at any time taken or omitted
by Indenture Trustee, and, generally, all presentments, demands and notices of every kind in connection with this Guaranty, the
Transaction Documents, any documents or agreements evidencing, securing or relating to any of the Guaranteed Obligations and the
obligations hereby guaranteed, or (x) existence or creation or nonpayment of any of the Guaranteed Obligations.

 

1.8.          Payment
of Expenses. In the event that
Support Provider should breach or fail to timely perform any provisions of this Guaranty,
Support Provider shall, promptly upon demand by Indenture Trustee, pay Indenture Trustee all reasonable costs and expenses
(including but not limited to court costs and attorneys’ fees) incurred by Indenture Trustee in the enforcement hereof
or the preservation of Indenture Trustee’s rights hereunder. The covenant contained in this Section 1.8 shall
survive the payment and performance of the Guaranteed Obligations.

 

1.9.          Effect
of Bankruptcy. In the event that, pursuant to any insolvency, bankruptcy, reorganization, receivership or other
debtor relief law, or any judgment, order or decision thereunder, Indenture Trustee must rescind or restore any payment, or any
part thereof, received by Indenture Trustee in satisfaction of the Guaranteed Obligations, as set forth herein, any prior release
or discharge from the terms of this Guaranty given to Support Provider by Indenture Trustee shall be without effect, and this
Guaranty shall remain in full force and effect. It is the intention of Issuers and Support Provider that Support Provider’s
obligations hereunder shall not be discharged except by Support Provider’s performance of such obligations and then only
to the extent of such performance.

 

    	 	5	 

     

    

 

1.10.        Waiver
of Subrogation, Reimbursement and Contribution. Notwithstanding anything to the contrary contained in this
Guaranty, Support Provider hereby unconditionally and irrevocably waives, releases and abrogates any and all rights it may
now or hereafter have under any agreement, at law or in equity (including, without limitation, any law subrogating Support
Provider to the rights of Indenture Trustee), to assert any claim against or seek contribution, indemnification or any other
form of reimbursement from Issuers or any other party liable for payment of any or all of the Guaranteed Obligations for any
payment made by Support Provider under or in connection with this Guaranty or otherwise.

 

1.11.         Issuers.
The term “Issuers” as used herein shall include any new or successor corporation, association,
limited liability company, partnership (general or limited), joint venture, trust or other individual or organization formed
as a result of any merger, reorganization, sale, transfer, devise, gift or bequest of any Issuer or any interest in any
Issuer.

 

ARTICLE
II.

 

EVENTS AND CIRCUMSTANCES NOT REDUCING

OR DISCHARGING SUPPORT PROVIDER’S OBLIGATIONS

 

Support Provider hereby
consents and agrees to each of the following, and agrees that Support Provider’s obligations under this Guaranty shall not
be released, diminished, impaired, reduced or adversely affected by any of the following, and waives any common law, equitable,
statutory or other rights (including without limitation rights to notice) which Support Provider might otherwise have as a result
of or in connection with any of the following:

 

2.1.          Modifications.
Any renewal, extension, increase, modification, alteration or rearrangement of all or any part of the Notes, the
Indenture, the Mortgages, the other Transaction Documents, or any other document, instrument, contract or understanding
between any Issuer and Indenture Trustee, or any other parties, pertaining to the Guaranteed Obligations or any failure of
Indenture Trustee to notify Support Provider of any such action.

 

2.2.          Condition
of Issuers or Support Provider. The insolvency, bankruptcy, arrangement, adjustment, composition, liquidation,
disability, dissolution or lack of power of any Issuer, Support Provider or any other party at any time liable for the payment
of all or part of the Guaranteed Obligations; or any dissolution of any Issuer or Support Provider, or any sale, lease or transfer
of any or all of the assets of any Issuer or Support Provider, or any changes in the shareholders, partners or members of any
Issuer or Support Provider; or any reorganization of any Issuer or Support Provider.

