Document:

EX-4.2

 Exhibit 4.2 

EXECUTION VERSION 

VEREIT, INC. 

OFFICER’S CERTIFICATE 

The undersigned, Michael J. Bartolotta, Executive Vice President and Chief Financial Officer, of VEREIT, Inc. (“Parent”), a
Maryland corporation, hereby certifies, on behalf of Parent in its own capacity and as sole general partner of VEREIT Operating Partnership, L.P., a Delaware limited partnership (the “Issuer”), pursuant to Sections 2.01 and 2.02 of
the Indenture, dated as of February 6, 2014 (the “Base Indenture”), by and among the Issuer (f/k/a ARC Properties Operating Partnership, L.P.), as Issuer, Parent (f/k/a American Realty Capital Properties, Inc.), as a guarantor,
U.S. Bank National Association, as trustee and the other parties thereto, as follows: 
 1. The undersigned has read Sections 2.01 and 2.02
of the Base Indenture and such other sections of the Base Indenture and other documents and has made such other inquiries as he has deemed necessary to make the certifications set forth herein. 

2. In the opinion of the undersigned, the covenants and conditions precedent provided for in the Base Indenture relating to the issuance of the
Issuer’s 3.950% Senior Notes due 2027 (the “Notes”) have been complied with. 
 3. The forms of the Notes and the
guarantee of the Notes by Parent and any future guarantor, and the terms of the Notes, as set forth in Exhibit A attached to Annex A hereto have been duly established pursuant to Sections 2.01 and 2.02 of the Base Indenture and comply with the Base
Indenture. 
 [SIGNATURE ON FOLLOWING PAGE] 

 IN WITNESS WHEREOF, the undersigned has caused this certificate to be duly executed as of this
11th day of August, 2017. 
  

			
	VEREIT OPERATING PARTNERSHIP, L.P., as Issuer
		
	By:	 	VEREIT, Inc., its sole
		 	general partner
		
	By:	 	 /s/ Michael J. Bartolotta

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

		 	Name: Michael J. Bartolotta
		 	Title:   Executive Vice President and Chief
		 	            Financial Officer

 [Signature page to Officer’s Certificate to Indenture] 

 ANNEX A 

Pursuant to Sections 2.01 and 2.02 of the Indenture, dated as of February 6, 2014 (the “Base Indenture”), among
VEREIT Operating Partnership, L.P., a Delaware limited partnership (the “Issuer”) (f/k/a ARC Properties Operating Partnership, L.P.), VEREIT, Inc., a Maryland corporation (“Parent”) (f/k/a American
Realty Capital Properties, Inc.), as a guarantor, U.S. Bank National Association, as trustee (the “Trustee”) and the other parties thereto, the terms of the Notes to be issued pursuant to the Base Indenture are as set forth
below. The Base Indenture together with, and as amended and supplemented by, the Officer’s Certificate (the “Series Officer’s Certificate”), dated as of August 11, 2017, establishing the terms of the Notes and
of which this Annex A forms a part, is referred to herein as the “Indenture”. Certain defined terms are set forth in paragraph 18(k) hereof. Capitalized terms used but not otherwise defined in this Series Officer’s Certificate shall
have the respective meanings assigned to them in the Base Indenture. 
 1. Designation. One series of Securities is hereby
established under the Base Indenture and shall be known and designated as the “3.950% Senior Notes due 2027”. 
 2. Initial
Aggregate Principal Amount. The Notes shall be limited in initial aggregate principal amount to $600,000,000, except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes
pursuant to Sections 2.05, 2.06, 2.07, 3.03 and 9.04 of the Indenture. 
 3. Maturity. The date on which the principal of the
Notes is payable is August 15, 2027 (the “Stated Maturity Date”). 
 4. Rate of Interest; Interest Payment
Date; Regular Record Dates. The Notes shall bear interest at the rate of 3.950% per annum until the principal thereof is paid. Such interest shall be payable semiannually in arrears on February 15 and August 15 of each year (each,
an “Interest Payment Date”), commencing on February 15, 2018, to the Persons in whose names the Notes are registered at the close of business on the immediately preceding February 1 or August 1 (each, a
“record date”), as the case may be. Interest on the Notes shall accrue from and including the immediately preceding Interest Payment Date in respect of which interest has been paid or duly made available for payment (or from
and including the date of issue, if no interest has been paid or duly made available for payment with respect to the Notes) to, but excluding the applicable Interest Payment Date, the Stated Maturity Date or date of earlier redemption (the Stated
Maturity Date or date of earlier redemption referred to collectively herein as the “Maturity Date”), as the case may be. Interest on the Notes shall be computed on the basis of a
360-day year comprised of twelve 30-day months. If any Interest Payment Date or the Maturity Date falls on a day that is not a Business Day, the required payment of
principal, premium, if any, and/or interest payable on such date will be made on the next succeeding Business Day as if made on the date such payment was due, and no interest will accrue on such payment for the period from and after such Interest
Payment Date or the Maturity Date, as the case may be, to the date of such payment on the next succeeding Business Day. 
 5. Place of
Payment. Payments of principal, premium, if any, and interest on the Notes shall be payable, at the office of the Issuer’s paying agent maintained at the Corporate Trust Office. Payment of principal of, or premium, if any, on a
definitive Note may be made only against surrender of the Note to the Issuer’s paying agent. The Issuer may make interest payments (1) by wire transfer of funds to the person at an account maintained within the United States, or
(2) if no wire transfer is provided, the Issuer may make interest payments by check mailed to the address of the person entitled to the payment as that address appears in the applicable register for those Notes. However, while any Notes are
represented by a registered Global Security, payment of principal of, premium, if any, or interest on the Notes may be made by wire transfer to the account of the Depositary or its nominee. 

  
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 6. RESERVED. 

7. Optional Redemption. The Issuer may redeem all or part of the Notes at any time at its option as set forth the in the form of
Note as set forth on Exhibit A and in Article III of the Indenture. 
 8. No Sinking Fund. The Notes are not mandatorily
redeemable and are not entitled to the benefit of a sinking fund or any analogous provisions. 
 9. Ranking Security. The Notes
are senior unsecured obligations of the Issuer and rank equally with other unsecured indebtedness of the Issuer that is not subordinated to the Notes. 

10. Issue Price; Amount Payable Upon Acceleration. The Notes will be issued at a price equal to 99.330% of the principal amount
thereof. 100% of the principal of and accrued interest, if any, on the Notes shall be payable upon declaration of acceleration pursuant to Section 6.01 of the Indenture. 

11. Payment Currency—Election. The principal of, premium, if any, and interest on the Notes shall not be payable in a
currency other than Dollars. 
 12. Payment Currency—Index. The principal of, premium, if any, and interest on the Notes
shall not be determined with reference to an index based on a coin or currency. 
 13. Registered Securities. The Notes shall
be issued only as registered Securities. The Notes shall be issuable as registered Global Securities in book-entry form. 
 14.
Additional Amounts. The Issuer shall not pay additional amounts on the Notes held by a Person that is not a U.S. Person in respect of taxes or similar charges withheld or deducted. 

15. Notes in Definitive Form. Section 2.05 of the Indenture will govern the transferability of the Notes in definitive form.

 16. Registrar; Paying Agent; Depositary. The Trustee shall initially serve as the registrar and the paying agent for the
Notes. The Depository Trust Company shall initially serve as the Depositary for the registered Global Security representing the Notes. 
 17.
Events of Default. There shall be no deletions from, modifications or additions to the Events of Default set forth in Section 6.01 of the Base Indenture with respect to the Notes, except, with respect to the Notes, the text of
Section 6.01(a)(5) of the Base Indenture shall be deemed deleted in its entirety and replaced with the following: “default by the Parent or any of its Subsidiaries under any mortgage, bond, debenture, note or other instrument under which
there is outstanding, or by which there is secured or evidenced, any Debt for money borrowed by Parent or any of its Subsidiaries (not including any Debt for which recourse is limited to property purchased or for which recourse may be increased
beyond property purchased pursuant to violations of customary non-recourse carveouts unless any such carveout is judicially determined to have been triggered and then only to the extent of such determination)
in an aggregate principal amount in excess of $50.0 million at any one time, whether the Debt exists at the date of the Indenture or shall thereafter be created, which default shall have resulted in the Debt becoming or being declared due and
payable prior to the date on which it would otherwise have become due and payable or which default shall have resulted in the obligation being accelerated, without the acceleration having been rescinded or annulled or the Debt having been
Discharged;” 

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

  
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the four consecutive fiscal quarters most recently ended prior to the date on which such additional Debt is to be incurred is less than 1.5 to 1.0, on a pro forma basis after giving effect to the
incurrence of such Debt and the application of the proceeds therefrom, and calculated on the following assumptions: (1) such Debt and any other Debt (including, without limitation, Acquired Debt) incurred by Parent or any of its Subsidiaries
since the first day of such four-quarter period and the application of the proceeds therefrom (including to refinance other Debt since the first day of such four-quarter period) had occurred on the first day of such period, (2) the repayment or
retirement of any other Debt of Parent or any of its Subsidiaries since the first day of such four-quarter period had occurred on the first day of such period (except that, in making such computation, the amount of Debt under any revolving credit
facility, line of credit or similar facility shall be computed based upon the average daily balance of such Debt during such period), and (3) in the case of any acquisition or disposition by Parent or any Subsidiary of any asset or group of
assets since the first day of such four-quarter period, including, without limitation, by merger, stock purchase or sale, or asset purchase or sale, such acquisition or disposition had occurred on the first day of such period with the appropriate
adjustments with respect to such acquisition or disposition being included in such pro forma calculation. If the Debt giving rise to the need to make the foregoing calculation or any other Debt incurred after the first day of the relevant
four-quarter period bears interest at a floating rate then, for purposes of calculating the Annual Debt Service Charge, the interest rate on such Debt shall be computed on a pro forma basis by applying the average daily rate which would have been in
effect during the entire such four-quarter period to the greater of the amount of such Debt outstanding at the end of such period or the average amount of such Debt outstanding during such period. 

