Document:

Exhibit 10.21

 

FORM OF ESCROW AGREEMENT

 

THIS SUBSCRIPTION ESCROW
AGREEMENT dated as of [●], 2014 (this “Agreement”), is entered into among Realty Capital Securities, LLC
(the “Dealer Manager”), American Realty Capital Daily Net Asset Value Trust, Inc. (the “Company”)
and UMB Bank, N.A., as escrow agent (the “Escrow Agent”).

 

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

 

WHEREAS, the Company desires to establish
an escrow account with the Escrow Agent for funds contributed by the Investors with the Escrow Agent in accordance with the Offering
Document, to be held for the benefit of the Investors and the Company until such time as (i) in the case of subscriptions received
from residents of Pennsylvania (“Pennsylvania Investors”), Securities sold in the Offering to all Investors
equal, in the aggregate, to $156,250,000 (the “Pennsylvania Minimum Amount”), (ii) in the case of subscriptions
received from residents of Washington (“Washington Investors”), Securities sold in the Offering to all Investors
equal, in the aggregate, to $20,000,000 (the “Washington Minimum Amount”) and (iii) in the case of subscriptions
received from all other Investors, Securities sold in the Offering equal the Minimum Amount, in each case in accordance with the
terms and subject to the conditions of this Agreement.

 

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

 

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

 

1.          Proceeds
to be Escrowed. On or before the date (the “Initial Effective Date”) the Offering Document was initially
declared effective by the Securities and Exchange Commission (the “SEC”), the Company shall establish an escrow
account with the Escrow Agent to be invested in accordance with Section 6 hereof entitled “ESCROW ACCOUNT FOR THE
BENEFIT OF INVESTORS OF COMMON STOCK OF AMERICAN REALTY CAPITAL Daily Net Asset Value Trust,
INC.” (including such abbreviations as are required for the Escrow Agent’s systems) (the “Escrow Account”).
All checks, wire transfers and other funds received from subscribers of Securities (“Investors”, which term
shall also include Washington Investors and Pennsylvania Investors unless the context otherwise requires) in payment for the Securities
(“Investor Funds”) will be delivered to the Escrow Agent within one (1) business day following the day upon
which such Investor Funds are received by the Company or its agents, and shall, upon receipt by the Escrow Agent, be retained in
escrow by the Escrow Agent and invested as stated herein. During the term of this Agreement, the Company or its agents shall cause
all checks received by and made payable to it in payment for the Securities to be endorsed for favor of the Escrow Agent and delivered
to the Escrow Agent for deposit in the Escrow Account.

 

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

 

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

 

    	 

    	 

    

  

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

 

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

 

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

 

3.          Disbursement
of Funds. Once proceeds from the sale of Securities equal the Minimum Amount (excluding Securities sold to Washington Investors
and Pennsylvania Investors), the Company shall notify the Escrow Agent of the same in writing. Further, if the Minimum Amount has
not been sold on or prior to the Termination Date, the Company shall notify the Escrow Agent in writing of such. At the end of
the third business day following the Termination Date (as defined in Section 6), the Escrow Agent shall notify the Company
of the amount of the Investor Funds received. If the Minimum Amount has been obtained on or before the Termination Date, the Escrow
Agent shall promptly notify the Company and, upon receiving acknowledgement of such notice and written instructions from the Company’s
Chief Executive Officer, President or Chief Financial Officer to disburse the Investor Funds, subject to Sections 3, 4
or 5, the Escrow Agent shall disburse to the Company, by check or wire transfer, the funds in the Escrow Account, except
for amounts payable by the Company to the Escrow Agent pursuant to Exhibit D to this Agreement that remain outstanding.
The Escrow Agent agrees that funds in the Escrow Account shall not be released to the Company until and unless the Escrow Agent
receives written instructions to release the funds from the Company’s Chief Executive Officer, President or Chief Financial
Officer.

 

    	 

    	 

    

  

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

 

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

 

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

 

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

 

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

 

    	 

    	 

    

  

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

 

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

 

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

 

6.          Term
of Escrow. This Escrow Agreement shall terminate (the “Termination Date”) on the earliest of: (i) [●],
2015, the one year anniversary of the Initial Effective Date, if the Minimum Amount has not been obtained prior to such date; (ii)
the close of business on [●], 2016, the two year anniversary of the Initial Effective Date; (iii) the date on which all funds
held in the Escrow Account are distributed to the Company or to Investors pursuant to Section 3 and for Pennsylvania Investors,
Section 4 and for Washington Investors, Section 5, and the Company has informed the Escrow Agent in writing to close
the Escrow Account; (iv) the date the Escrow Agent receives written notice from the Company that it is abandoning the sale of the
Securities; and (v) the date the Escrow Agent receives notice from the SEC or any other federal regulatory authority that a stop
or similar order has been issued with respect to the Offering Document and has remained in effect for at least twenty (20) days.
After the Termination Date, the Company and its agents shall not deposit, and the Escrow Agent shall not accept, any additional
amounts representing payments by prospective Investors.

 

    	 

    	 

    

  

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

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

    	 

    	 

    

  

If to the Company:

 

American Realty Capital Daily Net Asset Value Trust.

