Document:

Exhibit 10.42

 

GLOBAL NET LEASE, INC.

 

AMENDED AND RESTATED

 

2015 ADVISOR MULTI-YEAR OUTPERFORMANCE
AGREEMENT

 

This AMENDED AND RESTATED
2015 ADVISOR MULTI-YEAR OUTPERFORMANCE AGREEMENT (this “Agreement”) made as of August 7, 2015 (the “Grant
Date”), by and among GLOBAL NET LEASE INC., a Maryland corporation (the “Company”), its subsidiary
GLOBAL NET LEASE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership and the entity through which the Company conducts
substantially all of its operations (the “Partnership”), and GLOBAL NET LEASE ADVISORS, LLC, a Delaware limited
liability company, the Company’s manager (the “Advisor”).

 

RECITALS

 

The Advisor provides
services to the Company pursuant to the Amended and Restated Advisory Agreement by and among the Company, the Partnership and the
Advisor, dated as of November 7, 2012, as amended from time to time.

 

The Board of Directors
of the Company (the “Board”), or a committee of the Board designated by the Board, approved this Agreement to
provide the Advisor with the incentive compensation described in this Agreement (the “Award”) and thereby provide
additional incentive for the Advisor to promote the progress and success of the business of the Company and its affiliates, including
the Partnership. This Agreement evidences the Award and is subject to the terms and conditions set forth herein and in the Partnership
Agreement (as defined herein).

 

NOW, THEREFORE, the
Company, the Partnership and the Advisor agree as follows:

 

1.Administration.
The Award granted under this Agreement shall be administered by a Committee appointed by the Board from time to time to administer
the Plan (the “Committee”); provided that all powers of the Committee hereunder can be exercised by the
full Board if the Board so elects. To the extent that no Committee exists that has the authority to administer this Agreement,
the functions of the Committee shall be exercised by the Board and the Board shall be considered the “Committee” hereunder.
The Committee shall have the discretionary authority to make all determinations regarding the Award, including, without limitation,
the interpretation and construction of the Award and the determination of relevant facts; provided such determinations are
made in good faith and are consistent with the purpose and intent of the Award. Except as expressly provided herein, no such action
by the Committee shall adversely affect the rights of the Advisor to any earned and outstanding Award LTIP Units (as defined below).
Subject to the terms hereof, all decisions made by the Committee shall be final, conclusive and binding on all persons, including
the Company, the Partnership and the Advisor. No member of the Committee, nor any other member of the Board or any officer or employee
of the Company acting on behalf of the Committee, shall be personally liable for any action, determination or interpretation taken
or made in good faith with respect to the Award, and all members of the Committee and each other member of the Board and any officer
or employee of the Company acting on their behalf shall, to the extent permitted by law, be fully indemnified and protected by
the Company in respect of any such action, determination or interpretation.

 

     

     

    

 

2.Definitions.
The definitions for certain terms used herein are set forth in Exhibit A.

 

3.Outperformance
Award.

 

a.On June 2, 2015
(the “Grant Date”) the Advisor was granted the Award, consisting of 9,041,801 LTIP Units (the “Award
LTIP Units”), which will be subject to forfeiture and vesting to the extent provided in this Section 3 and
Section 4 hereof.

 

b.As soon as practicable
following each Valuation Date, but as of such Valuation Date, the Committee will determine the applicable Annual Amount and divide
the resulting dollar amount by the Common Stock Price calculated as of the applicable Valuation Date (appropriately adjusted to
the extent that the Conversion Factor is greater or less than 1.0); the resulting number of unit equivalents determined for each
Valuation Date referred to herein as the “Annual OPP Unit Equivalent”.

 

c.As soon as practicable
following the Second Valuation Date, but as of the Second Valuation Date, the Committee will determine the Interim Amount and divide
the resulting dollar amount by the Common Stock Price calculated as of the Second Valuation Date (appropriately adjusted to the
extent that the Conversion Factor is greater or less than 1.0); the resulting number of unit equivalents determined as of the Second
Valuation Date referred to herein as the “Interim OPP Unit Equivalent”.

 

d.As soon as practicable
following the Final Valuation Date, but as of the Final Valuation Date, the Committee will:

 

(i)determine the
Final Absolute TRS Amount;

 

(ii)determine the
Final Relative TRS Amount;

 

(iii)determine the
Total Outperformance Amount; and

 

(iv)divide the resulting
dollar amounts by the Common Stock Price calculated as of the Final Valuation Date (appropriately adjusted to the extent that the
Conversion Factor is greater or less than 1.0); the resulting number of unit equivalents determined as of the Final Valuation Date
referred to herein as the “Final OPP Unit Equivalent.”

 

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If the Total OPP Unit Equivalent is smaller
than the number of Award LTIP Units previously issued to the Advisor, as of the Final Valuation Date, the Advisor shall forfeit
the number of Award LTIP Units equal to the difference without payment of any consideration by the Partnership or the Company;
thereafter the term Award LTIP Units will refer only to the Award LTIP Units that were not so forfeited and neither the Advisor
nor any of its successors, members or their respective assigns or personal representatives will have any further rights or interests
in the Award LTIP Units that were so forfeited. If the Total OPP Unit Equivalent is greater than the number of Award LTIP Units
previously issued to the Advisor: (A) the Company shall cause the Partnership to issue to the Advisor, as of the Final Valuation
Date, a number of additional LTIP Units equal to the difference; (B) such additional LTIP Units shall be added to the Award LTIP
Units previously issued, if any, and thereby become part of this Award; and (C) the Company and the Partnership shall take such
action as is necessary to accomplish the grant of such additional LTIP Units; provided that such issuance will be subject
to the Advisor executing and delivering such documents, comparable to the documents executed and delivered in connection with this
Agreement, as the Company and/or the Partnership reasonably request in order to comply with all applicable legal requirements,
including, without limitation, federal and state securities laws. If the Total OPP Unit Equivalent is the same as the number of
Award LTIP Units previously issued to the Advisor, then there will be no change to the number of Award LTIP Units under this Award.

 

e.If any of the
Award LTIP Units have been earned based on performance as provided in Sections 3(b), (c) and (d), subject to Section
4 hereof, the Award LTIP Units shall become vested in the following amounts and at the following times, provided that the Continuous
Service of the Advisor must continue through the applicable vesting date:

 

(i)one-third (1/3)
on June 2, 2018;

 

(ii)one-third (1/3)
on June 2, 2019; and

 

(iii)one-third (1/3)
on June 2, 2020.

 

f.Within thirty
(30) days following each vesting date under Section 3(e), the Advisor, in its sole discretion, shall be entitled to
convert such Award LTIP Units that vested on such date into OP Units in accordance with the terms of the Partnership Agreement.

 

g.Any Award LTIP
Units that do not become vested pursuant to Section 3(e) or Section 4 hereof shall, without payment of any consideration
by the Partnership or the Company automatically and without notice be forfeited and be and become null and void, and neither the
Advisor nor any of its successors, heirs, assigns, members or their respective assigns or personal representatives will thereafter
have any further rights or interests in such forfeited Award LTIP Units.

 

4.Termination/Change
of Control.

 

a.In the event
the Company terminates the Advisor’s Continuous Service for any reason prior to the Final Valuation Date, the calculations
provided in Sections 3(b), (c) and (d) hereof shall be performed as of the Valuation Date next following such termination (and
if such Valuation Date is not the Final Valuation Date, on the Final Valuation Date as well) as if the termination of Continuous
Service had not occurred and the Advisor shall be fully (100%) vested in the Total OPP Unit Equivalent as so determined. Within
thirty (30) days of the date such calculations are completed, the Advisor, in its sole discretion, shall be entitled to convert
the Total OPP Unit Equivalent so determined into OP Units in accordance with the terms of the Partnership Agreement.

 

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b.In the event
the Company terminates the Advisor’s Continuous Service for any reason after the Final Valuation Date, any then unvested
Award LTIP Units shall be fully (100%) vested and non-forfeitable hereunder. Within thirty (30) days of the date such termination,
the Advisor, in its sole discretion, shall be entitled to convert such Award LTIP Units into OP Units in accordance with the terms
of the Partnership Agreement.

 

c.In the event
of a Change in Control prior to the Final Valuation Date, (i) the Advisor shall become fully (100%) vested in any Award LTIP Units
that had been earned but were unvested prior to the Change in Control and within thirty (30) days of the date such Change in Control,
the Advisor, in its sole discretion, shall be entitled to convert such Earned Annual and Interim OPP Units into OP Units or common
stock in accordance with the terms of the Partnership Agreement; and (ii) the calculations provided in Sections 3(b), (c) and (d)
hereof shall be performed as of the Valuation Date next following such Change in Control (and if such Valuation Date is not the
Final Valuation Date, on the Final Valuation Date as well) and the Advisor shall be fully (100%) vested in the Total OPP Unit Equivalent
as so determined and within thirty (30) days of the date such calculations are completed, the Advisor, in its sole discretion,
shall be entitled to convert the number of Award LTIP Units so determined into OP Units in accordance with the terms of the Partnership
Agreement.

