On August 3, 2015, American Finance Trust, Inc. entered into an indemnification agreement (the Indemnification Agreement) with Lisa D. Kabnick in connection with the appointment of Ms. Kabnick as an independent director and a member of the audit committee, nominating and corporate governance committee and compensation committee of the company on August 3, 2015. Ms. Kabnick will replace Herbert Vederman, who resigned from his role as an independent director of the company on July 30, 2015, effective as of that same date. Mr. Vederman did not resign pursuant to any disagreement with the company.

Mr. Vederman served as an independent director and a member of the company's audit committee, nominating and corporate governance committee and compensation committee since March 2015. Ms. Kabnick, like the company's other independent directors, will participate in the company's compensation program for independent directors and the company's employee and director incentive restricted share plan. Lisa D. Kabnick has served as a Senior Advisor at Reed Smith LLP since January 2015, and as a partner at Reed Smith from January 2003 until December 2014.