Document:

Unassociated Document

    
      EXHIBIT
10.1

       

    

    
      FORM
OF AMENDED AND RESTATED SUBSCRIPTION ESCROW AGREEMENT

      

      THIS 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 “Pennsylvania Minimum Amount”) and
deposited into escrow or otherwise provided in accordance with the terms of this
Agreement. 

       

      
        WHEREAS, the
Company desires to establish 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 miminum 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 have agreed to make
certain amendments and desire to amend and restate the Original 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 Original
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.

      

      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 Realty Capital Securities, LLC (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 Escrow Agent shall be furnished
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 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 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 representing the gross purchase price
of the Securities, 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 representing the gross purchase price of the
Securities, 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.

      

      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 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 Mininum 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 representing the gross
purchase price of the Securities, 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) the close of business on the
one year anniversary of the date of this Agreement; (ii) 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; (iii) the date the Escrow Agent receives written notice from the
Company that it is abandoning the sale of the Securities; and (iv) 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.

      

      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 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
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 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.  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.

      

      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

      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

       

      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.

      

      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]

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN WITNESS WHEREOF, the
parties hereto have caused this 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:

                  	
                     

                  	 
      

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

             

          

        

      

      Exhibit
A

      

      Copy of
Offering Document

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Exhibit
B

      

      List of
Investors

      

      Pursuant
to the 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, 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

                      

              

            

          

        

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      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

              
	 
      	 
      

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      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
$50,000,000

      

      
        	
                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 ACS. 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

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                ·

              	
                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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      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 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

                	 
      

        

      

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      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 $50,000,000 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:Unassociated Document

     

    EXHIBIT
10.2

     

    FORM
OF

     

    SECOND
AMENDED AND RESTATED ADVISORY AGREEMENT

     

    BY
AND AMONG

     

    AMERICAN
REALTY CAPITAL NEW YORK RECOVERY REIT, INC.,

     

    NEW
YORK RECOVERY OPERATING PARTNERSHIP, L.P.,

     

    AND

     

    NEW
YORK RECOVERY ADVISORS, LLC

     

    Dated as of    
    , 2010

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

     

    
      
        
          
            
              	 	 
      	
                      Page

                    
	 	 
      	 
      
	 
      1.	
                      DEFINITIONS.

                    	
                      1

                    
	 	 
      	 
      
	 
      2.	
                      APPOINTMENT.

                    	
                      8

                    
	 	 
      	 
      
	 
      3.	
                      DUTIES
      OF THE ADVISOR.

                    	
                      8

                    
	 	 
      	 
      
	 
      4.	
                      AUTHORITY
      OF ADVISOR.

                    	
                      10

                    
	 	 
      	 
      
	 
      5.	
                      FIDUCIARY
      RELATIONSHIP.

                    	
                      10

                    
	 	 
      	 
      
	 
      6.	
                      NO
      PARTNERSHIP OR JOINT VENTURE.

                    	
                      11

                    
	 	 
      	 
      
	 
      7.	
                      BANK
      ACCOUNTS.

                    	
                      11

                    
	 	 
      	 
      
	  8.	
                      RECORDS;
      ACCESS.

                    	
                      11

                    
	 	 
      	 
      
	 
      9.	
                      LIMITATIONS
      ON ACTIVITIES.

                    	
                      11

                    
	 	 
      	 
      
	 10.	
                      FEES.

                    	
                      11

                    
	 	 
      	 
      
	 11.	
                      EXPENSES.

                    	
                      13

                    
	 	 
      	 
      
	 12.	
                      OTHER
      SERVICES.

                    	
                      15

                    
	 	 
      	 
      
	 13.	
                      REIMBURSEMENT
      TO THE ADVISOR.

                    	
                      15

                    
	 	 
      	 
      
	 14.	
                      OTHER
      ACTIVITIES OF THE ADVISOR

                    	
                      15

                    
	 	 
      	 
      
	 15.	
                      THE
      AMERICAN REALTY CAPITAL NAME

                    	
                      16

                    
	 	 
      	 
      
	 16.	
                      TERM
      OF AGREEMENT

                    	
                      17

                    
	 	 
      	 
      
	 17.	
                      TERMINATION
      BY THE PARTIES

                    	
                      17

                    
	 	 
      	 
      
	 18.	
                      ASSIGNMENT
      TO AN AFFILIATE

                    	
                      17

                    
	 	 
      	 
      
	 19.	
                      PAYMENTS
      TO AND DUTIES OF ADVISOR UPON TERMINATION

                    	
                      17

                    
	 	 
      	 
      
	 20.	
                      INCORPORATION
      OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP
      AGREEMENT.

                    	
                      20

                    
	 	 
      	 
      
	 21.	
                      INDEMNIFICATION
      BY THE COMPANY AND THE OPERATING PARTNERSHIP

                    	
                      20

                    
	 	 
      	 
      
	 22.	
                      INDEMNIFICATION
      BY ADVISOR

                    	
                      21

                    

            

          

        

      

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    TABLE
OF CONTENTS

    (continued)

    

    
      
        
          
            
              
                	 	 
      	
                        
                          Page

                        

                      
	 	 
      	 
      
	 23. 	
                        NOTICES

                      	
                        21

                      
	 	 
      	 
      
	 24.	
                        MODIFICATION

                      	
                        23

                      
	 	 
      	 
      
	 25.	
                        SEVERABILITY

                      	
                        23

                      
	 	 
      	 
      
	 26.	
                        GOVERNING
      LAW

                      	
                        23

                      
	 	 
      	 
      
	 27.	
                        ENTIRE
      AGREEMENT

                      	
                        23

                      
	 	 
      	 
      
	 28.	
                        NO
      WAIVER

                      	
                        23

                      
	 	 
      	 
      
	 29.	
                        PRONOUNS
      AND PLURALS

                      	
                        23

                      
	 	 
      	 
      
	 30.	
                        HEADINGS

                      	
                        23

                      
	 	 
      	 
      
	 31.	
                        EXECUTION
      IN COUNTERPARTS

                      	
                        23

                      

              

            

          

        

      

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

       

    FORM OF

    SECOND AMENDED AND RESTATED
ADVISORY AGREEMENT

     

    THIS
SECOND AMENDED AND RESTATED ADVISORY AGREEMENT (this “Agreement”) dated as
of           , 2010, is
entered into among American Realty Capital New York Recovery REIT, Inc., a
Maryland corporation (the “Company”), New York
Recovery Operating Partnership, L.P., a Delaware limited partnership (the “Operating
Partnership”), and New York Recovery Advisors, LLC, a Delaware limited
liability company.

     

    WITNESSETH

     

    WHEREAS,
the parties entered into the Advisory Agreement on February 17, 2010 (the “Original Agreement”)
and amended and restated the Original Agreement on April 8, 2010 (the “Amended
and Restated Agreement”); and

     

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

     

    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.           DEFINITIONS.  As
used in this Agreement, the following terms have the definitions set forth
below:

     

    “Acquisition
Expenses” means any and all expenses, exclusive of Acquisition Fees,
incurred by the Company, the Operating Partnership, the Advisor or any of their
Affiliates in connection with the selection, evaluation, acquisition,
origination, making or development of any Investments, whether or not acquired,
including, without limitation, legal fees and expenses, travel and
communications expenses, brokerage fees, costs of appraisals, nonrefundable
option payments on property not acquired, accounting fees and expenses, title
insurance premiums and the costs of performing due diligence.

