Document:

FIRST AMENDMENT

to

amended and restated

agreement of limited partnership

of

ARC PROPERTIES OPERATING PARTNERSHIP, L.P.

 

THIS FIRST AMENDMENT
TO AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF ARC PROPERTIES OPERATING PARTNERSHIP, L.P. (this “Amendment”)
is made as of May 11, 2012 by and among American Realty Capital Properties, Inc., a Maryland corporation (the “REIT”),
in its capacity as the General Partner and Special Limited Partner of ARC Properties Operating Partnership, L.P., a Delaware limited
partnership (the “Partnership”). Capitalized terms used but not otherwise defined in this Amendment shall have
the meanings given to such terms in the Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of September
6, 2011, by and among the REIT and the other parties signatory thereto (the “Partnership Agreement”).

 

witnesseth:

 

WHEREAS, on the date
hereof, CAMBR Company, Inc., a New York corporation (“CAMBR”), has purchased 545,454 shares (the “Shares”)
of the REIT’s Series A Convertible Preferred Stock, par value $.01 per share (the “Series A Preferred Stock”)
pursuant to that certain Securities Purchase Agreement dated as of the date hereof by and between the REIT and CAMBR (the “Securities
Purchase Agreement”);

 

WHEREAS, pursuant to
Section 4.02 of the Partnership Agreement, in connection with the purchase of the Series A Preferred Stock by CAMBR, the Special
Limited Partner shall contribute to the Partnership, on the date hereof, the proceeds received from the purchase of its Series
A Preferred Stock in exchange for certain preferred Partnership Interests represented by a newly designated preferred class of
Partnership Units of the Partnership with the rights, privileges and preferences set forth on Exhibit A hereto (the “Series
A Preferred Units”); and

 

WHEREAS, in accordance
with the authority granted to the General Partner in Section 11.01 of the Partnership Agreement, the General Partner desires to
amend the Partnership Agreement to reflect the creation of the Series A Preferred Units and the rights, privileges and preferences
thereof.

 

NOW THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby
agree as follows.

 

1.Pursuant
to Section 4.02 of the Partnership Agreement, the Partnership Agreement is hereby amended (i) to create the Series A Preferred
Units with the rights, privileges and preferences set forth on Exhibit A attached hereto and (ii) to issue 545,454 Series A Preferred
Units to the Special Limited Partner.

 

    	 

    	 

    

 

 

2.Section
5.01 of the Partnership Agreement is hereby amended to provide that, notwithstanding anything in the Partnership Agreement to the
contrary, allocations of Profit and Loss to holders of Series A Preferred Units in any year shall be limited as provided in Section
4(F) of Exhibit A attached hereto.

 

3.Section
5.02 of the Partnership Agreement is hereby amended to provide that, notwithstanding anything in the Partnership Agreement to the
contrary, distributions payable with respect to the Series A Preferred Units as provided in Section 4 of Exhibit A attached hereto
shall have priority over all of the other distributions to Partners pursuant to Section 5.02 of the Partnership Agreement.

 

4.Section
5.06 of the Partnership Agreement is hereby amended to provide that, notwithstanding anything in the Partnership Agreement to the
contrary, distributions payable with respect to the Series A Preferred Units as provided in Section 5 of Exhibit A attached hereto
shall have priority over all of the other distributions to Partners upon a Liquidation pursuant to Section 5.06 of the Partnership
Agreement.

 

5.The Partnership
Agreement is hereby amended to the fullest extent necessary to effect all of the matters contemplated by this Amendment, including
but not limited to the terms set forth on Exhibit A hereto, and including, without limitation, the voting rights of the holders
of Series A Preferred Units and restrictions on the General Partner and the Partnership that are set forth in Section 8 of Exhibit
A attached hereto. Except as specifically provided for in this Amendment, the provisions of the Partnership Agreement shall remain
in full force and effect.

 

6.The execution,
delivery and effectiveness of this Amendment shall not operate (a) as an amendment or modification of any provision, right or obligation
of any Partner under the Partnership Agreement except as specifically set forth in this Amendment or (b) as a waiver or consent
to any subsequent action or transaction.