(d) Maintenance of Total Unencumbered Assets. This paragraph (d) will be an addition to Article IV of the
Base Indenture with respect to the Notes. Parent and its Subsidiaries will not have at any time Total Unencumbered Assets of less than 150% of the aggregate principal amount of all of the outstanding Unsecured Debt of Parent and its Subsidiaries
determined on a consolidated basis in accordance with GAAP. 
 (e) Provision of Financial Information. This
paragraph (e) shall supplement Section 5.03 of the Base Indenture. 
 (1) Whether or not the Issuer is subject to
Section 13 or 15(d) of the Exchange Act and for so long as any Notes are Outstanding, the Issuer will furnish to the Trustee (1) all quarterly and annual reports that would be required to be filed with the Commission on Forms 10-Q and 10-K if the Issuer were required to file such reports and (2) all current reports that would be required to be filed with the Commission on Form 8-K if the Issuer were required to file such reports, in each case within 15 days after the Issuer files such reports with the Commission or would be required to file such reports with the Commission (for the
avoidance of doubt, giving effect to any grace period provided by Rule 12b-25 under the Exchange Act) pursuant to the applicable rules and regulations of the Commission, whichever is earlier (in each case,
excluding, for the avoidance of doubt, any such documents or reports (or portions thereof) that are subject to confidential treatment and any correspondence with the Commission). Reports, information and documents filed with the Commission via the
EDGAR system will be deemed to be delivered to the Trustee as of the time of such filing via EDGAR for purposes of this covenant; provided, that the Trustee shall have no obligation whatsoever to determine whether or not such information, documents
or reports have been filed via EDGAR. Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained
therein or determinable from information contained therein. 

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

  
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 (1) to cure any ambiguity or to correct any defect or inconsistency in the
Indenture or in the Securities of any series, or to make any other provisions with respect to matters or questions arising under the Indenture which shall not be inconsistent with the provisions of the Indenture; provided, however,
that such action shall not adversely affect the interests of holders of any series of Securities in any material respect; 

(2) to evidence the succession of another Person to the obligations of the Issuer or any Guarantor to the extent such
succession is permitted by Article X; 
 (3) to add to the covenants, restrictions, conditions or provisions relating to the
Issuer or the Guarantors for the benefit of the holders of all or any series of Securities (and if such covenants, restrictions, conditions or provisions are to be for the benefit of less than all series of Securities, stating that such covenants,
restrictions, conditions or provisions are expressly being included solely for the benefit of such series), to add Events of Default for the benefit of the holders of all or any series of Securities, or to surrender any right or power herein
conferred upon the Issuer; 
 (4) to make any change or eliminate any provision in the Indenture; provided that any
such change or elimination does not apply to any Outstanding Securities of a series that are entitled to the benefit of such provision; 

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

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

(7) to evidence and provide for the acceptance of appointment under the Indenture by a successor Trustee with respect to the
Securities of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts under the Indenture by more than one Trustee, pursuant to the
requirements of Section 7.12; 
 (8) to supplement any of the provisions of the Indenture to the extent necessary to
permit or facilitate defeasance, covenant defeasance and discharge of Securities of any series; provided, however, that this action shall not adversely affect the interests of the holders of the Securities of any such series in any
material respect; 
 (9) to comply with any requirements of the Commission or any successor in connection with the
qualification of this Indenture under the Trust Indenture Act; 
 (10) to provide for the issuance of additional Securities
of any series in accordance with the terms of the Indenture and the Securities of such series; or 
 (11) to conform the text
of this Indenture or the Notes to any provision of the “Description of Notes” section of the Prospectus Supplement of the Issuer and Parent dated August 8, 2017, filed with the Commission on August 9, 2017 and related to the
Notes as set forth in an Officer’s Certificate. 

  
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 The Trustee is hereby authorized to join with the Issuer in the execution of any such
supplemental indenture, and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee’s own rights,
duties or immunities under this Indenture or otherwise. 
 Any supplemental indenture authorized by the provisions of this Section may be
executed by the Issuer and the Trustee without the consent of the holders of any of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02. 

(j) Supplemental Indentures With Consent of Securityholders. Section 9.02(4) of the Base Indenture is
replaced with the following: “except as contemplated by the provisions of Article X, release Parent from its guarantee of the Securities”. 

(k) Certain Definitions. As used herein (and to the extent any such definitions conflict with definitions
included in the Base Indenture, the definitions included here shall control with respect to the Notes): 

“Acquired Debt” means Debt of a person (1) existing at the time such person is merged or
consolidated with or into Parent or any of its Subsidiaries or becomes a Subsidiary of Parent; or (2) is assumed by Parent or any of its Subsidiaries in connection with the acquisition of assets from such person. Acquired Debt shall be deemed
to be incurred on the date the acquired person is merged or consolidated with or into Parent or any of its Subsidiaries or becomes a Subsidiary of Parent or the date of the related acquisition, as the case may be. 

“Annual Debt Service Charge” means, for any period, the interest expense of Parent and its Subsidiaries
for such period in respect of Debt, determined on a consolidated basis in accordance with GAAP to the extent GAAP is applicable, but excluding (i) any commitment, upfront, arrangement or structuring fees or premiums (including redemption and
prepayment premiums) or original issue discount, (ii) interest reserves funded from the proceeds of any Indebtedness, (iii) any cash costs associated with breakage in respect of hedging agreements for interest rates and
(iv) amortization of deferred financing costs. 
 “Business Day” means any day, other than a day
on which Federal or State banking institutions in the Borough of Manhattan, The City of New York, or in the city in which the Corporate Trust Office is located, are authorized or obligated by law, regulation or executive order to close. 

“Consolidated Income Available for Debt Service” for any period means Consolidated Net Income of Parent
and its Subsidiaries for such period, plus amounts which have been deducted, and minus amounts which have been added, in determining Consolidated Net Income during such period, for, without duplication: (1) Consolidated Interest Expense;
(2) provision for taxes of Parent and its Subsidiaries based on income; (3) amortization of debt discount, premium and deferred financing costs; (4) impairment losses and gains or losses on sales or other dispositions of properties;
(5) depreciation and amortization; (6) the effect of any non-recurring, non-cash items; (7) amortization of deferred charges; (8) gains or losses on
early extinguishment of debt; (9) expenses and losses associated with hedging agreements, (10) equity-based compensation and (11) extraordinary, non-recurring or unusual items, charges or
expenses (including, without limitation, prepayment penalties and costs, fees or expenses incurred in connection with any capital markets offering, debt financing, or amendment thereto, redemption or exchange of indebtedness, lease termination,
business combination, acquisition, disposition, recapitalization or similar transaction (regardless of whether such transaction is completed)), all determined on a consolidated basis in accordance with GAAP to the extent that GAAP is applicable.

  
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 “Consolidated Interest Expense” for any period, and
without duplication, means all interest (including the interest component of rentals on capitalized leases, letter of credit fees, commitment fees and other like financial charges) and all amortization of debt discount on all Debt (including,
without limitation, payment-in-kind, zero coupon and other like securities) but excluding legal fees, title insurance charges, other out-of-pocket fees and expenses incurred in connection with the issuance of Debt and the amortization of any such debt issuance costs that are capitalized, all determined for Parent and its Subsidiaries on a
consolidated basis in accordance with GAAP to the extent that GAAP is applicable. 
 “Consolidated Net
Income” for any period means the amount of consolidated net income (or loss) of Parent and its Subsidiaries for such period, excluding extraordinary items, all determined on a consolidated basis in accordance with GAAP to the extent
GAAP is applicable. 
 “Corporate Trust Office” means the principal office of the Trustee at which at
any time its corporate trust office shall be administered, which office at the date hereof is located at (a) for purposes of payment and presentation of the Notes, U.S. Bank National Association, 111 Fillmore Avenue East, St. Paul, MN 55107,
Attention: Bondholder Services and (b) for all other purposes, U.S. Bank National Association, One Federal Street, Tenth Floor, Boston, MA 02110, Attention: Corporate Trust Services, Ref: VEREIT Operating Partnership, L.P., or such other
address as the Trustee may designate from time to time by notice to the Holders and the Issuer, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by
notice to the Holders and the Issuer). 
 “Debt” means, as of any date of determination, all
indebtedness for borrowed money of Parent and its Subsidiaries that is included as a liability on Parent’s consolidated balance sheet in accordance with GAAP, excluding: (i) any indebtedness to the extent secured by cash, cash equivalents
or marketable securities (it being understood that cash collateral shall be deemed to include cash deposited with a trustee or other agent with respect to third party indebtedness) or which has been repaid, discharged, defeased (whether by covenant
or legal defeasance), retired, repurchased or redeemed or otherwise satisfied on or prior to the date such calculation is being made or for which Parent or any of its Subsidiaries has irrevocably made a deposit to repay, defease (whether by covenant
or legal defeasance), discharge, repurchase, retire or redeem or otherwise satisfy or called for redemption, defeasance (whether by covenant or legal defeasance), discharge, repurchase or retirement, on or prior to the date such calculation is being
made (all such events described in this clause (i) are collectively defined as “Discharged”), (ii) Intercompany Debt, (iii) all liabilities associated with customary exceptions to
non-recourse indebtedness, such as for fraud, misapplication of funds, environmental indemnities, voluntary bankruptcy, collusive involuntary bankruptcy and other similar exceptions and (iv) any
redeemable equity interest in Parent or the Issuer. 
 “Equity Interests” means, with respect to any
Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or
profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such
Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants,
options, rights or other interests are outstanding on any date of determination. 