 

    	 	6	 

     

    

 

2.3.          Invalidity
of Guaranteed Obligations. The invalidity, illegality or unenforceability of all or any part of the Guaranteed Obligations,
or any document or agreement executed in connection with the Guaranteed Obligations, for any reason whatsoever, including without
limitation the fact that (i) the Guaranteed Obligations, or any part thereof, exceeds the amount permitted by law, (ii) the act
of creating the Guaranteed Obligations or any part thereof is ultra vires, (iii) the officers or representatives executing the
Notes, the Indenture, the Mortgages or the other Transaction Documents or otherwise creating the Guaranteed Obligations acted
in excess of their authority, (iv) the Guaranteed Obligations violate applicable usury laws, (v) Issuers have valid defenses,
claims or offsets (whether at law, in equity or by agreement) which render the Guaranteed Obligations wholly or partially uncollectible
from Issuers, (vi) the creation, performance or repayment, of the Guaranteed Obligations (or the execution, delivery and performance
of any document or instrument representing part of the Guaranteed Obligations or executed in connection with the Guaranteed Obligations,
or given to secure the repayment of the Guaranteed Obligations) is illegal, uncollectible or unenforceable, or (vii) the Notes,
the Indenture, the Mortgages or any of the other Transaction Documents have been forged or otherwise are irregular or not genuine
or authentic, it being agreed that Support Provider shall remain liable hereon regardless of whether Issuers or any other person
be found not liable on the Guaranteed Obligations or any part thereof for any reason.

 

2.4.          Release
of Obligors. Any full or partial release of the liability of Issuers on the Guaranteed Obligations, or any part
thereof, or of any co-guarantors, or any other person or entity now or hereafter liable, whether directly or indirectly, jointly,
severally, or jointly and severally, to pay, perform, guarantee or assure the payment of the Guaranteed Obligations, or any part
thereof, it being recognized, acknowledged and agreed by Support Provider that Support Provider may be required to pay the Guaranteed
Obligations in full without assistance or support of any other party, and Support Provider has not been induced to enter into
this Guaranty on the basis of a contemplation, belief, understanding or agreement that other parties will be liable to pay or
perform the Guaranteed Obligations, or that Indenture Trustee will look to other parties to pay or perform the Guaranteed Obligations.

 

2.5.          Other
Collateral. The taking or accepting of any other security, collateral or guaranty, or other assurance of payment,
for all or any part of the Guaranteed Obligations.

 

2.6.          Release
of Collateral. Any release, surrender, exchange, subordination, deterioration, waste, loss or impairment (including
without limitation negligent, willful, unreasonable or unjustifiable impairment) of any collateral, property or security at any
time existing in connection with, or assuring or securing payment of, all or any part of the Guaranteed Obligations.

 

    	 	7	 

     

    

 

2.7.          Care
and Diligence. The failure of Indenture Trustee or any other party to exercise diligence or reasonable care in
the preservation, protection, enforcement, sale or other handling or treatment of all or any part of such collateral, property
or security, including but not limited to any neglect, delay, omission, failure or refusal of Indenture Trustee (i) to take or
prosecute any action for the collection of any of the Guaranteed Obligations or (ii) to foreclose, or initiate any action to foreclose,
or, once commenced, prosecute to completion any action to foreclose upon any security therefor, or (iii) to take or prosecute
any action in connection with any instrument or agreement evidencing or securing all or any part of the Guaranteed Obligations.

 

2.8.          Unenforceability.
The fact that any collateral, security, security interest or lien contemplated or intended to be given, created or granted as
security for the repayment of the Guaranteed Obligations, or any part thereof, shall not be properly perfected or created, or
shall prove to be unenforceable or subordinate to any other security interest or lien, it being recognized and agreed by
Support Provider that Support Provider is not entering into this Guaranty in reliance on, or in contemplation of the benefits
of, the validity, enforceability, collectibility or value of any of the collateral for the Guaranteed Obligations.

 

2.9.          Merger. The reorganization, merger or consolidation of any Issuer into or with any other corporation or entity.

