Document:

EX-10.6

 Exhibit 10.6 
  

 
  

AMENDED AND RESTATED 

OPERATING AGREEMENT 
 OF

 BROADSTONE NET LEASE, LLC 

THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR APPROVED OR DISAPPROVED BY THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION NOR BY THE SECURITIES REGULATORY AUTHORITY OF ANY STATE, NOR HAS ANY COMMISSION OR AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF ANY OFFERING OF INTERESTS IN BROADSTONE NET LEASE, LLC OR THE
ACCURACY OR ADEQUACY OF ANY DISCLOSURE MADE IN CONNECTION THEREWITH. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. ANY INTERESTS ISSUED HEREUNDER MAY NOT BE RESOLD WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
APPLICABLE STATE SECURITIES LAWS OR EXEMPTION THEREFROM. 
 Dated December 31, 2007 

 
  

 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	Page No.	 
		
	ARTICLE I DEFINED TERMS	  	 	1	 
				
		 	1.1	 	Defined Terms	  	 	1	 
				
		 	1.2	 	Accounting Terms and Determinations	  	 	8	 
				
		 	1.3	 	Interpretation	  	 	8	 
				
		 	1.4	 	Managing Member Standard of Care	  	 	9	 
		
	ARTICLE II ORGANIZATIONAL AND GENERAL MATTERS	  	 	9	 
				
		 	2.1	 	Name	  	 	9	 
				
		 	2.2	 	Purpose	  	 	9	 
				
		 	2.3	 	Powers	  	 	9	 
				
		 	2.4	 	Principal Office	  	 	10	 
				
		 	2.5	 	Term	  	 	10	 
				
		 	2.6	 	Required Filings	  	 	10	 
				
		 	2.7	 	Nature of Membership Units; Title to Operating Company Assets	  	 	10	 
				
		 	2.8	 	No Partnership Intended for Non-Tax Purposes	  	 	10	 
		
	ARTICLE III CAPITALIZATION	  	 	10	 
				
		 	3.1	 	Capital Contributions	  	 	10	 
				
		 	3.2	 	Issuances of Additional Membership Units	  	 	11	 
		
	ARTICLE IV MANAGEMENT	  	 	12	 
				
		 	4.1	 	Management by the Managing Member	  	 	12	 
				
		 	4.2	 	Expenses	  	 	15	 
				
		 	4.3	 	Third Party Reliance	  	 	15	 
				
		 	4.4	 	Designation of Tax Matters Member	  	 	15	 
				
		 	4.5	 	Competitive Interests	  	 	16	 
				
		 	4.6	 	Other Activities	  	 	16	 
				
		 	4.7	 	Investment Opportunities	  	 	16	 
				
		 	4.8	 	Conflicts of Interest	  	 	16	 
				
		 	4.9	 	Limitation of Liability	  	 	16	 
				
		 	4.10	 	Indemnification of Managing Member and Related Persons	  	 	17	 
				
		 	4.11	 	Fiscal Year	  	 	18	 
				
		 	4.12	 	Books and Records	  	 	18	 
				
		 	4.13	 	Independent Auditors	  	 	19	 
				
		 	4.14	 	Annual Financial Statements	  	 	19	 
				
		 	4.15	 	Tax Information	  	 	19	 
				
		 	4.16	 	Bank Accounts	  	 	19	 
		
	ARTICLE V MEMBER VOTING AND MEETINGS	  	 	19	 
				
		 	5.1	 	Voting Rights	  	 	19	 
				
		 	5.2	 	Annual Meeting	  	 	19	 
				
		 	5.3	 	Special Meetings	  	 	20	 
				
		 	5.4	 	Notice of Member Meetings	  	 	20	 
				
	    	 	5.5	 	Quorum	  	 	20	 

  
 (i) 

									
		 	5.6	 	Voting	  	 	20	 
				
		 	5.7	 	Proxies	  	 	20	 
				
		 	5.8	 	Written Consents	  	 	20	 
				
		 	5.9	 	Conduct of Meetings	  	 	21	 
		
	ARTICLE VI CAPITAL ACCOUNTS; ALLOCATIONS	  	 	21	 
				
		 	6.1	 	Capital Accounts	  	 	21	 
				
		 	6.2	 	Allocations to Capital Accounts	  	 	21	 
				
		 	6.3	 	Tax Allocations	  	 	24	 
				
		 	6.4	 	Determinations by Managing Member	  	 	25	 
		
	ARTICLE VII DISTRIBUTIONS	  	 	25	 
				
		 	7.1	 	Distributions	  	 	25	 
				
		 	7.2	 	Restrictions on Distributions	  	 	26	 
				
		 	7.3	 	Record Holders	  	 	26	 
				
		 	7.4	 	Distribution Reinvestment	  	 	26	 
				
		 	7.5	 	Final Distribution	  	 	26	 
		
	ARTICLE VIII CONVERSION RIGHTS; ASSIGNMENT OF INTERESTS	  	 	26	 
				
		 	8.1	 	Conversion Rights	  	 	26	 
				
		 	8.2	 	Withdrawals and Assignments by Members	  	 	28	 
				
		 	8.3	 	Sale of Membership Units; Applicable Law Withdrawal	  	 	30	 
		
	ARTICLE IX DISSOLUTION OF THE COMPANY	  	 	31	 
				
		 	9.1	 	Dissolution of Operating Company	  	 	31	 
				
		 	9.2	 	Winding Up of Operating Company Affairs and Distribution of Assets	  	 	32	 
				
		 	9.3	 	Distributions Upon Dissolution and Liquidation	  	 	32	 
		
	ARTICLE X MISCELLANEOUS PROVISIONS	  	 	32	 
				
	    	 	10.1	 	Notices	  	 	32	 
				
		 	10.2	 	Application of New York Law	  	 	32	 
				
		 	10.3	 	Consent To Jurisdiction	  	 	33	 
				
		 	10.4	 	Waiver of Trial by Jury	  	 	33	 
				
		 	10.5	 	Amendments to Agreement	  	 	33	 
				
		 	10.6	 	Severability	  	 	34	 
				
		 	10.7	 	Successors	  	 	34	 
				
		 	10.8	 	Entire Agreement	  	 	34	 
				
		 	10.9	 	Power of Attorney	  	 	34	 
				
		 	10.10	 	    Waiver of Action for Partition	  	 	35	 
				
		 	10.11	 	    Number and Gender	  	 	35	 
				
		 	10.12	 	    Counsel	  	 	35	 
				
		 	10.13	 	    Survival	  	 	35	 
				
		 	10.14	 	    Ownership and Use of Name	  	 	35	 

  
 (ii) 

 AMENDED AND RESTATED 

OPERATING AGREEMENT 
 OF

 BROADSTONE NET LEASE, LLC 

THIS AMENDED AND RESTATED OPERATING AGREEMENT is effective December 31, 2007, by and among BROADSTONE NET LEASE, LLC (the
“Operating Company”), Knollwood Ventures, Inc., Box Tree Assets, LLC, Broadstone Ventures, LLC and Nelson Leenhouts (collectively, the “Original Members”), Broadstone Net Lease, Inc. (the “Managing
Member”) and such other Additional Members (as hereinafter defined) as may be added pursuant to the terms hereof. 
 R E C I T A
L S : 
 WHEREAS, the Original Members previously formed the Operating Company as a limited liability company under the New York
Limited Liability Company Law (the “LLC Law”); 
 WHEREAS, the Operating Company and certain of the Original Members
entered into an Operating Agreement dated August 8, 2006, as amended (the “Original Operating Agreement”), which sets forth the agreements among the Operating Company and the Original Members with respect to the Operating
Company; 
 WHEREAS, the Managing Member is conducting a private offing of its common stock (“Offering”), the
proceeds of which are to be used to make capital contributions in the Operating Company; 
 WHEREAS, the Original Members desire to
admit the Managing Member as the sole managing member of the Operating Company contemporaneously with the initial closing of the Offering; and 

WHEREAS, the Operating Company and the Original Members desire to amend and restate the Original Operating Agreement to effectuate the
same on the terms and conditions herein. 
 NOW, THEREFORE, in consideration of the premises and mutual promises and undertakings of
the parties hereto, and intending to be legally bound hereby, the parties agree to amend and restate the Original Operating Agreement in its entirety as follows: 

ARTICLE I 
 DEFINED
TERMS 
 1.1    Defined Terms. The defined terms used in this Agreement has the meanings specified below:

 “Additional Member” means Persons: (a) admitted to the Operating Company as an additional Member, or (b) an
existing Member who increases the amount of its Capital Contributions. 

 “Adjusted Capital Account Deficit” means with respect to any Member or
Assignee, the deficit balance, if any, in such Person’s Capital Account as of the end of the relevant fiscal year, after giving effect to the following adjustments: 

(a)      Credit to such Capital Account any amounts which such Person is deemed to be obligated to restore
pursuant to the penultimate sentences of Treasury Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5) after taking into account changes during such year in the
Operating Company “minimum gain” (as defined in Treasury Regulations Section 1.704-2(b)(2) and (d)) and Member “minimum gain”; and 

(b)      Debit to such Capital Account the items described in Sections
1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), and 1.704-1(b)(2)(ii)(d)(6) of the Treasury Regulations. 

The foregoing definition of Adjusted Capital Account Deficit is intended to comply with the provisions of
Section 1.704-1(b)(2)(ii)(d) of the Treasury Regulations and shall be interpreted consistently therewith. No Member shall have any obligation to pay any additional Capital Contribution to make up any
Adjusted Capital Account Deficit. 
 “Affiliate” means a Person who is (i) in the case of an individual, any
immediate family member of such Person, (ii) any officer, director, trustee, partner, manager, employee or holder of ten percent (10%) or more of any class of the voting securities of or equity interest in such Person; (iii) any
corporation, partnership, limited liability company, trust or other entity controlling, controlled by or under common control with such Person; or (iv) any officer, director, trustee, partner, manager, employee or holder of ten percent (10%) or
more of the outstanding voting securities of any corporation, partnership, limited liability company, trust or other entity controlling, controlled by or under common control with such Person. For purposes of this definition, the term
“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
the ownership of voting rights, by contract or otherwise. 
 “Agreement” means this Amended and Restated Operating
Agreement as amended, modified, supplemented or restated from time to time, as the context requires. 
 “Applicable Law”
means any applicable law, regulation, ruling, order or directive, or license, permit or other similar approval of any Governmental Authority, now or hereafter in effect, to which a Member (or any of its Affiliates) is or may be subject. 

“Articles of Organization” has the meaning set forth in Section 2.5(a). 

“Asset Management Agreement” has the meaning set forth in Section 4.1(c). 

“Asset Manager” means Broadstone Asset Management, LLC. 

“Assignee” means a Person who acquired a Membership Unit, but who is not a Substitute Member. 

  
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 “Assignment” has the meaning set forth in Section 8.1(b). 

“Book Value” means with respect to any Operating Company asset, the asset’s adjusted basis for federal income tax
purposes except: (a) the initial Book Value of Non-Cash Assets contributed to the Operating Company as of the date of their contribution shall be their respective fair market value (net of liabilities
secured by such assets that the Operating Company is considered to assume or take subject to under Section 752 of the Code) as determined by the Managing Member; and (b) the Book Values of all Operating Company assets shall be adjusted to
equal their respective fair market values (as determined by the Managing Member), in accordance with the rules set forth in Section 1.704-1(b)(2)(iv)(f) of the Treasury Regulations, except as otherwise
provided herein, immediately prior to: (i) the date of the acquisition of any new or additional Membership Unit by any Additional Member in exchange for more than a de minimis Capital Contribution; (ii) the date of the actual
distribution of more than a de minimis amount of Operating Company property (other than a pro rata distribution) to a Member; (iii) the date of the grant of a Membership Unit to a Member as consideration for the provision of services to
or for the benefit of the Operating Company by an Additional Member acting in, or in anticipation of acting in, a Managing Member capacity, or (iv) the date of the actual liquidation of the Operating Company within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Treasury Regulations; provided that adjustments pursuant to the foregoing shall be made only if the Managing Member determines in its sole discretion that such adjustments
are necessary or appropriate to reflect the relative economic interests of the Members. The Book Value of any Operating Company asset distributed to any Member shall be adjusted immediately prior to such distribution to equal its fair market value,
as determined by the Managing Member. The Book Value of any Operating Company asset shall be adjusted to reflect any write down. 

“Business Day” means any day excluding a Saturday, a Sunday and any other day on which banks are required or authorized to
close in New York. 
 “Capital Account” means with respect to any Member or Assignee, the Capital Account maintained for
such Person in accordance with Treasury Regulation Section 1.704-1(b) and shall be interpreted and applied in a manner consistent with such Regulations. 

“Capital Contribution” means the cash and other property (at its fair market value, as determined by the Managing Member)
contributed to the capital of the Operating Company pursuant to Article III. 
 “Code” means the Internal Revenue Code of
1986, as amended, and the regulations promulgated thereunder (sometimes referred to as the “Treasury Regulations”) or corresponding provisions of subsequent revenue laws. 

“Common Stock” means the shares of common stock, $0.001 par value per share, of the Managing Member. 

“Conversion Right” has the meaning set forth in Section 8.1 hereof. 

“Corporation” means Broadstone Net Lease, Inc., a Maryland corporation. 

  
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 “Depreciation” means, for each fiscal year or other period, an amount
equal to the depreciation, amortization, or other cost recovery deduction allowable under the Code with respect to an asset for such year or other period, using any reasonable method selected by the Managing Member. 

“Determined Share Value” has the meaning set forth in the Articles of Incorporation of the Managing Member. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“Event of Termination” has the meaning set forth in Section 9.1. 

“Exculpated Person” means any of (a) the Managing Member, its Affiliates (including the Asset Manager and the Property
Manager) and Related Persons, or any manager, officer, shareholder, director, member, employee, representative or agent of the Managing Member or its Affiliates and (b) any Portfolio Entity or any director, manger officer, shareholder, partner,
member, employee, trustee, representative or agent of any Portfolio Entity. 
 “Governmental Authority” means any federal,
state or local governmental entity, authority or agency, court, tribunal, regulatory commission or other body, whether legislative, judicial or executive (or combination or permutation thereof) having jurisdiction as to the matter in question. 

“Income” and “Loss” means, for each fiscal year or other period, an amount equal to the Operating Company’s
taxable income or loss for such year or period, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be
included in taxable income or loss), with the following adjustments: 
 (a)      Any income of the Operating
Company that is exempt from federal income tax and not otherwise taken into account in computing Income or Loss pursuant to this definition of “Income” and “Loss” shall be taken into account as income; 

(b)      Any expenditures of the Operating Company described in Code Section 705(a)(2)(B) or treated as
Code Section 705(a)(2)(B) expenditures pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Income and Loss pursuant to this definition of
“Income” and “Loss” shall be taken into account as an expenditure; 
 (c)      In the
event the Book Value of any Operating Company asset is adjusted pursuant to the definition of “Book Value” as defined in Article I, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such
asset for purposes of computing Income and Loss; 
 (d)      Gain or loss resulting from any disposition of
Operating Company assets with respect to which gain or loss is recognized for federal income tax purposes shall be 

  
 -4- 

 
computed by reference to the Book Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Book Value; and 

(e)      In lieu of the depreciation, amortization, and other cost recovery deductions taken into account in
computing such taxable income or loss, there shall be taken into account Depreciation for such fiscal year or other period; 
 provided, however, any items
which are specially allocated pursuant to Sections 6.2(b) and 6.2(c) hereof shall not be taken into account in computing Income or Loss pursuant to this Section. 

“Independent Directors Committee” means the committee so designated in the Articles of Incorporation of the Managing Member,
as amended from time to time. 
 “Investment Operating Company Act” means the Investment Operating Company Act of 1940, as
the same may be hereafter amended from time to time. 
 “Investment Guidelines” means the investment objectives and
policies of the Operating Company and the Corporation set forth on Exhibit A to the Asset Management Agreement attached hereto, as they may be amended or modified from time to time by the Independent Directors Committee. 

“Liquidation” means (a) when used with reference to the Operating Company, the earlier of (i) the date upon which
the Operating Company is terminated under Section 708(b)(1) of the Code, or (ii) the date upon which the Operating Company ceases to be a going concern, and (b) when used with reference to any Member, the earlier of (i) the date
upon which there is a Liquidation of the Operating Company or (ii) the date upon which such Member’s entire Membership Unit in the Operating Company is terminated other than by transfer, assignment or other disposition to a Person other
than the Operating Company. 
 “LLC Law” has the meaning set forth in the recitals to this Agreement. 

“Managing Member” means Broadstone Net Lease, Inc., a Maryland corporation, and any successor thereto. 

“Managing Member Group Members” means the Managing Member, Broadstone Ventures, LLC, Knollwood Ventures, Inc., Box Tree
Assets LLC, and their respective assignees and successors in interest. 
 “Material Adverse Effect” means (a) a
violation of a statute, rule or regulation of any Governmental Authority that is reasonably likely to have a material adverse effect on the Properties or other assets owned by the Operating Company, or on the Operating Company, the Managing Member,
any Member, or any of their respective Affiliates, in each case taken as a whole, (b) an occurrence that is reasonably likely to subject a Property or any other asset owned by the Operating Company, the Operating Company, the Managing Member,
any other Member or any of their respective Affiliates to any material regulatory requirement to which it would not otherwise be subject, or which is reasonably likely to materially increase any such regulatory requirement beyond what it would
otherwise have been, (c) an occurrence that is reasonably 

  
 -5- 

 
likely to subject any Member to any tax under Section 897 of the Code, or (d) an occurrence that is reasonably likely to cause the Operating Company to be taxed as a corporation. 

“Members” means the Managing Member, the Original Members, and all of the Additional Members. The names and addresses of all
Members are set forth on Exhibit A, which shall be amended from time to time as provided herein. 
 “Membership
Unit” means a fractional, undivided share of the membership interests of all Members. The number of Membership Units existing on the date hereof through December 31, 2009 shall equal the aggregate amount of the paid-in Capital Contributions of all of the Members divided by $50.00. Thereafter, additional Capital Contributions shall be divided into Membership Units at a rate equal to one Membership Unit for each Capital
Contribution equal to the then current Determined Share Value. 
 “Member Non-Recourse
Deductions” has the meaning set forth in Sections 1.704-2(i)(1) and 1.704-2(i)(2) of the Treasury Regulations. 

“Non-Managing Member” means any Person named as a member other than the Managing
Member on Exhibit A, as such exhibit may be amended from time to time. 
 “New Shares” has the
meaning set forth in Section 3.2(c). 
 “Non-Cash Asset”
means an asset excluding cash or a cash equivalent. 
 “Non-Recourse
Deductions” has the meaning set forth in Section 1.704-2(b)(1) of the Treasury Regulations. 

“Operating Company” has the meaning set forth in the preamble to this Agreement. 

“Original Members” has the meaning set forth in the preamble to this Agreement and includes Broadstone
Ventures, LLC, Knollwood Ventures, Inc., Box Tree Assets LLC and Nelson Leenhouts. 
 “Original Operating
Agreement” has the meaning set forth in the recitals to this Agreement. 
 “Percentage Interest” means with
respect to any Member, the percentage determined by dividing the number of Membership Units held by such Member by the aggregate number of Membership Units of all the Members as of the date of determination, subject to appropriate adjustments if any
Preferred Units are authorized and outstanding. 
 “Person” means an individual or any entity, including, but not limited
to, a corporation, Operating Company, juridical entity, voluntary association, joint venture, trust, estate, unincorporated organization, statutory body or a government or any agency, instrumentality, authority or political subdivision thereof. 