405 Park Avenue, 15th Floor

New York, New York 10022

Fax: (212) 421-5799

Attention: Nicholas S. Schorsch, Chief Executive Officer
and Chairman of the Board of Directors

 

with a copy to:

 

Proskauer Rose LLP

Eleven Times Square

New York, NY 10036-8299

Telephone: (212) 969-3000

Fax: (212) 969-2900

Attention: Peter M. Fass, Esq.

 

If to the Dealer Manager:

 

Realty Capital Securities, LLC

One Beacon Street, 14th Floor

Boston, MA 02108

Attention: Louisa H. Quarto, President

 

with a copy to:

 

Proskauer Rose LLP

Eleven Times Square

New York, NY 10036-8299

Telephone: (212) 969-3000

Fax: (212) 969-2900

Attention: Peter M. Fass, Esq.

 

and:

 

American Realty Capital Daily Net Asset Value Trust.

405 Park Avenue, 15th Floor

New York, New York 10022

Fax: (212) 421-5799

Attention: Nicholas S. Schorsch, Chief Executive Officer
and Chairman of the Board of Directors

 

If to Escrow Agent:

 

UMB Bank, N.A.

1010 Grand Blvd., 4th Floor

Mail Stop: 1020409

Kansas City, Missouri 64106

Attention: Lara L. Stevens, Corporate Trust

Telephone: (816) 860-3017

Facsimile: (816) 860-3029

Email: lara.stevens@umb.com

 

    	 

    	 

    

  

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18.        Counterparts.
This Agreement may be executed (including by facsimile transmission) with counterpart signature pages or in counterparts, each
of which shall be deemed an original, but all of which shall constitute the same instrument. Copies, telecopies, facsimiles, electronic
files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original
documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law.

 

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

 

    	 

    	 

    

  

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

 

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

 

[Signature page follows]

 

    	 

    	 

    

  

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

 

AMERICAN REALTY CAPITAL Daily
Net Asset Value Trust, INC.

 

	By:	 	 
	 	Name: Nicholas S. Schorsch	 
	 	Title:   Chief Executive Officer	 
	 	 	 
	REALTY CAPITAL SECURITIES, LLC	 
	 	 	 
	By:	 	 
	 	Name: Louisa H. Quarto	 
	 	Title:   President	 
	 	 	 
	UMB BANK, N.A., as Escrow Agent	 
	 	 	 
	By:	 	 
	 	Name: Lara L. Stevens	 
	 	Title: Vice President	 

 

    	 

    	 

    

  

Exhibit A

 

Copy of Offering Document

 

    	 

    	 

    

  

Exhibit B

 

List of Investors

 

Pursuant to the Escrow Agreement dated
as     , 2014, among Realty Capital Securities, LLC, American Realty Capital – Retail Centers of
America II, Inc. (the “Company”), and UMB Bank, N.A. (the “Escrow Agent”), the Company or
its agents hereby certifies that the following Investors have paid money for the purchase of shares of the Company’s common
stock, par value $0.01 (“Securities”), and the money has been deposited with the Escrow Agent:

 

		1.	Name
of Investor

Address

Tax Identification Number

Amount of Securities subscribed for

Amount of money paid and deposited with Escrow Agent

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

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

 

		2.	Name
of Investor

Address

Tax Identification Number

Amount of Securities subscribed for

Amount of money paid and deposited with Escrow Agent

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

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

 

	Dated:	 	 

 

REALTY CAPITAL SECURITIES, LLC

 

	By:	 	 
	 	Name: Louisa H. Quarto	 
	 	Title:   President	 

 

    	 

    	 

    

  

Exhibit C

 

CERTIFICATE AS TO AUTHORIZED SIGNATURES

 

The specimen signatures shown below are
the specimen signatures of the individuals who have been designated as Authorized Representatives of American Realty Capital –
Retail Centers of America II, Inc. and are authorized to initiate and approve transactions of all types for the above-mentioned
account on behalf of American Realty Capital – Retail Centers of America II, Inc.

 

	Name/Title	 	Specimen Signature
	 	 	 
	Nicholas S. Schorsch	 	 
	Chairman of the Board of Directors	 	Signature
	 	 	 
	Thomas P. D’Arcy	 	 
	Chief Executive Officer	 	Signature
	 	 	 
	Edward M. Weil, Jr.	 	 
	President, Treasurer and Secretary	 	Signature
	 	 	 
	W. Todd Jensen	 	 
	Executive Vice President and Chief Investment Officer	 	Signature
	 	 	 
	Edward F. Lange, Jr.	 	 
	Chief Financial Officer and Chief Operating Officer	 	Signature

 

    	 

    	 

    

  

Exhibit C-1

 

CERTIFICATE AS TO AUTHORIZED SIGNATURES

 

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

 

	Name/Title	 	Specimen Signature
	 	 	 
	 	 	 
	Nicholas A. Schorsch	 	 
	Chairman, Treasurer and Chief Executive Officer	 	Signature
	
         

        Edward M. Weil, Jr.
	 	 
