Document:

Exhibit 10.4- Long-Term Incentive Plan  (1)

Exhibit 10.4

NORTHSTAR/RXR NEW YORK METRO INCOME, INC. 
LONG-TERM INCENTIVE PLAN

NORTHSTAR/RXR NEW YORK METRO INCOME, INC. 
LONG TERM INCENTIVE PLAN

	
			
	 
	 
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	ARTICLE 1  PURPOSE
	 
	1

	1.1    General
	 
	1

	ARTICLE 2  DEFINITIONS
	 
	1

	2.1    Definitions
	 
	1

	ARTICLE 3  PLAN EFFECTIVE DATE; TERMINATION OF PLAN    
	 
	6

	3.1    Plan Effective Date
	 
	6

	3.2    Termination of Plan
	 
	6

	ARTICLE 4  ADMINISTRATION
	 
	6

	4.1    Committee
	 
	6

	4.2    Actions and Interpretations by the Committee
	 
	7

	4.3    Authority of Committee
	 
	7

	4.4    Award Notifications
	 
	8

	ARTICLE 5  SHARES SUBJECT TO THE PLAN
	 
	8

	5.1    Number of Shares
	 
	8

	5.2    Share Counting
	 
	8

	5.3    Stock Distributed
	 
	9

	ARTICLE 6  ELIGIBILITY
	 
	9

	6.1    General
	 
	9

	ARTICLE 7  STOCK OPTIONS
	 
	9

	7.1    General
	 
	9

	7.2    Incentive Stock Options
	 
	10

	ARTICLE 8  STOCK APPRECIATION RIGHTS
	 
	10

	8.1    Grant of Stock Appreciation Rights
	 
	10

	ARTICLE 9  RESTRICTED STOCK, RESTRICTED STOCK UNITS AND DEFERRED STOCK UNITS
	 
	11

	9.1    Grant of Restricted Stock, Restricted Stock Units and Deferred Stock Units
	 
	11

	9.2    Issuance and Restrictions
	 
	11

	9.3    Forfeiture
	 
	11

	9.4    Delivery of Restricted Stock
	 
	11

	ARTICLE 10 PERFORMANCE AWARDS
	 
	12

	10.1    Grant of Performance Awards
	 
	12

	10.2    Performance Goals
	 
	12

	ARTICLE 11  DIVIDEND EQUIVALENTS
	 
	12

	11.1    Grant of Dividend Equivalents
	 
	12

	ARTICLE 12  OTHER AWARDS
	 
	12

	12.1    Grant of Other Awards
	 
	12

	ARTICLE 13  PROVISIONS APPLICABLE TO AWARDS
	 
	13

	13.1    Term of Awards
	 
	13

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	13.2    Form of Payment for Awards
	 
	13

	13.3    Limits on Transfer
	 
	13

	13.4    Beneficiaries
	 
	13

	13.5    Stock Trading Restrictions
	 
	14

	13.6    Acceleration upon Death or Disability
	 
	14

	13.7    Acceleration upon a Change in Control
	 
	14

	13.8    Acceleration for Any Reason
	 
	15

	13.9    Forfeiture Events
	 
	15

	13.10    Substitute Awards
	 
	15

	ARTICLE 14  CHANGES IN CAPITAL STRUCTURE
	 
	15

	14.1    Mandatory Adjustments
	 
	15

	14.2    Discretionary Adjustments
	 
	16

	14.3    General
	 
	16

	ARTICLE 15  AMENDMENT, MODIFICATION AND TERMINATION    
	 
	16

	15.1    Amendment, Modification and Termination
	 
	16

	15.2    Awards Previously Granted
	 
	16

	15.3    Compliance Amendments
	 
	17

	ARTICLE 16  GENERAL PROVISIONS
	 
	17

	16.1    Rights of Participants
	 
	17

	16.2    Withholding
	 
	18

	16.3    Special Provisions Related to Section 409A of the Code
	 
	18

	16.4    Unfunded Status of Awards
	 
	19

	16.5    Relationship to Other Benefits
	 
	19

	16.6    Expenses
	 
	19

	16.7    Titles and Headings
	 
	19

	16.8    Gender and Number
	 
	19

	16.9    Fractional Shares
	 
	19

	16.10    Government and Other Regulations
	 
	20

	16.11    Governing Law
	 
	20

	16.12    Additional Provisions
	 
	20

	16.13    No Limitations on Rights of Company
	 
	20

	16.14    Indemnification
	 
	20

    
        
    
    
    
    

    

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NORTHSTAR/RXR NEW YORK METRO INCOME, INC. 
LONG TERM INCENTIVE PLAN

ARTICLE 1
PURPOSE

1.1.    GENERAL.       The purpose of the NorthStar/RXR New York Metro Income, Inc. Long Term Incentive Plan (the “Plan”) is to enable NorthStar/RXR New York Metro Income, Inc. (the “Company”) and its Affiliates (as defined below) to (1) provide an incentive to employees, officers, directors and consultants to increase the value of the Company’s common stock, (2) give such persons a stake in the Company’s future that corresponds to the stake of each of the Company’s stockholders, and (3) obtain or retain the services of these persons who are considered essential to the Company’s long-term success, by offering such persons an opportunity to participate in the Company’s growth through ownership of the Company’s common stock or through other equity-related awards. Accordingly, the Plan permits the grant of incentive awards from time to time to selected employees, officers, directors and consultants of the Company and its Affiliates.

ARTICLE 2
DEFINITIONS

2.1.    DEFINITIONS.        When a word or phrase appears in this Plan with the initial letter capitalized, and the word or phrase does not commence a sentence, the word or phrase shall generally be given the meaning ascribed to it in this Section or in Section 1.1 unless a clearly different meaning is required by the context.  The following words and phrases shall have the following meanings:

(a)“Affiliate” means (i) any Subsidiary or Parent, or (ii) an entity that directly or through one or more intermediaries controls, is controlled by or is under common control with, the Company, as determined by the Committee.

(b)“Award” means any Option, Stock Appreciation Right, Restricted Stock, Restricted Stock Unit, Deferred Stock Unit, Performance Award, Dividend Equivalent, Other Award, or any other right or interest relating to Stock or cash, granted to a Participant under the Plan.

(c)“Award Notification” means a written document, in such form as the Committee prescribes from time to time, setting forth the terms and conditions of an Award.  Award Notifications may be in the form of individual award agreements or certificates or a program document describing the terms and provisions of an Award or series of Awards under the Plan.  The Committee may provide for the use of electronic or internet Award Notifications, and the use of electronic or internet means for the acceptance thereof and actions thereunder by a Participant.

(d)“Beneficial Owner” shall have the meaning given such term in Rule 13d-3 of the General Rules and Regulations under the 1934 Act. 

(e)“Board” means the Board of Directors of the Company.

(f)“Cause” as a reason for a Participant’s termination of employment shall have the meaning assigned such term in the employment, severance or similar agreement, if any, between such Participant and the Company or an Affiliate; provided, however, that if there is no such employment, severance or similar agreement in which such term is defined, and unless otherwise 

defined in the applicable Award Notification, “Cause” shall mean any of the following acts by the Participant, as determined by the Committee: gross neglect of duty, prolonged absence from duty without the consent of the Company, material breach by the Participant of any published Company code of conduct or code of ethics; or willful misconduct, misfeasance or malfeasance of duty which is reasonably determined to be detrimental to the Company. With respect to a Participant’s termination of directorship, “Cause” means an act or failure to act that constitutes cause for removal of a director under applicable Maryland law.  The determination of the Committee as to the existence of “Cause” shall be conclusive on the Participant and the Company.  

(g)“Change in Control” means and includes the occurrence of any one of the following events but shall specifically exclude a Public Offering:

(i)    individuals who, on the Plan Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided that any person becoming a director after the Plan Effective Date and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to the election or removal of directors (“Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director; or

(ii)    any Person becomes a Beneficial Owner, directly or indirectly, of either (A) 35% or more of the then-outstanding shares of common stock of the Company (“Company Common Stock”) or (B) securities of the Company representing 35% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting Securities”); provided, however, that for purposes of this subsection (ii), the following acquisitions of Company Common Stock or Company Voting Securities shall not constitute a Change in Control: (w) an acquisition directly from the Company, (x) an acquisition by the Company or a Subsidiary, (y) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (iii) below); or

(iii)    the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or a Subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another corporation or other entity (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and entities who were the Beneficial Owners, respectively, of the outstanding Company Common Stock and outstanding Company Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly, more than 35% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such transaction owns the Company or all or 

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substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their ownership, immediately prior to such Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no Person (other than (x) the Company or any Subsidiary, (y) the Surviving Entity or its ultimate parent entity, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the Beneficial Owner, directly or indirectly, of 35% or more of the total common stock or 35% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”); or

(iv)    approval by the stockholders of the Company of a complete liquidation or dissolution of the Company. 

(h)“Charter” means the articles of incorporation of the Company, as such articles of incorporation may be amended from time to time. 

(i) “Code” means the Internal Revenue Code of 1986, as amended from time to time.  For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision.

(j)“Committee” means the committee of the Board described in Article 4.

(k)“Company” means NorthStar/RXR New York Metro Income, Inc., a Maryland corporation, or any successor corporation.

(l)“Continuous Status as a Participant” means the absence of any interruption or termination of service as an employee, officer, director, consultant or advisors of the Company or any Affiliate, as applicable; provided, however, that for purposes of an Incentive Stock Option “Continuous Status as a Participant” means the absence of any interruption or termination of service as an employee of the Company or any Parent or Subsidiary, as applicable, pursuant to applicable tax regulations.  Continuous Status as a Participant shall not be considered interrupted in the following cases: (i) a Participant transfers employment between the Company and an Affiliate or between Affiliates, or (ii) in the discretion of the Committee as specified at or prior to such occurrence, in the case of a spin-off, sale or disposition of the Participant’s employer from the Company or any Affiliate, or (iii) any leave of absence authorized in writing by the Company prior to its commencement; provided, however, that for purposes of Incentive Stock Options, no such leave may exceed 90 days, unless reemployment upon expiration of such leave is guaranteed by statute or contract.  If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 91st day of such leave any Incentive Stock Option held by the Participant shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option.  Whether military, government or other service or other leave of absence shall constitute a termination of Continuous Status as a Participant shall be determined in each case by the Committee at its discretion, and any determination by the Committee shall be final and conclusive.  

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(m)“Deferred Stock Unit” means a right granted to a Participant under Article 9 to receive Shares (or the equivalent value in cash or other property if the Committee so provides) at a future time as determined by the Committee, or as determined by the Participant within guidelines established by the Committee in the case of voluntary deferral elections.

(n)“Disability” of a Participant means that the Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Participant’s employer.  If the determination of Disability relates to an Incentive Stock Option, Disability means Permanent and Total Disability as defined in Section 22(e)(3) of the Code.  In the event of a dispute, the determination of whether a Participant is Disabled will be made by the Committee and may be supported by the advice of a physician competent in the area to which such Disability relates.

(o)“Dividend Equivalent” means a right granted to a Participant under Article 11.

(p)“Eligible Participant” means an employee, officer, consultant or director of the Company or any Affiliate.

(q)“Exchange” means any national securities exchange on which the Stock may from time to time be listed or traded.

(r)“Fair Market Value,” on any date, means (i) if the Stock is listed on a securities exchange, the closing sales price on such exchange or over such system on such date or, in the absence of reported sales on such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Stock is not listed on a securities exchange, the mean between the bid and offered prices as quoted by the applicable interdealer quotation system for such date, provided that if the Stock is not quoted on such interdealer quotation system or it is determined that the fair market value is not properly reflected by such quotations, Fair Market Value will be determined by such other method as the Committee determines in good faith to be reasonable and in compliance with Code Section 409A.

(s)“Grant Date” of an Award means the first date on which all necessary corporate action has been taken to approve the grant of the Award as provided in the Plan, or such later date as is determined and specified as part of that authorization process.  Notice of the grant shall be provided to the grantee within a reasonable time after the Grant Date.

(t)“Incentive Stock Option” means an Option that is intended to be an incentive stock option and meets the requirements of Section 422 of the Code or any successor provision thereto.

(u)“Independent Director” means a director of the Company who is not a common law employee of the Company and who meets the additional requirements set forth for an “independent director” in the Charter.  

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(v)“Nonstatutory Stock Option” means an Option that is not an Incentive Stock Option.

(w)“NS/RXR OP” means NorthStar/RXR Operating Partnership, LP, a Delaware limited partnership of which the Company is the sole general partner.

(x)“NS/RXR OP Interests” means limited partnership interests in NS/RXR OP that may be exchanged or redeemed for Shares on a one-for-one basis, or any profits interest in NS/RXR OP that may be exchanged or converted into such limited partnership interests.

(y)“Option” means a right granted to a Participant under Article 7 of the Plan to purchase Stock at a specified price during specified time periods.  An Option may be either an Incentive Stock Option or a Nonstatutory Stock Option.

(z)“Other Award” means a right granted to a Participant under Article 12.

(aa)“Parent” means a corporation, limited liability company, partnership or other entity which owns or beneficially owns a majority of the outstanding voting stock or voting power of the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Parent shall have the meaning set forth in Section 424(e) of the Code.

(bb)    “Participant” means a person who, as an employee, officer, director or  consultant of the Company or any Affiliate, has been granted an Award under the Plan; provided that in the case of the death of a Participant, the term “Participant” refers to a beneficiary designated pursuant to Section 13.4 or the legal guardian or other legal representative acting in a fiduciary capacity on behalf of the Participant under applicable state law and court supervision.

(cc)    “Performance Award” means any award granted under the Plan pursuant to Article 10.

(dd)    “Person” means any individual, entity or group, within the meaning of Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3) or 14(d)(2) of the 1934 Act.

(ee)    “Plan” means the NorthStar/RXR New York Metro Income, Inc. Long Term Incentive Plan, as amended from time to time.

(ff)    “Plan Effective Date” has the meaning assigned such term in Section 3.1.

(gg)    “Public Offering” shall occur on the closing date of a public offering of any class or series of the Company’s equity securities pursuant to a registration statement filed by the Company under the 1933 Act.

(hh)    “Restricted Stock” means Stock granted to a Participant under Article 9 that is subject to certain restrictions and to risk of forfeiture.

(ii)    “Restricted Stock Unit” means a right granted to a Participant under Article 9 to receive shares of Stock (or the equivalent value in cash or other property if the Committee so provides) in the future, which right is subject to certain restrictions and to risk of forfeiture.

