Document:

Exhibit 10.2 

 

SECOND AMENDED AND RESTATED

 

ADVISORY AGREEMENT

 

BY AND AMONG

 

AMERICAN REALTY CAPITAL HEALTHCARE TRUST,
INC.,

 

American
Realty Capital HEALTHCARE TRUST OPERATING PARTNERSHIP, L.P.,

 

AND

 

American
Realty Capital HEALTHCARE ADVISORS, LLC

 

Dated as of November 12, 2012

 

    	 

    	 	

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	  1.	DEFINITIONS.	1
	 	 	 
	  2.	APPOINTMENT.	6
	 	 	 
	  3.	DUTIES OF THE ADVISOR.	6
	 	 	 
	  4.	AUTHORITY OF ADVISOR.	7
	 	 	 
	  5.	FIDUCIARY RELATIONSHIP.	8
	 	 	 
	  6.	NO PARTNERSHIP OR JOINT VENTURE.	8
	 	 	 
	  7.	BANK ACCOUNTS.	8
	 	 	 
	  8.	RECORDS; ACCESS.	8
	 	 	 
	  9.	LIMITATIONS ON ACTIVITIES.	8
	 	 	 
	 10.	FEES.	8
	 	 	 
	 11.	EXPENSES.	10
	 	 	 
	 12.	OTHER SERVICES.	11
	 	 	 
	 13.	REIMBURSEMENT TO THE ADVISOR.	11
	 	 	 
	 14.	OTHER ACTIVITIES OF THE ADVISOR	11
	 	 	 
	 15.	THE AMERICAN REALTY CAPITAL NAME	12
	 	 	 
	 16.	TERM OF AGREEMENT	12
	 	 	 
	 17.	TERMINATION BY THE PARTIES	12
	 	 	 
	 18.	ASSIGNMENT TO AN AFFILIATE	12
	 	 	 
	 19.	PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION	12
	 	 	 
	 20.	INCORPORATION OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT.	13
	 	 	 
	 21.	INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP	13
	 	 	 
	 22.	INDEMNIFICATION BY ADVISOR	14

  

    	 

    	 	

    

 

TABLE OF CONTENTS

(continued)

 

	 	 	Page
	 	 	 
	 23. 	NOTICES	14
	 	 	 
	 24.	MODIFICATION	15
	 	 	 
	 25.	SEVERABILITY	15
	 	 	 
	 26.	GOVERNING LAW	15
	 	 	 
	 27.	ENTIRE AGREEMENT	15
	 	 	 
	 28.	NO WAIVER	15
	 	 	 
	 29.	PRONOUNS AND PLURALS	15
	 	 	 
	 30.	HEADINGS	15
	 	 	 
	 31.	EXECUTION IN COUNTERPARTS	15

 

    	 

    	 	

    

 

ADVISORY AGREEMENT

 

THIS SECOND AMENDED AND RESTATED ADVISORY
AGREEMENT (this “Agreement”), dated as of November 12, 2012, is entered into among American Realty Capital Healthcare
Trust, Inc., a Maryland corporation (the “ Company ”), American Realty Capital Healthcare Trust Operating Partnership,
L.P., a Delaware limited partnership (the “Operating Partnership”), and American Realty Capital Healthcare Advisors,
LLC, a Delaware limited liability company.

 

WITNESSETH

 

WHEREAS, the Company is a Maryland corporation
created 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 of the Company, all as provided herein;

 

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

 

WHEREAS, the Company, the Operating Partnership
and the Advisor entered into that certain Amended and Restated Advisory Agreement (the “Amended Advisory Agreement”),
dated as of July 31, 2012; and

 

WHEREAS, the Company, the Operating Partnership
and the Advisor desire to amend and restate the Amended Advisory Agreement;

 

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 and the costs of performing due diligence.

 

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

 

“Advisor” means
American Realty Capital Healthcare Advisors, LLC, a Delaware limited liability company, any successor advisor to the Company and
the Operating Partnership, or any Person to which American Realty Capital Healthcare Advisors, LLC or any successor advisor subcontracts
substantially all its functions.  Notwithstanding the foregoing, a Person hired or retained by American Realty Capital
Healthcare Advisors, LLC to perform property management and related services for the Company or the Operating Partnership that
is not hired or retained to perform substantially all the functions of American Realty Capital Healthcare 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.

 

    	1

    	 

    
 

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

 

“Amended Advisory Agreement”
has the meaning set forth in the recitals.

 

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

 

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

 

“ Average Invested Assets
” means, for a specified period, the average of the aggregate book value of the assets of the Company invested, directly
or indirectly, in Investments before deducting depreciation, bad debts or other non-cash reserves, computed by taking the average
of such values at the end of each month during such period.  For an equity interest owned in a Joint Venture, the calculation
of Average Invested Assets shall take into consideration the underlying Joint Venture’s aggregate book value for the equity
interest.

 

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

 

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

 

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

 

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

 

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

 

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

 

    	2

    	 

    
 

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

 

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

 

“Dealer Manager Fee”
means three percent (3.0%) of Gross Proceeds 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 member of the Board of Directors.

 

“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.

 

“Financing Coordination Fee” means
the fee payable to the Advisor or its Affiliates pursuant to Section 10(d).

 

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

 

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

 

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

 

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

  

“Indemnitee” has
the meaning set forth in Section 21.

 

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

 

“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, member or partner, which are established
to own Investments.

 

“Listing”
means (i) the listing of the Shares on a national securities exchange or (ii) the receipt by the Stockholders of securities
that are listed on a national securities exchange in exchange for Shares in a merger or any other type of transaction.

 

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

 

    	3

    	 

    
 

“Losses” has the
meaning set forth in Section 21.

 

“Management Agreement”
means the Property Management and Leasing Agreement, dated as of February 18, 2011, among the Company, the Operating Partnership
and American Realty Capital Healthcare Properties, LLC, as the same may be amended from time to time.

  

“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 published by the North American Securities Administrators
Association on May 7, 2007, as the same may be amended from time to time.

 

“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 23.

