Document:

EX-4.11

 Exhibit 4.11 

DESCRIPTION OF REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934 

The following is a brief description of the securities of Spirit Realty Capital, Inc. registered pursuant to Section 12 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”). This description of the terms of our stock does not purport to be complete and is subject to and qualified in its entirety by reference to the applicable provisions of
Maryland General Corporation Law (“MGCL”), and the full text of our charter, including the articles supplementary setting forth the terms of the series A preferred stock, and bylaws, copies of which have been filed as exhibits to this
Annual Report on Form 10-K. As used in this “Description of Registrant’s Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934,” references to the
“Company,” “we,” “our” or “us” refer solely to Spirit Realty Capital, Inc. and not to any of its subsidiaries, unless otherwise expressly stated or the context otherwise requires. 

General 
 Our charter authorizes us to issue 175,000,000
shares of common stock, $0.05 par value per share, and 20,000,000 shares of preferred stock, $0.01 par value per share. Our board of directors has the power, without stockholder approval, to amend our charter to increase or decrease the aggregate
number of shares of stock or the number of shares of stock of any class or series we are authorized to issue. 
 As of December 31, 2019, there were
102,476,152 shares of our common stock issued and outstanding and 6,900,000 shares of our 6.000% series A cumulative redeemable preferred stock, $0.01 par value per share, issued and outstanding. 

Under Maryland law, our stockholders generally are not liable for our debts or obligations solely as a result of their status as stockholders. 

Description of Common Stock 
 Dividends 

Stockholders are entitled to receive dividends when, as and if authorized by our board of directors and declared by us out of assets legally available for the
payment of dividends. Stockholders are also entitled to share ratably in our assets legally available for distribution to our stockholders in the event of our liquidation, dissolution or winding up, after payment of, or adequate provision for, all
of our known debts and liabilities. These rights are subject to the preferential rights of any other class or series of our stock and to the provisions of our charter regarding restrictions on ownership and transfer of our stock. 

Voting 
 Subject to our charter restrictions on ownership
and transfer of our stock, each outstanding share of our common stock entitles the holder thereof to one vote on all matters submitted to a vote of stockholders, including the election of directors. Except as provided with respect to any other class
or series of stock, our common stockholders will possess exclusive voting power. Our bylaws provide for the election of directors, in uncontested elections, by a majority of the votes cast. In contested elections, the election of directors shall be
by a plurality of the votes cast. Cumulative voting in the election of directors is not permitted. This means that the holders of a majority of the outstanding shares of our common stock can effectively elect all of the directors then standing for
election, and the holders of the remaining shares will not be able to elect any directors. 
 Other Rights 

Our common stockholders have no preference, conversion, exchange, sinking fund, redemption or appraisal rights and have no preemptive rights to subscribe for
any of our capital stock. Our charter provides that our stockholders generally have no appraisal rights unless our board of directors determines prospectively that appraisal rights will apply to one or more transactions in which our common
stockholders would otherwise be entitled to exercise such rights. Subject to our charter restrictions on ownership and transfer of our stock, holders of shares of our common stock will initially have equal dividend, liquidation and other rights.

 Under Maryland law, a Maryland corporation generally cannot dissolve, amend its charter, merge, sell all or
substantially all of its assets, engage in a statutory share exchange or engage in similar transactions unless declared advisable by the board of directors and approved by the affirmative vote of stockholders entitled to cast at least two-thirds of all of the votes entitled to be cast on the matter unless a lesser percentage (but not less than a majority of the votes entitled to be cast on the matter) is set forth in the
corporation’s charter. Our charter provides for approval of these matters by the affirmative vote of stockholders entitled to cast a majority of the votes entitled to be cast on such matter, except that the affirmative vote of stockholders
holding at least two-thirds of the shares entitled to vote on such matter is required to amend the provisions of our charter relating to the removal of directors, which also requires two-thirds of all votes entitled to be cast on the matter, and to amend the provisions of our charter relating to the vote required to amend the removal provisions. Maryland law also permits a
corporation to transfer all or substantially all of its assets without the approval of its stockholders to an entity all of the equity interests of which are owned, directly or indirectly, by the corporation. Because our operating assets may be held
by our operating partnership or its wholly owned subsidiaries, these subsidiaries may be able to merge or transfer all or substantially all of their assets without the approval of our stockholders. 

Reclassification 
 Our charter authorizes our board of
directors to reclassify any unissued shares of our common stock into other classes or series of stock, to establish the designation and number of shares of each such class or series and to set, subject to the provisions of our charter regarding the
restrictions on ownership and transfer of our stock, the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of each such class
or series. Thus, our board of directors could authorize the issuance of shares of common stock or preferred stock with terms and conditions which could have the effect of delaying, deferring or preventing a transaction or a change in control that
might involve a premium price for our common stock or that our common stockholders otherwise believe to be in their best interests. 
 Transfer Agent and
Registrar 
 The transfer agent and registrar for shares of our common stock is American Stock Transfer & Trust Company, LLC. 

Listing 
 Our outstanding shares of common stock are
listed on the New York Stock Exchange under the symbol “SRC.” Any additional shares of common stock we issue will also be listed on the New York Stock Exchange upon official notice of issuance. 

Description of Preferred Stock 
 General

 Under the terms of our charter, our board of directors is authorized to classify any unissued shares of our preferred stock and to reclassify any
previously classified but unissued shares of preferred stock into other classes or series of stock. Before the issuance of shares of each class or series, our board of directors is required by Maryland law and by our charter to set, subject to our
charter restrictions on ownership and transfer of stock, the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption for
each class or series. 
 Series A Preferred Stock 

General 
 Our board of directors and a duly authorized
committee of our board of directors classified 6,900,000 shares of the company’s authorized but unissued preferred stock as, and approved articles supplementary setting forth the terms of, a series of the company’s preferred stock,
designated as the 6.000% series A cumulative redeemable preferred stock. Our board of directors may authorize the issuance and sale of additional shares of series A preferred stock from time to time. 

 Ranking 
 The
series A preferred stock ranks, with respect to dividend rights and rights upon voluntary or involuntary liquidation, dissolution or winding up of our affairs: 
  

	 	•	 	 senior to all classes or series of our common stock and to any other class or series of our capital stock
expressly designated as ranking junior to the series A preferred stock; 

  

	 	•	 	 on parity with any other class or series of our capital stock expressly designated as ranking on parity with the
series A preferred stock; and 

  

	 	•	 	 junior to any other class or series of our capital stock expressly designated as ranking senior to the series A
preferred stock, none of which exists on the date hereof. 

 The term “capital stock” does not include convertible or
exchangeable debt securities, which, prior to conversion or exchange, rank senior in right of payment to the series A preferred stock. The series A preferred stock also ranks junior in right of payment to our other existing and future debt
obligations. 
 Dividends 
 Subject to the preferential
rights of the holders of any class or series of our capital stock ranking senior to the series A preferred stock with respect to dividend rights, holders of shares of the series A preferred stock are entitled to receive, when, as and if authorized
by our board of directors and declared by us out of funds legally available for the payment of dividends, cumulative cash dividends at the rate of 6.000% per annum of the $25.00 liquidation preference per share of the series A preferred stock
(equivalent to the fixed annual amount of $1.50 per share of the series A preferred stock). 
 Dividends on the series A preferred stock accrue and are
cumulative from and including the date of original issue and are payable to holders quarterly in arrears on or about the last day of March, June, September and December of each year or, if such day is not a business day, on either the immediately
preceding business day or next succeeding business day at our option, except that, if such business day is in the next succeeding year, such payment shall be made on the immediately preceding business day, in each case with the same force and effect
as if made on such date. The term “business day” means each day, other than a Saturday or a Sunday, which is not a day on which banks in New York are required to close. 

The amount of any dividend payable on the series A preferred stock for any partial dividend period are prorated and computed on the basis of a 360-day year consisting of twelve 30-day months. A dividend period is the respective period commencing on and including the first day of January, April, July and October of
each year and ending on, and including, the last day of March, June, September and December (other than the initial dividend period and the dividend period during which any shares of series A preferred stock shall be redeemed). Dividends are payable
to holders of record as they appear in our stock records at the close of business on the applicable record date, which shall be the date designated by our board of directors as the record date for the payment of dividends that is not more than 35
and not fewer than 10 days prior to the scheduled dividend payment date. 
 Dividends on the series A preferred stock will accrue whether or not: 

 

	 	•	 	 we have earnings; 

  

	 	•	 	 there are funds legally available for the payment of those dividends; or 

 

	 	•	 	 those dividends are authorized or declared. 

 Except as described in the next two paragraphs, unless full cumulative dividends on the series A preferred stock
for all past dividend periods shall have been or contemporaneously are declared and paid in cash or declared and a sum sufficient for the payment thereof in cash is set apart for payment, we will not: 

 

	 	•	 	 declare and pay or declare and set aside for payment of dividends, and we will not declare and make any
distribution of cash or other property, directly or indirectly, on or with respect to any shares of our common stock or shares of any other class or series of our capital stock ranking, as to dividends, on parity with or junior to the series A
preferred stock, for any period; or 

  

	 	•	 	 redeem, purchase or otherwise acquire for any consideration, or make any other distribution of cash or other
property, directly or indirectly, on or with respect to, or pay or make available any monies for a sinking fund for the redemption of, any common stock or shares of any other class or series of our capital stock ranking, as to dividends and upon
liquidation, on parity with or junior to the series A preferred stock. 

 The foregoing sentence, however, will not prohibit: 

 

	 	•	 	 dividends payable solely in capital stock ranking junior to the series A preferred stock; 

 

	 	•	 	 the conversion into or exchange for other shares of any class or series of capital stock ranking junior to the
series A preferred stock; and 

  

	 	•	 	 our purchase of shares of series A preferred stock, preferred stock ranking on parity with the series A preferred
stock as to payment of dividends and upon liquidation, dissolution or winding up or capital stock or equity securities ranking junior to the series A preferred stock pursuant to our charter to the extent necessary to preserve our status as a REIT as
discussed under “Restrictions on Ownership and Transfer.” 