  
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 “GAAP” means generally accepted accounting principles, as
in effect as of the date of determination, as used in the United States applied on a consistent basis. 

“Guarantors” means, collectively, (i) on the original issue date of the Notes, Parent and
(ii) thereafter, Parent and each Subsidiary Guarantor, if any, and “Guarantor” means any one of the Guarantors. 

“Holder” means the person in whose name a Note is registered in the security register maintained by the
Trustee. 
 “Intercompany Debt” means indebtedness owed by Parent or any Subsidiary solely to Parent
or any Subsidiary; provided, that with respect to any such Debt of which either Issuer or any Guarantor is the borrower, such Debt is subordinate in right of payment to the Notes or such Guarantee, as applicable. 

“Lien” means any mortgage, lien, charge, encumbrance, trust deed, deed of trust, deed to secure debt,
security agreement, pledge, security interest, security agreement or other encumbrance of any kind. 

“Person” means any individual, corporation, limited liability company, partnership, joint-venture,
joint-stock company, trust, unincorporated organization or government or agency or political subdivision thereof. 

“Secured Debt” means Debt secured by a Lien on any property or assets of Parent or any of its
Subsidiaries. 
 “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the Equity Interests having ordinary voting power for the election of directors or other governing body (other than Equity Interests having such power only by reason of the happening
of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified, all references herein to a
“Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of Parent. 

“Subsidiary Guarantors” means, as of any date, all Subsidiaries of Parent, if any, that guarantee the
obligations of the Issuer under the Indenture and the Notes in accordance with the provisions of the Indenture, and “Subsidiary Guarantor” means any one of the Subsidiary Guarantors; provided that upon the release or discharge of such
Subsidiary Guarantor from its guarantee in accordance with the Indenture, such Subsidiary shall cease to be a Subsidiary Guarantor. 

“Total Assets” as of any date means the sum of (1) Undepreciated Real Estate Assets, and
(2) all other assets of Parent and its Subsidiaries determined on a consolidated basis in accordance with GAAP (but excluding accounts receivable and non-real estate intangibles). 

“Total Unencumbered Assets” as of any date means Total Assets of Parent and its Subsidiaries that are
not subject to a Lien securing Debt, determined on a consolidated basis in accordance with GAAP; provided, that in determining Total Unencumbered Assets as a percentage of outstanding Unsecured Debt for purposes of paragraph 18(d) of this Annex A,
all investments in any person that is not consolidated with Parent for financial reporting purposes in accordance with GAAP shall be excluded from Total Unencumbered Assets. 

  
 A-9 

 “Undepreciated Real Estate Assets” as of any date means
the cost (original cost plus capital improvements) of real estate assets and related intangibles of Parent and its Subsidiaries on such date, before depreciation and amortization, determined on a consolidated basis in accordance with GAAP. 

“Unsecured Debt” means Debt of Parent or any Subsidiary that is not Secured Debt. 

19. Guarantee. The Notes are guaranteed by the Guarantors as provided in Article XIII of the Indenture. Parent is hereby
designated a “Guarantor” under the Indenture with respect to the Notes on the original issue date. Each other Subsidiary of Parent shall become a Guarantor of the Notes as provided in the Indenture and paragraph 18(f) of this Annex A. Each
Guarantor’s guarantee of the Notes (the “Guarantee”) is an unsecured obligation of such Guarantor and ranks equally with other unsecured indebtedness of such Guarantor that is not subordinated to its Guarantee of the
Notes. Other than in accordance with paragraph 22 of this Annex A, Parent shall not be released from its Guarantee of the Notes so long as any Notes remain Outstanding. 

20. Conversion and Exchange. The Notes shall not be convertible into or exchangeable into any other security. 

21. Further Issues. The Issuer may, without the consent of the Holders of the Notes, create and issue additional Securities
ranking equally and ratably with the Notes in all respects and having the same terms as the Notes (other than date of original issuance, the issue price, the date on which interest begins to accrue and, in some cases, the first interest payment date
of such additional Securities), so that such additional Securities shall be consolidated and form a single series with the Notes established hereby for all purposes, including voting; provided that any additional Notes will not be issued with the
same CUSIP as the Notes created hereby unless such additional Notes are fungible with the Notes created hereby for U.S. federal income tax purposes.. 

22. Merger, Consolidation or Sale of Assets. The terms and conditions of Article X of the Base Indenture shall apply to the
Notes, except, with respect to the Notes, Section 10.01 of the Base Indenture shall be deemed deleted in its entirety and replaced with the following: 

(a) Parent or the Issuer may consolidate with, or sell or convey all or substantially all of its and its Subsidiaries assets, taken as a whole,
to, or merge with or into, any other entity, provided that the following conditions are met: 
 (1)(i) Parent or the Issuer, as applicable,
shall be the continuing entity, or (ii) the successor entity (if other than Parent or the Issuer, as applicable) formed by or resulting from any consolidation or merger or which shall have received the transfer of assets shall be domiciled in
the United States, any state thereof or the District of Columbia and shall expressly assume payment of the principal of and interest on the Notes and the due and punctual performance and observance of all of the covenants and conditions in the
Indenture applicable and with respect to the Notes; 
 (2) immediately after giving effect on a pro forma basis to the transaction (including
the incurrence of any Debt in connection therewith), no Event of Default under the Indenture, and no event which, after notice or the lapse of time, or both, would become an Event of Default (such definition as amended by paragraph 17 of this Annex
A), shall have occurred and be continuing; and 
 (3) an Officer’s Certificate and Opinion of Counsel covering these conditions shall be
delivered to the Trustee. 

  
 A-10 

 (b) Parent shall not permit any future Subsidiary Guarantor, if any, to consolidate with, or
sell, lease or convey all or substantially all of its assets to, or merge with or into, any other entity unless the following conditions are met: 

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

23. Satisfaction and Discharge; Covenant Defeasance. Article XI of the Base Indenture shall apply to the Notes. In addition to
the other sections of the Indenture subject to the Covenant Defeasance provisions set forth in Article XI of the Base Indenture, the covenants set forth in paragraph 18 of this Annex A shall be subject to the Covenant Defeasance provisions set forth
in Article XI of the Base Indenture. 
 24. Modification, Amendment and Waiver. The terms and provisions of the Notes may be
modified, amended, supplemented or waived as set forth in the Indenture. 

  
 A-11 

 25. Other Terms. The Notes shall have the other terms, and the Notes shall
be substantially in the forms set forth in, Exhibit A. In case of any conflict between this Annex A and the Notes, the form of the Notes shall control. In the case of any conflict between, on the one hand, this Annex A and/or the Notes, and on the
other hand, the Base Indenture, this Annex A and/or the Notes shall control. 

  
 A-12 

 EXHIBIT A 

Global Security 
 [UNLESS THIS
NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO VEREIT OPERATING PARTNERSHIP, L.P. (THE “ISSUER”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

EXCEPT AS PROVIDED IN SECTION 2.11 OF THE INDENTURE, THIS NOTE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO DTC, ANOTHER NOMINEE
THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR.]1 

 

	1 	Exclude from Notes in definitive form. 

  
 Exh. A-1 

 VEREIT OPERATING PARTNERSHIP, L.P. 

3.950% Notes due 2027 
 CUSIP No. 92340L
AC3 
 ISIN No. US92340LAC37 
 No. [     ]
                                         
                                         
                                         
                                         
                        $[        ] 

VEREIT OPERATING PARTNERSHIP, L.P., a limited partnership duly organized and existing under the laws of the State of Delaware (hereinafter
referred to as “Issuer,” which term includes any successor thereof under the Indenture (as defined on the reverse hereof)), for value received, hereby promises to pay to CEDE & CO., or its registered assigns, the
principal sum of [         ] ($[         ]) on August 15, 2027 (the “Stated Maturity Date” with respect to the principal of this Note),
unless previously redeemed on any Redemption Date (as defined below) in accordance with the provisions set forth on the reverse hereof (the Stated Maturity Date or any Redemption Date is referred herein as the “Maturity Date”
with respect to principal repayable or repurchased on such date) and to pay interest thereon semiannually in arrears on February 15 and August 15 of each year (each, an “Interest Payment Date”), commencing on
February 15, 2018, at the rate of 3.950% per annum, until payment of said principal has been made or duly provided for. Interest on this Note payable on an Interest Payment Date will accrue from and including the immediately preceding Interest
Payment Date to which interest has been paid or duly made available for payment, or from and including August 11, 2017 if no interest has been paid or duly made available for payment, to but excluding the applicable Interest Payment Date or the
Maturity Date, as the case may be. Interest on this Note will be computed on the basis of a 360-day year consisting of twelve 30-day months. 

