Document:

EX-10.1

 Exhibit 10.1 

POTBELLY CORPORATION 2019 LONG-TERM INCENTIVE PLAN 

(As Amended and Restated Effective June 24, 2020) 

1.      GENERAL 

1.1    Purposes. Potbelly Corporation (the “Company”) has established the Potbelly Corporation 2019 Long-Term Incentive
Plan (the “Plan”) to: (a) align the interests of the Company’s stockholders and the recipients of Awards under this Plan by increasing the proprietary interest of such recipients in the Company’s growth and success,
(b) advance the interests of the Company by attracting and retaining qualified employees, Outside Directors and other persons providing services to the Company and/or to its Related Companies, and (c) motivate Participants to act in the
long-term best interests of the Company’s stockholders. The following provisions constitute an amendment and restatement of the Plan, effective June 24, 2020. 

1.2    Definitions. For purposes of the Plan, the following definitions shall apply: 

 

	 	(a)	 “Agreement” shall have the meaning set forth in subsection 6.8 of the Plan. 

 

	 	(b)	 “Approval Date” means the date on which the Plan, as amended and restated as set forth herein, is
approved by the Company’s stockholders. 

  

	 	(c)	 “Award” shall mean an award under Section 3 or 4 of the Plan. 

 

	 	(d)	 “Board” shall mean the Board of Directors of the Company. 

 

	 	(e)	 “Cause” shall have the meaning set forth in an employment agreement between the Company or a Related
Company and the Participant or, if no such agreement exists, “Cause” shall mean (i) the willful failure to substantially perform the duties assigned by the Company or a Related Company (other than a failure resulting from the
Participant’s Disability), (ii) the willful engaging in conduct which is injurious to the Company or any of its Related Companies or the Company’s stockholders, monetarily or otherwise, including conduct that, in the reasonable judgment of
the Board, no longer conforms to the standard of the Company’s executives or employees, (iii) any act of dishonesty, commission of a felony, or a violation of any statutory or common law duty of loyalty to the Company or any of its Related
Companies. 

  

	 	(f)	 “Change in Control” means the first to occur of any of the following: 

 

	 	(i)	 the consummation of a transaction, approved by the stockholders of the Company, to merge the Company with or
into or consolidate the Company with another entity or sell or otherwise dispose of all or substantially all of its assets, or the stockholders of the Company adopt a plan of liquidation, provided, however, that a Change in Control shall not be
deemed to have occurred by reason of a transaction, or a substantially concurrent or otherwise related series of transactions, upon the completion of which 50% or more of the beneficial ownership of the voting power of the Company, the surviving
corporation or corporation directly or indirectly controlling the Company or the surviving corporation, as the case may be, is held by the same persons (although not necessarily in the same proportion) as held the beneficial ownership of the voting
power of the Company immediately prior to the transaction or the substantially concurrent or otherwise related series of transactions, except that upon the completion thereof, employees or employee benefit plans of the Company may be a new holder of
such beneficial ownership; or 

  

	 	(ii)	 the “beneficial ownership” (as defined in Rule 13d-3 under
the Exchange Act) of securities representing 50% or more of the combined voting power of the Company is acquired, other than from the Company, by any “person” as defined in Sections 13(d) and 14(d) of the Exchange Act (other than any
trustee or other fiduciary holding securities under an employee benefit or other similar equity plan of the Company); or 

  
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	 	(iii)	 at any time during any period of two consecutive years, individuals who at the beginning of such period were
members of the Board cease for any reason to constitute at least a majority thereof (unless the election, or the nomination for election by the Company’s stockholders, of each new director was approved by a vote of at least two-thirds of the directors still in office at the time of such election or nomination who were directors at the beginning of such period). 

 

	 	(g)	 “Code” shall mean the Internal Revenue Code of 1986, as amended. 

 

	 	(h)	 “Committee” shall have the meaning set forth in subsection 5.1 of the Plan. 

 

	 	(i)	 “Common Stock” shall mean a share of common stock, $.01 par value, of the Company.

  

	 	(j)	 “Company” shall have the meaning set forth in subsection 1.1 of the Plan. 

 

	 	(k)	 “Disability” shall mean that an individual is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve months. Whether an individual has a
“Disability” shall be determined in a manner that is consistent with section 22(e)(3) of the Code. 

  

	 	(l)	 “Effective Date” shall have the meaning set forth in subsection 6.1 of the Plan.

  

	 	(m)	 “Eligible Persons” shall mean any officer, director, employee, consultant, independent contractor or
agent of the Company or any Related Company and persons who are expected to become an officer, director, employee, consultant, independent contractor or officer of the Company or any Related Company (but effective no earlier than the date on which
such person begins to provide services to the Company or any Related Company), including, in each case, directors who are not employees of the Company or a Related Company. 

 

	 	(n)	 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

 

	 	(o)	 “Exercise Price” shall have the meaning set forth in subsection 3.2 of the Plan.

  

	 	(p)	 “Expiration Date” shall have the meaning set forth in subsection 3.9 of the Plan.

  

	 	(q)	 “Fair Market Value” of a share of Common Stock shall mean, as of any date, the value determined in
accordance with the following rules: 

  

	 	(i)	 If the Common Stock is at the time listed or admitted to trading on any stock exchange, then the Fair Market
Value shall be the closing price per share of Common Stock on the principal exchange on which the Common Stock is then listed or admitted to trading on the last trading day preceding the date on which Fair Market Value is to be determined or, if no
such sale is reported on that date, on the last preceding date on which a sale was so reported. 

  

	 	(ii)	 If the Common Stock is not at the time listed or admitted to trading on a stock exchange, the Fair Market Value
shall be the closing average of the closing bid and asked price of a share of Common Stock on the date in question in the over-the-counter market, as such price is
reported in a publication of general circulation selected by the Committee and regularly reporting the market price of Common Stock in such market. 

  

	 	(iii)	 If the Common Stock is not listed or admitted to trading on any stock exchange or traded in the over-the-counter market, the Fair Market Value shall be as determined by the Committee in good faith. 

For purposes of determining the Fair Market Value of Common Stock that is sold pursuant to a cashless exercise program, Fair Market Value shall
be the price at which such Common Stock is sold. 
  

	 	(r)	 “Full Value Award” shall have the meaning set forth in Section 4 of the Plan.

  

	 	(s)	 “Incentive Stock Option” means an Option that is intended to satisfy the requirements applicable to
an “incentive stock option” described in section 422 of the Code. 

  
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	 	(t)	 “Non-Qualified Stock Option” means an Option that is not
intended to be an Incentive Stock Option. 

  

	 	(u)	 “Option” means an Award under the Plan that entitles the Participant to purchase shares of Common
Stock at an Exercise Price established by the Committee at the time the Option is granted. 

  

	 	(v)	 “Outside Director” means a director of the Company who is not an officer or employee of the Company
or any Related Company. 

  

	 	(w)	 “Participant” shall have the meaning set forth in subsection 1.3 of the Plan. 

 

	 	(x)	 “Plan” shall have the meaning set forth in subsection 1.1 of the Plan. 

 

	 	(y)	 “Prior Approval Date” shall mean May 16, 2019. 

 

	 	(z)	 “Prior Plan” shall mean the Potbelly Corporation 2013 Long-Term Incentive Plan.

  

	 	(aa)	 “Recycled Shares” shall have the meaning set forth in paragraph 2.1(b)(ii) of the Plan.

  

	 	(bb)	 “Related Company” shall mean any corporation, partnership, joint venture or other entity during any
period in which (i) the Company, directly or indirectly, owns at least 50% of the combined voting power of all classes of stock of such entity or at least 50% of the ownership interests in such entity or (ii) such entity, directly or
indirectly, owns at least 50% of the combined voting power of all classes of stock of the Company. 

  

	 	(cc)	 “SAR” means the grant of an Award under the Plan that entitles the Participant to receive, in cash or
shares of Common Stock (as determined in accordance with the terms of the Plan) value equal to the excess of: (i) the Fair Market Value of a specified number of shares of Common Stock at the time of exercise; over (ii) an Exercise Price
established by the Committee at the time of grant. 

  

	 	(dd)	 “Subsidiary” shall mean a corporation that is a subsidiary of the Company within the meaning of
section 424(f) of the Code. 

  

	 	(ee)	 “Substitute Award” means an Award granted or shares of Stock issued by the Company in assumption of,
or in substitution or exchange for, an award previously granted, or the right or obligation to make a future award, in all cases by a company acquired by the Company or any Related Company or with which the Company or any Related Company combines.
In no event shall the issuance of Substitute Awards change the terms of such previously granted awards such that the change, if applied to a current Award, would be prohibited under subsection 3.7. 

 

	 	(ff)	 “Termination Date” means the date on which a Participant both ceases to be an employee of the Company
and the Related Companies and ceases to perform material services for the Company and the Related Companies (whether as a director or otherwise), regardless of the reason for the cessation; provided that a “Termination Date” shall not be
considered to have occurred during the period in which the reason for the cessation of services is a leave of absence approved by the Company or the Related Company which was the recipient of the Participant’s services; and provided, further
that, with respect to an Outside Director, “Termination Date” means date on which the Outside Director’s service as an Outside Director terminates for any reason. 

1.3     Participation. For purposes of the Plan, a “Participant” is any person to whom an Award is granted under the
Plan. Subject to the terms and conditions of the Plan, the Committee shall determine and designate, from time to time, from among the Eligible Persons those persons who will be granted one or more Awards under the Plan and, subject to the terms and
conditions of the Plan, a Participant may be granted any Award permitted under the provisions of the Plan and more than one Award may be granted to a Participant. Except as otherwise agreed by the Company and the Participant, or except as otherwise
provided in the Plan, an Award under the Plan shall not affect any previous Award under the Plan or an award under any other plan maintained by the Company or any of the Related Companies. No Eligible Person or other person shall have any claim to
be granted any Award, and there is no obligation for uniformity of treatment of Eligible Persons, or holders or beneficiaries of Awards, or of multiple Awards granted to an Eligible Person. The terms and conditions of Awards and the Committee’s

  
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determinations and interpretations with respect thereto need not be the same with respect to each Eligible Person (whether or not such Eligible Persons are similarly situated). 

2.      SHARES RESERVED AND LIMITATIONS 

2.1    Shares Available and Other Amounts Subject to the Plan. The shares of Common Stock for which Awards may be granted under the
Plan shall be subject to the following: 
  

	 	(a)	 Shares of Common Stock with respect to which Awards may be made under the Plan shall be currently authorized
but unissued shares of Common Stock or currently held or subsequently acquired by the Company as treasury shares (or a combination thereof), including shares purchased in the open market or in private transactions. 

 

	 	(b)	 Subject to the provisions of subsection 2.2, the number of shares of Common Stock that may be issued with
respect to Awards under the Plan shall be equal to the sum of (1) 900,000 shares plus (2) the number of shares of Common Stock available for issuance under the Plan and the Prior Plan as of the Prior Approval Date (and immediately prior to the
Prior Approval Date). Notwithstanding the foregoing: 

  

	 	(i)	 Shares of Common Stock covered by an Award shall only be counted as used to the extent that they are actually
used. A share of Common Stock issued in connection with any Award under the Plan shall reduce the total number of shares of Common Stock available for issuance under the Plan by one. 