 When we do not pay dividends in full (and do not set apart a sum
sufficient to pay them in full) on the series A preferred stock and the shares of any other class or series of capital stock ranking, as to dividends, on parity with the series A preferred stock, we will declare any dividends upon the series A
preferred stock and each such other class or series of capital stock ranking, as to dividends, on parity with the series A preferred stock pro rata, so that the amount of dividends declared per share of series A preferred stock and such other class
or series of capital stock will in all cases bear to each other the same ratio that accrued dividends per share on the series A preferred stock and such other class or series of capital stock (which will not include any accrual in respect of unpaid
dividends on such other class or series of capital stock for prior dividend periods if such other class or series of capital stock does not have a cumulative dividend) bear to each other. No interest, or sum of money in lieu of interest, will be
payable in respect of any dividend payment or payments on the series A preferred stock which may be in arrears. 
 Holders of shares of series A preferred
stock are not entitled to any dividend, whether payable in cash, property or shares of capital stock, in excess of full cumulative dividends on the series A preferred stock as described above. Any dividend payment made on the series A preferred
stock will first be credited against the earliest accrued but unpaid dividends due with respect to those shares which remain payable. Accrued but unpaid dividends on the series A preferred stock will accumulate as of the dividend payment date on
which they first become payable. 
 We do not intend to declare dividends on the series A preferred stock, or pay or set apart for payment dividends on the
series A preferred stock, if the terms of any of our agreements, including any agreements relating to our indebtedness, prohibit such a declaration, payment or setting apart for payment or provide that such declaration, payment or setting apart for
payment would constitute a breach of or default under such an agreement. Likewise, no dividends will be authorized by our board of directors and declared by us or paid or set apart for payment if such authorization, declaration or payment is
restricted or prohibited by law. 
 Our revolving credit facility and term loan facility prohibit us from making distributions to our stockholders, or
redeeming or otherwise repurchasing shares of our capital stock, including the series A preferred stock, after the occurrence and during the continuance of an event of default, except in limited circumstances including as necessary to enable us to
maintain our qualification as a REIT and to avoid the payment of income or excise tax. Consequently, after the occurrence and during the continuance of an event of default under our revolving credit facility or term loan facility, we may not be able
to pay all or a portion of the dividends payable to the holders of the series A preferred stock or redeem all or a portion of the series A preferred stock. In addition, in the event of a 

 
default under our revolving credit facility or term loan facility, we would be unable to borrow under such facilities and any amounts we have borrowed thereunder could become immediately due and
payable. The agreements governing our future debt instruments may also include restrictions on our ability to pay dividends to holders or make redemptions of the series A preferred stock. 

Liquidation Preference 
 Upon any voluntary or involuntary
liquidation, dissolution or winding up of our affairs, before any distribution or payment shall be made to holders of shares of our common stock or any other class or series of capital stock ranking, as to rights upon any voluntary or involuntary
liquidation, dissolution or winding up of our affairs, junior to the series A preferred stock, holders of shares of series A preferred stock will be entitled to be paid out of our assets legally available for distribution to our stockholders, after
payment of or provision for our debts and other liabilities, a liquidation preference of $25.00 per share of series A preferred stock, plus an amount equal to any accrued and unpaid dividends (whether or not authorized or declared) up to but
excluding the date of payment. If, upon our voluntary or involuntary liquidation, dissolution or winding up, our available assets are insufficient to pay the full amount of the liquidating distributions on all outstanding shares of series A
preferred stock and the corresponding amounts payable on all shares of each other class or series of capital stock ranking, as to rights upon liquidation, dissolution or winding up, on parity with the series A preferred stock in the distribution of
assets, then holders of shares of series A preferred stock and each such other class or series of capital stock ranking, as to rights upon any voluntary or involuntary liquidation, dissolution or winding up, on parity with the series A preferred
stock will share ratably in any distribution of assets in proportion to the full liquidating distributions to which they would otherwise be respectively entitled. 

Holders of shares of series A preferred stock will be entitled to written notice of any distribution in connection with any voluntary or involuntary
liquidation, dissolution or winding up of our affairs not less than 30 days and not more than 60 days prior to the distribution payment date. After payment of the full amount of the liquidating distributions to which they are entitled, holders of
shares of series A preferred stock will have no right or claim to any of our remaining assets. Our consolidation or merger with or into any other corporation, trust or other entity, or the voluntary sale, lease, transfer or conveyance of all or
substantially all of our property or business, will not be deemed to constitute a liquidation, dissolution or winding up of our affairs. 
 In determining
whether a distribution (other than upon voluntary or involuntary liquidation), by dividend, redemption or other acquisition of shares of our capital stock or otherwise, is permitted under Maryland law, amounts that would be needed, if we were to be
dissolved at the time of the distribution, to satisfy the preferential rights upon dissolution of holders of shares of series A preferred stock will not be added to our total liabilities. 

Optional Redemption 
 Except with respect to the special
optional redemption described below and in certain limited circumstances relating to our maintenance of our ability to qualify as a REIT as described below in “Restrictions on Ownership and Transfer,” we cannot redeem the series A
preferred stock prior to October 3, 2022. On and after October 3, 2022, we may, at our option, upon not fewer than 30 and not more than 60 days’ written notice, redeem the series A preferred stock, in whole or in part, at any time or
from time to time, for cash at a redemption price of $25.00 per share, plus all accrued and unpaid dividends (whether or not authorized or declared) up to but excluding the date fixed for redemption, without interest, to the extent we have funds
legally available for that purpose. 
 If fewer than all of the outstanding shares of the series A preferred stock are to be redeemed, we will select the
shares of series A preferred stock to be redeemed pro rata (as nearly as may be practicable without creating fractional shares) or by lot as we determine. If such redemption is to be by lot and, as a result of such redemption, any holder of shares
of series A preferred stock, other than a holder of series A preferred stock that has received an exemption from the ownership limit, would have actual or constructive ownership of more than 9.8% of the issued and outstanding shares of series A
preferred stock in value or number of shares, whichever is more restrictive, or more than 9.8% in value of the aggregate outstanding shares of capital stock because such holder’s shares of series A preferred stock were not redeemed, or were
only redeemed in part, then, except as otherwise provided in the charter, we will redeem the requisite number of shares of series A preferred stock of such holder such that no holder will own in excess of the 9.8% series A preferred stock ownership
limit or the 9.8% capital stock ownership limit subsequent to such redemption. See “Restrictions on Ownership and Transfer” below. In order for their shares of 

 
series A preferred stock to be redeemed, holders must surrender their shares at the place, or in accordance with the book-entry procedures, designated in the notice of redemption. Holders will
then be entitled to the redemption price and any accrued and unpaid dividends payable upon redemption following surrender of the shares as detailed below. If a notice of redemption has been given (in the case of a redemption of the series A
preferred stock other than to preserve our status as a REIT), if the funds necessary for the redemption have been set aside by us in trust for the benefit of the holders of any shares of series A preferred stock called for redemption and if
irrevocable instructions have been given to pay the redemption price and all accrued and unpaid dividends, then from and after the redemption date, dividends will cease to accrue on such shares of series A preferred stock and such shares of
series A preferred stock will no longer be deemed outstanding. At such time, all rights of the holders of such shares will terminate, except the right to receive the redemption price plus any accrued and unpaid dividends payable upon redemption,
without interest. So long as no dividends are in arrears and subject to the provisions of applicable law, we may from time to time repurchase all or any part of the series A preferred stock, including the repurchase of shares of series A preferred
stock in open-market transactions and individual purchases at such prices as we negotiate, in each case as duly authorized by our board of directors. 

Unless full cumulative dividends on all shares of series A preferred stock have been or contemporaneously are authorized, declared and paid or declared and a
sum sufficient for the payment thereof set apart for payment for all past dividend periods, no shares of series A preferred stock will be redeemed unless all outstanding shares of series A preferred stock are simultaneously redeemed and we will not
purchase or otherwise acquire directly or indirectly any shares of series A preferred stock or any class or series of our capital stock ranking, as to dividends or upon liquidation, dissolution or winding up, on parity with or junior to the series A
preferred stock (except by exchange for our capital stock ranking junior to the series A preferred stock as to dividends and upon liquidation); provided, however, that whether or not the requirements set forth above have been met, we may purchase
shares of series A preferred stock, preferred stock ranking on parity with the series A preferred stock as to payment of dividends and upon liquidation, dissolution or winding up or capital stock or equity securities ranking junior to the series A
preferred stock pursuant to our charter to the extent necessary to ensure that we continue to meet the requirements for qualification as a REIT for federal income tax purposes, and may purchase or acquire shares of series A preferred stock pursuant
to a purchase or exchange offer made on the same terms to holders of all outstanding shares of series A preferred stock. See “Restrictions on Ownership and Transfer” below. 

We will mail notice of redemption, postage prepaid, not less than 30 nor more than 60 days prior to the redemption date, addressed to the respective holders
of record of the series A preferred stock to be redeemed at their respective addresses as they appear on our stock transfer records as maintained by the transfer agent named below in “Description of Preferred Stock—Series A Preferred
Stock—Transfer Agent”. No failure to give such notice or any defect therein or in the mailing thereof will affect the validity of the proceedings for the redemption of any shares of series A preferred stock except as to the holder to whom
notice was defective or not given. In addition to any information required by law or by the applicable rules of any exchange upon which the series A preferred stock may be listed or admitted to trading, each notice will state: 

 

	 	•	 	 the redemption date; 

  

	 	•	 	 the redemption price; 

  

	 	•	 	 the number of shares of series A preferred stock to be redeemed; 

 

	 	•	 	 the place or places where the certificates, if any, representing shares of series A preferred stock are to be
surrendered for payment of the redemption price; 

  

	 	•	 	 procedures for surrendering noncertificated shares of series A preferred stock for payment of the redemption
price; 

  

	 	•	 	 that dividends on the shares of series A preferred stock to be redeemed will cease to accumulate on such
redemption date; and 

  

	 	•	 	 that payment of the redemption price and any accumulated and unpaid dividends will be made upon presentation and
surrender of such series A preferred stock. 