Capitalized terms used but not otherwise defined herein shall have the respective meanings assigned to them in the Indenture. 

The interest so payable and punctually paid or duly made available for payment on any Interest Payment Date will be paid to the Holder in
which name this Note (or one or more predecessor Notes) is registered in the Security register at the close of business on the “Regular Record Date” for such payment, which shall be the February 1 or August 1, as
the case may be, immediately preceding such Interest Payment Date (regardless of whether such day is a Business Day (as defined below)). Any such interest not so punctually paid or duly made available for payment shall forthwith cease to be payable
to the Holder on such Regular Record Date, and shall be paid to the Person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on a subsequent “Special Record Date” for the
payment of such defaulted interest (which shall be not more than 5 Business Days prior to the date of the payment of such defaulted interest) established by notice given by mail by or on behalf of the Issuer to the Holders of the Notes not less than
15 calendar days preceding such subsequent Special Record Date, or may be paid at any time in any other lawful manner, all as more fully provided in the Indenture. 

The principal of, and premium, if any, with respect to, this Note payable on the Maturity Date will be paid against presentation and surrender
of this Note at the Corporate Trust Office of the Trustee or other office or agency of the Issuer maintained for that purpose in the Borough of Manhattan, The City of New York. The Issuer hereby initially designates the Corporate Trust Office of the
Trustee (as defined on the reverse hereof) as the office to be maintained by it where Notes may be presented for payment, registration of transfer or exchange and where notices or demands to or upon the Issuer in respect of the Notes or the
Indenture may be served. 
 If any Interest Payment Date or the Maturity Date falls on a day that is not a Business Day, the payment
required to be made on such date will, instead, be made on the next Business Day with the same force and effect as if it were made on the date such payment was due, and no interest shall accrue on the

  
 Exh. A-2 

 
amount so payable for the period from and after such Interest Payment Date or the Maturity Date, as the case may be. “Business Day” means any day, other than a day on
which Federal or State banking institutions in the Borough of Manhattan, The City of New York, or in the city in which the Corporate Trust Office is located, are authorized or obligated by law, regulation or executive order to close. 

Payments of principal, premium, if any, and interest in respect of this Note will be made in such coin or currency of the United States of
America as at the time of payment is legal tender for the payment of public and private debts (i) in the case of payments on the Maturity Date, in immediately available funds, and (ii) in the case of payments of interest on an Interest
Payment Date other than the Maturity Date, (a) by wire transfer of immediately available funds to an account maintained by the payee with a bank located in the United States of America, or (b) if no wire transfer is provided, by check
mailed to the Holder entitled thereto at the applicable address appearing in the Security Register; provided, however, that so long as Cede & Co. is the Holder of this Note, payments of interest on an Interest Payment Date may be made in
immediately available funds. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof. Such further
provisions shall for all purposes have the same effect as though fully set forth at this place. 
 This Note shall not be entitled to the
benefits of the Indenture or the Guarantee or be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been executed by manual signature by the Trustee. 

  
 Exh. A-3 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed, manually,
electronically or by facsimile by an authorized signatory. 
 Date: August 11, 2017 

 

			
	VEREIT OPERATING PARTNERSHIP, L.P.
		
	By:	 	VEREIT, Inc. its sole
		 	general partner
		
	By:	 	  

		 	Name:                                     
                                 
		 	Title:                                     
                                   

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein, referred to in the within-mentioned Indenture. 

 

			
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	  

		 	Authorized Signatory

  
 Exh. A-4 

 [FORM OF REVERSE OF NOTE] 

VEREIT OPERATING PARTNERSHIP, L.P. 

3.950% Senior Notes due 2027 

This Note is one of a duly authorized issue of Securities of the Issuer (hereinafter called the “Securities”) of the
series hereinafter specified, all issued or to be issued under and pursuant to an Indenture (the “Base Indenture”), dated as of February 6, 2014, duly executed and delivered by the Issuer (f/k/a ARC Properties Operating
Partnership, L.P.), VEREIT, Inc. (f/k/a American Realty Capital Properties, Inc.) (“Parent”), and certain other parties named therein to U.S. Bank National Association, as trustee (the “Trustee,” which
term includes any successor trustee under the Indenture with respect to the series of Securities of which this Note is a part), together with the Officer’s Certificate amending and supplementing the Base Indenture and establishing the terms of
the Notes and another series of Securities designated as the 3.950% Senior Notes due 2027, dated as of August 11, 2017 (collectively with the Base Indenture, the “Indenture”) and reference is hereby made to the
Indenture, and all modifications and amendments and indentures supplemental thereto relating to the Notes, made for a description of the rights, limitations of rights, obligations, duties, and immunities thereunder of the Trustee, the Issuer, the
Guarantor(s) and the Holders of the Notes and the terms upon which the Notes are authenticated and delivered. This Note is one of a series of Securities designated as the 3.950% Senior Notes due 2027 (collectively, the
“Notes”) of the Issuer, limited (except as permitted under the Indenture) in aggregate principal amount to $600,000,000. 

Payments of principal, premium, if any, and interest in respect of the Notes will be fully and unconditionally guaranteed by the Guarantor(s).

 Optional Redemption. The Issuer may redeem all or part of the Notes at any time at its option at a redemption price equal to the
greater of: 
 (a) 100% of the principal amount of the Notes to be redeemed, and 

(b) the sum of the present values of the remaining scheduled payments of principal of and interest on the Notes to be redeemed
that would be due if such Notes matured 90 days prior to the Stated Maturity Date (the “Par Call Date”) but for the redemption thereof (exclusive of interest accrued to the applicable Redemption Date) discounted to such
Redemption Date on a semiannual basis, assuming a 360-day year consisting of twelve 30-day months, at the Treasury Rate plus 30 basis points, 

plus, in the case of both clauses (a) and (b) above, accrued and unpaid interest on the principal amount of the Notes being redeemed to, but
excluding, the date fixed for redemption (the “Redemption Date”); provided that if the Notes are redeemed on or after the Par Call Date, the redemption price will equal 100% of the principal amount of the Notes to be
redeemed, plus accrued and unpaid interest on the amount being redeemed to, but excluding, the date of redemption. 
 Notwithstanding the
foregoing, installments of interest on the Notes that are due and payable on an Interest Payment Date falling on or prior to a Redemption Date will be payable to the persons who were the Holders of the Notes (or one or more predecessor Notes)
registered as such at the close of business on the relevant Regular Record Date as set forth above and in Article III of the Indenture. 

  
 Exh. A-5 

 As used herein (and to the extent any such definitions conflict with definitions included in the
Base Indenture, the definitions included here shall control with respect to the Notes): 
 “Comparable Treasury
Issue” means, the U.S. Treasury security selected by the Independent Investment Banker as having a maturity comparable to the remaining term of the Notes to be redeemed calculated as if the Stated Maturity Date were the Par Call Date
(the “Remaining Life”) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of
such Notes. 
 “Comparable Treasury Price” means, with respect to any Redemption Date for the Notes: 

(a) if the Issuer obtains four Reference Treasury Dealer Quotations for such Redemption Date, the average of such Reference
Treasury Dealer Quotations, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or 
 (b) if
the Issuer obtains fewer than four but more than one such Reference Treasury Dealer Quotations for such Redemption Date, the average of all such Reference Treasury Dealer Quotations, or 

(c) if the Issuer obtains only one such Reference Treasury Dealer Quotation for such Redemption Date, that Reference Treasury
Dealer Quotation. 
 “Independent Investment Banker” means one of the Reference Treasury Dealers that the Issuer has
appointed to act as the “Independent Investment Banker”. 
 “Reference Treasury Dealer” means with respect
to any Redemption Date for the Notes, each of (i) J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC and their respective successors (provided, however, that if any such firm
or any such successor, as the case may be, ceases to be a primary U.S. Government securities dealer in The City of New York (a “Primary Treasury Dealer”), the Issuer shall substitute therefor another nationally recognized
investment banking firm that is a Primary Treasury Dealer), and (ii) up to one other Primary Treasury Dealer selected by the Issuer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date
for the Notes, the average, as determined by the Issuer, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Issuer by such Reference Treasury Dealer
at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 “Treasury Rate”
means, with respect to any Redemption Date for the Notes: 
 (a) the yield, under the heading that represents the average for
the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which
establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is
within three months before or after the Remaining Life of the Notes, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Treasury Rate shall be interpolated or extrapolated
from such yields on a straight-line basis, rounding to the nearest month) or 

  
 Exh. A-6 

 (b) if such release (or any successor release) is not published during the week
preceding the calculation date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. 
 The Treasury Rate shall be
calculated by the Issuer on the third Business Day preceding the applicable Redemption Date, on which date the Issuer will provide the Trustee with a calculation of the applicable redemption price. 