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(jj)    “Shares” means shares of the Company’s Stock.  If there has been an adjustment or substitution pursuant to Section 14.1, the term “Shares” shall also include any shares of stock or other securities that are substituted for Shares or into which Shares are adjusted pursuant to Section 14.1.

(kk)    “Stock” means the $0.01 par value common stock of the Company and such other securities of the Company as may be substituted for Stock pursuant to Section 14.1.

(ll)    “Stock Appreciation Right” or “SAR” means a right granted to a Participant under Article 8 to receive a payment equal to the difference between the Fair Market Value of a Share as of the date of exercise of the SAR over the grant price of the SAR, all as determined pursuant to Article 8.

(mm)    “Subsidiary” means any corporation, limited liability company, partnership or other entity of which a majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company. Notwithstanding the above, with respect to an Incentive Stock Option, Subsidiary shall have the meaning set forth in Section 424(f) of the Code.

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

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

ARTICLE 3
PLAN EFFECTIVE DATE; TERMINATION OF PLAN

3.1.    PLAN EFFECTIVE DATE.       The Plan shall be effective as of the date it is approved by both the Board and the stockholders of the Company (the “Plan Effective Date”).

3.2.    TERMINATION OF PLAN.       The Plan shall terminate on the tenth anniversary of the Plan Effective Date unless earlier terminated as provided herein.  The termination of the Plan on such date shall not affect the validity of any Award outstanding on the date of termination, which shall continue to be governed by the applicable terms and conditions of this Plan.  Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten (10) years after the earlier of (a) adoption of this Plan by the Board, or (b) the Plan Effective Date.

ARTICLE 4
ADMINISTRATION

4.1.    COMMITTEE.       The Plan shall be administered by a Committee appointed by the Board (which Committee shall consist of at least two directors) or, at the discretion of the Board from time to time, the Plan may be administered by the Board.  The members of the Committee shall be appointed by, and may be changed at any time and from time to time in the discretion of, the Board.  It is intended that at least two of the directors appointed to serve on the Committee shall be “non-employee directors” (within the meaning of Rule 16b-3 promulgated under the 1934 Act) and that any such members of the Committee who do not so qualify shall abstain from participating in any decision to make or administer Awards that are made to Eligible Participants who at the time of consideration for such Award are persons subject to the short-swing 

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profit rules of Section 16 of the 1934 Act.  However, the mere fact that a Committee member shall fail to qualify as a “non-employee director” or shall fail to abstain from such action shall not invalidate any Award made by the Committee which Award is otherwise validly made under the Plan.  The members of the Committee shall be appointed by, and may be changed at any time and from time to time in the discretion of, the Board.  The Board may reserve to itself any or all of the authority and responsibility of the Committee under the Plan or may act as administrator of the Plan for any and all purposes.  To the extent the Board has reserved any authority and responsibility or during any time that the Board is acting as administrator of the Plan, it shall have all the powers of the Committee hereunder, and any reference herein to the Committee (other than in this Section 4.1) shall include the Board.  To the extent any action of the Board under the Plan conflicts with actions taken by the Committee, the actions of the Board shall control.

4.2.    ACTION AND INTERPRETATIONS BY THE COMMITTEE.       For purposes of administering the Plan, the Committee may from time to time adopt rules, regulations, guidelines and procedures for carrying out the provisions and purposes of the Plan and make such other determinations, not inconsistent with the Plan, as the Committee may deem appropriate.  The Committee’s interpretation of the Plan, any Awards granted under the Plan, any Award Notification and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties.  Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Affiliate, the Company’s or an Affiliate’s independent certified public accountants, Company counsel or any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan.

4.3.    AUTHORITY OF COMMITTEE.       The Committee has the exclusive power, authority and discretion to:

		
	(a)
	grant Awards;

		
	(b)
	designate Participants;

(c)    determine the type or types of Awards to be granted to each Participant;

(d)    determine the number of Awards to be granted and the number and type of Shares, NS/RXR OP Interests or dollar amount to which an Award will relate;

(e)    determine the terms and conditions of any Award granted under the Plan;

(f)    prescribe the form of each Award Notification, which need not be identical for each Participant;

(g)    decide all other matters that must be determined in connection with an Award;

(h)    establish, adopt or revise any rules, regulations, guidelines or procedures as it may deem necessary or advisable to administer the Plan;

(i)    make all other decisions and determinations that may be required under the Plan or as the Committee deems necessary or advisable to administer the Plan;

(j)    amend the Plan or any Award Notification as provided herein; and

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(k)    adopt such modifications, procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of non-U.S. jurisdictions in which the Company or any Affiliate may operate, in order to assure the viability of the benefits of Awards granted to participants located in such other jurisdictions and to meet the objectives of the Plan.

4.4.    AWARD NOTIFICATIONS.       Each Award shall be evidenced by an Award Notification.  Each Award Notification shall include such provisions, not inconsistent with the Plan, as may be specified by the Committee.

ARTICLE 5
SHARES SUBJECT TO THE PLAN

5.1.    NUMBER OF SHARES.      Subject to adjustment as provided in Sections 5.2 and Section 14.1, the aggregate number of Shares reserved and available for issuance pursuant to Awards granted under the Plan shall be 2,000,000.  The maximum number of Shares that may be issued upon exercise of Incentive Stock Options granted under the Plan shall be 2,000,000. The maximum number of Shares that may be issued upon the exercise or grant of an Award granted under the Plan shall not exceed, in the aggregate, an amount equal to 10% of the outstanding Shares on the Grant Date. 

5.2.    SHARE COUNTING.       Shares covered by an Award shall be subtracted from the Plan share reserve as of the date of grant, but shall be added back to the Plan share reserve in accordance with this Section 5.2.
 
(a)    To the extent that an Award is canceled, terminates, expires, is forfeited or lapses for any reason, any unissued or forfeited Shares subject to the Award will again be available for issuance pursuant to Awards granted under the Plan.

(b)    Shares subject to Awards settled in cash will again be available for issuance pursuant to Awards granted under the Plan.

(c)    Shares withheld from an Award or delivered by a Participant to satisfy minimum tax withholding requirements will again be available for issuance pursuant to Awards granted under the Plan.  
 
(d)    If the exercise price of an Option is satisfied by delivering Shares to the Company (by either actual delivery or attestation), only the number of Shares issued to the Participant in excess of the Shares tendered (by delivery or attestation) shall be considered for purposes of determining the number of Shares remaining available for issuance pursuant to Awards granted under the Plan.  

(e)    To the extent that the full number of Shares subject to an Option or SAR is not issued upon exercise of the Option or SAR for any reason, including by reason of net-settlement of the Award, only the number of Shares issued and delivered upon exercise of the Option or SAR shall be considered for purposes of determining the number of Shares remaining available for issuance pursuant to Awards granted under the Plan. 

(f)    To the extent that the full number of Shares subject to an Award other than an Option or SAR is not issued for any reason, including by reason of failure to achieve maximum performance goals, only the number of Shares issued and delivered shall be considered for purposes of determining the number of Shares remaining available for issuance pursuant to Awards granted under the Plan. 

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(g)    Substitute Awards granted pursuant to Section 13.10 of the Plan shall not count against the Shares otherwise available for issuance under the Plan under Section 5.1.

5.3.    STOCK DISTRIBUTED.       Any Stock distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open market. 

ARTICLE 6
ELIGIBILITY

6.1.    GENERAL.       Awards may be granted only to Eligible Participants.  Incentive Stock Options may be granted only to Eligible Participants who are employees of the Company or a Parent or Subsidiary as defined in Section 424(e) and (f) of the Code.  Eligible Participants who are service providers to an Affiliate may be granted Options or SARs under this Plan only if the Affiliate qualifies as an “eligible issuer of service recipient stock” within the meaning of §1.409A-1(b)(5)(iii)(E) of the final regulations under Code Section 409A.   

ARTICLE 7
STOCK OPTIONS

7.1.    GENERAL.       The Committee is authorized to grant Options to Participants on the following terms and conditions:

(a)    EXERCISE PRICE.  The exercise price per Share under an Option shall be determined by the Committee, provided that the exercise price for any Option (other than an Option issued as a substitute Award pursuant to Section 13.10) shall not be less than the Fair Market Value as of the Grant Date.

(b)    PROHIBITION ON REPRICING.  Except as otherwise provided in Section 14.1, the exercise price of an Option may not be reduced, directly or indirectly by cancellation and regrant or otherwise, without the prior approval of the stockholders of the Company. 

(c)    TIME AND CONDITIONS OF EXERCISE.  The Committee shall determine the time or times at which an Option may be exercised in whole or in part, subject to Section 7.1(e).  The Committee shall also determine the performance or other conditions, if any, that must be satisfied before all or part of an Option may be exercised or vested.  

(d)    PAYMENT.  The Committee shall determine the methods by which the exercise price of an Option may be paid, the form of payment, including, without limitation, cash, Shares, or other property (including “cashless exercise” arrangements), and the methods by which Shares shall be delivered or deemed to be delivered to Participants.   

(e)    EXERCISE TERM.  Except for Nonstatutory Options granted to Participants outside the United States, no Option granted under the Plan shall be exercisable for more than ten years from the Grant Date.  

(f)    NO DEFERRAL FEATURE.  No Option shall provide for any feature for the deferral of compensation other than the deferral of recognition of income until the exercise or disposition of the Option.

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(g)    NO DIVIDEND EQUIVALENTS.  No Option shall provide for Dividend Equivalents.

7.2.    INCENTIVE STOCK OPTIONS.       The terms of any Incentive Stock Options granted under the Plan must comply with the requirements of Section 422 of the Code.  If all of the requirements of Section 422 of the Code are not met, the Option shall automatically become a Nonstatutory Stock Option.

ARTICLE 8
STOCK APPRECIATION RIGHTS

8.1.    GRANT OF STOCK APPRECIATION RIGHTS    .  The Committee is authorized to grant Stock Appreciation Rights to Participants on the following terms and conditions:

(a)    RIGHT TO PAYMENT.  Upon the exercise of a SAR, the Participant to whom it is granted has the right to receive, for each Share with respect to which the SAR is being exercised, the excess, if any, of:

(1)    The Fair Market Value of one Share on the date of exercise; over

(2)    The base price of the SAR as determined by the Committee, which shall not be less than the Fair Market Value of one Share on the Grant Date.

(b)    PROHIBITION ON REPRICING.  Except as otherwise provided in Section 14.1, the base price of a SAR may not be reduced, directly or indirectly by cancellation and regrant or otherwise, without the prior approval of the stockholders of the Company.

(c)    EXERCISE TERM.  Except for SARs granted to Participants outside the United States, no SAR shall be exercisable for more than ten years from the Grant Date.

(d)    NO DEFERRAL FEATURE.  No SAR shall provide for any feature for the deferral of compensation other than the deferral of recognition of income until the exercise or disposition of the SAR.

(e)    NO DIVIDEND EQUIVALENTS.  No SAR shall provide for Dividend Equivalents. 

(f)    OTHER TERMS.  

(1) All SARs shall be evidenced by an Award Notification.  Subject to the limitations of this Article 8, the terms, methods of exercise, methods of settlement, form of consideration payable in settlement, and any other terms and conditions of any SAR shall be determined by the Committee at the time of the grant of the Award and shall be reflected in the Award Notification.

(2) Stock Appreciation Rights shall not be granted unless and until Shares are listed on a national securities exchange.

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ARTICLE 9
RESTRICTED STOCK, RESTRICTED STOCK UNITS
AND DEFERRED STOCK UNITS

9.1.    GRANT OF RESTRICTED STOCK, RESTRICTED STOCK UNITS AND DEFERRED STOCK UNITS    .  The Committee is authorized to make Awards of Restricted Stock, Restricted Stock Units or Deferred Stock Units to Participants in such amounts and subject to such terms and conditions as may be selected by the Committee.  An Award of Restricted Stock, Restricted Stock Units or Deferred Stock Units shall be evidenced by an Award Notification setting forth the terms, conditions, and restrictions applicable to the Award.

9.2.    ISSUANCE AND RESTRICTIONS.       Restricted Stock, Restricted Stock Units or Deferred Stock Units shall be subject to such restrictions on transferability and other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock).  These restrictions may lapse separately or in combination at such times, under such circumstances, in such installments, upon the satisfaction of performance goals or otherwise, as the Committee determines at the time of the grant of the Award or thereafter.  Except as otherwise provided in an Award Notification or any special Plan document governing an Award, the Participant shall have all of the rights of a stockholder with respect to the Restricted Stock, and the Participant shall have none of the rights of a stockholder with respect to Restricted Stock Units or Deferred Stock Units until such time as Shares of Stock are paid in settlement of the Restricted Stock Units or Deferred Stock Units.  Unless otherwise provided in the applicable Award Notification, awards of Restricted Stock will be entitled to full dividend rights and any dividends paid thereon will be paid or distributed to the holder when the dividends are paid to the Company’s stockholders.

9.3.    FORFEITURE.       Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of Continuous Status as a Participant during the applicable restriction period or upon failure to satisfy a performance goal during the applicable restriction period, Restricted Stock or Restricted Stock Units that are at that time subject to restrictions shall be forfeited.

9.4.    DELIVERY OF RESTRICTED STOCK    .  Shares of Restricted Stock shall be delivered to the Participant at the time of grant either by book-entry registration or by delivering to the Participant, or a custodian or escrow agent (including, without limitation, the Company or one or more of its employees) designated by the Committee, a stock certificate or certificates registered in the name of the Participant.  If physical certificates representing shares of Restricted Stock are registered in the name of the Participant, such certificates must bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock. 

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ARTICLE 10
PERFORMANCE AWARDS

10.1.    GRANT OF PERFORMANCE AWARDS.       The Committee is authorized to grant any Award under this Plan, including cash-based Awards, with performance-based vesting criteria, on such terms and conditions as may be selected by the Committee.  The Committee shall have the complete discretion to determine the number of Performance Awards granted to each Participant and to designate the provisions of such Performance Awards as provided in Section 4.3.  All Performance Awards shall be evidenced by an Award Notification or a written program established by the Committee, pursuant to which Performance Awards are awarded under the Plan under uniform terms, conditions and restrictions set forth in such written program.