     

    “Acquisition
Fee” means the fees payable to the Advisor or its assignees pursuant to
Section 10(a).

     

    “Advisor”
means New York Recovery Advisors, LLC, a Delaware limited liability company, any
successor advisor to the Company and the Operating Partnership, or any Person to
which New York Recovery Advisors, LLC or any successor advisor subcontracts
substantially all its functions.  Notwithstanding the foregoing, a
Person hired or retained by New York Recovery Advisors, LLC to perform property
management and related services for the Company or the Operating Partnership
that is not hired or retained to perform substantially all the functions of New
York Recovery Advisors, LLC with respect to the Company and the Operating
Partnership as a whole shall not be deemed to be an Advisor.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    “Affiliate”
or “Affiliated”
means with respect to any Person, (i) any other Person directly or
indirectly owning, controlling or holding, with the power to vote, ten percent
(10%) or more of the outstanding voting securities of such Person; (ii) any
other Person ten percent (10%) or more of whose outstanding voting securities
are directly or indirectly owned, controlled or held, with the power to vote, by
such Person; (iii) any other Person directly or indirectly controlling,
controlled by or under common control with such Person; (iv) any executive
officer, director, trustee or general partner of such Person; and (v) any
legal entity for which such Person acts as an executive officer, director,
trustee or general partner.  For purposes of this definition, the
terms “controls,” “is controlled by,” or “is under common control with” shall
mean the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of an entity, whether through ownership
or voting rights, by contract or otherwise.

     

    “Articles of
Incorporation” means the Articles of Incorporation of the Company, as
amended from time to time.

     

    “Asset Management
Fee” means the fees payable to the Advisor pursuant to Section 10(d).

     

    “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 deducting depreciation, bad debts or other non-cash reserves,
computed by taking the average of such values at the end of each month during
such period.  For an equity interest owned in a Joint Venture, the
calculation of Average Invested Assets shall take into consideration the
underlying Joint Venture’s aggregate book value for the equity
interest.

     

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

     

    “By-laws”
means the by-laws of the Company, as amended and as the same are in effect from
time to time.

     

    “Cause”
means (i) fraud, criminal conduct, willful misconduct or illegal or negligent
breach of fiduciary duty by the Advisor, or (ii) if any of the following events
occur:  (A) the Advisor shall breach any material provision of this
Agreement, and after written notice of such breach, shall not cure such default
within thirty (30) days or have begun action within thirty (30) days to cure the
default which shall be completed with reasonable diligence; (B) the Advisor
shall be adjudged bankrupt or insolvent by a court of competent jurisdiction, or
an order shall be made by a court of competent jurisdiction for the appointment
of a receiver, liquidator, or trustee of the Advisor, for all or substantially
all its property by reason of the foregoing, or if a court of competent
jurisdiction approves any petition filed against the Advisor for reorganization,
and such adjudication or order shall remain in force or unstayed for a period of
thirty (30) days; or (C) the Advisor shall institute proceedings for voluntary
bankruptcy or shall file a petition seeking reorganization under the federal
bankruptcy laws, or for relief under any law for relief of debtors, or shall
consent to the appointment of a receiver for itself or for all or substantially
all its property, or shall make a general assignment for the benefit of its
creditors, or shall admit in writing its inability to pay its debts, generally,
as they become due.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Change of
Control” means a change of control of the Company of a nature that would
be required to be reported in response to the disclosure requirements of
Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), as
enacted and in force on the date hereof, whether or not the Company is then
subject to such reporting requirements; provided, however, that,
without limitation, a Change of Control shall be deemed to have occurred
if:  (i) any “person” (within the meaning of Section 13(d) of the
Exchange Act, as enacted and in force on the date hereof) is or becomes the
“beneficial owner” (as that term is defined in Rule 13d-3, as enacted and in
force on the date hereof, under the Exchange Act) of securities of the Company
representing 9.8% or more of the combined voting power of the Company’s
securities then outstanding; (ii) there occurs a merger, consolidation or other
reorganization of the Company which is not approved by the Board of Directors;
(iii) there occurs a sale, exchange, transfer or other disposition of
substantially all the assets of the Company to another Person, which disposition
is not approved by the Board of Directors; or (iv) there occurs a contested
proxy solicitation of the Stockholders that results in the contesting party
electing candidates to a majority of the Board of Directors’ positions next up
for election.

     

    “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.

     

    “Competitive Real
Estate Commission” means a real estate or brokerage commission for the
purchase or sale of an asset which is reasonable, customary and competitive in
light of the size, type and location of the asset.

     

    “Contract Sales
Price” means the total consideration received by the Company for the sale
of an Investment.

     

    “Dealer
Manager” means Realty Capital Securities, LLC, or such other Person
selected by the Board of Directors to act as the dealer manager for the
Offering.

     

    “Dealer Manager
Fee” means three percent (3.0%) of Gross Proceeds from the sale of Shares
in a Primary Offering, payable to the Dealer Manager for serving as the dealer
manager of such Primary Offering.

     

    “Director”
means a member of the Board of Directors.

     

    “Distributions”
means any distributions of money or other property by the Company to
Stockholders, including distributions that may constitute a return of capital
for U.S. federal income tax purposes.

     

    “Excess
Amount”  has the meaning set forth in Section 13.

     

    “Expense
Year” has the
meaning set forth in Section 13.

     

    “Financing
Coordination Fee”  means the fees payable to the Advisor
pursuant to Section 10(e).

     

    
      “GAAP”
means United States generally accepted accounting principles, consistently
applied.

      
      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Good
Reason” means:  (i) any failure to obtain a satisfactory
agreement from any successor to the Company or the Operating Partnership to
assume and agree to perform obligations under this Agreement; or (ii) any
material breach of this Agreement of any nature whatsoever by the Company or the
Operating Partnership.

     

    “Gross
Proceeds” means the aggregate purchase price of all Shares sold for the
account of the Company through an Offering, without deduction for Selling
Commissions, volume discounts, any marketing support and due diligence expense
reimbursement or Organization and Offering
Expenses.  For the purpose of computing Gross Proceeds, the purchase
price of any Share for which reduced Selling Commissions are paid to the Dealer
Manager or a Soliciting Dealer (where net proceeds to the Company are not
reduced) shall be deemed to be the full amount of the offering price per Share
pursuant to the Prospectus for such Offering without reduction.

     

    “Included
Assets” has the meaning set forth in Section 19(b)(ii).

     

    “Indemnitee”
has the meaning set forth in Section 21.

     

    “Independent
Director” has
the meaning set forth in the Articles of Incorporation.

