Document:

FOURTH AMENDMENT

TO

AMENDED AND RESTATED AGREEMENT OF LIMITED
PARTNERSHIP

OF

ARC PROPERTIES OPERATING PARTNERSHIP,
L.P.

 

This FOURTH AMENDMENT TO AMENDED AND RESTATED
AGREEMENT OF LIMITED PARTNERSHIP OF ARC PROPERTIES OPERATING PARTNERSHIP, L.P. (this “Amendment”), is made as
of December 28, 2012 by and among American Realty Capital Properties, Inc., a Maryland corporation (the “REIT”),
in its capacity as the general partner (the “General Partner”) of ARC Properties Operating Partnership, L.P.,
a Delaware limited partnership (the “Partnership”). Capitalized terms used but not otherwise defined in this
Amendment shall have the meanings given to such terms in the Amended and Restated Agreement of Limited Partnership of the Partnership,
dated as of September 6, 2011, as amended (the “Partnership Agreement”).

 

RECITALS:

 

WHEREAS, pursuant to Section 11.01
of the Partnership Agreement, the parties hereto desire to make certain amendments to the Partnership Agreement to specially
allocate depreciation deductions to ARC Real Estate Partners, LLC, a Delaware limited liability company and a limited partner of
the Partnership, who has agreed to bear the economic risk of loss with respect to such depreciation;

 

WHEREAS, pursuant to Section 11.01(c)
of the Partnership Agreement, an amendment that alters the Partnership’s allocation of Profits and Loss to the Limited Partners,
requires the written consent of a Majority in Interest (other than the Percentage Interests held by the REIT in its capacity as
a Limited Partner of the Partnership);

 

NOW THEREFORE, in consideration of
the premises made hereunder, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto, intending to be legally bound, hereby agree as follows:

 

		1.	The defined term “Limited Partner” in the preamble of the Partnership Agreement is hereby changed to “Contributing
Limited Partner” and all corresponding references to “the Limited Partner” throughout the Partnership Agreement
are hereby changed to references to “the Contributing Limited Partner.”

 

		2.	Article I of the Partnership Agreement is hereby amended to insert the following new defined terms in the appropriate alphabetical
order:

 

““Contributing
Limited Partner” has the meaning set forth in the preamble.”

 

““Depreciation”
means, for each fiscal year or other period, an amount equal to the depreciation, amortization, or other cost recovery deduction
allowable for federal income tax purposes with respect to an asset for such fiscal year or other period, except that (a) with respect
to any asset the Gross Asset Value of which differs from its adjusted tax basis for federal income tax purposes at the beginning
of such fiscal year or other period and which difference is being eliminated by use of the “remedial method” as defined
by Section 1.704-3(d) of the Regulations, Depreciation for such fiscal year or other period shall be the amount of book basis recovered
for such fiscal year or other period under the rules prescribed by Section 1.704-3(d)(2) of the Regulations, and (b) with respect
to any other asset the Gross Asset Value of which differs from its adjusted tax basis for federal income tax purposes at the beginning
of such fiscal year or other period, Depreciation shall be an amount which bears the same ratio to such beginning Gross Asset Value
as the federal income tax depreciation, amortization, or other cost recovery deduction for such fiscal year or other period bears
to such beginning adjusted tax basis; provided, however, that in the case of clause (b) above, if the adjusted tax
basis for federal income tax purposes of an asset at the beginning of such fiscal year or other period is zero, Depreciation shall
be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the General Partner.”

 

    	 

    	 

    

 

 

““Gross
Asset Value” means, with respect to any asset of the Partnership, such asset’s adjusted basis for federal income
tax purposes, except as follows:

 

(a)the initial Gross
Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value of such asset, without
reduction for liabilities, as determined by the contributing Partner and the Partnership on the date of contribution thereof;

 

(b)if the General
Partner determines that an adjustment is necessary or appropriate to reflect the relative economic interests of the Partners, the
Gross Asset Values of all Partnership assets shall be adjusted in accordance with Sections 1.704-1(b)(2)(iv)(f) and (g) of the
Regulations to equal their respective gross fair market values, without reduction for liabilities, as reasonably determined by
the General Partner, as of the following times:

 

(i)a Capital Contribution
(other than a de minimis Capital Contribution) to the Partnership by a new or existing Partner as consideration for a Partnership
Interest;

 

