Document:

July 16, 2013

 

 

 

Mr. Donald P. Bunnell

524/50 Burton St

Darlinghust, NSW 2010

Australia

 

Re: Employment with Synthesis Energy Systems,
Inc. (the “Company”)

 

Dear Don,

 

This letter agreement will confirm the
terms of your employment to you effective July 29, 2013 (the “Effective Date”).

 

Title/Reporting Relationship

 

Your title will be Chief Commercial Officer
and you will report to Robert W. Rigdon, President and Chief Executive Officer of the Company (the “CEO”).

 

Responsibilities

 

Your duties and responsibilities will be
such as are reasonably assigned to you by the CEO, including, without limitation, as described on Annex B hereto. While
employed by the Company, you will devote full time and attention during normal business hours to the affairs of the Company
and use your best efforts to perform faithfully and efficiently your duties and responsibilities.

 

You shall perform the services required
by this letter agreement through electronic virtual office arrangements from Sydney, Australia and otherwise while traveling on
Company business. In addition, your responsibilities for the Company may require you to conduct travel to other domestic and international
locations on business for the Company consistent with the business needs of the Company. You acknowledge and agree that it is expected
that travel for Company business will be approximately 50% of your time while working for the Company.

 

Salary

 

Your salary will be $180,000 per year (the
“Base Salary”), payable in equal semi-monthly installments in accordance with the Company’s established policy.
The Company will conduct an annual review of your compensation and may, in its sole discretion, adjust your Base Salary
based upon relevant circumstances.

 

    	 

    	 

    

 

Vacation

 

You will be entitled to annual paid vacation
equal to twenty days every twelve months, beginning on the Effective Date. The use of any vacation time not taken will be subject
to the Company’s vacation policy as in effect from time to time.

 

Bonus Program

 

You will be eligible for bonuses as determined
from time to time in the sole discretion of the CEO, with approval of the Company’s Compensation Committee of the Company’s
Board of Directors (the “Board”). The bonus amount will be based on achievement of certain annual Company and individual
goals and objectives. Such bonus will be paid by no later than the later of 21⁄2 months after the end of the calendar year
in which it is earned or the 21⁄2 months after the end of the Company’s tax year in which it is earned.

 

Plans

 

You shall be eligible
to participate in and shall receive all benefits under all incentive, savings and retirement plans and programs maintained
or established by the Company for the benefit of our employees. Further, you and/or your family, as the case may be,
shall be eligible to participate in and shall receive all benefits under each benefit plan of the Company maintained or established
by the Company for the benefit of its employees. The Company shall not be obligated to institute, maintain, or refrain from
changing, amending, or discontinuing, any such program or plan, so long as such actions are similarly applicable to covered employees
generally.

 

Reimbursement of Business Expenses

 

You may from time to time during the term
of your employment incur various business expenses customarily incurred by persons holding positions of like responsibility,
including, without limitation, travel expenses incurred for the benefit of the Company. Subject to complying with the Company’s
policy regarding the reimbursement of such expenses as in effect from time to time during the term of your employment,
which does not necessarily allow reimbursement of all such expenses, the Company shall reimburse you for such expenses from
time to time, at your request, and you shall account to the Company for all such expenses. Such expenses will be reimbursed no
later than the later of 21⁄2 months after the end of the calendar year in which it is incurred or the 21⁄2 months after
the end of the Company’s tax year in which it is incurred.

 

Clawback Provisions

 

Notwithstanding any other
provisions in this letter agreement to the contrary, any incentive-based compensation, or any other compensation, paid to you pursuant
to this letter agreement or any other agreement or arrangement with the Company which is subject to recovery under any law, government
regulation or stock exchange listing requirement, will be subject to such deductions and clawback as may be required to be made
pursuant to such law, government regulation or stock exchange listing requirement (or any policy adopted by the Company pursuant
to any such law, government regulation or stock exchange listing requirement).

 

    	 

    	 

    

 

Withholdings

 

The Company may withhold and deduct from
any benefits and payments made or to be made pursuant to this letter agreement (a) all federal, state, local and other taxes as
may be required pursuant to any law or governmental regulation or ruling, and (b) all other employee deductions made with respect
to the Company’s employees generally.

 

Compliance with Company Policies

 

You agree to comply with all applicable
policies, rules and regulations of the Company, including, but not limited to, the Company’s Code of Business and Ethical
Conduct and policies regarding compliance with the U.S. Foreign Corrupt Practices Act, each as in effect from time to time.

 

Restrictive Covenants

 

You acknowledge, understand and agree that
as a condition to the Company’s execution of this letter agreement, you are bound by, and shall be obligated to comply with,
the covenants set forth on Annex A to the letter agreement regarding (i) Confidential Information, (ii) Disclosure of Information,
Ideas, Concepts, Improvements, Discoveries and Inventions, (iii) Ownership of Information, Ideas, Concepts, Improvements, Discoveries
and Inventions, and all Original Works of Authorship and (iv) Non-Competition; Non-Solicitation. It is further acknowledged, understood
and agreed by that the covenants made by you as set forth on Annex A are essential elements of your employment and that,
but for your agreement to comply with such covenants, the Company would not have hired you.

 

Term

 

Unless sooner terminated pursuant to other
provisions hereof, your period of employment under this letter agreement shall be a period of one year beginning on the Effective
Date (the “Initial Term”). Your period of employment under this letter agreement may, through mutual agreement, be
renewed for successive terms in the sole discretion of the Company. The need for such renewal will be reviewed by the Company and
you, at least 60 days before the end of the Initial Term. Notwithstanding the preceding sentence, in the event of (i) your conviction
(or plea of nolo contendere or equivalent plea) of a felony which, through lapse of time or otherwise, is not subject to appeal,
(ii) your engagement in misconduct causing a violation by the Company of any state or federal laws which results in an injury to
the business, condition (financial or otherwise), results of operations or prospects of the Company as determined in good faith
by the Board or a committee thereof, (iii) your engaging in a theft of corporate funds or corporate assets of the Company or in
an act of fraud upon the Company, (iv) an act of personal dishonesty taken by you that was intended to result in your personal
enrichment at the expense of the Company, (v) your refusal, without proper legal cause, to perform the duties and responsibilities
as contemplated in this letter agreement or any other breach by you of this letter agreement, (vi) your engaging in activities
which would constitute a breach of the Company’s policies described above under “Compliance with Company Policies”
or any other applicable policies, rules or regulations of the Company, or (vii) your failing to adequately perform, as determined
in the sole discretion of the Board, the scope of the duties and responsibilities of your position, the Company may elect to terminate
your employment immediately.

