Document:

ASSET PURCHASE AND SALE AGREEMENT

 

This ASSET Purchase
and Sale Agreement (the “Agreement”) is entered into as of July 1, 2013 by and among ARC Properties Operating
Partnership, L.P., a Delaware limited partnership (the “Buyer”), and American Realty Capital Advisors IV, LLC,
a Delaware limited liability company (the “Seller”).

 

 

RECITALS

 

A.The Seller is the
advisor of American Realty Capital Trust IV, Inc., a Maryland corporation (“ARCT IV”) that owns and acquires
single tenant free standing commercial real estate properties that are primarily net leased on a long-term basis to investment
grade credit rated and other creditworthy tenants that qualified as a real estate investment trust (“REIT”)
for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2012.

 

B.The seller is wholly
owned by American Realty Capital Trust IV Special Limited Partner, LLC, a wholly owned subsidiary of ARCT IV’s sponsor, AR
Capital, LLC.

 

C.Prior to the date
of closing of the Transaction (as defined below), the day-to-day business and operations of ARCT IV were and will be managed by
Seller and, in connection therewith, the Seller owned and will own the furniture, fixtures, equipment and other assets used and
to be used by ARCT IV in their business and operations.

 

D.ARCT IV is contemplating
a termination of its advisory agreement with Seller in connection with a merger into a wholly-owned subsidiary of Buyer’s
general partner, American Realty Capital Properties, Inc., a Maryland corporation (“ARCP” and the merger defined
as the “Transaction”). In connection with the Transaction, the Buyer will purchase from the Seller certain furniture,
fixtures, equipment and other assets necessary for the operation of ARCP and reimburse the Seller for certain costs and expenses
as described herein as of the date of the closing of the Transaction.

 

E.The Seller wishes
to sell and reimburse, and the Buyer wishes to purchase and accept, all of the Purchased Assets and the Reimbursed Expenses upon
the terms and subject to the conditions set forth in this Agreement.

 

AGREEMENT

 

In consideration of the
mutual agreements and covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE
I

SALE AND PURCHASE OF ASSETS; CLOSING

 

1.1Certain Terms.
Certain capitalized terms used in this Agreement are defined in Article IV.

 

1.2Sale and Purchase
of the Purchased Assets and Payment of the Reimbursed Expenses.

 

    	 

    	 

    

 

(a)Purchased
Assets. Upon the terms and subject to the conditions of this Agreement, the Seller hereby sells, conveys, assigns, transfers
and delivers to the Buyer, and the Buyer hereby purchases, free and clear of all Encumbrances, all right, title and interest of
the Seller in and to all of the Purchased Assets.

 

(b)Excluded
Assets and Liabilities. Notwithstanding any other provision of this Agreement to the contrary, any Assets of the Seller other
than the Purchased Assets are not part of the sale and purchase contemplated hereunder, are excluded from the Purchased Assets
and shall remain the property of the Seller after the Closing. The Buyer does not, and shall not be deemed to, assume or otherwise
be responsible for any Liabilities of the Seller (including, without limitation, any Liabilities arising out of or relating to
the Purchased Assets), all of which shall remain Liabilities of the Seller. The Seller shall pay, perform and discharge all of
its Liabilities encumbering directly or indirectly any of the Purchased Assets in full at or prior to the Closing.

 

1.3Payment of
Purchase Price. The total consideration for the Purchased Assets and the payment of the Reimbursed Expenses is $5,800,000.00
(the “Purchase Price”), payable in cash, by wire transfer of immediately available funds to an account designated
in writing by the Seller.

 

1.4The Closing.
The purchase and sale provided for in this Agreement shall take place at a closing (the “Closing”) at the offices
of Proskauer Rose LLP, Eleven Times Square, New York, New York, following the closing of the Transaction and on the same date as
the closing of the Transaction.

 

1.5Payment of
Purchase Price; Closing Deliveries.

 

(a)At or prior
to the Closing, the Seller shall deliver to the Buyer:

 

(i)the
Purchased Assets;

 

(ii)a
Bill of Sale and General Assignment in the form of Exhibit A hereto dated the Closing Date and duly executed by the Seller;

 

(iii)such
other bills of sale, assignments, deeds, certificates of title, documents and other instruments of transfer and conveyance as may
reasonably be requested by the Buyer to convey title to the Purchased Assets, each in form and substance satisfactory to the Buyer
dated the Closing Date and duly executed by the Seller;

 

(iv)releases
of all Encumbrances, if any, on the Purchased Assets; and

 

(v)such
other documents as the Buyer may reasonably request to effect the transactions contemplated by this Agreement.

 

(b)At or prior
to the Closing, the Buyer shall deliver to the Seller the Purchase Price in accordance with Section 1.3.

 

1.6AS-IS.
EXCEPT AS EXPRESSLY SET FORTH HEREIN, THE PURCHASED ASSETS ARE BEING PURCHASED AND SOLD ON AN “AS-IS” BASIS, FREE AND
CLEAR OF ANY ENCUMBRANCES, WITHOUT ANY REPRESENTATION OR WARRANTY OF ANY KIND OR NATURE, EITHER EXPRESS, IMPLIED OR OTHERWISE.

 

    	2

    	 

    

 

ARTICLE
II

REPRESENTATIONS AND WARRANTIES

 

The Seller represents
and warrants to the Buyer as of the date hereof as follows:

 

2.1Organization,
Good Standing and Qualification. The Seller is a limited liability company duly organized, validly existing and in good standing
under the laws of the State of Delaware.