(ii)the distribution
by the Partnership to a Partner of more than a de minimis amount of Partnership assets as consideration for the repurchase
or redemption of a Partnership Interest;

 

(iii)the liquidation
of the Partnership within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Regulations; and

 

(iv)the grant of
an interest in the Partnership (other than a de minimis interest) as consideration for the provision of services to or for
the benefit of the Partnership by an existing Partner acting in a partner capacity, or by a new Partner acting in a partner capacity
or in anticipation of becoming a Partner;

 

(c)the Gross Asset
Values of Partnership assets distributed to any Partner shall be the gross fair market values of such assets (taking Section 7701(g)
of the Code into account) without reduction for liabilities, as determined by the General Partner as of the date of distribution;
and

 

(d)the Gross Asset
Values of Partnership assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets
pursuant to Sections 734(b) or 743(b) of the Code, but only to the extent that such adjustments are taken into account in determining
Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations; provided, however, that Gross Asset
Values shall not be adjusted pursuant to this paragraph (d) to the extent that the General Partner determines that an adjustment
pursuant to paragraph (b) above is necessary or appropriate in connection with a transaction that would otherwise result in an
adjustment pursuant to this paragraph (d).

 

At all times, Gross Asset
Values shall be adjusted by any Depreciation taken into account with respect to the Partnership’s assets for purposes of
computing Net Income and Net Loss.”

 

    	 

    	 

    

 

 

““Property
Profit” means for each fiscal year or other applicable period, an amount equal to the Partnership’s Profit for
such year or period from the disposition of Property.”

 

		3.	Section 2.04 of the Partnership Agreement is hereby amended by adding the following subsection (d) at the end thereof:

 

“(d)If
the Contributing Limited Partner’s Capital Account has a deficit balance (after giving effect to all contributions, distributions
and allocations under Article V for all taxable years, including the year in which such liquidation occurs), the Contributing Limited
Partner shall restore and contribute to the capital of the Partnership, the amount necessary to restore such deficit balance to
zero but not to exceed the excess of (i) the cumulative amount of Depreciation specially allocated to the Contributing Limited
Partner under Section 5.01(g) over (ii) the cumulative chargeback allocation of Property Profit pursuant to Section 5.01(h). This
deficit restoration obligation is intended to comply with Section 1.704-1(b)(2)(ii)(b)(3) of the Regulations and shall be satisfied
before the later to occur of (i) the end of the taxable year in which the Partnership (or the Contributing Limited Partner’s
interest in the Partnership) is liquidated or (ii) ninety (90) days after of the liquidation of the Partnership (or the Contributing
Limited Partner’s interest in the Partnership), which amount shall be paid to creditors of the Partnership or, if the amount
contributed exceeds the amount due to creditors, shall be distributed to Partners with positive Capital Account balances.”

 

		4.	Section 5.01 of the Partnership Agreement is hereby amended by adding the following subsections (g) and (h) at the end thereof:

 

“(g)Special Allocations of Depreciation.
Depreciation shall be allocated first to the Contributing Limited Partner until the cumulative amount of Depreciation allocated
to the Contributing Limited Partner pursuant to this Section 5.01(g) for all years equals $10,000,000.

 

(h) Special Allocation of
Property Profit. After giving effect to the allocation in Section 5.01(b) and to the extent not previously allocated pursuant
to Section 5.01(b), Property Profit shall be allocated first to the Contributing Limited Partner to the extent of the cumulative
amount of Depreciation allocated to the Contributing Limited Partner pursuant to section 5.01(g).”

 

		5.	The first sentence of Section 5.01(f) of the Partnership Agreement is hereby deleted in its entirety and the following sentence
is substituted in its place:

 

““Profit” means any item
of income or gain of the Partnership, and “Loss” means any item of loss, expense, deduction or credit; in each
case determined in accordance with federal income tax accounting principles, as modified by Regulations Section 1.704-1(b)(2)(iv),
provided, that neither Profit nor Loss shall include items of income, gain and expense that are specially allocated pursuant
to Sections 5.01(b), (c), (d), (g) or (h) hereof.”

 

		6.	Section 8.04(a) of the Partnership Agreement is hereby amended by inserting the following sentence as the penultimate sentence
thereof:

 

    	 

    	 

    

 

 

“The Contributing
Limited Partner shall not be permitted to exercise the OP Unit Redemption Right unless and until it does not have a deficit balance
in its Capital Account.”