 

d.In the event
of a Change in Control after the Final Valuation Date, subject to the Continuous Service of the Advisor through the date of such
Change in Control, any then unvested Award LTIP Units shall be fully (100%) vested and non-forfeitable hereunder. Within thirty
(30) days of the date such Change in Control, the Advisor, in its sole discretion, shall be entitled to convert such Award LTIP
Units into OP Units in accordance with the terms of the Partnership Agreement.

 

5.Rights of Advisor.
The Advisor shall have no rights with respect to this Agreement (and the Award evidenced hereby) unless the Advisor shall have
accepted this Agreement prior to the close of business on the Effective Date by signing and delivering to the Partnership a copy
of this Agreement. Upon acceptance of this Agreement by the Advisor, the Partnership Agreement shall be amended to reflect the
issuance to the Advisor of the Award LTIP Units so accepted. Thereupon, the Advisor shall have all the rights of a Limited Partner
of the Partnership with respect to the Award LTIP Units, as set forth in the Partnership Agreement, subject, however, to the restrictions
and conditions specified herein. Award LTIP Units constitute and shall be treated for all purposes as the property of the Advisor,
subject to the terms of this Agreement and the Partnership Agreement.

 

6.Distributions.

 

a.The Advisor shall
be entitled to receive distributions with respect to the Award LTIP Units to the extent provided for in the Partnership Agreement.

 

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b.The LTIP Unit
Distribution Participation Date (as defined in the Partnership Agreement) with respect to any Award LTIP Unit shall be the date
as of which such Award LTIP Unit is earned pursuant to Sections 3(b), (c) and (d), and as of such date, the Advisor will
be entitled, for each Award LTIP Unit earned, to a priority distribution from the Partnership in cash equal to the difference of
(i) the quotient of (A) the per unit amount of all distributions paid with respect to each OP Unit on or after the Effective Date
and before the date on which such Award LTIP Unit is earned (other than those with respect to which an adjustment was made pursuant
to Section 8 hereof) divided by (B) the Conversion Factor minus (ii) any amounts previously distributed by the Partnership
with respect to such Award LTIP Unit.

 

c.All distributions
paid with respect to Award LTIP Units shall be fully vested and non-forfeitable when paid, whether or not the underlying LTIP Units
have been earned based on performance or have become vested based on the passage of time as provided in Section 3 or Section
4 hereof.

 

7.Restrictions
on Transfer. Except as otherwise permitted by the Committee in its sole discretion, none of the Award LTIP Units granted hereunder
nor any of the OP Units of the Partnership into which such Award LTIP Units may be converted (the “Award OP Units”)
shall be sold, assigned, transferred, pledged, hypothecated, given away or in any other manner disposed of, encumbered, whether
voluntarily or by operation of law (each such action a “Transfer”). The transferee in any Transfers of
Award LTIP Units or Award OP Units permitted by the Committee must agree in writing with the Company and the Partnership to be
bound by all the terms and conditions of this Agreement and that subsequent transfers shall be prohibited except those in accordance
with this Section 7. Additionally, all Transfers of Award LTIP Units or Award OP Units must be in compliance with all applicable
securities laws (including, without limitation, the Securities Act) and the applicable terms and conditions of the Partnership
Agreement. In connection with any Transfer of Award LTIP Units or Award OP Units, the Partnership may require the Advisor to provide
an opinion of counsel, satisfactory to the Partnership, that such Transfer is in compliance with all federal and state securities
laws (including, without limitation, the Securities Act). Any attempted Transfer of Award LTIP Units or Award OP Units not in accordance
with the terms and conditions of this Section 7 shall be null and void, and the Partnership shall not reflect on its records
any change in record ownership of any Award LTIP Units or Award OP Units as a result of any such Transfer, shall otherwise refuse
to recognize any such Transfer and shall not in any way give effect to any such Transfer of any Award LTIP Units or Award OP Units.
Except as provided in this Section 7, this Agreement is personal to the Advisor, is non-assignable and is not transferable
in any manner, by operation of law or otherwise.

 

8.Changes in Capital
Structure. If (i) the Company shall at any time be involved in a merger, consolidation, dissolution, liquidation, reorganization,
exchange of shares, sale of all or substantially all of the assets or stock of the Company or other transaction similar thereto,
(ii) any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split, significant repurchases
of stock, or other similar change in the capital stock of the Company, (iii) any cash dividend or other distribution to holders
of share of Common Stock or OP Units shall be declared and paid other than in the ordinary course, or (iv) any other extraordinary
corporate event shall occur that in each case in the good faith judgment of the Committee necessitates action by way of equitable
or proportionate adjustment in the terms of this Agreement or the Award LTIP Units to avoid distortion in the value of this Award,
the Committee shall make equitable or proportionate adjustment and take such other action as it deems necessary to maintain the
Advisor’s rights hereunder so that they are substantially proportionate to the rights existing under this Award and the terms
of the Award LTIP Units prior to such event, including, without limitation: (A) interpretations of or modifications to any defined
term in this Agreement; (B) adjustments in any calculations provided for in this Agreement, and (C) substitution of other awards.
All adjustments made by the Committee shall be final, binding and conclusive.

 

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9.Miscellaneous.

 

a.Amendments.
This Agreement may be amended or modified only with the consent of the Company and the Partnership acting through the Committee;
provided that any such amendment or modification that adversely affects the rights of the Advisor hereunder must be consented
to by the Advisor to be effective as against it. Notwithstanding the foregoing, this Agreement may be amended in writing signed
only by the Company and the Partnership to correct any errors or ambiguities in this Agreement and/or to make such changes that
do not adversely affect the Advisor’s rights hereunder.

 

b.Legend.
The records of the Partnership evidencing the Award LTIP Units shall bear an appropriate legend, as determined by the Partnership
in its sole discretion, to the effect that such Award LTIP Units are subject to restrictions as set forth herein and in the Partnership
Agreement.

 

c.Compliance
With Law. The Partnership and the Advisor will make reasonable efforts to comply with all applicable securities laws. In addition,
notwithstanding any provision of this Agreement to the contrary, no Award LTIP Units will become vested or be paid at a time that
such vesting or payment would result in a violation of any such law.

 

d.Advisor Representations;
Registration.

 

(i)The Advisor hereby
represents and warrants that (A) it understands that it is responsible for consulting its own tax advisor with respect to the application
of the U.S. federal income tax laws, and the tax laws of any state, local or other taxing jurisdiction to which the Advisor is
or by reason of this Award may become subject, to its particular situation; (B) the Advisor has not received or relied upon business
or tax advice from the Company, the Partnership or any of their respective Affiliates (as defined in the Partnership Agreement),
employees, agents, consultants or advisors, in their capacity as such; (C) the Advisor provides services to the Partnership on
a regular basis and in such capacity has access to such information, and has such experience of and involvement in the business
and operations of the Partnership, as the Advisor believes to be necessary and appropriate to make an informed decision to accept
this Award; (D) Award LTIP Units are subject to substantial risks; (E) the Advisor has been furnished with, and has reviewed and
understands, information relating to this Award; (F) the Advisor has been afforded the opportunity to obtain such additional information
as it deemed necessary before accepting this Award; and (G) the Advisor has had an opportunity to ask questions of representatives
of the Partnership and the Company, or persons acting on their behalf, concerning this Award.

 

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(ii)The Advisor hereby
acknowledges that: (A) there is no public market for Award LTIP Units or Award OP Units and neither the Partnership nor the Company
has any obligation or intention to create such a market; (B) sales of Award LTIP Units and Award OP Units are subject to restrictions
under the Securities Act and applicable state securities laws; and (C) because of the restrictions on transfer or assignment of
Award LTIP Units and Award OP Units set forth in the Partnership Agreement and in this Agreement, the Advisor may have to bear
the economic risk of its ownership of the Award LTIP Units covered by this Award for an indefinite period of time.

 

e.Section 83(b)
Election. In connection with each separate issuance of LTIP Units under this Award pursuant to Section 3 hereof, the
Advisor may elect to include in gross income in the year of transfer the applicable Award LTIP Units pursuant to Section 83 (b) of
the Code substantially in the form attached hereto as Exhibit B and to supply the necessary information in accordance with
the regulations promulgated thereunder. The Advisor agrees to file such election (or to permit the Partnership to file such election
on the Advisor’s behalf) within thirty (30) days after the Grant Date with the IRS Service Center where the Advisor files
its personal income tax returns, provide a copy of such election to the Partnership and the Company, and to file a copy of such
election with the Advisor’s U.S. federal income tax return for the taxable year in which the LTIP Units are awarded to the
Advisor. So long as the Advisor holds any Award LTIP Units, the Advisor shall disclose to the Partnership in writing such information
as may be reasonably requested with respect to ownership of LTIP Units as the Partnership may deem reasonably necessary to ascertain
and to establish compliance with provisions of the Code applicable to the Partnership or to comply with requirements of any other
appropriate taxing authority.