 

7.This Amendment
shall be construed and enforced in accordance with and governed by the laws of the State of Delaware, without regard to the principles
of conflicts of laws thereof.

 

8.This Amendment
contains the entire understanding among the parties with respect to the subject matter hereof and supersedes any other prior written
or oral understanding or agreements among their with respect thereto.

 

9.This Amendment
may be executed in one or more counterparts, each of which shall be an original and all of which, when taken together, shall constitute
one and the same agreement.

 

10.This Amendment
shall become effective when each party hereto shall have received a counterpart hereof signed by all of the other parties hereto.

 

[SIGNATURE PAGE
TO FOLLOW]

 

    	 

    	 

    

IN WITNESS
WHEREOF, each of the undersigned has caused this Amendment to be duly executed on its behalf as of the date first above written.

 

 

	 	GENERAL PARTNER:
	 	 	 
	 	AMERICAN REALTY CAPITAL PROPERTIES, INC.
	 	 	 
	 	 	 
	 	By: 	/s/ Nicholas S. Schorsch
	 	 	Name: Nicholas S. Schorsch
	 	 	Title:   Chief Executive Officer
	 	 	 
	 	 	 
	 	SPECIAL LIMITED PARTNER:
	 	 	 
	 	AMERICAN REALTY CAPITAL PROPERTIES, INC.
	 	 	 
	 	 	 
	 	By:	/s/ Nicholas S. Schorsch
	 	 	Name: Nicholas S. Schorsch
	 	 	Title:   Chief Executive Officer

 

 

 

 

    	 

    	 

    

exhibit
A

 

Terms of
Series A Preferred Units

 

In accordance with
Section 4.02 of the Partnership Agreement, set forth below are the terms and conditions of the Series A Preferred Units established
by the Partnership on the date hereof.

 

1.Definitions.
For purposes of the Series A Preferred Units, the following terms shall have the meanings indicated in this Section 1. Capitalized
terms used but not otherwise defined in this Exhibit A shall have the meanings set forth in Article I of the Partnership Agreement,
as amended by the Amendment to which this Exhibit A is attached.

 

“Annual Distribution
Rate” shall have the meaning set forth in Section 4(A) to this Exhibit A.

 

“Articles
Supplementary” shall mean the Articles Supplementary classifying and designating the Series A Preferred Stock and fixing
distribution and other preferences and rights of the Series A Preferred Stock as filed with the State Department of Assessments
and Taxation of Maryland on May 10, 2012.

 

“Business
Day” shall mean any day other than Saturday, Sunday or a day on which state or federally chartered banking institutions
in New York, New York are not required to be open.

 

“Common Units”
shall mean any class or series of Partnership Interest that does not have a priority or preference in the payment of distributions
in the distribution of assets upon any Liquidation.

 

“Liquidation”
shall mean (A) a dissolution or winding up of the General Partner or the Partnership, whether voluntary or involuntary, (B) a consolidation
or merger of the General Partner or the Partnership with and into one or more entities which are not affiliates of the General
Partner or the Partnership which results in a Change in Control, or (C) a sale or transfer of all or substantially all of the Corporation’s
or the Partnership’s assets other than to an affiliate of the Corporation or the Partnership.

 

“Redemption
Date” shall have the meaning set forth in Section 7 to this Exhibit A.

 

“Series A
Distribution Payment Date” shall mean the last calendar day of each month, commencing on May 31, 2012; provided, however,
that if any Series A Distribution Payment Date falls on any day other than a Business Day, the distribution payment due on such
Series A Distribution Payment Date shall be paid on the first Business Day immediately following such Series A Distribution Payment
Date.

 

“Series A
Distribution Period” shall mean monthly distribution periods commencing on the first day of each month and ending on
and including the day preceding the first day of the next succeeding Series A Distribution Period (other than the initial Series
A Distribution Period, which shall commence on the date Series A Preferred Units are issued and sold and end on and include May
31, 2012).

