Document:

Exhibit 10.4

 

 

FORM OF EMPLOYEE AND DIRECTOR

INCENTIVE RESTRICTED SHARE PLAN

OF

AMERICAN REALTY CAPITAL NEW YORK CITY REIT, INC.

 

SECTION 1.          PURPOSES
OF THE PLAN AND DEFINITIONS

 

1.1           Purposes.
The purposes of the Employee and Director Incentive Restricted Share Plan (this “Plan”) of American Realty
Capital New York City REIT, Inc. (the “Company”) are to:

 

(1)         provide
incentives to selected Persons chosen to receive share-based awards because of their ability to improve operations and increase
profits of the Company;

 

(2)         encourage
the Advisor and other selected Persons to accept positions with or continue to provide services to the Company, the Advisor and
Affiliates of the Company, as applicable; and

 

(3)         increase
the interest of Directors in the Company’s welfare through their participation in the growth in value of the Company’s
Shares.

 

To accomplish these purposes, this Plan
provides a means whereby the Advisor and Affiliates of the Company, employees and officers of the Company, the Advisor and Affiliates
of the Company, Directors, and other enumerated Persons may receive Awards.

 

1.2           Definitions.
For purposes of this Plan, the following terms have the following meanings:

 

“Advisor” means
the Person or Persons, if any, appointed, employed or contracted with by the Company to be responsible for directing or performing
the day-to-day business affairs of the Company, including any Person to whom the Advisor subcontracts substantially all such functions.
The initial Advisor is New York City Advisors, LLC.

 

“Advisory Agreement”
shall mean that agreement dated           , 2014, by and among, the Company, the Advisor and New York City Operating Partnership, L.P.

 

“Affiliate” means
any Person (other than an Advisor), whose employees, directors or officers are eligible to receive Awards under this Plan. The
determination of whether a Person is an Affiliate shall be made by the Board acting in its sole and absolute discretion.

 

“Applicable Laws”
means the requirements relating to the administration of Awards under state corporation laws, U.S. federal and state securities
laws, the Code, any stock exchange or quotation system on which the Shares are listed or quoted and the applicable laws of any
foreign country or jurisdiction where Awards are, or will be, granted under this Plan. 

 

“Articles of Incorporation”
means the articles of incorporation of the Company, as the same may be amended from time to time.

 

“Award” means
any award of Restricted Shares under this Plan.

 

    	 

    	 

    

 

“Award Agreement”
means, with respect to each Award, the written agreement executed by the Company and the Participant or other written document
approved by the Board setting forth the terms and conditions of the Award.

 

“Board” means
the Board of Directors of the Company.

 

“Code” means the
Internal Revenue Code of 1986, as amended from time to time.

 

“Committee” means
the Board or a duly appointed committee of the Board to which the Board has delegated its powers and functions hereunder.

 

“Company” means
American Realty Capital New York City REIT, Inc.

 

“Director” means
a person elected or appointed and serving as a member of the Board in accordance with the Articles of Incorporation and the Maryland
General Corporation Law.

 

“Director Shares”
has the meaning set forth in Section 6.

 

“Effective Date”
has the meaning set forth in Section 15.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time.

 

“Fair Market Value”
means with respect to Shares:

 

(i)          If
the Shares are listed on any established stock exchange or a national market system, their Fair Market Value shall be the closing
sales price for the Shares, or the mean between the high bid and low asked prices if no sales were reported, as quoted on such
system or exchange (or, if the Shares are listed on more than one exchange, then on the largest such exchange) for the date the
value is to be determined (or if there are no sales or bids for such date, then for the last preceding business day on which there
were sales or bids), as reported in The Wall Street Journal.

 

(ii)         If
the Shares are regularly quoted by a recognized securities dealer but selling prices are not reported, or if there is no secondary
trading market for the Shares, their Fair Market Value shall be determined in good faith by the Board. 

 

“Grant Date” has
the meaning set forth in Section 5.1(c).

 

“Non-Employee Director”
means a person who is a Director of the Company, but who is not also an employee or officer of the Company or the Advisor.

 

“Participant”
means an eligible person who is granted an Award.

 

“Person” means
an individual, a corporation, partnership, trust, association, or any other entity.

 

“Plan” means this
Employee and Director Incentive Restricted Share Plan.

 

“Restricted Shares”
means an Award granted under Section 5.2.

 

“Retainer” has
the meaning set forth in Section 6.3.

 

“Rule 16b-3”
means Rule 16b-3 adopted under Section 16(b) or any successor rule, as it may be amended from time to time, and references to paragraphs
or clauses of Rule 16b-3 refer to the corresponding paragraphs or clauses of Rule 16b-3 as it exists at the Effective Date or the
comparable paragraph or clause of Rule 16b-3 or successor rule, as that paragraph or clause may thereafter be amended.

 

“Section 16(b)”
means Section 16(b) of the Exchange Act.