 

	 	(ii)	 Any shares of Common Stock (A) that are subject to Awards granted under the Plan or (B) that are
subject to awards granted under the Prior Plan that are outstanding on the Approval Date (and immediately prior to approval), in any case that terminate by reason of expiration, forfeiture, cancellation, or otherwise, without the issuance of such
shares, or that are settled in cash, shall thereafter again be available for issuance under the Plan (the shares described in subparagraphs (A) and (B), collectively, “Recycled Shares”). Recycled Shares shall be added back to the
number of shares of Common Stock reserved for issuance under the Plan on a one for one basis; provided, however, that (A) Recycled Shares attributable to any Full Value Award granted under the Plan and (B) Recycled Shares attributable to
any Full Value Awards granted under the Prior Plan, in either case, shall be added back on the same basis that such award reduced the number of total shares available under the Plan or Prior Plan, as applicable, at the time such award was granted.

  

	 	(c)	 Notwithstanding any other provision of the Plan, following shares of Common Stock may not again be made
available for issuance under the Plan pursuant to this subsection 2.1: (i) shares of Common Stock not issued or delivered as a result of the net settlement of an outstanding Award; (ii) shares delivered to or withheld by the Company to pay the
Exercise Price of an Option or SAR or to pay the withholding taxes with respect to an Award; (iii) shares of Common Stock repurchased on the open market with the proceeds of the Exercise Price of an Option; or (iv) shares subject to
Substitute Awards. 

  

	 	(d)	 Except as expressly provided by the terms of this Plan, the issue by the Company of stock of any class, or
securities convertible into shares of stock of any class, for cash or property or for labor or services, either upon direct sale, upon the exercise of rights or warrants to subscribe therefor or upon conversion of stock or obligations of the Company
convertible into such stock or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to, Awards then outstanding hereunder. 

 

	 	(e)	 To the extent provided by the Committee, any Award may be settled in cash rather than in Common Stock.

  

	 	(f)	 Substitute Awards shall not reduce the number of shares of Common Stock that may be issued under the Plan.

  

	 	(g)	 Subject to the terms and conditions of the Plan, the maximum number of shares of Common Stock that may be
delivered to or on behalf of Participants under the Plan with respect to Incentive Stock Options 

  
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shall be 1,200,000; provided, however, that to the extent that shares not delivered must be counted against this limit as a condition of satisfying the rules applicable to Incentive Stock
Options, such rules shall apply to the limit on Incentive Stock Options granted under the Plan. 

 2.2    Adjustments
to Shares of Common Stock. In the event of a stock dividend, stock split, reverse stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, exchange of shares, sale of assets or subsidiaries, combination, or other corporate transaction that affects the Common Stock such that the Committee determines, in its sole discretion, that an adjustment
is warranted in order to preserve the benefits or prevent the enlargement of benefits of Awards under the Plan, the Committee shall, in the manner it determines equitable in its sole discretion, (a) adjust the number and kind of shares which
may be delivered under the Plan (including adjustments to the number and kind of shares that may be granted to an individual during any specified time as described in subsection 2.1); (b) adjust the number and kind of shares subject to
outstanding Awards; (c) adjust the Exercise Price of outstanding Options and SARs; and (d) make any other adjustments that the Committee determines to be equitable (which may include, without limitation, (i) replacement of Awards with
other awards which the Committee determines have comparable value and which are based on stock of a company resulting from the transaction, and (ii) cancellation of the Award in return for cash payment of the current value of the Award,
determined as though the Award is fully vested at the time of payment, provided that in the case of an Option or SAR, the amount of such payment may be the excess of value of the shares of Common Stock subject to the Option or SAR at the time of the
transaction over the exercise price). 
 2.3    Change in Control. In the event that (a) a Participant is employed or
otherwise in service on the date of a Change in Control and the Participant’s employment or service, as applicable, is terminated by the Company or the successor to the Company (or a Related Company which is his or her employer) for reasons
other than Cause within 24 months following the Change in Control, or (b) the Plan is terminated by the Company or its successor following a Change in Control without provision for the assumption, continuation or substitution of outstanding
Awards hereunder, all Options, SARs and related Awards which have not otherwise expired shall become immediately exercisable and all other Awards shall become fully vested; provided, however, that all Awards with conditions and restrictions relating
to the attainment of performance goals shall become vested assuming the higher of (A) achievement of all relevant performance goals at the target level of performance (pro rated based upon the length of time within the performance period that
has elapsed prior to the Change in Control) or (B) actual achievement of the performance goals as of the date of the Change in Control. For purposes of this subsection 2.3, a Participant’s employment or service shall be deemed to be
terminated by the Company or the successor to the Company (or a Related Company) if the Participant terminates employment or service after (i) a substantial adverse alteration in the nature of the Participant’s status or responsibilities
from those in effect immediately prior to the Change in Control, or (ii) a material reduction in the Participant’s annual base salary and target bonus, if any, or, in the case of a Participant who is an Outside Director, the
Participant’s annual compensation, as in effect immediately prior to the Change in Control. If, upon a Change in Control, awards in other shares or securities are substituted for outstanding Awards pursuant to subsection 2.2, and immediately
following the Change in Control the Participant becomes employed by (if the Participant was an employee immediately prior to the Change in Control) or a board member of (if the Participant was an Outside Director immediately prior to the Change in
Control) the entity into which the Company merged, or the purchaser of substantially all of the assets of the Company, or a successor to such entity or purchaser, the Participant shall not be treated as having terminated employment or service for
purposes of this subsection 2.3 until such time as the Participant terminates employment or service with the merged entity or purchaser (or successor), as applicable. 

2.4    Limits Applicable to Non-Employee Directors. Notwithstanding any other provision of
the Plan to the contrary, the aggregate value of all Awards granted under the Plan to any Outside Director for any calendar year shall not exceed (a) $300,00 in total value or (b) in the event such Outside Director is first appointed or elected
to the Board in such calendar year, $400,000 in total value. For purposes of the foregoing limitation, the value of an Award shall be its grant date fair value, as determined in accordance with ASC 718 or successor provision but excluding the impact
of estimated forfeitures related to service-based vesting conditions. 

  
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 3.      STOCK OPTIONS AND STOCK APPRECIATION RIGHTS 

3.1    Options and SARs. The Committee shall designate the Participants to whom Options or SARs are to be granted under this
Section 3 and shall determine the number of shares of Common Stock subject to each such Option or SAR and the other terms and conditions thereof, not inconsistent with the Plan. Without limiting the generality of the foregoing, the Committee
may not grant dividend equivalents (current or deferred) with respect to any Option or SAR granted under the Plan. An Option will be deemed to be a Non-Qualified Option unless it is specifically designated by
the Committee as an Incentive Stock Option. 
 3.2    Exercise Price. The “Exercise Price” of each Option and SAR
granted under this Section 3 shall be established by the Committee at the time the Option or SAR is granted; provided, however, that in no event shall such price be less than 100% of the Fair Market Value of a share of Common Stock on the date
of grant (or, if greater, the par value of a share of Common Stock). 
 3.3    Limits on Incentive Stock Options. If the
Committee grants Incentive Stock Options, then to the extent that the aggregate fair market value of shares of Common Stock with respect to which Incentive Stock Options are exercisable for the first time by any individual during any calendar year
(under all plans of the Company and all Subsidiaries) exceeds $100,000, such Options shall be treated as Non-Qualified Stock Options to the extent required by section 422 of the Code. Any Option that is
intended to constitute an Incentive Stock Option shall satisfy any other requirements of section 422 of the Code and, to the extent such Option does not satisfy such requirements, the Option shall be treated as a
Non-Qualified Stock Option. 
 3.4    Term and Exercisability. Except as otherwise
expressly provided in the Plan, an Option or SAR granted under the Plan shall be exercisable in accordance with the following: 
  

	 	(a)	 The terms and conditions relating to exercise and vesting of an Option or SAR shall be established by the
Committee to the extent not inconsistent with the Plan, and may include, without limitation, conditions relating to completion of a specified period of service, achievement of performance standards prior to exercise or the achievement of Common
Stock ownership guidelines by the Participant. 

  

	 	(b)	 No Option or SAR may be exercised by a Participant prior to the date on which it is exercisable (or vested) or
after the Expiration Date applicable thereto. In no event shall an Option or SAR expire later than the tenth anniversary of the grant date of such Option or SAR. 

3.5    Payment of Exercise Price. The payment of the Exercise Price of an Option granted under this Section 3 shall be subject
to the following: 
  

	 	(a)	 Subject to the following provisions of this subsection 3.5, the full Exercise Price of each share of Common
Stock purchased upon the exercise of any Option shall be paid at the time of such exercise (except that, in the case of an exercise through the use of cash equivalents (including broker-assisted cashless exercise), payment may be made as soon as
practicable after the exercise) and, as soon as practicable thereafter, a certificate representing the shares of Common Stock so purchased shall be delivered to the person entitled thereto or shares of Common Stock so purchased or such shares of
Common Stock shall otherwise be registered in the name of the Participant on the records of the Company’s transfer agent and credited to the Participant’s account. 

 

	 	(b)	 Subject to applicable law, the Exercise Price shall be payable in cash or cash equivalents (including
broker-assisted cashless exercise), by tendering, by actual delivery or by attestation (including by means of a net exercise), shares of Common Stock valued at Fair Market Value as of the day of exercise or by a combination thereof; provided,
however, that shares of Common Stock may not be used to pay any portion of the Exercise Price unless the holder thereof has good title, free and clear of all liens and encumbrances. 

  
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 3.6    Post-Exercise Limitations. The Committee, in its discretion, may impose
such restrictions on shares of Common Stock acquired pursuant to the exercise of an Option as it determines to be desirable, including, without limitation, restrictions relating to disposition of the shares and forfeiture restrictions based on
service, performance, Common Stock ownership by the Participant, conformity with the Company’s recoupment or clawback policies as in effect from time to time, compliance with restrictive covenants, and such other factors as the Committee
determines to be appropriate. 
 3.7    No Repricing. Except for either adjustments pursuant to subsection 2.2 of the Plan
(relating to the adjustment of shares), or reductions of the exercise price approved by the Company’s stockholders, the exercise price for any outstanding Option or SAR may not be decreased after the date of grant nor may an outstanding Option
or SAR granted under the Plan be surrendered to the Company as consideration for the grant of a replacement Option or SAR with a lower exercise price or a Full Value Award. Except as approved by the Company’s stockholders, in no event shall any
Option or SAR granted under the Plan be surrendered to the Company in consideration for a cash payment if, at the time of such surrender, the exercise price of the Option or SAR is greater than the then current Fair Market Value of a share of Common
Stock. In addition, no repricing of an Option shall be permitted without the approval of the Company’s stockholders if such approval is required under the rules of any stock exchange on which the Common Stock is listed. 