 

2.2Authorization;
Enforceability. The Seller has full power and authority to execute and deliver this Agreement and the other Transaction Documents
to which it is a party and to perform its obligations hereunder and thereunder. All limited liability company and other action
on the part of the Seller, its managers and officers necessary for the authorization, execution and delivery of this Agreement
and the other Transaction Documents and the performance of all obligations of the Seller hereunder and thereunder has been taken.
This Agreement and the other Transaction Documents to which the Seller is a party, each constitutes, or when executed and delivered
will constitute, a valid and legally binding obligation of the Seller, enforceable in accordance with its terms.

 

2.3No Conflict.
The execution, delivery and performance of this Agreement and the other Transaction Documents to which the Seller is a party and
the consummation of the transactions contemplated hereby and thereby will not result in any violation or be in conflict with or
constitute, with or without the passage of time or giving of notice, a default under any provision of the Seller’s certificate
of formation or operating agreement, any Order or Contract to which the Seller is a party or by which it is bound or, to the knowledge
of the Seller, any provision of any Legal Requirement applicable to the Seller.

 

2.4Governmental
Authorities; Consents. No approval, Order, authorization, registration, qualification, designation, declaration or filing of
or with, or notice to, or other Consent of, any Governmental Body or other Person on the part of the Seller is required in connection
with the execution and delivery of this Agreement or the other Transaction Documents and the consummation of the transactions contemplated
hereby or thereby.

 

2.5Litigation.
There is no Proceeding pending or currently threatened against the Seller that questions the validity of this Agreement or the
right of the Seller to enter into or consummate, or seeks to enjoin or obtain damages with respect to, the transactions contemplated
hereby or by any of the other Transaction Documents, nor is the Seller aware that there is any basis for any of the foregoing.

 

2.6Title to Purchased
Assets. The Seller owns the Purchased Assets free and clear of all Encumbrances and the Buyer, by this Agreement and the other
Transaction Documents, will acquire good and marketable title to all of the Purchased Assets, free of all Encumbrances. No third
party, including, without limitation, any former owner of any capital stock of the Seller, has the basis for any claims against
the Purchased Assets or the Seller in connection therewith.

 

2.7Brokers’
Fees. No broker, finder, investment banker or other Person is entitled to any brokerage fee, finders’ fee or other commission
in connection with the transactions contemplated by this Agreement based on arrangements made by the Seller or any of its Affiliates.

 

2.8Cost of Purchased
Assets. The Purchased Assets are being sold pursuant to this Agreement at the Seller’s cost therefor.

 

    	3

    	 

    

 

ARTICLE
III

CERTAIN OTHER AGREEMENTS

 

3.1Tax Matters.
All transfer, documentary, sales, use, stamp, registration and other taxes, and all conveyance fees, recording charges and other
fees and charges (including any penalties and interest), incurred in connection with the transactions contemplated by this Agreement
shall be paid when due by the Seller.

 

ARTICLE
IV

DEFINITIONS

 

4.1Certain Definitions.
In this Agreement, the following terms have the meanings set forth below, which shall be equally applicable to both the singular
and plural forms. Any agreement referred to below shall mean such agreement as amended, supplemented and modified from time to
time to the extent permitted by the applicable provisions thereof and by this Agreement.

 

“Affiliate”
means, when used with reference to a specified Person, (i) any Person that directly or indirectly controls or is controlled
by or is under common control with the specified Person or any other Affiliate of such Person, (ii) any Person that is an
officer, director, trustee, general partner, manager or managing member of the specified Person or of which the specified Person
or any other Affiliate of such Person is an officer, director, trustee, general partner, manager or managing member, (iii) any
Person that, directly or indirectly, is the beneficial owner of 10% or more of any class of the outstanding voting securities of
the specified Person or any other Affiliate of such Person (iv) such Person’s relatives, including such Person’s spouse
or domestic partner (and relatives of such spouse or domestic partner), parents, siblings and lineal descendants if such Person
is an individual, and (v) with respect to any Person that is a trust, the trustees and beneficiaries of such Person.

 

“Agreement”
means this Asset Purchase and Sale Agreement.

 

“ARCP”
has the meaning set forth in the recitals of this Agreement.

 

“ARCT IV”
has the meaning set forth in the recitals of this Agreement.

 

“Assets”
means all properties, assets and rights of every kind, nature and description whatsoever whether tangible or intangible, real,
personal or mixed, fixed or contingent, choate or inchoate, known or unknown, wherever located of the Seller.

 

“Buyer”
has the meaning set forth in the first paragraph of this Agreement.

 

“Closing”
has the meaning set forth in Section 1.4.

 

“Closing Date”
means the date and time as of which the Closing actually takes place.

 

“Consent”
means any approval, consent, ratification, waiver, or other authorization of, notice to or registration, qualification, designation,
declaration or filing with any Person.

 

“Contract”
means any agreement, contract, purchase order, statement of work, option, license, instrument, mortgage, obligation, commitment,
arrangement, promise, or undertaking (whether written or oral and whether express or implied) that is legally binding.

 

    	4

    	 

    

 

“Encumbrance”
means any charge, claim, community property interest, condition, easement, covenant, Contract, commitment, warrant, demand, encumbrance,
equitable interest, lien, mortgage, option, purchase right, pledge, security interest, right of first refusal, or other rights
of third parties or restriction of any kind, including, without limitation, any restriction on use, voting, transfer, receipt of
income or dividends, or exercise of any other attribute of ownership.