     

    “Investments”
means any investments by the Company or the Operating Partnership, directly or
indirectly, in Real Estate Assets, Real Estate Related Loans or any other
asset.

     

    “Joint
Ventures” means the joint venture or partnership or other similar
arrangements (other than between the Company and the Operating Partnership) in
which the Company or the Operating Partnership or any of their subsidiaries is a
co-venturer, member or partner, which are established to own
Investments.

     

    “Listing” means (i) the listing
of the Shares on a national securities exchange, or (ii) the receipt by the
Stockholders of securities that are listed on a national securities exchange in
exchange for Shares in a merger or any other type of transaction.

     

    “Loans”
means any indebtedness or obligations in respect of borrowed money or evidenced
by bonds, notes, debentures, deeds of trust, letters of credit or similar
instruments, including mortgages and mezzanine loans.

     

    “Management
Agreement ” means the Amended and Restated Management Agreement,
dated as
of             
, 2010, among the Company, the Operating Partnership and New York Recovery
Properties, LLC, as the same may be amended from time to time.

     

    “Memorandum”
means the private placement memorandum of the Company prepared in connection
with the Private Offering, as the same may be amended or supplemented from time
to time.

     

    “NASAA REIT
Guidelines” means the Statement of Policy Regarding Real Estate
Investment Trusts published by the North American Securities Administrators
Association on May 7, 2007, as the same may be amended from time to
time.

     

    “Net
Income” means, for any period, the Company’s total revenues applicable to
such period, less the total expenses applicable to such period other than
additions to reserves for depreciation, bad debts or other similar non-cash
reserves and excluding any gain from the sale of the Company’s
assets.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
       

      “Net Sales
Proceeds” has the meaning set forth in the Articles of
Incorporation.

    

     

    “Notice”
has the meaning set forth in Section
23.

     

    “Offering”
means the public offering of Shares pursuant to a Prospectus.

     

    “Operating
Partnership Agreement” means the Amended and Restated Agreement of
Limited Partnership of the Operating Partnership, among the Company, the
Operating Partnership and New York Recovery Special Limited Partnership, LLC, as
the same may be amended from time to time.

     

    “OP
Units”  means units of limited partnership interest in the
Operating Partnership.

     

    “Organization and
Offering Expenses” means all expenses (other than the Selling Commission
and the Dealer Manager Fee) to be paid by the Company in connection with an
Offering, including legal, accounting, printing, mailing and filing fees,
charges of the escrow holder and transfer agent, charges of the Advisor for
administrative services related to the issuance of Shares in an Offering,
reimbursement of the Advisor for costs in connection with preparing supplemental
sales materials, the cost of bona fide training and education meetings held by
the Company (primarily the travel, meal and lodging costs of the registered
representatives of broker-dealers), attendance and sponsorship fees and cost
reimbursement for employees of the Company’s Affiliates to attend retail
seminars conducted by broker-dealers and, in special cases, reimbursement to
soliciting broker-dealers for technology costs associated with an Offering,
costs and expenses related to such technology costs, and costs and expenses
associated with facilitation of the marketing of the Shares and the ownership of
Shares by such broker-dealer’s customers.

     

    “Other Liquidity
Event” means a liquidation or the sale of all or substantially all the
Investments (regardless of the form in which such sale shall
occur).  For clarification purposes, a transaction of the type
described in clause (ii) of the definition of Listing shall not be an Other
Liquidity Event.

    
       

      “Oversight
Fees” has the meaning set forth in Section 4.2 of the Management
Agreement.

       

    

    “Person”
means an individual, corporation, partnership, joint venture, association,
company (whether of limited liability or otherwise), trust, bank or other
entity, or any government or any agency or political subdivision of a
government.

     

    “Preferred
Stock” means the shares of the Company’s Series A Convertible Preferred
Stock, par value $0.01 per share.

     

    “Primary
Offering” means the portion of an Offering other than the Shares offered
pursuant to the Company’s distribution reinvestment plan.

     

    “Private
Offering” means the private offering of Preferred Stock pursuant to the
Memorandum.

     

    “Property
Disposition Fee” means the fees payable to the Advisor pursuant to Section 10(c).

     

    “Prospectus”
means a final prospectus of the Company filed pursuant to Rule 424(b) of the
Securities Act, as the same may be amended or supplemented from time to
time.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    “Real Estate
Assets” means any investment by the Company or the Operating Partnership
in unimproved and improved Real Property (including fee or leasehold interests,
options and leases), directly, through one or more subsidiaries or through a
Joint Venture.

     

    “Real Estate
Related Loans” means any investments in mortgage loans and other types of
real estate related debt financing, including, mezzanine loans, bridge loans,
convertible mortgages, wraparound mortgage loans, construction mortgage loans,
loans on leasehold interests and participations in such loans, by the Company or
the Operating Partnership, directly, through one or more subsidiaries or through
a Joint Venture.

     

    “Real
Property” means real property owned from time to time by the Company or
the Operating Partnership, directly, through one or more subsidiaries or through
a Joint Venture, which consists of (i) land only, (ii) land, including
the buildings located thereon, (iii) buildings only, or (iv) such
investments the Board or the Advisor designate as Real Property to the extent
such investments could be classified as Real Property.

     

    “REIT”
means a “real estate investment trust” under Sections 856 through 860 of
the Code.

     

    “Sale” or
“Sales”
means any transaction or series of transactions whereby:  (i) the
Company or the Operating Partnership directly or indirectly (except as described
in other subsections of this definition) sells, grants, transfers, conveys, or
relinquishes its direct or indirect ownership of any Real Estate Assets, Loan or
other Investment or portion thereof, including the lease of any Real Estate
Assets consisting of a building only, and including any event with respect to
any Real Estate Assets that gives rise to a significant amount of insurance
proceeds or condemnation awards; (ii) the Company or the Operating
Partnership directly or indirectly (except as described in other subsections of
this definition) sells, grants, transfers, conveys, or relinquishes its
ownership of all or substantially all the direct or indirect interest of the
Company or the Operating Partnership in any Joint Venture in which it is a
co-venturer, member or partner; (iii) any Joint Venture directly or
indirectly (except as described in other subsections of this definition) in
which the Company or the Operating Partnership as a co-venturer, member or
partner sells, grants, transfers, conveys, or relinquishes its direct or
indirect ownership of any Real Estate Assets or portion thereof, including any
event with respect to any Real Estate Assets which gives rise to insurance
claims or condemnation awards; or (iv) the Company or the Operating
Partnership directly or indirectly (except as described in other subsections of
this definition) sells, grants, conveys or relinquishes its direct or indirect
interest in any Real Estate Related Loans or portion thereof (including with
respect to any Real Estate Related Loan, all payments thereunder or in
satisfaction thereof other than regularly scheduled interest payments) and any
event which gives rise to a significant amount of insurance proceeds or similar
awards; or (v) the Company or the Operating Partnership directly or
indirectly (except as described in other subsections of this definition) sells,
grants, transfers, conveys, or relinquishes its direct or indirect ownership of
any other asset not previously described in this definition or any portion
thereof, but not including any transaction or series of transactions specified
in clauses (i) through (v) above in which the proceeds of such
transaction or series of transactions are reinvested by the Company in one or
more assets within 180 days thereafter.

