Document:

Exhibit 10.3

 

LEASING AGREEMENT

 

THIS LEASING AGREEMENT
(this “Leasing Agreement”) is made as of September 25, 2014 by and between AMERICAN REALTY CAPITAL – RETAIL CENTERS
OF AMERICA II, INC., a Maryland corporation (the “Company”) and AMERICAN REALTY CAPITAL RETAIL II ADVISORS, LLC, a
Delaware limited liability company (the “Leasing Agent”). Capitalized terms used herein but not defined shall have
the meanings ascribed to them in the Property Management Agreement, dated the date hereof, by and between the Leasing Agent and
the Company (the “Property Management Agreement”).

 

	1.	Engagement.

 

	 	1.1.	Engagement.
    The Company hereby engages and retains the Leasing Agent to act as the sole and exclusive real estate broker in connection
    with the leasing of the Owners’ Properties on the terms of this Leasing Agreement, and the Leasing Agent accepts such
    engagement and agrees to perform such service on such terms; it being understood, that, the Leasing Agent may engage a third
    party (together with any Affiliate of such third party or other third party retained in accordance with a leasing agreement
    between the Leasing Agent and such third party, each a “Sub-Agent”) as the Leasing Agent deems necessary or desirable
    without the consent of the Company, and may delegate all or a portion of the services to be provided hereunder to such Sub-Agent.
    Any fees payable to a Sub-Agent (i) shall be the responsibility of the Leasing Agent out of payments received from the Company
    and (ii) may, at the instruction of the Leasing Agent, be deducted from the Operating Account or the fees payable hereunder
    and paid by the Owner to such Sub-Agent, or be paid directly by the Leasing Agent to such Sub-Agent, in the Leasing Agent’s
    sole discretion or as required pursuant to a leasing agreement between the Leasing Agent and a Sub-Agent. The Company agrees
    to fully cooperate with the Leasing Agent, each Sub-Agent and their agents and Cooperating Brokers (as defined below) with
    respect to the Leasing Agent’s efforts in leasing the Properties and to refer to the Leasing Agent all inquiries of
    anyone interested in any Property and to conduct all negotiations through the Leasing Agent. The Company further agrees to
    furnish the Leasing Agent such information concerning the Properties as the Leasing Agent may reasonably request from time
    to time as a result of inquiries by prospective tenants.

 

	 	1.2.	Leasing. This Leasing
    Agreement relates to leasing only.

 

	2.	Term.
    The initial term of this Leasing Agreement shall commence on the date hereof, shall continue in full force and effect for
    one (1) year, and shall be automatically renewed for an unlimited number of successive one (1) year periods, subject to earlier
    termination as hereinafter provided. The term of this Leasing Agreement may be extended for such additional periods of time
    as the parties agree to in writing.

 

	3.	Leasing.

 

	 	3.1.	Leasing Fees. The Company will pay to the Leasing Agent a leasing fee (the “Leasing Fee”) in an amount equal to the leasing fees charged by unaffiliated persons rendering comparable services in the same geographic location of the applicable Property for the Leasing Agent’s or a Sub-Agent’s, as applicable, services in leasing the Properties to third parties, which shall include taking into account the participation of Cooperating Brokers (as defined below), if applicable, and be determined based on evidence of comparable fees provided by the Leasing Agent and shall include taking into account the participation of Cooperating Brokers (as defined below), if applicable, and be subject to consent of the Owner, such consent not to be unreasonably withheld. Commissions shall be fully earned as of the date the lease is executed and shall be paid by the Company, or in the sole discretion of the Leasing Agent, by the Owner, on such date or, if customary for such geographic area then as follows: one half (1/2) of the commission shall be due upon execution of the lease by the Owner and tenant and one half (1/2) of the commission shall be due upon the earlier of (i) tenant’s opening for business at the premises, or (ii) the rent commencement date under the lease.

 

	 	3.2.	During Term. The Company shall pay the Leasing Agent the Leasing Fee, if, during the Term of this Leasing Agreement, a third party tenant is procured by the Leasing Agent or a Sub-Agent, and if such tenant and the Owner enter into a written lease covering all or part of the Property and if such lease is fully executed by the Owner and such tenant.

 

	 	 3.3.	After Expiration of Term. The Company shall pay the Leasing Agent the Leasing Fee if, within one hundred eighty (180) days after the expiration of the   Term or earlier termination of this Leasing Agreement, the Owner enters into a written lease covering all or part of the Property with any person or entity (including any to-be-established entity and/or single purpose entity affiliated with said person or entity) to whom the Leasing Agent or a Sub-Agent has submitted the Property prior to the expiration of the term of this Leasing Agreement or earlier termination of this Leasing Agreement in an effort to lease the Property (the “Prospective Tenants”) and such lease is fully executed by the Owner and the Prospective Tenant, provided the name of the Prospective Tenant is contained on the list described below. The Leasing Agent or a Sub-Agent shall, as a condition precedent to its rights and the Company's obligations under this Section 3.3, submit a written list of the Prospective Tenants containing full and complete names, addresses, telephone numbers and primary contact persons to the Company no later than ten (10) days following the expiration of the term of this Leasing Agreement or earlier termination of this Leasing Agreement. If the Owner enters into another listing or leasing agreement with another real estate broker with respect to the Property, the Owner shall exclude the Prospective Tenants under this Section 3.3 from any such other agreement for the period required herein.

 

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	 	3.4.	Terms of Lease. The Owner reserves the right to determine all terms, conditions and provisions of any lease and to reject any lease in its discretion.

 

	 	3.5.	Sale by Owner. Whenever the Owner shall sell or convey its interest in a Property or any part thereof, the obligation to pay any Leasing Fees under this Leasing Agreement from and after the date of such sale shall cease as of the date of such sale, provided that the Company shall not be absolved from liability for Leasing Fees earned, payable or due hereunder as of such date.

 

	 	3.6.	No Additional Payments. The compensation to the Leasing Agent provided herein includes all costs, taxes, fees and charges, and no additional payments shall be made to the Leasing Agent hereunder in connection with any lease.

 

	 	3.7.	Payment of Leasing Fees. The Leasing Fees shall be paid to the Leasing Agent in accordance with this Section 3. In accordance with and pursuant to Section 4.6, the Leasing Agent or a Sub-Agent shall prepare and submit an invoice to the Company which shall include a computation of the Leasing Fees payable to the Leasing Agent. The Company shall have the right to review such invoice and obtain any supporting documentation with respect thereto from the Leasing Agent. To the extent that the Company believes the computation provided by the Leasing Agent or a Sub-Agent is inconsistent with the computation permitted hereunder, the Company and the Leasing Agent or a Sub-Agent which provided the computation shall work together in good faith to reach a computation of such fees which is reasonably agreeable to both parties. If the Company and the Leasing Agent or a Sub-Agent, as the case may be, agree that any of the Leasing Fees paid to the Leasing Agent for a prior period exceeded the amount permitted hereunder, the Leasing Agent shall deduct the amount of such excess from the fees it is to be paid in accordance herewith for the then current period.

 

	4.	Duties and Authority of the Leasing Agent.

 

	 	4.1.	Leasing Functions. The Leasing Agent shall coordinate the leasing of the Properties and shall negotiate and use its commercially reasonable efforts to secure executed leases from qualified tenants, and to execute same on behalf of the Owner, if requested, for available space in the Properties, such lease to be in form and on terms approved by the Owner. The Leasing Agent shall be responsible for the hiring of all Sub-Agents, as determined by the Leasing Agent to be necessary for the leasing of the Properties, and to otherwise oversee and manage the leasing process on behalf of each Owner.