 

“Offering” means
the public offering of Shares pursuant to a Prospectus.

 

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

 

“Operating Partnership Agreement”
means the Amended and Restated Agreement of Limited Partnership of the Operating Partnership, dated as of November 12, 2012, among
the Company, American Realty Capital Healthcare Special Limited Partnership, LLC and the Advisor, as the same may be amended from
time to time.

 

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

 

“Organization and Offering Expenses”
means all expenses (other than the Selling Commission and the Dealer Manager Fee) to be paid by the Company in connection with
an Offering, including legal, accounting, printing, mailing and filing fees, charges of the escrow holder and transfer agent, charges
of the Advisor for administrative services related to the issuance of Shares in an Offering, reimbursement of the Advisor for costs
in connection with preparing supplemental sales materials, the cost of bona fide training and education meetings held by the Company
(primarily the travel, meal and lodging costs of the registered representatives of broker-dealers), attendance and sponsorship
fees and cost reimbursement for employees of the Company’s Affiliates to attend retail seminars conducted by broker-dealers
and, in special cases, reimbursement to soliciting broker-dealers for technology costs associated with an Offering, costs and expenses
related to such technology costs, and costs and expenses associated with facilitation of the marketing of the Shares and the ownership
of Shares by such broker-dealer’s customers. The definition of “Organization and Offering Expenses” set forth
above is intended to encompass all, but only, those expenses which are required to be treated as Organization and Offering Expenses
under the NASAA REIT Guidelines. As a result, and notwithstanding the definition set forth above, any expenses of the Company which
is not a part of Organization and Offering Expenses under the NASAA REIT Guidelines shall not be treated as part of Organization
and Offering Expenses for purposes hereof.

  

“Person” means
an individual, corporation, partnership, joint venture, association, company (whether of limited liability or otherwise), trust,
bank or other entity, or any government or any agency or political subdivision of a government.

  

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

  

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

 

“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 (including each final prospectus of the Company that may be so filed after the initial prospectus of the Company). 

 

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“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, mezzanine loans, bridge
loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests and participations
in such loans, by the Company or the Operating Partnership, directly, through one or more subsidiaries or through a Joint Venture.

 

“Real Property”
means real property owned from time to time by the Company or the Operating Partnership, directly, through one or more subsidiaries
or through a Joint Venture, which consists of (i) land only, (ii) land, including the buildings located thereon, (iii) buildings
only, or (iv) such investments the Board or the Advisor designate as Real Property to the extent such investments could be
classified as Real Property.

 

“REIT” means a
“real estate investment trust” under Sections 856 through 860 of the Code.

 

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

 

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

 

“Selling Commission”
means seven percent (7.0%) of Gross Proceeds from the sale of Shares in a Primary Offering payable to the Dealer Manager and reallowable
to Soliciting Dealers with respect to Shares sold by them.

 

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

 

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

 

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

 

“Stockholders”
means the registered holders of the Shares.

 

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

  

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

 

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“ Total Operating Expenses”
of a Person means the aggregate of all costs and expenses paid or incurred by such Person, but excluding Organization and Offering
Expenses, interest payments, taxes, non-cash expenditures, any Acquisitions Fees, Acquisition Expenses or Financing Coordination
Fees.  The definition of “Total Operating Expenses” set forth above is intended to encompass all, but 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.

 

“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,
By-laws 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;

 

(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) provide research, economic and statistical
data, identify, review and recommend acquisitions and dispositions of Investments to the Board and make Investments on behalf of
the Company and the Operating Partnership in compliance with the investment objectives and policies of the Company; (v) arrange
for financing and refinancing and make other changes in the asset or capital structure of, and dispose of, reinvest the proceeds
from the sale of, or otherwise deal with, Investments; (vi) enter into leases and service contracts for Real Estate Assets
and, to the extent necessary, perform all other operational functions for the maintenance and administration of such Real Estate
Assets; (vii) actively oversee and manage Investments for purposes of meeting the Company’s investment objectives and
reviewing and analyzing financial information for each of the Investments and the overall portfolio; (viii) select Joint Venture
partners, structure corresponding agreements and oversee and monitor these relationships; (ix) oversee, supervise and evaluate
Affiliated and non-Affiliated property managers who perform services for the Company or the Operating Partnership; (x) oversee
Affiliated and non-Affiliated Persons with whom the Advisor contracts to perform certain of the services required to be performed
under this Agreement; (xi) manage accounting and other record-keeping functions for the Company and the Operating Partnership,
including reviewing and analyzing the capital and operating budgets for the Real Estate Assets and generating an annual budget
for the Company; (xii) recommend various liquidity events to the Board when appropriate; and (xiii) source and structure
Real Estate Related Loans; 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(q)           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; and

 

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

 

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 Investments will require the prior approval of the Board, any particular Directors specified
by the Board or any committee of the Board specified by the Board, as the case may be.

 

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(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, stands in a fiduciary relationship with the Stockholders and the partners in the Operating Partnership. 

 

6.           
NO PARTNERSHIP OR JOINT VENTURE.   Except as provided in Section 10(h), 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 By-laws,
except if such action shall be ordered by the Board, in which case the Advisor shall notify promptly the Board of the Advisor’s
judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification
or instructions from the Board.  In such event, the Advisor shall have no liability for acting in accordance with the
specific instructions of the Board so given.

 

10.         
FEES.

 

(a)           
Acquisition Fees; Acquisition Expenses.   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 and
acquisition (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 purchase price of Real Estate Assets
and one percent (1.0%) of the amount advanced for Real Estate Related Loans or other Investments (other than Real Estate Assets),
along with reimbursement of Acquisition Expenses.  The purchase price of the Real Estate Assets shall equal the
amount paid or allocated to the purchase, development or improvement of the Real Estate Assets inclusive of expenses related thereto
and the amount of debt associated with such Investment.  The purchase price allocable for an Investment held through
a Joint Venture shall equal the product of (i) the purchase price of, or the amount advanced for, the Investment, as applicable,
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 to the Advisor or its Affiliates the
Acquisition Fee promptly upon the closing of the Investment.  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 purchase price of Real Estate Assets and one percent (1.0%) of the amount
advanced for Real Estate Related Loans or other Investments (other than Real Estate Assets), along with reimbursement of acquisition
expenses. 

