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 ARCT IV has substantially completed its property acquisitions (subject to the concentration exception described in this paragraph of Section 1.1(a)), 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 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 ARCT IV hereby will be lifted in cases in which a proposed acquisition would overly concentrate ARCT IV in a particular industry, geographical region or tenant. For purposes of illustration only, assuming ARCP and ARC DNAV elect to pursue the Proposed Property Acquisition in accordance with this Section, and the last property acquired by ARC DNAV closed on July 1, 2013, and by ARCP closed on June 1, 2013, (i) if one property is available, ARCP shall be entitled to purchase such property, (ii) if two properties are available, ARC DNAV and ARCP shall each be able to purchase one property, and (iii) if three or more properties are available, ARCP shall be entitled to purchase two properties and ARC DNAV shall purchase the other property. Assuming further that ARC DNAV and 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. (b) If any ARC Fund that elects to pursue the Proposed Property Acquisitions in accordance with Section 1.1(a) has sufficient capital to acquire all such proposed properties, the acquisition of such properties shall be allocated as follows: (i) if the ARC Funds pursuing such Proposed Property Acquisitions is greater than the number of properties available, in chronological order starting with the ARC Fund that has not acquired a property for the longest period of time or (ii) if the number of Proposed Property Acquisitions is equal to or greater than the number of ARC Funds pursuing such acquisitions and (A) the number of properties being acquired is divisible by the number of ARC Funds participating in such acquisitions to a whole number, equally among all such ARC Funds or (B) the number of properties being acquired is not divisible by the number of ARC Funds participating in such acquisitions to a whole number, first equally among all such ARC Funds to the extent possible, and then in chronological order starting with the ARC Fund that has not acquired a property for the longest period of time. (c) If any ARC Fund that elects to pursue the Proposed Property Acquisitions in accordance with Section 1.1(a) has sufficient capital to acquire some, but not all, the properties allocated to it pursuant to Section 1.1(b), the ARC Fund with sufficient capital shall be entitled to purchase the remaining properties. (d) The decision with respect to the specific properties to be acquired by each ARC Fund pursuant to this Section 1.1 shall be agreed upon by the ARC Fund Advisors of such ARC Funds. With respect to any allocation of properties pursuant to this Section 1.1 based on the chronological order starting with the ARC Fund that has not acquired a property for the longest period of time, if the ARC Funds last acquired a property on the same date, the allocation of such Proposed Property Acquisitions shall be to the ARC Fund with the smallest property portfolio based on gross purchase price.

Investment Allocation. (a) The parties hereto agree that, during the term of this Agreement, (1) until such time as ARCT IV ARC HT has substantially completed its property acquisitions (subject to the concentration exception described in this paragraph of Section 1.1(a)), ARCT IV 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 ARCT IV 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 ARCT IV ARC HT hereby will be lifted in cases in which a proposed acquisition would overly concentrate ARCT IV ARC HT in a particular industry, geographical region or tenant. For purposes of illustration only, assuming ARCP ARC HT and ARC DNAV XX XX elect to pursue the Proposed Property Acquisition in accordance with this Section, and the last property acquired by ARC DNAV HT closed on July 1, 2013, and by ARCP ARC XX XX closed on June 1, 2013, (i) if one property is available, ARCP ARC XX XX shall be entitled to purchase such property, (ii) if two properties are available, ARC DNAV HT and ARCP ARC XX XX shall each be able to purchase one property, and (iii) if three or more properties are available, ARCP ARC XX XX shall be entitled to purchase two properties and ARC DNAV HT shall purchase the other property. Assuming further that ARC DNAV HT and ARCP 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. (b) If any ARC Fund that elects to pursue the Proposed Property Acquisitions in accordance with Section 1.1(a) has sufficient capital to acquire all such proposed properties, the acquisition of such properties shall be allocated as follows: (i) if the ARC Funds pursuing such Proposed Property Acquisitions is greater than the number of properties available, in chronological order starting with the ARC Fund that has not acquired a property for the longest period of time or (ii) if the number of Proposed Property Acquisitions is equal to or greater than the number of ARC Funds pursuing such acquisitions and (A) the number of properties being acquired is divisible by the number of ARC Funds participating in such acquisitions to a whole number, equally among all such ARC Funds or (B) the number of properties being acquired is not divisible by the number of ARC Funds participating in such acquisitions to a whole number, first equally among all such ARC Funds to the extent possible, and then in chronological order starting with the ARC Fund that has not acquired a property for the longest period of time. (c) If any ARC Fund that elects to pursue the Proposed Property Acquisitions in accordance with Section 1.1(a) has sufficient capital to acquire some, but not all, the properties allocated to it pursuant to Section 1.1(b), the ARC Fund with sufficient capital shall be entitled to purchase the remaining properties. (d) The decision with respect to the specific properties to be acquired by each ARC Fund pursuant to this Section 1.1 shall be agreed upon by the ARC Fund Advisors of such ARC Funds. With respect to any allocation of properties pursuant to this Section 1.1 based on the chronological order starting with the ARC Fund that has not acquired a property for the longest period of time, if the ARC Funds last acquired a property on the same date, the allocation of such Proposed Property Acquisitions shall be to the ARC Fund with the smallest property portfolio based on gross purchase price.