 If fewer than all of the shares of series A preferred stock held by any holder are to be redeemed, the notice
mailed to such holder will also specify the number of shares of series A preferred stock held by such holder to be redeemed. 
 We are not required to
provide such notice in the event we redeem series A preferred stock in order to maintain our status as a REIT. 
 If a redemption date falls after a
dividend record date and on or prior to the corresponding dividend payment date, each holder of shares of the series A preferred stock at the close of business of such dividend record date will be entitled to the dividend payable on such shares on
the corresponding dividend payment date notwithstanding the redemption of such shares on or prior to such dividend payment date and each holder of shares of series A preferred stock that surrenders such shares on such redemption date will be
entitled to the dividends accruing after the end of the applicable dividend period, up to but excluding the redemption date. Except as described above, we will make no payment or allowance for unpaid dividends, whether or not in arrears, on series A
preferred stock for which a notice of redemption has been given. 
 All shares of series A preferred stock that we redeem or repurchase will be retired and
restored to the status of authorized but unissued shares of preferred stock, without designation as to series or class. 
 Our revolving credit facility and
term loan facility prohibit us from redeeming or otherwise repurchasing any shares of our capital stock, including the series A preferred stock, after the occurrence and during the continuance of an event of default, except in limited circumstances.

 Special Optional Redemption 
 Upon the occurrence of
a Change of Control (as defined below), we may, at our option, redeem the series A preferred stock, in whole or in part within 120 days after the first date on which such Change of Control occurred, by paying $25.00 per share, plus any accrued and
unpaid dividends to, but not including, the date of redemption. If, prior to the Change of Control Conversion Date, we have provided or provide notice of redemption with respect to the series A preferred stock (whether pursuant to our optional
redemption right or our special optional redemption right), the holders of series A preferred stock will not have the conversion right described below under “Description of Preferred Stock—Series A Preferred Stock —Conversion
Rights”. 
 We will mail to you, if you are a record holder of the series A preferred stock, a notice of redemption no fewer than 30 days nor more than
60 days before the redemption date. We will send the notice to your address shown on our share transfer books. A failure to give notice of redemption or any defect in the notice or in its mailing will not affect the validity of the redemption of any
series A preferred stock except as to the holder to whom notice was defective. Each notice will state the following: 
  

	 	•	 	 the redemption date; 

  

	 	•	 	 the redemption price; 

  

	 	•	 	 the number of shares of series A preferred stock to be redeemed; 

 

	 	•	 	 the place or places where the certificates, if any, representing shares of series A preferred stock are to be
surrendered for payment of the redemption price; 

  

	 	•	 	 procedures for surrendering noncertificated shares of series A preferred stock for payment of the redemption
price; 

  

	 	•	 	 that dividends on the shares of series A preferred stock to be redeemed will cease to accumulate on such
redemption date; 

  

	 	•	 	 that payment of the redemption price and any accumulated and unpaid dividends will be made upon presentation and
surrender of such series A preferred stock; 

	 	•	 	 that the series A preferred stock is being redeemed pursuant to our special optional redemption right in
connection with the occurrence of a Change of Control and a brief description of the transaction or transactions constituting such Change of Control; and 

  

	 	•	 	 that the holders of the series A preferred stock to which the notice relates will not be able to tender such
series A preferred stock for conversion in connection with the Change of Control and each share of series A preferred stock tendered for conversion that is selected, prior to the Change of Control Conversion Date, for redemption will be redeemed on
the related date of redemption instead of converted on the Change of Control Conversion Date. 

 If we redeem fewer than all of the
outstanding shares of series A preferred stock, the notice of redemption mailed to each stockholder will also specify the number of shares of series A preferred stock that we will redeem from each stockholder. In this case, we will determine the
number of shares of series A preferred stock to be redeemed as described above in “Description of Preferred Stock—Series A Preferred Stock —Optional Redemption”. 

If we have given a notice of redemption and have set aside sufficient funds for the redemption in trust for the benefit of the holders of the series A
preferred stock called for redemption, then from and after the redemption date, those shares of series A preferred stock will be treated as no longer being outstanding, no further dividends will accrue and all other rights of the holders of those
shares of series A preferred stock will terminate. The holders of those shares of series A preferred stock will retain their right to receive the redemption price for their shares and any accrued and unpaid dividends through, but not including, the
redemption date, without interest. 
 The holders of series A preferred stock at the close of business on a dividend record date will be entitled to receive
the dividend payable with respect to the series A preferred stock on the corresponding payment date notwithstanding the redemption of the series A preferred stock between such record date and the corresponding payment date or our default in the
payment of the dividend due. Except as provided above, we will make no payment or allowance for unpaid dividends, whether or not in arrears, on series A preferred stock to be redeemed. 

A “Change of Control” is when the following have occurred and are continuing: 

 

	 	•	 	 the acquisition by any person, including any syndicate or group deemed to be a “person” under
Section 13(d)(3) of the Exchange Act, of beneficial ownership, directly or indirectly, through a purchase, merger or other acquisition transaction or series of purchases, mergers or other acquisition transactions of stock of our company
entitling that person to exercise more than 50% of the total voting power of all stock of our company entitled to vote generally in the election of our directors (except that such person will be deemed to have beneficial ownership of all securities
that such person has the right to acquire, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition); and 

 

	 	•	 	 following the closing of any transaction referred to in the bullet point above, neither we nor the acquiring or
surviving entity has a class of common securities (or ADRs representing such securities) listed on the NYSE, the NYSE American or NASDAQ or listed or quoted on an exchange or quotation system that is a successor to the NYSE, the NYSE American or
NASDAQ. 

 Conversion Rights 
 Upon
the occurrence of a Change of Control, each holder of series A preferred stock will have the right, unless, prior to the Change of Control Conversion Date, we have provided or provide notice of our election to redeem the series A preferred stock as
described above under “Description of Preferred Stock—Series A Preferred Stock —Optional Redemption” or “Description of Preferred Stock—Series A Preferred Stock —Special Optional Redemption,” to convert some
or all of the series A preferred stock held by such holder (the “Change of Control Conversion Right”) on the Change of Control Conversion Date into a number of shares of our common stock per share of series A preferred stock (the
“Common Stock Conversion Consideration”), which is equal to the lesser of: 
  

	 	•	 	 the quotient obtained by dividing (i) the sum of the $25.00 liquidation preference plus the amount of any
accrued and unpaid dividends to, but not including, the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a record date for a series A preferred stock dividend payment

	 	 
and prior to the corresponding series A preferred stock dividend payment date, in which case no additional amount for such accrued and unpaid dividend will be included in this sum) by
(ii) the Common Stock Price (such quotient, the “Conversion Rate”); and 

  

	 	•	 	 1.18624 (i.e., the Share Cap). 

The Share Cap is subject to pro rata adjustments for any share splits (including those effected pursuant to a distribution of our common stock), subdivisions
or combinations (in each case, a “Share Split”) with respect to our common stock as follows: the adjusted Share Cap as the result of a Share Split will be the number of shares of our common stock that is equivalent to the product obtained
by multiplying (i) the Share Cap in effect immediately prior to such Share Split by (ii) a fraction, the numerator of which is the number of shares of our common stock outstanding after giving effect to such Share Split and the denominator
of which is the number of shares of our common stock outstanding immediately prior to such Share Split. 
 For the avoidance of doubt, subject to the
immediately succeeding sentence, the aggregate number of shares of our common stock (or equivalent Alternative Conversion Consideration (as defined below), as applicable) issuable in connection with the exercise of the Change of Control Conversion
Right will not exceed 8,185,056 shares of common stock (or equivalent Alternative Conversion Consideration, as applicable) (the “Exchange Cap”). The Exchange Cap is subject to pro rata adjustments for any Share Splits on the same
basis as the corresponding adjustments to the Share Cap and is subject to increase in the event that additional shares of series A preferred stock are issued in the future. 

In the case of a Change of Control pursuant to which our common stock will be converted into cash, securities or other property or assets (including any
combination thereof) (the “Alternative Form Consideration”), a holder of series A preferred stock will receive upon conversion of such series A preferred stock the kind and amount of Alternative Form Consideration which such holder would
have owned or been entitled to receive upon the Change of Control had such holder held a number of shares of our common stock equal to the Common Stock Conversion Consideration immediately prior to the effective time of the Change of Control (the
“Alternative Conversion Consideration,” and the Common Stock Conversion Consideration or the Alternative Conversion Consideration, as may be applicable to a Change of Control, is referred to as the “Conversion Consideration”).

 If the holders of our common stock have the opportunity to elect the form of consideration to be received in the Change of Control, the Conversion
Consideration will be deemed to be the kind and amount of consideration actually received by holders of a majority of our common stock that voted for such an election (if electing between two types of consideration) or holders of a plurality of our
common stock that voted for such an election (if electing between more than two types of consideration), as the case may be, and will be subject to any limitations to which all holders of our common stock are subject, including, without limitation,
pro rata reductions applicable to any portion of the consideration payable in the Change of Control. 
 We will not issue fractional shares of common stock
upon the conversion of the series A preferred stock. Instead, we will pay the cash value of such fractional shares. 
 Within 15 days following the
occurrence of a Change of Control, we will provide to holders of series A preferred stock a notice of occurrence of the Change of Control that describes the resulting Change of Control Conversion Right. This notice will state the following: 

 

	 	•	 	 the events constituting the Change of Control; 

 

	 	•	 	 the date of the Change of Control; 

 

	 	•	 	 the last date on which the holders of series A preferred stock may exercise their Change of Control Conversion
Right; 

  

	 	•	 	 the method and period for calculating the Common Stock Price; 

 

	 	•	 	 the Change of Control Conversion Date; 

	 	•	 	 that if, prior to the Change of Control Conversion Date, we have provided or provide notice of our election to
redeem all or any portion of the series A preferred stock, holders will not be able to convert shares of series A preferred stock designated for redemption and such shares will be redeemed on the related redemption date, even if such shares have
already been tendered for conversion pursuant to the Change of Control Conversion Right; 

  

	 	•	 	 if applicable, the type and amount of Alternative Conversion Consideration entitled to be received per share of
series A preferred stock; 

  

	 	•	 	 the name and address of the paying agent and the conversion agent; and 

 

	 	•	 	 the procedures that the holders of series A preferred stock must follow to exercise the Change of Control
Conversion Right. 