	President, Chief Operating Officer and Secretary	 	Signature
	 	 	 
	Peter M. Budko	 	 
	Executive Vice President and Chief Investment Officer	 	Signature
	 	 	 
	Nicholas Radesca	 	 
	Chief Financial Officer	 	Signature

 

    	 

    	 

    

  

Exhibit D

 

ESCROW FEES AND EXPENSES

 

Acceptance Fee

 

Review escrow agreement, establish account $3,000

DST Agency Engagement (if applicable) $250

 

Annual Fees

 

Annual Escrow Agent $2,500

Outgoing Wire Transfer $15 each

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

Web Exchange Access $15 per month

Overnight Delivery/Mailings $16.50 each

IRS Tax Reporting $10 per 1099

 

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

 

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

 

    	 

    	 

    

 

Exhibit E

 

Agency and Custody Account Direction

For Cash Balances

UMB Bank Money Market Deposit Accounts

 

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

 

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

 

UMB Bank Money Market Special

 

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

 

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

 

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

 

	By:	 	 
	 	Signature	 
	 	 	 
	 	 
	Date	 

 

    	 

    	 

    

  

Exhibit F

 

[Form of Notice to Pennsylvania Investors]

 

You have tendered a subscription to purchase
shares of common stock of American Realty Capital – Retail Centers of America II, Inc. (the “Company”).
Your subscription is currently being held in escrow. The guidelines of the Pennsylvania Securities Commission do not permit the
Company to accept subscriptions from Pennsylvania residents until an aggregate of $156,250,000 of gross offering proceeds have
been received by the Company. The Pennsylvania guidelines provide that until this minimum amount of offering proceeds is received
by the Company, every 120 days during the offering period Pennsylvania Investors may request that their subscription be returned.
If you wish to continue your subscription in escrow until the Pennsylvania minimum subscription amount is received, nothing further
is required.

 

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

 

I hereby terminate my prior subscription
to purchase shares of common stock of American Realty Capital – Retail Centers of America II, Inc. and request the return
of my subscription funds. I certify to American Realty Capital – Retail Centers of America II, Inc. that I am a resident
of Pennsylvania.

 

	Signature:	 
	 	 
	Name:	 
	 	(please print)
	 	 
	Date:	 

 

Please send the subscription refund to:10.1 Credit Facility Agreement

EXHIBIT 10.1
Bank version /Client version
 

Credit Facility Agreement
Regarding an Umbrella Credit Facility in the amount of 
EUR 30,000,000.00
dated August 07, 2014

IPG Laser GmbH
Siemensstrasse 7
57299 Burbach
(the "Borrower")

and

Deutsche Bank AG
Filiale Deutschlandgeschäft
An den Dominikanern 11 - 27
50668 Cologne
(the "Bank")

enter into the following agreement (the "Credit Facility Agreement") pursuant to which the Bank makes available a revolving umbrella credit facility to the Borrower (the "Umbrella-Credit Facility") on the basis of the Bank’s General Business Conditions (Allgemeine Geschäftsbedingungen):

§ 1 - PARTIES

	
		
	Borrower:
	IPG Laser GmbH

	Bank:
	Deutsche Bank AG Filiale Deutschlandgeschäft, Cologne

§ 2 - UMBRELLA-CREDIT FACILITY:
		
	(1)
	Aggregate Facility Amount

The Bank makes available to the Borrower a credit facility in the amount of up to
Euro 30,000,000.00 (in words: Euro thirty million) ("Aggregate Facility Amount").
The Aggregate Facility Amount is divided into the following facilities: 
		
	(a)
	Facility 1: revolving cash credit facility in the amount of up to Euro 14,000,000.00

		
	(b)
	(in words: Euro fourteen million) ("Facility 1").

		
	(c)
	Facility 2: revolving guarantee facility in the amount of up to Euro 16,000,000.00

		
	(d)
	(in words: Euro sixteen million) ("Facility 2").

Facility 1 and Facility 2 together named as “Facilities”.

(2)    Term of the Facilities
The Facilities are available until July 31st, 2017 ("Term of the Umbrella-Credit Facility").

		
	(3)
	Purpose

		
	(a)
	The proceeds of Facility 1 shall be applied towards purposes of financing short-term working capital requirements, especially financing of the outstanding accounts receivables and inventories of the Borrower as well as - pursuant to § 4 - of companies of which a Borrower directly or indirectly owns a majority interest according to § 16 of the German Stock Companies Act (Aktiengesetz) ("Subsidiaries"). For purposes of this Credit Facility Agreement only the IPG Photonics (Beijing) Fiber Laser Technology Company Limited, Beijing, China is deemed to be a Subsidiary (irrespective of § 16 of the German Stock Companies Act).

The use of Facility 1 for acquisitions irrespective of form, duration and amount will require the prior consent of the Bank.
		
	(b)
	The proceeds of Facility 2 shall be applied towards the issuance of Guarantees upon instruction of the Borrower as well as - pursuant to § 4 - of its respective Subsidiaries.

