Document:

Exhibit 10.3

 

INDEMNIFICATION
AGREEMENT

 

THIS
INDEMNIFICATION AGREEMENT (this “Agreement”) is made and entered into as of the [•] day of [•], 20__
(the “Effective Date”), by and between Orion Office REIT Inc., a Maryland corporation (the “Company”),
and [•] (“Indemnitee”) (together referred to as the “Parties”).

 

WHEREAS, Indemnitee
commenced service as a [director] [and] [officer] of the Company as of [•] (the “Start Date”);

 

WHEREAS,
by reason of Indemnitee’s status as a [director] [and] [officer] of the Company, Indemnitee may be subjected to claims, suits
or proceedings arising as a result of Indemnitee’s service; and

 

WHEREAS,
as an inducement to Indemnitee to serve or continue to serve as a [director] [and] [officer] of the Company, the Company has agreed to
indemnify and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum
extent permitted by law and subject to the terms set forth herein; and

 

WHEREAS,
the parties to this Agreement desire to set forth their agreement regarding indemnification and advancement of expenses.

 

NOW,
THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree
as follows:

 

Section 1.
Definitions. For purposes of this Agreement:

 

(a) “Bylaws”
means the Bylaws of the Company, as amended, supplemented or otherwise modified from time to time.

 

(b) “Charter”
means the charter of the Company, as amended, supplemented or otherwise modified from time to time.

 

(c) “Change
in Control” means a change in control of the Company occurring after the Effective Date of a nature that would be required
to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule
or form) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or
not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such a Change in Control shall
be deemed to have occurred if, after the Effective Date (i) any “person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of all of the Company’s
then-outstanding securities entitled to vote generally in the election of directors without the prior approval of at least two-thirds
of the members of the Board of Directors of the Company (the “Board of Directors”) in office immediately prior
to such person’s attaining such percentage interest; (ii) there occurs a proxy contest, or the Company is a party to a merger,
consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board
of Directors then in office, as a consequence of which members of the Board of Directors in office immediately prior to such transaction
or event constitute less than a majority of the Board of Directors thereafter; or (iii) at any time, a majority of the members of
the Board of Directors are not individuals (A) who were directors as of the Effective Date or (B) whose election by the Board
of Directors or nomination for election by the Company’s stockholders was approved by the affirmative vote of at least two-thirds
of the members of the Board of Directors then in office who were directors as of the Effective Date or whose election or nomination for
election was previously so approved.

 

     

     

    

 

(d) “Corporate
Status” means the status of a person as a present or former director, officer, employee or agent of the Company or as a
director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent, or as the “partnership representative”
for all federal income tax purposes set forth in the Internal Revenue Code of 1986, as amended (the “Code”),
of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other
enterprise that such person is or was serving in such capacity at the request of the Company. Indemnitee’s Corporate Status shall
be deemed to have commenced on the Start Date. As a clarification and without limiting the circumstances in which Indemnitee may be serving
at the request of the Company, service by Indemnitee shall be deemed to be at the request of the Company (1) if Indemnitee serves
or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent, or as the “partnership
representative” for all federal income tax purposes set forth in the Code, of any corporation, partnership, limited liability company,
joint venture, trust, employee benefit plan or other enterprise (i) of which a majority of the voting power or equity interest is
or was at the time of service owned directly or indirectly by the Company or (ii) the management of which is or was at the time of
service controlled directly or indirectly by the Company; or (2) if, as a result of or in connection with Indemnitee’s service
to the Company or any of its affiliated entities, Indemnitee is or was subject to duties by, or required to perform services for,
an employee benefit plan or its participants or beneficiaries, including as a deemed fiduciary thereof.

 

(e) “Disinterested
Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification
and/or advancement of Expenses is sought by Indemnitee.

 

(f) “Effective
Date” means the date set forth in the first paragraph of this Agreement.

 

(g) “Expenses”
means any and all reasonable and out-of-pocket attorneys’ fees, expenses and costs, retainers, court costs, transcript costs, fees
of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, computer research charges,
postage, delivery service fees, paralegal and secretarial services, federal, state, local or foreign taxes imposed on Indemnitee as a
result of the actual or deemed receipt of any payments under this Agreement, Employee Retirement Income Security Act of 1974, as amended,
excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute
or defend, investigating, being or preparing to be a witness in or otherwise participating in a Proceeding. Expenses shall also include
Expenses incurred in connection with any appeal resulting from any Proceeding including, without limitation, the premium, security for
and other costs relating to any cost bond, supersedeas bond or other appeal bond or its equivalent.

 

(h) “Independent
Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is,
nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party
(other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements),
or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim for indemnification or advancement
of Expenses hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under
the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company
or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

 

     

     

    

 

(i) “Proceeding”
means any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry,
administrative hearing or any other proceeding, whether brought by or in the right of the Company, its shareholders or otherwise and whether
of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature,
including any appeal therefrom, including any pending on or before the Effective Date. If Indemnitee reasonably believes that a given
situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding.

 

Section 2.
Services by Indemnitee. Indemnitee serves as a [director] [and] [officer] of the Company. However, this Agreement shall not impose
any independent obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company. This Agreement shall not
be deemed an employment contract between the Company (or any other entity) and Indemnitee.

 

Section 3.
General. Subject in all respects to Section 4 and Section 5, the Company shall indemnify and advance Expenses to, Indemnitee
(a) as provided in this Agreement and (b) otherwise to the maximum extent permitted by Maryland law in effect on the Effective
Date and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the benefits
available to Indemnitee hereunder based on Maryland law as in effect on the Effective Date. Subject in all respects to Section 4
and Section 5, the rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in
the other sections of this Agreement, including any additional indemnification permitted by Section 2-418(g) of the Maryland
General Corporation Law (the “MGCL”).

 

Section 4.
Standard for Indemnification. If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be,
made a party to any Proceeding, the Company shall indemnify, defend and hold harmless Indemnitee against all judgments, penalties, fines
and settlements and advance all Expenses actually incurred by Indemnitee or on Indemnitee’s behalf in connection with any such Proceeding,
subject to the limitations and requirements set forth herein, including the Certain Limits on Indemnification as set forth in Section 5
of this Agreement.

 

Section 5.
Certain Limits on Indemnification. Notwithstanding any other provision of this Agreement (other than Section 6), Indemnitee
shall not be entitled to:

 

(a) indemnification
or advancement of Expenses hereunder if the Proceeding was one by or in the right of the Company and Indemnitee is adjudged to be liable
to the Company as described in Section 2-418(b)(2)(ii) of the MGCL;

 

(b) indemnification
or advancement of Expenses hereunder if it is finally determined (in that all rights of appeal have been exhausted or lapsed) in a Proceeding
that (i) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (x) was committed in
bad faith or (y) was the result of Indemnitee’s active and deliberate dishonesty; (ii) Indemnitee actually received and
is adjudged to be liable for an improper personal benefit in money, property or services, as a result of an act or omission by Indemnitee;
or (iii) in the case of any criminal proceeding, Indemnitee had reasonable cause to believe that Indemnitee’s act or omission
was unlawful;

 

(c) indemnification
or advancement of Expenses hereunder if the Proceeding was brought by Indemnitee, unless: (i) the Proceeding was brought to enforce
any of Indemnitee’s rights under this Agreement, and then only to the extent in accordance with and as authorized by Section 12
of this Agreement, or (ii) the Charter or Bylaws, a resolution of the stockholders entitled to vote generally in the election of
directors or of the Board of Directors or an agreement approved by the Board of Directors to which the Company is a party, expressly provide
otherwise; or

 

(d) 
indemnification or advancement of Expenses hereunder with respect to any settlement or judgment for insider trading or for disgorgement
of profits pursuant to Section 16(b) of the Exchange Act.

 

     

     

    

 

Section 6.
Court-Ordered Indemnification. Notwithstanding any other provision of this Agreement, a court of appropriate jurisdiction, upon
application of Indemnitee and such notice as the court shall require, may order indemnification of Indemnitee by the Company in the following
circumstances:

 

(a) if
such court determines that Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order
indemnification, in which case Indemnitee shall be entitled to recover the Expenses of securing such reimbursement; or

 

(b) if
such court determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances,
whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has
been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such
indemnification as the court shall deem proper. However, indemnification with respect to any Proceeding by or in the right of the Company
or in which liability shall have been adjudged in the circumstances described in Section 2-418(c) of the MGCL shall be limited
to Expenses.

 

Section 7.
Indemnification for Expenses of an Indemnitee Who Is Wholly or Partially Successful. Notwithstanding any other provision of this
Agreement, and without limiting any such provision, to the extent that Indemnitee was or is, by reason of Indemnitee’s Corporate
Status, made a party to (or otherwise becomes a participant in) any Proceeding and is successful, on the merits or otherwise, in the defense
of such Proceeding, Indemnitee shall be indemnified for all Expenses actually incurred by Indemnitee or on Indemnitee’s behalf
in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to
one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section 7
for all Expenses actually incurred by Indemnitee or on Indemnitee’s behalf in connection with each such claims, issues or matters,
allocated on a reasonable and proportionate basis. For purposes of this Section 7 and without limitation, the termination of any
claim, issue or matter in such a Proceeding by settlement or dismissal, with or without prejudice, shall be deemed to be a successful
result as to such claim, issue or matter. As clarification, notwithstanding whether Indemnitee is successful in any Proceeding, Indemnitee
shall be entitled to indemnification of Expenses if the standard for indemnification under Section 4, subject to Section 5,
of this Agreement is met.

 

Section 8.
Procedure for Advancement of Expenses to Indemnitee. If, by reason of Indemnitee’s Corporate Status, Indemnitee is,
or is threatened to be, made a party to any Proceeding, the Company shall, without requiring a preliminary determination of Indemnitee’s
ultimate entitlement to indemnification hereunder, advance all reasonable Expenses incurred by or on behalf of Indemnitee in connection
with such Proceeding within ten days after the receipt by the Company of a statement or statements requesting such advance or advances
from time to time, whether prior to or after final disposition of such Proceeding, and such advancement may be in the form of, in the
reasonable discretion of Indemnitee (but without duplication), (a) payment of such Expenses directly to third parties on behalf of
Indemnitee, (b) advance of funds to Indemnitee in an amount sufficient to pay such Expenses or (c) reimbursement to Indemnitee
for Indemnitee’s payment of such Expenses. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee
and shall include or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the
standard of conduct necessary for indemnification by the Company as authorized by law and by this Agreement has been met and a written
undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be
required under applicable law as in effect at the time of the execution thereof. To the extent that Expenses advanced to Indemnitee do
not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate
basis. The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall
be accepted without reference to Indemnitee’s financial ability to repay such advanced Expenses and without any requirement to post
security therefor.

 

     

     

    

 

Section 9.
Indemnification and Advancement of Expenses as a Witness or Other Participant. Notwithstanding any other provision of this Agreement
(other than Section 5), to the extent that Indemnitee is or may be, by reason of Indemnitee’s Corporate Status, made a witness
or otherwise asked to participate in any Proceeding, including through any deposition, interview, interrogatory or document or similar
request, whether instituted by the Company or any other party, and to which Indemnitee is not a party, Indemnitee shall be advanced
all reasonable Expenses and indemnified against all Expenses actually incurred by Indemnitee or on Indemnitee’s behalf in connection
therewith within ten days after the receipt by the Company of a statement or statements requesting any such advance or indemnification
from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence
the Expenses incurred by Indemnitee.

 

Section 10.
Procedure for Determination of Entitlement to Indemnification.

 

(a) To
obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith
such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what
extent Indemnitee is entitled to indemnification. Indemnitee may submit one or more such requests from time to time and at such time(s) as
Indemnitee deems appropriate in Indemnitee’s sole discretion. The officer of the Company receiving any such request from Indemnitee
shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested
indemnification.

 

(b) Upon
written request by Indemnitee for indemnification pursuant to Section 10(a) above, a determination, if required by applicable
law, with respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control
shall have occurred, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee,
which Independent Counsel shall be selected by the Indemnitee and approved by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of
the MGCL, which approval shall not be unreasonably withheld or delayed; or (ii) if a Change in Control shall not have occurred, (A) by
the Board of Directors by a majority vote of a quorum consisting of Disinterested Directors or, if such a quorum cannot be obtained, then
by a majority vote of a duly authorized committee of the Board of Directors consisting solely of one or more Disinterested Directors,
(B) if Independent Counsel has been selected by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the
MGCL and approved by the Indemnitee, which approval shall not be unreasonably withheld or delayed, by Independent Counsel, in a written
opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee, or (C) if so directed by a majority of the members
of the Board of Directors, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to indemnification,
payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons or entity
making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons
or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure
and which is reasonably available to Indemnitee and reasonably necessary to such determination in the discretion of the Board of Directors
or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 10(b). Any Expenses incurred by Indemnitee in
so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination
as to Indemnitee’s entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.

 

(c) The
Company shall pay the reasonable fees and expenses of Independent Counsel, if one is appointed.

 

     

     

    

 

Section 11.
Presumptions and Effect of Certain Proceedings.

 

(a) In
making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination
shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification
in accordance with Section 10(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption
in connection with the making of any determination contrary to that presumption.

 

(b) The
termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement does not create a presumption that
Indemnitee did not meet the requisite standard of conduct described herein for indemnification. The termination of any Proceeding or of
any claim, issue or matter therein, by conviction, or a plea of nolo contendere or its equivalent, or an entry of an order of probation
prior to judgment, creates a rebuttable presumption that the Indemnitee did not meet the requisite standard of conduct described herein
for indemnification.

 

(c) The
knowledge and/or actions, or failure to act, of any other director, officer, employee or agent of the Company or any other director, trustee,
officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited
liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of
determining any right to indemnification under this Agreement.

 

(d) 
For purposes of any determination of whether any act or omission of Indemnitee met the requisite standard of conduct described herein
for indemnification, each act of Indemnitee shall be deemed to have met such standard insofar as such Indemnitee’s action is based
on the records or books of accounts of the Company, including financial statements, or on information supplied to Indemnitee by the officers
of the Company in the course of their duties, or on the advice of legal counsel for the Company or on information or records given or
reports made to the Company by an independent certified public accountant or by an appraiser or other expert selected with reasonable
care by the Company, provided that in each instance, such reliance is in accordance with Section 2-405.1(d) of the MGCL. The
provisions of this Section 11(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which
Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement or under applicable law.

 

     

     

    

 

Section 12.
Remedies of Indemnitee.

 

(a) If
(i) a determination is made pursuant to Section 10(b) of this Agreement that Indemnitee is not entitled to indemnification
under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Sections 8 or 9 of this Agreement, (iii) no
determination of entitlement to indemnification shall have been made pursuant to Section 10(b) of this Agreement within 45 days
after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections
7 or 9 of this Agreement within ten days after receipt by the Company of a written request therefor, or (v) payment of indemnification
pursuant to any other section of this Agreement or the Charter or Bylaws is not made within ten days after a determination has been made
that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in
the State of Maryland, or in any other court of competent jurisdiction, of Indemnitee’s entitlement to such indemnification or advancement
of Expenses. Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted by a single
arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence a proceeding
seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence
such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply to a Proceeding
brought by Indemnitee to enforce Indemnitee’s rights under Section 7 or 8 of this Agreement. Except as set forth herein, the
provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration. The Company shall not
oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

(b) In
any judicial proceeding or arbitration commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to
indemnification or advancement of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving
that Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be. If Indemnitee commences a judicial
proceeding or arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse the Company for any advances
pursuant to Section 8 of this Agreement until a final determination is made with respect to Indemnitee’s entitlement to indemnification
(as to which all rights of appeal have been exhausted or lapsed). The Company shall, to the fullest extent not prohibited by law, be precluded
from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions
of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the
Company is bound by all of the provisions of this Agreement.

 

(c) If
a determination shall have been made pursuant to Section 10(b) of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12,
absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement
not materially misleading, in connection with the request for indemnification.

 

(d) In
the event that Indemnitee is successful in any such judicial adjudication or arbitration, Indemnitee shall be entitled to recover
from the Company, and shall be indemnified by the Company for, any and all Expenses actually incurred by Indemnitee in seeking, pursuant
to this Section 12, a judicial adjudication of or an award in arbitration to enforce Indemnitee’s rights under, or to recover
damages for breach of, this Agreement. If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled
to receive part but not all of the indemnification or advancement of Expenses sought, the Expenses incurred by Indemnitee in connection
with such judicial adjudication or arbitration shall be allocated on a reasonable and proportionate basis.

 

(e) Interest
shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial Proceedings
Article of the Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period (i) commencing
with either the tenth day after the date on which the Company was requested to advance Expenses in accordance with Sections 8 or 9 of
this Agreement or the 45th day after the date on which the Company was requested to make the
determination of entitlement to indemnification under Section 10(b) of this Agreement, as applicable, and (ii) ending on
the date such payment is made to Indemnitee by the Company.

 

     

     

    

 

Section 13.
Defense of the Underlying Proceeding.

 

(a) Indemnitee
shall notify the Company promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or
other document relating to any Proceeding which is reasonably likely to result in the right to indemnification or the advancement of Expenses
hereunder and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding.
The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee,
to indemnification or the advancement of Expenses under this Agreement unless the Company’s ability to defend in such Proceeding
or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company
is thereby actually so prejudiced.

 

(b) Subject
to the provisions of the last sentence of this Section 13(b) and of Section 13(c) below, the Company shall have the
right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall
notify Indemnitee of any such decision to defend within 15 calendar days following receipt of notice of any such Proceeding under Section 13(a) above.
The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to
the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault
of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect
of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee or (iii) would impose any
Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 13(b) shall not apply to a Proceeding brought by
Indemnitee under Section 12 of this Agreement.

 

(c) Notwithstanding
the provisions of Section 13(b), if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status,
(i) Indemnitee reasonably concludes, based upon the opinion of counsel approved by the Company, which approval shall not be unreasonably
withheld or delayed, that Indemnitee may have one or more separate defenses or counterclaims to assert with respect to any issue which
may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon the opinion of counsel
approved by the Company, which approval shall not be unreasonably withheld or delayed, that an actual or apparent conflict of interest
or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense
of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s
choice, subject in the case of this subsection (iii) to the prior approval of the Company, which approval shall not be unreasonably
withheld or delayed, at the expense of the Company. In addition, if the Company fails to comply with any of its obligations under this
Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes
any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall
have the right to retain counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not
be unreasonably withheld or delayed, at the expense of the Company (subject to Section 12(d) of this Agreement), to represent
Indemnitee in connection with any such matter.

 

     

     

    

 

Section 14.
Non-Exclusivity; Survival of Rights; Subrogation.

 

(a) The
rights to indemnification and advancement of expenses provided by the Charter and the Bylaws shall vest immediately upon election of Indemnitee
as a [director] [and] [officer] of the Company. The rights of indemnification and advancement of Expenses as provided by this Agreement
shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Charter or
Bylaws, any agreement or a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors,
or otherwise. Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of this Agreement or of any provision hereof
shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee’s
Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction
is raised prior or subsequent to such amendment, alteration or repeal. No right or remedy herein conferred is intended to be exclusive
of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion of any right or remedy hereunder, or otherwise,
shall not prohibit the concurrent assertion or employment of any other right or remedy.

 

(b) All
rights of Indemnitee under this Agreement shall survive termination of Indemnitee’s employment with the Company.

 

(c) In
the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery
of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Company to bring suit to enforce such rights.

 

Section 15.
Insurance. The Company will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and
conditions deemed appropriate by the Board of Directors, with the advice of counsel, covering Indemnitee for any claim made against or
any expense, liability or loss incurred by Indemnitee by reason of Indemnitee’s Corporate Status and covering the Company for any
indemnification or advancement of Expenses made by the Company to Indemnitee for any claims made against Indemnitee by reason of Indemnitee’s
Corporate Status, whether or not the Company would have the power to indemnify such person against such liability under the MGCL. Additionally,
after any termination of employment of Indemnitee, for a period through the sixth anniversary of the termination of employment, the Company
shall use reasonable best efforts to maintain such directors and officers insurance covering Indemnitee. Without in any way limiting any
other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee arising out of the amount
of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses
incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in the previous sentence. The purchase,
establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Company or Indemnitee
under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company and the Indemnitee
shall not in any way limit or affect the rights or obligations of the Company under any such insurance policies. If, at the time the Company
receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise) the Company
has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance
with the procedures set forth in the respective policies. The Indemnitee shall cooperate with the Company or any insurance carrier of
the Company with respect to any Proceeding.

 

Section 16.
Coordination of Payments. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable
or payable or reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under
any insurance policy, contract, agreement or otherwise.

 

Section 17.
Reports to Stockholders. To the extent required by the MGCL, the Company shall report in writing to its stockholders the payment
of any amounts for indemnification of, or advancement of Expenses to, Indemnitee under this Agreement arising out of a Proceeding
by or in the right of the Company with the notice of the meeting of stockholders of the Company next following the date of the payment
of any such indemnification or advancement of Expenses or prior to such meeting.

 

     

     

    

 

Section 18.
Duration of Agreement; Binding Effect.

 

(a) This
Agreement shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a director,
officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or
agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture,
trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company and
(ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding (including any rights of appeal thereto and
any Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement).

 

(b) The
indemnification and advancement of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable
by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation
or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased
to be a director, officer, employee or agent of the Company or a director, trustee, officer, partner, manager, managing member, fiduciary,
employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee
benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company, and shall inure to
the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

 

(c) The
Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially
all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee,
expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to
perform if no such succession had taken place.

 

(d) The
Company and Indemnitee agree that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable
and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the Parties hereto agree
that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing
actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded
from seeking or obtaining any other relief to which Indemnitee may be entitled. Indemnitee shall further be entitled to such specific
performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without
the necessity of posting bonds or other undertakings in connection therewith. The Company acknowledges that, in the absence of a waiver,
a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of such a bond or undertaking.

 

Section 19.
Most-Favored Nation. If the Company provides indemnification to another current or former director [or officer] of the Company
on terms that are more favorable to such current or former director [or officer] than the terms of indemnification contained in this Agreement,
then this Agreement shall automatically be deemed to be amended (without any action on the part of the Company or Indemnitee) to include
such more favorable terms.

 

     

     

    

 

Section 20.
Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation,
each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable
that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable
to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform
to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the
provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing
any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed
so as to give effect to the intent manifested thereby.

 

Section 21.
Identical Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed
to be an original but all of which together shall constitute one and the same Agreement. One such counterpart signed by the party against
whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.

 

Section 22.
Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute
part of this Agreement or to affect the construction thereof.

 

Section 23.
Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing
by both of the Parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

Section 24.
Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been
duly given if (i) delivered by hand or facsimile and receipted for by the Party to whom said notice or other communication shall
have been directed, on the day of such delivery, or (ii) mailed by certified or registered mail with postage prepaid, on the third
business day after the date on which it is so mailed:

 

(a) If
to Indemnitee, to the address set forth on the signature page hereto.

 

(b) If
to the Company, to:

 

Orion
Office REIT Inc.

2325
East Camelback Road, Floor 8

Phoenix,
AZ 85016

Attention:

Facsimile:

 

with
a copy to:

 

Latham &
Watkins LLP

650
Town Center Drive

Costa
Mesa, CA 92705

Attention:
William Cernius; Darren Guttenberg

Facsimile:
714-755-8290

 

or
to such other address as may have been furnished in writing to Indemnitee by the Company or to the Company by Indemnitee, as the case
may be.

 

     

     

    

 

Section 25.
Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland,
without regard to its conflicts of laws rules.

 

Section 26.
Contribution. If the indemnification provided in this Agreement is unavailable in whole or in part and may not be paid to Indemnitee
for any reason, other than for failure to satisfy the standard of conduct set forth in Section 4 or due to the provisions of Section 5,
then, in respect to any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding),
to the fullest extent permissible under applicable law, the Company, in lieu of indemnifying and holding harmless Indemnitee, shall pay,
in the first instance, the entire amount incurred by Indemnitee, whether for Expenses or judgments, penalties, fines and settlements,
in connection with any Proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes
any right of contribution it may have at any time against Indemnitee.

 

[SIGNATURE
PAGE FOLLOWS]

 

     

     

    

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written.

 

	 	COMPANY:
	 	 
	 	ORION
OFFICE REIT INC.

 

 

		By:	 
	 	 	 
	 	 	Name:
	 	 	Title:

 

 

	 	INDEMNITEE

 

			 
	 	 	 
	 	 	Name:
	 	 	Address:

 

[Signature Page to Indemnification Agreement]Exhibit 10.4

 

LIMITED
LIABILITY COMPANY AGREEMENT

OF

OAP/VER
VENTURE, LLC

 

THIS
LIMITED LIABILITY COMPANY AGREEMENT is made and entered into as of this 13th day of January, 2020, by and between VEREIT REAL
ESTATE, L.P., a Delaware limited partnership (the "VEREIT Member"), and OAP HOLDINGS LLC, a Delaware limited
liability company (the "Investor Member").