 We will issue a press release for publication on the Dow Jones & Company, Inc., Business Wire, PR Newswire
or Bloomberg Business News (or, if these organizations are not in existence at the time of issuance of the press release, such other news or press organization as is reasonably calculated to broadly disseminate the relevant information to the
public), or post a notice on our website, in any event prior to the opening of business on the first business day following any date on which we provide the notice described above to the holders of series A preferred stock. 

To exercise the Change of Control Conversion Right, the holders of series A preferred stock will be required to deliver, on or before the close of business on
the Change of Control Conversion Date, the certificates (if any) representing series A preferred stock to be converted, duly endorsed for transfer, together with a written conversion notice completed, to our transfer agent. The conversion notice
must state: 
  

	 	•	 	 the relevant Change of Control Conversion Date; 

 

	 	•	 	 the number of shares of series A preferred stock to be converted; and 

 

	 	•	 	 that the series A preferred stock is to be converted pursuant to the applicable provisions of the series A
preferred stock. 

 The “Change of Control Conversion Date” is the date the series A preferred stock is to be converted, which
will be a business day that is no fewer than 20 days nor more than 35 days after the date on which we provide the notice described above to the holders of series A preferred stock. 

The “Common Stock Price” will be (i) if the consideration to be received in the Change of Control by the holders of our common stock is solely
cash, the amount of cash consideration per share of our common stock or (ii) if the consideration to be received in the Change of Control by holders of our common stock is other than solely cash (x) the average of the closing sale prices
per share of our common stock (or, if no closing sale price is reported, the average of the closing bid and ask prices or, if more than one in either case, the average of the average closing bid and the average closing ask prices) for the ten
consecutive trading days immediately preceding, but not including, the effective date of the Change of Control as reported on the principal U.S. securities exchange on which our common stock is then traded, or (y) the average of the last quoted
bid prices for our common stock in the over-the-counter market as reported by OTC Markets Group Inc. or similar organization for the ten consecutive trading days
immediately preceding, but not including, the effective date of the Change of Control, if our common stock is not then listed for trading on a U.S. securities exchange. 

Holders of series A preferred stock may withdraw any notice of exercise of a Change of Control Conversion Right (in whole or in part) by a written notice of
withdrawal delivered to our transfer agent prior to the close of 
 business on the business day prior to the Change of Control Conversion Date. The notice
of withdrawal must state: 
  

	 	•	 	 the number of withdrawn shares of series A preferred stock; 

 

	 	•	 	 if certificated series A preferred stock has been issued, the certificate numbers of the withdrawn shares of
series A preferred stock; and 

	 	•	 	 the number of shares of series A preferred stock, if any, which remain subject to the conversion notice.

 Notwithstanding the foregoing, if the series A preferred stock is held in global form, the conversion notice and/or the notice of
withdrawal, as applicable, must comply with applicable procedures of The Depository Trust Company (“DTC”). 
 The series A preferred stock as to
which the Change of Control Conversion Right has been properly exercised and for which the conversion notice has not been properly withdrawn will be converted into the applicable Conversion Consideration in accordance with the Change of Control
Conversion Right on the Change of Control Conversion Date, unless prior to the Change of Control Conversion Date we have provided or provide notice of our election to redeem such series A preferred stock, whether pursuant to our optional redemption
right or our special optional redemption right. If we elect to redeem series A preferred stock that would otherwise be converted into the applicable Conversion Consideration on a Change of Control Conversion Date, such series A preferred stock will
not be so converted and the holders of such shares will be entitled to receive on the applicable redemption date $25.00 per share, plus any accrued and unpaid dividends thereon to, but not including, the redemption date, in accordance with our
optional redemption right or special optional redemption right. See “Description of Preferred Stock—Series A Preferred Stock —Optional Redemption” and “Description of Preferred Stock—Series A Preferred Stock
—Special Optional Redemption” above. 
 We will deliver amounts owing upon conversion no later than the third business day following the Change of
Control Conversion Date. 
 In connection with the exercise of any Change of Control Conversion Right, we will comply with all federal and state securities
laws and stock exchange rules in connection with any conversion of series A preferred stock into shares of our common stock. Notwithstanding any other provision of the series A preferred stock, no holder of series A preferred stock will be entitled
to convert such series A preferred stock into shares of our common stock to the extent that receipt of such common stock would cause such holder (or any other person) to exceed the share ownership limits contained in our charter, including the
articles supplementary setting forth the terms of the series A preferred stock, unless we provide an exemption from this limitation for such holder. See “Restrictions on Ownership and Transfer” below. 

The Change of Control conversion feature may make it more difficult for a party to take over our company or discourage a party from taking over our company.

 Except as provided above in connection with a Change of Control, the series A preferred stock is not convertible into or exchangeable for any other
securities or property. 
 No Maturity, Sinking Fund or Mandatory Redemption 

The series A preferred stock has no maturity date and we are not required to redeem the series A preferred stock at any time. Accordingly, the series A
preferred stock will remain outstanding indefinitely, unless we decide, at our option, to exercise our redemption right or, under circumstances where the holders of the series A preferred stock have a conversion right, such holders convert the
series A preferred stock into our common stock. The series A preferred stock is not subject to any sinking fund. 
 Limited Voting Rights 

Holders of shares of the series A preferred stock do not have any voting rights, except as set forth in the articles supplementary setting forth the terms of
the Series A preferred stock. 
 If dividends on the series A preferred stock are in arrears for six or more quarterly periods, whether or not consecutive
(which we refer to as a preferred dividend default), holders of shares of the series A preferred stock (voting separately as a class together with the holders of all other classes or series of preferred stock upon which like voting rights have been
conferred and are exercisable) will be entitled to vote for the election of two additional directors to serve on our board of directors (which we refer to as preferred stock directors), until all unpaid dividends for past dividend periods with
respect to the series A preferred stock and any other class or series of preferred stock upon which like voting rights have been conferred and are exercisable have been paid. In such a 

 
case, the number of directors serving on our board of directors will be increased by two. The preferred stock directors will be elected by a plurality of the votes cast in the election for a one-year term and each preferred stock director will serve until his successor is duly elected and qualifies or until the director’s right to hold the office terminates, whichever occurs earlier. The election
will take place at: 
  

	 	•	 	 a special meeting called upon the written request of holders of at least 10% of the outstanding shares of series
A preferred stock together with any other class or series of preferred stock upon which like voting rights have been conferred and are exercisable, if this request is received more than 90 days before the date fixed for our next annual or special
meeting of stockholders or, if we receive the request for a special meeting within 90 days before the date fixed for our next annual or special meeting of stockholders, at our annual or special meeting of stockholders; and 

 

	 	•	 	 each subsequent annual meeting (or special meeting held in its place) until all dividends accumulated on the
series A preferred stock and on any other class or series of preferred stock upon which like voting rights have been conferred and are exercisable have been paid in full for all past dividend periods. 

If and when all accumulated dividends on the series A preferred stock and all other classes or series of preferred stock upon which like voting rights have
been conferred and are exercisable shall have been paid in full, holders of shares of series A preferred stock shall be divested of the voting rights set forth above (subject to re-vesting in the event of each
and every preferred dividend default) and the term and office of such preferred stock directors so elected will terminate and the entire board of directors will be reduced accordingly. 

Any preferred stock director elected by holders of shares of series A preferred stock and other holders of preferred stock upon which like voting rights have
been conferred and are exercisable may be removed at any time with or without cause by the vote of, and may not be removed otherwise than by the vote of, the holders of record of a majority of the outstanding shares of series A preferred stock and
other parity preferred stock entitled to vote thereon when they have the voting rights described above (voting as a single class). So long as a preferred dividend default continues, any vacancy in the office of a preferred stock director may be
filled by written consent of the preferred stock director remaining in office, or if none remains in office, by a vote of the holders of record of a majority of the outstanding shares of series A preferred stock when they have the voting rights
described above (voting as a single class with all other classes or series of preferred stock upon which like voting rights have been conferred and are exercisable). The preferred stock directors shall each be entitled to one vote on any matter.

 In addition, so long as any shares of series A preferred stock remain outstanding, we will not, without the consent or the affirmative vote of the
holders of at least two-thirds of the outstanding shares of series A preferred stock together with each other class or series of preferred stock ranking on parity with series A preferred stock with respect to
the payment of dividends and the distribution of assets upon our liquidation, dissolution or winding up and upon which like voting rights have been conferred and are exercisable (voting together as a single class): 

 

	 	•	 	 authorize, create or issue, or increase the number of authorized or issued shares of, any class or series of
stock ranking senior to such series A preferred stock with respect to payment of dividends, or the distribution of assets upon our liquidation, dissolution or winding up, or reclassify any of our authorized capital stock into any such shares, or
create, authorize or issue any obligation or security convertible into or evidencing the right to purchase any such shares; or 

  

	 	•	 	 amend, alter or repeal the provisions of our charter, including the terms of the series A preferred stock,
whether by merger, consolidation, transfer or conveyance of substantially all of the company’s assets or otherwise, so as to materially and adversely affect any right, preference, privilege or voting power of the series A preferred stock,

 except that with respect to the occurrence of any of the events described in the second bullet point immediately above, so long as the
series A preferred stock remains outstanding with the terms of the series A preferred stock materially unchanged, taking into account that, upon the occurrence of an event described in the second bullet point above, the company may not be the
surviving entity, the occurrence of such event will not be deemed to materially and adversely affect the rights, preferences, privileges or voting power of the series A preferred stock, and in such case such holders shall not have any voting rights
with respect to the events described in the second bullet point immediately above. Furthermore, if holders of shares of the series A preferred stock receive the greater of the full 

 
trading price of the series A preferred stock on the date of an event described in the second bullet point immediately above or the $25.00 per share liquidation preference pursuant to the
occurrence of any of the events described in the second bullet point immediately above, then such holders shall not have any voting rights with respect to the events described in the second bullet point immediately above. If any event described in
the second bullet point above would materially and adversely affect the rights, preferences, privileges or voting powers of the series A preferred stock disproportionately relative to other classes or series of preferred stock ranking on parity with
the series A preferred stock with respect to the payment of dividends and the distribution of assets upon our liquidation, dissolution or winding up, the affirmative vote of the holders of at least two-thirds
of the outstanding shares of the series A preferred stock, voting separately as a class, will also be required. 
 Holders of shares of series A preferred
stock are not entitled to vote with respect to any increase in the total number of authorized shares of our common stock or preferred stock, any increase in the number of authorized shares of series A preferred stock or the creation or issuance of
any other class or series of capital stock, or any increase in the number of authorized shares of any other class or series of capital stock, in each case ranking on parity with or junior to the series A preferred stock with respect to the payment
of dividends and the distribution of assets upon liquidation, dissolution or winding up. 
 Holders of shares of series A preferred stock do not have any
voting rights with respect to, and the consent of the holders of shares of series A preferred stock is not required for, the taking of any corporate action, including any merger or consolidation involving us or a sale of all or substantially all of
our assets, regardless of the effect that such merger, consolidation or sale may have upon the powers, preferences, voting power or other rights or privileges of the series A preferred stock, except as set forth above. 

