Document:

Amended and Restated 2010 Independent Director Stock Plan

 Exhibit 10.3 

PHILLIPS EDISON — ARC SHOPPING CENTER REIT INC. 

AMENDED AND RESTATED 

2010 INDEPENDENT DIRECTOR STOCK PLAN 

 Exhibit 10.3 

PHILLIPS EDISON — ARC SHOPPING CENTER REIT INC. 

2010 INDEPENDENT DIRECTOR STOCK PLAN 
  

			
	 ARTICLE 1 PURPOSE
	  	1
	 1.1. GENERAL
	  	1
	 ARTICLE 2 DEFINITIONS
	  	1
	 2.1. DEFINITIONS
	  	1
	 ARTICLE 3 EFFECTIVE TERM OF PLAN
	  	4
	 3.1. EFFECTIVE DATE
	  	4
	 3.2. TERMINATION OF PLAN
	  	4
	 ARTICLE 4 ADMINISTRATION
	  	4
	 4.1. COMMITTEE
	  	4
	 4.2. ACTION AND INTERPRETATIONS BY THE COMMITTEE
	  	4
	 4.3. AUTHORITY OF COMMITTEE
	  	4
	 4.4. AWARD CERTIFICATES
	  	5
	 ARTICLE 5 SHARES SUBJECT TO THE PLAN
	  	5
	 5.1. NUMBER OF SHARES
	  	5
	 5.2. SHARE COUNTING
	  	5
	 5.3. STOCK DISTRIBUTED
	  	5
	 ARTICLE 6 ELIGIBILITY
	  	6
	 6.1. GENERAL
	  	6
	 ARTICLE 7 RESTRICTED STOCK
	  	6
	 7.1. GRANT OF RESTRICTED STOCK
	  	6
	 7.2. ISSUANCE AND RESTRICTIONS
	  	6
	 7.3. FORFEITURE
	  	6
	 7.4. DELIVERY OF RESTRICTED STOCK
	  	6
	 ARTICLE 8 PROVISIONS APPLICABLE TO AWARDS
	  	6
	 8.1. TERM OF AWARD
	  	6
	 8.2. FORM OF PAYMENT FOR AWARDS
	  	6
	 8.3. LIMITS ON TRANSFER
	  	6
	 8.4. BENEFICIARIES
	  	7
	 8.5. STOCK TRADING RESTRICTIONS
	  	7
	 8.6. ACCELERATION UPON DEATH OR DISABILITY
	  	7
	 8.7. ACCELERATION UPON A CHANGE IN CONTROL
	  	7

  

 i 

			
	 8.8. ACCELERATION FOR ANY REASON
	  	7
	 8.9. FORFEITURE EVENTS
	  	7
	 8.10. SUBSTITUTE AWARDS
	  	7
	 ARTICLE 9 CHANGES IN CAPITAL STRUCTURE
	  	8
	 9.1. MANDATORY ADJUSTMENTS
	  	8
	 9.2. DISCRETIONARY ADJUSTMENTS
	  	8
	 ARTICLE 10 AMENDMENT, MODIFICATION AND TERMINATION
	  	8
	 10.1. AMENDMENT, MODIFICATION AND TERMINATION
	  	8
	 10.2. AWARDS PREVIOUSLY GRANTED
	  	9
	 10.3. COMPLIANCE AMENDMENTS
	  	9
	 ARTICLE 11 GENERAL PROVISIONS
	  	9
	 11.1. RIGHTS OF PARTICIPANTS
	  	9
	 11.2. WITHHOLDING
	  	9
	 11.3. SPECIAL PROVISIONS RELATED TO SECTION 409A OF THE CODE
	  	10
	 11.4. UNFUNDED STATUS OF AWARDS
	  	11
	 11.5. RELATIONSHIP TO OTHER BENEFITS
	  	11
	 11.6. EXPENSES
	  	11
	 11.7. TITLES AND HEADINGS
	  	11
	 11.8. GENDER AND NUMBER
	  	11
	 11.9. FRACTIONAL SHARES
	  	11
	 11.10. GOVERNMENT AND OTHER REGULATIONS
	  	11
	 11.11. GOVERNING LAW
	  	12
	 11.12. ADDITIONAL PROVISIONS
	  	12
	 11.13. NO LIMITATIONS ON RIGHTS OF COMPANY
	  	12
	 11.14. INDEMNIFICATION
	  	12

  

 ii 

 Exhibit 10.3 

PHILLIPS EDISON — ARC SHOPPING CENTER REIT INC. 

2010 INDEPENDENT DIRECTOR STOCK PLAN 

ARTICLE 1 

PURPOSE 
 1.1.
GENERAL. The purpose of the Phillips Edison — ARC Shopping Center REIT Inc. 2010 Independent Director Stock Plan (the “Plan”) is to promote the success, and enhance the value, of Phillips Edison — ARC Shopping Center REIT
Inc. (the “Company”), by linking the personal interests of directors of the Company to those of Company stockholders. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the
services of directors upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. Accordingly, the Plan permits the grant of incentive awards from time to time to selected directors
of the Company. 
 ARTICLE 2 

DEFINITIONS 
 2.1.
DEFINITIONS. When a word or phrase appears in this Plan with the initial letter capitalized, and the word or phrase does not commence a sentence, the word or phrase shall generally be given the meaning ascribed to it in this Section or in
Section 1.1 unless a clearly different meaning is required by the context. The following words and phrases shall have the following meanings: 
  

	 	(a)	“Affiliate” means (i) any Subsidiary or Parent, or (ii) an entity that directly or through one or more intermediaries controls, is controlled by or
is under common control with, the Company, as determined by the Committee. 

  

	 	(b)	“Award” means any Restricted Stock or any other right or interest relating to Stock or cash, granted to a Participant under the Plan.

  

	 	(c)	“Award Certificate” means a written document, in such form as the Committee prescribes from time to time, setting forth the terms and conditions of an Award.
Award Certificates may be in the form of individual award agreements or certificates or a program document describing the terms and provisions of an Award or series of Awards under the Plan. The Committee may provide for the use of electronic,
internet or other non-paper Award Certificates, and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by a Participant. 

 

	 	(d)	“Beneficial Owner” shall have the meaning given such term in Rule 13d-3 of the General Rules and Regulations under the 1934 Act.

  

	 	(e)	“Board” means the Board of Directors of the Company. 

  

	 	(f)	“Change in Control” means and includes the occurrence of any one of the following events but shall specifically exclude a Public Offering:

  

	 	(i)	 individuals who, on the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a
majority of such Board, provided that any person becoming a director after the Effective Date and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an
Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to the election or removal of directors
(“Election Contest”) or other 

  

 1 

	 	 
actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or
settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director; or 

  

	 	(ii)	any person becomes a Beneficial Owner, directly or indirectly, of either (A) 25% or more of the then-outstanding shares of common stock of the Company
(“Company Common Stock”) or (B) securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting
Securities”); provided, however, that for purposes of this subsection (ii), the following acquisitions of Company Common Stock or Company Voting Securities shall not constitute a Change in Control: (w) an acquisition directly
from the Company, (x) an acquisition by the Company or a Subsidiary, (y) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, or (z) an acquisition pursuant to a
Non-Qualifying Transaction (as defined in subsection (iii) below); or 

  

	 	(iii)	the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or a Subsidiary (a
“Reorganization”), or the sale or other disposition of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another corporation or other entity (an “Acquisition”),
unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and entities who were the Beneficial Owners, respectively, of the outstanding Company Common Stock and outstanding Company
Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly, more than 25% of, respectively, the then outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their ownership,
immediately prior to such Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no person (other than (x) the Company or any Subsidiary,
(y) the Surviving Entity or its ultimate parent entity, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the Beneficial Owner, directly or indirectly, of 25% or more of the total
common stock or 25% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity were
Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in
(A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or 

  

	 	(iv)	approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

 

	 	(g)	“Code” means the Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections of the Code shall be deemed to
include references to any applicable regulations thereunder and any successor or similar provision. 

  

	 	(h)	“Committee” means the committee of the Board described in Article 4. 

 

 2 

	 	(i)	“Company” means Phillips Edison — ARC Shopping Center REIT Inc., a Maryland corporation, or any successor corporation. 

 

	 	(j)	“Continuous Status as a Participant” means the absence of any interruption or termination of service as a director of the Company. Whether military,
government or other service or other leave of absence shall constitute a termination of Continuous Status as a Participant shall be determined in each case by the Committee at its discretion, and any determination by the Committee shall be final and
conclusive. 

  

	 	(k)	“Disability” of a Participant means that the Participant (i) is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health
plan covering employees of the Participant’s employer. In the event of a dispute, the determination of whether a Participant is Disabled will be made by the Committee and may be supported by the advice of a physician competent in the area to
which such Disability relates. 

  

	 	(l)	“Effective Date” has the meaning assigned such term in Section 3.1. 

 

	 	(m)	“Eligible Participant” means a director of the Company. 

  

	 	(n)	“Exchange” means any national securities exchange on which the Stock may from time to time be listed or traded. 

 

	 	(o)	“Fair Market Value,” on any date, means (i) if the Stock is listed on an Exchange, the closing sales price on such Exchange or over such system on such
date or, in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Stock is not listed on an Exchange, the mean between the bid and offered prices as
quoted by the applicable interdealer quotation system, provided that if the Stock is not quoted on such interdealer quotation system or it is determined that the fair market value is not properly reflected by such quotations, Fair Market Value will
be determined by such other method as the Committee determines in good faith to be reasonable and in compliance with Code Section 409A. 

  

	 	(p)	“Parent” means a corporation, limited liability company, partnership or other entity which owns or beneficially owns a majority of the outstanding voting
stock or voting power of the Company. 

  

	 	(q)	“Participant” means an independent director of the Company who has been granted an Award under the Plan; provided that in the case of the death of a
Participant, the term “Participant” refers to a beneficiary designated pursuant to Section 8.4 or the legal guardian or other legal representative acting in a fiduciary capacity on behalf of the Participant under applicable state law
and court supervision. 

  

	 	(r)	“Person” means any individual, entity or group, within the meaning of Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3) or 14(d)(2) of
the 1934 Act. 

  

	 	(s)	“Plan” means the Phillips Edison — ARC Shopping Center REIT Inc. 2010 Independent Director Stock Plan, as amended from time to time.

  

	 	(t)	“Public Offering” shall occur on the closing date of a public offering of any class or series of the Company’s equity securities pursuant to a
registration statement filed by the Company under the 1933 Act. 

  

 3 

	 	(u)	“Restricted Stock” means Stock granted to a Participant under Article 7 that is subject to certain restrictions and to risk of forfeiture.

  

	 	(v)	“Shares” means shares of the Company’s Stock. If there has been an adjustment or substitution pursuant to Section 9.1, the term “Shares”
shall also include any shares of stock or other securities that are substituted for Shares or into which Shares are adjusted pursuant to Section 9.1. 

  

	 	(w)	“Stock” means the $0.01 par value common stock of the Company and such other securities of the Company as may be substituted for Stock pursuant to
Section 9.1. 

  

	 	(x)	“Subsidiary” means any corporation, limited liability company, partnership or other entity of which a majority of the outstanding voting stock or voting power
is beneficially owned directly or indirectly by the Company. 

  

	 	(y)	“1933 Act” means the Securities Act of 1933, as amended from time to time. 

 

	 	(z)	“1934 Act” means the Securities Exchange Act of 1934, as amended from time to time. 

ARTICLE 3 

EFFECTIVE TERM OF PLAN 

3.1. EFFECTIVE DATE. The Plan shall be effective as of the date it is approved by both the Board and the stockholders of the Company (the
“Effective Date”). 
 3.2. TERMINATION OF PLAN. The Plan shall terminate on the tenth anniversary of the Effective Date unless
earlier terminated as provided herein. The termination of the Plan on such date shall not affect the validity of any Award outstanding on the date of termination, which shall continue to be governed by the applicable terms and conditions of this
Plan. 
 ARTICLE 4 

ADMINISTRATION 
 4.1.
COMMITTEE. The Plan shall be administered by the Conflicts Committee (as defined in the Company’s Charter) or a subcommittee thereof. Either of which is referred to herein as the “Committee.” 

4.2. ACTION AND INTERPRETATIONS BY THE COMMITTEE. For purposes of administering the Plan, the Committee may from time to time adopt rules,
regulations, guidelines and procedures for carrying out the provisions and purposes of the Plan and make such other determinations, not inconsistent with the Plan, as the Committee may deem appropriate. The Committee’s interpretation of the
Plan, any Awards granted under the Plan, any Award Certificate and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties. Each member of the Committee is entitled to, in good
faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Affiliate, the Company’s or an Affiliate’s independent certified public accountants, Company counsel or
any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan. 
 4.3.
AUTHORITY OF COMMITTEE. Except as provided in Section 4.1 and 4.2 hereof, the Committee has the exclusive power, authority and discretion to: 
  

	 	(a)	Grant Awards; 

  

	 	(b)	Designate Participants; 

  

	 	(c)	Determine the type or types of Awards to be granted to each Participant; 

  

 4 

	 	(d)	Determine the number of Awards to be granted and the number of Shares or dollar amount to which an Award will relate; 

 

	 	(e)	Determine the terms and conditions of any Award granted under the Plan; 

  

	 	(f)	Prescribe the form of each Award Certificate, which need not be identical for each Participant; 

 

	 	(g)	Decide all other matters that must be determined in connection with an Award; 

 

	 	(h)	Establish, adopt or revise any rules, regulations, guidelines or procedures as it may deem necessary or advisable to administer the Plan; 

 

	 	(i)	Make all other decisions and determinations that may be required under the Plan or as the Committee deems necessary or advisable to administer the Plan;

  

	 	(j)	Amend the Plan or any Award Certificate as provided herein; and 

  

	 	(k)	Adopt such modifications, procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of non-U.S. jurisdictions in which the Company
or any Affiliate may operate, in order to assure the viability of the benefits of Awards granted to Participants located in such other jurisdictions and to meet the objectives of the Plan. 

4.4. AWARD CERTIFICATES. Each Award shall be evidenced by an Award Certificate. Each Award Certificate shall include such provisions, not
inconsistent with the Plan, as may be specified by the Committee. 
 ARTICLE 5 

SHARES SUBJECT TO THE PLAN 

5.1. NUMBER OF SHARES. Subject to adjustment as provided in Sections 5.2 and Section 9.1, the aggregate number of Shares reserved and
available for issuance pursuant to Awards granted under the Plan shall be 200,000. 
 5.2. SHARE COUNTING. Shares covered by an Award
shall be subtracted from the Plan share reserve as of the date of grant, but shall be added back to the Plan share reserve in accordance with this Section 5.2. 
  

	 	(a)	To the extent that an Award is canceled, terminates, expires, is forfeited or lapses for any reason, any unissued or forfeited Shares subject to the Award will again be
available for issuance pursuant to Awards granted under the Plan. 

  

	 	(b)	Shares withheld from an Award or delivered by a Participant to satisfy minimum tax withholding requirements will again be available for issuance pursuant to Awards
granted under the Plan. 

  

	 	(c)	To the extent that the full number of Shares subject to an Award is not issued for any reason, including by reason of failure to achieve maximum performance goals, only
the number of Shares issued and delivered shall be considered for purposes of determining the number of Shares remaining available for issuance pursuant to Awards granted under the Plan. 

 

	 	(d)	Substitute Awards granted pursuant to Section 8.10 of the Plan shall not count against the Shares otherwise available for issuance under the Plan under
Section 5.1. 

 5.3. STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in whole or in part,
of authorized and unissued Stock, treasury Stock or Stock purchased on the open market. 
  

 5 

 ARTICLE 6 

ELIGIBILITY 
 6.1.
GENERAL. Awards may be granted only to Eligible Participants. 
 ARTICLE 7 

RESTRICTED STOCK 
 7.1.
GRANT OF RESTRICTED STOCK. The Committee is authorized to make Awards of Restricted Stock to Participants in such amounts and subject to such terms and conditions as may be selected by the Committee. An Award of Restricted Stock shall be
evidenced by an Award Certificate setting forth the terms, conditions, and restrictions applicable to the Award. 
 7.2. ISSUANCE AND
RESTRICTIONS. Restricted Stock shall be subject to such restrictions on transferability and other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock or the right to receive
dividends or distributions on the Restricted Stock). These restrictions may lapse separately or in combination at such times, under such circumstances, in such installments, upon the satisfaction of performance goals or otherwise, as the Committee
determines at the time of the grant of the Award or thereafter. Except as otherwise provided in an Award Certificate or any special Plan document governing an Award, the Participant shall have all of the rights of a stockholder with respect to the
Restricted Stock. Unless otherwise provided in the applicable Award Certificate, Awards of Restricted Stock will be entitled to full dividend and distribution rights and any dividends or distributions paid thereon will be paid or distributed to the
holder no later than the end of the calendar year in which the dividends or distributions are paid to stockholders or, if later, the 15th day of the third month following the date the dividends or distributions are paid to stockholders. 

7.3. FORFEITURE. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of
Continuous Status as a Participant during the applicable restriction period or upon failure to satisfy a performance goal during the applicable restriction period, Restricted Stock that is at that time subject to restrictions shall be forfeited.

 7.4. DELIVERY OF RESTRICTED STOCK. Shares of Restricted Stock shall be delivered to the Participant at the time of grant either by
book-entry registration or by delivering to the Participant, or a custodian or escrow agent (including, without limitation, the Company or one or more of its employees) designated by the Committee, a stock certificate or certificates registered in
the name of the Participant. If physical certificates representing shares of Restricted Stock are registered in the name of the Participant, such certificates must bear an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Restricted Stock. 
 ARTICLE 8 

PROVISIONS APPLICABLE TO AWARDS 

8.1. TERM OF AWARD. The term of each Award shall be for the period as determined by the Committee. 

8.2. FORM OF PAYMENT FOR AWARDS. Except as otherwise provided in this Plan, payment of Awards will be made in Stock. In addition, payment of
Awards may include such terms, conditions, restrictions and/or limitations, if any, as the Committee deems appropriate, including, in the case of Awards paid in the form of Stock, restrictions on transfer and forfeiture provisions. Further, payment
of Awards may be made in the form of a lump sum, or in installments, as determined by the Committee. 
 8.3. LIMITS ON TRANSFER. No right
or interest of a Participant in any unexercised or restricted Award may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company 

 

 6 

 
or an Affiliate, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company or an Affiliate. No unexercised or restricted Award shall
be assignable or transferable by a Participant other than by will or the laws of descent and distribution; provided, however, that the Committee may (but need not) permit other transfers (other than transfers for value) where the Committee concludes
that such transferability (a) does not result in accelerated taxation and (b) is otherwise appropriate and desirable, taking into account any factors deemed relevant, including without limitation, state or federal tax or securities laws
applicable to transferable Awards. 
 8.4. BENEFICIARIES. Notwithstanding Section 8.3, a Participant may, in the manner determined
by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person
claiming any rights under the Plan is subject to all terms and conditions of the Plan and any Award Certificate applicable to the Participant, except to the extent the Plan and Award Certificate otherwise provide, and to any additional restrictions
deemed necessary or appropriate by the Committee. If no beneficiary has been designated or survives the Participant, payment shall be made to the Participant’s estate. Subject to the foregoing, a beneficiary designation may be changed or
revoked by a Participant at any time provided the change or revocation is filed with the Committee. 
 8.5. STOCK TRADING RESTRICTIONS.
All Stock issuable under the Plan is subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with federal or state securities laws, rules and regulations and the rules of any national
securities exchange or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate or issue instructions to the transfer agent to reference restrictions applicable to the
Stock. 
 8.6. ACCELERATION UPON DEATH OR DISABILITY. Except as otherwise provided in the Award Certificate or any special Plan document
governing an Award, upon the termination of a person’s Continuous Status as a Participant by reason of death or Disability all time-based vesting restrictions on that Participant’s outstanding Awards shall lapse as of the date of
termination. 
 8.7. ACCELERATION UPON A CHANGE IN CONTROL. Except as otherwise provided in the Award Certificate or any special Plan
document governing an Award, upon the occurrence of a Change in Control, all time-based vesting restrictions on outstanding Awards shall lapse. 