 

ARTICLE
1

DEFINITIONS 

 

The
following terms used in this Agreement shall have the following meanings (unless otherwise expressly provided herein):

 

"Acquisition
Costs." Those costs related to the acquisition of a Target Property, which includes, among other costs, the purchase
price of such Target Property, legal fees and other professional fees, due diligence review costs, title insurance premiums, escrow charges,
transfer taxes, and all fees and expenses relating to any proposed financing of such Target Property.

 

"Additional
Capital Contributions." Any Capital Contributions of the Members to the Company made in accordance with Section 8.4 of this
Agreement.

 

"Additional
Property." Any Target Property acquired by the Company pursuant to the terms of Article 7 of this Agreement. In the case of
one or more thereof, the "Additional Properties."

 

"Additional Property
Acquisition Contribution." As defined in Section 8.3.

 

"Adjusted
Capital Account Deficit." With respect to each Member, the deficit balance, if any, in such Member's Capital Account as of the
end of the applicable Fiscal Year or other period, after giving effect to the following adjustments:

 

(a)         Credit
to such Capital Account any amounts which such Member is obligated to restore pursuant to any provisions of this Agreement or is deemed
to be obligated to restore pursuant to Sections 1.704-2(g)(1) and 1.704-2(i)(5) of the Regulations; and

 

(b)         Debit
to such Capital Account the items described in paragraphs (4), (5) and (6) of Section 1.704-1(b)(2)(ii)(d) of the Regulations.

 

"Administrative
Member." The Member designated as the Administrative Member pursuant to Section 5.5(a) of this Agreement. The VEREIT Member
is the initial Administrative Member.

 

     

     

    

 

"Administrative
Member Financing Default." Any Financing Default to the extent caused by the intentional act or omission of the Administrative
Member, without the knowledge or prior approval of the other Member. For the avoidance of doubt, the Administrative Member's obligation
to expend its own funds on behalf of the Company, or to make any capital contribution to the Company, in the event that a Financing Default
is threatened to occur due to a lack of funds held by the Company or any Subsidiary, will not constitute an Administrative Member Financing
Default.

 

"Affiliate."
With respect to any Person, an Entity Controlling, Controlled by, or under common Control with such Person.

 

"Affiliated
Contract." Any contract, agreement, or arrangement between the Company and/or one or more Subsidiaries, on the one hand, and
a Member or an Affiliate of any Member, on the other hand.

 

"Agreed
Value." As to any Initial Property, the amount set forth on Exhibit B hereto with respect to such Initial Property.

 

"Agreement."
This Limited Liability Company Agreement of the Company, as amended from time to time.

 

"Anti-Terrorism
Laws." As defined in Section 4.2(d).

 

"Applicable
Employee Misconduct." As defined in the definition of Excusable Employee Misconduct.

 

"Approved
Budget." Refers to any Company Operating Budget or Property Operating Budget approved by the Members pursuant to Section 5.4.

 

"Approval
Rights." A Member's right to participate in the management of the Business, including the right to consent to, approve, or otherwise
participate in any decisions or actions of or by the Company or the Members, but only to the extent expressly provided in this Agreement
or in the Delaware Act. Each Member shall have Approval Rights appurtenant to its Membership Interest unless otherwise expressly provided
in this Agreement, unless such Member is only an Economic Interest Owner, or unless any of its predecessors in interest with respect
to its Membership Interest was an Economic Interest Owner only.

 

"Assumed
Tax Liability." The expected aggregate federal, state, and local tax liability of a Member attributable to items of income,
gain, loss, and deduction allocated to such Member for income tax purposes (excluding allocations under Section 704(c) of the Code) for
a given Fiscal Year, assuming the highest marginal federal, state, and local income or similar tax rate applicable to any Member as if
such Member resides in New York, New York, taking into account the character of the relevant income or loss to such Member and the deductibility,
if any, of any state, local, or foreign tax in computing any state or federal tax liability.

 

"Bankruptcy."
With respect to any Member or Guarantor, (a) a general assignment for the benefit of the creditors of such Person, (b) the appointment
of a receiver, trustee, or custodian for all or any substantial part of the property and assets of such Person, or (c) the entry of an
 "order for relief' against such Person in, or the commencement by such Person of, any proceeding under present or future bankruptcy
laws or under any other bankruptcy, insolvency, or other laws respecting debtor's rights.

 

    -2-

     

    

 

"Breach."
A material breach of this Agreement not specifically enumerated under Section 5.5(c)(i)-(c)(viii), including without limitation, a failure
by the Administrative Member to carry out its duties under this Agreement in substantial accordance with the Standard of Care, which
failure or breach is not cured within fifteen (15) days after the breaching party receives written notice thereof from the non-breaching
party (or if such breach is not curable within fifteen (15) days but the breaching party has exercised reasonable efforts to cure such
breach within such fifteen (15) day period, the breaching party shall have an additional thirty (30) days in which to cure such breach
so long as it diligently pursues the completion of such cure following written notice from the non-breaching party). For avoidance of
doubt, notwithstanding anything provided in this Agreement, a Member's failure to make an Additional Capital Contribution or an Additional
Property Acquisition Contribution shall not constitute a Breach by such Member for purpose of this Agreement.

 

"Business."
As defined in Article 3.

 

"Business
Day." Any day of the week other than Saturday, Sunday, or a day which is a state or Federal holiday and on which financial institutions
or post offices are generally closed in the State of New York or the State of Arizona.

 

"Business
Plan." As defined in Section 5.4(b)(i).

 

"Call
Option Letter" In relation to a Property, the call option letter issued by the Title Holder to the Master Lessee in connection
with the Master Lease for such Property.

 

"Capital
Account." A capital account maintained for each Member in accordance with the rules set forth in Section 1.704-1(b)(2)(iv) of
the Regulations. Subject to the foregoing, a Member's Capital Account generally shall be:

 

(a)        increased
by (i) the amount of money contributed by such Member to the Company, including Company liabilities assumed by such Member, (ii) the
fair market value (which is stipulated to be the Agreed Value in the case of the Initial Properties) of property contributed by such
Member to the Company (net of liabilities secured by such property that the Company is considered to assume or take subject to under
Section 752 of the Code), and (iii) allocations to such Member of Net Profits (and items thereof) and items of income and gain that are
specially allocated to such Member pursuant to Section 10.5; and

 

(b)        decreased
by (i) the amount of money distributed to such Member by the Company, including such Member's individual liabilities assumed by the Company,
(ii) the fair market value of all property distributed to such Member by the Company (net of liabilities secured by such property that
such Member is considered to assume or take subject to under Section 752 of the Code), and (iii) allocations to such Member of Net Losses
(and items thereof) and items of deduction or loss specially allocated to such Member pursuant to Section 10.5.

 

Upon
the Transfer of an Economic Interest in the Company, the transferee shall succeed to the Capital Account of the transferor with respect
to the Transferred Economic Interest.

 

    -3-

     

    

 

"Capital
Contribution." With respect to each Member, the amount of cash or the agreed fair market value of property (net of liabilities
secured by such property) paid in or transferred to the Company by that Member pursuant to Sections 8.1, 8.2, 8.3, or 8.4 of this Agreement.

 

"Capital
Contribution Notice." As defined in Section 8.4(b).

 

"Capital
Transaction." Sales, financings, and refinancings of any Property, the Company's membership interest in any Subsidiary, or any
Mezz Subsidiary's interest in a Master Lessee, and transactions generating condemnation awards or payment of title insurance proceeds,
or casualty loss insurance proceeds to the Company or any Subsidiary.

 

"Cause
and "Cause Event." As defined in Section 5.5(c).

 

"Certificate
of Formation." The Certificate of Formation of the Company, as originally filed and as subsequently supplemented, amended and/or
restated from time to time.

 

"Code."
The Internal Revenue Code of 1986, as it may be amended from time to time, or any provision of succeeding law.

 

"Company."
OAP/VER VENTURE, LLC, a Delaware limited liability company.

 

"Company
Expenses." Expenses incurred directly by the Company or the Subsidiaries, or by the Administrative Member on behalf of the Company
or the Subsidiaries in accordance with the terms of this Agreement, which shall include, among other things, the legal and accounting
expenses as may be incurred in the conduct of the Business or the Subsidiaries' Business; respectively.

 

"Company
Minimum Gain." "Partnership minimum gain," as defined in Section 1.7042(d) of the Regulations. Subject to the foregoing,
Company Minimum Gain shall equal the amount of gain, if any, which would be recognized by the Company with respect to each Nonrecourse
Liability of the Company if the Company were to transfer the Company's property which is subject to such Nonrecourse Liability in full
satisfaction thereof and for no other consideration.

 

"Company
Operating Budget." As defined in Section 5.4(a)(i).

 

"Contributing
Member." As defined in Section 8.5.

 

"Contribution
Date." The Contribution Date with respect to each Initial Property shall be the closing date for the conveyance of such Initial
Property to a Master Lessee or Title Holder pursuant to the Formation Agreement.

 

"Control."
When used with respect to any specified Person, Control means the power to direct the management and policies of such Person, directly
or indirectly, whether through the ownership of voting interests, by contract or otherwise, and the terms Controlling and Controlled
shall have meanings correlative to the foregoing.

 

"Deficiency."
As defined in Section 8.5.

 

    -4-

     

    

 

"Delaware
Act." The Delaware Limited Liability Company Act, as amended from time to time.

 

"Depreciation."
For each Fiscal Year, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable with respect to an
asset for such Fiscal Year, except that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax purposes
at the beginning of such Fiscal Year, Depreciation shall be an amount which bears the same ratio to such beginning Gross Asset Value
as the federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year bears to such beginning adjusted
tax basis; provided, however, that if the adjusted basis for federal income tax purposes of an asset at the beginning of such Fiscal
Year is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected
by the Administrative Member.

 

"Designated
Individual." Has the meaning assigned to it in Section 301.6223-1(b)(3) of the Regulations.

 

"Distributable
Cash from Capital Transactions." The total gross cash receipts of the Company derived from Capital Transactions involving the
Company's membership interest in any Subsidiary, a Mezz Subsidiary's membership interest in a Master Lessee, or from distributions by
any Subsidiary to the Company derived from Capital Transactions involving a Property, and from Reserves derived from Capital Transactions
which the Administrative Member has determined are no longer needed to be retained, less any of such gross receipts (a) applied to the
expenses (including Company Expenses) associated with any such Capital Transaction, including any expenses of restoration and repair
in the case of a casualty or condemnation event, (b) set aside for Reserves pursuant to the provisions of this Agreement at the time
of calculation of such Distributable Cash from Capital Transactions, or (c) applied to pay down any indebtedness of the Company or any
Subsidiary associated with any such Capital Transaction in accordance with the terms of any Loan Documents or as otherwise mutually agreed
by the Members. Distributable Cash from Capital Transactions shall be calculated on a Property-by-Property basis, based on the separate
books and records maintained by the Company with respect to such Property and applicable Subsidiary pursuant to Section 11.2 hereof .

 

"Distributable
Cash from Operations." The total gross cash receipts of the Company (on a collective basis and not on a Property-by-Property
basis) derived from all sources other than Capital Transactions, including but not limited to distributions from the Subsidiaries (other
than distributions derived from Capital Transactions), together with any amounts that have been previously included in Reserves maintained
by the Company which the Administrative Member has determined are no longer needed to be retained (excluding amounts arising from Capital
Transactions that previously have been included in Reserves), less any of such gross receipts applied to (a) Operating Expenses, (b)
any increases in Reserves maintained by the Company and the Subsidiaries pursuant to the provisions of this Agreement, or (c) the pay
down of any indebtedness of the Company or any Subsidiary in accordance with the terms of applicable Loan Documents.

 

"Economic
Interest." A Member's share of one or more of the Company's Net Profits, Net Losses and rights to distributions of the Company's
assets pursuant to this Agreement and the Delaware Act, but specifically excluding any Approval Rights under this Agreement or the Delaware
Act.

 

    -5-

     

    

 

"Economic
Interest Owner." The owner of an Economic Interest only, without any Approval Rights.

 

"Emergency
Expenses." Any expenditures determined by the Administrative Member in good faith to be necessary to prevent material injury
to a Property, a Subsidiary or the Company or for the safekeeping, health and welfare of the occupants or invitees thereof from imminent
or immediate harm.

 

"Entity."
A general partnership, limited partnership, limited liability company, corporation, joint venture, trust, business trust, cooperative,
association, estate, nominee, or other legal entity or organization, whether domestic or foreign.

 

"Entity
Tax." As defined in Section 16.12(f).

 

"Equity
Investment Amount." As of any time, with respect to each Property, an amount equal to the total net equity invested by the Members
in such Property, being the sum of all Capital Contributions previously made by the Members to the Company which are allocated to such
Property (after the Special VEREIT Member Distribution described in Section 9.3 in the case of the Initial Properties), less the aggregate
amount of Distributable Cash from Capital Transactions previously distributed to the Members with respect to such Property pursuant to
the terms of Section 9.2(a) or 9.2(b) and applied to the return of the Members' Capital Contributions with respect to such Property.

 

"Event
of Dissociation." As defined in Section 13.1(b).

 

"Excusable
Employee Misconduct." The commission of an act described in Section 5.5(c), by an employee of the Administrative Member or an
Affiliate thereof (the "Applicable Employee Misconduct") if each of the following conditions is satisfied: (a) the Applicable
Employee Misconduct is committed without the prior actual knowledge of any executive officer of such Administrative Member or Affiliate
(an "Executive Officer"); (b) promptly after any of the Executive Officers receiving actual knowledge of the Applicable
Employee Misconduct, the Executive Officers provide notice to the Investor Member and cause the removal (at the expense of the Administrative
Member or its Affiliate) of all employee(s) who committed the Applicable Employee Misconduct from any work with respect to the Company,
any Subsidiary, and all Properties; and (c) the Executive Officers cause such Applicable Employee Misconduct to be cured and reimburse
the Company and Subsidiaries for any and all losses sustained by the Company and the Subsidiaries as a result of such Applicable Employee
Misconduct within (x) ten (10) days after any of the Executive Officers receive actual knowledge of such Applicable Employee Misconduct
in the event of monetary Applicable Employee Misconduct, or (y) thirty (30) days after any of the Executive Officers receive actual knowledge
of such Applicable Employee Misconduct in the event of non-monetary Applicable Employee Misconduct (or within such longer period of time,
not to exceed sixty (60) days, if such Applicable Employee Misconduct cannot reasonably be cured within such thirty (30) day period and
so long as the Executive Officers are diligently pursuing a cure); provided, however, that in no event shall any particular Applicable
Employee Misconduct become Excusable Employee Misconduct if such Applicable Employee Misconduct recurs more than two (2) times during
the term of the Company.

 

    -6-

     

    

 

"Executive
Order." As defined in Section 4.2(d).

 

"Final
Acquisition Cost Budget." As defined in Section 7.5.

 

"Final
Acquisition Proposal." As defined in Section 7.5.

 

"Financing
Default" An "event of default" under the Master Lease Financing for any Property, unless such event of default (i)
is cured within any applicable cure period under such Master Lease Financing, or (ii) is cured after any applicable cure period under
such Master Lease Financing and such cure is accepted by the Lender of such financing, or (iii) is waived by the Lender of such financing.
Cure periods, waivers or other provisions in this Agreement that relate to events or conditions that constitute or could constitute an
event of default under the Master Lease Financing are not relevant in determining whether an event of default has occurred under such
Master Lease Financing.

 

"Fiscal
Year." The Company's and the Subsidiaries' fiscal years, which shall be the calendar year.

 

"Formation
Agreement." That certain Formation Agreement dated November 7, 2019, as amended, by and between VEREIT OP, as predecessor in
interest to the VEREIT Member, and Investor Member.

 

"Gatehouse
Capital." Gatehouse Capital Economic and Financial Consultancy K.S.C.C., a Kuwait shareholding company (closed).

 

"Gatehouse
Member." Gatehouse Capital, any Entity Controlling, Controlled by, or under Common Control with Gatehouse Capital, or any Entity
which results from a merger or consolidation by or with Gatehouse Capital, so long as the surviving or successor member is Controlled
by, or under Common Control with, Gatehouse Capital.

 

"Gross
Asset Value." Means with respect to any asset, the asset's adjusted basis for federal income tax purposes, except as follows:

 

(a)        The
initial Gross Asset Value of any asset contributed by a Member to the Company or any Subsidiary shall be the gross fair market value
of such asset, as determined by the Administrative Member with the consent of all Members having Approval Rights, provided that the initial
Gross Asset Value of the Initial Properties contributed to the Company and/or the Subsidiaries by VEREIT Member pursuant to the Purchase
Agreements shall be as set forth in Exhibit B;

 

(b)        The
Gross Asset Values of all Company or Subsidiary assets shall be adjusted to equal their respective gross fair market values (taking Section
7701(g) of the Code into account), as determined by the Administrative Member as of the following times: (i) the acquisition of an additional
Interest by any new or existing Member in exchange for more than a de minimis Capital Contribution; (ii) the distribution by the Company
to a Member of more than a de minimis amount of Company property as consideration for an Interest; and (iii) the liquidation of the Company
or Subsidiary within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Regulations, provided that an adjustment described in clauses
(i) and (ii) of this paragraph shall be made only if the Administrative Member reasonably determines that such adjustment is necessary
to reflect the relative economic interests of the Members in the Company;

 

    -7-

     

    

 

(c)        The
Gross Asset Value of any item of Company assets distributed to any Member shall be adjusted to equal the gross fair market value (taking
Section 7701(g) of the Code into account) of such asset on the date of distribution as determined by the Administrative Member; and

 

(d)        The
Gross Asset Values of Company or Subsidiary assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis
of such assets pursuant to Sections 734(b) or 743(b) of the Code, but only to the extent that such adjustments are taken into account
in determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations and subparagraph (f) of the definition of
 "Net Profits and Net Losses"; provided, however, that Gross Asset Values shall not be adjusted pursuant to this subparagraph
(d) to the extent that an adjustment pursuant to subparagraph (b) is required in connection with a transaction that would otherwise result
in an adjustment pursuant to this subparagraph (d).

 

If
the Gross Asset Value of an asset has been determined or adjusted pursuant to subparagraph (a), (b) or (d), such Gross Asset Value shall
thereafter be adjusted by the Depreciation taken into account with respect to such asset, for purposes of computing Net Profits and Net
Losses.

 

"Guarantee."
As defined in Section 8.6(b).

 

"Guarantor."
As defined in Section 8.6(b).

 

"Indemnitee."
(i) Any Person made a party to a proceeding or threatened with being made a party to a proceeding by reason of the Person's status as
(A) the Administrative Member, an Affiliate of the Administrative Member, or their respective members, managers, shareholders, directors,
officers and employees, (B) a Member, an Affiliate of a Member or their respective managers, directors, officers, employees, shareholders,
and members, and any other Person who serves at the request of the Administrative Member on behalf of the Company as an officer, director,
member, or employee of the Company or any Subsidiary, and (ii) such other Persons (including Affiliates of the Administrative Member,
a Member, or the Company) as the Administrative Member may designate in writing from time to time (whether before or after the event
giving rise to potential liability); provided, that "Indemnitee" shall not include an Administrative Member removed
for Cause or a Member with respect to any proceeding brought against such Member pursuant to Section 5.9(b).

 

"Initial
Administrative Member." As defined in Section 5.5(a).

 

"Initial
Capital Contributions." With respect to each Member, the amount of cash paid in and/or the Initial Properties transferred to
the Company or to a Title Holder by that Member pursuant to Section 8.1 and 8.2 of this Agreement.

 

    -8-

     

    

 

"Initial
Contribution Account." With respect to each of the Initial Properties, a book-entry account to be maintained by the Company
for each Member equal to the Initial Capital Contributions made by such Member pursuant to Section 8.1 or 8.2, as applicable, in connection
with the conveyance of such Property to the Company (or the applicable Title Holder), less the aggregate distributions made by the Company
to such Member with respect to such Property pursuant to Section 9.2(a)(ii) or Section 9.2(a)(iii), as applicable.

 

"Initial
Properties." Collectively, the properties identified in Exhibit B hereto. Individually, each such property constitutes
an "Initial Property."

 

"Interest."
Any interest in the Company, including a Membership Interest with Approval Rights or an Economic Interest only.

 

"IRR."
With respect to the Investor Member, an internal rate of return of the applicable percentage per annum, compounded annually, on the aggregate
sum of the Capital Contributions of such Member, commencing on the later of (a) the date or dates that such Member's Capital Contributions
are received by the Company or (b) the date of this Agreement, and taking into account the timing and amounts of all distributions from
the Company. In making the foregoing calculation, it shall be assumed that all Capital Contributions made by a Member, and all distributions
received by a Member, occur on the first day of the month which is closest to the date actually made or received. IRR shall be calculated
using the "XIRR" function in Microsoft ExcelTM version 13.0 or later or similar program.

 

"Investor
Member." As defined in the Introduction.

 

"Investor
Member Representative." The Person designated by the Investor Member from time to time as its representative for the purpose
of interaction with the Administrative Member under this Agreement. Unless and until written notice to the Administrative Member to the
contrary is given by the Investor Member, all approvals required or requested from the Investor Member hereunder shall be given by such
representative, and the Administrative Member may rely thereon. Initially, the Investor Member Representative shall be Petra Conte. The
Investor Member may change its representative by written notice at any time.

 

"Investor
Permitted Transfer." The following sales, transfers or assignments:

 

(a)        Subject
to the requirements of subparagraphs (b)(v) and (b)(vi) below, the transfer of (i) the entire direct interest of the Investor Member
in the Company to an Entity which is an Affiliate of the Gatehouse Member, or (ii), any indirect interest in the Company to an Entity
which is an Affiliate of the Gatehouse Member; and

 

(b)        The
syndication, sale, or transfer to any individual or Entity of direct or indirect interests in the Investor Member, and the pledge of
direct or indirect interests in the Investor Member as security to any party providing funding to the holder of any such interest, so
long as:

 

(i)       There
is no non-compliance with any federal or state securities laws;

 

    -9-

     

    

 

(ii)             
 Investor Member continues to be Controlled by the Gatehouse Member. For the avoidance of doubt, the foreclosure of a pledge of
the direct or indirect interests of the Gatehouse Member which results in a loss of Control of the Investor Member by the Gatehouse Member
shall not be an Investor Permitted Transfer;

 

(iii)           
Investor Member shall provide to VEREIT Member copies of all "Know Your Customer" information provided by the holders
of such direct or indirect ownership interests in Investor Member which are provided to any Lender. If such information is not required
by a Lender with respect to any Person who, as a result of such transfer, directly or indirectly owns ten percent (10%) or more of the
voting interests in the Investor Member pursuant to 31 C.F.R. § 800.302(b) and as defined at 31 C.F.R. § 800.228, Investor
Member nevertheless shall provide typical "Know Your Customer" information for such Person to VEREIT Member;

 

(iv)            
No such transfer shall result in any Person and Affiliates of such Person other than the Gatehouse Member and Affiliates of the
Gatehouse Member, directly or indirectly owning more than twenty percent (20%) of the ownership interests in the Investor Member in the
aggregate;

 

(v)              
The Investor Member shall continue to be able to make the representations of the Investor Member set forth in Section 4.3; and

 

(vi)            
Such transfer shall be in compliance with all applicable requirements of any Loan or Master Lease to which the Company or any
Subsidiary is a party.

 

"Investor
Permitted Transferee." Any transferee pursuant to an Investor Permitted Transfer.

 

"Lease."
A lease of any Property or of space within any Property.

 

"Legal
Proceeding." Any action, dispute, controversy, claim, counter-claim, suit, litigation, arbitration, proceeding (including any
civil, criminal, administrative, investigative or appellate proceeding), hearing, inquiry, audit, examination or investigation commenced,
brought, conducted or heard by or before, or otherwise involving, any court or other governmental authority or any arbitrator or arbitration
panel.

 

"Lender."
Any Entity which makes a Loan to the Company, any Subsidiary, or a Title Holder in connection with a Master Lease Financing.

 

"Liquidators."
As defined in Section 13.3(a).

 

"Loan."
Any loan or financing assumed or obtained by the Company, any Subsidiary or a Title Holder from an Entity which is not a Member or an
Affiliate of a Member. The accrual of payables in connection with the operation of the Business and the Subsidiaries' Businesses shall
not be Loans for the purposes hereof.

 

"Loan
Documents." The agreements, instruments, certificates, and other documents evidencing and, if applicable, securing any Loan.

 

"Major
Decision." As defined in Section 5.2(b).

 

    -10-

     

    

 

"Majority
in Interest." The Member or group of Members whose Ownership Percentage(s) equals or exceeds 51%.

 

"Master
Lease" In relation to a Property, the master lease agreement between the Title Holder and the Master Lessee of such Property
(whether directly or through a joinder or supplement thereto) in connection with the Master Lease Financing of such Property.

 

"Master
Lease Documents." In relation to a Property, the Master Lease, the Put Option Letter, the Call Option Letter, the Supplemental
Agreement and the Tax Matters Agreement for such Property.

 

"Master
Lease Financing." In relation to a Property, the financing provided by a Lender to the Master Lessee of such Property through
the Title Holder and the Master Lease Documents for such Property.

 

"Master
Lessee" In relation to a Property, the limited liability company or limited partnership that is the master lessee of such Property
pursuant to the Master Lease for such Property.