		
	(4)
	Definitions

In this Credit Facility Agreement the following words and terms are defined as specified below:
"Banking Day" means a day (other than a Saturday or Sunday) on which banks are open for general business in Cologne.
"EONIA" means the Euro OverNight Index Average as determined by the European Central Bank for each Target-day. On days which are not a TARGET-day the EONIA as determined on the immediately preceding TARGET-day shall apply. If no EONIA is available on a Target-day the Bank will determine the applicable reference interest rate in accordance with section 315 German Civil Code (BGB) on the basis of the quotations for overnight funds in the European interbank market.
"EURIBOR" means the interest rate per annum for deposits in Euro for the relevant interest period displayed on page 248 of the Telerate screen or a respective succeeding screen replacing page 248 for 11.00 a.m. Brussels time two TARGET-days prior to the disbursement/the commencement of the respective interest period. If the EURIBOR cannot be determined two TARGET-days prior to the first interest period, the Bank and the Borrower will negotiate the interest rate for the relevant interest period. The Bank is not obligated to disburse the loan unless an agreement about the applicable interest rate has been reached. The Bank is released from its obligation to disburse the loan if an agreement about the applicable interest rate is not reached within 15 days. If the EURIBOR for an interest period following the first interest period cannot be determined two TARGET-days prior to the commencement of the relevant interest period the Bank will determine interest for the relevant interest period based on interest rates customary in the European interbank market for the particular interest period plus the agreed margin.
"Financial Indebtedness" means any indebtedness for or in respect of (i) moneys borrowed, (ii) any letters of credit issued and acceptances accepted or issued, which had been discounted, (iii) any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument, (iv) lease contracts which would, in accordance with orders or statements of practice of the Federal Ministry of Finance or GAAP under the applicable law as the case may be, be treated as a finance or operating lease, (v) receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis), (vi) any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing, (vii) any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value shall be taken into account), (viii) any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by third parties unless both obligations are reported, the primary obligation on and the obligation of the counter-indemnity on or below, the same balance sheet; and (ix) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (i) through (viii) above, (x) a guarantee, surety or other obligation for any of the obligations listed in paragraphs (i) through (ix), and (xi) provisions for pension obligations.
"TARGET-day" is any day on which the Trans-European Automated Real Time Gross Settlement Express Transfer System is open for the settlement of payments in Euro.

§ 3 - UTILIZATION
		
	(1)
	Cash Credit Facility

Facility 1 may be utilized by way of:
		
	(a)
	Cash Credit

Current account cash advances ("Cash Credit") in Euro on the account of the Borrower with IBAN DE34460700900028025500, BIC DEUTDEDK460.
		
	(b)
	EURIBOR-Fixed Interest Loan

Loans with fixed interest rates on the basis of EURIBOR with interest periods of 1, 3, or 6 months which may, however, not extend beyond the Term of Facility 1 (“Interest Period”) (“EURIBOR-Fixed Interest Loan”) in Euro after a utilization request by the Borrower. The minimum amount for utilizations by way of EURIBOR-Fixed Interest Loan is
Euro 250,000.00 (in words: Euro two hundred fifty thousand) or an integral multiple thereof.
Each utilization request must be delivered to the Bank by 10:00 a.m. Frankfurt am Main local time two Banking Days before the day on which disbursement is to be made or on which, a new Interest Period would begin, respectively. The utilization request must specify the designated amount of the utilization and the duration of the Interest Period and shall be irrevocable.
If an Interest Period would otherwise end on a day which is not a Banking Day, that Interest Period will instead end on the next Banking Day in that calendar month (if there is one) or the preceding Business Day (if there is not).
		
	(c)
	Utilization in foreign currency

Cash Credit in foreign currency, namely in US Dollar, or with prior consent of the Bank in every other currency which is freely available, convertible and transferable in the European interbank market.

		
	(2)
	Guarantee Facility

Facility 2 may be utilized as follows:
		
	(a)
	Guarantees

Facility 2 may be utilized through sureties (Bürgschaften), sureties upon first demand (Bürgschaften auf erstes Anfordern), guarantees (including bonds and standby letters of credit) or guarantees upon first demand (Garantien auf erstes Anfordern) issued upon instruction of the Borrower ("Guarantees") in EUR and if individually agreed upon also in foreign currency. Unless otherwise agreed on a case by case basis, the instructions to issue the Guarantees shall be given using the wording in each case prepared by the Bank.
Guarantees and sureties other than bid bonds, advance payment bonds, performance bonds and warranty bonds requires the consent by the bank before issuance.

		
	(b)
	Special Conditions for Guarantee Business

In addition, the Special Conditions for Guarantee Business of the Bank (Bedingungen für das Avalgeschäft), as attached to this Credit Facility Agreement, shall apply, which take priority over the Bank’s General Business Conditions.
		
	(c)
	Conditional Acceptance

Before accepting an instruction to issue a Guarantee, the Bank is entitled to consider such instruction with respect to its feasibility under legal, economical and policy aspects and to refuse acceptance, as the case may be.
		
	(d)
	Duration of Guarantees

Each Guarantee shall be limited in time and shall not exceed a term of 3 years. Where a Guarantee does not qualify for a limited term, the economic lifetime (until the expected expiration of the Guarantee) shall not exceed 3 years.
		
	(e)
	Guarantees in foreign currency

Instructions can been given for Guarantees to be issued in foreign currency, namely in US Dollar, or with prior consent of the Bank in every other currency which is freely available, convertible and transferable in the European interbank market up the Aggregate Facility Amount of Facility 2.