 

2.10.        Preference.
Any payment by any Issuer to Indenture Trustee is held to constitute a preference under bankruptcy laws, or for any
reason Indenture Trustee is required to refund such payment or pay such amount to such Issuer or someone else.

 

2.11.        Other
Actions Taken or Omitted. Any other action taken or omitted to be taken with respect to the Transaction Documents,
the Guaranteed Obligations, or the security and collateral therefor, whether or not such action or omission prejudices Support
Provider or increases the likelihood that Support Provider will be required to pay the Guaranteed Obligations pursuant to the
terms hereof.

 

It is the unambiguous and unequivocal intention
of Support Provider that Support Provider shall be obligated to pay the Guaranteed Obligations when due, notwithstanding any occurrence,
circumstance, event, action, or omission whatsoever, whether contemplated or uncontemplated, and whether or not otherwise or particularly
described herein, which obligation shall be deemed satisfied only upon the full and final payment and satisfaction of the Guaranteed
Obligations.

 

    	 	8	 

     

    

 

ARTICLE III.

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

To induce Indenture
Trustee to enter into the Transaction Documents, Support Provider represents and warrants to, and covenants with, Indenture Trustee
as follows:

 

3.1.          Benefit.
Support Provider is an Affiliate of Issuers, is the owner of a direct or indirect interest in Issuers, and has received,
or will receive, direct or indirect benefit from the making of this Guaranty with respect to the Guaranteed Obligations.

 

3.2.          Familiarity
and Reliance. Support Provider is familiar with, and has independently reviewed books and records regarding, the
financial condition of Issuers and is familiar with the value of any and all collateral intended
to be created as security for the payment of the Notes or Guaranteed Obligations; however, Support Provider is not relying on
such financial condition or the collateral as an inducement to enter into this Guaranty.

 

3.3.          No
Representation By Indenture Trustee. Neither Indenture Trustee nor any other party has made any representation,
warranty or statement to Support Provider in order to induce Support Provider to execute this Guaranty.

 

3.4.          Support
Provider’s Financial Condition. As of the date hereof, and after giving effect to this Guaranty and the contingent
obligation evidenced hereby, Support Provider is, and will be, solvent, and has and will have assets which, fairly valued, exceed
its obligations, liabilities (including contingent liabilities) and debts.

 

3.5.          Organization.
Support Provider has been duly organized and is validly existing and in good standing under the laws of the state of its
incorporation with requisite power and authority to own its assets and to transact the businesses in which it is now engaged.
Support Provider is duly qualified to do business and is in good standing in each jurisdiction where it is required to be so
qualified in connection with its assets, businesses and operations. Support Provider possesses all rights, licenses, permits
and authorizations, governmental or otherwise, necessary to entitle it to own its assets and to transact the businesses in
which it is now engaged.

 

3.6.          Proceedings.
Support Provider has taken all necessary action to authorize its execution, delivery and performance of this Guaranty.
Support Provider has all necessary power, authority and legal right to execute, deliver and perform its obligations under
this Guaranty. This Guaranty has been duly executed and delivered by or on behalf of Support Provider and constitutes the
legal, valid and binding obligation of Support Provider enforceable against Support Provider in accordance with its
respective terms, subject only to applicable bankruptcy, insolvency and similar laws affecting rights of creditors generally,
and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law).

 

    	 	9	 

     

    

 

3.7.          Legality.
The execution, delivery and performance by Support Provider of this Guaranty and the consummation of the transactions
contemplated hereunder do not, and will not, contravene or conflict with any law, statute or regulation whatsoever to which
Support Provider is subject or constitute a default (or an event which with notice or lapse of time or both would constitute
a default) under, or result in the breach of, or result in the imposition of a lien on any of its property under, any
indenture, mortgage, deed of trust, charge, lien, or any contract, agreement or other instrument to which Support Provider is
a party or which may be applicable to Support Provider. This Guaranty is a legal and binding obligation of Support Provider
and is enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general
application relating to the enforcement of creditors’ rights.

 

3.8.          Survival.
All representations and warranties made by Support Provider herein shall survive the execution hereof.

