Document:

AMENDED AND RESTATED SUBSCRIPTION ESCROW
AGREEMENT

 

THIS AMENDED AND RESTATED
SUBSCRIPTION ESCROW AGREEMENT dated as of March 13, 2013 (this “Agreement”), is entered into among Realty
Capital Securities, LLC (the “Dealer Manager”), ARC Realty Finance Trust, Inc. (the “Company”)
and UMB Bank, N.A., as escrow agent (the “Escrow Agent”).

 

WHEREAS, the Company intends to raise
funds from Investors (as defined below) pursuant to a public offering (the “Offering”) for gross proceeds of
not less than $2,000,000 (the “Minimum Amount”) from the sale of shares of common stock, par value $0.01
per share of the Company (the “Securities”), pursuant to the registration statement on Form S-11 of the Company
(No. 333-186111) (as amended, the “Offering Document”) a copy of which is attached as Exhibit A hereto.

 

WHEREAS, the Company desires to establish
an escrow account with the Escrow Agent for funds contributed by the Investors with the Escrow Agent in accordance with the Offering
Document, to be held for the benefit of the Investors and the Company until such time as (i) in the case of subscriptions received
from residents of Pennsylvania (“Pennsylvania Investors”), Securities sold in the Offering to all Investors
equal, in the aggregate, to $100,000,000 (the “Pennsylvania Minimum Amount”), (ii) in the case of subscriptions
received from residents of Washington (“Washington Investors”), Securities sold in the Offering to all Investors
equal, in the aggregate, to $10,000,000 (the “Washington Minimum Amount”) and (iii) in the case of subscriptions
received from all other Investors, Securities sold in the Offering equal the Minimum amount, in each case in accordance with the
terms and subject to the conditions of this Agreement.

 

WHEREAS, the Escrow
Agent is willing to accept appointment as escrow agent only for the express duties set forth herein.

 

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.          Proceeds
to be Escrowed. On or before the first date of the Offering, the Company shall establish an escrow account with the Escrow
Agent to be invested in accordance with Section 9 hereof (including such abbreviations as are required for the Escrow Agent’s
systems) (the “Escrow Account”). All checks, wire transfers and other funds received from subscribers of Securities
(“Investors”, which term shall also include Washington and Pennsylvania Investors unless the context otherwise
requires) in payment for the Securities (“Investor Funds”) will be delivered to the Escrow Agent within one
(1) business day following the day upon which such Investor Funds are received by the Company or its agents, and shall, upon receipt
by the Escrow Agent, be retained in escrow by the Escrow Agent and invested as stated herein. During the term of this Agreement,
the Company or its agents shall cause all checks received by and made payable to it in payment for the Securities to be endorsed
for favor of the Escrow Agent and delivered to the Escrow Agent for deposit in the Escrow Account.

 

The Company shall,
and shall cause its agents to, cooperate with the Escrow Agent in separately accounting for Investor Funds from Washington and
Pennsylvania Investors in the Escrow Account, and the Escrow Agent shall be entitled to rely upon information provided by the Company
or its agents in this regard.

 

The Escrow Agent shall
have no duty to make any disbursement, investment or other use of Investor Funds until and unless it has good and collected funds.
If any checks deposited in the Escrow Account are returned or prove uncollectible after the funds represented thereby have been
released by the Escrow Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs incurred for such,
upon request, and the Escrow Agent shall deliver the returned checks to the Company. The Escrow Agent shall be under no duty or
responsibility to enforce collection of any check delivered to it hereunder. The Escrow Agent reserves the right to deny, suspend
or terminate participation by an Investor to the extent the Escrow Agent deems it advisable or necessary to comply with applicable
laws or to eliminate practices that are not consistent with the purposes of the Offering.

 

    	 

    	 

    

 

 

2.          Investors.
Investors will be instructed by the Dealer Manager or any soliciting dealers retained by the Dealer Manager in connection with
the Offering (the “Soliciting Dealers”) to remit the purchase price in the form of checks (hereinafter “instruments
of payment”) payable to the order of, or funds wired in favor of, “UMB BANK, N.A., ESCROW AGENT FOR ARC REALTY FINANCE
TRUST, INC.” Any checks made payable to a party other than the Escrow Agent shall be returned to the Dealer Manager or Soliciting
Dealer that submitted the check. By 12:00 p.m. (EST) the next business day after receipt of instruments of payment from the
Offering, the Company or the Dealer Manager shall furnish the Escrow Agent with a list of the Investors who have paid for the Securities
showing the name, address, tax identification number, the amount of Securities subscribed for purchase, the amount paid and whether
such Investors are Washington or Pennsylvania Investors. The information comprising the identity of Investors shall be provided
to the Escrow Agent in substantially the format set forth in the list of investors attached hereto as Exhibit B (the “List
of Investors”). The Escrow Agent shall be entitled to conclusively rely upon the List of Investors in determining whether
Investors are Washington or Pennsylvania Investors and shall have no duty to independently determine or verify the same.

 

When a Soliciting Dealer’s
internal supervisory procedures are conducted at the site at which the subscription agreement and the check for the purchase of
Securities were initially received by Soliciting Dealer from the subscriber, such Soliciting Dealer shall transmit the subscription
agreement and such check to the Escrow Agent by the end of the next business day following receipt of the check for the purchase
of Securities and subscription agreement. When, pursuant to such Soliciting Dealer’s internal supervisory procedures, such
Soliciting Dealer’s final internal supervisory procedures are conducted at a different location (the “Final Review
Office”), such Soliciting Dealer shall transmit the check for the purchase of Securities and subscription agreement to
the Final Review Office by the end of the next business day following Soliciting Dealer’s receipt of the subscription agreement
and the check for the purchase of Securities. The Final Review Office will, by the end of the next business day following its receipt
of the subscription agreement and the check for the purchase of Securities, forward both the subscription agreement and such check
to the Escrow Agent. If any subscription agreement solicited by a Soliciting Dealer is rejected by the Dealer Manager or the Company,
then the subscription agreement and check for the purchase of Securities will be returned to the rejected subscriber within ten
(10) business days from the date of rejection.

 

All Investor Funds
deposited in the Escrow Account shall not be subject to any liens or charges by the Company or the Escrow Agent, or judgments or
creditors’ claims against the Company, until and unless released to the Company as hereinafter provided. The Company understands
and agrees that the Company shall not be entitled to any Investor Funds on deposit in the Escrow Account and no such funds shall
become the property of the Company, or any other entity except as released to the Company pursuant to Sections 3,4,
or 5 hereto. The Escrow Agent will not use the information provided to it by the Company for any purpose other than to fulfill
its obligations as Escrow Agent hereunder. The Company and the Escrow Agent will treat all Investor information as confidential.
The Escrow Agent shall not be required to accept any Investor Funds which are not accompanied by the information on the List of
Investors.

  

3.          Disbursement
of Funds. Once proceeds from the sale of Securities equal the Minimum Amount (excluding Securities sold to Washington and Pennsylvania
Investors), the Company shall notify the Escrow Agent of the same in writing. Further, if the Minimum Amount has not been sold
on or prior to the Termination Date, the Company shall notify the Escrow Agent in writing of such. At the end of the third business
day following the Termination Date (as defined in Section 6), the Escrow Agent shall notify the Company of the amount of
the Investor Funds received. If the Minimum Amount has been obtained on or before the Termination Date, the Escrow Agent shall
promptly notify the Company and, upon receiving acknowledgement of such notice and written instructions from the Company’s
Chief Executive Officer, President or Chief Financial Officer to disburse the Investor Funds, subject to section 4, the Escrow
Agent shall disburse to the Company, by check or wire transfer, the funds in the Escrow Account, except for amounts payable by
the Company to the Escrow Agent pursuant to Exhibit D to this Agreement that remain outstanding. The Escrow Agent agrees
that funds in the Escrow Account shall not be released to the Company until and unless the Escrow Agent receives written instructions
to release the funds from the Company’s Chief Executive Officer, President or Chief Financial Officer.

 

    	 

    	 

    

 

If the Company notifies
the Escrow Agent in writing that the Minimum Amount has not been obtained prior to the Termination Date, the Escrow Agent shall
promptly following the Termination Date, but in no event more than ten (10) business days after the Termination Date, refund to
each Investor by check, funds deposited in the Escrow Account, or shall return the instruments of payment delivered to Escrow Agent
if such instruments have not been processed for collection prior to such time, directly to each Investor at the address provided
on the List of Investors. Included in the remittance shall be a proportionate share of the income earned in the account allocable
to each Investor’s investment in accordance with the terms and conditions specified herein, except that in the case of Investors
who have not provided an executed Form W-9 or substitute Form W-9 (or the applicable substitute Form W-8 for foreign investors),
the Escrow Agent shall withhold the applicable percentage of the earnings attributable to those Investors in accordance with Internal
Revenue Service (“IRS”) regulations. Notwithstanding the foregoing, the Escrow Agent shall not be required to
remit any payments until funds represented by such payments have been collected by the Escrow Agent.