§ 4 - UTILIZATION OF THE CREDIT FACILITY BY SUBSIDIARIES
		
	(1)
	Utilization by Subsidiaries

Subsidiaries of the Borrower may - in deduction from the respective Facility 1 or 2 and based on the corporate guarantee by the Borrower (hereinafter the "Corporate Guarantee") as set out in the Annex to this Credit Facility Agreement - draw credits and use banking products (hereinafter: "Subsidiary Facilities") within the banking business relationship at domestic or foreign branches and / or subsidiaries of the Bank (hereinafter “Lending Office”) in compliance with the following conditions. No Lending Office shall be obliged hereby to make available Subsidiary Facilities.
The utilization of Subsidiary Facilities by the respective Subsidiary shall be based on separate facility agreements concluded or to be concluded between the respective Subsidiary and the Lending Office.
		
	(2)
	Allocation of Subsidiary Facilities

The current allocation of the Subsidiary Facilities to the respective Subsidiaries as well as to the respective Lending Offices shall be reflected in Annex 1 as attached to the Corporate Guarantee at any point of time. In case of a change of the current allocation of the Subsidiary Facilities, Annex 1 of the Corporate Guarantee shall be amended accordingly; in case of such amendment, the provisions contained in this Credit Facility Agreement shall remain unaffected.
		
	(3)
	Exemption from Banking Secrecy

Vis-a-vis the other Lending Offices the Borrower releases the Bank from the obligations of Banking Secrecy with respect to all matters concerning this Credit Facility as well as the Subsidiary Facilities.

§ 5 - REPAYMENT
		
	(1)
	The Borrower will repay all amounts outstanding in full at the latest at the end of the Term of the Facilities unless otherwise agreed.

		
	(2)
	If after the termination of Facility 2 Guarantees are outstanding - also under Subsidiary Facilities, as the case may be  - and the collateral provided to the Bank or Lending Office (taking into account the Corporate Guarantee to be provided according to § 4) does not cover the full amount of any risk resulting from such Guarantees the Borrower shall procure that the Bank be released within a reasonable period of time from its obligations under such Guarantees and - in case of Subsidiary Facilities - ensure that the respective Lending Office be released by the respective Subsidiary from its obligations under such Guarantees. The Borrower is entitled to provide the Bank and/or the Lending Office, respectively, instead with security by pledge of an amount in cash in the relevant currency of the Guarantee, or to procure that the respective Subsidiary provide such security in cash. With regard to Guarantees issued under Facility 2, Section 10 of the Conditions for Guarantee Business remains unaffected.

§ 6 - INTEREST / COMMISSIONS / FEES
		
	(1)
	General

		
	(a)
	Authorization for debiting

The Bank is entitled to debit due interest, commissions, expenses, charges and fees to the account of the Borrower with IBAN DE34460700900028025500, BIC DEUTDEDK460.
(a)Credit Commission
For holding available the Facility 1 the Bank charges a current credit commission in the amount of 0.50% p.a. of the amount of Facility 1. If the Bank tolerates an overdraft of the amount of the respective Facility, despite its not being obliged to do so, the Bank will charge on the amount exceeding the amount of the respective Facility the credit commission in addition to the increased interest rate for overdrafts.
The credit commission will be calculated on the basis 30/360 and is due quarterly in arrears and upon termination of the Facility 1.
		
	(c)
	Arrangement Fee

For the granting of this Umbrella-Credit Facility the Bank charges a one-off arrangement fee of EUR 15.000,00 (in words: Euro fifteen thousand). The arrangement fee will become due upon effectiveness of the Credit Facility Agreement.
(d)    Default Interest
If the Borrower fails to pay any amount payable by it under this Credit Facility Agreement, interest shall accrue on the overdue amount (excluding overdue interest) from the due date up to the date of actual payment at a rate of 5 percentage points above the ECB base rate in accordance with Section 288 German Civil Code (BGB). The right to assert claims for further damages remains unaffected.

		
	(2)
	Facility 1

		
	(a)
	Interest rate for current account cash advances

The calculation of interest rates for cash advances on current accounts will be based on the following terms and conditions:
The rate of interest per annum for current account cash advances in Euro is the sum of the monthly EONIA-average rate and the margin. 
The margin is 1.25 % p.a..
Interest will be calculated on the basis 30/360. Amounts will be due and payable quarterly in arrears and upon termination of the Facility 1.
The monthly EONIA-average rate is the interest rate as determined by the Bank at the end of each month for that respective month as the monthly average of the European Over-Night Indexed Average.

		
	(b)
	Interest for EURIBOR-Fixed Interest Loans

The rate of interest for Fixed Interest Loans in Euro is the percentage rate per annum which is the sum of the applicable EURIBOR for the agreed interest period and the margin.
The margin is 1.00 % p.a..
Interest will be calculated by calendar days on the basis actual / 360. Interest is due and payable at the end of the respective interest period, in case of interest periods longer than six months after six months and at the end of the respective interest period. 
		
	(c)
	Utilization in foreign currency

The interest rate for utilizations in foreign currency and its payment will be agreed upon in advance on a case by case basis.