 

“Governmental
Body” means any federal, state, local, municipal, foreign, or other governmental or quasi-governmental authority.

 

“Indemnified
Persons” has the meaning set forth in Section 5.1.

 

“Legal Requirement”
means any federal, state, local, municipal, foreign, international, multinational, or other statute, law, Order, constitution,
rule, regulation, ordinance, principle of common law, treaty or other requirement of any Governmental Body.

 

“Liability”
means any liabilities or obligations of any kind whatsoever (whether known or unknown, asserted or unasserted, absolute or contingent,
accrued or unaccrued, liquidated or unliquidated, due or to become due, and whether or not reflected or required by United States
generally accepted accounting principles to be reflected as such).

 

“Losses”
has the meaning set forth in Section 5.1.

 

“Order”
means any award, decision, injunction, judgment, order, decree, ruling, subpoena, or verdict entered, issued, made, or rendered
by any court, administrative agency, or other Governmental Body or by any referee, arbitrator or mediator.

 

“Person”
means any individual, corporation, general or limited partnership, limited liability company, joint venture, estate, trust, association,
organization, labor union or other entity or Governmental Body.

 

“Proceeding”
means any action, arbitration, audit, hearing, investigation, litigation or suit (whether civil, criminal, administrative, investigative
or informal) commenced, brought, conducted, or heard by or before, or otherwise involving, any court or other Governmental Body
or referee, trustee, arbitrator or mediator.

 

“Purchase Price”
has the meaning set forth in Section 1.3.

 

“Purchased Assets”
means the Assets set forth on Exhibit B hereto.

 

“Reimbursed
Expenses” means the costs and expenses set forth on Exhibit B hereto.

 

“Seller”
has the meaning set forth in the first paragraph hereof.

 

“Transaction”
has the meaning set forth in the recitals of this Agreement.

 

“Transaction Documents”
means this Agreement, the Bill of Sale and General Assignment and all other instruments and certificates contemplated hereunder
to be delivered by any party hereto at or prior to the Closing.

 

    	5

    	 

    

 

ARTICLE
V

MISCELLANEOUS

 

5.1Indemnification.
The Seller shall indemnify, defend and hold harmless the Buyer and its Affiliates, and their respective stockholders, members,
partners, managers, officers, directors, employees, representatives, controlling persons, counsel, agents, successors and assigns
(collectively, “Indemnified Persons”), from and against, and will pay to any Indemnified Person the amount of,
any and all claims, demands, Proceedings, losses, damages, penalties, Liabilities, obligations, settlement payments, costs and
expenses of every kind whatsoever (including, without limitation, costs of investigating, preparing or defending any such claim
or Proceeding and reasonable legal fees and disbursements), as and when incurred by such Indemnified Person and whether or not
involving a third party claim (collectively, “Losses”), incurred or suffered by any of the Indemnified Persons,
arising out of or relating to (i) any inaccuracy of any representation or warranty, (ii) any breach of any covenant or
agreement of the Seller contained in this Agreement or any other Transaction Document (including all schedules, exhibits and annexes
hereto and thereto), (iii) taxes owed by the Seller or any of its Affiliates relating to the Purchased Assets and/or the transactions
contemplated by this Agreement, (iv) any Liability of the Seller related to the Purchased Assets and/or the transactions contemplated
by this Agreement, and (v) third party claims against the Purchased Assets or against the Indemnified Persons in respect thereof
arising out of or relating to events occurring on or before the Closing Date. All representations, warranties and covenants of
the parties contained in this Agreement shall survive the Closing Date.

 

5.2Notices.
All notices, requests, communications and demands to or upon the respective parties hereto to be effective shall be in writing
(including by fax), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered
against receipt or upon actual receipt of (i) personal delivery, (ii) delivery by reputable overnight courier, (iii) delivery
by facsimile transmission with telephonic confirmation or (iv) delivery by registered or certified mail, postage prepaid, return
receipt requested, addressed as set forth below (or to such other address as may be hereafter notified by the respective parties
hereto in accordance with this Section 5.2):

 

	 	The Buyer:	ARC Properties Operating Partnership, L.P.
	 	 	405 Park Avenue, 15th Floor
	 	 	New York, New York 10022
	 	 	Facsimile No.:  (212) 421-5799
	 	 	Attention:  Nicholas S. Schorsch
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Facsimile No.:  (212) 969-2900
	 	 	Attention:  	Peter M. Fass, Esq.
	 	 	 	Steven L. Lichtenfeld, Esq.

 

    	6

    	 

    

 

	 	The Seller:	American Realty Capital Advisors IV, LLC
	 	 	405 Park Avenue, 15th Floor
	 	 	New York, New York 10022
	 	 	Facsimile No.:  (212) 421-5799
	 	 	Attention:  Edward M. Weil, Jr.
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Facsimile No.:  (212) 969-2900
	 	 	Attention:  Peter M. Fass, Esq.
	 	 	 

 

 

5.3Expenses.
Except with respect to the Reimbursed Expenses, each of the parties will bear its own costs and expenses (including legal fees
and expenses) incurred in connection with this Agreement and the transactions contemplated hereby.

 

5.4No Third-Party
Beneficiaries. Subject to Sections 5.1, 5.11 and 5.14, this Agreement shall not confer any rights or remedies
upon any Person other than the parties hereto and their respective successors and permitted assigns.