 

If the Escrow Agent
receives written notice from the Company that the Company intends to reject an Investor’s subscription, the Escrow Agent
shall pay to the applicable Investor(s), within a reasonable time not to exceed ten (10) business days after receiving notice of
the rejection, by first class United States Mail at the address provided on the List of Investors, or at such other address as
shall be furnished to the Escrow Agent by the Investor in writing, all collected sums paid by the Investor for Securities and received
by the Escrow Agent, together with the interest earned on such Investor Funds (determined in accordance with the terms and conditions
specified herein).

 

4.          Disbursement
of Proceeds for Pennsylvania Investors. Notwithstanding the foregoing, proceeds from sales of Securities to Pennsylvania Investors
will not count towards meeting the Minimum Amount for purposes of Section 3. Proceeds received from sales of Securities
to Pennsylvania Investors will not be released from the Escrow Account until the Pennsylvania Minimum Amount is obtained. If the
Pennsylvania Minimum Amount is obtained at any time prior to the Termination Date, the Escrow Agent shall promptly notify the Company
and, upon receiving acknowledgement of such notice and written instructions from the Company’s Chief Executive Officer, President
or Chief Financial Officer, the Escrow Agent shall disburse to the Company, by check or wire transfer, the funds in the Escrow
Account representing proceeds from Pennsylvania investors, except for amounts payable by the Company to the Escrow Agent pursuant
to Exhibit D to this Agreement that remain outstanding. The Escrow Agent agrees that the Pennsylvania Minimum Amount in
the Escrow Account shall not be released to the Company until and unless the Escrow Agent receives written instructions to release
the funds from the Company’s Chief Executive Officer, President or Chief Financial Officer.

  

If the Pennsylvania
Minimum Amount has not been obtained prior to the Termination Date, upon written instructions from the Company’s Chief Executive
Officer, President or Chief Financial Officer, the Escrow Agent shall promptly refund to each Pennsylvania Investor by check funds
deposited in the Escrow Account, or shall return the instruments of payment delivered to Escrow Agent if such instruments have
not been processed for collection prior to such time, directly to each Pennsylvania Investor at the address provided on the List
of Investors. Included in the remittance shall be a proportionate share of the income earned in the account allocable to each Pennsylvania
Investor’s investment in accordance with the terms and conditions specified herein, except that in the case of Investors
who have not provided an executed Form W-9 or substitute Form W-9, the Escrow Agent shall withhold the applicable percentage of
the earnings attributable to those Investors in accordance with IRS regulations. Notwithstanding the foregoing, the Escrow Agent
shall not be required to remit any payments until funds represented by such payments have been collected by Escrow Agent.

 

If the Escrow Agent
is not in receipt of evidence of subscriptions accepted on or before the close of business on such date that is 120 days after
the initial effective date of the Offering Document by the Securities and Exchange Commission (the “SEC”) (the
“Initial Escrow Period”), and instruments of payment dated not later than that date, for the purchase of Securities
providing for total purchase proceeds from all nonaffiliated sources that equal or exceed the Pennsylvania Minimum Amount, the
Escrow Agent shall promptly notify the Company. Thereafter, the Company or its agents shall send to each Pennsylvania Investor
by certified mail within ten (10) calendar days after the end of the Initial Escrow Period a notification substantially in the
form of Exhibit F. If, pursuant to such notification, a Pennsylvania Investor requests the return of his or her Investor
Funds within ten (10) calendar days after receipt of the notification (the “Request Period”), the Escrow Agent
shall promptly refund directly to each Pennsylvania Investor the collected funds deposited in the Escrow Account on behalf of such
Pennsylvania Investor or shall return the instruments of payment delivered, but not yet processed for collection prior to such
time, to the address provided on the List of Investors, upon which the Escrow Agent shall be entitled to rely, together with interest
income earned as determined in accordance with the terms and conditions specified herein (which interest shall be paid within five
business days after the first business day of the succeeding month). Notwithstanding the above, if the Escrow Agent has not received
an executed Form W-9 or substitute Form W-9 for such Pennsylvania Investor, the Escrow Agent shall thereupon remit an amount to
such Pennsylvania Investor in accordance with the provisions hereof, withholding the applicable percentage for backup withholding
in accordance with IRS regulations, as then in effect, from any interest income earned on Investor Funds (determined in accordance
with the terms and conditions specified herein) attributable to such Pennsylvania Investor. However, the Escrow Agent shall not
be required to remit such payments until the Escrow Agent has collected funds represented by such payments.

 

    	 

    	 

    

  

The Investor Funds
of Pennsylvania Investors who do not request the return of their Investor Funds within the Request Period shall remain in the Escrow
Account for successive 120-day escrow periods (each a “Successive Escrow Period”), each commencing automatically upon
the termination of the prior Successive Escrow Period, and the Company and Escrow Agent shall follow the notification and payment
procedure set forth above with respect to the Initial Escrow Period for each Successive Escrow Period until the occurrence of the
earliest of (i) the Termination Date, (ii) the receipt and acceptance by the Company of subscriptions for the purchase of Securities
with total purchase proceeds that equal or exceed the Pennsylvania Minimum Amount and the disbursement of the Escrow Account on
the terms specified herein, and (iii) all funds held in the Escrow Account having been returned to the Pennsylvania Investors in
accordance with the provisions hereof.

 

5.          Disbursement
of Proceeds for Washington Investors. Notwithstanding the foregoing, proceeds from sales of Securities to Washington Investors
will not count towards meeting the Minimum Amount for purposes of Section 3. Proceeds received from sales of Securities
to Washington Investors will not be released from the Escrow Account until the Washington Minimum Amount is obtained. If the Washington
Minimum Amount is obtained at any time prior to the Termination Date, the Escrow Agent shall promptly notify the Company and, upon
receiving acknowledgement of such notice and written instructions from the Company’s Chief Executive Officer, President or
Chief Financial Officer, the Escrow Agent shall disburse to the Company, by check or wire transfer, the funds in the Escrow Account
representing proceeds from Washington investors, except for amounts payable by the Company to the Escrow Agent pursuant to Exhibit
D to this Agreement that remain outstanding. The Escrow Agent agrees that the Washington Minimum Amount in the Escrow Account
shall not be released to the Company until and unless the Escrow Agent receives written instructions to release the funds from
the Company’s Chief Executive Officer, President or Chief Financial Officer.

  

If the Washington Minimum
Amount has not been obtained prior to the Termination Date, upon written instructions from the Company’s Chief Executive
Officer, President or Chief Financial Officer, the Escrow Agent shall promptly refund to each Washington Investor by check funds
deposited in the Escrow Account, or shall return the instruments of payment delivered to Escrow Agent if such instruments have
not been processed for collection prior to such time, directly to each Washington Investor at the address provided on the List
of Investors. Included in the remittance shall be a proportionate share of the income earned in the account allocable to each Washington
Investor’s investment in accordance with the terms and conditions specified herein, except that in the case of Investors
who have not provided an executed Form W-9 or substitute Form W-9, the Escrow Agent shall withhold the applicable percentage of
the earnings attributable to those Investors in accordance with IRS regulations. Notwithstanding the foregoing, the Escrow Agent
shall not be required to remit any payments until funds represented by such payments have been collected by Escrow Agent.

  

6.          Term
of Escrow. The “Termination Date” shall be the earliest of: (i) February 12, 2014, the one year anniversary
of the date the Offering Document was initially declared effective by the SEC, if the Minimum Amount has not been obtained prior
to such date; (ii) the close of business on February 12, 2015, the two year anniversary of the date the Offering Document was initially
declared effective by the SEC; (iii) the date on which all funds held in the Escrow Account are distributed to the Company or to
Investors pursuant to Section 3, for Pennsylvania Investors, Section 4, for Washington Investors, Section 5
and the Company has informed the Escrow Agent in writing to close the Escrow Account; (iv) the date the Escrow Agent receives written
notice from the Company that it is abandoning the sale of the Securities; and (v) the date the Escrow Agent receives notice from
the SEC or any other federal regulatory authority that a stop or similar order has been issued with respect to the Offering Document
and has remained in effect for at least twenty (20) days. After the Termination Date, the Company and its agents shall not deposit,
and the Escrow Agent shall not accept, any additional amounts representing payments by prospective Investors.

