Document:

Unassociated Document

    

      EXHIBIT
10.1

      

       

      FORM
OF THIRD AMENDED AND RESTATED SUBSCRIPTION

       

      ESCROW
AGREEMENT

      

      THIS THIRD AMENDED AND RESTATED
SUBSCRIPTION ESCROW AGREEMENT dated as
of                   ,
2010 (this “Agreement”), is entered into
among Realty Capital Securities, LLC (the “Dealer Manager”), American
Realty Capital New York Recovery REIT, Inc. (the “Company”) and Wells Fargo
Bank, National Association, as escrow agent (the “Escrow Agent”).

      

      WHEREAS, the Company intends
to raise cash funds from investors (the “Investors”) pursuant to a
public offering (the “Offering”) of not less than
200,000 (the “Minimum
Amount”) nor more than 150,000,000 shares of common stock, par value
$0.01 of the Company (the “Securities”), pursuant to the
registration statement on Form S-11 of the Company (No. 333-163069) (as amended,
the “Offering
Document”) a copy of which is attached as Exhibit A
hereto.

      

      WHEREAS, the parties entered
into the Escrow Agreement on July 9, 2010 (the “Original Agreement”) under
which the Company established an escrow account with the Escrow Agent for funds
contributed by the Investors with the Escrow Agent, to be held for the benefit
of the Investors and the Company until such time as (i) subscriptions for the
Minimum Amount of the Securities, have been deposited into escrow or otherwise
in accordance with the terms of this Agreement, and (ii) in the case of
subscriptions received from residents of Pennsylvania (“Pennsylvania Investors”),
aggregate subscriptions from all Investors resulting in a total minimum capital
raised of $50,000,000 (the “Original Pennsylvania Minimum
Amount”) and deposited into escrow or otherwise provided in accordance
with the terms of this Agreement.

      

      WHEREAS, the parties amended
and restated the Original Agreement by entering into the Amended and Restated
Escrow Agreement on August 2, 2010 under which the Company established an
additional escrow account with the Escrow Agent for funds contributed pursuant
to subscriptions received from residents of Tennessee (“Tennessee Investors”), to be
held for the benefit of the Investors and the Company until such time as
aggregate subscriptions have been received from all Investors resulting in a
total minimum capital raised of $20,000,000 (the “Tennessee Minimum Amount”)
and deposited into escrow or otherwise provided in accordance with the terms of
this Agreement.

      

      WHEREAS, the parties amended
and restated the Amended and Restated Escrow Agreement by entering into the
Second Amended and Restated Escrow Agreement on August 20, 2010 (the “Amended and Restated
Agreement”) under which the parties amended the term of
escrow.

      

      WHEREAS, the parties have
agreed to correct the Original Pennsylvania Minimum Amount so that funds
contributed pursuant to subscriptions received from Pennsylvania Investors will
be held for the benefit of the Investors and the Company until such time as
aggregate subscriptions have been received from all Investors resulting in a
total minimum capital raised of $75,000,000 (the “Pennsylvania Minimum Amount”)
and deposited into escrow or otherwise provided in accordance with the terms of
this Agreement. 

         

         

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      WHEREAS, the parties have
agreed to make certain amendments and desire to amend and restate the Amended
and Restated Agreement in its entirety.

      

      WHEREAS, the Escrow Agent is
willing to accept appointment as escrow agent only for the expressed duties
outlined herein.

      

      NOW, THEREFORE, in
consideration of the foregoing and of the mutual covenants and agreements
contained herein, the parties hereto, intending to be legally bound, hereby
agree that the Amended and Restated Agreement hereby is amended and restated in
its entirety to read as follows:

      

      1.           Proceeds to be Escrowed. On or
before the first date of the Offering, the Company shall establish an escrow
account with the Escrow Agent to be invested in accordance with Section 9 hereof
entitled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS FOR COMMON STOCK OF
AMERICAN REALTY CAPITAL NEW YORK RECOVERY REIT, INC.” (including such
abbreviations as are required for the Escrow Agent’s systems) (the “Escrow
Account”).  All funds received from subscribers of Securities
(“Investors”, which
term also shall include Pennsylvania Investors and Tennessee Investors unless
the context otherwise requires) in payment for the Securities (“Investor Funds”) will be
delivered to the Escrow Agent within one (1) business day following the day upon
which such Investor Funds are received by the Company or its agents, and shall,
upon receipt by the Escrow Agent, be retained in escrow by the Escrow Agent and
invested as stated herein. During the term of this Agreement, the Company or its
agents shall cause all checks received by and made payable to it in payment for
the Securities to be endorsed in favor of the Escrow Agent and delivered to the
Escrow Agent for deposit in the Escrow Account.

      

      Proceeds received from Pennsylvania
Investors shall be accounted for separately in a subaccount entitled “Escrow
Account for the Benefit of Pennsylvania Investors for American Realty Capital
New York Recovery REIT, Inc.” (including such abbreviations as are required for
the Escrow Agent’s systems) (the “Pennsylvania Escrow
Account”), until such Pennsylvania Escrow Account has closed pursuant to
Section
4.  The Company shall, and shall cause its agents to, cooperate
with the Escrow Agent in separately accounting for Investor Funds from
Pennsylvania Investors in the Pennsylvania Escrow Account, and the Escrow Agent
shall be entitled to rely upon information provided by the Company or its agents
in this regard.

      

      Proceeds received from Tennessee
Investors shall be accounted for separately in a subaccount entitled “Escrow
Account for the Benefit of Tennessee Investors for American Realty Capital New
York Recovery REIT, Inc.” (including such abbreviations as are required for the
Escrow Agent’s systems) (the “Tennessee Escrow Account,”
and together with the Escrow Account and the Pennsylvania Escrow Account, the
“ARC NYRR Escrow
Accounts”), until such Tennessee Escrow Account has closed pursuant to
Section
5.  The Company shall, and shall cause its agents to, cooperate
with the Escrow Agent in separately accounting for Investor Funds from Tennessee
Investors in the Tennessee Escrow Account, and the Escrow Agent shall be
entitled to rely upon information provided by the Company or its agents in this
regard.

      
         

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      The Escrow Agent shall have no duty to
make any disbursement, investment or other use of Investor Funds until and
unless it has good and collected funds.  If any checks deposited in
the ARC NYRR Escrow Accounts are returned or prove uncollectible after the funds
represented thereby have been released by the Escrow Agent, then the Company
shall promptly reimburse the Escrow Agent for any and all costs incurred for
such, upon request, and the Escrow Agent shall deliver the returned checks to
the Company.  The Escrow Agent shall be under no duty or
responsibility to enforce collection of any check delivered to it
hereunder. 
The Escrow Agent reserves the right to deny, suspend or terminate participation
by an Investor to the extent the Escrow Agent deems it advisable or necessary to
comply with applicable laws or to eliminate practices that are not consistent
with the purposes of the Offering.