  
 -6- 

 “Plan Asset Regulation” means the regulations promulgated by the United
States Department of Labor in Title 29, Code of Federal Regulations, Part 2510, Section 101.3, and any successor regulations thereto. 

“Preferred Units” has the meaning set forth in Section 3.2(c). 

“Prime Rate” means the rate of interest per annum published from time to time in the Wall Street
Journal as the prime rate. 
 “Private Placement Memorandum” means the Private Placement Memorandum,
dated October 22, 2007, as amended, supplemented and/or restated from time to time, pursuant to which shares of common stock are offered for sale by the Managing Member. 

“Property” or “Properties” means each parcel of real property in which the Operating
Company acquires ownership of (a) the fee or leasehold interest, or (b) an indirect fee or leasehold interest through an interest in any Portfolio Entity. 

“Property Management Agreement” has the meaning set forth in Section 4.1(d). 

“Property Manager” means Broadstone Real Estate, LLC, a New York limited liability company. 

“Related Persons” means Norman Leenhouts and his spouse, Amy L. Tait and Robert C. Tait and their
respective children and grandchildren and any Person who is an Affiliate of each such Person, which includes each Person included in the Managing Member Group Members. 

“Reserves” means such reserves established by the Managing Member, or the Asset Manager, which it reasonably
determines in its sole discretion to be necessary or desirable to provide for working capital of the Operating Company and to satisfy any contingent liabilities of the Operating Company hereof. 

“REIT” means a real estate investment trust as defined in Section 856 of the Code or any successor
provision. 
 “REIT Entities” has the meaning set forth in Section 10.2. 

“REIT Requirements” means all actions or omissions as may be necessary (including making appropriate
distributions from time to time) for the Managing Member to maintain its status as a real estate investment trust within the meaning of Section 856 et seq. of the Code, as such provisions may be amended from time to time, or the
corresponding provisions of succeeding law. 
 “Securities Act” means the Securities Act of 1933, as the
same may be hereafter amended from time to time. 
 “Shares” means the shares of common stock of the
Managing Member. 

  
 -7- 

 “Special Purpose Entity” means any Person in which the
Operating Company owns a direct or indirect controlling equity interest. 
 “Subsequent Closing” means the
admission to the Operating Company of an Additional Member occurring after December 31, 2007. 
 “Subscription
Agreement” means an agreement for subscription to purchase for cash or property interests in the Operating Company which shall be substantively identical to the form of Subscription Agreement then used by the Managing Member in connection
with any offering of its Shares. 
 “Substitute Member” means a Person admitted as a Member pursuant to
Section 8.1(c) as the successor to a Member. 
 “Tax Exempt Member” means a Member which is exempt
from federal income taxation under Section 501 of the Code. 
 “Temporary Investments” means
Operating Company assets which are invested in bank accounts, money market funds, marketable obligations issued or guaranteed by the United States Government or any political subdivision thereof, certificates of deposit, bankers’ acceptances
and other similar liquid investments, provided, however, Temporary Investments shall not include investments in Portfolio Entities. 

“Third Party” or “Third Parties” means a Person or Persons who is or are neither a Member
nor an Affiliate of a Member. 
 1.2      Accounting Terms and Determinations. All accounting terms
used in this Agreement and not otherwise defined has the meaning accorded to them in accordance with the tax accounting rules applied in the preparation of the Operating Company’s tax returns and, except as expressly provided herein, all
accounting determinations shall be made in accordance with such rules, consistently applied. 

1.3      Interpretation. 

(a)      Exhibits and Sections. References to an “Exhibit” are, unless otherwise specified, to
an Exhibit attached to this Agreement and references to a “section” or a “subsection” are, unless otherwise specified, to a section or a subsection of this Agreement. 

(b)      Construction. Wherever from the context it appears appropriate, each term stated in either the
singular or the plural shall include the singular and the plural, and pronouns stated in the masculine, the feminine or neuter gender shall include the masculine, the feminine and the neuter. The words “hereof”, “herein”,
“hereto” and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement. The terms “dollars” and “$”
shall mean United States of America dollars. Whenever the term “including” is used in this Agreement it shall be deemed to mean “including, but not limited to” or “including, without limitation.” 

  
 -8- 

 (c)      Captions. Captions contained in this
Agreement are inserted only as a matter of convenience and in no way define, limit or extend or otherwise affect the scope or intent of this Agreement or any provision hereof. 

1.4      Managing Member Standard of Care. Whenever in this Agreement the Managing Member is permitted or
required to make a decision: (a) in its “discretion” or under a grant of similar authority or latitude, the Managing Member shall be entitled to consider such interests and factors as it desires, including its own interests, and shall
have no duty or obligation to give any consideration to any interest of or factors affecting the Operating Company or any other Person, or (b) in its “good faith,” the Managing Member shall act with the care of a prudent person acting
in the conduct of such person’s own affairs, or (c) under another express standard, the Managing Member shall act under such express standard; and, in each case, shall not be subject to any other or different standard imposed by this
Agreement or other Applicable Law. 
 ARTICLE II 

ORGANIZATIONAL AND GENERAL MATTERS 

2.1      Name. The name of the Operating Company shall continue to be Broadstone Net Lease, LLC,
provided, however, the Managing Member may select another name, but it may not choose the name (or any derivative thereof) of any Member without the prior written consent of such Member. All transactions of the Operating Company, to the extent
permitted by applicable law, shall be carried on and completed in such name (it being agreed, however, that the Operating Company may adopt assumed or fictitious names in certain jurisdictions to the extent necessary or appropriate). 

2.2      Purpose. The purpose and nature of the business to be conducted by the Operating Company is:
(a) to conduct any business that may be lawfully conducted by a limited liability company organized pursuant to the LLC Law, provided, however, that as long as the Managing Member has determined to continue to qualify as a REIT, such business
shall be limited to and conducted in such a manner as to permit the Managing Member at all times to be classified as a REIT for federal income tax purposes, unless the Managing Member ceases to qualify as a REIT for reasons other than the conduct of
the business of the Operating Company; (b) to enter into any partnership, join venture or other similar arrangement to engage in any of the foregoing or the ownership of interests in any entity engage in any of the foregoing; and (c) to do
anything necessary or incidental to the foregoing which, in each case, is not in breach of this Agreement. 

2.3      Powers. The Operating Company is empowered to do any and all acts and things necessary,
appropriate, proper, advisable, incidental to or convenient for the furtherance and accomplishment of the purposes and business described herein and for the protection and benefit of the Operating Company including full power and authority, directly
or through its ownership interest in other entities, including Special Purpose Entities, to enter into, perform and carry out contracts of any kind, borrow money and issue evidences of indebtedness, whether or not secured by mortgage, deed of trust,
pledge or other lien, acquire, own, manage, improve and develop real property, and lease, sell, transfer and dispose of real property; provided, however, that as long as the Managing Member has determined to continue to qualify as a REIT, the
Operating Company shall not take, or refrain from taking, any action which, in the judgment of 

  
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the Managing Member, in its sole and absolute discretion: (a) could adversely affect the ability of the Managing Member to continue to qualify as a REIT; (b) could subject Managing
Member to any taxes under Section 857 or Section 4981 of the Code; or (c) could violate any law or regulation of any Governmental Authority having jurisdiction over the Managing Member or its securities; unless any such action or
inaction under (a), (b) or (c) shall have been specifically consented to by the Managing Member in writing. 

2.4    Principal Office. The principal office of the Operating Company shall be located at 140 Clinton Square,
Rochester, New York 14604, or at such other place as designated by the Managing Member. In addition, the Operating Company may maintain such other offices as the Managing Member may deem advisable from time to time. 

2.5    Term. 

(a)      The Operating Company commenced business as a limited liability company on August 8, 2006, the
date of the filing of the Operating Company’s Articles of Organization (the “Articles of Organization”) by the Secretary of State of the State of New York. The Members hereby agree to continue the Operating Company as a limited
liability company pursuant to the provisions of the LLC Law and all other pertinent laws of the State of New York, for the purposes and upon the terms and conditions hereinafter set forth. The Members agree that the rights and liabilities of the
Members shall be as provided in the LLC Law except as otherwise expressly provided herein. Without limiting the foregoing, the Members agree that this Agreement amends and restates the Original Operating Agreement in its entirety. 

(b)      The term of the Operating Company shall continue until dissolved pursuant to the provisions of Article
IX or as otherwise provided by law. 
 2.6      Required Filings. The Managing Member shall execute,
file, record and/or publish such certificates and documents as may be required by this Agreement or by Applicable Law in connection with the formation and operation of the Operating Company. 

2.7      Nature of Membership Units; Title to Operating Company Assets. Membership Units in the Operating
Company shall be personal property for all purposes. All property owned by the Operating Company, whether real or personal, tangible or intangible, shall be deemed to be owned by the Operating Company as an entity. No Member, individually, shall
have ownership of such property. 
 2.8        No Partnership Intended for Non-Tax Purposes. The Members have formed the Operating Company as a limited liability company under the LLC Law and do not intend to form a partnership, corporation or other type of entity. The Members do not
intend to be partners to each other or partners as to any other person, except for federal and state income tax purposes. 
 ARTICLE III

 CAPITALIZATION 

3.1      Capital Contributions. 

  
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 (a)      Initial Capital Contributions. 

 

	 	(i)	 At the time of the execution of this Agreement, the Members shall have made, or simultaneously herewith shall
make, the Capital Contributions set forth in Exhibit A to this Agreement. The Members shall own Membership Units as set forth on Exhibit A. The Membership Units shall be uncertificated. 

 

	 	(ii)	 Additional Members shall make initial Capital Contributions at the Subsequent Closings at which they are
admitted to the Operating Company as required by, and in accordance with Section 3.2. The Managing Member shall revise Exhibit A (x) as of each Subsequent Closing to add the names of Additional Members and their respective
Capital Contributions and number of Membership Units acquired by such Additional Members, and (y) from time to time to reflect any transfer of Membership Units or conversion of Membership Units into Shares in accordance with this Agreement.

 (b)      Additional Capital Contributions. 

 

	 	(i)	 No Member shall be assessed or be required to contribute additional funds or other property to the Operating
Company. Any additional funds or other property required by the Operating Company, as determined by the Managing Member in its sole discretion, may, at the option of the Managing Member and without an obligation to do so (except as provided for in
Section 3.1(b)(ii)), be contributed by the Managing Member as additional Capital Contributions. If and as the Managing Member or any other Member makes additional Capital Contributions to the Operating Company, each such Member shall receive
additional Membership Units as provided for in Section 3.2. 

  

	 	(ii)	 The proceeds of any and all funds raised by or through the Managing Member through the issuance of additional
Shares of the Managing Member shall be contributed to the Operating Company as additional Capital Contributions, and in such event the Managing Member shall be issued additional Membership Units pursuant to Section 3.2. 

(c)      Liability of Members. Except as expressly required pursuant under the LLC Law, the Members
shall have no personal liability for the losses, debts, claims, expenses, judgments, penalties or encumbrances of or against the Operating Company or the properties. 

3.2      Issuances of Additional Membership Units. 

(a)      Issuance to Other Than the Managing Member. The Managing Member is hereby authorized to cause
the Operating Company to issue additional Membership Units and Preferred Units for any Operating Company purpose at any time or from time to time, to any 

  
 -11- 

 
Non-Managing Members or to other Persons for such consideration and on such terms and conditions as shall be established by the Managing Member in its sole
and absolute discretion, all without the approval of any Non-Managing Members except to the extent provided herein. 

(b)      Issuance to the Managing Member – Common Stock. The Operating Company shall from time to
time issue to the Managing Member additional Membership Units upon issuance of Shares equal to the number of Shares so issued provided the Managing Member shall make a Capital Contribution to the Operating Company in an amount equal to the:
(1) proceeds raised in connection with the issuance of such Shares of the Managing Member in the event such Shares are sold for cash or cash equivalents, or (2) value of the property received in consideration for such Shares, in the event
such Shares are issued in consideration for other property. 
 (c)      Issuance of Preferred Units.
The Managing Member is explicitly authorized to issue preferred membership interests in the Operating Company (“Preferred Units”) or other membership interests in one or more classes, or one or more series of any of such classes, with such
voting powers, full or limited, or no voting powers, and such designations, preferences and relative, participating, optional or other special rights, and qualifications, limitations or restrictions thereof, including voting powers, designations,
preferences and relative, participating, optional or other special rights, and qualifications, limitations or restrictions, subject to New York law, including with respect to: (i) the allocations of items of income, gain, loss, deduction and
credit to each such class or series of membership interests; (ii) the right of each such class or series of Preferred Units to participate in distributions; and (iii) the rights of each such class or series of Preferred Units upon
dissolution and liquidation of the Operating Company; provided, however, that (x) the Preferred Units are issued in connection with an issuance of Preferred Shares of the Managing Member, which Preferred Shares have designations, preferences
and other rights, all such that the economic interests are substantially similar to the designations, preferences and other rights of the Preferred Units issued to the Managing Member in accordance with this Section 3.2(c), and (y) the
Managing Member shall contribute the proceeds from, or the property received in consideration for, the issuance of such Preferred Shares as a Capital Contribution to the Operating Company. 

ARTICLE IV 

MANAGEMENT 

4.1      Management by the Managing Member. 

(a)      Authority. 
  

	 	(i)	 Except where approval by Members is expressly required by this Agreement or by the LLC Law: (A) the
Managing Member in its sole discretion shall have full, complete and exclusive right, power and authority to exercise all the powers of the Operating Company set forth in Section 2.3; (B) the Managing Member shall exercise on behalf of the
Operating Company complete discretionary 

  
 -12- 

	 	 
authority for the management and the conduct of the affairs of the Operating Company; and (C) the Managing Member, in its sole discretion, shall have full, complete and exclusive right,
power and authority in the management and control of the Operating Company’s business, including entering into the Asset Management Agreement and the Property Management Agreement. Without limiting the generality of the foregoing, the Managing
Member shall be the agent of the Operating Company for the purposes of the Operating Company’s business and the act of the Managing Member on the Operating Company’s behalf, including the execution in the name of the Operating Company of
an instrument, document or agreement shall bind the Operating Company, unless (1) the Managing Member has in fact no authority to act for the Operating Company in the particular matter and (2) the person with whom the Managing Member is
dealing has knowledge that the action has not been so approved. 

	 	

	 	(ii)	 Notwithstanding the foregoing, the Managing Member shall not: (A) do any act in contravention of any
Applicable Law or any provision of this Agreement or the Articles of Organization; (B) possess Operating Company property, or assign any rights in specific Operating Company property, for other than a Operating Company purpose, except as
otherwise provided in this Agreement; (C) admit any Person as a Managing Member of the Operating Company except as permitted by this Agreement and the LLC Law; (D) admit any Person as a Member except as permitted by this Agreement and the
LLC Law; or (E) perform any act that would subject a Member to personal liability for the debts, obligations and liabilities of the Operating Company except as provided herein or under the LLC Law. 

	 	

	 	(iii)	 The Managing Member shall act in good faith and with the degree of care an ordinarily prudent person in a like
position would exercise under similar circumstances. In doing so, the Managing Member shall be entitled to rely on those items set forth in Section 409 of the LLC Law. 

	 	

	 	(iv)	 The Managing Member is expressly authorized to delegate such power, authority and responsibility for the
management and operation of the business of the Operating Company to the Asset Manager as is set forth in the Asset Management Agreement and to the Property Manager as set forth in the Property Management Agreement. 

	 	

	 	(v)	 The Managing Member shall serve in such capacity until it resigns or is dissolved and shall not be subject to
annual election or removal by the Members. If for any reason the Managing Member 

  
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ceases to serve in such capacity, then the Members may elect a successor Managing Member by the Non-Managing Members holding a majority of the Membership
Units held by Non-Managing Members as a group; provided, however, that the Managing Member shall have agreed to terms thereof. If no successor is elected within thirty (30) days of when the Managing
Member ceases to serve as such, the Operating Company shall be dissolved. 

(b)      Members No Right to Manage. Except as otherwise expressly provided in this Agreement or the LLC
Law, no Member, solely by reason of being a Member, shall have the right to control or manage, or shall take any part in the control or management of, the property, business or affairs of the Operating Company. 

(c)      Asset Management Agreement. The Operating Company has entered into an Asset Management
Agreement, dated as of the date hereof in the form of Exhibit B hereto (as amended, supplemented or otherwise modified from time to time in accordance with the provisions thereof and of this Agreement, the “Asset Management
Agreement”), with the Asset Manager, pursuant to which the Asset Manager provides the Operating Company with certain investment advisory, administrative and related services, including establishing and monitoring acquisition and disposition
strategies for the Operating Company, arranging mortgage and other financing, providing annual property, portfolio, and market equity valuations, overseeing Subsequent Closings, holding the annual Member meetings and providing investment projections
and reports. By execution of this Agreement, each Member ratifies, approves and consents to the terms and provisions of the Asset Management Agreement. 

(d)      Property Management Agreement. The Operating Company has entered into a Property Management
Agreement, dated as of the date hereof (as amended, supplemented or otherwise modified from time to time in accordance with the provisions thereof and of this Agreement, the “Property Management Agreement”), with the Property
Manager, pursuant to which the Property Manager provides the Operating Company and the Portfolio Entities with certain property management services, including, ongoing management, oversight, rent collection and releasing of the Properties as well as
identification of potential acquisition candidates and due diligence and administrative functions for all acquisition and sales transactions, including investigation of the condition and financial performance of the proposed Property, the terms of
existing leases and the creditworthiness of the tenant and/or lease guarantor, and property, market and location characteristics. By execution of this Agreement, each Member ratifies, approves and consents to the terms and provisions of the Property
Management Agreement. 
 (e)      Engagement of Other Persons. The Managing Member may, from time to
time, employ any other Person to render services to the Operating Company on such terms and for such compensation as the Managing Member may determine in its discretion, including without limitation legal, tax, accounting, audit, equity and debt
placement, property insurance, construction management, investment, consulting, and broker or finder services. Subject to Section 5.1(a), such employees and third parties may be Related Persons or Affiliates of any Related Person or of one or
more of the Members. 

  
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 (f)      No Obligation to Consider Tax Consequences to Non-Managing Members. In exercising its authority under this Agreement, the Managing Member may, but shall be under no obligation to, take into account the tax consequences to any Member of any action taken by
it. The Managing Member and the Operating Company shall not have liability to a Non-Managing Member under any circumstances as a result of an income tax liability incurred by such Non-Managing Member as a result of an action (or inaction) by the Managing Member pursuant to its authority under this Agreement. 

(g)      Reliance on Documents. The Managing Member may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, or other paper or document believed by it to be genuine and to have been signed or presented by the
proper party or parties. 
 (h)      Action Through Officers and Attorneys. The Managing Member shall
have the right, in respect of any of its powers or obligations hereunder, to act through any of its duly authorized officers and a duly appointed attorney or
attorneys-in-fact, including the Asset Manager acting pursuant to the Asset Management Agreement. Each such attorney shall, to the extent provided by the Managing Member
in the power of attorney, have full power and authority to do and perform all and every act and duty which is permitted or required to be done by the Managing Member hereunder. 