 

    	8

    	 

    
 

(b)           
Limitation on Total Acquisition Fees, Financing Coordination Fees and Acquisition Expenses.   The total
of all “Acquisition Fees” (as defined in the Articles of Incorporation), Financing Coordination Fees and Acquisition
Expenses payable in connection with any Investment or any reinvestment shall not exceed four and one-half percent (4.5%)
of the Contract Purchase Price of the Investment acquired or four and one-half percent (4.5%) of the amount advanced for an Investment;
provided, however, that once all the proceeds from the initial Offering have been fully invested, the total of all Acquisition
Fees and Financing Coordination Fees shall not exceed one and one-half percent (1.5%) of the Contract Purchase Price of all the
Investments acquired.

 

(c)           
Property Disposition Fee.   In connection with a Sale of a Real Estate Asset 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 Property Disposition Fee equal to the lesser of (i) two percent (2.0%) of the Contract Sales
Price of such Real Estate Asset and (ii) one-half of the total brokerage commission paid if a brokerage commission or other disposition
fee is paid to a non-Affiliate broker in addition to the Property Disposition Fee paid to the Advisor or its assignees; provided,
however, that in no event may the Property 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.

 

(d)           
Asset Management Fee.   The Company shall pay an Asset Management Fee to the Advisor or its assignees
as compensation for services rendered in connection with the management of the Company’s assets up to and including September
30, 2012 in an amount equal to 0.75% per annum of Average Invested Assets; provided, however, that the Asset Management Fee shall
be reduced by any amounts payable as an Oversight Fee (as defined in the Management Agreement), such that the aggregate of the
Asset Management Fee and the Oversight Fee does not exceed 0.75% per annum of Average Invested Assets. The Asset Management Fee
is payable on the first business day of each month for the respective current month in the amount of 0.0625% of Average Invested
Assets as of such date.  The Asset Management Fee will be reduced to the extent that NAREIT FFO, as adjusted, during the
six months ending on the last day of the calendar quarter immediately preceding the date that such Asset Management Fee is payable,
is less than :  (i) for the period up to and including June 30, 2012, the Distributions paid with respect to such six month
period and (ii) for the period from July 1, 2012 up to and including September 30, 2012, the Distributions declared with respect
to such six month period. For purposes of this determination, NAREIT FFO, as adjusted, is NAREIT FFO adjusted to (i) include acquisition
fees and related expenses which is deducted in computing NAREIT FFO; and (ii) include non-cash restricted stock grant amortization,
if any, which is deducted in computing NAREIT FFO. 

 

(e)           
Financing Coordination Fee.   The Company shall pay a Financing Coordination Fee to the Advisor or its
assignees in connection with the financing of any Investment, assumption of any Loans with respect to any Investment or refinancing
of any Loan in an amount equal to one percent (1.0%) of the amount made available and/or outstanding under any such Loan, including
any assumed Loan.  The Advisor may reallow some of or all this Financing Coordination Fee to reimburse third parties
with whom it may subcontract to procure any such Loan.

  

(f)           
Payment of Fees.   In connection with the Acquisition Fee, Property Disposition Fee and Financing Coordination
Fee, the Company shall pay such fees to the Advisor or its assignees in cash, 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, up to and including September 30, 2012, in cash, Shares or grants of restricted Shares, or any combination
thereof. For the purposes of the payment of any fees in Shares, (i) if at the applicable time an Offering is underway, 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 such Offering; and (ii) at all other times, each Share shall be valued by the Board in good faith (A) at
the estimated value thereof, calculated in accordance with the provisions of NASD Rule 2340(c)(1) (or any successor or similar
FINRA rule), or (B) if no such rule shall then exist, at the fair market value thereof; provided, however, that in the case of
Asset Management Fees payable in grants of restricted Shares, each Share shall be valued in accordance with the provisions of the
equity incentive plan of the Company pursuant to which such grants are to be made.

 

(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.

 

    	9

    	 

    
 

(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 the internalization
transaction. For the avoidance of doubt, any compensation paid or payable by the Company to employees of the Company in connection
with their employment by the Company (which employees were formerly employed by the Advisor or any of their Affiliates) shall not
be deemed to be compensation or other remuneration in connection with any internalization transaction for purposes of the immediately
preceding sentence. This provision shall not limit any other consideration or distributions that the Company may pay the Advisor
in accordance with this Agreement or any other agreement. This provision shall in no way obligate the Advisor to facilitate an
internalization transaction with the Advisor or any of its Affiliates.

 

(h)          Subordinated Participation
Interests.  The Company shall cause the Operating Partnership to periodically issue Subordinated Participation Interests
in the Operating Partnership to the Advisor or its assignees, pursuant to the terms and conditions contained in the Operating Partnership
Agreement, in connection with the Advisor’s (or its assignees’) management of the Operating Partnership’s assets
commencing on October 1, 2012.

 

11.        
  EXPENSES.

 

(a)           In
addition to the compensation paid to the Advisor pursuant to Section 10, the Company or the Operating Partnership shall
pay directly or reimburse the Advisor for all the expenses paid or 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 one-half
percent (1.5%) of the Gross Proceeds raised in all Primary Offerings;

 

(ii)           Acquisition
Expenses subject to the limitation set forth in Section 10(b) ;

 

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

 

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

 

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

 

(vi)          costs
associated with insurance required in connection with the business of the Company or by the Board;

 

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

 

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

 

(ix)          
 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;

 

(x)           expenses
connected with payments of Distributions;

 

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

 

(xii)          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;

 

    	10

    	 

    
 

(xiii)         administrative
service expenses, including all costs and expenses incurred by the 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 a separate fee; and

 

(xiv)          audit,
accounting and legal fees.

 

(b)           Commencing
upon the earlier to occur of (i) the fifth fiscal quarter after the Company makes its first Investment and (ii) six (6) months
after the commencement of the initial 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 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, 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. 