 

f.Severability.
If, for any reason, any provision of this Agreement is held invalid, such invalidity shall not affect any other provision of this
Agreement not so held invalid, and each such other provision shall to the full extent consistent with law continue in full force
and effect. If any provision of this Agreement shall be held invalid in part, such invalidity shall in no way affect the rest of
such provision not held so invalid, and the rest of such provision, together with all other provisions of this Agreement, shall
to the full extent consistent with law continue in full force and effect.

 

g.Governing
Law. This Agreement is made under, and will be construed in accordance with, the laws of State of Delaware, without giving
effect to the principles of conflict of laws of such state.

 

h.No Obligation
to Continue Service as a Consultant or Advisor. Neither the Company nor any affiliate is obligated by or as a result of this
Agreement to continue to have the Advisor as a consultant, advisor or other service provider and this Agreement shall not interfere
in any way with the right of the Company or any affiliate to terminate the Advisor’s service relationship at any time.

 

i.Notices.
Any notice to be given to the Company shall be addressed to the Secretary of the Company at 405 Park Avenue, 14 Floor, New York,
New York, 10022, and any notice to be given the Advisor shall be addressed to the Advisor at the Advisor’s address as it
appears on the records of the Company, or at such other address as the Company or the Advisor may hereafter designate in writing
to the other.

 

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j.Withholding
and Taxes. The Advisor shall be solely responsible for all federal, state, local, foreign, or other taxes or any taxes under
the Federal Insurance Contributions Act with respect to this Award. Notwithstanding the foregoing, if at any time the Company or
Partnership are required to withhold any such taxes, the Advisor shall make arrangements satisfactory to the Committee regarding
the payment of any United States federal, state, local, foreign, or other taxes required by law to be withheld with respect to
such amount; provided, however, that if any Award LTIP Units or Award OP Units are withheld (or returned), the number
of Award LTIP Units or Award OP Units so withheld (or returned) shall be limited to the number which have a fair market value on
the date of withholding equal to the aggregate amount of such liabilities based on the minimum statutory withholding rates for
federal, state, local and foreign income tax and payroll tax purposes that are applicable to such supplemental taxable income.
The obligations of the Company under this Agreement will be conditional on such payment or arrangements, and the Company and its
affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to the
Advisor.

 

k.Headings.
The headings of paragraphs hereof are included solely for convenience of reference and shall not control the meaning or interpretation
of any of the provisions of this Agreement.

 

l.Counterparts.
This Agreement may be executed in multiple counterparts with the same effect as if each of the signing parties had signed the same
document. All counterparts shall be construed together and constitute the same instrument.

 

m.Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and any successors to the
Company and the Partnership, on the one hand, and any successors to the Advisor, on the other hand, by will or the laws of descent
and distribution, but this Agreement shall not otherwise be assignable or otherwise subject to hypothecation by the Advisor.

 

n.Section 409A.
This Agreement shall be construed, administered and interpreted in accordance with a good faith interpretation of Section 409A
of the Code. Any provision of this Agreement that is inconsistent with Section 409A of the Code, or that may result in penalties
under Section 409A of the Code, shall be amended, with the reasonable cooperation of the Advisor and the Company and the Partnership,
to the extent necessary to exempt it from, or bring it into compliance with, Section 409A of the Code.

 

[Signature page follows]

 

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

 

	 	GLOBAL NET LEASE, INC.
	 	 
	 	 
	 	By: /s/ Scott J. Bowman
	 	      Name: Scott J. Bowman
	 	      Title: Chief Executive Officer
	 	 
	 	 
	 	GLOBAL NET LEASE OPERATING PARTNERSHIP, L.P.
	 	 
	 	By: Global Net Lease, Inc., its general partner
	 	 
	 	 
	 	By:/s/ Scott J. Bowman
	 	      Name: Scott J. Bowman
	 	      Title: Chief Executive Officer
	 	 
	 	 
	 	GLOBAL NET LEASE ADVISORS, LLC
	 	 
	 	By: GLOBAL NET LEASE SPECIAL
	 	       LIMITED PARTNER, LLC, its member
	 	 
	 	By: AR CAPITAL GLOBAL HOLDINGS, LLC, its member
	 	 
	 	By: AR CAPITAL, LLC, its member
	 	 
	 	By: /s/ William M. Kahane
	      	      Name: William M. Kahane
	      	      Title: Manager

 

 

 

 

 

 

 

[Signature Page to Outerperformance Award
Agreement]

 

     

     

    

 

EXHIBIT A

DEFINITIONS

 

“Additional
Shares” means (without double-counting), as of a particular date of determination, the sum of (A) the number of shares
of Common Stock plus (B) the REIT Shares Amount for all Partnership Units (assuming that such Partnership Units were converted,
exercised, exchanged or redeemed for OP Units as of such date of determination at the applicable conversion, exercise, exchange
or redemption rate (or rate deemed applicable by the Committee if there is no such stated rate) and such OP Units were then tendered
to the Partnership for redemption pursuant to the Partnership Agreement as of such date) other than those Partnership Units held
by the Company, in the case of each (A) and (B), to the extent issued after the Effective Date and on or before such date of determination
in a capital raising transaction, in exchange for assets or securities, or upon the acquisition of another entity; provided,
that for the avoidance of doubt, this definition of “Additional Shares” shall exclude: (i) shares of Common Stock issued
after the Effective Date upon exercise of stock options or upon the exchange (directly or indirectly) of LTIP Units or other Partnership
Units issued to employees, non-employee directors, consultants, advisors or other persons or entities as incentive or other compensation,
(ii) shares of Common Stock awarded after the Effective Date to employees or other persons or entities in exchange for services
provided or to be provided to the Company or any of its affiliates, and (iii) all Initial Shares.

 

“Adjusted
Market Cap” means (A) the Company’s Initial Market Cap less an amount equal to the total number of Buyback
Shares bought back during the measurement period multiplied by $9.50 with respect to the calculation of (i) the Annual Amount on
the First Valuation Date, (ii) the Interim Amount, (iii) the Final Absolute TRS Amount and (iv) the Final Relative TRS Amount,
and (B) the Total Shares as of the prior Valuation Date less any Buyback Shares bought back during the measurement period multiplied
by the spot closing stock price on the prior Valuation Date, with respect to the calculation of the Annual Amount on the Second
Valuation Date and the Final Valuation Date.

 

“Annual Absolute
TRS” means, as of each Valuation Date, a dollar amount equal to four percent (4%) of the dollar amount by which,
if any, the amount of the Company’s Total Return, determined as of such date, exceeds the Threshold Amount, determined as
of such date.

 

“Annual Amount”
means, as of a Valuation Date, an amount equal to up to one and one quarter percent (1.25%) of the Company’s Initial
Market Cap based on the level of achievement of Annual Absolute TRS and Annual Relative TRS as of such Valuation Date for the period
commencing on (A) the Effective Date with respect to the First Valuation Date and (B) the prior Valuation Date with respect to
the Second Valuation Date and the Final Valuation Date.

 

    	 	Exhibit A - 1	 

     

    

 

“Annual Relative
TRS” means, as of each Valuation Date, a dollar amount equal to four percent (4%) of any amount by which the Company’s
Total Return for the period commencing on (A) the Effective Date with respect to the First Valuation Date and (B) the prior Valuation
Date with respect to the Second Valuation Date and the Final Valuation Date, exceeds the Relative Threshold Amount as of such date;
provided, that the amount so earned will be subject to reduction in accordance with a ratable sliding scale factor so that
(A) if the Company’s TRS Percentage for the applicable period is six percent (6%) or more, there will be no reduction to
Annual Relative TRS for such period; (B) Annual Relative TRS for such period shall be reduced by fifty percent (50%) if such TRS
Percentage for the applicable period is zero percent (0%); (C) Annual Relative TRS for such period shall be reduced based on a
linear interpolation between the foregoing reduction factors if the Company’s TRS Percentage for the applicable period is
between zero percent (0%) and six percent (6%) (e.g., if the Company achieved a TRS Percentage of three percent (3%), the
value of any award would be reduced by a factor of twenty-five percent (25%)); and (D) Annual Relative TRS for such period shall
be reduced by one hundred percent (100%) if the TRS Percentage for the applicable period is below zero percent (0%).

 

“Award OP
Units” has the meaning set forth in Section 7 hereof.

 

“Award LTIP
Units” has the meaning set forth in Section 3(a) hereof.

 

“Beneficial
Owner” has the meaning set forth in Rule 13d-3 under the Exchange Act.

 

“Buyback
Shares” means (without double-counting), as of a particular date of determination, (A) shares of Common Stock or
(B) the REIT Shares Amount for Partnership Units (assuming that such Partnership Units were converted, exercised, exchanged or
redeemed for OP Units as of such date of determination at the applicable conversion, exercise, exchange or redemption rate (or
rate deemed applicable by the Committee if there is no such stated rate) and such OP Units were then tendered to the Partnership
for redemption pursuant to the Partnership Agreement as of such date), other than those Partnership Units held by the Company,
in the case of each (A) and (B), to the extent repurchased by the Company after the Effective Date and on or before such date of
determination in a stock buyback transaction or in a redemption of Partnership Units for cash pursuant to the Partnership Agreement;
provided, that for the avoidance of doubt, this definition of “Buyback Shares” shall exclude: (i) shares of
Common Stock issued after the Effective Date upon exercise of stock options or upon the exchange (directly or indirectly) of LTIP
Units or other Partnership Units issued to employees, non-employee directors, consultants, advisors or other persons or entities
as incentive or other compensation, and (ii) shares of Common Stock awarded after the Effective Date to employees or other persons
or entities in exchange for services provided or to be provided to the Company or any of its affiliates.