 

5.5Consent to
Jurisdiction; Service of Process. Each party to this Agreement irrevocably consents and agrees that any Proceeding commenced
by it arising out of or relating to this Agreement or any of the Transaction Documents shall be brought only in the United States
District Court for the Southern District of New York or, in the event such court does not have subject matter jurisdiction over
such Proceeding, in courts of the State of New York sitting in the Borough of Manhattan, City of New York. Each party hereby (i) irrevocably
accepts and submits to the jurisdiction of each of the aforesaid courts in personam, (ii) irrevocably and unconditionally
waives any objection to the laying of venue in either of the aforesaid courts, and (iii) irrevocably and unconditionally waives
and agrees not to plead or assert the claim that either of the aforesaid courts is not a convenient forum with respect to any such
Proceeding or other similar defense or doctrine. Process in any such Proceeding may be served on any party in any manner provided
by law.

 

5.6Governing Law.
This Agreement will be governed by the internal laws of the State of New York.

 

5.7Further Assurances.
The parties agree, without further consideration, (i) to furnish upon request to each other such further information, (ii)
to execute and deliver to each other such other documents, and (iii) to do such other acts and things, all as the other party may
reasonably request for the purpose of carrying out the intent of this Agreement and the transactions contemplated by this Agreement
and the other Transaction Documents. From and after the Closing, all mail, payments or other amounts, checks, documents and packages
pertaining to the Purchased Assets received by the Seller shall be promptly delivered (unopened, if applicable) by the Seller to
the Buyer.

 

5.8Release.
Effective as of the Closing, the Seller, on behalf of itself and each of its Affiliates, hereby releases and forever discharges
the Purchased Assets and the Buyer in connection therewith from any and all Proceedings, Contracts and Liabilities of any nature
whatsoever, in law or in equity, arising out of events occurring on or prior to the Closing.

 

5.9Amendments
and Waivers. No amendment or waiver of any provision of this Agreement shall be valid unless in writing and signed by the party
to be charged with such amendment or waiver. No waiver by any party of any default, misrepresentation, or breach of warranty or
covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation,
or breach of warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence.

 

    	7

    	 

    

 

5.10Entire Agreement.
This Agreement supersedes all prior agreements between the parties with respect to its subject matter and constitutes (together
with the other Transaction Documents and any other documents referred to in this Agreement) a complete and exclusive statement
of the terms of the agreement between the parties with respect to its subject matter. The exhibits identified in and attached to
this Agreement are incorporated herein by reference and shall be deemed as fully a part hereof as if set forth herein in full.

 

5.11Assignments,
Successors and No Third-Party Rights. The Seller may not assign any of its rights or obligations under this Agreement without
the prior consent of the Buyer except that the Buyer may assign any of its rights under this Agreement to any Affiliate of the
Buyer. Subject to the preceding sentence, this Agreement will apply to, be binding in all respects upon, and inure to the benefit
of the successors and permitted assigns of the parties. Except as expressly provided in Sections 5.1 and 5.14, nothing
expressed or referred to in this Agreement will be construed to give any Person other than the parties hereto any legal or equitable
right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement.

 

5.12Severability.
Any term of this Agreement which would be invalid or unenforceable as written shall be deemed limited in scope and/or duration
to the extent necessary to render it enforceable. The determination of any court that any provision is invalid or unenforceable
shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity of the offending term
or provision in any other situation or in any other jurisdiction.

 

5.13Construction.
The parties have participated jointly in the drafting of this Agreement, and each party was represented by counsel in the negotiation
of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed
as if drafted jointly by the parties and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue
of the authorship of any of the provisions of this Agreement.

 

5.14Waiver of
Legal Conflicts. Each of the Seller and the Buyer acknowledges and agrees that, at their request, Proskauer Rose LLP acted
as counsel to both such parties in connection with this Agreement, the other Transaction Documents, the sale of the Purchased Assets
and the payment of the Reimbursed Expenses. Accordingly, each of the parties agrees to, and does, waive any conflict of interest
which may be deemed to arise as the result of such representation and agrees not to seek to disqualify or otherwise prevent Proskauer
Rose LLP from representing the other party hereto (or any other clients of Proskauer Rose LLP) in any matters by reason of its
work on, or representation of, such party in connection with this Agreement, the other Transaction Documents, the purchase and
sale of the Purchased Assets and the payment of the Reimbursed Expenses, or its possession of confidential information relating
to such party. Proskauer Rose LLP shall be entitled to rely upon this Section 5.14 as a third party beneficiary hereof.

 

5.15Counterparts;
Facsimile. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of
which, taken together, shall constitute one and the same instrument. Original signatures hereto and to other Transaction Documents
may be delivered by facsimile which shall be deemed originals.

 

* * *

 

    	8

    	 

    

 

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

 

	 	BUYER:
	 	 	 
	 	ARC Properties operating partnership, l.p.
	 	 	 