Notice of Redemption. No Notes of $2,000 or less can be redeemed in part. Notices of redemption will be mailed (or in the case of
Global Securities, given pursuant to applicable procedures of The Depository Trust Company (“DTC”)) at least 30 but not more than 60 days before the Redemption Date to each Holder of the Notes to be redeemed at its registered
address, except that redemption notices may be mailed or given more than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of the Notes. If less than all of the
Outstanding Notes are to be redeemed, the Notes to be redeemed shall be selected, so long as such Notes are in book-entry form, in accordance with the applicable procedures of DTC, or, if such Notes are issued in definitive certificated form, by
such method as the Trustee shall deem fair and appropriate. 
 If any Note is to be redeemed in part only, (a) the Issuer shall give
the Trustee five days’ notice (unless a shorter period is satisfactory to the Trustee) in advance of the date of delivery of the notice of redemption to the Holders and (b) the notice of redemption that relates to that Note will state the
portion of the principal amount of that Note that is to be redeemed. A new Note in principal amount equal to the unredeemed portion of the original Note will be issued in the name of the Holder of Notes upon cancellation of the original Note. Notes
called for redemption become due on the date fixed for redemption (subject to satisfaction of any applicable conditions precedent). 

Unless the Issuer defaults in payment of the redemption price, on and after the Redemption Date interest will cease to accrue on the Notes or
portions of them called for redemption. 
 This Note is not mandatorily redeemable and is not entitled to the benefit of a sinking fund or
any analogous provisions. 
 Miscellaneous. In case an Event of Default with respect to this Note shall have occurred and be
continuing, the principal hereof may be (and, in certain cases, shall be) declared, and upon such declaration shall become, due and payable, in the manner, with the effect, and subject to the conditions, provided in the Indenture. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Issuer and, if applicable, the Guarantors, and the rights of the Holders of the Securities under the Indenture at any time by the Issuer and, if applicable, the Guarantors, and the Trustee with the consent of the Holders of a majority in the
aggregate principal amount of Securities of each series (voting as separate classes) issued under the Indenture at the time Outstanding and affected thereby. Furthermore, provisions in the Indenture permit the Holders of a majority in the aggregate
principal amount of the Outstanding Securities of any series, in certain instances, to waive, on behalf of all of the Holders of Securities of such series, certain past defaults under the Indenture and their consequences. Any such waiver by the
Holder of this Note shall be conclusive and binding upon such Holder and upon all future Holders of this Note and other Notes issued upon the registration of transfer hereof or in exchange hereof, or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Note. 

  
 Exh. A-7 

 With respect to the Notes, Article XII of the Indenture shall not be applicable to the Issuer,
the Trustee or the Holders. 
 No reference herein to the Indenture and no provision of this Note or the Indenture shall alter or impair the
obligation of the Issuer, which is absolute and unconditional, to pay the principal of, and premium, if any, with respect to, and interest on, this Note in the manner, at the respective times, at the rate and in the coin or currency herein
prescribed. 
 The Indenture contains provisions for defeasance and discharge and for defeasance at any time of certain restrictive
covenants and Events of Default with respect to Notes of this series upon compliance with certain conditions set forth in the Indenture. 

This Note is issuable only in definitive registered form, without coupons, in denominations of $2,000 and integral multiples of $1,000 in
excess thereof. This Note may be exchanged for a like aggregate principal amount of Notes of other authorized denominations at the office or agency of the Issuer in The City of New York, in the manner and subject to the limitations provided herein
and in the Indenture, but without the payment of any charge except for any tax or other governmental charge imposed in connection therewith. 

The Issuer shall not pay additional amounts on this Note held by a Person that is not a U.S. Person in respect of taxes or similar charges
withheld or deducted. 
 The Issuer, the Guarantor(s) or the Trustee and any authorized agent of the Issuer, the Guarantor(s) or the Trustee
may deem and treat the Person in whose name this Note is registered as the Holder and absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the purpose of
receiving payment of, or on account of, the principal of, or premium, if any, with respect to, or subject to the provisions on the face hereof, interest on, this Note and for all other purposes, and none of the Issuer, the Guarantor(s) or the
Trustee or any authorized agent of the Issuer, the Guarantor(s) or the Trustee shall be affected by any notice to the contrary. 
 THE
INDENTURE AND THIS NOTE SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE. 

  
 Exh. A-8 

 ASSIGNMENT FORM 

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

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

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

	
	  

	  

	  

	  

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

Dated:                         

 Signature Guaranteed 
  

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

	
	  

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

  
 Exh. A-9 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL SECURITY(1) 

The following exchanges of a part of this Global Security for an interest in another Global Security or for a definitive registered Note, or exchanges of a
part of another Global Security or definitive registered Note for an interest in this Global Security, have been made: 
  

									
	 Date of

Exchange
	  	 Amount of

Decrease in

Principal Amount

of This Global

Security
	  	 Amount of

Increase in

Principal

Amount of This

Global Security
	  	 Principal Amount of

This Global Security

Following Such

Decrease (or

Increase)
	  	 Signature of

Authorized

Signatory of

Trustee or

Custodian

 

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

  
 Exh. A-10ex10-8.htm

Exhibit 10.8

 

OAK VALLEY COMMUNITY BANK

DIRECTOR RETIREMENT AGREEMENT

 

 

THIS AGREEMENT between, OAK VALLEY COMMUNITY BANK, a state-chartered commercial bank located in Oakdale, California (the "Company"), and H. RANDOLPH HOLDER (the "Director") 

 

INTRODUCTION

 

To encourage the Director to remain a member of the Company’s Board of Directors, the Company is willing to provide retirement benefits to the Director. The Company will pay the benefits from its general assets.

 

AGREEMENT

 

The Director and the Company agree as follows:

 

Article 1

Definitions

 

Whenever used in this Agreement, the following words and phrases shall have the meanings specified:

 

	 	
1.1
	
“Change of Control” means:

(a)     A change in the ownership of the capital stock of the Company or the Holding Company, whereby a corporation, person, or group acting in concert (hereinafter this Agreement shall collectively refer to any combination of these three [a corporation, person, or group acting in concert] as a “Person”) as described in Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), acquires, directly or indirectly, beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of a number of shares of capital stock of the Company or Holding Company which constitutes fifty percent (50%) or more of the combined voting power of the Company’s or Holding Company’s then outstanding capital stock then entitled to vote generally in the election of directors; or

(b)     The persons who were members of the Board of Directors of the Company or Holding Company immediately prior to a tender offer, exchange offer, contested election or any combination of the foregoing, cease to constitute a majority of the Board of Directors; or

(c)     The adoption by the Board of Directors of the Company or of the Holding Company of a merger, consolidation or reorganization plan involving the Company or Holding Company in which the Company or the Holding Company is not the surviving entity, or a sale of all or substantially all of the assets of the Company or Holding Company. For purposes of this Agreement, a sale of all or substantially all of the assets of the Company or Holding Company shall be deemed to occur if any Person acquires (or during the 12-month period ending on the date of the most recent acquisition by such Person, has acquired) gross assets of the Company or Holding Company that have an aggregate fair market value equal to fifty percent (50%) or more of the fair market value of all of the respective gross assets of the Company or Holding Company immediately prior to such acquisition or acquisitions; or

 

 

 

 

 

(d)     A tender offer or exchange offer is made by any Person which results in such Person beneficially owning (within the meaning of Rule 13d-3 promulgated under the Exchange Act) either fifty percent (50%) or more of the Company’s or Holding Company’s outstanding shares of Common Stock or shares of capital stock having fifty percent (50%) or more the combined voting power of the Company’s or Holding Company’s then outstanding capital stock (other than an offer made by the Company or the Holding Company), and sufficient shares are acquired under the offer to cause such person to own fifty percent (50%) or more of the voting power; or

(e)     Any other transactions or series of related transactions occurring which have substantially the same effect as the transactions specified in any of the preceding clauses of this subsection (1.1).

 

1.1.1     “Permitted Transfers” means that a Shareholder, defined as the existing owners of all issued and outstanding stock of the Company as of the date of this Agreement, may make the following transfers and such transfers shall be deemed not to be a Change of Control under Section 1.1:

(a)       To any trust created solely for the benefit of any Shareholder or any spouse of or any lineal descendant of any Shareholder;

(b)       To any individual or entity by bona fide gift;

(c)       To any spouse or former spouse pursuant to the terms of a decree of divorce;

(d)       To any officer or employee of the Company pursuant to any incentive stock option plan established by the Shareholders;

(e)        To any family member; or

(f)       After receipt of any necessary regulatory approvals, to any Company or partnership a majority of the stock or interests of which Company or partnership are owned by any of the Shareholders.

 

	 	
1.2
	
"Code" means the Internal Revenue Code of 1986, as amended.

 

1.3     "Disability" means the Director’s suffering a sickness, accident or injury which has been determined by the carrier of any individual or group disability insurance policy covering the Director, or by the Social Security Administration, to be a disability rendering the Director totally and permanently disabled. For this purpose, totally and permanently disabled means unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months). The Director must submit proof to the Company of the carrier’s or Social Security Administration’s determination upon the request of the Company.