 

“Change of
Control” means and includes any of the following events:

 

(i)any Person is
or becomes Beneficial Owner, directly or indirectly, of securities of the Company representing thirty percent (30%) or more of
the combined voting power of the then outstanding securities of the Company, excluding (A) any Person who becomes such a Beneficial
Owner in connection with a transaction described in clause (x) of subsection (ii) below and (B) any Person who becomes such a Beneficial
Owner through the issuance of such securities with respect to purchases made directly from the Company; or

 

    	 	Exhibit A - 2	 

     

    

 

(ii)the consummation
of a merger or consolidation of the Company with any other Person or the issuance of voting securities of the Company in connection
with a merger or consolidation of the Company (or any direct or indirect subsidiary of the Company) pursuant to applicable stock
exchange requirements, other than (x) a merger or consolidation which would result in the voting securities of the Company outstanding
immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or any parent thereof) seventy percent (70%) or more of the combined voting power
of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation,
or (y) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person
is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing thirty percent (30%) or more
of the combined voting power of the then outstanding securities of the Company; or

 

(iii)the consummation
of a sale or disposition by the Company of all or substantially all of the assets of the Company; or

 

(iv)persons who,
as of the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason, including,
without limitation, as a result of a tender offer, proxy contest, merger or similar transaction, to constitute at least a majority
of the Board; provided that any person becoming a director of the Company subsequent to such date shall be considered an
Incumbent Director if such person’s election was approved by or such person was nominated for election a vote of at least
a majority of the Incumbent Directors.

 

Notwithstanding the foregoing, with respect
to any payment that is triggered upon a Change in Control, a transaction shall not be deemed to be a Change in Control unless such
transaction constitutes a “change in control event” within the meaning of Section 409A of the Code.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Common Stock”
means the Company’s common stock, par value $0.01 per share, either currently existing or authorized hereafter.

 

“Common Stock
Price” means, as of the Effective Date, $9.50 and, as of any other date, the average of the Fair Market Value of
one share of Common Stock over the fifteen (15) consecutive trading days ending on, and including, such date (or, if such date
is not a trading day, the most recent trading day immediately preceding such date); provided, however, that if such
date is the date upon which a Transactional Change of Control occurs, the Common Stock Price as of such date shall be equal to
the fair value, as determined by the Committee, of the total consideration paid or payable in the transaction resulting in the
Transactional Change of Control for one share of Common Stock.

 

“Continuous
Service” means the Advisor’s continuous service as manager of the Company without interruption or termination.

 

“Conversion
Factor” has the meaning set forth in the Partnership Agreement.

 

“Effective
Date” means June 2, 2015.

 

    	 	Exhibit A - 3	 

     

    

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair Market
Value” means, as of any given date, the fair market value of a security determined by the Committee using any reasonable
method and in good faith (such determination will be made in a manner that satisfies Section 409A of the Code and in good-faith
as required by Section 422(c)(1) of the Code); provided that (A) if such security is admitted to trading on a national securities
exchange, the fair market value of such security on any date shall be the closing sale price reported for such security on the
principal stock exchange or, if applicable, any other national exchange on which the security is traded or admitted to trading
on such date on which a sale was reported; and (B) if such security is admitted to quotation on the National Association of Securities
Dealers Automated Quotation System (“NASDAQ”) or a successor quotation system, the fair market value of such
security on any such date shall be the average of the highest bid and lowest asked prices for such security on the system on such
date on which both the bid and asked prices were reported.

 

“Final Absolute
TRS Amount” means, as of the Final Valuation Date, a dollar amount equal to four percent (4%) of the dollar amount
by which, if any, the amount of the Company’s Total Return, determined as of such date, exceeds the Threshold Amount, determined
as of such date.

 

“Final Relative
TRS Amount” means, as of the Final Valuation Date, a dollar amount equal to four percent (4%) of any amount by which
the Company’s Total Return for the period commencing on the Effective Date through the Final Valuation Date exceeds the Relative
Threshold Amount as of such date; provided, that the amount so earned will be subject to reduction in accordance with a
ratable sliding scale factor so that (A) if the Company’s TRS Percentage for the period commencing on the Effective Date
through the Final Valuation Date is eighteen percent (18%) or more, there will be no reduction to the Final Relative TRS Amount;
(B) the Final Relative TRS Amount shall be reduced by fifty percent (50%) if such TRS Percentage is zero percent (0%); (C) the
Final Relative TRS Amount shall be reduced based on a linear interpolation between the foregoing reduction factors if the Company’s
TRS Percentage is between zero percent (0%) and eighteen percent (18%) (e.g., if the Company achieved a TRS Percentage of
nine percent (9%), the value of any award would be reduced by a factor of twenty-five percent (25%)); and (D) the Final Relative
TRS Amount shall be reduced by one hundred percent (100%) if such TRS Percentage is below zero percent (0%).

 

“Final Valuation
Date” means June 2, 2018.

 

“First Valuation
Date” means June 2, 2016.

 

“Initial
Market Cap” means (A) $9.50 multiplied by (B) the number of Initial Shares outstanding on the Effective Date.

 

    	 	Exhibit A - 4	 

     

    

 

“Initial
Shares” means the sum of: (A) all shares of Common Stock outstanding as of the applicable date (including any vested
and nonvested restricted shares of Common Stock issued under any other incentive plan maintained by the Company prior to the applicable
date), plus (B) any shares of Common Stock representing the REIT Shares Amount for all Partnership Units outstanding as
of the applicable date (assuming such Partnership Units were converted, exercised, exchange or redeemed for OP Units as of the
applicable date at the applicable conversion, exercise, exchange or redemption rate (or rate deemed applicable by the Committee
if there is no such stated rate) and such OP Units were then tendered to the Partnership for redemption pursuant to the Partnership
Agreement as of such date) other than Partnership Units held by the Company; provided, that for the avoidance of doubt, this definition
of “Initial Shares” shall exclude shares of Common Stock issuable upon exercise of stock options or upon the exchange
(directly or indirectly) of LTIP Units or other Partnership Units issued to employees, non-employee directors, consultants, advisors
or other persons or entities as incentive or other compensation.

 

“Interim
Amount” means, as of the Second Valuation Date, an amount equal to (A) up to three percent (3%) of the Company’s
Initial Market Cap, less (B) any amount of the Annual Amount achieved through the Second Valuation Date (such that the maximum
level of achievement through the Second Valuation Date shall not exceed three percent (3%) of the Company’s Initial Market
Cap), based on the level of achievement of: (x) a dollar amount equal to four percent (4%) of the dollar amount by which, if any,
the amount of the Company’s Total Return, determined as of such date, exceeds the Threshold Amount, determined as of such
date (“Interim Absolute TRS”), and (y) as of the Second Valuation Date, a dollar amount equal to four
percent (4%) of any amount by which the Company’s Total Return for the period commencing on the Effective Date, exceeds the
Relative Threshold Amount as of such date (“Interim Relative TRS”); provided, that the amount
so earned will be subject to reduction in accordance with a ratable sliding scale factor so that (A) if the Company’s TRS
Percentage for the applicable period is twelve percent (12%) or more, there will be no reduction to Interim Relative TRS for such
period; (B) Interim Relative TRS for such period shall be reduced by fifty percent (50%) if such TRS Percentage for the applicable
period is zero percent (0%); (C) Interim Relative TRS for such period shall be reduced based on a linear interpolation between
the foregoing reduction factors if the Company’s TRS Percentage for the applicable period is between zero percent (0%) and
twelve percent (12%) (e.g., if the Company achieved a TRS Percentage of six percent (6%), the value of any award would be
reduced by a factor of twenty-five percent (25%)); and (D) Interim Relative TRS for such period shall be reduced by one hundred
percent (100%) if the TRS Percentage for the applicable period is below zero percent (0%). For the avoidance of doubt, any Interim
Amount will be determined based on the formula in the preceding sentence which provides for a reduction for any Annual Amounts
determined at the First and Second Valuation Dates, but not less than zero.

 

“LTIP Units”
means LTIP Units, as such term is defined in the Partnership Agreement.

 

“Maximum
Total Outperformance Amount” means five percent (5%) of the Company’s Initial Market Cap.

 

“OP Units”
has the meaning set forth in the Partnership Agreement.

 

“Partnership
Agreement” means the Second Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of
June 2, 2015, among the Company, as general partner, the Advisor, as a limited partner, and any limited partners that are admitted
from time to time to the Partnership and listed on Schedule A thereto, as amended, restated or supplemented from time to time.

 

    	 	Exhibit A - 5	 

     

    

 

“Partnership
Units” has the meaning set forth in the Partnership Agreement.