 

    	 

    	 

    

 

 

“Series A
Junior Units” shall mean Common Units and any class or series of Partnership Units hereafter issued and outstanding that
are not Series A Senior Units, Series A Preferred Units or Series A Parity Units.

 

“Series A
Liquidation Preference” shall have the meaning set forth in Section 5(A) of this Exhibit A.

 

“Series A
Parity Units” shall mean any class or series of Partnership Units hereafter issued and outstanding, whether or not the
distribution rates thereof shall be different from those of the Series A Preferred Units, if the holders of such class or series
and the Series A Preferred Units shall be entitled to (i) the receipt of distributions in proportion to their respective amounts
of accrued and unpaid distributions per unit and (ii) amounts distributable upon Liquidation in proportion to their respective
liquidation preferences, in each case without preference or priority one over the other.

 

“Series A
Redemption Premium” shall equal one percent (1%) of the Series A Liquidation Preference.

 

“Series A
Senior Units” shall mean any class or series of Partnership Units hereafter issued and outstanding, if the holders of
such class or series shall be entitled to the receipt of distributions prior to a Liquidation or of amounts distributable upon
any event of Liquidation, in preference or priority to the holders of Series A Preferred Units.

 

2.Number
of Preferred Units and Designation. This series of preferred Partnership Interests shall be designated as the Series A Preferred
Partnership Units (the “Series A Preferred Units”). The number of units which shall initially constitute such
series shall be 545,454 units.

 

3.Ranking.
The Series A Preferred Units shall, with respect to the payment of distributions and the right to receive the Series A Liquidation
Preference upon a Liquidation, rank junior to all Series A Senior Units; rank senior to all Series A Junior Units, and rank in
parity with all Series A Parity Units.

 

4.Distributions.

 

(A)Subject
to the preferential rights of the holders of any Series A Senior Units, the holders of Series A Preferred Units shall be entitled
to receive, when, as and if declared by the General Partner, distributions payable in cash at a per unit rate per annum equal to
$0.77 (the “Annual Distribution Rate”). The distributions shall be cumulative from the day of issuance of any
such Series A Preferred Units and shall be payable monthly, when, as and if declared by the General Partner, in arrears, on each
Series A Distribution Payment Date. Each such distribution shall be payable to the holders of record of Series A Preferred Units
as they appear in the records of the Partnership at the close of business on such record date, which shall not be more than 30
days preceding such Series A Distribution Payment Dates thereof, as shall be fixed by the General Partner. Any distribution payment
made on Series A Preferred Units shall first be credited against the earliest accrued but unpaid distribution due with respect
to Series A Preferred Units which remains payable.

 

    	 

    	 

    

 

 

(B)The
amount of distributions payable for any Series A Distribution Period shall be computed by dividing the Annual Distribution Rate
by twelve. The amount of distributions payable for the initial Series A Distribution Period, or any other period shorter or longer
than a full Series A Distribution Period, on the Series A Preferred Units shall be computed on the basis of twelve 30-day months
and a 360-day year. Holders of Series A Preferred Units shall not be entitled to any distributions, whether payable in cash, property
or shares, in excess of cumulative distributions, as herein provided, on the Series A Preferred Units, plus any other amounts provided
herein.

 

(C)So long
as any Series A Preferred Units are outstanding, no distributions, except as described in the immediately following sentence, shall
be declared or paid or set apart for payment on any class or series of Series A Parity Units for any period unless full cumulative
distributions have been or contemporaneously are declared and paid or declared and a sum sufficient for the payment thereof set
apart for such payment on the Series A Preferred Units for all Series A Distribution Periods terminating on or prior to the distribution
payment date on such class or series of Series A Parity Units. When distributions are not paid in full or a sum sufficient for
such payment is not set apart, as aforesaid, all distributions authorized and declared upon Series A Preferred Units and all distributions
authorized and declared upon any other series or class or classes of Series A Parity Units shall be authorized and declared ratably
in proportion to the respective amounts of distributions accumulated and unpaid on the Series A Preferred Units and such class
or classes or series of Series A Parity Units.