     

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

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    “Selling
Commission” means seven percent (7.0%) of Gross Proceeds from the sale of
Shares in a Primary Offering payable to the Dealer Manager and reallowable to
Soliciting Dealers with respect to Shares sold by them.

     

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

     

    “Soliciting
Dealers” means broker-dealers who are members of the Financial Industry
Regulatory Authority Inc., or that are exempt from broker-dealer registration,
and who, in either case, have executed soliciting dealer or other agreements
with the Dealer Manager to sell Shares.

     

    “Sponsor”
means American Realty Capital III, LLC, a Delaware limited liability
company.

     

    “Stockholders”
means the registered holders of the Shares.

     

    “Subordinated
Incentive Listing Fee” means the fees payable to the Advisor or its
assignees pursuant to Section 10(f).

     

    “Subordinated
Participation In Net Sale Proceeds” means the fees payable to the Advisor
or its assignees pursuant to Section 10(g).

     

    “Subordinated
Termination Fee” means the fees payable to the Advisor or its assignees
pursuant to Section 19(b).

     

    “Termination
Date” means the date of termination of this Agreement.

     

    “Total Operating
Expenses” of a Person means the aggregate of all costs and expenses paid
or incurred by such Person, but excluding Organization and Offering Expenses,
interest payments, taxes, non-cash expenditures, any Acquisitions Fees or
Acquisition Expenses.  The definition of “Total Operating Expenses”
set forth above is intended to encompass only those expenses which are required
to be treated as Total Operating Expenses under the NASAA REIT
Guidelines.  As a result, and notwithstanding the definition set forth
above, any expense of the Company which is not part of Total Operating Expenses
under the NASAA REIT Guidelines shall not be treated as part of Total Operating
Expenses for purposes hereof.

     

    “2%/25%
Guidelines” has the meaning set forth in Section 13.

     

    2.           APPOINTMENT.  The
Company and the Operating Partnership hereby appoint the Advisor to serve as
their advisor to perform the services set forth herein on the terms and subject
to the conditions set forth in this Agreement and subject to the supervision of
the Board, and the Advisor hereby accepts such appointment.

     

    3.           DUTIES
OF THE ADVISOR.  The Advisor will
use its reasonable best efforts to present to the Company and the Operating
Partnership potential investment opportunities and to provide 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.  In performance of this undertaking, subject to the supervision
of the Board and consistent with the provisions of the Articles of
Incorporation, By-laws and the Operating Partnership Agreement, the Advisor,
directly or indirectly, will:

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    (a)           serve
as the Company’s and the Operating Partnership’s investment and financial
advisor;

     

    (b)           provide
the daily management for the Company and the Operating Partnership and perform
and supervise the various administrative functions necessary for the day-to-day
management of the operations of the Company and the Operating
Partnership;

     

    (c)           investigate,
select and, on behalf of the Company and the Operating Partnership, engage and
conduct business with and supervise the performance of such Persons as the
Advisor deems necessary to the proper performance of its obligations hereunder
(including consultants, accountants, correspondents, lenders, technical
advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow
agents, depositaries, custodians, agents for collection, insurers, insurance
agents, banks, builders, developers, property owners, real estate management
companies, real estate operating companies, securities investment advisors,
mortgagors, the registrar and the transfer agent and any and all agents for any
of the foregoing), including Affiliates of the Advisor and Persons acting in any
other capacity deemed by the Advisor necessary or desirable for the performance
of any of the foregoing services (including entering into contracts in the name
of the Company and the Operating Partnership with any of the
foregoing);

     

    (d)           consult
with the officers and Directors of the Company and assist the Directors in the
formulation and implementation of the Company’s financial policies, and, as
necessary, furnish the Board with advice and recommendations with respect to the
making of investments consistent with the investment objectives and policies of
the Company and in connection with any borrowings proposed to be undertaken by
the Company or the Operating Partnership;

     

    (e)           subject
to the provisions of Section 4,
(i) participate in formulating an investment strategy and asset allocation
framework; (ii) locate, analyze and select potential Investments;
(iii) structure and negotiate the terms and conditions of transactions
pursuant to which acquisitions and dispositions of Investments will be made;
(iv) research, identify, review and recommend acquisitions and dispositions
of Investments to the Board and make Investments on behalf of the Company and
the Operating Partnership in compliance with the investment objectives and
policies of the Company; (v) arrange for financing and refinancing and make
other changes in the asset or capital structure of, and dispose of, reinvest the
proceeds from the sale of, or otherwise deal with, Investments; (vi) enter
into leases and service contracts for Real Estate Assets and, to the extent
necessary, perform all other operational functions for the maintenance and
administration of such Real Estate Assets; (vii) actively oversee and
manage Investments for purposes of meeting the Company’s investment objectives
and reviewing and analyzing financial information for each of the Investments
and the overall portfolio; (viii) select Joint Venture partners, structure
corresponding agreements and oversee and monitor these relationships; (ix)
oversee, supervise and evaluate Affiliated and non-Affiliated property managers
who perform services for the Company or the Operating Partnership;
(x) oversee Affiliated and non-Affiliated Persons with whom the Advisor
contracts to perform certain of the services required to be performed under this
Agreement; (xi) manage accounting and other record-keeping functions for
the Company and the Operating Partnership, including reviewing and analyzing the capital and operating budgets for the Real
Estate Assets and generating an annual budget for the Company;
(xii) recommend various liquidity events to the Board when appropriate; and
(xiii) source and structure Real Estate Related Loans;

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    (f)           upon
request, provide the Board with periodic reports regarding prospective
investments;

     

    (g)           make
investments in, and dispositions of, Investments within the discretionary limits
and authority as granted by the Board;

     

    (h)           negotiate
on behalf of the Company and the Operating Partnership with banks or other
lenders for Loans to be made to the Company, the Operating Partnership or any of
their subsidiaries, and negotiate with investment banking firms and
broker-dealers on behalf of the Company, the Operating Partnership or any of
their subsidiaries, or negotiate private sales of Shares or obtain Loans for the
Company, the Operating Partnership or any of their subsidiaries, but in no event
in such a manner so that the Advisor shall be acting as broker-dealer or
underwriter; provided,
however, that any fees
and costs payable to third parties incurred by the Advisor in connection with
the foregoing shall be the responsibility of the Company, the Operating
Partnership or any of their subsidiaries;

     

    (i)           obtain
reports (which may, but are not required to, be prepared by the Advisor or its
Affiliates), where appropriate, concerning the value of Investments or
contemplated investments of the Company and the Operating
Partnership;

     

    (j)           from
time to time, or at any time reasonably requested by the Board, make reports to
the Board of its performance of services to the Company and the Operating
Partnership under this Agreement, including reports with respect to potential
conflicts of interest involving the Advisor or any of its
Affiliates;

     

    (k)           provide
the Company and the Operating Partnership with all necessary cash management
services;

     

    (l)           deliver
to, or maintain on behalf of, the Company copies of all appraisals obtained in
connection with the investments in any Real Estate Assets as may be required to
be obtained by the Board;

     

    (m)           notify
the Board of all proposed material transactions before they are
completed;

     

    (n)           effect
any private placement of OP Units, tenancy-in-common (TIC) or other
interests in Investments as may be approved by the Board;

     

    (o)           perform
investor-relations and Stockholder communications functions for the
Company;

     

    (p)           render
such services as may be reasonably determined by the Board of Directors
consistent with the terms and conditions herein; 

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    (q)           maintain
the Company’s accounting and other records and assist the Company in filing all
reports required to be filed by it with the Securities and Exchange Commission,
the Internal Revenue Service and other regulatory agencies; and

     

    (r)           do
all things reasonably necessary to assure its ability to render the services
described in this Agreement.