 

    	11

    	 

    
 

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 year from the date hereof.  Thereafter,
the term may be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties.

 

17.         
TERMINATION BY THE PARTIES.   This Agreement may be terminated upon sixty (60) days’ prior written notice
(a) by the Independent Directors of the Company 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; provided, that termination of this Agreement with Cause shall be
upon forty-five (45) days’ prior written notice.  The provisions of Sections 15 and 19 through
31 (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 income, losses, distributions and capital by payment
of an amount equal to the then-present fair market value of the Advisor’s interest, 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;

 

    	12

    	 

    
 

(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.         INCORPORATION
OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT.   To the extent that the Articles of Incorporation
or the Operating Partnership Agreement as in effect on the date hereof 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.

 

21.         
INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP. 

 

(a)           The
Company and the Operating Partnership, jointly and severally, shall indemnify and hold harmless the Advisor 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 and against all losses,
claims, damages, losses, joint or several, expenses (including reasonable attorneys’ fees and other legal fees and expenses),
judgments, fines, settlements, and other amounts (collectively, “Losses”) arising in the performance of their
duties hereunder, including reasonable attorneys’ fees, to the extent such Losses are not fully reimbursed by insurance,
and to the extent that such indemnification would not be inconsistent with the 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 suffered by such Indemnitee, nor
shall they provide that an Indemnitee be held harmless for any Loss suffered by the Company and the Operating Partnership, unless
all the following conditions are met:

 

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

 

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

 

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

 

(iv)        such
indemnification or agreement to hold harmless is not recoverable from the Stockholders.

 

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

 

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

 

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

 

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

 

    	13

    	 

    
 

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

 

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

 

(iii)         the
Indemnitee undertakes to repay the advanced funds to the Company or the Operating Partnership, together with the applicable legal
rate of interest thereon, in cases in which such Indemnitee is ultimately found not to be entitled to indemnification in a final,
non-appealable judgment of a court if competent jurisdiction.

 

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

 

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

	 	 	 
	To the Company:	 	American Realty Capital Healthcare Trust, Inc.
	 	 	405 Park Avenue
	 	 	New York, New York 10022
	 	 	Attention:  Nicholas S. Schorsch,
	 	 	                  Chief Executive Officer
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Attention:  Peter M. Fass, Esq.
	 	 	Attention:  James P. Gerkis, Esq.

 

	To the Operating Partnership:	 	American Realty Capital Healthcare Trust Operating Partnership, L.P.
	 	 	405 Park Avenue
	 	 	New York, New York 10022
	 	 	Attention:  Nicholas S. Schorsch
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Attention:  Peter M. Fass, Esq.
	 	 	Attention:  James P. Gerkis, Esq.
	 	 	 
	To the Advisor:	 	American Realty Capital Healthcare Advisors, LLC
	 	 	405 Park Avenue
	 	 	New York, New York 10022
	 	 	Attention:  Nicholas S. Schorsch
	 	 	 
	 	 	with a copy to:
	 	 	 
	 	 	Proskauer Rose LLP
	 	 	Eleven Times Square
	 	 	New York, New York 10036
	 	 	Attention:  Peter M. Fass, Esq.
	 	 	Attention:  James P. Gerkis, Esq.
	 	 	 

 

    	14

    	 

    
 

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 23 .

 

24.         
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.

 

25.         
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.

 

26.         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.

 

27.         
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.
 

 

28.         
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.

 

29.         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.

 

30.         
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.

 

31.         
EXECUTION IN COUNTERPARTS.   This Agreement may be executed (including by facsimile transmission) with counterpart
signature pages or in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument.

 

[Remainder of page intentionally left
blank]

 

    	15

    	 

    

 

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

	 
	AMERICAN REALTY CAPITAL Healthcare Trust, INC.
	 	 
	By:	 /s/ Nicholas S. Schorsch
	 	Name:  Nicholas S. Schorsch
	 	Title:   Chief Executive Officer
	 
	American Realty Capital Healthcare Trust OPERATING PARTNERSHIP, L.P.
	 	 
	By:	American Realty Capital Healthcare Trust, Inc.
	 	 
	 	its General Partner
	 	 
	By:	 /s/ Nicholas S. Schorsch
	 	Name:  Nicholas S. Schorsch
	 	Title:   Chief Executive Officer
	 
	American Realty Capital Healthcare ADVISORS, LLC
	 	 
	By:	 /s/ Thomas P. D’Arcy
	 	Name:  Thomas P. D’Arcy
	 	Title:  Chief Executive Officer
	 	 
	16[FOR WARRANTS ISSUED TO PURCHASERS OTHER
THAN VIVO AND NEW LEAF] 

 

WARRANT 

 

NEITHER THE ISSUANCE AND SALE OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT
REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

MEI PHARMA, INC. 

 

WARRANT
TO PURCHASE
COMMON STOCK

 

Warrant No.: [_]-1

Number of Shares of Common Stock: [_________]

Date of Issuance: [_________], 2012 (“Issuance Date”)

 

MEI Pharma, Inc., a company
organized under the laws of Delaware (the “Company”), hereby certifies that, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, [________________], the registered holder hereof or its permitted
assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at
the Exercise Price (as defined below) then in effect, upon surrender of this Warrant to Purchase Common Stock (including any Warrants
to Purchase Common Stock issued in exchange, transfer or replacement hereof, the “Warrant”), at any time or
times on or after the Issuance Date, but not after 11:59 p.m., New York time, on the Expiration Date (as defined below), [__________________________
(_______)] fully paid, nonassessable shares of Common Stock, par value $0.00000002 per share, subject to adjustment as provided
herein (the “Warrant Shares”). Except as otherwise defined herein, capitalized terms in this Warrant shall have
the meanings set forth in Section 16. This Warrant is one of the warrants to purchase Common Stock (the “SPA Warrants”)
issued pursuant to Section 2.1 of that certain Securities Purchase Agreement, dated as of November 4, 2012 (the “Subscription
Date”), by and among the Company and the investors (the “Buyers”) referred to therein.