 

    	 

    	 

    

 

“Section 409A of
the Code” means the nonqualified deferred compensation rules under Section 409A of the Code and any applicable Treasury
regulation or other official guidance promulgated thereunder.

 

“Securities Act”
means the Securities Act of 1933, as amended from time to time.

 

“Shares” means
shares of common stock of the Company, $0.01 par value per share.

 

“Termination”
means that a Participant has ceased, for any reason and with or without cause, to be an employee or Director of, or a consultant
to, the Company, the Advisor or any Affiliate of the Company. However, the term “Termination” shall not include a transfer
of a Participant from the Company to the Advisor or any Affiliate of the Company or the Advisor or vice versa, or
from any such Affiliate to another, or a leave of absence duly authorized by the Company unless the Board has provided otherwise.

 

SECTION 2.          ELIGIBLE
PERSONS

 

Every Person who, at or as of the Grant
Date, is:

 

(a)          a
full-time employee of the Advisor, the Company or any Affiliate of the Company;

 

(b)          an
officer of the Company, the Advisor or any Affiliate of the Company;

 

(c)          a
Director of the Company;

 

(d)          a
director of the Advisor or any Affiliate of the Company; or

 

(e)          a
Person that the Board designates as eligible for an Award because such Person: 

 

(i)          performs
bona fide consulting or advisory services for the Company, the Advisor or any Affiliate of the Company pursuant to a written agreement
(other than services in connection with the offer or sale of securities in a capital-raising transaction), and

 

(ii)         has
a direct and significant effect on the financial development of the Company or any Affiliate of the Company,

 

shall be eligible to receive Awards hereunder.

 

Non-Employee Directors are only eligible to receive Awards under
Section 6.

 

SECTION 3.          SHARES
SUBJECT TO THIS PLAN

 

The total number of Shares that may be issued
pursuant to Awards shall not exceed 5.0% of the Company’s outstanding Shares on a fully diluted basis at any time and in
any event will not exceed 1,500,000 Shares. The number of Shares reserved for issuance under this Plan is subject to adjustment
in accordance with the provisions for adjustment in Section 5.1. If any Shares awarded under this Plan are forfeited for
any reason, the number of forfeited Shares shall again be available for purposes of granting Awards under this Plan.

 

SECTION 4.          ADMINISTRATION

 

4.1           Administration.
This Plan shall be administered by the Committee.

 

4.2           Committee’s
Powers. Subject to the express provisions of this Plan, the Committee shall have the authority, in its sole discretion:

 

(a)          to
adopt, amend and rescind administrative and interpretive rules and regulations relating to this Plan;

 

    	 

    	 

    

 

(b)          to
determine the eligible Persons to whom, and the time or times at which, Awards shall be granted;

 

(c)          to
determine the number of Shares that shall be the subject of each Award;

 

(d)          to
determine the terms and provisions of each Award (which need not be identical) and any amendments thereto, including provisions
defining or otherwise relating to:

 

(i)          the
extent to which the transferability of Shares issued or transferred pursuant to any Award is restricted;

 

(ii)         the
effect of Termination on an Award;

 

(iii)        the
effect of approved leaves of absence; and

 

(iv)        to
construe the respective Award Agreements and this Plan. 

 

(e)          to
make determinations of the Fair Market Value of Shares;

 

(f)          to
waive any provision, condition or limitation set forth in an Award Agreement;

 

(g)          to
delegate its duties under this Plan to such agents as it may appoint from time to time; and

 

(h)          to
make all other determinations, perform all other acts and exercise all other powers and authority necessary or advisable for administering
this Plan, including the delegation of those ministerial acts and responsibilities as the Committee deems appropriate.

 

The Committee may correct any defect, supply
any omission or reconcile any inconsistency in this Plan, in any Award or in any Award Agreement in the manner and to the extent
it deems necessary or desirable to implement this Plan, and the Committee shall be the sole and final judge of that necessity or
desirability. The determinations of the Committee on the matters referred to in this Section 4.2 shall be final and conclusive.
Notwithstanding any provision in this Plan to the contrary, Awards will be made to Non-Employee Directors only under Section
6 of this Plan. In addition, except as provided in Section 5.1(b) herein, the Committee may not in any manner exercise
discretion under this Plan with respect to any Awards made to Non-Employee Directors.

 

4.3           Term
of Plan. No Awards shall be granted under this Plan after 10 years from the Effective Date of this Plan.

 

SECTION 5.          CERTAIN
TERMS AND CONDITIONS OF AWARDS

 

5.1           All
Awards. All Awards shall be subject to the following terms and conditions:

 

(a)          Changes
in Capital Structure. If the number of outstanding Shares is increased by means of a share dividend payable in Shares, a share
split or other subdivision or by a reclassification of Shares, then, from and after the record date for such dividend, subdivision
or reclassification, the number and class of Shares subject to this Plan shall be increased or adjusted, as applicable, in proportion
to such increase in outstanding Shares. If the number of outstanding Shares is decreased by means of a reverse share split or other
combination or by a reclassification of Shares, then, from and after the record date for such combination or reclassification,
the number and class of Shares subject to this Plan shall be decreased or adjusted, as applicable, in proportion to such decrease
in outstanding Shares.