3.8    Tandem Common Stock Options and SARs. A Option may but need not be in tandem with an SAR, and an SAR may but need not be in
tandem with an Option (in either case, regardless of whether the original award was granted under this Plan or another plan or arrangement). If an Option is in tandem with an SAR, the exercise price of both the Option and SAR shall be the same, and
the exercise of the Option or SAR with respect to a share of Common Stock shall cancel the corresponding tandem SAR or Option right with respect to such share. If an SAR is in tandem with an Option but is granted after the grant of the Option, or if
an Option is in tandem with an SAR but is granted after the grant of the SAR, the later granted tandem Award shall have the same exercise price as the earlier granted Award, but the exercise price for the later granted Award may not be less than the
Fair Market Value of the Common Stock at the time of such grant. 
 3.9    Expiration Date. The “Expiration Date” with
respect to an Option or SAR means the date established as the Expiration Date by the Committee at the time of the grant (as the same may be modified in accordance with the terms of the Plan); provided, however, that the Expiration Date with respect
to any Option or SAR shall not be later than the earliest to occur of the ten-year anniversary of the date on which the Option or SAR is granted or the following dates, unless the following dates are
determined otherwise by the Committee: 
  

	 	(a)	 if the Participant’s Termination Date occurs by reason of death or Disability, the one-year anniversary of such Termination Date; 

  

	 	(b)	 if the Participant’s Termination Date occurs for reasons other than death or Disability or Cause, the
three-month anniversary of such Termination Date; or 

  

	 	(c)	 if the Participant’s Termination Date occurs for Cause, the day preceding the Termination Date.

 In no event shall the Expiration Date of an Option or SAR be later than the ten-year
anniversary of the date on which the Option or SAR is granted (or such shorter period required by law or the rules of any stock exchange on which the Common Stock is listed). 

4.      FULL VALUE AWARDS 
 A
“Full Value Award” is a grant of one or more shares of Common Stock or a right to receive one or more shares of Common Stock in the future (including restricted stock, restricted stock units, performance shares, and performance units)
which is contingent on continuing service, the achievement of performance objectives during a specified period performance, or other restrictions as determined by the Committee or in consideration of a Participant’s previously performed
services or surrender or other compensation that may be due. The grant of 

  
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Full Value Awards may also be subject to such other conditions, restrictions and contingencies, as determined by the Committee, including provisions relating to dividend or dividend equivalent
rights and deferred payment or settlement. Notwithstanding the foregoing, no dividends or dividend equivalent rights will be paid or settled on Full Value Awards that have not been earned or vested. 

5.      COMMITTEE 

5.1    Administration. The authority to control and manage the operation and administration of the Plan shall be vested in the
committee described in subsection 5.2 (the “Committee”) in accordance with this Section 5. If the Committee does not exist, or for any other reason determined by the Board, the Board may take any action under the Plan that would
otherwise be the responsibility of the Committee. 
 5.2    Selection of Committee. So long as the Company is subject to
Section 16 of the Exchange Act, the Committee shall be selected by the Board and shall consist of not fewer than two members of the Board or such greater number as may be required for compliance with Rule
16b-3 issued under the Exchange Act and shall be comprised of persons who are independent for purposes of applicable stock exchange listing requirements. Notwithstanding any other provision of the Plan to the
contrary, with respect to any Awards to Outside Directors, the Committee shall be the Board. 
 5.3    Powers of Committee. The
authority to manage and control the operation and administration of the Plan shall be vested in the Committee, subject to the following: 
  

	 	(a)	 Subject to the provisions of the Plan, the Committee will have the authority and discretion to (i) select
Eligible Persons who will receive Awards under the Plan, (ii) determine the time or times of receipt of Awards, (iii) determine the types of Awards and the number of shares of Common Stock covered by the Awards, (iv) establish the
terms, conditions, performance targets, restrictions, and other provisions of Awards, (v) modify the terms of, cancel or suspend Awards, (vi) reissue or repurchase Awards, and (vii) accelerate the exercisability or vesting of any
Award. In making such Award determinations, the Committee may take into account the nature of services rendered by the respective employee, the individual’s present and potential contribution to the Company’s or a Related Company’s
success and such other factors as the Committee deems relevant. 

  

	 	(b)	 Subject to the provisions of the Plan, the Committee will have the authority and discretion to conclusively
interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, to determine the terms and provisions of any agreements made pursuant to the Plan and to make all other determinations that may be necessary or
advisable for the administration of the Plan. 

  

	 	(c)	 Any interpretation of the Plan by the Committee and any decision made by it under the Plan is final and binding
on all persons. 

  

	 	(d)	 Except as otherwise expressly provided in the Plan, where the Committee is authorized to make a determination
with respect to any Award, such determination shall be made at the time the Award is made, except that the Committee may reserve the authority to have such determination made by the Committee in the future (but only if such reservation is made at
the time the Award is granted, is expressly stated in the Agreement reflecting the Award and is permitted by applicable law). 

 Without
limiting the generality of the foregoing, it is the intention of the Company that, to the extent that any provisions of this Plan or any Awards granted hereunder are subject to section 409A of the Code, the Plan and the Awards comply with the
requirements of section 409A of the Code and that the Plan and Awards be administered in accordance with such requirements and the Committee shall have the authority to amend any outstanding Awards to conform to the requirements of section 409A.

 5.4    Delegation by Committee. Except to the extent prohibited by applicable law or the rules of any stock exchange on which
the Common Stock is listed, the Committee may allocate all or any portion of its 

  
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responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any person or persons selected by it. Any such allocation or
delegation may be revoked by the Committee at any time. 
 5.5    Information to be Furnished to Committee. The Company and the
Related Companies shall furnish the Committee such data and information as may be required for it to discharge its duties. The records of the Company and the Related Companies as to an employee’s or Participant’s employment or provision of
services, termination of employment or cessation of the provision of services, leave of absence, reemployment and compensation shall be conclusive on all persons unless determined to be incorrect. Participants and other persons entitled to benefits
under the Plan must furnish the Committee such evidence, data or information as the Committee considers desirable to carry out the terms of the Plan. 

5.6    Liability and Indemnification of Committee. No member or authorized delegate of the Committee shall be liable to any person
for any action taken or omitted in connection with the administration of the Plan unless attributable to his own fraud or willful misconduct; nor shall the Company or any Related Company be liable to any person for any such action unless
attributable to fraud or willful misconduct on the part of a director or employee of the Company or Related Company. The Committee, the individual members thereof, and persons acting as the authorized delegates of the Committee under the Plan, shall
be indemnified by the Company against any and all liabilities, losses, costs and expenses (including legal fees and expenses) of whatsoever kind and nature which may be imposed on, incurred by or asserted against the Committee or its members or
authorized delegates by reason of the performance of a Committee function if the Committee or its members or authorized delegates did not act dishonestly or in willful violation of the law or regulation under which such liability, loss, cost or
expense arises. This indemnification shall not duplicate but may supplement any coverage available under any applicable insurance. 

5.7    Special Vesting Rules. Except for (a) Awards granted under the Plan with respect to shares of Common Stock which do not
exceed, in the aggregate, five percent of the total number of shares of Common Stock reserved for issuance pursuant to subsection 2.1, (b) Awards granted in lieu of other compensation, or (c) Awards that are a form of payment of earned
performance awards or other incentive compensation provided that the performance period relating to such performance or incentive awards was at least one year, if a Participant’s right to become vested in an Award is conditioned on the
completion of a specified period of service with the Company or any Related Company Subsidiaries being required, then the required period of service shall be at least one (1) year, except if accelerated in the event of the participant’s
death or Disability, or involuntary termination. 
 6.      MISCELLANEOUS 

6.1    Effective Date and Term. This Plan, as amended and restated, shall be effective as of the date that it is approved by the
Board (the “Effective Date”).The Plan shall be unlimited in duration and, in the event of Plan termination, shall remain in effect as long as any shares of Common Stock awarded under it are outstanding and not fully vested; provided,
however, that no new Awards will be made under the Plan on or after the tenth anniversary of the Effective Date Any awards granted under the Prior Plan or the Plan prior to the Approval Date shall be subject to the terms and conditions of the Prior
Plan or the Plan as in effect at the time of grant. 
 6.2    Limit on Distribution. Distribution of Common Stock or other
amounts under the Plan shall be subject to the following: 
  

	 	(a)	 Notwithstanding any other provision of the Plan, the Company shall have no liability to deliver any Common
Stock under the Plan or make any other distribution of benefits under the Plan unless such delivery or distribution would comply with all applicable laws and the applicable requirements of any securities exchange or similar entity.

  

	 	(b)	 In the case of a Participant who is subject to Section 16(a) and 16(b) of the Exchange Act, the Committee
may, at any time, add such conditions and limitations to any Award to such Participant, or 

  
 9 

	 	
any feature of any such Award, as the Committee, in its sole discretion, deems necessary or desirable to comply with Section 16(a) or 16(b) and the rules and regulations thereunder or to
obtain any exemption therefrom. 

  

	 	(c)	 To the extent that the Plan provides for issuance of certificates to reflect the transfer of Common Stock, the
transfer of such Common Stock may be effected on a non-certificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange on which the Common Stock is listed.

 6.3    Liability for Cash Payments. Subject to the provisions of this Section 6, each Related Company
shall be liable for payment of cash due under the Plan with respect to any Participant to the extent that such payment is attributable to the services rendered for that Related Company by the Participant. Any disputes relating to liability of a
Related Company for cash payments shall be resolved by the Committee. 
 6.4    Withholding. All Awards and other payments under
the Plan are subject to withholding of all applicable taxes, which withholding obligations may be satisfied, with the consent of the Committee, through the surrender of Common Stock which the Participant already owns or to which a Participant is
otherwise entitled under the Plan; provided, however, previously-owned Common Stock that has been held by the Participant or Common Stock to which the Participant is entitled under the Plan may only be used to satisfy the minimum tax withholding
required by applicable law (or other rates that will not have a negative accounting impact). 
 6.5    Transferability. Awards
under the Plan are not transferable except as designated by the Participant by will or by the laws of descent and distribution or, unless otherwise provided by the Committee, pursuant to a qualified domestic relations order (within the meaning of
the Code and applicable rules thereunder). To the extent that the Participant who receives an Award under the Plan has the right to exercise such Award, the Award may be exercised during the lifetime of the Participant only by the Participant.
Notwithstanding the foregoing provisions of this subsection 6.5, unless otherwise provided by the Committee, Awards may be transferred to or for the benefit of the Participant’s family (including, without limitation, to a trust or partnership
for the benefit of a Participant’s family), subject to such procedures as the Committee may establish. In no event shall an Incentive Stock Option be transferable to the extent that such transferability would violate the requirements applicable
to such option under section 422 of the Code. 
 6.6    Notices. Any notice or document required to be filed with the Committee
under the Plan will be properly filed if delivered or mailed by registered mail, postage prepaid, to the Committee, in care of the Company or the Related Company, as applicable, at its principal executive offices. The Committee may, by advance
written notice to affected persons, revise such notice procedure from time to time. Any notice required under the Plan (other than a notice of election) may be waived by the person entitled to notice. 