	 	By:	AMERICAN REALTY CAPITAL PROPERTIES, INC.
	 	 	its general partner
	 	 	 
	 	By: 	/s/ Nicholas S. Schorsch
	 	 	Name: Nicholas S. Schorsch
	 	 	Title:  Chief Executive Officer
	 	 	 
	 	 	 
	 	SELLER:
	 	 	 
	 	AMERICAN REALTY CAPITAL ADVISORS IV, LLC
	 	 	 
	 	By:     AMERICAN REALTY CAPITAL TRUST IV SPECIAL LIMITED PARTNER, LLC

its sole member

	 	 	 
	 	By:  	AR Capital, LLC
	 	 	its managing member
	 	 	 
	 	By: 	/s/ Edward M. Weil, Jr.
	 	 	Name: Edward M. Weil, Jr.
	 	 	Title:  Member
	 	 	 

 

 

    	 

    	 

    

 

Exhibit A

 

BILL OF SALE AND GENERAL ASSIGNMENT

 

 

KNOW ALL MEN BY THESE
PRESENTS, that American Realty Capital Advisors IV, LLC, a Delaware limited liability company (the “Seller”),
for and in consideration of the sum of One and No/100 Dollars ($1.00) and other good and valuable consideration paid to it by ARC
Properties Operating Partnership, L.P., a Delaware limited partnership (the “Buyer”), pursuant to that certain
Asset Purchase and Sale Agreement (the “Purchase Agreement”), dated as of July 1, 2013, by and between the Buyer
and the Seller, the receipt and sufficiency of which are hereby acknowledged, does hereby sell, convey, transfer, grant, assign
and deliver to the Buyer, on the terms and subject to the conditions in the Purchase Agreement, all of its right, title and interest
in and to all of the Purchased Assets. Capitalized terms used but not defined herein have the meanings given to them in the Purchase
Agreement.

 

TO HAVE AND TO HOLD,
all and singular, the aforesaid Purchased Assets unto the Buyer, its successors and assigns forever for it and their own use forever.

 

The Seller covenants
and agrees to warrant and defend the sale, conveyance, transfer, grant, assignment and delivery of the Purchased Assets hereby
made against all persons whomsoever, and to take all steps reasonably necessary to establish the record of the Buyer’s title
to the Purchased Assets.

 

IN WITNESS WHEREOF,
the Seller has executed and delivered this Bill of Sale and General Assignment as of this [ ] day of [ ], 2013.

 

 

	 	SELLER:
	 	 	 
	 	AMERICAN REALTY CAPITAL ADVISORS IV, LLC 
	 	 	 
	 	 	 
	 	By: 	 
	 	 	Name:  
	 	 	Title:  Manager

 

    	 

    	 

    

 

Exhibit B

 

Purchased Assets and Reimbursed Expenses

 

	Capitalized Furniture, Fixtures and Equipment	 	 
	 	 	 	 	 	 	 
	 	Tenant Improvements	 	 	 	 
	 	 	Office fit out - principally NYC and Dresher, PA & Jenkintown, PA
	 	 	Includes common area, kitchens, bathrooms, IT cabling
	 	 	Server room configuration	 	 	 
	 	Office Furniture and Fixtures	 	 	 
	 	 	Desks	 	 	 	 
	 	 	Credenzas	 	 	 	 
	 	 	Chairs	 	 	 	 
	 	 	Conference tables and chairs	 	 	 
	 	Hardware	 	 	 	 
	 	 	Laptops	 	 	 	 
	 	 	Desktops	 	 	 	 
	 	 	Routers and switches	 	 	 
	 	 	Storage Area Network (SAN)	 	 	 
	 	 	Mobile devices	 	 	 	 
	 	 	iPads	 	 	 	 
	 	Software (license, support, maintenance)	 	 
	 	 	Microsoft Office/ Outlook	 	 	 
	 	 	MRI	 	 	 	 
	 	 	Virtual Premise	 	 	 	 
	 	 	System back-up	 	 	 	 
	 	 	Security/ firewall	 	 	 	 
	 	 	Anti-Virus	 	 	 	 
	 	 	FAS Fixed Assets	 	 	 	 
	 	 	Concur	 	 	 	 
	 	 	Cvent	 	 	 	 
	 	Equipment	 	 	 	 
	 	 	VOIP telephones and related hardware/software	 
	 	 	TV presentation screens	 	 	 
	 	 	SmartBoard	 	 	 	 
	 	 	Binding machine	 	 	 	 
	 	 	Postage machine	 	 	 	 
	 	 	Printers	 	 	 	 
	 	 	Kitchen appliances and other	 	 	 

 

The above items are principally located within our New York,
NY, Jenkintown, PA, Dresher, PA and Boston, MA offices.

 

    	 

    	 

    

 

	
        Capitalized and Other Soft Costs

         

        Marketing:
	 
	 	
         

        Web site and related development
	 
	 	 Collaboration with marketing consultants 	 
	 	
        Collateral (hard card, property photos, etc.)
	 
	 	 Logo design 	 
	 	 General marketing efforts 	 
	 	 	 	 
	Software Customization:	 
	 	
         

        MRI (Accounting & Asset Management)
	 
	 	Virtual Premise	 
	 	FAS Fixed Assets	 
	 	Concur	 
	 	Cvent	 
	 	MS Office and related	 
	 	 	 	 

 

    	 

    	 

    

 

	Transaction/Offering Related Costs	 
	 	 	 
	 	Legal: 	 
	 	   Preparation of various documents and filings - 	 
	 	     Form S-11	 
	 	     Investor communications and press releases	 
	 	     Form 8-K's	 
	 	     Section 16 filings	 
	 	     Coordination with Proskauer/attorneys	 
	 	 	 
	 	 	 
	 	Accounting: 	 
	 	   Preparation of various documents and filings - 	 
	 	     Form S-11 (including pro forma schedules)	 
	 	     Investor communications and press releases	 
	 	     Form 8-K's	 
	 	     Section 16 filings	 
	 	 	 
	 	Investor Relations (BD Operations):  	 
	 	     Retail client record reconfiguration 	 
	 	     Conversion of CRM database to interface  	 
	 	        with new transfer agent requirements 	 
	 	     Analysis and communication to participating 	 
	 	        independent broker-dealers and investment advisors 	 
	 	     Investor outreach and communications 	 
	 	 	 