 

(b)          Certain
Corporate Transactions. In the event of any change in the capital structure or business of the Company by reason of any recapitalization,
reorganization, merger, consolidation, split-up, subdivision, combination, exchange of Shares or any similar change affecting the
Company’s capital structure or business, then the aggregate number and kind of Shares which thereafter may be issued under
this Plan shall be appropriately adjusted consistent with such change in such manner as the Committee may deem equitable to prevent
substantial dilution or enlargement of the rights granted to, or available for, Participants under this Plan, and any such adjustment
determined by the Committee in good faith shall be binding and conclusive on the Company and all Participants and employees and
their respective heirs, executors, administrators, successors and assigns.

 

    	 

    	 

    

 

 (c)          Grant
Date. Each Award Agreement shall specify the date as of which it shall be effective (the “Grant Date”).

 

(d)          Vesting.
Each Award shall vest, and any restrictions thereunder shall lapse, as the case may be, at such times and in such amounts as may
be specified by the Committee in the applicable Award Agreement.

 

(e)          Nonassignability
of Rights. Awards shall not be transferable other than with the consent of the Committee or by will or the laws of descent
and distribution.

 

(f)          Termination
from the Company, the Advisor or any Affiliate of the Company or Termination of the Advisory Agreement. The Committee shall
establish, in respect of each Award when granted, the effect of a Termination or termination of the Advisory Agreement on the rights
and benefits thereunder and in so doing may, but need not, make distinctions based upon the cause of termination (such as retirement,
death, disability or other factors) or which party effected the termination (the employer, the employee or the Advisor).

 

(g)          Minimum
Purchase Price. Notwithstanding any provision of this Plan to the contrary, if authorized but previously unissued Shares are
issued under this Plan, such Shares shall not be issued for a consideration which is less than as permitted under Applicable Laws,
and in no event, shall such consideration be less than the par value per Share multiplied by the number of Shares to be issued.

 

(h)          Other
Provisions. Each Award Agreement may contain such other terms, provisions and conditions not inconsistent with this Plan, as
may be determined by the Committee.

 

5.2           Restricted
Shares. Restricted Shares shall be subject to the following terms and conditions:

 

(a)          Grant.
The Committee may grant one or more Awards of Restricted Shares to any Participant. Each Award of Restricted Shares shall specify
the number of Shares to be issued to the Participant, the date of issuance and the restrictions imposed on the Shares including
the conditions of release or lapse of such restrictions. Upon the issuance of Restricted Shares, the Participant may be required
to furnish such additional documentation or other assurances as the Committee may require to enforce restrictions applicable thereto.

 

(b)          Restrictions.
Except as specifically provided elsewhere in this Plan or the Award Agreement regarding Restricted Shares, Restricted Shares may
not be sold, assigned, transferred, pledged or otherwise disposed of or encumbered, either voluntarily or involuntarily, until
the restrictions have lapsed and the rights to the Shares have vested. The Committee may in its sole discretion provide for the
lapse of such restrictions in installments and may accelerate or waive such restrictions, in whole or in part, based on service,
performance or such other factors or criteria as the Committee may determine. 

 

(c)          Dividends.
Unless otherwise determined by the Committee, cash dividends with respect to Restricted Shares shall be paid to the recipient of
the Award of Restricted Shares on the normal dividend payment dates, and dividends payable in Shares shall be paid in the form
of Restricted Shares having the same terms as the Restricted Shares upon which such dividend is paid. Each Award Agreement for
Awards of Restricted Shares shall specify whether and, if so, the extent to which the Participant shall be obligated to return
to the Company any cash dividends paid with respect to any Restricted Shares which are subsequently forfeited.

 

(d)          Forfeiture
of Restricted Shares. Except to the extent otherwise provided in the applicable Award Agreement, when a Participant’s
Termination occurs, the Participant shall automatically forfeit all Restricted Shares still subject to restriction.

 

    	 

    	 

    

 

SECTION 6.          DIRECTOR
SHARES

 

6.1           Automatic
Grant. Without further action of the Board or the Committee, Non-Employee Directors shall receive an Award of 1,333 Restricted
Shares on each of (i) the date of such Non-Employee Director’s initial election to the Board and (ii) on the date of each
annual stockholders’ meeting thereafter and, in each case, notwithstanding Section 5.1(c), each such date will be
the Grant Date of such Award.

 

6.2           Vesting.
Notwithstanding the provisions of Section 5.1(d), Awards of Restricted Shares made to Non-Employee Directors shall vest
over a five-year period following the first anniversary of the Grant Date in increments of 20% per annum.