 

“Peer Group”
means Chambers Street Properties, Gramercy Property Trust Inc., Lexington Realty Trust, Select Income REIT, and W. P. Carey Inc.

 

“Peer Group
Return Percentage” means, the median percentage return to stockholders of the Peer Group (A) for the period commencing
on the Effective Date and ending on the First Valuation Date with respect to the calculation of Annual Relative TRS for the First
Valuation Date, (B) for the period commencing on the day after the prior Valuation Date and ending on the next Valuation Date with
respect to calculation of Annual Relative TRS for the Second Valuation Date and the Final Valuation Date and (C) for the period
commencing on the Effective Date and ending on the Second Valuation Date and the Final Valuation Date with respect to calculating
Interim Relative TRS and Final Relative TRS, respectively; in each case as calculated by an independent consultant engaged by the
Committee and as approved by the Committee in its reasonable discretion.

 

“Person”
means an individual, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization,
other entity or “group” (as defined in the Exchange Act).

 

“REIT Shares
Amount” has the meaning set forth in the Partnership Agreement.

 

“Relative
Threshold Amount” means an amount calculated in the same manner as the Threshold Amount provided that instead of
the TRS Percentage the Peer Group Return Percentage shall be utilized in calculating the Threshold Amount.

 

“Second Valuation
Date” means June 2, 2017.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Subsidiary”
means any corporation or other entity (other than the Company) in which the Company has more than a fifty percent (50%) interest,
either directly or indirectly.

 

“Threshold
Amount” means for each measurement period an amount equal to the sum of: (A) the Adjusted Market Cap; plus (B) an
amount equal to (i) seven percent (7%) multiplied by the Adjusted Market Cap for each annual measurement period, (ii) fourteen
percent (14%) multiplied by the Adjusted Market Cap for purposes of calculating Interim Absolute TRS and (iii) twenty-one percent
(21%) multiplied by the Adjusted Market Cap for purposes of calculating the Final Absolute TRS Amount; plus (C) the value of any
Additional Shares issued since the start of the measurement period (based on the spot closing prices on the issuance dates of
the Additional Shares)1; plus (D) an amount equal to
the proportional required return (based on a non-compounded daily rate of .0001918) from the issuance dates of the Additional
Shares to the end of the measurement period on the values of the Additional Shares from (C) above; plus (E) the number of Buyback
Shares bought back since the start of the measurement period multiplied by the spot closing price2
at the start of the measurement period (or $9.50 for measurement periods beginning on the Effective Date); plus (F)
an amount equal to the proportional required return (based on a non-compounded daily rate of .0001918) from the start of the measurement
period to the buyback dates of the Buyback Shares on the values of the Buyback Shares from (E) above. 

 

 

1
Note to Draft: AE notes that other prices could also be used for the Additional Shares.

2
Note to Draft: AE notes that other prices could also be used for the Additional Shares.

 

    	 	Exhibit A - 6	 

     

    

 

“Total Outperformance
Amount” means, as of the Final Valuation Date, a dollar amount equal to the algebraic sum of: (A) the Final Absolute
TRS Amount, (B) the Final Relative TRS Amount, (C) the Annual Amounts determined as of each Valuation Date and (D) the Interim
Amount; provided that (i) if the resulting amount is a negative number, the Total Outperformance Amount shall be zero, and
(ii) in no event shall the Total Outperformance Amount exceed the Maximum Total Outperformance Amount. For the avoidance of doubt,
the Total Outperformance Amount is based on (i) the Annual Amounts granted at the First, Second and Final Valuation Dates, plus
(ii) the Interim Amount less any Annual Amounts granted at the First and Second Valuation Dates, plus (iii) the sum of the Final
Absolute TRS Amount plus the Final Relative TRS Amount, less any Annual Amounts granted at the First, Second and Third Valuation
Dates and any Interim Amount granted at the Second Valuation Date, but not less than zero and not greater than the Maximum Total
Outperformance Amount.

 

“Total Return”
means (without double-counting), as of a particular date of determination, a dollar amount equal to the sum of: (A) the Total Shares
as of such date of determination multiplied by the Common Stock Price as of such date, plus (B) an amount equal to the sum
of the total dividends and other distributions declared between the beginning of the applicable measuring period and such date
of determination so long as the “ex-dividend” date with respect thereto falls prior to such date of determination (excluding
dividends and distributions paid in the form of additional shares of Common Stock or Partnership Units), in respect of the Total
Shares as of such date of determination (it being understood, for the avoidance of doubt, that such total dividends and distributions
shall be calculated by reference to actual securities outstanding as of each record date with respect to each applicable dividend
or distribution payment date, and not by multiplying the aggregate amount of distributions paid on one OP Unit that was outstanding
as of the Effective Date between the Effective Date and such date of determination by the number of Total Shares as of the date
of determination), plus (C) the value of any Buyback Shares redeemed from the start of the measurement period to the date
of determination (based on the spot closing prices on the buyback dates of the Buyback Shares).3

 

“Total Shares”
means (without double-counting), as of a particular date of determination, the algebraic sum of: (A) the Initial Shares, plus
(B) the Additional Shares, minus (C) all Buyback Shares repurchased or redeemed between the Effective Date and such date
of determination.

 

“Total OPP
Unit Equivalent” means the aggregate of (i) the sum of Annual OPP Unit Equivalents and the Interim OPP Unit Equivalent
(the “Earned Annual and Interim OPP Unit Equivalents”) and (ii) the excess (if any) of the Final OPP
Unit Equivalent over the Earned Annual and Interim OPP Unit Equivalents.

 

 

3
Note to Draft: AE notes that other prices could also be used for the Buyback Shares.

 

    	 	Exhibit A - 7	 

     

    

 

“Transactional
Change of Control” means (A) a Change of Control described in clause (i) of the definition thereof where the Person
makes a tender offer for Common Stock, (B) a Change of Control described in clause (ii) of the definition thereof where the Company
is not the surviving entity, or (C) a Change of Control described in clause (iii) of the definition thereof.

 

“Transfer”
has the meaning set forth in Section 7 hereof.

 

“TRS Percentage”
means, with respect to the Company, the cumulative total percentage return per share achieved by one share of the Company’s
Common Stock for each applicable measurement period, assuming contemporaneous reinvestment in Common Stock of all dividends and
other distributions, as calculated by an independent consultant engaged by the Committee, which calculation shall be approved by
the Committee in its reasonable discretion.

 

“Valuation
Date” means the First Valuation Date, the Second Valuation Date and the Final Valuation Date, as applicable.

  

    	 	Exhibit A - 8	 

     

    

 

EXHIBIT B

ELECTION TO INCLUDE IN GROSS INCOME IN YEAR OF TRANSFER OF

 PROPERTY PURSUANT TO SECTION 83(b) OF THE INTERNAL REVENUE CODE

 

The undersigned hereby
makes an election pursuant to Section 83(b) of the Internal Revenue Code with respect to the property described below and supplies
the following information in accordance with the regulations promulgated thereunder:

 

		1.	The name, address and taxpayer identification number of the undersigned are:

 

Name: Global Net Lease Advisors,
LLC (the “Taxpayer”)

 

Address:

 

 

Social Security No./Taxpayer
Identification No.: ___-___-___

 

		2.	Description of property with respect to which the election is being made: _____ LTIP Units in Global
Net Lease Operating Partnership, L.P. (the “Partnership”).

 

		3.	The date on which the LTIP Units were transferred is [•], 2015. The taxable year to which
this election relates is calendar year 2015.

 

		4.	Nature of restrictions to which the LTIP Units are subject:

 

		(a)	With limited exceptions, until the LTIP Units vest, the Taxpayer may not transfer in any manner
any portion of the LTIP Units without the consent of the Partnership.

 

		(b)	The Taxpayer’s LTIP Units vest in accordance with the vesting provisions described in the
Schedule attached hereto. Unvested LTIP Units are forfeited in accordance with the vesting provisions described in the Schedule
attached hereto.

 

		5.	The fair market value at time of transfer (determined without regard to any restrictions other
than restrictions which by their terms will never lapse) of the LTIP Units with respect to which this election is being made was
$[•] per LTIP Unit.

 

		6.	The amount paid by the Taxpayer for the LTIP Units was $0 per LTIP Unit.

 

		7.	A copy of this statement has been furnished to the Partnership and Global Net Lease, Inc.

 

	Dated:  	 	 Name:  	 

 

    	 	Exhibit B - 1	 

     

    

 

SCHEDULE TO EXHIBIT
B

 

Vesting Provisions
of LTIP Units

 

The LTIP Units are
subject to time-based and performance-based vesting with the final vesting percentage equaling the product of the time-based vesting
percentage and the performance-based vesting percentage. Performance-based vesting will be from 0% to 100% based (i) 50% on Global
Net Lease, Inc.’s (the “Company’s”) per-share total return to shareholders and (ii) 50% on total
return against the total percentage return to stock holders of a specified peer group, in each case for the period from [•],
2016 to [•], 2018 (or earlier in certain circumstances). Under the time-based vesting hurdles, one-third (1/3) of the LTIP
Units will vest on June 2, 2018, one-third (1/3) of the LTIP Units will vest on June 2, 2019, and the remaining one-third (1/3)
of the LTIP Units will vest on June 2, 2020, provided that the Taxpayer continues its service relationship with the Company
and the Partnership through such dates, subject to acceleration in the event of certain extraordinary transactions or termination
of the Taxpayer’s service relationship with the Company under specified circumstances. Unvested LTIP Units are subject to
forfeiture in the event of failure to vest based on the determination of the performance-based percentage or the passage of time.