In addition, the voting provisions above will not apply if, at or prior to the time when the act with respect to which the vote would otherwise be required
would occur, we have redeemed or called for redemption upon proper procedures all outstanding shares of series A preferred stock. 
 In any matter in which
series A preferred stock may vote (as expressly provided in the articles supplementary setting forth the terms of the series A preferred stock), each share of series A preferred stock shall be entitled to one vote per $25.00 of liquidation
preference. As a result, each share of series A preferred stock will be entitled to one vote. 
 Provision of Financial Information 

Whether or not we are subject to Section 13 or 15(d) of the Exchange Act, we will, to the extent permitted under the Exchange Act, file with the SEC the
annual reports, quarterly reports and other documents that we would have been required to file with the SEC pursuant to such Section 13 or 15(d) if we were so subject, such documents to be filed with the SEC on or prior to the respective dates
(the “Required Filing Dates”) by which we would have been required so to file such documents if we were so subject. 
 We will also in any event
(1) within 15 days of each Required Filing Date transmit by mail or electronic transmittal to all holders, as their names and addresses appear in the security register, without cost to such holders, copies of the annual reports, quarterly
reports and other documents that we are required to file or would have been required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act if we were subject to such sections, provided that the foregoing transmittal
requirement will be deemed satisfied if the foregoing reports and documents are available on the SEC’s EDGAR system or on our website within the applicable time period specified above, and (2) if filing such documents with the SEC is not
permitted under the Exchange Act, promptly upon written request and payment of the reasonable cost of duplication and delivery, supply copies of such documents to any prospective holder. 

Restrictions on Ownership and Transfer 
 The articles
supplementary for the series A preferred stock contain, and the series A preferred stock is subject to, restrictions on ownership and transfer that are substantially similar to those described under the heading “Restrictions on Ownership and
Transfer” below. The articles supplementary for the series A preferred stock provide that, subject to certain exceptions, no person or entity may actually or beneficially own, or be deemed to own by virtue of the applicable constructive
ownership provisions of the Code, more than 9.8% (in value or number of shares, whichever is more restrictive) of the outstanding shares of our series A preferred stock or more than 9.8% (in value) of the aggregate of the outstanding shares of all
classes and series of our capital stock. As described under 

 
the heading “Restrictions on Ownership and Transfer” below, shares of Series A preferred stock owned by a stockholder in excess of the applicable ownership limit will be transferred to
a charitable trust and may be purchased by us under certain circumstances. In certain circumstances, our board of directors may exempt a person from the applicable ownership limit or create an excepted holder limit for such person, as described
under the heading “Restrictions on Ownership and Transfer” below. 
 Notwithstanding anything to the contrary contained in the articles
supplementary for the series A preferred stock, no holder of shares of series A preferred stock is entitled to convert any shares of series A preferred stock into shares of our common stock to the extent that receipt of such shares of our common
stock would cause such holder (or any other person) to exceed the ownership limits contained in our charter, including, without limitation, the articles supplementary for the series A preferred stock. 

The restrictions on ownership and transfer described above and under the heading “Restrictions on Ownership and Transfer” below could delay, defer
or prevent a transaction or a change of control of our company that might involve a premium price for our capital stock that our stockholders believe to be in their best interest. 

Transfer Agent 
 The transfer agent and registrar for the
series A preferred stock is American Stock Transfer & Trust Company, LLC. 
 Listing 

Our outstanding shares of series A preferred stock are listed on the New York Stock Exchange under the symbol
“SRC-A.” 
 Book-Entry Procedures 

The series A preferred stock have only been issued in the form of global securities held in book-entry form. DTC or its nominee is the sole registered holder
of the series A preferred stock. Owners of beneficial interests in the series A preferred stock represented by the global securities hold their interests pursuant to the procedures and practices of DTC. As a result, beneficial interests in any such
securities are shown on, and transfers are effected only through, records maintained by DTC and its direct and indirect participants and any such interest may not be exchanged for certificated securities, except in limited circumstances. Owners of
beneficial interests must exercise any rights in respect of other interests, including any right to convert or require repurchase of their interests in the series A preferred stock, in accordance with the procedures and practices of DTC. Beneficial
owners are not holders and are not entitled to any rights provided to the holders of the series A preferred stock under the global securities or the articles supplementary. We and any of our agents may treat DTC as the sole holder and registered
owner of the global securities. 
 DTC has advised us as follows: DTC is a limited-purpose trust company organized under the New York Banking Law, a
“banking organization” within the meaning of the New York Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A of the Exchange Act. DTC facilitates the settlement of
transactions amongst participants through electronic computerized book-entry changes in participants’ accounts, eliminating the need for physical movement of securities certificates. DTC’s participants include securities brokers and
dealers, including the underwriters, banks, trust companies, clearing corporations and other organizations, some of whom and/or their representatives own DTC. Access to DTC’s book-entry system is also available to others, such as banks,
brokers, dealers and trust companies that clear through or maintain a custodial relationship with a participant, either directly or indirectly. 
 The
series A preferred stock, represented by one or more global securities, is exchangeable for certificated securities with the same terms only if: 
  

	 	•	 	 DTC is unwilling or unable to continue as depositary or if DTC ceases to be a clearing agency registered under
the Exchange Act and a successor depositary is not appointed by us within 90 days; or 

  

	 	•	 	 we decide to discontinue use of the system of book-entry transfer through DTC (or any successor depositary).

 Power to Issue Additional Shares of Common Stock and Preferred Stock 

We believe that the power to issue additional shares of our common stock or preferred stock and to classify or reclassify unissued shares of our common stock
or preferred stock and to issue the classified or reclassified shares provides us with increased flexibility in structuring possible future financings and acquisitions and in meeting other needs which might arise. These actions can be taken without
action by our stockholders, unless stockholder approval is required by applicable law or the rules of any stock exchange or automated quotation system on which our stock may be listed or traded. Although we have no present intention of doing so, we
could issue a class or series of stock that could delay, defer or prevent a transaction or a change in control of our company that might involve a premium price for our common stock or that our common stockholders otherwise believe to be in their
best interest. In addition, our issuance of additional shares of stock in the future could dilute the voting and other rights of your shares. See “Certain Provisions of Maryland Law and of Our Charter and Bylaws—Anti-takeover Effect of
Certain Provisions of Maryland Law and of Our Charter and Bylaws” below. 
 Meetings and Special Voting Requirements 

An annual meeting of our stockholders will be held each year on the date and at the time and place set by our board of directors. Special meetings of
stockholders may be called by our board of directors, the chairman of our board of directors, our president or our chief executive officer. Additionally, subject to the provisions of our bylaws, special meetings of the stockholders must be called by
our secretary upon the written request of stockholders entitled to cast not less than a majority of the votes entitled to be cast at such meeting who have requested the special meeting in accordance with the procedures set forth in, and provided the
information and certifications required by, our bylaws. The presence at a meeting, either in person or by proxy, of stockholders entitled to cast a majority of all the votes entitled to be cast at such meeting of stockholders will constitute a
quorum. Generally, the affirmative vote of a majority of all votes cast is necessary to take stockholder action, except that a plurality of the votes cast at a meeting at which a quorum is present is sufficient to elect a director in a contested
election and a majority of the votes entitled to be cast is required to approve certain extraordinary matters such as mergers, certain amendments to our charter or the sale of all or substantially all of our assets. Cumulative voting of shares is
not permitted. 
 Restrictions on Ownership and Transfer 

In order for us to qualify as a REIT under the Internal Revenue Code of 1986, as amended, or the Code, our stock must be beneficially owned by 100 or more
persons during at least 335 days of a taxable year of 12 months or during a proportionate part of a shorter taxable year. Also, not more than 50% of the value of the outstanding shares of stock (taking into account certain options to acquire shares
of stock) may be owned, directly or through certain constructive ownership rules by five or fewer individuals (as defined in the Code to include certain entities such as private foundations) at any time during the last half of a taxable year. 

Our charter contains restrictions on the ownership and transfer of our stock (including, without limitation, our common stock and our preferred stock) that
are intended to assist us in complying with these requirements and continuing to qualify as a REIT. The relevant sections of our charter provide that, subject to the exceptions described below, no person or entity may actually or beneficially own,
or be deemed to own by virtue of the applicable constructive ownership provisions of the Code, more than 9.8% (in value or in number of shares, whichever is more restrictive) of the outstanding shares of our common stock or 9.8% in value of the
aggregate of the outstanding shares of all classes and series of our stock, in each case excluding any shares of our stock that are not treated as outstanding for federal income tax purposes. We refer to each of these restrictions as an
“ownership limit” and collectively as the “ownership limits.” A person or entity that would have acquired actual, beneficial or constructive ownership of our stock but for the application of the ownership limits or any of the
other restrictions on ownership and transfer of our stock discussed below is referred to as a “prohibited owner.” For purposes of this provision, we will not include a “group” as that term is used for purposes of Rule 13d-5(b) or Section 13(d)(3) of the Exchange Act in the definition of “person.” 
 The
constructive ownership rules under the Code are complex and may cause stock owned actually or constructively by a group of related individuals and/or entities to be owned constructively by one individual or entity. As a result, the acquisition of
less than 9.8% of our common stock (or the acquisition of an interest in an entity that owns, actually or constructively, our common stock) by an individual or entity could, nevertheless, cause that individual or entity, or another individual or
entity, to own constructively in excess of 9.8% (in value or in number of shares, whichever is more restrictive) of the outstanding shares of our common stock and thereby violate the applicable ownership limit. 