 

6.3           Election.
The Company shall pay to each individual who is a Non-Employee Director an annual fee in the amount set from time to time by the
Board (the “Retainer”). Each Non-Employee Director shall be entitled to receive his or her Retainer exclusively
in cash, exclusively in unrestricted Shares (“Director Shares”) or any portion in cash and Director Shares.
Each Non-Employee Director shall be given the opportunity, during the month in which the Non-Employee Director first becomes a
Non-Employee Director, and during each December thereafter, to elect among these choices for the balance of the calendar year (in
the case of the election made during the month the Non-Employee Director first becomes a Non-Employee Director) and for the ensuing
calendar year (in the case of a subsequent election made during any December). If the Non-Employee Director chooses to receive
at least some of his or her Retainer in Director Shares, the election shall also indicate the percentage of the Retainer to be
paid in Director Shares. If a Non-Employee Director makes no election during his or her first opportunity to make an election,
the Non-Employee Director shall be assumed to have elected to receive his or her entire Retainer in cash.

 

6.4           Issuance.
The Company shall make the first issuance of Director Shares to electing Directors on the first business day following the last
day of the full calendar quarter following such election. Subsequent issuances of Director Shares shall be made on the first business
day of each subsequent calendar quarter and shall be made to all persons who are Non-Employee Directors on that day except any
Non-Employee Director whose Retainer is to be paid entirely in cash. The number of Shares issuable to those Non-Employee Directors
on the relevant date indicated above shall equal:

 

(% x R/4)/P, where: 

 

% = the percentage of the Non-Employee Director’s
Retainer that the Non-Employee Director elected or is deemed to have elected to receive in the form of Director Shares, expressed
as a decimal;

 

R = the Non-Employee Director’s Retainer
for the year during which the issuance occurs; and

 

P = the Fair Market Value.

 

Director Shares shall not include any fractional Shares. Fractions
shall be rounded to the nearest whole Share (with one-half being rounded upward).

 

SECTION 7.          SECURITIES
LAWS

 

Nothing in this Plan or in any Award or
Award Agreement shall require the Company to issue any Shares with respect to any Award if, in the opinion of counsel for the Company,
that issuance could constitute a violation of any Applicable Laws. As a condition to the grant of any Award, the Company may require
the Participant (or, in the event of the Participant’s death, the Participant’s legal representatives, heirs, legatees
or distributees) to provide written representations concerning the Participant’s (or such other person’s) intentions
with regard to the retention or disposition of the Shares covered by the Award and written covenants as to the manner of disposal
of such Shares as may be necessary or useful to ensure that the grant or disposition thereof will not violate the Securities Act,
any other law or any rule of any applicable securities exchange or securities association then in effect. The Company shall not
be required to register any Shares under the Securities Act or register or qualify any Shares under any state or other securities
laws.

 

    	 

    	 

    

 

SECTION 8.          EMPLOYMENT
OR OTHER RELATIONSHIP

 

Nothing in this Plan or any Award shall
in any way interfere with or limit the right of the Company, the Advisor or any Affiliate of the Company to terminate any Participant’s
employment or status as a consultant, advisor or Director at any time, nor confer upon any Participant any right to continue in
the employ of, or as a Director, consultant or advisor of, the Company, the Advisor or any Affiliate of the Company. Nothing in
this Plan shall interfere with the Company’s ability to terminate the Advisory Agreement in accordance with its terms.

 

SECTION 9.          AMENDMENT,
SUSPENSION AND TERMINATION OF THIS PLAN

 

The Board may at any time amend, suspend
or discontinue this Plan, provided that such amendment, suspension or discontinuance meets the requirements of Applicable Laws,
including without limitation, any applicable requirements for stockholder approval. Notwithstanding the above, an amendment, suspension
or discontinuation shall not be made if it would impair the rights of any Participant under any Award previously granted, without
the Participant’s consent, except to conform this Plan and Awards granted to the requirements of Applicable Laws. The provisions
of this Plan relating to Awards for Non-Employee Directors may not be amended more than once each six months. Notwithstanding any
provision of the Plan to the contrary, if the Board determines that any Award may be subject to Section 409A of the Code, the Board
may adopt such amendment to the Plan and the applicable Award Agreement or adopt other policies and procedures (including amendments,
policies and procedures with retroactive effect), or take any other actions that the Board determines are necessary or appropriate,
without the consent of the Participant, to (a) exempt the Award from Section 409A of the Code and/or preserve the intended tax
treatment of the benefits provided with respect to the Award, or (b) comply with the requirements of Section 409A of the Code. 

 

SECTION 10.         LIABILITY
AND INDEMNIFICATION OF THE BOARD

 

No person constituting, or member of the
group constituting, the Board shall be liable for any act or omission on such person’s part, including but not limited to
the exercise of any power or discretion given to such member under this Plan, except for those acts or omissions resulting from
such member’s gross negligence or willful misconduct. The Company shall indemnify each present and future person constituting,
or member of the group constituting, the Board against, and each person or member of the group constituting the Board shall be
entitled without further act on his or her part to indemnity from the Company for, all expenses (including the amount of judgments
and the amount of approved settlements made with a view to the curtailment of costs of litigation) reasonably incurred by such
person in connection with or arising out of any action, suit or proceeding to the fullest extent permitted by law and by the Articles
of Incorporation and Bylaws of the Company.