 

    	 	Exhibit B - 2Exhibit 10.43

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (“Agreement”)
is made and entered into as of the 2nd day of June, 2015, by and between Global Net Lease, Inc., a Maryland corporation
(the “Company”), and Scott J. Bowman, Peter M. Budko, Patrick J. Goulding, William M. Kahane, P. Sue Perrotty, Nicholas
Radesca, Edward G. Rendell, Nicholas S. Schorsch, Abby M. Wenzel, Andrew Winer, Edward M. Weil, Jr., Global Net Lease Advisors,
LLC, AR Capital, LLC and RCS Capital Corporation (each, an “Indemnitee”).

 

WHEREAS, at the request of the Company,
Indemnitee currently serves as a director, officer or service provider of the Company and may, therefore, be subjected to claims,
suits or proceedings arising as a result of his or her service; and

 

WHEREAS, as an inducement to Indemnitee
to serve or continue to serve as a director, officer or service provider, the Company has agreed to indemnify Indemnitee and to
advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum extent
permitted by law; and

 

WHEREAS, the parties to this Agreement are
parties to that certain Indemnification Agreement dated as of December 31, 2014 and, in the case of P. Sue Perrotty, that certain
Indemnification Agreement dated as of March 20, 2015 (together, the “Existing Agreements”); and

 

WHEREAS, the parties to this Agreement desire
that all of their rights and obligations to one another under the Existing Agreements be superseded and replaced with the rights
and obligations provided herein; and

 

WHEREAS, the parties by this Agreement desire
to set forth their agreement regarding indemnification and advance of expenses;

 

NOW, THEREFORE, in consideration of the
premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

Section 1. Definitions. For purposes
of this Agreement:

 

(a) “Change in Control” means
a change in control of the Company occurring after the Effective Date of a nature that would be required to be reported in response
to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Company is then subject
to such reporting requirement; provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred
if, after the Effective Date (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
of securities of the Company representing 15% or more of the combined voting power of all of the Company’s then-outstanding
securities entitled to vote generally in the election of directors without the prior approval of at least two-thirds of the members
of the Board of Directors in office immediately prior to such person’s attaining such percentage interest; (ii) the
Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least
two-thirds of the members of the Board of Directors then in office, as a consequence of which members of the Board of Directors
in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter;
or (iii) at any time, a majority of the members of the Board of Directors are not individuals (A) who were directors as of
the Effective Date or (B) whose election by the Board of Directors or nomination for election by the Company’s stockholders
was approved by the affirmative vote of at least two-thirds of the directors then in office who were directors as of the Effective
Date or whose election or nomination for election was previously so approved.

  

    	 

     

    

  

(b) “Corporate Status” means the
status of a person as a present or former director, officer, employee or agent of the Company or as a director, trustee, officer,
partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited
liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity
at the request of the Company. As a clarification and without limiting the circumstances in which Indemnitee may be serving at
the request of the Company, service by Indemnitee shall be deemed to be at the request of the Company: (i) if Indemnitee serves
or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any corporation,
partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise (1) of which a majority
of the voting power or equity interest is owned directly or indirectly by the Company or (2) the management of which is controlled
directly or indirectly by the Company and (ii) if, as a result of Indemnitee’s service to the Company or any of its affiliated
entities, Indemnitee is subject to duties by, or required to perform services for, an employee benefit plan or its participants
or beneficiaries, including as deemed fiduciary thereof.

 

(c) “Disinterested Director” means
a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of
Expenses is sought by Indemnitee.

 

(d) “Effective Date” means the
date set forth in the first paragraph of this Agreement.

 

(e) “Expenses” means any and all
reasonable and out-of-pocket attorneys’ fees and costs, retainers, court costs, arbitration and mediation costs, transcript
costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt
of any payments under this Agreement, ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection
with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in or otherwise
participating in a Proceeding. Expenses shall also include Expenses incurred in connection with any appeal resulting from any Proceeding
including, without limitation, the premium for, security for and other costs relating to any cost bond supersedeas bond or other
appeal bond or its equivalent.

 

(f) “Independent Counsel” means
a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is, nor in the past five years
has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with
respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements),
or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim for indemnification or advance
of Expenses hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either
the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

(g) “Proceeding” means any threatened,
pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing, claim, demand, discovery request or any other actual, threatened or completed proceeding, whether brought by or in the
right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative
or investigative (formal or informal) nature, including any appeal therefrom, except one pending or completed on or before the
Effective Date, unless otherwise specifically agreed in writing by the Company and Indemnitee. If Indemnitee reasonably believes
that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding.

 

Section 2. Services by Indemnitee.
Indemnitee will serve as a director, officer or service provider of the Company. However, this Agreement shall not impose any independent
obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company. This Agreement shall not be deemed
an employment contract between the Company (or any other entity) and Indemnitee.

 

Section 3. Existing Agreement Superseded.
The parties hereto agree that all of their rights and obligations under the Existing Agreement are hereby replaced and superseded
by the rights and obligations provided hereunder.

 

Section 4. General. The Company shall
indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to the maximum extent permitted
by Maryland law in effect on the Effective Date and as amended from time to time; provided, however, that no change in Maryland
law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the
Effective Date. The rights of Indemnitee provided in this Section 4 shall include, without limitation, the rights set forth in
the other sections of this Agreement, including any additional indemnification permitted by the Maryland General Corporation Law
(the “MGCL”), including, without limitation, Section 2-418(g) of the MGCL.

 

    	 

     

    

  

Section 5. Standard for Indemnification.
If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the
Company shall indemnify Indemnitee against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually
and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with any such Proceeding unless it is established
by clear and convincing evidence that (a) the act or omission of Indemnitee was material to the matter giving rise to the
Proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) Indemnitee
actually received an improper personal benefit in money, property or services or (c) in the case of any criminal Proceeding,
Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

 

Section 6. Certain Limits on Indemnification.
Notwithstanding any other provision of this Agreement (other than Section 7), Indemnitee shall not be entitled to:

 

(a) indemnification hereunder if the Proceeding
was one by or in the right of the Company and Indemnitee is adjudged, in a final adjudication of the Proceeding not subject to
further appeal, to be liable to the Company;

 

(b) indemnification hereunder if Indemnitee
is adjudged, in a final adjudication of the Proceeding not subject to further appeal, to be liable on the basis that personal benefit
was improperly received in any Proceeding charging improper personal benefit to Indemnitee, whether or not involving action in
the Indemnitee’s Corporate Status; or

 

(c) indemnification or advance of Expenses
hereunder if the Proceeding was brought by Indemnitee, unless: (i) the Proceeding was brought to enforce indemnification under
this Agreement, and then only to the extent in accordance with and as authorized by Section 13 of this Agreement, or (ii) the Company’s
charter or Bylaws, a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of
Directors or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise.

 

Section 7. Court-Ordered Indemnification.
Notwithstanding any other provision of this Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and
such notice as the court shall require, may order indemnification of Indemnitee by the Company in the following circumstances:

 

(a) if such court determines that Indemnitee
is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in which case Indemnitee
shall be entitled to recover the Expenses of securing such reimbursement; or

 

(b) if such court determines that Indemnitee
is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has
met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an
improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification contemplated by Section 2-418(d)(2)(ii)
of the MGCL.

 

Section 8. Indemnification for Expenses
of an Indemnitee Who is Wholly or Partly Successful. Notwithstanding any other provision of this Agreement, and without limiting
any such provision, to the extent that Indemnitee was or is, by reason of his or her Corporate Status, made a party to (or otherwise
becomes a participant in) any Proceeding and is successful, on the merits or otherwise, in the defense of such Proceeding, Indemnitee
shall be indemnified for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection
therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or
more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section
8 for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with each such
claim, issue or matter, allocated on a reasonable and proportionate basis. For purposes of this Section 8, and without limitation,
the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to
be a successful result as to such claim, issue or matter.

 

    	 

     

    

  

Section 9. Advance of Expenses for an
Indemnitee. If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any
Proceeding, the Company shall, without requiring a preliminary determination of Indemnitee’s ultimate entitlement to indemnification
hereunder, advance all Expenses incurred by or on behalf of Indemnitee in connection with such Proceeding. The Company shall make
such advance within ten days after the receipt by the Company of a statement or statements requesting such advance from time to
time, whether prior to or after final disposition of such Proceeding and may be in the form of, in the reasonable discretion of
the Indemnitee (but without duplication) (a) payment of such Expenses directly to third parties on behalf of Indemnitee, (b) advance
of funds to Indemnitee in an amount sufficient to pay such Expenses or (c) reimbursement to Indemnitee for Indemnitee’s payment
of such Expenses. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include
or be preceded or accompanied by a written affirmation by Indemnitee and a written undertaking by or on behalf of Indemnitee, in
substantially the form attached hereto as Exhibit A or in such form as may be required under applicable law as in effect at the
time of the execution thereof. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter
in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section
9 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee’s
financial ability to repay such advanced Expenses and without any requirement to post security therefor.