4.2      Expenses. The Operating Company shall be responsible for and pay directly, or shall reimburse
any Person that paid on the Operating Company’s behalf, any expenses related to the Operating Company’s: (a) selection, evaluation, structuring, negotiation, acquisition, and disposition of, and investment in, acquired Properties,
including but not limited to legal fees and expenses, brokerage commissions, financing fees and expenses, costs of financial analysis, costs of appraisals and surveys, nonrefundable option payments, architectural and engineering reports,
environmental and asbestos audits, and title insurance and escrow fees; (b) all other operating expenses of the Operating Company and the Managing Member, including taxes, fees and expenses of Independent Directors, annual and other periodic
fees of auditors and counsel, insurance, litigation, and capital and extraordinary expenditures not reimbursed by tenants of the Properties; excluding, however, any costs and expenses required to be paid by (i) the Property Manager pursuant to
the Property Management Agreement, and (ii) the Asset Manager pursuant to the Asset Management Agreement; and (c) out-of pocket expenses incurred by the Asset Manager and its affiliates in connection
with the organization of the Managing Member and the Operating Company, the offering and marketing of the Shares from time to time and related matters up to 0.5% of the aggregate capital contributions to the Operating Company and the Managing
Member. 
 4.3      Third Party Reliance. Third Parties dealing with the Operating Company are entitled
to rely conclusively upon the authority of the Managing Member and its delegees and attorneys in fact. 

4.4      Designation of Tax Matters Member. The Managing Member is hereby designated as the “Tax
Matters Member” under Section 6231(a)(7) of the Code, to manage administrative tax proceedings conducted at the Operating Company level by the Internal 

  
 -15- 

 
Revenue Service with respect to Operating Company matters. Each Member expressly consents to such designation and agrees that, upon the request of the Managing Member, it will execute,
acknowledge, deliver, file and record at the appropriate public offices such documents as may be necessary or appropriate to evidence such consent. The Managing Member is specifically directed and authorized to take whatever steps the Managing
Member in its discretion deems necessary or desirable to perfect such designation, including filing any forms or documents with the Internal Revenue Service and taking such other action as may from time to time be required under Treasury
Regulations. Expenses of administrative proceedings relating to the determination of Operating Company items at the Operating Company level undertaken by the Tax Matters Member shall be reimbursed by the Operating Company. Without limiting the
generality of the foregoing, the Tax Matters Partner shall have the sole and absolute authority to make any elections on behalf of the Operating Company permitted to be made pursuant to Section 754 or any other section of the Code or the
Treasury Regulations promulgated thereunder. 
 4.5      Competitive Interests. Neither the Managing
Member nor any Related Person shall invest in any property meeting the Property Investment Criteria of the Operating Company without the consent of the Independent Directors Committee. 

4.6      Other Activities. Subject to Section 4.5, notwithstanding anything in this Agreement or any
other duty existing at law or equity, the Managing Member and any Member or any Affiliate of the Managing Member or of any Member, may engage in or possess an interest in any other business, venture or property of any nature or description, whether
or not competitive with the Operating Company or any Portfolio Entity, including the acquisition, syndication, ownership, financing, leasing, operation, management, brokerage, construction and development of any real property, whether or not similar
to that owned by the Operating Company or a Portfolio Entity. Neither the Operating Company nor any Member shall have any rights or obligations by virtue of this Agreement in and to such independent ventures and activities or the income or Income
derived therefrom. 
 4.7      Investment Opportunities. Neither the Managing Member nor any Related
Person shall be obligated to disclose or refer to the Operating Company any particular investment opportunity, whether or not any such opportunity is of a character which could be taken by the Operating Company. 

4.8      Conflicts of Interest. While the Managing Member intends to avoid situations involving conflicts
of interest, each Member acknowledges that there may be situations in which the interests of the Operating Company, may conflict with the interests of the Managing Member or Related Persons. Each Member agrees that the activities of the Managing
Member and any Related Person specifically authorized by or described in this Agreement may be performed by the Managing Member or any authorized Related Person and will not, in any case or in the aggregate, be deemed a breach of this Agreement or
any duty owed by any such Related Person to the Operating Company or to any Member. In the event of a conflict, the Managing Member will comply with the provisions of its Bylaws. 

4.9      Limitation of Liability. To the maximum extent permitted under the LLC Law in effect from time
to time, no Exculpated Person shall be liable to the Operating Company or to 

  
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any Member for any act or omission performed or failed to be performed by such Exculpated Person, as a manager of the Operating Company, or for any losses, claims, costs, damages, or liabilities
arising from any such act or omission, other than by reason of gross negligence or willful misconduct. Any termination of this Agreement or amendment to this Section 4.9 shall not adversely affect any right or protection of an Exculpated Person
existing at the time of such termination or amendment. 
 4.10    Indemnification of Managing Member and Related
Persons. 
 (a)    General. The Operating Company shall indemnify and hold harmless Exculpated Persons from
and against any and all losses, claims, demands, costs, damages, liabilities, joint and several, expenses of any nature (including attorneys’ fees and disbursements), judgments, fines, settlements, and other amounts arising from any and all
claims, demands, actions, suits, or proceedings, civil, criminal, administrative or investigative, in which the Exculpated Person may be involved, or threatened to be involved, as a party or otherwise, arising out of or incidental to the offering of
the Membership Units or the business of the Operating Company or any Portfolio Entities, including liabilities under the federal and state securities laws, regardless of whether the Exculpated Person continues to be the Managing Member, or an
officer, manager, member, employee, agent of the Managing Member, its Affiliate or Related Person at the time any such liability or expense is paid or incurred, provided, however, that no such indemnification may be made if a judgment or other final
adjudication adverse to such Exculpated Person establishes that: (i) the Exculpated Person’s acts were committed in bad faith; (ii) were the result of active and deliberate dishonesty and were material to the cause of action so
adjudicated; or (iii) that it personally gained in fact a financial income or other advantage to which it was not entitled under Applicable Law. The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or
upon a plea of nolo contendere, or its equivalent, shall not, in and of itself, create a presumption or otherwise constitute evidence that the Exculpated Person acted in the manner specified above in (i), (ii) or (iii) of this
Section 4.11(a). 
 (b)    Expenses. Expenses incurred by an Exculpated Person in defending any claim,
demand, action, suit, or proceeding subject to this Section 4.11 shall, immediately from time to time as expected to incur, be advanced by the Operating Company prior to the final disposition of such claim, demand, action, suit or proceeding
upon receipt by the Operating Company of any undertaking by or on behalf of the Exculpated Person to repay such amount if it shall be determined that such Exculpated Person is not entitled to be indemnified as authorized in this
Section 4.11(a). 
 (c)    Other Rights. The indemnification provided by this Section 4.11 shall be in
addition to any other rights to which those indemnified may be entitled under any agreement, as a matter of law or equity, or otherwise, both as to an action in the Exculpated Person’s capacity as the Managing Member, as an officer, manager,
member, employee, agent or Affiliate of the Managing Member, and as to an action in another capacity, and shall continue as to an Exculpated Person who has ceased to serve in such capacity and shall inure to the benefit of the heirs, successors,
assigns and administrators of the Exculpated Person. 

  
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 (d)      Insurance. The Operating Company may purchase
and maintain insurance on behalf of the Managing Member, and such other persons as the Managing Member shall determine, against any liability that may be asserted against or expense that may be incurred by such person in connection with the offering
of Membership Units and the business of the Operating Company, regardless of whether the Operating Company would have the power to indemnify such person against such liability under the provisions of this Agreement. 

(e)      Sole Beneficiaries and Continuation. The provisions of this Section 4.11 are for the
benefit of the Exculpated Persons and shall not be deemed to create any rights for the benefit of other Persons. Notwithstanding the foregoing, the indemnification and advancement of expenses provided by, or granted pursuant to this
Section 4.10 shall, unless otherwise provided when authorized or ratified, continue as to a Person who has ceased to be an Exculpated Person and shall inure to the benefit of the heirs, executors and administrators of such a Person. 

(f)      Interested Transactions. An Exculpated Person shall not be denied indemnification in whole or
in part because the Exculpated Person had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement. 

(g)      Binding Effect. Any amendment, modification or repeal of the indemnification provisions
contained herein shall be prospective only and shall not in any way affect the limitations on the Operating Company’s obligation to any Exculpated Person herein as in effect immediately prior to such amendment, modification or repeal with
respect to claims arising from or relating to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when such claims may arise or be asserted. 

(h)      Reimbursements to Managing Member Shall Not Be Treated As Distributions. If and to the extent
the Operating Company is required to reimburse the Managing Member pursuant to any indemnification obligation contained herein and such reimbursement constitutes gross income of the Managing Member (as opposed to the repayment of advances made by
the Managing Member on behalf of the Operating Company) such amounts shall constitute guaranteed payments within the meaning of Section 707(c) of the Code, shall be treated consistently therewith by the Operating Company and all Members, and
shall not be treated as distributions for purposes of computing the Members’ Capital Accounts. 

4.11      Fiscal Year. The fiscal year of the Operating Company shall end on the 31st day of December in
each year. The Managing Member shall have the authority to change the ending date of the fiscal year to any other date required or allowed under the Code if the Managing Member, in its discretion, shall determine such change to be necessary or
appropriate. The Managing Member shall promptly give notice of any such change to the Members. 

4.12      Books and Records. The books of account and records of the Operating Company and a copy of this
Agreement shall be maintained at its principal place of business. Any Member has the right to inspect such books and records for the purposes of evaluating such Member investment in the Operating Company, at reasonable times and after notice to the
Operating 

  
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Company, provided that any expense incurred by such Member in connection with such inspection shall by that Member’s sole expense. 

4.13      Independent Auditors. The books of account and records of the Operating Company shall be
reviewed and reported upon on an income tax accounting basis as of the end of each fiscal year by such independent public accounting firm as may be selected from time to time by the Managing Member in its sole discretion. 

4.14      Annual Financial Statements. As soon as practicable after the end of each fiscal year of the
Operating Company, the Managing Member shall prepare and mail or cause to be prepared and mailed to each Member annual financial statements for such year of the Operating Company or the Managing Manager, if the Operating Company is consolidated with
the Managing Member, on the basis of accounting used for income tax purposes, . The financial statements shall include a copy of the statement of assets of the Operating Company as of the end of such year, together with statements of revenue and
expenses and cash flows and such other statements as are customarily prepared and reported upon under the applicable income tax accounting rules, all in reasonable detail, prepared in accordance with such income tax accounting rules, consistently
applied except as otherwise stated therein. 
 4.15      Tax Information. The Managing Member shall
send, within ninety (90) days after the end of each fiscal year, to each Member and to each other Person that was a Member at any time during such fiscal year, a Schedule K-1: “Partner’s Share
of Income, Credits, Deductions, Etc.,” or, to the extent required for completion of the Member’s or other Person’s federal income tax returns, United States Internal Revenue Service Form 1065, “U.S. Return of Partnership Income,
any similarly required state reporting form or schedule, or any successor schedule or form, filed by the Operating Company for such Member or such Person. 

4.16      Bank Accounts. All funds of the Operating Company will be deposited in such separate bank
account or accounts with the such officers of the Managing Member and such other persons as may be designated by the Managing Member from time to time as authorized signatories. 

ARTICLE V 
 MEMBER
VOTING AND MEETINGS 
 5.1      Voting Rights. 

(a)      Without the approval of the Managing Member and each
Non-Managing Member whose interest would be adversely affected thereby, neither the Operating Company nor the Managing Member shall cause or permit the Operating Company to amend this Agreement, except as
provided in Section 10.5(b). 
 (b)      The Members shall also have the voting rights set forth in
Sections 4.1(a)(v) with respect to the election of a new Managing Member. 
 5.2      Annual Meeting.
The Operating Company may hold an annual meeting of the Members, in the discretion of the Managing Member. Any Annual Meeting shall be hold on such date, at such time and at such location as maybe determined by the Managing Member. At

  
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the Annual Meeting of the Members, the Managing Member shall review and discuss the investment activities of the Operating Company for the preceding fiscal year. 

5.3      Special Meetings. The Operating Company shall hold special meetings of Members for any purpose
or purposes upon a written call therefor by the Managing Member to the other Members. Any written request shall state the purpose or purposes of the proposed meeting. 

5.4      Notice of Member Meetings. Written notice of a meeting of Members shall be given personally or
by first class mail to each Member entitled to vote thereat, not fewer than ten (10) nor more than sixty (60) days prior to the meeting. Such written notice shall state the place, date and hour of the meeting and whether the meeting is an
annual or special meeting. If such written notice is for a special meeting, the purpose(s) for which the meeting is called and by or at whose direction the notice is being issued must be included. Notice of a Member meeting need not be given to any
member who submits a signed waiver of notice, in person or by proxy, whether before or after a meeting. The attendance of any member at a meeting, in person or by proxy, without protesting prior to the conclusion of the meeting the lack of notice of
such meeting, shall constitute a waiver of notice by him or her. 
 5.5      Quorum. Except as
otherwise provided by the LLC Law, this Agreement or the Articles of Organization, Members holding a majority of the Percentage Interests entitled to vote thereat, present in person or represented by proxy, shall be necessary to and shall constitute
a quorum for the transaction of business at all meetings of Members. When a quorum is once present to organize a meeting, it is not broken by the subsequent withdrawal of any Members. If, however, such quorum shall not be present or represented at
any meeting of Members, Members entitled to vote thereat, present in person or represented by proxy, shall have power to adjourn the meeting from time to time, until a quorum shall be present or represented. At such adjourned meeting, at which a
quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally noticed. 

5.6      Voting. In voting on any matter that requires the vote of Members, each Member entitled to vote
thereat shall have one vote for each Membership Unit held. The Members shall be entitled to vote in person or by proxy. Whenever any action is to be taken by the Members, it shall, except as provided in the LLC Law or this Agreement, be authorized
by a majority in interest of the Members’ votes cast at a meeting of Members by Members or such class of Members entitled to vote thereon. 

5.7      Proxies. Every proxy must be executed in writing by a Member or by the Member’s attorney-in-fact. No proxy shall be valid after the expiration of eleven (11) months from the date thereof, unless otherwise provided in the proxy. Every proxy shall be
revocable at the pleasure of the Member executing it, except in those cases where an irrevocable proxy is permitted by law. 

5.8      Written Consents. Whenever by any provision of the LLC Law, the Articles of Organization or this
Agreement, the vote of Members at a meeting thereof is required or permitted to be taken in connection with any Operating Company action, the meeting and vote of the Members may be dispensed with, if a majority of all the Members that would have
been 

  
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entitled to vote upon the action if such meeting were held, shall consent in writing to such Operating Company action being taken. Every written consent shall bear the date and signature of the
Member who signs the consent. Prompt notice of the taking of the action without a meeting shall be given to those members who have not consented in writing but who would have been entitled to vote thereon had such action been taken at a meeting.

 5.9      Conduct of Meetings. Each meeting of the Members shall be conducted by the Chairman of the
Board or the Chief Executive Officer of the Managing Member or such other persons as the Managing Member may appoint pursuant to such rules for the conduct of the meeting as the Managing Member or such other person deems appropriate. 

ARTICLE VI 
 CAPITAL
ACCOUNTS; ALLOCATIONS 
 6.1      Capital Accounts. A Capital Account shall be established and
maintained for each Member to which shall be credited the Capital Contributions made by such Member and such Member’s allocable share of Income (and items thereof), and from which shall be deducted distributions to such Member of cash or other
property and such Member’s allocable share of Loss (and items thereof). The Capital Accounts of the Members shall be adjusted and maintained in accordance with Treasury Regulations
Section 1.704-1(b)(2)(iv). 

6.2      Allocations to Capital Accounts. 

(a)      General Rule. After giving effect to the allocations provided in Section 6.2(c) or
elsewhere in this Agreement, Income (and items thereof) and Loss (and items thereof) for each fiscal year shall be allocated among the Members in a manner such that the Capital Account of each Member, immediately after giving effect to such
allocation, is, as nearly as possible, equal in amount (proportionately based upon the number of Membership Units, and any Preferred Units, held by such Member) to the distributions that would be made to such Member during such fiscal year pursuant
to Section 7.1, reduced by the Member’s share of Operating Company minimum gain determined pursuant to Section 1.704-2(g) of the Treasury Regulations and by the Member’s share of Member non-recourse debt minimum gain determined in accordance with Section 1.704-2(i) of the Treasury Regulations, if: (i) the Operating Company were dissolved and
terminated; (ii) its affairs were wound up and each Operating Company asset was sold for cash equal to its Book Value (except that any Operating Company asset that is sold in such fiscal year shall be treated as if sold for an amount of cash
equal to the sum of (A) the amount of any net cash proceeds actually received by the Operating Company in connection with such sale and (B) the fair market value (as determined by the Managing Member) of any property actually received by
the Operating Company in connection with such sale); (iii) all Operating Company liabilities were satisfied (limited with respect to each non-recourse liability to the Book Value of the assets securing such
liability); and (iv) the net assets of the Operating Company were distributed in accordance with Section 7.1 to the Members immediately after giving effect to such allocation. The Managing Member may, in its discretion, make such other
assumptions (whether or not consistent with the above assumptions) as it deems necessary or appropriate in order to effectuate the intended economic arrangement of the Members. 

  
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 (b)      Allocations Relating to Last Fiscal Year.
Except as otherwise provided elsewhere in this Agreement, if upon the dissolution and termination of the Operating Company pursuant to Article IX and after all other allocations provided for in Section 6.2 have been tentatively made as if this
Section 6.2(b) were not in this Agreement, a distribution to the Members in accordance with Capital Accounts would be different from a distribution to the Members under Section 7.1(a), then Income (and items thereof) and Loss (and items
thereof) for the fiscal year in which the Operating Company dissolves and terminates pursuant to Article IX shall be allocated among the Members in a manner such that the Capital Account of each Member, immediately after giving effect to such
allocation, is, as nearly as possible, equal (proportionately based upon the number of Membership Units, and any Preferred Units, held by such Member) to the amount of the distributions that would be made to such Member during such last fiscal year
pursuant to Section 7.1. The Managing Member may, in its discretion, apply the principles of this Section 6.2(b) to any fiscal year preceding the fiscal year in which the Operating Company dissolves and terminates if delaying application
of the principles of this Section 6.2(b) would likely result in distributions under Section 9.3 that are materially different from distributions under Section 7.1 in the fiscal year in which the Operating Company dissolves and
terminates. 
 (c)      Allocations in Special Circumstances. The following special allocations shall
be made in the following order: 
  

	 	(i)	 Minimum Gain Chargeback. Notwithstanding any other provision of this Article VI, if there is a net
decrease in Operating Company minimum gain (as defined in Treasury Regulations Section 1.704-2(b)(2) and (d)) during any fiscal year, the Members shall be specially allocated items of Operating Company
income and gain for such fiscal year (and, if necessary, subsequent fiscal years) in an amount equal to the portion of such Member’s share of the net decrease in Operating Company minimum gain, determined in accordance with Treasury Regulations
Section 1.704-2(f) and (g). This Section 6.2(c)(i) is intended to comply with the minimum gain chargeback requirement in such section of the Treasury Regulations and shall be interpreted consistently
therewith. 