 

SECTION 11.         SEVERABILITY

 

If any provision of this Plan is held to
be illegal or invalid for any reason, that illegality or invalidity shall not affect the remaining portions of this Plan, but such
provision shall be fully severable and this Plan shall be construed and enforced as if the illegal or invalid provision had never
been included in this Plan. Such an illegal or invalid provision shall be replaced by a revised provision that most nearly comports
to the substance of the illegal or invalid provision. If any of the terms or provisions of this Plan or any Award Agreement conflict
with the requirements of Applicable Laws, those conflicting terms or provisions shall be deemed inoperative to the extent they
conflict with Applicable Law.

 

SECTION 12.         SECTION
409A OF THE CODE

 

Awards granted under the Plan are intended
to be exempt from Section 409A of the Code. To the extent that the Plan is not exempt from the requirements of Section 409A of
the Code, the Plan is intended to comply with the requirements of Section 409A of the Code and shall be limited, construed and
interpreted in accordance with such intent. Notwithstanding the foregoing, in no event whatsoever shall the Company be liable for
any additional tax, interest or penalty that may be imposed on a Participant by Section 409A of the Code or any damages for failing
to comply with Section 409A of the Code.

 

    	 

    	 

    

 

SECTION 13.         WITHHOLDING

 

The Company shall have the right to deduct
from any payment to be made to a Participant, or to otherwise require, prior to the issuance or delivery of any Shares or the payment
of any cash hereunder, payment by the Participant of, any federal, state or local taxes required by law to be withheld. Upon the
vesting of Restricted Shares, or upon making an election under Section 83(b) of the Code, a Participant shall pay all required
withholding to the Company. The Board may permit any such statutory withholding obligation with regard to any Participant to be
satisfied by reducing the number of Shares otherwise deliverable or by delivering Shares already owned.

  

SECTION 14.         GOVERNING
LAW

 

This Plan shall be governed and construed
in accordance with the laws of the State of Maryland (regardless of the law that might otherwise govern under applicable principles
of conflict of laws).

 

SECTION 15.         EFFECTIVE
DATE AND PROCEDURAL HISTORY

 

This Plan was originally approved by the
Company’s Board on           , 2014 (the “Effective Date”). It was approved in that form by the holders of
the Company’s voting Shares on           , 2014.Exhibit 10.5

 

FORM OF RESTRICTED SHARE AWARD AGREEMENT

 

PURSUANT TO THE

 

EMPLOYEE AND DIRECTOR INCENTIVE RESTRICTED
SHARE PLAN

OF

AMERICAN REALTY CAPITAL NEW YORK CITY
REIT, INC.

 

 

THIS RESTRICTED SHARE AWARD AGREEMENT (this
“Agreement”), made as __________, 201___, is by and between American Realty Capital New York City REIT, Inc.,
a Maryland corporation (the “Company”), and ___________ (the “Participant”).

 

WHEREAS, the Board of Directors of the Company
(the “Board”) adopted, and the stockholders of the Company approved, the Employee and Director Incentive Restricted
Share Plan of American Realty Capital New York City REIT, Inc. (as such plan may be amended from time to time, the “Plan”);

 

WHEREAS, as a non-employee director of the
Company, pursuant to Section 6.1 of the Plan, upon the date of your initial
election to the Board you were automatically granted shares of the Company’s common stock, par value $.01 per share
(“Common Stock”) as set forth below and will be automatically granted additional shares of Common Stock on the
date of each annual meeting of the Company’s stockholders after the date thereof that you remain a non-employee director
of the Company as set forth below; and

 

WHEREAS, such shares of Common Stock are subject
to certain restrictions prior to the vesting thereof as set forth herein.

 

NOW, THEREFORE, the Company and the Participant
agree as follows:

 

1.          Grant
of Shares. Subject to the terms, conditions and restrictions of
the Plan and this Agreement, as of each of (i) __________, 201____, the date of your initial election to the Board (the “Initial
Grant Date”), and (ii) the date of each annual meeting of the Company’s stockholders thereafter (each an “Annual
Grant Date”, and together with the Initial Grant Date, each a “Grant Date”),
pursuant to Section 6.1 of the Plan, you were or will be, as applicable, automatically granted 1,333 shares of duly authorized,
validly issued, fully paid and non-assessable Common Stock (the “Shares”).
To the extent required by applicable law, the Participant will pay the Company the par value ($.01) for each Share awarded to the
Participant simultaneously with the execution of this Agreement in cash or cash equivalents payable to the order of the Company.
Pursuant to the Plan and Sections 2 and 3 of this Agreement, the Shares are subject to certain restrictions, which restrictions
and possible risk of forfeiture will expire in accordance with the provisions of the Plan and Sections 2 and 3 hereof. While such
restrictions are in effect, the Shares subject to such restrictions will be referred to herein as “Restricted Shares”
and the period during which the Shares are subject to such restrictions will be referred to herein as the “Restriction
Period.” 