     

    Notwithstanding
the foregoing, the Advisor may delegate any of the foregoing duties to any
Person so long as the Advisor or its Affiliate remains responsible for the
performance of the duties set forth in this Section 3.

     

    4.           AUTHORITY
OF ADVISOR.

     

    (a)           Pursuant
to the terms of this Agreement (including the restrictions included in this
Section 4
and in Section 9), and
subject to the continuing and exclusive authority of the Board over the
supervision of the Company, the Company, acting on the authority of the Board of
Directors, hereby delegates to the Advisor the authority to perform the services
described in Section 3.

     

    (b)           Notwithstanding
anything herein to the contrary, all Investments will require the prior approval
of the Board, any particular Directors specified by the Board or any committee
of the Board specified by the Board, as the case may be.

     

    (c)           If
a transaction requires approval by the Independent Directors, the Advisor will
deliver to the Independent Directors all documents and other information
reasonably required by them to evaluate properly the proposed
transaction.

     

    (d)           The
Board may, at any time upon the giving of notice to the Advisor, modify or
revoke the authority set forth in this Section 4; provided, however, that such
modification or revocation shall be effective upon receipt by the Advisor and
shall not be applicable to investment transactions to which the Advisor has
committed the Company or the Operating Partnership prior to the date of receipt
by the Advisor of such notification.

     

    5.           FIDUCIARY
RELATIONSHIP.  The
Advisor, as a result of its relationship with the Company and the Operating
Partnership pursuant to this Agreement, stands in a fiduciary relationship with
the Stockholders and the partners in the Operating
Partnership. 

     

    6.           NO
PARTNERSHIP OR JOINT VENTURE.  The
parties to this Agreement are not partners or joint venturers with each other
and nothing herein shall be construed to make them partners or joint venturers
or impose any liability as such on either of them.

     

    7.           BANK
ACCOUNTS.  The
Advisor may establish and maintain one or more bank accounts in the name of the
Company or the Operating Partnership 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 or the Operating Partnership, under such terms and
conditions as the Board may approve, provided that no funds shall be commingled
with the funds of the Advisor; and, upon request, the Advisor shall render
appropriate accountings of such collections and payments to the Board and to the
auditors of the Company.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    8.           RECORDS;
ACCESS.  The
Advisor shall maintain appropriate records of all its activities hereunder and
make such records available for inspection by the Directors and by counsel,
auditors and authorized agents of the Company, at any time and from time to
time.  The Advisor shall at all reasonable times have access to the
books and records of the Company and the Operating Partnership.

     

    9.           LIMITATIONS
ON ACTIVITIES  Notwithstanding
anything herein to the contrary, the Advisor shall refrain from taking any
action which, in its sole judgment, or in the sole judgment of the Company, made
in good faith, would (a) adversely affect the status of the Company as a
REIT, unless the Board has determined that REIT qualification is not in the best
interests of the Company and its Stockholders, (b) subject the Company to
regulation under the Investment Company Act of 1940, as amended, or
(c) violate any law, rule, regulation or statement of policy of any
governmental body or agency having jurisdiction over the Company, the Operating
Partnership or the Shares, or otherwise not be permitted by the Articles of
Incorporation or By-laws, except if such action shall be ordered by the Board,
in which case the Advisor shall notify promptly the Board of the 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
Board.  In such event, the Advisor shall have no liability for acting
in accordance with the specific instructions of the Board so given.

     

    10.         FEES.

     

    (a)           Acquisition
Fees.  The Company shall
pay an Acquisition Fee to the Advisor or its assignees as compensation for
services rendered in connection with the investigation, selection and
acquisition (by purchase, investment or exchange) of Investments. If the
Advisor is terminated without cause pursuant to Section 17(a), the Advisor
or its assignees shall be entitled to an Acquisition Fee for any
Investments acquired after the Termination Date for which a contract to
acquire any such Investment had been entered into at or prior to the Termination
Date. The total Acquisition Fee payable to the Advisor or its assignees
shall equal one percent (1.0%) of the purchase price of Real Estate Assets and
one percent (1.0%) of the amount advanced for Real Estate Related Loans or other
Investments (other than Real Estate Assets), along with reimbursement of
acquisition expenses.  The purchase price of the Real Estate
Assets shall equal the amount paid or allocated to the purchase, development or
improvement of the Real Estate Assets inclusive of expenses related thereto and
the amount of debt associated with such Investment.  The purchase
price allocable for an Investment held through a Joint Venture shall equal the
product of (i) the purchase price of, or the amount advanced for, the
Investment, as applicable, and (ii) the direct or indirect ownership
percentage in the Joint Venture held directly or indirectly by the Company or
the Operating Partnership.  For purposes of this section, “ownership
percentage” shall be the percentage of capital stock, membership interests,
partnership interests or other equity interests held by the Company or the
Operating Partnership, without regard to classification of such equity
interests.  The Company shall pay to the Advisor or its assignees the
Acquisition Fee promptly upon the closing of the Investment.  In
addition, if during the period ending two years after the close of the initial
Offering, the Company sells an Investment and then reinvests in other
Investments, the Company will pay to New York Recovery Advisors, LLC one percent
(1.0%) of the purchase price of Real Estate Assets and one percent (1.0%) of the
amount advanced for Real Estate Related Loans or other Investments (other than
Real Estate Assets), along with reimbursement of acquisition
expenses.

     

    
      
         

      

      
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    (b)           Limitation
on Total Acquisition Fees, Financing Coordination Fees and Acquisition
Expenses.  The total of all
Acquisition Fees, Financing Coordination Fees and Acquisition Expenses payable
in connection with any Investment or any reinvestment shall not exceed four
and one-half percent (4.5%) of the “contract purchase price”, as defined in
the Articles of Incorporation, of the Investment acquired or four and one-half
percent (4.5%) of the amount advanced for an Investment.

     

    (c)           Property
Disposition Fee.  In connection
with a Sale of an Investment (except for such Investments that are traded on a
national securities exchange) in which the Advisor or any Affiliate of the
Advisor provides a substantial amount of services, as determined by the
Independent Directors, the Company shall pay to the Advisor or its assignees a
Property Disposition Fee up to the lesser of (i) two percent (2.0%) of the
Contract Sales Price of such Investment and (ii) one-half of the total brokerage
commission paid if a non-Affiliate is also involved; provided, however, that in no
event may the Property Disposition Fee paid to the Advisor, its Affiliates and
non-Affiliates exceed the lesser of six percent (6.0%) of the Contract Sales
Price and a Competitive Real Estate Commission.