 

    	 

    	 

    

 

Entire Agreement; No Oral Amendments

 

This letter agreement, together with any
document, policy, rule or regulation referred to herein, replaces all previous agreements and discussions relating to the same
or similar subject matter between you and the Company and constitutes the entire agreement between you and the Company with respect
to the subject matter of this letter agreement. This letter agreement may not be modified in any respect by any verbal statement,
representation or agreement made by any executive, officer, or representative of the Company or by any written agreement unless
signed by an officer of the Company who is expressly authorized by the Company to execute such document.

 

Please feel free to contact me if you have
any questions.

 

Sincerely yours,

 

Synthesis Energy Systems, Inc.

 

/s/ Robert W. Rigdon

 

Robert W. Rigdon

President and Chief Executive Officer

 

 

I hereby accept these terms of employment.

 

	/s/ Donald P. Bunnell                    	July 16, 2013
	Donald P. Bunnell	Date

 

    	 

    	 

    

 

 

ANNEX A

 

COVENANTS AS TO CONFIDENTIALITY, DISCLOSURE
AND OWENERSHIP OF

INFORMATION, NON-COMPETITION AND NON-SOLICITATION

 

Confidential Information

 

In connection with your position as Chief
Business Development Officer, the Company will from time to time provide you with Confidential Information, as defined below, so
that you may perform the duties and responsibilities of your position. You acknowledge, understand and agree that all such Confidential
Information, whether developed by you or others employed by or in any way associated with you or the Company, is the exclusive
and confidential property of the Company and shall be regarded, treated and protected as such in accordance with this letter agreement.
You acknowledge that all such Confidential Information is in the nature of a trade secret. Failure to mark any writing confidential
shall not affect the confidential nature of such writing or the information contained therein.

 

“Confidential Information”
means information, which is used in the business of the Company and (i) is proprietary to, about or created by the Company, (ii)
gives the Company some competitive business advantage or the opportunity of obtaining such advantage or the disclosure of which
could be detrimental to the interests of the Company, (iii) is designated as Confidential Information by the Company, is known
by you to be considered confidential by the Company, or from all the relevant circumstances should reasonably be assumed by you
to be confidential and proprietary to the Company, or (iv) is not generally known by non-Company personnel. Confidential Information
excludes, however, any information that is lawfully in the public domain or has been publicly disclosed by the Company. Such Confidential
Information includes, without limitation, the following types of information and other information of a similar nature (whether
or not reduced to writing or designated as confidential):

 

(a) Information related to all
proprietary information developed, licensed or otherwise acquired by the Company, including, but not limited to, relating to the
U-GAS® coal gasification technology, the manufacture of synthesis gas and other energy products in a proprietary process (the
“Technology”);

 

(b) Internal personnel and financial
information of the Company, vendor information (including vendor characteristics, services, prices, lists and agreements), purchasing
and internal cost information, internal service and operational manuals, and the manner and methods of conducting the business
of the Company;

 

(c) Information regarding proposed
projects, joint ventures or other similar business activities;

 

    	 

    	 

    

 

(d) Marketing and development
plans, price and cost data, price and fee amounts, pricing and billing policies, quoting procedures, marketing techniques, forecasts
and forecast assumptions and volumes, and future plans and potential strategies (including, without limitation, all information
relating to any acquisition prospect and the identity of any key contact within the organization of any acquisition prospect) of
the Company which have been or are being discussed;

 

(e) Names and contact information
for customers, suppliers and their representatives, contracts (including their contents and parties), customer services, and the
type, quantity, specifications and content of products and services purchased, leased, licensed or received by customers or suppliers
of the Company;

 

(f) Confidential and proprietary
information provided to the Company by any actual or potential customer, supplier, government agency or other third party (including
businesses, consultants and other entities and individuals); and

 

(g) Work product resulting from
or related to the research or development of the Technology.

 

You further agree that you shall not make
any statement or disclosure to third parties that (i) would be prohibited by applicable Federal or state laws, or (ii) is intended
or reasonably likely to be detrimental to the Company or any of its affiliates.

 

As a consequence of the Company providing
you with its Confidential Information, you shall occupy a position of trust and confidence with respect to the affairs and business
of the Company. In view of the foregoing and of the consideration to be provided to you, you agree that it is reasonable and necessary
that you make each of the following covenants:

 

(a) During your employment and
thereafter, you shall not disclose Confidential Information to any person or entity, either inside or outside of the Company, other
than as necessary in carrying out your duties and responsibilities to the Company, without first obtaining the Company’s
prior written consent (unless such disclosure is compelled pursuant to court orders or subpoena, and at which time you shall give
prior written notice of such proceedings to the Company).

 

(b) During your employment and
thereafter, you shall not use, copy or transfer Confidential Information other than as necessary in carrying out your duties and
responsibilities, without first obtaining the Company’s prior written consent.

 

(c) On the termination of your
employment, you shall promptly deliver to the Company (or its designee) all written materials, records and documents made by you
or which came into your possession during your employment concerning the business or affairs of the Company, including, without
limitation, all materials containing Confidential Information.