 

	 	4.2.	Duties; Standard of Performance. The Leasing Agent shall devote its commercially reasonable efforts to performing its duties hereunder to lease the Properties in a diligent, careful and professional manner. The services of the Leasing Agent are to be of a scope and quality not less than those generally performed by first class, professional leasing or listing managers of properties similar in type and quality to the Properties and located in the same market area as the Properties. The Leasing Agent will at all times act in good faith and in a commercially reasonable manner with respect to performing the leasing services hereunder with respect to the Properties.

 

	 	 4.3.	Deposits. The Leasing Agent is authorized to conditionally accept a deposit from any prospective tenant in connection with the presentation of a proposed written offer to the Owner, but neither the Company nor any other Owner shall thereby incur any liability or obligation to such proposed tenant, the Leasing Agent, or any other third party by reason of the acceptance of such a deposit by the Leasing Agent. The Leasing Agent will at all times act in good faith, in a commercially reasonable manner and in a fiduciary capacity with respect to the proper protection of and accounting for any deposit accepted by the Leasing Agent; it being understood , that, the Leasing Agent’s fiduciary relationship with each Owner Subsidiary is limited solely to the proper protection of and accounting for such deposits and the Leasing Agent owes no other fiduciary duties to the Owner or security holders of any Owner entity.

 

	 	4.4.	Leasing Plans

 

	 	4.4.1.	Within sixty (60) days of a Property becoming subject to this Leasing Agreement, the Leasing Agent shall prepare and submit, or cause to be prepared and submitted, to the Company a marketing and leasing plan with respect to each such Property (each a “Plan”) for the calendar year  (or portion thereof) immediately following such submission. Thereafter, on or before the date specified each year by the Company (but not later than November 1st), the Leasing Agent shall prepare and submit to the Company preliminary Plans for the next calendar year followed by final Plans for the next calendar year, incorporating any reasonable changes requested by the Company.  In connection with any acquisition of a Property by the Owner, the Leasing Agent will prepare a Plan for such Property for the remainder of the calendar year. Each Plan will be in the form approved by the Company prior to the date thereof.

 

	 	4.4.2.	The Company will approve or disapprove a Plan within a reasonable time after the receipt of the Plan, but not later than thirty (30) days after the submission thereof to the Company. The Leasing Agent will make any reasonable changes to each Plan that are requested by the Company. At such time as the Company shall request, which in no event shall exceed three (3) requests per calendar year, the Leasing Agent shall submit to the Company for its approval an updated Plan incorporating such changes as shall be necessary to reflect changes occurring subsequent to the prior Plan during such 

 

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	 	 	period. If the Company does not disapprove of such revised Plan within 30 days after receipt thereof by the Company, such Plan shall be deemed approved. If the Company shall disapprove of any such Plan, the Leasing Agent shall submit a revised Plan within ten (10) days of receipt of notice of disapproval, and the Company shall have ten (10) days to provide notice to the Leasing Agent if it disapproves of any such further revised Plan.

 

	 	4.4.3.	The Leasing Agent shall provide supporting information reasonably requested by the Company in connection with its review of any Plan submitted by the Leasing Agent.

 

	 	4.5.	Advertising. The Leasing Agent is authorized to advertise in accordance with the Budget, at the Owner’s expense, the Property and to place “For Lease” and similar signs on the Property, subject to the Company’s reasonable approval over the type and location of such signs. The Company and the Leasing Agent agree   to cooperate so as to keep each other informed of the publication or distribution of any publicity releases relating to the Property. The Leasing Agent shall not otherwise publish, display or distribute any marketing flyers or advertisements without the Owner's prior written consent, not to be unreasonably withheld, conditioned or delayed.

 

	 	4.6.	Monthly Report. The Leasing Agent shall prepare and furnish to the Company, as soon as possible after the end of each month during the term of this Leasing Agreement and in no event later than the twentieth (20th) day of the month, a monthly report, in reasonable detail, summarizing the Leasing Agent’s or a Sub-Agent’s, as applicable, activities hereunder and the results obtained therefrom   for the previous month. The report shall be in a form reasonably acceptable to the Company and shall include such information regarding advertising, people contacted, property showings and related matters as the Company reasonably requests.

 

	 	4.7.	Limitation on Authority. Notwithstanding any provision to the contrary contained herein, the Leasing Agent expressly acknowledges, confirms and agrees that it is acting as an independent contractor and not as the Company’s or any other Owner’s agent. Except as expressly set forth herein, the Leasing Agent has no authority to incur liabilities on behalf of the Company or any other Owner nor to enter into, execute, make or acknowledge any contract, covenant, agreement, lease or representation pertaining to the Property without the express prior written approval of the Company. Any action taken by the Leasing Agent which is not expressly permitted by this Leasing Agreement shall not bind the Company or any other Owner. The Leasing Agent agrees that it shall, and shall cause each Sub-Agent it retains pursuant to Section 1.1, in all oral and written communications with prospective tenants, to advise such prospective tenants that any and all lease proposals are proposals only and are contingent upon the negotiation and final execution by the Owner and by the prospective tenant of a mutually acceptable and definitive lease embodying the full terms of their agreement. The Leasing Agent further acknowledges and agrees that all oral and written lease offers received by the Leasing Agent or a Sub-Agent, as applicable, shall be delivered to the Company and shall not be binding or obligatory on the Owner until the Owner accepts such offer and evidences such acceptance by the execution of a written contract relating thereto.

 

	 	4.8.	Representations. The Leasing Agent shall make no representations or warranties of any kind, express or implied, concerning the Property or any other matter without the prior written consent of the Company, not to be unreasonably withheld, conditioned or delayed. The Company, on behalf of each Owner, represents and warrants to the Leasing Agent that such Owner (i) is the sole fee simple title owner to the Property and (ii) has the right to enter into lease agreements and occupancy agreements with respect to the Property. The Company represents and warrants that it is authorized and has the capacity to execute and deliver this Leasing Agreement. The Company, on behalf of each Owner, hereby authorizes the Leasing Agent to furnish full disclosure to a prospective tenant of all information with respect to the Property furnished by the Company to the Leasing Agent. 

 

	 	4.9.	Professional Consultants. In regard to the marketing and leasing of the Property, the Leasing Agent will utilize the services of such attorneys, accountants and financial and other professionals as the Company may from time to time designate at the Owner’s sole cost and expense.

 

5.   Representations and Warranties
of the Company.  To induce the Leasing Agent to enter into this Leasing Agreement, the Company, on its own behalf
and on behalf of each Owner, makes the following representations and warranties, which shall survive the execution and termination
of this Leasing Agreement:

 

	5.1  	Organization. The Company is duly organized, validly existing and in good standing under the laws of the state of Maryland. The Company has all power and authority required to execute, deliver and perform this Leasing Agreement, both on its own behalf and on behalf of each Owner.

 

	5.2  	Authorization. The execution, delivery and performance of this Leasing Agreement has been duly authorized by all necessary action on the part of the Company.

 

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

 

	6.	Representations and Warranties of the Leasing Agent. To induce the Company to enter into this Leasing Agreement, the Leasing Agent makes the following representations and warranties, which shall survive the execution and termination of this Leasing Agreement:

 

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

 

	 	6.2.	Authorization. The execution, delivery and performance of this Leasing Agreement has been duly authorized by all necessary action on the part of the Leasing Agent.

 

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

 

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

 

	 	6.5.	Independent Contractor. The Leasing Agent’s status under this Leasing Agreement is that of an independent contractor and not as an agent or employee of the Company or any other Owner.