 

1. EXERCISE OF WARRANT.

 

(a) Mechanics of
Exercise. Subject to the terms and conditions hereof (including, without limitation, the limitations set forth in Section 1(f)),
this Warrant may be exercised by the Holder on any time or times on or after the Issuance Date, in whole or in part, by (i) delivery
of a written notice, in the form attached hereto as Exhibit A (the “Exercise Notice”), of the Holder’s
election to exercise this Warrant and (ii) (A) payment to the Company of an amount equal to the applicable Exercise Price multiplied
by the number of Warrant Shares as to which this Warrant is being exercised (the “Aggregate Exercise Price”)
in cash or by wire transfer of immediately available funds or (B) by notifying the Company that this Warrant is being exercised
pursuant to a Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required to deliver the original Warrant
in order to effect an exercise hereunder. Execution and delivery of the Exercise Notice with respect to less than all of the Warrant
Shares shall have the same effect as reducing the number of Warrant Shares on the face of this Warrant to the remaining number
of Warrant Shares underlying this Warrant. On or before the third (3rd) Trading Day following the date on which the
Exercise Notice has been delivered to the Company (the “Share Delivery Date”) (provided that if the Aggregate
Exercise Price (unless notice of Cashless Exercise was given in the Exercise Notice) has not been delivered by such date, the Share
Delivery Date shall be one Trading Day after the Aggregate Exercise Price is delivered), the Company shall (X) provided that the
Company’s transfer agent (the “Transfer Agent”) is participating in The Depository Trust Company (“DTC”)
Fast Automated Securities Transfer Program, credit such aggregate number of Warrant Shares to which the Holder is entitled pursuant
to such exercise to the Holder’s or its designee’s balance account with DTC through its Deposit / Withdrawal At Custodian
system, or (Y) if the Transfer Agent is not participating in the DTC Fast Automated Securities Transfer Program or upon the request
of the Holder, issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered
in the Company’s share register in the name of the Holder or its designee, for the number of shares of Common Stock to which
the Holder is entitled pursuant to such exercise. The Company shall be responsible for all fees and expenses of the Transfer Agent
and all fees and expenses with respect to the issuance of Warrant Shares via DTC, if any. Upon proper delivery of the Exercise
Notice (provided that payment of the Aggregate Exercise Price or notice of Cashless Exercise is delivered in accordance herewith,
as applicable), the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised, irrespective of the date such Warrant Shares are credited to the Holder’s
DTC account or the date of delivery of the certificates evidencing such Warrant Shares, as the case may be. If this Warrant is
submitted in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant
submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as
soon as practicable and in no event later than three (3) Trading Days after any exercise and at its own expense, issue a new Warrant
(in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares issuable immediately prior to
such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional
shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to be
issued shall be rounded up to the nearest whole number. The Company shall pay any and all taxes which may be payable with respect
to the issuance and delivery of Warrant Shares upon exercise of this Warrant.

 

    	 

    	 

    
 

(b) Exercise Price.
For purposes of this Warrant, “Exercise Price” means $0.52 per Warrant Share, subject to adjustment as provided
herein.

 

(c) Company’s
Failure to Timely Deliver Securities. If, on or prior to the Share Delivery Date, the Company shall fail to issue and deliver
a certificate to the Holder and register such shares of Common Stock on the Company’s share register or credit the Holder’s
balance account with DTC for the number of shares of Common Stock to which the Holder is entitled upon the Holder’s exercise
hereunder or pursuant to the Company’s obligation pursuant to clause (ii) below, and if on or after such Trading Day the
Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the
Holder of shares of Common Stock issuable upon such exercise that the Holder anticipated receiving from the Company (a “Buy-In”),
then the Company shall, within three (3) Trading Days after the Holder’s request and in the Holder’s discretion, either
(i) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions and other
reasonable out-of-pocket expenses, if any) for the shares of Common Stock so purchased (the “Buy-In Price”),
at which point the Company’s obligation to deliver such certificate (and to issue such shares of Common Stock) or credit
such Holder’s balance account with DTC shall terminate, or (ii) promptly honor its obligation to deliver to the Holder a
certificate or certificates representing such shares of Common Stock or credit such Holder’s balance account with DTC and
pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such number of shares
of Common Stock, times (B) the Closing Bid Price on the date of exercise.

 

    	 

    	 

    
 

(d) Cashless Exercise.
Notwithstanding anything contained herein to the contrary, the Holder may, in its sole discretion, exercise this Warrant in whole
or in part and, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment
of the Aggregate Exercise Price, elect instead to receive upon such exercise the “Net Number” of shares of Common Stock
determined according to the following formula (a “Cashless Exercise”):

 

Net Number = (A x B) -(A x
C) 

D

 

For purposes of the foregoing
formula:

 

A=
the total number of shares with respect to which this Warrant is then being exercised.

 

B=
the arithmetic average of the Weighted Average Prices of the Common Stock (as reported by Bloomberg) for the five (5) consecutive
Trading Days ending on the date immediately preceding the date of the Exercise Notice.

 

C=
the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

 

D=
the Weighted Average Price of the Common Stock on the Exercise Date.

 

For purposes of Rule
144(d) promulgated under the 1933 Act, as in effect on the date hereof, it is intended and the Company acknowledges that the Warrant
Shares issued in a Cashless Exercise shall be deemed to have been acquired by the Holder, and the holding period for the Warrant
Shares shall be deemed to have commenced, on the Issuance Date. For the avoidance of doubt, the Company shall not be required to
repurchase, redeem or settle any Warrant Shares for cash or other property, other than for shares of Common Stock in accordance
with the provisions of this Section 1(d).

 

    	 

    	 

    
 

(e) Disputes.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance
with Section 12.