 

    	 

    	 

    

 

2.          Restrictions
on Transfer. The Participant will not sell, assign, transfer, pledge,
exchange, encumber, hypothecate or otherwise dispose of the Restricted Shares, except as set forth in the Plan or this Agreement.
Any attempted sale, assignment, transfer, pledge, exchange, encumbrance, hypothecation or other disposition of the Restricted Shares
in violation of the Plan or this Agreement will be void and of no effect and the Company will have the right to disregard the same
on its books and records and to issue “stop transfer” instructions to its transfer agent.

 

3.          Vesting.
Subject to the terms of the Plan and this Agreement, the Restricted Shares will vest and cease to be Restricted Shares, and accordingly,
the restrictions contained in Sections 2 and 5 will no longer apply (but the Shares will remain subject to Section 9) as follows:

 

(a)          Twenty
percent (20%) upon each of the first, second, third, fourth and fifth anniversaries of the applicable Grant Date (i.e.,
upon the anniversaries of the Initial Grant Date with respect to the Restricted
Shares granted upon the Participant’s initial election to the Board and upon the anniversaries of each applicable Annual
Grant Date for any Restricted Shares granted to the Participant on the date of an annual meeting of the Company’s stockholders),
subject in each case to the Participant not incurring a Termination prior to such vesting date.

 

(b)          Notwithstanding
Section 3(a), the Restricted Shares will become fully vested and cease to be Restricted Shares on the effective date of the consummation
of a Change in Control (as defined on Appendix A), subject to the Participant not incurring a Termination prior to such vesting
date.

 

(c)          There
will be no proportionate or partial vesting in the periods prior to the applicable vesting dates and all vesting will occur only
on the appropriate vesting date.

 

4.          Forfeiture.
If a Participant incurs a Termination for any reason, the Participant will automatically forfeit any unvested Restricted Shares
and the Company will acquire such unvested Restricted Shares for the amount paid by the Participant for such Restricted Shares
(or, if no amount was paid by the Participant for such Restricted Shares, then the Company will acquire such Restricted Shares
for no consideration).

 

5.          Rights
as a Holder of Restricted Shares. From and after the Grant Date,
the Participant will have, with respect to the Restricted Shares, all of the rights of a holder of shares of Common Stock, including,
without limitation, the right to vote the Shares, to receive and retain all regular cash distributions payable to holders of Shares
of record on and after the Grant Date (although such distributions will be treated, to the extent required by applicable law, as
additional compensation for tax purposes), and to exercise all other rights, powers and privileges of a holder of Shares with respect
to the Restricted Shares, with the exception that: (i) to the extent the Company issues a distribution in the form other than a
cash distribution, including in the form of Shares or other property, such distribution will be subject to the same restrictions
that are then applicable to the Restricted Shares under the Plan and this Agreement and such restrictions will expire at the same
time as the restrictions on the Restricted Shares expire; and (ii) the Participant may not sell, assign, transfer, pledge, exchange,
encumber, hypothecate or otherwise dispose of the Restricted Shares during the Restriction Period. 

 

    	2

    	 

    

 

6.          Taxes;
Section 83(b) Election. The Participant will be solely responsible
for all applicable foreign, Federal, state, local or other taxes with respect to the Restricted Shares; provided, however, that
at any time the Company is required to withhold any such taxes, the Participant acknowledges that (i) no later than the date on
which any Restricted Shares will have become vested, the Participant will pay to the Company, or make arrangements satisfactory
to the Company regarding payment of, any Federal, state, local or other taxes of any kind required by law to be withheld with respect
to any Restricted Shares which will have become so vested; (ii) the Company will, to the extent permitted by law, have the right
to deduct from any payment of any kind otherwise due to the Participant any Federal, state or local or other taxes of any kind
required by law to be withheld with respect to any Restricted Shares which will have become so vested, including that the Company
may, but will not be required to, sell a number of Restricted Shares sufficient to cover applicable withholding taxes; and (iii)
in the event that the Participant does not satisfy (i) above on a timely basis, the Company may, but will not be required to, pay
such required withholding and, to the extent permitted by Applicable Law, treat such amount as a demand loan to the Participant
at the maximum rate permitted by law, with such loan, at the Company’s sole discretion and provided the Company so notifies
the Participant within thirty (30) days of the making of the loan, secured by the Restricted Shares and any failure by the Participant
to pay the loan upon demand will entitle the Company to all of the rights at law of a creditor secured by the Restricted Shares.
The Company may hold as security any certificates representing any Restricted Shares and, upon demand of the Company, the Participant
will deliver to the Company any certificates in his or her possession representing the Restricted Shares together with a stock
power duly endorsed in blank. The Participant also acknowledges that it is his or her sole responsibility, and not the Company’s,
to file timely and properly any election under Section 83(b) of the Code, and any corresponding provisions of state tax laws, if
the Participant wishes to utilize such election. Although the Company makes no guarantee with respect to the tax treatment
of the Restricted Shares, the award of Restricted Shares pursuant to this Agreement is intended to be exempt from Section 409A
of the Code and will be limited, construed and interpreted in accordance
with such intent. With respect to any distributions and other property issued in respect of the Shares, however, this Agreement
is intended to comply with, or to be exempt from, the applicable requirements of Section 409A of the Code and will be limited,
construed and interpreted in accordance with such intent. In no event whatsoever
will the Company or any of its affiliates be liable for any additional tax, interest or penalties that may be imposed on the Participant
by Section 409A of the Code or any damages for failing to comply with Section 409A of the Code.