 

ARTICLE IV.

SUBORDINATION OF CERTAIN INDEBTEDNESS

 

4.1.          Subordination
of All Support Provider Claims. As used herein, the term “Support Provider Claims” shall mean all debts
and liabilities of Issuers to Support Provider, whether such debts and liabilities now exist or are hereafter incurred or arise,
or whether the obligations of Issuers thereon be direct, contingent, primary, secondary, several, joint and several, or otherwise,
and irrespective of whether such debts or liabilities be evidenced by note, contract, open account, or otherwise, and irrespective
of the person or persons in whose favor such debts or liabilities may, at their inception, have been, or may hereafter be created,
or the manner in which they have been or may hereafter be acquired by Support Provider. The Support Provider Claims shall include
without limitation all rights and claims of Support Provider against any Issuer (arising as a result of subrogation or otherwise)
as a result of Support Provider’s payment of all or a portion of the Guaranteed Obligations. During the existence of an
Event of Default, Support Provider shall not receive or collect, directly or indirectly, from Issuers or any other party any amount
upon the Support Provider Claims.

 

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4.2.          Claims
in Bankruptcy. In the event of receivership, bankruptcy, reorganization, arrangement, debtor’s relief, or
other insolvency proceedings involving Support Provider as debtor, Indenture Trustee shall have the right to prove its claim in
any such proceeding so as to establish its rights hereunder and receive directly from the receiver, trustee or other court custodian
dividends and payments which would otherwise be payable upon Support Provider Claims. Support Provider hereby assigns such dividends
and payments to Indenture Trustee. Should Indenture Trustee receive, for application upon the Guaranteed Obligations, any such
dividend or payment which is otherwise payable to Support Provider, and which, as between Issuers and Support Provider, shall
constitute a credit upon the Support Provider Claims, then upon payment to Indenture Trustee in full of the Guaranteed Obligations,
Support Provider shall become subrogated to the rights of Indenture Trustee to the extent that such payments to Indenture Trustee
on the Support Provider Claims have contributed toward the liquidation of the Guaranteed Obligations, and such subrogation shall
be with respect to that proportion of the Guaranteed Obligations which would have been unpaid if Indenture Trustee had not received
dividends or payments upon the Support Provider Claims.

 

4.3.          Payments
Held in Trust. In the event that, notwithstanding anything to the contrary in this Guaranty, Support Provider should
receive any funds, payment, claim or distribution which is prohibited by this Guaranty, Support Provider agrees to hold in trust
for Indenture Trustee an amount equal to the amount of all funds, payments, claims or distributions so received, and agrees that
it shall have absolutely no dominion over the amount of such funds, payments, claims or distributions so received except to pay
them promptly to Indenture Trustee, and Support Provider covenants promptly to pay the same to Indenture Trustee.

 

4.4.          Liens
Subordinate. Support Provider agrees that any liens, security interests, judgment liens, charges or other encumbrances
upon Issuers’ assets securing payment of the Support Provider Claims shall be and remain inferior and subordinate to any
liens, security interests, judgment liens, charges or other encumbrances upon Issuers’ assets securing payment of the Guaranteed
Obligations, regardless of whether such encumbrances in favor of Support Provider or Indenture Trustee presently exist or are
hereafter created or attach. Without the prior written consent of Indenture Trustee, Support Provider shall not (i) exercise or
enforce any creditor’s right it may have against Issuers, or (ii) foreclose, repossess, sequester or otherwise take steps
or institute any action or proceedings (judicial or otherwise, including without limitation the commencement of, or joinder in,
any liquidation, bankruptcy, rearrangement, debtor’s relief or insolvency proceeding) to enforce any liens, mortgages, deeds
of trust, security interests, collateral rights, judgments or other encumbrances on assets of Issuers held by Support Provider.

 

    	 	11	 

     

    

 

ARTICLE V.