 

(f) Limitations
on Exercises. The Company shall not effect the exercise of this Warrant and the Holder shall not have the right to exercise
this Warrant, to the extent that after giving effect to such exercise, such Person (together with such Person’s affiliates)
would beneficially own in excess of 9.99% (the “Maximum Percentage”) of the shares of Common Stock outstanding
immediately after giving effect to such exercise. For purposes of the foregoing sentence, the aggregate number of shares of Common
Stock beneficially owned by such Person and its affiliates shall include the number of shares of Common Stock issuable upon exercise
of this Warrant with respect to which the determination of such sentence is being made, but shall exclude shares of Common Stock
which would be issuable upon (i) exercise of the remaining, unexercised portion of this Warrant beneficially owned by such Person
and its affiliates and (ii) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company
beneficially owned by such Person and its affiliates (including, without limitation, any convertible notes or convertible preferred
stock or warrants) subject to a limitation on conversion or exercise analogous to the limitation contained herein. Except as set
forth in the preceding sentence, for purposes of this paragraph, beneficial ownership shall be calculated in accordance with Section
13(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”). For purposes of this Warrant, in
determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common
Stock as reflected in (1) the Company’s most recent Form 10-K, Form 10-Q, Current Report on Form 8-K or other public filing
with the Securities and Exchange Commission, as the case may be, (2) a more recent public announcement by the Company or (3) any
other notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. For any reason
at any time, upon the written or oral request of the Holder, the Company shall within one (1) Business Day confirm orally and in
writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common
Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including Warrants, by
the Holder and its affiliates since the date as of which such number of outstanding shares of Common Stock was reported. By written
notice to the Company, the Holder may from time to time increase or decrease the Maximum Percentage to any other percentage not
in excess of 9.99% specified in such notice; provided that (i) any such increase will not be effective until the sixty-first (61st)
day after such notice is delivered to the Company, and (ii) any such increase or decrease will apply only to the Holder and not
to any other holder of Warrants. The provisions of this paragraph shall be construed and implemented in a manner otherwise than
in strict conformity with the terms of this Section 1(f) to correct this paragraph (or any portion hereof) which may be defective
or inconsistent with the intended beneficial ownership limitation herein contained or to make changes or supplements necessary
or desirable to properly give effect to such limitation.

 

    	 

    	 

    
 

(g) Insufficient
Authorized Shares. The Company will at all times reserve and keep available, solely for issuance and delivery upon the exercise
of this Warrant, such number of Warrant Shares and other securities, cash and/or property, as from time to time shall be issuable
upon the exercise of this Warrant. If at any time while this Warrant remains outstanding the Company does not have a sufficient
number of authorized and unreserved shares of Common Stock to satisfy its obligation to reserve for issuance upon exercise of this
Warrant at least a number of shares of Common Stock equal to 100% (the “Required Reserve Amount”) of the number
of shares of Common Stock as shall from time to time be necessary to effect the exercise of all of this Warrant then outstanding
(an “Authorized Share Failure”), then the Company shall immediately take all action necessary to increase the
Company’s authorized shares of Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve
Amount for this Warrant then outstanding. Without limiting the generality of the foregoing sentence, as soon as practicable after
the date of the occurrence of an Authorized Share Failure, but in no event later than sixty (60) days after the occurrence of such
Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of
authorized shares of Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement
and shall use its best efforts to solicit its stockholders’ approval of such increase in authorized shares of Common Stock
and to cause its board of directors to recommend to the stockholders that they approve such proposal. For the avoidance of doubt,
the occurrence of an Authorized Share Failure shall not require the Company to repurchase, redeem or settle this Warrant for cash
or other property.

 

2. ADJUSTMENT UPON
SUBDIVISION OR COMBINATION OF SHARES OF COMMON STOCK. If the Company at any time on or after the Subscription Date subdivides
(by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock
into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced
and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Subscription Date
combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into
a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased
and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 2 shall become effective
at the close of business on the date the subdivision or combination becomes effective.

 

3. RIGHTS UPON DISTRIBUTION
OF ASSETS. If the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its
assets) (the “Distributed Property”) to holders of shares of Common Stock, by way of return of capital or otherwise
(including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend,
spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”),
at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled, upon exercise of this Warrant
for the purchase of any or all of the Warrant Shares, to receive the amount of Distributed Property which would have been payable
to the Holder had such Holder been the holder of such Warrant Shares on the record date for the determination of the stockholders
entitled to receive such Distributed Property. The Company will at all times set aside in escrow and keep available for distribution
to such Holder upon exercise of this Warrant a portion of the Distributed Property to satisfy the distribution to which such Holder
is entitled pursuant to the preceding sentence.

 

    	 

    	 

    
 

4. FUNDAMENTAL TRANSACTIONS.
If any Fundamental Transaction (as defined in Section 16 below) shall be effected, then, as a condition of such Fundamental Transaction,
lawful and adequate provision shall be made whereby each Holder shall thereafter have the right to purchase and receive upon the
basis and upon the terms and conditions herein specified and in lieu of the Warrant Shares immediately theretofore issuable upon
exercise of the Warrant, such shares of stock, securities or assets as would have been issuable or payable with respect to or in
exchange for a number of Warrant Shares equal to the number of Warrant Shares immediately theretofore issuable upon exercise of
the Warrant, had such Fundamental Transaction not taken place, and in any such case appropriate provision shall be made with respect
to the rights and interests of each Holder to the end that the provisions hereof (including, without limitation, provision for
adjustment of the Exercise Price) shall thereafter be applicable, as nearly equivalent as may be practicable in relation to any
shares of stock, securities or assets thereafter deliverable upon the exercise hereof. The Company shall not effect any such Fundamental
Transaction unless prior to or simultaneously with the consummation thereof the successor corporation (if other than the Company)
resulting from such consolidation or merger, or the corporation purchasing or otherwise acquiring such assets or other appropriate
corporation or entity shall assume the obligation to deliver to the Holder, at the last address of the Holder appearing on the
books of the Company, such shares of stock, securities or assets as, in accordance with the foregoing provisions, the Holder may
be entitled to purchase, and the other obligations under this Warrant. The provisions of this Section 4 shall similarly apply to
successive Fundamental Transactions.