 

7.          No
Obligation to Continue Employment or Service. This Agreement is
not an agreement of employment or service. Neither the execution of this Agreement nor the issuance of the Restricted Shares hereunder
constitute an agreement by the Company or any of its Affiliates to employ or retain, or to continue to employ or retain, the Participant
during the entire, or any portion of, the term of this Agreement, including, but not limited to, any period during which any Restricted
Shares are outstanding, nor does it modify in any respect the Company or its Affiliate’s right to terminate or modify the
Participant’s service or compensation.

 

8.          Legend.
In the event that a certificate evidencing the Restricted Shares is issued, the certificate representing the Restricted Shares
will have endorsed thereon the following legends:

 

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(a)          
“THE ANTICIPATION, ALIENATION, ATTACHMENT, SALE, TRANSFER, ASSIGNMENT, PLEDGE, ENCUMBRANCE OR CHARGE OF THE SHARES OF STOCK
REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE EMPLOYEE AND DIRECTOR INCENTIVE RESTRICTED
SHARE PLAN OF AMERICAN REALTY CAPITAL NEW YORK CITY REIT, INC. (THE “COMPANY”) (AS SUCH PLAN MAY BE AMENDED FROM TIME
TO TIME, THE “PLAN”) AND AN AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND THE COMPANY DATED AS OF ______________,
201__. COPIES OF SUCH PLAN AND AGREEMENT ARE ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.”

 

(b)          Any
legend required to be placed thereon by applicable blue sky laws of any state.

 

Notwithstanding the foregoing,
in no event will the Company be obligated to issue a certificate representing the Restricted Shares prior to vesting as set forth
in Section 3 hereof.

 

9.          Securities
Representations. The Shares are being issued to the Participant
and this Agreement is being made by the Company in reliance upon the following express representations and warranties of the Participant.

 

The Participant acknowledges, represents and
warrants that:

 

(a)          the
Participant has been advised that the Participant may be an “affiliate” within the meaning of Rule 144 under the Securities
Act of 1933, as amended (the “Act”), currently or at the time the Participant desires to sell the Shares following
the vesting of the Restricted Shares, and in this connection the Company is relying in part on the Participant’s representations
set forth in this section.

 

(b)          If
the Participant is deemed an affiliate within the meaning of Rule 144 of the Act, the Shares must be held indefinitely unless an
exemption from any applicable resale restrictions is available or the Company files an additional registration statement (or a
“re-offer prospectus”) with regard to such Shares.

 

(c)          The
Company is under no obligation to register the Shares (or to file a “re-offer prospectus”).

 

(d)          If
the Participant is deemed an affiliate within the meaning of Rule 144 of the Act, the Participant understands that the exemption
from registration under Rule 144 will not be available unless (i) a public trading market then exists for the Common Stock, (ii)
adequate information concerning the Company is then available to the public, and (iii) other terms and conditions of Rule 144 or
any exemption therefrom are complied with; and that any sale of the Shares may be made only in limited amounts in accordance with
such terms and conditions.

 

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10.          Power
of Attorney. The Company, its successors and assigns, is hereby
appointed the attorney-in-fact, with full power of substitution, of the Participant for the purpose of carrying out the provisions
of this Agreement and taking any action and executing any instruments which such attorney-in-fact may deem necessary or advisable
to accomplish the purposes hereof, which appointment as attorney-in-fact is irrevocable and coupled with an interest. The Company,
as attorney-in-fact for the Participant, may in the name and stead of the Participant, make and execute all conveyances, assignments
and transfers of the Restricted Shares provided for herein, and the Participant hereby ratifies and confirms that which the Company,
as said attorney-in-fact, will do by virtue hereof. Nevertheless, the Participant will, if so requested by the Company, execute
and deliver to the Company all such instruments as may, in the judgment of the Company, be advisable for this purpose.

 

11.          Miscellaneous.

 

(a)          This
Agreement will inure to the benefit of and be binding upon the parties hereto and their respective heirs, personal legal representatives,
successors, trustees, administrators, distributees, devisees and legatees. The Company may assign to, and require, any successor
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to expressly assume and agree in writing to perform this Agreement. Notwithstanding the foregoing, the Participant
may not assign this Agreement or any of the Participant’s rights, interests or obligations hereunder. 