 

    	 

    	 

    

 

Disclosure of Information, Ideas, Concepts,
Improvements, Discoveries and Inventions

 

As part of your fiduciary duties to the
Company and its affiliates, you agree that during your employment by the Company, you shall promptly disclose in writing to the
Company all information, ideas, concepts, improvements, discoveries and inventions, whether patentable or not, and whether or not
reduced to practice, which are conceived, developed, made or acquired by you, either individually or jointly with others, and which
relate to the business, products or services of the Company or its affiliates, irrespective of whether you used the Company’s
time or facilities and irrespective of whether such information, idea, concept, improvement, discovery or invention was conceived,
developed, discovered or acquired by you on the job, at home, or elsewhere. This obligation extends to all types of information,
ideas and concepts, including information, ideas and concepts relating to the Technology, the development of coal gasification
and syngas production and the provision of distributed power, utility services and coal gasification plant development, operations
and maintenance based on the Technology, new types of services, other corporate opportunities, acquisition prospects, prospective
names or service marks for the Company’s business activities, and the like.

 

Ownership of Information, Ideas, Concepts,
Improvements, Discoveries and Inventions, and all Original Works of Authorship

 

All information, ideas, concepts, improvements,
discoveries and inventions, whether patentable or not, which are conceived, made, developed or acquired by you or which are disclosed
or made known to you, individually or in conjunction with others, during your employment and which relate to the business, products
or services of the Company (including, without limitation, all such information relating to corporate opportunities, research,
financial and sales data, pricing and trading terms, evaluations, opinions, interpretations, acquisition prospects, the identity
of customers or their requirements, the identity of key contacts within the customers’ organizations, marketing and merchandising
techniques, and prospective names and service marks) are and shall be the sole and exclusive property of the Company. Furthermore,
all drawings, memoranda, notes, records, files, correspondence, manuals, models, specifications, computer programs, maps and all
other writings or materials of any type embodying any of such information, ideas, concepts, improvements, discoveries and inventions
are and shall be the sole and exclusive property of the Company.

 

In particular, you hereby specifically
sell, assign, transfer and convey to the Company all of your worldwide right, title and interest in and to all such information,
ideas, concepts, improvements, discoveries or inventions, and any United States or foreign applications for patents, inventor’s
certificates or other industrial rights which may be filed in respect thereof, including divisions, continuations, continuations-in-part,
reissues and/or extensions thereof, and applications for registration of such names and service marks. You shall assist the Company
at all times, during your employment and thereafter, in the protection of such information, ideas, concepts, improvements, discoveries
or inventions, in the United States and all foreign countries, which assistance shall include, but shall not be limited to, the
execution of all lawful oaths and all assignment documents requested by the Company or its nominee in connection with the preparation,
prosecution, issuance or enforcement of any applications for United States or foreign patents, including divisions, continuations,
continuations in part, reissues and/or extensions thereof, and any application for the registration of such names and service marks.

 

    	 

    	 

    

 

In the event you create, during your employment,
any original work of authorship fixed in any tangible medium of expression which is the subject matter of copyright (such as, videotapes,
written presentations on acquisitions, computer programs, drawings, maps, architectural renditions, models, manuals, brochures
or the like) relating to the Company’s business, products or services, whether such work is created solely by you or jointly
with others, the Company shall be deemed the author of such work if the work is prepared by you in the scope of your employment;
or, if the work is not prepared by you within the scope of your employment but is specially ordered by the Company as a contribution
to a collective work, as a part of a motion picture or other audiovisual work, as a translation, as a supplementary work, as a
compilation or as an instructional text, then the work shall be considered to be work made for hire, and the Company shall be the
author of such work. If such work is neither prepared by you within the scope of your employment nor a work specially ordered and
deemed to be a work made for hire, then you hereby agree to sell, transfer, assign and convey, and by these presents, do sell,
transfer, assign and convey, to the Company all of your worldwide right, title and interest in and to such work and all rights
of copyright therein. You agree to assist the Company and its affiliates, at all times, during your employment and thereafter,
in the protection of the Company’s worldwide right, title and interest in and to such work and all rights of copyright therein,
which assistance shall include, but shall not be limited to, the execution of all documents requested by the Company or its nominee
and the execution of all lawful oaths and applications for registration of copyright in the United States and foreign countries.

 

Non-Competition; Non-Solicitation

 

During your employment and for the twelve
month period following the date of termination of your employment, you shall not, acting alone or in conjunction with others, directly
or indirectly, in any area in which you have worked for the Company or as to which you have received Confidential Information relating
to the Company, including, but not limited to, the People’s Republic of China, the Republic of India and the United States,
invest or engage, directly or indirectly, in any Competing Business (as defined below) or accept employment with or render services
to such a Competing Business as a director, officer, agent, executive or consultant or in any other capacity. Notwithstanding the
above, you may serve as an officer, director, agent, employee or consultant to a Competing Business whose business is diversified
and which is, as to the part of its business to which you are providing services, not a Competing Business; provided, that prior
to accepting employment or providing services to such a Competing Business, you and the Competing Business will provide written
assurances satisfactory to the Company that you will not render services directly or indirectly for a twelve month period to any
portion of the Competing Business which competes directly or indirectly with the Company.

 

    	 

    	 

    

 

For purposes of this
letter agreement, “Competing Business” means any individual, business, firm, company, partnership, joint venture, organization,
or other entity that is engaged in the actual or intended business of the Company and/or its affiliates during the term of your
employment including, but not limited to, the development of coal gasification coal and biomass mixture gasification and syngas
production and the provision of distributed power, utility services and coal gasification coal and biomass mixture gasification
plant development, operations and maintenance based on coal gasification and coal and biomass mixture gasification technology.

 

In addition to the other obligations agreed
to by you in this letter agreement, you agree that for twelve months following the date of termination of your employment, you
shall not directly or indirectly, (i) hire or attempt to hire any employee of the Company, or induce, entice, encourage or solicit
any employee of the Company to leave his or her employment, or (ii) contact, communicate with or solicit any distributor, customer
or acquisition or business prospect or business opportunity of the Company for the purpose of causing them to terminate, alter
or amend their business relationship with the Company.