10.2.    PERFORMANCE GOALS.       The Committee may establish performance goals for Performance Awards which may be based on any criteria selected by the Committee.  Such performance goals may be described in terms of Company-wide objectives or in terms of objectives that relate to the performance of the Participant, an Affiliate or a division, region, department or function within the Company or an Affiliate. If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company or the manner in which the Company or an Affiliate conducts its business, or other events or circumstances render performance goals to be unsuitable, the Committee may modify such performance goals in whole or in part, as the Committee deems appropriate.  If a Participant is promoted, demoted or transferred to a different business unit or function during a performance period, the Committee may determine that the performance goals or performance period are no longer appropriate and may (i) adjust, change or eliminate the performance goals or the applicable performance period as it deems appropriate to make such goals and period comparable to the initial goals and period, or (ii) make a cash payment to the participant in an amount determined by the Committee.  

ARTICLE 11
DIVIDEND EQUIVALENTS

11.1.    GRANT OF DIVIDEND EQUIVALENTS.       Except as provided in Sections 7.1(g) and 8.1(e), the Committee is authorized to grant Dividend Equivalents with respect to Awards granted hereunder, subject to such terms and conditions as may be selected by the Committee; provided that Dividend Equivalents shall not be granted unless and until Shares are listed on a national securities exchange.  Dividend Equivalents shall entitle the Participant to receive payments equal to dividends with respect to all or a portion of the number of Shares subject to an Award, as determined by the Committee.  The Committee may provide that Dividend Equivalents be paid or distributed when accrued or be deemed to have been reinvested in additional Shares, or otherwise reinvested.  Unless otherwise provided in the applicable Award Notification, Dividend Equivalents will be paid or distributed no later than the 15th day of the 3rd month following the later of (i) the calendar year in which the corresponding dividends were paid to stockholders, or (ii) the first calendar year in which the Participant’s right to such Dividends Equivalents is no longer subject to a substantial risk of forfeiture.  

ARTICLE 12
OTHER AWARDS

12.1.    GRANT OF OTHER AWARDS.    The Committee is authorized, subject to limitations under applicable law, to grant to Participants such other Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related to Shares, as deemed by the Committee to be consistent with the purposes of the Plan, including without limitation, NS/RXR OP Interests, membership interests in a 

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Subsidiary or operating partnership, Shares awarded purely as a “bonus” and not subject to any restrictions or conditions, convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, and Awards valued by reference to book value of Shares or the value of securities of or the performance of specified Parents or Subsidiaries.  The Committee shall determine the terms and conditions of such Awards. For purposes of calculating the number of Shares underlying an Other Award relative to the total number of Shares of Stock reserved and available for issuance under Section 5.1 hereof, the Committee shall establish in good faith the maximum number of Shares to which a grantee of such Other Award may be entitled upon fulfillment of all applicable conditions set forth in the relevant Award Notification, including vesting, accretion factors, conversion ratios, exchange ratios and the like. If and when any such conditions are no longer capable of being met, in whole or in part, the number of Shares underlying such Other Award shall be reduced accordingly by the Committee and the related Shares shall be added back to the Shares of Stock available for issuance under the Plan.  The Committee may require that Other Awards be held through a limited partnership, or similar “look-through” entity, and the Committee may require such limited partnership or similar entity to impose restrictions on its partners or other beneficial owners that are not inconsistent with the provisions of this Section 12.1. The provisions of the grant of Other Awards need not be the same with respect to each Participant.

ARTICLE 13
PROVISIONS APPLICABLE TO AWARDS

13.1.    TERM OF AWARD.       The term of each Award shall be for the period as determined by the Committee, provided that in no event shall the term of any Option or a Stock Appreciation Right exceed a period of ten years from its Grant Date.

13.2.    FORM OF PAYMENT FOR AWARDS.       At the discretion of the Committee, payment of Awards may be made in cash, Stock, a combination of cash and Stock, or any other form of property as the Committee shall determine.  In addition, payment of Awards may include such terms, conditions, restrictions and/or limitations, if any, as the Committee deems appropriate, including, in the case of Awards paid in the form of Stock, restrictions on transfer and forfeiture provisions.  Further, payment of Awards may be made in the form of a lump sum, or in installments, as determined by the Committee.

13.3.    LIMITS ON TRANSFER.       No right or interest of a Participant in any unexercised or restricted Award may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company or an Affiliate, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company or an Affiliate.  No unexercised or restricted Award shall be assignable or transferable by a Participant other than by will or the laws of descent and distribution; provided, however, that the Committee may (but need not) permit other transfers (other than transfers for value) where the Committee concludes that such transferability (i) does not result in accelerated taxation, (ii) does not cause any Option intended to be an Incentive Stock Option to fail to be described in Code Section 422(b), and (iii) is otherwise appropriate and desirable, taking into account any factors deemed relevant, including without limitation, state or federal tax or securities laws applicable to transferable Awards.

13.4.    BENEFICIARIES.       Notwithstanding Section 13.3, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death.  A beneficiary, legal guardian, legal representative, or other person claiming any rights under the Plan is subject to all terms and conditions of the Plan and any Award Notification applicable to the Participant, except to the extent the Plan and Award Notification otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee.  If no beneficiary has been designated or survives the Participant, payment shall be made to the 

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Participant’s estate.  Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change or revocation is filed with the Committee.

13.5.    STOCK TRADING RESTRICTIONS.       All Stock issuable under the Plan is subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with federal or state securities laws, rules and regulations and the rules of any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded.  The Committee may place legends on any Stock certificate or issue instructions to the transfer agent to reference restrictions applicable to the Stock.

13.6.    ACCELERATION UPON DEATH OR DISABILITY.       Except as otherwise provided in the Award Notification or any special Plan document governing an Award, upon the termination of a person’s Continuous Status as a Participant by reason of death or Disability:

(i)    all of that Participant’s outstanding Options and SARs shall become fully exercisable;  

(ii)all time-based vesting restrictions on that Participant’s outstanding Awards shall lapse as of the date of termination; and 

(iii)    the payout opportunities attainable under all of that Participant’s outstanding performance-based Awards shall be deemed to have been fully earned as of the date of termination as follows:

(A)    if the date of termination occurs during the first half of the applicable performance period, all relevant performance goals will be deemed to have been achieved at the “target” level, and

(B)    if the date of termination occurs during the second half of the applicable performance period, the actual level of achievement of all relevant performance goals against target will be measured as of the end of the calendar quarter immediately preceding the date of termination, and

(C) in either such case, there shall be a pro rata payout to the Participant or his or her estate within sixty (60) days following the date of termination (unless a later date is required by Section 16.3 hereof), based upon the length of time within the performance period that has elapsed prior to the date of termination.  

To the extent that this provision causes Incentive Stock Options to exceed the dollar limitation set forth in Code Section 422(d), the excess Options shall be deemed to be Nonstatutory Stock Options.

13.7.    ACCELERATION UPON A CHANGE IN CONTROL.       Except as otherwise provided in the Award Notification or any special Plan document governing an Award, upon the occurrence of a Change in Control, (i) all outstanding Options, SARs, and other Awards in the nature of rights that may be exercised shall become fully exercisable, and (ii) all time-based vesting restrictions on outstanding Awards shall lapse.  Except as otherwise provided in the Award Notification or any special Plan document governing an Award, upon the occurrence of a Change in Control, the target payout opportunities attainable under all outstanding performance-based Awards shall be deemed to have been fully earned as of the effective date of the Change in Control based upon an assumed achievement of all relevant performance goals at the “target” level and 

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there shall be a pro rata payout to Participants within thirty (30) days following the effective date of the Change in Control based upon the length of time within the performance period that has elapsed prior to the Change in Control.

13.8.    ACCELERATION FOR ANY REASON    .  The Committee may in its sole discretion at any time determine that all or a portion of a Participant’s Options, SARs, and other Awards in the nature of rights that may be exercised shall become fully or partially exercisable, that all or a part of the time-based vesting restrictions on all or a portion of the outstanding Awards shall lapse, and/or that any performance-based criteria with respect to any Awards shall be deemed to be wholly or partially satisfied, in each case, as of such date as the Committee may, in its sole discretion, declare.  The Committee may discriminate among Participants and among Awards granted to a Participant in exercising its discretion pursuant to this Section 13.8.  Notwithstanding anything in the Plan, including this Section 13.8, the Committee may not accelerate the payment of any Award if such acceleration would violate Section 409A(a)(3) of the Code.

13.9.    FORFEITURE EVENTS.       The Committee may specify in an Award Notification that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events shall include, but shall not be limited to, termination of employment for Cause, violation of material Company or Affiliate policies, breach of noncompetition, confidentiality or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business or reputation of the Company or any Affiliate.

13.10.    SUBSTITUTE AWARDS.       The Committee may grant Awards under the Plan in substitution for stock and stock-based awards held by employees of another entity who become employees of the Company or an Affiliate as a result of a merger or consolidation of the former employing entity with the Company or an Affiliate or the acquisition by the Company or an Affiliate of property or stock of the former employing corporation.  The Committee may direct that the substitute awards be granted on such terms and conditions as the Committee considers appropriate in the circumstances.

ARTICLE 14
CHANGES IN CAPITAL STRUCTURE

14.1.    MANDATORY ADJUSTMENTS.       In the event of a nonreciprocal transaction between the Company and its stockholders that causes the per-share value of the Stock to change (including, without limitation, any stock dividend, stock split, spin-off, rights offering, or large nonrecurring cash dividend), the authorization limits under Section 5.1 shall be adjusted proportionately, and the Committee shall make such adjustments to the Plan and Awards as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately resulting from such transaction.  Action by the Committee may include: (i) adjustment of the number and kind of shares that may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; (iii) adjustment of the exercise price of outstanding Awards or the measure to be used to determine the amount of the benefit payable on an Award; and (iv) any other adjustments that the Committee determines to be equitable.  Notwithstanding the foregoing, the Committee shall not make any adjustments to outstanding Options or SARs that would constitute a modification or substitution of the stock right under Treas. Reg. Sections 1.409A-1(b)(5)(v) that would be treated as the grant of a new stock right or change in the form of payment for purposes of Code Section 409A.  Without limiting the foregoing, in the event of a subdivision of the outstanding Stock (stock-split), a declaration of a dividend payable in Shares, or a combination or consolidation of the outstanding Stock into a lesser number of Shares, the authorization limits under Section 5.1 shall automatically be adjusted 

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proportionately, and the Shares then subject to each Award shall automatically, without the necessity for any additional action by the Committee, be adjusted proportionately without any change in the aggregate purchase price therefor.  

14.2.    DISCRETIONARY ADJUSTMENTS.       Upon the occurrence or in anticipation of any corporate event or transaction involving the Company (including, without limitation, any merger, reorganization, recapitalization, combination or exchange of shares, or any transaction described in Section 14.1), the Committee may, in its sole discretion, provide (i) that Awards will be settled in cash rather than Stock, (ii) that Awards will become immediately vested and exercisable and will expire after a designated period of time to the extent not then exercised, (iii) that Awards will be assumed by another party to a transaction or otherwise be equitably converted or substituted in connection with such transaction, (iv) that outstanding Awards may be settled by payment in cash or cash equivalents equal to the excess of the Fair Market Value of the underlying Stock, as of a specified date associated with the transaction, over the exercise price of the Award, (v) that performance targets and performance periods for Performance Awards will be modified, or (vi) any combination of the foregoing.  The Committee’s determination need not be uniform and may be different for different Participants whether or not such Participants are similarly situated.  

14.3.    GENERAL.       Any discretionary adjustments made pursuant to this Article 14 shall be subject to the provisions of Section 15.2.  To the extent that any adjustments made pursuant to this Article 14 cause Incentive Stock Options to cease to qualify as Incentive Stock Options, such Options shall be deemed to be Nonstatutory Stock Options.

ARTICLE 15
AMENDMENT, MODIFICATION AND TERMINATION

15.1.    AMENDMENT, MODIFICATION AND TERMINATION.       The Board or the Committee may, at any time and from time to time, amend, modify or terminate the Plan without stockholder approval; provided, however, that if an amendment to the Plan would, in the reasonable opinion of the Board or the Committee, either (i) materially increase the number of Shares available under the Plan, (ii) expand the types of awards under the Plan, (iii) materially expand the class of participants eligible to participate in the Plan, (iv) materially extend the term of the Plan, or (v) otherwise constitute a material change requiring stockholder approval under applicable laws, policies or regulations or the applicable listing or other requirements of an Exchange, then such amendment shall be subject to stockholder approval; and provided, further, that the Board or Committee may condition any other amendment or modification on the approval of stockholders of the Company for any reason, including by reason of such approval being necessary or deemed advisable (i) to comply with the listing or other requirements of an Exchange, or (ii) to satisfy any other tax, securities or other applicable laws, policies or regulations.

15.2.    AWARDS PREVIOUSLY GRANTED.       At any time and from time to time, the Committee may amend, modify or terminate any outstanding Award without approval of the Participant; provided, however:

(a)    Subject to the terms of the applicable Award Notification, such amendment, modification or termination shall not, without the Participant’s consent, reduce or diminish the value of such Award determined as if the Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment or termination (with the per-share value of an Option or SAR for this purpose being calculated as the excess, if any, of the Fair Market Value as of the date of such amendment or termination over the exercise or base price of such Award);

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(b)    The original term of an Option or SAR may not be extended without the prior approval of the stockholders of the Company;

(c)    Except as otherwise provided in Section 14.1, the exercise price of an Option or SAR may not be reduced, directly or indirectly, without the prior approval of the stockholders of the Company; and

(d)    No termination, amendment, or modification of the Plan shall adversely affect any Award previously granted under the Plan, without the written consent of the Participant affected thereby.  An outstanding Award shall not be deemed to be “adversely affected” by a Plan amendment if such amendment would not reduce or diminish the value of such Award determined as if the Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment (with the per-share value of an Option or SAR for this purpose being calculated as the excess, if any, of the Fair Market Value as of the date of such amendment over the exercise or base price of such Award).

15.3.    COMPLIANCE AMENDMENTS.       Notwithstanding anything in the Plan or in any Award Notification to the contrary, the Board may amend the Plan or an Award Notification, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or Award Notification to any present or future law relating to plans of this or similar nature (including, but not limited to, Section 409A of the Code), and to the administrative regulations and rulings promulgated thereunder.  By accepting an Award under this Plan, a Participant agrees to any amendment made pursuant to this Section 15.3 to any Award granted under the Plan without further consideration or action.

ARTICLE 16
GENERAL PROVISIONS

16.1.    RIGHTS OF PARTICIPANTS.     

(a)    No Participant or any Eligible Participant shall have any claim to be granted any Award under the Plan.  Neither the Company, its Affiliates nor the Committee is obligated to treat Participants or Eligible Participants uniformly, and determinations made under the Plan may be made by the Committee selectively among Eligible Participants who receive, or are eligible to receive, Awards (whether or not such Eligible Participants are similarly situated).