 

(b)          This
award of Restricted Shares will not affect in any way the right or power of the Board or stockholders of the Company to make or
authorize an adjustment, recapitalization or other change in the capital structure or the business of the Company, any merger or
consolidation of the Company or subsidiaries, any issue of bonds, debentures, preferred or prior preference stock ahead of or affecting
the Restricted Shares, the dissolution or liquidation of the Company, any sale or transfer of all or part of its assets or business
or any other corporate act or proceeding.

 

(c)          The
Participant agrees that the award of the Restricted Shares hereunder is special incentive compensation and that it, any dividends
paid thereon (even if treated as compensation for tax purposes) will not be taken into account as “salary” or “compensation”
or “bonus” in determining the amount of any payment under any pension, retirement or profit-sharing plan of the Company
or any life insurance, disability or other benefit plan of the Company.

 

(d)          No
modification or waiver of any of the provisions of this Agreement will be effective unless in writing and signed by the party against
whom it is sought to be enforced.

 

(e)          This
Agreement may be executed in one or more counterparts (including by facsimile transmission), each of which will be deemed an original,
but all of which together will constitute one and the same instrument.

 

(f)          The
failure of any party hereto at any time to require performance by another party of any provision of this Agreement will not affect
the right of such party to require performance of that provision, and any waiver by any party of any breach of any provision of
this Agreement will not be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the provision
itself, or a waiver of any right under this Agreement.

 

    	5

    	 

    

 

(g)          The
headings of the sections of this Agreement have been inserted for convenience of reference only and will in no way restrict or
modify any of the terms or provisions hereof.

 

(h)          All
notices, consents, requests, approvals, instructions and other communications provided for herein will be in writing and validly
given or made when delivered, or on the second succeeding business day after being mailed by registered or certified mail, whichever
is earlier, to the persons entitled or required to receive the same, addressed, in the case of the Company to the President of
the Company at the principal office of the Company and, in the case of the Participant, at the address most recently on
file with the Company.

 

(i)          This
Agreement will be construed, interpreted and governed and the legal relationships of the parties determined in accordance with
the internal laws of the State of Maryland without reference to rules relating to conflicts of law.

 

(j)          If
any provision of this Agreement will be held invalid or unenforceable, such invalidity or unenforceability will not affect any
other provisions hereof, and this Agreement will be construed and enforced as if such provisions had not been included.

 

12.          Provisions
of Plan Control. This Agreement is subject to all the terms, conditions
and provisions of the Plan, including, without limitation, the amendment provisions thereof, and to such rules, regulations and
interpretations relating to the Plan as may be adopted thereunder and as may be in effect from time to time. The Plan is incorporated
herein by reference. A copy of the Plan has been delivered to the Participant. If and to the extent that this Agreement conflicts
or is inconsistent with the terms, conditions and provisions of the Plan, the Plan will control, and this Agreement will be deemed
to be modified accordingly. Unless otherwise indicated, any capitalized term used but not defined herein will have the meaning
ascribed to such term in the Plan. This Agreement contains the entire understanding of the parties with respect to the subject
matter hereof (other than any other documents expressly contemplated herein or in the Plan) and supersedes any prior agreements
between the Company and the Participant.

 

[Signature Page Follows]

 

    	6

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed as of the date first above written.

 

	 	American Realty Capital New York City REIT, Inc.
	 	 
	 	By:	 
	 	 	 
	 	 	Name:
	 	 	Title:

 

	Participant	 
	 	 
	 	 
	[Name]	 

 

    	7

    	 

    

 

APPENDIX A

 

“Change in Control” means and includes
any of the following events:

 

(i)          any
Person is or becomes Beneficial Owner (as defined under Rule 13d-3 of the Exchange Act), directly or indirectly, of securities
of the Company representing thirty percent (30%) or more of the combined voting power of the then outstanding securities of the
Company, excluding (A) any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (x)
of subsection (ii) below and (B) any Person who becomes such a Beneficial Owner through the issuance of such securities
with respect to purchases made directly from the Company; or

 

(ii)          the
consummation of a merger or consolidation of the Company with any other Person or the issuance of voting securities of the Company
in connection with a merger or consolidation of the Company (or any direct or indirect subsidiary of the Company) pursuant to applicable
stock exchange requirements, other than (x) a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or any parent thereof) thirty percent (30%) or more of the combined voting
power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger
or consolidation, or (y) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction)
in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing thirty
percent (30%) or more of the combined voting power of the then outstanding securities of the Company; or

 

(iii)          the
consummation of a sale or disposition by the Company of all or substantially all of the assets of the Company; or

 

(iv)          persons
who, as of the Grant Date, constitute the Board (the “Incumbent Directors”) cease for any reason, including,
without limitation, as a result of a tender offer, proxy contest, merger or similar transaction, to constitute at least a majority
of the Board, provided that any person becoming a director of the Company subsequent to such date shall be considered an
Incumbent Director if such person’s election was approved by or such person was nominated for election a vote of at least
a majority of the Incumbent Directors.

 

    	8

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