 

1.4     "Early Termination" means the Termination of Service before Normal Retirement Age for reasons other than death, Disability, Termination for Cause or following a Change of Control.

 

 

1

 

  

1.5     "Early Termination Date" means the month, day and year in which Early Termination occurs.

 

1.6     "Effective Date" means July 1, 2016.

 

1.7     “Involuntary Termination of Service” means, following a Change of Control, the Director is removed from the Board of Directors without his consent.

 

1.8     "Normal Retirement Age" means the later of the Director’s 72nd birthday or ten (10) Years of Service.

 

1.9     "Normal Retirement Date" means the later of Normal Retirement Age or Termination of Service.

 

1.10   "Plan Year" means each calendar year from January 1 through December 31. The initial Plan Year shall commence on the date of this Agreement, and end on December 31st of that year. 

 

1.11   “Specified Employee” means an employee who, as of the date of his Termination of Employment, is a “key employee” of the Company or any member of a controlled group that includes the Company, any stock of which is actively traded on an established securities market or otherwise. An Employee is a key employee if he meets the requirements of Code Section 416(i)(1)(A)(i), (ii), or (iii) (applied in accordance with applicable regulations thereunder and without regard to Code Section 416(i)(5)) at any time during the 12-month period ending on December 31 of any Plan Year. Such Employee shall be treated as a key employee for the entire 12-month period beginning on the Specified Employee Effective Date.

 

1.12   "Termination for Cause" See Section 5.2.

 

1.13   "Termination of Service" means that the Director ceases to be a member of the Company’s Board of Directors for any reason, voluntarily or involuntarily, other than by reason of a leave of absence approved by the Company.

 

1.14   “Years of Service” means the total number of calendar years during which the Director serves on the Board of Directors.

 

Article 2

Lifetime Benefits

2.1      Normal Retirement Benefit. Upon Termination of Service on or after the Normal Retirement Date for reasons other than death, the Company shall pay to the Director the benefit described in this Section 2.1 in lieu of any other benefit under this Article.

 

2.1.1       Amount of Benefit. The annual benefit under this Section 2.1 is twelve thousand dollars ($12,000). The Company's Board of Directors, in its sole discretion, may increase the annual benefit under this Section 2.1.1; however, any increase shall require the recalculation of Schedule A.

 

 

2

 

  

2.1.2        Payment of Benefit. The Company shall pay the annual benefit to the Director in 12 equal monthly installments payable on the first day of each month commencing with the month following the Director’s Normal Retirement Date. The annual benefit shall be paid to the Director for ten (10) years. Payment to Specified Employees shall be made on the first day of the seventh (7th) month following Termination of Employment.

 

2.2           Early Termination Benefit. Upon Early Termination, the Company shall pay to the Director the benefit described in this Section 2.2 in lieu of any other benefit under this Agreement.

 

2.2.1        Amount of Benefit. The benefit under this Section 2.2 is the Early Termination Lump Sum Benefit set forth in Schedule A for the Plan Year ending immediately prior to the Early Termination Date, determined by vesting the Director in one hundred percent (100%) of the Accrual Balance on Schedule A. Any increase in the annual benefit under Section 2.1.1 shall require the recalculation of this benefit on Schedule A.

 

2.2.2        Payment of Benefit. The Company shall pay the benefit to the Director in a lump sum within sixty (60) days following Termination of Service. Payment to Specified Employees shall be made on the first day of the seventh (7th) month following Termination of Employment.

 

2.3           Disability Benefit. If the Director incurs a Termination of Service due to a Disability prior to Normal Retirement Age, the Company shall pay to the Director the benefit described in this Section 2.3 in lieu of any other benefit under this Agreement.

 

2.3.1       Amount of Benefit. The benefit under this Section 2.3 is the Disability Lump Sum Benefit set forth in Schedule A for the Plan Year ending immediately prior to the date in which Termination of Service occurs, determined by vesting the Director in one hundred percent (100%) percent of the Accrual Balance on Schedule A. Any increase in the annual benefit under Section 2.1.1 would require the recalculation of the Disability benefit on Schedule A.

 

2.3.2        Payment of Benefit. The Company shall pay the benefit amount to the Director in a lump sum within sixty (60) days following the Termination of Service. 

 

2.4          Change of Control Benefit. Upon Involuntary Termination of Service within twenty-four (24) months following a Change of Control, the Company shall pay to the Director the benefit described in this Section 2.4 in lieu of any other benefit under this Agreement. 

 

 

3

 

  

2.4.1       Amount of Benefit. The annual benefit under this Section 2.4 is the Change of Control Annual Benefit set forth in Schedule A for the Plan Year ending immediately prior to the date in which Termination of Service occurs, determined by vesting the Director in the one hundred percent (100%) of the Normal Retirement Benefit described in Section 2.1.1. Any increase in the annual benefit under Section 2.1.1 would require the recalculation of the Change of Control benefit on Schedule A.

 

2.4.2        Payment of Benefit. The Company shall pay the annual benefit amount to the Director in 12 equal monthly installments payable on the first day of each month commencing with the month following the Termination of Service unless the Director is a Specified Employee in which case the Company shall pay the annual benefit commencing with the seventh (7th) month following Termination of Employment. . The annual benefit shall be paid to the Director for ten (10) years.

 

 

Article 3

Death Benefits

 

Upon the Director’s death prior to Termination of Service, the Company shall pay to the Director's beneficiary the sum of (i) the Accrual Balance on Schedule A for the Plan Year ending immediately prior to the date of the Director’s death, plus (ii) the benefit described in the Split Dollar Agreement and Endorsement attached as Addendum A between the Company and the Director. The Company shall pay the benefit in (i) above to the Director’s beneficiary in a lump sum within 60 days following the Director’s death. 

 

Article 4

Beneficiaries

 

4.1     Beneficiary Designations. The Director shall designate a beneficiary by delivering a written designation to the Company. The Director may revoke or modify the designation at any time by delivering a new designation. However, designations will only be effective if signed by the Director and delivered to and received by the Company during the Director's lifetime. The Director's beneficiary designation shall be deemed automatically revoked if the beneficiary predeceases the Director or if the Director names a spouse as beneficiary and the marriage is subsequently dissolved. If the Director dies without a valid beneficiary designation, all payments shall be made to the personal representative of the Director's estate.

 

4.2     Facility of Payment. If a benefit is payable to a minor, to a person declared incompetent or to a person incapable of handling the disposition of his or her property, the Company may pay such benefit to the guardian, legal representative or person having the care or custody of such minor, incapacitated person or incapable person. The Company may require proof of incompetence, minority or guardianship as it may deem appropriate prior to distribution of the benefit. Such distribution shall completely discharge the Company from all liability with respect to such benefit.

 

 

4

 

  

Article 5

General Limitations

 

5.1     Excess Parachute Payment. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement to the extent the benefit would create an excise tax under the excess parachute rules of Section 280G of the Code. To the extent possible, such benefit payment shall be reduced to allow payment within the fullest extent permissible under applicable law.

 

5.2      Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, the Company shall not pay any benefit under this Agreement if the Company terminates the Director's service for:

 

(a)           Gross negligence or gross neglect of duties; or

(b)           Fraud, disloyalty, dishonesty or willful violation of any law or significant Company policy committed in connection with the Director's service and resulting in an adverse effect on the Company.

 

5.3     Suicide or Misstatement. The Company shall not pay any benefit under this Agreement if the Director commits suicide within three years after the date of this Agreement. In addition, the Company shall not pay any benefit under this Agreement if the Director has made any material misstatement of fact on a resume provided to the Company, or on any application for any benefits provided by the Company to the Director.

 

Article 6

Claims and Review Procedures

 

6.1      Claims Procedure. A Participant or beneficiary (“claimant”) who has not received benefits under the Plan that he or she believes should be paid shall make a claim for such benefits as follows:

6.1.1       Initiation – Written Claim. The claimant initiates a claim by submitting to the Company a written claim for the benefits. 

6.1.2       Timing of Company Response. The Company shall respond to such claimant within 90 days after receiving the claim. If the Company determines that special circumstances require additional time for processing the claim, the Company can extend the response period by an additional 90 days by notifying the claimant in writing, prior to the end of the initial 90-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Company expects to render its decision. 

 

 

5

 

 

6.1.3       Notice of Decision. If the Company denies part or all of the claim, the Company shall notify the claimant in writing of such denial. The Company shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:

6.1.3.1     The specific reasons for the denial, 

6.1.3.2     A reference to the specific provisions of the Plan on which the denial is based, 

6.1.3.3     A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed, 

6.1.3.4     An explanation of the Plan’s review procedures and the time limits applicable to such procedures, and 

6.1.3.5     A statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review. 

 

6.2      Review Procedure. If the Company denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Company of the denial, as follows:

6.2.1       Initiation – Written Request. To initiate the review, the claimant, within 60 days after receiving the Company’s notice of denial, must file with the Company a written request for review. 

6.2.2       Additional Submissions – Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim. The Company shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits. 

6.2.3      Considerations on Review. In considering the review, the Company shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. 