      

      2.           Investors. Investors
(including Pennsylvania Investors and Tennessee Investors) will be instructed by
the Dealer Manager or any soliciting dealers to remit the purchase price in the
form of checks (hereinafter “instruments of payment”) payable to the order of,
or funds wired in favor of, “WELLS FARGO BANK, NA, ESCROW AGENT FOR AMERICAN
REALTY CAPITAL NEW YORK RECOVERY REIT, INC.”  Any checks made payable
to a party other than the Escrow Agent shall be returned to the soliciting
dealer who submitted the check.  By 12:00 p.m. (Noon) the next
business day after receipt of instruments of payment from the Offering, the
Company or the Dealer Manager shall furnish the Escrow Agent with a list of the
Investors who have paid for the Securities showing the name, address, tax
identification number, amount of Securities subscribed for, the amount paid and
whether such Investors are Pennsylvania Investors or Tennessee
Investors.  The information comprising the identity of Investors shall
be provided to the Escrow Agent in substantially the format set forth in the
“List of Investors” attached hereto as Exhibit B.  The
Escrow Agent shall be entitled to conclusively rely upon the List of Investors
in determining whether Investors are Pennsylvania Investors or Tennessee
Investors, and shall have no duty to independently determine or verify the
same.

      

      All Investor Funds deposited in the ARC
NYRR Escrow Accounts shall not be subject to any liens or charges by the Company
or the Escrow Agent, or judgments or creditors’ claims against the Company,
until and unless released to the Company as hereinafter provided.  The
Company understands and agrees that the Company shall not be entitled to any
Investor Funds on deposit in the ARC NYRR Escrow Accounts and no such funds
shall become the property of the Company, or any other entity except as released
to the Company pursuant to Sections 3, 4 or 5 hereto. The Escrow
Agent will not use the information provided to it by the Company for any purpose
other than to fulfill its obligations as Escrow Agent.  The Company
and the Escrow Agent will treat all Investor information as
confidential.  The Escrow Agent shall not be required to accept any
Investor Funds which are not accompanied by the information on the List of
Investors.

      

      3.           Disbursement of
Funds.  Once the Escrow Agent is in receipt of good and
collected Investor Funds totaling at least the Minimum Amount from Investors
(excluding funds from Pennsylvania Investors and Tennessee Investors), the
Escrow Agent shall notify the Company of same in writing. Additionally, at the
end of the third business day following the Termination Date (as defined in
Section 6), the
Escrow Agent shall notify the Company of the amount of the Investor Funds
received.  If the Minimum Amount has been obtained on or before the
Termination Date, the Escrow Agent shall promptly notify the Company and, upon
receiving

       

      
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      acknowledgement
of such notice and written instructions from the Company’s President or Chief
Financial Officer to disburse the Investor Funds, the Escrow Agent shall
disburse to the Company, by check or wire transfer, the funds in the Escrow
Account, except for amounts payable by the Company to the Escrow Agent pursuant
to Exhibit D to
this Agreement that remain outstanding.  The Escrow Agent agrees that
funds in the Escrow Account shall not be released to the Company until and
unless the Escrow Agent receives written instructions to release the funds from
the Company’s President or Chief Financial Officer.

      

      If the Minimum Amount has not been
obtained prior to the Termination Date, the Escrow Agent shall, within a
reasonable time following the Termination Date, but in no event more than thirty
(30) days after the Termination Date, refund to each Investor by check funds
deposited in the Escrow Account, or shall return the instruments of payment
delivered to Escrow Agent if such instruments have not been processed for
collection prior to such time, directly to each Investor at the address provided
on the List of Investors. Included in the remittance shall be a proportionate
share of the income earned in the account allocable to each Investor’s
investment in accordance with the terms and conditions specified herein, except
that in the case of Investors who have not provided an executed Form W-9 or
substitute Form W-9 (or the applicable substitute Form W-8 for foreign
investors), the Escrow Agent shall withhold the applicable percentage of the
earnings attributable to those Investors in accordance with IRS regulations.
Notwithstanding the foregoing, the Escrow Agent shall not be required to remit
any payments until funds represented by such payments have been collected by
Escrow Agent.

      

      If the Escrow Agent receives written
notice from the Company that the Company intends to reject an Investor’s
subscription, the Escrow Agent shall pay to the applicable Investor(s), within a
reasonable time not to exceed ten (10) business days after receiving notice of
the rejection, by first class United States Mail at the address provided on the
List of Investors, or at such other address as shall be furnished to the Escrow
Agent by the Investor in writing, all collected sums paid by the Investor for
Securities and received by the Escrow Agent, together with the interest earned
on such Investor Funds (determined in accordance with the terms and conditions
specified herein).

      

      4.           Disbursement of Proceeds for
Pennsylvania Investors.   Notwithstanding the foregoing,
proceeds from Pennsylvania Investors will not count towards meeting the Minimum
Amount for purposes of Section
3.  Proceeds received from Pennsylvania Investors will not be
released from the Pennsylvania Escrow Account until the Pennsylvania Minimum
Amount is obtained.  If the Pennsylvania Minimum Amount is obtained at
any time prior to the Termination Date, the Escrow Agent shall promptly notify
the Company and, upon receiving acknowledgement of such notice and written
instructions from the Company’s President or Chief Financial Officer, the Escrow
Agent shall disburse to the Company, by check or wire transfer, the funds in the
Pennsylvania Escrow Account, except for amounts payable by the Company to the
Escrow Agent pursuant to Exhibit D to this
Agreement that remain outstanding.  The Escrow Agent agrees that funds
in the Pennsylvania Escrow Account shall not be released to the Company until
and unless the Escrow Agent receives written instructions to release the funds
from the Company’s President or Chief Financial Officer.