 

"Member."
Each Person who executes this Agreement or a counterpart hereof as a Member, and each of the Persons who may hereafter become Members
as provided in this Agreement, but only so long as such Person holds an Interest in the Company.

 

"Member
Loan." As defined in Section 8.5(b).

 

"Member
Loan Option." As defined in Section 8.5(a).

 

"Member
Minimum Gain." "Partner nonrecourse debt minimum gain," as defined in Section 1.704-2(i) of the Regulations. Subject
to the foregoing, Member Minimum Gain shall equal the amount of gain, if any, that would be recognized by a Member if the Member Nonrecourse
Debt of such Member were treated as a Nonrecourse Liability and the property that is subject to such deemed Nonrecourse Liability were
transferred in full satisfaction thereof and for no other consideration.

 

"Member
Nonrecourse Debt." "Partner nonrecourse debt," as defined in Section 1.7042(b)(4) of the Regulations.

 

"Member
Nonrecourse Deductions." "Partner nonrecourse deductions," as defined in Section 1.704-2(i) of the Regulations. Subject
to the foregoing, the amount of Member Nonrecourse Deductions with respect to a Member Nonrecourse Debt for a Fiscal Year shall equal
the excess, if any, of the net increase, if any, in the amount of Member Minimum Gain attributable to such Member Nonrecourse Debt during
that Fiscal Year over the aggregate amount of any distribution during that Fiscal Year to the Member that bears the economic risk of
loss for such Member Nonrecourse Debt to the extent such distributions are from the proceeds of such Member Nonrecourse Debt and are
allocable to an increase in Member Minimum Gain attributable to such Member Nonrecourse Debt, determined in accordance with Section 1.704-2(i)
of the Regulations.

 

    -11-

     

    

 

"Membership
Interest." A Member's entire interest in the Company including without limitation such Member's Economic Interest and any Approval
Rights granted pursuant to this Agreement or the Delaware Act.

 

"Mezz
Subsidiary." Any Entity formed by the Company for the purpose of owning the membership interest in one or more Master Lessees.
Collectively, the "Mezz Subsidiaries."

 

"Necessary
Funds." Any and all funds needed by the Company or any Subsidiary which are in excess of the Company's or such Subsidiary's
net operating revenues and Reserves for one or more of the following purposes: (a) to pay the costs and expenses of the ownership, operation,
maintenance, repair, renovation, alteration, management, and/or leasing of the Properties, (b) to pay the costs of performing the agreements
of the Company or the Subsidiaries under any Leases, contracts, agreements, commitments, or other instruments to which the Company or
the Subsidiaries are or shall become a party, (c) to pay, when due, real estate and other taxes affecting the Properties, and insurance
premiums for the insurance policies maintained in accordance with the terms of this Agreement for the Properties, the Company and the
Subsidiaries, (d) to comply with all legal requirements now or hereafter applicable to the Properties and the operation and management
thereof, (e) to restore any Property in the event of a fire or other casualty, if a determination is made by the Members to perform such
restoration or if the Company or the Subsidiary is contractually obligated to restore such damage, and (f) to pay any and all other authorized
Company and Subsidiary liabilities, including, without limit thereto, debt service on any Loan or other indebtedness incurred by the
Company or any Subsidiary in accordance with the Approved Budget (not including any Member Loan). Acquisition Costs in connection with
the acquisition of Additional Properties shall not be considered Necessary Funds for purposes of Section 8.4 of this Agreement.

 

"Net
Profits" and "Net Losses." For each Fiscal Year or other period, an amount equal to the Company's taxable income
or loss, respectively, for such year or period, determined in accordance with Section 703(a) of the Code (and for this purpose, all items
of income, gain, loss, or deduction required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable
income or loss), with the following adjustments:

 

(a)        Any
income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Net Profits or Net Losses
pursuant to this definition shall be added to such taxable income or loss;

 

(b)        Any
expenditures of the Company described in Section 705(a)(2)(B) of the Code or treated as 705(a)(2)(B) expenditures pursuant to Section
1.704-1(b)(2)(iv)(i) of the Regulations, and not otherwise taken into account in computing Net Profits or Net Losses pursuant to this
definition shall be subtracted from such taxable income or loss;

 

(c)        In
the event the book value of any Company asset is adjusted in compliance with Section 1.704-1(b) of the Regulations, the amount of such
adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Net Profits or Net
Losses;

 

    -12-

     

    

 

(d)        
Gain or loss resulting from any disposition of Company asset with respect to which gain or loss is recognized for federal income
tax purposes shall be computed by reference to the book value of the asset disposed of notwithstanding that the adjusted tax basis of
such property differs from its book value;

 

(e)        In
lieu of the depreciation, amortization, and other cost recovery deductions taken into account in computing such taxable income or loss,
there shall be taken into account Depreciation for such Fiscal Year, computed in accordance with the definition of Depreciation;

 

(f)        To
the extent an adjustment to the adjusted tax basis of any Company or Subsidiary asset pursuant to Section 743(b) or Section 734(b) of
the Code is required, pursuant to Section 1.704 1(b)(2)(iv)(m)(2) or 1.704 1(b)(2)(iv)(m)(4) of the Regulations, to be taken into account
in determining Capital Accounts, the amount of such adjustment shall be treated as an item of gain (if the adjustment increases the basis
of the asset) or loss (if the adjustment decreases such basis) from the disposition of such asset and shall be taken into account for
purposes of computing Net Profits or Net Losses; and

 

(g)       Notwithstanding
any other provision of this definition, any items which are specially allocated pursuant to Section 10.5 shall not be taken into account
in computing Net Profits or Net Losses.

 

"Nonrecourse
Deductions." As defined in Sections 1.704-2(b)(1) and 1.704-2(c) of the Regulations. Subject to the preceding sentence, the
amount of Nonrecourse Deductions for a Fiscal Year shall equal the excess, if any, of the net increase, if any, in the amount of Company
Minimum Gain during that Fiscal Year (determined under Section 1.704-2(d) of the Regulations) over the aggregate amount of any distributions
during that Fiscal Year of proceeds of a Nonrecourse Liability that are allocable to an increase in Company Minimum Gain (determined
under Section 1.704-2(h) of the Regulations).

 

"Nonrecourse
Liability." As defined in Section 1.704-2(b)(3) of the Regulations.

 

"Officer."
An individual appointed by the Administrative Member pursuant to Section 5.10 to whom the Administrative Member delegates specified responsibilities
or authority.

 

"Operating
Expenses." All cash expenditures made by the Company in connection with conducting the Business or by the Subsidiaries in connection
with conducting the Subsidiaries' Business, including, but not limited to, Company Expenses, any lease payments arising under any Master
Lease Financing, or debt service arising from any Loan or other indebtedness of the Company or the Subsidiaries, provided that notwithstanding
the foregoing, Operating Expenses shall not include: (a) any cash or capital expenditures funded from the Reserves of the Company or
any Subsidiary; (b) non-cash items such as depreciation and amortization; (c) expenses associated with any Capital Transaction (including
any related Company Expenses) or (d) during any period when an Affiliate of the Administrative Member is the Portfolio Manager for the
Properties, property management expenses and other expenses related to oversight and inspection of the Properties (which will be covered
by the fees payable to the Affiliate of the Administrative Member that is the Portfolio Manager pursuant to the Portfolio Management
Agreement), including without limitation the Administrative Member's meetings with Affiliates of the Administrative Member and the costs
of Property tours.

 

    -13-

     

    

 

"Operating
Guidelines." As defined in Exhibit E.

 

"Ownership
Percentage." For each Member, the Ownership Percentage set forth on Exhibit A hereto.

 

"Partnership
Representative." The "partnership representative" of the Company for purposes of Section 6223 of the Code, as amended
by the Revised Partnership Audit Procedures.

 

"Permitted
Transferee." Any VEREIT Permitted Transferee or any Investor Permitted Transferee.

 

"Person."
An individual or Entity, and the heirs, executors, administrators, legal representatives, successors, and assigns of such Person where
the context so permits.

 

"Portfolio
Manager." The Person engaged by the Company and/or the Subsidiaries to operate the Properties in accordance with the terms of
the Portfolio Management Agreement. The initial Portfolio Manager shall be VEREIT Realty Advisors, LLC.

 

"Portfolio
Management Agreement." The Portfolio Management Agreement to be entered into between the Company and the Portfolio Manager pursuant
to Section 5.11(a). The form of the Portfolio Management Agreement is attached hereto as Exhibit C.

 

"Pre-Acquisition
Budget." As defined in Section 7.2.

 

"Preliminary
Acquisition Proposal(s)." As defined in Section 7.2.

 

"Prohibited
Person." A Person that satisfies any of the following: (a) a Person that is listed in the annex to, or is otherwise subject to,
the provisions of the Executive Order; (b) a Person owned or Controlled by, or acting for or on behalf of, any Person that is listed
in the annex to, or is otherwise subject to the provisions of, the Executive Order; (c) a Person with whom any party is prohibited from
dealing or otherwise engaging in any transaction by any Anti-Terrorism Law, including without limitation the Executive Order and the
USA Patriot Act; (d) a Person who commits, threatens, or conspires to commit or support "terrorism" as defined in Section 3(d)
of the Executive Order; (e) a Person that is named as a "specially designated national and blocked person" on the then-most
current list published by the U.S. Treasury Department Office of Foreign Assets Control at its official website, http://www.treas.gov/offices/eotffc/ofac/sdn/tllsdn.pdf,
or at any replacement website or other replacement official publication of such list; and (f) a Person who is affiliated with a Person
listed in items (a) through (e), above.

 

"Property."
Each real estate asset owned by the Company from time to time, directly or indirectly, including the Initial Properties and the Additional
Properties, to the extent the same are owned by the Company, directly or indirectly, at the applicable time. In the case of two or more
thereof, the "Properties."

 

"Property
Operating Budget." As defined in Section 5.4(b)(i)(A).

 

    -14-

     

    

 

"Pursuit
Costs." All costs of identifying, investigating, reviewing, and analyzing the feasibility and desirability of acquiring Target
Properties, including travel costs, the costs of environmental, engineering, title, and other reports of third party consultants, attorneys'
fees incurred in connection with the negotiation of letters of intent, purchase agreements, and other contractual documentation relating
to any such proposed acquisition and in connection with due diligence regarding any Target Property, and all costs of identifying, applying
for, and negotiating any financing in connection with the proposed acquisition of a Target Property; provided, however, Pursuit Costs
shall not include the corporate overhead of a Member or any Affiliate of a Member.

 

"Put
Option Letter" In relation to a Property, the put option letter issued by the Master Lessee to the Title Holder in connection
with the Master Lease for such Property.

 

"Regulations."
The federal income tax regulations, including temporary regulations, promulgated under the Code, as such regulations may be amended from
time to time (including corresponding provisions of succeeding regulations).

 

"REIT."
As defined in Section 5.15.

 

"Reserves."
Funds set aside and amounts allocated by the Administrative Member to reserves for working capital and the payment of taxes, insurance,
debt service, or other costs or expenses incident to the ownership or operation of the Properties, or otherwise deemed necessary to meet
the current or anticipated future needs of the Company or the Subsidiaries.

 

"Review
Year." As defined in Section 16.12(e).

 

"Revised
Partnership Audit Procedures." The revised rules for auditing partnerships contained in the Bipartisan Budget Act of 2015, signed
into law on November 2, 2015, and the Regulations thereunder.

 

"Special
VEREIT Member Distribution." As defined in Section 9.3.

 

"Standard
of Care." The usual and customary standard of care and skill employed by sponsors serving as a general partner or as a limited
liability company manager of joint ventures owning, directly or indirectly, office projects comparable to the Properties in accordance
with the exercise of good faith, fair dealing and sound and prudent business and industry practices for properties such as the Properties
in connection with the administration and management of the Company and the assets and property of the Company, including without limitation
diligent attention to the obligations of the Company under the Leases and taking into account special considerations required by the
geographic location of any applicable Property.

 

"Subsidiary."
Any Master Lessee or Mezz Subsidiary. Collectively, the "Subsidiaries."

 

"Subsidiaries'
Business." The business of the Subsidiaries, which is to own, operate, construct, renovate, improve, lease, sublease, finance,
refinance, sell, transfer, exchange, or otherwise dispose of (however designated), and otherwise deal with, the Properties, directly
or, in the case of the Mezz Subsidiaries, indirectly through ownership of the membership interests in the Master Lessees.

 

    -15-

     

    

 

"Supplemental
Agreement." In relation to a Property, the supplemental agreement entered into by the Master Lessee and the Title Holder in
connection with the Master Lease for such Property.

 

"Target Amount."
As defined in Section 10.2(d).

 

"Target
Property." Any property presented by a Member for potential acquisition by the Company in accordance with the terms of Article
7 hereof.

 

"Tax
Matters Agreement." In relation to a Property, the tax matters agreement entered into by the Master Lessee and the Title Holder
in connection with the Master Lease for such Property.

 

"Title
Holder." In relation to a Property, the limited liability company or limited partnership that holds legal title to such Property
and has entered into Master Lease Documents with a Master Lessee for such Property.

 

"Transaction Costs."
As defined in the Formation Agreement.

 

"Transfer."
As defined in Section 12.1. The terms Transferred or Transferring shall have meanings correlative to the foregoing.

 

"USA Patriot Act."
As defined in Section 4.2(d).

 

"VEREIT Member."
As defined in the Introduction.

 

"VEREIT
Member Key Persons." Glenn Rufrano, Thomas W. Roberts, Charles Vogel, and Paul McDowell.

 

"VEREIT OP."
VEREIT Operating Partnership, L.P., a Delaware limited partnership.

 

"VEREIT
Permitted Transferee." Any Entity Controlling, Controlled by, or under common Control with (a) the VEREIT REIT, (b) any Affiliate
of the VEREIT REIT, or (c) any Entity resulting from a merger by or consolidation with the VEREIT REIT.

 

"VEREIT
REIT." VEREIT, Inc., a Maryland corporation.

 

"Withdrawing
Member." As defined in Section 13.1(e).

 

ARTICLE
2

FORMATION
OF COMPANY

 

2.1       Formation.
The Company was formed as a Delaware limited liability company upon the filing of its Certificate of Formation by an "authorized
person" in the office of the Secretary of State of Delaware in accordance with the provisions of the Delaware Act on December 2,
2019.

 

2.2        Name.
The name of the Company is "OAP/VER VENTURE, LLC."

 

    -16-

     

    

 

2.3        Principal
Place of Business. The principal place of business of the Company is 2325 East Camelback Road, 9th Floor, Phoenix, Arizona
85016. The Company may locate its place of business and registered office at any other place or places as the Administrative Member may
from time to time deem advisable. The Administrative Member shall provide prompt notice to each of the Members of any changes in the
principal place of business or registered office of the Company.

 

2.4        Registered
Office and Registered Agent. The Company's initial registered office in the State of Delaware is Corporation Trust Center, 1209 Orange
Street, Wilmington, New Castle County, Delaware 19801. The Company's registered agent is The Corporation Trust Company. The registered
office and registered agent may be changed from time to time pursuant to the Delaware Act and the applicable rules promulgated thereunder.
The Administrative Member shall cause the Company to qualify to do business and appoint registered agents in other states as required.

 

2.5        Term.
The term of the Company commenced on the date the Certificate of Formation was filed with the Secretary of State of Delaware and shall
continue until the Company is dissolved and its affairs wound up in accordance with the provisions of this Agreement and until the cancellation
of the Certificate of Formation in the manner required by Section 18-203 of the Delaware Act.

 

ARTICLE
3

BUSINESS
OF COMPANY

 

The
business of the Company (the "Business") shall be to acquire, own, operate, lease, master lease, sublease, construct,
renovate, improve, finance, refinance, sell, transfer, exchange, or otherwise deal with commercial real estate, including the Initial
Properties and Additional Properties acquired pursuant to Article 7 hereof, directly or indirectly through ownership of the Subsidiaries.
In furtherance thereof, the Company may exercise all powers necessary to or reasonably connected with the Business which may be legally
exercised by limited liability companies under the Delaware Act, and may engage in all activities necessary, customary, convenient, or
incident to any of the foregoing. Notwithstanding the foregoing, the Business shall be limited to and conducted in a manner so as to
permit the VEREIT REIT at all time to be qualified as a REIT under the Code.

 

ARTICLE
4

NAMES
AND ADDRESSES OF MEMBERS; REPRESENTATIONS, WARRANTIES,

AND
COVENANTS OF THE MEMBERS 

 

4.1        Names
and Addresses. The names and addresses of the initial Members are set out on Exhibit A attached hereto.

 

4.2        Representations,
Warranties and Covenants of VEREIT Member. The VEREIT Member hereby represents, warrants and covenants to the Company and the Investor
Member that:

 

(a)       The
VEREIT Member is a limited partnership duly formed and validly existing in good standing under the laws of the State of Delaware.

 

    -17-

     

    

 

(b)              
 The VEREIT Member has all requisite legal right, power, and authority to execute and deliver this Agreement, to perform its obligations
hereunder (in its individual capacity and as the Administrative Member of the Company), and to act as the Administrative Member of the
Company.

(c)              
The execution, delivery, and performance by the VEREIT Member of this Agreement have been duly authorized by all necessary partnership
action. This Agreement has been duly executed and delivered by the VEREIT Member and constitutes the legal, valid, and binding obligation
of the VEREIT Member enforceable against the VEREIT Member in accordance with its terms.

 

(d)              
Neither the VEREIT Member nor any of its respective direct or indirect constituent owners (excluding shareholders and direct and
indirect constituent owners of the VEREIT REIT) currently are, or shall be at any time during the term hereof, in violation of any laws
relating to terrorism or money laundering (collectively, the "Anti-Terrorism Laws"), including without limitation Executive
Order No. 13224 on Terrorist Financing, effective September 24, 2001 and relating to Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism (the "Executive Order"), and/or the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56) (the "USA
Patriot Act").

 

(e)              
Neither the VEREIT Member nor any of its respective direct or indirect constituent owners (excluding shareholders and constituent
owners of the VEREIT REIT) is or shall be during the term hereof a Prohibited Person.

 

4.3       Representations,
Warranties and Covenants of Investor Member. The Investor Member hereby represents, warrants and covenants to the Company and the
VEREIT Member that:

 

(a)              
The Investor Member is a limited liability company duly formed and validly existing in good standing under the laws of Delaware.

 

(b)              
The Investor Member has all requisite legal right, power, and authority to execute and deliver this Agreement and to perform its
obligations hereunder.

 

(c)              
The execution, delivery, and performance by the Investor Member of this Agreement have been duly authorized by all necessary limited
liability company action. This Agreement has been duly executed and delivered by the Investor Member and constitutes the legal, valid,
and binding obligation of the Investor Member enforceable against the Investor Member in accordance with its terms.

 

(d)              
Neither the Investor Member nor any of its respective direct or indirect constituent owners or Affiliates currently are, or shall
be at any time during the term hereof, in violation of any Anti-Terrorism Laws, including without limitation the Executive Order, and/or
the USA Patriot Act.

 

(e)              
Neither the Investor Member nor any of its respective direct or indirect constituent owners or Affiliates is or shall be during
the term hereof a Prohibited Person.

 

    -18-

     

    

 

ARTICLE
5

MANAGEMENT

 

5.1       Management.
The business and affairs of the Company shall be managed by the Administrative Member in accordance with this Agreement and the Operating
Guidelines. Subject only to the requirement that Major Decisions must be approved as provided in Section 5.2 or expressly elsewhere in
this Agreement, and subject to the Operating Guidelines, the Administrative Member shall have full, exclusive, and complete authority,
power, and discretion to manage and control the business and affairs of the Company and the Subsidiaries, to make all decisions regarding
those matters, and to perform any and all other acts or activities customary or incident to the management of the Business, the Subsidiaries'
Business, and the Properties.

 

5.2       Major
Decisions and Operating Guidelines.

 

(a)              
Major Decision Approval. Notwithstanding Section 5.1, all Major Decisions proposed to be taken by the Administrative
Member shall require the approval of both the VEREIT Member and the Investor Member. Except as otherwise expressly provided in Section
11.3 with respect to certain tax matters, in the event that any action which would constitute a Major Decision is proposed by the
Administrative Member, the Administrative Member shall give the VEREIT Member and the Investor Member reasonable prior written notice
of such proposed Major Decision (a "Major Decision Notice") specifying the particulars thereof in reasonable detail.
Each Member shall, within ten (10) Business Days following the date such Major Decision Notice is delivered to such Member, give a written
notice to the Administrative Member stating either that (i) it approves of the proposed Major Decision described in the Major Decision
Notice, (ii) it disapproves of the proposed Major Decision, and setting forth the reasons for such disapproval with reasonable specificity,
or (iii) it requires more information in order to approve or disapprove of such proposed Major Decision, and setting forth a specific
list of requested additional information, following the receipt of which such Member shall promptly advise the Administrative Member
of such Member's approval or disapproval as described above. If a Member shall fail to give such a written notice to the Administrative
Member within said ten (10) Business Days, then the Administrative Member may submit a second Major Decision Notice to such Member which
shall state in bold, capital letters on the top of the first page (and on the outside of any envelope, if applicable) "MAJOR DECISION
NOTICE - PROMPT RESPONSE REQUESTED." If a Member shall fail to respond to any such a second Major Decision Notice within five (5)
Business Days following the date such second Major Decision Notice is delivered to such Member, such Member shall be deemed to have approved
the proposed Major Decision described in the Major Decision Notice, except in the case of the Major Decisions described in Sections 5.2(b)(i)
 — (iii), (vi) — (xx), (xxii) — (xxv), (xxvii) and (xxviii) below (the "Fundamental Major Decisions"),
which shall require the affirmative written approval of both the VEREIT Member and the Investor Member, failing which any such Fundamental
Major Decision shall be deemed disapproved by a non-responding Member. Notwithstanding the foregoing, the Members may approve and/or
adopt any proposed Major Decision, and may waive the necessity of any Major Decision Notice in connection therewith, by unanimous written
consent of the Members.

 

(b)              
Major Decisions. Each of the following actions or decisions is a "Major Decision" for purposes of this
Agreement:

 

(i)             
 Acquisitions. The acquisition by the Company or any Subsidiary of (A) fee simple title to, or any leasehold interest in,
any real property (including a leasehold interest pursuant to a Master Lease), or (B) an interest in any Entity that is the owner of
fee simple title to, or any leasehold interest in, any real property.

 

    -19-

     

    

 

(ii)            
Borrowings. Borrowing money by the Company (other than a Member Loan) or permitting any Subsidiary to borrow money, whether
on a secured or unsecured basis, prepaying in whole or in part, refinancing, recasting, modifying, amending, terminating, extending,
or compromising any indebtedness or other financing of the Company or any Subsidiary, or securing the same by mortgages, deeds of trust,
security agreements or other similar agreements, instruments or other documents, or modifying the terms of any Loan or Loan Documents
to which the Company and/or a Subsidiary is from time to time bound; provided, that (A) trade financing or accounts payable incurred
in the ordinary course of the business of the Company and any Subsidiaries, (B) capital leases, and (C) any financing of furniture, fixtures
or equipment may be obtained by Administrative Member on behalf of the Company provided that such financing is in compliance with the
Operating Guidelines and is provided for in a current Approved Budget or is otherwise approved by the Investor Member.

 

(iii)           
Sales. The sale, assignment (except for a collateral assignment in connection with a permitted Loan), or other disposition
of any Property or a membership interest in any Subsidiary, but excluding (A) sales of obsolete personal property disposed of in the
ordinary course of business, (B) granting of any routine utility easements and similar easements and licenses that do not adversely affect
the operation or maintenance of any Property in any material respect, and (C) the sale of the Properties pursuant to the terms of Article
14.

 

(iv)            
Leases. Any material modification of the terms of any Lease, including the economic terms of any Lease (but not to include
non-discretionary administrative modifications for the purpose of effecting elections made by the tenant under a Lease or as otherwise
contemplated by a Lease), the termination of any Lease (unless in connection with the exercise of the landlord's rights following a tenant
default), the waiver of any rights under a Lease, or the execution of any new Lease of any Property or any portion thereof.

 

(v)            
Material Contracts. Except to the extent provided for in an approved Business Plan, making or assuming or materially modifying
any contract or agreement (excluding Leases, which are governed by item (iv)) binding upon the Company or a Subsidiary which (A) is for
a term of more than one year, and is not cancellable on thirty days' notice without cause and without payment of a termination fee or
penalty, or (B) provides for fees exceeding $50,000 annually (any such contract or agreement being a "Material Contract"
for purposes hereof).

 

(vi)          
Budget Variations. Amending, modifying, altering or varying from any Approved Budget, except in the case of (A) Emergency
Expenses, (B) amounts required to be expended to pay for any alteration, repair, or replacement respecting any Property required by any
present or future law, ordinance, order, rules, regulation, or requirement of any federal, state, or municipal government, department,
commission, board, or office, (C) taxes imposed by any federal, state or municipal government, (D) utility costs, (E) snow removal costs,
(F) insurance premiums for insurance policies maintained in accordance with the terms of this Agreement, (G) required debt service on
any Loans, (H) required payments under any Master Lease, and (I) variations of more than five percent (5%) in the aggregate with respect
to any Approved Budget.