 

(D)So long
as any Series A Preferred Units are outstanding, no distributions shall be declared and paid or set apart for payment on any class
or series of Series A Junior Units for any period unless full cumulative distributions on all outstanding Series A Preferred Units
and any other Series A Parity Units have been paid or set apart for payment for all past Series A Distribution Periods and sufficient
funds have been paid or set apart for the payment of the distribution for the current Series A Distribution Period with respect
to the Series A Preferred Units and any Series A Parity Units. When distributions are not paid in full or a sum sufficient for
such payment is not set apart, as aforesaid, all distributions declared upon Series A Preferred Units and all distributions declared
upon any other class or series of Series A Parity Units shall be declared ratably in proportion to the respective amounts of distributions
accumulated and unpaid on the Series A Preferred Units and accumulated and unpaid on such Series A Parity Units.

 

(E)No distributions
on Series A Preferred Units shall be declared by the General Partner or paid or set apart for payment by the Partnership at such
time as the terms and provisions of any agreement of the Partnership, including any agreement relating to its indebtedness, prohibits
such declaration, payment or setting apart for payment or provides that such declaration, payment or setting apart for payment
would constitute a breach thereof or a default thereunder, or if such declaration or payment shall be restricted or prohibited
by law.

 

(F)Subject
to any special allocations contained in Section 5.01 of the Partnership Agreement and prior to any allocations pursuant to Section
5.01(a) of the Partnership Agreement, if the Partnership has Profit for any taxable year or portion thereof, Partners holding Series
A Preferred Units shall be allocated Profit, and to the extent necessary, if the Partnership does not have Profit for a taxable
year or portion thereof, Partners holding Series A Preferred Units shall be allocated first, items of Partnership income, and second,
items of Partnership gain, to the extent of and until such Partners have received aggregate allocations pursuant to this Section
4(F) of Exhibit A equal to the aggregate amount actually distributed to such Partners pursuant to this Section 4 of Exhibit A;
provided, that no such items shall be allocated to the holders of Series A Preferred Units on account of any other distributions
(all such other distributions representing a return of contributed capital).

 

    	 

    	 

    

 

 

(G)Notwithstanding
anything in this Exhibit A to the contrary, the Partnership shall be permitted to make any distributions that are necessary in
order to maintain the status of the REIT as a real estate investment trust as defined in Section 856 of the United States Internal
Revenue Code of 1986, as amended.

 

5.Liquidation
Preference.

 

(A)In the
event of any Liquidation, subject to the prior preferences and other rights of any Series A Senior Units, before any payment or
distribution of the assets of the Partnership (whether capital or surplus) shall be made to or set apart for the holders of Series
A Junior Units, the holders of the Series A Preferred Units shall be entitled to receive (i) (A) Eleven Dollars ($11.00) per Series
A Preferred Unit plus an amount equal to all distributions (whether or not earned or declared) accrued and unpaid thereon to the
date of final distribution to such holder (the “Series A Liquidation Preference”) plus (B) the Series A Redemption
Premium or (ii) an amount per Series A Preferred Unit equal to the amount which would have been payable had each Series A Preferred
Unit been converted into Common Units immediately prior to such Liquidation; but such holders shall not be entitled to any further
payment. If, upon any Liquidation, the assets of the Partnership, or proceeds thereof, distributable among the holders of the Series
A Preferred Units shall be insufficient to pay in full the preferential amount aforesaid and liquidating payments on any other
units of any class or series of Series A Parity Units, then such assets, or the proceeds thereof, shall be distributed among the
holders of Series A Preferred Units and any such other Series A Parity Units ratably in accordance with the amounts that would
be payable on such Series A Preferred Units and any such other Series A Parity Units if all amounts payable thereon were paid in
full.

 

(B)Subject
to the rights of the holders of any Series A Parity Units or Series A Senior Units, upon any Liquidation of the Partnership, after
payment shall have been made in full to the holders of the Series A Preferred Units, as provided in this Section 5, the holders
of Series A Preferred Units shall have no other claim to the remaining assets of the Partnership and any other series or class
or classes of Series A Junior Units shall, subject to the respective terms and provisions (if any) applying thereto, be entitled
to receive any and all assets remaining to be paid or distributed, and the holders of the Series A Preferred Units and Series A
Parity Units shall not be entitled to share therein.