 

	 7.	Indemnity. The Owner shall indemnify, hold harmless and defend the Leasing Agent, any Sub-Agent and their respective Affiliates and officers, directors, employees, agents and representatives from all losses, damages, costs, claims and liabilities (including, without limitation, court costs and reasonable attorneys’ fees relating thereto) arising out of or related to (a) any materially incorrect information supplied by the Owner concerning the Property; or (b) any act or omission by the Owner or any of its agents or representatives (other than the Leasing Agent or a Sub-Agent) constituting negligence, willful misconduct or a material breach or default under this Leasing Agreement by the Company. The Leasing Agent shall indemnify, hold harmless and defend the Company and any other Owners from all losses, damages, costs, claims and liabilities (including, without limitation, court costs and reasonable attorney's fees relating thereto) arising out of or related to (a) any misrepresentation or failure to disclose material information regarding the Property to a prospective tenant by the Leasing Agent, a Sub-Agent or any agent or representative of the Leasing Agent provided the Company or any other Owner has provided the Leasing Agent with adequate information and authority to make full and accurate representations and disclosures regarding the Property; (b) any material fact known by the Leasing Agent or a Sub-Agent relating to any tenant or proposed transaction which the Leasing Agent fails to disclose to the Company; (c) any act or omission by the Leasing Agent, a Sub-Agent or any of their agents or representatives constituting negligence, willful misconduct or a material breach or default under this Leasing Agreement by the Leasing Agent; or (d) any acts of the Leasing Agent, a Sub-Agent or their agents or representatives taken outside of the scope of this Leasing Agreement. The indemnities herein contained shall not apply to any claim with respect to which and to the extent the indemnified party is covered by insurance; provided, that the foregoing exclusion does not invalidate the indemnified party’s insurance coverage. Each party will procure a waiver of subrogation with respect to claims against the other party under policies in which the other party is not a named insured, and shall promptly notify the other party in the event that any such waiver is unobtainable or is obtainable only upon payment of an additional premium. If such waiver is obtainable only upon payment of an additional premium, the other party shall have the right at its option to pay such additional premium.

 

	8.	Termination.

 

	 	8.1.	Termination for Cause.

 

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

 

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

 

	 	8.1.3.	For the avoidance of doubt, a material breach of the Property Management Agreement which continues beyond the expiration of any applicable grace, notice or cure period, shall be a material breach of this Leasing Agreement.

 

	 	8.2.	Effect of Termination. The termination of this Leasing Agreement for any reason shall not affect any right, obligation or liability which has accrued under this Leasing Agreement on or before the effective date of such termination. Each agreement between the Leasing Agent and a Sub-Agent with respect to any of the Leasing Agent’s duties under this Leasing Agreement shall terminate immediately upon the termination of this Leasing Agreement. Upon termination of this Leasing Agreement for any reason, the Leasing Agent will cooperate with the Company in an effort to achieve an efficient transition of the leasing of the Properties without detriment to the rights of the Company or any other Owner or to the continued leasing of the Properties.

 

	9.	Miscellaneous.

 

	 	9.1.	Discrimination. The Owners, the Leasing Agent, a Sub-Agent or a third party shall not refuse to display or lease the Property to any person because of race, color, religion, national origin, sex, marital status or physical disability.

 

	 	9.2.	Entire Agreement. This Leasing Agreement constitutes the entire agreement between the Company and the Leasing Agent with respect to the matters set forth herein and supersedes all prior discussions, negotiations and agreements, whether oral or written. No amendment of this Leasing Agreement shall be valid or binding unless made in writing and signed by both the Company and the Leasing Agent.

 

	 	9.3.	Successors: Assignment. This Leasing Agreement shall be binding upon the Company, each Owner and the Leasing Agent and their respective successors and assigns and shall inure to the benefit of the Company, its successors and assigns. Except as provided in Section 1.1, the Leasing Agent may not assign or transfer any of its rights or obligations under this Leasing Agreement to a third party without the prior written consent of the Owner and the approval of a majority of independent directors of the Company and any such assignment without the prior written consent of the Owner and the approval of a majority of independent directors shall be void and of no effect.

 

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

 

	 	9.5.	Headings. The paragraph headings in this Leasing Agreement are inserted for convenience only and are not intended to be used in construing the substance of any of the provisions of this Leasing Agreement.

 

	 	9.6.	Notices. All notices, demands requests, approvals and other communications required or permitted by this Leasing Agreement shall be in writing and shall be deemed to have been given on the earlier of the date when presented personally or otherwise delivered (whether by commercial delivery service, mail or otherwise) or on the third (3rd) day after the date when deposited in a regularly maintained mail receptacle of the United States Postal Service, postage prepaid, registered or certified, return receipt requested, addressed to Company or the Leasing Agent, as the case may be, at its respective address set forth below, or at such other address as the Company or the Leasing Agent may from time to time designate by written notice to the other party as herein required.

 

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	If mailed or personally  	 	 

	delivered to the Company:	American Realty Capital – Retail Centers of America II, Inc.
	 	405 Park Avenue
	 	New York, New York 10022
	 	Telephone: (212) 415-6500
	 	Facsimile: (212) 421-5799
	 	Attention: Mr. Edward M. Weil, Jr.
	 	                 Mr. James A. Tanaka, Esq.
	 	 
	With a copy mailed to:	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, NY 10036
	 	Attention: Mr. Peter M. Fass, Esq.
	 	                 Mr. Michael J. Choate, Esq.
	 	 
	If mailed or personally	American Realty Capital Retail II Advisors, LLC
	delivered to the Leasing Agent:	405 Park Avenue
	 	New York, New York 10022
	 	Telephone: (212) 415-6500
	 	Facsimile: (212) 421-5799
	 	Attention: Mr. Edward M. Weil, Jr.
	 	                 Mr. James A. Tanaka, Esq.
	 	 
	With a copy mailed to:	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, NY 10036
	 	Attention: Mr. Peter M. Fass, Esq.
	 	                 Mr. Michael J. Choate, Esq.
	 	 
	With a copy mailed to:	Lincoln Retail REIT Services, LLC
	 	2000 McKinney Avenue, Suite 1000
	 	Dallas, Texas 75201
	 	Attention: Mr. Robert Dozier
	 	                 Mr. Gregory Courtwright
	 	 	 	 

 

	 	9.7.	Construction. If any of the provisions of this Leasing Agreement shall for any reason be held to be invalid, illegal or unenforceable, such invalidity, illegality or unenforceability shall not affect any other provisions hereof and this Leasing Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.

 

	 	9.8.	Number; Gender. Whenever used herein, the singular number shall include the plural, and the plural shall include the singular, and the use of any gender shall be applicable to all genders.

 

	 	9.9.	Other Brokers. The Company expressly acknowledges that the Leasing Agent may cooperate with other real estate brokers (each a “Cooperating Broker”) in discharging and performing the duties and obligations of the Leasing Agent set forth in this Leasing Agreement, and that the Leasing Agent may pay such Cooperating Brokers a leasing fee for services in leasing the Properties provided by such Cooperating Brokers.

 

[Signature page follows on next page.]

 

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

 

	 	AMERICAN REALTY CAPITAL RETAIL II ADVISORS, LLC
	 	 
	 	By:	American Realty Capital Retail II Special Limited
	 	 	Partnership, LLC
	 	 	Its Member
	 	 	 
	 	By:	American Realty Capital IV, LLC
	 	 	Its Managing Member
	 	 	 
	 	By:	/s/ Nicholas S. Schorsch
	 	Name:	Nicholas S. Schorsch
	 	Title:	Authorized Signatory
	 	 	 
	 	AMERICAN REALTY CAPITAL – RETAIL CENTERS OF
	 	AMERICA II, INC.
	 	 	 