 

Section 10. Indemnification and Advance
of Expenses as a Witness or Other Participant. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee
is or may be, by reason of Indemnitee’s Corporate Status, made a witness or otherwise asked to participate in any Proceeding,
whether instituted by the Company or any other person, and to which Indemnitee is not a party, Indemnitee shall be advanced and
indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith
within ten days after the receipt by the Company of a statement or statements requesting any such advance or indemnification from
time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence
the Expenses incurred by Indemnitee. In connection with any such advance of Expenses, the Company may require Indemnitee to provide
an undertaking and affirmation substantially in the form attached hereto as Exhibit A.

 

Section 11. Procedure for Determination
of Entitlement to Indemnification.

 

(a) To obtain indemnification under this Agreement,
Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as
is reasonably available to Indemnitee and is reasonably necessary or appropriate to determine whether and to what extent Indemnitee
is entitled to indemnification. Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee
deems appropriate in Indemnitee’s sole discretion. The officer of the Company receiving any such request from Indemnitee
shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has
requested indemnification.

 

(b) Upon written request by Indemnitee for
indemnification pursuant to Section 11(a) above, a determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control shall have occurred, by Independent
Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, which Independent Counsel
shall be selected by Indemnitee and approved by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL,
which approval shall not be unreasonably withheld; or (ii) if a Change in Control shall not have occurred, (A) by the Board
of Directors by a majority vote of a quorum consisting of Disinterested Directors or, if such a quorum cannot be obtained, then
by a majority vote of a duly authorized committee of the Board of Directors consisting solely of one or more Disinterested Directors,
(B) if Independent Counsel has been selected by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL and
approved by Indemnitee, which approval shall not be unreasonably withheld or delayed, by Independent Counsel, in a written opinion
to the Board of Directors, a copy of which shall be delivered to Indemnitee or (C) if so directed by the Board of Directors, by
the stockholders of the Company, other than directors or officers who are parties to the Proceeding. If it is so determined that
Indemnitee is entitled to indemnification, the Company shall make payment to Indemnitee shall be made within ten days after such
determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s
entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation
or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary or appropriate to such determination in the discretion of the Board of Directors or Independent Counsel if
retained pursuant to clause (ii)(B) of this Section 11(b). Any Expenses incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.

 

    	 

     

    

  

(c) The Company shall pay the reasonable fees
and expenses of Independent Counsel, if one is appointed.

 

Section 12. Presumptions and Effect of
Certain Proceedings.

 

(a) In making any determination with respect
to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee
is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with
Section 11(a) of this Agreement, and the Company shall have the burden of overcoming that presumption in connection with the
making of any determination contrary to that presumption.

 

(b) The termination of any Proceeding or of
any claim, issue or matter therein, by judgment, order, settlement or conviction, upon a plea of nolo contendere
or its equivalent, or entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet
the requisite standard of conduct described herein for indemnification.

 

(c) The knowledge and/or actions, or failure
to act, of any other director, officer, employee or agent of the Company or any other director, trustee, officer, partner, manager,
managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company,
joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining
any other right to indemnification under this Agreement.

 

Section 13. Remedies of Indemnitee.

 

(a) If (i) a determination is made pursuant
to Section 11(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of
Expenses is not timely made pursuant to Sections 9 or 10 of this Agreement, (iii) no determination of entitlement to indemnification
shall have been made pursuant to Section 11(b) of this Agreement within 60 days after receipt by the Company of the request for
indemnification, (iv) payment of indemnification is not made pursuant to Sections 8 or 10 of this Agreement within ten days
after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to any other section
of this Agreement or the charter or Bylaws of the Company is not made within ten days after a determination has been made that
Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the
State of Maryland, or in any other court of competent jurisdiction, of Indemnitee’s entitlement to such indemnification or
advance of Expenses. Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted
by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence
a proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has
the right to commence such proceeding pursuant to this Section 13(a); provided, however, that the foregoing clause shall not
apply to a proceeding brought by Indemnitee to enforce his or her rights under Section 8 of this Agreement. Except as set forth
herein, the provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration. The
Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

(b) In any judicial proceeding or arbitration
commenced pursuant to this Section 13, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses,
as the case may be, under this Agreement and the Company shall have the burden of proving that Indemnitee is not entitled to indemnification
or advance of Expenses, as the case may be. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 13,
Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 9 of this Agreement until a final
determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have
been exhausted or lapsed). The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial
proceeding or arbitration commenced pursuant to this Section 13 that the procedures and presumptions of this Agreement are
not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound
by all of the provisions of this Agreement.

 

    	 

     

    

  

(c) If a determination shall have been made
pursuant to Section 11(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by
such determination in any judicial proceeding or arbitration commenced pursuant to this Section 13, absent a misstatement by Indemnitee
of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading,
in connection with the request for indemnification that was not disclosed in connection with the determination.

 

(d) In the event that Indemnitee is successful
in seeking, pursuant to this Section 13, a judicial adjudication of or an award in arbitration to enforce Indemnitee’s rights
under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall
be indemnified by the Company for, any and all Expenses actually and reasonably incurred by him or her in such judicial adjudication
or arbitration. If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part
but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial
adjudication or arbitration shall be appropriately prorated.

 

(e) Interest shall be paid by the Company
to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial Proceedings Article of the
Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period (i) commencing with either
the tenth day after the date on which the Company was requested to advance Expenses in accordance with Sections 9 or 10 of this
Agreement or the 60th day after the date on which the Company was requested to make the determination of entitlement
to indemnification under Section 11(b) of this Agreement, as applicable, and (ii) and ending on the date such payment is made to
Indemnitee by the Company.

 

Section 14. Defense of the Underlying
Proceeding.

 

(a) Indemnitee shall notify the Company promptly
in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or other document relating to
any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder and shall include with such
notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding. The failure to give
any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification
or the advance of Expenses under this Agreement unless the Company’s ability to defend in such Proceeding or to obtain proceeds
under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually
so prejudiced.

 

(b) Subject to the provisions of the last
sentence of this Section 14(b) and of Section 14(c) below, the Company shall have the right to defend Indemnitee in any
Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any
such decision to defend within 15 calendar days following receipt of notice of any such Proceeding under Section 14(a) above.
The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent
to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission
of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability
in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee, or (iii) would
impose any Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 14(b) shall not apply to a Proceeding
brought by Indemnitee under Section 13 of this Agreement.

 

(c) Notwithstanding the provisions of Section
14(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee
reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld
or delayed, that Indemnitee may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent
with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved
by the Company, which approval shall not be unreasonably withheld or delayed, that an actual or apparent conflict of interest or
potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense
of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s
choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld or delayed, at the expense
of the Company. In addition, if the Company fails to comply with any of its obligations under this Agreement or in the event that
the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding
to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right
to retain counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not be unreasonably
withheld or delayed, at the expense of the Company (subject to Section 13(d) of this Agreement), to represent Indemnitee in
connection with any such matter.

 

    	 

     

    

  

Section 15. Non-Exclusivity; Survival
of Rights; Subrogation.

 

(a) The rights of indemnification and advance
of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time
be entitled under applicable law, the charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled
to vote generally in the election of directors or of the Board of Directors, or otherwise. Unless consented to in writing by Indemnitee,
no amendment, alteration or repeal of the charter or Bylaws of the Company, this Agreement or of any provision hereof shall limit
or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or
her Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or
inaction is raised prior or subsequent to such amendment, alteration or repeal. No right or remedy herein conferred is intended
to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other
right or remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion of any right or remedy
hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy.

 

(b) In the event of any payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary
to enable the Company to bring suit to enforce such rights.

 

Section 16. Insurance. (a) The Company
will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate
by the Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of Indemnitee’s
Corporate Status and covering the Company for any indemnification or advance of Expenses made by the Company to Indemnitee for
any claims made against Indemnitee by reason of Indemnitee’s Corporate Status. In the event of a Change in Control, the Company
shall maintain in force any and all directors and officers liability insurance policies that were maintained by the Company immediately
prior to the Change in Control for a period of six years with the insurance carrier or carriers and through the insurance broker
in place at the time of the Change in Control; provided, however, (i) if the carriers will not offer the same policy and an expiring
policy needs to be replaced, a policy substantially comparable in scope and amount shall be obtained and (ii) if any replacement
insurance carrier is necessary to obtain a policy substantially comparable in scope and amount, such insurance carrier shall have
an AM Best rating that is the same or better than the AM Best rating of the existing insurance carrier; provided, further, however,
in no event shall the Company be required to expend in the aggregate in excess of 250% of the annual premium or premiums paid by
the Company for directors and officers liability insurance in effect on the date of the Change in Control. In the event that 250%
of the annual premium paid by the Company for such existing directors and officers liability insurance is insufficient for such
coverage, the Company shall spend up to that amount to purchase such lesser coverage as may be obtained with such amount.