(b)    Nothing in the Plan, any Award Notification or any other document or statement made with respect to the Plan, shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any Participant’s employment or status as an officer, or any Participant’s service as a director, at any time, nor confer upon any Participant any right to continue as an employee, officer, or director of the Company or any Affiliate, whether for the duration of a Participant’s Award or otherwise.

(c)    Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company or any Affiliate and, accordingly, subject to Article 15, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company or an of its Affiliates.

(d)    No Award gives a Participant any of the rights of a stockholder of the Company unless and until Shares are in fact issued to such person in connection with such Award.

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16.2.    WITHHOLDING.       The Company or any Affiliate shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any exercise, lapse of restriction or other taxable event arising as a result of the Plan.  With respect to withholding required upon any taxable event under the Plan, the Committee may, at the time the Award is granted or thereafter, require or permit that any such withholding requirement be satisfied, in whole or in part, by withholding from the Award Shares having a Fair Market Value on the date of withholding equal to the minimum amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes.  All such elections shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 

16.3.     SPECIAL PROVISIONS RELATED TO SECTION 409A OF THE CODE.      

(a)    General.  It is intended that the payments and benefits provided under the Plan and any Award shall either be exempt from the application of, or comply with, the requirements of Section 409A of the Code.  The Plan and all Award Notifications shall be construed in a manner that effects such intent.  Nevertheless, the tax treatment of the benefits provided under the Plan or any Award is not warranted or guaranteed.  Neither the Company, its Affiliates nor their respective directors, officers, employees or advisers shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result of the Plan or any Award. 

(b)    Definitional Restrictions.  Notwithstanding anything in the Plan or in any Award Notification to the contrary, to the extent that any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable, or a different form of payment (e.g., lump sum or installment) would be effected, under the Plan or any Award Notification by reason of the occurrence of a Change in Control, or the Participant’s Disability or separation from service, such amount or benefit will not be payable or distributable to the Participant, and/or such different form of payment will not be effected, by reason of such circumstance unless the circumstances giving rise to such Change in Control, Disability or separation from service meet any description or definition of “change in control event”, “disability” or “separation from service”, as the case may be, in Section 409A of the Code and applicable regulations (without giving effect to any elective provisions that may be available under such definition).  This provision does not prohibit the vesting of any Award upon a Change in Control, Disability or separation from service, however defined.  If this provision prevents the payment or distribution of any amount or benefit, such payment or distribution shall be made on the next earliest payment or distribution date or event specified in the Award Notification that is permissible under Section 409A of the Code.  If this provision prevents the application of a different form of payment of any amount or benefit, such payment shall be made in the same form as would have applied absent such designated event or circumstance.

(c)    Allocation among Possible Exemptions.  If any one or more Awards granted under the Plan to a Participant could qualify for any separation pay exemption described in Treas. Reg. Section 1.409A-1(b)(9), but such Awards in the aggregate exceed the dollar limit permitted for the separation pay exemptions, the Company (acting through the Committee) shall determine which Awards or portions thereof will be subject to such exemptions.

(d)    Six-Month Delay in Certain Circumstances.  Notwithstanding anything in the Plan or in any Award Notification to the contrary, if any amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section 409A of the Code would otherwise be payable or distributable under this Plan or any Award Notification by reason of a Participant’s separation from service during a period in 

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which the Participant is a Specified Employee (as defined below), then, subject to any permissible acceleration of payment by the Committee under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes): 

(i) the amount of such non-exempt deferred compensation that would otherwise be payable during the six-month period immediately following the Participant’s separation from service will be accumulated through and paid or provided on the first day of the seventh month following the Participant’s separation from service (or, if the Participant dies during such period, within 30 days after the Participant's death) (in either case, the “Required Delay Period”), and 

(ii) the normal payment or distribution schedule for any remaining payments or distributions will resume at the end of the Required Delay Period.

For purposes of this Plan, the term “Specified Employee” has the meaning given such term in Section 409A of the Code and the final regulations thereunder, provided, however, that, as permitted in such final regulations, the Company’s Specified Employees and its application of the six-month delay rule of 409A(a)(2)(B)(i) of the Code shall be determined in accordance with rules adopted by the Board or any committee of the Board, which shall be applied consistently with respect to all nonqualified deferred compensation arrangements of the Company, including this Plan.

16.4.    UNFUNDED STATUS OF AWARDS    .  The Plan is intended to be an “unfunded” plan for incentive and deferred compensation.  With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan or any Award Notification shall give the Participant any rights that are greater than those of a general creditor of the Company or any Affiliate.  This Plan is not intended to be subject to ERISA. 

16.5.    RELATIONSHIP TO OTHER BENEFITS.       No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or benefit plan of the Company or any Affiliate unless provided otherwise in such other plan.

16.6.    EXPENSES.       The expenses of administering the Plan shall be borne by the Company and its Affiliates.

16.7.    TITLES AND HEADINGS.       The titles and headings of the Sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

16.8.    GENDER AND NUMBER.       Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural.

16.9.    FRACTIONAL SHARES.       No fractional Shares shall be issued and the Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down.

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16.10.    GOVERNMENT AND OTHER REGULATIONS    .  

(a)    Notwithstanding any other provision of the Plan, no Participant who acquires Shares pursuant to the Plan may, during any period of time that such Participant is an affiliate of the Company (within the meaning of the rules and regulations of the Securities and Exchange Commission under the 1933 Act), sell such Shares, unless such offer and sale is made (i) pursuant to an effective registration statement under the 1933 Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption from the registration requirement of the 1933 Act, such as that set forth in Rule 144 promulgated under the 1933 Act.

(b)    Notwithstanding any other provision of the Plan, if at any time the Committee shall determine that the registration, listing or qualification of the Shares covered by an Award upon any Exchange or under any foreign, federal, state or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such Award or the purchase or receipt of Shares thereunder, no Shares may be purchased, delivered or received pursuant to such Award unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any condition not acceptable to the Committee.  Any Participant receiving or purchasing Shares pursuant to an Award shall make such representations and agreements and furnish such information as the Committee may request to assure compliance with the foregoing or any other applicable legal requirements.  The Company shall not be required to issue or deliver any certificate or certificates for Shares under the Plan prior to the Committee’s determination that all related requirements have been fulfilled.  The Company shall in no event be  obligated to  register 
any securities pursuant to the 1933 Act or applicable state or foreign law or to take any other action in order to cause the issuance and delivery of such certificates to comply with any such law, regulation or requirement.

16.11.    GOVERNING LAW.       To the extent not governed by federal law, the Plan and all Award Notifications shall be construed in accordance with and governed by the laws of the State of Maryland.

16.12.    ADDITIONAL PROVISIONS.       Each Award Notification may contain such other terms and conditions as the Committee may determine; provided that such other terms and conditions are not inconsistent with the provisions of the Plan.

16.13.    NO LIMITATIONS ON RIGHTS OF COMPANY.       The grant of any Award shall not in any way affect the right or power of the Company to make adjustments, reclassification or changes in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets.  The Plan shall not restrict the authority of the Company, for proper corporate purposes, to draft or assume awards, other than under the Plan, to or with respect to any person.  If the Committee so directs, the Company may issue or transfer Shares to an Affiliate, for such lawful consideration as the Committee may specify, upon the condition or understanding that the Affiliate will transfer such Shares to a Participant in accordance with the terms of an Award granted to such Participant and specified by the Committee pursuant to the provisions of the Plan.
    
16.14.    INDEMNIFICATION.       Each person who is or shall have been a member of the Committee or of the Board shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and 

20

all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf, unless such loss, cost, liability, or expense is a result of his or her own willful misconduct or except as expressly provided by statute.  The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s charter or bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

********************
The foregoing Long Term Incentive Plan was adopted by the Board on February 2, 2015, and by the stockholders on February 2, 2015.

21Exhibit 10.6 - Sub AdvisoryAgree (1)

Exhibit 10.6

SUB-ADVISORY AGREEMENT
AMONG
NORTHSTAR/RXR NEW YORK METRO INCOME, INC.,
NSAM LUXEMBOURG S.À.R.L.,  
 
NSAM J-NS/RXR LTD,
RXR NTR SUB-ADVISOR LLC
AND
NORTHSTAR/RXR OPERATING PARTNERSHIP, LP

TABLE OF CONTENTS
	
		
	Article 1 DEFINITIONS
	2

	Article 2 APPOINTMENT
	7

	Article 3 SUB-ADVISOR’S SERVICES
	7

	3.01Acquisition Services
	8

	3.02Asset Management Services
	8

	3.03Financing Services
	9

	3.04Administrative Services
	9

	3.05Disposition Services
	10

	3.06Mutual Decisions.
	10

	Article 4 SUB-ADVISORY COMPENSATION
	10

	4.01Fees Payable to the Sub-Advisor
	10

	4.02Payment in Shares
	11

	Article 5 EXPENSE REIMBURSEMENT
	11

	5.01Expense Reimbursement
	11

	5.02Timing of and Additional Limitations on Reimbursements    
	11

	Article 6 REGULATORY MATTERS    
	12

	Article 7 VOTING AGREEMENT
	12

	Article 8 RELATIONSHIP OF THE SUB-ADVISOR, THE ADVISOR AND THE NSAM SUB-ADVISOR AND THEIR AFFILIATES
	12

	8.01Relationship
	12

	8.02Time Commitment
	13

	8.03Investment Opportunities and Allocation
	13

	8.04Exclusivity
	13

	Article 9 THE RXR NAME
	14

	Article 10 TERM AND TERMINATION OF THE AGREEMENT
	14

	10.01Term
	14

	10.02Termination by the NSAM Sub-Advisor
	14

	10.03Automatic Termination    
	15

	10.04Payments on Termination and Survival of Certain Rights and Obligations
	15

	Article 11 REPRESENTATIONS AND WARRANTIES OF THE SUB-ADVISOR
	16

	11.01Skilled Personnel and Adequate Staffing
	16

	11.02Litigation
	16

	11.03No Violation
	17

	11.04Conflict
	17

	11.05Salaries
	17

	Article 12 COVENANTS OF THE SUB-ADVISOR
	17

	12.01Fulfillment of Obligations
	17

	12.02    Delegation
	17

i

	
		
	12.03Standard of Care
	18

	12.04Key Persons
	18

	12.05Maintenance of Personnel and Staff
	18

	12.06Cooperation
	18

	12.07Performance Monitoring
	19

	12.08Records and Report
	19

	12.09No Violations or Investigations
	19

	12.10Cooperation
	19

	Article 13 COVENANTS OF THE ADVISOR AND THE NSAM SUB-ADVISOR
	20

	Article 14 INTELLECTUAL PROPERTY RIGHTS
	20

	Article 15 LIMITATIONS ON ACTIVITIES
	21

	Article 16 ASSIGNMENT
	21

	Article 17 INDEMNIFICATION
	21

	17.01Indemnification of the Sub-Advisor
	21

	17.02Limitation on Indemnification
	22

	17.03Limitation on Payment of Expenses
	22

	17.04Indemnification of the NSAM Sub-Advisor, the Company and the Operating Partnership
	23

	17.05    No Rights Created
	23

	Article 18 BANK ACCOUNTS
	23

	Article 19 NON- SOLICITATION
	23

	Article 20 MISCELLANEOUS
	24

	20.01Survival
	24

	20.02Notices
	24

	20.03Modification
	26

	20.04Severability
	26

	20.05Construction
	26

	20.06Entire Agreement
	27

	20.07Waiver
	27

	20.08Gender
	27

	20.09Titles Not to Affect Interpretation
	27

	20.10Counterparts.
	27

	20.11Confidentiality
	27

	20.12Disagreement as to Computations
	28

	20.13Third Party Beneficiary
	28

ii

SUB-ADVISORY AGREEMENT
THIS SUB-ADVISORY AGREEMENT (this “Agreement”), dated as of February [•] 2015, and effective as of the date that the Registration Statement (as defined below) is declared effective by the Securities and Exchange Commission (the “Effective Date”), is entered into by and among NSAM Luxembourg S.à.r.l., a Luxembourg société à responsabilité limitée (the “NSAM Sub-Advisor”), NSAM J-NS/RXR Ltd, a Jersey limited company (the “Advisor”), RXR NTR Sub-Advisor LLC, a Delaware limited liability company (the “Sub-Advisor”), and only with respect to the obligations pursuant to Articles 4, 5, 9, 16, 17 and 19 and Sections 3.04 and 20.03, NorthStar/RXR New York Metro Income, Inc., a Maryland corporation (the “Company”), and only with respect to Article 17 and Section 20.03, NorthStar/RXR Operating Partnership, LP, a Delaware limited partnership (the “Operating Partnership”).  Capitalized terms used herein shall have the meanings ascribed to them in Article 1 below.
W I T N E S S E T H
WHEREAS, the Company intends to qualify as a REIT, and to invest its funds in investments permitted by the terms of Sections 856 through 860 of the Code;
WHEREAS, the Company will appoint the Advisor as its advisor pursuant to the Advisory Agreement by and among the Company, the Operating Partnership and the Advisor, a copy of which is attached hereto as Appendix A (the “Advisory Agreement”).
WHEREAS, the Advisor will appoint the NSAM Sub-Advisor as its sub-advisor pursuant to the sub-advisory agreement by and among the Advisor and the NSAM Sub-Advisor (the “NSAM Sub-Advisory Agreement”).
WHEREAS, the NSAM Sub-Advisor desires to avail itself of the experience, sources of information, advice and assistance available to the Sub-Advisor, and to have the Sub-Advisor exclusively undertake the duties and responsibilities herein set forth, on behalf of, and subject to the supervision of, the NSAM Sub-Advisor, all as provided herein.
WHEREAS, the Sub-Advisor is willing to undertake to render such services, subject to the supervision of the NSAM Sub-Advisor, on the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto agree as follows:

1

ARTICLE 1
DEFINITIONS
As used in this Agreement, the following terms shall have the meanings specified below:
Acquisition Expenses means any and all expenses, excluding Acquisition Fees incurred by the Company, the Operating Partnership, the Advisor, the NSAM Sub-Advisor, the Sub-Advisor or any of their Affiliates in connection with the selection or acquisition of any Investments, whether or not acquired or originated, as applicable, including, without limitation, legal fees and expenses, travel and communications expenses, costs of appraisals, nonrefundable option payments on properties or other investments not acquired, accounting fees and expenses, title insurance premiums and the costs of performing due diligence.
Acquisition Fees means the fee payable to the Advisor Entities pursuant to Section 8.01 of the Advisory Agreement and to the Sub-Advisor pursuant to Section 4.01 hereof plus all other fees and commissions, excluding Acquisition Expenses, paid by any Person to any Person in connection with the making or investing in any Investments or the purchase, development or construction of any Property by the Company.  Included in the computation of such fees or commissions shall be any real estate commission, selection fee, Development Fee, Construction Fee, nonrecurring management fee, loan fees or points or any fee of a similar nature, however designated.  Excluded shall be development fees and constructions fees paid to Persons not Affiliated with the Advisor, the NSAM Sub-Advisor or the Sub-Advisor in connection with the actual development and construction of a Property.
Advisor means:  (i) NSAM J-NS/RXR Ltd, a Jersey limited company; or (ii) any successor advisor to the Company.
Advisor Entities has the meaning set forth in the Advisory Agreement.
Advisor’s Investment Committee means the committee of the board of directors of the Advisor charged with the management and decision making functions of the Advisor (subject to the terms of the Advisory Agreement) in respect of the Investments.
Advisory Agreement has the meaning set forth in the Recitals.
Affiliate has the meaning set forth in the Advisory Agreement.
Agreement means this Sub-Advisory Agreement, as amended, modified, supplemented or restated from time to time, as the context requires.
Asset Management Fee has the meaning set forth in the Advisory Agreement.
Average Invested Assets means, for a specified period, the average of the aggregate book value of the assets of the Company invested, directly or indirectly, in Investments before reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the average of such values at the end of each month during such period.