6.7    Form and Time of Elections. Unless otherwise specified herein, each election required or permitted to be made by any
Participant or other person entitled to benefits under the Plan, and any permitted modification or revocation thereof, shall be in writing filed with the applicable Committee at such times, in such form, and subject to such restrictions and
limitations, not inconsistent with the terms of the Plan, as the Committee shall require. 
 6.8    Agreement With the Company or
Related Company. At the time of an Award to a Participant under the Plan, the Committee may require a Participant to enter into an agreement with the Company or the Related Company, as applicable (the “Agreement”), in a form specified
by the Committee, agreeing to the terms and conditions of the Plan and to such additional terms and conditions, not inconsistent with the Plan, as the Committee may, in its sole discretion, prescribe. 

6.9    Limitation of Implied Rights. 
  

	 	(a)	 Neither a Participant nor any other person shall, by reason of the Plan, acquire any right in or title to any
assets, funds or property of the Company or any Related Company whatsoever, including, without 

  
 10 

	 	
limitation, any specific funds, assets, or other property which the Company or any Related Company, in its sole discretion, may set aside in anticipation of a liability under the Plan. A
Participant shall have only a contractual right to the amounts, if any, payable under the Plan, unsecured by any assets of the Company and any Related Company. Nothing contained in the Plan shall constitute a guarantee by the Company or any Related
Company that the assets of such companies shall be sufficient to pay any benefits to any person. 

  

	 	(b)	 The Plan does not constitute a contract of employment or continued service, and selection as a Participant will
not give any employee the right to be retained in the employ or service of the Company or any Related Company, nor any right or claim to any benefit under the Plan, unless such right or claim has specifically accrued under the terms of the Plan.
Except as otherwise provided in the Plan, no Award under the Plan shall confer upon the holder thereof any right as a stockholder of the Company prior to the date on which he fulfills all service requirements and other conditions for receipt of such
rights and shares of Common Stock are registered in his name. 

 6.10    Evidence. Evidence required of anyone
under the Plan may be by certificate, affidavit, document or other information which the person acting on it considers pertinent and reliable, and signed, made or presented by the proper party or parties. 

6.11    Action by the Company or Related Company. Any action required or permitted to be taken by the Company or any Related
Company shall be by resolution of its board of directors or governing body or by action of one or more members of the board or governing body (including a committee of the board or governing body) who are duly authorized to act for the board or, in
the case of any Related Company which is a partnership, by action of its general partner or a person or persons authorized by the general partner, or (except to the extent prohibited by applicable law or the rules of any stock exchange on which the
Common Stock is listed) by a duly authorized officer of the Company. 
 6.12    Gender and Number. Where the context admits,
words in any gender shall include any other gender, words in the singular shall include the plural and the plural shall include the singular. 

6.13    Applicable Law. The provisions of the Plan shall be construed in accordance with the laws of the State of Delaware, without
giving effect to choice of law principles. 
 6.14    Foreign Employees. Notwithstanding any other provision of the Plan to the
contrary, the Committee may grant Awards to eligible persons who are foreign nationals on such terms and conditions different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to foster and promote
achievement of the purposes of the Plan. In furtherance of such purposes, the Committee may make such modifications, amendments, procedures and subplans as may be necessary or advisable to comply with provisions of laws in other countries or
jurisdictions in which the Company or a Related Company operates or has employees. The foregoing provisions of this subsection 6.14 shall not be applied to increase the share limitations of Section 2 or to otherwise change any provision of the
Plan that would otherwise require the approval of the Company’s stockholders. 
 6.15    Recoupment/Forfeiture.
Notwithstanding any other provision of the Plan or any Award Agreement to the contrary, unless otherwise specified by the Committee, any Awards under the Plan and any shares of Common Stock or cash issued pursuant to the Plan shall be subject to
the Company’s compensation recovery, clawback, and recoupment policies as in effect from time to time. 

7.      AMENDMENT AND TERMINATION. 

The Board may, at any time, amend or terminate the Plan, and the Board or the Committee may amend any Award Agreement, provided that no amendment or
termination may, in the absence of written consent to the 

  
 11 

 
change by the affected Participant (or, if the Participant is not then living, the affected beneficiary), adversely affect the rights of any Participant or beneficiary under any Award granted
under the Plan prior to the date such amendment is adopted by the Board (or the Committee, if applicable); and further provided that adjustments pursuant to subsection 2.2 shall not be subject to the foregoing limitations of this Section 7; and
further provided that the provisions of subsection 3.7 (relating to Option and SAR repricing) cannot be amended unless the amendment is approved by the Company’s stockholders; and provided further that, no other amendment shall be made to the
Plan without the approval of the Company’s stockholders if such approval is required by law or the rules of any stock exchange on which the Common Stock is listed. It is the intention of the Company that, to the extent that any provisions of
this Plan or any Awards granted hereunder are subject to section 409A of the Code, the Plan and the Awards comply with the requirements of section 409A of the Code and that the Board shall have the authority to amend the Plan as it deems necessary
to conform to section 409A. Notwithstanding the foregoing, the Company does not guarantee that Awards under the Plan will comply with section 409A and the Committee is under no obligation to make any changes to any Award to cause such compliance.

  
 12Exhibit

Exhibit 4.2

VEREIT, INC.
OFFICER’S CERTIFICATE
The undersigned, Michael J. Bartolotta, Executive Vice President and Chief Financial Officer, of VEREIT, Inc. (“Parent”), a Maryland corporation, hereby certifies, on behalf of Parent in its own capacity and as sole general partner of VEREIT Operating Partnership, L.P., a Delaware limited partnership (the “Issuer”), pursuant to Sections 2.01 and 2.02 of the Indenture, dated as of February 6, 2014 (the “Base Indenture”), by and among the Issuer (f/k/a ARC Properties Operating Partnership, L.P.), as Issuer, Parent (f/k/a American Realty Capital Properties, Inc.), as a guarantor, U.S. Bank National Association, as trustee and the other parties thereto, as follows:
1.    The undersigned has read Sections 2.01 and 2.02 of the Base Indenture and such other sections of the Base Indenture and other documents and has made such other inquiries as he has deemed necessary to make the certifications set forth herein.
2.    In the opinion of the undersigned, the covenants and conditions precedent provided for in the Base Indenture relating to the issuance of the Issuer’s 3.400% Senior Notes due 2028 (the “Notes”) have been complied with.
3.    The forms of the Notes and the guarantee of the Notes by Parent and any future guarantor, and the terms of the Notes, as set forth in Exhibit A attached to Annex A hereto have been duly established pursuant to Sections 2.01 and 2.02 of the Base Indenture and comply with the Base Indenture.
[SIGNATURE ON FOLLOWING PAGE]

             

IN WITNESS WHEREOF, the undersigned has caused this certificate to be duly executed as of this 29th day of June, 2020.

VEREIT OPERATING PARTNERSHIP, L.P., as Issuer
By:    VEREIT, Inc., its sole
general partner
By:    /s/ Michael J. Bartolotta
Name:    Michael J. Bartolotta
		
	Title:
	Executive Vice President and Chief Financial Officer 

VEREIT, INC., as Parent and a Guarantor
By:    /s/ Michael J. Bartolotta
Name:    Michael J. Bartolotta
		
	Title:
	Executive Vice President and Chief 

Financial Officer

[Signature page to Officer’s Certificate to Indenture]
             

ANNEX A

Pursuant to Sections 2.01 and 2.02 of the Indenture, dated as of February 6, 2014 (the “Base Indenture”), among VEREIT Operating Partnership, L.P., a Delaware limited partnership (the “Issuer”) (f/k/a ARC Properties Operating Partnership, L.P.), VEREIT, Inc., a Maryland corporation (“Parent”) (f/k/a American Realty Capital Properties, Inc.), as a guarantor, U.S. Bank National Association, as trustee (the “Trustee”) and the other parties thereto, the terms of the Notes to be issued pursuant to the Base Indenture are as set forth below.  The Base Indenture together with, and as amended and supplemented by, the Officer’s Certificate (the “Series Officer’s Certificate”), dated as of June 29, 2020, establishing the terms of the Notes and of which this Annex A forms a part, is referred to herein as the “Indenture”.  Certain defined terms are set forth in paragraph 18(k) hereof.  Capitalized terms used but not otherwise defined in this Series Officer’s Certificate shall have the respective meanings assigned to them in the Base Indenture.
1.    Designation.  One series of Securities is hereby established under the Base Indenture and shall be known and designated as the “3.400% Senior Notes due 2028”.
2.    Initial Aggregate Principal Amount.  The Notes shall be limited in initial aggregate principal amount to $600,000,000, except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 2.05, 2.06, 2.07, 3.03 and 9.04 of the Indenture.
3.    Maturity.  The date on which the principal of the Notes is payable is January 15, 2028 (the “Stated Maturity Date”).
4.    Rate of Interest; Interest Payment Date; Regular Record Dates.  The Notes shall bear interest at the rate of 3.400% per annum until the principal thereof is paid.  Such interest shall be payable semiannually in arrears on January 15 and July 15 of each year (each, an “Interest Payment Date”), commencing on January 15, 2021, to the Persons in whose names the Notes are registered at the close of business on the immediately preceding January 1 and July 1 (each, a “Regular Record Date”), as the case may be.  Interest on the Notes shall accrue from and including the immediately preceding Interest Payment Date in respect of which interest has been paid or duly made available for payment (or from and including the date of issue, if no interest has been paid or duly made available for payment with respect to the Notes) to, but excluding the applicable Interest Payment Date, the Stated Maturity Date or date of earlier redemption (the Stated Maturity Date or date of earlier redemption referred to collectively herein as the “Maturity Date”), as the case may be.  Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day months.  If any Interest Payment Date or the Maturity Date falls on a day that is not a Business Day, the required payment of principal, premium, if any, and/or interest payable on such date will be made on the next succeeding Business Day as if made on the date such payment was due, and no interest will accrue on such payment for the period from and after such Interest Payment Date or the Maturity Date, as the case may be, to the date of such payment on the next succeeding Business Day.
5.    Place of Payment.  Payments of principal, premium, if any, and interest on the Notes shall be payable, at the office of the Issuer’s paying agent maintained at the Corporate Trust Office.  Payment of principal of, or premium, if any, on a definitive Note may be made only against surrender of the Note to the Issuer’s paying agent.  The Issuer may make interest payments (1) by wire transfer of funds to the person at an account maintained within the United States, or (2) if no wire transfer is provided, the Issuer may make interest payments by check mailed to the address of the person entitled to the payment as that address appears in the applicable register for those Notes.  However, while any Notes 