	 	By 	/s/ Edward M. Weil, Jr.
	 	Name:	Edward M. Weil, Jr.
	 	Title:	President, Chief Operating Officer and Secretary

 

    	7Exhibit 10.4

 

ADVISORY AGREEMENT

BY AND AMONG

AMERICAN REALTY CAPITAL — RETAIL CENTERS OF AMERICA II, INC.,

AMERICAN REALTY CAPITAL RETAIL II OPERATING PARTNERSHIP, L.P.,

AMERICAN REALTY CAPITAL RETAIL II ADVISORS, LLC

 

Dated as of September 25, 2014

 

    	 

    	 

    

ADVISORY AGREEMENT

 

THIS ADVISORY AGREEMENT
(this “Agreement”) dated as of September 25, 2014, is entered into among American Realty Capital – Retail
Centers of America II, Inc., a Maryland corporation (the “Company”), American Realty Capital Retail II Operating
Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”) and American Realty Capital
Retail II Advisors, LLC, a Delaware limited liability company (the “Advisor”).

 

WITNESSETH

 

WHEREAS, the Company
is a Maryland corporation created in accordance with the Maryland General Corporation Law and intends to qualify as a REIT (as
defined below);

 

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

 

WHEREAS, the Company
and the Operating Partnership desire to avail themselves of the experience, sources of information, advice, assistance and certain
facilities of the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of,
and subject to the supervision of the Board of Directors of the Company, all as provided herein; and

 

WHEREAS, the Advisor
is willing to render such services, subject to the supervision of the Board of Directors of the Company, on the terms and subject
to the conditions hereinafter set forth;

 

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

 

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

 

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

 

“Acquisition
Fee” means the fees payable to the Advisor or its assigns pursuant to Section 11(a).

 

“Advisor”
means American Realty Capital Retail II Advisors, LLC, a Delaware limited liability company, any successor advisor to the Company
and the Operating Partnership, or any Person to which American Realty Capital Retail II Advisors, LLC or any successor advisor
subcontracts or assigns substantially all its functions. Notwithstanding the foregoing, (i) a Person hired or retained by American
Realty Capital Retail II Advisors, LLC to perform property

 

    	 

    	 

    

management and related services for the
Company or the Operating Partnership that is not hired or retained to perform substantially all the functions of American Realty
Capital Retail II Advisors, LLC with respect to the Company and the Operating Partnership as a whole shall not be deemed to be
an Advisor and (ii) none of Lincoln or its Affiliates shall be deemed to be an Advisor.

 

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

 

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

 

“Annual
Subordinated Performance Fee” means the fees payable to the Advisor or its assigns pursuant to Section 11(d).

 

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

 

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

 

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

 

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

 

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

 

    	2

    	 

    

debtors, or shall consent to the appointment
of a receiver for itself or for all or substantially all its property, or shall make a general assignment for the benefit of its
creditors, or shall admit in writing its inability to pay its debts, generally, as they become due.

 

“Change
of Control” means (i) any “person” (within the meaning of Section 13(d) of the Exchange Act, as enacted
and in force on the date hereof) is or becomes the “beneficial owner” (as that term is defined in Rule 13d-3, as enacted
and in force on the date hereof, under the Exchange Act) of securities of the Company representing 9.8% or more of the combined
voting power of the Company’s securities then outstanding without approval of the Board of Directors; (ii) there occurs a
merger, consolidation or other reorganization of the Company which is not approved by the Board of Directors; (iii) there
occurs a sale, exchange, transfer or other disposition of substantially all the assets of the Company to another Person, which
disposition is not approved by the Board of Directors; or (iv) there occurs a contested proxy solicitation of the Stockholders
that results in the contesting party electing candidates to a majority of the Board of Directors’ positions next up for election.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision
of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto,
as interpreted by any applicable regulations as in effect from time to time.

 

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

 

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

 

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

 

“Contract
Purchase Price” has the meaning ascribed to this term in the Articles of Incorporation.

 

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

 

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

 

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

 

“Director”
means a director of the Company.

 

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

 

    	3

    	 

    

“Excess
Amount” has the meaning set forth in Section 14.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor statute thereto. Reference
to any provision of the Exchange Act shall mean such provision as in effect from time to time, as the same may be amended, and
any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.

 

“Expense
Year” shall mean any four (4) consecutive fiscal quarters.

 

“Financing
Coordination Fee” means the fee payable to the Advisor or its assigns pursuant to Section 11(c).

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Insourced
Acquisition Expenses” means Acquisition Expenses incurred by the Advisor, or any Affiliates or assigns but excluding
any legal fees or costs incurred by the Advisor or its assigns in connection with services performed hereunder.

 

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

 

    	4

    	 

    

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

 

“Lincoln”
means Lincoln Retail REIT Services, LLC, a Delaware limited liability company.

 

“Listing”
means the listing of the Common Stock on a national securities exchange.

 

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

 

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

 

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

 

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

 

“NAV Pricing
Start Date” means the first date on which the Company calculates NAV as set forth in the Articles of Incorporation.

 

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

 

“Notice”
has the meaning set forth in Section 24.

 

“Offering”
means any public offering and sale of Shares (other than a dividend reinvestment plan) pursuant to an effective registration statement
filed under the Securities Act.

 

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

 

“Operating
Partnership Agreement” means the Agreement of Limited Partnership of the Operating Partnership, dated as of September
25, 2014, among the Company, American Realty Capital Retail II Special Limited Partnership, LLC, and the Advisor, as the same may
be amended from time to time.

 

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

 

    	5

    	 

    

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

 

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

 

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

 

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

 

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

 

“Real Estate
Commission” means the fees payable to the Advisor pursuant to Section 11(b).

 

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

 

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

 

“Registration
Statement” means the Company’s registration statement on Form S-11 (File No. 333-196594) and the prospectus
contained therein.

 

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

 

    	6

    	 

    

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

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, or any successor statute thereto. Reference
to any provision of the Securities Act shall mean such provision as in effect from time to time, as the same may be amended, and
any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.

 

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

 

“Service
Provider” means Lincoln or such other entity or entities selected by the Advisor pursuant to a service provider agreement,
in which the entity agrees to perform certain duties of the Advisor as set forth in this Agreement, including acquisition and management
responsibilities, seeking and procuring financing for the Company’s properties, selecting and negotiating investments, including
property purchases and leasebacks, and providing asset management services. The Advisor shall assign a percentage of the fees payable
under this Agreement to such entities pursuant to such service provider agreement. Notwithstanding delegation of responsibilities
to the Service Provider, the Advisor shall retain ultimate responsibility for the performance of all the matters entrusted to it
pursuant to this Agreement.

 

    	7

    	 

    

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

 

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

 

“Sponsor”
means American Realty Capital IV, LLC, a Delaware limited liability company.

 

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

 

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

 

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

 

“Total
Operating Expenses” has the meaning ascribed to this term in the Articles of Incorporation.

 

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

 

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

 

“2%/25%
Guidelines” means the greater of 2% of Average Invested Assets or 25% of Net Income.