 

5. NONCIRCUMVENTION.
The Company hereby covenants and agrees that the Company will not, by amendment of its Certificate of Incorporation or Bylaws,
or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant,
and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect
the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of
any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take
all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable
shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as any of the SPA Warrants are outstanding,
take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the
purpose of effecting the exercise of the SPA Warrants, 100% of the number of shares of Common Stock as shall from time to time
be necessary to effect the exercise of the SPA Warrants then outstanding.

 

6. WARRANT HOLDER
NOT DEEMED A STOCKHOLDER. Except as otherwise specifically provided herein, the Holder, solely in such Person’s capacity
as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the
Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person’s
capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger,
conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance
to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition,
nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon
exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company
or by creditors of the Company.

 

    	 

    	 

    
 

7. REISSUANCE OF WARRANTS.

 

(a) Transfer of
Warrant. If this Warrant is to be transferred as permitted herein, the Holder shall surrender this Warrant to the Company,
whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)),
registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the
Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in
accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

 

(b) Lost, Stolen
or Mutilated Warrant. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder
to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall
execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant
Shares then underlying this Warrant.

 

(c) Exchangeable
for Multiple Warrants. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the
Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the
number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion
of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no Warrants for fractional
shares of Common Stock shall be given.

 

(d) Issuance of
New Warrants. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to
purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a)
or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying
the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this
Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date,
and (iv) shall have the same rights and conditions as this Warrant.

 

    	 

    	 

    
 

8. NOTICES. Whenever
notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance with
Section 8.6 of the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions
taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting
the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment of the
Exercise Price pursuant to Section 2, setting forth in reasonable detail, and certifying, the calculation of such adjustment and
(ii) at least fifteen (15) days prior to the date on which the Company closes its books or takes a record (A) with respect to any
dividend, distribution or rights offering with respect to shares of Common Stock or (B) for determining rights to vote with respect
to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to
the public prior to or in conjunction with such notice being provided to the Holder.

 

9. ENTIRE AGREEMENT;
AMENDMENTS. This Warrant and the Transaction Documents (as defined in the Securities Purchase Agreement) constitutes the entire
agreement among the parties hereto with respect to the subject matter hereof. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein. This Warrant supersedes all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof. No provision of this Warrant may be waived or amended other
than by an instrument in writing signed by the party to be charged with enforcement. Any amendment or waiver by a party effected
in accordance with this Section 9 shall be binding upon such party and each future Holder.

 

10. GOVERNING LAW.
This Warrant shall be governed by, and construed in accordance with, the internal laws of the State of New York without regard
to the choice of law principles thereof.

 

11. NO STRICT CONSTRUCTION.
The language used in this Agreement is deemed to be the language chosen by the parties to express their mutual intent, and no rules
of strict construction will be applied against any party.

 

12. DISPUTE RESOLUTION.
In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall submit the disputed determinations or arithmetic calculations via facsimile within two (2) Business Days of receipt
of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable
to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three (3) Business Days of such
disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two (2) Business
Days submit via facsimile (a) the disputed determination of the Exercise Price to an independent, reputable investment bank selected
by the Company and approved by the Holder or (b) the disputed arithmetic calculation of the Warrant Shares to the Company’s
independent, outside accountant. The Company shall cause at its expense the investment bank or the accountant, as the case may
be, to perform the determinations or calculations and notify the Company and the Holder of the results no later than ten Business
Days from the time it receives the disputed determinations or calculations. Such investment bank’s or accountant’s
determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

 

    	 

    	 

    
 

13. EQUITABLE RELIEF.
The Company recognizes that, if it fails to perform or discharge any of its obligations under this Warrant, any remedy at law may
prove to be inadequate relief to the Holder. The Company therefore agrees that the Holder is entitled to seek temporary and permanent
injunctive relief in any such case. The Holder also recognizes that, if it fails to perform or discharge any of its obligations
under this Agreement, any remedy at law may prove to be inadequate relief to the Company. The Holder therefore agrees that the
Company is entitled to seek temporary and permanent injunctive relief in any such case.

 

14. TRANSFER.
This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company, except as may otherwise
be required by Section 4.7 of the Securities Purchase Agreement.

 

15. SEVERABILITY.
If any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision
will be deemed modified in order to conform with such statute or rule of law. Any provision hereof that may prove invalid or unenforceable
under any law will not affect the validity or enforceability of any other provision hereof.

 

16. CERTAIN DEFINITIONS.
For purposes of this Warrant, the following terms shall have the following meanings:

 

(a) “Bloomberg”
means Bloomberg Financial Markets.

 

(b) “Business
Day” means a day Monday through Friday on which banks are generally open for business in New York City.

 

(c) “Closing
Bid Price” and “Closing Sale Price” means, for any security as of any date, the last closing bid price
and last closing trade price, respectively, for such security on the Principal Market, as reported by Bloomberg, or, if the Principal
Market begins to operate on an extended hours basis and does not designate the closing bid price or the closing trade price, as
the case may be, then the last bid price or the last trade price, respectively, of such security prior to 4:00:00 p.m., New York
time, as reported by Bloomberg, or, if the Principal Market is not the principal securities exchange or trading market for such
security, the last closing bid price or last trade price, respectively, of such security on the principal securities exchange or
trading market where such security is listed or traded as reported by Bloomberg, or if the foregoing do not apply, the last closing
bid price or last trade price, respectively, of such security in the over-the-counter market on the electronic bulletin board for
such security as reported by Bloomberg, or, if no closing bid price or last trade price, respectively, is reported for such security
by Bloomberg, the average of the bid prices, or the ask prices, respectively, of any market makers for such security as reported
in the “pink sheets” by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid Price or
the Closing Sale Price cannot be calculated for a security on a particular date on any of the foregoing bases, the Closing Bid
Price or the Closing Sale Price, as the case may be, of such security on such date shall be the fair market value as mutually determined
by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair market value of such security, then
such dispute shall be resolved pursuant to Section 12. All such determinations to be appropriately adjusted for any stock dividend,
stock split, stock combination or other similar transaction during the applicable calculation period.