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are represented by a registered Global Security, payment of principal of, premium, if any, or interest on the Notes may be made by wire transfer to the account of the Depositary or its nominee.
6.    RESERVED.  
7.    Optional Redemption.  The Issuer may redeem all or part of the Notes at any time at its option as set forth the in the form of Note as set forth on Exhibit A and in Article III of the Indenture.    
8.    No Sinking Fund.  The Notes are not mandatorily redeemable and are not entitled to the benefit of a sinking fund or any analogous provisions.
9.    Ranking Security.  The Notes are unsecured obligations of the Issuer and rank equally with other unsecured indebtedness of the Issuer that is not subordinated to the Notes.
10.    Issue Price; Amount Payable Upon Acceleration.  The Notes will be issued at a price equal to 99.144% of the principal amount thereof.  100% of the principal of and accrued interest, if any, on the Notes shall be payable upon declaration of acceleration pursuant to Section 6.01 of the Indenture.
11.    Payment Currency-Election.  The principal of, premium, if any, and interest on the Notes shall not be payable in a currency other than Dollars.
12.    Payment Currency-Index.  The principal of, premium, if any, and interest on the Notes shall not be determined with reference to an index based on a coin or currency.
13.    Registered Securities.  The Notes shall be issued only as registered Securities.  The Notes shall be issuable as registered Global Securities in book-entry form.
14.    Additional Amounts.  The Issuer shall not pay additional amounts on the Notes held by a Person that is not a U.S. Person in respect of taxes or similar charges withheld or deducted.
15.    Notes in Definitive Form.  Section 2.05 of the Indenture will govern the transferability of the Notes in definitive form.
16.    Registrar; Paying Agent; Depositary.  The Trustee shall initially serve as the registrar and the paying agent for the Notes.  The Depository Trust Company shall initially serve as the Depositary for the registered Global Security representing the Notes.
17.    Events of Default.  There shall be no deletions from, modifications or additions to the Events of Default set forth in Section 6.01 of the Base Indenture with respect to the Notes, except, with respect to the Notes, the text of Section 6.01(a)(5) of the Base Indenture shall be deemed deleted in its entirety and replaced with the following: “default by Parent or any of its Subsidiaries under any mortgage, bond, debenture, note or other instrument under which there is outstanding, or by which there is secured or evidenced, any Debt for money borrowed by Parent or any of its Subsidiaries (not including any Debt for which recourse is limited to property purchased or for which recourse may be increased beyond property purchased pursuant to violations of customary non-recourse carveouts unless any such carveout is judicially determined to have been triggered and then only to the extent of such determination) in an aggregate principal amount in excess of $50.0 million at any one time, whether the Debt exists at the date of the Indenture or shall thereafter be created, which default shall have resulted in the Debt becoming or being declared due and payable prior to the date on which it would otherwise have become due and payable or which default shall have resulted in the obligation being accelerated, without the acceleration having been rescinded or annulled or the Debt having been Discharged.” 

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In addition, with respect to the Notes only, each reference to “this Indenture” in Section 6.04 of the Base Indenture shall also be deemed to include the Notes and this Officer’s Certificate.
In addition, with respect to the Notes only, the following language included in Section 7.02 of the Base Indenture: “If a Default occurs hereunder with respect to Securities of any series and is known to a Responsible Officer of the Trustee, the Trustee shall give the holders of Securities of such series notice of such Default as and to the extent provided by the Trust Indenture Act;” shall be replaced in its entirety with: “If a Default occurs hereunder with respect to the Notes and is known to a Responsible Officer of the Trustee, the Trustee shall give the Holders of the Notes, as the case may be, notice of such Default within the earlier of (a) 90 days and (b) as and to the extent provided by the Trust Indenture Act;”.
18.    Covenants.  There shall be the following additions, replacements, amendments and supplements, as the case may be, to the covenants of the Issuer set forth in Article IV of the Base Indenture solely with respect to the Notes:
(a)    Limitation on Incurrence of Total Debt.  This paragraph (a) will be an addition to Article IV of the Base Indenture with respect to the Notes. Parent will not, and will not permit any Subsidiary to, incur any Debt (including, without limitation, Acquired Debt) if, immediately after giving effect to the incurrence of such additional Debt and the application of the proceeds therefrom on a pro forma basis, the aggregate principal amount of all outstanding Debt of Parent and its Subsidiaries on a consolidated basis determined in accordance with GAAP is greater than 65% of the sum of (1) the Total Assets of Parent and its Subsidiaries as of the end of the latest fiscal quarter covered in Parent’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not required under the Exchange Act, with the Trustee) prior to the incurrence of such additional Debt, and (2) the aggregate purchase price of any real estate assets or mortgages receivable acquired, and the aggregate amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), in each case by Parent or any of its Subsidiaries since the end of such fiscal quarter, including the proceeds obtained from the incurrence of such additional Debt.
(b)    Limitation on Incurrence of Secured Debt.  This paragraph (b) will be an addition to Article IV of the Base Indenture with respect to the Notes. Parent will not, and will not permit any Subsidiary to, incur any Secured Debt (including, without limitation, Acquired Debt that is secured by a Lien) if, immediately after giving effect to the incurrence of such Secured Debt and the application of the proceeds therefrom on a pro forma basis, the aggregate principal amount of all outstanding Secured Debt of Parent and its Subsidiaries on a consolidated basis determined in accordance with GAAP is greater than 40% of the sum of (1) the Total Assets of Parent and its Subsidiaries as of the end of the latest fiscal quarter covered in Parent’s Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as the case may be, most recently filed with the Commission (or, if such filing is not required under the Exchange Act, with the Trustee) prior to the incurrence of such additional Debt, and (2) the aggregate purchase price of any real estate assets or mortgages receivable acquired, and the aggregate amount of any securities offering proceeds received (to the extent such proceeds were not used to acquire real estate assets or mortgages receivable or used to reduce Debt), in each case by Parent or any of its Subsidiaries since the end of such fiscal quarter, including the proceeds obtained from the incurrence of such additional Debt.
(c)    Debt Service Coverage.  This paragraph (c) will be an addition to Article IV of the Base Indenture with respect to the Notes.  Parent will not, and will not permit any Subsidiary to, incur any Debt (including, without limitation, Acquired Debt), if the ratio of Consolidated 

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Income Available for Debt Service to the Annual Debt Service Charge for the period consisting of the four consecutive fiscal quarters most recently ended prior to the date on which such additional Debt is to be incurred is less than 1.5 to 1.0, on a pro forma basis after giving effect to the incurrence of such Debt and the application of the proceeds therefrom, and calculated on the following assumptions:  (1) such Debt and any other Debt (including, without limitation, Acquired Debt) incurred by Parent or any of its Subsidiaries since the first day of such four-quarter period and the application of the proceeds therefrom (including to refinance other Debt since the first day of such four-quarter period) had occurred on the first day of such period, (2) the repayment or retirement of any other Debt of Parent or any of its Subsidiaries since the first day of such four-quarter period had occurred on the first day of such period (except that, in making such computation, the amount of Debt under any revolving credit facility, line of credit or similar facility shall be computed based upon the average daily balance of such Debt during such period), and (3) in the case of any acquisition or disposition by Parent or any Subsidiary of any asset or group of assets since the first day of such four-quarter period, including, without limitation, by merger, stock purchase or sale, or asset purchase or sale, such acquisition or disposition had occurred on the first day of such period with the appropriate adjustments with respect to such acquisition or disposition being included in such pro forma calculation.  If the Debt giving rise to the need to make the foregoing calculation or any other Debt incurred after the first day of the relevant four-quarter period bears interest at a floating rate then, for purposes of calculating the Annual Debt Service Charge, the interest rate on such Debt shall be computed on a pro forma basis by applying the average daily rate which would have been in effect during the entire such four-quarter period to the greater of the amount of such Debt outstanding at the end of such period or the average amount of such Debt outstanding during such period.
(d)    Maintenance of Total Unencumbered Assets.  This paragraph (d) will be an addition to Article IV of the Base Indenture with respect to the Notes. Parent and its Subsidiaries will not have at any time Total Unencumbered Assets of less than 150% of the aggregate principal amount of all of the outstanding Unsecured Debt of Parent and its Subsidiaries determined on a consolidated basis in accordance with GAAP.
(e)    Provision of Financial Information.  This paragraph (e) shall supplement Section 5.03 of the Base Indenture.
(1)    Whether or not the Issuer is subject to Section 13 or 15(d) of the Exchange Act and for so long as any Notes are Outstanding, the Issuer will furnish to the Trustee (1) all quarterly and annual reports that would be required to be filed with the Commission on Forms 10-Q and 10-K if the Issuer were required to file such reports and (2) all current reports that would be required to be filed with the Commission on Form 8-K if the Issuer were required to file such reports, in each case, within 15 days after the Issuer files such reports with the Commission or would be required to file such reports with the Commission (for the avoidance of doubt, giving effect to any grace period provided by Rule 12b-25 under the Exchange Act) pursuant to the applicable rules and regulations of the Commission, whichever is earlier (in each case, excluding, for the avoidance of doubt, any such documents or reports (or portions thereof) that are subject to confidential treatment and any correspondence with the Commission).  Reports, information and documents filed with the Commission via the EDGAR system will be deemed to be delivered to the Trustee as of the time of such filing via EDGAR for purposes of this covenant; provided, that the Trustee shall have no obligation whatsoever to determine whether or not such information, documents or reports have been filed via EDGAR.  Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute 

A-4
             

constructive notice of any information contained therein or determinable from information contained therein.
(2)    Notwithstanding the foregoing, in the event that the rules and regulations of the Commission (including Rule 3-10 of Regulation S-X) permit the Issuer and Parent to report at Parent entity’s level on a consolidated basis, and Parent entity is not engaged in any business in any material respect, other than incidental to its ownership, directly or indirectly of the capital stock of the Issuer, then the information and reports required by this covenant may be those of Parent on a consolidated basis, rather than those of the Issuer.
(f)    Future Subsidiary Guarantors.  This paragraph (f) will be an addition to Article IV of the Base Indenture with respect to the Notes. Parent shall cause each of its Subsidiaries that (a) owns, directly or indirectly, any Equity Interests issued by the Issuer, or (b) guarantees other Debt of the Issuer or any Guarantor to execute and deliver to the Trustee an officer’s certificate pursuant to which such Subsidiary will unconditionally guarantee, on a joint and several basis, the due and punctual payment of principal of and interest on the Notes, when and as the same become due and payable, whether on the maturity date, by declaration of acceleration, upon redemption, repurchase or otherwise, and all of the Issuer’s other obligations under the Indenture, as provided in Article XIII of the Indenture. 
(g)    Maintenance of Properties.  This paragraph (g) shall replace Section 4.06 of the Base Indenture with respect to the Notes.  
Each of Parent and the Issuer shall cause its material properties used or useful in the conduct of its business or the business of any Subsidiary of Parent to be maintained and kept in good condition, repair and working order, normal wear and tear, casualty and condemnation excepted, and supplied with all necessary equipment and will require it to cause to be made all necessary repairs, renewals, replacements, betterments and improvements to those properties, as in its judgment may be necessary so that the business carried on in connection with those properties may be properly and advantageously conducted at all times; provided, that Parent and its Subsidiaries shall not be prevented from (1) removing permanently any property that has been condemned or suffered casualty loss, (2) discontinuing any maintenance or operation of any property if, in Parent’s reasonable judgment, such removal is not disadvantageous in any material respect to the Holders of the Notes or (3) selling or otherwise disposing of these properties for value in the ordinary course of business.
(h)    Payment of Taxes and Other Claims. This paragraph (h) shall replace Section 4.08 of the Base Indenture with respect to the Notes.  Parent shall pay or discharge (or, if applicable, cause to be transferred to bond or other security) or cause to be paid or discharged, before the same shall become delinquent, all material taxes, assessments and governmental charges levied or imposed on each of Parent or any of its Subsidiaries or upon the income, profits or property of each of Parent or any of its Subsidiaries; provided, that Parent shall not be required to pay or discharge (or transfer to bond or other security) or cause to be paid or discharged any material tax, assessment or charge, (a) the applicability or validity of which it is contesting in good faith through appropriate proceedings and for which it has established adequate reserves in accordance with GAAP or (b) where the failure to effect such payment is not, in Parent’s reasonable judgment, adverse in any material respect to the Holders of the Notes.
(i)    Supplemental Indentures Without the Consent of Securityholders. With respect to the Notes, Section 9.01 of the Base Indenture is replaced with the following:

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In addition to any supplemental indenture otherwise authorized by this Indenture, the Issuer and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect), without the consent of the Securityholders of such series, for one or more of the following purposes:
(1)to cure any ambiguity or to correct any defect or inconsistency in the Indenture or in the Securities of any series, or to make any other provisions with respect to matters or questions arising under the Indenture which shall not be inconsistent with the provisions of the Indenture; provided, however, that such action shall not adversely affect the interests of holders of any series of Securities in any material respect;

(2)to evidence the succession of another Person to the obligations of the Issuer or any Guarantor to the extent such succession is permitted by Article X;  

(3)to add to the covenants, restrictions, conditions or provisions relating to the Issuer or the Guarantors for the benefit of the holders of all or any series of Securities (and if such covenants, restrictions, conditions or provisions are to be for the benefit of less than all series of Securities, stating that such covenants, restrictions, conditions or provisions are expressly being included solely for the benefit of such series), to add Events of Default for the benefit of the holders of all or any series of  Securities, or to surrender any right or power herein conferred upon the Issuer;

(4)to make any change or eliminate any provision in the Indenture; provided that any such change or elimination does not apply to any Outstanding Securities of a series that are entitled to the benefit of such provision;

(5)to secure the Securities of all or any series of Securities or add a Guarantor;

(6)to evidence the release of any Subsidiary Guarantor pursuant to the terms of the Indenture;

(7)to evidence and provide for the acceptance of appointment under the Indenture by a successor Trustee with respect to the Securities of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts under the Indenture by more than one Trustee, pursuant to the requirements of Section 7.12;

(8)to supplement any of the provisions of the Indenture to the extent necessary to permit or facilitate defeasance, covenant defeasance and discharge of Securities of any series; provided, however, that this action shall not adversely affect the interests of the holders of the Securities of any such series in any material respect;

(9)to comply with any requirements of the Commission or any successor in connection with the qualification of this Indenture under the Trust Indenture Act; 

(10)to provide for the issuance of additional Securities of any series in accordance with the terms of the Indenture and the Securities of such series; or

(11)to conform the text of this Indenture or the Notes to any provision of the “Description of Notes” section of the Prospectus Supplement of the Issuer and Parent dated June 18, 2020 and related to the Notes as set forth in an Officer’s Certificate.

A-6
             

The Trustee is hereby authorized to join with the Issuer in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise.
Any supplemental indenture authorized by the provisions of this Section may be executed by the Issuer and the Trustee without the consent of the holders of any of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02.
(j)    Supplemental Indentures With Consent of Securityholders.  Section 9.02(4) of the Base Indenture is replaced with the following:  “except as contemplated by the provisions of Article X, release Parent from its guarantee of the Securities”.
(k)    Certain Definitions.  As used herein (and to the extent any such definitions conflict with definitions included in the Base Indenture, the definitions included here shall control with respect to the Notes): 
“Acquired Debt” means Debt of a person (1) existing at the time such person is merged or consolidated with or into Parent or any of its Subsidiaries or becomes a Subsidiary of Parent; or (2) is assumed by Parent or any of its Subsidiaries in connection with the acquisition of assets from such person.  Acquired Debt shall be deemed to be incurred on the date the acquired person is merged or consolidated with or into Parent or any of its Subsidiaries or becomes a Subsidiary of Parent or the date of the related acquisition, as the case may be.
“Annual Debt Service Charge” means, for any period, the interest expense of Parent and its Subsidiaries for such period in respect of Debt, determined on a consolidated basis in accordance with GAAP to the extent GAAP is applicable, but excluding (i) any commitment, upfront, arrangement or structuring fees or premiums (including redemption and prepayment premiums) or original issue discount, (ii) interest reserves funded from the proceeds of any Indebtedness, (iii) any cash costs associated with breakage in respect of hedging agreements for interest rates and (iv) amortization of deferred financing costs.
“Business Day” means any day, other than a day on which Federal or State banking institutions in the Borough of Manhattan, The City of New York, or in the city in which the Corporate Trust Office is located, are authorized or obligated by law, regulation or executive order to close.
“Consolidated Income Available for Debt Service” for any period means Consolidated Net Income of Parent and its Subsidiaries for such period, plus amounts which have been deducted, and minus amounts which have been added, in determining Consolidated Net Income during such period, for, without duplication:  (1) Consolidated Interest Expense; (2) provision for taxes of Parent and its Subsidiaries based on income; (3) amortization of debt discount, premium and deferred financing costs; (4) impairment losses and gains or losses on sales or other dispositions of properties; (5) depreciation and amortization; (6) the effect of any non-recurring, non-cash items; (7) amortization of deferred charges; (8) gains or losses on early extinguishment of debt; (9) expenses and losses associated with hedging agreements; (10) equity-based compensation and (11) extraordinary, non-recurring or unusual items, charges or expenses (including, without limitation, prepayment penalties and costs, fees or expenses incurred in connection with any capital markets offering, debt financing, or amendment thereto, redemption or exchange of indebtedness, lease termination, business combination, acquisition, disposition, recapitalization or similar transaction 

A-7
             

(regardless of whether such transaction is completed)), all determined on a consolidated basis in accordance with GAAP to the extent that GAAP is applicable.
“Consolidated Interest Expense” for any period, and without duplication, means all interest (including the interest component of rentals on capitalized leases, letter of credit fees, commitment fees and other like financial charges) and all amortization of debt discount on all Debt (including, without limitation, payment-in-kind, zero coupon and other like securities) but excluding legal fees, title insurance charges, other out-of-pocket fees and expenses incurred in connection with the issuance of Debt and the amortization of any such debt issuance costs that are capitalized, all determined for Parent and its Subsidiaries on a consolidated basis in accordance with GAAP to the extent that GAAP is applicable.
“Consolidated Net Income” for any period means the amount of consolidated net income (or loss) of Parent and its Subsidiaries for such period, excluding extraordinary items, all determined on a consolidated basis in accordance with GAAP to the extent GAAP is applicable.
“Corporate Trust Office” means the corporate office of the Trustee at which at any time the Indenture and the notes shall be administered, which office at the date hereof is located at (a) for purposes of payment and presentation of the Notes, U.S. Bank National Association, 111 Fillmore Avenue East, St. Paul, MN 55107, Attention: Bondholder Services and (b) for all other purposes, U.S. Bank National Association, One Federal Street, Tenth Floor, Boston, MA 02110, Attention: Corporate Trust Services, Ref: VEREIT Operating Partnership, L.P., or such other address as the Trustee may designate from time to time by notice to the Holders and the Issuer, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Issuer).
“Debt” means, as of any date of determination, all indebtedness for borrowed money of Parent and its Subsidiaries that is included as a liability on Parent’s consolidated balance sheet in accordance with GAAP, excluding: (i) any indebtedness to the extent secured by cash, cash equivalents or marketable securities (it being understood that cash collateral shall be deemed to include cash deposited with a trustee or other agent with respect to third party indebtedness) or which has been repaid, discharged, defeased (whether by covenant or legal defeasance), retired, repurchased or redeemed or otherwise satisfied on or prior to the date such calculation is being made or for which Parent or any of its Subsidiaries has irrevocably made a deposit to repay, defease (whether by covenant or legal defeasance), discharge, repurchase, retire or redeem or otherwise satisfy or called for redemption, defeasance (whether by covenant or legal defeasance), discharge, repurchase or retirement, on or prior to the date such calculation is being made (all such events described in this clause (i) are collectively defined as “Discharged”), (ii) Intercompany Debt, (iii) all liabilities associated with customary exceptions to non-recourse indebtedness, such as for fraud, misapplication of funds, environmental indemnities, voluntary bankruptcy, collusive involuntary bankruptcy and other similar exceptions and (iv) any redeemable equity interest in Parent or the Issuer.
“Equity Interests” means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or 

A-8
             

trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.
“GAAP” means generally accepted accounting principles, as in effect as of the date of determination, as used in the United States applied on a consistent basis.
“Guarantors” means, collectively, (i) on the original issue date of the Notes, Parent and (ii) thereafter, Parent and each Subsidiary Guarantor, if any, and “Guarantor” means any one of the Guarantors.
“Holder” means the person in whose name a Note is registered in the Security Register maintained by the Trustee.
“Intercompany Debt” means indebtedness owed by Parent or any Subsidiary solely to Parent or any Subsidiary; provided, that with respect to any such Debt of which either Issuer or any Guarantor is the borrower, such Debt is subordinate in right of payment to the Notes or such Guarantee, as applicable.
“Lien” means any mortgage, lien, charge, encumbrance, trust deed, deed of trust, deed to secure debt, security agreement, pledge, security interest, security agreement or other encumbrance of any kind.
“Person” means any individual, corporation, limited liability company, partnership, joint-venture, joint-stock company, trust, unincorporated organization or government or agency or political subdivision thereof.
“Secured Debt” means Debt secured by a Lien on any property or assets of Parent or any of its Subsidiaries.
“Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the Equity Interests having ordinary voting power for the election of directors or other governing body (other than Equity Interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of Parent.
“Subsidiary Guarantors” means, as of any date, all Subsidiaries of Parent, if any, that guarantee the obligations of the Issuer under the Indenture and the Notes in accordance with the provisions of the Indenture, and “Subsidiary Guarantor” means any one of the Subsidiary Guarantors; provided that upon the release or discharge of such Subsidiary Guarantor from its guarantee in accordance with the Indenture, such Subsidiary shall cease to be a Subsidiary Guarantor.
“Total Assets” as of any date means the sum of (1) Undepreciated Real Estate Assets, and (2) all other assets of Parent and its Subsidiaries determined on a consolidated basis in accordance with GAAP (but excluding accounts receivable and non-real estate intangibles).
“Total Unencumbered Assets” as of any date means Total Assets of Parent and its Subsidiaries that are not subject to a Lien securing Debt, determined on a consolidated basis in accordance with GAAP; provided, that in determining Total Unencumbered Assets as a 