 

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

 

3. 
DUTIES OF THE ADVISOR. The Advisor will use its reasonable best efforts to present to the Company and
the Operating Partnership potential investment opportunities and to provide a continuing and suitable investment program consistent
with the investment objectives and policies of the Company as determined and adopted from time to time by the Board. In performance
of this undertaking, subject to the supervision of the Board and consistent with the provisions of the Articles of Incorporation,
By-laws and the Operating Partnership Agreement, the Advisor, directly or indirectly through the Service Provider or another third
party, will:

 

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

 

    	8

    	 

    

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

 

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

 

(d) consult
with the officers and Directors of the Company and assist the Directors in the formulation and implementation of the Company’s
financial policies, and, as necessary, furnish the Board with advice and recommendations with respect to the making of Investments
consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken
by the Company or the Operating Partnership;

 

(e) subject
to the provisions of Section 5, (i) participate in formulating an investment strategy and asset allocation framework; (ii)
locate, analyze and select potential Investments; (iii) structure and negotiate the terms and conditions of transactions pursuant
to which acquisitions and dispositions of Investments will be made; (iv) research, identify, review and recommend acquisitions
and dispositions of Investments to the Board and make Investments on behalf of the Company and the Operating Partnership in compliance
with the investment objectives and policies of the Company; (v) arrange for financing and refinancing and make other changes in
the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with, Investments;
(vi) enter into leases and service contracts for Real Estate Assets and, to the extent necessary, perform all other operational
functions for the maintenance and administration of such Real Estate Assets; (vii) actively oversee and manage Investments for
purposes of meeting the Company’s investment objectives and reviewing and analyzing financial information for each of the
Investments and the overall portfolio; (viii) select Joint Venture partners, structure corresponding agreements and oversee and
monitor these relationships; (ix) with respect to Investments, select a Service Provider to seek and procure financing for the
Company’s properties, select and negotiate investments, including property purchases and leasebacks, and provide asset management
services to oversee, supervise and evaluate Affiliated and non-Affiliated property managers who perform services for the Company
or the Operating Partnership; (x) oversee Affiliated and non-Affiliated Persons with whom the Advisor contracts to

 

    	9

    	 

    

perform certain of the services
required to be performed under this Agreement; (xi) manage accounting and other record-keeping functions for the Company and
the Operating Partnership, including reviewing and analyzing the capital and operating budgets for the Real Estate Assets and generating
an annual budget for the Company; (xii) recommend various liquidity events to the Board when appropriate; and (xiii) source Real
Estate Related Loans;

 

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

 

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

 

(h) negotiate
on behalf of the Company and the Operating Partnership with banks or other lenders for Loans to be made to the Company, the Operating
Partnership or any of their subsidiaries, and negotiate with investment banking firms and broker-dealers on behalf of the
Company, the Operating Partnership or any of their subsidiaries, or negotiate private sales of Shares or obtain Loans for the
Company, the Operating Partnership or any of their subsidiaries, but in no event in such a manner so that the Advisor shall be
acting as broker-dealer or underwriter; provided, however, that any fees and costs payable to third parties incurred
by the Advisor in connection with the foregoing shall be the responsibility of the Company, the Operating Partnership or any of
their subsidiaries, as applicable;

 

(i) obtain reports (which may, but are not required to, be prepared by the Advisor or its Affiliates), where appropriate, concerning
the value of Investments or contemplated investments of the Company and the Operating Partnership, including relevant market research
and economic and statistical data in connection with the Company’s Real Estate Assets, investment objectives and policies;

 

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

 

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

 

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

 

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

 

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

 

    	10

    	 

    

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

 

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

 

(q) after the NAV Pricing Start Date, calculate the NAV as provided in the Registration Statement, and in connection therewith,
obtain appraisals performed by the Independent Valuation Advisor; and

 

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

 

(s) perform all services related to the organization of the Company or any Offering or private sale of the Company’s securities,
other than services that (i) are to be performed by the Dealer Manager, (ii) the Company elects to perform directly or (iii) would
require the Advisor to register as a broker-dealer with the Securities and Exchange Commission or any state;

 

(t) perform due diligence on prospective investments and create due diligence reports summarizing the results of such work;

 

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

 

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

 

 

4. 
ASSET MANAGEMENT SERVICES. The Advisor shall, or shall retain other Persons to provide, but shall remain responsible to
the Company:

 

(a) Accounting and Other Administrative Services:

 

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

 

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

 

(iii) Manage and coordinate with the transfer agent the monthly distributions process and payments to Stockholders;

 

    	11

    	 

    

(iv)
Consult with the Company’s officers and the Board and assist the Board in evaluating and obtaining adequate insurance
coverage based upon risk management determinations;

 

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

 

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

 

(vii) Perform all reporting, record keeping, internal controls and similar matters in a manner to allow the Company to comply
with applicable law, including federal and state securities laws and the Sarbanes-Oxley Act of 2002;

 

(viii) Notwithstanding
the foregoing or anything else that may be to the contrary in this Agreement, the Advisor may delegate any of the foregoing duties
to any Person so long as the Advisor or its Affiliate remains responsible for the performance of the duties set forth in this
Section 4.

 

5. 
AUTHORITY OF THE ADVISOR.

 

(a) Pursuant
to the terms of this Agreement (including the restrictions included in this Section 5 and in Section 10), and subject
to the continuing and exclusive authority of the Board over the supervision of the Company, the Company, acting on the authority
of the Board of Directors, hereby delegates to the Advisor the authority to perform the services described in Section 3.

 

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

 

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

 

(d) The
Board may, at any time upon the giving of Notice to the Advisor, modify or revoke the authority set forth in this Section
5; provided, however, that such modification or revocation shall be effective upon receipt by the Advisor
and shall not be applicable to investment transactions to which the Advisor has committed the Company or the Operating
Partnership prior to the date of receipt by the Advisor of such notification.

 

6. 
FIDUCIARY RELATIONSHIP. The Advisor, as a result of its relationship with the Company and the Operating Partnership
pursuant to this Agreement, has a fiduciary responsibility and duty to the Company and its Stockholders.

 

    	12

    	 

    

7. NO PARTNERSHIP OR JOINT VENTURE. Except as provided in Section  11(j), the parties to this
Agreement are not partners or joint venturers with each other and nothing herein shall be construed to make them partners or joint
venturers or impose any liability as such on either of them.

 

8. BANK ACCOUNTS. The Advisor may establish and maintain one or more bank accounts in the name of the Company
or the Operating Partnership and may collect and deposit into any such account or accounts, and disburse from any such account
or accounts, any money on behalf of the Company or the Operating Partnership, under such terms and conditions as the Board may
approve, provided that no funds shall be commingled with the funds of the Advisor; and, upon request, the Advisor shall render
appropriate accountings of such collections and payments to the Board and to the auditors of the Company.

 

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

 

10. 
LIMITATIONS ON ACTIVITIES. Notwithstanding anything herein to the contrary, the Advisor shall refrain
from taking any action which, in its sole judgment, or in the sole judgment of the Company, made in good faith, would (a) adversely
affect the status of the Company as a REIT, unless the Board has determined that REIT qualification is not in the best interests
of the Company and its Stockholders, (b) subject the Company to regulation under the Investment Company Act of 1940, as amended,
or (c) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the
Company, the Operating Partnership or the Shares, or otherwise not be permitted by the Articles of Incorporation or By-laws, except
if such action shall be ordered by the Board, in which case the Advisor shall notify promptly the Board of the Advisor’s
judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification
or instructions from the Board. In such event, the Advisor shall have no liability to the Company for acting in accordance with
the specific instructions of the Board so given.