6.2.4       Timing of Company Response. The Company shall respond in writing to such claimant within 60 days after receiving the request for review. If the Company determines that special circumstances require additional time for processing the claim, the Company can extend the response period by an additional 60 days by notifying the claimant in writing, prior to the end of the initial 60-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Company expects to render its decision. 

6.2.5      Notice of Decision. The Company shall notify the claimant in writing of its decision on review. The Company shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:

6.2.5.1     The specific reasons for the denial, 

6.2.5.2     A reference to the specific provisions of the Plan on which the denial is based, 

6.2.5.3     A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits, and

6.2.5.4     A statement of the claimant’s right to bring a civil action under ERISA Section 502(a).

 

 

6

 

  

Article 7

Amendments and Termination

 

This Agreement may be amended or terminated only by a written agreement signed by the Company and the Director. Provided, however, unless otherwise agreed to by the Company and the Director, this Agreement will automatically terminate upon the Director’s Termination of Service prior to the Normal Retirement Age and payment in full by the Company of any benefits due to the Director under Sections 2.2, 2.3 or 2.4.

 

Notwithstanding the previous paragraph in this Article 7, the Company may amend or terminate this Agreement at any time if, pursuant to legislative, judicial or regulatory action, continuation of the Agreement would (i) cause benefits to be taxable to the Director prior to actual receipt, or (ii) result in significant financial penalties or other significantly detrimental ramifications to the Company (other than the financial impact of paying the benefits).

 

Article 8

Miscellaneous

 

8.1     Binding Effect. This Agreement shall bind the Director and the Company, and their beneficiaries, survivors, executors, successors, administrators and transferees.

 

8.2     No Guarantee of Service. This Agreement is not a contract for services. It does not give the Director the right to remain in the service of the Company, nor does it interfere with the shareholder's rights to discharge the Director. It also does not require the Director to remain in the service of the Company nor interfere with the Director's right to terminate services at any time.

 

8.3     Non-Transferability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.

 

8.4     Reorganization. The Company shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm, or person unless such succeeding or continuing company, firm, or person agrees to assume and discharge the obligations of the Company under this Agreement. Upon the occurrence of such event, the term “Company” as used in this Agreement shall be deemed to refer to the successor or survivor company.

 

8.5     Tax Withholding. The Company shall withhold any taxes that are required to be withheld from the benefits provided under this Agreement.

 

8.6     Applicable Law. The Agreement and all rights hereunder shall be governed by the laws of the State of California, except to the extent preempted by the laws of the United States of America.

 

8.7     Unfunded Arrangement. The Director and beneficiary are general unsecured creditors of the Company for the payment of benefits under this Agreement. The benefits represent the mere promise by the Company to pay such benefits. The rights to benefits are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors. Any insurance on the Director's life is a general asset of the Company to which the Director and beneficiary have no preferred or secured claim.

 

 

7

 

  

8.8      Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Director as to the subject matter hereof. No rights are granted to the Director by virtue of this Agreement other than those specifically set forth herein.

 

8.9      Administration. The Company shall have powers which are necessary to administer this Agreement, including but not limited to:

 

	 	
(a)
	
Interpreting the provisions of the Agreement;

 

	 	
(b)
	
Establishing and revising the method of accounting for the Agreement;

 

	 	
(c)
	
Maintaining a record of benefit payments; and

	 	 	 
	 	(d)	Establishing rules and prescribing any forms necessary or desirable to administer the Agreement.

     

8.10     Named Fiduciary. The Company shall be the named fiduciary and plan administrator under the Agreement. The named fiduciary may delegate to others certain aspects of the management and operation responsibilities of the plan including the Service of advisors and the delegation of ministerial duties to qualified individuals.

 

IN WITNESS WHEREOF, the Director and a duly authorized Company officer have signed this amended and restated Agreement.

 

	
DIRECTOR:  
	
 
	
COMPANY:
	
 

	 	 	OAK VALLEY COMMUNITY BANK	 
	 	 	 	 
	
/s/  H. RANDOLPH HOLDER
	
 
	
By
	
/s/ Richard A. McCarty
	
 

	 	 	 	 	 
	
H. RANDOLPH HOLDER
	
 
	
Title
	
Senior Executive Vice President/ Chief Administrative Officer
	
 

 

 

8

 

 

BENEFICIARY DESIGNATION

 

OAK VALLEY COMMUNITY BANK

DIRECTOR RETIREMENT AGREEMENT

 

H. RANDOLPH HOLDER

 

I designate the following as beneficiary of any death benefits under this Agreement:

 

	
Primary: 
	
 Betty Holder

	
 
	
 

	 	 

 

	
Contingent:
	
 Susan C. Holder

	 	 
	 	 

 

	
Note:
	
To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement.

 

I understand that I may change these beneficiary designations by filing a new written designation with the Company. I further understand that the designations will be automatically revoked if the beneficiary predeceases me, or, if I have named my spouse as beneficiary and our marriage is subsequently dissolved.

 

 

Signature  /s/ H. Randolph Holder                              

 

Date                10/13/16                                                 

 

 

Received by the Company this 18th day of October, 2016.

 

 

By  /s/ Richard A. McCarty                                      

 

Title  Senior Executive Vice President/ Chief Administrative Officer   

 

 

9

 

 

ADDENDUM A

 

OAK VALLEY COMMUNITY BANK

SPLIT DOLLAR AGREEMENT

 

 

THIS AGREEMENT is made and entered into this 4th day of October, 2016, by and between OAK VALLEY COMMUNITY BANK, a state-chartered commercial bank located in Oakdale, California (the "Company"), and H. RANDOLPH HOLDER (the "Director"). This Agreement shall append the Split Dollar Endorsement entered into on October 4, 2016, by and between the aforementioned parties.

 

 

INTRODUCTION

 

To encourage the Director to remain a member of the Company’s Board of Directors, the Company is willing to divide the death proceeds of a life insurance policy on the Director's life. The Company will pay life insurance premiums from its general assets.

 

Article 1

General Definitions

 

The following terms shall have the meanings specified:

 

1.1        “Insurer” means each life insurance carrier in which there is a Split Dollar Policy Endorsement attached to this Agreement.

 

1.2        “Policy” means the specific life insurance policy issued by the Insurer.

 

1.3        “Insured” means the Director.

 

1.4       “Termination of Service” means the Director ceases to be a member of the Company’s Board of Directors, for any reason whatsoever, other than by reason of a leave of absence approved by the Company.

 

Article 2

Policy Ownership/Interests

 

2.1        Company Ownership. The Company is the sole owner of the Policy and shall have the right to exercise all incidents of ownership. The Company shall be the direct beneficiary of the remaining death proceeds after the Director’s interest is paid pursuant to Article 2.2 below.

 

2.2       Director's Interest. The Director shall have the right to designate the beneficiary of death proceeds of the Policy in the amount of eighty thousand dollars ($80,000) while the Director is an active Director with the bank. When the Director terminates service per section 1.4 the benefit under this agreement ceases. 

 

 

10

 

  

2.3        Option to Purchase. The Company shall not sell, surrender or transfer ownership of the Policy while this Agreement is in effect without first giving the Director or the Director’s transferee the option to purchase the Policy for a period of sixty (60) days from written notice of such intention. The purchase price shall be an amount equal to the cash surrender value of the Policy. This provision shall not impair the right of the Company to terminate this Agreement.

 

Article 3

Premiums

 

3.1         Premium Payment. The Company shall pay any premiums due on the Policy.

 

3.2        Economic Benefit. The Company shall determine the economic benefit attributable to the Director based on the amount of the current term rate for the Director's age multiplied by the aggregate death benefit payable to the Director's beneficiary. The "current term rate" is the minimum amount required to be imputed under Revenue Rulings 64-328 and 66-110, or any subsequent applicable authority.

 

 

Article 4

Assignment

 

The Director may assign without consideration his interests in the Policy and in this Agreement to any person, entity or trust. In the event the Director transfers all of the Director’s interest in the Policy, then all of the Director's interest in the Policy and in the Agreement shall be vested in the Director’s transferee, who shall be substituted as a party hereunder and the Director shall have no further interest in the Policy or in this Agreement.

 

 

Article 5

Insurer

 

The Insurer shall be bound only by the terms of the Policy. Any payments the Insurer makes or actions it takes in accordance with the Policy shall fully discharge it from all claims, suits and demands of all entities or persons. The Insurer shall not be bound by or be deemed to have notice of the provisions of this Agreement.

 

 

11

 

 

Article 6

Claims Procedure

 

6.1      Claims Procedure. A Participant or beneficiary (“claimant”) who has not received benefits under the Plan that he or she believes should be paid shall make a claim for such benefits as follows:

6.1.1       Initiation – Written Claim. The claimant initiates a claim by submitting to the Company a written claim for the benefits. 

6.1.2       Timing of Company Response. The Company shall respond to such claimant within 90 days after receiving the claim. If the Company determines that special circumstances require additional time for processing the claim, the Company can extend the response period by an additional 90 days by notifying the claimant in writing, prior to the end of the initial 90-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Company expects to render its decision. 