8.8. ACCELERATION FOR ANY REASON. Regardless of whether an event has occurred as described in Section 8.6 or 8.7 above, the Committee may in
its sole discretion at any time determine that all or a part of the time-based vesting restrictions on all or a portion of the outstanding Awards shall lapse as of such date as the Committee may, in its sole discretion, declare. The Committee may
discriminate among Participants and among Awards granted to a Participant in exercising its discretion pursuant to this Section 8.8. Notwithstanding anything in the Plan, including this Section 8.8, the Committee may not accelerate the
payment of any Award if such acceleration would violate Section 409A(a)(3) of the Code. 
 8.9. FORFEITURE EVENTS. The Committee may
specify in an Award Certificate that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to
any otherwise applicable vesting or performance conditions of an Award. Such events shall include, but shall not be limited to violation of material Company or Affiliate policies, breach of noncompetition, confidentiality or other restrictive
covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business or reputation of the Company or any Affiliate. 

8.10. SUBSTITUTE AWARDS. The Committee may grant Awards under the Plan in substitution for stock and stock-based awards held by employees or
directors of another entity who become directors of the Company as a result of a merger or consolidation of the former entity with the Company or an Affiliate or the acquisition by the Company or an Affiliate of property or stock of the former
employing 
  

 7 

 
corporation. The Committee may direct that the substitute Awards be granted on such terms and conditions as the Committee considers appropriate in the circumstances. 

ARTICLE 9 

CHANGES IN CAPITAL STRUCTURE 

9.1. MANDATORY ADJUSTMENTS. In the event of a nonreciprocal transaction between the Company and its stockholders that causes the per-share value
of the Stock to change (including, without limitation, any stock dividend, stock split, spin-off, rights offering, or large nonrecurring cash dividend), the authorization limits under Section 5.1 shall be adjusted proportionately, and the
Committee shall make such adjustments to the Plan and Awards as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately resulting from such transaction. Action by the Committee may include:
(a) adjustment of the number and kind of shares that may be delivered under the Plan; (b) adjustment of the number and kind of shares subject to outstanding Awards; (c) adjustment of the measure to be used to determine the amount of
the benefit payable on an Award; and (d) any other adjustments that the Committee determines to be equitable. Without limiting the foregoing, in the event of a subdivision of the outstanding Stock (stock-split), a declaration of a dividend
payable in Shares, or a combination or consolidation of the outstanding Stock into a lesser number of Shares, the authorization limits under Section 5.1 shall automatically be adjusted proportionately, and the Shares then subject to each Award
shall automatically, without the necessity for any additional action by the Committee, be adjusted proportionately without any change in the aggregate purchase price therefor. 

9.2. DISCRETIONARY ADJUSTMENTS. Upon the occurrence or in anticipation of any corporate event or transaction involving the Company (including,
without limitation, any merger, reorganization, recapitalization, combination or exchange of shares, or any transaction described in Section 9.1), the Committee may, in its sole discretion, provide (a) that Awards will be settled in cash
rather than Stock, (b) that Awards will become immediately vested and will expire after a designated period of time, (c) that Awards will be assumed by another party to a transaction or otherwise be equitably converted or substituted in
connection with such transaction, (d) that outstanding Awards may be settled by payment in cash or cash equivalents equal to the excess of the Fair Market Value of the underlying Stock, as of a specified date associated with the transaction,
over the price of the Award, or (e) any combination of the foregoing. The Committee’s determination need not be uniform and may be different for different Participants whether or not such Participants are similarly situated. 

ARTICLE 10 

AMENDMENT, MODIFICATION AND TERMINATION 

10.1. AMENDMENT, MODIFICATION AND TERMINATION. The Board or the Committee may, at any time and from time to time, amend, modify or terminate the
Plan without stockholder approval; provided, however, that if an amendment to the Plan would, in the reasonable opinion of the Board or the Committee, either (a) materially increase the number of Shares available under the Plan, (b) expand
the types of awards under the Plan, (c) materially expand the class of participants eligible to participate in the Plan, (d) materially extend the term of the Plan, or (e) otherwise constitute a material change requiring stockholder
approval under applicable laws, policies or regulations or the applicable listing or other requirements of an Exchange, then such amendment shall be subject to stockholder approval; and provided, further, that the Board or Committee may condition
any other amendment or modification on the approval of stockholders of the Company for any reason, including by reason of such approval being necessary or deemed advisable (a) to comply with the listing or other requirements of an Exchange, or
(b) to satisfy any other tax, securities or other applicable laws, policies or regulations. 
  

 8 

 10.2. AWARDS PREVIOUSLY GRANTED. At any time and from time to time, the Committee may amend, modify
or terminate any outstanding Award without approval of the Participant; provided, however: 
  

	 	(a)	Subject to the terms of the applicable Award Certificate, such amendment, modification or termination shall not, without the Participant’s consent, reduce or
diminish the value of such Award determined as if the Award had been vested, cashed in or otherwise settled on the date of such amendment or termination; and 

 

	 	(b)	No termination, amendment, or modification of the Plan shall adversely affect any Award previously granted under the Plan, without the written consent of the
Participant affected thereby. An outstanding Award shall not be deemed to be “adversely affected” by a Plan amendment if such amendment would not reduce or diminish the value of such Award determined as if the Award had been vested, cashed
in or otherwise settled on the date of such amendment. 

 10.3. COMPLIANCE AMENDMENTS. Notwithstanding anything in the Plan
or in any Award Certificate to the contrary, the Board may amend the Plan or an Award Certificate, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or Award Certificate to any present
or future law relating to plans of this or similar nature (including, but not limited to, Section 409A of the Code), and to the administrative regulations and rulings promulgated thereunder. By accepting an Award under this Plan, a Participant
agrees to any amendment made pursuant to this Section 10.3 to any Award granted under the Plan without further consideration or action. 

ARTICLE 11 

GENERAL PROVISIONS 
 11.1.
RIGHTS OF PARTICIPANTS. 
  

	 	(a)	No Participant or any Eligible Participant shall have any claim to be granted any Award under the Plan. Neither the Company, its Affiliates nor the Committee is
obligated to treat Participants or Eligible Participants uniformly, and determinations made under the Plan may be made by the Committee selectively among Eligible Participants who receive, or are eligible to receive, Awards (whether or not such
Eligible Participants are similarly situated). 

  

	 	(b)	Nothing in the Plan, any Award Certificate or any other document or statement made with respect to the Plan, shall interfere with or limit in any way the right of the
Company to terminate any Participant’s service as a director, at any time, nor confer upon any Participant any right to continue as a director of the Company, whether for the duration of a Participant’s Award or otherwise.

  

	 	(c)	Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company or any Affiliate and, accordingly, subject to Article
10, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company or any of its Affiliates. 

 

	 	(d)	No Award gives a Participant any of the rights of a stockholder of the Company unless and until Shares are in fact issued to such person in connection with such Award.

 11.2. WITHHOLDING. The Company shall have the authority and the right to deduct or withhold, or require a Participant to
remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any lapse of restriction or other taxable event arising as a
result of the Plan. With respect to withholding required upon any taxable event under the Plan, the Committee may, at the time the Award is granted or thereafter, 

 

 9 

 
require or permit that any such withholding requirement be satisfied, in whole or in part, by withholding from the Award Shares having a Fair Market Value on the date of withholding equal to the
minimum amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes. All such elections shall be subject to any restrictions or limitations that the Committee, in
its sole discretion, deems appropriate. 
 11.3. SPECIAL PROVISIONS RELATED TO SECTION 409A OF THE CODE. 

 

	 	(a)	General. It is intended that the payments and benefits provided under the Plan and any Award shall either be exempt from the application of, or comply with, the
requirements of Section 409A of the Code. The Plan and all Award Certificates shall be construed in a manner that effects such intent. Nevertheless, the tax treatment of the benefits provided under the Plan or any Award is not warranted or
guaranteed. Neither the Company, its Affiliates nor their respective directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result
of the Plan or any Award. 

  

	 	(b)	Definitional Restrictions. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, to the extent that any amount or benefit that would
constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable, or a different form of payment (e.g., lump sum or installment) would be effected, under the Plan or
any Award Certificate by reason of the occurrence of a Change in Control, or the Participant’s Disability or separation from service, such amount or benefit will not be payable or distributable to the Participant, and/or such different form of
payment will not be effected, by reason of such circumstance unless the circumstances giving rise to such Change in Control, Disability or separation from service meet any description or definition of “change in control event”,
“disability” or “separation from service”, as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition). This
provision does not prohibit the vesting of any Award upon a Change in Control, Disability or separation from service, however defined. If this provision prevents the payment or distribution of any amount or benefit, such payment or
distribution shall be made on the next earliest payment or distribution date or event specified in the Award Certificate that is permissible under Section 409A. If this provision prevents the application of a different form of payment of any
amount or benefit, such payment shall be made in the same form as would have applied absent such designated event or circumstance. 

  

	 	(c)	Allocation among Possible Exemptions. If any one or more Awards granted under the Plan to a Participant could qualify for any separation pay exemption described
in Treas. Reg. Section 1.409A-1(b)(9), but such Awards in the aggregate exceed the dollar limit permitted for the separation pay exemptions, the Company (acting through the Committee or the Head of Human Resources) shall determine which Awards
or portions thereof will be subject to such exemptions. 

  

	 	(d)	Six-Month Delay in Certain Circumstances. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, if any amount or benefit that would
constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable under this Plan or any Award Certificate by reason of a Participant’s separation from service
during a period in which the Participant is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Committee under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii)
(conflicts of interest), or (j)(4)(vi) (payment of employment taxes): 

  

	 	(i)	 the amount of such non-exempt deferred compensation that would otherwise be payable during the six-month period immediately following the
Participant’s separation from 

  

 10 

	 	 
service will be accumulated through and paid or provided on the first day of the seventh month following the Participant’s separation from service (or, if the Participant dies during such
period, within 30 days after the Participant’s death) (in either case, the “Required Delay Period”); and 

  

	 	(ii)	the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period. 

For purposes of this Plan, the term “Specified Employee” has the meaning given such term in Code Section 409A and the final regulations
thereunder, provided, however, that, as permitted in such final regulations, the Company’s Specified Employees and its application of the six-month delay rule of Code Section 409A(a)(2)(B)(i) shall be determined in accordance with
rules adopted by the Board or any committee of the Board, which shall be applied consistently with respect to all nonqualified deferred compensation arrangements of the Company, including, if applicable, this Plan. 

11.4. UNFUNDED STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for incentive and deferred compensation. With respect to
any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Certificate shall give the Participant any rights that are greater than those of a general creditor of the Company or any Affiliate. This
Plan is not intended to be subject to the Employment Retirement Income Security Act of 1974, as amended. 
 11.5. RELATIONSHIP TO OTHER
BENEFITS. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or benefit plan of the Company or any Affiliate unless provided
otherwise in such other plan. 
 11.6. EXPENSES. The expenses of administering the Plan shall be borne by the Company and its Affiliates.

 11.7. TITLES AND HEADINGS. The titles and headings of the Sections in the Plan are for convenience of reference only, and in the event
of any conflict, the text of the Plan, rather than such titles or headings, shall control. 
 11.8. GENDER AND NUMBER. Except where
otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 

11.9. FRACTIONAL SHARES. No fractional Shares shall be issued and the Committee shall determine, in its discretion, whether cash shall be given in
lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down. 
 11.10. GOVERNMENT AND OTHER
REGULATIONS. 
  

	 	(a)	Notwithstanding any other provision of the Plan, no Participant who acquires Shares pursuant to the Plan may, during any period of time that such Participant is an
affiliate of the Company (within the meaning of the rules and regulations of the Securities and Exchange Commission under the 1933 Act), sell such Shares, unless such offer and sale is made (i) pursuant to an effective registration statement
under the 1933 Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption from the registration requirement of the 1933 Act, such as that set forth in Rule 144 promulgated under the 1933 Act.

  

	 	(b)	 Notwithstanding any other provision of the Plan, if at any time the Committee shall determine that the registration, listing or qualification of the
Shares covered by an Award upon any Exchange or under any foreign, federal, state or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the
granting of such Award or the purchase or receipt of Shares thereunder, no Shares may be purchased, delivered or received pursuant to such Award unless and until such 

 

 11 

	 	 
registration, listing, qualification, consent or approval shall have been effected or obtained free of any condition not acceptable to the Committee. 

Any Participant receiving or purchasing Shares pursuant to an Award shall make such representations and agreements and furnish such information as the
Committee may request to assure compliance with the foregoing or any other applicable legal requirements. The Company shall not be required to issue or deliver any certificate or certificates for Shares under the Plan prior to the Committee’s
determination that all related requirements have been fulfilled. The Company shall in no event be obligated to register any securities pursuant to the 1933 Act or applicable state or foreign law or to take any other action in order to cause the
issuance and delivery of such certificates to comply with any such law, regulation or requirement. 
 11.11. GOVERNING LAW. To the extent
not governed by federal law, the Plan and all Award Certificates shall be construed in accordance with and governed by the laws of the State of Maryland. 

11.12. ADDITIONAL PROVISIONS. Each Award Certificate may contain such other terms and conditions as the Committee may determine; provided that
such other terms and conditions are not inconsistent with the provisions of the Plan. 
 11.13. NO LIMITATIONS ON RIGHTS OF COMPANY. The
grant of any Award shall not in any way affect the right or power of the Company to make adjustments, reclassification or changes in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of
its business or assets. The Plan shall not restrict the authority of the Company, for proper corporate purposes, to draft or assume awards, other than under the Plan, to or with respect to any person. If the Committee so directs, the Company may
issue or transfer Shares to an Affiliate, for such lawful consideration as the Committee may specify, upon the condition or understanding that the Affiliate will transfer such Shares to a Participant in accordance with the terms of an Award granted
to such Participant and specified by the Committee pursuant to the provisions of the Plan. 
 11.14. INDEMNIFICATION. Each person who is
or shall have been a member of the Committee, or of the Board shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection
with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him
or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own
expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf, unless such loss, cost, liability, or expense is a result of his or her own willful misconduct or except as expressly provided by
statute. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Articles of Amendment and Restatement, as amended, or bylaws, as a matter of
law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
  

 12 

  The foregoing is hereby acknowledged as being the Phillips Edison — ARC Shopping Center REIT Inc.
2010 Independent Director Stock Plan as adopted by the Board on June 2, 2010 and by the stockholders on June 7, 2010. 
   
  
			
	 PHILLIPS EDISON — ARC SHOPPING CENTER

REIT INC.

		
	By:	 	 /s/ John Bessey

	Its:	 	President

   

 13First Amended and Restated Sub-Advisory Agreement

 Exhibit 10.4 

First Amended and Restated 

Sub-advisory Agreement 

between 

American Realty Capital II Advisors, LLC 

and 
 Phillips
Edison NTR LLC 
 July 1, 2010 

 Table of Contents 

 

			
	 	  	Page
	 Article 1 – Definitions
	  	1
	 Article 2 – Appointment
	  	3
	 Article 3 – Duties of the Sub-advisor
	  	3
	 Article 4 – Authority and Certain Activities of Sub-advisor
	  	3
	 Article 5 – Assignment of Payments
	  	4
	 5.1 Acquisition Fees
	  	4
	 5.2 Asset Management Fee
	  	4
	 5.3 Disposition Fees
	  	4
	 5.4 Financing Fee
	  	4
	 5.5 Subordinated Share of Cash Flows
	  	5
	 5.6 Subordinated Incentive Fee
	  	5
	 5.7 Subordinated Performance Fee Due Upon Termination
	  	5
	 5.8 Expense Reimbursements
	  	5
	 Article 6 – Allocation of Expense Reimbursements
	  	5
	 6.1 Organization and Offering Expense Reimbursements
	  	5
	 6.2 All Other Expense Reimbursements
	  	6
	 Article 7 – Voting Agreements
	  	6
	 7.1 Election of Directors
	  	6
	 7.2 Other Voting of Shares
	  	7
	 7.3 Major Decisions
	  	7
	 Article 8 – Relationship Of Advisor And Company; Other Activities Of The Advisor
	  	8
	 8.1 Relationship
	  	8
	 8.2 Time Commitment
	  	9
	 8.3 Advisor and Sub-advisor Meetings
	  	9
	 8.4 Investment Opportunities and Allocation
	  	9
	 8.5 Prospectus Guidance
	  	11
	 Article 9 – Dealer Manager
	  	11
	 Article 10 – The Phillips Edison and ARC Names
	  	11
	 Article 11 – Other Agreements
	  	11
	 11.1 Approval and Funding of Company Organization and Offering Costs
	  	11
	 11.2 Property Level Agreements
	  	13
	 11.3 Advisor, Advisory Agreement and Dealings with Company
	  	13
	 Article 12 – Certain Transfers
	  	13
	 12.1 Transfers
	  	13
	 12.2 Prohibited Transfers
	  	14
	 Article 13 – Representations, Warranties, and Agreements
	  	14
	 Article 14 – Term And Termination of the Agreement
	  	17
	 14.1 Term
	  	17
	 14.2 Termination
	  	18
	 14.3 Survival upon Termination
	  	18
	 14.4 Payments on Termination and Survival of Certain Rights and Obligations
	  	19

  

 i 

			
	 Article 15 – Assignment
	  	19
	 Article 16 – Indemnification And Limitation Of Liability
	  	19
	 Article 17 – Miscellaneous
	  	19
	 17.1 Notices
	  	19
	 17.2 Modification
	  	20
	 17.3 Severability
	  	20
	 17.4 Construction
	  	20
	 17.5 Entire Agreement
	  	21
	 17.6 Waiver
	  	21
	 17.7 Gender
	  	21
	 17.8 Titles Not to Affect Interpretation
	  	21
	 17.9 Counterparts
	  	21

  

 ii 

 First Amended and Restated Sub-advisory Agreement 

This First Amended and Restated Sub-advisory Agreement, dated as of July 1, 2010 (this
“Agreement”), is between, American Realty Capital II Advisors, LLC, a Delaware limited liability company (the “Advisor”) and Phillips Edison NTR LLC (formerly known as Phillips
Edison & Company SubAdvisor LLC), a Delaware limited liability company (the “Sub-advisor”). 

W I T N E S S E T H 

WHEREAS, the parties entered into the Sub-advisory Agreement on January 11, 2010 (the “Original Agreement”);

 WHEREAS, the parties have agreed to make certain amendments and desire to amend and restate the Original Agreement;

 WHEREAS, Phillips Edison – ARC Shopping Center REIT Inc., a Maryland corporation (the “Company”) has
appointed Advisor as its advisor pursuant to the Third Amended and Restated Advisory Agreement between the Company and the Advisor, dated as of even date herewith (as the same may be amended, restated or otherwise modified from time to time in
accordance with its terms, the “Advisory Agreement”); 
 WHEREAS, the Advisor desires to avail itself of the
knowledge, experience, sources of information, advice, assistance and certain facilities available to the Sub-advisor and to have the Sub-advisor undertake the duties and responsibilities hereinafter set forth, on behalf of the Advisor, and subject
to the supervision of, the Board of Directors of the Company, all as provided herein; and 
 WHEREAS, the Sub-advisor is willing
to undertake such duties and responsibilities, subject to the supervision of the Board of Directors of the Company, on the terms and subject to the conditions hereinafter set forth. 