 

    	 

    	 

    

 

7.          Duty
and Liability of the Escrow Agent. The sole duty of the Escrow Agent shall be to receive Investor Funds and hold them subject
to release, in accordance herewith, and the Escrow Agent shall be under no duty to determine whether the Company or the Dealer
Manager is complying with requirements of this Agreement, the Offering or applicable securities or other laws in tendering the
Investor Funds to the Escrow Agent. No other agreement entered into between the parties, or any of them, shall be considered as
adopted or binding, in whole or in part, upon the Escrow Agent notwithstanding that any such other agreement may be referred to
herein or deposited with the Escrow Agent or the Escrow Agent may have knowledge thereof, including specifically but without limitation,
the Offering Document or any other document relating to the Offering (including the subscription agreement and exhibits thereto),
and the Escrow Agent’s rights and responsibilities shall be governed solely by this Agreement. The Escrow Agent shall not
be responsible for or be required to enforce any of the terms or conditions of the Offering Document or any other document relating
to the Offering (including the subscription agreement and exhibits thereto) or other agreement between the Company and any other
party. The Escrow Agent may conclusively rely upon and shall be protected in acting upon any statement, certificate, notice, request,
consent, order or other document believed by it to be genuine and to have been signed or presented by the proper party or parties.
The Escrow Agent shall have no duty or liability to verify any such statement, certificate, notice, request, consent, order or
other document, and its sole responsibility shall be to act only as expressly set forth in this Agreement. Concurrent with the
execution of this Agreement, the Company and the Dealer Manager shall each deliver to the Escrow Agent an authorized signers form
in the form of Exhibit C or Exhibit C-1 to this Agreement, as applicable. The Escrow Agent shall be under no obligation
to institute or defend any action, suit or proceeding in connection with this Agreement unless first indemnified to its satisfaction.
The Escrow Agent may consult counsel of its own choice with respect to any question arising under this Agreement and the Escrow
Agent shall not be liable for any action taken or omitted in good faith upon advice of such counsel. The Escrow Agent shall not
be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction determines
that the Escrow Agent’s gross negligence or willful misconduct was the primary cause of loss. The Escrow Agent is acting
solely as escrow agent hereunder and owes no duties, covenants or obligations, fiduciary or otherwise, to any other person by reason
of this Agreement, except as otherwise stated herein, and no implied duties, covenants or obligations, fiduciary or otherwise,
shall be read into this Agreement against the Escrow Agent. If any disagreement between any of the parties to this Agreement, or
between any of them and any other person, including any Investor, resulting in adverse claims or demands being made in connection
with the matters covered by this Agreement, or if the Escrow Agent is in doubt as to what action it should take hereunder, the
Escrow Agent may, at its option, refuse to comply with any claims or demands on it, or refuse to take any other action hereunder,
so long as such disagreement continues or such doubt exists, and in any such event, the Escrow Agent shall not be or become liable
in any way or to any person for its failure or refusal to act, and the Escrow Agent shall be entitled to continue so to refrain
from acting until (i) the rights of all interested parties shall have been fully and finally adjudicated by a court of competent
jurisdiction, or (ii) all differences shall have been adjudged and all doubt resolved by agreement among all of the interested
persons, and the Escrow Agent shall have been notified thereof in writing signed by all such persons. Notwithstanding the foregoing,
the Escrow Agent may in its discretion obey the order, judgment, decree or levy of any court, whether with or without jurisdiction
and the Escrow Agent is hereby authorized in its sole discretion to comply with and obey any such orders, judgments, decrees or
levies. If any controversy should arise with respect to this Agreement, the Escrow Agent shall have the right, at its option, to
institute an interpleader action in any court of competent jurisdiction to determine the rights of the parties. IN NO EVENT SHALL
THE ESCROW AGENT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL LOSSES OR DAMAGES OF ANY KIND WHATSOEVER
(INCLUDING WITHOUT LIMITATION LOST PROFITS), EVEN IF THE ESCROW AGENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES
AND REGARDLESS OF THE FORM OF ACTION. The parties hereto agree that the Escrow Agent has no role in the preparation of the Offering
Document or any other document related to the Offering (including the subscription agreement and exhibits thereto) and makes no
representations or warranties with respect to the information contained therein or omitted therefrom. The Escrow Agent shall have
no obligation, duty or liability with respect to compliance with any federal or state securities, disclosure or tax laws concerning
the Offering Document or any other document related to the Offering (including the subscription agreement and exhibits thereto)
or the issuance, offering or sale of the Securities. The Escrow Agent shall have no duty or obligation to monitor the application
and use of the Investor Funds once transferred to the Company, that being the sole obligation and responsibility of the Company.

 

    	 

    	 

    

  

8.          Escrow
Agent’s Fee. The Escrow Agent shall be entitled to compensation for its services as stated in the fee schedule attached
hereto as Exhibit D, which compensation shall be paid by the Company. The fee agreed upon for the services rendered hereunder
is intended as full compensation for the Escrow Agent’s services as contemplated by this Agreement; provided, however,
that if (i) the conditions for the disbursement of funds under this Agreement are not fulfilled, (ii) the Escrow Agent renders
any material service not contemplated in this Agreement, (iii) there is any assignment of interest in the subject matter of this
Agreement, (iv) there is any material modification hereof, (v) if any material controversy arises hereunder, or (vi) the Escrow
Agent is made a party to any litigation pertaining to this Agreement, or the subject matter hereof, then the Escrow Agent shall
be reasonably compensated for such extraordinary services and reimbursed for all costs and expenses, including reasonable attorney’s
fees, occasioned by any delay, controversy, litigation or event, and the same shall be recoverable from the Company. The Company’s
obligations under this Section 8 shall survive the resignation or removal of the Escrow Agent and the assignment or termination
of this Agreement.

 

9.          Investment
of Investor Funds. The Investor Funds shall be deposited in the Escrow Account in accordance with Section 1. The Escrow
Agent is hereby directed to invest all funds received under this Agreement, including principal and interest in, the UMB Bank Money
Market Deposit Account, as directed in writing in the form of Exhibit E to this Agreement. In the absence of written investment
instructions from the Company to the contrary, the Escrow Agent is hereby directed to invest the Investor Funds in the UMB Bank
Money Market Deposit Account. Notwithstanding the foregoing, Investor Funds shall not be invested in anything other than “Short
Term Investments” in compliance with Rule 15c2-4 of the Securities Exchange Act of 1934, as amended. The following are not
permissible investments: (a) money market mutual funds; (b) corporate debt or equity securities; (c) repurchase agreements; (d) banker’s
acceptance; (e) commercial paper; and (f) municipal securities. Any interest received by the Escrow Agent with respect to the Investor
Funds, including reinvested interest shall become part of the Investor Funds, and shall be disbursed pursuant to Section 3,
for Pennsylvania Investors, Section 4 and for Washington investors, Section 5.

 

The Escrow Agent shall
be entitled to sell or redeem any such investments as necessary to make any payments or distributions required under this Agreement.
The Escrow Agent shall have no responsibility or liability for any loss which may result from any investment made pursuant to this
Agreement, or for any loss resulting from the sale of such investment. The parties acknowledge that the Escrow Agent is not providing
investment supervision, recommendations, or advice.

 

On or prior to the
date of this Agreement, the Company shall provide the Escrow Agent with a certified tax identification number by furnishing an
appropriate IRS form W-9 or W-8 (or substitute Form W-9 or W-8) and other forms and documents that the Escrow Agent may reasonably
request, including without limitation a tax form for each Investor. The Company understands that if such tax reporting documentation
is not so certified to the Escrow Agent, the Escrow Agent may be required by the Internal Revenue Code of 1986, as amended, to
withhold a portion of any interest or other income earned on the Investor Funds pursuant to this Agreement. For tax reporting purposes,
all interest and other income from investment of the Investor Funds shall, as of the end of each calendar year and to the extent
required by the IRS, be reported as having been earned by the party to whom such interest or other income is distributed, in the
year in which it is distributed.

 

The Company agrees
to indemnify and hold the Escrow Agent harmless from and against any taxes, additions for late payment, interest, penalties and
other expenses that may be assessed against the Escrow Agent on or with respect to any payment or other activities under this Agreement
unless any such tax, addition for late payment, interest, penalties and other expenses shall be determined by a court of competent
jurisdiction to have been caused by the Escrow Agent’s gross negligence or willful misconduct. The terms of this Section
shall survive the termination of this Agreement and the resignation or removal of the Escrow Agent.

 

10.          Notices.
All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been
duly given (a) on the date of service if served personally on the party to whom notice is to be given, (b) on the day of transmission
if sent by facsimile/email transmission bearing an authorized signature to the facsimile number/email address given below, and
written confirmation of receipt is obtained promptly after completion of transmission, (c) on the day after delivery to Federal
Express or similar overnight courier or the Express Mail service maintained by the United States Postal Service, or (d) on the
fifth day after mailing, if mailed to the party to whom notice is to be given, by first class mail, registered or certified, postage
prepaid, and properly addressed, return receipt requested, to the party as follows:

 

    	 

    	 

    

  

If to the Company:

 

ARC Realty Finance
Trust, Inc.

405 Park Avenue, 15th Floor

New York, New York 10022

Fax: (212) 421-5799

Attention: Peter M. Budko, President and Secretary

 

with a copy to:

 

Alston & Bird LLP

1201 West Peachtree Street

Atlanta, GA 30309-3424

Telephone: (404) 881-7000

Fax: (404) 881-7777

Attention: Rosemarie A. Thurston, Esq.