		
	(3)
	Facility 2

		
	(a)
	Commission on Guarantees

Unless otherwise agreed, the commission on Guarantees is 1.00% p.a., minimum EUR 300.00 p.a. (respectively EUR 75.00 per quarter) until further notice and has to be paid for each of the requested individual Guarantees and not for the upholding of this Facility 2.
The commission on Guarantees will be calculated on the basis 30/360 for each quarter and is due in advance.
		
	(b)
	Issuance Fee

For each issuance (as well as for each amendment) of a Guarantee the Borrower will pay an issuance fee in the amount of EUR 125.00 for each Guarantee drafted by the Bank and EUR 200.00 for each Guarantee drafted by third parties.

		
	(c)
	Application of the List of Prices and Services

In addition, the Trade Finance List of Prices and Services for Corporate Clients in Germany (the “List of Prices and Services”) shall apply, which the Borrower can either access on the Internet website www.db.com/gtb/plv or which will be provided to the Borrower upon request.
		
	(d)
	Remuneration for special services in connection with Guarantees

The Bank reserves the right to demand further remuneration for services rendered for which no charge is indicated in the List of Prices and Services and which exceed the standard handling of a Guarantee (from the instruction to issue the Guarantee until its discharge) (e.g. wordings which require special scrutiny or in case of contentious procedures). The remuneration will be calculated by the Bank based on the actual expenditure of time and manpower.

§ 7 - COLLATERAL
In exchange to the existing security, the following collateral shall be provided by the Borrower:
Individual Corporate guarantee by IPG Photonics Corporation, Oxford, MA 01540, USA, in form and content satisfactory to the Bank in the amount of EUR 30,000,000,00 (in words: Euro thirty million).

§ 8 - CONDITIONS OF UTILIZATION
The Borrower may utilize this Credit Facility once the following Conditions Precedent are fulfilled and none of them has been revoked or cancelled and as long as no event of default is outstanding which constitutes or, with the expiry of a grace period and/or the giving of a notice may constitute the right to terminate the Credit Facility Agreement for reasonable cause:
		
	(1)
	The Bank has received all documents and evidence listed below in form and content satisfactory to the Bank and none of these turned out to be wrong:

		
	(a)
	All information required by law (§ 1 subpara. 6 of the German Money-Laundering Act (GwG)) regarding the beneficial owner/s and the Declaration of the Borrower according to the GWG with regard to this Credit Facility Agreement.

(b)The agreed collateral as set out under §7 is in full force and effect.

		
	(2)
	The Borrower is not in default with any obligation vis-à-vis the Bank set out in §9 GENERAL UNDERTAKINGS or other material obligation under this Credit Facility Agreement.

The Bank may allow utilization without the above conditions being satisfied. The obligation of the Borrower to comply with the conditions of utilization remains unaffected hereby unless the Bank has definitely and expressly waived compliance with certain conditions in writing.

§ 9 - General Undertakings
According to the GwG the Borrower undertakes to present to the Bank any information required by law (§ 1 subpara. 6 GwG) regarding the beneficial owner/s and to inform the Bank voluntarily and immediately about any change during the Term of the Facility (§ 4 subpara. 6 and § 6 subpara. 2 no. 1 GwG). 
Until all liabilities under this Credit Facility Agreement have been fully and finally discharged the Borrower undertakes the following obligations: 
		
	(1)
	Information

The Borrower undertakes to keep the Bank always informed of its current economic condition and, as the case may be, the current economic condition of its group of companies.
For this purpose the Borrower will, in particular, immediately upon completion and in any event within 9 months after the end of each of its financial years provide the Bank with
		
	-
	An original of its audited financial statement, at least with the content required by law and including appendix and management report; 

		
	-
	the audited consolidated financial statement (consolidated balance sheet, consolidated statement of income and explanatory notes to consolidated financial statement) together with the group management report of the Borrower’s group of companies including the respective auditor’s reports;

		
	-
	A revolving 1 year forecast for the group and the borrower (each in content and credit assessment satisfactory to the bank);

Should the financial statement not need to be audited, the executed copy to be submitted to the Bank has to be duly signed by all managing directors, resp. all general partners.
Furthermore, the Borrower will provide the Bank with quarterly reports for IPG Photonics Corp. as published and for IPG Laser GmbH an unaudited profit & loss statement and balance sheet.
The Borrower will provide upon the Bank’s demand further information and documents which give insight into its economic condition as well as information on earning capacities and financial circumstances of the guarantors.
The Borrower will inform the Bank immediately in case material adverse changes or divergences in regard to the information given or documents handed over (including plan figures and projections) occur or in case it becomes apparent or there is evidence indicating that information given or documents handed over are incomplete or incorrect.
		
	(2)
	Purpose

As far as the Umbrella-Credit Facility (or single Facilities) has/have been assigned to a specified purpose, the Borrower undertakes to provide the Bank upon its demand with proof that the Facility has been used for the agreed purpose by furnishing appropriate documents.
The Bank is not obligated to the Borrower to verify that the Umbrella-Credit Facility has been used for the agreed purpose.