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the Parties hereto agree
that the Original Agreement hereby is amended and restated to read in its entirety as follows: 
 Article 1 

Definitions 

Capitalized and other terms that are defined in the Advisory Agreement but not otherwise defined in this Agreement have the respective
meanings ascribed to such terms in the Advisory Agreement, a copy of which is attached hereto as Appendix A. 
 The
following defined terms used in this Agreement shall have the meanings specified below: 
  

 1 

 “Advisor” has the meaning set forth at the head of this Agreement.

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

“Affiliate” has the meaning set forth in the Advisory Agreement. For the avoidance of doubt, none of the Company, the
Sub-advisor, any subsidiary of the Company, any subsidiary of the Sub-advisor and any other Person controlled by, controlling or under common control with Phillips Edison Limited Partnership shall be an Affiliate of the Advisor. 

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

“Company” has the meaning set forth in the recitals hereto. 

“Dealer Manager” means Realty Capital Services, LLC, a Delaware limited liability company, in its capacity as dealer
manager pursuant to the Dealer Manager Agreement. 
 “Dealer Manager Agreement” means that dealer manager
agreement, dated as of even date herewith, between the Company and the Dealer Manager, providing for the distribution of the Shares. 

“Effective Date” means the initial Effective Date (as defined in the Dealer Manager Agreement). 

“Fund IV” means Phillips Edison Shopping Center Fund IV, L.P. 

“Immediate Family Member” means, with respect to a Key Person: (i) any of such Key Person’s parents and
siblings, spouse and descendants and any of the spouses of such descendants (collectively, the “Individual Group”); (ii) any trust, the beneficiaries of which consist exclusively of one or more members of the Individual Group
(collectively, the “Family Trusts”); and (iii) any entity which is controlled by, directly or indirectly, one or more members of the Individual Group and/or one or more of the Family Trusts. 

“Key Person” means (i) with respect to the Advisor, each of William Kahane and Nicholas Schorsch and his heirs,
legal representatives and executors, and (ii) with respect to the Sub-advisor, each of Michael C. Phillips and Jeffrey S. Edison and his heirs, legal representatives and executors. 

“Offering Period” has the meaning set forth in the Dealer Manager Agreement. 

“Party” or “Parties” refer to the Advisor or the Sub-advisor or both, as the case may be. 

“Prospectus” has the meaning set forth in the Dealer Manager Agreement. 

 

 2 

 “Reference Date” means the first date the Company breaks escrow on
stockholder subscriptions in the Initial Public Offering. 
 “Sub-advisor” has the meaning set forth at the
head of this Agreement. 
 “Transfer Restriction Period” means, with respect to the Sub-advisor, the Offering
Period plus 12 months, and with respect to the Advisor, the Offering Period plus six months. 
 Article 2 

Appointment 

The Advisor, pursuant to its authority to delegate all of its rights and powers to manage and control the business and affairs of the
Company to the Sub-advisor pursuant to Section 4.1 of the Advisory Agreement, hereby appoints the Sub-advisor to serve as the Sub-advisor for the Company. The Sub-advisor hereby accepts such appointment. The Advisor delegates, and the
Sub-advisor agrees to perform, all the duties of the Advisor set forth in the Advisory Agreement, all on the terms and subject to the conditions set forth in this Agreement. 

Article 3 

Duties of the Sub-advisor 

Under the Advisory Agreement, the Advisor is responsible for managing, operating, directing and supervising the operations and
administration of the Company and its assets. Consistent with Article 2 hereof, the Sub-advisor undertakes to use commercially reasonable efforts to present to the Company potential investment opportunities and to provide the Company with 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. Subject to the limitations set forth in this Agreement and the Advisory
Agreement, including Article 4 of the Advisory Agreement, consistent with the provisions of the Articles of Incorporation and Bylaws and the continuing and exclusive authority of the Board over the supervision of the Company, the Sub-advisor shall,
either directly or by engaging an Affiliate or third party, perform the duties set forth in Article 3 of the Advisory Agreement (a copy of which is attached hereto as Appendix A), which duties are incorporated herein by reference as if fully
set forth herein. 
 Article 4 

Authority and Certain Activities of Sub-advisor 

The Sub-advisor shall have the authority set forth in Article 4 of the Advisory Agreement, shall have the authority to establish and
maintain bank accounts as set forth 
  

 3 

 
in Article 5 of the Advisory Agreement, shall maintain books and records for the Company as set forth in Article 6 of the Advisory Agreement, and shall abide by the limitations of Article 7 of
the Advisory Agreement, all of which (i.e., Articles 4 through 7 of the Advisory Agreement) are incorporated herein by reference as if fully set forth herein. 

Article 5 

Assignment of Payments 

As compensation for the services provided pursuant to this Agreement, Advisor hereby assigns payments as follows: 

 

	5.1	Acquisition Fees. The Advisor hereby assigns its right to receive direct payment from the Company of 85% of all Acquisition Fees payable pursuant to
Section 8.1 of the Advisory Agreement. The Advisor will submit an invoice to the Company, which the Sub-advisor shall prepare, following the closing or closings of each acquisition or origination, accompanied by a computation of the Acquisition
Fee. The portion of the Acquisition Fee payable to each of the Advisor and Sub-advisor then will be paid by the Company at the closing of the applicable transaction upon receipt of the invoice by the Company as provided in the Advisory Agreement.

  

	5.2	Asset Management Fee. The Advisor hereby assigns its right to receive direct payment from the Company of 85% of all Asset Management Fees payable pursuant to the
Advisory Agreement. The Advisor will submit a quarterly invoice to the Company, which the Sub-advisor shall prepare and which shall include a computation of the Asset Management Fee for the applicable period. The Asset Management Fee shall be
payable by the Company as provided in the Advisory Agreement. 

  

	5.3	Disposition Fees. The Advisor hereby assigns its right to receive direct payment from the Company of 85% of all Disposition Fees payable pursuant to the Advisory
Agreement; provided, however, that if the receipt by the Advisor of all or any part of a Disposition Fee for any particular transaction would violate applicable law, and if applicable law would permit payment thereof to the
Sub-advisor, then the assignment shall be deemed to be for the Disposition Fee (or part thereof) associated with that particular transaction that would violate applicable law if received by the Advisor. The portion of the Disposition Fee payable to
each of the Advisor and the Sub-advisor shall be paid by the Company as provided in the Advisory Agreement. 

  

	5.4	 Financing Fee. The Advisor hereby assigns its right to receive direct payment from the Company of 85% of all Financing Fees payable to the
Advisor pursuant to the Advisory Agreement; provided, however, that if the receipt by the Advisor of a Financing Fee for any particular transaction would violate applicable law, and if applicable law would permit payment thereof to the
Sub-advisor, then the 

  

 4 

	 	 
assignment shall be deemed to be for the Financing Fee (or part thereof) associated with that particular transaction that would violate applicable law if received by the Advisor.

  

	5.5	Subordinated Share of Cash Flows. The Advisor hereby assigns its right to receive direct payment from the Company of 85% of all Subordinated Share of Cash Flows
payable pursuant to the Advisory Agreement. 

  

	5.6	Subordinated Incentive Fee. The Advisor hereby assigns its right to receive direct payment from the Company of 85% of all Subordinated Incentive Fees payable
pursuant to the Advisory Agreement, in whatever form payable by the Company (i.e., cash, Shares or a promissory note). 

  

	5.7	Subordinated Performance Fee Due Upon Termination. The Advisor hereby assigns its right to receive direct payment from the Company of 85% of the Subordinated
Performance Fee Due Upon Termination payable pursuant to the Advisory Agreement, in whatever form payable by the Company (i.e., cash, Shares or a promissory note). 

 

	5.8	Expense Reimbursements. Subject to Article 6 of this Agreement and Article 9 of the Advisory Agreement, the Advisor hereby assigns its right to receive
direct payment from the Company of expense reimbursements the Sub-advisor incurs on behalf of the Company or in connection with the services the Sub-advisor provides to the Company pursuant to this Agreement. 

Article 6 

Allocation of Expense Reimbursements 
  

	6.1	Organization and Offering Expense Reimbursements. All Organization and Offering Expense reimbursements will be apportioned between the Advisor and Sub-advisor
pro rata based on the amount of such Organization and Offering Expenses reimbursements due each as of the date of the reimbursement. 

  

	 	(A)	It is understood and agreed that the Company shall be under no obligation to reimburse the Advisor or Sub-advisor to the extent such reimbursement would cause the total
amount spent by the Company on Organization and Offering Expenses (excluding underwriting and brokerage discounts and commissions, but including third-party due diligence fees as set forth in detailed and itemized invoices) to exceed 1.5% of Gross
Proceeds raised in a Public Offering as of the termination of such Public Offering; and 

  

	 	(B)	 Within 60 days after the end of the month in which a Public Offering terminates, the Sub-advisor shall reimburse the Advisor, to the extent the Advisor
was not reimbursed or had an obligation to reimburse the Company (and did so reimburse the Company), for Organization and Offering Expenses (excluding underwriting and brokerage discounts and

  

 5 

	 	 
commissions, but including third-party due diligence fees as set forth in detailed and itemized invoices) exceeding 1.5% of Gross Proceeds raised in a Public Offering.

  

	 	(C)	The Company shall not reimburse the Advisor or Sub-advisor for any Organization and Offering Expenses that the Conflicts Committee determines are not fair and
commercially reasonable to the Company. 

  

	 	(D)	The Company shall not make any reimbursement for any of the following Organization and Offering Expenses incurred by the Dealer Manager that are to be paid out of the
Dealer Manager’s fee: 

  

	 	(1)	participating broker-dealer expense reimbursements (including meals with financial advisors and participating broker-dealer client seminars); 

 

	 	(2)	sales seminars sponsored by participating broker-dealers; 

  

	 	(3)	promotional items; 

  

	 	(4)	marketing support; 

  

	 	(5)	expenses in connection with bona fide training and educational meetings; 

  

	 	(6)	wholesaling commissions, wholesaling salaries and wholesaling expense reimbursements (including travel, meals and lodging in connection with the Offering);

  

	 	(7)	occasional meals and entertainment expenses of participating broker-dealers; and 

 

	 	(8)	legal fees and expenses of the Dealer Manager associated with FINRA-related filings or the drafting and review of any dealer manager agreements, participating
broker-dealer agreements and due diligence agreements. 

  

	6.2	All Other Expense Reimbursements. All other expense reimbursements will be apportioned between the Advisor and Sub-advisor pro rata based on the amount of
such expense reimbursements due each as of the date of the reimbursement. 

 Article 7 

Voting Agreements 
  

	7.1	 Election of Directors. The Advisor and Sub-advisor each agrees, with respect to any Shares now or hereinafter owned by it, to vote such Shares
in favor of the Advisor’s nominee for the Board and the Sub-advisor’s nominees for the Board. 

  

 6 

	 	 
As of the date hereof, the Advisor’s nominee for the Board is William M. Kahane, and the Sub-advisor’s nominees are Jeffrey S. Edison and Michael C. Phillips.

  

	7.2	Other Voting of Shares. The Advisor and Sub-advisor each agrees that, with respect to any Shares now or hereinafter owned by it, neither will vote or consent on
matters submitted to the stockholders of the Company regarding (i) the removal of the Advisor or any Affiliate of the Advisor; (ii) the removal of the Sub-advisor or any Affiliate of the Sub-advisor; (iii) any transaction between the
Company and the Advisor or any of its Affiliates; or (iv) any transaction between the Company and the Sub-advisor or any of its Affiliates. This voting restriction shall survive until such time that the Advisor is no longer serving as such.

  

	7.3	Major Decisions. 

  

	 	(A)	Subject to Sections 7.3(C) and 7.3(D) with respect to the Company, all major decisions of the Company set forth below in clauses (A)(1) through
(A)(6) (“Major Decisions”) shall be subject to the Company’s Articles of Incorporation and joint approval by the Advisor and Sub-advisor. For the avoidance of doubt, Major Decisions specifically exclude any decisions
regarding the day-to-day operations of the Company, the decision-making authority for which has been delegated to the Sub-advisor pursuant to this Agreement. Major Decisions shall consist of the following: 

 

	 	(1)	Decisions to recommend to the Board of Directors that the Company acquire or sell Properties, Loans and other Permitted Investments; 

 

	 	(2)	Retention of investment banks for the Company; 

  

	 	(3)	Marketing methods for the Company’s sale of Shares; 

  

	 	(4)	Extending, initiating or terminating the Initial Public Offering or any subsequent Offering of the Shares; 

 

	 	(5)	Issuing press releases involving the major decisions of the Company or the Advisor or Sub-advisor or their Affiliates with respect to the business or operations of the
Company; provided, that the Sub-advisor need not obtain consent to any press releases regarding acquisitions or dispositions of Properties, Loans or other Permitted Investments; and provided further, however, that
notwithstanding the immediately preceding proviso, any mention of the Advisor or its Affiliates in such press releases regarding acquisitions or dispositions shall be pre-approved by the Advisor; and 

 

	 	(6)	Merging or otherwise engaging in any change of control transaction for the Company. 

 

 7 

	 	(B)	Notwithstanding anything in this Agreement to the contrary, if the Parties do not agree to any action constituting a Major Decision that is described in any of
clauses (A)(2) through (A)(6) above and that has been proposed by either Party, the Parties shall meet (in person or by phone) to discuss the issue in dispute in good faith over the five-business day period beginning with the delivery
of notice of the proposed action to the other Party. 

  

	 	(C)	Notwithstanding anything in this Agreement to the contrary, with respect to Major Decisions described in clause (A)(1) above (but subject to
Section 7.3(D)), (1) joint approval shall not be required, (2) the Sub-advisor and the Advisor shall discuss the proposed transaction (either in person or by phone) prior to either Party making any recommendation of the
proposed transaction to the Board of Directors, and (3) the Sub-Advisor and the Advisor shall each give due consideration to the opinions of the other Party. Ordinarily, such discussions shall begin at least five business days before a
recommendation is made to the Board of Directors; however, if in the sole discretion of the Sub-advisor it is in the best interest of the Company to make a recommendation to the Board of Directors more promptly, then the Sub-advisor may do so. In
the event the Parties do not agree as to whether to recommend the proposed transaction to the Board of Directors, the Sub-advisor’s decision shall govern. 

 

	 	(D)	Notwithstanding the provisions of this Section 7.3 or any other provision in this Agreement to the contrary, in all events, including Major Decisions, the
Company will be managed under the direction of the Board of Directors. 

  

	 	(E)	Notwithstanding anything in this Agreement to the contrary (but subject to Section 7.3(D)), the Sub-advisor shall have sole authority to act on behalf of
the Company regarding amending the Advisory Agreement. 

 Article 8 

Relationship of Sub-advisor and Advisor and their Affiliates; 

Other Activities of the Advisor and Sub-advisor 
  

	8.1	 Relationship. The Advisor and the Sub-advisor are not partners or joint venturers with each other, and nothing in this Agreement shall be
construed to make them such partners or joint venturers. Except as set forth in Section 8.4, nothing herein contained shall prevent the Advisor or Sub-advisor from engaging in or earning fees from other activities, including, without
limitation, the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor or Sub-advisor, respectively, or any of their Affiliates. Nor shall this Agreement limit
or restrict the right of any manager, director, officer, member, partner, employee or 

  

 8 

	 	 
equityholder of the Advisor or Sub-advisor or their Affiliates to engage in or earn fees from any other business or to render services of any kind to any other Person. The Sub-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 other similar co-investment arrangements, the Advisor or the Sub-advisor may be engaged to
provide advice and service to such Persons, in which case, the Advisor or the Sub-advisor, as applicable, will earn fees for rendering such advice and service. Each of the Advisor and the Sub-advisor shall promptly disclose to the Board the
existence of any condition or circumstance, existing or anticipated, of which it has knowledge, that creates or which would reasonably result in a conflict of interest between its obligations to the Company and its obligations to or its interest in
any other Persons (it being understood and agreed that the conditions and circumstances referred to in the second paragraph of Section 8.4(A) are deemed to have been disclosed to the Board for purposes of this Section 8.1).

  

	8.2	Time Commitment. The Sub-advisor shall, and shall cause its Affiliates and their respective employees, officers and agents to, devote to the Company such time as
shall be reasonably necessary to conduct the business and affairs of the Company in an appropriate manner consistent with the terms of this Agreement. Each Party acknowledges that the other Party and its Affiliates and their respective employees,
officers and agents may also engage in activities unrelated to the Company and may provide services to Persons other than the Company or any of its Affiliates. 

 

	8.3	Advisor and Sub-advisor Meetings. The Parties shall meet on a regular basis (frequency to be determined) to discuss and consult with one another regarding the
Company and its assets and opportunities. Advisor and Sub-advisor shall cause their respective principals to meet (in person or by phone) with representatives of each other upon the request of either Party. The Parties will provide each other
information regarding the operations and acquisitions of the Company as reasonably requested by the other. Each of Advisor and Sub-advisor shall have direct access to the books and records of the Company and of each attorney, accountant, servicer
and other contracting party of the Company (except to the extent such attorney represents either Party with respect to this Agreement). 

  

	8.4	Investment Opportunities and Allocation. 

  

	 	(A)	 The Sub-advisor shall be required to use commercially reasonable efforts to present a continuing and suitable investment program to the Company that is
consistent with the investment policies and objectives of the Company. So long as the Advisor is acting in its capacity as advisor under the Advisory Agreement, each of the Advisor and the Sub-advisor will not (and will cause its Affiliates to not)
(i) pursue any opportunity to acquire 

  

 9 

	 	 
any Property, Loan or other Permitted Investment that fits within the Company’s strategy, or (ii) offer such Property, Loan or other Permitted Investment to a third party, in each case
unless and until such opportunity is first presented to the Company. The Company shall have 30 days from the date of its receipt of a complete written offering package relating to such opportunity, customary in scope and content, to notify the
Advisor or the Sub-advisor, as the case may be, of the Company’s decision as to whether or not to pursue such opportunity. If the Company fails so to notify the Advisor or the Sub-advisor, as the case may be, within such 30-day period, the
Company shall be deemed to have passed on such opportunity. If the Company passes on such opportunity, then the Advisor, Sub-advisor or such Affiliate, as the case may be, may acquire the subject investment or offer the subject investment to a third
party for a period of 180 days, in each case on terms and conditions (including price) that are not materially different from the terms and conditions set forth in the offering package to the Company. If at the expiration of such 180-day period,
such opportunity remains available, then the provisions of this Section 8.4(A) shall once again apply to such opportunity. 