	 	     Marketing and Event Planning: 	 
	 	        Preparing presentation material 	 
	 	        Coordination of roadshow and related events 	 
	 	 	 
	 	     Executive Management (and support personnel): 	 
	 	        Negotiations with bankers	 
	 	        Review of various documents	 
	 	        Road show efforts	 
	 	 	 
	 	 	 
	 	 	 

  

    	 

    	 

    

 

Transaction Costs - Merger

 

American Realty Capital Advisors IV, LLC (the “Advisor”)
has developed procedures and processes that were developed over the past year that are being provided to ARC Properties Operating
Partnership, L.P. (“ARCP OP”) in connection with the transaction with ARCP OP. ARCP OP will benefit from these
existing critical items and would have otherwise spent significant time and cost to obtain them. Amounts below are a portion of
the estimated costs incurred by the Advisor.

  

	 	 Human Resources: 
	 	   Employee Handbook development and continuous updates 
	 	   401(k) implementation and administration 
	 	   Payroll set up and related tax withholding and remittance procedures 
	 	   Space planning and facility coordination 
	 	   General HR practices and compliance 
	 	 
	 	 Information Technology: 
	 	   Disaster recovery
	 	   System architecture
	 	   Back-up systems
	 	   Help desk support 
	 	   Vendor project management
	 	   Vendor transition services
	 	 
	 	 Accounting & Finance: 
	 	   Process and Procedures Manual development
	 	   Sarbanes-Oxley practices
	 	   Month-end closing checklist and procedures 
	 	   Treasury and cash management procedures 
	 	 
	 	 Asset & Property Management: 
	 	   Process and Procedures Manual development
	 	   Concur bill payment configurationExhibit 10.1

 

american
realty capital advisors iV, LLC

American reaLty capital trust iV special limited partner, llc

american realty capital properties iV, llc

405
Park Avenue

New
York, New York 10022

 

 

American Realty Capital Trust IV, Inc.

American Realty Capital Operating Partnership IV, L.P.

American Realty Capital Properties, Inc.

ARC Properties Operating Partnership, L.P.

Thunder Acquisition LLC

405 Park Avenue

New York, New York 10022

 

July 1, 2013

 

	Re:		Project Thunder – Incentive and Other Payments

 

Reference is made to that certain Agreement
and Plan of Merger, dated as of the date hereof (the “Merger Agreement”), by and among American Realty Capital
Properties, Inc., a Maryland corporation (“Parent”), ARC Properties Operating Partnership, L.P., a Delaware
limited partnership and the operating partnership of the Company (the “Parent OP”), Thunder Acquisition LLC,
a Delaware limited liability company wholly-owned by Parent (“Merger Sub”), American Realty Capital Trust IV,
Inc., a Maryland corporation (the “Company”), and American Realty Capital Operating Partnership IV, L.P., a
Delaware limited partnership and the operating partnership of the Company (the “Company OP”), pursuant to which
(x) the Company will merge with and into Merger Sub, with Merger Sub being the surviving entity, and (y) the Company OP will merge
with and into the Parent OP, with the Parent OP being the surviving entity (collectively, the “Transaction”).
Any term not otherwise defined herein shall have the meaning given such term in the Merger Agreement.

 

Reference also is hereby made to: (i) that
certain Amended and Restated Advisory Agreement, dated as of November 12, 2012, by and among American Realty Capital Advisors IV,
LLC, a Delaware limited liability company (the “Advisor”), the Company and the Company OP (the “Advisory
Agreement”), (ii) that certain Amended and Restated Agreement of Limited Partnership of the Company OP, dated as of November
12, 2012, by and among the Company, the Advisor, American Realty Capital Trust IV Special Limited Partner, LLC, a Delaware limited
liability company (the “Special Limited Partner”) and other limited partners party thereto, as amended from
time to time (the “Company OP Agreement”) and (iii) that certain Property Management and Leasing Agreement,
made and entered into as of June 8, 2012, by and among the Company, the Company OP and American Realty Capital Properties IV, LLC,
a Delaware limited liability company (the “Manager”) (the “Property Management and Leasing Agreement”).

 

    	 

    	 

    

 

In order to induce the parties to the Merger
Agreement to enter into the Merger Agreement, each of the Company, Parent, the Company OP, the Special Limited Partner, the Advisor
and the Manager hereby agree as follows:

 

		1.	Pursuant to Section 10(c) of the Advisory Agreement, the Advisor is entitled to a Real Estate Commission (as defined in the
Advisory Agreement) in connection with the sale of any real estate assets in any transaction or series of transactions. The Advisor
hereby agrees to a reduction in the amount of the Real Estate Commission to which the Advisor is entitled in connection with the
Transaction. The Advisor, the Company and the Company OP agree that the reduced Real Estate Commission payable to the Advisor shall
be $8.4 million.

 

		2.	Pursuant to Section 5.1 of the Company OP Agreement, the Special Limited Partner is entitled to certain subordinated distributions
of net sales proceeds from the Company OP (the “SLP Interest”). Upon an Investment Liquidity Event (as defined
in the Company OP Agreement), the Special Limited Partner’s right to receive its SLP Interest is accelerated to the time
of such Investment Liquidity Event and the amount of the SLP Interest is fixed as of the Investment Liquidity Event (the “Investment
Liquidity Amount”). The Company, the Company OP and the Special Limited Partner hereby acknowledge and agree that the
Transaction is an Investment Liquidity Event.