 Our charter provides that our board of directors, subject to certain limits including the directors’ duties
under applicable law, may retroactively exempt and shall prospectively exempt a person from either or both of the ownership limits and, if necessary, establish a different limit on ownership for such person if it determines that such exemption could
not cause or permit: 
  

	 	•	 	 five or fewer individuals to actually or beneficially own more than 49% in value of the outstanding shares of all
classes or series of our stock; or 

  

	 	•	 	 us to own, actually or constructively, an interest in a tenant of ours (or a tenant of any entity owned in whole
or in part by us). 

 As a condition of the exception, our board of directors may require an opinion of counsel or a ruling from the
Internal Revenue Service, or the IRS, in either case in form and substance satisfactory to our board of directors, in its sole and absolute discretion, in order to determine or ensure our status as a REIT and such representations, covenants and/or
undertakings as are necessary or prudent to make the determinations above. Notwithstanding the receipt of any ruling or opinion, our board of directors may impose such conditions or restrictions as it deems appropriate in connection with such an
exception. 
 In connection with a waiver of an ownership limit or at any other time, our board of directors may, in its sole and absolute discretion,
increase or decrease one or both of the ownership limits for one or more persons, except that a decreased ownership limit will not be effective for any person whose actual, beneficial or constructive ownership of our stock exceeds the decreased
ownership limit at the time of the decrease until the person’s actual, beneficial or constructive ownership of our stock equals or falls below the decreased ownership limit, although any further acquisition of our stock will violate the
decreased ownership limit. Our board of directors may not increase or decrease any ownership limit if the new ownership limit would allow five or fewer persons to actually or beneficially own more than 49% in value of our outstanding stock or could
cause us to be “closely held” under Section 856(h) of the Code (without regard to whether the ownership interest is held during the last half of a taxable year) or otherwise cause us to fail to qualify as a REIT. 

Our charter further prohibits: 
  

	 	•	 	 any person from actually, beneficially or constructively owning shares of our stock that could result in us being
“closely held” under Section 856(h) of the Code (without regard to whether the ownership interest is held during the last half of a taxable year) or otherwise cause us to fail to qualify as a REIT (including, but not limited to,
actual, beneficial or constructive ownership of shares of our stock that could result in us owning (actually or constructively) an interest in a tenant that is described in Section 856(d)(2)(B) of the Code if the income we derive from such
tenant, taking into account our other income that would not qualify under the gross income requirements of Section 856(c) of the Code, would cause us to fail to satisfy any the gross income requirements imposed on REITs); and

  

	 	•	 	 any person from transferring shares of our stock if such transfer would result in shares of our stock being
beneficially owned by fewer than 100 persons (determined without reference to any rules of attribution). 

 Any person who acquires or
attempts or intends to acquire actual, beneficial or constructive ownership of shares of our stock that will or may violate the ownership limits or any of the other restrictions on ownership and transfer of our stock described above must give
written notice immediately to us or, in the case of a proposed or attempted transaction, provide us at least 15 days prior written notice, and provide us with such other information as we may request in order to determine the effect of such transfer
on our status as a REIT. 
 The ownership limits and other restrictions on ownership and transfer of our stock described above will not apply if our board
of directors determines that it is no longer in our best interests to continue to qualify as a REIT or that compliance is no longer required in order for us to qualify as a REIT. 

 Pursuant to our charter, if any purported transfer of our stock or any other event would otherwise result in any
person violating the ownership limits or such other limit established by our board of directors, or could result in us being “closely held” within the meaning of Section 856(h) of the Code (without regard to whether the ownership
interest is held during the last half of a taxable year) or otherwise failing to qualify as a REIT, then the number of shares causing the violation (rounded up to the nearest whole share) will be automatically transferred to, and held by, a trust
for the exclusive benefit of one or more charitable beneficiaries selected by us. The prohibited owner will have no rights in shares of our stock held by the trustee. The automatic transfer will be effective as of the close of business on the
business day prior to the date of the violative transfer or other event that results in the transfer to the trust. Any dividend or other distribution paid to the prohibited owner, prior to our discovery that the shares had been automatically
transferred to a trust as described above, must be repaid to the trustee upon demand. If the transfer to the trust as described above is not automatically effective, for any reason, to prevent violation of the applicable restriction on ownership and
transfer of our stock, then the transfer of the number of shares that otherwise would cause any person to violate the above restrictions will be void and of no force or effect and the intended transferee will acquire no rights in the shares.
Pursuant to our charter, if any transfer of our stock would result in shares of our stock being beneficially owned by fewer than 100 persons (determined without reference to any rules of attribution), then any such purported transfer will be void
and of no force or effect and the intended transferee will acquire no rights in the shares. 
 Our charter provides that shares of our stock transferred to
the trustee are deemed offered for sale to us, or our designee, at a price per share equal to the lesser of (1) the price per share in the transaction that resulted in the transfer of the shares to the trust (or, in the event of a gift, devise
or other such transaction, the last sale price reported on the NYSE on the day of the transfer or other event that resulted in the transfer of such shares to the trust) and (2) the last sale price reported on the NYSE on the date we accept, or
our designee accepts, such offer. We must reduce the amount payable to the prohibited owner by the amount of dividends and distributions paid to the prohibited owner and owed by the prohibited owner to the trustee and pay the amount of such
reduction to the trustee for the benefit of the charitable beneficiary. We have the right to accept such offer until the trustee has sold the shares of our stock held in the trust. Upon a sale to us, the interest of the charitable beneficiary in the
shares sold terminates and the trustee must distribute the net proceeds of the sale to the prohibited owner and any dividends or other distributions held by the trustee with respect to such stock will be paid to the charitable beneficiary. 

If we do not buy the shares, the trustee must, within 20 days of receiving notice from us of the transfer of shares to the trust, sell the shares to a person
or persons designated by the trustee who could own the shares without violating the ownership limits or other restrictions on ownership and transfer of our stock. Upon such sale, the trustee must distribute to the prohibited owner an amount equal to
the lesser of (1) the price paid by the prohibited owner for the shares (or, if the prohibited owner did not give value in connection with the transfer or other event that resulted in the transfer to the trust (e.g., a gift, devise or other
such transaction), the last sale price reported on the NYSE on the day of the transfer or other event that resulted in the transfer of such shares to the trust) and (2) the sales proceeds (net of commissions and other expenses of sale) received
by the trustee for the shares. The trustee must reduce the amount payable to the prohibited owner by the amount of dividends and other distributions paid to the prohibited owner and owed by the prohibited owner to the trustee. Any net sales proceeds
in excess of the amount payable to the prohibited owner will be immediately paid to the charitable beneficiary, together with any dividends or other distributions thereon. In addition, if prior to discovery by us that shares of our stock have been
transferred to the trustee, such shares of stock are sold by a prohibited owner, then our charter provides that such shares shall be deemed to have been sold on behalf of the trust and, to the extent that the prohibited owner received an amount for
or in respect of such shares that exceeds the amount that such prohibited owner was entitled to receive, such excess amount shall be paid to the trustee upon demand. 

The trustee will be designated by us and will be unaffiliated with us and with any prohibited owner. Our charter provides that prior to the sale of any shares
by the trust, the trustee will receive, in trust for the beneficiary, all dividends and other distributions paid by us with respect to such shares, and may exercise all voting rights with respect to such shares for the exclusive benefit of the
charitable beneficiary. 

 Subject to Maryland law, effective as of the date that the shares have been transferred to the trust, the trustee
may, at the trustee’s sole discretion: 
  

	 	•	 	 rescind as void any vote cast by a prohibited owner prior to our discovery that the shares have been transferred
to the trust; and 

  

	 	•	 	 recast the vote in accordance with the desires of the trustee acting for the benefit of the beneficiary of the
trust. 

 However, if we have already taken irreversible corporate action, then the trustee may not rescind and recast the vote. 

If our board of directors determines in good faith that a proposed transfer or other event has taken place that violates the restrictions on ownership and
transfer of our stock set forth in our charter, our board of directors may take such action as it deems advisable in its sole discretion to refuse to give effect to or to prevent such transfer, including, but not limited to, causing us to redeem
shares of stock, refusing to give effect to the transfer on our books or instituting proceedings to enjoin the transfer. 
 Every owner of 5% or more (or
such lower percentage as required by the Code or the Treasury Regulations promulgated thereunder) of the outstanding shares of our stock, within 30 days after the end of each taxable year, must give written notice to us stating the name and address
of such owner, the number of shares of each class and series of our stock that the owner actually or beneficially owns and a description of the manner in which the shares are held. Each such owner also must provide us with any additional information
that we request in order to determine the effect, if any, of the person’s actual or beneficial ownership on our status as a REIT and to ensure compliance with the ownership limits and the other restrictions on ownership and transfer of our
stock set forth in our charter. In addition, any person that is an actual, beneficial owner or constructive owner of shares of our stock and any person (including the stockholder of record) who is holding shares of our stock for an actual,
beneficial owner or constructive owner must, on request, disclose to us in writing such information as we may request in good faith in order to determine our status as a REIT and comply with requirements of any taxing authority or governmental
authority or to determine such compliance. 
 Any certificates representing shares of our stock will bear a legend referring to the restrictions on
ownership and transfer of our stock described above. 
 These restrictions on ownership and transfer could delay, defer or prevent a transaction or a change
of control of our company that might involve a premium price for our common stock that our stockholders believe to be in their best interest. 
 Certain
Provisions of Maryland Law and of Our Charter and Bylaws 
 Our Board of Directors 

Pursuant to our charter and bylaws, the number of directors of our company may be established, increased or decreased only by a majority of our entire board of
directors but may not be fewer than the minimum number (which is one) required under the Maryland General Corporation Law, or the MGCL, nor, unless our bylaws are amended, more than 15. The number of directors is currently fixed at nine. Our charter
provides that, at such time as we have a class of securities registered under the Exchange Act and at least three independent directors (which we have as of the date of this Annual Report on Form 10-K), we
elect to be subject to a provision of Maryland law requiring that vacancies on our board of directors may be filled only by an affirmative vote of a majority of the remaining directors and that any individual elected to fill a vacancy will serve for
the remainder of the full term of the directorship in which the vacancy occurred and until his or her successor is duly elected and qualifies. 
 Each of
our directors will be elected by our common stockholders to serve until the next annual meeting of our stockholders and until his or her successor is duly elected and qualifies under the MGCL. Our bylaws provide for the election of directors, in
uncontested elections, by a majority of the votes cast. In contested elections, the election of directors shall be by a plurality of the votes cast. Holders of shares of our common stock will have no right to cumulative voting in the election of
directors. 