 

		7.	The effectiveness of the amendments, changes, deletions and substitutions to the Partnership Agreement contained in this Amendment
are conditioned upon the receipt of the written consent of a Majority in Interest pursuant to the written consent included as Exhibit
A hereto.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned, intending to be legally bound hereby, have duly executed this Agreement as of the date and year first aforesaid.

 

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

 

    	[Signature Page to Fourth Amendment to Amended
and Restated Agreement of Limited Partnership]

    	 

    

 

EXHIBIT A

 

WRITTEN CONSENT

 

IN WITNESS WHEREOF, the undersigned, constituting
a Majority in Interest of ARC Properties Operating Partnership, L.P., a Delaware limited partnership (the “Partnership”)
within the meaning of Section 11.01 of the Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of
September 6, 2011, as amended (the “Partnership Agreement”), hereby consent to the foregoing Fourth Amendment
to the Partnership Agreement, effective as of December 28, 2012.

 

This Written Consent may
be executed (including by facsimile or other electronic transmission) with counterpart signature pages or in several counterparts,
each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

 

	 	LIMITED PARTNERS:
	 	 
	 	
        ARC REAL ESTATE PARTNERS, LLC

         

	 	 
	 	 
	 	By:	 
	 	Name:	Nicholas S. Schorsch
	 	Title:	Manager
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	William M. Kahane
	 	Title:	Manager
	 	 	 
	 	 	 

 

 

 

 

    	[Signature Page to Exhibit A Written Consent]INDEMNITY AGREEMENT

 

This INDEMNITY AGREEMENT (this “Agreement”)
is made and entered into as of December 28, 2012, by ARC Real Estate Partners, LLC, a Delaware limited liability company (the “Indemnitor”),
in favor of American Realty Capital Properties, Inc., a Maryland corporation (the “Company”).

 

RECITALS

 

WHEREAS, in connection with that
certain Credit Agreement, dated as of September 7, 2011, by and among ARC Properties Operating Partnership, L.P., a Delaware limited
partnership, as borrower (the “OP”), the Company, and RBS Citizens, N.A., a national banking association (“RBS
Citizens”), Capital One, National Association, and Bank of America, N.A., as lenders (the “Lenders”),
and RBS Citizens in its respective capacities as “Administrative Agent” for itself and the other Lenders and
as “L/C Issuer” and “Lead Arranger” (as such terms are defined in the Credit Agreement, and
the Lenders, Administrative Agent, L/C Issuer and Lead Arranger, together with their respective successors and assigns, are collectively
the “Credit Parties”), as amended by that certain First Amendment to Credit Agreement, dated as of December
6, 2011 (the “First Amendment”), as further amended by that certain Second Amendment to Credit Agreement, dated
as of May 21, 2012 (the “Second Amendment”), as further amended by that certain Third Amendment to Credit Agreement,
dated as of August 16, 2012 (the “Third Amendment”), as further amended by that certain Fourth Amendment to
Credit Agreement, dated as of September 28, 2012 (the “Fourth Amendment”), as further amended by that certain
Fifth Amendment to Credit Agreement, dated as of December 7, 2012 (the “Fifth Amendment”) (said Credit Agreement,
as so amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, and
as from time to time may be further amended, modified, or restated, the “Credit Agreement”), the Lenders have
agreed to provide the OP a revolving credit loan facility in the amount of up to $145,000,000, pursuant to which the OP has borrowed
at least $111,750,000 (the “Loan”).

 

WHEREAS, in connection with that
certain Parent Guaranty Agreement, executed as of September 7, 2011, by the Company for the benefit of the Credit Parties, the
Company guaranteed, as a guaranty of payment and not merely as a guaranty of collection, the prompt payment when due of all obligations
under the Credit Agreement, including the Loan (the “Parent Guaranty”).

 

WHEREAS, in connection with that
certain Subsidiary Guaranty Agreement, executed as of September 7, 2011, by each subsidiary identified therein (collectively, the
“Subsidiary Guarantors”; the Company and the Subsidiary Guarantors, each a “Guarantor” and
collectively, the “Guarantors”) for the benefit of the Credit Parties, the Subsidiary Guarantors guaranteed,
as a guaranty of payment and not merely as a guaranty of collection, the prompt payment when due of all obligations under the Credit
Agreement, including the Loan (the “Subsidiary Guaranty”).