 

(vii)         
Capital Improvements. Making any capital improvements to a Property or permitting capital improvements to be made to a
Property, or approving plans, schedules, and all other material matters relating to the capital repair, renovation or refurbishment of
a Property, including any construction contract to which the Company or a Subsidiary is a party, and selection of contractors, architects
and engineers, in connection therewith, except in the case of capital improvements, repairs, renovations, or refurbishments which (A)
are permitted pursuant to a currently effective Approved Budget, or (B) are Emergency Expenses.

 

    -20-

     

    

 

(viii)          
Lending. Lending funds, extending credit, or guaranteeing any obligations of any other Person, including any Member or
Subsidiary, except that the accrual of receivables in the ordinary course of business shall not be deemed lending funds as long as the
Administrative Member is making reasonable efforts to collect same.

 

(ix)            
Engagement of Affiliates. Except as otherwise expressly provided in this Agreement, engaging or approving the engagement
of or entering into any contract or agreement with a Member or any Affiliate of a Member to perform any service for or on behalf of the
Company or any Subsidiary, or entering into any Affiliated Contract.

 

(x)              
Accounting and Income Tax Matters. The adoption or modification of any material accounting or tax policy, principle, practice,
or election (except as otherwise expressly provided in Article 10) (with special attention given to preservation of REIT status of the
VEREIT Member as provided in Section 5.15), the selection of any outside accountant for the Company or any Subsidiary other than Deloitte,
the termination of Deloitte as the outside accountant for the Company and the Subsidiaries, or entering into any settlement agreement
regarding income taxes with the Internal Revenue Service or any state, local, or non-U.S. taxing authority that would bind, directly
or indirectly, any other Member.

 

(xi)            
Admissions. The admission of any additional or replacement Member to the Company (other than a Permitted Transferee) or
to any Subsidiary.

 

(xii)           
Merger or Consolidation. The merger or consolidation of the Company or any Subsidiary with or into any other Entity.

 

(xiii)          
Amendments. Any amendment to this Agreement or to the limited liability company agreement of any Subsidiary, except in
connection with Section 10.10.

 

(xiv)          
Other Activities. The undertaking of or any commitment by the Company or any Subsidiary to any activities or business unrelated
to the Business or the Subsidiaries' Business.

 

(xv)          
Employees. Hiring or otherwise engaging or allowing to be hired or engaged any Person who would be deemed an employee of
the Company or any Subsidiary for any purpose under any federal, state, or other governmental law, rule, or regulation.

 

(xvi)      
 Litigation. Commencing, making a counterclaim (other than mandatory counterclaims), compromising, agreeing or consenting
to, settling, discontinuing, releasing, or taking, or determining not to take, any other material action in any Legal Proceeding in which
the amount involved exceeds $1,000,000, exclusive of actions to seek a reduction in real estate taxes, and exclusive of the settlement
of any third party claim covered by the Company's or applicable Subsidiary's insurance.

 

    -21-

     

    

 

(xvii)        
Debt Relief Filing a voluntary petition or otherwise initiating Legal Proceedings to have the Company or any Subsidiary
adjudicated insolvent, or seeking an order for relief of the Company as a debtor under the United States Bankruptcy Code (11 U.S.C. §§
101 et seq.); filing any petition seeking any composition, reorganization, readjustment, liquidation, dissolution, or similar
relief under the present or any future federal bankruptcy laws or any other present or future applicable federal, state, or other statute
or law relative to bankruptcy, insolvency, or other relief for debtors with respect to the Company or any Subsidiary; seeking the appointment
of any trustee, receiver, conservator, assignee, sequestrator, custodian, liquidator (or other similar official) of the Company or any
Subsidiary or of all or any substantial part of the assets of the Company or any Subsidiary; making any general assignment for the benefit
of creditors of the Company or any Subsidiary; admitting in writing the inability of the Company or any Subsidiary to pay its debts generally
as they become due; or declaring or effecting a moratorium on the Company's or any Subsidiary's debt or taking any action in furtherance
of any of the above proscribed actions.

 

(xviii)       
Dissolution. Any decision to dissolve or liquidate the Company or any Subsidiary, other than the dissolution of a Master
Lessee and related Mezz Subsidiary following the approved sale of the Property of such Master Lessee.

 

(xix)         
Subsidiary Actions. Causing or permitting the Company to cause or permit any Subsidiary to take any action that, if taken
directly by the Company, would be a Major Decision.

 

(xx)          
Additional Capital Contributions. Any decision to require the Members to make additional Capital Contributions, other than
for Necessary Funds.

 

(xxi)         
Property Management, Asset Management. Leasing, and Construction Management Agreements. Selecting any property manager,
asset manager, leasing agent, or construction manager for any Property, or entering into, modifying, or terminating a property management
agreement, asset management agreement, leasing agreement, or construction management agreement for any Property, other than as described
in Section 5.13 with respect to the Portfolio Management Agreement.

 

(xxii)        Casualty Repair. Any decision not to rebuild or repair following material damage to the improvements located on any Property.

 

(xxiii)       Zoning. Seeking or consenting to any change in zoning, subdivision or other land use regulations applicable to any Property.

 

(xxiv)       Confessing Judgment. Confessing a judgment against the Company or any Subsidiary.

 

    -22-

     

    

 

(xxv)         Change in Use. Subject to the rights of the tenant under any applicable Lease, changing the use of any Property, or changing
the purpose of the Company or any Subsidiary, from their respective current uses and purposes to any other use or purpose.

 

(xxvi)       insurance. Make and implement any decision or determination concerning the type or amount of insurance coverage to be maintained
with respect to the Properties or any changes thereto (but in no event shall the Company or any Subsidiary carry less insurance coverage
for a Property than required by any Lease or any Master Lease Documents).

 

(xxvii)      Master Lease Documents. Modifying or amending the Master Lease Documents, exercising any call option or put option under
the Master Lease Documents, or entering into any other lease document that provides for the financing of all or part of the Properties.

 

(xxviii)     Encumbrances. Voluntarily subject all or any portion of the Properties to any encumbrance, except (i) for liens arising
by operation of law and securing obligations of the Company or any Subsidiary that are not then currently due or payable (i.e., real
estate taxes), (ii) for liens securing the obligations of the Master Lessees under the Master Lease Documents, (iii) for materialmen
or construction liens in connection with work performed at the Properties in accordance with a current Approved Budget or pursuant to
approved Leases, (iv) for liens in the nature of capital leases, (v) for liens on furniture, fixtures or equipment if in a current Approved
Budget, and (vi) any encumbrance, except an encumbrance created by the borrowing of money, that does not have a material adverse effect
on a Property.

 

(xxix)        Miscellaneous. Any other decision that, pursuant to the express terms of this Agreement, requires the approval of all Members.

 

(c)       Operating
Guidelines. The Administrative Member shall operate the Company and the Properties in accordance with the Operating Guidelines, based
upon its good faith interpretation thereof. The Administrative Member may at its option, from time to time submit requests for clarification
of the Operating Guidelines to the Investor Member Representative (an "Operating Guideline Request"). If the Investor
Member Representative does not respond to an Operating Guideline Request within ten (10) Business Days of the date on which it receives
such Operating Guideline Request, then the Administrative Member shall be authorized to act on the basis of its good faith interpretation
of the Operating Guidelines.

 

5.3       Authority
of the Administrative Member.

 

(a)       Master
Lease of Properties. The Administrative Member, on behalf of the Company, shall cause the Company to coordinate the conveyance of
each of the Initial Properties to a separate designated Title Holder, as described in the Formation Agreement, to form a Master Lessee
for each such Initial Property, and to cause each such Master Lessee to enter into a Master Lease and Master Lease Documents with the
Title Holder of the applicable Initial Property, all in connection with Master Lease Financing in the principal amount of up to $200,000,000
to be provided by Capital One, National Association, as Administrative Agent, Sole Lead Arranger and Sole Bookmaker, for the Initial
Properties and for the property located in Westerville, Ohio to be acquired by the Company as described in Section 7.10 hereof.

 

    -23-

     

    

 

(b)              
 Portfolio Management Agreement. The Administrative Member, on behalf of the Company, shall cause the Company to enter into
a Portfolio Management Agreement with Portfolio Manager in the form attached hereto as Exhibit C.

 

(c)              
Implement Major Decisions. The Administrative Member, on behalf of the Company and each Subsidiary, shall implement all
Major Decisions approved (or deemed approved) by the Members, and shall enforce agreements entered into by the Company and each Subsidiary.

 

(d)              
Required Insurance. The Administrative Member shall ensure that the Company and the Subsidiaries, as applicable, at all
times maintain insurance meeting the requirements agreed to by the Members prior to the execution of this Agreement. It is anticipated
that such insurance shall be arranged by the VEREIT Member or an Affiliate of the VEREIT Member pursuant to the Portfolio Management
Agreement, provided that the cost of such insurance shall be allocated between the Company and the Subsidiaries as determined by the
Members.

 

(e)              
Possession of Company Property and Assignment of Rights. In no event shall the Administrative Member be authorized or entitled
to possess, use, pledge, or assign property of the Company or of any Subsidiary for other than a Company purpose.

 

5.4       Operating
Budgets and Business Plans.

 

(a)       Company
Operating Budget.

 

(i)                
On or before November 15 of each Fiscal Year of the Company, the Administrative Member shall prepare and submit to the Members
a proposed annual operating budget for the Company (such budget being referred to as the "Company Operating Budget")
for the next Fiscal Year. The proposed Company Operating Budget shall include projections, in reasonable detail, of the Company's cash
receipts and cash expenditures for the forthcoming Fiscal Year. The Company Operating Budget for Fiscal Year 2019 has been prepared and
approved by the Members prior to the execution of this Agreement.

 

(ii)              
The Members shall promptly review and either approve or provide comments and/or proposed modifications to the Company Operating
Budget for each Fiscal Year within thirty (30) days after receipt of such proposed budget.

 

(iii)              
Until final approval of any proposed Company Operating Budget has been given, the Company shall be operated on the basis of the
previous Fiscal Year's approved Company Operating Budget, together with a 3% increase in expenditures under such budget until the end
of the Fiscal Year for such proposed operating budget, and a further 3% increase at the beginning of each successive Fiscal Year if such
final approval has not then been given.

 

(b)       Property
Business Plans.

 

(i)       On
or before November 15 of each Fiscal Year the Administrative Member shall cause to be prepared and shall propose to the Members a new
or updated, as the case may be, annual business, leasing, and marketing plan (a "Business Plan") for the next Fiscal
Year for each Subsidiary, including:

 

(A)   
a proposed operating budget and capital budget for each Property (each such budget being referred to as a "Property Operating
Budget") including projections, in reasonable detail, of the applicable Master Lessee's cash receipts and required or recommended
cash expenditures, including capital expenditures, for the next succeeding Fiscal Year, and for the addition to, or reduction in, any
Reserves;

 

    -24-

     

    

 

(B)   
a description of any proposed capital contributions or working capital financing (as permitted by the Operating Guidelines) to
the applicable Master Lessee; and

 

(C)   
if the Property of any Subsidiary is not leased to a single tenant, current leasing guidelines for such Property.

 

The initial
Business Plan for each of the Initial Properties, including the initial Property Operating Budget for each such Initial Property, has
been prepared and approved by the Members prior to the execution of this Agreement.

 

(ii)             
The Members shall promptly review and either approve or provide comments and/or proposed modifications to each proposed Business
Plan within thirty (30) days after receipt by the Members of such proposed Business Plan.

 

(iii)           
Until final approval of a proposed Business Plan has been given, the subject Master Lessee shall be operated on the basis of the
previous Fiscal Year's approved Property Operating Budget, together with a 3% increase in expenditures under such budget until the end
of the Fiscal Year for such proposed operating budget and capital expenditures budget, and a further 3% increase at the beginning of
each successive Fiscal Year if such final approval has not then been given.

 

(iv)            
Amendments to a Property's approved Business Plan (other than variations in such Property's Operating Budget set forth in clauses
(vi) and (vii) in the definition of Major Decisions) shall require the approval of both Members.

 

(c)       Approved
Operating Budgets and Business Plans. The Administrative Member is authorized to cause the Company, the Subsidiaries and the Properties
to operate on the basis of the approved Company Operating Budget and Business Plans, together with such variations as are set forth in
clauses (vi) and (vii) in the definition of Major Decisions. The Administrative Member shall promptly advise the Members of any event
relating to the management and operation of a Property that does or could significantly affect, either adversely or favorably, such Property
or cause a significant deviation from the approved annual Business Plan or Property Operating Budget for such Property.

 

5.5       Member,
Tenure, and Qualifications of Administrative Member.

 

(a)       Generally.
The Company shall have one Administrative Member. The initial Administrative Member shall be the VEREIT Member (in its capacity as the
Administrative Member of the Company, the "Initial Administrative Member"). The Initial Administrative Member shall
serve as Administrative Member of the Company until it resigns, it is removed for Cause pursuant to Section 5.5(c), or it suffers or
incurs an Event of Dissociation (upon the occurrence of which, the Administrative Member will be deemed to have resigned). Any successor
to the Initial Administrative Member shall hold office until its resignation, removal, dissolution and liquidation, or death, as applicable.

 

(b)       Resignation. The Administrative Member shall not be permitted to resign without the consent of the Investor Member.

 

(c)       Removal. The Investor Member may remove VEREIT as the Administrative Member, but only for Cause, by delivering written
notice of such removal (a "Removal Notice") specifying the basis for such removal in reasonable detail. Any subsequent
Administrative Member may be removed at any time by the prior written action of a Majority in Interest of the Members, with or without
Cause. Notwithstanding the foregoing, except as set forth in Section 5.5(c)((ix), Cause or a Cause Event shall not exist to the extent
that the subject event is the result of Applicable Employee Misconduct which has been cured in the manner required in order to meet the
definition of Excusable Employee Misconduct under this Agreement. For purposes of this Section 5.5(c), "Cause" or "Cause
Event" means:

 

    -25-

     

    

 

(i)              
A Bankruptcy with respect to the Administrative Member, unless the applicable petition is dismissed within one hundred twenty
(120) days from the date of filing or a Bankruptcy relating to a Guarantor that results in an "event of default" under any
Master Lease Documents after expiration of applicable notice and cure periods thereunder, and unless such "event of default"
is otherwise cured or waived;

 

(ii)             
The disposition (whether voluntary or by operation of law) by the Administrative Member of all or any part of the Administrative
Member's interest in the Company (or such Administrative Member's right to receive distributions of Company property or assets) in breach
of Article 12 hereof;

 

(iii)           
The commission by the Administrative Member, Guarantor or Portfolio Manager, or any Affiliate or senior or key personnel thereof,
of an act involving gross negligence, fraud, intentional misappropriation of Company assets, or willful misconduct in connection with
the business of the Company or any Subsidiary or in connection with any Affiliated Contract;

 

(iv)            
The voluntary withdrawal, retirement, or resignation of the Administrative Member from the Company in breach of Section 13.1(d)
hereof;

 

(v)              
As to any Administrative Member that is a corporation, general or limited partnership, limited liability company or trust, the
liquidation or dissolution of such Entity, except in connection with a reorganization in which there is a surviving Entity;

 

(vi)            
The engagement by the Administrative Member in any of the activities described in Section 5.2 without the approval of the Investor
Member, provided, however, that for purposes of this Section 5.5(c)(vi), clause (a) of the definition of Excusable Employee Misconduct
shall not apply to any determination of whether Excusable Employee Misconduct has occurred, and the removal of the employee(s) responsible
for the Applicable Employee Misconduct from further work with respect to the Company, any Subsidiary, and all Properties, as described
in clause (b) of the definition of Excusable Employee Misconduct, shall not be required;

 

(vii)             
An Administrative Member Financing Default;

 

(viii)            
A "Going Concern" disclosure is made by the auditors of either the Administrative Member, VEREIT REIT, or VEREIT OP;
or

(ix)              
A Breach by the Administrative Member (including, without limitation, a Breach resulting from a failure by the Administrative
Member to carry out its duties under this Agreement in substantial accordance with the Standard of Care), provided, however, a Cause
or Cause Event pursuant to this Section 5.5(c)(ix) shall not be curable by Excusable Employee Misconduct, but otherwise shall have the
benefit of the cure rights provided for in the definition of Breach.

 

(d)              
Right of Contest. Notwithstanding anything to the contrary provided in Section 5.5(c), the VEREIT Member may dispute the
Investor Member's claim of the existence of a Cause Event pursuant to Section 5.5(c)(ii), (iii), (vi), (vii) or (ix) by delivering a
notice to the Investor Member (a "Notice of Contest") within ten (10) Business Days after the VEREIT Member's receipt
of the Investor Member's Removal Notice. If the VEREIT Member fails to provide a Notice of Contest within such ten (10) Business Day
Period, then the VEREIT Member shall have no right to dispute the effectiveness of the Removal Notice, which shall be conclusive. If
a Notice of Contest is given within the period set forth above, then (i) the dispute shall be resolved by arbitration as provided in
Exhibit G to this Agreement, and (ii) if the arbitrator upholds the grounds for termination under Section 5.5(c) (i.e., determines
that a Cause Event has occurred), then the Removal Notice shall be conclusive and effective as of the date delivered, and not subject
to further challenge, and (iii) if the arbitrator determines that there are no grounds for removal under Section 5.5(c) (i.e. that no
Cause Event has occurred), then the Removal Notice shall be voided and of no further force or effect. Notwithstanding anything herein
to the contrary, even in the event VEREIT Member delivers a Notice of Contest to Investor Member, the applicable Removal Notice shall
be effective on the date delivered to VEREIT Member and Investor Member shall be permitted to exercise all remedies set forth in Section
5.6 below pending resolution of any such arbitration, other than the remedy set forth in Section 5.6(d), which shall be suspended pending
resolution of such arbitration; provided, however, the Investor Member shall indemnify the VEREIT Member and the Company for all Losses
(as defined in Section 5.9(a) below) incurred by the VEREIT Member and the Company as a result of the Investor Member's exercise of any
such remedies in the event that the arbitrator determines that there are no grounds for removal (i.e. that no Cause Event has occurred).

 

    -26-

     

    

 

(e)              
Exit Cooperation. If the Administrative Member resigns or is removed for Cause, then the exiting Administrative Member
shall cooperate in good faith, and with commercially reasonable diligence, with the Company, its Members and any replacement Administrative
Member, for the purpose of facilitating an orderly transition of the Administrative Member's duties and responsibilities, including the
transfer of books and records and control of bank accounts of the Company and the Subsidiaries, all in accordance with good property
management practices.

 

(f)                 Vacancies.
If the position of Administrative Member shall at any time be vacant, then subject to the terms of Section 5.6(a) below, a new Administrative
Member shall be appointed by a Majority in Interest of the Members. An Administrative Member need not be a resident of the State of Delaware.

 

5.6       Remedies
for Removal of VEREIT Member.

 

(a)              
Appointment of New Administrative Member. In the event the VEREIT Member is removed as the Administrative Member for Cause,
the Investor Member shall appoint a new Administrative Member (which may be the Investor Member or an Affiliate of the Investor Member)
within ninety (90) days of the date on which the Administrative Member shall have been so removed; provided, however, if the Administrative
Member contests its removal pursuant to Section 5.5(d) above, any new Administrative Member appointed by the Investor Member shall be
either the Investor Member of an Affiliate of the Investor Member pending resolution of such contest. Notwithstanding such removal, the
VEREIT Member shall remain liable for all accrued liabilities, duties and obligations incurred as Administrative Member arising prior
to its removal.

 

(b)              
Loss of Promote Distributions. If the VEREIT Member is removed as the Administrative Member for Cause, any rights that
the VEREIT Member had to the promote distributions under Sections 9.1(c), 9.2(a)(v) and 9.2( b)(iii) (the "Promote Clauses")
shall terminate effective immediately, and all distributions under such Sections shall thereafter be made in accordance with each Member's
respective Ownership Percentage. However, if a Notice of Contest is delivered by the VEREIT Member under Section 5.5(d), then all distributions
under the Promote Clauses shall be held in an escrow until resolution of the VEREIT Member's contest of the Cause Event. If the arbitrator
upholds the grounds for the Removal Notice, then such escrowed amounts shall be distributed in accordance with the provisions of the
first sentence of this subsection (b) as of the date of removal, and if the arbitrator determines that there are no grounds for removal
(i.e., that no Cause Event has occurred), then the distributions under the Promote Clauses then held in escrow shall be distributed to
VEREIT Member, together with interest thereon, payable by the Company, at the rate of 10% per annum.

 

(c)              
Termination of Portfolio Management Agreement. If the VEREIT Member is removed as the Administrative Member for Cause,
the Portfolio Management Agreement shall terminate and the Portfolio Manager shall not be entitled to any further payments of any fees
set forth in the Portfolio Management Agreement and any deferred amounts of such fees shall be forfeited. However, if a Notice of Contest
is delivered by the VEREIT Member under Section 5.5(d), then all fees due to Portfolio Manager under the Portfolio Management Agreement
shall be held in an escrow until resolution of the VEREIT Member's contest of the Cause Event. If the arbitrator upholds the grounds
for the Removal Notice, then such escrowed amounts shall be forfeited in accordance with the provisions of the first sentence of this
subsection (c) as of the date of removal, and if the arbitrator determines that there are no grounds for removal (i.e., that no Cause
Event has occurred), then the fees due to Portfolio Manager under the Portfolio Management Agreement then held in escrow shall be distributed
to VEREIT Member, together with interest thereon, payable by the Company, at the rate of 10% per annum.

 

(d)              
Remedies at Law and Equity. If the VEREIT Member is removed as the Administrative Member for Cause, the Investor Member
shall have the right, at its election, and on behalf of itself and/or the Company, to pursue any and all other rights and remedies available
at law or in equity, in addition to the remedies expressly set forth in this Agreement.

 

    -27-

     

    

 

(e)              
Bank Account Authority. Without limiting the Investor Member's rights under this Section 5.6, upon a removal of
the Administrative Member for Cause, the Investor Member shall have the option, at its sole election, to become the sole signatory on
all bank accounts, documents, and instruments of the Company and any Subsidiaries. The Members shall provide that the bank accounts of
the Company and all Subsidiaries are arranged so as to permit the Investor Member to become the sole signatory on all such bank accounts
upon the Investor Member certifying to the bank holding such accounts that the Administrative Member has been removed for Cause. However,
if a Notice of Contest is delivered by the VEREIT Member under Section 5.5(d), and if the arbitrator determines that there are no grounds
for removal (i.e. that no Cause Event has occurred), then signature authority on the bank accounts of the Company and all Subsidiaries
shall revert to the VEREIT Member upon the VEREIT Member certifying to the bank holding such accounts that the VEREIT Member has been
restored as the Administrative Member.

 

(f)               
Release of Guarantor. Notwithstanding anything in this Agreement to the contrary, in the event that the VEREIT Member is
removed as the Administrative Member for Cause, the Investor Member shall use commercially reasonable efforts to cause each Guarantor
to be released from its obligations under all Guarantees. In the event that the Investor Member fails to cause a Guarantor to be released
simultaneously with any such removal, then the Investor Member shall cause a creditworthy Affiliate or other related party acceptable
to the VEREIT Member in its reasonable discretion, to indemnify, defend and hold such Guarantor harmless from and against any and all
losses and liabilities arising under any such Guarantee from and after the date of any such removal, and the Investor Member shall not
take any action that would increase or modify the liability and obligations of such Guarantor under such Guarantee. Any and all losses
and liabilities arising under any such Guarantee of a Guarantor attributable to events or occurrences prior to such removal, shall continue
to be governed by the terms of Section 8.6 below, including any losses and liabilities of such Guarantor under its Guarantee relating
to any Administrative Member Financing Default occurring prior to such removal. The Investor Member acknowledges that Guarantor is a
third party beneficiary of the indemnification obligations of the Investor Member under this Section 5.6(f).

 

5.7       Liability
for Certain Acts. The Administrative Member shall not be liable for any of the debts or obligations of the Company or any Subsidiary,
and has not guaranteed nor shall have any obligation with respect to the return of a Member's Capital Contributions or profits from the
operation of the Company. Notwithstanding anything to the contrary contained in the Delaware Act, the Administrative Member shall not
be liable to the Company, to any Subsidiary, or to any Member for any loss or damage sustained by the Company, any Subsidiary, or any
Member except loss or damage resulting from any action constituting "Cause" under Section 5.5(c), or from a transaction for
which such Administrative Member (solely in its capacity as such, and not merely as a Member) received a personal benefit in violation
or breach of the material provisions of this Agreement. In the performance of its duties under this Agreement, the Administrative Member
shall be entitled to rely on information, opinions, reports, or statements, including but not limited to financial statements or other
financial data prepared or presented by: (a) any one or more Members, Officers, employees, and other agents of the Company whom the Administrative
Member reasonably believes to be reliable and competent in the matter presented, or (b) legal counsel, public accountants, or other Persons
as to matters the Administrative Member reasonably believes are within the Person's professional or expert competence.