MISCELLANEOUS

 

5.1.          Waiver.
No failure to exercise, and no delay in exercising, on the part of Indenture Trustee, any right
hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further
exercise thereof or the exercise of any other right. The rights of Indenture Trustee hereunder shall be in addition to all
other rights provided by law. No modification or waiver of any provision of this Guaranty, nor consent to departure
therefrom, shall be effective unless in writing and no such consent or waiver shall extend beyond the particular case and
purpose involved. No notice or demand given in any case shall constitute a waiver of the right to take other action in the
same, similar or other instances without such notice or demand.

 

5.2.          Notices.
Any notice, demand, statement, request or consent made hereunder shall be in writing, addressed to the address, as set forth below,
of the party to whom such notice is to be given, or to such other address as Support Provider or Indenture Trustee, as the case
may be, shall designate in writing, and shall be deemed to be received by the addressee on (i) the day such notice is personally
delivered to such addressee, (ii) the third (3rd) day following the day such notice is deposited with the United States postal
service first class certified mail, return receipt requested, or (iii) the day following the day on which such notice is delivered
to a nationally recognized overnight courier delivery service.

 

	If to Indenture Trustee:	
        Citibank, N.A.

        388 Greenwich Street, 14th Floor

        New York, New York 10013

        Attention:
        Agency & Trust - AFIN 2019-1

	 	 
	If to Support Provider:	
        American Finance Operating Partnership,
        L.P.

        405 Park Avenue

        3rd Floor

        New York, New York 10022 

 

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5.3.        GOVERNING
LAW.

 

(a)          THIS
GUARANTY WAS NEGOTIATED IN THE STATE OF NEW YORK AND THE PROCEEDS OF THE NOTE WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH
STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN
ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS
GUARANTY AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT LAWS) AND ANY APPLICABLE
LAW OF THE UNITED STATES OF AMERICA, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW
OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF THIS GUARANTY AND ALL OF THE OBLIGATIONS
ARISING HEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, SUPPORT PROVIDER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM
TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS GUARANTY, AND THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

(b)          ANY
LEGAL SUIT, ACTION OR PROCEEDING AGAINST SUPPORT PROVIDER ARISING OUT OF OR RELATING TO THIS GUARANTY SHALL BE INSTITUTED IN ANY
FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
LAW AND SUPPORT PROVIDER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF
ANY SUCH SUIT, ACTION OR PROCEEDING, AND SUPPORT PROVIDER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY
SUIT, ACTION OR PROCEEDING.

 

5.4.        Invalid
Provisions. If any provision of this Guaranty is held to be illegal, invalid, or unenforceable under present or future
laws effective during the term of this Guaranty, such provision shall be fully severable and this Guaranty shall be construed
and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Guaranty, and the remaining
provisions of this Guaranty shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable
provision or by its severance from this Guaranty, unless such continued effectiveness of this Guaranty, as modified, would be
contrary to the basic understandings and intentions of the parties as expressed herein.

 

5.5.        Amendments.
This Guaranty may be amended only by an instrument in writing executed by the party or an authorized representative of the party
against whom such amendment is sought to be enforced.

 

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5.6.          Parties
Bound; Assignment; Joint and Several. This Guaranty shall be binding upon and inure to the benefit of Indenture Trustee
and its successors, assigns and legal representatives; provided, however, that Support Provider may not, without the prior written
consent of Indenture Trustee, assign any of its rights, powers, duties or obligations hereunder. If Support Provider consists
of more than one person or party, the obligations and liabilities of each such person or party shall be joint and several.

 

5.7.          Headings.
Section headings are for convenience of reference only and shall in no way affect the interpretation of this Guaranty.

 

5.8.          Recitals.
The recital and introductory paragraphs hereof are a part hereof, form a basis for this Guaranty and shall be considered prima
facie evidence of the facts and documents referred to therein.

 

5.9.          Counterparts.
To facilitate execution, this Guaranty may be executed in as many counterparts as may be convenient or required. It shall not
be necessary that the signature of, or on behalf of, each party, or that the signature of all persons required to bind any party,
appear on each counterpart. All counterparts shall collectively constitute a single instrument. It shall not be necessary in making
proof of this Guaranty to produce or account for more than a single counterpart containing the respective signatures of, or on
behalf of, each of the parties hereto. Any signature page to any counterpart may be detached from such counterpart without impairing
the legal effect of the signatures thereon and thereafter attached to another counterpart identical thereto except having attached
to it additional signature pages.