 

11.  FEES.

 

(a)
Acquisition Fee. Subject to Section 12(b), the Company shall pay an Acquisition Fee to the Advisor
or its assigns as compensation for services rendered in connection with the investigation, selection and acquisition (by purchase,
investment or exchange) of each Investment. If the Advisor is terminated without Cause pursuant to Section 18(b)(1), the Advisor
or its assigns shall be entitled to an Acquisition Fee for any Investments acquired after the Termination Date for which a contract
to acquire the applicable Investment had been entered into at or prior to the Termination Date. The total Acquisition Fee payable
to the Advisor or its assigns shall be equal to 1.5% of (1) the Contract Purchase Price of each Investment and (2) the amount
advanced for a Loan or other investment. The purchase price allocable for an Investment held through a Joint Venture shall equal
the product of (i) the Contract Purchase Price of the Investment, multiplied by (ii) the direct or indirect ownership percentage
in the Joint Venture held

 

    	13

    	 

    

directly or indirectly by the
Company or the Operating Partnership. For purposes of this Section 11(a), “ownership percentage” shall be the
percentage of capital stock, membership interests, partnership interests or other equity interests owned directly or indirectly
by the Company or the Operating Partnership, without regard to classification of such equity interests. The Company shall pay any
Acquisition Fee due hereunder promptly upon the closing of the Investment. In addition, if during the period ending two years after
the close of the initial Primary Offering, the Company sells an Investment and then reinvests the net proceeds in a new Investment(s),
the Company shall pay to the Advisor or its assigns 1.0% of the Contract Purchase Price of the new Investment(s).

 

(b) Real Estate Commission. In connection with a Sale of a Real Estate Asset in which the Advisor or any Affiliate
or agent or assign of the Advisor including a Service Provider provides a substantial amount of assistance, as determined by the
Independent Directors, the Company shall pay to the Advisor or its assigns, in the aggregate, a Real Estate Commission up to the
lesser of (i) 2.0% of the Contract Sales Price of the Real Estate Asset or (ii) one-half of the Competitive Real Estate Commission
paid if an unaffiliated third party broker is also involved; provided, however, that in no event may the Real Estate
Commission paid to the Advisor, its Affiliates and agents (including a Service Provider) and to an unaffiliated third party exceed
the lesser of 6.0% of the Contract Sales Price and a Competitive Real Estate Commission.

 

(c) Financing
Coordination Fee. If the Advisor or its assigns provide services in connection with the origination or refinancing of
any Loan the Company or the Operating Partnership directly or indirectly obtains, including any assumed Loan, the Company shall
pay a Financing Coordination Fee to the Advisor or its assigns in an amount equal to 0.75% of the amount available or outstanding
under any such Loan, including any assumed Loan. The Advisor and its assigns may reallow some of or all this Financing Coordination
Fee to reimburse third parties with whom it may subcontract to procure any such Loan.

 

(d) Annual Subordinated Performance Fee. The Company shall pay the Advisor or its assigns an Annual Subordinated
Performance Fee payable in any year equal to 15% of the amount that the Total Return to Stockholders exceeds 6% per annum, provided,
that in no event may the Annual Subordinated Performance Fee exceed 10% of the aggregate Total Return to Stockholders for the applicable
year.

 

(e) Payment
of Fees. The Company shall pay, or cause the Operating Partnership to pay any fees due the Advisor or its assigns under
Section 11(a), (b), (c) or (d) hereof, at the Advisor’s or the assign’s option in cash,
Shares or OP Units or any combination thereof. For the purposes of the payment of any fees in Shares or OP Units, (i) if during
an Offering, (a) prior to the NAV Pricing Start Date, each Share or OP Unit shall be valued at the per-share offering price
of the Shares in the applicable Offering minus the maximum Selling Commissions and Dealer Manager Fee payable in the applicable
Offering, and (b) after the NAV Pricing Start Date, each Share or OP Unit shall be valued at the then-current NAV per Share; and
(ii) at all other times, each Share or OP Unit shall be equal in value to (A) the estimated value of the Shares, calculated
in

 

    	14

    	 

    

accordance with the provisions
of NASD Rule 2340(c)(1) (or any successor or similar FINRA rule), or (B) if no such rule shall then exist, at the fair market value
thereof.

 

(f) Conditions
to Certain Fees.

 

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

 

(ii) Neither the Company nor the Operating Partnership shall make loans to the Advisor or any Affiliate thereof or any officers
of the Company or Directors except as permitted by the Articles of Incorporation. Neither the Advisor, any Affiliate thereof, nor
any officers or Directors of the Company, shall make loans to the Company or the Operating Partnership, or to Joint Ventures, unless
approved by a majority of the Directors (including a majority of the Independent Directors) not otherwise interested in such transaction
as fair, competitive, and commercially reasonable, and no less favorable to the Company or Operating Partnership, as applicable,
than comparable loans between unaffiliated parties, as determined by the Independent Directors in their sole discretion; provided,
however, that the waiver or deferral of any fee or reimbursement due the Advisor or any Affiliate hereunder shall not be treated
as a loan for the purposes of this Section 11(i)(ii).

 

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

 

(iv)
If the Board elects to internalize any management services provided by the Advisor, neither the Company nor the Operating
Partnership shall pay any compensation or other remuneration to the Advisor or its Affiliates in connection with such internalization
of management services.

 

(g) Subordinated Participation Interests. The Company shall cause the Operating Partnership to periodically issue
Subordinated Participation Interests in the Operating Partnership to the Advisor or its assigns, pursuant to the terms and conditions
contained in the Operating Partnership Agreement.

 

12. 
EXPENSES.

 

(a)
In addition to the compensation paid to the Advisor pursuant to Section 11 and subject to the limitations set
forth herein, the Company or the Operating Partnership

 

    	15

    	 

    

shall pay directly or reimburse
the Advisor, or any Affiliates or assigns for all the expenses paid or incurred by the Advisor, or any Affiliates or assigns thereof
in connection with the services provided to the Company and the Operating Partnership pursuant to this Agreement, including, the
following:

 

(i) Organization and Offering Expenses, including third-party due diligence fees related to the Primary Offering, as set forth
in detailed and itemized invoices; provided, however, that the Company shall not make any reimbursement under this
Section 12(a)(i) to the extent reimbursement would cause the total amount of Organization and Offering Expenses paid by the Company
and the Operating Partnership to exceed 2.0% of the Gross Proceeds raised in all Primary Offerings;

 

(ii) Acquisition Expenses, including, but not limited to, up to 0.10% of the Contract Purchase Price of an Investment for legal
expenses incurred by the Advisor, or any Affiliates or assigns thereof in connection with the selection, evaluation and acquisition
of an Investment;

 

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

 

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

 

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

 

(vi) costs associated with any insurance;

 

(vii) expenses
of managing, operating and disposing of Investments;

 

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

 

(ix) expenses
associated with a Listing or any other liquidity event such as a merger or the sale of all or substantially all of the Investments;

 

(x) expenses of paying dividends or Distributions;

 

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

 

(xii) expenses
of Stockholder communications including the cost of preparing, printing, and mailing annual reports and other Stockholder reports,
proxy statements and reports required by governmental entities;

 

    	16

    	 

    

(xiii) administrative service expenses, including the reasonable salaries and wages, benefits and overhead of all directly involved
in the performance of services by persons employed by the Advisor, or any Affiliate or assign in addition to the issuance of Subordinated
Participation Interests to the Advisor, any Affiliate or assign; provided, however, that no reimbursement shall be
made with respect to salaries, bonuses or benefits of any person who performs services for which the Company pays a separate Acquisition
Fee or Real Estate Commission hereunder; provided further that the Company shall not reimburse the Advisor, or any Affiliates
or assigns for the salaries, bonuses or benefits paid by any of these entities to persons serving as the Company’s executive
officers; and

 

(xiv) audit, accounting and legal fees.

 

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

 

(i) The total of all Acquisition Fees and Financing Coordination Fees payable hereunder as well as Acquisition Expenses reimbursable
hereunder, if any, shall be reasonable and shall not exceed an amount equal to 4.5% of (A) the Contract Purchase Price of the Company’s
total portfolio of Investments and (B) the amount advanced for each Loan or other investment; provided, however,
that once all the net proceeds from the initial Primary Offering have been invested, the total of all Acquisition Fees and Financing
Coordination Fees on future Investments and reinvestments shall not exceed 2.0% of the Contract Purchase Price of the new Investment.