		
	(3)
	Pari Passu / Negative Pledge

The Borrower undertakes not to provide and to ensure that affiliated companies, its shareholders or any others person do not provide, any collateral over its assets or guarantees to third parties for similar credit facilities of the Borrower or any other person and not to incur any liabilities and to ensure that such liabilities are not incurred which require the provision of such collateral/guarantees of any kind for such credit facilities to third parties without allowing the Bank to participate in this security before or at the same time and in the same rank or providing the Bank with equivalent security (Pari Passu). Exception are made for
		
	(a)
	a collateralized accumulated new Financial Indebtedness up to an amount of Euro 5,000,000.00 (in words: Euro five millions) or

		
	(b)
	supplier’s collateral as is common in trade or industry and banking collateral as required by banks ́ general business conditions.

(4)    Change of control
The parties to this agreement agree that the current ownership in the Borrower represents an essential basis for the Bank’s preparedness to grant the Facility and any utilization thereunder.
If a Change of Control occurs, the parties will negotiate, prior to the occurrence of such a change, an agreement satisfactory to both sides on the continuation of this Credit Facility Agreement on changed terms and conditions, e.g. in respect of interest rates, collateral, or other agreements.
A “Change of Control” occurs, if another person assumes or acquires, or it is found to hold at least 30 % percent of voting rights of the Borrower. Voting rights shall be assigned according to section 30 of the German Securities Acquisition and Takeover Act (Gesetz zur Regelung von öffentlichen Angeboten zum Erwerb von Wertpapieren und von Unternehmensübernahmen (WpÜG)).

		
	(5)
	Credit agreements with other financial institutions

The Borrower will inform the Bank about future credit agreements or about material changes in existing credit agreements with other financial institutions (e.g. increases, terminations or demands for additional collateral) exceeding an accumulated amount of EUR 3,000,000,00 (in words: Euro three million) in advance if they are under negotiation and otherwise immediately upon their effectiveness. A table of the credit facilities of the group (lender, amount, maturity, purpose, collateralization) to be provided on Banks demand.
Where the Borrower is using credit by way of guarantee with several lenders, the Borrower will utilize Facility 2 in such a way that the utilization does not result in a concentration of risk (e.g. through certain types of guarantee) with the Bank in comparison to the other lenders.

(6)    Information and cooperation regarding credit by way of guarantee
The Borrower will, upon request, provide the Bank for each Guarantee issued with all information and appropriate documentation on the claim secured by the Guarantee, and will, in case a demand under the Guarantee is imminent, furnish the Bank with all information and documentation the Bank deems necessary in order to verify the validity of such demand, give the Bank all reasonable support in this respect and, for this purpose, nominate and place at the Bank’s disposal qualified and competent employees.

§ 10 - TERMINATION FOR REASONABLE CAUSE WITHOUT NOTICE
A reasonable cause which entitles the Bank to terminate this Credit Facility Agreement without notice according to no. 19 section 3 of the General Business Conditions is also and especially given if:

		
	(1)
	the Borrower does not comply with the General Undertakings set out in §9 or other material obligations under this Credit Facility Agreement or under any collateral agreement entered into in connection with this Credit Facility Agreement, or

		
	(2)
	a Change of Control occurs and the parties do not reach an agreement on the continuation of the Credit Facility Agreement on changed terms and conditions, e.g. in respect of interest rate, collateral, or other agreements, in due time, or

		
	(3)
	any other Financial Indebtedness of the Borrower is not paid when due or is declared, or capable of being declared,] due and payable by any creditor(s) thereof prior to its agreed maturity by reasons of the occurrence of an event of default (howsoever described) and the aggregate of all such Financial Indebtedness exceeds an amount of EURO 3,000,000.00 (in words: Euro three million) or the equivalent thereof in any other currency or currencies (“Cross Default”).

§ 11 - MISCELLANEOUS
		
	(1)
	Hedges

If the Bank and the Borrower have entered or will enter into hedging transactions covering interest or currency risk which may also arise from this Credit Facility Agreement, a termination of this Credit Facility Agreement will have no effect on the validity and continuation of such hedging transactions. Nothing in this clause shall oblige the Bank to enter into hedging transactions with the Borrower.

		
	(2)
	Foreign exchange risk

Any utilization in foreign currency must be repaid in the same currency, irrespective of changes in the exchange rate which may have taken place in the meantime. Amounts outstanding in foreign currency will be counted 

against the amount of the respective Facility at any time on the basis of the respective current exchange rate to the Euro, as determined and published by the Bank on the Internet around 13:00 Frankfurt time of every trading day. 
If fluctuations in the exchange rate result in the total amounts outstanding exceeding the amount of the respective Facility 1 or 2 the Borrower will reduce this overdraft immediately - by the expiry date of the agreed interest period at the latest or procure that the Bank be released without delay from its obligations under the relevant Guarantees. In the meantime, the Bank may demand security by pledge of an amount in cash and in Euro, namely in the amount the amounts outstanding exceed the amount of the respective Facility 1 or 2.