 

5.10.        Rights
and Remedies. If Support Provider becomes liable for any indebtedness owing by Issuers to Indenture Trustee, by endorsement
or otherwise, other than under this Guaranty, such liability shall not be in any manner impaired or affected hereby and the rights
of Indenture Trustee hereunder shall be cumulative of any and all other rights that Indenture Trustee may ever have against Support
Provider. The exercise by Indenture Trustee of any right or remedy hereunder or under any other instrument, or at law or in equity,
shall not preclude the concurrent or subsequent exercise of any other right or remedy.

 

5.11.        ENTIRETY.
THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF SUPPORT PROVIDER AND INDENTURE TRUSTEE WITH RESPECT TO SUPPORT PROVIDER’S
GUARANTY OF THE GUARANTEED OBLIGATIONS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS,
WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY IS INTENDED BY SUPPORT PROVIDER AND INDENTURE TRUSTEE
AS A FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THIS GUARANTY, AND NO COURSE OF DEALING BETWEEN SUPPORT PROVIDER AND INDENTURE
TRUSTEE, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS
GUARANTY. THERE ARE NO ORAL AGREEMENTS BETWEEN SUPPORT PROVIDER AND INDENTURE TRUSTEE.

 

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5.12.        WAIVER
OF RIGHT TO TRIAL BY JURY. EACH OF SUPPORT PROVIDER AND INDENTURE TRUSTEE HEREBY AGREES NOT TO ELECT A TRIAL BY JURY
OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW
OR HEREAFTER EXIST WITH REGARD TO THIS GUARANTY, THE NOTE, THE DEED OF TRUST, OR THE OTHER TRANSACTION DOCUMENTS, OR ANY CLAIM,
COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY
BY EACH OF SUPPORT PROVIDER AND INDENTURE TRUSTEE, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO
WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH OF SUPPORT PROVIDER AND INDENTURE TRUSTEE IS HEREBY AUTHORIZED
TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY THE OTHER PARTY.

 

5.13.        Cooperation.
At the request of the Noteholders and to the extent not already required to be provided by Support Provider under the Transaction
Documents, Support Provider shall reasonably cooperate with Indenture Trustee, at Support Provider’s expense, in connection
with satisfying reasonable requirements of Indenture Trustee or the Rating Agencies in connection with the transactions contemplated
under the Transaction Documents (collectively, the “Securitization”) by providing such financial and other
information with respect to Support Provider as may be reasonably requested by the holder of the Notes or the Rating Agencies
or as may be necessary or appropriate in connection with the Securitization. Indenture Trustee shall be permitted to share all
such information with the investment banking firms, Rating Agencies, accounting firms, law firms and other third-party advisory
firms involved with the Debt and the Transaction Documents or the Securitization. It is understood that the information provided
by Support Provider to Indenture Trustee may ultimately be incorporated into the offering documents for the Securitization and
thus various investors may also see some or all of the information. Indenture Trustee and all of the aforesaid third-party advisors
and professional firms shall be entitled to rely on the information supplied by, or on behalf of, Support Provider in the form
as provided by Support Provider. Indenture Trustee may publicize the existence of the Debt in connection with its marketing for
the Securitization or otherwise as part of its business development.

 

[NO FURTHER TEXT ON THIS PAGE] 

 

    	 	15	 

     

    

 

EXECUTED as of the
day and year first above written.

 

	 	American Finance Operating Partnership, 

L.P., as Support Provider
	 	 	 	 
	 	By:	American Finance Trust, Inc., a Maryland Corporation, its general partner
	 	 	 	 
	 	 	By:	/s/ Michael R. Anderson
 
	 	 	Name: Michael R. Anderson
	 	 	Title: Authorized Signatory

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