 

(c) Limitation
on Insourced Acquisition Expenses.

 

(i) Notwithstanding anything to the contrary herein, the total of all Insourced Acquisition Expenses to be reimbursed by the
Company for any calendar year (other than the legal expenses described in Section 12(a)(ii) above) shall not exceed 0.50%
of (A) the Contract Purchase Price of the Investments acquired during such period and (B) of the amounts advanced for any Loan
or other investment made during such period (to be prorated for any partial calendar year); provided, however, that
within a reasonable period of time following the end of each calendar year, the Company shall perform a Market Check and provide
the results thereof to the Advisor within a reasonable period of time. If the amount of Acquisition Expenses projected in the Market
Check that would be incurred if substantially similar services with respect to a substantially similar amount of properties were
to be provided by a Person other than the Advisor, or any Affiliates or assigns during the subsequent calendar year is lower than
the amount of Insourced Acquisition Expenses paid to the Advisor or its Affiliates during the previous calendar year, then either
(A) the Advisor shall reduce the cap on the Insourced Acquisition Expenses until the next Market Check such that the cap on Insourced
Acquisition Expenses does not exceed the projected amount of Acquisition Expenses projected by the Market Check or (B) the Company
may

 

    	17

    	 

    

outsource to a Person other than
the Advisor or its Affiliates certain services previously provided by the Advisor or its Affiliates until the next Market Check.

 

(d) Subject to Section 14 hereof, commencing upon the earlier to occur of (i) the fifth fiscal quarter after the Company
makes its first Investment and (ii) six (6) months after the commencement of the initial Primary Offering, the Company shall reimburse
no less than monthly, all expenses incurred by the Advisor, or any of its Affiliates or assigns on behalf of the Company and the
Operating Partnership or any of their subsidiaries in connection with the services provided hereunder.

 

13. 
OTHER SERVICES. If the Board requests the Advisor or any director, officer or employee thereof to render
services for the Company and the Operating Partnership other than those set forth in Sections 3 and 4, such services shall
be separately compensated at such customary rates and in such customary amounts as are agreed upon by the Advisor and the Board,
including a majority of the Independent Directors, subject to the limitations contained in the Articles of Incorporation, and shall
not be deemed to be services pursuant to the terms of this Agreement.

 

14.  REIMBURSEMENT TO THE ADVISOR. The Company shall not, during any Expense Year, reimburse the Advisor or
any of its Affiliates or assigns for any expenses incurred by any of them to the extent that at the end of any fiscal quarter the
Total Operating Expenses incurred by the Advisor, or any of its Affiliates or assigns exceed, in the aggregate, for the then ended
Expense Year, the 2%/25% Guidelines (the “Excess Amount”). The Advisor and any of its Affiliates or assigns
shall repay the Company for any Excess Amount, or the Company, at its option, may subtract the Excess Amount from the Total Operating
Expenses reimbursed during the subsequent fiscal quarter. Notwithstanding the above, if there is an Excess Amount in any Expense
Year and the Independent Directors determine that such excess was justified based on unusual and nonrecurring factors which they
deem sufficient, then the Excess Amount may be carried over and included in Total Operating Expenses in subsequent Expense Years
and reimbursed to the Advisor, or any its Affiliates or assigns in one or more of such years, provided that the Company sends written
disclosure to the Stockholders of such fact, together with an explanation of the factors the Independent Directors considered in
determining that such excess expenses were justified. Such determination shall also be reflected in the minutes of the meetings
of the Board. All figures used in the foregoing computation shall be determined in accordance with GAAP applied on a consistent
basis.

 

15.  OTHER ACTIVITIES OF THE ADVISOR. Except as set forth in this Section 15, nothing herein contained
shall prevent the Advisor or any of its Affiliates from engaging in or earning fees from other activities, including the rendering
of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the
Sponsor or its Affiliates; nor shall this Agreement limit or restrict the right of any director, officer, member, partner, employee
or stockholder of the Advisor or any of its Affiliates to engage in or earn fees from any other business or to render services
of any kind to any other Person and earn fees for rendering such services; provided, however, that the Advisor must
devote sufficient resources to the Company’s business to discharge its obligations to the Company under this Agreement. The
Advisor may, with respect to any Investment in which the Company is a participant, also render advice and service to each and every
other participant

 

    	18

    	 

    

therein, and earn fees for rendering such
advice and service. The Company may enter into Joint Ventures or other similar co-investment arrangements with certain Persons,
and pursuant to the agreements governing such Joint Ventures or arrangements, the Advisor may be engaged to provide advice and
service to such Persons, in which case the Advisor may be paid fees for rendering such advice and service.

 

The Advisor shall report
to the Board the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, which creates
or could create a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest
in any other Person. If the Advisor, Director or Affiliates thereof have sponsored other investment programs with similar investment
objectives which have investment funds available at the same time as the Company, the Advisor shall inform the Board of the method
to be applied by the Advisor in allocating investment opportunities among the Company and competing investment entities and shall
provide regular updates to the Board of the investment opportunities provided by the Advisor to competing programs in order for
the Board (including the Independent Directors) to fulfill its duty to ensure that the Advisor and its Affiliates use their reasonable
best efforts to apply such method fairly to the Company.

 

16.  THE
AMERICAN REALTY CAPITAL NAME. The Advisor and its Affiliates have or may have a proprietary interest in the names “American
Realty Capital,” “ARC” and “AR Capital.” The Advisor hereby grants to the Company, to the extent
of any proprietary interest the Advisor may have in any of the names “American Realty Capital,” “ARC”
and “AR Capital,” a non-transferable, non-assignable, non-exclusive, royalty-free right and license to use the names”
American Realty Capital,” “ARC” and “AR Capital” during the term of this Agreement. The Company
agrees that the Advisor and its Affiliates will have the right to approve of any use by the Company of the names “American
Realty Capital,” “ARC” and “AR Capital,” such approval not to be unreasonably withheld or delayed.
Accordingly, and in recognition of this right, if at any time the Company ceases to retain the Advisor or one of its Affiliates
to perform advisory services for the Company, the Company will, promptly after receipt of written request from the Advisor, cease
to conduct business under or use the names “American Realty Capital,” “ARC” and “AR Capital”
or any derivative thereof and the Company shall change its name and the names of any of its subsidiaries to a name that does not
contain the names “American Realty Capital,” “ARC” and “AR Capital” or any other word or words
that might, in the reasonable discretion of the Advisor, be susceptible of indication of some form of relationship between the
Company and the Advisor or any its Affiliates. At such time, the Company will also make any changes to any trademarks, servicemarks
or other marks necessary to remove any references to the words “American Realty Capital,” “ARC” and “AR
Capital.” Consistent with the foregoing, it is specifically recognized that the Advisor or one or more of its Affiliates
has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles
for investment in real estate) and financial and service organizations having any of the names “American Realty Capital,”
“ARC” and “AR Capital” as a part of their name, all without the need for any consent (and without the
right to object thereto) by the Company. Neither the Advisor nor any of its Affiliates makes any representation or warranty, express
or implied, with respect to the names “American Realty Capital,” “ARC” and “AR Capital” licensed
hereunder or the use thereof (including, without limitation, as to whether the use of the names “American Realty Capital,”
“ARC” and “AR Capital” will be free from infringement of the intellectual property rights of third parties).

 

    	19

    	 

    

Notwithstanding the preceding, the Advisor
represents and warrants that it is not aware of any pending claims or litigation or of any claims threatened in writing regarding
the use or ownership of the names “American Realty Capital,” “ARC” and “AR Capital.”