      
        
           

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      If the
Pennsylvania Minimum Amount has not been obtained prior to the Termination Date,
the Escrow Agent shall, within a reasonable time following the Termination Date,
but in no event more than thirty (30) days after the Termination Date, refund to
each Pennsylvania Investor by check funds deposited in the Pennsylvania Escrow
Account, or shall return the instruments of payment delivered to Escrow Agent if
such instruments have not been processed for collection prior to such time,
directly to each Pennsylvania Investor at the address provided on the List of
Investors. Included in the remittance shall be a proportionate share of the
income earned in the account allocable to each Pennsylvania Investor’s
investment in accordance with the terms and conditions specified herein, except
that in the case of Investors who have not provided an executed Form W-9 or
substitute Form W-9, the Escrow Agent shall withhold the applicable percentage
of the earnings attributable to those Investors in accordance with IRS
regulations. Notwithstanding the foregoing, the Escrow Agent shall not be
required to remit any payments until funds represented by such payments have
been collected by Escrow Agent.

      

      If the Escrow Agent is not in receipt
of evidence of subscriptions accepted on or before the close of business on such
date that is 120 days after commencement of the Offering (the Company will
notify the Escrow Agent in writing of the commencement date of the Offering)
(the “Initial Escrow
Period”), and instruments of payment dated not later than that date, for
the purchase of Securities providing for total purchase proceeds from all
nonaffiliated sources that equal or exceed the Pennsylvania Minimum Amount, the
Escrow Agent shall promptly notify the Company. Thereafter, the Company or its
agents shall send to each Pennsylvania Investor by certified mail within ten
(10) calendar days after the end of the Initial Escrow Period a
notification substantially in the form of Exhibit F.  If,
pursuant to such notification, a Pennsylvania Investor requests the return of
his or her Investor Funds within ten (10) calendar days after receipt of the
notification (the “Request
Period”), the Escrow Agent shall promptly refund directly to each
Pennsylvania Investor the collected funds deposited in the Pennsylvania Escrow
Account on behalf of such Pennsylvania Investor or shall return the instruments
of payment delivered, but not yet processed for collection prior to such time,
to the address provided on the List of Investors, upon which the Escrow Agent
shall be entitled to rely, together with interest income earned as determined in
accordance with the terms and conditions specified herein (which interest shall
be paid within five business days after the first business day of the succeeding
month). Notwithstanding the above, if the Escrow Agent has not received an
executed Form W-9 or substitute Form W-9 for such Pennsylvania Investor, the
Escrow Agent shall thereupon remit an amount to such Pennsylvania Investor in
accordance with the provisions hereof, withholding the applicable percentage for
backup withholding required by the Internal Revenue Code, as then in effect,
from any interest income earned on Investor Funds (determined in accordance with
the terms and conditions specified herein) attributable to such Pennsylvania
Investor. However, the Escrow Agent shall not be required to remit such payments
until the Escrow Agent has collected funds represented by such
payments.

      

                    The
Investor Funds of Pennsylvania Investors who do not request the return of their
Investor Funds within the Request Period shall remain in the Pennsylvania Escrow
Account for successive 120-day escrow periods (a “Successive Escrow Period”),
each commencing automatically upon the termination of the prior Successive
Escrow Period, and the Company and Escrow Agent shall follow the notification
and payment procedure set forth above with respect to the Initial Escrow Period
for each Successive Escrow Period until the occurrence of the
earliest

       

      
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      of
(i) the Termination Date, (ii) the receipt and acceptance by the
Company of subscriptions for the purchase of Securities with total purchase
proceeds that equal or exceed the Pennsylvania Minimum Amount and the
disbursement of the Pennsylvania Escrow Account on the terms specified herein,
and (iii) all funds held in the Pennsylvania Escrow Account having been
returned to the Pennsylvania Investors in accordance with the provisions
hereof.

      

      5.           Disbursement of Proceeds for
Tennessee Investors.   Notwithstanding the foregoing, proceeds
from Tennessee Investors will not count towards meeting the Minimum Amount for
purposes of Section
3.  Proceeds received from Tennessee Investors will not be
released from the Tennessee Escrow Account until the Tennessee Minimum Amount is
obtained.  If the Tennessee Minimum Amount is obtained at any time
prior to the Termination Date, the Escrow Agent shall promptly notify the
Company and, upon receiving acknowledgement of such notice and written
instructions from the Company’s President or Chief Financial Officer, the Escrow
Agent shall disburse to the Company, by check or wire transfer, the funds in the
Tennessee Escrow Account, except for amounts payable by the Company to the
Escrow Agent pursuant to Exhibit D to this
Agreement that remain outstanding.  The Escrow Agent agrees that funds
in the Tennessee Escrow Account shall not be released to the Company until and
unless the Escrow Agent receives written instructions to release the funds from
the Company’s President or Chief Financial Officer.

      

      If the
Tennessee Minimum Amount has not been obtained prior to the Termination Date,
the Escrow Agent shall, within a reasonable time following the Termination Date,
but in no event more than thirty (30) days after the Termination Date, refund to
each Tennessee Investor by check funds deposited in the Tennessee Escrow
Account, or shall return the instruments of payment delivered to Escrow Agent if
such instruments have not been processed for collection prior to such time,
directly to each Tennessee Investor at the address provided on the List of
Investors. Included in the remittance shall be a proportionate share of the
income earned in the account allocable to each Tennessee Investor’s investment
in accordance with the terms and conditions specified herein, except that in the
case of Investors who have not provided an executed Form W-9 or substitute Form
W-9, the Escrow Agent shall withhold the applicable percentage of the earnings
attributable to those Investors in accordance with IRS regulations.
Notwithstanding the foregoing, the Escrow Agent shall not be required to remit
any payments until funds represented by such payments have been collected by
Escrow Agent.

      

      6.           Term of Escrow. The “Termination Date” shall be
the earliest of:  (i) all funds held in the ARC NYRR Escrow Accounts
are distributed to the Company or to Investors pursuant to Section 3, for
Pennsylvania Investors, Section 4, or, for
Tennessee Investors, Section 5, and the
Company has informed the Escrow Agent in writing to close each of the ARC NYRR
Escrow Accounts; (ii) the date the Escrow Agent receives written notice from the
Company that it is abandoning the sale of the Securities; and (iii) the date the
Escrow Agent receives notice from the Securities and Exchange Commission or any
other federal or state regulatory authority that a stop or similar order has
been issued with respect to the Offering Document and has remained in effect for
at least twenty (20) days.  After the Termination Date the Company and
its agents shall not deposit, and the Escrow Agent shall not accept, any
additional amounts representing payments by prospective Investors.