Investment Allocation. (a) The parties hereto agree that, during the term of this Agreement, (1) until such time as ARCT IV has substantially completed its property acquisitions (subject to the concentration exception described in this paragraph of Section 1.1(a)), 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 ARCT IV has substantially completed its property acquisitions, if If any ARC Fund Advisor determines that one or more Proposed Property Acquisition proposed property acquisition is appropriate for its ARC Fund, and assuming each ARC Fund has sufficient capital to support such Proposed Property Acquisitionacquisition, such Proposed Property Acquisition 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 Acquisitionproposed property acquisition. If the board of directors of more than one ARC Fund approves to pursue such Proposed Property Acquisitionproposed 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 ARCT IV hereby will be lifted in cases in which a proposed acquisition would overly concentrate ARCT IV in a particular industry, geographical region or tenant. For purposes of illustration only, assuming ARCP ARCT III and ARC DNAV elect to pursue the Proposed Property Acquisition proposed property acquisition in accordance with this Section, and the last property acquired by ARC DNAV closed on July 1, 20132011, and by ARCP ARCT III closed on June 1, 20132011, (i) if one property is available, ARCP ARC III shall be entitled to purchase such property, (ii) if two properties are available, ARC DNAV and ARCP ARCT III shall each be able to purchase one property, and (iii) if three or more properties are available, ARCP ARC III shall be entitled to purchase two properties and ARC DNAV shall purchase the other property. Assuming further that ARC DNAV and ARCP ARCT III each last purchased a property on May 1, 20132011, 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. (b) If any ARC Fund that elects to pursue the Proposed Property Acquisitions proposed property acquisitions in accordance with Section 1.1(a) has sufficient capital to acquire all such proposed properties, the acquisition of such properties shall be allocated as follows: : (i) if the ARC Funds pursuing such Proposed Property Acquisitions proposed property acquisitions is greater than the number of properties available, in chronological order starting with the ARC Fund that has not acquired a property for the longest period of time or (ii) if the number of Proposed Property Acquisitions proposed property acquisitions is equal to or greater than the number of ARC Funds pursuing such acquisitions and (A) the number of properties being acquired is divisible by the number of ARC Funds participating in such acquisitions to a whole number, equally among all such ARC Funds or (B) the number of properties being acquired is not divisible by the number of ARC Funds participating in such acquisitions to a whole number, first equally among all such ARC Funds to the extent possible, and then in chronological order starting with the ARC Fund that has not acquired a property for the longest period of time. (c) If any ARC Fund that elects to pursue the Proposed Property Acquisitions proposed property acquisitions in accordance with Section 1.1(a) has sufficient capital to acquire some, but not all, the properties allocated to it pursuant to Section 1.1(b), the ARC Fund with sufficient capital shall be entitled to purchase the remaining properties. (d) The decision with respect to the specific properties to be acquired by each ARC Fund pursuant to this Section 1.1 shall be agreed upon by the ARC Fund Advisors of such ARC Funds. With respect to any allocation of properties pursuant to this Section 1.1 based on the chronological order starting with the ARC Fund that has not acquired a property for the longest period of time, if the ARC Funds last acquired a property on the same date, the allocation of such Proposed Property Acquisitions properties shall be to the ARC Fund with the smallest property portfolio based on gross purchase price.