  

	 	(ii)	 Member Minimum Gain Chargeback. Notwithstanding any other provision of this Article VI, if there is a
net decrease in Member non-recourse debt minimum gain attributable to a Member non-recourse debt (as defined in Treasury Regulations
Section 1.704-2(i)) during any fiscal year, each Member shall be specially allocated items of Operating Company income and gain for such fiscal year (and, if necessary, subsequent fiscal years) in an
amount equal to the portion of such Member’s share of the net decrease in Member non-recourse debt minimum gain attributable to such Member’s non-recourse
debt, determined in accordance with Treasury Regulations Section 1.704-2(i). This Section 6.2(c)(ii) is intended to comply with the minimum gain chargeback

  
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requirement in such section of the Treasury Regulations and shall be interpreted consistently therewith. 

 

	 	(iii)	 Qualified Income Offset. In the event any Member unexpectedly receives any adjustments, allocations, or
distributions described in Treasury Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) or (6), items of Operating Company income and gain shall be specially allocated to each such Member in an amount and manner
sufficient to eliminate, to the extent required by the Treasury Regulations, the Adjusted Capital Account Deficit of such Member (as determined under Treasury Regulations Section 1.704-1) as quickly as
possible, provided that an allocation pursuant to this Section 6.2(c)(iii) shall be made only if and to the extent that such Member would have an Adjusted Capital Account Deficit after all other allocations provided for in Section 6.2 have
been tentatively made as if this Section 6.2(c)(iii) were not in this Agreement. This Section 6.2(c)(iii) is intended to comply with the qualified income offset provisions in Treasury Regulations
Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 

  

	 	(iv)	 Gross Income Allocation. In the event any Member has a deficit balance in such Member’s Capital
Account (as determined after crediting such Capital Account for any amounts that such Member is deemed obligated to restore pursuant to Treasury Regulations Section 1.704-2), items of Operating Company
income and gain shall be specially allocated to such Member in an amount and manner sufficient to eliminate such deficit (as so determined) of such Member’s Capital Account as quickly as possible; provided that an allocation pursuant to this
Section 6.2(c)(iv) shall be made only if and to the extent that such Member would have such Capital Account deficit (as so determined) after all other allocations provided for in Section 6.2 (other than Section 6.2 (c)(iii)) have been
tentatively made as if this Section 6.2 (c)(iv) were not in this Agreement. 

  

	 	(v)	 Loss Allocation Limitation. No allocation of Loss (or items thereof) shall be made to any Member to the
extent that such allocation would create or increase a deficit in such Member’s Capital Account (as determined after debiting such Capital Account for the items described in Treasury Regulations
Section 1.704-1(b)(2) (ii)(d)(4),(5) and (6) and crediting such Capital Account for any amounts that such Member is deemed obligated to restore pursuant to Treasury Regulations Section 1.704-2). 

  

	 	(vi)	 Non-Recourse Deductions.
Non-recourse Deductions for any year shall be specially allocated to the Members. 

  
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	 	(vii)	 Member Non-Recourse Deductions. Any Member Non-recourse Deductions for any year shall be allocated to the Member who bears the economic risk with respect to the Member non-recourse debt to which such Member Non-recourse Deductions are attributable in accordance with Section 1.704-2(i)(1) of the Treasury Regulations. 

(d)      Issuance, Transfer or Change in Membership Units. The Managing Member is authorized to adopt
any convention or combination of conventions likely to be upheld for federal income tax purposes regarding the allocation and/or special allocation of items of Operating Company income, gain, loss, deduction and expense with respect to Membership
Units which are: newly issued, transferred, redeemed, or exchanged for Shares. A transferee of a Membership Unit in the Operating Company shall succeed to the Capital Account of the transferor Member to the extent it relates to the transferred
Membership Unit. 
 6.3      Tax Allocations. 

(a)      General Rules. Except as otherwise provided in Section 6.3(b), for each fiscal year, items
of Operating Company income, gain, loss, deduction and expense shall be allocated, for federal, state and local income tax purposes, among the Members in the same manner as Income (and items thereof) or Loss (and items thereof), of which such items
are components, were allocated pursuant to Section 6.2. 
 (b)      Section 704(c) of the Code.
Income, gains, losses and deductions with respect to any property (other than cash) contributed or deemed contributed to the capital of the Operating Company shall, solely for income tax purposes, be allocated among the Members so as to take account
of any variation between the adjusted basis of such property to the Operating Company for federal income tax purposes and its fair market value (determined by the Manging Member) at the time of the contribution or deemed contribution in accordance
with Section 704(c) of the Code and the Treasury Regulations promulgated thereunder. Except as may be determined in the Managing Member’s sole discretion, the Traditional Method set forth in
Section 1.704-3(b)(1) to the Treasury Regulations promulgated under Section 704(c) of the Code shall apply. If there is a revaluation of Operating Company property pursuant to the definition of Book
Value, subsequent allocations of income, gains, losses or deductions with respect to such property shall be allocated among the Members so as to take account of any variation between the adjusted tax basis of such property to the Operating Company
for federal income tax purposes and its fair market value at the time of contribution in accordance with Section 704(c) of the Code and the Treasury Regulations promulgated thereunder. Such allocations shall be made in such manner and utilizing
such permissible tax elections as determined in the discretion of the Managing Member. 
 (c)      Tax
Allocations Binding. The Members acknowledge that they are aware of the tax consequences of the allocations made by this Section 6.3 and hereby agree to be bound by the provisions of this Section 6.3 in reporting their respective
shares of items of Operating Company income, gain, loss, deduction and expense. 

  
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 6.4      Determinations by Managing Member. All matters
concerning the computation of Capital Accounts, the allocation of items of Operating Company income, gain, loss, deduction and expense for all purposes of this Agreement and the adoption of any accounting procedures not expressly provided for by the
terms of this Agreement shall be determined by the Managing Member in its discretion. Such determinations shall be final and conclusive as to all the Members. Without in any way limiting the scope of the foregoing, if and to the extent that, for
income tax purposes, any item of income, gain, loss, deduction or expense of any Member or the Operating Company is constructively attributed to, respectively, the Operating Company or any Member, or any contribution to or distribution by the
Operating Company or any payment by any Member or the Operating Company is recharacterized, the Managing Member may, in its discretion and without limitation, specially allocate items of Operating Company income, gain, loss, deduction and expense
and/or make correlative adjustments to the Capital Accounts of the Members in a manner so that the net amount of income, gain, loss, deduction and expense realized by each relevant party (after taking into account such special allocations) and the
net Capital Account balances of the Members (after taking into account such special allocations and adjustments) shall, as nearly as possible, be equal, respectively, to the amount of income, gain, loss, deduction and expense that would have been
realized by each relevant party and the Capital Account balances of the Members that would have existed if such attribution and/or recharacterization and the application of this sentence of this Section 6.4 had not occurred. Notwithstanding
anything expressed or implied to the contrary in this Agreement, in the event the Managing Member shall determine, in its discretion, that it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto, are
computed in order to effectuate the intended economic sharing arrangement of the Members, the Managing Member may make such modification. 

ARTICLE VII 

DISTRIBUTIONS 

7.1    Distributions. 

(a)      Subject to the provisions of Section 7.2, the Managing Member shall cause the Operating Company
to make Distributions in such amounts as the Managing Member shall determine in its sole discretion. Such Distributions shall be made to the Members who are Members on the applicable record date for such distribution as determined by the Managing
Member in accordance with their respective Percentage Interests on such Record Date subject to any withholding required pursuant to the Code or any provisions of applicable state or local tax law, except as otherwise provided in any agreement
between the Managing Member or the Operating Company and such Member. 
 (b)      All amounts withheld
pursuant to the Code or any provisions of any state or local tax law with respect to any allocation, payment or Distribution to a Member shall be treated as Distributions to such Member for all purposes under this Agreement. 

(c)      The Managing Member may from time to time, in its sole discretion, make, and the Members shall accept,
Distributions in the form of property of the Operating Company. The Managing Member shall reasonably determine in good faith the fair market value attributable to such property and may distribute different types of property to different

  
 -25- 

 
Members; provided, that the fair market value of the property distributed to each Member is equal to the amount of the Distribution such Member is entitled to based on the fair market value of
the property distributed to all Members. 
 (d)      The Managing Member shall take such reasonable efforts,
as determined by it in its sole discretion and consistent with its qualification as a REIT, to make Distributions to the Members in a manner which will preclude any such Distribution or portion thereof from being treated as part of a sale of
property to the Operating Company by a Limited Partner under Section 707 of the Code or the Regulations thereunder; provided, that the Managing Member and the Operating Company shall have no liability to a Member under any circumstances as a
result of any Distribution to a Member being so treated. 
 7.2      Restrictions on
Distributions. The foregoing provisions of this Article VII to the contrary notwithstanding, no distribution shall be made if such distribution would violate any contract or agreement to which the Operating Company is then a party or any
Applicable Law. 
 7.3      Record Holders. Any distribution of Operating Company
assets, whether pursuant to this Article VII or otherwise, shall be made only to Persons who, according to the books and records of the Operating Company, were the holders of record of Membership Units on the date determined by the Managing Member
as of which the Members are entitled to any such distribution. 
 7.4      Distribution
Reinvestment. The Managing Member may make available to Members from time to time the right to purchase Shares with the proceeds of any Distribution pursuant to its Distribution Reinvestment Plan. 

7.5      Final Distribution. The final distributions following dissolution of the
Operating Company shall be made in accordance with the provisions of Article IX. 
 ARTICLE VIII 

CONVERSION RIGHTS; ASSIGNMENT OF INTERESTS 

8.1      Conversion Rights. 

(a)      Any Member shall have the right to convert all or any portion of its Membership Units into Shares (the
“Conversion Right”) from time to time at the end of any quarter and upon the occurrence of certain extraordinary events in the discretion of the Managing Member, such as death of the Member or termination of the Operating Company pursuant
to section 9.1, subject to the terms and conditions of this Article VIII. If at any time any Member desires to make an investment decision regarding whether to convert, the Member will notify the Managing Member and the Managing Member will provide
the Member with the then current private placement memorandum of the Managing Member with respect to the offering of its Shares, any supplements thereto, and the form of Subscription Agreement and Irrevocable Proxy to be completed by each investor
in the Shares. No Member will be entitled to exercise the Conversion Right if such Member does not satisfy the investor suitability standards of the offering or otherwise make the representations and warranties of subscribers under the Subscription
Agreement, provided, however, that any Member which is not, on the date of exercise of the Conversion Right, an “accredited investor,” as such term if defined under 

  
 -26- 

 
Regulation D promulgated under the Securities Act, shall be entitled to convert if such conversion will be exempt from registration under the Securities Act. 

(b)      In the event that any Member wishes to exercise its Conversion Right, the Member shall notify the
Managing Member in writing (the “Conversion Notice”), specifying the number of the Membership Units the Member it wishes to convert. Effective as of the last day of the calendar quarter which is at least ten (10) business days after
the receipt of a Conversion Notice (the “Conversion Date”), the Managing Member will issue a number of Shares corresponding to the number of Membership Units specified in the Conversion Notice to be converted and shall cause the records of
the Operating Company, including Exhibit A hereto, to be amended to reflect the conversion and corresponding cancellation by the Operating Company of the Membership Units to converted and the issuance of the number of full Shares issuable upon the
conversion of the Membership Units. Each conversion will be deemed to have been effected on the Conversion Date. The Shares are uncertificated securities and the Member shall receive the notice required by the Maryland General Corporation Law with
respect to the terms and conditions of the Shares. All Shares delivered upon conversion of all or any portion of a Member’s Membership Units will, upon issuance, be duly and validly issued and fully paid and nonassessable, free of all liens and
charges and not subject to any preemptive rights. The number of Membership Units so converted will no longer be deemed to be outstanding and all rights of the holder with respect to that portion so converted will immediately terminate, except the
right to receive the Shares and any accrued but unpaid distributions with respect to the Membership Units converted. 

(c)      Notwithstanding the provisions of Section 8.1(a) and Section 8.1(b) hereof, a Member shall
not be entitled to exercise the Conversion Right pursuant to Section 8.1(a) if: (i) the delivery of the Shares to such Member on the Conversion Date by the Managing Member would cause the Managing Member to be taxed as a corporation rather
than as a real estate investment trust for federal income tax purposes, or (ii) the exercise of the Conversion Right would cause the sum of the Membership Units that have been sold, assigned, transferred, redeemed or otherwise disposed of
(other than transfers at death, transfers between certain family members, and other transfers described in Section II.B of IRS Notice 88-75) in the fiscal year to exceed ten (10) percent of all
Membership Units outstanding, except as otherwise authorized by the Managing Member in its discretion. This Section 8.2(c)(ii) is intended to satisfy the safe harbor in Section II.E.1 of IRS
Notice 88-75 under which transfers of interests pursuant to a redemption or repurchase agreement will be disregarded for purposes of determining whether interests in the entity will be treated as readily
tradeable on a secondary market (or the substantial equivalent thereof) within the meaning of Section 7704 of the Code. 

(d)      If there is any change in the outstanding Shares, whether upon recapitalization, merger, or otherwise,
the Independent Directors Committee shall make a fair and equitable change to the Conversion Right to reflect the effect of such transaction on the Shares and the Membership Units. If any change in the Conversion Right is approved by the Independent
Directors Committee, then the Managing Member will mail to each of the Members a notice describing the transaction and the amendment of the Conversion Right adopted by the Independent Directors Committee as a result thereof. 

  
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 (e)      The Managing Member will at all times reserve and
keep available, free from preemptive rights, out of the authorized but unissued Shares for the purpose of effecting conversion of Membership Units, the maximum number of Shares which the Managing Member would be required to deliver upon conversion
of all of the Membership Units outstanding from time to time other than those held by the Managing Member. 

8.2      Withdrawals and Assignments by Members. 

(a)      No Withdrawal. No Member shall be entitled to withdraw or resign from the Operating Company,
except pursuant to the terms of this Agreement. No Member shall be entitled to receive any money or property from the Operating Company except: (i) by way of distributions upon the winding up of the Operating Company pursuant to Article IX;
(ii) by way of distributions pursuant to Sectoin 7.1; (iii) in respect of repayment of any bona fide loans to the Operating Company then due and owing; and (iv) as expressly provided elsewhere in this Agreement. 

(b)      Limited Right of Assignment. No Member may directly or indirectly sell, transfer, assign,
hypothecate, pledge or otherwise dispose of or encumber all or any part of its Membership Units (including any right to receive distributions or allocations in respect of such Membership Units and whether voluntarily, involuntarily or by operation
of law) (each, an “Assignment”) without the prior written consent of the Managing Member, the granting or denial of which shall be in the Managing Member’s sole discretion. Each Member and each assignee thereof hereby agrees that it
will not effect any Assignment of all or any part of its Membership Units (whether voluntarily, involuntarily or by operation of law) in any manner contrary to the terms of this Agreement or that violates or causes the Operating Company or the
Managing Member to violate the Securities Act, the Exchange Act, the Investment Operating Company Act, or Applicable Laws. 

(c)      Right of Managing Member Group Members to Assignment. Notwithstanding Section 8.1(b), the
Managing Member Group Members (other than the Managing Member) may make an Assignment of their Membership Unit to any Person, and such Person shall be admitted as a Substitute Member, subject to compliance with Section 8.1(d) and the
requirement of Section 3.1(a)(iii) that the Managing Member Group Members shall, so long as they control the Asset Manager, maintain an equity contribution in the Managing Member and the Operating Company in the aggregate of at least 20,000
Shares on a fully diluted basis. The Members acknowledge and agree that, subject to the foregoing restriction, the Managing Member may offer to potential Additional Members Membership Units held by the Managing Member Group Members other than the
Managing Member rather than newly issued Membership Units. 
 (d)      Conditions Precedent to
Assignment. Any purported Assignment by a Member pursuant to the terms of this Section 8.1 shall, in addition to requiring the prior written consent referred to in Section 8.1(b), be subject to the satisfaction of the following
conditions: 
  

	 	(i)	 The Managing Member shall have been given at least twenty (20) Business Days’ prior written notice of
such desired Assignment 

  
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specifying the name and address of the proposed assignee and the terms and conditions of the proposed Assignment; 

 

	 	(ii)	 The assigning Member or assignee shall undertake to pay all expenses incurred by the Operating Company or the
Managing Member on behalf of the Operating Company in connection therewith; 

  

	 	(iii)	 The Operating Company shall receive from the assignee: (A) such documents, instruments and certificates as
may be requested by the Managing Member, pursuant to which such assignee shall agree to be bound by this Agreement; (B) a certificate duly executed by the assignee to the effect that each of the representations, warranties and acknowledgments
set forth in the Subscription Agreement are (except as otherwise disclosed to the Managing Member) true and correct with respect to such Person as of the date of such Assignment and that the assignee agrees to be bound by each of the agreements,
covenants and acknowledgments in the Subscription Agreement as if it were a party thereto; (C) a completed suitability statement in the form contained in the Subscription Agreement, as relevant to the proposed assignee; (D) such other
documents, opinions, instruments and certificates as the Managing Member shall request; and (E) a counterpart of this Agreement executed by or on behalf of such Person; 

 

	 	(iv)	 Such assigning Member or assignee shall, prior to making any such Assignment, deliver to the Operating Company
the opinion of counsel described in Section 8.2(e), if required by the Operating Company; and 

  

	 	(v)	 Such Assignment would not pose a material risk that the Operating Company will be treated as a “publicly
traded Operating Company” within the meaning of Section 7704 of the Code and the regulations promulgated thereunder or make the Operating Company ineligible for “safe harbor” treatment under Section 7704 of the Code and the
regulations promulgated thereunder. 

 The Managing Member may, in its discretion, waive any or all of the conditions set
forth in this Section 8.1(d) other than clause (iii)(B) thereof. 
 (e)      Opinion of Counsel.
The opinion of counsel referred to in Section 8.2(d)(iv) shall be in form and substance satisfactory to the Managing Member, shall be from counsel satisfactory to the Managing Member (which, in the case of an assignee that is an institutional
investor, may be staff counsel regularly employed by such institutional investor) and shall be substantially to the effect that (unless specified otherwise by the Managing Member) the consummation of the Assignment contemplated by the opinion will
not: 

  
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	 	(i)	 violate any provisions of the Securities Act or applicable state securities laws; 

 

	 	(ii)	 require the Managing Member or the Operating Company to register as an investment company under the Investment
Operating Company Act and (whether or not such Assignment is of the assigning Member’s entire Membership Unit), that the assignee is a Person that counts as one beneficial owner for purposes of Section 3(c)(1) of the Investment Operating
Company Act; 

  

	 	(iii)	 require the Managing Member or any Affiliate of the Managing Member to register as an investment adviser under
the Advisers Act; 

  

	 	(iv)	 cause the Operating Company to be taxable as a corporation or association under the Code;

  

	 	(v)	 violate any Applicable Laws pertaining to such Assignment; and 

 

	 	(vi)	 pose a material risk that the Operating Company will be treated as a “publicly traded partnership”
within the meaning of Section 7704 of the Code and the regulations promulgated thereunder and would not make the Operating Company ineligible for “safe harbor” treatment under Section 7704 of the Code and the regulations
promulgated thereunder. 