       

      
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      7.           Duty and Liability of the Escrow
Agent. The sole duty of the Escrow Agent shall be to receive Investor
Funds and hold them subject to release, in accordance herewith, and the Escrow
Agent shall be under no duty to determine whether the Company or the Dealer
Manager is complying with requirements of this Agreement, the Offering or
applicable securities or other laws in tendering the Investor Funds to the
Escrow Agent. No other agreement entered into between the parties, or any of
them, shall be considered as adopted or binding, in whole or in part, upon the
Escrow Agent notwithstanding that any such other agreement may be referred to
herein or deposited with the Escrow Agent or the Escrow Agent may have knowledge
thereof, including specifically but without limitation any Offering Documents
(including the subscription agreement and exhibits thereto), and the Escrow
Agent’s rights and responsibilities shall be governed solely by this
Agreement.  The Escrow Agent shall not be responsible for or be
required to enforce any of the terms or conditions of any Offering Document
(including the subscription agreement and exhibits thereto) or other agreement
between the Company and any other party.  The Escrow Agent may
conclusively rely upon and shall be protected in acting upon any statement,
certificate, notice, request, consent, order or other document believed by it to
be genuine and to have been signed or presented by the proper party or parties.
The Escrow Agent shall have no duty or liability to verify any such statement,
certificate, notice, request, consent, order or other document, and its sole
responsibility shall be to act only as expressly set forth in this Agreement.
Concurrent with the execution of this Agreement, the Company shall deliver to
the Escrow Agent an authorized signers form in the form of Exhibit C to this
Agreement.  The Escrow Agent shall be under no obligation to institute
or defend any action, suit or proceeding in connection with this Agreement
unless first indemnified to its satisfaction.  The Escrow Agent may
consult counsel of its own choice with respect to any question arising under
this Agreement and the Escrow Agent shall not be liable for any action taken or
omitted in good faith upon advice of such counsel.  The Escrow Agent
shall not be liable for any action taken or omitted by it in good faith except
to the extent that a court of competent jurisdiction determines that the Escrow
Agent’s gross negligence or willful misconduct was the primary cause of loss.
The Escrow Agent is acting solely as escrow agent hereunder and owes no duties,
covenants or obligations, fiduciary or otherwise, to any other person by reason
of this Agreement, except as otherwise stated herein, and no implied duties,
covenants or obligations, fiduciary or otherwise, shall be read into this
Agreement against the Escrow Agent.  If any disagreement between any of the
parties to this Agreement, or between any of them and any other person,
including any Investor, resulting in adverse claims or demands being made in
connection with the matters covered by this Agreement, or if the Escrow Agent is
in doubt as to what action it should take hereunder, the Escrow Agent may, at
its option, refuse to comply with any claims or demands on it, or refuse to take
any other action hereunder, so long as such disagreement continues or such doubt
exists, and in any such event, the Escrow Agent shall not be or become liable in
any way or to any person for its failure or refusal to act, and the Escrow Agent
shall be entitled to continue so to refrain from acting until (i) the rights of
all interested parties shall have been fully and finally adjudicated by a court
of competent jurisdiction, or (ii) all differences shall have been adjudged and
all doubt resolved by agreement among all of the interested persons, and the
Escrow Agent shall have been notified thereof in writing signed by all such
persons. Notwithstanding the foregoing, the Escrow Agent may in its discretion
obey the order, judgment, decree or levy of any court, whether with or without
jurisdiction and the Escrow Agent is hereby authorized in its sole discretion to
comply with and obey any such orders, judgments, decrees or
levies.  If any controversy should arise with respect to this
Agreement the Escrow Agent shall

       

      
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      have the
right, at its option, to institute an interpleader action in any court of
competent jurisdiction to determine the rights of the parties.  IN NO
EVENT SHALL THE ESCROW AGENT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY SPECIAL,
INDIRECT OR CONSEQUENTIAL LOSSES OR DAMAGES OF ANY KIND WHATSOEVER (INCLUDING
WITHOUT LIMITATION LOST PROFITS), EVEN IF THE ESCROW AGENT HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH LOSSES OR DAMAGES AND REGARDLESS OF THE FORM OF
ACTION.  The parties agree that the Escrow Agent has no role in the
preparation of the Offering Documents (including the subscription agreement and
exhibits thereto) and makes no representations or warranties with respect to the
information contained therein or omitted therefrom.  The Escrow Agent
shall have no obligation, duty or liability with respect to compliance with any
federal or state securities, disclosure or tax laws concerning the Offering
Documents (including the subscription agreement and exhibits thereto) or the
issuance, offering or sale of the Securities.  The Escrow Agent shall
have no duty or obligation to monitor the application and use of the Investor
Funds once transferred to the Company, that being the sole obligation and
responsibility of the Company.

      

      8.           Escrow Agent’s Fee. The Escrow
Agent shall be entitled to compensation for its services as stated in the fee
schedule attached hereto as Exhibit D, which
compensation shall be paid by the Company. The fee agreed upon for the services
rendered hereunder is intended as full compensation for the Escrow Agent’s
services as contemplated by this Agreement; provided, however, that if the
conditions for the disbursement of funds under this Agreement are not fulfilled,
or the Escrow Agent renders any material service not contemplated in this
Agreement, or there is any assignment of interest in the subject matter of this
Agreement, or any material modification hereof, or if any material controversy
arises hereunder, or the Escrow Agent is made a party to any litigation
pertaining to this Agreement, or the subject matter hereof, then the Escrow
Agent shall be reasonably compensated for such extraordinary services and
reimbursed for all costs and expenses, including reasonable attorney’s fees,
occasioned by any delay, controversy, litigation or event, and the same shall be
recoverable from the Company.  The Company’s obligations under this
Section 8 shall
survive the resignation or removal of the Escrow Agent and the assignment or
termination of this Agreement.

      

      9.           Investment of Investor Funds.
The Investor Funds shall be deposited in the ARC NYRR Escrow Accounts in
accordance with Section 3, for
Pennsylvania Investors, Section 4, or, for
Tennessee Investors, Section
5.  The Escrow Agent is hereby directed to invest all funds
received under this Agreement, including principal and interest in, the Wells
Fargo Bank Money Market Deposit Account, as directed in writing in the form of
Exhibit E to
this Agreement.  The Escrow Agent shall invest the Investor Funds in
alternative investments in accordance with written instructions as may from time
to time be provided to the Escrow Agent and signed by the Company.  In
the absence of written investment instructions from the Company to the contrary,
the Escrow Agent is hereby directed to invest the Investor Funds in the Wells
Fargo Bank Money Market Deposit Account.  Notwithstanding the
foregoing, Investor Funds shall not be invested in anything other than “Short
Term Investments” in compliance with Rule 15c2-4 of the Securities Exchange Act
of 1934, as amended.  The following are not permissible
investments:  (a) money market mutual funds; (b) corporate debt or
equity securities; (c) repurchase agreements; (d) banker’s acceptance; (e)
commercial paper; and (f) municipal securities.  Any interest received
by the Escrow Agent with respect to the Investor Funds, including reinvested
interest shall

       

      
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      become
part of the Investor Funds, and shall be disbursed pursuant to Section 3, for
Pennsylvania Investors, Section 4, or, for
Tennessee Investors, Section 5.