 Removal of Directors 

Our charter provides that, subject to the rights of holders of one or more classes or series of preferred stock to elect or remove one or more directors, a
director may be removed only for cause (as defined in our charter) and only by the affirmative vote of at least two-thirds of the votes entitled to be cast generally in the election of directors.
This provision, when coupled with the exclusive power of our board of directors to fill vacant directorships, precludes stockholders from removing incumbent directors and filling the vacancies created by such removal with their own nominees. 

Business Combinations 
 Under the MGCL, certain
“business combinations” (including a merger, consolidation, statutory share exchange or, in certain circumstances specified under the statute, an asset transfer or issuance or reclassification of equity securities) between a Maryland
corporation and any interested stockholder, or an affiliate of such an interested stockholder, are prohibited for five years after the most recent date on which the interested stockholder becomes an interested stockholder. Maryland law defines an
interested stockholder as: 
  

	 	•	 	 any person who beneficially owns, directly or indirectly, 10% or more of the voting power of the
corporation’s outstanding voting stock; or 

  

	 	•	 	 an affiliate or associate of the corporation who, at any time within
the two-year period prior to the date in question, was the beneficial owner of 10% or more of the voting power of the then-outstanding voting stock of the corporation. 

A person is not an interested stockholder under the MGCL if the board of directors approved in advance the transaction by which the person otherwise would
have become an interested stockholder. In approving a transaction, the board of directors may provide that its approval is subject to compliance, at or after the time of the approval, with any terms and conditions determined by it. 

After such five-year period, any such business combination must be recommended by the board of directors of the corporation and approved by the affirmative
vote of at least: 
  

	 	•	 	 80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the corporation; and

  

	 	•	 	 two-thirds of the votes entitled to be cast by holders of voting
stock of the corporation other than shares held by the interested stockholder with whom (or with whose affiliate) the business combination is to be effected or held by an affiliate or associate of the interested stockholder. 

These supermajority approval requirements do not apply if, among other conditions, the corporation’s common stockholders receive a minimum price (as
defined in the MGCL) for their shares and the consideration is received in cash or in the same form as previously paid by the interested stockholder for its shares. 

These provisions of the MGCL do not apply, however, to business combinations that are approved or exempted by a corporation’s board of directors prior to
the time that the interested stockholder becomes an interested stockholder. Our board of directors has, by board resolution, elected to opt out of the business combination provisions of the MGCL. 

We cannot assure you that our board of directors will not opt for us to be subject to such business combination provisions in the future. However, an
alteration or repeal of this resolution will not have any effect on any business combinations that have been consummated prior to or upon any agreements existing at the time of such modification or repeal. 

Control Share Acquisitions 
 The MGCL provides that
a holder of “control shares” of a Maryland corporation acquired in a “control share acquisition” has no voting rights with respect to those shares except to the extent approved by the affirmative vote of at least two-thirds of the votes entitled to be cast by stockholders entitled to exercise or direct the exercise of the 

 
voting power in the election of directors generally but excluding: (1) the person who has made or proposes to make the control share acquisition; (2) any officer of the corporation; or
(3) any employee of the corporation who is also a director of the corporation. “Control shares” are voting shares of stock that, if aggregated with all other such shares of stock previously acquired by the acquirer or in respect of
which the acquirer is able to exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquirer to exercise voting power in electing directors within one of the following ranges of: 

 

	 	•	 	 one-tenth or more but less
than one-third; 

  

	 	•	 	 one-third or more but less than a majority; or

  

	 	•	 	 a majority or more of all voting power. 

Control shares do not include shares that the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval. A
“control share acquisition” means the acquisition, directly or indirectly, of ownership of, or the power to direct the exercise of voting power with respect to, issued and outstanding control shares, subject to certain exceptions. 

A person who has made or proposes to make a control share acquisition, upon satisfaction of certain conditions (including an undertaking to pay expenses and
making an “acquiring person statement” as described in the MGCL), may compel the board of directors of the company to call a special meeting of stockholders to be held within 50 days of demand to consider the voting rights of the control
shares. If no request for a special meeting is made, the corporation may itself present the question at any stockholders meeting. 
 If voting rights of
control shares are not approved at the meeting or if the acquiring person does not deliver an “acquiring person statement” as required by the statute, then, subject to certain conditions and limitations, the corporation may redeem any or
all of the control shares (except those for which voting rights have previously been approved) for fair value determined, without regard to the absence of voting rights for the control shares, as of the date of the last control share acquisition by
the acquirer or of any meeting of stockholders at which the voting rights of such shares are considered and not approved. If voting rights for control shares are approved at a stockholders meeting and the acquirer becomes entitled to vote a majority
of the shares entitled to vote, all other stockholders may exercise appraisal rights. The fair value of the shares as determined for purposes of such appraisal rights may not be less than the highest price per share paid by the acquirer in the
control share acquisition. 
 The control share acquisition statute does not apply (1) to shares acquired in a merger, consolidation or statutory share
exchange if the corporation is a party to the transaction or (2) to acquisitions approved or exempted by the charter or bylaws of the corporation. 

Our bylaws contain a provision exempting from the control share acquisition statute any and all control share acquisitions by any person of shares of our
stock. Our board of directors may amend or eliminate this provision at any time in the future, whether before or after the acquisition of control shares. 

Subtitle 8 
 Subtitle 8 of Title 3 of the MGCL
permits a Maryland corporation with a class of equity securities registered under the Exchange Act and at least three independent directors to elect to be subject, by provision in its charter or bylaws or a resolution of its board of directors and
notwithstanding any contrary provision in the charter or bylaws, to any or all of the following five provisions: 
  

	 	•	 	 a classified board; 

  

	 	•	 	 a two-thirds vote requirement for removing a director;

  

	 	•	 	 a requirement that the number of directors be fixed only by vote of the directors; 

 

	 	•	 	 a requirement that a vacancy on the board be filled only by the remaining directors and for the remainder of the
full term of the class of directors in which the vacancy occurred; or 

	 	•	 	 a majority requirement for the calling of a special meeting of stockholders/ 

Our charter provides that, at such time as we become eligible to make a Subtitle 8 election (which we are as of the date of this Annual Report on Form 10-K), we elect to be subject to the provisions of Subtitle 8 relating to the filling of vacancies on our board of directors. Through provisions in our charter and bylaws unrelated to Subtitle 8, we already
(1) require a two-thirds vote for the removal of any director from our board of directors, which removal must be for cause, (2) vest in our board of directors the exclusive power to fix the
number of directorships, subject to limitations set forth in our charter and bylaws, and (3) require, unless called by the chairman of our board of directors, our president, our chief executive officer or our board of directors, the request of
stockholders entitled to cast not less than a majority of all votes entitled to be cast on a matter at such meeting to call a special meeting. We have opted out of the provision of Subtitle 8 of Title 3 of the MGCL that would have permitted our
board of directors to unilaterally divide itself into classes with staggered terms of three years each (also referred to as a classified board) without stockholder approval, and we are prohibited from electing to be subject to such provision of the
MGCL unless such election is first approved by our stockholders by the affirmative vote of a majority of all the votes entitled to be cast on the matter. We do not currently have a classified board. 

Amendments to Our Charter and Bylaws 
 Our charter
generally may be amended only if such amendment is declared advisable by our board of directors and approved by the affirmative vote of stockholders entitled to cast a majority of the votes entitled to be cast on the matter, except that amendments
to the provisions of our charter relating to the removal of directors and the vote required to amend the removal provision may be amended only with the approval of stockholders entitled to cast at
least two-thirds of all of the votes entitled to be cast on the matter. Our board of directors, and our stockholders by the affirmative vote of a majority of votes entitled to be cast on the matter,
each have the power to adopt, alter or repeal any provision of our bylaws or to make new bylaws. 
 Meetings of Stockholders 

Under our bylaws, annual meetings of stockholders will be held each year at a date and time determined by our board of directors. Special meetings of
stockholders may be called by our board of directors, the chairman of our board of directors, our president or our chief executive officer. Additionally, subject to the provisions of our bylaws, special meetings of the stockholders must be called by
our secretary upon the written request of stockholders entitled to cast not less than a majority of the votes entitled to be cast at such meeting who have requested the special meeting in accordance with the procedures set forth in, and provided the
information and certifications required by, our bylaws. Only matters set forth in the notice of the special meeting may be considered and acted upon at such a meeting. 