 In giving such opinion, counsel may, with the consent of the Managing Member, rely as to
factual matters on certificates of the assigning Member, the assignee and the Managing Member. 

(f)      Admission of Assignees as Substitute Members. No assignee of all or any portion of the
Membership Units of a Member in the Operating Company shall be admitted to the Operating Company as a Substitute Member unless and until the Managing Member has consented to such substitution in its discretion. Unless and until an assignee of a
Membership Unit becomes a Substitute Member, such assignee shall not be entitled to exercise any vote, consent or any other right or entitlement with respect to such Membership Unit. In the event of the admission of an assignee as a Substitute
Member, all references herein to the assigning Member shall be deemed to apply to such Substitute Member, and such Substitute Member shall succeed to all rights and obligations of the assigning Member hereunder. A Person shall be deemed admitted to
the Operating Company as a Substitute Member at the time that the foregoing provisions are satisfied. No attempted Assignment and no substitution shall be recognized by the Operating Company unless effected in accordance with and as permitted by
this Agreement. 
 8.3      Sale of Membership Units; Applicable Law Withdrawal. 

(a)      Sale of Membership Units. If, at any time, the Managing Member determines, after consultation
with the affected Member and counsel to the Managing Member, 

  
 -30- 

 
that there is a reasonable likelihood that the continuing participation in the Operating Company by any Member might: (i) cause the Operating Company or any Member to be subject to a
requirement to register as an investment company under the Investment Operating Company Act, or (ii) have a Material Adverse Effect, such Member will, upon the written request of the Managing Member, use its best efforts to dispose of its
entire Membership Unit (or such portion of its Membership Unit that, in the discretion of the Managing Member, is sufficient to prevent or remedy the circumstance described above) to any Person at a price acceptable to such Member, in a transaction
that complies with Section 8.1. 
 (b)      Applicable Law Withdrawal. If, as a result of
Applicable Law, the ownership of a Membership Unit by a Member becomes illegal, or is likely to become illegal or the Applicable Law more likely than not requires divestiture of such Member’s Membership Unit or indirect investment through the
Operating Company in a Portfolio Entity, then the Managing Member and the Member shall use their respective commercially reasonable efforts to avoid a violation of any such Applicable Law by a Member. These steps may include, depending on the
provisions of such Applicable Law: (i) arranging for the sale of the Member’s Membership Unit to a Third Party upon terms reasonably satisfactory to such Member in a transaction that complies with Section 8.1; (ii) making any
appropriate applications to the relevant Governmental Authority for exemption from the application of such Applicable Law; (iii) converting such Member’s Membership Unit into a special interest with no voting or similar rights but with
only an economic right (identical to its prior rights as a Member) with respect to which such Member has made Capital Contributions; or (iv) permitting the Member to withdraw from the Operating Company for a “payment” to such Member
equal to the value of its Membership Unit at the time of withdrawal, such value to be equal to the then current Determined Share Value. The “payment” shall be made in cash unless the Managing Member determines in its discretion that the
payment in cash would be economically detrimental to the Operating Company, in which case such payment may be made in kind, subject to the Applicable Law. The timing of any such withdrawal must be mutually agreeable to the Member and the Managing
Member taking proper account of the effective date of the Applicable Law that is the basis for the withdrawal or other remedy provided herein and the need of the Managing Member for a reasonable period of time to find a solution to the illegality or
requirement for divestiture. Such illegality must be established by (A) an opinion of counsel (which counsel shall be reasonably satisfactory to the Managing Member) substantially to the effect that the ownership of the Membership Unit more
likely than not will result in such illegality or requirement for divestiture, or (B) upon a ruling or order from a Governmental Authority. 

ARTICLE IX 

DISSOLUTION OF THE COMPANY 

9.1      Dissolution of Operating Company. The existence of the Operating Company shall
continue until the first to occur of any of the following events (an “Event of Termination”): 

(a)      The election of the Managing Member to terminate the Operating Company. 

  
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 (b)      The last Business Day of the fiscal year of the
Operating Company (after the termination of the Investment Period) in which all Properties acquired, or agreed to be acquired, by the Operating Company have been sold or otherwise disposed of. 

(c)      The entry of a decree of judicial dissolution pursuant to Section 702 of the LLC Law. 

(d)      As provided in Section 4.1(a)(v). 

9.2      Winding Up of Operating Company Affairs and Distribution of Assets. Upon the occurrence of an
Event of Termination, the Operating Company shall be dissolved and the business of the Operating Company shall be wound up and the assets of the business shall be liquidated reasonably promptly by the Managing Member, acting as liquidating agent;
provided, however, that if the Operating Company is being dissolved and liquidated pursuant to Section 9.1(b) or (g), then the Members may elect another Person to act as liquidating agent by Non-Managing
Member Majority-in-Interest Consent. 

9.3      Distributions Upon Dissolution and Liquidation. As soon as practicable after the effective date
of the dissolution of the Operating Company, the Operating Company’s assets shall be applied and distributed in the following order: 

(a)      Payment of debts and liabilities to creditors, including Members who are creditors, to the extent
permitted by Applicable Law other than liabilities for distributions to Members; 

(b)        Payment to Members or former Members in satisfaction of liabilities for distributions
previously declared but unpaid; and 
 (c)    Payment of any remaining assets as a distribution made in accordance with
Section 7.1(a). 
 Distributions to the Members pursuant to Sections 9.3(c) shall be made no later than the end of the Operating
Company’s taxable year (or, if later, within 90 days after the date of the liquidation of the Operating Company). 
 ARTICLE X

 MISCELLANEOUS PROVISIONS 

10.1      Notices. Any notice, payment demand, or communication required or permitted to be given by any
provision of this Agreement shall be deemed to have been sufficiently given or served for all purposes if delivered personally to the Managing Member and the Member or if sent by registered or certified mail, postage and charges prepaid, addressed
to the address of each Member as it appears in the records of the Operating Company, or if sent by recognized overnight courier. 

10.2      Application of New York Law. This Agreement and the application and interpretation thereof
shall be governed exclusively by its terms and by the internal laws of the 

  
 -32- 

 
State of New York without reference to conflict of laws principles other than New York General Obligations Law Section 5-1401 and 5-1402. 
 10.3      Consent To Jurisdiction. EACH OF THE MEMBERS
HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN MONROE COUNTY, NEW YORK FOR THE PURPOSE OF
ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THE COMPANY OR THIS AGREEMENT. EACH OF THE MEMBERS IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH
PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH MEMBER CONSENTS TO THE SERVICE OF PROCESS IN ANY SUCH PROCEEDING BY THE DELIVERY (BY OVERNIGHT COURIER)
TO IT AT ITS ADDRESS TO WHICH NOTICE IS REQUIRED TO BE GIVEN TO IT IN THIS AGREEMENT. EACH MEMBER FURTHER AGREES THAT A FINAL JUDGMENT IN ANY SUCH PROCEEDING SHALL BE CONCLUSIVE AND BINDING AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE
JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. 
 10.4      Waiver of Trial by Jury. TO THE EXTENT
PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY MATTER ARISING HEREUNDER. 

10.5      Amendments to Agreement. 

(a)      This Agreement may not be amended, modified, altered or restated, except as expressly set forth in
Section 5.1(a) and this Section 10.5. Amendments to this Agreement may be proposed by the Managing Member. In the event any proposed amendment requires the approval of any Non-Managing Members, the
Managing Member shall seek the written vote of the Members on the proposed amendment or call a meeting to vote thereon and to transact any other business that it may deem appropriate. For purposes of obtaining a written consent, the Managing Member
may require a response within a reasonable specified time, but not less than 15 days, and failure to respond in such time period shall constitute a consent with respect to the proposal; provided, that, an action shall become effective at such time
as requisite consents are received even if prior to such specified time. 
 (b)      Notwithstanding the
foregoing, the Managing Member shall have the power without the consent of the Non-Managing Members, to amend this Agreement as may be required to facilitate or implement any of the following purposes: 

 

	 	(i)	 to reflect the issuance of additional Membership Units or the admission, substitution, termination or
withdrawal of Members in accordance with this Agreement. 

  
 -33- 

	 	(ii)	 to reflect a change that is of an inconsequential nature and does not adversely affect the Non-Managing Members in any material respect, or to cure any ambiguity, correct or supplement any provision in this Agreement not inconsistent with law or with other provisions; 

 

	 	(iii)	 to satisfy any requirements, conditions or guidelines contained in any order, directive, opinion, ruling or
regulation of a Federal or state agency or contained in Federal or state law; and 

  

	 	(iv)	 to reflect such changes as are reasonably necessary for the Managing Member to maintain its status as a REIT,
including changes which may be necessitated due to a change in applicable law (or an authoritative interpretation thereof) or a ruling of the Internal Revenue Service. 

The Managing Member will provide notice to the Non-Managing Members when any action under this Section 10.5 is
taken. 
 10.6      Severability. If any provision of this Agreement, or the application thereof to any
Person or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable
provision and (b) the remainder of this Agreement and the application of such provision to other persons, entities or circumstances shall not be affected by such invalidity or unenforceability. 

10.7      Successors. Subject to the limits on assignment contained herein, each and all of the
covenants, terms, provisions and agreements herein contained shall be binding upon and inure to the benefit of the permitted successors, heirs and assigns, of the Members. 

10.8      Entire Agreement. This Agreement, the Articles of Organization and any Subscription Agreements,
each as amended or supplemented from time to time, constitute the entire agreement among the parties hereto pertaining to the subject matter hereof and supersede all prior agreements and understandings pertaining thereto, including but not limited
to the Original Operating Agreement. 
 10.9      Power of Attorney. Each Member hereby constitutes and
appoints the Managing Member as such Member’s true and lawful agent and attorney-in-fact, with full power of substitution, with full power and authority in such
Member’s name, place and stead to execute, acknowledge, deliver and file all such documents which the Managing Member deems necessary or appropriate: (a) to continue the existence or qualification of the Operating Company as a limited
liability company under the laws of any state or jurisdiction; (b) to reflect amendments to this Agreement or the Articles of Organization made pursuant hereto; or (c) to reflect the dissolution or liquidation of the Operating Company
pursuant to the terms hereof. The foregoing power of attorney is hereby declared irrevocable and a power coupled with an interest and shall survive the death or incapacity of any Member and shall extend to such Member’s successors and assigns,
heirs or representatives. 

  
 -34- 

 10.10      Waiver of Action for Partition. Each of the
Members irrevocably waives any right that it may have to maintain any action for partition with respect to any of the Operating Company’s assets. 

10.11      Number and Gender. In interpreting this Agreement, the masculine gender includes the feminine,
the neuter shall include both the masculine and feminine, the singular includes the plural, and the plural includes the singular whenever the context so requires. 

10.12      Counsel. Each Member hereby acknowledges and agrees that Nixon Peabody LLP is acting as
counsel to the Managing Member and some of the Related Persons and, except as otherwise provided by law, does not represent or owe any duty to any other Member or to the Members as a group. 

10.13      Survival. Except as otherwise expressly provided herein, all indemnities and reimbursement
obligations made pursuant to this Agreement shall survive dissolution and liquidation of the Operating Company until expiration of the longest applicable statute of limitations (including extensions and waivers) with respect to the matter for which
a party would be entitled to be indemnified or reimbursed, as the case may be. 
 10.14      Ownership and
Use of Name. Upon termination of the Operating Company, the entire right, title and interest in and to the name of the Operating Company and the goodwill attached thereto shall, without requiring any compensation to the Operating Company or to
any Member, be assigned to the Managing Member or to such other Person as shall be designated by the Managing Member. 
 [Signature page
follows] 

  
 -35- 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
counterparts as of the day and in the year first above written, and each of such counterparts, when taken together, shall constitute one and the same instrument. 
  

							
	ORIGINAL MEMBERS:	  	BROADSTONE VENTURES, LLC
		
		  	By:      /s/ Robert C.
Tait                                
		  	            Robert C. Tait, President
		
		  	KNOLLWOOD VENTURES, INC.
		
		  	By:      /s/ Norman P. Leenhouts                    
		  	            Norman P. Leenhouts, President
		
		  	BOX TREE ASSETS LLC
		
		  	By:      /s/ Robert C.
Tait                                
		  	            Robert C. Tait, Authorized Member
		
		  	/s/ Nelson B. Leenhouts                        
		  	Nelson B. Leenhouts
		
	MANAGING MEMBER:	  	BROADSTONE NET LEASE, INC.
		
		  	By:      /s/ Amy L.
Tait                                         
       
		  	            Amy L. Tait, Chief Executive Officer and Secretary
		
	OPERATING COMPANY:	  	BROADSTONE NET LEASE, LLC
		  	By:      Broadstone Net Lease, Inc.
		  	            Its Managing Member
			
		  		  	          By:      /s/ Robert C.
Tait                                    
		  		  		 	                    Robert C. Tait, PresidentEX-10.7

 Exhibit 10.7 

Execution Copy 
 AMENDED
AND RESTATED 
 EMPLOYMENT AGREEMENT 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) by and between Broadstone Net Lease, Inc.,
a Maryland corporation (the “REIT”), Broadstone Net Lease, LLC, a New York limited liability company (the “Operating Company”), and the Operating Company’s subsidiary, Broadstone Employee Sub, LLC, a New York
limited liability company (“REIT Operator” and, together with the REIT and the Operating Company, the “Company”), and Christopher J. Czarnecki (“Executive”) is dated as of the Effective Date. 

WHEREAS, Executive and the Company are presently party to that certain Employment Agreement, dated November 11, 2019 (the
“Prior Agreement”); and 
 WHEREAS, the Company and Executive desire to amend and restate the Prior
Agreement as of the Effective Date, as set forth herein, for the purpose of adding the REIT Operator as a party to this Agreement. 

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

	 	1.	 Term of Employment.  

(a)            Subject to the terms and conditions of this
Agreement, REIT Operator hereby employs Executive, and Executive hereby accepts employment with REIT Operator, in the positions and with the duties and responsibilities as set forth in Section 2 hereof for the Term of Employment (as defined
below). The REIT and the Operating Company agree to be jointly and severally liable for all obligations of the REIT Operator under this Agreement, including payment obligations. 

(b)            The term of employment under this Agreement will
commence on the date of the Closing (as defined in that certain Agreement and Plan of Merger between the REIT, the Operating Company, Broadstone Real Estate, LLC, a New York limited liability company, and the other parties thereto, dated as of
November 11, 2019) (the “Effective Date”) and continue through the fourth (4th) anniversary of the Closing (the “Term” or “Term of
Employment”), unless the Agreement is terminated sooner in accordance with Section 4 hereof. If the Closing does not occur, this Agreement will automatically terminate and be of no force or effect. 

 

	 	2.	 Position; Duties and Responsibilities.  

(a)            During the Term of Employment, Executive will be
employed by the REIT Operator and will serve as the President and Chief Executive Officer of the REIT, reporting solely and directly to the Board of Directors of the REIT (the “Board of Directors” or the “Board”).
In this capacity, Executive shall have the duties, authorities and responsibilities as are required by Executive’s position commensurate with the duties, authorities and responsibilities of persons in similar capacities in similarly sized
companies, and such other duties, authorities and responsibilities as may reasonably be assigned to Executive as the Board of Directors shall designate from time to time that are not inconsistent with Executive’s position and that are
consistent with the bylaws of the REIT, the limited liability company agreement of the Operating Company, and the limited liability company agreement of REIT Operator, each as may be amended from time to time, including, but not limited to, managing
the affairs of the Company. 
 (b)            During the Term
of Employment, Executive will, without additional compensation, also serve on the Board of Directors of, serve as an officer of, and/or perform such executive 

 
and consulting services for, or on behalf of, such subsidiaries of the REIT as the Board of Directors may, from time to time, request. 

(c)            During the Term of Employment, Executive will
serve the Company faithfully, diligently, and to the best of Executive’s ability and will devote substantially all of Executive’s business time and attention to the performance of Executive’s duties hereunder, and shall have no other
employment (unless approved by the Board of Directors); provided, that, nothing contained herein shall prohibit Executive from (i) participating in trade associations or industry organizations in furtherance of the Company’s
interests, (ii) engaging in charitable, civic, educational or political activities, (iii) engaging in passive personal investment activities for Executive and Executive’s family or (iv) accepting directorships or similar
positions, subject to approval in advance by the Board of Directors, which approval shall not be unreasonably withheld (together, the “Personal Activities”), in each case so long as the Personal Activities do not unreasonably
interfere, individually or in the aggregate, with the performance of Executive’s duties to the Company under this Agreement or violate the restrictive covenants set forth in Section 6 of this Agreement. 

(d)            During the Term of Employment, Executive shall
perform the services required by this Agreement at the Company’s principal offices located in Rochester, New York (the “Principal Location”), except for travel to other locations as may be necessary to fulfill Executive’s
duties and responsibilities hereunder. 
  

	 	3.	 Compensation and Benefits.  

(a)            Base Salary. During the Term of Employment,
Executive will be entitled to receive an annualized base salary (the “Base Salary”) of not less than $625,000. The Base Salary shall be paid in accordance with REIT Operator’s normal payroll practices, but no less often than
semi-monthly. The Base Salary shall be subject to annual review by the Board (or a committee of directors to whom such responsibility has been delegated by the Board) for possible increase, but not decrease (except pursuant to across-the-board salary reductions affecting other senior-level executives of the REIT. 

(b)            Incentive Compensation. In addition to the
Base Salary, Executive shall be entitled to participate in any short-term and long-term incentive programs (including without limitation equity compensation plans) established by the Company, including for its senior level executives. However,
during the Term of Employment, and subject to subsection (e) below, such arrangements will include: 

(i)          Annual Performance Bonus. In each calendar year of the
Term of Employment, Executive shall be eligible to receive an annual incentive bonus (the “Annual Bonus”) payable in cash, pursuant to the performance criteria and targets established and administered by the Board (or a committee of
directors to whom such responsibility has been delegated by the Board). Commencing with calendar year 2020, Executive’s target Annual Bonus shall be at least one hundred and twenty percent (120%) of Executive’s Base Salary (“Target
Bonus”). The Annual Bonus payable to Executive each year shall be determined and payable as soon as practicable after year-end for such year (but no later than March 15th). To be entitled to receive any Annual Bonus, except as otherwise provided in Sections 4(a), (b) and 4(d) hereof, Executive must remain employed through the last day of the calendar year to which
the Annual Bonus relates. For purposes of this Agreement, the term “Annual Bonus” excludes any special transaction or retention bonuses that Executive has received, or may receive, from time to time, from the Company or any predecessor
employer. 
 (ii)          Long-Term Equity Incentives. During the
Term, Executive shall be eligible for stock-based awards under the Company’s long-term incentive plan, as determined by the Board (or a committee of directors to whom such responsibility has been delegated by the Board) in its sole

  
 2 

 
discretion. Nothing herein requires the Board (or any committee thereof) to make grants of stock-based awards in any year. Without limiting the foregoing, the target grant date fair value of
Executive’s annual long-term incentive award with respect to calendar year 2020 shall be $2,000,000 (“Target LTIP Value”). Forty percent (40%) of the Target LTIP Value shall be allocated to a stock-based award having time-based
vesting criteria (the “2020 Time-Based Award”) and sixty percent (60%) of the Target LTIP Value shall be allocated to a stock-based award having performance-based vesting criteria (the “2020 Performance-Based Award”). The 2020
Time-Based Award and the 2020 Performance-Based Award shall be subject to the terms and conditions, including specific vesting periods, set forth in the award certificate memorializing such awards, as determined by the Board (or a committee of
directors to whom such responsibility has been delegated by the Board) in its sole discretion. 