 

If to the Dealer Manager:

 

Realty Capital Securities, LLC

Three Copley Place

Suite 3300

Boston, Massachusetts 02116

Attention: Louisa Quarto, President

 

with a copy to:

 

Alston & Bird LLP

1201 West Peachtree Street

Atlanta, GA 30309-3424

Telephone: (404) 881-700

Fax: (404) 881-7777

Attention: Rosemarie A. Thurston, Esq.

 

and:

 

ARC Realty Finance Trust, Inc.

405 Park Avenue, 15th Floor

New York, New York 10022

Fax: (212) 421-5799

Attention: Peter M. Budko, President and Secretary

 

If to Escrow Agent:

 

UMB Bank, N.A.

1010 Grand Blvd., 4th Floor

Mail Stop: 1020409

Kansas City, Missouri 64106

Attention: Lara Stevens, Corporate Trust

Telephone: (816) 860-3017

Facsimile: (816) 860-3029

Email: lara.stevens@umb.com

 

Any party may change its address for purposes
of this Section by giving the other party written notice of the new address in the manner set forth above.

 

    	 

    	 

    

 

11.         Indemnification
of Escrow Agent. The Company and the Dealer Manager hereby agree to jointly and severally indemnify, defend and hold harmless
the Escrow Agent from and against, any and all loss, liability, cost, damage and expense, including, without limitation, reasonable
counsel fees and expenses, which the Escrow Agent may suffer or incur by reason of any action, claim or proceeding brought against
the Escrow Agent arising out of or relating in any way to this Agreement or any transaction to which this Agreement relates unless
such loss, liability, cost, damage or expense is finally determined by a court of competent jurisdiction to have been primarily
caused by the gross negligence or willful misconduct of the Escrow Agent. The terms of this Section shall survive the termination
of this Agreement and the resignation or removal of the Escrow Agent.

 

12.         Successors
and Assigns. Except as otherwise provided in this Agreement, no party hereto shall assign this Agreement or any rights or obligations
hereunder without the prior written consent of the other parties hereto and any such attempted assignment without such prior written
consent shall be void and of no force and effect. This Agreement shall inure to the benefit of and shall be binding upon the successors
and permitted assigns of the parties hereto. Any corporation or association into which the Escrow Agent may be converted or merged,
or with which it may be consolidated, or to which it may sell or transfer all or substantially all of its corporate trust business
and assets as a whole or substantially as a whole, or any corporation or association resulting from any such conversion, sale,
merger, consolidation or transfer to which the Escrow Agent is a party, shall be and become the successor Escrow Agent under this
Agreement and shall have and succeed to the rights, powers, duties, immunities and privileges as its predecessor, without the execution
or filing of any instrument or paper or the performance of any further act.

 

13.         Governing
Law; Jurisdiction. This Agreement shall be construed, performed, and enforced in accordance with, and governed by, the internal
laws of the State of New York, without giving effect to the principles of conflicts of laws thereof.

 

14.         Severability.
If any provision of this Agreement is declared by any court or other judicial or administrative body to be null, void, or unenforceable,
said provision shall survive to the extent it is not so declared, and all of the other provisions of this Agreement shall remain
in full force and effect.

  

15.         Amendments;
Waivers. This Agreement may be amended or modified, and any of the terms, covenants, representations, warranties, or conditions
hereof may be waived, only by a written instrument executed by the parties hereto, or in the case of a waiver, by the party waiving
compliance. Any waiver by any party of any condition, or of the breach of any provision, term, covenant, representation, or warranty
contained in this Agreement, in any one or more instances, shall not be deemed to be nor construed as further or continuing waiver
of any such condition, or of the breach of any other provision, term, covenant, representation, or warranty of this Agreement.
The Company and the Dealer Manager agree that any requested waiver, modification or amendment of this Agreement shall be consistent
with the terms of the Offering.

 

16.         Entire
Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the escrow
contemplated hereby and supersedes and replaces all prior and contemporaneous agreements and understandings, oral or written, with
regard to such escrow.

 

17.         Section
Headings. The section headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation
of this Agreement.

 

18.         Counterparts.
This Agreement may be executed (including by facsimile transmission) with counterpart signature pages or in counterparts, each
of which shall be deemed an original, but all of which shall constitute the same instrument.

 

19.         Resignation.
The Escrow Agent may resign upon 30 days’ advance written notice to the parties hereto. If a successor escrow agent is not
appointed by the Company within the 30-day period following such notice, the Escrow Agent may petition any court of competent jurisdiction
to name a successor escrow agent, or may interplead the Investor Funds with such court, whereupon the Escrow Agent’s duties
hereunder shall terminate.

 

    	 

    	 

    

 

20.         References
to Escrow Agent. Other than the Offering Document, any of the other documents related to the Offering (including the subscription
agreement and exhibits thereto) and any amendments thereof or supplements thereto, no printed or other matter in any language (including,
without limitation, notices, reports and promotional material) which mentions the Escrow Agent’s name or the rights, powers,
or duties of the Escrow Agent shall be issued by the Company or the Dealer Manager, or on the Company’s or the Dealer Manager’s
behalf, unless the Escrow Agent shall first have given its specific written consent thereto. Notwithstanding the foregoing, any
amendment or supplement to the Offering Document or any other document related to the Offering (including the subscription agreement
and exhibits thereto) that revises, alters, modifies, changes or adds to the description of the Escrow Agent or its rights, powers
or duties hereunder shall not be issued by the Company or the Dealer Manager, or on the Company’s or Dealer Manager’s
behalf, unless the Escrow Agent has first given specific written consent thereto.

 

21.         Patriot
Act Compliance; OFAC Search Duties. The Company shall provide to the Escrow Agent upon the execution of this Agreement any
documentation requested and any information reasonably requested by the Escrow Agent to comply with the USA Patriot Act of 2001,
as amended from time to time. The Escrow Agent, or its agent, shall complete a search with the Office of Foreign Assets Control
(“OFAC Search”), in compliance with its policy and procedures, of each subscription check for the purchase of
Securities and shall inform the Company if a subscription check for the purchase of Securities fails the OFAC Search.

 

[Signature page follows]

 

    	 

    	 

    

  

IN WITNESS WHEREOF,
the parties hereto have caused this Amended and Restated Escrow Agreement to be executed the date and year first set forth above.

 

ARC REALTY FINANCE TRUST, INC.

 

	By:	 /s/ Peter M. Budko	 
	 	Name:  Peter M. Budko	 
	 	Title:  President and Secretary	 

 

REALTY CAPITAL SECURITIES, LLC

 

	By:	 /s/ Louisa Quarto	 
	 	Name:  Louisa Quarto	 
	 	Title:  President	 

 

	UMB BANK, N.A., as Escrow Agent	 
	 	 
	By:	 /s/ Lara L. Stevens	 
	 	Name:  Lara L. Stevens	 
	 	Title:  Vice President	 

  

    	 

    	 

    

  

Exhibit A

Copy of Offering Document 

 

    	 

    	 

    

  

Exhibit B

List of Investors

 

Pursuant to the Amended and Restated Escrow
Agreement dated as of March 13, 2013, among Realty Capital Securities, LLC, ARC Realty Finance Trust, Inc. (the “Company”),
and UMB Bank, N.A. (the “Escrow Agent”), the Company or its agents hereby certifies that the following Investors
have paid money for the purchase of shares of the Company’s common stock, par value $0.01 (“Securities”),
and the money has been deposited with the Escrow Agent:

 

		1.	Name of Investor

Address

Tax Identification Number

Amount of Securities subscribed for

Amount of money paid and deposited with Escrow Agent

Is Investor a resident of Pennsylvania (Yes or No)?

Is Investor a resident of Washington
(Yes or No)?

 

		2.	Name of Investor

Address

Tax Identification Number

Amount of Securities subscribed for

Amount of money paid and deposited with Escrow Agent

Is Investor a resident of Pennsylvania (Yes or No)?

Is Investor a resident
of Washington (Yes or No)?

 

	Dated:	 	 

 

REALTY CAPITAL SECURITIES, LLC

 

	By:	 	 
	 	Name:  Louisa Quarto	 
	 	Title:  President	 

  

    	 

    	 

    

  

Exhibit C

CERTIFICATE AS TO AUTHORIZED SIGNATURES

 

Account Name:

 

Account Number:

 

The specimen signatures shown below are
the specimen signatures of the individuals who have been designated as Authorized Representatives of ARC Realty Finance Trust,
Inc. and are authorized to initiate and approve transactions of all types for the above-mentioned account on behalf of ARC Realty
Finance Trust, Inc.