 

You hereby specifically acknowledge and
agree that:

 

		(a)	The Company expended and will continue to expend substantial time, money and effort in developing
its business;

 

		(b)	You will, in the course of your employment, be personally entrusted with and exposed to Confidential
Information;

 

		(c)	The Company, during your employment and thereafter, will be engaged in its highly competitive business
in which many firms compete;

 

		(d)	You could, after having access to the Company’s financial records, contracts, and other Confidential
Information and know-how and, after receiving training by and experience with the Company, become a competitor;

 

		(e)	The Company will suffer great loss and irreparable harm if you terminate your employment and enter,
directly or indirectly, into competition with the Company;

 

		(f)	The temporal and other restrictions contained in this “Non-Competition; Non-Solicitation”
provision are in all respects reasonable and necessary to protect the business goodwill, trade secrets, prospects and other reasonable
business interests of the Company;

 

    	 

    	 

    

 

		(g)	The enforcement of this “Non-Competition; Non-Solicitation” provision will not work
an undue or unfair hardship on you or otherwise be oppressive to you; it being specifically acknowledged and agreed by you that
you have activities and other business interests and opportunities which will provide you adequate means of support if the provisions
of this “Non-Competition; Non-Solicitation” provision are enforced after your termination; and

 

		(h)	The enforcement of this “Non-Competition; Non-Solicitation” provision will neither
deprive the public of needed goods or services nor otherwise be injurious to the public.

 

The parties hereto further agree that
if a court of competent jurisdiction determines that the length of time or any other restriction, or portion thereof, set forth
in this “Non-Competition; Non-Solicitation” provision is overly restrictive and unenforceable, the court shall reduce
or modify such restrictions to those which it deems reasonable and enforceable under the circumstances, and as so reduced or modified,
the parties hereto agree that the restrictions of this “Non-Competition; Non-Solicitation” provision shall remain
in full force and effect. The parties hereto further agree that if a court of competent jurisdiction determines that any provision
of this “Non-Competition; Non-Solicitation” provision is invalid or against public policy, the remainder of this “Non-Competition;
Non-Solicitation” provision shall not be affected thereby, and shall remain in full force and effect.AMENDED AND RESTATED

 

ADVISORY AGREEMENT

 

BY AND AMONG

 

AMERICAN REALTY CAPITAL TRUST V, INC.,

 

AMERICAN REALTY CAPITAL OPERATING PARTNERSHIP
V, L.P.,

 

AND

 

AMERICAN REALTY CAPITAL ADVISORS V, LLC

 

Dated as of June 5, 2013

 

    	 

    	 

    

 

TABLE OF
CONTENTS

 

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

 

    	 

    	 

    

 

	27.	 	ENTIRE AGREEMENT	 	18
	 	 	 	 	 
	28.	 	NO WAIVER	 	18
	 	 	 	 	 
	29.	 	PRONOUNS AND PLURALS	 	19
	 	 	 	 	 
	30.	 	HEADINGS	 	19
	 	 	 	 	 
	31.	 	EXECUTION IN COUNTERPARTS	 	19

 

    	 

    	 

    

 

ADVISORY AGREEMENT

 

THIS AMENDED AND RESTATED ADVISORY AGREEMENT
(this “Agreement”) dated as of June 5, 2013, is entered into among American Realty Capital Trust V, Inc.,
a Maryland corporation (the “Company”), American Realty Capital Operating Partnership V, L.P., a Delaware limited
partnership (the “Operating Partnership”), and American Realty Capital Advisors V, LLC, a Delaware limited liability
company.

 

WITNESSETH

 

WHEREAS, the Company is a Maryland corporation
created in accordance with Maryland General Corporation Law and intends to qualify as a REIT (as defined below);

 

WHEREAS, the Company is the general partner
of the Operating Partnership;

 

WHEREAS, the Company and the Operating Partnership
desire to avail themselves of the experience, sources of information, advice, assistance and certain facilities of the Advisor
and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision
of the Board of Directors of the Company, all as provided herein;

 

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

 

WHEREAS, the Company, the Operating Partnership
and the Advisor entered into that certain Advisory Agreement, dated as of April 4, 2013, (as amended, the “Original Advisory
Agreement”); and

 

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

 

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

 

1.           
DEFINITIONS.   As used in this Agreement, the following terms have the definitions set forth below:

 

“ Acquisition Expenses”
means any and all expenses, exclusive of Acquisition Fees, incurred by the Company, the Operating Partnership, the Advisor or any
of their Affiliates in connection with the selection, evaluation, acquisition, origination, making or development of any Investments,
whether or not acquired, including, without limitation, legal fees and expenses, travel and communications expenses, brokerage
fees, costs of appraisals, nonrefundable option payments on property not acquired, accounting fees and expenses, title insurance
premiums and the costs of performing due diligence.

 

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

 

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

 

    	1

    	 

    

 

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

 

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

 

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

 

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

  

“Average Invested Assets
” has the meaning set forth in the Articles of Incorporation.  For an equity interest owned in a Joint Venture,
the calculation of Average Invested Assets shall take into consideration the underlying Joint Venture’s aggregate book value
for the equity interest.

 

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

 

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

 

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

 

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

 

    	2

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

“Cost of Assets”
means, with respect to a Real Estate Asset, the purchase price,

Acquisition Expenses, capital expenditures and other customarily
capitalized costs, but shall exclude Acquisition Fees associated with such Real Estate Asset.

 

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

 

“Dealer Manager Fee”
means the fee from the sale of Shares in a Primary Offering, payable to the Dealer Manager for serving as the dealer manager of
such Primary Offering.

 

“Director” means
a director of the Company.