A-9
             

percentage of outstanding Unsecured Debt for purposes of paragraph 18(d) of this Annex A, all investments in any person that is not consolidated with Parent for financial reporting purposes in accordance with GAAP shall be excluded from Total Unencumbered Assets.
“Undepreciated Real Estate Assets” as of any date means the cost (original cost plus capital improvements) of real estate assets and related intangibles of Parent and its Subsidiaries on such date, before depreciation and amortization, determined on a consolidated basis in accordance with GAAP.
“Unsecured Debt” means Debt of Parent or any Subsidiary that is not Secured Debt.
19.    Guarantee.  The Notes are guaranteed by the Guarantors as provided in Article XIII of the Indenture.  Parent is hereby designated a “Guarantor” under the Indenture with respect to the Notes on the original issue date.  Each other Subsidiary of Parent shall become a Guarantor of the Notes as provided in the Indenture and paragraph 18(f) of this Annex A.  Each Guarantor’s guarantee of the Notes (the “Guarantee”) is an unsecured obligation of such Guarantor and ranks equally with other unsecured indebtedness of such Guarantor that is not subordinated to its Guarantee of the Notes.  Other than in accordance with paragraph 22 of this Annex A, Parent shall not be released from its Guarantee of the Notes so long as any Notes remain Outstanding.
20.    Conversion and Exchange.  The Notes shall not be convertible into or exchangeable into any other security.
21.    Further Issues.  The Issuer may, without the consent of the Holders of the Notes, create and issue additional Securities ranking equally and ratably with the Notes in all respects and having the same terms as the Notes (other than date of original issuance, the issue price, the date on which interest begins to accrue and, in some cases, the first interest payment date of such additional Securities), so that such additional Securities shall be consolidated and form a single series with the Notes established hereby for all purposes, including voting; provided that any additional Notes will not be issued with the same CUSIP as the Notes created hereby unless such additional Notes are fungible with the Notes created hereby for U.S. federal income tax purposes..
22.    Merger, Consolidation or Sale of Assets.  The terms and conditions of Article X of the Base Indenture shall apply to the Notes, except, with respect to the Notes, Section 10.01 of the Base Indenture shall be deemed deleted in its entirety and replaced with the following:
(a) Parent or the Issuer may consolidate with, or sell or convey all or substantially all of its and its Subsidiaries assets, taken as a whole, to, or merge with or into, any other entity, provided that the following conditions are met:
(1)(i) Parent or the Issuer, as applicable, shall be the continuing entity, or (ii) the successor entity (if other than Parent or the Issuer, as applicable) formed by or resulting from any consolidation or merger or which shall have received the transfer of assets shall be domiciled in the United States, any state thereof or the District of Columbia and shall expressly assume payment of the principal of and interest on the Notes and the due and punctual performance and observance of all of the covenants and conditions in the Indenture applicable and with respect to the Notes;
(2) immediately after giving effect on a pro forma basis to the transaction (including the incurrence of any Debt in connection therewith), no Event of Default under the Indenture, and no event which, after notice or the lapse of time, or both, would become an Event of Default (such

A-10
             

 definition as amended by paragraph 17 of this Annex A), shall have occurred and be continuing; and
(3) an Officer’s Certificate and Opinion of Counsel covering these conditions shall be delivered to the Trustee.
(b) Parent shall not permit any future Subsidiary Guarantor, if any, to consolidate with, or sell, lease or convey all or substantially all of its assets to, or merge with or into, any other entity unless the following conditions are met:
(1)(i) such Subsidiary Guarantor shall be the continuing entity, or (2) the successor entity (if not such Subsidiary Guarantor) formed by or resulting from any consolidation or merger or which shall have received the transfer of assets shall be domiciled in the United States, any state thereof or the District of Columbia and shall expressly assume, by a supplemental indenture, all the obligations of such Subsidiary Guarantor, if any, under the Notes or its Guarantee, as applicable; provided, that the foregoing requirement shall not apply in the case of a Subsidiary Guarantor (x) that has been disposed of in its entirety to another Person (other than to Parent or an affiliate of Parent), whether through a merger, consolidation or sale of capital stock or has sold, leased or converted all or substantially all of its assets or (y) that, as a result of the disposition of all or a portion of its capital stock, ceases to be a Subsidiary;
(2) immediately after giving effect on a pro forma basis to the transaction (including the incurrence of any Debt in connection therewith), no Event of Default under the Indenture, and no event which, after notice or the lapse of time, or both, would become an Event of Default (such definition as amended by paragraph 17 of this Annex A), shall have occurred and be continuing; and
(3) an Officer’s Certificate and Opinion of Counsel covering these conditions shall be delivered to the Trustee.
(c) Notwithstanding anything to the contrary in the foregoing, clauses (a) and (b) of this Paragraph (22) shall not apply to:
(1) a merger, consolidation, sale, assignment, transfer, conveyance or other disposition of assets between or among Parent or any of its Subsidiaries;
(2) a merger between Parent or any of its Subsidiaries, respectively, and an Affiliate of Parent or such Subsidiary incorporated or formed solely for the purpose of reincorporating or reorganizing Parent or such Subsidiary in another state of the United States or changing the legal domicile or form of Parent or such Subsidiary or for the sole purpose of forming or collapsing a holding company structure; or
(3) the lease of all or substantially all of the real estate assets of Parent or any of its Subsidiaries;
provided that, in the case of any transaction described in clause (1), (2) and/or (3) above, an Officer’s Certificate and Opinion of Counsel stating that such transaction complied with such clause (1), (2) and/or (3) shall be delivered to the Trustee to the extent a Guarantor or the Issuer is party to any such transaction and such Guarantor or the Issuer, as the case may be, is not the continuing entity as a result of such transaction.

A-11
             

23.    Satisfaction and Discharge; Covenant Defeasance.  Article XI of the Base Indenture shall apply to the Notes.  In addition to the other sections of the Indenture subject to the Covenant Defeasance provisions set forth in Article XI of the Base Indenture, the covenants set forth in paragraph 18 of this Annex A shall be subject to the Covenant Defeasance provisions set forth in Article XI of the Base Indenture.
24.    Modification, Amendment and Waiver.  The terms and provisions of the Notes may be modified, amended, supplemented or waived as set forth in the Indenture.
25.    Other Terms.  The Notes shall have the other terms, and the Notes shall be substantially in the forms set forth in, Exhibit A.  In case of any conflict between this Annex A and the Notes, the form of the Notes shall control.  In the case of any conflict between, on the one hand, this Annex A and/or the Notes, and on the other hand, the Base Indenture, this Annex A and/or the Notes shall control.

A-12
             

EXHIBIT A
Global Security

[UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO VEREIT OPERATING PARTNERSHIP, L.P. (THE “ISSUER”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
EXCEPT AS PROVIDED IN SECTION 2.11 OF THE INDENTURE, THIS NOTE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO DTC, ANOTHER NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR.]1 

___________________________
1            Exclude from Notes in definitive form.

Exh. A-1
             

VEREIT OPERATING PARTNERSHIP, L.P.  

3.400% Notes due 2028
CUSIP No.  92340L AF6
ISIN No.  US92340LAF67
No. [  ]                                                                                                                                                        $[             ]
VEREIT OPERATING PARTNERSHIP, L.P., a limited partnership duly organized and existing under the laws of the State of Delaware (hereinafter referred to as “Issuer,” which term includes any successor thereof under the Indenture (as defined on the reverse hereof)), for value received, hereby promises to pay to CEDE & CO., or its registered assigns, the principal sum of [          ] ($[           ]) on January 15, 2028 (the “Stated Maturity Date” with respect to the principal of this Note), unless previously redeemed on any Redemption Date (as defined below) in accordance with the provisions set forth on the reverse hereof (the Stated Maturity Date or any Redemption Date is referred herein as the “Maturity Date” with respect to principal repayable or repurchased on such date) and to pay interest thereon semiannually in arrears on January 15 and July 15 of each year (each, an “Interest Payment Date”), commencing on January 15, 2021, at the rate of 3.400% per annum, until payment of said principal has been made or duly provided for.  Interest on this Note payable on an Interest Payment Date will accrue from and including the immediately preceding Interest Payment Date to which interest has been paid or duly made available for payment, or from and including June 29, 2020 if no interest has been paid or duly made available for payment, to but excluding the applicable Interest Payment Date or the Maturity Date, as the case may be.  Interest on this Note will be computed on the basis of a 360-day year consisting of twelve 30-day months.
Capitalized terms used but not otherwise defined herein shall have the respective meanings assigned to them in the Indenture.
The interest so payable and punctually paid or duly made available for payment on any Interest Payment Date will be paid to the Holder in which name this Note (or one or more predecessor Notes) is registered in the Security Register at the close of business on the “Regular Record Date” for such payment, which shall be the January 1 and July 1, as the case may be, immediately preceding such Interest Payment Date (regardless of whether such day is a Business Day (as defined below)).  Any such interest not so punctually paid or duly made available for payment shall forthwith cease to be payable to the Holder on such Regular Record Date, and shall be paid to the Person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on a subsequent “Special Record Date” for the payment of such defaulted interest (which shall be not more than 5 Business Days prior to the date of the payment of such defaulted interest) established by notice given by mail by or on behalf of the Issuer to the Holders of the Notes not less than 15 calendar days preceding such subsequent Special Record Date, or may be paid at any time in any other lawful manner, all as more fully provided in the Indenture.
The principal of, and premium, if any, with respect to, this Note payable on the Maturity Date will be paid against presentation and surrender of this Note at the Corporate Trust Office of the Trustee or other office or agency of the Issuer maintained for that purpose in the Borough of Manhattan, The City of New York.  The Issuer hereby initially designates the Corporate Trust Office of the Trustee (as defined on the reverse hereof) as the office to be maintained by it where Notes may be presented for payment, registration of transfer or exchange and where notices or demands to or upon the Issuer in respect of the Notes or the Indenture may be served.
If any Interest Payment Date or the Maturity Date falls on a day that is not a Business Day, the payment required to be made on such date will, instead, be made on the next Business Day with the same

Exh. A-2
             

force and effect as if it were made on the date such payment was due, and no interest shall accrue on the amount so payable for the period from and after such Interest Payment Date or the Maturity Date, as the case may be.  “Business Day” means any day, other than a day on which Federal or State banking institutions in the Borough of Manhattan, The City of New York, or in the city in which the Corporate Trust Office is located, are authorized or obligated by law, regulation or executive order to close.
Payments of principal, premium, if any, and interest in respect of this Note will be made in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts (i) in the case of payments on the Maturity Date, in immediately available funds, and (ii) in the case of payments of interest on an Interest Payment Date other than the Maturity Date, (a) by wire transfer of immediately available funds to an account maintained by the payee with a bank located in the United States of America, or (b) if no wire transfer is provided, by check mailed to the Holder entitled thereto at the applicable address appearing in the Security Register; provided, however, that so long as Cede & Co. is the Holder of this Note, payments of interest on an Interest Payment Date may be made in immediately available funds.
Reference is made to the further provisions of this Note set forth on the reverse hereof.  Such further provisions shall for all purposes have the same effect as though fully set forth at this place.
This Note shall not be entitled to the benefits of the Indenture or the Guarantee or be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been executed by manual signature by the Trustee.