 

	Name/Title	Specimen Signature
	 	 
	
        Nicholas S. Schorsch

        Chief Executive Officer
	 
	Signature
	 	 
	
        Peter M. Budko

        President and Secretary
	 
	Signature
	 	 
	Nicholas Radesca	 
	Executive Vice President and Chief Financial Officer	Signature

 

    	 

    	 

    

  

Exhibit C-1

 

CERTIFICATE AS TO AUTHORIZED SIGNATURES

 

Account Name:

 

Account Number:

 

The specimen signatures shown below are
the specimen signatures of the individuals who have been designated as Authorized Representatives of Realty Capital Securities,
LLC and are authorized to initiate and approve transactions of all types for the above-mentioned account on behalf of Realty Capital
Securities, LLC.

 

	Name/Title	Specimen Signature
	 	 
	
        Edward M. Weil, Jr.

        Chief Executive Officer
	 
	Signature
	 	 
	
        Louisa Quarto

        President
	 
	Signature
	 	 
	John H. Grady	 
	Chief Operating Officer and Chief Compliance Officer	Signature

 

    	 

    	 

    

  

Exhibit D

 

ESCROW FEES AND EXPENSES

 

Acceptance Fee

 

Review escrow agreement, establish account $3,000

DST Agency Engagement (if applicable) $250

 

Annual Fees

 

Annual Escrow Agent $2,500

BAI Files $50 per month

Outgoing Wire Transfer $15 each

Daily Recon File to Transfer Agent $2.50 per Bus. Day

Web Exchange Access $15 per month

Overnight Delivery/Mailings $16.50 each

IRS Tax Reporting $10 per 1099

 

Fees specified are for the regular, routine
services contemplated by the Amended and Restated Escrow Agreement, and any additional or extraordinary services, including, but
not limited to disbursements involving a dispute or arbitration, or administration while a dispute, controversy or adverse claim
is in existence, will be charged based upon time required at the then standard hourly rate. In addition to the specified fees,
all expenses related to the administration of the Amended and Restated Escrow Agreement (other than normal overhead expenses of
the regular staff) such as, but not limited to, travel, postage, shipping, courier, telephone, facsimile, supplies, legal fees,
accounting fees, etc., will be reimbursable.

 

Acceptance fee and first year Annual Escrow
Agent fee will be payable at the initiation of the escrow. Thereafter, the Annual Escrow Agent fees will be billed in advance
and transactional fees will be billed in arrears. Other fees and expenses will be billed as incurred. 

 

    	 

    	 

    

 

Exhibit E

Agency and Custody Account Direction

For Cash Balances

UMB Bank Money Market Deposit Accounts

 

Direction to use the following UMB Bank
Money Market Deposit Accounts for Cash Balances for the escrow account (the “Account”) created under the Amended
and Restated Escrow Agreement to which this Exhibit E is attached.

 

You are hereby directed to deposit, as
indicated below, or as we shall direct further in writing from time to time, all cash in the Account in the following money market
deposit account of UMB Bank, N.A. (“Bank”):

 

UMB Bank Money Market Deposit Account (“MMDA”)

 

We acknowledge that we have full power
to direct investments in the Account.

 

We understand that we may change this direction
at any time and that it shall continue in effect until revoked or modified by us by written notice to you.

 

ARC Realty Finance Trust, Inc.

 

	By:	 	 
	 	Signature	 
	 	 	 

 

	Date	 

 

    	 

    	 

    

  

Exhibit F

[Form of Notice to Pennsylvania Investors]

 

You have tendered a subscription to purchase
shares of common stock of ARC Realty Finance Trust, Inc. (the “Company”). Your subscription is currently being
held in escrow. The guidelines of the Pennsylvania Securities Commission do not permit the Company to accept subscriptions from
Pennsylvania residents until an aggregate of $100,000,000 of gross offering proceeds have been received by the Company. The Pennsylvania
guidelines provide that until this minimum amount of offering proceeds is received by the Company, every 120 days during the offering
period Pennsylvania Investors may request that their subscription be returned. If you wish to continue your subscription in escrow
until the Pennsylvania minimum subscription amount is received, nothing further is required.

 

If you wish to terminate your subscription
for the Company’s common stock and have your subscription returned please so indicate below, sign, date, and return to the
Escrow Agent, UMB Bank, N.A. at 1010 Grand Blvd., 4th Floor, Mail Stop: 1020409, Kansas City, Missouri 64106, Attn: Lara Stevens,
Corporate Trust.

 

I hereby terminate my prior subscription
to purchase shares of common stock of ARC Realty Finance Trust, Inc. and request the return of my subscription funds. I certify
to ARC Realty Finance Trust, Inc. that I am a resident of Pennsylvania.

 

	Signature:	 
	 	 
	Name:	 
	 	(please print)
	 	 
	Date:	 

 

Please send the subscription refund to:ADVISORY AGREEMENT

BY AND AMONG

ARC REALTY FINANCE TRUST, INC.,

ARC REALTY FINANCE OPERATING PARTNERSHIP, L.P.,

AND

ARC REALTY FINANCE ADVISORS, LLC

Dated as of February 12, 2013

  

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	1.  DEFINITIONS	 	1
	 	 	 
	2.  APPOINTMENT	 	6
	 	 	 
	3.  DUTIES OF THE ADVISOR	 	6
	 	 	 
	4.  AUTHORITY OF ADVISOR	 	8
	 	 	 
	5.  FIDUCIARY RELATIONSHIP	 	8
	 	 	 
	6.  NO PARTNERSHIP OR JOINT VENTURE	 	8
	 	 	 
	7.  BANK ACCOUNTS	 	9
	 	 	 
	8.  RECORDS; ACCESS	 	9
	 	 	 
	9.  LIMITATIONS ON ACTIVITIES	 	9
	 	 	 
	10.  FEES	 	9
	 	 	 
	11.  EXPENSES	 	11
	 	 	 
	12.  OTHER SERVICES	 	12
	 	 	 
	13.  REIMBURSEMENT TO THE ADVISOR	 	12
	 	 	 
	14.  OTHER ACTIVITIES OF THE ADVISOR	 	12
	 	 	 
	15.  THE AMERICAN REALTY CAPITAL NAME	 	13
	 	 	 
	16.  TERM OF AGREEMENT	 	13
	 	 	 
	17.  TERMINATION BY THE PARTIES	 	13

  

    	 

    	 

    

 

	18.  ASSIGNMENT TO AN AFFILIATE	13
	 	 
	19.  PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION	13
	 	 
	20.  NON-SOLICITATION	14
	 	 
	21.  INCORPORATION OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT	14
	 	 
	22.  INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP	14
	 	 
	23.  INDEMNIFICATION BY ADVISOR	15
	 	 
	24.  NOTICES	15
	 	 
	25.  MODIFICATION	16
	 	 
	26.  SEVERABILITY	16
	 	 
	27. GOVERNING LAW	16
	 	 
	28.  ENTIRE AGREEMENT	16
	 	 
	29.  NO WAIVER	17
	 	 
	30.  PRONOUNS AND PLURALS	17
	 	 
	31.  HEADINGS	17
	 	 
	32.  EXECUTION IN COUNTERPARTS	17

  

    	 

    	 

    

  

ADVISORY AGREEMENT 

 

THIS ADVISORY AGREEMENT
(this “Agreement”) dated as of February 12, 2013, is entered into among ARC Realty Finance Trust, Inc.,
a Maryland corporation (the “Company”), ARC Realty Finance Operating Partnership, L.P., a Delaware limited partnership
(the “Operating Partnership”), and ARC Realty Finance Advisors, LLC, a Delaware limited liability company.

 

WITNESSETH

 

WHEREAS, the Company
is a Maryland corporation organized in accordance with Maryland General Corporation Law and intends to qualify as a REIT;

 

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, all as provided herein; and

 

WHEREAS, the Advisor
is willing to render such services, subject to the supervision of the Board of Directors, 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 their Affiliates in connection with the selection, evaluation, acquisition, origination, making or development
of any Investments, whether or not acquired, including, without limitation, legal fees and expenses, travel and communications
expenses, brokerage fees, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses,
title insurance premiums, the costs of performing due diligence, and miscellaneous expenses related to selection and acquisition
of Investments, whether or not acquired.

 

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

 

 “Advisor”
means ARC Realty Finance Advisors, LLC, a Delaware limited liability company, any successor advisor to the Company and the Operating
Partnership, or any Person to which ARC Realty Finance Advisors, LLC or any successor advisor subcontracts substantially all its
functions. Notwithstanding the foregoing, a Person hired or retained by ARC Realty Finance 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 ARC Realty Finance Advisors, LLC with respect to the Company and the Operating Partnership as a whole shall not be
deemed to be an Advisor.

 

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

 

    	 

    	 

    

 

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

 

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

 

“Asset
Management Fee” means the fees payable to the Advisor or its Affiliates pursuant to Section 10(d).

 

“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.

 

“Bylaws”
means the bylaws of the Company, as amended and as the same are in effect from time to time.