Notwithstanding the preceding, however, the Advisor or any Affiliate of the Advisor shall be permitted to pursue any opportunity or to
offer any opportunity to a third party in respect of (1) any net leased retail, office and industrial properties or other property consistent with the investment policies of American Reality Capital Trust, Inc., (2) any commercial real
estate or other real estate investments that relate to office, retail, multi-family residential, industrial and hotel property types, located primarily in the New York metropolitan area or other property consistent with the investment policies of
American Realty Capital New York Recovery REIT, Inc., or (3) any investments to be made by a contemplated non-traded REIT (the “Identified REIT”) that the Advisor or any of its Affiliates has described as (a) intending to
invest primarily in “power center” real estate developments, (b) being sponsored or co-sponsored by ARC (or one of its Affiliates), the acquisition services for which will be provided by an international commercial and residential
real estate developer and manager (or one of its Affiliates), and (c) being the subject of an executed letter of intent or term sheet between the Advisor (or one of its Affiliates) and such international commercial and residential real estate
developer and manager (or one of its Affiliates), and which has or will have as its publicly disclosed (and not subsequently revised or required to be revised under applicable securities laws) investment objectives to have less than 20% of its
assets (measured by purchase price) in anchored shopping centers with purchase prices of less than $20,000,000 per property (determined once the proceeds of the offering have been fully invested). 

 

	 	(B)	 If Fund IV, Phillips Edison Shopping Center Fund III, L.P., Phillips Edison Strategic Investment Fund or Phillips Edison Limited Partnership

  

 10 

	 	 
presents an investment opportunity to the Company and discloses in writing that such entity is attempting to seek properties to qualify for tax deferred treatment under Section 1031 of the
Code, then if the Company does not respond within 21 days, the Company shall be deemed to have passed on such investment opportunity. For clarification, developing single tenant retail or commercial properties shall not be considered to fit within
the Company’s strategy. 

  

	 	(C)	Notwithstanding the preceding, the restrictions in clauses (A) and (B) will cease to be effective upon termination of the Offering Period or, if
later, the time when all equity raised during the Offering Period has been substantially invested or committed to investment. 

  

	 	(D)	Except as provided in this Section 8.4, none of the Advisor and the Sub-advisor nor any of their respective Affiliates shall be obligated generally to
present any particular investment opportunity to the Company. 

  

	8.5	Prospectus Guidance. Sub-advisor has read and will abide by the Prospectus with respect to the Company’s investment objectives, targeted assets and
investment restrictions, targeted markets, leverage, distribution policy, and investor profile except to the extent directed by the Board. 

Article 9 

Dealer Manager 

The Parties agree to use their best efforts to cause the Company, subject to approval by the Company’s Board of Directors, to enter
into the Dealer Manager Agreement with the Dealer Manager on terms consistent with the “Plan of Distribution” section of the Prospectus. 

Article 10 

The Phillips Edison and ARC Names 

The Parties acknowledge and reaffirm the rights and obligations set forth with respect to their proprietary interests in their respective
names as set forth in Article 12 of the Advisory Agreement. 
 Article 11 

Other Agreements 
  

	11.1	Approval and Funding of Certain Organization and Offering Costs. 

  

	 	(A)	 On or prior to the date hereof, the Advisor has prepared an initial Organization and Offering Expense budget for the Advisor and its Affiliates
(including Realty Capital Services, LLC in its capacity as Dealer 

  

 11 

	 	 
Manager) for the period ending on the Effective Date, a copy of which is attached as Schedule I hereto (the “Initial O&O Budget”) and the Sub-advisor has reviewed and
approved the Initial O&O Budget. On or before the Effective Date, the Advisor or its Affiliates will prepare and present to the Sub-advisor for its review and approval the proposed Organization and Offering Expense budget for the one-year period
following the Effective Date for the Advisor and its Affiliates (including Realty Capital Services, LLC in its capacity as Dealer Manager). Thereafter, on or before the 30th day preceding the annual anniversary of the Effective Date, the Advisor or
its Affiliates will prepare and present to the Sub-advisor for its review and approval the proposed Organization and Offering Expense budget for the following one-year period for the Advisor and its Affiliates (including Realty Capital Services, LLC
in its capacity as Dealer Manager). Each of (1) the Initial O&O Budget, and (2) each such other Organization and Offering Expense budget for the time period specified therein once approved by the Sub-advisor, shall be referred to
herein as an “Approved O&O Budget”. It is understood and agreed that neither the Initial O&O Budget nor any other Approved O&O Budget shall cover or refer to selling commissions or the Dealer Manager Fee payable
pursuant to the Dealer Manager Agreement. 

  

	 	(B)	Each Approved O&O Budget may contain contingencies for expenditure items anticipated in good faith by the Advisor and its Affiliates, but the precise amounts of
which are unknown at the time of preparation and submission thereof to the Sub-advisor for approval. Within 30 days after each proposed Organization and Offering Expense budget is submitted to it, the Sub-advisor shall notify the Advisor in writing
(1) that it approves the proposed budget or (2) of the revisions it reasonably believes should be made to such proposed budget. If the Sub-advisor fails to respond within such 30-day period, the Sub-advisor shall be deemed to have approved
the proposed budget and such proposed budget shall become the Approved O&O Budget for the time periods specified therein. If the Sub-advisor withholds its approval of any proposed budget, then the Parties shall negotiate a mutually acceptable
Organization and Offering Expense budget for the Advisor and its Affiliates (including Realty Capital Services, LLC in its capacity as Dealer Manager). For the avoidance of doubt, this Section 11.1(B) shall not apply to the Initial
O&O Budget. 

  

	 	(C)	 Notwithstanding anything to the contrary contained herein or in any other agreement, the Advisor shall ensure that it and its Affiliates shall not make
any expenditure of Company funds or of funds for which reimbursement is sought from the Company or Sub-advisor, or commit to make any such expenditure, except as provided for in an Approved O&O Budget; provided, however, with
respect to any line item in an Approved O&O Budget, the Advisor and its Affiliates may incur up to 115% of the amount budgeted therefor; provided further, however, with respect to any line item in an Approved O&O Budget,
the Advisor and its Affiliates may incur in 

  

 12 

	 	 
excess of 115% of the amount budgeted therefor with the approval of the Sub-advisor. 

  

	 	(D)	The Advisor and Sub-advisor have caused their Affiliates to fund $75,000 and $425,000, respectively, into their respective bank accounts, and Advisor and Sub-advisor
will bear the initial $500,000 of Organization and Offering Expenses (excluding underwriting and brokerage discounts and commissions) in the ratio of 15% to 85%, respectively. After such initial $500,000 of Organization and Offering Expenses have
been borne as aforesaid, Sub-advisor will fund 100% of all Organization and Offering Expenses (excluding underwriting and brokerage discounts and commissions, but including third-party due diligence fees set forth in detailed and itemized invoices).

  

	11.2	Property Level Agreements. The Parties agree to use their best efforts to cause the Company, subject to approval by the Company’s Board of Directors, to
enter into a Master Property Management, Leasing, and Construction Management Agreement with an Affiliate of the Sub-advisor consistent with the description of the same in the Prospectus. Advisor shall have the right to review and comment upon such
master agreement, and to approve such master agreement (such approval not to be unreasonably withheld), prior to submission to the Board. Advisor agrees that it shall have no right in the fees generated pursuant to such master agreement.

  

	11.3	Advisor, Advisory Agreement and Dealings with Company. 

  

	 	(A)	Advisor agrees to inform and make Sub-advisor a party to all negotiations between Advisor and the Company regarding any proposed amendment of the Advisory Agreement. No
amendment to the Advisory Agreement will be agreed upon or permitted if such amendment would impact the rights or obligations of the Sub-advisor without the Sub-advisor’s consent and signature. 

 

	 	(B)	Advisor agrees to allow Sub-advisor to present and recommend to the Company all investment opportunities recommended by Sub-advisor. 

Article 12 

Certain Transfers 
  

	12.1	 Transfers. The Parties have selected one another based on the experience and personnel of each other and their Affiliates. Accordingly, each
Party agrees that it is mutually desirable to restrict changes in ownership of each Party. Each Party agrees to amend, to the extent necessary, its governing documents to restrict transferability of any direct or indirect interest in such Party by
such Party’s Key Persons unless both Parties jointly agree as otherwise permitted by this Article 12; provided, however, that any transfer of an interest in either Party by any of such

  

 13 

	 	 
Party’s Key Persons, by any entity controlled by a Key Person of such Party or by any Immediate Family Member of a Key Person of such Party shall be permitted without any approval so long as
(i) the transferee of such interest is an Immediate Family Member of a Key Person of such Party, and (ii) one or more of the Key Persons of such Party retain management and voting control over such interest held by such transferee at all
times after the applicable transfer occurs. 

  

	12.2	Prohibited Transfers.  

  

	 	(A)	Except for Permitted Transfers and other transfers made in accordance with, and as permitted by, this Agreement, neither Party (1) will allow any direct or
indirect transfer of interests therein by its applicable Key Persons, and (2) will directly or indirectly transfer any part of its direct or indirect ownership interest in the Company (if any), whether in each such case voluntarily or by
foreclosure, assignment in lieu thereof or other enforcement of a pledge, hypothecation or collateral assignment without the prior approval of the other Party. 

 

	 	(B)	“Permitted Transfer” (for which no approval by the other Party shall be required) means either of the following: 

 

	 	(1)	any transfer of all or any portion of the direct or indirect interest in the Company held by a Party (if any) to any Affiliate of such Party; provided,
however, that in each such case the transferee executes an instrument agreeing to be bound by the provisions of this Agreement to the extent applicable to the transferor; and 

 

	 	(2)	any transfer of all or any portion of the direct or indirect interest in a Party held, directly or indirectly, by such Party’s Key Persons or Immediate Family
Members; provided, however, that either (a) either or both of such Party’s Key Persons remain involved with the material decision-making and actions of such Party for the applicable Transfer Restriction Period (for the sake
of clarity, after the applicable Transfer Restriction Period, each Party is permitted to allow the effecting of a transfer of all or any portion of the direct or indirect interest in such Party without regard to the continued involvement of
such Party’s Key Persons) or (b) in the case of the Advisor, the transfer occurs after the Offering Period and the applicable transferee agrees to cede any decision making and governance authority relating to the Company (including making
Major Decisions) to the Sub-advisor. 

 Article 13 

Representations, Warranties, and Agreements 

 

 14 

	13.1	The Advisor and the Sub-advisor each hereby represents and warrants to, and agrees with, the other as follows: 

 

	 	(A)	Such Party is duly formed and validly existing under the laws of the jurisdiction of its organization; 

 

	 	(B)	Such Party has full power and authority to enter into this Agreement and to conduct its business to the extent contemplated in this Agreement; 

 

	 	(C)	This Agreement has been duly authorized, executed and delivered by such Party and constitutes the valid and legally binding agreement of such Party, enforceable in
accordance with its terms against such Party, except as such enforceability may be limited by bankruptcy, insolvency, moratorium and other similar laws relating to creditors’ rights generally, and by general equitable principles.

  

	 	(D)	The execution and delivery of this Agreement by such Party and the performance of its duties and obligations hereunder do not result in a breach of any of the terms,
conditions or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, credit agreement, note or other evidence of indebtedness, or any lease or other agreement, or any license, permit, franchise or certificate to which
such Party is a party or by which it is bound or to which its properties are subject or require any authorization or approval under or pursuant to any of the foregoing, or violate any statute, regulation, law, order, writ, injunction, judgment or
decree to which such Party is subject; 

  

	 	(E)	Such Party is not aware of any facts pertaining to such Party or its Affiliates that would cause such Party, or any of such Party’s Affiliates, to be unable to
discharge timely the obligations of such Party or its Affiliates under this Agreement or the obligations of the Company under any agreement to which any of them is a party; 

 

	 	(F)	To the knowledge of such Party, no consent, approval or authorization of, or filing, registration or qualification with, any court or governmental authority on the part
of such Party is required for the execution and delivery of this Agreement by such Party and the performance of its obligations and duties hereunder and such execution, delivery and performance shall not violate any other agreement to which such
Party is bound; 

  

	 	(G)	 Such Party recognizes that DLA Piper LLP (US) is representing and in the future may represent the Sub-advisor, its Affiliates and the Company with
respect to matters in this Agreement and on other unrelated matters, and acknowledges that it has been notified of this representation and that it has been suggested that it retain independent counsel in reviewing this Agreement and the terms agreed
to herein. The Advisor hereby waives all 

  

 15 

	 	 
conflicts of interest regarding DLA Piper with respect thereto and hereby waives all rights to disqualify DLA Piper from representing the Sub-advisor, its Affiliates, and the Company in any
matter at any time; 

  

	 	(H)	Such Party recognizes that Proskauer Rose LLP is representing and in the future may represent the Advisor, the Dealer Manager, their Affiliates and the Company with
respect to matters in this Agreement and on other unrelated matters, and acknowledges that it has been notified of this representation and that it has been suggested that it retain independent counsel in reviewing this Agreement and the terms agreed
to herein. The Sub-Advisor hereby waives all conflicts of interest regarding Proskauer Rose LLP with respect thereto and hereby waives all rights to disqualify Proskauer Rose LLP from representing the Advisor, the Dealer Manager, their Affiliates
and the Company in any matter at any time; 

  

	 	(I)	Except as specifically provided in this Agreement, such Party is not relying upon the other Party, the Company or their respective Affiliates or advisors, in connection
with any of the matters referred to in this Agreement, including any projections, information, due diligence, representations or warranties (express or implied, oral or written), statements or other matters concerning the Company, the other Party,
or otherwise, and each Party hereby confirms that it has conducted an independent investigation of the facts regarding the same (or has chosen not to do so at such Party’s peril); 

 

	 	(J)	The Party is not acting as the representative or agent or in any other capacity, fiduciary or otherwise, on behalf of another Person in connection with the Company or
the other matters referred to in this Agreement; 

  

	 	(K)	Such Party is aware that the other Party and/or Affiliates of such other Party now and in the future shall be, and in the past have been, engaged in businesses which
are competitive with that of the Company. Each of the Parties hereby acknowledges and agrees that the Parties’ obligations with respect to all future activities which are in competition with the Company are as set forth in Article 8;

  

	 	(L)	Such Party is aware that compensation and reimbursements may be payable to Affiliates of the Parties by the Company, as addressed in this Agreement, the Advisory
Agreement and the Dealer Manager Agreement; 

  

	 	(M)	No Party is required to cause the controlling persons of such Party to devote any specific portion of their time to Company business other than as necessary to fulfill
such Parties’ obligations under this Agreement and the Advisory Agreement, as the case may be, and such controlling persons are expected to spend substantial amounts of their time on activities that are unrelated to the Company;

  

 16 

	 	(N)	Such Party understands that the other Party is relying on the accuracy of the representations set forth in this Article 13 in entering into this Agreement;

  

	 	(O)	Such Party has not granted to any third party rights that would be inconsistent with the rights granted to the other Party by this Agreement; 

 

	 	(P)	Such Party has all requisite licenses to do and perform all acts and receive all fees as contemplated by this Agreement and the Advisory Agreement; and

  

	 	(Q)	None of its principals has been convicted of any felony, or convicted of any misdemeanor involving moral turpitude (including fraud), or entered a plea of nolo
contendere in connection with any felony or any such misdemeanor. 

  

	13.2	The Sub-advisor hereby represents and warrants to, and agrees with, the Advisor as follows: 

 

	 	(A)	The staff and employees of the Sub-advisor and its Affiliates have the skills, knowledge of and expertise in property selection, acquisitions/development, financing,
asset and property management, and dispositions as to perform their respective duties and obligations hereunder; and 

  

	 	(B)	The Sub-advisor is sophisticated in real estate and securities transactions, has been granted access to such financial and other material information concerning the
Company, the other Party and the other Party’s Affiliates, and their respective current and anticipated operations and such due diligence materials as it deems necessary or advisable, as it has requested or may require in connection with its
investment (including an advance of expenses that may be reimbursed) in the Company, is able, either directly or through its agents and representatives, to evaluate such information and any due diligence materials provided or made available to it
from time to time hereunder, and is able to bear the financial risk of loss presented by an investment in the Company, particularly in light of the risks that would be disclosed by a detailed analysis thereof (its access to which, to the full extent
any Party has requested, hereby is confirmed by each Party); 

 Article 14 

Term And Termination of the Agreement 
  

	14.1	Term. This Agreement shall have an initial term of one year from the date hereof and shall be renewed for an unlimited number of successive one-year terms upon
renewal of the Advisory Agreement. This Agreement shall be co-terminus with the Advisory Agreement. 

  

 17 

	14.2	Termination. Subject to last sentence of Section 14.1: 

  

	 	(A)	This Agreement may only be terminated (1) by the Advisor upon 60 days’ prior written notice by the Advisor to the Sub-advisor with approval of a majority of
the Conflicts Committee, or (2) by the Sub-advisor upon 60 days’ prior written notice by the Sub-advisor to the Advisor; 

  

	 	(B)	This Agreement may be terminated by the Advisor, if the Sub-advisor materially breaches this Agreement; provided, however, that the Sub-advisor shall have
30 calendar days after the receipt of notice of such breach from the Advisor to cure such breach; 

  

	 	(C)	This Agreement may be terminated by the Advisor, as a result of any fraud, criminal conduct, gross negligence or willful misconduct by Sub-Advisor or any Affiliate
thereof in any action or failure to act undertaken by such Person pertaining to or having a detrimental effect upon the ability of the Advisor or the Sub-advisor to perform their respective duties hereunder; provided, however, that the
Sub-advisor does not cure any such act within 30 calendar days after the receipt of notice of such act (or at such later time as may be stated in the notice) from the Advisor; or 

 

	 	(D)	This Agreement may be terminated by either Party, if the other Party (1) commences a voluntary case under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect, (2) consents to the entry of an order for relief in an involuntary case under any such law, (3) consents to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) for the other Party or for any substantial part of its property, or (4) makes any general assignment for the benefit of creditors under applicable state law; 

 

	 	(E)	This Agreement may be terminated by either Party, if: (1) an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect has been commenced against the other Party, and such case has not been dismissed within 60 days after the commencement thereof; or (2) a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) has been
appointed for the other Party or has taken possession of the other Party or any substantial part of its property, and such appointment has not been rescinded or such possession has not been relinquished within 60 days after the occurrence thereof;
or 

  

	 	(F)	This Agreement may be terminated at any time within five years after the date hereof by the Advisor if both Michael C. Phillips and Jeffrey S. Edison cease to be
actively involved in the management of the Sub-advisor. 

  

	14.3	 Survival upon Termination. Notwithstanding anything else that may be to the contrary herein, the expiration or earlier termination of this
Agreement shall not 

  

 18 

	 	 
relieve a party for liability for any breach occurring prior to such expiration or earlier termination. The provisions of Articles 1, 5, 6, 10, 13, 14,
16, and 17 shall survive termination of this Agreement. 

  

	14.4	Payments on Termination and Survival of Certain Rights and Obligations. After termination of this Agreement, the Sub-advisor shall have the rights to payment and
the responsibilities as set forth in Section 13.3 of the Advisory Agreement. 

 Article 15 

Assignment 

This Agreement may be assigned by the Sub-advisor (a) to an Affiliate with the consent of the Advisor, such consent not to be
unreasonably withheld or delayed, provided that such Affiliate remains at all times thereafter an Affiliate of Phillips Edison Limited Partnership or (b) in a manner meeting the conditions of Section 12.2(B)(2). This Agreement shall
not be assigned by the Advisor without the consent of the Sub-Advisor, except in the case of (i) an assignment by the Advisor to the Company whereby the Sub-advisor becomes the advisor to the Company or (ii) an assignment by the Advisor
meeting the conditions of Section 12.2(B)(2). 
 Article 16 

Indemnification And Limitation Of Liability 

The indemnification and limitation of liability provisions contained in the Advisory Agreement apply to both the Advisor and Sub-advisor.
Both Parties agree that neither will take any action inconsistent with such limitation of liability or indemnification provisions. 