2

Board means the board of directors of the Company, as of any particular time.
Bylaws mean the bylaws of the Company, as amended from time to time.
Cause means with respect to the termination of this Agreement, (i) fraud, criminal conduct, misconduct, negligence or breach of fiduciary duty by the Sub-Advisor, (ii) a material breach of this Agreement by the Sub-Advisor, (iii) an RXR Member Default under the NS/RXR Strategic Agreement which has not been cured within 90 days of such RXR Member Default, or (iv) an RXR Removal Event under the NS/RXR Strategic Agreement. 
Charter means the articles of incorporation of the Company, as amended from time to time.
Code means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto.  Reference to any provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.
Company means NorthStar/RXR New York Metro Income, Inc., a corporation organized under the laws of the State of Maryland.
Construction Fee means a fee or other remuneration for acting as general contractor and/or construction manager to construct improvements, supervise and coordinate projects or provide major repairs or rehabilitations on a Property.
Delegate has the meaning set forth in Section 12.02.
Delegated Functions has the meaning set forth in Section 12.02.
Development Fee means a fee for the packaging of a Property, including the negotiation and approval of plans, and any assistance in obtaining zoning and necessary variances and financing for a specific Property, either initially or at a later date.
Disposition Fee has the meaning set forth in the Advisory Agreement.
Effective Date has the meaning set forth in the Preamble.
Excess Amount has the meaning set forth in Section 5.02.
Expense Year has the meaning set forth in Section 5.02.
FINRA means the Financial Industry Regulatory Authority, Inc.
GAAP means generally accepted accounting principles as in effect in the United States of America from time to time.
Governmental Authority means any nation or government, any state, province or other political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or 

3

administration functions of or pertaining to government, or any government authority, agency, department, board, tribunal, commission or instrumentality of the United States, any foreign government, any state of the United States, or any municipality or other political subdivision thereof, and any court, tribunal, mediator or arbitrator(s) of competent jurisdiction, and any governmental or non-governmental self-regulatory organization, agency or authority, foreign or domestic. 

Initial Public Offering means the initial public offering of Shares registered on Registration Statement No. 333-200617 on Form S-11.
Investments means any investments by the Company or the Operating Partnership in Properties, Loans and all other permitted investments in which the Company or the Operating Partnership may acquire an interest, either directly or indirectly, including through ownership interests in a Joint Venture, pursuant to its Charter, Bylaws or operating partnership agreement, as applicable, and the investment objectives and policies adopted by the Board from time to time, other than short-term investments acquired for purposes of cash management.
Joint Venture means any joint venture, limited liability company, partnership or other entity pursuant to which the Company is a co-venturer or partner with respect to the ownership of any Investments.
Listing means the listing of the Shares on a national securities exchange.  Upon such Listing, the shares shall be deemed “Listed.”
Loans means mortgage loans and other types of debt financing investments made by the Company or the Operating Partnership, either directly or indirectly, including through ownership interests in a Joint Venture, including, without limitation, mezzanine loans, B-notes, bridge loans, convertible debt, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests, and participations in such loans.
NASAA REIT Guidelines means the Statement of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators Association as in effect on the Effective Date.
Net Income means, for any period, the Company’s total revenues applicable to such period, less the total expenses applicable to such period excluding additions to reserves for depreciation, bad debts or other similar non-cash reserves; provided, however, Net Income for purposes of calculating total allowable Operating Expenses shall exclude the gain from the sale of the Company’s assets.
NRF means NorthStar Realty Finance Corp., a Maryland corporation.
NRF Notice has the meaning set forth in Section 10.02.

4

NSAM Sub-Advisor means (i) NSAM Luxembourg S.à.r.l., a Luxembourg société à responsabilité limitée, or (ii) any successor sub-advisor which enters into similar arrangements with the Advisor and is bound by the terms of this Agreement or similar agreement.
NSAM Sub-Advisory Agreement has the meaning set forth in the Recitals. 
NS/RXR Strategic Agreement means the Limited Liability Company Agreement of RXR Realty LLC, dated as of December 20, 2013, by and among Tristate Realty Investor-T, LLC, RXR Subholdings LLC, RXR Partners LLC, and each person allocated Class B Incentive Units set forth on Exhibit B thereto, as heretofore amended and as may be further amended from time to time. 
Offering means any offering of Shares that is registered with the SEC, excluding Shares offered under any employee benefit plan.
Operating Expenses means all costs and expenses paid or incurred by the Company, as determined under GAAP, that in any way are related to the operation of the Company or its business, including fees paid to the Advisor, the NSAM Sub-Advisor and the Sub-Advisor, but excluding:  (i) the expenses of raising capital such as Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing, registration, and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, registration and Listing; (ii) interest payments; (iii) taxes; (iv) non-cash expenditures such as depreciation, amortization, bad debt reserves and equity-based compensation; (v) incentive fees; and (vi) Acquisition Fees, origination fees, Acquisition Expenses, real estate commissions on the resale of real property and other fees and expenses connected with the acquisition, financing, disposition, management and ownership of real estate interests, loans or other property, including the costs of foreclosure, insurance premiums, legal services, maintenance, repair, and improvement of property.  The definition of “Operating Expenses” set forth above is not intended to expand the type of expenses that are treated as “Total Operating Expenses” under the NASAA REIT Guidelines. 
Operating Partnership means NorthStar/RXR Operating Partnership, LP, a Delaware limited partnership formed to own and operate Investments on behalf of the Company.
Organization and Offering Expenses means any and all costs and expenses incurred by or on behalf of the Company and to be paid from the assets of the Company in connection with the formation of the Company and the qualification and registration of an Offering, and the marketing and distribution of Shares, including, without limitation, total underwriting and brokerage discounts and commissions (including fees of the underwriters’ attorneys), expenses for printing, preparing and amending registration statements or supplementing prospectuses, mailing and distributing costs, salaries of employees while engaged in sales activity, telephone and other telecommunications costs, all advertising and marketing expenses, charges of transfer agents, registrars, trustees, escrow holders, depositories and experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of the Shares under federal and state laws, including taxes and fees and accountants’ and attorneys’ fees.
Person means an individual, corporation, partnership, estate, trust (including a trust qualified under Section 401(a) or 501(c) (17) of the Code), a portion of a trust permanently set aside for or 

5

to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other entity, or any government or any agency or political subdivision thereof, and also includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended.
Post NRF Holding Date means the first date on which each of the following has occurred: (i) the outstanding principal balance of the Term Loan (as defined in the NS/RXR Strategic Agreement) has been paid in full; (ii) the Series P Preferred Units (as defined in the NS/RXR Strategic Agreement) have been redeemed in full; and (iii) neither the NRF Member (as defined in the NS/RXR Strategic Agreement) nor any other Affiliate of NRF holds, directly or indirectly, any Class A Common Units (as defined in the NS/RXR Strategic Agreement).
Property means any real property or properties, including leasehold interests in any real property or properties, transferred or conveyed to the Company or the Operating Partnership, either directly or indirectly, including through ownership interests in a Joint Venture.
Property Manager means an entity that has been retained to perform and carry out property management services at one or more of the Properties, excluding persons, entities or independent contractors retained or hired to perform facility management or other services or tasks at a particular Property, the costs for which are passed through to and ultimately paid by the tenant at such Property.
Prospectus means the prospectus included in the Registration Statement.
Registration Statement means the registration statement filed by the Company with the SEC on Form S-11 (Reg. No. 333-200617), as amended from time to time, in connection with the Initial Public Offering.
REIT means a “real estate investment trust” under Sections 856 through 860 of the Code.
RXR means RXR Realty LLC.
SEC means the United States Securities and Exchange Commission.
Section 10.02 Termination Notice has the meaning set forth in Section 10.02.
Shares mean shares of common stock of the Company, par value $0.01 per share.
Stockholders mean the registered holders of the Shares.
Sub-Advisor means (i) RXR NTR Sub-Advisor LLC or (ii) any successor sub-advisor which enters into similar arrangements with the NSAM Sub-Advisor.
Sub-Advisor Designees has the meaning set forth in Article 6.
Sub-Advisor Key Employee has the meaning set forth in Section 12.04.

6

Termination Date means the date of termination of the Agreement determined in accordance with Article 10 hereof.
2%/25% Guidelines means the requirement pursuant to the NASAA REIT Guidelines that, in any period of four consecutive fiscal quarters, total Operating Expenses not exceed the greater of 2.0% of the Company’s Average Invested Assets during such 12-month period or 25.0% of the Company’s Net Income over the same 12-month period, unless the Board makes certain determinations.
ARTICLE 2 
APPOINTMENT
The NSAM Sub-Advisor hereby appoints the Sub-Advisor to provide on an exclusive basis with respect to the Company, and the Sub-Advisor hereby accepts such appointment and agrees to provide, the services set forth herein, subject to the terms and conditions of this Agreement and the limitations set forth in the Advisory Agreement.  Pursuant to the Advisory Agreement, the Advisor is responsible for managing, operating, directing and supervising the operations and administration of the Company and its assets and has undertaken to use its commercially reasonable efforts to present to the Company and the Operating Partnership potential investment opportunities, to make investment decisions on behalf of the Company subject to the limitations in the Company’s Charter and the direction and oversight of the Board and to provide the Company with a continuing and suitable investment program consistent with the investment objectives and policies of the Company as determined and adopted from time to time by the Board, subject to the limitations set forth in the Advisory Agreement.  Pursuant to the NSAM Sub-Advisory Agreement, the Advisor has delegated certain of its duties to the NSAM Sub-Advisor, including the duties delegated hereunder by the NSAM Sub-Advisor to the Sub-Advisor. The Sub-Advisor undertakes to use its commercially reasonable efforts to (a) identify, negotiate and manage the Company’s Investments, (b) provide portfolio management, disposition, property management, construction, leasing and development services on behalf of the Company, and (c) provide other specific services as the Sub-Advisor and the NSAM Sub-Advisor may mutually agree upon from time to time during the term of this Agreement.  The Sub-Advisor shall for all purposes herein be deemed to be an independent contractor and, except as expressly authorized herein or expressly provided for, shall have no authority to act for or represent the Advisor, the NSAM Sub-Advisor or the Company in any way or otherwise be deemed an agent of the Advisor, the NSAM Sub-Advisor or the Company.
ARTICLE 3
SUB-ADVISOR’S SERVICES
Pursuant to this Agreement and subject to the oversight of the NSAM Sub-Advisor, the Sub-Advisor has direct responsibility for, among others, the duties listed in this Article 3.  Sub-Advisor shall, either directly or, as the Sub-Advisor deems necessary or desirable, indirectly by engaging one of its Affiliates, perform the services listed in this Article 3.

7

3.01    Acquisition Services.
The Sub-Advisor shall manage the acquisition process for Investments approved by the Advisor’s Investment Committee and shall perform the following acquisition services: 
(i)    Serve as the delegate of the NSAM Sub-Advisor as the Company’s investment and financial advisor and obtain and provide to the NSAM Sub-Advisor as it shall direct certain market research and economic and statistical data in connection with the Company’s Investments and investment objectives and policies;
(ii)    Subject to the investment objectives and policies of the Company and any directions of the NSAM Sub-Advisor: (a) locate, analyze and select potential investments; (b) structure and negotiate the terms and conditions of transactions pursuant to which the Investments will be made; and (c) acquire Investments on behalf of the Company; 
(iii)    Conduct due diligence on target investments;
(iv)    Prepare reports regarding prospective investments which include recommendations and supporting documentation necessary for the Advisor’s Investment Committee to evaluate the prospective investments;
(v)    Obtain reports, where appropriate, concerning the value and condition of prospective investments of the Company; 
(vi)    Manage the origination and closing process for real estate debt and other Investments approved by the Advisor’s Investment Committee; and
(vii)    Negotiate and execute approved Investments and other transactions.
3.02    Asset Management Services.
The Sub-Advisor shall, subject to the direction of the NSAM Sub-Advisor:
(i) Investigate, select, and, on behalf of the NSAM Sub-Advisor, engage and conduct business with such Persons as the Sub-Advisor deems necessary to the proper performance of its obligations hereunder, including but not limited to consultants, accountants, lenders, technical advisors, attorneys, brokers, custodians, agents for collection, insurers, insurance agents, developers, construction companies, contractors, sub-contractors, Property Managers and any and all Persons acting in any other capacity deemed by the Sub-Advisor necessary or desirable for the performance of any of the foregoing services; 
 (ii) Monitor applicable markets and obtain reports where appropriate, concerning the value and condition of Investments of the Company; 
 (iii) Monitor and evaluate the performance of Investments of the Company, provide daily management services in respect of such Investments and perform and supervise the various management and operational functions related to the Company’s Investments; 

8

(iv) Formulate and oversee the implementation of strategies for the administration, promotion, management, operation, maintenance, improvement, redevelopment, repositioning, financing and refinancing, marketing, leasing and disposition of Investments on an overall portfolio basis;
(v) Oversee the performance by the Property Managers of their duties; 
(vi) Conduct periodic on-site property visits of the Properties to inspect the physical condition of the Properties and to evaluate the performance of the Property Managers. 
(vii) Review, analyze and comment upon the operating budgets, capital budgets and leasing plans prepared and submitted by each Property Manager or owner, operator or borrower and aggregate these property budgets into the Company’s overall budget; 
(viii) Engage and coordinate with any third-party Property Manager, operators and borrowers; 
(ix) Coordinate and manage relationships between the Company and any Joint Venture partners; 
 (x) Provide financial and operational planning services and investment portfolio management functions; and
(xi) Provide quarterly portfolio management presentations and other reporting support necessary to enable the NSAM Sub-Advisor to monitor and give directions to the Sub-Advisor, including for the purposes of public reporting, and provide such presentations to the Board, if requested.
3.03    Financing Services.
The Sub-Advisor shall:
(i)    Identify and evaluate potential financing and refinancing sources for the Company’s Investments, engaging a third-party broker if necessary;
(ii)    Negotiate terms, arrange and supervise the execution of financing agreements;
(iii)    Manage relationships between the Company and its lenders;
(iv)    Monitor and oversee the service and compliance with the Company’s debt facilities and other borrowings; and
(v)    Supervise the compilation of financing information concerning the Company’s Investments.
3.04    Administrative Services.