 

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

 

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

 

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

 

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

  

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

 

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

 

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

 

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

 

    	3

    	 

    

 

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

 

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

 

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

 

“Independent Valuation Advisor”
means a firm that is (i) engaged in the business of conducting appraisals on real estate properties, (ii) not an affiliate of the
Advisor and (iii) engaged by the Company with the Board’s approval to appraise the Real Properties and other Investments
pursuant to the Valuation Guidelines.

 

“Insourced Acquisition Expenses”
means Acquisition Expenses incurred in connection with services performed by the Advisor or any of its Affiliates, including
legal advisory expenses, due diligence expenses, personnel expenses, acquisition-related administrative and advisory expenses,
survey, property, contract review expenses, travel and communications expenses and other closing costs.

 

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

 

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

 

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

 

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

 

“Management Agreement”
means the Property Management and Leasing Agreement, dated as of April 4, 2013, among the Company, the Operating Partnership and
American Realty Capital Properties V, LLC, as the same may be amended from time to time.

 

“Market Check”
means an analysis comparing (a) the amount of Insourced Acquisition Expenses paid in the previous calendar year to the Advisor
or any of its Affiliates with (b) the projected amount of Acquisition Expenses for the following calendar year assuming that a
Person other than the Advisor or its Affiliates performs substantially similar services for a substantially similar amount of Investments.

  

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

 

    	4

    	 

    

 

“NASAA REIT Guidelines”
means the Statement of Policy Regarding Real Estate Investment Trusts as revised and adopted by the North American Securities Administrators
Association on May 7, 2007, as the same may be amended from time to time.

 

“NAV” means the
Company’s net asset value, calculated pursuant to the Valuation Guidelines.

 

“NAV
Pricing Start Date” means the first date on which the Company calculates NAV.

 

“Net Income” means,
for any period, the Company’s total revenues applicable to such period, less the total expenses applicable to such period
other than additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the
sale of the Company’s assets. 

  

“Notice” has the
meaning set forth in Section 23.

 

“Offering” means
any public offering and sale of Shares pursuant to an effective registration statement filed under the Securities Act.

 

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

 

“Operating Partnership Agreement”
means the Agreement of Limited Partnership of the Operating Partnership, dated as of April 4, 2013, among the Company, American
Realty Capital Trust V Special Limited Partner, LLC, and the Advisor, as the same may be amended from time to time.

 

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

 

“Organization and Offering Expenses”
means all expenses (other than the Selling Commission and the Dealer Manager Fee) to be paid by the Company in connection with
an Offering, including legal, accounting, printing, mailing and filing fees, charges of the escrow holder and transfer agent, charges
of the Advisor for administrative services related to the issuance of Shares in an Offering, reimbursement of the Advisor for costs
in connection with preparing supplemental sales materials, the cost of bona fide training and education meetings held by the Company
(primarily the travel, meal and lodging costs of the registered representatives of broker-dealers), attendance and sponsorship
fees and cost reimbursement for employees of the Company’s Affiliates to attend retail seminars conducted by broker-dealers
and, in special cases, reimbursement to soliciting broker-dealers for technology costs associated with an Offering, costs and expenses
related to such technology costs, and costs and expenses associated with facilitation of the marketing of the Shares and the ownership
of Shares by such broker-dealer’s customers.

 

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

 

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

  

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

 

“Prospectus” means
a final prospectus of the Company filed pursuant to Rule 424(b) of the Securities Act, as the same may be amended or supplemented
from time to time. 

 

“Real Estate Assets”
means any investment by the Company or the Operating Partnership in unimproved and improved Real Property (including fee or leasehold
interests, options and leases), directly, through one or more subsidiaries or through a Joint Venture.

 

“Real Estate Commission”
means the fees payable to the Advisor pursuant to Section 10(c).

 

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

 

    	5

    	 

    

 

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

 

“Registration Statement”
means the Company’s registration statement on Form S-11 (File No. 333-180274) and the prospectus contained therein.

 

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

 

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

 

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

 

“Selling Commission”
means the fee payable to the Dealer Manager and reallowable to Soliciting Dealers with respect to Shares sold by them in a Primary
Offering.

 

“Shares” means
the shares of beneficial interest or of common stock of the Company
of any class or series, including Common Stock, that has the right to elect the Directors of the Company.

 

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

 

    	6

    	 

    

 

“Sponsor” means
AR Capital, LLC, a Delaware limited liability company.

 

“Stockholders”
means the holders of record of the Shares
as maintained on the books and records of the Company or its transfer agent.

 

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

  

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

 

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

 

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

 

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

 

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

 

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

 

(a)           serve
as the Company’s and the Operating Partnership’s investment and financial advisor;

 

(b)           provide
the daily management for the Company and the Operating Partnership and perform and supervise the various administrative functions
necessary for the day-to-day management of the operations of the Company and the Operating Partnership;

 

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

 

    	7

    	 

    

 

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

 

(e)           subject
to the provisions of Section 4 , (i) participate in formulating an investment strategy and asset allocation framework;
(ii) locate, analyze and select potential Investments; (iii) structure and negotiate the terms and conditions of transactions
pursuant to which acquisitions and dispositions of Investments will be made; (iv) research, identify, review and recommend
acquisitions and dispositions of Investments to the Board and make Investments on behalf of the Company and the Operating Partnership
in compliance with the investment objectives and policies of the Company; (v) arrange for financing and refinancing and make
other changes in the asset or capital structure of, and dispose of, reinvest the proceeds from the sale of, or otherwise deal with,
Investments; (vi) enter into leases and service contracts for Real Estate Assets and, to the extent necessary, perform all
other operational functions for the maintenance and administration of such Real Estate Assets; (vii) actively oversee and
manage Investments for purposes of meeting the Company’s investment objectives and reviewing and analyzing financial information
for each of the Investments and the overall portfolio; (viii) select Joint Venture partners, structure corresponding agreements
and oversee and monitor these relationships; (ix) oversee, supervise and evaluate Affiliated and non-Affiliated property managers
who perform services for the Company or the Operating Partnership; (x) oversee Affiliated and non-Affiliated Persons with
whom the Advisor contracts to perform certain of the services required to be performed under this Agreement; (xi) manage accounting
and other record-keeping functions for the Company and the Operating Partnership, including reviewing and analyzing the capital
and operating budgets for the Real Estate Assets and generating an annual budget for the Company; (xii) recommend various
liquidity events to the Board when appropriate; and (xiii) source and structure Real Estate Related Loans; 