Exh. A-3
             

IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed, manually, electronically or by facsimile by an authorized signatory.
Date:  June 29, 2020
	
				
	 
	VEREIT OPERATING PARTNERSHIP, L.P.

	 
	 
	 
	 

	 
	By:
	VEREIT, Inc. its sole 
general partner

	 
	 
	 
	 

	 
	By:
	 
	 

	 
	 
	Name:
	 

	 
	 
	Title:
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated herein, referred to in the within-mentioned Indenture.
	
			
	 
	U.S. BANK NATIONAL ASSOCIATION, as Trustee

	 
	 
	 

	 
	By:
	 

	 
	 
	Authorized Signatory

	 
	 
	 

Exh. A-4
             

[FORM OF REVERSE OF NOTE]
VEREIT OPERATING PARTNERSHIP, L.P.  

 3.400% Senior Notes due 2028

This Note is one of a duly authorized issue of Securities of the Issuer (hereinafter called the “Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to an Indenture (the “Base Indenture”), dated as of February 6, 2014, duly executed and delivered by the Issuer (f/k/a ARC Properties Operating Partnership, L.P.), VEREIT, Inc. (f/k/a American Realty Capital Properties, Inc.) (“Parent”), and certain other parties named therein to U.S. Bank National Association, as trustee (the “Trustee,” which term includes any successor trustee under the Indenture with respect to the series of Securities of which this Note is a part), together with the Officer’s Certificate amending and supplementing the Base Indenture and establishing the terms of the Notes and another series of Securities designated as the 3.400% Senior Notes due 2028, dated as of June 29, 2020 (collectively with the Base Indenture, the “Indenture”) and reference is hereby made to the Indenture, and all modifications and amendments and indentures supplemental thereto relating to the Notes, made for a description of the rights, limitations of rights, obligations, duties, and immunities thereunder of the Trustee, the Issuer, the Guarantor(s) and the Holders of the Notes and the terms upon which the Notes are authenticated and delivered.  This Note is one of a series of Securities designated as the 3.400% Senior Notes due 2028 (collectively, the “Notes”) of the Issuer, limited (except as permitted under the Indenture) in aggregate principal amount to $600,000,000.
Payments of principal, premium, if any, and interest in respect of the Notes will be fully and unconditionally guaranteed by the Guarantor(s).
Optional Redemption. The Issuer may redeem all or part of the Notes at any time at its option at a redemption price equal to the greater of:

(a)    100% of the principal amount of the Notes to be redeemed, and
(b)    the sum of the present values of the remaining scheduled payments of principal of and interest on the Notes to be redeemed that would be due if such Notes matured on November 15, 2027 (the “Par Call Date”) but for the redemption thereof (exclusive of interest accrued to the applicable Redemption Date) discounted to such Redemption Date on a semiannual basis, assuming a 360-day year consisting of twelve 30-day months, at the Treasury Rate plus 45 basis points,
plus, in the case of both clauses (a) and (b) above, accrued and unpaid interest on the principal amount of the Notes being redeemed to, but excluding, the date fixed for redemption (the “Redemption Date”); provided that if the Notes are redeemed on or after the Par Call Date, the redemption price will equal 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest on the amount being redeemed to, but excluding, the date of redemption.
Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on an Interest Payment Date falling on or prior to a Redemption Date will be payable to the persons who were the Holders of the Notes (or one or more predecessor Notes) registered as such at the close of business on the relevant Regular Record Date as set forth above and in Article III of the Indenture.
As used herein (and to the extent any such definitions conflict with definitions included in the Base Indenture, the definitions included here shall control with respect to the Notes):

Exh. A-5
             

“Comparable Treasury Issue” means the U.S. Treasury security selected by the Independent Investment Banker as having a maturity comparable to the remaining term of the Notes to be redeemed calculated as if the Stated Maturity Date were the Par Call Date (the “Remaining Life”) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of such Notes.
“Comparable Treasury Price” means, with respect to any Redemption Date for the Notes:
(a)    if the Issuer obtains seven Reference Treasury Dealer Quotations for such Redemption Date, the average of such Reference Treasury Dealer Quotations, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or
(b)    if the Issuer obtains fewer than seven but more than one such Reference Treasury Dealer Quotations for such Redemption Date, the average of all such Reference Treasury Dealer Quotations, or
(c)    if the Issuer obtains only one such Reference Treasury Dealer Quotation for such Redemption Date, that Reference Treasury Dealer Quotation.
“Independent Investment Banker” means one of the Reference Treasury Dealers that the Issuer has appointed to act as the “Independent Investment Banker”.
“Reference Treasury Dealer” means with respect to any Redemption Date for the Notes, each of (i) Wells Fargo Securities, LLC, Barclays Capital Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC and a Primary Treasury Dealer selected by U.S. Bancorp Investments, Inc. and their respective successors (provided, however, that if any such firm or any such successor, as the case may be, ceases to be a primary U.S. Government securities dealer in The City of New York (a “Primary Treasury Dealer”), the Issuer shall substitute therefor another nationally recognized investment banking firm that is a Primary Treasury Dealer), and (ii) one other Primary Treasury Dealer, if any, selected by the Issuer.
“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the Notes, the average, as determined by the Issuer, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Issuer by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.
“Treasury Rate” means, with respect to any Redemption Date for the Notes:
(a)    the yield, under the heading that represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the Remaining Life of the Notes, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Treasury Rate shall be interpolated or extrapolated from such yields on a straight-line basis, rounding to the nearest month), or

Exh. A-6
             

(b)    if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date.
The Treasury Rate shall be calculated by the Issuer on the third Business Day preceding the applicable Redemption Date, on which date the Issuer will provide the Trustee with a calculation of the applicable redemption price.
Notice of Redemption. No Notes of $2,000 or less can be redeemed in part.  Notices of redemption will be mailed (or in the case of Global Securities, given pursuant to applicable procedures of The Depository Trust Company (“DTC”)) at least 15 but not more than 60 days before the Redemption Date to each Holder of the Notes to be redeemed at its registered address, except that redemption notices may be mailed or given more than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of the Notes.  If less than all of the Outstanding Notes are to be redeemed, the Notes to be redeemed shall be selected, so long as such Notes are in book-entry form, in accordance with the applicable procedures of DTC, or, if such Notes are issued in definitive certificated form, by such method as the Trustee shall deem fair and appropriate.
If any Note is to be redeemed in part only, (a) the Issuer shall give the Trustee five days’ notice (unless a shorter period is satisfactory to the Trustee) in advance of the date of delivery of the notice of redemption to the Holders and (b) the notice of redemption that relates to that Note will state the portion of the principal amount of that Note that is to be redeemed. A new Note in principal amount equal to the unredeemed portion of the original Note will be issued in the name of the Holder of Notes upon cancellation of the original Note. Notes called for redemption become due on the date fixed for redemption (subject to satisfaction of any applicable conditions precedent).
Unless the Issuer defaults in payment of the redemption price, on and after the Redemption Date interest will cease to accrue on the Notes or portions of them called for redemption.
This Note is not mandatorily redeemable and is not entitled to the benefit of a sinking fund or any analogous provisions.
Miscellaneous. In case an Event of Default with respect to this Note shall have occurred and be continuing, the principal hereof may be (and, in certain cases, shall be) declared, and upon such declaration shall become, due and payable, in the manner, with the effect, and subject to the conditions, provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and, if applicable, the Guarantors, and the rights of the Holders of the Securities under the Indenture at any time by the Issuer and, if applicable, the Guarantors, and the Trustee with the consent of the Holders of a majority in the aggregate principal amount of Securities of each series (voting as separate classes) issued under the Indenture at the time Outstanding and affected thereby. Furthermore, provisions in the Indenture permit the Holders of a majority in the aggregate principal amount of the Outstanding Securities of any series, in certain instances, to waive, on behalf of all of the Holders of Securities of such series, certain past defaults under the Indenture and their consequences. Any such waiver by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and other Notes issued upon the registration of transfer hereof or in exchange hereof, or in lieu hereof, whether or not notation of such consent or waiver is made upon this Note.

Exh. A-7
             

With respect to the Notes, Article XII of the Indenture shall not be applicable to the Issuer, the Trustee or the Holders.
No reference herein to the Indenture and no provision of this Note or the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of, and premium, if any, with respect to, and interest on, this Note in the manner, at the respective times, at the rate and in the coin or currency herein prescribed.
The Indenture contains provisions for defeasance and discharge and for defeasance at any time of certain restrictive covenants and Events of Default with respect to Notes of this series upon compliance with certain conditions set forth in the Indenture.
This Note is issuable only in definitive registered form, without coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof.  This Note may be exchanged for a like aggregate principal amount of Notes of other authorized denominations at the office or agency of the Issuer in The City of New York, in the manner and subject to the limitations provided herein and in the Indenture, but without the payment of any charge except for any tax or other governmental charge imposed in connection therewith.
The Issuer shall not pay additional amounts on this Note held by a Person that is not a U.S. Person in respect of taxes or similar charges withheld or deducted.
The Issuer, the Guarantor(s) or the Trustee and any authorized agent of the Issuer, the Guarantor(s) or the Trustee may deem and treat the Person in whose name this Note is registered as the Holder and absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the purpose of receiving payment of, or on account of, the principal of, or premium, if any, with respect to, or subject to the provisions on the face hereof, interest on, this Note and for all other purposes, and none of the Issuer, the Guarantor(s) or the Trustee or any authorized agent of the Issuer, the Guarantor(s) or the Trustee shall be affected by any notice to the contrary.
THE INDENTURE AND THIS NOTE SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE.

Exh. A-8
             

ASSIGNMENT FORM
	
	
	FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto:

	 

	 

	Please insert social security number or other identifying number of assignee:

	 

	 

	Please print or type name and address (including zip code) of assignee:

	 

	 

	 

	 

	 

	the within Note and all rights thereunder, hereby irrevocably constituting and appointing                 attorney to transfer said Note of VEREIT Operating Partnership, L.P. (the “Issuer”) on the books of the Issuer, with full power of substitution in the premises.

	 

	 

	Dated: _________

	 

	Signature Guaranteed

	 

	 

	NOTICE:  Signature must be guaranteed by an eligible Guarantor Institution (banks, stockbrokers, savings and loan associations and credit unions) with membership in an approved signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15.

	 

	 

	NOTICE:  The signature to this Assignment must correspond with the name as written upon the face of the within Note in every particular, without alteration or enlargement or any change whatever.

Exh. A-9
             

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY(1) 
 
The following exchanges of a part of this Global Security for an interest in another Global Security or for a definitive registered Note, or exchanges of a part of another Global Security or definitive registered Note for an interest in this Global Security, have been made:
 
	
										
	Date of 
Exchange
	 
	Amount of 
Decrease in 
Principal Amount 
of This Global 
Security
	 
	Amount of 
Increase in 
Principal 
Amount of This 
Global Security
	 
	Principal Amount of 
This Global Security 
Following Such 
Decrease (or 
Increase)
	 
	Signature of 
Authorized 
Signatory of 
Trustee or  
Custodian
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

 
___________________________
(1)         This schedule should be included only if the Note is issued in global form.
 

Exh. A-10

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