 

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

 

“Change
of Control” means a change of control of the Company of a nature that would be required to be reported in response
to the disclosure requirements of Schedule 14A of Regulation 14A promulgated under the Exchange Act, as enacted and in force on
the date hereof, whether or not the Company is then subject to such reporting requirements; provided, however, that, without
limitation, a Change of Control shall be deemed to have occurred if: (i) any “person” (within the meaning of Section
13(d) of the Exchange Act, as enacted and in force on the date hereof) is or becomes the “beneficial owner” (as that
term is defined in Rule 13d-3, as enacted and in force on the date hereof, under the Exchange Act) of securities of the Company
representing 9.8% or more of the combined voting power of the Company’s securities then outstanding; (ii) there occurs a
merger, consolidation or other reorganization of the Company which is not approved by the Board of Directors; (iii) there occurs
a sale, exchange, transfer or other disposition of substantially all the assets of the Company to another Person, which disposition
is not approved by the Board of Directors; or (iv) there occurs a contested proxy solicitation of the Stockholders that results
in the contesting party electing candidates to a majority of the Board of Directors’ positions next up for election.

 

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

 

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

 

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

 

    	 

    	 

    

 

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

 

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

 

“Cost of
Investments” means the Contract Purchase Price of Investments acquired, Acquisition Expenses, capital expenditures
and other customarily capitalized costs, but excludes Acquisition Fees.

 

“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.

  

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

 

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

 

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

 

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

 

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

 

“Financings”
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.

 

“FINRA”
means the Financial Industry Regulatory Authority.

 

“GAAP”
means U.S. 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, Dealer Manager Fees, 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.

 

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

 

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

 

“Listing”
means the listing of the Common Stock on a national securities exchange, or the inclusion of the Common Stock for trading in the
over-the-counter-market.

 

“NAREIT
FFO” means funds from operations (“FFO”) consistent with the standards established by the White Paper
on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) as
revised in February 2004 and as modified by NAREIT from time to time.

 

“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
Date” means the date within six months of February 12, 2015, or two years from the commencement
of the Offering, that the Company begins selling shares in its initial Offering at a price equal to per share NAV; provided that
the NAV Pricing Date may be earlier if required by FINRA, the SEC or other applicable regulatory authority.

 

“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 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 pursuant to an effective registration statement filed under the Securities Act.

 

“Operating
Partnership Agreement” means the Agreement of Limited Partnership of the Operating Partnership, among the Company,
the Operating Partnership and ARC Realty Finance Special Limited Partner, LLC, as the same may be amended from time to time.

 

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

  

“Organization
and Offering Expenses” means all expenses (other than the Selling Commission and the Dealer Manager Fee) to be paid
by the Company in connection with an Offering, including legal, accounting, printing, mailing and filing fees, charges of the escrow
holder, transfer agent expenses, due diligence expense reimbursements to the Dealer Manager and the Soliciting Dealers and amounts
to reimburse the Advisor for its portion of the salaries of the employees of its affiliates who provide services to the Advisor
and other costs in connection with administrative oversight of the Offering and marketing process and preparing supplemental sales
materials, holding educational conferences and attending retail seminars conducted by soliciting dealers.

 

“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, through one or more subsidiaries or through a Joint Venture.

 

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

 

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

 

“Registration
Statement” means the Company’s registration statement on Form S-11 (File No. 333-186111) and the prospectus
contained therein.

 

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

 

“Sale”
or “Sales” means any transaction or series of transactions whereby: (i) the Company or the Operating
Partnership directly or indirectly (except as described in other subsections of this definition) sells, grants, transfers, conveys
or relinquishes its direct or indirect ownership of any Real Estate Asset, Real Estate Related 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; (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.

 

    	 

    	 

    

 

“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 VIII, 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.

 

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

 

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

 

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

 

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

 

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

 

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

 

a.           serve
as the Company’s and the Operating Partnership’s investment and financial advisor and provide research and economic
and statistical data in connection with the Company’s assets and investment policies;

 

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

 

    	 

    	 

    

 

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

 

e.           subject
to the provisions of Section 4, (i) participate in formulating an investment strategy and asset allocation framework; (ii)
locate, analyze and select potential Investments; (iii) structure and negotiate the terms and conditions of transactions pursuant
to which acquisitions and dispositions of Investments will be made; (iv) research, identify, review, recommend and arrange 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) review and analyze each property’s operating and capital
budget; (vi) 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; (vii) 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; (viii) 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; (ix) select
Joint Venture partners, structure corresponding agreements and oversee and monitor these relationships; (x) oversee, supervise
and evaluate Affiliated and non-Affiliated property managers who perform services for the Company or the Operating Partnership;
(xi) oversee Affiliated and non-Affiliated Persons with whom the Advisor contracts to perform certain of the services required
to be performed under this Agreement; (xii) 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; (xiii) recommend various liquidity events to the Board when appropriate; and (xiv) source and structure
Real Estate Related Loans;

 

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

 

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

 

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

 

i.            obtain
reports (which may, but are not required to, be prepared by the Advisor or its Affiliates), where appropriate, concerning the value
of Investments or contemplated investments of the Company and the Operating Partnership;

 

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

   

k.          
provide the Company and the Operating Partnership with all necessary cash management services;

 

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

 

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

 

    	 

    	 

    

 

n.           perform
investor-relations and Stockholder communications functions for the Company;

 

o.           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;

 

p.           notify
the Board of all proposed material transactions before they are completed;

 

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

 

r.            do
all things reasonably necessary to assure its ability to render the services described in this Agreement;

 

s.     
     commencing with the NAV Pricing Date, calculate the NAV on a quarterly basis as provided in the
Registration Statement, and in connection therewith, obtain appraisals performed by the Independent Valuation Advisors;
and

 

t.            supervise
one or more Independent Valuation Advisors and, if and when necessary, recommend to the Board its replacement.

 

Notwithstanding the
foregoing or anything else that may be to the contrary in this Agreement, the Advisor may delegate any of the foregoing duties
to any Person so long as the Advisor or its Affiliate remains responsible for the performance of the duties set forth in this Section
3.

 

4.          AUTHORITY
OF ADVISOR.

 

a.           Pursuant
to the terms of this Agreement (including the restrictions included in this Section 4 and in Section 9), and subject
to the continuing and exclusive authority of the Board over the supervision of the Company, the Company, acting on the authority
of the Board of Directors, hereby delegates to the Advisor the authority to perform the services described in Section 3.

   

b.           Notwithstanding
anything herein to the contrary, all acquisitions of Real Estate Assets will require the prior approval of the Board, any particular
Directors specified by the Board or any committee of the Board specified by the Board, as the case may be.

 

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

 

d.          The
Board may, at any time upon the giving of notice to the Advisor, modify or revoke the authority set forth in this Section 4;
provided, however, that such modification or revocation shall be effective upon receipt by the Advisor and shall not be
applicable to investment transactions to which the Advisor has committed the Company or the Operating Partnership prior to the
date of receipt by the Advisor of such notification.

 

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

 

6.           NO
PARTNERSHIP OR JOINT VENTURE.           The parties to this Agreement are
not partners or joint venturers with each other and nothing herein shall be construed to make them partners or joint venturers
or impose any liability as such on either of them.

 

    	 

    	 

    

 

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

  

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

 

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

 

10.  
     FEES.

 

a.           Acquisition
Fee. Subject to Section 10(b), the Company shall pay an Acquisition Fee to the Advisor or its Affiliates as compensation
for services rendered in connection with the investigation, selection, acquisition and origination (by purchase, investment or
exchange) of Investments. If the Advisor is terminated without cause pursuant to Section 17(a), the Advisor or its
Affiliates shall be entitled to an Acquisition Fee for any Investments acquired after the Termination Date for which a contract
to acquire any such Investment had been entered into at or prior to the Termination Date. The total Acquisition Fee payable to
the Advisor or its Affiliates shall equal one percent (1.0%) of the Contract Purchase Price for any Investment acquired. The Contract
Purchase Price allocable for an Investment held through a Joint Venture shall equal the product of (i) the Contract Purchase Price
of the Investment and (ii) the direct or indirect ownership percentage in the Joint Venture held directly or indirectly by the
Company or the Operating Partnership. For purposes of this Section 10(a), “ownership percentage” shall be the percentage
of capital stock, membership interests, partnership interests or other equity interests held by the Company or the Operating Partnership,
without regard to classification of such equity interests. The Company shall pay the Advisor or its Affiliates the Acquisition
Fee promptly upon the closing of the Investment; provided, however, that such Acquisition Fee shall be paid to an Affiliate of
the Advisor that is registered as a FINRA member broker-dealer if applicable laws or regulations prohibit such payment to be made
to a person that is not a FINRA member broker-dealer. In addition, if during the period ending two years after the close of the
initial Offering, the Company sells an Investment and then reinvests in other Investments, the Company will pay to the Advisor
or its Affiliates one percent (1.0%) of the Contract Purchase Price for the other Investments.