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	8

    	 

    

 

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

 

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

  

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

 

(q)           maintain
the Company’s accounting and other records and assist the Company in filing all reports required to be filed by it with the
Securities and Exchange Commission, the Internal Revenue Service and other regulatory agencies;

 

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

 

(s)           at the end of each quarter, calculate
the NAV as provided in the Registration Statement, and in connection therewith, obtain appraisals performed by the Independent
Valuation Advisor; and

 

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

 

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

 

4.           
AUTHORITY OF ADVISOR.

 

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

 

(b)           Notwithstanding
anything herein to the contrary, all Investments will require the prior approval of the Board, any particular Directors specified
by the Board or any committee of the Board specified by the Board, as the case may be.

 

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

 

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

 

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

 

6.           
NO PARTNERSHIP OR JOINT VENTURE.   Except as provided in Section 10(g), the parties to this Agreement are
not partners or joint venturers with each other and nothing herein shall be construed to make them partners or joint venturers
or impose any liability as such on either of them.

 

    	9

    	 

    

 

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

 

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

 

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

 

10.        
FEES.

 

(a)         
Acquisition Fee.  Subject to Section 10(b), the Company shall pay an Acquisition Fee to the Advisor
or its Affiliates as compensation for services rendered in connection with the investigation, selection and acquisition (by purchase,
investment or exchange) of Investments. If the Advisor is terminated without Cause pursuant to Section 17(a), the Advisor
or its Affiliates shall be entitled to an Acquisition Fee for any Investments acquired after the Termination Date for which
a contract to acquire any such Investment had been entered into at or prior to the Termination Date. The total Acquisition
Fee payable to the Advisor or its Affiliates shall equal one percent (1.0%) of the Contract Purchase Price of each Investment.  
The purchase price allocable for an Investment held through a Joint Venture shall equal the product of (i) the Contract Purchase
Price of the Investment and (ii) the direct or indirect ownership percentage in the Joint Venture held directly or indirectly
by the Company or the Operating Partnership.  For purposes of this Section 10(a), “ownership percentage”
shall be the percentage of capital stock, membership interests, partnership interests or other equity interests held by the Company
or the Operating Partnership, without regard to classification of such equity interests.  The Company shall pay to the
Advisor or its Affiliates the Acquisition Fee promptly upon the closing of the Investment and shall cover services rendered by
the Advisor or its Affiliates until such time as a letter of intent to purchase such Investment has been submitted to the seller
by the Advisor and the Advisor has presented a detailed investment memorandum to the Board of Directors for approval.  In
addition, if during the period ending two years after the close of the initial Offering, the Company sells an Investment and then
reinvests in other Investments, the Company will pay to the Advisor or its Affiliates one percent (1.0%) of the Contract Purchase
Price of the Investments. 

 

(b)         
Limitation on Total Acquisition Fees, Financing Coordination Fees and Acquisition Expenses.  

 

(i) The total of all “Acquisition
Fees” (as defined in the Articles of Incorporation), Financing Coordination Fees and Acquisition Expenses payable
in connection with the Company’s total portfolio of Investments and reinvestments, if any, shall be reasonable and
shall not exceed an amount equal to four and one-half percent (4.5%) of the Contract Purchase Price of the Company’s total
portfolio of Investments or four and one-half percent (4.5%) of the amount advanced for the Company’s total portfolio of
Investments; provided, however, that once all the proceeds from the initial Offering have been fully invested,
the total of all Acquisition Fees and Financing Coordination Fees shall not exceed one and one-half percent (1.5%) of the
Contract Purchase Price of all the Investments acquired.

 

    	10

    	 

    

 

(ii) In accordance with the Articles
of Incorporation, the total of all Acquisition Fees, Financing Coordination Fees and Acquisition Expenses payable in connection
with any Investment or any reinvestment shall be reasonable and shall not exceed an amount equal to four and one-half percent (4.5%)
of the Contract Purchase Price of the Investment or four and one-half percent (4.5%) of the amount advanced for any Investment;
provided, further, however, that a majority of the Directors (including a majority of the Independent
Directors) not otherwise interested in the transaction may approve fees and expenses in excess of these limits if they determine
the transaction to be commercially competitive, fair and reasonable to the Company.

 

(c)           
Real Estate Commission.  In connection with a Sale of a Real Estate Asset in which the Advisor or any Affiliate
of the Advisor provides a substantial amount of services, as determined by the Independent Directors, the Company shall pay to
the Advisor or its assignees a Real Estate Commission up to the lesser of (i) two percent (2.0%) of the Contract Sales Price
of such Real Estate Asset or (ii) one-half of the Competitive Real Estate Commission paid if a non-Affiliate broker is also involved;
provided, however, that in no event may the Real Estate Commission paid to the Advisor, its Affiliates and non-Affiliates,
exceed the lesser of six percent (6.0%) of the Contract Sales Price and a Competitive Real Estate Commission.

 

(d)           
Financing Coordination Fee.   The Company shall pay a Financing Coordination Fee to the Advisor or its
assignees in connection with the financing of any Investment, assumption of any Loans with respect to any Investment or refinancing
of any Loan in an amount equal to 0.75% of the amount made available and/or outstanding under any such Loan, including any assumed
Loan.  The Advisor may reallow some of or all this Financing Coordination Fee to reimburse third parties with whom it
may subcontract to procure any such Loan.