Advance Notice of Director Nominations and New Business 

Our bylaws provide that: 
  

	 	•	 	 with respect to an annual meeting of stockholders, nominations of individuals for election to our board of
directors and the proposal of business to be considered by stockholders at the annual meeting may be made only: 

  

	 	•	 	 pursuant to our notice of the meeting; 

 

	 	•	 	 by or at the direction of our board of directors; or 

 

	 	•	 	 by a stockholder who was a stockholder of record both at the time of giving of the notice of the meeting and at
the time of the annual meeting, who is entitled to vote at the meeting and who has complied with the advance notice procedures set forth in, and provided the information and certifications required by, our bylaws; and 

 

	 	•	 	 with respect to special meetings of stockholders, only the business specified in our company’s notice of
meeting may be brought before the special meeting of stockholders, and nominations of individuals for election to our board of directors may be made only: 

  

	 	•	 	 by or at the direction of our board of directors; or 

	 	•	 	 provided that the meeting has been called in accordance with our bylaws for the purpose of electing directors, by
a stockholder who is a stockholder of record both at the time of giving of the notice required by our bylaws and at the time of the meeting, who is entitled to vote at the meeting in the election of each individual so nominated and who has complied
with the advance notice provisions set forth in, and provided the information and certifications required by, our bylaws. 

 The purpose
of requiring stockholders to give advance notice of nominations and other proposals is to afford our board of directors and our stockholders the opportunity to consider the qualifications of the proposed nominees or the advisability of the other
proposals and, to the extent considered necessary by our board of directors, to inform stockholders and make recommendations regarding the nominations or other proposals. Although our bylaws do not give our board of directors the power to disapprove
timely stockholder nominations and proposals, our bylaws may have the effect of precluding a contest for the election of directors or proposals for other action if the proper procedures are not followed, and of discouraging or deterring a third
party from conducting a solicitation of proxies to elect its own slate of directors to our board of directors or to approve its own proposal. 

Anti-takeover Effect of Certain Provisions of Maryland Law and of Our Charter and Bylaws 

The restrictions on ownership and transfer of our stock, the supermajority vote required to remove directors, our election to be subject to the provision of
Subtitle 8 vesting in our board of directors the exclusive power to fill vacancies on our board of directors and the stockholder-requested special meeting requirements and advance notice provisions of our bylaws could delay, defer or prevent a
transaction or a change of control of our company that might involve a premium price for our common stock or that our common stockholders otherwise believe to be in their best interests. Likewise, if the provision in our bylaws opting out of the
control share acquisition provisions of the MGCL were amended or rescinded, or if our board of directors were to elect for us to be subject to the business combination provisions of the MGCL, such provisions of the MGCL could have similar
anti-takeover effects. 
 Limitation of Liability and Indemnification of Directors and Officers 

Maryland law permits a Maryland corporation to include in its charter a provision limiting the liability of its directors and officers to the corporation and
its stockholders for money damages except for liability resulting from actual receipt of an improper benefit or profit in money, property or services or active and deliberate dishonesty that is established by a final judgment adverse to the director
or officer and is material to the cause of action. Our charter contains such a provision that eliminates such liability to the maximum extent permitted by Maryland law. 

The MGCL requires a Maryland corporation (unless its charter provides otherwise, which our charter does not) to indemnify a director or officer who has been
successful, on the merits or otherwise, in the defense of any proceeding to which he or she is made or threatened to be made a party by reason of his or her service in that capacity. The MGCL permits a Maryland corporation to indemnify its present
and former directors and officers, among others, against judgments, penalties, fines, settlements and reasonable expenses actually incurred by them in connection with any proceeding to which they may be made or are threatened to be made a party by
reason of their service in those or other capacities unless it is established that: 
  

	 	•	 	 the act or omission of the director or officer was material to the matter giving rise to the proceeding and:

  

	 	•	 	 was committed in bad faith; or 

 

	 	•	 	 was the result of active and deliberate dishonesty; 

 

	 	•	 	 the director or officer actually received an improper personal benefit in money, property or services; or

  

	 	•	 	 in the case of any criminal proceeding, the director or officer had reasonable cause to believe that the act or
omission was unlawful. 

 However, under the MGCL, a Maryland corporation may not indemnify a director or officer for an adverse judgment
in a suit by or in the right of the corporation or if the director or officer was adjudged liable on the basis 

 
that personal benefit was improperly received, unless in either case a court orders indemnification and then only for expenses. A court may order indemnification if it determines that the
director or officer is fairly and reasonably entitled to indemnification, even though the director or officer did not meet the prescribed standard of conduct or was adjudged liable on the basis that personal benefit was improperly received. 

In addition, the MGCL permits a Maryland corporation to advance reasonable expenses to a director or officer upon the corporation’s receipt of: 

 

	 	•	 	 a written affirmation by the director or officer of his or her good faith belief that he or she has met the
standard of conduct necessary for indemnification by the corporation; and 

  

	 	•	 	 a written undertaking, which may be unsecured, by the director or officer or on the director’s or
officer’s behalf to repay the amount paid if it shall ultimately be determined that the standard of conduct has not been met. 

 Our
charter authorizes us to obligate our company and our bylaws obligate us, to the fullest extent permitted by Maryland law in effect from time to time, to indemnify and to pay or reimburse reasonable expenses in advance of final disposition of a
proceeding without requiring a preliminary determination of the director’s or officer’s ultimate entitlement to indemnification to: 
  

	 	•	 	 any present or former director or officer who is made or threatened to be made a party to the proceeding by
reason of his or her service in that capacity; or 

  

	 	•	 	 any individual who, while a director or officer of our company and at our request, serves or has served as a
director, officer, partner, member, manager, trustee, employee or agent of another corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or any other enterprise and who is made
or threatened to be made a party to the proceeding by reason of his or her service in that capacity. 

 Our charter and bylaws also permit
us, with the approval of our board of directors, to indemnify and advance expenses to any person who served a predecessor of ours in any of the capacities described above and to any employee or agent of our company or a predecessor of our company.

 REIT Qualification 
 Our charter provides that
our board of directors may revoke or otherwise terminate our REIT election, without approval of our stockholders, if it determines that it is no longer in our best interest to continue to be qualified as a REIT. Our charter also provides that our
board of directors may determine that compliance with the restrictions on ownership and transfer of our stock is no longer required for us to qualify as a REIT. 

Exclusive Forum 
 Our bylaws provide that, unless
we consent in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of breach of any duty owed by any director,
officer or other employee of ours to us or our stockholders, (iii) any action asserting a claim arising pursuant to any provision of the MGCL, our charter or our bylaws, or (iv) any action asserting a claim governed by the internal affairs
doctrine shall be the Circuit Court for Baltimore City, Maryland or, if that court does not have jurisdiction, the United States District Court for the District of Maryland, Baltimore Division, in all cases subject to the court’s having
personal jurisdiction over the indispensible parties named as defendants. Our bylaws further provide that any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock shall be deemed to have notice of and
consented to the exclusive forum provisions of our bylaws.EX-10.3

 Exhibit 10.3 

SECOND AMENDMENT TO 

AMENDED AND RESTATED 

SPIRIT REALTY CAPITAL, INC. 

AND SPIRIT REALTY, L.P. 

2012 INCENTIVE AWARD PLAN 

RECITALS 

WHEREAS, Spirit Realty Capital, Inc. (the “Company”) currently maintains the Amended and Restated
Spirit Realty Capital, Inc. and Spirit Realty, L.P. 2012 Incentive Award Plan, as amended (the “Plan”). 

WHEREAS, the Board of Directors of the Company (the “Board”) approved a reverse stock split of the
issued and outstanding shares of the Company’s common stock, par value $0.01 per share such that every five shares of Common Stock, par value $0.01 per share, that were issued and outstanding were combined and changed into one issued and
outstanding share of Common Stock, par value $0.05 per share (the “Reverse Stock Split”). 

WHEREAS, in connection with the Reverse Stock Split, the Compensation Committee of the Board, as the Plan’s
Administrator (as defined in the Plan), approved equitable adjustments pursuant to Section 13.2(a) of the Plan to reflect the impact of the Reverse Stock Split with respect to the aggregate number and kind of shares that may be issued under the
Plan (including, but not limited to, adjustments of the Share Limit and Individual Award Limits, each as defined in the Plan). 

NOW, THEREFORE, BE IT RESOLVED, that, effective as of the effective time of the Reverse Stock Split, the Plan is hereby
amended as set forth herein. 
 AMENDMENT 

Effective as of the effective time of the Reverse Stock Split, the Plan is hereby amended as follows. 

 

	1.	 Section 2.11 of the Plan is hereby amended and restated in its entirety as follows:

 “Common Stock” shall mean the common stock of the Company, par value $0.05 per
share.” 
  

	2.	 The first and second sentences of Section 3.1(a) of the Plan are hereby amended and restated in their
entirety as follows: 

 “Subject to Section 3.1(b) and Section 13.2 hereof, the aggregate
number of Shares which may be issued or transferred pursuant to Awards under the Plan is 2,287,699 shares (the “Share Limit”). In order that the applicable regulations under the Code relating to Incentive Stock Options be satisfied,
the maximum number of Shares that may be issued under the Plan upon the exercise of Incentive Stock Options shall be 2,287,699.” 

	3.	 Section 3.3 of the Plan is hereby amended and restated in its entirety as follows:

 “Limitation on Number of Shares Subject to Awards. Notwithstanding any provision in the
Plan to the contrary, and subject to Section 13.2 hereof, (a) the maximum aggregate number of Shares with respect to one or more Awards that may be granted to any one person during any calendar year shall be 200,000 and the maximum
aggregate amount of cash that may be paid in cash during any calendar year with respect to one or more Awards payable in cash shall be $5,000,000 (together, the “Individual Award Limits”). 

 

	4.	 This Second Amendment shall be and is hereby incorporated in and forms a part of the Plan.

  

	5.	 Except as expressly provided herein, all terms and conditions of the Plan shall remain in full force and
effect. 

 [Signature Page Follows] 

 IN WITNESS WHEREOF, I hereby certify that the foregoing Amendment was duly
adopted by the Board of Directors of Spirit Realty Capital, Inc. on March 2, 2017. 
  

			
	 Spirit Realty Capital, Inc.

		
	 By:
	 	 /s/ Thomas H. Nolan, Jr.

	 Thomas H. Nolan, Jr.

	 Chairman and Chief Executive Officer

	 Date: March 2, 2017

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