 

(b)Without in any way limiting any other
obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee which would otherwise be
indemnifiable hereunder arising out of the amount of any deductible or retention and the amount of any excess of the aggregate
of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with a Proceeding over the coverage
of any insurance referred to in Section 16(a). The purchase, establishment and maintenance of any such insurance shall not in any
way limit or affect the rights or obligations of the Company or Indemnitee under this Agreement except as expressly provided herein,
and the execution and delivery of this Agreement by the Company and the Indemnitee shall not in any way limit or affect the rights
or obligations of the Company under any such insurance policies. If, at the time the Company receives notice from any source of
a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise) the Company has director and officer liability
insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures
set forth in the respective policies.

 

    	 

     

    

  

(c)The Indemnitee shall cooperate with
the Company or any insurance carrier of the Company with respect to any Proceeding.

 

Section 17. Coordination of Payments.
The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable
as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy,
contract, agreement or otherwise.

 

Section 18. Contribution. If the
indemnification provided in this Agreement is unavailable in whole or in part and may not be paid to Indemnitee for any reason,
other than for failure to satisfy the standard of conduct set forth in Section 5 or due to the provisions of Section 6, then, in
respect to any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), to
the fullest extent permissible under applicable law, the Company, in lieu of indemnifying and holding harmless Indemnitee, shall
pay, in the first instance, the entire amount incurred by Indemnitee, whether for Expenses, judgments, penalties, and/or amounts
paid or to be paid in settlement, in connection with any Proceeding without requiring Indemnitee to contribute to such payment,
and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.

 

Section 19. Reports to Stockholders.
To the extent required by the MGCL, the Company shall report in writing to its stockholders the payment of any amounts for indemnification
of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Company with
the notice of the meeting of stockholders of the Company next following the date of the payment of any such indemnification or
advance of Expenses or prior to such meeting.

 

Section 20. Duration of Agreement; Binding
Effect.

 

(a) This Agreement shall continue until and
terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of
the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign
or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit
plan or other enterprise that such person is or was serving in such capacity at the request of the Company and (ii) the date that
Indemnitee is no longer subject to any actual or possible Proceeding (including any rights of appeal thereto and any Proceeding
commenced by Indemnitee pursuant to Section 13 of this Agreement).

 

(b) The indemnification and advance of Expenses
provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective
successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially
all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee
or agent of the Company or a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any
other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other
enterprise that such person is or was serving in such capacity at the request of the Company, and shall inure to the benefit of
Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

 

(c) The Company shall require and cause any
successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial
part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly
to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform
if no such succession had taken place.

 

    	 

     

    

  

(d) The Company and Indemnitee agree that
a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and
further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may
enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual
damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded
from seeking or obtaining any other relief to which Indemnitee may be entitled. Indemnitee shall further be entitled to such specific
performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without
the necessity of posting bonds or other undertakings in connection therewith. The Company acknowledges that, in the absence of
a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of
such a bond or undertaking.

 

Section 21. Severability. If any
provision or provisions of this Agreement shall be held to be invalid, void, illegal or otherwise unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without
limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid,
illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby
and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed
to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to
the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph
or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid,
illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 

Section 22. Identical Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but
all of which together shall constitute one and the same Agreement. One such counterpart signed by the party against whom enforceability
is sought shall be sufficient to evidence the existence of this Agreement.

 

Section 23. Headings. The headings
of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement
or to affect the construction thereof.

 

Section 24. Modification and Waiver.
No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.
No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar) nor, unless otherwise expressly stated, shall such waiver constitute a continuing waiver.

 

Section 25. Notices. All notices,
requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered
by hand and receipted for by the party to whom said notice or other communication shall have been directed, on the day of such
delivery, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on
which it is so mailed:

 

(a) If to Indemnitee, to the address set forth
on the signature page hereto.

 

(b) If to the Company, to:

 

Global Net Lease, Inc.

405 Park Avenue, 14th Floor

New York, NY 10022

Attn: General Counsel

 

or to such other address as may have been furnished in writing
to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

 

Section 26. Governing Law. This Agreement
shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts
of laws rules.

 

    	 

     

    

  

[SIGNATURE PAGE FOLLOWS] 

 

    	 

     

    

 

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

 

	 	GLOBAL NET LEASE, INC.
	 	 	 
	 	By:	/s/ Scott J. Bowman
	 	 	Name: Scott J. Bowman
	 	 	Title: Chief Executive Officer
	 	 	 
	 	INDEMNITEE
	 	 	 
	 	By:	/s/ Scott J. Bowman
	 	 	Name: Scott J. Bowman
	 	 	 
	 	INDEMNITEE
	 	 	 
	 	By:	/s/ Peter M. Budko
	 	 	Name: Peter M. Budko 
	 	 	 
	 	INDEMNITEE
	 	 	 
	 	By:	/s/ Patrick J. Goulding
	 	 	Name: Patrick J. Goulding
	 	 	 
	 	INDEMNITEE
	 	 	 
	 	By:	/s/ William M. Kahane
	 	 	Name: William M. Kahane
	 	 	 
	 	INDEMNITEE
	 	 	 
	 	By:	/s/ P. Sue Perrotty
	 	 	Name: P. Sue Perrotty
	 	 	 
	 	INDEMNITEE
	 	 	 
	 	By:	/s/ Nicholas Radesca
	 	 	Name: Nicholas Radesca
	 	 	 
	 	INDEMNITEE
	 	 	 
	 	 	/s/ Edward G. Rendell
	 	 	Name: Edward G. Rendell
	 	 	 
	 	INDEMNITEE
	 	 	 
	 	By:	/s/ Nicholas S. Schorsch
	 	 	Name: Nicholas S. Schorsch
	 	 	 
	 	INDEMNITEE
	 	 	 
	 	By:	/s/ Edward M. Weil, Jr.
	 	 	Name: Edward M. Weil, Jr.

 

 

    	 

     

    

  

	 	INDEMNITEE
	 	 	 
	 	By:	/s/ Abby M. Wenzel
	 	 	Name: Abby M. Wenzel
	 	 
	 	INDEMNITEE
	 	 	 
	 	By:	/s/ Andrew Winer
	 	 	Name: Andrew Winer

  

	 	INDEMNITEE
	 	 
	 	 	GLOBAL NET LEASE ADVISORS, LLC
	 	 	 	 
	 	 	By:	GLOBAL NET LEASE
	 	 	 	SPECIAL LIMITED PARTNER, LLC,
	 	 	 	its managing member
	 	 	By:	AR Capital Global Holdings, LLC,
	 	 	 	its sole member
	 	 	By:	AR Capital, LLC, its sole member

	 	 	 	 
	 	 	By:	/s/ William M. Kahane
	 	 	Name: 	William M. Kahane
	 	 	Title:	Manager
	 	 
	 	INDEMNITEE
	 	 
	 	 	AR CAPITAL, LLC
	 	 	 	 
	 	 	By: 	/s/ William M. Kahane
	 	 	Name: 	William M. Kahane
	 	 	Title:	Manager
	 	 
	 	INDEMNITEE
	 	 
	 	 	RCS Capital corporation
	 	 	 	 
	 	 	By: 	/s/ James A. Tanaka
	 	 	Name: 	James A. Tanaka
	 	 	Title: 	Authorized Signatory

 

    	 

     

    

 

EXHIBIT A

 

AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES
ADVANCED

 

To: The Board of Directors of Global Net Lease, Inc.

 

Re: Affirmation and Undertaking

 

Ladies and Gentlemen:

 

This Affirmation and Undertaking is being
provided pursuant to that certain Indemnification Agreement, dated the 2nd day of June, 2015, by and between Global Net Lease,
Inc., a Maryland corporation (the “Company”), and the undersigned Indemnitee (the “Indemnification Agreement”),
pursuant to which I am entitled to advance of Expenses in connection with [Description of Proceeding] (the “Proceeding”).

 

Terms used herein and not otherwise defined
shall have the meanings specified in the Indemnification Agreement.

 

I am subject to the Proceeding by reason
of my Corporate Status or by reason of alleged actions or omissions by me in such capacity. I hereby affirm my good faith belief
that at all times, insofar as I was involved as a director of the Company, in any of the facts or events giving rise to the Proceeding,
I (1) did not act with bad faith or active or deliberate dishonesty, (2) did not receive any improper personal benefit
in money, property or services and (3) in the case of any criminal proceeding, had no reasonable cause to believe that any
act or omission by me was unlawful.

 

In consideration of the advance by the Company
for Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in
connection with the Proceeding, it is established that (1) an act or omission by me was material to the matter giving rise
to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (2) I
actually received an improper personal benefit in money, property or services or (3) in the case of any criminal proceeding,
I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced
Expenses, relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.

 

IN WITNESS WHEREOF, I have executed this
Affirmation and Undertaking on this _____ day of _______________, 20____.

 

_____________________________

Name:

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