 

		3.	Pursuant to Section 8.7(b) of the Company OP Agreement, if the Special Limited Partner is entitled to the Investment Liquidity
Amount, the Special Limited Partner has the right to contribute its SLP Interest to the Company OP in exchange for a number of
Company OP Units equal to the quotient of (a) the Investment Liquidity Amount divided by (b) the product of (i) the fair
market value of one share of Company Common Stock on the date of the Investment Liquidity Event multiplied by (ii) the Exchange
Factor (as defined in the Company OP Agreement). The Special Limited Partner hereby elects to contribute its SLP Interest to the
Company OP in exchange for Company OP Units and the Company, the Company OP and the Special Limited Partner hereby acknowledge
and agree that such contribution and exchange shall be made pursuant to customary contribution or assignment documentation and
shall be effective immediately prior to the consummation of the Transaction. Upon the consummation of the Transaction, each Company
OP Unit will automatically be converted into a number of validly issued Parent OP Units equal to the Exchange Ratio. Furthermore,
the Special Limited Partner may desire to exchange or convert all or a portion of the Parent OP Units to be received as a result
of the Transaction for Parent Common Stock, or, at the election of Parent, cash, and the Special Limited Partner, Parent, Parent
OP, the Company and the Company OP will agree in good faith to any such exchange or conversion into Parent Common Stock or cash
at least 5 days prior to the Closing Date; provided, that if the Special Limited Partner does not exchange or convert the Parent
OP Units to be received as a result of the Transaction in connection with the Closing, the Special Limited Partner shall have the
option to cause Parent to acquire such Parent OP Units for cash at any time during the 24 month period commencing on the date
immediately after the date that is the two-year anniversary of the date on which the Special Limited Partner was issued its original
interest in the Company OP for an amount equal to the Cash Amount (as defined in the limited partnership agreement of the Parent
OP) per Parent OP Unit.

 

    	 

    	 

    

 

		4.	Pursuant to Section 10(i) of the Advisory Agreement and Section 16.1 of the Company OP Agreement, the Advisor is entitled to
receive Class B Units (as defined in the Company OP Agreement) in the Company OP within 30 days of the end of each quarter, commencing
with the calendar quarter beginning July 1, 2012. The Class B Units are issued pursuant to the terms of the Company OP Agreement
quarterly in arrears, subject to the approval of the Company’s board of directors. As of the date hereof, 121,769 Class B
Units have been issued or approved for issuance to the Advisor. Furthermore, it is expected that additional Class B Units will
be issued to the Advisor in connection with its asset management services through and including the Closing Date. Any Class B Units
earned and issuable for the period from the date hereof up to an including the Closing Date shall be issued immediately prior to
the Closing and shall be subject to the terms of this letter agreement. When issued, the Class B Units are subject to forfeiture
until both an economic hurdle and a performance hurdle have been met in accordance with Section 16.2(a) of the Company OP Agreement.
It is expected that the economic hurdle will be met prior to the Closing Date. The performance hurdle will be met if the Advisor
continues to be the Advisor at the Closing of the Transaction. Accordingly, the Company, the Company OP and the Advisor hereby
acknowledge and agree that, provided the economic hurdle is met prior to the Closing Date and the Advisor continues to be the advisor
under the Advisory Agreement as contemplated in paragraph 7 hereof, both the economic hurdle and the performance hurdle will be
met upon the consummation of the Transaction, and at such time no Class B Units held by the Advisor will continue to be subject
to forfeiture.

 

		5.	Pursuant to Section 16.4 of the Company OP Agreement, the Class B Units are convertible automatically into Company OP Units
at such time as the Advisor’s capital account with respect to a Class B Unit is equal to the average capital account balance
attributable to an outstanding Company OP Unit (as determined on a unit-by-unit basis). Pursuant to subparagraph 1(c)(ii) of Exhibit
B of the Company OP Agreement, the Advisor is entitled to special allocations of unrealized appreciation in the value of, and net
property gain from the sale of, the Company OP’s assets. Furthermore, pursuant to Section 16.4(b) of the Company OP Agreement,
the Advisor has the right up to twice per year to cause the Company OP to adjust the book value of its assets to fair market value,
a “book-up”, by making a capital contribution of more than a de minimis amount to the Company OP in exchange
for Company OP Units. The Advisor hereby elects to make such a capital contribution to the Company OP in exchange for Company OP
Units prior to the consummation of the Transaction, if necessary to be effective, in order to cause such an adjustment and allow
it to convert the maximum number of Class B Units to Company OP Units in connection with the consummation of the Transaction, and
the Company and the Company OP hereby acknowledge and agree to allow the Advisor to make such capital contributions in order to
effectuate a book-up prior to the Closing Date. The amount of the capital contribution, if any, and the number of Company OP Units
issuable will be agreed to in good faith by the Company, the Company OP and the Advisor. Upon the consummation of the Transaction,
each Company OP Unit will automatically be converted into a number of validly issued Parent OP Units equal to the Exchange Ratio.
The Advisor agrees that these Parent OP Units are subject to a minimum two-year holding period prior to being exchangeable into
Parent Common Stock which holding period includes the period during which the Advisor held the relevant Class B Units.

 

    	 

    	 

    

 

		6.	The Company, the Company OP and the Advisor hereby acknowledge and agree that there may be a number of unconverted Class B
Units on the Closing Date and that, in accordance with Section 3.1 of the Merger Agreement, each unconverted Class B Unit will
be converted automatically into a number of Parent Class B Units equal to the Exchange Ratio.