       

      The Escrow Agent shall be entitled to
sell or redeem any such investments as necessary to make any payments or
distributions required under this Agreement.  The Escrow Agent shall
have no responsibility or liability for any loss which may result from any
investment made pursuant to this Agreement, or for any loss resulting from the
sale of such investment.  The parties acknowledge that the Escrow
Agent is not providing investment supervision, recommendations, or
advice.

      

      The Company on the date of this
Agreement shall provide the Escrow Agent with a certified tax identification
number by furnishing appropriate IRS form W-9 or W-8 (or substitute Form W-9 or
W-8) and other forms and documents that the Escrow Agent may reasonably request,
including without limitation a tax form for each Investor.  The
Company understands that if such tax reporting documentation is not so certified
to the Escrow Agent, the Escrow Agent may be required by the Internal Revenue
Code of 1986, as amended, to withhold a portion of any interest or other income
earned on the Investor Funds pursuant to this Agreement.  For tax
reporting purposes, all interest and other income from investment of the
Investor Funds shall, as of the end of each calendar year and to the extent
required by the Internal Revenue Service, be reported as having been earned by
the party to whom such interest or other income is distributed, in the year in
which it is distributed.

       

      The Company agrees to indemnify and
hold the Escrow Agent harmless from and against any taxes, additions for late
payment, interest, penalties and other expenses that may be assessed against the
Escrow Agent on or with respect to any payment or other activities under this
Agreement unless any such tax, addition for late payment, interest, penalties
and other expenses shall be determined by a court of competent jurisdiction to
have been caused by the Escrow Agent’s gross negligence or willful
misconduct.  The terms of this Section shall survive the termination
of this Agreement and the resignation or removal of the Escrow
Agent.

      

      10.           Notices.  All
notices, requests, demands, and other communications under this Agreement shall
be in writing and shall be deemed to have been duly given (a) on the date of
service if served personally on the party to whom notice is to be given, (b) on
the day of transmission if sent by facsimile/email transmission bearing an
authorized signature to the facsimile number/email address given below, and
written confirmation of receipt is obtained promptly after completion of
transmission, (c) on the day after delivery to Federal Express or similar
overnight courier or the Express Mail service maintained by the United States
Postal Service, or (d) on the fifth day after mailing, if mailed to the party to
whom notice is to be given, by first class mail, registered or certified,
postage prepaid, and properly addressed, return receipt requested, to the party
as follows:

      

      If to the
Company:

      

      405 Park
Avenue

      New York,
New York 10022

      Fax:
(212) 421-5799

      Attention:  Edward
M. Weil, Jr., Executive Vice President and Secretary

       

      
        9

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Attention:  Brian
S. Block, Executive Vice President and Chief Financial Officer

      

      with a
copy to:

      

      Proskauer
Rose LLP

      1585
Broadway

      New York,
New York 10036

      Fax:
(212) 969-2900

      Attention:
Peter M. Fass, Esq.

      Attention:  James
P. Gerkis, Esq.

      

      

      If to the
Dealer Manager:

      

      Realty
Capital Securities, LLC

      Three
Copley Place

      Suite
3300

      Boston,
MA 02116

      Attention:  Louisa
Quarto, President

      

      with a
copy to:

      

      Proskauer
Rose LLP

      1585
Broadway

      New York,
New York 10036

      Fax:
(212) 969-2900

      Attention:
Peter M. Fass, Esq.

      Attention:  James
P. Gerkis, Esq.

      

      and:

      

      American
Realty Capital New York Recovery REIT, Inc.

      405 Park
Avenue

      New York,
New York 10022

      Fax:
(212) 421-5799

      Attention:  Edward
M. Weil, Jr., Executive Vice President and Secretary

      Attention:  Brian
S. Block, Executive Vice President and Chief Financial Officer

      

      

      If to
Escrow Agent:

      

      Wells
Fargo Bank, National Association

      45
Broadway, 14th Floor

      New York,
NY  10006

      Fax:
(212) 509-1716

      Attention:  Matt
Sherman

       

      
        10

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Any party
may change its address for purposes of this Section by giving the other party
written notice of the new address in the manner set forth above.

      

      11.           Indemnification of Escrow Agent.
The Company and the Dealer Manager hereby jointly and severally
indemnify, defend and hold harmless the Escrow Agent from and against, any and
all loss, liability, cost, damage and expense, including, without limitation,
reasonable counsel fees and expenses, which the Escrow Agent may suffer or incur
by reason of any action, claim or proceeding brought against the Escrow Agent
arising out of or relating in any way to this Agreement or any transaction to
which this Agreement relates unless such loss, liability, cost, damage or
expense is finally determined by a court of competent jurisdiction to have been
primarily caused by the willful misconduct of the Escrow Agent.  The
terms of this Section shall survive the termination of this Agreement and the
resignation or removal of the Escrow Agent.

      

      12.           Successors and Assigns. Except
as otherwise provided in this Agreement, no party hereto shall assign this
Agreement or any rights or obligations hereunder without the prior written
consent of the other parties hereto and any such attempted assignment without
such prior written consent shall be void and of no force and effect. This
Agreement shall inure to the benefit of and shall be binding upon the successors
and permitted assigns of the parties hereto.  Any corporation or
association into which the Escrow Agent may be converted or merged, or with
which it may be consolidated, or to which it may sell or transfer all or
substantially all of its corporate trust business and assets as a whole or
substantially as a whole, or any corporation or association resulting from any
such conversion, sale, merger, consolidation or transfer to which the Escrow
Agent is a party, shall be and become the successor Escrow Agent under this
Agreement and shall have and succeed to the rights, powers, duties, immunities
and privileges as its predecessor, without the execution or filing of any
instrument or paper or the performance any further act.

      

      13.           Governing Law; Jurisdiction.
This Agreement shall be construed, performed, and enforced in accordance
with, and governed by, the internal laws of the State of New York, without
giving effect to the principles of conflicts of laws thereof.