 

WHEREAS, the Indemnitor is a limited
partner of the OP and has obtained direct or indirect benefits from the Lenders making the Loan to the OP.

 

    	 

    	 

    

 

 

NOW, THEREFORE, in consideration
of the promises contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Indemnitor and Company hereby agree as follows:

 

1.Subject
to Section 3 hereof, if any of the Guarantors shall make a payment (or be required to make a payment) pursuant to the Parent
Guaranty or the Subsidiary Guaranty (any such payment, a “Payment”), the Company shall promptly deliver written
notice thereof (a “Payment Notice”) to the Indemnitor, which Payment Notice shall (a) state the amount of such
Payment (the “Payment Amount”) and (b) provide evidence of payment of same (or, provide evidence of obligation
to make such payment).

 

2.Subject
to Section 3 hereof, the Indemnitor shall be required, within fifteen (15) days after receipt of a Payment Notice, to reimburse
the Company for the Payment Amount; provided, that the Indemnitor’s obligation to reimburse the Company for the Payment
Amount shall not exceed $10,000,000 (the “Indemnity Amount”), and; provided further, that to the extent
a Payment is made (or is required to be made) by a Subsidiary Guarantor (a “Subsidiary Payment”), the Company
shall (a) pay the Indemnity Amount paid by the Indemnitor to the Company with respect to such Subsidiary Payment to the OP and
(b) cause the OP to pay such amount to the Subsidiary Guarantor.

 

3.Notwithstanding
anything to the contrary contained in this Agreement:

 

(a)
in the event that any of the Guarantors shall make (or be required to make) a Payment at a time when the OP has assets (including
the assets of the Subsidiary Guarantors) available to satisfy the Loan, no payment shall be required under this Agreement to the
extent of the fair market value (“FMV”) of such assets determined at the time such Payment is made (or required
to be made); and

 

(b)
The Indemnity Amount, at any time, shall be limited to the excess of (i) the cumulative amount allocated to the Indemnitor
pursuant to Section 5.01(g) of the Amended and Restated Agreement of Limited Partnership of the OP, dated as of September 6, 2011,
as amended from time to time (the “OP Agreement”) over (ii) the cumulative amount allocated to the Indemnitor
pursuant to Section 5.01(h) of the OP Agreement.

 

4.If
the Indemnitor shall fail to make a payment of any amount due under this Agreement within the period set forth herein, the Indemnitor
shall indemnify and hold harmless the Guarantors from and against any actual cost or actual damage or liability suffered by the
Guarantors in connection therewith (including, without limitation, reasonable legal fees and expenses). Any amount paid by the
Indemnitor under this Section 4 that relates to the Payment Amount set forth in the Payment Notice delivered to the Indemnitor
(and not to other damages, costs, etc.) shall be applied as a reduction to the Indemnity Amount owed by the Indemnitor under this
Agreement.

 

5.The
obligations of the Indemnitor under this Agreement are independent of the obligations of the Guarantors under the Parent Guaranty
and the Subsidiary Guaranty. The Indemnitor’s liability for any amount payable hereunder shall be limited to the Indemnity
Amount, subject to Section 3 hereof.

 

    	 

    	 

    

 

 

6.The
Indemnitor hereby warrants and represents to the Company and agrees with the Company that this Agreement constitutes the legal,
valid and binding obligation of the Indemnitor, and is fully enforceable against the Indemnitor in accordance with its terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors’ rights generally and to principles of equity.

 

7.The
Indemnitor waives notice of acceptance of this Agreement and all presentment, demand, protest, notice of protest and notices of
default or dishonor of any obligation indemnified hereby and all other suretyship defenses generally. Except as otherwise provided
herein, no extensions of time or other indulgence by the Company granted to the Indemnitor will release or affect the obligations
of the Indemnitor hereunder and no act, omission or delay on the part of the Company in exercising any rights hereunder or in taking
any action to collect or enforce this Agreement shall be a waiver of any such right or affect the obligation of the Indemnitor
hereunder.

 

The obligations under this Agreement shall
not be impaired by any bankruptcy, insolvency, arrangement, assignment for the benefit of creditors, reorganization or other debtor
relief proceedings under any federal or state law, whether now existing or hereafter enacted with respect to the Company.