9

The Sub-Advisor, at the expense of the Company, shall assist the NSAM Sub-Advisor in managing legal matters involving the Company’s Investments and the Company will pay the expenses of any litigation.
3.05    Disposition Services.
The Sub-Advisor has the primary responsibility for providing disposition services for the property assets on behalf of the Company.  The Sub-Advisor shall: 
(i)    Consult with and make recommendations to the Advisor’s Investment Committee or the Board, as appropriate, and provide assistance with the evaluation and approval of potential dispositions, sales, syndications or other liquidity events; 
(ii)    Structure and negotiate the terms and conditions of transactions pursuant to which Investments may be sold; and
(iii)    Engage a third-party broker if necessary.
3.06    Mutual Decisions.
Subject to the oversight of the Board, the NSAM Sub-Advisor and the Sub-Advisor agree to jointly engage in and make decisions with respect to the following activities:
(i)    Retention of investment banks; 
(ii)    The use of the name “RXR” in any marketing materials;
(iii)    The extension, termination or suspension of the Offering; 
(iv)    The initiation of follow-on offerings; and
(v)    Mergers, other change-of-control transactions and any liquidity events.
ARTICLE 4
SUB-ADVISORY COMPENSATION
The Sub-Advisor shall be entitled to the compensation described in this Article 4 in connection with the services performed under this Agreement.  The Sub-Advisor may assign any of its rights to receive such compensation or other payments under this Agreement to an Affiliate or third party, and the Company shall honor and pay directly the assignee of any such assignment.
4.01    Fees Payable to the Sub-Advisor.
The Company shall pay the Sub-Advisor 50% of the (A) Acquisition Fees; (B) Asset Management Fees; and (C) Disposition Fees that are otherwise payable by the Company under the Advisory Agreement.  The Advisor and the NSAM Sub-Advisor direct and agree to the foregoing 

10

payments to be paid by the Company to the Sub-Advisor and the Sub-Advisor accepts and agrees such payments by the Company are its full entitlement to remuneration for the services to be provided by it hereunder whether directly to the Company or the NSAM Sub-Advisor.  Notwithstanding the foregoing, if RXR or NRF fails to deliver the Deficit Amount as required under and defined in a Distribution Support Agreement entered into between NRF, RXR and the Company, the Company shall pay to NRF or RXR, as the case may be, fees otherwise due to the Sub-Advisor hereunder until such time as NRF or RXR shall have been repaid any outstanding Deficit Amount.  
4.02    Payment in Shares.
In the event the Sub-Advisor, in its sole discretion, elects to be paid any of the fees set forth in this Article 4 in Shares (in lieu of cash payment), the number of Shares shall be equal to (A) the cash amount of such fee; divided by (B) $9.00.
ARTICLE 5
EXPENSE REIMBURSEMENT
5.01    Expense Reimbursement.  
In addition to the compensation paid to the Sub-Advisor pursuant to Section 4.01 hereof, the Company shall pay the Sub-Advisor the amount of its reimbursable expenses incurred not to exceed 25% of the aggregate amount of the reimbursements payable pursuant to Section 9.01 of the Advisory Agreement, subject to the terms and restrictions therein and the Sub-Advisor shall accept such payments as the entirety and satisfaction of its rights to reimbursement of expenses incurred by it in the performance of this Agreement.
5.02    Timing of and Additional Limitations on Reimbursements. 
(i)    Expenses incurred by the Sub-Advisor on behalf of the Company, the Advisor or the NSAM Sub-Advisor and reimbursable pursuant to this Article 5 shall be reimbursed no less than quarterly to the Sub-Advisor.  The Sub-Advisor shall prepare a statement documenting its expenses incurred on behalf of the Company, the Advisor or the NSAM Sub-Advisor during each quarter and shall deliver such statement to the NSAM Sub-Advisor within 30 days after the end of each quarter.
(ii)    Notwithstanding anything else in this Article 5 to the contrary, the expenses enumerated in this Article 5 shall not become reimbursable to the Sub-Advisor unless and until the Company has raised $2 million in the Initial Public Offering.
(iii)    Commencing upon the fourth fiscal quarter after the commencement of the Initial Public Offering, the following limitation on Operating Expenses shall apply:   The Company shall not reimburse the Sub-Advisor, the Advisor or the NSAM Sub-Advisor at the end of any fiscal quarter for Operating Expenses that in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed (the “Excess Amount”) the greater of 2% of Average Invested Assets or 25% of Net Income for such year unless the Board determines 

11

that such excess was justified, based on unusual and nonrecurring factors that the Board deems sufficient.  If the Board does not approve such excess as being so justified, any Excess Amount paid to the Sub-Advisor during a fiscal quarter shall be repaid to the Company.  If the Board determines such excess was justified, then, within 60 days after the end of any fiscal quarter of the Company for which total reimbursed Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, the Sub-Advisor, at the direction of the Board, shall cause such fact to be disclosed to the Stockholders in writing (or the Company shall disclose such fact to the Stockholders in the next quarterly report of the Company or by filing a Current Report on Form 8-K with the SEC within 60 days of such quarter end), together with an explanation of the factors the Board considered in determining that such excess expenses were justified.  The Company will ensure that such determination will be reflected in the minutes of the meetings of the Board.  All figures used in the foregoing computation shall be determined in accordance with GAAP applied on a consistent basis.
ARTICLE 6
REGULATORY MATTERS
The Sub-Advisor shall (and shall cause any of its Affiliates, agents and sub-contractors (the “Sub-Advisor Designees”) performing the services set forth in Article 3 hereof, to) in connection with the performance of the services hereunder, comply in all material respects with all applicable laws, rules, regulations and statements of policy of any Governmental Authority having jurisdiction over the Sub-Advisor, the Sub-Advisor Designees or the services to be so provided.
ARTICLE 7
VOTING AGREEMENT
The Sub-Advisor agrees that, with respect to any Shares now or hereinafter owned by it or its Affiliates, none of them will vote or consent on matters submitted to the Stockholders of the Company regarding: (i) the removal of the Advisor, the NSAM Sub-Advisor or any of their Affiliates; or (ii) any transaction between the Company, the Advisor, the NSAM Sub-Advisor and/or the Sub-Advisor or any of its or their Affiliates.  This voting restriction shall survive until such time that the Sub-Advisor or any of its Affiliates is no longer serving as the Sub-Advisor. 
ARTICLE 8
RELATIONSHIP OF THE SUB-ADVISOR, THE ADVISOR AND THE  
NSAM SUB-ADVISOR AND THEIR AFFILIATES
8.01    Relationship.
The Advisor, the NSAM Sub-Advisor and the Sub-Advisor are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or 

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joint venturers.  Nothing herein contained shall prevent the Advisor, the NSAM Sub-Advisor or the Sub-Advisor from engaging in other activities, including, without limitation, the rendering of advice to other Persons (including other REITs) and the management of other programs advised, sponsored or organized by the Advisor, the NSAM Sub-Advisor or the Sub-Advisor, respectively, or any of their Affiliates.  Nor shall this Agreement limit or restrict the right of any manager, director, officer, employee or equity holder of the Advisor, the NSAM Sub-Advisor or the Sub-Advisor or their Affiliates to engage in any other business or to render services of any kind to any other Person.  The Sub-Advisor may, with respect to any investment in which the Company is a participant, also render advice and service to each and every other participant therein.  The Sub-Advisor shall promptly disclose to the NSAM Sub-Advisor the existence of any condition or circumstance, existing or anticipated, of which it has knowledge, that creates or could create a conflict of interest between the Sub-Advisor’s obligations to the NSAM Sub-Advisor and/or to the Company and its obligations to or its interest in any other Person.
8.02    Time Commitment.  
The Sub-Advisor shall, and shall cause its Affiliates and their respective employees, officers and agents to, devote to their duties and obligations hereunder, such time as shall be reasonably necessary to conduct the services hereunder in an appropriate manner consistent with the terms of this Agreement.  The NSAM Sub-Advisor acknowledges that the Sub-Advisor and its Affiliates and their respective employees, officers and agents may also engage in activities unrelated to the Company and may provide services to Persons other than the Company, the Advisor, the NSAM Sub-Advisor or any of their Affiliates.
8.03    Investment Opportunities and Allocation.  
The Sub-Advisor shall be required to use commercially reasonable efforts to present a continuing and suitable investment program to the NSAM Sub-Advisor that is consistent with the investment policies and objectives of the Company in accordance with the Registration Statement or subsequent information provided by the NSAM Sub-Advisor, but neither the Sub-Advisor nor any Affiliate of the Sub-Advisor shall be obligated generally to present any particular Investment opportunity to the NSAM Sub-Advisor even if the opportunity is of a character that, if presented to the Company, could be taken by the Company.  In the event an Investment opportunity is identified, the allocation procedures set forth under the caption “Conflicts of Interest—Allocation of Investment Opportunities” in any Prospectus (as may be amended from time to time) shall govern the allocation of the opportunity among the Company, the Sub-Advisor, its Affiliates and any investment vehicles sponsored or managed by RXR or its Affiliates. 
8.04    Exclusivity.
The Advisor and the NSAM Sub-Advisor acknowledge and agree that the Sub-Advisor shall be the sole and exclusive source of Investments for the Company for so long as the Sub-Advisor shall serve in its capacity as Sub-Advisor under this Agreement.

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ARTICLE 9
THE RXR NAME
RXR and its Affiliates have a proprietary interest in the name “RXR.”  RXR hereby grants to the Company a non-transferable, non-assignable, non-exclusive royalty-free right and license to use the name “RXR” for so long as the Sub-Advisor shall serve in its capacity as Sub-Advisor under this Agreement solely in connection with the Company name and, subject to Section 3.06, the marketing of the Company and its business; provided, that the Company shall not be referred to as “RXR” in any marketing materials or otherwise.  Accordingly, and in recognition of this right, if at any time the NSAM Sub-Advisor ceases to retain the Sub-Advisor or one of its Affiliates to perform sub-advisory services for the Company, the Company will, promptly after receipt of written request from RXR, cease to conduct business under or use the name “RXR” or any derivative thereof and the Company shall change its name and the names of any of its subsidiaries to a name that does not contain the name “RXR” or any other word or words that might, in the reasonable discretion of RXR, be susceptible of indication of some form of relationship between the Company and RXR or any its Affiliates.  At such time, the Company will also make any changes to any trademarks, servicemarks or other marks necessary to remove any references to the word “RXR.”  Consistent with the foregoing, it is specifically recognized that RXR or one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment in real estate properties, real estate loans, real estate-related debt securities and other real estate assets) and financial and service organizations having “RXR” as a part of their name, all without the need for any consent (and without the right to object thereto) by the Company, the Advisor or the NSAM Sub-Advisor.  RXR shall govern the Company’s use of the name “RXR” and the Company’s use of the “RXR” name will be in strict accordance with any quality standards and specifications that may be established by the Sub-Advisor and communicated to Company from time to time.
ARTICLE 10
TERM AND TERMINATION OF THE AGREEMENT
10.01    Term.  
This Agreement shall have an initial term ending June 30, 2015 and will be renewed automatically for an unlimited number of successive one-year terms, subject to Sections 10.02 and 10.03.  The Sub-Advisor will be retained by the NSAM Sub-Advisor as the Sub-Advisor in respect of the Company for so long as an affiliate of NorthStar Asset Management Group Inc. serves as the Advisor to the Company, subject to Sections 10.02 and 10.03.  The Sub-Advisor will present to the NSAM Sub-Advisor necessary material for the NSAM Sub-Advisor to monitor and evaluate the performance of the Sub-Advisor annually.     
10.02    Termination by the NSAM Sub-Advisor.