      

      14.           Severability. If any part of
this Agreement is declared by any court or other judicial or administrative body
to be null, void, or unenforceable, said provision shall survive to the extent
it is not so declared, and all of the other provisions of this Agreement shall
remain in full force and effect.

      

      15.           Amendments; Waivers. This
Agreement may be amended or modified, and any of the terms, covenants,
representations, warranties, or conditions hereof may be waived, only by a
written instrument executed by the parties hereto, or in the case of a waiver,
by the party waiving compliance. Any waiver by any party of any condition, or of
the breach of any provision, term, covenant, representation, or warranty
contained in this Agreement, in any one or more instances, shall not be deemed
to be nor construed as further or continuing waiver of any such condition, or of
the breach of any other provision, term, covenant, representation, or warranty
of this Agreement.  The Company and the Dealer Manager agree that any
requested waiver, modification or amendment of this Agreement shall be
consistent with the terms of the Offering.

       

      
        11

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      16.           Entire Agreement. This
Agreement contains the entire agreement and understanding among the parties
hereto with respect to the escrow contemplated hereby and supersedes and
replaces all prior and contemporaneous agreements and understandings, oral or
written, with regard to such escrow.

      

      17.           Section Headings. The section
headings in this Agreement are for reference purposes only and shall not affect
the meaning or interpretation of this Agreement.

      

      18.           Counterparts. This Agreement
may be executed (including by facsimile transmission) with counterpart signature
pages or in counterparts, each of which shall be deemed an original, but all of
which shall constitute the same instrument.

      

      19.           Resignation. The Escrow Agent
may resign upon 30 days’ advance written notice to the parties hereto. If a
successor escrow agent is not appointed by the Company within the 30-day period
following such notice, the Escrow Agent may petition any court of competent
jurisdiction to name a successor escrow agent, or may interplead the Investor
Funds with such court, whereupon the Escrow Agent’s duties hereunder shall
terminate.

      

      20.           References to Escrow
Agent.  Other than the Offering Document (including the
subscription agreement and exhibits thereto) and any amendments thereof or
supplements thereto, no printed or other matter in any language (including,
without limitation, notices, reports and promotional material) which mentions
the Escrow Agent’s name or the rights, powers, or duties of the Escrow Agent
shall be issued by the Company or the Dealer Manager, or on the Company’s or the
Dealer Manager’s behalf, unless the Escrow Agent shall first have given its
specific written consent thereto.  Notwithstanding the foregoing, any
amendment or supplement to the Offering Document (including the subscription
agreement and exhibits thereto) that revises, alters, modifies, changes or adds
to the description of the Escrow Agent or its rights, powers or duties hereunder
shall not be issued by the Company or the Dealer Manager, or on the Company’s or
Dealer Manager’s behalf, unless the Escrow Agent has first given specific
written consent thereto.

      

      [Signature
page follows] 

         

        
          12

        

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      

      IN WITNESS WHEREOF, the
parties hereto have caused this Third Amended and Restated Escrow Agreement to
be executed the date and year first set forth above.

      

      

      AMERICAN
REALTY CAPITAL

      NEW YORK
RECOVERY REIT, INC.

      

      

      

      
        
          
            	
                    By:

                  	 	 
      
	 
      	
                    Name: 

                  	
                    Nicholas
      S. Schorsch

                  	 
      
	 
      	
                    Title:

                  	
                    Chief
      Executive Officer

                  	 
      

          

        

      

      

      

      

      

      REALTY
CAPITAL SECURITIES, LLC

      

      

      

      

      
        
          
            	
                    By:

                  	 
      	 
      
	 
      	
                    Name: 

                  	
                    Louisa
      Quarto

                  	 
      
	 
      	
                    Title:

                  	
                    President

                  	 
      

          

        

      

      

      

      

      

      WELLS
FARGO BANK, NATIONAL

      ASSOCIATION,
as Escrow Agent

      

      

      

      

      
        
          
            	
                    By:

                  	 
      	 
      
	 
      	
                    Name: 

                  	 
      	 
      
	 
      	
                    Title:

                  	 
      	 
      

          

        

      

      

      13

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
A

      

      Copy of
Offering Document

      

      

      

      

      14

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
B

      

      List of
Investors

      

      Pursuant
to the Third Amended and Restated Escrow Agreement dated as
of                     ,
2010, among Realty Capital Securities, LLC, American Realty Capital New York
Recovery REIT, Inc., (the “Company”), and Wells Fargo
Bank, National Association (the “Escrow Agent”), the Company
hereby certifies that the following Investors have paid money for the purchase
of shares of the Company’s common stock, par value $0.01 (“Securities”), and the
money has been deposited with the Escrow Agent:

      

      
        
          	
                  1.

                	
                  Name
      of Investor

                
	 	
                   Address

                  Tax
      Identification Number

                  Amount
      of Securities subscribed for

                  Amount
      of money paid and deposited with Escrow Agent

                  Is
      Investor a resident of Pennsylvania (Yes or No)?

                  Is
      Investor a resident of Tennessee (Yes or
  No)?

                

        

      

      
      

      
        
          	
                  2.

                	
                  Name
      of Investor

                
	 	
                   Address

                  Tax
      Identification Number

                  Amount
      of Securities subscribed for

                  Amount
      of money paid and deposited with Escrow Agent

                  Is
      Investor a resident of Pennsylvania (Yes or No)?

                  Is
      Investor a resident of Tennessee (Yes or
  No)?

                

        

      

       

      

      

      

      Dated:
________________________

      

      

      REALTY
CAPITAL SECURITIES, LLC

      

      

      

      

      
        
          
            
              
                
                  	
                          By:

                        	 	 
      
	 
      	
                          Name: 

                        	
                          Louisa
      Quarto

                        
	 
      	
                          Title:

                        	
                          President

                        

                

              

            

          

        

      

      

      15

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Exhibit
C

      

      CERTIFICATE
AS TO AUTHORIZED SIGNATURES

       

      

      
        	
                 
      

              	
                Account
      Name:

              

      

      

      
        	
                 
      

              	
                Account
      Number:

              

      

       

      The
specimen signatures shown below are the specimen signatures of the individuals
who have been designated as Authorized Representatives of American Realty Capital New York
Recovery REIT, Inc. and are authorized to initiate and approve
transactions of all types for the above-mentioned account on behalf of American Realty Capital New York
Recovery REIT, Inc.