 

		7.	In order to facilitate the smooth transition of advisory services following the consummation of the Transaction, Parent, the
Parent OP, Merger Sub, the Company, the Company OP, and the Advisor agree that the Advisory Agreement will be extended for a 60
day period following the Closing Date pursuant to the terms substantially in the form Amendment and Acknowledgement of Termination
of Second Amended and Restated Advisory Agreement attached hereto as Exhibit A.

 

		8.	In order to facilitate the smooth transition of property management services following the consummation of the Transaction,
Parent, the Parent OP, Merger Sub, the Company, the Company OP and the Manager agree that the Property Management and Leasing Agreement
will be extended for a 60 day period following the Closing Date pursuant to the terms substantially in the form Amendment and Acknowledgement
of Termination of Property Management and Leasing Agreement attached hereto as Exhibit B.

 

The parties hereto
agree that this letter agreement satisfies any notice requirements with respect to (a) the contribution of the SLP Interest to
the Company OP in exchange for Company OP Units and (b) the election to cause a book-up event.

 

Each of the Company,
Parent, the Company OP, the Special Limited Partner, the Advisor and the Manager, as applicable, represent and warrant that (a)
each has the necessary power and authority to enter into this letter agreement and to carry out its obligations hereunder and (b)
no consents, approvals, authorizations or other actions are required for the Company, Parent, the Company OP, the Special Limited
Partner, the Advisor or the Manager to execute, deliver and perform their respective obligations under this letter agreement.

 

This letter agreement
may be amended, modified or supplemented only by a written instrument executed by each of the parties hereto. This letter agreement
may be executed in two or more counterparts, each of which shall be deemed to be an original and together with this letter agreement
shall be deemed to be one and the same instrument. This letter agreement shall terminate concurrently with any termination of the
Merger Agreement without a Closing. This letter agreement shall be governed by and interpreted and enforced in accordance with
the laws of the State of New York (without reference to the choice of law provisions).

 

[SIGNATURE PAGE FOLLOWS]

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties have executed and delivered
this side letter as of the date first written above.

	 	 
	 	AMERICAN REALTY CAPITAL TRUST IV, INC.
	 	 
	 	By: /s/ Edward M. Weil, Jr.
	 	Name: Edward M. Weil, Jr.
	 	Title:   President and Chief Operating Officer
	 	 

 

    	 

    	 

    

  

	 	 
	 	AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP IV, L.P.
	 	 
	 	By:  AMERICAN REALTY CAPITAL TRUST IV, INC.,
	 	        Its general partner
	 	 
	 	By: /s/ Edward M. Weil, Jr.
	 	Name: Edward M. Weil, Jr.
	 	Title:   President and Chief Operating Officer
	 	 

 

    	 

    	 

    

 

	 	 
	 	AMERICAN REALTY CAPITAL ADVISORS IV, LLC
	 	 
	 	
        By: AMERICAN REALTY CAPITAL TRUST IV

               SPECIAL LIMITED
PARTNER, LLC,

	 	        Its Member
	 	 
	 	By: AR CAPITAL, LLC,
	 	        Its managing member
	 	 
	 	By: /s/ Edward M. Weil, Jr.
	 	Name: Edward M. Weil, Jr.
	 	Title:  Authorized Signatory
	 	 

 

    	 

    	 

    

 

	 	 
	 	AMERICAN REALTY CAPITAL TRUST IV SPECIAL LIMITED PARTNER, LLC
	 	 
	 	By: AR CAPITAL, LLC,
	 	        Its managing member
	 	 
	 	By: /s/ Edward M. Weil, Jr.
	 	Name: Edward M. Weil, Jr.
	 	Title:  Authorized Signatory

 

    	 

    	 

    

 

	 	 
	 	AMERICAN REALTY CAPITAL PROPERTIES IV, LLC
	 	 
	 	
        By: AMERICAN REALTY CAPITAL TRUST IV

               SPECIAL LIMITED
PARTNER, LLC,

	 	        Its member
	 	 
	 	By: AR CAPITAL, LLC,
	 	        Its managing member
	 	 
	 	By: /s/ Edward M. Weil, Jr.
	 	Name: Edward M. Weil, Jr.
	 	Title:  Authorized Signatory
	 	 

 

    	 

    	 

    

 

	 	 
	 	AMERICAN REALTY CAPITAL PROPERTIES , INC.
	 	 
	 	By: /s/ Nicholas S. Schorsch
	 	Name: Nicholas S. Schorsch
	 	Title:   Chairman and Chief Executive Officer
	 	 

 

    	 

    	 

    

 

	 	 
	 	ARC PROPERTIES OPERATING PARTNERSHIP, L.P.
	 	 
	 	By:  AMERICAN REALTY CAPITAL PROPERTIES, INC.,
	 	        Its general partner
	 	 
	 	By: /s/ Nicholas S. Schorsch
	 	Name: Nicholas S. Schorsch
	 	Title:   Chairman and Chief Executive Officer
	 	 

 

    	 

    	 

    

 

	 	 
	 	THUNDER ACQUISITION LLC
	 	 
	 	By:  AMERICAN REALTY CAPITAL PROPERTIES, INC.,
	 	        Its sole member
	 	 
	 	By: /s/ Nicholas S. Schorsch
	 	Name: Nicholas S. Schorsch
	 	Title:   Chairman and Chief Executive Officer
	 	 

 

    	 

    	 

    

 

 

EXHIBIT A

 

    	 

    	 

    

 

EXHIBIT B

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