Article 17 

Miscellaneous 
  

	17.1	Notices. Any notice, request, demand, approval, consent, waiver or other communication required or permitted to be given hereunder or to be served upon any of
the Parties hereto (each a “Notice”) shall be in writing and shall be (a) delivered in person, (b) sent by facsimile transmission (with the original thereof also contemporaneously given by another method specified in this
Section 17.1), (c) sent by a nationally-recognized overnight courier service, or (d) sent by certified or registered mail (postage prepaid, return receipt requested), to the address of such Party set forth herein.

 To the Advisor: 

American Realty Capital II Advisors, LLC 
  

 19 

 405 Park Avenue 

New York, New York 10022

Attention: Nicholas S. Schorsch 

    Jesse Galloway

with a copy to (which shall not constitute Notice):

Proskauer Rose LLP

1585 Broadway

New York, New York 10036

Attention: Peter M. Fass, Esq. 

    James P. Gerkis, Esq.

Telephone: (212) 969-3000

Facsimile: (212) 969-2900

To the Sub-advisor:

Phillips Edison NTR LLC

11501 Northlake Drive

Cincinnati, OH 45249 

with a copy to (which shall not constitute Notice): 

DLA Piper LLP (US)

4141 Parklake Drive , Suite 300

Raleigh, North Carolina 27612

Attention: Robert Bergdolt

Telephone: (919) 786-2002

Facsimile: (919) 786-2202

Either Party may at any time give Notice in writing to the other Party of a change in its address for the purposes of this
Section 17.1. Each Notice shall be deemed given and effective upon receipt (or refusal of receipt). 
  

	17.2	Modification. This Agreement shall not be amended, supplemented, changed, modified, terminated or discharged, in whole or in part, except by an instrument in
writing signed by both Parties hereto, or their respective successors or permitted assigns. 

  

	17.3	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. 

  

	17.4	Construction. 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. 

  

 20 

	17.5	Entire Agreement. This Agreement contains the entire agreement and understanding between 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 and/or usage of the trade inconsistent with any of the terms hereof. In all events, nothing contained herein shall be read, construed, interpreted or applied in any manner that prevents or hinders the Company from
qualifying as a real estate investment trust under Section 856(c) of the Code. 

  

	17.6	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. 

  

	17.7	Gender. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural,
and any other gender, masculine, feminine or neuter, as the context requires. 

  

	17.8	Titles Not to Affect Interpretation. The titles of Articles and Sections 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. 

  

	17.9	Counterparts. This Agreement may be executed 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. This Agreement shall become binding when one or more counterpart signature pages or counterparts hereof, individually or
taken together, shall bear the signatures of all of the Parties reflected hereon as the signatories. 

 [The
remainder of this page is intentionally left blank. 
 Signature page follows.] 

 

 21 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date and year
first above written. 
  

			
	American Realty Capital II Advisors, LLC
		
	By:	 	 /s/ William Kahane

		 	William Kahane, President
	
	Phillips Edison NTR LLC
		
	By:	 	 /s/ John B. Bessey

		 	John B. Bessey, President

  

 [Signature Page to First Amended and Restated Sub-advisory Agreement between

 American Realty Capital II Advisors, LLC and Phillips Edison NTR LLC] 

 Schedule I 

Initial O&O Budget 

Phillips Edison – ARC Shopping Center REIT, Inc. 

Estimated Issuer Costs 
 (Based on $1.5
billion offering) 
 Pre-Effective Period 
   

				
	 	  	Pre-Effective
	 	  	Period
	 SEC Registration Fee
	  	 	97,000
	 FINRA Filing Fee
	  	 	75,500
	 Legal – Issuer
	  	 	900,000
	 Legal – Managing BD (including FINRA)
	  	 	200,000
	 Printing
	  	 	150,000
	 Accounting
	  	 	115,000
	 Blue Sky Expenses
	  	 	50,000
	 Advertising and Sales Literature
	  	 	500,000
	 Miscellaneous – Fulfillment
	  		
	 Seminars
	  	 	250,000
	 Other 1 – Investor Relations and Transfer Agent and Fulfillment
	  	 	175,500
	 Other 2 – Other Overhead Costs
	  	 	202,000
	 Other 3 – Due Diligence
	  	 	200,000
		  	 	 
	 Total Issuer Costs for the Period
	  	$	2,915,000

 Appendix A 

Form of Advisory Agreement 

Exhibit 10.1 

Third Amended and Restated 

Advisory Agreement 

between 

Phillips Edison – ARC Shopping Center REIT Inc. 

and 
 American
Realty Capital II Advisors, LLC 
 July 1, 2010 

 Table of Contents 

 

			
	 	  	Page
	 Article 1 - Definitions
	  	1
	 Article 2 - Appointment
	  	9
	 Article 3 - Duties Of The Advisor
	  	9
	 3.1 Organizational and Offering Services
	  	10
	 3.2 Acquisition Services
	  	10
	 3.3 Asset Management Services
	  	11
	 3.4 Stockholder Services
	  	14
	 3.5 Other Services
	  	14
	 Article 4 - Authority Of Advisor
	  	14
	 4.1 General
	  	14
	 4.2 Powers of the Advisor
	  	14
	 4.3 Approval by the Board
	  	15
	 4.4 Modification or Revocation of Authority of Advisor
	  	15
	 Article 5 - Bank Accounts
	  	15
	 Article 6 - Records And Financial Statements
	  	15
	 Article 7 - Limitation On Activities
	  	16
	 Article 8 - Fees
	  	16
	 8.1 Acquisition Fees
	  	16
	 8.2 Asset Management Fee
	  	17
	 8.3 Disposition Fees
	  	17
	 8.4 Financing Fee
	  	18
	 8.5 Subordinated Share of Cash Flows
	  	18
	 8.6 Subordinated Incentive Fee
	  	18
	 8.7 Other Services
	  	19
	 8.8 Changes to Fee Structure
	  	19
	 8.9 Limitation on Acquisition Fees, Acquisition Expenses and Financing Fees
	  	19
	 Article 9 - Expenses
	  	19
	 9.1 General
	  	19
	 9.2 Timing of and Limitations on Reimbursements
	  	22
	 Article 10 - Voting Agreement
	  	23
	 10.1 Election of Directors
	  	23
	 10.2 Other Voting of Shares
	  	24
	 Article 11 - Relationship Of Advisor And Company; Other Activities Of The Advisor
	  	24
	 11.1 Relationship
	  	24
	 11.2 Time Commitment
	  	24
	 11.3 Investment Opportunities and Allocation
	  	25
	 Article 12 - The Phillips Edison and ARC Names
	  	26
	 12.1 The American Realty Capital and ARC Names
	  	26
	 12.2 The Phillips Edison and PECO Names
	  	27
	 Article 13 - Term And Termination of the Agreement and Sub-advisory Agreement
	  	27
	 13.1 Term
	  	27

  

 i 

			
	 13.2 Termination by Either Party
	  	28
	 13.3 Payments on Termination and Survival of Certain Rights and Obligations
	  	28
	 Article 14 - Assignment
	  	31
	 14.1 Assignment of Agreement
	  	31
	 14.2 Assignment of Payments
	  	31
	 Article 15 - Indemnification And Limitation Of Liability
	  	31
	 15.1 Indemnification
	  	31
	 15.2 Limitation on Indemnification
	  	32
	 15.3 Limitation on Payment of Expenses
	  	32
	 Article 16 - Miscellaneous
	  	32
	 16.1 Notices
	  	32
	 16.2 Modification
	  	34
	 16.3 Severability
	  	34
	 16.4 Construction
	  	34
	 16.5 Entire Agreement
	  	34
	 16.6 Waiver
	  	34
	 16.7 Gender
	  	35
	 16.8 Titles Not to Affect Interpretation
	  	35
	 16.9 Third Party Beneficiary
	  	35
	 16.10 Counterparts
	  	35
	 16.11 Restricted Stock
	  	35

  

 ii 

 Third Amended and Restated Advisory Agreement 

This Second Amended and Restated Advisory Agreement, dated as of July 1, 2010 (this “Agreement”), is between
Phillips Edison – ARC Shopping Center REIT Inc., a Maryland corporation (the “Company”), and American Realty Capital II Advisors, LLC, a Delaware limited liability company (the “Advisor”). 

W I T N E S S E T H 

WHEREAS, the parties entered into the Advisory Agreement on January 11, 2010 (the “Original Agreement”);

 WHEREAS, the parties entered into the Amended and Restated Advisory Agreement on March 1, 2010; 

WHEREAS, the parties entered into the Second Amended and Restated Advisory Agreement on April 9, 2010 (the “Amended
Agreement”); 
 WHEREAS, the parties have agreed to make certain amendments and desire to amend and restate the Amended
Agreement; 
 WHEREAS, the Company desires to avail itself of the knowledge, experience, sources of information, advice,
assistance and certain facilities available to the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of, the Board of Directors of the Company, all as
provided herein; and 
 WHEREAS, the Advisor is willing to undertake to render such services, subject to the supervision of the
Board of Directors of the Company, on the terms and subject to the conditions hereinafter set forth. 
 NOW, THEREFORE, in
consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree that the Amended Agreement hereby is amended and restated to read in its entirety as follows: 

Article 1 

Definitions 

The following defined terms used in this Agreement shall have the meanings specified below: 

“Acquisition Expenses” means any and all expenses, excluding the Acquisition Fees, incurred by the Company, the Advisor
or any Affiliate of either in connection with the consideration, investigation, selection, evaluation, acquisition or development of any Property, Loan or other Permitted Investment, whether or not acquired or originated, as applicable, including
legal fees and expenses, travel and communications expenses, 
  

 1 

 
brokerage fees, costs of appraisals, nonrefundable option payments on Properties, Loans or other Permitted Investments not acquired, accounting fees and expenses, title insurance premiums and the
costs of performing due diligence. 
 “Acquisition Fees” means (i) the fees payable to the Advisor
pursuant to Section 8.1, and (ii) all other fees and commissions, excluding Acquisition Expenses, paid by any Person to any Person in connection with making or investing in any Property, Loan or other Permitted Investment or the
purchase, development or construction of any Property by the Company. Included in clause (ii) above shall be any real estate commission, selection fee, Development Fee, Construction Fee, nonrecurring management fee, loan fees or
points or any fee of a similar nature, however designated. Excluded in clause (ii) above shall be Development Fees and Construction Fees paid to Persons not Affiliated with the Advisor or Sub-advisor in connection with the actual
development and construction of a Property. 
 “Advisor” has the meaning set forth at the head of this
Agreement. 
 “Affiliate” means, with respect to any Person, any of the following: (i) any other Person
directly or indirectly controlling, controlled by, or under common control with such Person; (ii) any other Person directly or indirectly owning, controlling, or holding with the power to vote 10% or more of the outstanding voting securities of
such Person; (iii) any legal entity for which such Person acts as an executive officer, director, trustee, or general partner; (iv) any other Person 10% or more of whose outstanding voting securities are directly or indirectly owned,
controlled, or held, with power to vote, by such Person; and (v) any executive officer, director, trustee, or general partner of such Person. An entity shall not be deemed to control or be under common control with an Advisor- or
Sub-advisor-sponsored program unless (A) the entity owns 10% or more of the voting equity interests of such program, or (B) a majority of the board of directors (or equivalent governing body) of such program is composed of Affiliates of
the entity. The term “Affiliated” shall have a meaning correlative thereto. For the avoidance of doubt, none of the Company, the Sub-advisor, any subsidiary of the Company, any subsidiary of the Sub-advisor and any other Person
controlled by, controlling or under common control with Phillips Edison & Company shall be an Affiliate of the Advisor. 

“Appraised Value” means the value according to an appraisal made by an Independent Appraiser. 

“Articles of Incorporation” means the Articles of Incorporation of the Company under Title 2 of the Corporations and
Associations Article of the Annotated Code of Maryland, as amended from time to time. 
 “Asset Management Fee”
shall have the meaning set forth in Section 8.2. 
 “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 Properties, Loans and other Permitted Investments secured by real estate before reserves

  

 2 

 
for depreciation or bad debts or other similar non-cash reserves, computed by taking the average of such values at the end of each month during such specified period. 

“Board of Directors” or “Board” means the persons holding such office, as of any particular time, under
the Articles of Incorporation of the Company, whether they be the Directors named therein or additional or successor Directors. 

“Board Observer” shall have the meaning set forth in Section 10.1. 

“Bylaws” means the bylaws of the Company, as amended from time to time. 

“Cash from Financings” means the net cash proceeds realized by the Company from the financing of Properties, Loans or
other Permitted Investments or from the refinancing of any Company indebtedness (after deduction of all expenses incurred in connection therewith). 

“Cash from Sales and Settlements” means the net cash proceeds realized by the Company: (i) from the sale, exchange
or other disposition of any of its assets or any portion thereof after deduction of all expenses incurred in connection therewith; (ii) from the prepayment, maturity, workout or other settlement of any Loan or Permitted Investment or portion
thereof after deduction of all expenses incurred in connection therewith; and (iii) from regular principal payments on any Loan (or to the extent applicable, any Permitted Investment). In the case of a transaction described in
clause (i)(C) of the definition of “Sale” and clause (i)(B) of the definition of “Settlement,” Cash from Sales and Settlements means the proceeds of any such transaction actually distributed to the Company from
the Joint Venture or partnership. Cash from Sales and Settlements shall not include Cash from Financings. 
 “Cash from
Sales, Settlements and Financings” means the total sum of Cash from Sales and Settlements and Cash from Financings. 

“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” means Phillips Edison – ARC Shopping Center REIT Inc., a corporation organized under the laws
of the State of Maryland. 
 “Competitive Real Estate Commission” means a real estate or brokerage commission
for the purchase or sale of property that is reasonable, customary, and competitive in light of the size, type, and location of the property. 

“Conflicts Committee” shall have the meaning set forth in the Company’s Articles of Incorporation. 

 

 3 

 “Construction Fee” means a fee or other remuneration for acting as general
contractor and/or construction manager to construct improvements, supervise and coordinate projects or to provide major repairs or rehabilitation on a Property. 

“Contract Sales Price” means the total consideration received by the Company for the sale of a Property, Loan or other
Permitted Investment. 
 “Cost of Loans and other Permitted Investments” means the sum of the cost of all Loans
and Permitted Investments held by the Company, calculated each month on an ongoing basis, and calculated as follows for each Loan or Permitted Investment: the lesser of (i) the amount actually paid or allocated to acquire or fund the Loan or
Permitted Investment (inclusive of expenses related thereto and the amount of any debt associated with or used to acquire or fund such Loan or Permitted Investment) and (ii) the outstanding principal amount of such Loan or Permitted Investment,
as of the time of calculation. With respect to any Loan or Permitted Investment held by the Company through a Joint Venture or partnership of which it is, directly or indirectly, a co-venturer, such amount shall be the Company’s proportionate
share thereof. 
 “Cost of Real Estate Investments” means the sum of (i) with respect to Properties wholly
owned, directly or indirectly, by the Company, the amount actually paid or allocated to the purchase, development, construction or improvement of Properties, inclusive of expenses related thereto, plus the amount of any outstanding debt attributable
to such Properties and (ii) in the case of Properties owned by any Joint Venture or partnership in which the Company or the Partnership is, directly or indirectly, a co-venturer or partner, the portion of the amount actually paid or allocated
to the purchase, development, construction or improvement of Properties, inclusive of expenses related thereto, plus the amount of any outstanding debt associated with such Properties that is attributable to the Company’s investment in the
Joint Venture or partnership. 
 “Dealer Manager” means (i) Realty Capital Securities, LLC, a Delaware
limited liability company, or (ii) any successor dealer manager to the Company. 
 “Development Fee” means
a fee for the packaging of a Property, including negotiating and approving plans, and undertaking to assist in obtaining zoning and necessary variances and necessary financing for the Property, either initially or at a later date. 

“Director” means a member of the Board of Directors of the Company. 

“Disposition Fee” shall have the meaning set forth in Section 8.3. 

“Distributions” means any distributions of money or other property by the Company to owners of Shares, including
distributions that may constitute a return of capital for federal income tax purposes. 
 “Financing Fee” shall
have the meaning set forth in Section 8.4. 
 “GAAP” means accounting principles generally accepted
in the United States. 
  

 4 

 “Gross Proceeds” means the aggregate purchase price of all Shares sold for
the account of the Company through an Offering, without deduction for Organization and Offering Expenses. 

“include,” “included,” “including” and “such as” are to be construed
as if followed by the phrase “without limitation.” 
 “Independent Appraiser” means a person with no
material current or prior business or personal relationship with the Advisor or the Directors, who is engaged to a substantial extent in the business of rendering opinions regarding the value of assets of the type held by the Company, and who is a
qualified appraiser of real estate as determined by the Board. Membership in a nationally recognized appraisal society such as the American Institute of Real Estate Appraisers (“M.A.I.”) or the Society of Real Estate Appraisers
(“S.R.E.A.”) shall be conclusive evidence of such qualification. 
 “Initial Public Offering”
means the initial public offering of Shares registered on the Registration Statement pursuant to the Securities Act of 1933, as amended. 

“Invested Capital” means the amount calculated by multiplying the total number of Shares purchased by Stockholders by
the issue price, reduced by any amounts paid by the Company to repurchase or redeem Shares pursuant to the Company’s plan for redemption of Shares or otherwise. 

“Joint Venture” means any joint venture, limited liability company or other Affiliate of the Company that owns, in whole
or in part, on behalf of the Company any Properties, Loans or other Permitted Investments. 
 “Listed” or
“Listing” shall have the meaning set forth in the Company’s Articles of Incorporation. 

“Loans” means mortgage loans and other types of debt financing investments made by the Company or the Partnership,
either directly or indirectly, including through ownership interests in a Joint Venture or partnership, and including mezzanine loans, B-notes, bridge loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on
leasehold interests, and participations in such loans. 
 “Management Fee Base” means, for
a specified period, the sum of the Cost of Real Estate Investments and the Cost of Loans and other Permitted Investments computed by taking the average of such values at the end of each month during such specified period. 

“NASAA Guidelines” means the NASAA Statement of Policy Regarding Real Estate Investment Trusts as in effect on the date
hereof. 
 “Net Income” means, for any period, the total revenues of the Company applicable to such period,
less the total expenses applicable to such period excluding additions to reserves for depreciation, bad debts or other similar non-cash reserves; 

 

 5 

 
provided, however, that Net Income shall exclude the gain from the sale of the Company’s assets. 

“Observer Period” shall have the meaning set forth in Section 10.1. 

“Offering” means any offering of Shares that is registered with the SEC pursuant to the Securities Act of 1933, as
amended, excluding Shares offered under any employee benefit plan. 
 “Operating Cash Flow” means Operating
Revenue Cash Flows minus the sum of (i) Operating Expenses, (ii) all principal and interest payments on indebtedness and other sums paid to lenders, (iii) the expenses of raising capital such as Organization and Offering Expenses,
legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, registration and Listing of the Shares,
(iv) taxes, (v) incentive fees paid in compliance with Section IV.F. of the NASAA Guidelines and (vi) Acquisition Fees, Acquisition Expenses, real estate commissions on resale of property, and other expenses connected with the
acquisition, disposition, and ownership of real estate interests, loans or other property (other than commissions on the sale of assets other than real property), such as the costs of foreclosure, insurance premiums, legal services, maintenance,
repair and improvement of property. 
 “Operating Expenses” means all costs and expenses incurred by the
Company, as determined under GAAP, that in any way are related to the operation of the Company or to Company business, including fees paid to the Advisor, but excluding (i) the expenses of raising capital such as Organization and Offering
Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, registration and Listing of the Shares,
(ii) interest payments, (iii) taxes, (iv) non-cash expenditures such as depreciation, amortization, bad loan reserves, impairments of value, and mark-to-market losses, (v) incentive fees paid in compliance with Section IV.F.
of the NASAA Guidelines, and (vi) Acquisition Fees, Acquisition Expenses, real estate commissions on resale of property, property management fees, and other expenses connected with the acquisition, disposition, and ownership of real estate
interests, loans or other property (other than commissions on the sale of assets other than real property), such as the costs of foreclosure, insurance premiums, legal services, maintenance, repair and improvement of property. 