 

8.(a)
Unless terminated sooner, as provided in this Section 8, this Agreement shall terminate on the tenth (10th) anniversary
of the date hereof (the “Termination Date”) unless prior to such date the Company has made a claim hereunder,
in which event this Agreement shall be extended until the resolution of such claim, but only to the extent and to the amount of
such claim. The Indemnitor may terminate its obligations under this Agreement on (a) the thirteen (13) month anniversary of the
date hereof (the “Initial Electoral Period”) and (b) again on each subsequent twelve (12) month anniversary
of the Initial Election Period by providing written notice to the Company within 60 days of the Initial Election Period or each
expiration of the subsequent twelve (12) month term. The Termination Date shall be accelerated to the time the Indemnitor disposes,
directly or indirectly, of its entire interest in the OP in a taxable transaction.

 

(b) If, as of the Termination Date, the
FMV of the assets of the OP, including the assets of the Subsidiary Guarantors (in the aggregate, the “Entity Assets”),
available for satisfaction of the Loan shall be less than the amount of the Indemnitor’s obligation under this Agreement
(the “Obligation”), the Indemnitor shall pay the Company the amount by which the Obligation exceeds the FMV
of the Entity Assets.

 

(c) For purposes of this Agreement, any
dispute respecting the FMV of the Entity Assets shall be resolved as follows: the Company and the Indemnitor each shall pick an
appraiser qualified to value the Entity Assets. If the lower of the two appraisals is at least 90% of the higher appraisal, then
(i) the two appraisers shall select a third appraiser qualified to value the Entity Assets, (ii) such third appraiser shall select
from the two existing appraisals the one that is closer to the third appraiser’s determination of the FMV of the Entity Assets,
and (iii) the FMV of the Entity Assets shall equal the amount of such selected appraisal.

 

    	 

    	 

    

 

 

(d) Notwithstanding anything in this Agreement
to the contrary, the termination of this Agreement pursuant to this Section 8 shall not release the Indemnitor from any
payment obligations it incurred under this Agreement prior to the Termination Date.

 

(e) The Indemnitor’s liability under
this Agreement shall be extinguished upon the payment in full of all obligations under this Agreement.

 

9.If
the Indemnitor is required to pay any amount hereunder, the Indemnitor shall have no, and hereby waives any, (a) rights of subrogation
that it might otherwise have at law or in equity or otherwise on account of such payment, and (b) rights of contribution or other
rights it might have at law or in equity or otherwise on account of such payment.

 

10.The
Company shall have all rights available to it in law or in equity. No delay or failure by the Company to exercise any right or
remedy against the Indemnitor will be construed as a waiver of that right or remedy. All remedies of the Company against the Indemnitor
are cumulative.

 

11.The
whole of this Agreement is set forth herein, and there is no verbal or other written agreement, and no understanding or custom
affecting the terms hereof. This Agreement can be modified only by a written instrument signed by the parties with respect to whom
the modification is made.

 

12.This
Agreement may be executed in multiple counterparts, and each such counterpart shall be considered an original, but all of which
together shall constitute one and the same instrument.

 

13.If
any provision of this Agreement shall be held to be prohibited or invalid under applicable law, such provision shall be ineffective
only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement. This Agreement shall be governed and construed pursuant to laws of the State of New York and shall be binding
upon and inure to the benefit of the respective successors and assigns of the parties hereto.

 

 

 

[SIGNATURE PAGE
FOLLOWS]

 

    	 

    	 

    

 

 

IN WITNESS WHEREOF, the parties acknowledge
their agreement with the foregoing by executing this Agreement in the space provided below.

 

 

 

 

	 	INDEMNITOR:
	 	 
	 	
        ARC REAL ESTATE PARTNERS, LLC

         

	 	 
	 	 
	 	By:	/s/ Nicholas S. Schorsch
	 	Name:	Nicholas S. Schorsch
	 	Title:	Manager
	 	 	 
	 	 	 
	 	By:	/s/ 
	 	Name:	William M. Kahane
	 	Title:	Manager
	 	 	 
	 	 	 

  

	 	INDEMNITEE:
	 	 
	 	AMERICAN REALTY CAPITAL PROPERTIES, INC.
	 	 
	 	 
	 	By:	/s/ Nicholas S. Schorsch
	 	Name:	Nicholas S. Schorsch
	 	Title:	Chairman and Chief Executive Officer

 

 

    	[Signature Page to Indemnity Agreement by
ARC Real Estate Partners, LLC]

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