 

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

 

18.  TERMINATION BY THE PARTIES. This Agreement may be terminated (a) by the Company with Cause upon forty-five
(45) days’ prior written notice or (b) upon sixty (60) days’ prior written notice (i) by the Independent Directors
of the Company or the Advisor, without Cause and without penalty, (ii) by the Advisor for Good Reason, or (iii) by the Advisor
upon a Change of Control. The provisions of Sections 18 and 22 through 25 (inclusive) of this Agreement shall
survive any expiration or earlier termination of this Agreement.

 

19.  ASSIGNMENT. This Agreement and the rights and obligations hereunder may be assigned by the Advisor to
an Affiliate or to one or more Service Providers with the approval of a majority of the Directors (including a majority of the
Independent Directors). The Advisor may assign any rights to receive fees or other payments under this Agreement to any Person
without obtaining the approval of the Directors. This Agreement shall not be assigned by the Company or the Operating Partnership
without the consent of the Advisor, except in the case of an assignment by the Company or the Operating Partnership to a Person
which is a successor to all the assets, rights and obligations of the Company or the Operating Partnership, and which the Board
has determined possess sufficient qualifications to perform the advisory function for the Company, in which case such successor
Person shall be bound hereunder and by the terms of said assignment in the same manner as the Company or the Operating Partnership,
as applicable, is bound by this Agreement. 

 

20.  PAYMENTS
TO AND DUTIES OF ADVISOR UPON TERMINATION.

 

(a) Amounts Owed. After the Termination Date, the Advisor shall be entitled to receive from the Company or the
Operating Partnership within thirty (30) days after the effective date of such termination all amounts then accrued and owing to
the Advisor, subject to the 2%/25% Guidelines to the extent applicable.

 

(b) Advisor’s Duties. The Advisor shall, and shall cause any Affiliate or assigns, promptly upon termination
of this Agreement:

 

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

 

(ii) deliver to the Board a full accounting, including a statement showing all payments collected by the Advisor or any of its
Affiliates or assigns and a statement of all money held by any of them, covering the period following the date of the last accounting
furnished to the Board;

 

    	20

    	 

    

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

 

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

 

21.  
INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP.

 

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

 

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

 

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

 

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

 

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

 

(b) Notwithstanding the foregoing, an Indemnitee shall not be indemnified by the Company and the Operating Partnership for any
Losses arising from or out of an alleged violation of federal or state securities laws by such Indemnitee unless one or more of
the following conditions are met:

 

(i) there has been a successful adjudication on the merits of each count involving alleged securities law violations as to the
Indemnitee;

 

    	21

    	 

    

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

 

(iii)
a court of competent jurisdiction approves a settlement of the claims against the Indemnitee and finds that indemnification
of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised
of the position of the Securities and Exchange Commission and of the published position of any state securities regulatory authority
in which securities of the Company or the Operating Partnership were offered or sold as to indemnification for violation of securities
laws.

 

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

 

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

 

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

 

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

 

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

 

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

 

	To the Company:	American Realty Capital – Retail Centers of America II, Inc.
	 	405 Park Avenue
	 	 

    	22

    	 

    

	 	New York, New York 10022
	 	Attention:      Edward M. Weil, Jr.
	 	 
	 	with a copy to:
	 	 
	 	James Tanaka, Esq.
	 	405 Park Avenue
	 	New York, New York 10022
	 	 
	To the Operating Partnership:	American Realty Capital Retail II Operating Partnership, L.P.
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention:      Edward M. Weil, Jr.
	 	 
	 	with a copy to:
	 	 
	 	James Tanaka, Esq.
	 	405 Park Avenue
	 	New York, New York 10022
	 	 
	To the Advisor:	American Realty Capital Retail II Advisors, LLC
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention:      Edward M. Weil, Jr.
	 	 
	 	with a copy to:
	 	 
	 	James Tanaka, Esq.
	 	405 Park Avenue
	 	New York, New York 10022

 

Any party may at any time give Notice in
writing to the other parties of a change in its address for the purposes of this Section 24.

 

24.  THIRD PARTY BENEFICIARY.  The terms and provisions of this Agreement are intended solely for
the benefit of each party hereto, their Affiliates and their respective successors and permitted assigns, and it is not the intention
of the parties to confer third-party beneficiary rights upon any other Person; except with respect to the benefits conferred upon
or derived by Lincoln and its Affiliates and their respective successors and assigns under Sections 11, 12, 19 and 22. Lincoln,
its Affiliates and their respective successors and assigns shall have all rights, remedies, powers and privileges provided in such
Articles and shall have the right to directly seek enforcement of such rights, remedies, powers and privileges under this Agreement. Neither
the failure nor any delay on the part of Lincoln, its Affiliates or their respective successors and assigns to exercise any right,
remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or
privilege, nor shall any waiver of any right, remedy, power or privilege

 

    	23

    	 

    

with respect to any occurrence be construed
as a waiver of such right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be effective
unless it is in writing and is signed by the party asserted to have granted such waiver.  Copies of any Notice delivered
in accordance with Section 24 shall be (a) delivered in person, (b) sent by facsimile transmission, (c) sent by a nationally-recognized
overnight courier service, or (d) sent by certified or registered mail (postage prepaid, return receipt requested), to Lincoln
at the following address:

 

 

Lincoln Retail REIT Services, LLC

2000 McKinney Avenue

Suite 1000

Dallas, Texas 75201

Facsimile:  (214) 740-3313

Attention:  Mr. Robert Dozier

Attention:  Mr. Gregory S. Courtwright

 

with a copy to:

 

Greenburg Traurig, LLP

200 Park Avenue

New York, NY 10166

Telephone: (212) 801-6496

Facsimile: (212) 805-6400

Attention:  Alice L. Connaughton, Esq.

 

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

 

26.  SEVERABILITY.
The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered
invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable
in whole or in part.

 

27.  GOVERNING
LAW. The provisions of this Agreement shall be construed and interpreted in accordance with the internal laws of the
State of New York as at the time in effect, without regard to the principles of conflicts of laws thereof.

 

28.  ENTIRE AGREEMENT. This Agreement contains the entire agreement and understanding among the parties hereto
with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements
and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express
terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof.

 

29.  NO
WAIVER. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this
Agreement shall operate as a waiver thereof, nor

 

    	24

    	 

    

shall any single or partial exercise of
any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or
privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver
of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing
and is signed by the party asserted to have granted such waiver.

 

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

 

31.  HEADINGS. The titles of sections and subsections contained in this Agreement are for convenience only,
and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

 

32.  EXECUTION IN COUNTERPARTS. This Agreement may be executed (including by facsimile transmission) with counterpart
signature pages or in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument.

 

[Remainder of page intentionally left
blank]

 

    	25

    	 

    

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

 

AMERICAN REALTY CAPITAL – RETAIL

CENTERS OF AMERICA II, INC.

 

By:/s/ Nicholas S. Schorsch

       Nicholas S. Schorsch, Chairman
and

       Chief Executive Officer

 

AMERICAN REALTY CAPITAL Retail
II 

Operating Partnership, L.P.

 

American Realty Capital –
Retail Centers of America II, Inc., its General Partner

 

By: /s/ Nicholas S. Schorsch

       Nicholas S. Schorsch, Chairman

       and Chief Executive Officer

 

AMERICAN REALTY CAPITAL RETAIL II
ADVISORS, LLC

 

 By: American Realty Capital Retail II Special

        Limited Partnership, LLC, its Member

 

 By: American Realty Capital IV, LLC, its Managing Member

 

By: /s/ Nicholas S. Schorsch

       Nicholas S. Schorsch

       Authorized Signatory

 

[ARC Retail II – Advisory Agreement]

 

    	26

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