       

      

      
        
          	
                  Name/Title

                   

                   

                	
                  Specimen Signature

                
	
                  Nicholas
      S. Schorsch

                  Chief
      Executive Officer

                	
                  _______________________________

                  Signature

                
	 
      	 
      
	
                  William
      M. Kahane

                  President
      and Treasurer

                	
                  _______________________________

                  Signature

                
	 
      	 
      
	
                  Michael
      Happel

                  Executive
      Vice President and Chief Investment Officer

                	
                  _______________________________

                  Signature

                
	 
      	 
      
	
                  Brian
      Block

                  Executive
      Vice President and Chief Financial Officer

                	
                  _______________________________

                  Signature

                
	 
      	 
      
	
                  Edward
      M. Weil, Jr.

                  Executive
      Vice President and Secretary

                	
                  _______________________________

                  Signature

                
	 
      	 
      

        

      

      

16

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        Exhibit
D

        

        
          	
                  Wells
      Fargo Bank

                  Corporate
      Trust Services

                  1445
      Ross Avenue, 2nd
      Floor

                  Mac
      T5303-022

                  Dallas,
      TX 75202

                	
                  [NAME]

                  [POSITION]

                  Tel:  [__________]

                  Fax:  [__________]

                  [EMAIL]

                	
                  [logo]

                

        

        

        GENERAL
SCHEDULE OF FEES

        to
act as ESCROW AGENT for the

        American
Realty Capital New York Recovery REIT, Inc. Subscription Escrow up to
$75,000,000

        

        
          
            	
                    Acceptance Fee:

                  	
                    $500

                  

          

        

         

        Initial
Fees as they relate to Wells Fargo Bank acting in the capacity of Escrow Agent –
includes review of the Escrow Agreement; acceptance of the Escrow appointment;
setting up of Escrow Account(s) and accounting records; and coordination of
receipt of funds for deposit to the Escrow Account(s).

         

        Acceptance
Fee payable at time of Escrow Agreement execution.

        

        
          
            	
                    Escrow Agent Annual Administration
      Fee:

                  	
                    $5,000.00
      on first offering, $3,500 on subsequent

                  
	
                    Pennsylvania
      Sub-Accounting Administration Fee:

                  	
                    $750

                  
	
                    Tennessee
      Sub-Accounting Administration Fee:

                  	
                    $750

                  

          

        

        

        For
ordinary administrative services by Escrow Agent – includes daily routine
account management; investment transactions; cash transaction processing
(including wire and check processing); monitoring claim notices pursuant to the
agreement; disbursement of funds in accordance with the agreement; and mailing
of trust account statements to all applicable parties.  Float credit
received by the bank for receiving funds that remain uninvested are deemed part
of the Paying Agent/Escrow Agent’s compensation.  These fees do not
contemplate paying interest to Investors or providing 1099s which would be the
responsibility of the Company. If individual 1099s, interest checks, interest
accrual calculations or any individual Investor information are required
additional fees will be charged.  For rejected subscriptions or a
failed offering, the following fees will apply.

        

        1099
Reporting $25 each

        Interest
Rate Calculations and Interest Checks/Wires $ 35 each

        Returned
Item Charges $35 each

         

        The administrative fee is payable in
advance, with the first year fee due upon opening of the account. The
Annual Fee covers a full year or any part thereof, and therefore will not be
prorated or refunded in the year of early termination.  These fees do
not include bank activity fees associated with Desktop Deposit
system.  Fees for these services will be provided separately by our
Treasury Management Group.

        

        Wells
Fargo’s bid is based on the following assumptions:

         

        
          	
                  ·

                	
                  Number
      of Escrow Accounts to be established:  Three
  (3)

                
	
                  ·

                	
                  Number
      of Deposits to Escrow Accounts:  Electronically, approximately
      (10-20 per day)

                
	
                  ·

                	
                  Number
      of Withdrawals from Escrow Accounts:  Not more than two per
      week.

                
	
                  ·

                	
                  Term
      of Escrow:  One (1) year

                
	
                  ·

                	
                  APPOINTMENT
      SUBJECT TO RECEIPT OF REQUESTED DUE DILIGENCE INFORMATION AS PER THE USA
      PATRIOT ACT

                

        

         

        17

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        

        
          	
                  ·

                	
                  THIS
      PROPOSAL ASSUMES THAT BALANCES IN THE ACCOUNT WILL BE INVESTED IN MONEY
      MARKET FUNDS

                
	
                  ·

                	
                  ALL
      FUNDS WILL BE RECEIVED FROM OR DISTRIBUTED TO A DOMESTIC OR AN
      APPROVED FOREIGN ENTITY

                
	
                  ·

                	
                  IF
      THE ACCOUNT(S) DOES NOT OPEN WITHIN THREE (3) MONTHS OF THE DATE SHOWN
      BELOW, THIS PROPOSAL WILL BE DEEMED TO BE NULL AND
  VOID

                

        

        

        
          
            	
                    Out-of Pocket
      Expenses:

                  	
                    At
      Cost

                  

          

        

         

        We will
charge for out-of-pocket expenses in response to specific tasks assigned by the
client or provided for in the escrow agreement.  Possible expenses
would be, but are not limited to, express mail and messenger charges, travel
expenses to attend closing or other meetings.   There are no
charges for indirect out-of- pocket expenses.

         

        This
fee schedule is based upon the assumptions listed above which pertain to the
responsibilities and risks involved in Wells Fargo undertaking the role of
Escrow Agent.  These assumptions are based on information provided to
us as of the date of this fee schedule.  Our fee schedule is subject
to review and acceptance of the final documents.  Should any of the
assumptions, duties or responsibilities change, we reserve the right to affirm,
modify or rescind our fee schedule. Extraordinary services (services other than
the ordinary administration services of Escrow Agent described above) are not
included in the annual administration fee and will be billed as incurred at the
rates in effect from time to time.

                                                                                                                                        Submitted
on:                       ,
2010

         

        18

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        Exhibit
E

        

        Agency
and Custody Account Direction

        For
Cash Balances

        Wells
Fargo Bank Money Market Deposit Accounts

        

        

        Direction
to use the following Wells Fargo Bank Money Market Deposit Accounts for Cash
Balances for the escrow account (the “Account”) created under the
Third Amended and Restated Escrow Agreement to which this Exhibit E is
attached.

        

        You are
hereby directed to deposit, as indicated below, or as we shall direct further in
writing from time to time, all cash in the Account in the following money market
deposit account of Wells Fargo Bank, National Association (“Bank”):

        

        Wells
Fargo Bank Money Market Deposit Account (“MMDA”)

        

        We
understand that amounts on deposit in the MMDA are insured, subject to the
applicable rules and regulations of the Federal Deposit Insurance Corporation
(the “FDIC”), in the
basic FDIC insurance amount of $250,000 per depositor, per insured bank. This
includes principal and accrued interest up to a total of $250,000.