“Operating Revenue Cash Flows” means the Company’s cash flow from ownership and/or operation of
(i) Properties, (ii) Loans, (iii) Permitted Investments, (iv) short-term investments, and (v) interests in Properties, Loans and Permitted Investments owned by any Joint Venture or any partnership in which the Company or the
Partnership is, directly or indirectly, a co-venturer or partner. 
 “Organization and Offering Expenses” means
all expenses incurred by or on behalf of the Company in connection with or in preparing the Company for registration of and subsequently offering and distributing its Shares to the public, whether incurred

  

 6 

 
before, on or after the date of this Agreement, including total dealer-manager, underwriting and brokerage discounts and commissions; legal fees and expenses of any dealer-manager or underwriter;
expenses for printing, engraving and mailing; compensation of employees while engaged in sales activity; charges of transfer agents, registrars, trustees, escrow holders, depositaries and experts; expenses of qualification of the sale of the
securities under Federal and state laws; taxes and fees, accountants’ and attorneys’ fees and expenses. 

“Other Liquidity Event” has the meaning set forth in Section 13.3(F). 

“Partnership” means Phillips Edison – ARC Shopping Center Operating Partnership, L.P., a Delaware limited
partnership formed to own and operate Properties, Loans and other Permitted Investments on behalf of the Company. 

“Permitted Investments” means all investments (other than Properties and Loans) in which the Company acquires an
interest, either directly or indirectly, including through ownership interests in a Joint Venture or partnership, pursuant to its Articles of Incorporation, Bylaws and the investment objectives and policies adopted by the Board from time to time,
other than short-term investments acquired for purposes of cash management. 
 “Person” or
“person” means an individual, corporation, partnership, estate, trust (including a trust qualified under Section 401(a) or 501(c) (17) of the Code), a portion of a trust permanently set aside for or to be used exclusively
for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity, or any government or any agency or political subdivision
thereof, and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended. 

“Property” or “Properties” means any real property or properties transferred or conveyed to the
Company, the Partnership, or any subsidiary of the Company or the Partnership, either directly or indirectly, and/or any real property or properties transferred or conveyed to a Joint Venture or partnership in which the Company is, directly or
indirectly, a co-venturer or partner. 
 “Property Manager” means an entity that has been retained to perform
and carry out at one or more of the Properties property-management services, excluding Persons retained or hired to perform facility management or other services or tasks at a particular Property, the costs for which are passed through to and
ultimately paid by the tenant at such Property. 
 “Registration Statement” means the registration statement
filed by the Company with the SEC pursuant to the Securities Act of 1933, as amended, on Form S-11, as amended from time to time, in connection with the Initial Public Offering. 

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

 

 7 

 “Sale” or “Sales” means (i) any transaction or series
of transactions whereby: (A) the Company or the Partnership sells, grants, transfers, conveys, or relinquishes its direct or indirect ownership of any Property, Loan or other Permitted Investment or portion thereof, including the transfer of
any Property that is the subject of a ground lease, and including any event with respect to any Property, Loan or other Permitted Investment that gives rise to a significant amount of insurance proceeds or condemnation awards; (B) the Company
or the Partnership sells, grants, transfers, conveys, or relinquishes its ownership of all or substantially all of the direct or indirect interest of the Company or the Partnership in any Joint Venture or partnership in which it is, directly or
indirectly, a co-venturer or partner; or (C) any Joint Venture or partnership (in which the Company or the Partnership is, directly or indirectly, a co-venturer or partner) sells, grants, transfers, conveys, or relinquishes its direct or
indirect ownership of any Property, Loan or other Permitted Investment or portion thereof, including any event with respect to any Property, Loan or other Permitted Investment that gives rise to insurance claims or condemnation awards, but
(ii) not including any transaction or series of transactions specified in clause (i)(A), (i)(B), or (i)(C) above in which the proceeds of such transaction or series of transactions are reinvested in one or more Properties,
Loans or other Permitted Investments within 180 days thereafter. 
 “SEC” means the United States Securities
and Exchange Commission. 
 “Settlement” means (i) the payment of principal, prepayment, maturity, workout
or other settlement of any Loan or other Permitted Investment or portion thereof owned, directly or indirectly, by (A) the Company or the Partnership or (B) any Joint Venture or any partnership in which the Company or the Partnership is,
directly or indirectly, a partner, but (ii) not including any transaction or series of transactions specified in clause (i)(A) or (i)(B) above in which the proceeds of such prepayment, maturity, workout or other settlement
are reinvested in one or more Properties, Loans or other Permitted Investments within 180 days thereafter. 

“Shares” means the shares of common stock of the Company, par value $.01 per share. 

“Stockholders” means the registered holders of the Shares. 

“Stockholders’ 7% Return” means, as of any date, an aggregate amount equal to a 7% cumulative, non-compounded,
annual return on Invested Capital (calculated like simple interest on a daily basis based on a three hundred sixty-five day year). For purposes of calculating the Stockholders’ 7% Return, Invested Capital shall be determined for each day during
the period for which the Stockholders’ 7% Return is being calculated and shall be calculated net of (1) Distributions of Operating Cash Flow to the extent such Distributions of Operating Cash Flow provide a cumulative, non-compounded,
annual return in excess of 7%, as such amounts are computed on a daily basis based on a three hundred sixty-five day year and (2) Distributions of Cash from Sales, Settlements and Financings, except to the extent such Distributions would be
required to supplement Distributions of Operating Cash Flow in order to achieve a 
  

 8 

 
cumulative, non-compounded, annual return of 7%, as such amounts are computed on a daily basis based on a three hundred sixty-five day year. 

“Sub-advisor” means (i) Phillips Edison NTR LLC (formerly known as Phillips Edison & Company SubAdvisor
LLC), a Delaware limited liability company, or (ii) any successor sub-advisor to the Advisor. 
 “Sub-advisory
Agreement” means that First Amended and Restated Sub-advisory Agreement between the Advisor and the Sub-advisor, dated as of the date hereof, as the same may be amended, restated or otherwise modified from time to time in accordance with
its terms. 
 “Subordinated Incentive Fee” means the fee payable to the Advisor under certain circumstances if
the Shares are Listed, as calculated in Section 8.6. 
 “Subordinated Performance Fee Due Upon
Termination” means the fee payable to the Advisor or its assignees under certain circumstances upon termination of this Agreement, as calculated in Section 13.3. 

“Subordinated Share of Cash Flows” means any amount payable to the Advisor or its assignees pursuant to
Section 8.5. 
 “Termination” means the termination of this Agreement in accordance with Article
13 hereof. 
 “Termination Date” means the date of termination of the Agreement determined in accordance
with Article 13 hereof. 
 “2%/25% Guidelines” has the meaning set forth in Section 9.2(C).

 Article 2 

Appointment 

The Company hereby appoints the Advisor to serve as its advisor and asset manager on the terms and subject to the conditions set forth in
this Agreement, and the Advisor hereby accepts such appointment. 
 Article 3 

Duties Of The Advisor 

The Advisor is responsible for managing, operating, directing and supervising the operations and administration of the Company and its
assets. The Advisor undertakes to use commercially reasonable efforts to present to the Company potential investment opportunities and to provide the Company with 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. Subject to the limitations set 

 

 9 

 
forth in this Agreement, including Article 4 hereof, consistent with the provisions of the Articles of Incorporation and Bylaws and the continuing and exclusive authority of the Board over
the supervision of the Company, the Advisor shall, either directly or by engaging an Affiliate, the Sub-advisor or third party, perform the following duties: 
  

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

  

	3.2	Acquisition Services. The Advisor shall: 

  

	 	(A)	Serve as the Company’s investment and financial advisor and provide relevant market research and economic and statistical data in connection with the
Company’s assets and investment objectives and policies; 

  

	 	(B)	Subject to Article 4 hereof and the investment objectives and policies of the Company: (a) locate, analyze and select potential investments;
(b) structure and negotiate the terms and conditions of transactions pursuant to which investments in Properties, Loans and other Permitted Investments will be made; (c) acquire, originate and dispose of Properties, Loans and other
Permitted Investments on behalf of the Company (including through Joint Ventures); (d) arrange for financing and refinancing and make other changes in the asset or capital structure of investments in Properties, Loans and other Permitted
Investments; (e) select Joint Venture partners and structure corresponding agreements; and (f) enter into leases, service contracts and other agreements for Properties, Loans and other Permitted Investments; 

 

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

 

	 	(D)	Prepare reports regarding prospective investments that include recommendations and supporting documentation necessary for the Directors to evaluate the proposed
investments; 

  

	 	(E)	Obtain reports (which may be prepared by the Advisor, the Sub-advisor or their Affiliates), where appropriate, concerning the value of contemplated investments of the
Company; 

  

	 	(F)	Deliver to or maintain on behalf of the Company copies of all appraisals obtained in connection with the Company’s investments; and 

 

	 	(G)	Negotiate and execute approved investments and other transactions, including Settlements of Loans and other Permitted Investments. 

 

 10 

	3.3	Asset Management Services. The Advisor shall (or shall retain other Persons to (but shall remain responsible to the Company)): 

 

	 	(A)	Real Estate and Related Services: 

  

	 	(1)	Investigate, select and, on behalf of the Company, engage and conduct business with (including enter contracts with) and supervise the performance of such Persons as
the Advisor deems necessary to the proper performance of its obligations as set forth in this Agreement, including consultants, accountants, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents,
depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, security investment advisors, mortgagors, the registrar and the transfer agent, construction companies, Property Managers and
any and all Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services; 

  

	 	(2)	Negotiate and service the Company’s debt facilities and other financings and negotiate on behalf of the Company with banks or other lenders for debt facilities to
be made to the Company or with investment banking firms and broker-dealers or negotiate private sales of Shares or obtain debt facilities for the Company, but in no event in such a manner so that the Advisor shall be acting as a 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; 

 

	 	(3)	Monitor applicable markets and obtain reports (which may be prepared by the Advisor, the Sub-advisor or their Affiliates) where appropriate, concerning the value of
investments of the Company; 

  

	 	(4)	Monitor and evaluate the performance of each asset of the Company and the Company’s overall portfolio of assets, provide daily management services to the Company
and perform and supervise the various management and operational functions related to the Company’s investments; 

  

	 	(5)	Formulate and oversee the implementation of strategies for the administration, promotion, management, operation, maintenance, investment, improvement, financing and
refinancing, marketing, leasing and disposition of Properties, Loans and other Permitted Investments on an overall portfolio basis; 

  

	 	(6)	 Consult with the Company’s officers and the Board and assist the Board in the formulation and implementation of the Company’s

  

 11 

	 	 
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; 

  

	 	(7)	Oversee the performance by the Property Managers of their duties, including collection and proper deposits of rental payments and payment of Property expenses and
maintenance; 

  

	 	(8)	Conduct periodic on-site property visits to some or all (as the Advisor or its designee deems reasonably necessary) of the Properties to inspect the physical condition
of the Properties and to evaluate the performance of the Property Managers; 

  

	 	(9)	Review, analyze and comment upon the operating budgets, capital budgets and leasing plans prepared and submitted by each Property Manager and aggregate these property
budgets into the Company’s overall budget; 

  

	 	(10)	Coordinate and manage relationships between the Company and any co-venturers or partners; and 

 

	 	(11)	Consult with the Company’s officers and the Board and provide assistance with the evaluation and approval of potential asset dispositions, sales and refinancings.

  

	 	(B)	Accounting and Other Administrative Services: 

  

	 	(1)	Provide the day-to-day management of the Company and perform and supervise the various administrative functions reasonably necessary for the management of the Company;

  

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

  

	 	(3)	Make reports to the Conflicts Committee each quarter of the investments that have been made by other programs sponsored by the Advisor, the Sub-advisor or any of their
respective Affiliates, as well as any investments that have been made by the Advisor, Sub-advisor or any of their Affiliates directly, in each case to the extent such investments constitute a conflict of interest or a potential conflict of interest
with the investment policies and objectives of the Company; 

  

	 	(4)	 Provide or arrange for any administrative services and items, legal and other services, office space, office furnishings, personnel and

  

 12 

	 	 
other overhead items necessary and incidental to the Company’s business and operations; 

  

	 	(5)	Provide financial and operational planning services; 

  

	 	(6)	Maintain accounting and other record-keeping functions at the Company and investment levels, including information concerning the activities of the Company as shall be
required to prepare and to file all periodic financial reports, tax returns and any other information required to be filed with the SEC, the Internal Revenue Service and any other regulatory agency; 

 

	 	(7)	Maintain and preserve all appropriate books and records of the Company; 

  

	 	(8)	Provide tax and compliance services and coordinate with appropriate third parties, including the Company’s independent auditors and other consultants, on related
tax matters; 

  

	 	(9)	Provide the Company with all necessary cash management services; 

  

	 	(10)	Deliver to, or maintain on behalf of, the Company copies of all appraisals obtained in connection with Properties, Loans and Permitted Investments;

  

	 	(11)	Manage and coordinate with the transfer agent the monthly dividend process and payments to Stockholders; 

 

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

  

	 	(13)	Consult with the Company’s officers and the Board and assist the Board in evaluating various liquidity events when appropriate; 

 

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

  

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

  

	 	(16)	 Perform all reporting, record keeping, internal controls and similar matters in a manner to allow the Company to comply with

  

 13 

	 	 
applicable law, including federal and state securities laws and the Sarbanes-Oxley Act of 2002; 

  

	 	(17)	Notify the Board of all proposed material transactions before they are completed; and 

 

	 	(18)	Do all things necessary to assure its ability to render the services described in this Agreement. 

 

	3.4	Stockholder Services. The Advisor shall (or shall retain other Persons to (but shall remain responsible to the Company)): 

 

	 	(A)	Manage services for and communications with Stockholders, including answering phone calls, preparing and sending written and electronic reports and other
communications; 

  

	 	(B)	Oversee the performance of the transfer agent and registrar; 

  

	 	(C)	Establish technology infrastructure to assist in providing Stockholder support and service; and 

 

	 	(D)	Consistent with Section 3.1, perform the various subscription processing services reasonably necessary for the admission of new Stockholders.

  

	3.5	Other Services. Except as provided in Article 7, the Advisor shall perform any other services reasonably requested by the Company (acting through the
Conflicts Committee). 

 Article 4 

Authority of Advisor 
  

	4.1	General. All rights and powers to manage and control the day-to-day business and affairs of the Company shall be vested in the Advisor. The Advisor shall have
the power to delegate all or any part of its rights and powers to manage and control the business and affairs of the Company to such officers, employees, Affiliates, agents and representatives of the Advisor or the Company or to the Sub-advisor as
it may deem appropriate. Any authority delegated by the Advisor to any other Person shall be subject to the limitations on the rights and powers of the Advisor specifically set forth in this Agreement or the Articles of Incorporation.

  

	4.2	 Powers of the Advisor. Subject to the express limitations set forth in this Agreement, to the continuing and exclusive authority of the Board
over the supervision of the Company, and to the right of the Advisor to delegate its responsibilities pursuant to Section 4.1, the power to direct the management, operation and policies of the Company shall be vested in the Advisor,
which shall have the power by itself and shall be authorized and empowered on behalf and in 

  

 14 

	 	 
the name of the Company to carry out any and all of the objectives and purposes of the Company and to perform all acts and enter into and perform all contracts and other undertakings that it may
in its sole discretion deem necessary, advisable or incidental thereto to perform its obligations under this Agreement. 

  

	4.3	Approval by the Board. Notwithstanding the foregoing, the Advisor may not take any action on behalf of the Company without the prior approval of the Board or
duly authorized committees thereof if the Articles of Incorporation or Maryland General Corporation Law require the prior approval of the Board. The Advisor will deliver to the Board all documents reasonably required by it to evaluate a proposed
investment (and any related financing). 

  

	4.4	Modification or Revocation of Authority of Advisor. The Board may, at any time upon the giving of notice to the Advisor, modify or revoke the authority or
approvals set forth in Article 3 hereof and this Article 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 prior to the date of receipt by the Advisor of such notification. 

Article 5 

Bank Accounts 

The Advisor may establish and maintain one or more bank accounts in its own name for the account of the Company or in the name of the
Company 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, under such terms and conditions as the Board may approve; provided, that no funds shall
be commingled with the funds of the Advisor. The Advisor shall upon request render appropriate accountings of such collections and payments to the Board and the independent auditors of the Company. 

Article 6 

Records And Financial Statements 

The Advisor, in the conduct of its responsibilities to the Company, shall maintain adequate and separate books and records for the
Company’s operations in accordance with GAAP, which shall be supported by sufficient documentation to ascertain that such books and records are properly and accurately recorded. Such books and records shall be the property of the Company and
shall be available for inspection by the Board and by counsel, auditors and other authorized agents of the Company, at any time or from time to time during normal business hours. Such books and records shall include all information necessary to
calculate and audit the fees or reimbursements paid under this Agreement. The Advisor shall utilize procedures to attempt to ensure such control over accounting and financial transactions as is reasonably required to protect the Company’s
assets from theft, error or fraudulent activity. All financial statements that the Advisor delivers to the Company shall be prepared on an accrual basis in accordance with GAAP, 

 

 15 

 
except for special financial reports that by their nature require a deviation from GAAP. The Advisor shall liaise with the Company’s officers and independent auditors and shall provide such
officers and auditors with the reports and other information that the Company so requests. 
 Article 7 

Limitation On Activities 

Notwithstanding any provision in this Agreement to the contrary, the Advisor shall not take any action that, in its sole judgment made in
good faith, would (i) adversely affect the ability of the Company to qualify or continue to qualify as a REIT under the Code (unless the Board has determined that REIT qualification is not in the best interests of the Company and its
Stockholders), (ii) subject the Company to regulation under the Investment Company Act of 1940, as amended, (iii) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the
Company, its Shares or its other securities, (iv) require the Advisor to register as a broker-dealer with the SEC or any state, or (v) violate the Articles of Incorporation or Bylaws. In the event an action that would violate any of
clauses (i) through (v) of the preceding sentence but such action has been ordered by the Board, the Advisor shall notify 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. 