 

6.Conversion.

 

(A)

Unless such Series A Preferred Units have previously been redeemed pursuant to Section 7 hereof, at such time as there occurs a
conversion of Shares of Series A Preferred Stock for REIT Shares, a corresponding amount of Series A Preferred Units shall automatically
convert into OP Units, on a one-to-one basis (subject to appropriate adjustment in the event of any dividend, split, combination
or other similar recapitalization with respect to the OP Units) on terms substantially similar to the terms for conversion of Shares
of Series A Preferred Stock for REIT Shares contained in the Articles Supplementary.

 

    	 

    	 

    
 

 

(B)Each
automatic conversion of Series A Preferred Units for OP Units shall be deemed to have been effected at such time as the concurrent
conversion of the corresponding Shares of Series A Preferred Stock for REIT Shares shall have been deemed effected in accordance
with the Charter, and Exhibit A to the Partnership Agreement shall be amended by the General Partner to reflect such conversion.

 

7.Redemption.If
the General Partner redeems or otherwise purchases any Shares of Series A Preferred Stock, the Partnership shall redeem a corresponding
number of Series A Preferred Units, on the date of redemption or other purchase of Shares of Series A Preferred Stock by the General
Partner (“Redemption Date”), at a redemption price per Series A Preferred Unit equal to the Series A Liquidation
Preference plus the Series A Redemption Premium, and the redemption price shall be payable in cash. Any redemption of Series A
Preferred Units shall be deemed to occur on the Redemption Date immediately prior to the related redemption or other purchase of
Shares of Series A Preferred Stock.

 

8.Voting.

 

(A)Other
than as expressly provided in below in this Section 8, the Series A Preferred Units shall not have any voting rights or powers,
and the consent of the holders thereof, shall not be required for the taking of any Partnership action.

 

(B)As long
as any of the Series A Preferred Units shall remain outstanding, the Partnership shall not, and the General Partner shall not have
the authority to cause the Partnership to, take any of the following actions without the prior written consent of holders owning
at least sixty-six and two-thirds percent (66 and 2/3%) of the Series A Preferred Units then issued and outstanding, voting as
a single class, in person or by proxy:

 

(1)(x)Effectuate
amendments to the Partnership Agreement (other than amendments to this Exhibit A) that would materially adversely affect the terms
and conditions of, or the voting powers, rights or preferences of the holders of the Series A Preferred Units or (y) effectuate
amendments to this Amendment that would adversely affect the terms and conditions of, or the rights, privileges or preferences
of the holders of the Series A Preferred Units; provided, however, that amendments to the Partnership Agreement so
as to authorize or create or to increase the number of authorized units of any Series A Senior Units, Series A Parity Units or
Series A Junior Units shall not be deemed to materially adversely affect the voting powers, rights or preferences of the Series
A Preferred Units.

 

9.Transfers.
Subject to the provisions of Section 9.02(b), (c) and (d) of the Partnership Agreement, no Series A Preferred Unit shall be transferred,
sold, assigned, conveyed, gifted, pledged, encumbered, hypothecated, mortgaged, exchanged or otherwise disposed of by law or otherwise
(collectively, a “Transfer”) without the prior written consent of the General Partner, which may be withheld
or denied by the General Partner it is sole and absolute discretion. Notwithstanding anything in the Partnership Agreement to the
contrary, any Transfer in contravention of the terms of this Exhibit A shall be void and ineffectual and shall not be binding upon,
or recognized by the Partnership.

    	 

    	 

    
 

10.Reserved.

 

11.Miscellaneous.

 

(A)Series
A Preferred Units will not have any designations, preferences, conversion or other rights, voting powers, restrictions, limitations
as to distributions, qualifications or terms and conditions of redemption, other than those specifically set forth herein, in the
Partnership Agreement, and as may be provided under applicable law.

 

(B)The
headings of the various subdivisions herein are for convenience only and will not affect the meaning if interpretation of any of
the provisions herein.