(c)            Employee Benefit Programs and Fringe
Benefits. During the Term of Employment, Executive will be eligible to participate in all executive incentive and employee benefit programs of the Company made available to the Company’s senior level executives generally, as such programs
may be in effect from time to time; provided, that nothing herein shall prevent the Company from amending or terminating any such programs pursuant to the terms thereof; provided, that, such amendment or termination shall not discriminate against
Executive. The REIT Operator will reimburse Executive for any and all necessary, customary and usual business expenses incurred and paid by Executive in connection with Executive’s employment upon presentation to the Company of reasonable
substantiation and documentation, and in accordance with, and subject to the terms and conditions of, applicable Company policies. During the Term, Executive shall be entitled to paid vacation and, if applicable paid time off, per year of the Term
(as prorated for any stub employment period) in accordance with the Company’s policy on accrual and use applicable to employees as in effect from time to time, but in no event shall Executive accrue less than five (5) weeks of vacation per
calendar year (pro-rated for any stub employment period).  

(d)            Insurance; Indemnification. Executive shall
be covered by such comprehensive directors’ and officers’ liability insurance and errors and omissions liability insurance as the Company and any subsidiaries on which Executive may serve as a director shall have established and maintained
in respect of its directors and officers generally and at its expense. The Company shall indemnify Executive for liabilities incurred by Executive while acting in good faith in his capacity as a director or an officer to the fullest extent provided
for any other officer or director of the Company. 

(e)            Clawback/Recoupment. Notwithstanding any
other provisions in this Agreement to the contrary, any compensation provided to, or gain realized by, Executive pursuant to this Agreement or any other agreement or arrangement with the Company shall be subject to repayment and/or forfeiture by
Executive to the Company if and to the extent any such compensation or gain (i) is or becomes subject to the “clawback” policy adopted by the REIT and in effect as of the date hereof that is applicable to Executive and other similarly
situated executives, or (ii) is, or in the future, becomes subject to, any law, rule, requirement or regulation which imposes mandatory recoupment or forfeiture, under circumstances set forth in such law, rule, requirement or regulation. 

 

	 	4.	 Termination of Employment.  

(a)            Termination Due to Disability. The Company
may cause the REIT Operator to terminate Executive’s employment, to the extent permitted by applicable law, if Executive (i) is unable to perform the essential functions of Executive’s job, with or without reasonable accommodation, by
reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months, or (ii) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months, actually receiving income 

  
 3 

 
replacement benefits for a period of not less than three months under an accident and health plan covering employees of the REIT Operator (“Disability”). If Executive’s
employment is terminated under this Section 4(a) for Disability, then the REIT Operator shall pay or provide Executive the following: 

(i)        the Accrued Benefits (as defined in Section 4(i)
hereof); 
 (ii)        Executive’s outstanding equity awards that are subject
solely to time-based vesting conditions shall become fully vested as of Executive’s date of termination (the “Vesting Acceleration for Time-Based Equity Awards”); 

(iii)        the REIT Operator shall pay Executive a cash amount equal to the product
of (x) Executive’s Target Annual Bonus for the year in which the effective date of Executive’s termination occurs, and (y) a fraction, the numerator of which is the number of days in the calendar year preceding the effective of
Executive’s termination, and the denominator of which is 365 (the “Prorated Final Year Target Bonus”). Subject to Section 24, the Prorated Final Year Target Bonus shall be paid in a single lump sum with the first payroll
date to occur after the sixtieth (60th) day following the effective date of Executive’s termination; and 

(iv)        if Executive timely and properly elects to continue participation in any
group medical, dental, vision and/or prescription drug plan benefits to which Executive or Executive’s eligible dependents would be entitled under COBRA, then the REIT Operator shall pay Executive a monthly cash payment equal to the excess of
(x) the COBRA cost of coverage for each month during the Applicable Benefits Payment Period (as defined in Section 4(i) hereof) over (y) the amount that Executive would have had to pay for such coverage if Executive had remained
employed by the REIT Operator during the Applicable Benefits Payment Period and paid the active employee rate for such coverage, less withholding for taxes and other similar items (the “Benefits Payments”), paid in accordance with
the normal payroll practice of the REIT Operator during the Applicable Benefits Payment Period beginning within sixty (60) days following the effective date of Executive’s termination (with the first payment to include any payments that
would have been made during such sixty (60) day period if payments had commenced on the effective date of Executive’s termination). 

Otherwise, the Company shall have no further liability or obligation under this Agreement to Executive. For the avoidance of doubt,
Executive’s outstanding equity awards that are subject to performance-based vesting conditions shall be treated in accordance with the terms of the applicable award agreement. 

(b)            Termination Due to Death. Executive’s
employment shall terminate automatically upon Executive’s death during the Term of Employment. If Executive’s employment is terminated because of Executive’s death, then Executive’s executor, legal representative, administrator
or designated beneficiary, as applicable, the REIT Operator shall pay or provide Executive the following: 

(i)        the Accrued Benefits; 

(ii)       the Vesting Acceleration for Time-Based Equity Awards; 

(iii)      the Prorated Final Year Target Bonus; and 

(iv)      if Executive’s eligible dependents timely and properly elect to continue
participation in any group medical, dental, vision and/or prescription drug plan benefits pursuant to COBRA, then such dependents shall be entitled to receive the Benefits Payments (collectively or on a pro rata basis) during the Applicable Benefits
Payment Period, less withholding for taxes and other similar items, paid in accordance with the normal payroll practice of the REIT Operator during the Applicable 

  
 4 

 
Benefits Payment Period beginning within sixty (60) days following the effective date of Executive’s termination (with the first payment to include any payments that would have been
made during such sixty (60) day period if payments had commenced on the effective date of Executive’s termination). 
 Otherwise,
the Company shall have no further liability or obligation under this Agreement to Executive’s executors, legal representatives, administrators, heirs or assigns or any other person claiming under or through Executive. For the avoidance of
doubt, Executive’s outstanding equity awards that are subject to performance-based vesting conditions shall be treated in accordance with the terms of the applicable award agreement. 

(c)            Expiration of Agreement. If following the
expiration of the Term, the Company causes the REIT Operator to terminate Executive’s employment for any reason or Executive resigns from Executive’s employment for any reason, then no further payments or benefits shall be due under this
Agreement and all then unvested awards or benefits shall be forfeited, except that the REIT Operator shall pay or provide to Executive the Accrued Benefits. Otherwise, the Company shall have no further liability or obligation under this Agreement to
Executive. Notwithstanding the foregoing, if the Company elects not to renew this Agreement and the Company and Executive do not enter into a new agreement that supersedes this Agreement, then, following the expiration of the Term,
(i) Executive shall be covered by a severance plan or policy providing (X) severance terms that are no less favorable than those provided in Section 4(d)(ii)(1), (2) and (4) hereof (the “Similar Severance
Benefits”), and (Y) that Executive’s outstanding equity awards that are subject solely to time-based vesting conditions shall vest as to that portion of the award that would have become vested on the next vesting date following
the effective date of Executive’s termination of employment by the REIT Operator other than for Cause or Disability, or Executive’s resignation for Good Reason (as such terms are defined herein), with the remaining unvested portion of such
time-based equity awards treated in accordance with the terms of the applicable award agreement, or, if more beneficial to Executive, the vesting benefit provided under any such severance plan or policy (together with the Similar Severance Benefits,
the “Non-Renewal Severance Benefits”); or (ii) if the REIT Operator fails to implement such a plan or policy and the Company causes the REIT Operator to terminate Executive’s
employment other than for Cause or Disability, or Executive resigns for Good Reason (as such terms are defined herein), then, notwithstanding the expiration of the Term and subject to the Release Requirement (as defined in Section 4(d)(ii)
hereof) and continued compliance with the obligations set forth in Section 6 hereof, the REIT Operator shall pay or provide Executive with the Non-Renewal Severance Benefits. For the avoidance of doubt,
if Executive elects not to renew this Agreement, then the preceding sentence shall not apply. 

(d)            Termination by the Company Without Cause or by
Executive for Good Reason. The Company may cause the REIT Operator to terminate Executive’s employment immediately at any time without Cause (as defined in Section 4(i) hereof), and Executive may terminate Executive’s employment
by resigning for Good Reason (as defined in Section 4(i) hereof) upon not less than sixty (60) days’ prior written notice of such resignation to the REIT. Upon any such termination of Executive’s employment without Cause or for
Good Reason (each, a “Qualifying Termination”), the REIT Operator shall pay or provide Executive with the following: 

(i)          The Accrued Benefits; and 

(ii)          if Executive signs a general release of claims in favor of
the Company substantially in the form attached hereto as Exhibit A, and subject to the expiration of any applicable or legally required revocation period, all within sixty (60) days after the effective date of termination (the “Release
Requirement”): 

  
 5 

 (1)        the REIT Operator shall
pay Executive a cash amount equal to two (2) times, if the Qualifying Termination occurs outside the Change-in-Control Window (as defined herein), or three
(3) times, if the Qualifying Termination occurs within the Change in Control Window, the sum of (A) Executive’s then-current Base Salary and (B) Executive’s then-current Target Bonus. Subject to Section 24, the amount
payable pursuant to this Section 4(d)(ii)(1)shall be paid in a single lump sum with the first payroll date to occur after the sixtieth (60th) day following the effective date of
Executive’s termination; 
 (2)        the Prorated Final Year Target Bonus,
payable in a single lump sum with the first payroll date to occur after the sixtieth (60th) day following the effective date of Executive’s termination; 

(3)        the Vesting Acceleration for Time-Based Equity Awards; and 

(4)        if Executive timely and properly elects to continue participation in any
group medical, dental, vision and/or prescription drug plan benefits to which Executive or Executive’s eligible dependents would be entitled under COBRA, then Executive shall be entitled to receive the Benefits Payments during the Applicable
Benefits Payment Period, less withholding for taxes and other similar items, paid in accordance with the normal payroll practice of the REIT Operator during the Applicable Benefits Payment Period beginning within sixty (60) days following the
effective date of Executive’s termination (with the first payment to include any payments that would have been made during such sixty (60) day period if payments had commenced on the effective date of Executive’s termination). 

Otherwise, the Company shall have no further liability or obligation under this Agreement to Executive. Executive’s continuing
entitlement to receive the payments and benefits set forth in Section 4(d)(ii) is also contingent on Executive’s continued compliance in all material respects with the Restrictive Covenants set forth in Section 6 of this Agreement,
and in the event that Executive breaches any of the Restrictive Covenants (which breach, if susceptible to a cure in the reasonable discretion of the REIT, remains uncured for ten (10) business days following delivery of a written notice to
Executive setting forth the nature of such breach), Executive’s entitlement to any payments and benefits set forth in Section 4(d)(ii) shall immediately cease as of the date of such breach. For the avoidance of doubt, Executive’s
outstanding equity awards that are subject to performance-based vesting conditions shall be treated in accordance with the terms of the applicable award agreement. 

(e)            Termination by the Company for Cause. The
Company may cause the REIT Operator to terminate Executive’s employment at any time for Cause pursuant to the provisions of Section 4(i) hereof, in which event as of the effective date of such termination all payments and benefits under
this Agreement shall cease and all then unvested awards or benefits shall be forfeited, except that the REIT Operator shall pay or provide to Executive the Accrued Benefits (with the exception of any earned but unpaid Annual Bonus). Otherwise, the
Company shall have no further liability or obligation under this Agreement to Executive. 

(f)            Voluntary Termination by Executive without Good
Reason. Executive may voluntarily terminate Executive’s employment without Good Reason upon sixty (60) days’ prior written notice. In any such event, after the effective date of such termination, no further payments or benefits
shall be due under this Agreement and all then unvested awards or benefits shall be forfeited, except that the REIT Operator shall pay or provide to Executive the Accrued Benefits. Otherwise, the Company shall have no further liability or obligation
under this Agreement to Executive. 

  
 6 

(g)            Notice of Termination. Any termination of
Executive’s employment shall be communicated by a written notice of termination to the other parties hereto given in accordance with Section 14 and shall specify the termination date in accordance with the requirements of this Agreement.

 (h)            Resignation of All Other
Positions. Upon termination of Executive’s employment for any reason, Executive shall be deemed to have resigned from all positions that Executive holds as an officer of the Company or any affiliate of the Company, and from all positions
that Executive holds as a member of the Board of Directors (or a committee thereof) or the board of directors (or a committee thereof) of any subsidiary or affiliate of the REIT, unless otherwise mutually agreed with the Board of Directors, and
shall take all actions reasonably requested by the Company to effectuate the foregoing. 

(i)            General Provisions; Definitions. 

(i)            For purposes of this Agreement, “Accrued
Benefits” shall mean: (1) any unpaid Base Salary and accrued but unused vacation and/or paid time off (determined in accordance with the REIT Operator’s policy) through the date of termination (paid in cash within 30 days, or such
shorter period required by applicable law, following the effective date of termination), (2) reimbursement for all necessary, customary and usual business expenses and fees incurred and paid by Executive prior to the effective date of termination,
in accordance with Section 3(c) above (payable in accordance with the REIT Operator’s expense reimbursement policy), (3) vested benefits, if any, to which Executive may be entitled under the REIT Operator’s employee benefit plans,
including those as provided in Section 3(c) above (payable in accordance with the applicable employee benefit plan), and (4) any Annual Bonus earned but unpaid as of the effective date of termination. 

(ii)            During any notice period required under
Section 4, (A) Executive shall remain employed by the REIT Operator and shall continue to be bound by all the terms of this Agreement and any other applicable duties and obligations to the Company, (B) the REIT may direct Executive not to
report to work, and (C) Executive shall only undertake such actions on behalf of the Company, consistent with Executive’s position, as expressly directed by the Board of Directors. 

(iii)            For purposes of this Agreement,
“Cause” shall mean any of the following: 

(1)            conduct by Executive that amounts to willful
misconduct, gross neglect, or a material refusal to perform Executive’s duties and responsibilities, which conduct, if susceptible to a cure in the reasonable discretion of the REIT, remains uncured for ten (10) business days following
delivery of a written notice to Executive setting forth the nature of such conduct; 

(2)            any willful violation of any material law, rule,
or regulation applicable to the Company generally; 

(3)            Executive’s material violation of any
material written policy, board committee charter, or code of ethics or business conduct (or similar code) of the Company to which Executive is subject, which violation, if susceptible to a cure in the reasonable discretion of the REIT, remains
uncured for ten (10) business days following delivery of a written notice to Executive setting forth the nature of such violation; 

(4)            any act of fraud, misappropriation, or
embezzlement by Executive, whether or not such act was committed in connection with the business of the Company; 

(5)            a material breach of Section 6 hereof or of
any other contractual obligations, or any breach of fiduciary duties owed by Executive to the Company (which breach, if 

  
 7 

 
susceptible to a cure in the reasonable discretion of the REIT, remains uncured for ten (10) business days following delivery of a written notice to Executive setting forth the nature of
such breach); 
 (6)            Executive’s charge with,
indictment for, conviction of, or entry of a plea of guilty or nolo contendere or no contest with respect to: (X) any felony, or any misdemeanor involving dishonesty or moral turpitude (including pleading guilty or nolo contendere to a felony
or lesser charge which results from plea bargaining), whether or not such felony, crime or lesser offense is connected with the business of the Company, or (Y) any crime connected with the business of the Company; or 

(7)            Executive’s deliberate misrepresentation in
connection with, or willful failure to cooperate with, a bona fide internal investigation or an investigation by regulatory or law enforcement authorities, after being instructed by the Company to cooperate, or the willful destruction or failure to
preserve documents or other materials known to be relevant to such investigation or the willful inducement of others to fail to cooperate or to produce documents or other materials as reasonably requested by the Company or its legal counsel. 

No action or inaction shall be treated as willful unless done or not done in bad faith or without a reasonable belief it was in the best
interests of the Company or any of its affiliates. Any action or inaction based upon the advice of counsel to the Company (or any of its affiliates) or the direction of the Board shall not be treated as Cause. Executive shall not be terminated for
Cause in the absence of a reasonable opportunity to be heard before the Board with Executive’s legal counsel present if Executive so elects. 

(iv)            For purposes of this Agreement, “Change
in Control” means and includes the occurrence of any one of the following events: 

(1)            during any consecutive 12-month period, individuals who, at the beginning of such period, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided
that any person becoming a director after the beginning of such 12-month period and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on
the Board shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director as a result of an actual or threatened election contest with respect to the election or removal of
directors (“Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”), including by reason of any agreement intended to
avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director; or 

(2)            any individual, entity or group (within the
meaning of Section 3(a)(9) of the Securities Exchange Act of 1934 Act (“1934 Act”) and as used in Section 13(d)(3) or 14(d)(2) of the 1934 Act) (a “Person”) becomes a “beneficial owner” (as
defined in Rule 13d-3 of the General Rules and Regulations under the 1934 Act) (“Beneficial Owner”), directly or indirectly, of either (A) 50% or more of the then-outstanding shares of common
stock of the REIT (“REIT Common Stock”) or (B) securities of the REIT representing 50% or more of the combined voting power of the REIT’s then outstanding securities eligible to vote for the election of directors (the
“REIT Voting Securities”); provided, however, that for purposes of this subsection (2), the following acquisitions of REIT Common Stock or REIT Voting Securities shall not constitute a Change in
Control: (w) an acquisition directly from the REIT, (x) an acquisition by the REIT or any corporation, limited liability company, partnership or other entity of which a majority of the outstanding voting stock or voting power is
beneficially owned directly or indirectly by the REIT (a “Subsidiary”), (y) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the REIT or any Subsidiary, or (z) an acquisition pursuant to
a Non-Qualifying Transaction (as defined in subsection (3) hereof); or 

  
 8 

(3)            the consummation of a reorganization, merger,
consolidation, statutory share exchange or similar form of corporate transaction involving the REIT or a Subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially all of the REIT’s assets (a
“Sale”) or the acquisition of assets or stock of another corporation or other entity (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of
the individuals and entities who were the Beneficial Owners, respectively, of the outstanding REIT Common Stock and outstanding REIT Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or
indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the
entity resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such transaction owns the REIT or all or substantially all of the REIT’s assets or stock either directly or through
one or more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their ownership, immediately prior to such Reorganization, Sale or Acquisition, of the outstanding REIT Common Stock and the outstanding REIT
Voting Securities, as the case may be, and (B) no person (other than (x) the REIT or any Subsidiary, (y) the Surviving Entity or its ultimate parent entity, or (z) any employee benefit plan (or related trust) sponsored or
maintained by any of the foregoing) is the Beneficial Owner, directly or indirectly, of 50% or more of the total common stock or 50% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving
Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity were Incumbent Directors at the time of the Board of Director’s approval of the execution of the initial agreement providing for such
Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying
Transaction”); or 
 (4)            approval by the
stockholders of the REIT of a complete liquidation or dissolution of the Company. 