Article 8 

Fees 
  

	8.1	 Acquisition Fees. As compensation for the investigation, selection, sourcing and acquisition or origination (by purchase, investment or
exchange) of Properties, Loans and other Permitted Investments, the Company shall pay an Acquisition Fee calculated as set forth below in this Section 8.1 to the Advisor or its assignees for each such investment (whether an acquisition
or origination). With respect to the acquisition or origination of a Property, Loan or other Permitted Investment to be owned, directly or indirectly, by the Company or the Partnership, the Acquisition Fee payable to the Advisor or its assignees
shall equal 1.0% of the sum of the amount actually paid or allocated to fund the acquisition, origination, development, construction or improvement of the Property, Loan or other Permitted Investment, inclusive of the Acquisition Expenses associated
with such Property, Loan or other Permitted Investment and the amount of any debt associated with, or used to fund the investment in, such Property, Loan or other Permitted Investment, but exclusive of the Acquisition Fee payable to the Advisor or
its assignees. The calculation of Acquisition Fees payable to the Advisor or its assignees will also include any amounts incurred or reserved for capital expenditures that will be used to provide funds for capital improvements and repairs applied to
any real property investment acquired where the Company 

  

 16 

	 	 
plans to add value. With respect to the acquisition or origination of a Property, Loan or other Permitted Investment through any Joint Venture or any partnership in which the Company or the
Partnership is, directly or indirectly, a co-venturer or partner, the Acquisition Fee payable to the Advisor or its assignees shall equal 1.0% of the portion that is attributable to the Company’s or the Partnership’s direct or indirect
investment in such Joint Venture or partnership of the amount actually paid or allocated to fund the acquisition, origination, development, construction or improvement of the Property, Loan or other Permitted Investment, inclusive of the Acquisition
Expenses associated with such Property, Loan or other Permitted Investment, plus the amount of any debt associated with, or used to fund the investment in, such Property, Loan or other Permitted Investment, but exclusive of the Acquisition Fee so
payable to the Advisor or its assignees. The Advisor shall submit an invoice to the Company following the closing or closings of each acquisition or origination, accompanied by a computation of the Acquisition Fee. The Acquisition Fee payable to the
Advisor or its assignees shall be paid at the closing of the transaction upon receipt of the invoice by the Company. 

  

	8.2	Asset Management Fee. The Company shall pay the Advisor or its assignees as compensation for the services described in Section 3.3 hereof a quarterly
fee (the “Asset Management Fee”) in an amount equal to 0.25% of the Management Fee Base. The Asset Management Fee is payable quarterly in advance, on January 1, March 1, July 1 and October 1, in the
amount of 0.25% of the Management Fee Base for the preceding fiscal quarter. The Advisor shall submit an invoice to the Company, accompanied by a computation of the Asset Management Fee for the applicable period. The Asset Management Fee will be
appropriately pro rated for any partial fiscal quarter. 

  

	8.3	 Disposition Fees. If the Advisor or Sub-advisor or any of their Affiliates provides a substantial amount of services (as determined by the
Conflicts Committee) in connection with a Sale, then the Advisor or its assignees shall receive a fee at the closing (a “Disposition Fee”) equal to 2.0% of the Contract Sales Price; provided, however, that no
Disposition Fee shall be payable if the Sale is to an Affiliate of either the Advisor or the Sub-Advisor; provided further, however, that the payment of any Disposition Fees by the Company shall be subject to any limitations contained
in the Company’s Articles of Incorporation. Any Disposition Fee payable under this Section 8.3 may be paid in addition to commissions paid to non-Affiliates, provided that the total commissions (including such Disposition Fee) paid
to all Persons by the Company for each Sale shall not exceed an amount equal to the lesser of (i) 6.0% of the aggregate Contract Sales Price of each applicable Property, Loan or other Permitted Investment and (ii) the Competitive Real
Estate Commission for each applicable Property, Loan or other Permitted Investment. Substantial assistance in connection with the Sale of a Property includes the preparation of an investment package for the Property (including a new investment
analysis, rent rolls, tenant information regarding credit, a property title report, an environmental report, a list of prospective buyers, a structural report and exhibits) or such other substantial

  

 17 

	 	 
services performed by the Advisor or Sub-advisor or any of their Affiliates in connection with a Sale. The Disposition Fee payable to the Advisor or its assignees shall be paid at the closing of
the transaction upon receipt of the invoice by the Company. 

  

	8.4	Financing Fee. In the event of any debt financing obtained by or for the Company, the Company will pay to the Advisor or its assignees upon the
closing of such debt financing a fee (a “Financing Fee”) equal to (i) 0.75% of the amount available under such debt financing, whether at the Company, Partnership, or any direct or indirect subsidiary level, and (ii) 0.75%
of the portion that is attributable to the Company’s or the Partnership’s direct or indirect investment in a Joint Venture or partnership in which the Company or the Partnership is, directly or indirectly, a co-venturer or partner. The
Advisor (or Sub-advisor) may reallow all or a portion of any Financing Fee to reimburse a non-Affiliated third party with whom it may subcontract to procure any such debt financing. All or any portion of the Financing Fees not taken as to any fiscal
year shall be deferred without interest and may be paid in such other fiscal year as the Advisor shall determine. 

  

	8.5	Subordinated Share of Cash Flows. The Company will pay, from time to time when available, Subordinated Share of Cash Flows to the
Advisor or its assignees in an amount equal to 15% of Operating Cash Flow and 15% of Cash from Sales, Settlements and Financings remaining after the Stockholders have received Distributions of Operating Cash Flow and of Cash from Sales, Settlements
and Financings such that the owners of all outstanding Shares have received Distributions in an aggregate amount equal to the sum of, as of such point in time: 

 

	 	(A)	the Stockholders’ 7% Return; and 

  

	 	(B)	Invested Capital. 

 When
determining whether the above threshold has been met: 
  

	 	(1)	Any stock dividend shall not be included as a Distribution; and 

  

	 	(2)	Distributions paid on Shares repurchased or redeemed by the Company (and thus no longer included in the determination of Invested Capital) shall not be included as a
Distribution. 

 Following Listing, no Subordinated Share of Cash Flows will be paid to the Advisor or its
assignees. 
  

	8.6	 Subordinated Incentive Fee. Upon Listing, the Advisor or its assignees shall be entitled to the Subordinated Incentive Fee in an
amount equal to 15.0% of the amount by which (i) the market value of the outstanding Shares, measured by taking the average closing price or the average of the bid and asked price, as the case may be, over a period of 30 days during which the
Shares are traded, with such period beginning 180 days after Listing (the “Market Value”), plus the total of all Distributions paid to Stockholders (excluding any stock dividends and any

  

 18 

	 	 
Distributions paid on Shares that have been repurchased or redeemed by the Company) from the Company’s inception until the date that Market Value is determined, exceeds (ii) the sum of
(A) 100% of Invested Capital and (B) the total Distributions required to be paid to the Stockholders as of the date Market Value is determined in order to pay the Stockholders’ 7% Return from inception through the date Market Value is
determined. The Company shall have the option to pay such fee in the form of cash, Shares, a promissory note or any combination of the foregoing. The Subordinated Incentive Fee will be reduced by the amount of any prior payments to the Advisor or
its assignees of Subordinated Share of Cash Flows. In the event the Subordinated Incentive Fee is paid to the Advisor or its assignees following Listing, no additional Subordinated Share of Cash Flows will be paid to the Advisor.

  

	8.7	Other Services. Should the Board request that the Advisor or the Sub-advisor or any Affiliate or director, officer or employee of any
of the foregoing render services for the Company other than as set forth in this Agreement, such services shall be separately compensated at such rates and in such amounts as are agreed upon by the Advisor, Sub-advisor or such Affiliate or other
Person, on the one hand, and the Board, including a majority of the Conflicts Committee, on the other hand, 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. 

  

	8.8	Changes to Fee Structure. In the event of Listing, the Company and the Advisor shall negotiate in good faith to establish a fee structure appropriate for a
perpetual-life entity. 

  

	8.9	Limitation on Acquisition Fees, Acquisition Expenses and Financing Fees. Notwithstanding anything herein to the contrary, the payment
of Acquisition Fees, Acquisition Expenses and Financing Fees by the Company shall be subject to the limitations thereon contained in the Articles of Incorporation. 

Article 9 

Expenses 
  

	9.1	General. In addition to the compensation paid to the Advisor pursuant to Article 8 hereof, the Company shall pay directly or reimburse
the Advisor or Sub-advisor, as the case may be, for all of the expenses paid or incurred by the Advisor, the Sub-advisor or their Affiliates on behalf of the Company or in connection with the services provided to the Company pursuant to this
Agreement, including, but not limited to: 

  

	 	(A)	All Organization and Offering Expenses; provided, however, that: 

 

	 	(1)	 the Company shall not reimburse the Advisor or Sub-advisor to the extent such reimbursement would cause the total amount spent by the Company on
Organization and Offering Expenses (excluding underwriting and brokerage discounts and commissions, but 

  

 19 

	 	 
including third-party due diligence fees and expenses as set forth in detailed and itemized invoices) to exceed 1.5% of Gross Proceeds raised in an Offering as of the termination of such
Offering; 

  

	 	(2)	within 60 days after the end of the month in which an Offering terminates, the Advisor shall reimburse the Company to the extent the Company incurred Organization and
Offering Expenses (excluding underwriting and brokerage discounts and commissions, but including third-party due diligence fees and expenses as set forth in detailed and itemized invoices) exceeding 1.5% of Gross Proceeds raised in such Offering;

  

	 	(3)	the Company shall not reimburse the Advisor or Sub-advisor for any Organization and Offering Expenses that the Conflicts Committee determines are not fair and
commercially reasonable to the Company; and 

  

	 	(4)	the Company shall not make any reimbursement for any of the following Organization and Offering Expenses incurred by the Dealer Manager that are to be paid out of the
Dealer Manager’s fee: 

  

	 	(a)	participating broker-dealer expense reimbursements (including meals with financial advisors and participating broker-dealer client seminars); 

 

	 	(b)	sales seminars sponsored by participating broker-dealers; 

  

	 	(c)	promotional items; 

  

	 	(d)	marketing support; 

  

	 	(e)	expenses in connection with bona fide training and educational meetings; 

  

	 	(f)	wholesaling commissions, wholesaling salaries and wholesaling expense reimbursements (including travel, meals and lodging in connection with the Offering);

  

	 	(g)	occasional meals and entertainment expenses of participating broker-dealers; and 

 

	 	(h)	legal fees and expenses of the Dealer Manager associated with FINRA-related filings or the drafting and review of any dealer manager agreements, participating
broker-dealer agreements and due diligence agreements. 

  

 20 

	 	(B)	Acquisition Fees and Acquisition Expenses incurred in connection with the selection and acquisition of Properties, Loans and other Permitted Investments, including such
expenses incurred related to assets pursued or considered but not ultimately acquired by the Company; provided, however, that, notwithstanding anything herein to the contrary, the payment of Acquisition Fees and Acquisition Expenses by
the Company shall be subject to the limitations contained in the Company’s Articles of Incorporation; 

  

	 	(C)	The actual out-of-pocket cost of goods and services used by the Company and obtained from entities not Affiliated with the Advisor or Sub-advisor, including travel,
meals and lodging expenses incurred by the Advisor or Sub-advisor in performing duties associated with the acquisition or origination of Properties, Loans or other Permitted Investments; 

 

	 	(D)	Interest and other costs for borrowed money, including discounts, points and other similar fees; 

 

	 	(E)	Taxes and assessments on income or Properties, taxes as an expense of doing business and any other taxes otherwise imposed on the Company and its business, assets or
income; 

  

	 	(F)	Out-of-pocket costs associated with insurance required in connection with the business of the Company or by its officers and Directors; 

 

	 	(G)	Expenses of managing, improving, developing, operating and selling Properties, Loans and other Permitted Investments owned, directly or indirectly, by the Company, as
well as expenses of other transactions relating to such Properties, Loans and other Permitted Investments, including prepayments, maturities, workouts and other settlements of Loans and other Permitted Investments; 

 

	 	(H)	All out-of-pocket expenses in connection with payments to the Board and meetings of the Board and Stockholders; 

 

	 	(I)	All out-of-pocket expenses associated with a Listing, if applicable; 

  

	 	(J)	Personnel and related employment costs incurred by the Advisor, the Sub-advisor or their Affiliates in performing the services described in Article 3 hereof,
including reasonable salaries and wages (but excluding bonuses), 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, Sub-advisor or their Affiliates to the extent that such employees performed services for which the Advisor received Acquisition Fees, Financing Fees or Disposition Fees; 

 

 21 

	 	(K)	Out-of-pocket expenses of providing services for and 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; 

  

	 	(L)	Audit, accounting and legal fees, and other fees for professional services relating to the operations of the Company and all such fees incurred at the request, or on
behalf of, the Board, the Conflicts Committee or any other committee of the Board; 

  

	 	(M)	Out-of-pocket costs for the Company to comply with all applicable laws, regulations and ordinances; 

 

	 	(N)	Expenses connected with payments of Distributions made or caused to be made by the Company to the Stockholders; 

 

	 	(O)	Expenses of organizing, redomesticating, merging, liquidating or dissolving the Company or of amending the Articles of Incorporation or the Bylaws; and

  

	 	(P)	All other out-of-pocket costs incurred by the Advisor or Sub-advisor in performing the Advisor’s duties hereunder. 

 

	9.2	Timing of and Additional Limitations on Reimbursements. 

  

	 	(A)	Expenses incurred by the Advisor or Sub-advisor on behalf of the Company and reimbursable pursuant to this Article 9 shall be reimbursed no less than monthly to
the Advisor or Sub-advisor in the manner and proportion directed by the Advisor and Sub-advisor. The Advisor shall prepare a statement documenting the expenses of the Company during each quarter and shall deliver such statement to the Company within
45 days after the end of each quarter. 

  

	 	(B)	Notwithstanding anything else in this Article 9 to the contrary, the expenses enumerated in this Article 9 shall not become reimbursable to the Advisor
unless and until the Company has raised $2,500,000 in the Initial Public Offering. 

  

	 	(C)	 Commencing upon the earlier to occur of the end of the fourth fiscal quarter after (1) the Company’s acquisition of its first real estate
asset and (2) six months after the commencement of the Initial Public Offering, the following limitation on Operating Expenses shall apply: The Company shall not reimburse the Advisor or Sub-advisor at the end of any fiscal quarter for the
portion of Operating Expenses that in the four consecutive fiscal quarters then ended (the “Expense Year”) exceeds (the “Excess Amount”) the greater of (i) 2% of Average Invested Assets and (ii) 25% of Net
Income (the “2%/25% Guidelines”) for such year unless the Conflicts Committee determines that the Excess Amount was justified, 

 

 22 

	 	 
based on unusual and nonrecurring factors that the Conflicts Committee deems sufficient. If the Conflicts Committee does not approve the Excess Amount as being so justified, the Advisor or
Sub-advisor shall repay to the Company any Excess Amount paid to the Advisor or Sub-advisor during a fiscal quarter. If the Conflicts Committee determines the Excess Amount was justified, then, within 60 days after the end of any fiscal quarter of
the Company for which total reimbursed Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, the Advisor, at the direction of the Conflicts Committee, shall cause such fact to be disclosed to the Stockholders in writing (or the
Company shall disclose such fact to the Stockholders in the next quarterly report of the Company or by filing a Current Report on Form 8-K with the SEC within 60 days of such quarter end), together with an explanation of the factors the Conflicts
Committee considered in determining that the Excess Amount was justified. The Company will ensure that such determination will 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. 

 Article 10 

Voting Agreement 
  

	10.1	 Election of Directors. The Company agrees that it will take such actions that are necessary to cause William M. Kahane, Nicholas Schorsch or
another representative of the Advisor reasonably satisfactory to the Company and Sub-advisor to be a member of the initial Board of Directors of the Company if such representative executes an advance letter of resignation to become effective upon
such time that the Advisor is no longer serving as the advisor to the Company. The Company agrees that if a representative of the Advisor is not a member of the Board of Directors of the Company during the Observer Period, the Advisor shall have the
right to appoint William Kahane, Nicholas Schorsch or another representative of the Advisor reasonably satisfactory to Company and the Sub-advisor as a board observer (the “Board Observer”) who shall be entitled to attend all
meetings of the Company’s Board of Directors and all committees thereof (excluding any committee meeting of independent directors to which none of the Company’s management and non-independent directors is invited), participate in
discussions of matters before the Board or any committee thereof and receive copies of all materials furnished to the Board or any committee thereof, including notices, minutes, consents and any and all other materials provided to directors (other
than any materials that outside counsel for the Company has reasonably determined in writing that the furnishing thereof to the Board Observer would result in the loss of the Company’s attorney/client privilege); provided,
however, that the Board Observer shall have no voting rights with respect to actions taken or elected not to be taken by the Board or any committee thereof. Prior to attending any meeting of the Board or a committee thereof, the Board
Observer shall agree in writing to a customary confidentiality 

  

 23 

	 	 
agreement. As used herein, “Observer Period” means the earlier to occur of (i) the fifth anniversary of the effective date of the Initial Public Offering and (ii) if
the Company terminates this Agreement, the effective date of such termination. 

  

	10.2	Other Voting of Shares. The Advisor agrees that, with respect to any Shares now or hereinafter owned by it, the Advisor will not vote or consent on matters
submitted to the stockholders of the Company regarding (i) the removal of the Advisor or any Affiliate of the Advisor or (ii) any transaction between the Company and the Advisor or any of its Affiliates. This voting restriction shall
survive until such time that the Advisor is no longer serving as such. 

 Article 11 

Relationship Of Advisor And Company; Other Activities Of The Advisor 

 

	11.1	Relationship. The Company and the Advisor are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such
partners or joint venturers. Except as set forth in Section 11.3, nothing herein contained shall prevent the Advisor or any of its Affiliates from engaging in or earning fees from other activities, including, without limitation, the
rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor or any of its Affiliates. Nor shall this Agreement limit or restrict the right of any manager, director,
officer, member, partner, employee or equityholder 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. 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 other similar co-investment 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 promptly disclose to the Board the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, that creates or which
would reasonably result in a conflict of interest between the Advisor’s obligations to the Company and its obligations to or its interest in any other Person (it being understood and agreed that the conditions and circumstances referred to in
the second paragraph of Section 11.3 are deemed to have been disclosed to the Board for purposes of this Section 11.1). 

  

	11.2	 Time Commitment. The Advisor shall, and shall cause its Affiliates and their respective employees, officers and agents to, devote to the Company
such time as shall be reasonably necessary to conduct the business and affairs of the Company in an appropriate manner consistent with the terms of this Agreement. The Company acknowledges that the Advisor and its Affiliates and their respective

  

 24 

	 	 
employees, officers and agents may also engage in activities unrelated to the Company and may provide services to Persons other than the Company or any of its Affiliates.

  

	11.3	Investment Opportunities. The Advisor shall be required to use commercially reasonable efforts to present a continuing and suitable investment program to the
Company that is consistent with the investment policies and objectives of the Company. So long as the Advisor is acting in its capacity as advisor under this Agreement, the Advisor will not (and will cause its Affiliates to not) (i) pursue any
opportunity to acquire any Property, Loan or other Permitted Investment that fits within the Company’s strategy, or (ii) offer such Property, Loan or other Permitted Investment to a third party, in each case unless and until such
opportunity is first presented to the Company. The Company shall have 30 days from the date of its receipt of a complete written offering package relating to such opportunity, customary in scope and content, to notify the Advisor of the
Company’s decision as to whether or not to pursue such opportunity. If the Company fails so to notify the Advisor within such 30-day period, the Company shall be deemed to have passed on such opportunity. If the Company passes on such
opportunity, then the Advisor or such Affiliate, as the case may be, may acquire the subject investment or offer the subject investment to a third party for a period of 180 days, in each case on terms and conditions (including price) that are not
materially different from the terms and conditions set forth in the offering package to the Company. If at the expiration of such 180-day period, such opportunity remains available, then the provisions of this Section 11.3 shall once
again apply to such opportunity. 

