Common use of Investment Allocation Clause in Contracts

Investment Allocation. (a) The parties hereto agree that, during the term of this Agreement, (1) until such time as ARC HT has substantially completed its property acquisitions (subject to the concentration exception described in this paragraph of Section 1.1(a)), ARC HT shall have priority over any other ARC Fund to Proposed Property Acquisitions, except as may otherwise be agreed upon between the board of directors of the ARC Funds, and (2) after such time as ARC HT has substantially completed its property acquisitions, if any ARC Fund Advisor determines that one or more Proposed Property Acquisition is appropriate for its ARC Fund, and assuming each ARC Fund has sufficient capital to support such Proposed Property Acquisition, such Proposed Property Acquisition shall be submitted to the board of directors of each ARC Fund for a vote on whether to pursue such Proposed Property Acquisition. If the board of directors of more than one ARC Fund approves to pursue such Proposed Property Acquisition, the acquisition of such properties shall be allocated as set forth immediately below. Notwithstanding the foregoing, any priority to Proposed Property Acquisitions allocated to ARC HT hereby will be lifted in cases in which a proposed acquisition would overly concentrate ARC HT in a particular industry, geographical region or tenant. For purposes of illustration only, assuming ARC HT and ARC XX XX elect to pursue the Proposed Property Acquisition in accordance with this Section, and the last property acquired by ARC HT closed on July 1, 2013, and by ARC XX XX closed on June 1, 2013, (i) if one property is available, ARC XX XX shall be entitled to purchase such property, (ii) if two properties are available, ARC HT and ARC XX XX shall each be able to purchase one property, and (iii) if three or more properties are available, ARC XX XX shall be entitled to purchase two properties and ARC HT shall purchase the other property. Assuming further that ARC HT and ARC XX XX each last purchased a property on May 1, 2013, the ARC Fund with the smallest property portfolio based on gross purchase price shall be entitled to purchase the property. The decision with respect to the specific properties to be acquired by each ARC Fund shall be agreed upon by the ARC Fund Advisors of such ARC Funds.

Investment Allocation. (a) The parties hereto agree that, during the term of this Agreement, (1) until such time as ARC HT ARCT IV has substantially completed its property acquisitions (subject to the concentration exception described in this paragraph of Section 1.1(a)), ARC HT ARCT IV shall have priority over any other ARC Fund to Proposed Property Acquisitions, except as may otherwise be agreed upon between the board of directors of the ARC Funds, and (2) after such time as ARC HT ARCT IV has substantially completed its property acquisitions, if any ARC Fund Advisor determines that one or more Proposed Property Acquisition is appropriate for its ARC Fund, and assuming each ARC Fund has sufficient capital to support such Proposed Property Acquisition, such Proposed Property Acquisition shall be submitted to the board of directors of each ARC Fund for a vote on whether to pursue such Proposed Property Acquisition. If the board of directors of more than one ARC Fund approves to pursue such Proposed Property Acquisition, the acquisition of such properties shall be allocated as set forth immediately below. Notwithstanding the foregoing, any priority to Proposed Property Acquisitions allocated to ARC HT ARCT IV hereby will be lifted in cases in which a proposed acquisition would overly concentrate ARC HT ARCT IV in a particular industry, geographical region or tenant. For purposes of illustration only, assuming ARC HT ARCP and ARC XX XX DNAV elect to pursue the Proposed Property Acquisition in accordance with this Section, and the last property acquired by ARC HT DNAV closed on July 1, 2013, and by ARC XX XX ARCP closed on June 1, 2013, (i) if one property is available, ARC XX XX ARCP shall be entitled to purchase such property, (ii) if two properties are available, ARC HT DNAV and ARC XX XX ARCP shall each be able to purchase one property, and (iii) if three or more properties are available, ARC XX XX ARCP shall be entitled to purchase two properties and ARC HT DNAV shall purchase the other property. Assuming further that ARC HT DNAV and ARC XX XX ARCP each last purchased a property on May 1, 2013, the ARC Fund with the smallest property portfolio based on gross purchase price shall be entitled to purchase the property. The decision with respect to the specific properties to be acquired by each ARC Fund shall be agreed upon by the ARC Fund Advisors of such ARC Funds.