 

    -28-

     

    

 

5.8      No
Exclusive Duty to Company. The respective Affiliates of the Members may have other business interests and, subject to Article 7,
may engage in other activities in addition to those relating to the Company, even if such other business interests or activities are
competitive with the Business or the Subsidiaries' Business. Subject to the terms of Article 7, neither the Company nor any Member shall
have any right, by virtue of this Agreement, to share or participate in such other investments or activities of the respective Affiliates
of a Member or to the income or proceeds derived therefrom. Subject to the terms of Article 7, no Member, Administrative Member or any
of their Affiliates shall incur any liability to the Company, any Subsidiary, or any of the Members as a result of engaging in any other
business or ventures.

 

5.9       Indemnification.

 

(a)              
Indemnification by the Company. The Company shall indemnify each Indemnitee from and against any and all losses, claims,
damages, liabilities, joint or several, expenses (including, without limitation, reasonable attorneys' fees and other legal fees and
expenses), judgments, fines, settlements approved by the Administrative Member (if Indemnitee is not the Administrative Member) and other
amounts (collectively, "Losses") arising from or in connection with any and all claims, demands, actions, suits or proceedings
(civil, criminal, administrative or investigative) incurred by the Indemnitee and relating to the Company or its operations (including
by reason of the fact that such Indemnitee is or was acting in connection with the activities of the Company in any capacity or that
is or was serving at the request of the Administrative Member as an officer, director, or employee of the Company or any Subsidiary)
in which any such Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, but only if: (1) with respect
to the Administrative Member and its related Indemnitees, the Losses in question were not the result of a Breach of this Agreement by
the Administrative Member and did not otherwise result from a Cause Event or a breach of any Affiliated Contact by an Indemnitee related
to the Administrative Member, or (2) as to each other Indemnitee, such Indemnitee (i) is not guilty of fraud, gross negligence, willful
misconduct or a knowing violation of law, or (ii) the Losses in question did not result from a Breach of this Agreement by the Member
associated with such Indemnitee; provided, that the Company's indemnification obligations in connection with any Guarantee provided
by an Affiliate of a Member are subject to the terms of Section 8.6(b). Any indemnification pursuant to this Section 5.9(a) shall be
made only out of the assets of the Company and any insurance proceeds from any liability policy covering the Company or the Administrative
Member, and without any obligation to call for Additional Capital Contributions. Notwithstanding anything to the contrary set forth herein,
(i) the Company shall not be obligated to indemnify any Indemnitee in connection with any claim, lawsuit or other proceeding that has
been brought against such Indemnitee by a Member, and (ii) the Company shall not be obligated to indemnify any Indemnitee in connection
with any claim, lawsuit or other proceeding in connection with a dispute or disputes between or among the Administrative Member and its
members and/or its Affiliates.

 

    -29-

     

    

 

(b)              
Indemnification by the Members. Each Member shall indemnify the Company, the other Members and the Affiliates of the other
Members from and against any and all Losses arising from or in connection with any and all claims, demands, actions, suits or proceedings
(civil, criminal, administrative or investigative) arising out of or relating to (i) in the case of the VEREIT Member or any of its Affiliates,
a Cause Event (including, without limitation, a Breach of this Agreement), a breach of the Formation Agreement (subject to any limitations
on liability provided for therein), a breach of any Affiliated Contract by an Affiliate of the Administrative Member (subject to any
notice and cure rights contained therein), or fraud, gross negligence, willful misconduct or a knowing violation of law by an Indemnitee
related to VEREIT Member, and (ii) in the case of Investor Member, fraud, willful misconduct, knowing violation of law, or other Breach
in the performance of this Agreement.

 

(c)              
Actual Damages. Notwithstanding anything in this Agreement to the contrary, a Member's liability hereunder shall be limited
to actual costs, liabilities and damages (including any punitive damages imposed by third party claims), and in no event shall any Member
have any liability under this Agreement (including under this Section 5.9) for, and each Member waives its rights to claim, demand, and
collect any, exemplary, special, consequential, incidental, indirect or punitive damages, lost profits or similar items (in each case,
except for any indirect or punitive damages imposed by third party claims).

 

(d)              
No Limitation of Rights; Liability of Members. The indemnifications provided by this Section 5.9 shall be in addition to
any other rights to which an Indemnitee or any other Person may be entitled under any agreement as a matter of law or otherwise, and
shall continue as to an Indemnitee who has ceased to serve in such capacity unless otherwise provided in a written agreement pursuant
to which such Indemnitee is indemnified. Notwithstanding the foregoing, unless otherwise expressly provided in this Agreement, any claim
against a Member by the Company, by another Member, or by an Affiliate of another Member under or in connection with this Agreement (including
under this Section 5.9) shall be made only against, and shall be limited to, such Member's interest in the Company, the distributions
received by such Member from the Company, the proceeds of the sale by such Member of its interest in the Company or such Member's interest
in any property of the Company distributed to the Members pursuant to Section 13.3 below, and any right of the Company or a Member to
proceed against (i) any other assets of a Member, or (ii) any direct or indirect owner or manager of such Member, or any of their respective
assets, as a result of such a claim against such Member arising under this Agreement or otherwise, is hereby waived.

 

(e)              
Insurance. To the extent contemplated in the Approved Budget, the Company may purchase and maintain insurance on behalf
of the Indemnitees and such other Persons as the Administrative Member shall determine against any liability that may be asserted against
or expenses that may be incurred by such Person in connection with the Company's activities, regardless of whether the Company would
have the power to indemnify such Person against such liability under the provisions hereof; provided, that if the Company shall
purchase and maintain insurance for acts or omissions that are not subject to indemnification pursuant to Section 5.9(a) hereof, the
Company shall be responsible for all costs of such insurance. If any Indemnitee recovers any amounts from such insurance coverage or
any third party source, then such Indemnitee shall, to the extent such recovery is duplicative, reimburse the Company for any amounts
previously paid to it by the Company in respect of such liabilities.

 

(f)               
 Benefit. The provisions of this Section 5.9 are solely for the benefit of the Indemnitees, their heirs, successors, assigns
and administrators and shall not be deemed to create any rights for the benefit of any other Persons.

 

(g)              
Contests. Notwithstanding anything to the contrary provided in this Section 5.9, any Member may claim or dispute the existence
of a Cause Event, fraud, gross negligence, willful misconduct, a knowing violation of law, or other Breach of this Agreement in connection
with any claim for indemnification under this Section 5.9, in which case such dispute shall be resolved by arbitration as provided in
Exhibit G to this Agreement. Pending resolution of any such arbitration, the indemnification provisions under this Section 5.9
shall be suspended.

 

    -30-

     

    

 

5.10       Standard of Care. The Administrative Member and each of its Affiliates performing services in connection with the business of
the Company shall carry out its duties under this Agreement with the Standard of Care. Notwithstanding anything to the contrary set forth
in this Agreement, neither the Administrative Member nor any Indemnitee associated with the Administrative Member shall be liable for
monetary damages to the Company or any Members for Losses sustained, liabilities incurred or benefits not derived as a result of errors
in judgment or mistakes of fact or law or of any act or omission (including any negligent act or omissions) except as provided in Section
5.9(b).

 

5.11       Authority of Agents. Unless authorized to do so by the Administrative Member, no attorney-in-fact, employee (if any), or other
agent of the Company shall have any power or authority to bind the Company or any Subsidiary in any way, to pledge its credit or to expose
the Company to pecuniary liability for any purpose. Except as otherwise provided in this Agreement, no Member (in its capacity as a Member)
shall have any power or authority to bind the Company or any Subsidiary.

 

5.12       Officers. The Administrative Member may, but shall not be required to, create such officers of the Company as it deems appropriate,
including, but not limited to, President, Executive Vice President, Senior Vice President(s), Vice President(s), Secretary, and Treasurer.
The Officers shall have such duties and authority as are assigned or delegated to them by the Administrative Member from time to time.
All Officers shall serve at the pleasure of the Administrative Member, and the Administrative Member may remove any Officer from office
without cause. Any Officer may resign at any time.

 

5.13       Affiliated Contracts.

 

(a)              
The Members hereby approve and authorize the Administrative Member to cause the Company to enter into a property and asset management
agreement with the Portfolio Manager in the form of the Portfolio Management Agreement attached hereto as Exhibit C. Except for
the foregoing, the Administrative Member shall not cause the Company or any Subsidiary to enter into any Affiliated Contract without
the prior written consent of the Members. The VEREIT Member will cause the Portfolio Manager and any other Affiliate under an Affiliate
Contract to provide services and carry out obligations consistent with the Standard of Care.

 

(b)              
Notwithstanding anything to the contrary in Section 5.1, if the Investor Member determines, in its sole discretion, that an Affiliated
Contract with the VEREIT Member or an Affiliate of the VEREIT Member has been breached by the VEREIT Member or such Affiliate, then the
Investor Member may, on behalf of the Company or a Subsidiary, provide written notice to the Administrative Member of such determination
and thereafter cause the Company or the Subsidiary, as applicable, to take such action as may be reasonably necessary to enforce such
Affiliated Contract in accordance with the terms of such Affiliated Contract. In addition, the Investor Member may, on behalf of the
Company or a Subsidiary, exercise any right of termination expressly set forth in an Affiliated Contract with the VEREIT Member or an
Affiliate of the VEREIT Member, subject to any grace or cure periods set forth therein. The Investor Member shall have the authority
to sign documents on behalf of the Company and/or a Subsidiary, and to issue notices on behalf of the Company and/or a Subsidiary, in
order to carry out such enforcement or termination and shall provide the Administrative Member contemporaneous notice of all such actions
by the Investor Member on behalf of the Company or a Subsidiary.

 

(c)              
If the VEREIT Member determines, in its sole discretion, that an Affiliated Contract with the Investor Member or an Affiliate
of the Investor Member has been breached by that Member or Affiliate, then the VEREIT Member may, on behalf of the Company or a Subsidiary,
provide written notice to the Investor Member of such determination and thereafter cause the Company or the Subsidiary, as applicable,
to take such action as may be reasonably necessary to enforce such Affiliated Contract in accordance with the terms of such Affiliated
Contract. In addition, the VEREIT Member may, on behalf of the Company or a Subsidiary, exercise any right of termination expressly set
forth in an Affiliated Contract with the Investor Member or an Affiliate of the Investor Member, subject to any grace or cure periods
set forth therein. The VEREIT Member shall have the authority to sign documents on behalf of the Company and/or a Subsidiary, and to
issue notices on behalf of the Company and/or a Subsidiary, in order to carry out such enforcement or termination and shall provide the
Investor Member contemporaneous notice of all such actions by the VEREIT Member on behalf of the Company or a Subsidiary.

 

(d)              
If the Administrative Member is removed for Cause as set forth in Section 5.5(c), the Company and each Subsidiary may terminate
all Affiliated Contracts with the Administrative Member or its Affiliates, which such right may be exercised by the Member not Affiliated
with the Administrative Member on behalf of the Company and each Subsidiary, as applicable.

 

(e)              
No Affiliate of the Administrative Member contracting with the Company or any Subsidiary may rely upon any action of the Administrative
Member as binding upon the Company to the extent any such action violates the terms of this Agreement.

 

(f)               Each
Affiliate Contract shall contain the provisions set forth in Exhibit F attached hereto or comparable provisions approved by each
of the Members.

 

    -31-

     

    

 

(g)       Notwithstanding
anything to the contrary in this Agreement, the Investor Member shall have the right, without the consent of the VEREIT Member, to enforce,
on behalf of the Company and its Affiliates, the terms of the Formation Agreement and any and all documents contemplated thereby which
survive the closing of the conveyance of the Initial Properties by Affiliates of the VEREIT Member to the applicable Master Lessees or
Title Holders. Any payments made by, or recoveries received from the VEREIT Member or any Affiliate thereof in respect of any obligations
of such entity under the Formation Agreement shall not be considered Capital Contributions to the Company and shall not entitle the VEREIT
Member to Capital Account credit on account of any such payments. Neither the VEREIT Member nor any Affiliate thereof shall have any
right of reimbursement, indemnification or compensation from the Company or any Subsidiary or any Member (or Affiliate thereof) in respect
of any obligations under this Section 5.12(g) or under the Formation Agreement.

 

(h)       VEREIT
Member acknowledges and agrees that the VEREIT Member Key Persons are the executives of the VEREIT Member, VEREIT OP, and/or VEREIT REIT
with primary responsibility for the business decisions of the VEREIT Member in connection with the Properties. In the event of changes
in the VEREIT Member Key Persons which result in none of such VEREIT Member Key Persons continuing to be employees of VEREIT REIT (a
 "Management Change"), and if within sixty (60) days after the occurrence of such Management Change the VEREIT Member
fails to replace such VEREIT Member Key Persons with one or more individuals reasonably acceptable to the Investor Member (such approval
not to be unreasonably withheld), then the Investor Member may at its option on behalf of the Company, terminate the Portfolio Management
Agreement and replace the Portfolio Manager with a new asset and property management company reasonably acceptable to both Members.

 

5.14       Fees to Members and Affiliates. Except as specifically provided for in this Section 5.14 or set forth in an Affiliated Contract,
no Member, nor any Affiliate of any Member, shall receive any compensation from the Company or any Subsidiary for its services to the
Company or any Subsidiary, without prior written consent of all Members. Notwithstanding the foregoing, the Members hereby consent and
agree to the payment of the following fees:

 

(a)              
Property Management Fee. Pursuant to the Portfolio Management Agreement, the Portfolio Manager shall be entitled to receive
a property management fee for each Property in an amount that is equal to the greater of (i) 1% of gross receipts from such Property,
or (ii) the amount of the property management fees that are reimbursable by tenants of such Property under their respective Leases. The
Portfolio Manager shall be solely responsible for the payment of any fees negotiated with and owed to any sub-property managers.

 

(b)              
Asset Management Fee. Pursuant to the Portfolio Management Agreement, the Portfolio Manager shall be entitled to receive
an annual asset management fee with respect to each Property equal to 0.5% of the Equity Investment Amount attributable to such Property
during the applicable calendar year, adjusted as necessary to reflect increases or decreases in such Equity Investment Amount during
the course of the applicable calendar year.

 

(c)              
Additional Property Acquisition Fee. With respect to the acquisition of each Additional Property in accordance with Article
7, an acquisition fee equal to 0.6% of the purchase price of such Additional Property shall be payable to the VEREIT Member (or its designated
Affiliate). No such acquisition fee shall be payable in connection with the acquisition of the Initial Properties.

 

5.15       REIT Status. The Members recognize that the VEREIT Member is indirectly owned by the VEREIT REIT, that the VEREIT REIT qualifies
as a real estate investment trust (a "REIT") for federal income tax purposes and that the VEREIT Member must
comply with a number of restrictions under the Code so that the VEREIT REIT may maintain its REIT status. In furtherance thereof, the
Members agree that neither the VEREIT Member nor any other Administrative Member shall cause or allow the Company or any Subsidiary to
take any action that would cause any of the income derived by the Company or such Subsidiary to fail to qualify as "Rents From Real
Property" (as defined in Section 856(d) of the Code) or to take any other action that would cause the VEREIT REIT to fail to qualify
as a REIT or to be subject to federal income tax under Sections 857 or 4981 of the Code, and that the Investor Member shall not prevent
the VEREIT Member from causing the Company and the Subsidiaries to comply with the restrictions required under the Code in order for
the VEREIT REIT to maintain its REIT status. In the event that the Investor Member removes the VEREIT Member in accordance with Section
5.5 and it or its Affiliate becomes the Administrative Member pursuant to Section 5.6, the Investor Member shall only be in violation
of this Section 5.15 if (i) it operates the Properties differently, or changes the policies related thereto, from how the Properties
were operated in the ordinary course of business prior to the removal of the VEREIT Member, and (ii) the change in operation or policy
results in VEREIT REIT failing to qualify as a REIT, but in no event shall Investor Member be responsible for the actions of the VEREIT
Member prior to removal that result in the failure of VEREIT REIT failing to qualify as a REIT. Without limiting the generality of the
foregoing, without the prior written consent of the VEREIT Member, neither the Company nor any Subsidiary shall:

 

(a)              
Perform or provide any services to tenants of the Properties that would cause the Company or any Subsidiary to derive income that
does not qualify as Rents From Real Property if the Company were taxed as a REIT. Instead, any such services must be provided by a "Taxable
REIT Subsidiary" (as defined in Section 856(1)) of the VEREIT REIT, or by an "independent contractor" (as defined in Section
856(d) of the Code) from whom neither the Company nor the VEREIT REIT derives any income, directly or indirectly.

 

(b)              
Derive any income from a Net Profit Lease or any lease that would cause the Company or any Subsidiary to receive payments that
do not qualify as Rents From Real Property if the Company were taxed as a REIT. For purposes hereof, the term "Net Profit Lease"
shall mean a lease of real property pursuant to which any amount received or accrued by the Company is determined based in whole or in
part on the income or profits derived by any Person from such property within the meaning of Section 856(d)(2)(A) of the Code.

 

(c)              
Acquire any assets that would not qualify as "real estate assets" under Section 856(c)(5)(B) of the Code or cause any
assets already acquired by the Company to not qualify as "real estate assets" under Section 856(c)(5)(B).

(d)              
Derive any income from a prohibited transaction under Section 857(b)(6) of the Code.

 

    -32-

     

    

 

ARTICLE
6

RIGHTS
AND OBLIGATIONS OF MEMBERS; MEETINGS OF MEMBERS

 

6.1       Limitation
on Liability. Each Member's liability shall be limited as set forth in Section 18-303(a) of the Delaware Act.

 

6.2       No
Liability for Company Obligations. No Member will have any personal liability for any debts or losses of the Company (other than
debts for which the Member specifically agreed to be personally liable); provided, however, the foregoing sentence does not limit the
rights and liabilities of the Members of the Company and to each other that may be specifically set forth elsewhere in this Agreement
or may be provided pursuant to the Delaware Act.

 

6.3       List
of Members. Upon written request of any Member, the Company shall provide a list showing the names, addresses, and Ownership Percentages
of all Members and, if requested, the other information required by the Delaware Act and maintained pursuant to Section 11.2.

 

6.4       Approvals
of Members. The Members shall have the right to approve actions of the Administrative Member or the Company solely as expressly provided
in this Agreement. Except as otherwise expressly provided in this Agreement, all actions on behalf of the Company may be taken by the
Administrative Member without any further consent or approval of the Members. Further, the Members shall have only such rights as are
set forth in this Agreement, and each Member hereby agrees to waive, to the fullest extent allowed by law, all rights to dissent from,
or obtain payment of the fair value of his, her or its Interest in the event of, the actions enumerated in the Delaware Act.

 

6.5       Meetings.
Meetings of the Members, for any purpose or purposes, may be called by the VEREIT Member or the Investor Member.

 

6.6       Place
of Meetings. The Persons calling any meeting may designate any place in New York, New York as the place of meeting for any meeting
of the Members. In lieu of any procedures contained in the Delaware Act, Members may also meet by conference telephone call if all Members
can hear one another on such call and the requisite notice is given or waived. If no designation is made, the place of meeting shall
be the principal executive office of the Company.

 

6.7       Notice
of Meetings. Written notice stating the place, day and hour of the meeting and the purpose or purposes for which the meeting is called
shall be delivered not less than ten (10) nor more than forty five (45) days before the date of the meeting, either personally or by
mail, by or at the direction of the Administrative Member or Person calling the meeting, to each Member. If mailed, such notice shall
be deemed to be delivered as set forth in Section 16.13. Notice provided in accordance with this Section 6.7 shall be effective notwithstanding
anything in the Delaware Act to the contrary.

 

6.8       Meeting
of all Members. If all of the Members shall meet at any time and place and consent to the holding of a meeting at such time and place,
such meeting shall be valid without call or notice, and at such meeting any lawful action may be taken.

 

6.9       Manner
of Acting. Except as otherwise expressly provided in this Agreement, the affirmative unanimous vote of the Members shall be the act
of the Members. Notwithstanding anything in the Delaware Act to the contrary, Members who have an interest (economic or otherwise) in
the outcome of any particular matter upon which the Members vote or consent may vote or consent upon any such matter and their vote or
consent, as the case may be, shall be counted in the determination of whether the matter is approved by the Members.

 

6.10       Action
by Members Without a Meeting. Actions required or permitted to be taken by the Members at a meeting may be taken at a meeting with
the approval of all of the Members and without a meeting if the action is evidenced by one or more written consents describing the action
taken, signed by the Members entitled to vote and whose vote or consent would have been required if the action had been taken at a duly
called and held meeting at which all necessary Members were present and voted. Actions taken under this Section 6.10 shall be effective
when the Members required to approve such action have signed the consent, unless the consent specifies a different effective date.

 

6.11       Waiver
of Notice. In lieu of any procedures contained in the Delaware Act, when any notice is required to be given to any Member, a waiver
thereof in writing signed by the Person entitled to such notice, whether before, at, or after the time stated therein, shall be equivalent
to the giving of such notice.

 

    -33-

     

    

 

ARTICLE
7

ACQUISITION
OF ADDITIONAL PROPERTIES

 

The
provisions of this Agreement regarding the Company's acquisition of Additional Properties are set forth in Exhibit D attached
hereto and by this reference made a part hereof

 

ARTICLE
8

CONTRIBUTIONS
TO THE COMPANY AND CAPITAL ACCOUNTS

 

8.1       VEREIT Member's Initial Capital Contributions. On the Contribution Date for each Initial Property, the VEREIT Member shall contribute
to the Company (or, in connection with any applicable Master Lease Financing, convey to the applicable Master Lessee or Title Holder),
as an Initial Capital Contribution:

 

(a)              
All of its right, title, and interest in and to the applicable Initial Property in accordance with the terms of the Formation
Agreement. In respect of such Initial Capital Contribution, the VEREIT Member shall receive a Capital Account credit with respect to
each Initial Property in an amount equal to the Agreed Value of such Initial Property as set forth on Exhibit B hereto, adjusted
to reflect the net prorations and other adjustments provided for in the Formation Agreement; plus

 

(b)              
Cash in an amount equal to twenty percent (20%) of the Transaction Costs payable by the Company in connection with the conveyance
of such Property to the applicable Master Lessee or Title Holder.

 

8.2       Investor Member's Initial Capital Contributions. On the Contribution Date for each Initial Property, the Investor Member shall
contribute to the Company, as an Initial Capital Contribution, cash in an amount equal to:

 

(a)       eighty
percent (80%) of the Agreed Value of such Initial Property, as adjusted to reflect the net prorations and other adjustments provided
for in the Formation Agreement; plus

 

(b)       eighty percent (80%) of the Transaction Costs payable by the Company in connection with the conveyance of such Property to the
applicable Master Lessee or Title Holder; less

 

(c)        eighty percent (80%) of the proceeds of any Master Lease Financing obtained in connection with the acquisition of such Property
by or for the benefit of the Company. To the extent any of the Initial Properties are conveyed to the Company (or to Master Lessees or
Title Holders) on the same date, the Initial Capital Contributions made by the Investor Member pursuant to this Section 8.2 shall be
allocated proportionately among such Properties based on the Agreed Values and Transaction Costs of each such Property.

 

8.3       Additional Property Acquisition Contributions. The VEREIT Member and the Investor Member hereby agree to make additional cash
contributions to the capital of the Company, in accordance with their respective Ownership Percentages, in connection with the acquisition
of Additional Properties at such times and in such amounts as are specified in the Final Acquisition Proposals for any such Additional
Properties (such contributions, the "Additional Property Acquisition Contributions").

 

    -34-

     

    

 

8.4       Additional Capital
Contributions.

 

(a)       If,
at any time and from time to time, (i) the Company or any Subsidiary requires Necessary Funds, or (ii) the Members jointly agree to make
additional capital contributions for any other purpose, then the Members shall make additional contributions to the capital of the Company
(herein collectively referred to as "Additional Capital Contributions") on the terms set forth in this Section 8.4.

 

(b)       If
the Administrative Member determines, in its reasonable discretion, that the Company or any Subsidiary requires Necessary Funds, or if
the Members jointly agree to make additional capital contributions for any other reason, then the Administrative Member shall give written
notice to the Members (a "Capital Contribution Notice") setting forth:

 

(i)             
the amount of additional capital required by the Company or otherwise agreed to be funded by the Members,

 

(ii)            
in the case of Necessary Funds, the specific purpose for which such additional capital is required, and

 

(iii)           
a contribution date by which the Members shall be required to make any such Additional Capital Contributions (which shall not
be less than twenty (20) days following the date of the Capital Contribution Notice).

 

(c)       Each
Member shall contribute its pro rata share of any Additional Capital Contributions based upon the Ownership Percentages of the Members;
provided, however, that if any Additional Capital Contribution is made pursuant to Section 8.4 at a time when distributions have previously
been made to VEREIT Member pursuant to Section 9.1(c), Section 9.2(a)(v), or Section 9.2(b)(iii), then, such Additional Capital Contribution
shall be made in accordance with the Members' respective proportionate shares of the distributions made under Section 9.1(c),Section
9.2(a)(v), and Section 9.2(b)(iii) in reverse order and to the extent of the distributions made, and thereafter in accordance with Ownership
Percentages. The remedies set forth in Section 8.5 constitute the sole and exclusive remedies if a Member does not timely make the full
amount of its Additional Capital Contribution following receipt of a Capital Contribution Notice.