(v)            For purposes of this Agreement, “Change-in-Control Window” shall mean the period starting on the date that is three (3) months prior to a Change in Control and ending on the date that is twelve
(12) months following a Change in Control. 

(vi)            For purposes of this Agreement, “Good
Reason” shall mean, without Executive’s express written consent: 

(1)            a material diminution in Executive’s title,
position, authority, duties, or responsibilities, including failure of the REIT to nominate Executive to be a member of the Board; 

(2)            a material diminution in the authority, duties, or
responsibilities of the supervisor to whom Executive is required to report, including a requirement that Executive report to a corporate officer or employee instead of reporting directly to the Board; 

(3)            a material diminution in Executive’s Base
Salary or Target Bonus; 
 (4)            a willful and
material breach by the Company of this Agreement; or 

(5)            the relocation (without the written consent of
Executive) of Executive’s principal place of employment by more than thirty-five (35) miles from the Principal Location. 

Notwithstanding the foregoing, (I) Good Reason shall not be deemed to exist unless notice of termination on account thereof is given no
later than ninety (90) days after the time at which Executive has knowledge 

  
 9 

 
that the event or condition purportedly giving rise to Good Reason first occurs or arises, (II) if there exists an event or condition that constitutes Good Reason, the Company shall have
thirty (30) days from the date notice of such termination is received to cure such event or condition and, if the Company does so, such event or condition shall not constitute Good Reason hereunder and (III) Executive provides written
notice of termination with Good Reason within sixty (60) days following the Company’s failure to cure such event or condition. 

(vii)        For purposes of this Agreement, the “Applicable Benefits Payment
Period” shall begin on the effective date of Executive’s termination, or, in the case of Executive’s death, the effective date of COBRA continuation coverage for Executive’s eligible dependents under the REIT Operator’s
group health plans, and shall end on the date that is twelve (12) months following the effective date of Executive’s termination by reason of Executive’s death or Disability, or the date that is twenty-four (24) months following
the effective date of Executive’s Qualifying Termination, as applicable. Notwithstanding the foregoing, the Applicable Benefits Payment Period shall end immediately upon Executive becoming eligible to receive group health benefits under a
program of a subsequent employer or otherwise (including coverage available to Executive’s spouse). 

(viii)        The REIT Operator-paid portion of the monthly premium Benefits Payments
shall be determined in accordance with Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations thereunder, and shall be treated as taxable compensation by including such amount in
Executive’s income in accordance with applicable rules and regulations. Any Benefits Payments made to the Executive’s eligible dependents shall be treated as taxable compensation by including such amount in the eligible dependents’
income and withholding from such amounts in accordance with applicable rules and regulations. 

(ix)        The parties agree that a termination of Executive’s employment
pursuant to this Section 4 will not be a breach of this Agreement and does not relieve either party of its other obligations hereunder. 
  

	 	5.	 Code Section 280G.  

(a)            Treatment of Payments. Notwithstanding
anything in this Agreement or any other plan, arrangement or agreement to the contrary, in the event that an accounting firm or a nationally recognized tax firm specializing in Code Section 280G calculations which shall be designated by the
Company prior to a Change in Control with Executive’s written consent (which consent shall not be unreasonably withheld) (the “Accounting Firm”) shall determine that any payment or benefit received or to be received by
Executive from the Company or any of its affiliates or from any person who effectuates a change in control or effective control of the Company or any of such person’s affiliates (whether pursuant to the terms of this Agreement or any other
plan, arrangement or agreement) (all such payments and benefits, the “Total Payments”) would fail to be deductible under Section 280G of the Code or otherwise would be subject (in whole or part) to the excise tax imposed by
Section 4999 of the Code (the “Excise Tax”), then the payments or benefits to be received by Executive that are subject to Section 280G or 4999 of the Code shall be reduced to the extent necessary so that no portion of the
Total Payments is subject to the Excise Tax, but such reduction shall occur if and only to the extent that the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes, and
employment, Social Security and Medicare taxes on such reduced Total Payments), is greater than or equal to the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes
and employment, Social Security and Medicare taxes on such Total Payments and the amount of Excise Tax (or any other excise tax) to which Executive would be subject in respect of such unreduced Total Payments). For purposes of this
Section 5(a), the above tax amounts shall be determined by the Accounting Firm, applying the highest marginal rate under Section 1 of the Code and 

  
 10 

 
under state and local laws which applied (or is likely to apply) to Executive’s taxable income for the tax year in which the transaction which causes the application of Section 280G or
4999 of the Code occurs, or such other rate(s) as the Accounting Firm determines to be likely to apply to Executive in the relevant tax year(s) in which any of the Total Payments is expected to be made. If the Accounting Firm determines that
Executive would not retain a larger amount on an after-tax basis if the Total Payments were so reduced, then Executive shall retain all of the Total Payments. 

(b)            Ordering of Reduction. In the case
of a reduction in the Total Payments pursuant to Section 5(a), the Total Payments will be reduced in the following order: (A) payments that are payable in cash (and that are not deferred compensation within the meaning of Section 409A
of the Code) that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first;
(B) payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) (and that are not deferred compensation within the meaning of
Section 409A of the Code), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (C) payments that
are payable in cash (and that are not deferred compensation within the meaning of Section 409A of the Code) that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A
24, with amounts that are payable last reduced first, will next be reduced; (D) payments and benefits (that are not deferred compensation within the meaning of Section 409A of the Code) due in respect of any equity valued at less than full
value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation
Section 1.280G-1, Q&A 24) will next be reduced; and (E) all other cash or non-cash benefits not otherwise described in above will be next reduced pro-rata with any payments or benefits that are deferred compensation within the meaning of Section 409A of the Code being reduced last. 

(c)            Certain Determinations. For purposes of
determining whether and the extent to which the Total Payments will be subject to the Excise Tax: (A) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as not to
constitute a “payment” within the meaning of Section 280G(b) of the Code will be taken into account; (B) no portion of the Total Payments will be taken into account which, in the opinion of the Accounting Firm, does not
constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken
into account which, in the opinion of the Accounting Firm, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as set forth in
Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (C) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be
determined by the Accounting Firm in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. Executive and the Company shall furnish such documentation and documents as may be necessary for the Accounting Firm to perform the
requisite calculations and analysis under this Section 5 (and shall cooperate to the extent necessary for any of the determinations in this Section 5(c) to be made), and the Accounting Firm shall provide a written report of its
determinations hereunder, including detailed supporting calculations. If the Accounting Firm determines that aggregate Total Payments should be reduced as described above, it shall promptly notify Executive and the Company to that effect. In the
absence of manifest error, all determinations by the Accounting Firm under this Section 5 shall be binding on Executive and the Company and shall be made as soon as reasonably practicable following the later of Executive’s date of
termination of employment or the date of the transaction which causes the application of Section 280G of the Code. The Company shall bear all costs, fees and expenses of the Accounting Firm and any legal counsel retained by the Accounting Firm.

 (d)            Additional Payments. If Executive
receives reduced payments and benefits by reason of this Section 5 and it is established pursuant to a determination of a court of competent jurisdiction 

  
 11 

 
which is not subject to review or as to which the time to appeal has expired, or pursuant to an Internal Revenue Service proceeding, that Executive could have received a greater amount without
resulting in any Excise Tax, then the Company shall thereafter pay Executive the aggregate additional amount which could have been paid without resulting in any Excise Tax as soon as reasonably practicable following such determination. 

6.            Restrictive Covenants.  

(a)            Acknowledgments. 

(i)            Consideration. Executive acknowledges and
agrees that Executive has received good and valuable consideration for entering into this Agreement, including, without limitation, access to and use of Company’s Confidential Information and access to the Company’s Protected Business
Relationships (as defined below) and employee relationships and goodwill. 

(ii)            Access to Confidential Information,
Relationships, and Goodwill. Executive acknowledges and agrees that Executive is being provided and entrusted with Confidential Information (as that term is defined below), including highly sensitive information that is subject to extensive
measures to maintain its secrecy within the Company, is not known in the trade or disclosed to the public, and would materially harm the Company’s legitimate business interests if it was disclosed or used in violation of this Agreement.
Executive also acknowledges and agrees that Executive is being provided and entrusted with access to the Company’s Protected Business Relationships and employee relationships and goodwill. Executive further acknowledges and agrees that the
Company would not provide access to the Confidential Information, Protected Business Relationships, employee relationships, and goodwill in the absence of Executive’s execution of and compliance with this Agreement. Executive further
acknowledges and agrees that the Company’s Confidential Information, Protected Business Relationships, employee relationships, and goodwill are valuable assets of the Company and are legitimate business interests that are properly subject to
protection through the covenants contained in this Agreement. 

(iii)            Potential Unfair Competition. Executive
acknowledges and agrees that as a result of Executive’s employment with the Company, Executive’s knowledge of and access to Confidential Information, and Executive’s relationships with the Company’s Protected Business
Relationships and employees, Executive would have an unfair competitive advantage if Executive were to engage in activities in violation of this Agreement. 

(iv)            No Undue Hardship. Executive acknowledges
and agrees that, in the event that Executive’s employment with the REIT Operator terminates, Executive possess marketable skills and abilities that will enable Executive to find suitable employment without violating the Restrictive Covenants
set forth in this Agreement. 
 (v)            Voluntary
Execution. Executive acknowledges and agrees that Executive is executing this Agreement voluntarily, that Executive has read this Agreement carefully and had a full and reasonable opportunity to consider this Agreement (including an opportunity
to consult with legal counsel), and that Executive has not been pressured or in any way coerced, threatened or intimidated into signing this Agreement. 

(b)            Definitions. The following capitalized
terms used in this Agreement shall have the meanings assigned to them below, which definitions shall apply to both the singular and the plural forms of such terms. 

  
 12 

(i)            “Competitive Services” means
(1) for the business of any private or publicly traded real estate investment trust, fund or other investment vehicle or program, or real estate operating company or other real estate-related business, in each case whose business strategy is
based, in whole or in material part, on investing in, acquiring, managing, holding and/or leasing single tenant net lease commercial real estate properties (including, without limitation, retail properties (such as quick service and casual dining
restaurants), healthcare facilities, industrial manufacturing facilities, warehouse and distribution centers, and corporate offices), whether directly or indirectly through joint ventures; (2) the business of advising (including as an external
advisor) any of the types of businesses described in Section 6(b)(i)(1); and (3) the business of providing any other material activities, products, or services of the type conducted, authorized, offered, or provided by the Company as of
Executive’s date of termination, or during the two (2) years immediately prior to Executive’s date of termination. 

(ii)            “Confidential Information” means
any and all data and information relating to the Company, its activities, business, or clients that (1) is disclosed to Executive or of which Executive become aware as a consequence of Executive’s employment with REIT Operator and services
to the Company; (2) has value to the Company; and (3) is not generally known outside of the Company. “Confidential Information” shall include, but is not limited to the following types of information regarding, related to, or
concerning the Company: trade secrets (as defined by applicable law); financial plans and data; management planning information; business plans; operational methods; market studies; marketing plans or strategies; pricing information; product
development techniques or plans; tenant, investor, and customer lists; tenant, investor, and customer files, data and financial information; details of tenant, investor, and customer contracts; current and anticipated tenant, investor, and customer
requirements; identifying and other information pertaining to business referral sources; past, current and planned research and development; computer aided systems, software, strategies and programs; business acquisition plans; management
organization and related information (including, without limitation, data and other information concerning the compensation and benefits paid to officers, directors, employees and management); personnel and compensation policies; new personnel
acquisition plans; and other similar information. “Confidential Information” also includes combinations of information or materials which individually may be generally known outside of the Company, but for which the nature, method, or
procedure for combining such information or materials is not generally known outside of the Company. In addition to data and information relating to the Company, “Confidential Information” also includes any and all data and information
relating to or concerning a third party that otherwise meets the definition set forth above, that was provided or made available to the Company by such third party, and that the Company has a duty or obligation to keep confidential. This definition
shall not limit any definition of “confidential information” or any equivalent term under state or federal law. “Confidential Information” shall not include information that has become generally available to the public (or within
the Company’s industry) by the act of one who has the right to disclose such information without violating any right or privilege of the Company. 

(iii)            “Material Contact” means
(1) having dealings with an actual or potential tenant, investor, customer, client, or other business relation on behalf of the Company; (2) coordinating or supervising dealings with an actual or potential tenant, investor, customer,
client, or other business relation on behalf of the Company; or (3) obtaining Confidential Information about an actual or potential tenant, investor, customer, client, or other business relation in the ordinary course of business as a result of
Executive’s employment with the Company. 

(iv)            “Person” means any individual or
any corporation, partnership, joint venture, limited liability company, association or other entity or enterprise. 

(v)            “Principal or Representative”
means a principal, owner, partner, shareholder, joint venturer, investor, member, trustee, director, officer, manager, employee, agent, representative or consultant. 

  
 13 

(vi)            “Protected Business Relationship”
means any Person (1)(A) to whom or which the Company has leased any property or actively solicited to lease property, (B) with respect to whom or which the Company has engaged in any Competitive Services or actively solicited to engage in any
Competitive Services during the two (2) years preceding the conduct in question (if the conduct occurs while Executive is still employed by the Company) or the termination date (if the conduct occurs after Executive’s termination), as
applicable, or (C) who or which has, during the two (2) years preceding the conduct in question (if the conduct occurs while Executive is still employed by the Company) or the termination date (if the conduct occurs after Executive’s
termination), as applicable invested in any properties which the Company owns, and (2) with whom Executive has had Material Contact on behalf of the Company during Executive’s employment with the Company. 

(vii)            “Restricted Period” means any
time during Executive’s employment with the Company, as well as twelve (12) months following Executive’s termination date. 

(viii)            “Restricted Territory” means
(1) the United States; and (2) any other territory where Executive is working on behalf of the Company during the one (1) year preceding the conduct in question (if the conduct occurs while Executive is still employed by the Company)
or the termination date (if the conduct occurs after Executive’s termination), as applicable. 

(ix)            “Restrictive Covenants” means
the covenants contained in Section 6(c) through Section 6(i) hereof. 

(c)            Restriction on Disclosure and Use of
Confidential Information. Executive agrees that Executive shall not, directly or indirectly, use any Confidential Information on Executive’s own behalf or on behalf of any Person other than Company, or reveal, divulge, or disclose any
Confidential Information to any Person not expressly authorized by the Company to receive such Confidential Information. This obligation shall remain in effect for as long as the information or materials in question retain their status as
Confidential Information. Executive further agrees that Executive shall fully cooperate with the Company in maintaining the Confidential Information to the extent permitted by law. The parties acknowledge and agree that this Agreement is not
intended to, and does not, alter either the Company’s rights or Executive’s obligations under any state or federal statutory or common law regarding trade secrets and unfair trade practices. Anything herein to the contrary notwithstanding,
Executive shall not be restricted from: (i) disclosing information that is required to be disclosed by law, court order or other valid and appropriate legal or governmental process; provided, however, that in the event such disclosure is
required by law, Executive shall, to the extent legally permitted, provide the Company with prompt notice of such requirement so that the Company may seek an appropriate protective order prior to any such required disclosure by Executive; or
(ii) reporting possible violations of federal, state, or local law or regulation to any governmental agency or entity, or from making other disclosures that are protected under the whistleblower provisions of federal, state, or local law or
regulation, and Executive shall not need the prior authorization of the Company to make any such reports or disclosures and shall not be required to notify the Company that Executive has made such reports or disclosures. In addition, and anything
herein to the contrary notwithstanding, Executive is hereby given notice that Executive shall not be criminally or civilly liable under any federal or state trade secret law for: (iii) disclosing a trade secret (as defined by 18 U.S.C. §
1839) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, in either event solely for the purpose of reporting or investigating a suspected violation of law; or (iv) disclosing a
trade secret (as defined by 18 U.S.C. § 1839) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Executive may also disclose Confidential Information to the extent reasonably appropriate
in the course of any litigation between Executive and the Company or any of its affiliates, provided that Executive shall make reasonable efforts to file any documents containing Confidential Information under seal (including without limitation
seeking leave of 

  
 14 

 
court to file such documents under seal) and shall only file such documents in the public record if such reasonable efforts to file under seal are unsuccessful. 

(d)            
Non-Competition. Executive agrees that, during the Restricted Period, Executive shall not, without prior written consent of the Company, directly or indirectly (i) carry on or engage in Competitive
Services in an executive or managerial capacity within the Restricted Territory on Executive’s own or on behalf of any Person or any Principal or Representative of any Person, or (ii) own, manage, operate, join, control or participate in
the ownership, management, operation or control, of any business, whether in corporate, proprietorship or partnership form or otherwise where such business is engaged in the provision of Competitive Services within the Restricted Territory.
Notwithstanding the foregoing, neither (i) Executive’s passive ownership of less than five (5)% of the equity of an entity engaging in Competitive Services nor (ii) Executive providing services to a division, unit, subsidiary or
affiliate of an entity engaging in Competitive Services so long as the division, unit, subsidiary or affiliate for which Executive provides services does not provide Competitive Services and Executive has no involvement in or with such entity’s
engaging in Competitive Services, shall be treated as a violation of this Section 6(d). 

(e)            
Non-Solicitation of Protected Business Relationships. Executive agrees that, during the Restricted Period, Executive shall not, without the prior written consent of the Company, directly or indirectly,
on Executive’s own behalf or as a Principal or Representative of any Person (i) solicit, entice, or induce, or attempt to solicit, entice, or induce a Protected Business Relationship for the purpose of engaging in, providing, or selling
Competitive Services, except on behalf of the Company; or (ii) solicit, entice, or induce a Protected Business Relationship to terminate or reduce his, hers, or its business with (or refrain from increasing his, hers, or its business with) the
Company. 

(f)            
Non-Recruitment of Employees and Independent Contractors. Executive agrees that during the Restricted Period, Executive shall not, directly or indirectly, whether on Executive’s own behalf or as a
Principal or Representative of any Person, recruit, solicit, or induce or attempt to recruit, solicit or induce any employee or independent contractor of the Company to terminate his/her employment or other relationship with the Company, or to enter
into employment or any other kind of business relationship with Executive or any other Person. Executive shall not violate this Section 6(f) as a result of (i) a general advertisement soliciting employees or independent contractors that is
not focused specifically on employees or independent contractors of the Company; (ii) by providing a personal reference; or (iii) seeking to engage independent contractors who or which provide generic goods or services, such as attorneys
or accountants, as along as such efforts to do not result in such independent contractors terminating or curtailing their business relationship with the Company. 