     

    (d)           Asset
Management Fee.  The Company shall
pay an Asset Management Fee to the Advisor or its assignees as compensation for
services rendered in connection with the management of the Company’s assets in
an amount equal to 0.75% per annum of Average Invested Assets; provided, however, that no
Asset Management Fee will be payable on assets acquired using the proceeds from
the Private Offering until the Company has sufficient cash flow to pay dividends
on the Preferred Stock; provided further, however,
that the Asset Management Fee shall be reduced by any amounts
payable to New York Recovery Properties, LLC under Section 4.2 of the
Management Agreement (the “Oversight Fees”), such that the aggregate of
the Asset Management Fee and the Oversight Fees does not exceed 0.75% per
annum of Average Invested Assets. The Asset Management Fee is
payable semiannually in advance, on January 1 and July 1, in the amount of
0.375% of Average Invested Assets for the preceding semiannual
period.

     

    (e)           Financing
Coordination Fee.  The Company shall
pay a Financing Coordination Fee to the Advisor or its assignees in connection
with the financing of any Investment, assumption of any Loans with respect to
any Investment or refinancing of any Loan in an amount equal to 0.75% of the
amount made available and/or outstanding under any such Loan, including any
assumed Loan.  The Advisor may reallow some of or all this Financing
Coordination Fee to reimburse third parties with whom it may subcontract to
procure any such Loan.

     

    (f)           Subordinated
Incentive Listing Fee.  Upon Listing of
the Shares, the Company shall pay the Advisor or its assignees a Subordinated
Incentive Listing Fee in the form of a promissory note equal to fifteen
percent (15%) of the amount, if any, by which (i) the market value of the
outstanding Shares plus Distributions paid by the Company prior to Listing,
exceeds (ii) the sum of the total amount of capital raised from investors in
Shares and the amount of cash flow necessary to generate an annual six
percent (6%) cumulative, non-compounded return to such investors.  The
promissory note shall be repaid from the net sales proceeds of each Sale of an
Investment that occurs after the date of the Listing.  At the time of
each such Sale, the Company may pay at its discretion all or a portion of such
promissory note in Shares, which may or may not be registered under the
Securities Act, or cash.

     

    (g)           Subordinated
Participation In Net Sale Proceeds.  The Company shall
pay the Advisor or its assignees from time to time, when available, Subordinated
Participation In Net Sales Proceeds in an amount equal to fifteen percent (15%)
of remaining Net Sales Proceeds after return of capital contributions plus
payment to investors in Shares of a six percent an annual (6%) cumulative,
pre-tax, non-compounded return on the capital contributed by such
investors.  Any
Subordinated Participation In Net Sale Proceeds becoming due and payable to the
Advisor
or its assignees hereunder shall be reduced by the amount of any distributions
made to New York Recovery Special Limited Partnership, LLC pursuant to the
Operating Partnership Agreement.

     

    
      
         

      

      
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    (h)           Payment
of Fees.  In connection
with the Acquisition Fee, Property Disposition Fee, Asset Management Fee and
Financing Coordination Fee, the Company shall pay such fees to the Advisor or
its assignees in cash or in Shares, or a combination of both, the form of
payment to be determined in the sole discretion of the Advisor. For the purposes
of the payment of such fees in Shares, each Share shall be valued at the per
share offering price of our Shares in the initial Offering minus the maximum
selling commissions and dealer manager fee allowed in the initial
Offering.

     

    (i)         
  Exclusion
of Certain Transactions. 

     

    (i)           If
the Company or the Operating Partnership shall propose to enter into any
transaction in which the Advisor, any Affiliate of the Advisor or any of the
Advisor’s directors or officers has a direct or indirect interest, then such
transaction shall be approved by a majority of the Board not otherwise
interested in such transaction, including a majority of the Independent
Directors.

    
       

      (ii)           If
the Board elects to internalize any management services provided by
the Advisor, neither the Company nor the Operating Partnership shall pay
any compensation or other remuneration to the Advisor or its Affiliates in
connection with the internalization transaction.

    

     

    11.        
 EXPENSES.

     

    (a)           In
addition to the compensation paid to the Advisor pursuant to Section 10, the
Company or the Operating Partnership shall pay directly or reimburse the Advisor
for all the expenses paid or incurred by the Advisor or its Affiliates in
connection with the services it provides to the Company and the Operating
Partnership pursuant to this Agreement, including, the following:

     

    
      (i)             Organization
and Offering Expenses and expenses related to the Private Offering, including
(A) third-party due diligence fees related to the Primary Offering of up to
one-half percent (0.5%) of the Gross Proceeds raised in all Primary Offerings,
and (B) third-party due diligence fees related to the Private Offering of up to
one-half percent (0.5%) of the Gross Proceeds raised in the Private Offering, in
each case as set forth in detailed and itemized invoices; provided, however, that the
Company shall not reimburse the Advisor to the extent such reimbursement would
cause (A) the total amount of Organization and Offering Expenses paid by the
Company and the Operating Partnership to exceed one and one-half percent (1.5%)
of the Gross Proceeds raised in all Primary Offerings, or (B) the total amount
of the expenses related to the Private Offering to exceed one and one-half
percent (1.5%) of the Gross Proceeds raised in the Private
Offering;

    

     

    (ii)           Acquisition
Expenses incurred in connection with the selection and acquisition of
Investments, subject to the aggregate four and one-half percent (4.5%)
cap on Acquisition Fees, Financing Coordination Fees and Acquisition Expenses
set forth in Section 10(b);

     

    (iii)           the
actual cost of goods and services used by the Company and obtained from entities
not Affiliated with the Advisor;

     

    (iv)           interest
and other costs for Loans, including discounts, points and other similar
fees;

    
      
         

      

      
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    (v)           taxes
and assessments on income of the Company or Investments;

     

    (vi)          costs
associated with insurance required in connection with the business of the
Company or by the Board;

     

    (vii)         expenses
of managing and operating Investments owned by the Company, whether payable to
an Affiliate of the Company or a non-affiliated Person;

     

    (viii)           all
expenses in connection with payments to the Directors for attending meetings of
the Board and Stockholders;

     

    (ix)          
 expenses associated with a Listing, if applicable, or with the issuance
and distribution of Shares, such as selling commissions and fees, advertising
expenses, taxes, legal and accounting fees, listing and registration
fees;

     

    (x)           expenses
connected with payments of Distributions;

     

    (xi)           expenses
of organizing, revising, amending, converting, modifying or terminating the
Company, the Operating Partnership or any subsidiary thereof or the Articles of
Incorporation, By-laws or governing documents of the Operating Partnership or
any subsidiary of the Company or the Operating Partnership;

     

    (xii)          expenses
of maintaining communications with Stockholders, including the cost of
preparation, printing, and mailing annual reports and other Stockholder reports,
proxy statements and other reports required by governmental
entities;

     

    (xiii)  
      administrative service expenses, including
all costs and expenses incurred by Advisor or its Affiliates in fulfilling its
duties hereunder, including reasonable salaries and wages, benefits and overhead
of all employees directly involved in the performance of such services; provided, however, that no
reimbursement shall be made for costs of such employees of the Advisor or its
Affiliates to the extent that such employees perform services for which the
Advisor receives a separate fee; and

     

    (xiv)          audit,
accounting and legal fees.