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At the sole option of the NSAM Sub-Advisor, the NSAM Sub-Advisor may terminate this Agreement (i) immediately for Cause; (ii) upon the bankruptcy of the Sub-Advisor; (iii) immediately if RXR issues a Forced Sale/Offer Notice pursuant to Section 5.7 of the NS/RXR Strategic Agreement; (iv) after NRF issues a Forced Sale/Offer Notice pursuant to Section 5.7 of the NS/RXR Strategic Agreement (“NRF Notice”) if the NSAM Sub-Advisor reasonably determines in good faith that the pipeline of acquisition opportunities provided by the Sub-Advisor following NRF Notice (A) is substantially less than before NRF Notice or (B) does not represent sufficient transactions under executed purchase and sale agreements, executed term sheets, or other transactions supported by written documentation to generate sufficient cash flow to cover the rate of distributions paid immediately prior to NRF Notice; or (v) after the Post NRF Holding Date if the NSAM Sub-Advisor reasonably determines in good faith that the pipeline of acquisition opportunities provided by the Sub-Advisor following the Post NRF Holding Date (A) is substantially less than before the Post NRF Holding Date or (B) does not represent sufficient transactions under executed purchase and sale agreements, executed term sheets, or other transactions supported by written documentation to generate sufficient cash flow to cover the rate of distributions paid immediately prior to the Post NRF Holding Date.  The NSAM Sub-Advisor shall provide written notice of termination to the Sub-Advisor of this Agreement pursuant to the immediately preceding sub-clauses (iv)(A), (iv)(B), (v)(A) or (v)(B) (the “Section 10.02 Termination Notice”), which Section 10.02 Termination Notice shall be effective sixty (60) days following the date of delivery to the Sub-Advisor of the Section 10.02 Termination Notice; provided, that if the Sub-Advisor shall have cured, in the sole determination of the NSAM Sub-Advisor, exercised in good faith, the non-performance giving rise to the Section 10.02 Termination Notice prior to the effective date of the Section 10.02 Termination Notice, then the Section 10.02 Termination Notice shall be deemed withdrawn by the NSAM Sub-Advisor.
10.03    Automatic Termination.
The Sub-Advisory Agreement will automatically terminate upon the first date on which any of the following has occurred:  (i) the termination of the Advisory Agreement; or (ii) a default, after all applicable notice and cure periods, if any, under (A) the Term Loan, (B) the Original Series P Preferred Units (as defined in the Series P Supplemental Terms) and/or (C) the Additional Series P Preferred Units (as defined in the Series P Supplemental Terms), and a judgment has been obtained in connection with any such default which is not satisfied within sixty (60) days. 
10.04    Payments on Termination and Survival of Certain Rights and Obligations. 
(i)    After the Termination Date, the Sub-Advisor shall not be entitled to compensation for further services hereunder except it shall be entitled to receive from the Company within 30 days after the effective date of such termination all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Sub-Advisor prior to termination of this Agreement, subject to the 2%/25% Guidelines to the extent applicable, subject to receiving a demand for payment and an accounting from the Sub-Advisor.
(ii)    The Sub-Advisor shall promptly upon termination:

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(a)    pay over to the NSAM Sub-Advisor or the Company, as the case may be, all money collected and held for the account of such party pursuant to this Agreement, if any, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled;
(b)    deliver to the NSAM Sub-Advisor, or if the NSAM Sub-Advisor has been terminated, to the Board, a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the NSAM Sub-Advisor;
(c)    deliver to the NSAM Sub-Advisor, or if the NSAM Sub-Advisor has been terminated, to the Board, all assets and documents of the Company then in the custody of the Sub-Advisor; and
(d)    cooperate with the NSAM Sub-Advisor and the Company to provide an orderly transition of advisory functions, including identification of potential replacements.
ARTICLE 11
REPRESENTATIONS AND WARRANTIES OF THE SUB-ADVISOR
As an inducement to the NSAM Sub-Advisor entering into this Agreement, the Sub-Advisor hereby represents and warrants to the NSAM Sub-Advisor that:
11.01    Skilled Personnel and Adequate Staffing.
The Sub-Advisor individually and by engaging as necessary Affiliates to provide services hereunder shall have and will at all times maintain an adequate number of skilled and licensed employees to professionally carry out the services for which the Sub-Advisor is being engaged consistent with third party service providers to a REIT of similar size and nature to the Company.  In addition, the Sub-Advisor shall at all times maintain all necessary systems, equipment, software and other appropriate items available to perform such services, consistent with third party service providers to a REIT of similar size and nature to the Company.  
11.02    Litigation.
There is no investigation, litigation, arbitration or reference proceeding pending or, to the Sub-Advisor’s knowledge, threatened (i) against the Sub-Advisor or its Affiliates, (ii) against the Sub-Advisor or its Affiliates with respect to their executive management teams or (iii) involving or alleging violations of any federal securities laws, rules of FINRA, blue sky laws or any other applicable securities laws or securities regulations which could prevent or materially impair the ability of the Sub-Advisor (or its Affiliates pursuant to engagements by the Sub-Advisor to perform services described in this Agreement) to perform the Sub-Advisor’s duties and obligations under this Agreement.

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11.03    No Violation.
No proceeding is or was pending against the Sub-Advisor or its Affiliates, nor to the knowledge of the Sub-Advisor and its Affiliates has there been any investigations or any threatened proceeding involving or alleging violations of any federal securities laws, rules of FINRA, blue sky laws or any other applicable securities laws or securities regulations.
11.04    Conflict.
The execution, delivery and performance of this Agreement do not and will not (i) violate, conflict with or result in the breach of the certificate of formation, operating agreement, bylaws or similar organizational documents of the Sub-Advisor, (ii) conflict with or violate, in any material respect, any law or governmental order applicable to the Sub-Advisor or (iii) violate, conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give rise to any rights of or result in, termination, modification, acceleration or cancellation of, any note, bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise, or other instrument or arrangement to which the Sub-Advisor is a party.
11.05    Salaries.
The Sub-Advisor acknowledges that the Sub-Advisor and any of its Affiliates that are engaged by the Sub-Advisor to perform services described in this Agreement are responsible for payment of the salaries of their own employees, except to the extent reimbursable pursuant to Section 5.01 hereof.
ARTICLE 12
COVENANTS OF THE SUB-ADVISOR
The Sub-Advisor covenants and agrees with the NSAM Sub-Advisor as follows:
12.01    Fulfillment of Obligations.
The Sub-Advisor shall diligently endeavor to fulfill its obligations under this Agreement and shall make its personnel and shall engage its Affiliates to provide the appropriate personnel so that its obligations hereunder may be fully discharged in a timely manner consistent with industry standards. 
12.02    Delegation.
Where the Sub-Advisor delegates in whole or in part the discharge of any of its duties or functions and the exercise of any powers and discretion under this Agreement (the “Delegated Functions”) to a delegate (each a “Delegate”) (including, for the avoidance of doubt, any Affiliate of the Sub-Advisor or any Sub-Advisor Designee) (i) the engagement of such delegate, sub-contractor or agent by the Sub-Advisor shall be in accordance with Article 6 hereof; (ii) the Sub-

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Advisor shall continue to remain liable to the NSAM Sub-Advisor for any acts or omissions of any Delegates; and (iii) the Sub-Advisor may disclose to the Delegate such information about the Advisor, the NSAM Sub-Advisor and the Company as the Sub-Advisor considers expedient, necessary or desirable to assist the Delegate with respect to the Delegated Functions.
12.03    Standard of Care.
The Sub-Advisor shall, at all times, have a duty to exercise good faith, in compliance with the terms of this Agreement, and shall use diligent and professional efforts with due care in performing the services hereunder consistent with industry standards.
12.04    Key Persons.
The Sub-Advisor agrees to make two of the following three employees, Scott H. Rechler, Michael Maturo and Jason M. Barnett (each, a “Sub-Advisor Key Employee” and collectively, the “Sub-Advisor Key Employees”) available to provide ongoing non-exclusive services (consistent with this Agreement) for the benefit of the NSAM Sub-Advisor during the term of this Agreement.  The NSAM Sub-Advisor acknowledges that such Sub-Advisor Key Employees will be providing services to other investment programs managed by the Sub-Advisor and its Affiliates; provided, that such services will not materially interfere with the services to be provided to the NSAM Sub-Advisor.  In the event that a Sub-Advisor Key Employee shall no longer be employed by or affiliated with the Sub-Advisor or its Affiliates or shall become otherwise unavailable (other than as a result of reassignment of such Sub-Advisor Key Employee or similar action), the Sub-Advisor shall designate a replacement Sub-Advisor Key Employee; provided, that such designation shall be subject to the prior written consent of the NSAM Sub-Advisor, which consent shall not be unreasonably withheld or delayed.
12.05    Maintenance of Personnel and Staff.
The Sub-Advisor agrees that it shall, individually and by engaging its Affiliates as necessary, maintain an adequate number of skilled and, to extent applicable, licensed employees to carry out professionally the services for which the Sub-Advisor is being engaged consistent with third party service providers providing similar services to a REIT of similar size and nature to the Company.  The Sub-Advisor agrees that it shall maintain sufficient disaster recovery resources and systems to facilitate continuity of the services the Sub-Advisor provides in connection with the Company’s business in the event of disruption affecting the business of the Company.  Furthermore, the Sub-Advisor agrees that it shall notify the NSAM Sub-Advisor as soon as practicable of any event affecting the Sub-Advisor (including, without limitation, any change to the Sub-Advisor’s information technology systems or practices) that is reasonably likely to have a material adverse effect on the ability of the Sub-Advisor to fulfill its duties or activities under this Agreement.
12.06    Cooperation.
The Sub-Advisor shall use its commercially reasonable efforts to cooperate with the NSAM Sub-Advisor, at the NSAM Sub-Advisor’s expense, to provide an orderly transfer and transition of services upon the expiration or earlier termination of this Agreement and shall provide any and all 

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documents, reports and materials belonging or related to the services provided to the NSAM Sub-Advisor hereunder, including any and all other documents, reports and materials otherwise belonging or related to the Advisor, the NSAM Sub-Advisor or the Company.  Furthermore, the Sub-Advisor will, whenever and as reasonably requested, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered any documents that may be necessary to transition efficiently any services covered under this Agreement.
12.07    Performance Monitoring.
The NSAM Sub-Advisor shall have the right, but not the obligation, upon request and during normal business hours, to meet with key personnel and/or other executive level employees of the Sub-Advisor on an ongoing and regular basis to provide feedback and input regarding the performance of the Sub-Advisor’s services hereunder.  The Sub-Advisor shall provide any and all non-proprietary information requested by the NSAM Sub-Advisor in connection with the services being provided under this Agreement at any time during normal business hours and from time to promptly upon request therefrom to the extent not confidential and proprietary to the Sub-Advisor’s business or the business of the Sub-Advisor’s Affiliates.
12.08    Records and Report.
The Sub-Advisor, in the conduct of its responsibilities set forth herein, shall keep and preserve for the period required by the NSAM Sub-Advisor and in any event for not less than six (6) years shall maintain adequate and separate books and records relevant to the provision of the services due hereunder to the NSAM Sub-Advisor, for the Company’s property operations in accordance with GAAP, which shall be supported by sufficient documentation to ascertain that such books and records are properly and accurately recorded; and shall render to the NSAM Sub-Advisor such periodic and special reports as the NSAM Sub-Advisor may reasonably request.  The Sub-Advisor agrees that all records that it maintains for the NSAM Sub-Advisor are property of the NSAM Sub-Advisor and will surrender promptly to the NSAM Sub-Advisor any such records upon the NSAM Sub-Advisor’s request, provided that the Sub-Advisor may retain a copy of such records.  Such books and records shall be available for inspection or duplication by the NSAM Sub-Advisor, the Advisor, the Board and by counsel, auditors and other authorized agents of the Company, the NSAM Sub-Advisor or the Advisor, at any time or from time to time during normal business hours. The Sub-Advisor shall at all reasonable times, upon notice, have access to the books and records of the Company.  At either party’s request, the NSAM Sub-Advisor and the Sub-Advisor will agree in good faith on a form or forms for reporting.
12.09    No Violations or Investigations.
Neither the Sub-Advisor nor any of the Sub-Advisor’s Affiliates that it engages to perform services described in this Agreement shall knowingly engage in any activities that could be deemed a violation of any federal securities laws, rules of FINRA, blue sky laws or any other applicable securities laws or securities regulations.
12.10    Cooperation.

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The Sub-Advisor agrees to cooperate with the NSAM Sub-Advisor in the preparation of the Registration Statement and to promptly provide all information reasonably requested by the NSAM Sub-Advisor in connection with the preparation of the Registration Statement or the preparation of responses to comments of the SEC, FINRA or state securities commissions.  Furthermore, the Sub-Advisor agrees to provide such reasonable information and reasonable assistance in connection with the services provided hereunder with respect to any inspection undertaken by any domestic or foreign regulatory entity in relation to the activities of the Advisor, the NSAM Sub-Advisor, the Company and their service providers, subject to reimbursement of any expenses incurred in connection therewith in accordance with Section 5.01 of this Agreement.
ARTICLE 13
COVENANTS OF THE ADVISOR AND THE NSAM SUB-ADVISOR
The Advisor and the NSAM Sub-Advisor covenant and agree with the Sub-Advisor as follows:
Without the prior written consent of the Sub-Advisor, the Advisor, the NSAM Sub-Advisor and their respective Affiliates shall not:  (i) agree to any amendment to, modification of, or waiver of their rights or obligations under the Advisory Agreement which modifies the fees and reimbursements payable pursuant to the Advisory Agreement or this Agreement, reduces the indemnification of the Sub-Advisor and its Affiliates by the Advisor, the NSAM Sub-Advisor, the Operating Partnership or the Company, modifies the definitions of capitalized terms contained in the Advisory Agreement which are used to define capitalized terms in this Agreement, or otherwise modifies the Advisory Agreement in a manner that is reasonably likely to materially impact the rights or obligations of the Sub-Advisor pursuant to this Agreement; provided, that, with respect to this Article 13, the Sub-Advisor and its Affiliates shall agree to any amendment to the Advisory Agreement or this Agreement necessary to comply with the comments of any SEC, state securities commissions or FINRA or (ii) recommend or agree to nonpayment of or a deferral, waiver or other delay in the payment of the fees, reimbursements or any other compensation payable pursuant to the Advisory Agreement or this Agreement; provided, however, the Advisor expressly reserves the right to recommend or agree to nonpayment of or a deferral, waiver or other delay in the payment of Asset Management Fees payable pursuant to the Advisory Agreement.
ARTICLE 14
INTELLECTUAL PROPERTY RIGHTS
Upon payment therefore, all work product prepared by the Sub-Advisor for the NSAM Sub-Advisor and software purchased at the NSAM Sub-Advisor’s request and the purchase price of which is reimbursed by the NSAM Sub-Advisor or the Company shall become the sole and exclusive property of the NSAM Sub-Advisor or the Company, as the case may be.  Notwithstanding the foregoing, the Sub-Advisor shall not have any right, title and interest in and to, and has not been granted any license to use, any intellectual property of the NSAM Sub-Advisor or the Company.

