Company: NNN
Filing Date: 2025-03-20
Form Type: DEF 14A
Source: 0000950170-25-042337
Chunk: 12

Company: NNN REIT, INC.
Filing Date: 2025-03-20
Form: DEF 14A
Chunk 12
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 likely to have a material adverse effect based on the following factors:

the Compensation Committee consists solely of independent non-employee directors, and the Compensation Committee has engaged an independent, external compensation consultant to assist with creating and reviewing the executive compensation program;

the Compensation Committee maintains the right, in its sole discretion, to modify the compensation policies and practices at any time;

the Compensation Committee has elected to use awards of restricted stock instead of other equity awards, such as stock options, because, as a REIT, which pays a large portion of its annual earnings to stockholders in the form of dividends, the Compensation Committee believes that restricted stock provides a better incentive and alignment of interest than stock options;

restricted stock awards are intended to provide our named executive officers with a significant interest in the long-term performance of our stock;

restricted stock awards vest over a multi-year period to enhance retention and are subject to forfeiture upon certain employment termination events;

certain performance-contingent restricted stock awards are tied to our three-year total shareholder return ("TSR") relative to a broad REIT peer group (70% weighting in 2024) to further focus our executive officers on long-term stockholder value creation;

bonus awards to our executive officers are reduced if balance sheet leverage exceeds levels previously approved by the Compensation Committee;

we have an Equity Retention Policy for our executive officers and members of our Board which requires all directors and executive officers to own meaningful levels of Company stock;

we have an Insider Trading Policy which prohibits, among other things, trading of Company securities on a short-term basis, buying puts or calls on Company securities, short sales of Company securities, and certain other activities. We have adopted an Anti-Hedging Policy that prohibits all employees, non-employee directors and executive officers from engaging in short sales of our securities, buying or selling puts or calls on our securities or otherwise engaging in hedging transactions (such as zero-cost dollars, exchange funds and forward sale contracts) involving our securities;

we have a Pledging Limitation Policy for our directors and executive officers which restricts directors and executive officers from pledging shares of the Company and holding of shares of the Company in margin accounts (no directors or executive officers have pledged any shares);

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we have a Clawback Policy for our executive officers to comply with NYSE recoupment policy requirements which provide that if the Company has a restatement of financial results owing to material error, we will recover from our executive officers any incentive-based compensation that was awarded in excess of the amount that