        

        We
acknowledge that we have full power to direct investments in the
Account.

        

        We
understand that we may change this direction at any time and that it shall
continue in effect until revoked or modified by us by written notice to
you.

        

        
          
            
              	 
      	
                      American
      Realty Capital New York Recovery REIT, Inc.

                    
	 
      	 
      	 
      
	
                       
      By:  

                    	 
      	 
      
	 
      	
                      Signature

                    	 
      
	 
      	 
      	 
      
	 
      	
                      ­­­­­­­­­­­­­­­­

                    	 
      
	 
      	
                      Date

                    	 
      

            

          

        

        

        

19

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        Exhibit
F

        

        [Form of
Notice to Pennsylvania Investors]

        

        You have
tendered a subscription to purchase shares of common stock of American Realty
Capital New York Recovery REIT, Inc. (the “Company”). Your subscription
is currently being held in escrow.  The guidelines of the Pennsylvania
Securities Commission do not permit the Company to accept subscriptions from
Pennsylvania residents until an aggregate of $75,000,000 of gross offering
proceeds have been received by the Company. The Pennsylvania guidelines provide
that until this minimum amount of offering proceeds is received by the Company,
every 120 days during the offering period Pennsylvania Investors may
request that their subscription be returned.  If you wish to continue
your subscription in escrow until the Pennsylvania minimum subscription amount
is received, nothing further is required.

        

        If you
wish to terminate your subscription for the Company’s common stock and have your
subscription returned please so indicate below, sign, date, and return to the
Escrow Agent, Wells Fargo Bank, National Association at 45 Broadway, 14th Floor,
New York, NY  10006, Attn:  Matt Sherman.

        

        I hereby
terminate my prior subscription to purchase shares of common stock of American
Realty Capital New York Recovery REIT, Inc. and request the return of my
subscription funds.  I certify to American Realty Capital New York
Recovery REIT, Inc. that I am a resident of Pennsylvania.

        

        
          

          
            
              
                
                  
                    
                      	 
      	
                              Signature:

                            	 
      
	 
      	
                              Name:

                            	 
      
	 
      	 
      	
                              (please
      print)

                            
	 
      	
                              Date:

                            	 
      

                    

                  

                

              

            

          

          Please
send the subscription refund to:

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 
      	 
      
	 
      	 
      
	 
      	
                                             

                                          
	 
      	 
      
	 	 
	 	 
	 	 
	 	 

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

        

          

20Unassociated Document

    CONFIDENTIAL

    

    July __,
2010

    

    Mr.
George Carpenter

    Chief
Executive Officer

    CNS
Response, Inc.

    2755
Bristol Street, Suite 285

    Costa
Mesa, CA 92626

    

    Re:  Private Placement of
Securities

    

    Dear Mr.
Carpenter:

     

    This
letter amends our agreement, dated August 3, 2009 (the “Agreement”), between CNS
Response, Inc. (the "Company”) and Maxim Group LLC
(“Maxim” or the “Placement Agent”), pursuant to
which the Company engaged Maxim to act as the lead placement agent in connection
with a proposed private placement of equity securities of the Company.
Capitalized terms used herein and not otherwise defined have the meetings
ascribed to them in the Agreement.

    

    For good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and Maxim agree as follows:

    

    Section 3(b)(iii) of the Agreement is
hereby deleted and replaced in its entirety with the following Section
3(b)(iii):

    

    “(iii)           a
warrant (the “Placement Agent
Warrant”) to purchase such number of shares of Common Stock, equal to
10.0% of the aggregate number of securities sold in the Offering, at 110% of the
offering price of the Units (the “Exercise Price”), as defined
in the Offering Documents, exercisable for a period of five (5) years from the
effective date of the registration statement filed with the Securities and
Exchange Commission (the “SEC”) covering the resale of
the shares of Common Stock: (i) included in the Units, (ii) issuable upon the
exercise of the Warrants, and (iii) underlying any Placement Agent Warrant
issued to Maxim in connection with the Private Placement, subject to customary
anti-dilution protection rights contained in warrants of this type.

    

    The
Placement Agent Warrant will be issued at the applicable Closing pursuant to
Warrant certificates to be signed by the Company, as applicable.  The
Placement Agent Warrant shall provide, among other things:

    

    (A)           that
the Placement Agent Warrant shall:

    

    (1)           be
exercisable at the Exercise Price, as applicable;

    

    (2)           expire
no later than five (5) years from the effective date of the
RegistrationStatement; and

    

    (3)           be
subject to restrictions on transfer in compliance with FINRA Rule
5110(g)(1);

    

    (B)           for
registration rights in compliance with FINRA Rule 5110(f)(2)(H);

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (C)           for
such other terms as are normal and customary for Placement Agent Warrants issued
toplacement agents consistent with FINRA Rule 5110.

    

    The first
paragraph of Section 3(c) of the Agreement is hereby deleted and replaced in its
entirety with the following first paragraph for Section 3(c):

    

    “(c)           For
the administrative processing services provided by Maxim hereunder related to
the sale of the Private Placement Securities to persons not introduced to the
Company by the Placement Agent, including managing subscription paperwork,
arranging for stock certificates for and delivery to such investors, and
associated documentation for the Private Placement to fulfill the compliance and
supervisory procedures related to offerings of this type, the Company will pay
or caused to be paid Maxim the following fees at each Closing:”

    

     Except
as specifically amended as set forth above, all other terms of the
Agreement remain in full force and effect.

     

    This
Amendment constitutes the entire agreement between the Company and Maxim
regarding the amendment of the Agreement, and supersedes any other statements,
representations or promises made concerning such amendment.  This
Amendment only can be modified in a writing signed by the Company and
Maxim.  This Amendment will bind the successors and assigns of both
the Company and Maxim, and inure to the benefit of the Company, Maxim, and their
respective successors and assigns.

    

     

    [Remainder
of Page Left Blank]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    This
Amendment may be executed in counterparts and by facsimile
transmission.

     

    
      
        	 	
                Very
      truly yours,

                 

                MAXIM
      GROUP LLC

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	 	Name 	 
	 	 	Title 	 

      

    

     

     

    Agreed
to and accepted this ____ of July, 2010

    

    CNS
RESPONSE, INC.

    

    

    

    By:
_____________________________

         George
Carpenter

         Chief
Executive Officer

    

     

    [Signature
Page to Amendment to Placement Agent Agreement]

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