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ARTICLE 15
LIMITATIONS ON ACTIVITIES
Notwithstanding any provision in this Agreement to the contrary, the Sub-Advisor shall use commercially reasonable efforts not to take any action that, in its sole judgment made in good faith, would:  (i) adversely affect the ability of the Company to qualify as a REIT under the Code unless the Board has determined that the Company will not seek or maintain REIT qualification for the Company; (ii) subject the Company to regulation under the Investment Company Act of 1940, as amended; (iii) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Company, its Shares or its other securities; (iv) require the Sub-Advisor to register as a broker-dealer with the SEC or any state; or (v) violate the Charter or Bylaws.  In the event an action that would violate (i) through (v) of the preceding sentence takes place but such action has been ordered by the NSAM Sub-Advisor, the Sub-Advisor shall notify the NSAM Sub-Advisor of the Sub-Advisor’s judgment of the potential impact of such action and shall refrain from taking such action until it receives further clarification or instructions from the NSAM Sub-Advisor.  In such event, the Sub-Advisor shall have no liability for acting in accordance with the specific instructions of the NSAM Sub-Advisor so given.
ARTICLE 16
ASSIGNMENT
This Agreement may be assigned by the Sub-Advisor to an Affiliate with the written approval of the NSAM Sub-Advisor.  The Sub-Advisor may assign any rights to receive fees or other payments under this Agreement without obtaining the written approval of the NSAM Sub-Advisor.  This Agreement shall not be assigned by the Company or the NSAM Sub-Advisor without the consent of the Sub-Advisor, except in the case of an assignment by the Company or the NSAM Sub-Advisor to a corporation or other organization that is a successor to all of the assets, rights and obligations of the Company or the NSAM Sub-Advisor, as the case may be, in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company and the NSAM Sub-Advisor are bound by this Agreement.  Nothing herein shall be deemed to prohibit or otherwise restrict any transfers or additional issuances of equity interests in the Sub-Advisor nor shall any such transfer or issuance be deemed an assignment for purposes of this Article 16.
ARTICLE 17
INDEMNIFICATION
17.01    Indemnification of the Sub-Advisor.
Except as prohibited by the restrictions provided in this Section 17.01, Section 17.02 and Section 17.03, the Company, the NSAM Sub-Advisor and the Operating Partnership shall jointly and severally indemnify, defend and hold harmless the Sub-Advisor and its Affiliates, including 

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their respective officers, directors, equity holders, partners, members and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance.  Any indemnification of the Sub-Advisor by the Company may be made only out of the net assets of the Company.
Notwithstanding the foregoing, none of the Company, the NSAM Sub-Advisor nor the Operating Partnership shall indemnify the Sub-Advisor or its Affiliates for any loss, liability or expense arising from or out of an alleged violation of federal or state securities laws by such party unless one or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving alleged securities law violations as to the particular indemnitee; (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the particular indemnitee; or (iii) a court of competent jurisdiction approves a settlement of the claims against a particular indemnitee and finds that indemnification of the settlement and the related costs should be made, and the court considering the request for indemnification has been advised of the position of the SEC and of the published position of any state securities regulatory authority in which securities of the Company were offered or sold as to indemnification for violations of securities laws. 
17.02    Limitation on Indemnification.
Notwithstanding the foregoing, the Company, the NSAM Sub-Advisor and the Operating Partnership shall not provide for indemnification of the Sub-Advisor or its Affiliates for any liability or loss suffered by any of them, nor shall any of them be held harmless for any loss or liability suffered by the Company, unless all of the following conditions are met:
(i)    The Sub-Advisor or its Affiliates have determined, in good faith, that the course of conduct that caused the loss or liability was in the best interests of the Company and the NSAM Sub-Advisor.
(ii)    The Sub-Advisor or its Affiliates were acting on behalf of or performing services for the Company or the NSAM Sub-Advisor.
(iii)    Such liability or loss was not the result of negligence or misconduct by the Sub-Advisor or its Affiliates.
(iv)    Such indemnification or agreement to hold harmless is recoverable only out of the Company’s or the NSAM Advisor’s net assets and not from the Stockholders.
17.03    Limitation on Payment of Expenses.
The Company, the NSAM Sub-Advisor and the Operating Partnership shall jointly and severally pay or reimburse reasonable legal expenses and other costs incurred by the Sub-Advisor or its Affiliates in advance of the final disposition of a proceeding only if (in addition to the procedures required by the Maryland General Corporation Law, as amended from time to time) all of the following are satisfied:  (a) the proceeding relates to acts or omissions with respect to the 

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performance of duties or services on behalf of the Company, the NSAM Sub-Advisor or the Operating Partnership, (b) the legal proceeding was initiated by a third party who is not a Stockholder or, if by a Stockholder acting in his or her capacity as such, a court of competent jurisdiction approves such advancement and (c) the Sub-Advisor or its Affiliates undertake to repay the amount paid or reimbursed by the Company, the NSAM Sub-Advisor and the Operating Partnership, together with the applicable legal rate of interest thereon, if it is ultimately determined that the particular indemnitee is not entitled to indemnification.
17.04    Indemnification of the NSAM Sub-Advisor, the Company and the Operating Partnership.
The Sub-Advisor shall indemnify and hold harmless the Company, the NSAM Sub-Advisor and the Operating Partnership, including their respective officers, directors, equity holders, partners, members and employees, from contract or other liability, claims, damages, taxes or losses and related expenses including attorneys’ fees, to the extent that such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and are incurred by reason of the Sub-Advisor’s bad faith, fraud, misfeasance, intentional misconduct, negligence or reckless disregard of its duties; provided, however, that the Sub-Advisor shall not be held responsible for any action of the NSAM Sub-Advisor or the Board in following or declining to follow any advice or recommendation given by the Sub-Advisor.
17.05    No Rights Created.
The provisions of this Article 17 are for the benefit of the indemnitees, their heirs, successors, assigns and administrators and shall not be deemed to create any rights for the benefit of any other Persons.
ARTICLE 18
BANK ACCOUNTS
The Sub-Advisor may establish and maintain one or more bank accounts in the name of the Company to which NSAM Sub-Advisor shall have access or hold jointly and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company, under such terms and conditions as the NSAM Sub-Advisor, or if the NSAM Sub-Advisor has been terminated, the Board, may approve, provided that no funds shall be commingled with the funds of the Sub-Advisor.  The Sub-Advisor shall from time to time render appropriate accountings of such collections and payments to the NSAM Sub-Advisor, or if the NSAM Sub-Advisor has been terminated, to the Board and the independent auditors of the Company. 
ARTICLE 19
NON- SOLICITATION
During the period commencing on the Effective Date and ending one year following the Termination Date, the Company, the Advisor and their respective Affiliates shall not, without the 

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Sub-Advisor’s prior written consent, and the Sub-Advisor and its Affiliates shall not, without the Company’s and the Advisor’s prior written consent, directly or indirectly; (i) solicit or encourage any person to leave the employment or other service of the Company, the Advisor, the Sub-Advisor, or their respective Affiliates, as the case may be; or (ii) hire, on behalf of the Company or the Advisor or the Sub-Advisor, as the case may be, or any other person or entity, any person who has left the employment within the one year period following the termination of that person’s employment with the Company, the Advisor, the Sub-Advisor or their respective Affiliates, as the case may be.  During the period commencing on the date hereof through and ending one year following the Termination Date, neither the Company, the Advisor nor the Sub-Advisor will, whether for its own account or for the account of any other Person, intentionally interfere with the relationship of the Company, the Advisor, the Sub-Advisor or their respective Affiliates, as the case may be, with, or endeavor to entice away from any such party or its Affiliates, any person who during the term of the Agreement is, or during the preceding one-year period, was a tenant, co-investor, co-developer, joint venture or other customer of any such party or its Affiliates.  
ARTICLE 20
MISCELLANEOUS
20.01    Survival.
The provisions of Sections 10.04 and 12.06 and Articles 14, 17 and 20 shall survive the expiration or earlier termination of this Agreement.
20.02    Notices.
Any notice, report, or other communication required or permitted to be given hereunder shall be in writing unless some other method of giving such notice, report or other communication is required by the Charter, the Bylaws or is accepted by the party to whom it is given, and shall be given by being delivered by hand or by overnight mail or other overnight delivery service to the addresses set forth herein;
To the Company:
NorthStar/RXR New York Metro Income, Inc. 
399 Park Avenue 
18th Floor 
New York, New York  10022 
Telephone:  (212) 547-2686 
Facsimile:  (212) 547-2786 
Attention:  Brett Klein
with a copy to (which shall not constitute Notice):
Greenburg Traurig, LLP 
200 Park Avenue 

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New York, NY  10166 
Telephone:  (212) 801-9330 
Facsimile No.:  (212) 805-9330 
Attention:  Judith D. Fryer, Esq.
To the Advisor:
NSAM J-NS/RXR Ltd 
c/o NSAM Luxembourg S.à.r.l. 
6ème étage, 6A route de Trèves  
L-2633 Senningerberg  
Grand-Duchy of Luxembourg
Attention:  General Counsel 
Telephone:  352 26 94 661 

with a copy to (which shall not constitute Notice):
Greenberg Traurig, LLP 
200 Park Avenue  
14th Floor  
New York, NY  10166 
Telephone:  (212) 801-9330 
Facsimile:  (212) 805-9330 
Attention:  Judith D. Fryer, Esq. 
To the NSAM Sub-Advisor:

NSAM Luxembourg S.à.r.l. 
6ème étage, 6A route de Trèves  
L-2633 Senningerberg  
Grand-Duchy of Luxembourg
Attention:  General Counsel 
Telephone:  352 26 94 661 

with a copy to (which shall not constitute Notice):
Greenberg Traurig, LLP 
200 Park Avenue  
14th Floor  
New York, NY  10166 
Telephone:  (212) 801-9330 
Facsimile:  (212) 805-9330 
Attention:  Judith D. Fryer, Esq. 

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To the Sub-Advisor:
RXR NTR Sub-Advisor LLC 
625 RXR Plaza 
Uniondale, New York  11556 
Facsimile No.:  (516) 506-5813 
Attention:  Mr. Jason M. Barnett
with a copy to (which shall not constitute Notice):
Fried, Frank, Harris, Shriver & Jacobson LLP  
One New York Plaza
New York, New York  10004 
Telephone: (212) 859-8142
Facsimile No.: (212) 859-4000 
Attention: Lee S. Parks, Esq.
Any party may at any time give notice in writing to the other party of a change in its address for the purpose of this Section 20.02.
20.03    Modification.
This Agreement shall not be changed, modified, terminated or discharged, in whole or in part, except by an instrument in writing signed by the NSAM Sub-Advisor, the Advisor, the Sub-Advisor and, with respect to Articles 4, 5, 9, 16 and 17 and Sections 3.04 and 20.03, the Company, and with respect to Article 17 and Section 20.03, the Operating Partnership, or their respective successors or permitted assigns.
20.04    Severability.
Each provision of this Agreement shall be considered separate from the others and, if for any reason, any provision or its application is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, then such invalid, illegal or unenforceable provision shall not impair the operation of or affect any other provisions of this Agreement, and either (a) such invalid, illegal or unenforceable provision shall be construed and enforced to the maximum extent legally permissible or (b) the parties shall substitute for the invalid, illegal or unenforceable provision a valid, legal and enforceable provision with a substantially similar effect and intent.
20.05    Construction.
The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of New York applicable to contracts to be made and performed entirely in said state.

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20.06    Entire Agreement.
This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof.  The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.  
20.07    Waiver.
Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence.  No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.
20.08    Gender.
Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.
20.09    Titles Not to Affect Interpretation.
The titles of Articles and Sections contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.
20.10    Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument.  This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.
20.11    Confidentiality.
The Sub-Advisor and its representatives shall hold in confidence all data and information obtained from the Company, the Advisor, the NSAM Sub-Advisor or the Operating Partnership or any of their agents (other than data and information which is publicly available), whether obtained before or after the execution and delivery of this Agreement, and shall not disclose the same to others; provided, however, that the Sub-Advisor may disclose any data and information to its employees, officers, managers, consultants, accountants, attorneys and other agents who are assisting in the performance of its obligations under this Agreement, in each case who are advised 

27

that such data and information is confidential and are directed to keep such information confidential, except to the extent (a) required by a court order, governmental agency, including, the SEC, regulatory body or by law, or (b) in connection with any legal proceeding concerning this Agreement.  Upon the expiration or earlier termination of this Agreement, the Sub-Advisor shall promptly return to the other parties to this Agreement all statements, documents, schedules, exhibits or other written information obtained in connection with this Agreement or the transactions contemplated in this Agreement unless otherwise specifically provided herein.  In the event of a breach or threatened breach by the Sub-Advisor (or its agents or representatives) of this Section 20.11, the Company, the Advisor, the NSAM Sub-Advisor and the Operating Partnership shall be entitled to an injunction restraining the Sub-Advisor from breaching or threatening to breach this Section 20.11 (or its agents or representatives) from disclosing, in whole or in part, such confidential information.  Nothing herein shall be construed as prohibiting the Company, the Advisor, the NSAM Sub-Advisor and the Operating Partnership hereto from pursuing any other available remedy at law or in equity for such breach or threatened breach.  The provisions of this Section 20.11 shall survive expiration or early termination of this Agreement.
20.12    Disagreement as to Computations. 
Notwithstanding anything to the contrary contained herein, in the event that the NSAM Sub-Advisor has advised the Sub-Advisor that it believes that any computation of any fee or expense reimbursement is inconsistent with the computation permitted by the Agreement or by the Advisory Agreement, neither the NSAM Sub-Advisor nor the Sub-Advisor shall submit a request to the Company for payment of such fee or reimbursement of such expense until such disagreement is resolved.  
In connection with any fee, expense reimbursement or other payment due to the Sub-Advisor based on computations by the NSAM Sub-Advisor, the NSAM Sub-Advisor shall provide to the Sub-Advisor such supporting documentation as the Sub-Advisor shall reasonably request to enable it to review the accuracy of the computation.
20.13    Third Party Beneficiary.
The Company shall be a third party beneficiary of the provisions of Sections 8.03, 10.04, 12.08, 12.10, 17.04 and 20.11 and Articles 2, 14, 15 and 20 under this Agreement, the Operating Partnership shall be a third party beneficiary of the provisions of Sections 17.04 and 20.11 under this Agreement, and NRF shall be a third party beneficiary of the provisions of Section 4.01 under this Agreement, each entitled to enforce any rights, duties or obligations owed to it under such provisions, notwithstanding the terms of any other agreements between the Company and any party hereto.

[Signatures on next page]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.
	
		
	NSAM LUXEMBOURG S.À.R.L.

	 
	 

	By:
	________________________________________

	Name:
	Daniel R. Gilbert

	Title:
	Manager

	
		
	RXR NTR SUB-ADVISOR LLC

	 
	 

	By:
	________________________________________

	Name:
	 

	Title:
	 

29

With respect to Articles 4, 5, 9, 16 and 17 and Sections 3.04 and 20.03: 
	
		
	NORTHSTAR/RXR NEW YORK METRO 
INCOME, INC. 

	 
	 

	By:
	________________________________________

	Name:
	Ronald J. Lieberman

	Title:
	Executive Vice President, General Counsel and Secretary

With respect to Articles 17 and Section 20.03: 
	
		
	NORTHSTAR/RXR OPERATING PARTNERSHIP, LP 

	 
	 

	By:
	________________________________________

	Name:
	 

	Title:
	 

	
		
	NSAM J-NS/RXR LTD

	 
	 

	By:
	________________________________________

	Name:
	Daniel R. Gilbert

	Title:
	Director

30

Appendix A 
Advisory Agreement

31

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