  

(e)           
Annual Subordinated Performance Fee. The Company may pay the Advisor an Annual Subordinated Performance Fee calculated
on the basis of the total return to Stockholders, payable monthly in arrears in any year in which the Company’s total return
on Stockholders’ capital contributions exceeds six percent (6%) per annum, in an amount equal to fifteen percent (15%) of
the excess total return, provided, that the Annual Subordinated Performance Fee shall not exceed ten percent (10%) of the aggregate
total return for such year.

 

(f)           
Payment of Fees.   In connection with the Acquisition Fee, Real Estate Commission, Annual Subordinated
Performance Fee and Financing Coordination Fee, the Company shall pay such fees to the Advisor or its assignees in cash, in Shares,
or a combination of both, the form of payment to be determined in the sole discretion of the Advisor. For the purposes of the payment
of any fees in Shares, (i) if at the applicable time an Offering is underway, (a) prior to the NAV Pricing Start Date, each Share
shall be valued at the per-share offering price of the Shares in such Offering minus the maximum Selling Commissions and Dealer
Manager Fee allowed in such Offering, and (b) after the NAV Pricing Start Date, each Share shall be valued at the then-current
NAV per Share; and (ii) at all other times, each Share shall be valued by the Board in good faith (A) at the estimated value thereof,
calculated in accordance with the provisions of NASD Rule 2340(c)(1) (or any successor or similar FINRA rule), or (B) if no such
rule shall then exist, at the fair market value thereof; provided, however, that in the case of Asset Management Fees payable in
grants of restricted Shares, each Share shall be valued in accordance with the provisions of the equity incentive plan of the Company
pursuant to which such grants are to be made.

  

(g)       
   Exclusion of Certain Transactions. 

 

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

 

    	11

    	 

    

 

(ii)          Neither
the Company nor the Operating Partnership shall make Loans to the Advisor
or any Affiliate thereof or certain of the Stockholders except Mortgages (as defined in the Articles of Incorporation) pursuant
to Section 9.3(iii) of the Articles of Incorporation (or any successor provision) or loans to wholly owned subsidiaries of the
Company. None of the Advisor nor any Affiliate thereof, or certain of the Stockholders shall make loans to the Company or the Operating
Partnership, or to Joint Ventures, unless approved by a majority of the Directors (including a majority of the Independent Directors)
not otherwise interested in such transaction as fair, competitive, and commercially reasonable, and no less favorable to the Company
or Operating Partnership, as applicable, than comparable loans between unaffiliated parties.

 

(iii)          The
Company and the Operating Partnership may enter into Joint Ventures
with the Advisor or its Affiliates provided that (a) a majority of Directors (including a majority of Independent Directors) not
otherwise interested in the transaction approves the transaction as being fair and reasonable to the Company or Operating Partnership,
as applicable, and (b) the investment by the Company or Operating Partnership, as applicable, is on substantially the same terms
as those received by other joint venturers.

 

(iv)          If
the Board elects to internalize any management services provided by the Advisor, neither the Company nor the Operating
Partnership shall pay any compensation or other remuneration to the Advisor or its Affiliates in connection with such internalization
of management services.

 

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

 

(i)      
    Limitation on Insourced Acquisition Expenses.

 

(i) The total of all Insourced Acquisition
Expenses with respect to any Investment shall initially be fixed at, and shall not exceed, 0.50% of the Contract Purchase Price
of the Investment or 0.50% of the amount advanced for an Investment, which the Company shall pay to the Advisor or its Affiliate
at the closing of each Investment. For the avoidance of doubt, no payment in respect of Insourced Acquisition Expenses shall be
made unless the Advisor or its Affiliates shall have performed services related to selecting, evaluating and acquiring an Investment,
regardless of whether such Investment is ultimately acquired.

 

(ii) The total of all Insourced Acquisition
Expenses for any calendar year shall initially be fixed at, and shall not exceed, 0.50% of the Contract Purchase Price of the Investments
acquired during such period or 0.50% of the amounts advanced for the Investments made during such period (to be prorated for any
partial calendar year); provided, however, within a reasonable period of time following the end of each such calendar
year, the Company shall perform a Market Check and provide the results thereof to the Advisor within a reasonable period of time
and, if the result of the Market Check is that the projected amount of Acquisition Expenses that would be incurred if substantially
similar services with respect to a substantially similar amount of properties were to be provided by a Person other than the Advisor
or any of its Affiliates during the subsequent calendar year is lower than the amount of Insourced Acquisition Expenses paid to
the Advisor or its Affiliates during the previous calendar year, either (A) the Advisor shall agree to reduce the cap on the Insourced
Acquisition Expenses until the next Market Check such that the cap on Insourced Acquisition Expenses does not exceed the projected
amount of Acquisition Expenses that would be incurred if substantially similar services with respect to a substantially similar
amount of properties were to be provided by a Person other than the Advisor or any of its Affiliates during the subsequent calendar
year or (B) the Company may outsource to a Person other than the Advisor or its Affiliate certain services previously provided
by the Advisor or its Affiliates until the next Market Check.

 

    	12

    	 

    

 

(iii) This Section 10(i) of this Agreement
shall be effective as of May 15, 2013 with respect to each Investment going forward.

 

11.       
  EXPENSES.

 

(a)           In
addition to the compensation paid to the Advisor pursuant to Section 10, the Company or the Operating Partnership shall
pay directly or reimburse the Advisor for all the expenses paid or incurred by the Advisor or its Affiliates in connection with
the services it provides to the Company and the Operating Partnership pursuant to this Agreement, including, the following:

 

(i)            Organization
and Offering Expenses, including third-party due diligence fees related to the Primary Offering, as set forth in detailed and itemized
invoices; provided, however, that the Company shall not reimburse the Advisor to the extent such reimbursement would cause
the total amount of Organization and Offering Expenses paid by the Company and the Operating Partnership to exceed two percent
(2.0%) of the Gross Proceeds raised in all Primary Offerings;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(x)           expenses
connected with payments of Distributions;

 

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

 

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

 

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

 

    	13

    	 

    

 

(xiv)       audit,
accounting and legal fees.