 

(C)The
preferences, conversion and other rights, voting powers, restrictions, limitations as to distributions, qualifications and terms
and conditions of redemption of the Series A Preferred Units may be waived, and any of such provisions of the Series A Preferred
Units may be amended, with the approval of holders of at least sixty-six and two-thirds percent (66 and 2/3%) of the issued outstanding
Series A Preferred Units, voting as a single class in person or by proxy.

 

12.Severability
of Provisions. Whenever possible, each provision hereof shall be interpreted in a manner as to be effective and valid under
applicable law, but if any provision hereof is held to be prohibited by or invalid under applicable law, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without invalidating or otherwise adversely affecting the remaining
provisions hereof. If a court of competent jurisdiction should determine that a provision hereof would be valid or enforceable
if a period of time were extended or shortened or a particular percentage were increased or decreased, the such court may make
such change as shall be necessary to render the provision in question effective and valid under applicable law.second AMENDMENT

to

amended and restated

agreement of limited partnership

of

ARC PROPERTIES OPERATING PARTNERSHIP, L.P.

 

THIS SECOND AMENDMENT
TO AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF ARC PROPERTIES OPERATING PARTNERSHIP, L.P. (this “Amendment”)
is made as of May 31, 2012 by and among American Realty Capital Properties, Inc., a Maryland corporation (the “REIT”),
in its capacity as the General Partner of ARC Properties Operating Partnership, L.P., a Delaware limited partnership (the “Partnership”).
Capitalized terms used but not otherwise defined in this Amendment shall have the meanings given to such terms in the Amended and
Restated Agreement of Limited Partnership of the Partnership, dated as of September 6, 2011, by and among the REIT and the other
parties signatory thereto (the “Partnership Agreement”).

 

witnesseth:

 

WHEREAS, on the date
hereof, the entities listed on Exhibit B, as assignees of Setzer Properties, LLC, is being issued 576,376 OP Units in connection
with the contribution of certain properties to the Partnership; and

 

WHEREAS, pursuant to
Section 4.02 of the Partnership Agreement, the General Partner has the authority to amend Exhibit A to the Partnership Agreement
to reflect such issuance of OP Units; and

 

NOW THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Agreement hereby
agree as follows.

 

1.                 
Pursuant to Section 4.02 of the Partnership Agreement, the Partnership Agreement is hereby amended to reflect the issuance
of 576,376 OP Units in the amounts shown and to the entities listed on Exhibit B.

 

2.                 
Exhibit A to the Partnership Agreement is hereby amended and restated as set forth as Exhibit A to this Amendment.

 

3.                 
Except as specifically provided for in this Amendment, the provisions of the Partnership Agreement shall remain in full
force and effect.

 

4.                 
The execution, delivery and effectiveness of this Amendment shall not operate (a) as an amendment or modification of any
provision, right or obligation of any Partner under the Partnership Agreement except as specifically set forth in this Amendment
or (b) as a waiver or consent to any subsequent action or transaction.

 

    	 

    	 

    

             
 

 

5.                 
This Amendment shall be construed and enforced in accordance with and governed by the laws of the State of Delaware, without
regard to the principles of conflicts of laws thereof.

 

6.                 
This Amendment contains the entire understanding among the parties with respect to the subject matter hereof and supersedes
any other prior written or oral understanding or agreements among them with respect thereto, other than the Agreement for Acquisition
and Transfer of Real Property, effective as of May 7, 2012, between the Partnership and Setzer Properties, LLC.

 

[SIGNATURE PAGE
TO FOLLOW]

 

    	 

    	 

    

IN WITNESS
WHEREOF, the undersigned has caused this Amendment to be duly executed on its behalf as of the date first above written.

 

 

	 	GENERAL PARTNER:
	 	 	 
	 	AMERICAN REALTY CAPITAL PROPERTIES, INC.
	 	 	 
	 	 	 
	 	By: 	/s/ Nicholas S. Schorsch
	 	 	Name: Nicholas S. Schorsch
	 	 	Title:   Chief Executive Officer

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