 

8.5       Failure
to Contribute.

 

(a)              
If any Member (the "Non-Contributing Member") fails to make an Additional Property Acquisition Contribution or
an Additional Capital Contribution within the specified time as provided in a Final Acquisition Proposal or a Capital Contribution Notice
(in either case, a "Deficiency"), then the other Member (i.e., the Member other than the Non-Contributing Member) (the
 "Contributing Member") may, in its sole and absolute discretion within thirty (30) days after the date the Deficiency
was required to be contributed, elect to either (i) withdraw its share of such Additional Property Acquisition Contribution or Additional
Capital Contribution, as the case may be, in which event the applicable Final Acquisition Proposal or Capital Contribution Notice shall
be deemed cancelled and the Contributing Member's contribution shall be refunded to it, or (ii) pursuant to Section 8.5(b) below, lend
to the Company the entire amount of such Additional Property Acquisition Contribution or Additional Capital Contribution (the "Member
Loan Option"). If the Contributing Member elects to exercise the Member Loan Option, then the amount previously advanced by
the Contributing Member to the Company shall be treated as a portion of the Member Loan described in Section 8.5(b) below. If the Contributing
Member fails, within such thirty (30) day period, to withdraw its portion of the Additional Property Acquisition Contribution or Additional
Capital Contribution or fund the Deficiency to the Company in exercise of the Member Loan Option, then the Contributing Member shall
be deemed to have elected to proceed under clause (i) above and the Company shall promptly return to the Contributing Member its share
of such Additional Property Acquisition Contribution or Additional Capital Contribution, as applicable. In addition, in the event the
Contributing Member elects to withdraw its portion of an Additional Property Acquisition Contribution with the result that the proposed
acquisition of a Target Property is terminated, the Non-Contributing Member shall promptly pay or reimburse all Pursuit Costs and any
forfeited earnest money incurred by the Company or the Contributing Member in connection with the proposed acquisition and subsequent
failure to acquire such Target Property, and shall not be entitled to reimbursement from the Company for any such costs to the extent
incurred by such Non-Contributing Member. Until such time as such amounts have been paid in full by the Non-Contributing Member all distributions
pursuant to this Agreement that would otherwise be paid to the Non-Contributing Member shall instead be paid to the Company or the Contributing
Member, as applicable, in payment of such obligation on behalf of the Non-Contributing Member.

 

(b)              
Member Loan Option. If the Contributing Member elects to exercise the Member Loan Option, then the Contributing Member
shall advance to the Company the full amount of the applicable Additional Property Acquisition Contribution or Additional Capital Contribution,
which advance shall constitute the principal amount of, and shall be, a non-recourse debt (as provided below) of the Company to such
Contributing Member (a "Member Loan"). Such Member Loan shall bear interest on the unpaid principal balance thereof
from the date on which the Contributing Member makes such Member Loan until such debt and all interest accrued thereon have been paid
in full at the interest rate of 10% per annum (but not more than the maximum amount allowable under applicable law). For the sake of
clarity, the Member Loan shall constitute a non-recourse obligation of the Company and the Contributing Member shall only be entitled
to require any such debt to be paid out of distributions of Distributable Cash from Operations, Distributable Cash from Capital Transactions,
and distributions pursuant to Section 13.3(b) of this Agreement.

 

    -35-

     

    

 

8.6       Guarantee of Master
Lease Financing.

 

(a)              
The VEREIT Member shall execute and deliver, or cause one or more of its Affiliates to execute and deliver, any guarantees or
indemnities required by the terms of any Master Lease Financing obtained by the Company or any Subsidiary, provided that such Master
Lease Financing has been approved by the VEREIT Member.

 

(b)              
Notwithstanding such guarantees and indemnities provided by the VEREIT Member or its Affiliates (each such guaranteeing party
being hereinafter referred to as a "Guarantor", and each such guarantee or indemnity being hereinafter referred to as
a "Guarantee"), the Company shall be primarily obligated for all liabilities evidenced by any such Guarantee and all
of the assets of the Company shall be utilized to satisfy such obligations and liabilities before the VEREIT Member or Guarantor is required
to make any payment pursuant to any such Guarantee. The Company shall indemnify and defend each Guarantor, on demand, from and against
all claims, losses, liabilities, and expenses (including fees and disbursements of counsel) suffered or incurred by such Guarantor by
reason of, or in connection with (either directly or indirectly), any such Guarantee. In the event that the Company does not have sufficient
assets to satisfy such obligations and liabilities or to indemnify each Guarantor with respect thereto, the amount required to pay such
obligations and liabilities or to indemnify each Guarantor shall be considered Necessary Funds and the provisions of Sections 8.4 and
8.5 shall be applicable.

 

(c)              
Notwithstanding the foregoing, in no event shall the Company or any Member have any obligation to fund, defend, indemnify or hold
harmless any Guarantor on account of liability arising under any Guarantee as a result of any Cause Event by the VEREIT Member, any breach
of any Affiliated Contract with an Affiliate of the VEREIT Member by such Affiliate of the VEREIT Member, or the fraud, willful misconduct,
or negligence of such Guarantor or any of its Affiliates. Additionally, in the event the fraud, willful misconduct, or negligence of
a Member or an Affiliate of a Member causes the breach of a non-recourse carve-out contained in a Guarantee or any of the other Master
Lease Documents, resulting in the Company or any other Member incurring liability pursuant to any such Guarantee or pursuant to the Master
Lease Documents, the responsible Member shall be obligated to reimburse the Company and/or such other Member (without indemnification
by the Company or any Member) for any and all liabilities or expenses incurred by the Company or such other Member as a result of such
action by the responsible Member.

 

8.7       Limit on Contributions and Obligations of Members. Except as expressly provided in this Article 8, the Members shall have no obligation
or liability to the Subsidiaries, the Company or to the other Members (a) to make any contributions to the capital of the Company, (b)
to guarantee any loans to the Subsidiary or the Company, or (c) to make any loans to any Subsidiary or the Company.

 

8.8       Return of Capital Contributions. Except as specifically provided in this Agreement, no Member shall be entitled to demand or receive
the return of its Capital Contributions. Upon dissolution and liquidation of the Company, the Members shall look solely to the Company's
assets for the return of their Capital Contributions, and no Member shall be liable for such return, even if such Company assets are
insufficient to return the full amount of such Capital Contributions.

 

8.9       Interest on Capital. No interest shall be payable on any Capital Contribution made to the Company or on the balance in any Member's
Capital Account.

 

8.10       Third-Party Beneficiaries. Except as provided in Section 8.6(b), neither this Article 8, nor any other provision of this Agreement,
shall be construed to create any rights or benefits in any Person, other than the Members or any Officers, and, subject to the limitations
on Transfer contained herein, their respective legal representatives, transferees, successors, and assigns. Without limiting the foregoing,
the right of the Administrative Member to require any Additional Capital Contributions under the terms of this Agreement and the agreement
of the Members to make Additional Capital Contributions shall not be construed as conferring any rights or benefits to or upon any Person
not a party to this Agreement, including, but not limited to, any licensee, invitee, or tenant of any part of any Property, or the holder
of any obligations secured by a mortgage, or other lien or encumbrance upon or affecting a Subsidiary, the Company or any interest of
a Member therein or in a Property or any part thereof or any interest therein.

 

    -36-

     

    

 

ARTICLE
9

DISTRIBUTIONS
TO MEMBERS

 

9.1       Distributions of Distributable Cash from Operations. Subject to the provisions of Section 9.8 below, the Administrative Member
shall cause the Company to distribute, on at least a quarterly basis, Distributable Cash from Operations to the Members in the following
order of priority:

 

(a)              
First, to the Members to the extent of, and in proportion to, any outstanding Member Loans, with all payments first applying to
accrued and unpaid interest and then to principal, until such Member Loans have been paid in full;

 

(b)              
Thereafter to the Members in proportion to their respective Ownership Percentages until there shall have been distributed to the
Members aggregate amounts necessary to cause the Investor Member to have achieved a cumulative IRR of twelve percent (12%) on its aggregate
Capital Contributions with respect to all of the Properties, inclusive of amounts previously paid under this Section 9.1(b), Section
9.1(c), Section 9.2(a)(ii)(iv), and (v), and Section 9.2(b)(ii) and (iii);

 

(c)              
Thereafter, but subject to Section 9.4, to the Members as follows:

 

		(A)	Eighty five percent (85%) to the Members
                                            in proportion to their respective Ownership Percentages; and

 

		(B)	Fifteen percent (15%)
                                            to the VEREIT Member as promote.

 

9.2       Distribution
of Distributable Cash from Capital Transactions. Subject to the provisions of Section 9.8 below, the Administrative Member shall
cause the Company to distribute to the Members, as soon as practicable following a Capital Transaction, Distributable Cash from Capital
Transactions in the following order of priority:

 

(a)       In
the case of a Capital Transaction with respect to an Initial Property:

 

(i)                
First, to the Members to the extent of, and in proportion to, any Member Loans made with respect to such Initial Property, with
all payments first applying to accrued and unpaid interest and then to principal, until such Member Loans have been paid in full;

 

(ii)              
Second, to the Investor Member until the Investor Member's Initial Contribution Account with respect to such Property has been
reduced to zero;

 

(iii)            
Third, to the VEREIT Member, until the VEREIT Member's Initial Contribution Account with respect to such Property has been reduced
to zero;

 

(iv)            
Fourth, to the Members in proportion to their respective Ownership Percentages until there shall have been distributed to the
Members aggregate amounts necessary to cause the Investor Member to have achieved a cumulative IRR of twelve percent (12%) on its aggregate
Capital Contributions with respect to all of the Properties, inclusive of any amounts previously paid under Sections 9.1(b) and 9.1(c)
above, under subsections (ii), (iv), and (v) of this Section 9.2(a), and under Section 9.2(b)(ii) and (iii) below; and then

 

(v)              
Thereafter, but subject to Section 9.4, to the Members as follows:

 

		(A)	eighty five percent (85%) to the Members
                                            in proportion to their respective Ownership Percentages; and

 

		(B)	fifteen percent (15%) to the VEREIT Member as promote.

 

(b)       In
the case of a Capital Transaction with respect to any Additional Property:

 

(i)                
First, to the Members to the extent of, and in proportion to, any Member Loans made with respect to any Property, with all payments
first applying to accrued and unpaid interest and then to principal, until such Member Loans have been paid in full;

 

(ii)             
Second, to the Members in proportion to their respective Ownership Percentages until there shall have been distributed to the
Members aggregate amounts necessary to cause the Investor Member to have achieved a cumulative IRR of twelve percent (12%) on its aggregate
Capital Contributions with respect to all of the Properties, inclusive of any amounts previously paid under Section 9.1(b) and 9.1(c),
under Section 9.2(a)(ii), (iv), and (v), and under subsections (ii) and (iii) of this Section 9.2(b); and then

 

(iii)           
Thereafter, but subject to Section 9.4, to the Members as follows:

 

		(A)	eighty five percent
                                            (85%) to the Members in proportion to their respective Ownership Percentages; and

 

		(B)	fifteen percent (15%)
                                            to the VEREIT Member as promote.

 

    -37-

     

    

 

9.3       Special
VEREIT Member Distribution. Promptly following the Contribution Date for each of the Initial Properties, the Company shall make a
distribution to the VEREIT Member (the "Special VEREIT Member Distribution") equal to the sum of (i) eighty percent
(80%) of the Agreed Value of such Property, as adjusted to reflect the net prorations and other adjustments provided for in the Formation
Agreement, plus (iv) twenty percent (20%) of the proceeds of any Master Lease Financing obtained in connection with the Company's acquisition
of such Property. The Members agree that the contribution of the Initial Properties by the VEREIT Member pursuant to Section 8.1 and
the Special VEREIT Member Distribution, together, shall be treated as a part sale, part contribution of such Initial Properties to the
Company by the VEREIT Member as described in Sections 721 and 707(a)(2)(B) of the Code.

 

9.4       True-Up.
Notwithstanding the other provisions of this Article 9, which are intended to permit distributions of the VEREIT Member's promote on
an interim basis, distributions on account of Distributable Cash from Capital Transactions shall ultimately be determined in the aggregate
for all Properties and over the entire term of the Company as a whole. If, upon the final dissolution and liquidation of the Company,
the financial statements for the Company shall show, or it is otherwise determined by the Company's accountants, that the aggregate distributions
made to the VEREIT Member pursuant to Section 9.2(a)(iii) and 9.2(b)(iii) exceed the amount of the aggregate distributions that should
have been made to the VEREIT Member when calculating the aggregate Distributable Cash from Capital Transactions with respect to all Capital
Transactions consummated from the commencement of the term of the Company to the date of such calculation (any such over-distribution,
an "Excess"), then the proceeds available in connection with the final dissolution and liquidation of the Company shall
be distributed to the Investor Member until the Excess, if any, on the date of such distribution has been reduced to $0.00, and if such
proceeds are insufficient to reduce the Excess to $0.00, then the VEREIT Member shall promptly pay to the Investor Member the amount
necessary to reduce such Excess to $0.00.

 

9.5       Limitation
Upon Distributions. No distribution shall be made to the Members if prohibited by the Delaware Act.

 

9.6       Priority
and Return of Capital. No Member shall have priority over any other Member, either as to the return of Capital Contributions or as
to Net Profits, Net Losses or distributions, except as otherwise specifically provided for herein. This Section shall not apply to loans
(as distinguished from Capital Contributions) a Member has made to the Company.

 

9.7       Amounts
Withheld. All amounts withheld pursuant to the Code or any provision of any state, local or foreign tax law with respect to any payment,
distribution or allocation to the Members shall be treated as amounts paid or distributed, as the case may be, to the Members with respect
to which such amount was withheld pursuant to this Section 9.7. The Company is authorized to withhold from payments, distributions or
allocations to the Members, and to pay over to any federal, state and local government or any foreign government, any amounts required
to be so withheld pursuant to the Code or any provisions of any other federal, state or local law or any foreign law, and shall allocate
any such amounts to the Members with respect to which such amounts were withheld. To the extent the Company is required to pay any such
amount to any taxing authority prior to a Member's receipt of a related distribution, such Member shall reimburse the Company for such
amount to the extent such tax payment does not reduce a distribution to the Member within thirty (30) days of the payment to the taxing
authority.

 

9.8       Tax
Distribution. Notwithstanding anything in this Agreement to the contrary, if, for any Fiscal Year other than the year in which the
Company distributes the proceeds of liquidation to the Members pursuant to Section 13.3(b), the distributions actually distributable
to any Member pursuant to Section 9.1 and Section 9.2, in each case taking into account Section 9.4, would be insufficient to pay the
Assumed Tax Liability, then, to the extent the Company has sufficient cash on hand to do so, the Company shall distribute to such Member,
on or about April 1 of the following year, the amount of cash needed to pay the Assumed Tax Liability (a "Tax Distribution").
Any Tax Distribution pursuant to this Section 9.8 shall be treated as an advance against and shall reduce future distributions under
Sections 9.1 and 9.2.

 

    -38-

     

    

 

ARTICLE
10

ALLOCATIONS
OF NET PROFITS AND NET LOSSES

 

10.1       Separate
Allocations Among Properties. The Company's Net Profit and Net Loss shall be allocated between the Members on a Property-by-Property
basis. To the extent necessary (as determined by the Administrative Member in good faith based on the advice of counsel or the Company's
tax accountants) to properly account for and allocate the Company Net Profit and Net Loss, the Administrative Member is hereby authorized
to modify the provisions of this Article 10 to incorporate concepts of separate accounting or to otherwise achieve the legally correct
result, but in all events taking into account the intentions of the Members to account for all Net Profit and Net Loss in a manner that
effectively treats each Property as being held by a separate Entity.

 

10.2       Allocation
of Net Profits and Net Losses. The Company's Net Profit and Net Loss derived from each Property attributable to each Fiscal Year
shall be determined as though the books of the Company were closed as of the end of such Fiscal Year. The rules of this Section 10.2
shall apply except as provided in Section 10.5.

 

(a)              
For each Fiscal Year, Net Profit or Net Loss (other than items allocated pursuant to Section 10.5) derived from each Property
shall be allocated, insofar as possible, so that, following all allocations pursuant to Section 10.5 for such Fiscal Year and the allocation
pursuant to this Section 10.2 which is here being described, each Member's Capital Account balance shall be equal to the result (be it
positive, negative or zero) of subtracting (i) the sum of (x) such Member's share of Company Minimum Gain and (y) such Member's share
of Member Minimum Gain, from (ii) such Member's Target Amount applicable to each Property at the end of such Fiscal Year.

 

(b)              
Except to the extent otherwise required by applicable law: (i) in applying subsection (a), to the extent possible each item of
income, gain, loss, and deduction shall be allocated among the Members in the same proportions as each other such item, and, to the extent
permitted by law, each item of credit shall be allocated in such proportions; and (ii) to the extent necessary to produce the result
prescribed by subsection (a), items of income and gain shall be allocated separately from items of loss and deduction, in which event
the proportions applicable to items of income and gain shall (to the extent permitted by law) be applicable to items of credit.

 

(c)              
 If, for any Fiscal Year, (i) the aggregate of all items of income, gain, loss, and deduction (other than those to be allocated
pursuant to Section 10.5) derived from a Property is zero and (ii) each Member's Capital Account balance with respect to such Property
equals, prior to allocations pursuant to this Section 10.2 for such Fiscal Year, the result (be it positive, negative or zero) of subtracting
(A) the sum of (1) such Member's share of Company Minimum Gain and (2) such Member's share of Member Minimum Gain, from (B) such Member's
Target Amount at the end of such Fiscal Year with respect to the applicable Property then, except to the extent otherwise required by
applicable law, all such items, and (to the extent permitted by law) all items of credit, shall be allocated among all Members in proportion
to their respective Ownership Percentages with respect to the applicable Property as in effect throughout such Fiscal Year.

 

(d)              
For these purposes, the "Target Amount" of a Member at the end of any Fiscal Year means the amount which such
Member would then be entitled to receive in respect of a Property if, immediately following such Fiscal Year: (i) all of the assets of
the Company related to the applicable Property were sold for cash equal to their respective book values (as determined for Capital Account
maintenance purposes under Section 704 of the Code and the Regulations thereunder) (or, in the case of assets subject to liabilities
for which the creditor's right is limited to assets of the Company, the amounts of such liabilities, if greater than the aggregate book
values of such assets); and (ii) the proceeds of such sale were applied to pay all debts of the Company related to the applicable Property
with the balance distributed as provided in Section 9.2, provided, however, that if the sale described in clause (i) would not generate
proceeds sufficient to pay all debts of the Company related to the applicable Property, the Members shall be considered entitled in the
aggregate (and as among them in proportion to their respective Ownership Percentages) to receive, pursuant to Section 9.2, a negative
amount equal to the excess of such debts over such proceeds.

 

10.3       Limitation
on Loss Allocations. Notwithstanding anything in this Agreement to the contrary, no loss or item of deduction shall be allocated
to a Member if such allocation would cause such Member to have an Adjusted Capital Account Deficit as of the last day of the Fiscal Year
or other period to which such allocation relates. Any amounts not allocated to a Member pursuant to the limitations set forth in this
Section 10.3 shall be allocated to the other Members to the extent possible without violating the limitations set forth in this Section
10.3, and any amounts remaining to be allocated shall be allocated among the Members in accordance with the provisions of Section 10.2.

 

10.4       Intention
and Construction of Allocations. It is the intention of the Members to allocate Net Profits and Net Losses with respect to a particular
Property in such a manner as to cause each Member's Capital Account related to such Property to always equal the amount of cash such
Member would be entitled to receive if the Company sold its assets related to the applicable Property for their book values and, after
satisfying all Company liabilities related to the applicable Property, the proceeds from such sale, as well as all other funds of the
Company related to the applicable Property, were then distributed to the Members pursuant to Section 9.2. These provisions shall be so
interpreted as necessary to accomplish such result.

 

10.5       Special
Allocations. The following special allocations shall be made in the following order:

 

    -39-

     

    

 

(a)            Minimum
Gain Chargeback. Except as otherwise provided in Section 1.704-2(f) of the Regulations, in the event there is a net decrease in Company
Minimum Gain during a Company Fiscal Year with respect to a particular Property, each Member shall be allocated (before any other allocation
is made pursuant to this Article 10) items of income and gain for such Fiscal Year (and, if necessary, for subsequent Fiscal Years) in
an amount equal to that Member's share of the net decrease in Company Minimum Gain with respect to such Property.

 

(i)            The
determination of a Member's share of the net decrease in Company Minimum Gain shall be determined in accordance with Section 1.704-2(g)
of the Regulations.

 

(ii)            The
items to be specially allocated to the Members in accordance with this Section 10.5(a) shall be determined in accordance with Section
1.704-2(f)(6) of the Regulations.

 

(iii)           This
Section 10.5(a) is intended to comply with the Minimum Gain chargeback requirement set forth in Section 1.704-2(f) of the Regulations
and shall be interpreted consistently therewith.

 

(b)            Member
Minimum Gain Chargeback.

 

(i)            
Except as otherwise provided in Section 1.704-2(i)(4), in the event there is a net decrease in Member Minimum Gain during a Company
Fiscal Year with respect to a particular Property, each Member who has a share of that Member Minimum Gain as of the beginning of the
year, to the extent required by Section 1.704-2(i)(4) of the Regulations shall be specially allocated items of Company income and gain
for such Fiscal Year (and, if necessary, subsequent Fiscal Years) in an amount equal to that Member's share of the net decrease in Member
Minimum Gain with respect to such Property.

 

(ii)           Allocations
pursuant to this Section 10.5(b) shall be made in accordance with Section 1.704-2(i)(4) of the Regulations. This Section 10.5(b) is intended
to comply with the requirement set forth in Section 1.704-2(i)(4) of the Regulations and shall be interpreted consistently therewith.

 

(c)            Qualified
Income Offset Allocation.       In the event any Member unexpectedly receives any adjustments,
allocations, or distributions described in Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) or 1.704-1(b)(2)(ii)(d)(6) of the
Regulations which would cause such Member to have an Adjusted Capital Account Deficit with respect to a particular Property, items of
Company income and gain shall be specially allocated to such Member in an amount and manner sufficient to eliminate such Adjusted Capital
Account Deficit as quickly as possible. This Section 10.5(c) is intended to constitute a "qualified income offset" in satisfaction
of the alternate test for economic effect set forth in Section 1.704-1(b)(2)(ii)(d) of the Regulations and shall be interpreted consistently
therewith.

 

(d)            Gross
Income Allocation. In the event any Member has a deficit Capital Account at the end of any Company Fiscal Year with respect to a
particular Property which is in excess of the sum of (i) any amounts such Member is obligated to restore pursuant to this Agreement,
plus (ii) such Member's distributive share of Company Minimum Gain as of such date, plus (iii) such Member's share of Member Minimum
Gain determined pursuant to Section 1.704-2(i)(5) of the Regulations, each such Member shall be specially allocated items of Company
income and gain relating to such Property in the amount of such excess as quickly as possible, provided that an allocation pursuant to
this Section 10.5(d) shall be made only if and to the extent that such Member would have a deficit Capital Account in excess of such
sum after all other allocations provided for in this Article 10 have been made, except assuming that Section 10.5(c) and this Section
10.5(d) were not contained in this Agreement.

 

    -40-

     

    

 

(e)            Allocation
of Nonrecourse Deductions. Nonrecourse Deductions with respect to a particular Property shall be allocated to the Members in accordance
with their respective Ownership Percentages.

 

(f)             Allocation
of Member Nonrecourse Deductions. Member Nonrecourse Deductions with respect to a particular Property shall be allocated as prescribed
by the Regulations.

 

10.6      
Built-In Gain or Loss/Section 704(c) Tax Allocations. In the event that the Capital Account of any Member with respect to a particular
Property is credited with or adjusted to reflect the fair market value of a Company property or properties, the Members' distributive
shares of depreciation, depletion, amortization, and gain or loss, as computed for tax purposes, with respect to such property, shall
be determined pursuant to Section 704(c) of the Code and the Regulations thereunder, so as to take account of the variation between the
adjusted tax basis and book value of such property. For purposes of such allocations, the Company shall elect the remedial allocation
method described in Section 1.704-3(d) of the Regulations with respect to the contributed portion of the Initial Properties. Any deductions,
income, gain or loss specially allocated pursuant to this Section 10.6 shall not be taken into account for purposes of determining Net
Profits or Net Losses or for purposes of adjusting a Member's Capital Account with respect to the applicable Property.

 

10.7       
Recapture. Ordinary taxable income arising from the recapture of depreciation and/or investment tax credit with respect to a particular
Property shall be allocated to the Members in the same manner as such depreciation and/or investment tax credit was allocated to them.