		
	(3)
	Transfer of the Credit Risk to third parties with disclosure of information

The Bank is entitled to transfer the economic risk of this credit facility, in whole or in part, to third parties or to use its claims resulting from this credit facility for refinancing purposes (inter alia by sub-participation, transfer or pledge of the claims including the respective collateral) and to provide the relevant information to the respective third parties. Albeit, the Bank will remain the Borrower ́s contractual counterparty in accordance with the terms and provisions of this Credit Facility Agreement.
The Bank is also entitled to provide the relevant information to persons who have to be involved in the execution of the transfer due to technical or legal reasons and who are obligated, contractually or by law or by professional obligation to confidentiality, to keep all information received confidential, e.g. auditors, and to credit rating agencies.
Third party within the above meaning can be any member of the European system of central banks or any special purpose vehicle for refinancing purposes at member of the European system of central banks.

		
	(4)
	Withholding Tax

Any amount payable by the Borrower hereunder will be paid free and clear of and without deduction of any withholding taxes. Withholding taxes are taxes, duties or governmental charges of any kind whatsoever which are imposed or levied in, by or on behalf of the country in which the Borrower is situated, and which are deducted from any payment hereunder. If the deduction of withholding taxes is required by law, then the Borrower shall pay such additional amounts as may be necessary in order that the net amounts received by the Bank after such deduction shall equal the amount that would have been receivable had no such deduction been required.

		
	(5)
	Expenses and Indemnity

The Borrower shall reimburse the Bank for all reasonable and necessary costs and expenses in connection with the enforcement and/or preservation of its rights (in court or extrajudicial) against the Borrower including the enforcement and realization of collateral.

		
	(6)
	Judgment Currency

Payments made by the Borrower to the Bank pursuant to a judgment or order of a court or tribunal in a currency other than that of the Credit Facility (the ”Facility Currency”) shall constitute a discharge of the Borrower ́s obligation hereunder only to the extent of the amount of the Facility Currency that the Bank, immediately after receipt of such payment in such other currency, would be able to purchase with the amount so received on a recognized foreign exchange market. If the amount so received should be less than the amount due in the Facility Currency under this Credit Facility Agreement, then as a separate and independent obligation which gives rise to a separate cause of action the Borrower is obliged to pay the difference.

		
	(7)
	Choice of Law and Jurisdiction

This agreement and all rights or obligations arising hereunder shall in all respects be governed by, and construed in accordance with, the laws of the Federal Republic of Germany.
Place of jurisdiction is Köln, Germany. Additionally, each party may be sued at its head office.
The Guarantor IPG Photonics Corporation as set out in §7 hereby irrevocably appoints the Borrower as its agent for service of process or other legal summons in connection with any action or proceedings in Germany arising under this Credit Facility Agreement. The Guarantor IPG Photonics Corporation irrevocably waives any objection which it may now or hereafter have that such proceedings have been brought in an inconvenient forum.

(8)    Amendments
Any amendment to this Credit Facility Agreement is required to be made in writing.

(9)    Expiration Date / Effectiveness / Appropriation of existing utilizations
		
	(a)
	The offer of the Bank to enter into this Credit Facility Agreement expires on August 31st, 2014 ("Expiration Date").

		
	(b)
	This Credit Facility Agreement becomes effective upon receipt by the Bank of this Credit Facility Agreement duly signed by all parties.

		
	(c)
	Upon its effectiveness this Credit Facility Agreement amends the credit agreement of 18.06.2012 regarding an Umbrella Facility in the amount of EUR 20,000,000.00 including the 1 Amendment dated 01/17/2014. Utilizations under such credit agreement of 18.06.2012 regarding an Umbrella Facility in the amount of EUR 20.000.000,00 including the 1 Amendment dated 01/17/2014 will be accounted as utilization of the Facilities or of the relevant Facility 1 or 2, respectively.

		
	(d) 
	Upon the effectiveness of this Credit Facility Agreement and completion of conditions of utilization the Corporate Guarantee of IPG Laser GmbH as referred to in § 5 (1) of the Credit Facility 

Agreement dated 06/18/2012 and in the version signed on 02/25/2014 will be replaced by the Corporate Guarantee of IPG Laser GmbH dated  08/06/2014.

		
	(10)
	Severability Clause

Should any provision of this Agreement be unenforceable, invalid or void, the other provisions hereof shall remain in full force and effect.

Declaration according to the GwG
The Borrower hereby confirms the Bank by ticking the box or initial that with regard to the Credit Facility Agreement he is acting for his own account.

[X] IPG Laser GmbH

	
			
	This Umbrella Credit Facility Agreement will be cited under the date first above written.

	 
	 
	 

	Deutsche Bank AG
	 
	 

	Filiale Deutschlandgeschäft
	 
	 

	 
	 
	 

	 
	 
	 

	Cologne, 7 August 2014
	 
	/s/ Eddy Henning /s/ Joachim Gartz

	Place, Date
	 
	 

	 
	 
	 

	 
	 
	 

	IPG Laser GmbH
	 
	 

	 
	 
	 

	 
	 
	 

	Burbach, 11 August 2014
	 
	/s/ Eugene Scherbakov

	Place, Date
	 
	 

	 
	 
	 

	 
	 
	 

	Noted and agreed especially regarding § 7 and § 11 (7):

	 
	 
	 

	 
	 
	 

	IPG Photonics Corporation
	 
	 

	 
	 
	 

	 
	 
	 

	Oxford, MA, August 11, 2014
	 
	/s/ Valentin Gapontsev

	Place, Date

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