     

    (b)           Expenses
incurred by the Advisor on behalf of the Company and the Operating Partnership
and payable pursuant to this Section 11 shall
be reimbursed no less than monthly to the Advisor.

     

    12.         OTHER
SERVICES.  Should the Board
request that the Advisor or any director, officer or employee thereof render
services for the Company and the Operating Partnership other than set forth in
Section 3,
such services shall be separately compensated at such customary rates and in
such customary amounts as are agreed upon by the Advisor and the Board,
including a majority of the Independent Directors, subject to the limitations
contained in the Articles of Incorporation, and shall not be deemed to be
services pursuant to the terms of this Agreement.

    
      
         

      

      
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    13.         REIMBURSEMENT
TO THE ADVISOR.  The Company shall
not reimburse the Advisor at the end of any fiscal quarter in which Total
Operating Expenses incurred by the Advisor for the four (4) consecutive fiscal
quarters then ended (the “Expense Year”) exceed
(the “Excess
Amount”) the greater of two percent (2%) of Average Invested Assets or
twenty-five percent (25%) of Net Income (the “2%/25% Guidelines”)
for such year.  Any Excess Amount paid to the Advisor during a fiscal
quarter shall be repaid to the Company or, at the option of the Company,
subtracted from the Total Operating Expenses reimbursed during the subsequent
fiscal quarter.  If there is an Excess Amount in any Expense Year and
the Independent Directors determine that such excess was justified based on
unusual and nonrecurring factors which they deem sufficient, then the Excess
Amount may be carried over and included in Total Operating Expenses in
subsequent Expense Years and reimbursed to the Advisor in one or more of such
years, provided that there shall be sent to the Stockholders a written
disclosure of such fact, together with an explanation of the factors the
Independent Directors considered in determining that such excess expenses were
justified.  Such determination shall 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.

     

    14.         OTHER
ACTIVITIES OF THE ADVISOR.  Except as set
forth in this Section
14, nothing herein contained shall prevent the Advisor or any of its
Affiliates from engaging in or earning fees from other activities, including the
rendering of advice to other Persons (including other REITs) and the management
of other programs advised, sponsored or organized by the Sponsor or its
Affiliates; nor shall this Agreement limit or restrict the right of any
director, officer, member, partner, employee or stockholder of the Advisor or
any of its Affiliates to engage in or earn fees from any other business or to
render services of any kind to any other Person and earn fees for rendering such
services; provided,
however, that the Advisor must devote sufficient resources to the
Company’s business to discharge its obligations to the Company under this
Agreement.  The 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, and earn fees for rendering such advice and
service.  Specifically, it is contemplated that the Company may enter
into Joint Ventures or other similar co-investment arrangements with certain
Persons, and pursuant to the agreements governing such Joint Ventures or
arrangements, the Advisor may be engaged to provide advice and service to such
Persons, in which case the Advisor will earn fees for rendering such advice and
service.

     

    The
Advisor shall report to the Board the existence of any condition or
circumstance, existing or anticipated, of which it has knowledge, which creates
or could create a conflict of interest between the Advisor’s obligations to the
Company and its obligations to or its interest in any other
Person.  If the Advisor, Director or Affiliates thereof have sponsored
other investment programs with similar investment objectives which have
investment funds available at the same time as the Company, the Advisor shall
inform the Board of the method to be applied by the Advisor in allocating
investment opportunities among the Company and competing investment entities and
shall provide regular updates to the Board of the investment opportunities
provided by the Advisor to competing programs in order for the Board (including
the Independent Directors) to fulfill its duty to ensure that the Advisor and
its Affiliates use their reasonable best efforts to apply such method fairly to
the Company.

     

    
      
         

      

      
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    15.         THE
AMERICAN REALTY CAPITAL NAME.  The Advisor and
its Affiliates have or may have a proprietary interest in the names “American
Realty Capital,” “ARC” and “AR Capital.”  The Advisor hereby grants to
the Company, to the extent of any proprietary interest the Advisor may have in
any of the names “American Realty Capital,” “ARC” and “AR Capital,” a
non-transferable, non-assignable, non-exclusive, royalty-free right and license
to use the names “American Realty Capital,” “ARC” and “AR Capital” during the
term of this Agreement. The Company agrees that the Advisor and its Affiliates
will have the right to approve of any use by the Company of the names “American
Realty Capital,” “ARC” and “AR Capital,” such approval not to be unreasonably
withheld or delayed. Accordingly, and in recognition of this right, if at any
time the Company ceases to retain the Advisor or one of its Affiliates to
perform advisory services for the Company, the Company will, promptly after
receipt of written request from the Advisor, cease to conduct business under or
use the names “American Realty Capital,” “ARC” and “AR Capital” 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 names “American Realty
Capital,” “ARC” and “AR Capital” or any other word or words that might, in the
reasonable discretion of the Advisor, be susceptible of
indication of some form of relationship between the Company and the Advisor 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 words “American Realty Capital,” “ARC” and “AR Capital.” Consistent with the
foregoing, it is specifically recognized that the Advisor 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) and financial and service organizations having any of the names
“American Realty Capital,” “ARC” and “AR Capital” as a part of their name, all
without the need for any consent (and without the right to object thereto) by
the Company.  Neither the Advisor nor any of its Affiliates makes any
representation or warranty, express or implied, with respect to the names
“American Realty Capital,” “ARC” and “AR Capital” licensed hereunder or the use
thereof (including without limitation as to whether the use of the names
“American Realty Capital,” “ARC” and “AR Capital” will be free from infringement
of the intellectual property rights of third parties.  Notwithstanding
the preceding, the Advisor represents and warrants that it is not aware of any
pending claims or litigation or of any claims threatened in writing regarding
the use or ownership of the names “American Realty Capital,” “ARC” and “AR
Capital.”

     

    16.         TERM
OF AGREEMENT.  This Agreement
shall continue in force for a period of one year from the date of the Memorandum
and may be renewed for an unlimited number of successive one-year
periods.  If the Prospectus prepared in connection with the initial
Offering becomes effective, the term of this Agreement will be renewed and will
continue in force for a period of one year from the effective date of such
Prospectus.  Thereafter, the term may be renewed for an unlimited
number of successive one-year terms upon mutual consent of the
parties.

     

    17.         TERMINATION
BY THE PARTIES.  This Agreement
may be terminated upon sixty (60) days’ written notice (a) by the
Independent Directors of the Company or the Advisor, without Cause and without
penalty, (b) by the Advisor for Good Reason, or (c) by the Advisor upon a Change
of Control.  The provisions of Sections 19
through 31 of
this Agreement shall survive termination of this Agreement.