 

10.8      
Prohibition Against Retroactive Allocations. Notwithstanding anything in this Agreement to the contrary, no Member shall be allocated
any loss, credit, or income attributable to a period prior to its admission to the Company. In the event that a Member Transfers all
or a portion of his Interest, or if there is a reduction in a Member's Ownership Percentage with respect to a particular Property due
to the admission of new Members or otherwise, each Member's distributive share of Company items of income, loss, credit, etc. attributable
to such Property, shall be determined by taking into account each Member's varying Interests in the Company with respect to such Property
during the Company's taxable year. For this purpose, unless the Administrative Member, in its sole discretion, elects to provide for
an interim closing of the Company's books, each Member's distributive share shall be estimated by taking the pro rata portion of the
distributive share such Member would have included in his taxable income had he maintained his Ownership Percentage with respect to the
applicable Property throughout the Company year. Such proration shall be based upon the portion of the year during which such Member
held the Ownership Percentage, except that extraordinary, non-recurring items shall be allocated to the Persons holding Interests with
respect to the applicable Property at the time such extraordinary items occur.

 

10.9      
Allocation of Nonrecourse Liabilities. The "excess nonrecourse liabilities" of the Company (within the meaning of Section
1.752-3(a)(3) of the Regulations) with respect to a particular Property shall be shared by the Members in accordance with their respective
Ownership Percentages.

 

    -41-

     

    

 

10.10     
Alternative Allocations. It is the Members' intention that each Member's distributive share of income, gain, loss, deduction,
credit (or item thereof) with respect to a particular Property be determined and allocated consistently with the provisions of the Code,
including Sections 704(b) and 704(c) of the Code. If the Administrative Member reasonably deems it necessary in order to comply with
the Code, the Administrative Member may allocate income, gain, loss, deduction or credit (or items thereof) arising in any Fiscal Year
differently than as provided for in this Article 10 if, and to the extent, (a) allocating income, gain, loss, deduction or credit (or
item thereof) with respect to a particular Property would cause the determinations and allocations of each Member's distributive share
of income, gain, loss, deduction or credit (or item thereof) attributable to such Property not to be permitted by the Code and any applicable
Regulations or (b) such allocation would be inconsistent with a Member's Interest relating to such Property taking into consideration
all facts and circumstances; provided, however, that any allocation pursuant to this Section 10.10 shall not materially alter the economic
agreement between or among the Members. Any allocation made pursuant to this Section 10.10 will be a complete substitute for any allocation
otherwise provided for in this Agreement, and no further amendment of this Agreement or approval by any Member is necessary to effectuate
such allocation. In making any such allocations under this Section 10.10 ("New Allocations") the Administrative Member
may act in reliance upon advice of counsel to the Company or the Company's regular accountants that, in either case, in their respective
opinions after examining the relevant provisions of the Code and any current or future proposed or final Regulations, the New Allocations
are necessary in order to ensure that, in either the then-current year or in any preceding year, each Member's distributive share of
income, gain, loss, deduction, or credit (or items thereof) with respect to a particular Property is determined and allocated in accordance
with the Code and such Member's Interest. New Allocations made by the Administrative Member in reliance upon the advice of counsel or
accountants as described in this Section 10.10 will be deemed to be made in the best interests of the Company and all of the Members
consistent with the duties of the Administrative Member under this Agreement and any such New Allocations will not give rise to any claim
or cause of action by any Member against the Company or the Administrative Member.

 

ARTICLE 11

BOOKS
AND RECORDS; REPORTS

 

11.1      
Accounting Period; Outside Accountant. The Company's accounting period shall be the Fiscal Year. The initial outside accountant
for the Company and the Subsidiaries shall be Deloitte, with any change in such designation being a Major Decision for purposes of this
Agreement.

 

11.2      
Records and Reports. At the expense of the Company, the Company shall maintain separate books and records for all accounting and
operational purposes for the Company and each Master Lessee and its related Property. Bank accounts for the Company may be maintained
separate from the bank accounts of the Subsidiaries or, at the election of the Administrative Member or to the extent required by any
Loan, on a consolidated basis. All Company Expenses shall be charged to the appropriate Subsidiary. To the extent a Company Expense benefits
one or more Subsidiaries, the Administrative Member will allocate such expense as appropriate among the Subsidiaries using its reasonable
discretion. The Company must maintain records and accounts of all operations and expenditures of the Company and each Subsidiary on the
accrual basis. The Company shall keep at its principal place of business the following records:

 

    -42-

     

    

 

(a)           
A current list of the full name and last known address of each Member and Economic Interest Owner;

 

(b)           
Copies of records to enable a Member to determine the relative voting rights, if any, of the Members;

 

(c)           
A copy of the Certificate of Formation of the Company and each Subsidiary, and all amendments thereto;

 

(d)           
Copies of the Company's federal, state, and local income tax returns and reports, if any, for the three (3) most recent years;

 

(e)            Copies
of this Agreement, together with any amendments hereto, and the limited liability company agreement of each Subsidiary, and any amendments
thereto; and

 

(f)             Copies
of any financial statements of the Company or the Subsidiaries for the three (3) most recent years.

 

All
books and records, in addition to those described in (a) through (f) above, shall at all times be maintained or made available to the
Members and the Economic Interest Owners at the principal office of the Company and shall be open to the inspection, examination and
copying of and by the Members, Economic Interest Owners, or their duly authorized representatives during reasonable business hours upon
not less than five (5) Business Days advance notice to the Administrative Member.

 

11.3      
Tax Matters. At the expense of the Company, the Partnership Representative shall cause the preparation and timely filing of all
tax returns required to be filed by the Company pursuant to the Code and all other tax returns deemed necessary and required in each
jurisdiction in which the Company does business. All such returns shall be presented to the Members for review prior to filing and at
least fifteen (15) days prior to any applicable filing deadline (including any applicable extensions), and the failure of a Member to
object to any such tax return within seven (7) Business Days after the date such tax return is delivered to such Member shall be deemed
an approval of any tax election contained therein for purposes of Section 5.2(b)(x) hereof. Copies of such returns, or pertinent information
therefrom, shall be furnished to the Members within a reasonable time after filing thereof.

 

11.4       
Reports to Members.

 

(a)           Within
forty-five (45) days after the close of each Fiscal Year, beginning with the Fiscal Year ending December 31, 2020, the Administrative
Member shall provide to the Members drafts of audited financial statements of the Company for such Fiscal Year, with final audited financial
statements to be provided within sixty (60) days after the close of each Fiscal Year. Such financial statements shall be prepared in
accordance with generally accepted accounting principles in the United States of America (including footnotes and year-end adjustments,
but subject to estimated depreciation) and shall include an income and expense statement, statement of cash flows, and balance sheet
which shall reflect the results of the operations of the Company for such Fiscal Year, the unpaid balance due on all obligations of the
Company, a statement of changes in the Members' equity, and all other information customarily reflected in similar financial statements
and as reasonably requested by a Member.

 

    -43-

     

    

 

(b)           The
Administrative Member shall have prepared and delivered to the Members, (a) within twenty (20) days after the end of each month of each
Fiscal Year with respect to the Company and each Subsidiary, (i) monthly income and expense statements and balance sheets, except with
respect to the last month of each calendar year, (ii) a copy of cash disbursements ledger entries for such period, (iii) a copy of cash
receipts ledger entries for such period, (iv) an aged receivables report, if applicable, (v) a trial balance, (vi) a variance analysis-budget
vs. actual (line items 10% or greater), (vii) a copy of check registers, bank account statements and reconciliations, and (viii) a rent
roll; and (b) within forty five (45) days after the end of each of the first three (3) calendar quarters of each Fiscal Year with respect
to the Company and each Subsidiary, an unaudited income and expense statement, statement of cash flows, and balance sheet showing each
Member's Capital Account balance with respect to each such quarter. Such financial statements shall be prepared in accordance with generally
accepted accounting principles in the United States of America, subject to estimated depreciation and the lack of footnotes and year-end
adjustments.

 

(c)           The
Partnership Representative shall cause to be prepared and delivered to the Members by February 15th of each Fiscal Year (i) a report
(inclusive of a draft K-1 and various supporting documents) reflecting each Member's share of the Company's estimated taxable income
for the immediately preceding Fiscal Year, and (ii) an annual depreciation schedule prepared in accordance with the alternative depreciation
system using the straight-line method.

 

(d)            The
Administrative Member shall maintain the books and records of the Company, and shall prepare the reports set forth in Sections 11.4 (b)
and (c), (i) on a "stand alone" basis for each Property, as if the investment in each Property were made pursuant to a separate
joint venture agreement having the same parties and same economic terms as set forth in this Agreement (i.e., as if such Property were
the sole asset of the Company), and (ii) on an aggregate basis taking into account all assets of the Company. Annually, by May 1 of each
Fiscal Year, in connection with the preparation of tax returns under Section 11.3, the Administrative Member shall prepare or
cause to be prepared a separate tax statement for each Property to be provided to Investor Member concurrently with Investor Member's
Schedule K-1 reflecting such "stand alone" treatment for tax purposes so that Investor Member can determine how Investor Member's
share of cash distributions, capital contributions and allocations of profits and losses for tax purposes for each Fiscal Year shall
be apportioned to and among its members on a Property-by-Property basis. Such separate tax statements shall be prepared on a tax basis
and in accordance with the federal income tax laws in effect during the applicable Fiscal Year. If the Administrative Member reasonably
determines that any cash, revenue, liability, income, expense, gain, loss or other item is not clearly attributable to a specific Property,
then the Administrative Member shall apportion such item to and among the Properties in any manner determined by the Administrative Member
to be reasonable. The Administrative Member and the Members further acknowledge that the "stand alone" reports and financial
statements may be augmented or modified as reasonably necessary or appropriate to enable the requirements described in the preceding
sentence to be accomplished satisfactorily as reasonably determined by the Members. For the avoidance of doubt, it is anticipated that,
to the extent permitted by applicable law (including Section 704 of the Code and the Regulations thereunder), the Company will prepare,
file with the IRS, and send to the Investor Member, a single K-1 for each taxable year that is a composite of the "stand alone"
Property-by-Property statements contemplated by this Section 11.4(d). To the extent that any costs or expenses of any tax audits are
reasonably attributable to the application of this Section 11.4(d), as determined in the reasonable discretion of the Administrative
Member, such costs and expenses shall be borne solely by the Investor Member, and the Investor Member shall not pursue recovery of any
damages attributable to the application of this Section 11.4(d) from the Administrative Member.

 

(e)            In
addition to the reports set forth above, the Administrative Member shall prepare and deliver to the Members such other reports as any
Member may reasonably request from time to time.

 

    -44-

     

    

 

ARTICLE 12

TRANSFERS 

 

12.1      
Covenants Regarding Transfers. Each of the Members hereby covenants and agrees that, except as otherwise expressly provided in
this Article 12, such Member will not directly or indirectly assign, convey, sell, transfer, encumber, or in any way alienate (collectively
a "Transfer") all or any part of its Interest or permit the Transfer of any of the direct or indirect ownership interests
in such Member without the prior written consent of all Members. Any attempted Transfer of all or any portion of an Interest without
the necessary consent, or as otherwise permitted hereunder, shall (a) be null and void, (b) have no effect whatsoever, and (c) constitute
a breach of this Agreement.

 

12.2      
Permitted Transfers. Notwithstanding anything to the contrary contained in Section 12.1 above, but subject to Section 12.3 below:

 

(a)            The
VEREIT Member may Transfer all or any part of its Interest to a VEREIT Permitted Transferee at any time, and such transferee shall become
a substituted Member without the consent of any other Member. Additionally, for the avoidance of doubt, (i) the Transfer of direct and
indirect interests in the VEREIT Member, and the issuance of new interests in the VEREIT Member, may occur at any time without the consent
of any other Member, provided that the Interest of the VEREIT Member continues to be Controlled by a VEREIT Permitted Transferee, and
(ii) interests in the VEREIT REIT may be Transferred without restriction.

 

(b)            Subject
to the terms of Section 12.3 and 12.4 below, Transfers of the Interest of the Investor Member pursuant to an Investor Permitted Transfer
shall be permitted at any time, and any Investor Permitted Transferee of the entire direct interest of the Investor Member in the Company
shall become a substituted Member without the consent of any other Member. Additionally, for the avoidance of doubt, (i) the Transfer
of direct or indirect interests in the Investor Member, and the issuance of new interests in the Investor Member, to an Investor Permitted
Transferee may occur at any time without the consent of the VEREIT Member.

 

12.3      
Conditions of Permitted Transfers. Any permitted Transfer of a Member's Interest in the Company, including any Transfer permitted
pursuant to Section 12.2 above, shall be subject to the following conditions, as applicable:

 

(a)            in
the case of a direct transfer, the transferor, its legal representative, or authorized agent must have executed a written instrument
of Transfer of such Interest in form and substance reasonably satisfactory to the Administrative Member;

 

(b)            in
the case of a direct transfer, the transferee must have executed a written agreement, in form and substance reasonably satisfactory to
the Administrative Member containing, without limitation, (i) the transferee's agreement to assume all of the duties and obligations
of the transferor under this Agreement with respect to the Transferred Interest and to be bound by and subject to all of the terms and
conditions of this Agreement, and (ii) representations by the transferee comparable to the representations by the Members set forth in
Article 4, as well as representations regarding the matters identified in Section 12.4 below;

 

(c)            in
the case of a direct transfer, the transferor has expressly granted to such transferee the right to become a substituted Member with
Approval Rights with respect to such Transferred Interest;

 

    -45-

     

    

 

(d)            in
the case of a direct transfer, the transferee must have executed such other documents and instruments as the Administrative Member may
deem reasonably necessary to effect the admission of the transferee as a Member;

 

(e)            the
transferee or the transferor must have paid the expenses incurred by the Company in connection with the admission of the transferee to
the Company; and

 

(f)             in
the case of a permitted direct transfer of the Investor Membership Interest, the Investor Member provides at least fifteen (15) Business
Days' prior notice to the VEREIT Member, provides information about the identity of the proposed transferee and its constituent members
comparable to the information provided about the Investor Member in connection with the Formation Agreement and the execution of this
Agreement, including such information as the VEREIT Member reasonably requires in order to make the determinations described in Section
12.4 below, and complies with the any additional reasonable due diligence requests of the VEREIT Member with respect to the proposed
transferee.

 

12.4      
Prohibition on Certain Transfers. Notwithstanding anything to the contrary provided in this Article 12, no Member may Transfer
all or part of its Interest, or permit the Transfer of any direct or indirect ownership interests in such Member, and any Transfer or
purported Transfer shall be null and void and the Company shall not recognize the transferee, purported transferee, or purported beneficial
owner of such Interest as a direct or indirect holder of an Interest in the Company for any purpose, if the Administrative Member determines
that such action would (a) violate, or require registration or qualification under, applicable federal, state, or foreign securities
laws; (b) cause any of the representations, warranties or covenants set forth in Article 4 to be untrue, incorrect or incomplete in any
material respect with respect to the transferee (including, without limitation, violation of any Anti-Terrorism Laws, or status as a
Prohibited Person), (c) in the case of a direct transfer, create a material risk of adverse tax consequences to any Member (other than
to the transferor and transferee), (d) require the filing of, or create a material risk of adverse consequences by not filing, a voluntary
notice with the Committee on Foreign Investment in the United States ("CFIUS") in connection with such Transfer, (e) cause
the Company to be in breach of or default under the terms of any Loan Documents, or (f) threaten or result in a liquidation of the Company.
Prior to effecting any Transfer of an Interest, the transferor shall provide reasonable assurances to the Company that the proposed Transfer
would not cause the consequences described in this Section 12.4.

 

12.5       
Bankruptcy. Any Member which suffers a Bankruptcy shall be a "Bankrupt Member" for purposes hereof. The Interest
of a Bankrupt Member shall vest in the trustee, receiver or administrator of the Bankrupt Member's estate. The Company shall not be dissolved
and terminated as a result of a Member becoming a Bankrupt Member. A Bankrupt Member's successor in interest shall be an Economic Interest
Owner in the Company only and shall continue to have the Economic Interest associated with its Interest, but shall have no Approval Rights.

 

    -46-

     

    

 

ARTICLE
13

DISSOLUTION
AND TERMINATION

13.1       Dissolution.

 

(a)            The
Company shall be dissolved upon the first to occur of any of the following:

 

(i)             the
unanimous consent of the Members to dissolve the Company; and

 

(ii)            the
occurrence of any event which, as a matter of law, requires that the Company be dissolved.

 

(b)            The
Company shall not be dissolved upon the occurrence of any of the following events (each, an "Event of Dissociation"):

 

(i)            
With respect to any Member, upon the Transfer of all of such Member's Interest;

 

(ii)            With
respect to any Member, upon the voluntary withdrawal, retirement or resignation of the Member by notice to the Company;

(iii)           With
respect to any Member that is an Entity, the filing of articles of dissolution or the dissolution and liquidation of such Entity;

(iv)           With
respect to any Member that is a trust, upon termination of the trust;

 

(v)           With
respect to any Member, the Bankruptcy of the Member; or

 

(vi)           Any
other event that terminates the continued membership of a Member in the Company.

 

Within
ten (10) days following the happening of any Event of Dissociation with respect to a Member, such Member must give notice of the date
and the nature of such event to the Company and each other Member.

 

(c)            Any
successor in interest of a Member as to whom an Event of Dissociation occurred shall become an Economic Interest Owner but shall not
be admitted as a Member with Approval Rights except in accordance with Article 12 hereof.

 

(d)            A
Member shall not voluntarily withdraw from the Company or take any other voluntary action that causes an Event of Dissociation, except
as otherwise authorized by this Agreement.

 

(e)            Unless
otherwise approved by all of the Members or otherwise provided herein, a Member who suffers or incurs an Event of Dissociation or whose
status as a Member is otherwise terminated (a "Withdrawing Member"), regardless of whether such termination was the
result of a voluntary act by such Withdrawing Member, shall not be entitled to receive the fair value of its Membership Interest, and
such Withdrawing Member shall become an Economic Interest Owner.

 

(f)             Any
damages for breach of Section 13.1(d) may be offset against distributions by the Company to which the Withdrawing Member would otherwise
be entitled.

 

    -47-

     

    

 

13.2       Effect
of Dissolution. Upon dissolution, the Company shall cease to carry on its Business, except as permitted by the Delaware Act, and
the Liquidators shall proceed to wind up the Business in accordance with this Agreement.

 

13.3      
Winding Up, Liquidation and Distribution of Assets.

 

(a)            Upon
dissolution, an accounting shall be made by the Company's accountants of the accounts of the Company and of the Company's assets, liabilities
and operations, from the date of the last previous accounting until the date of dissolution. The Administrative Member, or if none, the
Person or Persons selected by the Members (the "Liquidators"), shall immediately proceed to wind up the affairs of the
Company.

 

(b)            
If the Company is dissolved and its affairs are to be wound up, the Liquidators shall:

 

(i)             Sell
or otherwise liquidate all of the Company's and the Subsidiaries' assets as promptly as practicable (except to the extent the Liquidators
may determine to distribute any assets to the Members in kind if agreed upon by all of the Members);

 

(ii)            Allocate
any Net Profit or Net Loss resulting from such sales to the Members and Economic Interest Owners in accordance with Article 10 hereof;

 

(iii)           Discharge
all liabilities of the Company, including liabilities to Members and Economic Interest Owners who are creditors, to the extent otherwise
permitted by law, other than liabilities to Members and Economic Interest Owners for distributions, and establish such Reserves as may
be reasonably necessary to provide for contingencies or liabilities of the Company; and

 

(iv)           Distribute
the remaining assets to the Members, either in cash or in kind (if approved by the Members), in accordance with Section 9.2 of this Agreement.

 

If
any assets of the Company are to be distributed in kind, the net fair market value of such assets shall be determined by independent
appraisal or by agreement of the Members. Such assets shall be deemed to have been sold as of the date of dissolution for their fair
market value, and the Capital Accounts of the Members and Economic Interest Owners shall be adjusted pursuant to the provisions of this
Agreement to reflect such deemed sale.

 

(c)            Notwithstanding
anything to the contrary in this Agreement, upon a liquidation within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Regulations,
if any Member has a deficit Capital Account (after giving effect to all contributions, distributions, allocations, and other Capital
Account adjustments for all taxable years, including the year during which such liquidation occurs), such Member shall have no obligation
to make any Capital Contribution to reduce or eliminate the negative balance of such Member's Capital Account.

 

(d)           
Notwithstanding anything to the contrary contained herein, no distribution shall be made in violation of the Delaware Act.

 

(e)            Upon
completion of the winding up, liquidation and distribution of the assets, the Company shall be deemed terminated.

 

13.4       Certificate
of Cancellation. When all debts, liabilities, and obligations have been paid and discharged or adequate provisions have been made
therefor and all of the remaining property and assets have been distributed to the Members, a certificate of cancellation will be executed
and filed with the Secretary of State of Delaware in accordance with the Delaware Act.

 

13.5       Return
of Contribution Nonrecourse to Other Members. Except as provided by law or as expressly provided in this Agreement, upon dissolution,
each Member shall look solely to the assets of the Company for the return of the Member's Capital Account. If the Company property remaining
after the payment or discharge of the debts and liabilities of the Company is insufficient to return the Capital Account of one or more
Members, including, without limitation, all or any part of that Capital Account attributable to Capital Contributions, then such Member
or Members shall have no recourse against any other Member and the Members will be entitled to any amounts that are distributable to
them pursuant to Section 13.3(b)(iv).

 

    -48-

     

    

 

ARTICLE 14

PROPERTY
SALE OPTION

14.1       Sale
of Properties.

 

(a)            The
sale procedure (the "Property Sale Procedure") described in this Article 14 may be initiated in the following
circumstances:

 

(i)             The
Investor Member may initiate the Property Sale Procedure at any time after the termination of the Portfolio Management Agreement by the
Investor Member due to a default by the Portfolio Manager thereunder.

 

(ii)           
Either Member may initiate the Property Sale Procedure at any time after the fifth (5th) anniversary of the date of
this Agreement.

 

(b)            The
Member which initiates the Property Sale Procedure pursuant to Section 14.1(a) above (the "Commencing Member" for purposes
hereof), shall initiate such Property Sale Procedure by giving written notice thereof to the other Member. Thereafter, the Members shall
in good faith cooperate and negotiate for a period of thirty (30) days as to (i) the gross sale price for the Properties, (ii) the marketing
efforts to be undertaken, and (iii) the other terms and conditions of a sale of such Properties to a third party purchaser.

 

14.2       
Sale Option.

 

(a)             Generally.
If the Members are unable to reach agreement on the matters set forth in Section 14.1 within the thirty (30) day period set forth therein,
then the Commencing Member may deliver a written notice (a "Sale Notice") to the other Member (the "Responding
Member") setting forth the gross sale price at which the Commencing Member proposes to sell the Properties (the "Target
Sale Price"). The Target Sale Price must be in an amount equal to at least the sum of (i) the amount of any indebtedness directly
or indirectly secured by the Properties through Master Lease Financing, including all fees, yield maintenance and penalty amounts, and/or
other payments applicable to any prepayment of such indebtedness, and (ii) any other indebtedness or obligation owed by the Company and
the Subsidiaries to third parties.

 

Until
the date that is forty-five (45) days after receipt of a Sale Notice, the Responding Member may deliver to the Commencing Member a written
notice (a "Purchase Notice") electing to purchase the Properties. In the event the Responding Member does not exercise
its right to purchase the Properties within such forty-five (45) day period, then the Commencing Member shall be entitled to proceed
with a sale of the Properties pursuant to the provisions of this Section 14.2.

 

(b)            Purchase
Election. In the event the Responding Member timely exercises its right to purchase the Properties following its receipt of a Sale
Notice, the Responding Member (hereinafter referred to as the "Purchasing Member") shall purchase the Properties in
accordance with the following terms and conditions:

 

(i)            The
price payable by the Purchasing Member to the Commencing Member (hereinafter referred to as the "Selling Member") for
the Properties (the "Purchase Option Purchase Price") shall equal the amount which the Selling Member would receive
under this Agreement if the Properties were sold for cash to an unrelated Person for a gross sale price equal to the Target Sale Price
and the Distributable Cash from Capital Transactions resulting from such sale were distributed to the Members pursuant to Section 9.2,
after payment of all indebtedness directly or, by virtue of Master Lease Financing, indirectly secured by such Properties, including
all fees, yield maintenance and penalty amounts, and/or other payments applicable to any prepayment of such indebtedness, after paying
all other indebtedness and obligations owed by the Company and the Subsidiaries to third parties, and after liquidating any Reserves
then existing and without establishing any additional Reserves.

 

    -49-

     

    

 

(ii)            Within
ten (10) days after delivering its Purchase Notice, the Purchasing Member shall deposit with First American Title Insurance Company (Atlanta,
Georgia NCS office) an earnest money deposit equal to $2,000,000.00, which deposit shall be held in escrow and applied against the Purchase
Option Purchase Price at closing.

 

(iii)           The
purchase of the Properties shall be closed and consummated on a date specified by Purchaser in the Purchase Notice, which date shall
be at least forty five (45) days but not more than sixty (60) days after delivery of the Purchase Notice. Closing shall take place on
the designated closing date by delivery of documents through First American Title Insurance Company (Atlanta, Georgia NCS office).

 

(iv)           At
the closing, the Master Lessees shall deliver to the Purchasing Member all documents customarily required (or reasonably required by
the Purchasing Member) to convey the Properties to the Purchasing Member, which documents shall be in form and substance reasonably satisfactory
to the Purchasing Member. Title to the Properties shall be conveyed free and clear of any Master Lease Documents or other Loan Documents
and without any other exceptions not included in the Master Lessees' title insurance policies or not otherwise permitted by the terms
of this Agreement or previously approved by the Company. Alternatively, upon the mutual agreement of the parties, the purchase transaction
may be structured as a conveyance of membership interests in the Company or the Subsidiaries.