(g)            Proprietary Rights. Executive acknowledges
and agrees that all discoveries, concepts, ideas, inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports, patent applications, copyrightable work and mask work (whether or not including any Confidential
Information) and all registrations or applications related thereto, all other proprietary information and all similar or related information (whether or not patentable) which relate to the Company’s actual or anticipated business, research and
development or existing or future products or services and which were or are conceived, developed, contributed to or made or reduced to practice by Executive (whether alone or jointly with others) while employed by the Company, whether before or
after the date of this Agreement (“Work Product”), belong to the Company. Executive shall promptly disclose such Work Product to the Company and, at the Company’s expense, perform all actions reasonably requested by the Company
(whether during or after the term of Executive’s employment with the Company) to establish and confirm such ownership (including assignments, consents, powers of attorney and other instruments). Executive acknowledges and agrees that all
copyrightable Work Product shall be deemed to constitute “works made for hire” under the U.S. Copyright Act, as amended, and that the Company shall own all rights therein. To the extent that any Work Product is not a “work made for
hire,” Executive hereby assign and 

  
 15 

 
agree to assign to the Company all right, title and interest, including a copyright, in and to such Work Product. The foregoing provisions of this Section 6 shall not apply to any invention
that Executive developed entirely on Executive’s own time without using the Company’s equipment, supplies, facilities or Confidential Information, except for those inventions that (a) relate to the Company’s business or actual or
demonstrably anticipated research or development, or (b) result from any work performed by Executive for the Company. 

(h)            
Non-Disparagement.  

(i)            Executive agrees that, during the Restricted
Period, Executive will not make any slanderous, defamatory, disparaging or negative statement (whether orally or in writing and whether publicly or privately) about the Company or its officers, directors, employees, affiliates, products, or services
to any Person, including but not limited to television media, print media, social media, any other forms of media or via the Internet (other than in the course of performance reviews for employees of the Company); provided, however, that this
Section 6(h)(i) shall not in any way limit any of Executive’s rights that are expressly reserved in the final two sentences of Section 6(c) above, or in any way limit Executive’s ability to provide truthful testimony or
information in response to a subpoena, court order, or valid request by a government agency, as otherwise required by law, or as otherwise reasonably appropriate in connection with any litigation between Executive and the Company or any of its
subsidiaries or other affiliates. Executive may also make truthful statements to refute inaccurate comments made about him by the Company or any of its subsidiaries or other affiliates, or their respective directors or officers. 

(ii)            The Company agrees that, during the Restricted
Period, the Company will not make any official statement about Executive that is slanderous, defamatory, disparaging or negative; provided, however, that this Section 6(h)(ii) shall not in any way limit the Company’s ability to
provide truthful testimony or information in response to a subpoena, court order, or valid request by a government agency, as otherwise required by law, or as otherwise reasonably appropriate in connection with any litigation between Executive and
the Company or any of its subsidiaries or other affiliates. The Company may also make truthful official statements to refute inaccurate comments made about the Company or any of its subsidiaries or other affiliates by Executive. The Company further
agrees that, following the termination of Executive’s employment, the Company will instruct its directors and elected officers not to make any statements about Executive that are slanderous, defamatory, disparaging or negative, if Executive,
within ten (10) business days after the termination date, makes a written request to the Company to give such an instruction. 

(i)            Return of Materials. Executive agrees that
Executive will not retain or destroy (except as set forth below), and will immediately return to the Company on or as soon as reasonably practicable following the termination date, or at any other time the Company requests such return, any and all
property of the Company that is in Executive’s possession or subject to Executive’s control, including, but not limited to, tenant, investor, and customer files and information, papers, drawings, notes, manuals, specifications, designs,
devices, code, email, documents, diskettes, CDs, tapes, keys, access cards, credit cards, identification cards, equipment, computers, mobile devices, other electronic media, all other files and documents relating to the Company and its business
(regardless of form, but specifically including all electronic files and data of the Company), together with all Confidential Information and Work Product belonging to the Company or that Executive received from or through Executive’s
employment with the Company. Executive will not make, distribute, or retain copies of any such information or property. To the extent that Executive has electronic files or information in Executive’s possession or control that belong to the
Company and contain Confidential Information, or constitute Work Product (specifically including but not limited to electronic files or information stored on personal computers, mobile devices, electronic media, or in cloud storage), on or as soon
as practicable following the termination date, or at any other time the Company requests, Executive shall (1) provide the Company with an electronic copy of all of such files 

  
 16 

 
or information (in an electronic format that readily accessible by the Company); (2) after doing so, delete all such files and information, including all copies and derivatives thereof, from all non-Company-owned computers, mobile devices, electronic media, cloud storage, and other media, devices, and equipment, such that such files and information are permanently deleted and irretrievable; and
(3) provide a written certification to the Company that the required deletions have been completed. Notwithstanding the foregoing, Executive shall be permitted to retain any portions of his calendar, contacts, and personal correspondence that
do not contain any Confidential Information, as well as any information reasonably needed for Executive’s personal tax return preparation, provided that Executive first reasonably cooperates with the Company’s IT and human resources staff
to allow such staff to take reasonable steps to ensure that any documents or materials so retained by Executive do not contain any Confidential Information. 

(j)            Enforcement of Protective Covenants. 

(i)            Rights and Remedies Upon Breach. The
parties specifically acknowledge and agree that the remedy at law for any breach of the Restrictive Covenants will be inadequate, and that in the event Executive breaches, or threatens to breach, any of the Restrictive Covenants, the Company shall
have the right and remedy, without the necessity of proving actual damage or posting any bond, to seek to enjoin Executive, preliminarily and permanently, from violating or threatening to violate the Restrictive Covenants and to have the Restrictive
Covenants specifically enforced by any court of competent jurisdiction, it being agreed that any breach or threatened breach of the Restrictive Covenants would cause irreparable injury to the Company and that money damages would not provide an
adequate remedy to the Company. Executive understands and agrees that if Executive violates any of the obligations set forth in the Restrictive Covenants, the period of restriction applicable to each obligation violated shall cease to run during the
pendency of any litigation over such violation, provided that such litigation was initiated during the period of restriction. Such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the
Company at law or in equity. The Company’s ability to enforce its rights under the Restrictive Covenants or applicable law against Executive shall not be impaired in any way by the existence of a claim or cause of action on Executive’s
part based on, or arising out of, this Agreement or any other event or transaction. 

(ii)            Severability and Modification of
Covenants. Executive acknowledges and agrees that each of the Restrictive Covenants is reasonable and valid in time and scope and in all other respects. The parties agree that it is their intention that the Restrictive Covenants be enforced in
accordance with their terms to the maximum extent permitted by law. Each of the Restrictive Covenants shall be considered and construed as a separate and independent covenant. Should any part or provision of any of the Restrictive Covenants be held
invalid, void, or unenforceable, such invalidity, voidness, or unenforceability shall not render invalid, void, or unenforceable any other part or provision of this Agreement or such Restrictive Covenant. If any of the provisions of the Restrictive
Covenants should ever be held by a court of competent jurisdiction to exceed the scope permitted by the applicable law, such provision or provisions shall be automatically modified to such lesser scope as such court may deem just and proper for the
reasonable protection of the Company’s legitimate business interests and may be enforced by the Company to that extent in the manner described above and all other provisions of this Agreement shall be valid and enforceable. 

(k)            Disclosure of Agreement. Executive
acknowledges and agrees that, during the Restricted Period, Executive will disclose the existence and terms of this Agreement to any prospective employer, business partner, investor or lender prior to entering into an employment, partnership or
other business relationship with such prospective employer, business partner, investor or lender. Executive further agrees that the Company shall have the right to make any such prospective employer, business partner, investor or lender of Executive
aware of the existence and terms of this Agreement. 

  
 17 

(l)            Survival of Provisions. Section 6 of
this Agreement and all other provisions necessary to interpret or enforce Section 6 shall survive and continue in full force in accordance with their respective terms notwithstanding the expiration of the Term or this Agreement or the
termination of Employee’s employment with the Company for any reason. 

7.              Additional
Acknowledgments.  

(a)            [Reserved] 

(b)            Executive also agrees that, in
addition to any other remedies available to the Company and notwithstanding any provision of this Agreement to the contrary, in the event Executive breaches in any material respect any of Executive’s obligations under Section 6 (which
breach, if susceptible to a cure in the reasonable discretion of the Company, remains uncured for ten (10) business days following delivery of a written notice to Executive setting forth the nature of such breach), the Company shall immediately
cease all payments and benefits (including vesting of equity-based awards) under Section 4 and will have no further obligations thereunder. 

(c)            Executive and the Company further
agree that REIT Operator is the employer of Executive for all U.S. federal income tax and employment tax purposes. In accordance with such status, to the extent that any provision herein permits the Company to control, supervise, or otherwise
determine the rights, responsibilities, or obligations of Executive hereunder; to remunerate, reimburse, or otherwise provide any economic benefit to Executive hereunder (or to determine the amount of such payments or benefits); or to otherwise
initiate, terminate, or otherwise alter the terms of Executive’s employment with REIT Operator hereunder, it is acknowledged and agreed by all parties hereto that such actions are taken on behalf of REIT Operator, which hereby grants all
necessary power and authority to the Company to take such actions on behalf of REIT Operator. 

8.            Executive’s Cooperation. During and
following the Term of Employment, Executive shall cooperate with the Company in any internal investigation, any administrative, regulatory or judicial investigation or proceeding or any dispute with a third party as reasonably requested by the
Company to the extent that such investigation, proceeding or dispute may relate to matters in which Executive has knowledge as a result of Executive’s employment with the Company or Executive’s serving as an officer or director of the
Company (including Executive being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s request, after reasonable notice, to give testimony without requiring service of a subpoena
or other legal process, volunteering to the Company all pertinent information and turning over to the Company all relevant documents which are or may come into Executive’s possession, all at times and on schedules that are reasonably consistent
with Executive’s other permitted activities and commitments). In the event the Company requires Executive’s reasonable assistance or cooperation in accordance with this Section 8, the REIT Operator shall reimburse Executive solely for
reasonable travel expenses (including lodging and meals) upon submission of receipts and for reasonable legal fees incurred by Executive to the extent Executive reasonably believes that independent counsel would be appropriate. Any such cooperation
shall take into account Executive’s personal and business commitments, and Executive shall not be required to cooperate against his legal interests or the legal interests of any subsequent employer. 

9.            Executive’s Representations. Executive
hereby represents and warrants to the Company that (a) the execution, delivery and performance of this Agreement by Executive does not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument,
order, judgment or decree to which Executive is a party or by which Executive is bound, (b) Executive is not a party to or bound by any employment agreement, non-compete agreement or confidentiality
agreement with any other person or entity and (c) upon the execution and delivery of this Agreement by the Company, this 

  
 18 

 
Agreement shall be the valid and binding obligation of Executive, enforceable in accordance with its terms. Executive hereby acknowledges and represents that Executive has consulted with
independent legal counsel regarding Executive’s rights and obligations under this Agreement and that Executive fully understands the terms and conditions contained herein. 

10.            [Reserved]  

11.            Insurance for Company’s Own Behalf. The
Company may, at its discretion, apply for and procure in its own name and for its own benefit life and/or disability insurance on Executive in any amount or amounts considered advisable. Executive agrees to cooperate in any medical or other
examination, supply any information and execute and deliver any applications or other instruments in writing as may be reasonably necessary to obtain and constitute such insurance. 

12.            Withholding. The REIT Operator shall be
entitled to deduct or withhold from any amounts owing from the Company to Executive any federal, state, local or foreign withholding taxes, excise tax, or employment taxes that it reasonably determines are required to be imposed with respect to
Executive’s compensation or other payments or benefits from the Company or Executive’s ownership interest in the Company (including wages, bonuses, the receipt or exercise of equity options and/or the receipt or vesting of restricted
equity). 
 13.            Survival. The rights and
obligations of the parties under this Agreement shall survive as provided herein or if necessary or desirable to accomplish the purposes of other surviving provisions following the termination of Executive’s employment with the Company,
regardless of the manner of or reasons for such termination. 

14.            Notices. All notices, requests and other
communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally against written receipt or mailed by prepaid first class certified mail, return receipt requested, or mailed by overnight courier
prepaid, to (a) Executive at the address on file with the Company, and (b) Company at the following address: 
  

					
	 Notices to the Company:        	  	800 Clinton Square
		  	Rochester, New York 14604
		  	Attn:	  	Chairman of the Board of Directors
		  		  	Chairman of the Governance Committee of the Board of Directors
		
	 Notices to Executive:	  	Address on file with the Company

 All such notices, requests and other communications will (i) if delivered personally to the address
as provided in this Section 14, be deemed given on the day so delivered, or, if delivered after 5:00 p.m. local time or on a day other than a Saturday, Sunday or any day on which banks located in the State of New York are authorized or
obligated to close (a “Business Day”), then on the next proceeding Business Day, (ii) if delivered by certified mail in the manner described above to the address as provided in this Section 14, be deemed given on the
earlier of the third Business Day following mailing or upon receipt and (iii) if delivered by overnight courier to the address as provided for in this Section 14, be deemed given on the earlier of the first Business Day following the date
sent by such overnight courier or upon receipt, in each case regardless of whether such notice, request or other communication is received by any other Person to whom a copy of such notice is to be delivered pursuant to this Section 14. Any
party hereto from time to time may change its address or other information for the purpose of notices to that party by giving notice specifying such change to the other party hereto. 

  
 19 

15.            Severability. Whenever possible, each
provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule
in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any action in any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as
if such invalid, illegal or unenforceable provision had never been contained herein. 

16.            Entire Agreement. This Agreement
constitutes the entire agreement among the parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the parties, including but not limited to the
Prior Agreement. For the avoidance of doubt, Executive shall not be eligible to participate in any severance plan or program during the Term of Employment to the extent such participation would result in a duplication of benefits. 

17.            No Strict Construction. The language used in
this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party. 

18.            Counterparts. This Agreement may be executed
in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement. 

19.            Successors and Assigns. This Agreement is
intended to bind and inure to the benefit of and be enforceable by Executive, the Company and their respective heirs, successors and assigns, except that Executive may not assign Executive’s rights or delegate Executive’s duties or
obligations hereunder without the prior written consent of the Company. The Company may only assign this Agreement to a successor to all or substantially all of the business and/or assets of the Company. As used in this Agreement,
“Company” shall mean the Company and any successor to its business and/or assets, which assumes and agrees to perform the duties and obligations of the Company under this Agreement by operation of law or otherwise. 

20.            Choice of Law. All issues and questions
concerning the construction, validity, enforcement and interpretation of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of New York, without giving effect to any choice-of-law or conflict-of-law rules or provisions (whether of the State of New York or any
other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of New York. 

21.            Amendment and Waiver. The provisions of this
Agreement may be amended or waived only with the prior written consent of the Company (as approved by the Board) and Executive, and no course of conduct or course of dealing or failure or delay by any party hereto in enforcing or exercising any of
the provisions of this Agreement (including the Company’s right to terminate the Term of Employment for Cause) shall affect the validity, binding effect or enforceability of this Agreement or be deemed to be an implied waiver of any provision
of this Agreement. 
 22.            Consent to
Jurisdiction. EACH OF THE PARTIES IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY
RELATED AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. EACH OF THE PARTIES HERETO FURTHER AGREES THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY U.S. REGISTERED MAIL, RETURN RECEIPT REQUESTED, TO SUCH PARTY’S
RESPECTIVE ADDRESS SET FORTH ABOVE SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR PROCEEDING IN THE STATE OF NEW YORK WITH RESPECT TO ANY MATTERS TO WHICH IT HAS SUBMITTED TO JURISDICTION IN THIS SECTION 22. EACH OF THE PARTIES HERETO

  
 20 

 
IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY AND THEREBY IN THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF NEW YORK, AND HEREBY AND THEREBY FURTHER IRREVOCABLY AND UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR PROCEEDING
BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
 23.    Waiver of Jury
Trial. AS A SPECIFICALLY BARGAINED-FOR INDUCEMENT FOR EACH OF THE PARTIES HERETO TO ENTER INTO THIS AGREEMENT (AFTER HAVING THE OPPORTUNITY TO CONSULT WITH COUNSEL), EACH PARTY HERETO EXPRESSLY WAIVES THE
RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY. 

24.            Section 409A. 

(a)            Interpretation. Notwithstanding the other
provisions hereof, this Agreement is intended to comply with the requirements of Section 409A of the Code and regulations thereunder (“Section 409A”) or any exemption thereunder, to the extent applicable, and
this Agreement shall be interpreted accordingly. If necessary, any provisions of this Agreement that would otherwise violate Section 409A shall be amended by the parties to comply with Section 409A; provided, that, such amendment shall
endeavor to maintain the economic benefits of this Agreement. For purposes of Section 409A, each payment made under this Agreement shall be treated as a separate payment. In no event may Executive, directly or indirectly, designate the calendar
year of any payment that constitutes deferred compensation for purposes of Section 409A. To the extent any payment or benefit provided under Section 4 is contingent upon Executive’s execution of the general release of claims described
in Section 4(d)(ii), if such payment or benefit constitutes deferred compensation for purposes of Section 409A and the 60-day period described in Section 4(d)(ii) spans calendar years, such
payment and/or benefit shall be paid or commence, as applicable, in the latter calendar year. Executive will be deemed to have a termination of employment for purposes of determining the timing of any payments or benefits hereunder that constitute
deferred compensation for purposes of Section 409A only upon a “separation from service” within the meaning of Section 409A. 

(b)            Payment Delay. Notwithstanding any
provision to the contrary in this Agreement, if on the date of Executive’s termination of employment, Executive is a “specified employee” (as such term is used in Section 409A), then any amounts payable to Executive that
constitute deferred compensation for purposes of Section 409A that are payable due to Executive’s termination of employment shall be postponed and paid (without interest) to Executive in a lump sum on the date that is six (6) months
and one (1) day following Executive’s “separation from service” with the Company (or any successor thereto); provided, however, that if Executive dies during such six-month period
and prior to payment of the postponed cash amounts hereunder, the amounts delayed on account of Section 409A shall be paid to the personal representative of Executive’s estate on the sixtieth (60th) day after Executive’s death. 

(c)            Reimbursements. If Executive is entitled to
be paid or reimbursed for any taxable expenses under this Agreement, and such payments or reimbursements are includible in Executive’s federal gross taxable income, the amount of such expenses reimbursable in any one calendar year shall not
affect the amount reimbursable in any other calendar year, and the reimbursement of an eligible expense must be made no later than December 31 of the year after the year in which the expense was

  
 21 

 
incurred. No right of Executive to reimbursement of expenses under this Agreement shall be subject to liquidation or exchange for another benefit. 

[Signatures on following page] 

  
 22 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed by their respective officers or agents hereunto duly authorized, all as of the Effective Date. 
  

							
	BROADSTONE NET LEASE, INC.
		
	By:    	 	/s/ John D. Moragne                      
		 	John D. Moragne
	Its:	 	Executive Vice President and Chief Operating Officer
	
	BROADSTONE NET LEASE, LLC
		
	By:	 	Broadstone Net Lease, Inc.
	Its:	 	Managing Member
			
		 	By:	 	/s/ John D. Moragne                    
		 		 	John D. Moragne
		 	Its:	 	Executive Vice President and Chief Operating Officer
	
	BROADSTONE EMPLOYEE SUB, LLC
		
	By:	 	Broadstone Net Lease, LLC
	Its:	 	Manager
			
		 	By:    	 	Broadstone Net Lease, Inc.
		 	Its:	 	Managing Member
				
		 		 	By:    	 	/s/ John D. Moragne                    
		 		 		 	John D. Moragne
		 		 	Its:	 	Executive Vice President and Chief Operating Officer

  

	
	EXECUTIVE
	
	/s/ Christopher J. Czarnecki                    
	Christopher J. Czarnecki

  
 [Signature Page to
Amended and Restated Employment Agreement]

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