 

    	 

    	 

    
 

(d) “Common
Stock” means (i) the Company’s shares of Common Stock, par value $0.00000002 per share, and (ii) any share capital
into which such Common Stock shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

(e) “Eligible
Market” means the Principal Market, The NASDAQ Global Market, The NASDAQ Global Select Market, The New York Stock Exchange,
Inc., or The NYSE Amex.

 

(f) “Expiration
Date” means the date five years after the Issuance Date, if such date falls on a day other than a Business Day or on
which trading does not take place on the Principal Market (a “Holiday”), the next day that is not a Holiday.

 

(g) “Fundamental
Transaction” means that (A) the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate
or merge with or into (whether or not the Company is the surviving corporation) another Person, or (ii) sell, assign, transfer,
convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, or (iii)
consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization,
spin-off or scheme of arrangement) with another Person whereby such other Person acquires more than the 50% of the outstanding
shares of Common Stock (not including any shares of Common Stock held by the other Person or other Persons making or party to,
or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination),
or (iv) reorganize, recapitalize or reclassify its Common Stock, (B) a Person makes a purchase, tender or exchange offer that is
accepted by the holders of more than the 50% of the outstanding shares of Common Stock (not including any shares of Common Stock
held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase,
tender or exchange offer) or (C) any “person” or “group” (as these terms are used for purposes of Sections
13(d) and 14(d) of the 1934 Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934
Act), directly or indirectly, of (x) 50% of the aggregate ordinary voting power represented by issued and outstanding shares of
Common Stock, (y) 50% of the aggregate ordinary voting power represented by issued and outstanding shares of Common Stock not beneficially
owned by such Person on the Subscription Date or (z) a percentage of the aggregate ordinary voting power represented by issued
and outstanding shares of Common Stock or other equity securities of the Company sufficient to allow such Person to effect a statutory
short form merger or other transaction requiring other stockholders of the Company to surrender their shares of Common Stock without
approval of the stockholders of the Company.

 

(h) “Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
any other entity and a government or any department or agency thereof.

 

    	 

    	 

    
 

(i) “Principal
Market” means The NASDAQ Capital Market.

 

(j) “Trading
Day” means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the
principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common
Stock is then traded; provided that “Trading Day” shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market does not designate in advance the closing time
of trading on such exchange or market, then during the hour ending at 4:00:00 p.m., New York time).

 

(k) “Weighted
Average Price” means, for any security as of any date, the dollar volume-weighted average price for such security on
the Principal Market during the period beginning at 9:30:01 a.m., New York time (or such other time as the Principal Market publicly
announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such other time as the Principal Market
publicly announces is the official close of trading), as reported by Bloomberg through its “Volume at Price” function
or, if the foregoing does not apply, the dollar volume-weighted average price of such security in the over-the-counter market on
the electronic bulletin board for such security during the period beginning at 9:30:01 a.m., New York time (or such other time
as the Principal Market publicly announces is the official open of trading), and ending at 4:00:00 p.m., New York time (or such
other time as the Principal Market publicly announces is the official close of trading), as reported by Bloomberg, or, if no dollar
volume-weighted average price is reported for such security by Bloomberg for such hours, the average of the highest closing bid
price and the lowest closing ask price of any of the market makers for such security as reported in the “pink sheets”
by Pink Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Weighted Average Price cannot be calculated for a security
on a particular date on any of the foregoing bases, the Weighted Average Price of such security on such date shall be the fair
market value as mutually determined by the Company and the Holder. If the Company and the Holder are unable to agree upon the fair
market value of such security, then such dispute shall be resolved pursuant to Section 12 with the term “Weighted Average
Price” being substituted for the term “Exercise Price.” All such determinations shall be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar transaction during the applicable calculation period.

 

[Signature Page Follows]

 

    	 

    	 

    
 

IN WITNESS WHEREOF,
the Company has caused this Warrant to Purchase Common Stock to be duly executed as of the date first above written.

 

 

	 	MEI PHARMA, INC.
	 	 
	 	By:	 
	 	Name:	Daniel P. Gold
	 	Title:	Chief Executive Officer

 

    	 

    	 

    
 

EXHIBIT A 

EXERCISE NOTICE

 

TO BE EXECUTED BY THE REGISTERED HOLDER
TO EXERCISE THIS WARRANT TO PURCHASE COMMON STOCK

 

MEI PHARMA, INC.

 

The undersigned holder
hereby exercises the right to purchase _________________ shares of the Common Stock (“Warrant Shares”) of MEI
Pharma, Inc., a company incorporated under the laws of Delaware (the “Company”), evidenced by the attached Warrant
to Purchase Common Stock (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have
the respective meanings set forth in the Warrant.

 

1. Form of Exercise
Price. The Holder intends that payment of the Exercise Price shall be made as:

 

____________
a “Cash Exercise” with respect to _________________ Warrant Shares; and/or

 

____________
a “Cashless Exercise” with respect to _______________ Warrant Shares.

 

		1.	Payment of Exercise Price. In the event that the holder has elected a Cash Exercise with respect
to some or all of the Warrant Shares to be issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum
of $___________________ to the Company in accordance with the terms of the Warrant.
	 	 	 

		2.	Delivery of Warrant Shares. The Company shall deliver to the holder __________ Warrant Shares in
accordance with the terms of the Warrant.

 

Account Number (if electronic book entry
transfer): _______________________

 

DTC Participant Number (if electronic book
entry transfer): _____________________

 

Date: _______________ __, ______

 

___________________________

Name of Registered
Holder

 

	By:	 
	 	Name: 
	 	Title: 

 

    	 

    	 

    
 

ACKNOWLEDGMENT

 

The Company hereby
acknowledges this Exercise Notice and hereby directs Computershare, Inc. to issue the above indicated number of shares of Common
Stock in accordance with the Transfer Agent Instructions dated [____________], 2012 from the Company and acknowledged and agreed
to by Computershare, Inc.

 

	 	MEI PHARMA, INC.
	 	 
	 	By:	 
	 	Name:	 
	 	Title:

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