6.1.3       Notice of Decision. If the Company denies part or all of the claim, the Company shall notify the claimant in writing of such denial. The Company shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:

6.1.3.1     The specific reasons for the denial, 

6.1.3.2     A reference to the specific provisions of the Plan on which the denial is based, 

6.1.3.3     A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed, 

6.1.3.4     An explanation of the Plan’s review procedures and the time limits applicable to such procedures, and 

6.1.3.5     A statement of the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review. 

 

6.2       Review Procedure. If the Company denies part or all of the claim, the claimant shall have the opportunity for a full and fair review by the Company of the denial, as follows:

6.2.1       Initiation – Written Request. To initiate the review, the claimant, within 60 days after receiving the Company’s notice of denial, must file with the Company a written request for review. 

6.2.2       Additional Submissions – Information Access. The claimant shall then have the opportunity to submit written comments, documents, records and other information relating to the claim. The Company shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits. 

6.2.3      Considerations on Review. In considering the review, the Company shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. 

6.2.4       Timing of Company Response. The Company shall respond in writing to such claimant within 60 days after receiving the request for review. If the Company determines that special circumstances require additional time for processing the claim, the Company can extend the response period by an additional 60 days by notifying the claimant in writing, prior to the end of the initial 60-day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Company expects to render its decision. 

 

 

12

 

 

6.2.5       Notice of Decision. The Company shall notify the claimant in writing of its decision on review. The Company shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth:

6.2.5.1     The specific reasons for the denial, 

6.2.5.2     A reference to the specific provisions of the Plan on which the denial is based, 

6.2.5.3     A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits, and

6.2.5.4     A statement of the claimant’s right to bring a civil action under ERISA Section 502(a).

 

Article 7

Amendments and Termination

 

This Agreement may be amended or terminated only by a written agreement signed by the Company and the Director. However, unless otherwise agreed to by the Company and the Director, this Agreement will automatically terminate upon the Director’s Termination of Service. 

 

Notwithstanding the previous paragraph in this Article 7, the Company may amend or terminate this Agreement at any time if, pursuant to legislative, judicial or regulatory action, continuation of the Agreement would result in significant financial penalties or other significantly detrimental ramifications to the Company (other than the financial impact of paying the benefits).

 

Article 8

Miscellaneous

 

8.1        Binding Effect. This Agreement shall bind the Director and the Company, their beneficiaries, survivors, executors, administrators and transferees, and any Policy beneficiary.

 

8.2        No Guarantee of Service. This Agreement is not a contract for services. It does not give the Director the right to remain in the service of the Company, nor does it interfere with the shareholder's rights to discharge the Director. It also does not require the Director to remain in the service of the Company nor interfere with the Director's right to terminate services at any time.

 

8.3        Applicable Law. The Agreement and all rights hereunder shall be governed by and construed according to the laws of the State of California, except to the extent preempted by the laws of the United States of America.

 

8.4       Reorganization. The Company shall not merge or consolidate into or with another company, or reorganize, or sell substantially all of its assets to another company, firm or person unless such succeeding or continuing company, firm or person agrees to assume and discharge the obligations of the Company.

 

 

13

 

 

8.5        Notice. Any notice, consent or demand required or permitted to be given under the provisions of this Split Dollar Agreement by one party to another shall be in writing, shall be signed by the party giving or making the same, and may be given either by delivering the same to such other party personally, or by mailing the same, by United States certified mail, postage prepaid, to such party, addressed to his or her last known address as shown on the records of the Company. The date of such mailing shall be deemed the date of such mailed notice, consent or demand.

 

8.6        Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Director as to the subject matter hereof. No rights are granted to the Director by virtue of this Agreement other than those specifically set forth herein.

 

8.7        Administration. The Company shall have powers which are necessary to administer this Agreement, including but not limited to:

 

(a)      Interpreting the provisions of the Agreement;

 

(b)      Establishing and revising the method of accounting for the Agreement;

 

(c)      Maintaining a record of benefit payments; and

 

(d)      Establishing rules and prescribing any forms necessary or desirable to administer the Agreement.

 

8.8      Named Fiduciary. For purposes of the Employee Retirement Income Security Act of 1974, if applicable, the Company shall be the named fiduciary and plan administrator under the Agreement. The named fiduciary may delegate to others certain aspects of the management and operation responsibilities of the plan including the employment of advisors and the delegation of ministerial duties to qualified individuals

 

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first above written.

 

	
 
	
COMPANY:
	
 

	 	OAK VALLEY COMMUNITY BANK	 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By
	
/s/ Richard A. McCarty
	
 

	
 
	
Title 
	
Senior Executive Vice President/ Chief Administrative Officer
	
 

	
 
	
 
	
 
	
 

	 	 	 	 
	 	DIRECTOR:	 
	 	 	 	 
	 	 /s/ H. RANDOLPH HOLDER	 
	 	H. RANDOLPH HOLDER	 

 

 

14 

 

 

Distribution Options

Director Retirement Plan

 

H. Randolph Holder

 

	
Event
	
Benefit Amount
	
Distribution Method

	
 

Normal Retirement (age 72)

Change of Control

 
	
Normal Retirement Benefit
	
10 years of monthly payments

	
Termination for Cause
	
No Benefit
	
N/A

	
Early Termination
	
Vested Portion of Accrual Balance
	
Immediate Lump Sum Payment

	
Disability
	
100% of the Accrual Balance
	
Immediate Lump Sum Payment

	
Pre-Retirement Death
	
 

Death Benefits equal to:

 

Present Value of Normal Retirement Benefit ($80,000) + 

 

100% of Accrual Balance

 
	
Lump Sum Tax-Free 

 

 

Immediate Lump Sum Taxable

	
Post-Retirement Death
	
Death Benefits equal to:

 

100% of Accrual Balance
	
Immediate Lump Sum Taxable

 

 

 

 

 

	
Schedule A- Holder

 

	
Values
	 	
Discount
	 	 	
Benefit 
	 	 	
Accrual 
	 	 	
Early
	 	 	 	 	 	 	
Change in
	 	 	 	 	 
	
as of
	 	
Rate
	 	 	
Level
	 	 	
Balance
	 	 	
Termination
	 	 	
Disability
	 	 	
Control
	 	 	
Death Benefit
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	
Annual Amount
	 	 	
Accrual Starts
	 	 	
Lump Sum Payable
	 	 	
Lump Sum Payable
	 	 	
Annual Amount For 10
	 	 	
Lump Sum
	 
	 	 	 	 	 	 	 	
For 10 years at age 72
	 	 	
7/1/2016
	 	 	
at Termination
	 	 	
at Termination
	 	 	
years at Termination
	 	 	
Payable at Death
	 
	
 Dec
	
2016
	 	 	4.50%	 	 	$	12,000 	 	 	$	2,756 	 	 	$	2,756 	 	 	$	2,756 	 	 	$	12,000 	 	 	$	2,756 	 
	
 Dec
	
2017
	 	 	4.50%	 	 	$	12,000 	 	 	$	8,594 	 	 	$	8,594 	 	 	$	8,594 	 	 	$	12,000 	 	 	$	8,594 	 
	
 Dec
	
2018
	 	 	4.50%	 	 	$	12,000 	 	 	$	14,951 	 	 	$	14,951 	 	 	$	14,951 	 	 	$	12,000 	 	 	$	14,951 	 
	
 Dec
	
2019
	 	 	4.50%	 	 	$	12,000 	 	 	$	21,864 	 	 	$	21,864 	 	 	$	21,864 	 	 	$	12,000 	 	 	$	21,864 	 
	
 Dec
	
2020
	 	 	4.50%	 	 	$	12,000 	 	 	$	29,368 	 	 	$	29,368 	 	 	$	29,368 	 	 	$	12,000 	 	 	$	29,368 	 
	
 Dec
	
2021
	 	 	4.50%	 	 	$	12,000 	 	 	$	37,503 	 	 	$	37,503 	 	 	$	37,503 	 	 	$	12,000 	 	 	$	37,503 	 
	
 Dec
	
2022
	 	 	4.50%	 	 	$	12,000 	 	 	$	46,311 	 	 	$	46,311 	 	 	$	46,311 	 	 	$	12,000 	 	 	$	46,311 	 
	
 Dec
	
2023
	 	 	4.50%	 	 	$	12,000 	 	 	$	55,836 	 	 	$	55,836 	 	 	$	55,836 	 	 	$	12,000 	 	 	$	55,836 	 
	
 Dec
	
2024
	 	 	4.50%	 	 	$	12,000 	 	 	$	66,124 	 	 	$	66,124 	 	 	$	66,124 	 	 	$	12,000 	 	 	$	66,124 	 
	
 Dec
	
2025
	 	 	4.50%	 	 	$	12,000 	 	 	$	77,225 	 	 	$	77,225 	 	 	$	77,225 	 	 	$	12,000 	 	 	$	77,225 	 
	
 Dec
	
2026
	 	 	4.50%	 	 	$	12,000 	 	 	$	89,121 	 	 	$	89,121 	 	 	$	89,121 	 	 	$	12,000 	 	 	$	89,121 	 
	
 Dec
	
2027
	 	 	4.50%	 	 	$	12,000 	 	 	$	97,058 	 	 	$	97,058 	 	 	$	97,058 	 	 	$	12,000 	 	 	$	97,058 	 

 

15

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