  

b.           Limitation
on Total Acquisition Fees and Acquisition Expenses. The total of all Acquisition Fees and Acquisition Expenses payable
in connection with any Investment or any reinvestment shall be reasonable and shall not exceed an amount equal to four and one-half
percent (4.5%) of the Contract Purchase Price of such Investment; provided, however, that the
Advisor (i) will not be entitled to Acquisition Fees or reimbursement of Acquisition Expenses if there are insufficient Offering
proceeds or capital proceeds to pay such expenses and (ii) such expenses not paid to the Advisor will not be accrued and paid in
subsequent periods to the extent that there are not sufficient offering or capital proceeds to pay them; provided,
further, however, that a majority of the Directors (including a majority of the Independent Directors) not otherwise
interested in the transaction may approve fees and expenses in excess of these limits if they determine the transaction to be commercially
competitive, fair and reasonable to the Company.

  

    	 

    	 

    

 

c.           Disposition
Fees. In connection with a Sale of an Investment in which the Advisor or any Affiliate of the Advisor provides a substantial
amount of services, as determined by the Independent Directors, the Company shall pay to the Advisor or its assignees a Disposition
Fee of one percent (1.0%) of the Contract Sales Price of each Investment sold, including mortgage-backed securities or collateralized
debt obligations issued by a subsidiary of the Company as part of a securitization transaction; provided, however, that
such Disposition Fee shall be paid to an Affiliate of the Advisor that is registered as a FINRA member broker-dealer if applicable
laws or regulations prohibit such payment to be made to a person that is not a FINRA member broker-dealer; provided, further,
that in no event may the Disposition Fee paid to the Advisor, its Affiliates and non-Affiliates exceed the lesser of six percent
(6.0%) of the Contract Sales Price and a Competitive Real Estate Commission. Notwithstanding the foregoing, the Company will not
pay a Disposition Fee upon the maturity, prepayment, workout, modification or extension of a Real Estate Related Loan unless there
is a corresponding fee paid by the borrower, in which case the Disposition Fee will be the lesser of: (i) one percent (1.0%) of
the principal amount of the Real Estate Related Loan prior to such transaction; or (ii) the amount of the fee paid by the borrower
in connection with such transaction. If the Company takes ownership of a Real Property as a result of a workout or foreclosure
of a Real Estate Related Loan, the Company will pay a Disposition Fee upon the sale of such Real Property.

 

d.           Asset
Management Fee. The Company shall pay the Advisor or its Affiliates as compensation for services rendered in connection
with the management of the Company’s Investments an annual Asset Management Fee equal to three-quarters percent (0.75%) of
the Cost of Investments. Commencing on the NAV Pricing Date, the Asset Management Fee will be based on the lower of three-quarters
percent (0.75%) of the Cost of Investments (as calculated in the preceding sentence) and three-quarters percent (0.75%) of the
quarterly NAV. The Asset Management Fee will be payable monthly in arrears, based on Investments held by the Company during the
measurement period, adjusted for appropriate closing dates for individual Investments. The Asset Management Fee will be reduced
to the extent that NAREIT FFO, as adjusted, during the six (6) months ending on the last day of the calendar quarter immediately
preceding the date that such Asset Management Fee is payable, is less than the Distributions declared with respect to such six
(6) month period. For purposes of this determination, NAREIT FFO, as adjusted, is NAREIT FFO adjusted to (i) include Acquisition
Fees and Acquisition Expenses; (ii) include non-cash restricted stock grant amortization, if any; and (iii) impairments of Investments,
if any.

  

e.           Annual
Subordinated Performance Fee. The Company may pay an Annual Subordinated Performance Fee to the Advisor calculated on the
basis of the total return to Stockholders for any year in which the Company’s total return on Stockholders’ capital
contributions exceeds six percent (6%) per annum. With respect to such year, the Advisor will be paid fifteen percent (15%) of
the excess total return, not to exceed ten percent (10%) of the aggregate total return for such year. This fee will only be payable
upon the Sale of Investments, Distributions or other event which results in the Company’s total return on Stockholders’
capital contributions exceeding six percent (6%) per annum. This fee will be calculated annually and will be payable monthly over
12 months following the year for which the fee is being paid.

 

f.            Payment
of Fees. In connection with the Acquisition Fee, Disposition Fee and Annual Subordinated Performance Fee, the Company shall
pay such fees to the Advisor or its Affiliates in cash or in Shares, or a combination of both, the form of payment to be determined
in the sole discretion of the Advisor. The Asset Management Fee shall be payable, at the discretion of the Board of Directors,
in cash, Shares or grants of restricted Shares, or any combination thereof. For the purposes of the payment of any fees in Shares,
prior to the NAV Pricing Date, each Share shall be valued at the per share Offering price of the Shares in such Offering minus
the maximum Selling Commissions and Dealer Manager Fee allowed in the initial Offering. Commencing with the NAV Pricing Date, each
Share shall be valued using per share NAV; provided, however, that in the case of Asset Management Fees payable in grants
of restricted shares, each Share shall be valued in a manner consistent with the provisions of the equity incentive plan of the
Company.

  

g.           Exclusion
of Certain Transactions.

 

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

 

    	 

    	 

    

 

ii.         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.

 

11.         EXPENSES.

 

a.           In
addition to the compensation paid to the Advisor pursuant to Section 11, the Company or the Operating Partnership shall
pay directly or reimburse the Advisor for all the expenses paid or actually incurred by the Advisor or its Affiliates in connection
with the services it provides to the Company and the Operating Partnership pursuant to this Agreement, including, the following:

  

i.            Organization
and Offering Expenses, including third-party due diligence fees related to the Primary Offering, as set forth in detailed and itemized
invoices; provided, however, that the Company shall not reimburse the Advisor to the extent such reimbursement would cause
the total amount of Organization and Offering Expenses paid by the Company and the Operating Partnership to exceed one and three-quarters
percent (1.75%) of the Gross Proceeds raised in all Primary Offerings;

 

ii.         
Acquisition Expenses, subject to the limitations set forth in Section 10(b);

 

iii.         the
actual cost of goods and services used by the Company and obtained from Persons not Affiliated with the Advisor;

 

iv.         interest
and other costs for Financings, including discounts, points and other similar fees; taxes and assessments on income of the Company
or Investments;

 

v.          costs
associated with insurance required in connection with the business of the Company or by the Board;

 

vi.         expenses
of managing and operating Investments owned by the Company, whether payable to an Affiliate of the Company or a non-affiliated
Person;

  

vii.        all
expenses in connection with payments to the Directors for attending meetings of the Board and Stockholders;

 

viii.       expenses
associated with a Listing, if applicable, or with the issuance and distribution of Shares, such as selling commissions and fees,
advertising expenses, taxes, legal and accounting fees, listing and registration fees;

 

ix.         expenses
connected with payments of Distributions;

 

x.         
expenses of organizing, revising, amending, converting, modifying or terminating the Company, the Operating Partnership or
any subsidiary thereof or the Articles of Incorporation, Bylaws or governing documents of the Operating Partnership or any
subsidiary of the Company or the Operating Partnership;

 

xi.          expenses
of maintaining communications with Stockholders, including the cost of preparation, printing, and mailing annual reports and other
Stockholder reports, proxy statements and other reports required by governmental entities;

 

xii.         administrative
service expenses, including all costs and expenses incurred by Advisor or its Affiliates in fulfilling its duties hereunder, including
reasonable salaries and wages, benefits and overhead of all employees directly involved in the performance of such services; provided,
however, that no reimbursement shall be made for costs of such employees of the Advisor or its Affiliates to the extent
that such employees perform services for which the Advisor receives an Acquisition Fee or a Disposition Fee; and

 

xiii.         audit,
accounting and legal fees.

 

    	 

    	 

    

   

b.           Commencing
six (6) months after the initial release of Offering proceeds from escrow in the Company’s initial Offering, expenses incurred
by the Advisor on behalf of the Company and the Operating Partnership or in connection with the services provided by the Advisor
hereunder and payable pursuant to this Section 11 shall be reimbursed, no less than monthly, to the Advisor.

 

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

  

13.         REIMBURSEMENT
TO THE ADVISOR.           The Company shall not reimburse the Advisor at
the end of any fiscal quarter in which Total Operating Expenses incurred by the Advisor for the four (4) consecutive fiscal quarters
then ended (the “Expense Year”) exceed (the “Excess Amount”) the greater of two percent (2%)
of Average Invested Assets or twenty-five percent (25%) of Net Income (the “2%/25% Guidelines”) for such Expense
Year. Any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company or, at the option of the Company,
subtracted from the Total Operating Expenses reimbursed during the subsequent fiscal quarter. If there is an Excess Amount in any
Expense Year and the Independent Directors determine that such excess was justified based on unusual and nonrecurring factors which
they deem sufficient, then the Excess Amount may be carried over and included in Total Operating Expenses in subsequent Expense
Years and reimbursed to the Advisor in one or more of such years, provided that there shall be sent to the Stockholders a written
disclosure of such fact within sixty (60) days of the end of the fiscal quarter, together with an explanation of the factors the
Independent Directors considered in determining that such excess expenses were justified. Such determination shall be reflected
in the minutes of the meetings of the Board. All figures used in the foregoing computation shall be determined in accordance with
GAAP applied on a consistent basis.