 Notwithstanding the preceding, however, the Advisor or any Affiliate of the
Advisor shall be permitted to pursue any opportunity or to offer any opportunity to a third party in respect of (i) any net leased retail, office and industrial properties or other property consistent with the investment policies of American
Reality Capital Trust, Inc., (ii) any commercial real estate or other real estate investments that relate to office, retail, multi-family residential, industrial and hotel property types, located primarily in the New York metropolitan area or
other property consistent with the investment policies of American Realty Capital New York Recovery REIT, Inc., or (iii) any investments to be made by a contemplated non-traded REIT (the “Identified REIT”) that the Advisor or
any of its Affiliates described as (a) intending to invest primarily in “power center” real estate developments, (b) being sponsored or co-sponsored by ARC (or one of its Affiliates), the acquisition services for which will be
provided by an international commercial and residential real estate developer and manager (or one of its Affiliates), and (c) being the subject of an executed letter of intent or term sheet between the Advisor (or one of its Affiliates) and
such international commercial and residential real estate developer and manager (or one of its Affiliates), and which has or will have as its publicly disclosed (and not subsequently revised or required to be revised under applicable securities
laws) investment objectives to have less than 20% of its assets (measured by purchase price) in anchored 
  

 25 

 
shopping centers with purchase prices of less than $20,000,000 per property (determined once the proceeds of the offering have been fully invested). 

Article 12 

The Phillips Edison and ARC Names 
  

	12.1	The American Realty Capital and ARC Names. 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” or “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” or “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 any of the names “American Realty
Capital,” “ARC” or “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” or “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” or “AR Capital” licensed hereunder or the use thereof (including without limitation as to whether the use of the name “American Realty Capital,” “ARC” or “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” or “AR Capital.” 

  

 26 

	12.2	The Phillips Edison and PECO Names. The Sub-advisor and its Affiliates have or may have a proprietary interest in the names “Phillips Edison” and
“PECO.” The Sub-advisor hereby grants to the Company, to the extent of any proprietary interest the Sub-advisor may have in the names “Phillips Edison” and “PECO,” a non-transferable, non-assignable, non-exclusive
royalty-free right and license to use the names “Phillips Edison” and “PECO” during the term of this Agreement. The Company and Advisor agree that the Sub-advisor and its Affiliates will have the right to approve of any use by
the Company of the names “Phillips Edison” or “PECO,” such approval not to be unreasonably withheld or delayed. Accordingly, and in recognition of this right, if at any time the Advisor ceases to retain the Sub-advisor or one of
its Affiliates to perform advisory services for the Company, the Company will, promptly after receipt of written request from the Sub-advisor, cease to conduct business under or use the names “Phillips Edison” and “PECO” 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 any of the names “Phillips Edison” and “PECO” or any other word or words that might, in the
reasonable discretion of the Sub-advisor, be susceptible of indication of some form of relationship between the Company and the Sub-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 any of the names “Phillips Edison” or “PECO.” Consistent with the foregoing, it is specifically recognized that the Sub-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 the names “Phillips Edison” or
“PECO” 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 Sub-advisor nor any of its Affiliates makes any representation or warranty, express or implied, with
respect to the names “Phillips Edison” or “PECO” licensed hereunder or the use thereof (including without limitation as to whether the use of the name “Phillips Edison” or “PECO” will be free from infringement
of the intellectual property rights of third parties). Notwithstanding the preceding, the Sub-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 “Phillips Edison” or “PECO.” 

 Article 13 

Term And Termination Of The Agreement 
  

	13.1	Term. This Agreement shall have an initial term of one year from the date hereof and may be renewed for an unlimited number of successive one-year terms upon
mutual consent of the parties. The Company (acting through the Conflicts Committee) will evaluate the performance of the Advisor annually before renewing this Agreement, and each such renewal shall be for a term of no more than one year. Any such
renewal must be approved by the Conflicts Committee. 

  

 27 

	13.2	Termination by Either Party. This Agreement may be terminated upon 60 days’ written notice without cause or penalty by either the Company (acting through
the Conflicts Committee) or the Advisor. The provisions of Section 14.2 and Articles 1, 12, 13, 15 and 16 (other than Section 16.11) shall survive termination of this Agreement.
Notwithstanding anything else that may be to the contrary herein, the expiration or earlier termination of this Agreement shall not relieve a party for liability for any breach occurring prior to such expiration or earlier termination.

  

	13.3	Payments on Termination and Survival of Certain Rights and Obligations. 

 

	 	(A)	After the Termination Date, the Advisor shall not be entitled to compensation for further services hereunder except the Advisor (and its assignees, including the
Sub-advisor) shall be entitled to receive from the Company within 30 days after the effective date of such termination (1) all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Advisor or its assignees prior to
termination of this Agreement and (2) the Subordinated Performance Fee Due Upon Termination; provided, that no Subordinated Performance Fee Due Upon Termination will be paid if the Company has paid or is obligated to pay the Subordinated
Incentive Fee. 

  

	 	(B)	The Advisor shall promptly upon termination: 

  

	 	(1)	pay over to the Company all money collected and held on behalf of the Company pursuant to this Agreement, if any, after deducting any accrued compensation and
reimbursement for its expenses to which it is then entitled; 

  

	 	(2)	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; 

  

	 	(3)	deliver to the Board all assets and documents of the Company then in the custody of the Advisor; and 

 

	 	(4)	cooperate with the Company to provide an orderly transition of advisory functions. 

 

	 	(C)	After the Termination Date, the Sub-advisor shall be entitled to receive from the Company, within 30 days after the effective date of such termination (1) all
unpaid reimbursements of expenses and all earned but unpaid fees payable to the Sub-advisor prior to the termination of this Agreement and (2) the Sub-advisor’s share of the Subordinated Performance Fee Due Upon Termination, if any;
provided, that no Subordinated Performance Fee Due Upon Termination will be paid if the Company has paid or is obligated to pay the Subordinated Incentive Fee. 

 

 28 

	 	(D)	After the termination of the Sub-advisory Agreement, to the extent payments are not provided for by Section 13.3(C) (i.e., if the Sub-advisory
Agreement is terminated independently of the Advisory Agreement), the Sub-advisor shall be entitled to receive from the Company, within 30 days after the effective date of such termination, all unpaid reimbursements of expenses and all earned but
unpaid fees payable to the Sub-advisor prior to the termination of the Sub-advisory Agreement. 

  

	 	(E)	Promptly upon the termination of the Sub-advisory Agreement, the Sub-advisor shall promptly upon such termination: 

 

	 	(1)	pay over to the Company all money, if any, collected and held on behalf of the Company pursuant to the Sub-advisory Agreement after deducting any accrued compensation
and reimbursement for its expenses to which it is then entitled; 

  

	 	(2)	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; 

  

	 	(3)	deliver to the Board all assets and documents of the Company then in the custody of the Sub-advisor; and 

 

	 	(4)	cooperate with the Company to provide an orderly transition of advisory or sub-advisory functions. 

 

	 	(F)	 The “Subordinated Performance Fee Due Upon Termination” means an amount equal to: (1) 15% of the amount, if any, by which
(i) the Appraised Value of the Properties at the Termination Date, less amounts of all indebtedness secured by such Properties at the Termination Date, plus the fair market value of all Loans and Permitted Investments of the Company at the
Termination Date, less amounts of indebtedness related to such Loans and Permitted Investments at the Termination Date, plus total Distributions (excluding any stock dividends and Distributions paid on Shares that have been repurchased or redeemed
by the Company) through the Termination Date exceeds (ii) the sum of Invested Capital as of the Termination Date, plus total Distributions required to be made to the Stockholders in order to pay the Stockholders’ 7% Return from inception
through the Termination Date to the Stockholders as of the Termination Date; less (2) any prior payments to the Advisor and/or Sub-advisor (as applicable) of Subordinated Share of Cash Flows. The Advisor and Sub-advisor may each elect to
defer its respective right to receive the Subordinated Performance Fee Due Upon Termination (or its applicable portion thereof) until (x) a Listing, (y) a merger in which the Stockholders receive in exchange for their Shares shares of a
company that are traded on a national securities exchange, or (z) any other liquidity event occurs, 

  

 29 

	 	 
including a liquidation, sale of substantially all of the Company’s assets (an “Other Liquidity Event”). 

 

	 	(G)	If either the Advisor or Sub-advisor or both elect to defer their right to receive the Subordinated Performance Fee Due Upon Termination (or its applicable portion
thereof) and there is a Listing or a merger in which the Stockholders receive in exchange for their Shares shares of a company that are traded on a national securities exchange, then the Advisor and/or Sub-advisor (each to the extent entitled
pursuant to the assignment of such right to payment between the Advisor and Sub-advisor) will be entitled to receive the Subordinated Performance Fee Due Upon Termination (or its applicable portion thereof) in an amount equal to: (1) 15% of the
amount, if any, by which (i) the Appraised Value of the Company’s Properties (determined by appraisal as of the date of Listing or merger, as applicable) owned as of the Termination Date, less amounts of all indebtedness secured by the
Company’s Properties at the Termination Date, plus the fair market value of all Loans and Permitted Investments of the Company at the Termination Date, less amounts of indebtedness related to such Loans and Permitted Investments at the
Termination Date, plus any assets acquired after Termination for which the Advisor or Sub-advisor would have been entitled to receive an Acquisition Fee (referred to herein as the “included assets”), less amounts of indebtedness related to
such included assets as of the date of Listing or merger, as applicable, plus total Distributions (excluding any stock dividends and Distributions paid on Shares that have been repurchased or redeemed by the Company) through the date of Listing or
merger, as applicable, exceeds (ii) the sum of Invested Capital as of the date of Listing or merger, as applicable, plus total Distributions required to be made to the Stockholders in order to pay the Stockholders’ 7% Return from inception
through the date of Listing or merger, as applicable, to the Stockholders as of the date of Listing or merger, as applicable; less (2) any prior payments to the Advisor and/or Sub-advisor (as applicable) of Subordinated Share of Cash
Flows. 

  

	 	(H)	 If the Advisor or Sub-advisor or both elect to defer their right to receive the Subordinated Performance Fee Due Upon Termination (or its applicable
portion thereof) and there is an Other Liquidity Event, then the Advisor and/or Sub-advisor (each to the extent entitled pursuant to the assignment of such right to payment between the Advisor and Sub-advisor) will be entitled to receive the
Subordinated Performance Fee Due Upon Termination (or its applicable portion thereof) in an amount equal to: (1) 15% of the amount, if any, by which (i) the net sales proceeds of the Company’s assets that were owned at the Termination
Date, plus total Distributions (excluding any stock dividends and Distributions paid on Shares that have been repurchased or redeemed by the Company) through the date of the Other Liquidity Event exceeds (ii) the sum of Invested Capital as of
the date of the Other Liquidity Event plus total Distributions required to be made to the Stockholders in order to pay the Stockholders’ 

 

 30 

	 	 
7% Return from inception through the date of the Other Liquidity Event to the Stockholders as of the date of the Other Liquidity Event; less (2) any prior payments to the Advisor
and/or Sub-advisor (as applicable) of Subordinated Share of Cash Flows. 

 Article 14 

Assignment 
  

	14.1	Assignment of Agreement. This Agreement may be assigned by the Advisor to an Affiliate with the consent of the Conflicts Committee. This Agreement shall not be
assigned by the Company without the consent of the Advisor, except in the case of an assignment by the Company to a corporation or other organization that is a successor to all of the assets, rights and obligations of the Company, in which case such
successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company is bound by this Agreement. 

  

	14.2	Assignment of Payments. The Advisor may assign any rights to receive fees or other payments under this Agreement without obtaining the approval of the Board or
Conflicts Committee, and the Company shall honor and pay directly the assignee of such assignment. 

 Article 15

 Indemnification And Limitation Of Liability 

 

	15.1	Indemnification. Except as prohibited by the restrictions provided in this Section 15.1, Section 15.2 and Section 15.3, the
Company shall indemnify, defend and hold harmless the Advisor, the Sub-advisor and their Affiliates, as well as their respective officers, directors, equity holders, members, partners and employees, from all liability, claims, damages or losses
arising in the performance of their duties hereunder or under any sub-advisory agreement, and related expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully
reimbursed by insurance. Any indemnification of the Advisor or Sub-advisor may be made only out of the net assets of the Company and not from Stockholders. 

Notwithstanding the foregoing, the Company shall not indemnify the Advisor or Sub-advisor or their Affiliates, as well as their respective
officers, directors, equity holders, members, partners and employees, for any loss, liability or expense arising from or out of an alleged violation of federal or state securities laws by such party 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 material securities law violations as to the particular indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a
court of competent jurisdiction as to the particular indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against a particular indemnitee 

 

 31 

 
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 were offered or sold as to indemnification for violations of securities laws. 

 

	15.2	Limitation on Indemnification. Notwithstanding the foregoing, the Company shall not provide for indemnification of the Advisor, the Sub-advisor or their
Affiliates or of their respective officers, directors, equity holders, members, partners and employees, for any liability or loss suffered by any of them, nor shall any of them be held harmless for any loss or liability suffered by the Company,
unless all of the following conditions are met: 

  

	 	(A)	The Advisor, the Sub-advisor or one of their Affiliates (as applicable) has determined, in good faith, that the course of conduct that caused the loss or liability was
in the best interests of the Company. 

  

	 	(B)	The Advisor, the Sub-advisor or one of Affiliates (as applicable) was acting on behalf of or performing services for the Company. 

 

	 	(C)	Such liability or loss was not the result of negligence or misconduct by the Advisor, the Sub-advisor or one of their Affiliates (as applicable).

  

	15.3	Limitation on Payment of Expenses. The Company shall pay or reimburse reasonable legal expenses and other costs incurred by any of the Advisor, the Sub-advisor
or their Affiliates, or by any of their respective officers, directors, equity holders, members, partners and employees, in advance of the final disposition of a proceeding only if (in addition to any applicable procedures required by the Maryland
General Corporation Law, as amended from time to time) all of the following are satisfied: (a) the proceeding relates to acts or omissions with respect to the performance of duties or services on behalf of the Company; (b) the legal
proceeding was initiated by a third party who is not a stockholder or, if by a stockholder acting in his or her capacity as such, a court of competent jurisdiction approves such advancement; and (c) such Person undertakes to repay the amount
paid or reimbursed by the Company, together with the applicable legal rate of interest thereon, if it is ultimately determined that such Person is not entitled to indemnification. 

Article 16 

Miscellaneous 
  

	16.1	 Notices. Any notice, request, demand, approval, consent, waiver or other communication required or permitted to be given hereunder or to be
served upon any of the parties hereto (each a “Notice”) shall be in writing and shall be (a) delivered in person, (b) sent by facsimile transmission (with the original thereof also contemporaneously given by another method
specified in this Section 16.1), 

  

 32 

	 	 
(c) sent by a nationally-recognized overnight courier service, or (d) sent by certified or registered mail (postage prepaid, return receipt requested), to the address of such party set forth
herein. 

 To the Company or the Board: 

Phillips Edison – ARC Shopping Center REIT Inc. 

11501 Northlake Drive 

Cincinnati, OH 45249 

with a copy to (which shall not constitute Notice): 

DLA Piper LLP (US) 

4141 Parklake Drive , Suite 300 

Raleigh, North Carolina 27612 

Attention: Robert Bergdolt 

Telephone: (919) 786-2002 

Facsimile: (919) 786-2202 

To the Advisor: 

American Realty Capital II Advisors, LLC 

405 Park Avenue 

New York, New York 10022 

Attention: Nicholas S. Schorsch 

                  Jesse Galloway 

with a copy to (which shall not constitute Notice): 

Proskauer Rose LLP 

1585 Broadway 

New York, New York 10036 

Attention: Peter M. Fass, Esq. 

                  James P. Gerkis, Esq.

 Telephone: (212) 969-3000 

Facsimile: (212) 969-2900 

To the Sub-advisor: 

Phillips Edison NTR LLC 

11501 Northlake Drive 

Cincinnati, OH 45249 

with a copy to (which shall not constitute Notice): 

DLA Piper LLP (US) 

4141 Parklake Drive, Suite 300 

 

 33 

 
Raleigh, North Carolina 27612 
 Attention: Robert Bergdolt 

Telephone: (919) 786-2002 

Facsimile: (919) 786-2202 

Any party may at any time give Notice in writing to the other party of a change in its address for the purposes of this
Section 16.1. Each Notice shall be deemed given and effective upon receipt (or refusal or receipt). 
  

	16.2	Modification. This Agreement shall not be amended, supplemented, changed, modified, terminated or discharged, in whole or in part, except by an instrument in
writing signed by the Company and the Advisor, or their respective successors or permitted assigns; provided, however, that no modification that impacts the rights or obligations of the Sub-advisor may be made without the
Sub-advisor’s consent and signature. 

  

	16.3	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. 

  

	16.4	Construction. 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. 

  

	16.5	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 and/or usage of the trade inconsistent with any of the terms hereof. In all events, nothing contained herein shall be read, construed, interpreted or applied in any manner that prevents or hinders the Company from
qualifying as a real estate investment trust under Section 856(c) of the Code. 

  

	16.6	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. 

  

 34 

	16.7	Gender. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural,
and any other gender, masculine, feminine or neuter, as the context requires. 

  

	16.8	Titles Not to Affect Interpretation. The titles of Articles and Sections 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. 

  

	16.9	Third Party Beneficiary. The Sub-advisor is intended to be a third party beneficiary of the Company’s payment and indemnification obligations hereunder.
Except as set forth in the immediately preceding sentence and except for those Persons entitled to indemnification under Article 15 who shall be third party beneficiaries of this Agreement, no other Person is a third party beneficiary of this
Agreement. 

  

	16.10	Counterparts. This Agreement may be executed 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. This Agreement shall become binding when one or more counterpart signature pages or counterparts hereof, individually or
taken together, shall bear the signatures of all of the parties reflected hereon as the signatories. 

  

	16.11	Restricted Stock. Each of the Company, the Advisor and the Sub-advisor agrees that no restricted stock awards or grants shall be made by the Company to any
Persons other than to (a) both the Advisor and the Sub-advisor, or (b) the members of the Conflicts Committee. To the extent that the Company makes restricted stock awards or grants to the Advisor and the Sub-advisor, the Company shall
issue (and the Advisor and the Sub-advisor shall use reasonable efforts to cause the Company to issue) 15% of such restricted stock awards or grants to the Advisor and 85% of such restricted stock awards or grants to the Sub-advisor. In turn, each
of the Advisor and the Sub-advisor may allocate, in its sole discretion and as it may determine, all or any part of such restricted stock award or grant so issued to it to its or its Affiliates’ directors, officers, equityholders, partners,
employees, members or to its respective Affiliates on such terms and conditions as may be determined by it. Notwithstanding Section 13.2, the provision of this Section 16.11 shall terminate upon termination of this Agreement
in accordance with its terms. 	 

 [The remainder of this page is intentionally left blank. 

Signature page follows.] 
  

 35 

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

							
		 		 	Phillips Edison – ARC Shopping Center REIT Inc.
				
		 		 	By:	 	 /s/ John B. Bessey

		 		 		 	John B. Bessey, President
			
		 		 	American Realty Capital II Advisors, LLC
				
		 		 	By:	 	 /s/ William Kahane

		 		 		 	William Kahane, President
			
	With respect to Sections 12.2 and 13.3, Articles 9, 14, 15 and 16:	 		 	Phillips Edison NTR LLC (formerly known as Phillips Edison & Company SubAdvisor LLC)
	 		 	By:	 	  
 /s/ John B.
Bessey

		 		 		 	John B. Bessey, President

 [Signature
Page to Third Amended and Restated Advisory Agreement between Phillips Edison – ARC Shopping Center REIT Inc. 
 and
American Realty Capital II Advisors, LLC]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]