 

(v)            Rentals
and other income, as well as taxes and operating expenses with respect to the Properties (to the extent not payable directly or reimbursable
by the tenants of the Properties), shall be prorated between the Company and the Purchasing Member at closing. In the event accurate
prorations and other adjustments cannot be made at closing because current bills or statements or other information is not available,
the parties shall prorate on the best available information, subject to adjustment after the closing as the actual amounts to be prorated
are determined.

 

(vi)           Closing
costs, such as transfer taxes and title insurance premiums shall be allocated between the Company and the Purchasing Member in accordance
with customary practices in the state, county, and municipality in which the Properties are located. The Purchasing Member and the Selling
Member each shall pay its own attorneys' fees and expenses.

 

(vii)          Pending
the closing, the Properties shall be operated and maintained and the business of the Master Lessees conducted consistent with prior practices
and then current Property Operating Budgets. On the Business Day immediately preceding the closing, the Company shall make a distribution
of any Distributable Cash from Operations pursuant to Section 9.1 hereof. The Purchase Option Purchase Price for the Properties and all
other amounts payable in connection with the transaction contemplated hereby shall be payable at the closing by federal wire of immediately
available funds.

 

(viii)         In
the event that the Responding Member delivers a Purchase Notice but thereafter defaults in its agreement to acquire the Properties on
the scheduled date of closing, then the Responding Member's earnest money deposit shall be disbursed to the Selling Member as full liquidated
damages on account of the Responding Member's default. In addition, the Selling Member thereafter may, without further consent of the
Responding Member, cause the Company to market the applicable Properties in accordance with the terms of Section 14.2(c) below, provided
that the gross sale price for the Properties may be marketed and sold for less than 95% of the Target Sale Price.

 

(c)            Sale
Election. In the event the Responding Member does not exercise its right to purchase the Properties within the time period specified
in Section 14.2(a) above, then the Commencing Member may, without further consent of the Responding Member, cause the Company to market
the Properties at a gross sale price equal to not less than ninety-five percent (95%) of the Target Sale Price for a period of six (6)
months (the "Sales Period"). If the Company, at the direction of the Commencing Member, fails to enter into a Qualifying
Agreement (as defined in Section 14.2(d) below) for the sale of the Properties during the Sales Period, the Commencing Member shall not
be entitled to cause the Company to continue to market or sell the Properties without submitting a new Sale Notice to the Responding
Member and following the procedures set forth in Section 14.2(a) above with respect to such Sale Notice. If the Commencing Member succeeds
in obtaining a Qualifying Agreement for the sale of the Properties during the Sales Period then the Company shall proceed to sell the
Properties pursuant to such Qualifying Agreement.

 

    -50-

     

    

 

(d)           Qualifying
Agreement. "Qualifying Agreement" shall mean a purchase and sale agreement for the sale of all, but not less than all,
of the Properties which meets the following requirements:

 

(i)             The
gross sale price in such transaction must equal or exceed ninety-five percent (95%) of the Target Sale Price and will be paid in full,
in cash, at the closing (subject to customary prorations, credits, and cost allocations);

 

(ii)            The
purchaser thereunder shall have a reasonably demonstrable financial capability to make the deposits required under the agreement and
to provide the equity that, together with generally available conventional mortgage financing, will be sufficient to pay the purchase
price;

 

(iii)           Closing
is required within 60 days of the date of execution of the purchase and sale agreement, with no rights of extension other than one 30-day
extension period beyond such 60 days;

 

(iv)           The
purchaser shall not be an Affiliate of the Commencing Member; and

 

(v)            The
sale of the Properties shall be without representations or warranties as to the physical condition of the improvements constructed on
the Properties other than such representations and warranties as are generally accepted as being standard and customary with respect
to the sale of similar properties.

 

(e)            Marketing.
During the Sales Period, the Commencing Member may require the Company (i) to incur reasonable and customary expenses in connection with
the marketing of the Properties, such as the preparation of studies and brochures and legal fees to prepare and negotiate agreements,
and (ii) to retain on a nonexclusive or exclusive basis one or more brokers designated by the Commencing Member, provided that (A) such
brokers are not Affiliates of the Commencing Member, and (B) the commissions or fees payable to such broker(s) are consistent with commissions
and fees payable to brokers in connection with the sale of properties similar to the Properties.

 

(f)           
Administrative Member Responsibilities. If the Commencing Member is not the Administrative Member and the Administrative Member
does not exercise its right to purchase the Properties, the Administrative Member shall, at the Commencing Member's direction, and at
the Company's expense, exercise reasonable efforts to enter into any arrangement and take any action that the Commencing Member is entitled
to require pursuant to this Section 14.2. The Administrative Member shall, at the Company's expense, arrange for property tours, inspections
and studies of the Properties and obtain title commitments, environmental and construction reports, market studies or other materials
to facilitate the marketing and sale of the subject Properties as requested by the Commencing Member.

 

ARTICLE
15

INTENTIONALLY
OMITTED

 

ARTICLE
16

MISCELLANEOUS
PROVISIONS

 

16.1       
Application of Delaware Law. This Agreement, and the application or interpretation hereof, shall be governed exclusively by its
terms and by the Delaware Act, excluding any conflicts-of-law rule or principle that might refer to the governance or the construction
of this Agreement to the law of another jurisdiction.

 

16.2       
No Action for Partition. No Member has any right to maintain any action for partition with respect to the property of the Company
or any Subsidiary.

 

    -51-

     

    

 

16.3       Execution
of Additional Instruments. Each Member hereby agrees to execute such other and further statements of interest and holdings, designations,
powers of attorney, and other instruments necessary to comply with any laws, rules, or regulations. Each Member also agrees to amend
this Agreement in a manner that is not of significant material impact to the Member but is required by any Loan.

 

16.4       
Construction. Whenever the singular number is used in this Agreement and when required by the context, the same shall include
the plural and vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa. The use of the terms
 "including" or "include" shall in all cases herein mean "including, without limitation" or "include,
without limitation," respectively.

 

16.5       
Headings. The headings in this Agreement are inserted for convenience only and are in no way intended to describe, interpret,
define, or limit the scope, extent or intent of this Agreement or any provision hereof.

 

16.6       
Waivers. The failure of any party to seek redress for violation of or to insist upon the strict performance of any covenant or
condition of this Agreement shall not prevent a subsequent act, which would have originally constituted a violation, from having the
effect of an original violation.

 

16.7      
Rights and Remedies Cumulative. Except as expressly provided in this Agreement, the rights and remedies provided by this Agreement
are cumulative and the use of any one right or remedy by any party shall not preclude or waive the right to use any or all other remedies.
Such rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise.

 

16.8       
Exhibits. All exhibits referred to in this Agreement and attached hereto are incorporated herein by this reference.

 

16.9      
Successors and Assigns. Each and all of the covenants, terms, provisions, and agreements herein contained shall be binding upon
and inure solely to the benefit of the parties hereto and, to the extent permitted by this Agreement, their respective successors and
assigns.

 

16.10      No
Third Party Rights. None of the provisions of this Agreement shall be construed to create any rights or benefits in any Entity other
than the Members, any Officers, any Indemnitees, and their respective legal representatives, transferees, successors, and assigns, subject
to the limitations on Transfer contained herein. For the avoidance of doubt, none of the provisions of this Agreement shall be for the
benefit of or enforceable by any creditor.

 

16.11      Counterparts:
Electronic Signatures. This Agreement may be executed in separate counterparts, each of which shall be deemed an original but all
of which shall constitute one and the same instrument. This Agreement may be executed and delivered by electronic means and such execution
will be deemed to be an original.

 

16.12     
Federal Income Tax Elections; Partnership Representative.

 

(a)            For
all purposes permitted or required by the Code, the Members constitute and appoint the VEREIT Member as the Partnership Representative,
or if the VEREIT Member is no longer the Administrative Member, or if the VEREIT Member resigns as the Partnership Representative, then
such other Person as shall be selected by a Majority in Interest of the Members shall serve as the Partnership Representative. This appointment
is made pursuant to the provisions of Section 6223 of the Code and the Partnership Representative shall act on behalf of the Company
for purposes of Sections 6221 through 6241 of the Code. Each Member hereby consents to the VEREIT Member serving as the Partnership Representative
and agrees that, upon request of the Partnership Representative, it will execute, acknowledge, deliver, file and record at the appropriate
public offices such documents as may be necessary or appropriate to evidence such consent. The Partnership Representative may resign
at any time by giving written notice to the Company and each of the other Members. The Partnership Representative shall be authorized,
on behalf of the Company, to designate a Person to act as the Partnership Representative's Designated Individual at such time and in
such manner as may be prescribed by the Regulations.

 

    -52-

     

    

 

(b)              
The Partnership Representative shall represent the Company (at the Company's expense) in connection with any disputes, controversies
or proceedings with the Internal Revenue Service or with any state, local, or non-U.S. taxing authority involving the Company, and subject
to the terms of Section 5.2 in the case of any such action which constitutes a Major Decision, the Partnership Representative shall be
authorized and entitled to (i) sign consents, enter into settlement and other agreements with such authorities with respect to any such
examinations or proceedings, (ii) expend the Company's funds for professional services incurred in connection therewith, and (iii) take
such actions on behalf of the Company in any and all proceedings with the Internal Revenue Service and any other such taxing authority
as it reasonably determines to be appropriate. The Members agree to cooperate in good faith to timely provide information, make elections
and file amended tax returns, all as reasonably requested by the Partnership Representative in connection with the Revised Partnership
Audit Procedures. The Partnership Representative shall periodically update the Members as to the status of any disputes, controversies,
or proceedings.

 

(c)              
The Partnership Representative shall give prompt notice to the Members of (i) the receipt by the Partnership Representative of
written notice that a federal, state or local taxing authority intends to examine the Company's income tax returns for any year; (ii)
receipt by the Partnership Representative of written notice of a final partnership adjustment under Code Section 6231; and (iii) receipt
of any request by the Partnership Representative from the Internal Revenue Service for waiver of any applicable statute of limitations
with respect to any tax return of the Company. The Partnership Representative shall give each Member at least five Business Days' advance
notice of the time and place of (x) any administrative proceeding relating to the determination of a material tax item at the Company
level and (y) any discussions with the Internal Revenue Service relating to a material item of allocation pursuant to this Agreement.
The Partnership Representative shall keep all Members reasonably informed of the progress of any tax audits or examinations.

 

(d)              
In the event of any controversy with the Internal Revenue Service or any other taxing authority involving the Company, the outcome
of which may adversely affect the Company, directly or indirectly, or the amount of allocation or profits, gains, credits or losses of
the Company to an individual Member, the Partnership Representative shall cause the Company to incur such reasonable expenses as the
Partnership Representative deems necessary or advisable and in the interest of the Company in connection with any such controversy, including,
without limitation, attorneys' and accountants' fees.

 

(e)              
The Partnership Representative may cause the Company, in connection with any audit or proposed adjustment by the Internal Revenue
Service, to make a valid election pursuant to Section 6226 of the Code and to comply with any requirements necessary to the continued
validity of such election and accordingly to require each Person who was a Member during the Fiscal Year of the Company that was audited
(a "Review Year") to personally bear any tax, interest and penalty resulting from adjustments based on such audit, and
shall notify each such Person (and the Internal Revenue Service) of its share of such audit adjustments. Each Member agrees to the foregoing,
even if such Person is no longer a Member at the time of the assessment of such tax, interest or penalty.

 

    -53-

     

    

 

(f)                In
the event that the Company is unable (or otherwise fails) to make an election pursuant to Section 6226 of the Code and the Company is
subject to an entity-level tax (including any interest, addition to tax, or penalties related thereto, an "Entity Tax")
as a result of adjustments to items of income, gain, deduction, loss or credit of the Company for any Review Year, then (i) each
Member agrees that each Person who was a Member during the Review Year, even if such Person is no longer a Member (unless a transferee
Member has agreed to bear such liability in an appropriate document evidencing a Transfer effectuated in accordance with Article 12 hereof),
shall pay to the Company, upon thirty (30) days' written notice from the Partnership Representative requesting the payment, an amount
equal to such Person's proportionate share of such liability (including such Member's share of any additional accrued interest assessed
against the Company relating to such Member's share of the assessed amounts), as reasonably determined by the Partnership Representative,
based on the amount each such Person would have borne (computed at the tax rate used to compute the Company's liability, as may be adjusted
pursuant to clause Error! Reference source not found.) had the Company's tax return for such Review Year reflected the audit adjustment,
and the expense for the Company's payment of such Entity Tax shall be specially allocated to such Persons (or their successors) in such
proportions, and (ii) the Partnership Representative will use commercially reasonable efforts to (x) if a Member was a tax-exempt entity
during such Review Year, reduce the amount of such Entity Tax liability owed by the Company on account of the tax-exempt status of such
Member as provided in Section 6225(c)(3) of the Code, (y) if a Member was a C corporation or an individual during such Review Year, reduce
the amount of such Entity Tax liability owed by the Company on account of such status as provided in Section 6225(c)(4) of the Code,
and (z) reduce, to the extent possible, the Entity Tax liability based on any other provisions of the Code or Regulations thereunder
that may be applicable in such circumstance. At the reasonable discretion of the VEREIT Member, with respect to current Members, the
Company may alternatively allow some or all of a Member's obligation pursuant to the preceding sentence to be applied to and reduce the
next distribution(s) otherwise payable to such Member under this Agreement provided that such application to and reduction of the distributions
shall apply to all current Members having a share of the assessment, pro-rata based on the Members' shares of the assessment.

 

(g)              
The Members acknowledge and agree that the Company may pay tax obligations under this Section 16.12 that relate to a period prior
to the time a Member was admitted to the Company as a Member or when the Member's Economic Interest was less, and the Company, after
reasonable efforts, may be unable to collect payments from Review Year Members pursuant to clause (f) of this Section 16.12. Consequently,
a Member at the time of payment by the Company may bear the burden of tax obligations related to adjustments to tax items from which
the Member did not benefit.

 

(h)              
The VEREIT Member is specifically directed and authorized to take whatever steps in its discretion it deems necessary or desirable
to perfect the VEREIT Member's designation as Partnership Representative, including, without limitation, filing any forms or documents
with the Internal Revenue Service and taking such other action as the VEREIT Member in its discretion determines may from time to time
be required or advisable under the Regulations. Subject to the terms of Section 5.2 in the case of any such action which constitutes
a Major Decision, each Member hereby agrees to the Partnership Representative extending the statute of limitations with respect to such
Member regarding "partnership tax items" (without the further consent of such Member being required).

 

    -54-

     

    

 

(i)                
The provisions contained in this Section 16.12 shall survive the dissolution of the Company and the withdrawal of any Member or
the Transfer of any Member's Membership Interest and/or Economic Interest in the Company. The provisions of this Section 16.12 shall
survive the termination of the Company and shall remain binding on the Members for as long a period of time as is necessary to resolve
with the Internal Revenue Service any and all matters regarding the federal income taxation of the Company or the Members, and any other
proceeding with any other such taxing authority, and for the Members to satisfy their obligations hereunder. Each Member shall file tax
returns consistent with the tax treatment set forth in the Company's tax returns.

 

(j)                
Neither the Partnership Representative nor the Designated Individual shall have personal liability arising out of his, her or its
good faith performance of his, her or its duties as the Partnership Representative
or Designated Individual hereunder, and the Company shall pay all reasonable out-of-pocket costs of the Partnership Representative and
Designated Individual in connection with his, her or its representation of the Company as the Partnership Representative or Designated
Individual, as applicable. The provisions on limitations of liability of the Administrative Member and Members and indemnification set
forth in Article 5 hereof shall be fully applicable to the Partnership Representative and the Designated Individual in his, her or its
capacity as such.

 

16.13       Notices. Any and all notices, offers, demands, or elections required or permitted to be made under this Agreement shall be in
writing, signed by the party giving such notice, and shall be deemed given and effective (a) when hand-delivered (either in person by
the party giving such notice, or by its designated agent, or by commercial courier), (b) when sent via facsimile with confirmation of
delivery, (c) when sent via electronic mail, (d) on the first Business Day (as evidenced by proof of mailing) following the deposit of
such notice, postage prepaid, with a reputable, international, overnight courier with instructions for next-day delivery or (e) on the
third Business Day following the day (as evidenced by proof of mailing) upon which such notice is deposited, postage pre-paid, certified
mail, return receipt requested, with the United States Postal Service, or its legal successor, and addressed to the other party at such
party's respective address as set forth on Exhibit A, or at such other address as the other party may hereafter designate by notice.

 

16.14       Amendments. Except as otherwise permitted in Section 8.5(c), Section 10.10, Article 12, or Article 14, any amendment to this Agreement
shall be made in a writing identifying itself as an amendment to this Agreement and shall be executed by all of the Members. For the
sake of clarity, this Agreement may be amended by the Administrative Member without prior consent of any Member whenever required by
law or reasonably deemed necessary by the Administrative Member to effect changes of a ministerial nature that do not materially and
adversely affect the rights or increase the obligations of the Members.

 

16.15       Invalidity. The invalidity or unenforceability of any particular provision of this Agreement as to any Persons or circumstances
shall not affect the other provisions hereof, and this Agreement shall be valid and enforced to the fullest extent permitted by law.
If any particular provision herein is construed to be in conflict with the provisions of the Delaware Act, the provisions of this Agreement
shall control to the fullest extent permitted by applicable law. Any provision found to be invalid or unenforceable shall not affect
or invalidate the other provisions hereof, and this Agreement shall be construed in a manner which is valid and enforceable to the fullest
extent permitted by law.

 

    -55-

     

    

 

16.16       Further Assurances. The Members each agree to cooperate, and to execute and deliver in a timely fashion any and all additional
documents necessary to effectuate the purposes of the Company and this Agreement.

 

16.17       No Partnership Intended for Non-Tax Purposes. The Members have formed the Company under the Delaware Act, and expressly disavow
any intention to form a partnership under any partnership act or laws of any state. The Members do not intend to be partners one to another
or partners as to any third party. To the extent any Member, by word or action, represents to another Person that any other Member is
a partner or that the Company is a partnership, the Member making such wrongful representation shall be liable to any other Member who
incurs personal liability by reason of such wrongful representation.

 

16.18       Certification of Non-Foreign Status. In order to comply with Section 1445 of the Code and the applicable Regulations thereunder
(as amended from time to time), in the event of the disposition by the Company of a United States real property interest as defined in
the Code and Regulations, each Member shall provide to the Company an affidavit stating, under penalties of perjury, (a) the Member's
address, (b) United States taxpayer identification number, (c) that the Member is not a foreign person as that term is defined in the
Code and Regulations and (d) that the Member is not a disregarded entity as defined in Section 1.1445-2(b)(2)(iii) of the Regulations.
Failure by any Member to provide such affidavit by the date of such disposition shall authorize the Administrative Member to withhold
the applicable percentage (currently 15%) of each such Member's distributive share of the amount realized by the Company on the disposition.

 

16.19       Entire Agreement. This Agreement, with reference to the Formation Agreement, contains the entire agreement between the parties
relating to the subject matter hereof, and all prior agreements relative hereto which are not contained herein or in the Formation Agreement
are terminated.

 

16.20       Fiduciary Duties. In accordance with and subject to Section 18-1101(c) of the Delaware Act, the Members hereby acknowledge and
agree that the provisions of this Agreement, to the extent they restrict or eliminate the duties (including fiduciary duties) and liabilities
relating thereto otherwise existing at law or in equity, replace completely and absolutely such other duties (including fiduciary duties)
and liabilities relating thereto and further acknowledge and agree that such provisions are fundamental elements to the agreement of
the Members to enter into this Agreement, and without such provisions the Members would not have entered into this Agreement.

 

16.21       Confidentiality.

 

(a)       The
Members acknowledge and agree that the Company is a private company. No Member shall disclose the terms of this Agreement to any other
Person without first obtaining the consent of each other Member. Each Member also agrees that it shall not disclose via public announcements,
press releases, interviews or otherwise, any financial statements or financial information, any business, financial or operational plans,
any financial or other analysis, or any summaries, strategies, pro formas, evaluations, agreements, plans, or projections of or pertaining
to the Company or any other proprietary information of the Company (defined to include all information not previously publicly disclosed
by the Company and/or by the Members) unless such Member first obtains the prior written consent of each other Member. Notwithstanding
the foregoing, the Administrative Member shall be entitled to disclose such information as may be reasonably be required to lenders or
prospective lenders in connection with any financing application and to prospective purchasers (and their lenders) of the Properties.

 

    -56-

     

    

 

(b)              
Any documents provided by one party to another party pursuant to this Agreement shall be kept confidential and shall not be disclosed
to any Person, except: (i) as may be required by applicable law or regulation; (ii) as may be required in connection with a Legal Proceeding;
(iii) as may be required or permitted under Section 16.21(a) above; or (iv) with the consent of the party that provided such documents
to the other party.

 

(c)              
Notwithstanding anything to the contrary contained herein: (i) the provisions of this Section 16.21 shall not apply to information
that is in the public domain or otherwise generally available to the public; and (ii) any Member may disclose the information described
in subsections (a) and (b) of this Section 16.21 as follows: (A) to such Member's direct and indirect owners, Affiliates, attorneys,
accountants, or other advisors so long as such Persons are informed by such Member of the confidential nature of such information and
are directed by such Member to treat such information confidentially; or (B) to the extent such Member reasonably deems necessary or
desirable pursuant to any court or governmental order, applicable securities or other laws or regulations, or financial reporting requirements.

 

16.22       Brokerage. Each Member hereby represents and warrants to the other and to the Company that, except as provided in the Formation
Agreement, it has not dealt with any broker, investment bank, or other intermediary and that no fee is owed to any of the foregoing in
connection with the formation of the Company or the agreements set forth in this Agreement. Each Member hereby agrees to indemnify the
other and the Company against, and agrees to hold one another and the Company harmless from, any liability or claim (and all expenses,
including attorneys' fees, incurred in defending any such claim or in enforcing this indemnity) for any other brokerage commission or
similar fee or compensation arising out of or in any way connected with any claimed dealings with the indemnitor and relating to the
formation of the Company or the conduct of the Company's Business.

 

16.23       Consent to Jurisdiction; Waiver of Jury Trial. Any action, suit, or proceeding in connection with this Agreement may be brought
against any Member or the Company in the United States District Court for the Southern District of New York, if it has or can acquire
jurisdiction, or if it does not or cannot acquire jurisdiction, then the courts of the State of New York in New York County, each Member
and the Company hereby consenting and submitting to the jurisdiction thereof, and service of process may be made upon any Member or the
Company, by certified or registered mail, at the address to be used for the giving of notice to such Member. In any action, suit, or
proceeding in connection with this Agreement, each Member and the Company hereby waives any claim that any court set forth in this Section
16.23 is an inconvenient forum. IN ADDITION, THE PARTIES SHALL, AND THEY HEREBY DO, WAIVE TRIAL BY JURY IN ANY LEGAL ACTION, PROCEEDING,
OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY MATTERS WHATSOEVER ARISING OUT OF, OR IN ANY WAY CONNECTED
WITH, THIS AGREEMENT OR THE RELATIONSHIP OF THE MEMBERS. THE FOREGOING WAIVER IS MADE KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY BY THE
PARTIES.

 

[THIS SPACE
INTENTIONALLY LEFT BLANK]

 

    -57-

     

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

 

	 	MEMBERS:
	 	 
	 	VEREIT REAL ESTATE, L.P., 

    a Delaware limited partnership
	 	 
	 	By: VEREIT Real Estate GP, LLC,
	 	   a
    Delaware limited liability company,
	 	   its
    General Partner
	 	 
	 	 	By:	/s/ Todd J. Weiss 
	 	 	Name: Todd J. Weiss
	 	 	Title: General Counsel, Real Estate
	 	 	 
	 	OAP HOLDINGS, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:
    OAP Investor Corp., 

    a Delaware corporation
	 	 
	 	 	By:	                                      
	 	 	Name:	 
	 	 	Title:	 

 

Signature
Page to Limited Liability Company Agreement of

OAP/VER VENTURE, LLC

 

    

     

    

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

 

	 	MEMBERS:
	 	 
	 	VEREIT REAL ESTATE, L.P., 

    a Delaware limited partnership
	 	 
	 	By: VEREIT Real Estate GP,
    LLC
	 	   a
    Delaware limited liability company
	 	   its
    General Partner
	 	 
	 	 	By:	/s/ Todd J. Weiss 
	 	 	Name: Todd J. Weiss
	 	 	Title: General Counsel, Real Estate
	 	 	 
	 	OAP HOLDINGS, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:
    OAP Investor Corp., 

    a Delaware corporation
	 	 
	 	 	By:	/s/ Khaled Al-Baijan
	 	 	Name:	Khaled Al-Baijan
	 	 	Title:	President

 

Signature
Page to Limited Liability Company Agreement of

OAP/VER Venture, LLC

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00334-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00334-of-00352.parquet"}]]