 

14.         OTHER
ACTIVITIES OF THE ADVISOR.           Except as set forth in this Section 14,
nothing herein contained shall prevent the Advisor or any of its Affiliates from engaging in or earning fees from other activities,
including the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored
or organized by the Sponsor or its Affiliates; nor shall this Agreement limit or restrict the right of any director, officer, member,
partner, employee or stockholder of the Advisor or any of its Affiliates to engage in or earn fees from any other business or to
render services of any kind to any other Person and earn fees for rendering such services; provided, however, that the Advisor
must devote sufficient resources to the Company’s business to discharge its obligations to the Company under this Agreement.
The Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and
every other participant therein, and earn fees for rendering such advice and service. Specifically, it is contemplated that the
Company may enter into Joint Ventures or other similar co-investment arrangements with certain Persons, and pursuant to the agreements
governing such Joint Ventures or arrangements, the Advisor may be engaged to provide advice and service to such Persons, in which
case the Advisor will earn fees for rendering such advice and service.

  

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

  

    	 

    	 

    

 

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

 

16.         TERM
OF AGREEMENT.           This Agreement shall continue in force for a period
of one (1)-year from the date hereof. Thereafter, the term may be renewed for an unlimited number of successive one-(1) year terms
upon mutual consent of the parties.

 

17.         TERMINATION
BY THE PARTIES. This Agreement may be terminated upon sixty (60) days’ written notice (a) by the Independent Directors
or the Advisor, without Cause and without penalty, (b) by the Advisor for Good Reason, or (c) by the Advisor upon a Change of Control.
The provisions of Sections 15 and 19 through 32 (inclusive) of this Agreement shall survive any expiration or earlier
termination of this Agreement.

 

18.         ASSIGNMENT
TO AN AFFILIATE.           This Agreement may be assigned by the Advisor
to an Affiliate with the approval of a majority of the Directors (including a majority of the Independent Directors). The Advisor
may assign any rights to receive fees or other payments under this Agreement to any Person without obtaining the approval of the
Directors. This Agreement shall not be assigned by the Company or the Operating Partnership without the consent of the Advisor,
except in the case of an assignment by the Company or the Operating Partnership to a Person which is a successor to all the assets,
rights and obligations of the Company or the Operating Partnership, in which case such successor Person shall be bound hereunder
and by the terms of said assignment in the same manner as the Company or the Operating Partnership, as applicable, is bound by
this Agreement.

  

19.         PAYMENTS
TO AND DUTIES OF ADVISOR UPON TERMINATION.

 

a.           Amounts
Owed. After the Termination Date, the Advisor shall be entitled to receive from the Company or the Operating Partnership
within thirty (30) days after the effective date of such termination all amounts then accrued and owing to the Advisor, including
all its interest in the Company’s and the Operating Partnership’s income, losses, distributions and capital by payment
of an amount equal to the then-present fair market value of the Advisor’s interest (as provided by the Operating Partnership
Agreement), subject to the 2%/25% Guidelines to the extent applicable.

  

    	 

    	 

    

  

b.           Advisor’s
Duties. The Advisor shall promptly upon termination of this Agreement:

 

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

 

ii.         deliver
to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by
it, covering the period following the date of the last accounting furnished to the Board;

 

iii.         deliver
to the Board all assets, including all Investments, and documents of the Company and the Operating Partnership then in the custody
of the Advisor; and

 

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

 

20.         NON-SOLICITATION.
The Company agrees not to solicit any current and/or future employees of Advisor for employment or in any consulting or similar
capacity during the term of the this Agreement and for two (2) years following the termination of this Agreement without the
consent of the Advisor.

 

21.         INCORPORATION
OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT.           To
the extent that the Articles of Incorporation or the Operating Partnership Agreement impose obligations or restrictions on the
Advisor or grant the Advisor certain rights which are not set forth in this Agreement, the Advisor shall abide by such obligations
or restrictions and such rights shall inure to the benefit of the Advisor with the same force and effect as if they were set forth
herein.

 

22.         INDEMNIFICATION
BY THE COMPANY AND THE OPERATING PARTNERSHIP.

 

a.           The
Company and the Operating Partnership shall indemnify and hold harmless the Advisor and its Affiliates, as well as their respective
officers, directors, equity holders, members, partners, stockholders, other equity holders and employees (collectively, the “Indemnitees
,” and each, an “Indemnitee”), from all liability, claims, damages or losses arising in the performance
of their duties hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such liability, claims,
damages or losses and related expenses are not fully reimbursed by insurance, and to the extent that such indemnification would
not be inconsistent with the laws of the State of New York, the Articles of Incorporation or the provisions of Section II.G of
the NASAA REIT Guidelines. Notwithstanding the foregoing, the Company and the Operating Partnership shall not provide for indemnification
of an Indemnitee for any loss or liability suffered by such Indemnitee, nor shall they provide that an Indemnitee be held harmless
for any loss or liability 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
liability or loss was not the result of negligence or 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, liabilities
or expenses arising from or out of an alleged violation of federal or state securities laws by such Indemnitee unless one or more
of the following conditions are met:

 

    	 

    	 

    

  

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

 

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

 

iii.        a
court of competent jurisdiction approves a settlement of the claims against the Indemnitee and finds that indemnification of the
settlement and the related costs should be made, and the court considering the request for indemnification has been advised of
the position of the Securities and Exchange Commission and of the published position of any state securities regulatory authority
of a jurisdiction 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;

 

iii.        the
Indemnitee provides the Company or the Operating Partnership with a written affirmation of his or her good faith belief that he
or she has met the standard of conduct necessary for indemnification; and

 

iv.        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.

 

23.         INDEMNIFICATION
BY ADVISOR.           The Advisor shall indemnify and hold harmless the Company
and the Operating Partnership from contract or other liability, claims, damages, taxes or losses and related expenses, including
reasonable attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related expenses 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.

 

24.         NOTICES.
          Any notice, report or other communication (each a “Notice”)
required or permitted to be given hereunder shall be in writing unless some other method of giving such Notice is required by the
Articles of Incorporation or the Bylaws, 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:	ARC Realty Finance Trust, Inc.
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention: Peter M. Budko, President and Secretary
	 	 
	 	with a copy to:
	 	Alston & Bird LLP
	 	1201 West Peachtree Street
	 	Atlanta, Georgia 30309
	 	Attention: Rosemarie A. Thurston

 

    	 

    	 

    

 

	 	and
	 	 
	 	Company Lead Director
	 	Leslie D. Michelson
	 	c/o 405 Park Avenue
	 	New York, New York 10022

  

	 To the Operating Partnership:	ARC Realty Finance Operating Partnership, L.P.
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention:  Peter M. Budko, President and Secretary
	 	 
	 	with a copy to:
	 	 
	 	Alston & Bird LLP
	 	1201 West Peachtree Street
	 	Atlanta, Georgia 30309
	 	Attention:  Rosemarie A. Thurston
	 	 
	To the Advisor:	ARC Realty Finance Advisors, LLC
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention:  Peter M. Budko, President and Secretary
	 	 
	 	with a copy to:
	 	 
	 	Alston & Bird LLP
	 	1201 West Peachtree Street
	 	Atlanta, Georgia 30309
	 	Attention:  Rosemarie A. Thurston

 

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.

 

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 assignees.

 

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 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 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.

 

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blank]

 

    	 

    	 

    

  

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

 

	 	ARC REALTY FINANCE TRUST, INC.
	 	 	 
	 	By:	 /s/ Peter M. Budko
	 	 	Name: Peter M. Budko
	 	 	Title:   President and Secretary
	 	 	 
	 	ARC REALTY FINANCE OPERATING

PARTNERSHIP, L.P.
	 	 	 
	 	By:	ARC Realty Finance Trust, Inc.
	 	 	its General Partner
	 	 	 
	 	By:	 /s/ Peter M. Budko
	 	 	Name: Peter M. Budko
	 	 	Title:   President and Secretary
	 	 	 
	 	ARC REALTY FINANCE ADVISORS, LLC
	 	 	 
	 	By:	ARC Realty Finance Special Limited Partnership, LLC
	 	 	its Member
	 	 	 
	 	By:	AR Capital, LLC
	 	 	its Managing Member
	 	 	 
	 	By:	 /s/ Nicholas S. Schorsch
	 	 	Name: Nicholas S. Schorsch
	 	 	Title:   Authorized Signatory

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