 

(b)           Commencing
upon the earlier to occur of (i) the fifth fiscal quarter after the Company makes its first Investment and (ii) six (6) months
after the commencement of the initial Offering, expenses incurred by the Advisor on behalf of the Company and the Operating Partnership
or in connection with the services provided by the Advisor hereunder and payable pursuant to this Section 11 shall be reimbursed
(excluding Insourced Acquisition Expenses which shall be paid as described in Section 10(i)(i) of this Agreement), no less than
monthly, to the Advisor.

 

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

 

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

 

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

 

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

 

    	14

    	 

    

 

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

 

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

 

17.         
TERMINATION BY THE PARTIES.   This Agreement may be terminated upon sixty (60) days’ prior written notice
(a) by the Independent Directors of the Company or the Advisor, without Cause and without penalty, (b) by the Advisor for Good
Reason, or (c) by the Advisor upon a Change of Control; provided, that termination of this Agreement with Cause shall be
upon I just-five (45) days’ prior written notice.  The provisions of Sections 15 and 19 through
31 (inclusive) of this Agreement shall survive any expiration or earlier termination of this Agreement. 

 

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

 

    	15

    	 

    

 

19.         
PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION.

 

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

  

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

 

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

 

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

 

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

 

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

 

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

 

21.         
INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP. 

 

(a)           The
Company and the Operating Partnership, jointly and severally, shall indemnify and hold harmless the Advisor and its Affiliates,
as well as their respective officers, directors, equity holders, members, partners, stockholders, other equity holders and employees
(collectively, the “Indemnitees,” and each, an “Indemnitee”), from and against all losses,
claims, damages, losses, joint or several, expenses (including reasonable attorneys’ fees and other legal fees and expenses),
judgments, fines, settlements, and other amounts (collectively, “Losses,” and each, a “Loss”)
arising in the performance of their duties hereunder, including reasonable attorneys’ fees, to the extent such Losses are
not fully reimbursed by insurance, and to the extent that such indemnification would not be inconsistent with the laws of the State
of New York, the Articles of Incorporation or the provisions of Section II.G of the NASAA REIT Guidelines. Notwithstanding the
foregoing, the Company and the Operating Partnership shall not provide for indemnification of an Indemnitee for any Loss suffered
by such Indemnitee, nor shall they provide that an Indemnitee be held harmless for any Loss suffered by the Company and the Operating
Partnership, unless all the following conditions are met:

 

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

 

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

 

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

 

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(iv)        such
indemnification or agreement to hold harmless is recoverable only out of the Company’s net assets and not from the Stockholders.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)         the
Indemnitee undertakes to repay the advanced funds to the Company or the Operating Partnership, together with the applicable legal
rate of interest thereon, in cases in which such Indemnitee is found not to be entitled to indemnification.

 

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

 

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

 

	To the Company:	American Realty Capital Trust V, Inc.
	 	405 Park Avenue
	 	New York, New York 10022
	 	Attention:	Edward M. Weil, Jr.
	 	 	President
	 	 
	 	with a copy to:
	 	 
	 	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, New York 10036
	 	Attention:  Peter M. Fass, Esq.
	 	Attention: James P. Gerkis, Esq.

 

    	17

    	 

    

 

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

 

Any party may at any time give Notice in writing to the other
parties of a change in its address for the purposes of this Section 23 .

 

24.         
MODIFICATION.   This Agreement shall not be amended, supplemented, terminated, or discharged, in whole or in part,
except by an instrument in writing signed by the parties hereto, or their respective successors or assignees.

 

25.         
SEVERABILITY.   The provisions of this Agreement are independent of and severable from each other, and no provision
shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may
be invalid or unenforceable in whole or in part.

 

26.    
     GOVERNING LAW.   The provisions of this Agreement shall be construed and
interpreted in accordance with the laws of the State of New York as at the time in effect, without regard to the principles
of conflicts of laws thereof.

 

27.         
ENTIRE AGREEMENT.   This Agreement contains the entire agreement and understanding among the parties hereto with
respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and
conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof.  The
express terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof.
 

 

28.         
NO WAIVER.   Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege
under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or
privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver
of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or
privilege with respect to any other occurrence.  No waiver shall be effective unless it is in writing and is signed by
the party asserted to have granted such waiver.

 

    	18

    	 

    

 

29.         PRONOUNS
AND PLURALS.   Whenever the context may require, any pronoun used in this Agreement shall include the corresponding
masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

 

30.         
HEADINGS.   The titles of sections and subsections contained in this Agreement are for convenience only, and they
neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

 

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

 

[Remainder of page intentionally left
blank]

 

    	19

    	 

    

 

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

 

	 	AMERICAN REALTY CAPITAL TRUST V, INC.

 

	 	By:	/s/ Edward M. Weil, Jr.	 
	 	 	Name: Edward M. Weil, Jr.
	 	 	Title:   President

 

	 	
        AMERICAN REALTY CAPITAL OPERATING

        PARTNERSHIP V, L.P.

 

	 	By:	
        American Realty Capital Trust V, Inc., its General

        Partner

 

	 	By:	/s/ Edward M. Weil, Jr.	 
	 	 	Name: Edward M. Weil, Jr.
	 	 	Title:   President

 

	 	AMERICAN REALTY CAPITAL ADVISORS V, LLC

 

	 	By:	
        American Realty Capital Trust V Special Limited Partner,

        LLC, its Member

 

	 	By:	AR Capital, LLC, its Managing Member

 

	 	By:	/s/ Nicholas S. Schorsch	 
	 	 	Name: Nicholas S. Schorsch
	 	 	Title: Authorized Signatory

 

    	20

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