    
      
         

      

      
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    18.         ASSIGNMENT
TO AN AFFILIATE.  This Agreement
may be assigned by the Advisor to an Affiliate with the approval of a majority
of the Directors (including a majority of the Independent
Directors).  The Advisor may assign any rights to receive fees or
other payments under this Agreement to any Person without obtaining the approval
of the Directors.  This Agreement shall not be assigned by the Company
or the Operating Partnership without the consent of the Advisor, except in the
case of an assignment by the Company or the Operating Partnership to a Person
which is a successor to all the assets, rights and obligations of the Company or
the Operating Partnership, in which case such successor Person shall be bound
hereunder and by the terms of said assignment in the same manner as the Company
or the Operating Partnership, as applicable, is bound by this
Agreement.

     

    19.         PAYMENTS
TO AND DUTIES OF ADVISOR UPON TERMINATION.

     

    (a)           Amounts
Owed.  After the
Termination Date, the Advisor shall be entitled to receive from the Company or
the Operating Partnership within thirty (30) days after the effective date
of such termination all amounts then accrued and owing to the Advisor, including
all its interest in the Company’s income, losses, distributions and capital by
payment of an amount equal to the then-present fair market value of the
Advisor’s interest, subject to the 2%/25% Guidelines to the extent
applicable.

     

    (b)           Subordinated
Termination Fee.

     

    (i)           On
the Termination Date, the Advisor shall be entitled to a Subordinated
Termination Fee. The Subordinated Termination Fee, if any, will be payable in
the form of a promissory note equal to (A) fifteen percent (15%) of the amount,
if any, by which (1) the sum of (v) the fair market value (determined by
appraisal as of the Termination Date) of the Investments on the Termination
Date, less (w) any Loans secured by such Investments, plus (x) total
Distributions paid through the Termination Date on Shares issued in Offerings
through the Termination Date, less (y) the liquidation preference of all
Preferred Stock issued on or prior to the Termination Date (whether or not
converted into Shares), which liquidation preference shall be reduced by any
amounts paid on or prior to the Termination Date to purchase or redeem any
shares of Preferred Stock or any Shares issued on conversion of any Preferred
Stock, less (z) any amounts distributable as of the Termination Date to limited
partners who received OP Units in connection with the acquisition of any
Investments upon the liquidation or sale of such Investments (assuming the
liquidation or sale of such Investments on the Termination Date), exceeds (2)
the sum of the Gross Proceeds raised in all Offerings through the Termination
Date (less amounts paid on or prior to the Termination Date to purchase or
redeem any Shares purchased in an Offering pursuant to the Company’s share
repurchase plan or otherwise) and the total amount of cash that, if distributed
to those Stockholders who purchased Shares in an Offering on or prior to the
Termination Date, would have provided such Stockholders an annual six percent
(6%) cumulative, non-compounded return on the Gross Proceeds raised in all
Offerings through the Termination Date, measured for the period from inception
through the Termination Date, less
(B) any prior payments to the Advisor of the Subordinated Participation In Net
Sales Proceeds or the Subordinated Incentive Listing Fee. In addition, at the
time of termination, the Advisor may elect to defer its right to receive
a Subordinated Termination Fee until either a Listing or an Other Liquidity
Event occurs.

    
      
         

      

      
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    (ii)          If
the Advisor elects to defer its right to receive a Subordinated Termination Fee
and there is a Listing, then the Advisor will be entitled to receive a
Subordinated Termination Fee in an amount equal to (A) fifteen percent (15%) of
the amount, if any, by which (1) the sum of (t) the
fair market value (determined by appraisal as of the date of Listing) of the
Investments owned as of the Termination Date, less (u) any Loans secured by such
Investments owned as of the Termination Date, plus (v) the fair
market value (determined by appraisal as of the date of Listing) of the
Investments acquired after the Termination Date for which the Advisor would been
entitled to receive an Acquisition Fee (collectively, the “Included Assets”),
less (w) any Loans secured by the Included Assets, plus (x) total
Distributions paid through the date of Listing on Shares issued in Offerings
through the Termination Date, less (y) the liquidation preference of all
Preferred Stock issued on or prior to the Termination Date (whether or not
converted into Shares), which liquidation preference shall be reduced by any
amounts paid on or prior to the date of Listing to purchase or redeem any shares
of Preferred Stock or any Shares issued on conversion of any Preferred Stock,
less (z) any amounts distributable as of the date of Listing to limited partners
who received OP Units in connection with the acquisition of any Included Assets
upon the liquidation or sale of such Included Assets (assuming the liquidation
or sale of such Included Assets on the date of Listing), exceeds (2) the sum of
(y) the Gross Proceeds raised in all Offerings through the Termination Date
(less amounts paid on or prior to the date of Listing to purchase or redeem any
Shares purchased in an Offering on or prior to the Termination Date pursuant to
the Company’s share repurchase plan or otherwise), plus (z) the total amount of
cash that, if distributed to those Stockholders who purchased Shares in an
Offering on or prior to the Termination Date, would have provided such
Stockholders an annual six percent (6%) cumulative, non-compounded return on the
Gross Proceeds raised in all Offerings through the Termination Date, measured
for the period from inception through the date of Listing, less (B)
any prior payments to the Advisor of the Subordinated Participation In
Net Sales Proceeds or the Subordinated Incentive Listing
Fee. 

     

    (iii)         If
the Advisor elects to defer its right to receive a Subordinated Termination Fee
and there is an Other Liquidity Event, then the Advisor will be entitled to
receive a Subordinated Termination Fee in an amount equal to (A) fifteen percent
(15%) of the amount, if any, by which (1) the sum of (t) the
fair market value (determined by appraisal as of the date of Listing) of
the Investments owned as of the Termination Date, less (u) any Loans
secured by such Investments owned as of the Termination Date, plus (v)
the fair market value (determined by appraisal as of the date of the Other
Liquidity Event) of the Included Assets, less (w) any Loans secured by the
Included Assets, plus (x) total Distributions paid through the date of the Other
Liquidity Event on Shares issued in Offerings through the Termination Date, less
(y) the liquidation preference of all Preferred Stock issued on or prior to the
Termination Date (whether or not converted into Shares), which liquidation
preference shall be reduced by any amounts paid on or prior to the date of the
Other Liquidity Event to purchase or redeem any shares of Preferred Stock or any
Shares issued on conversion of any Preferred Stock, less (z) any amounts
distributable as of the date of the Other Liquidity Event to limited partners
who received OP Units in connection with the acquisition of any Included Assets
upon the liquidation or sale of such Included Assets (assuming the liquidation
or sale of such Included Assets on the date of the Other Liquidity Event),
exceeds (2) the sum of (y) the Gross Proceeds raised in all Offerings through
the Termination Date (less amounts paid on or prior to the date of the Other
Liquidity Event to purchase or redeem any Shares purchased in an Offering on or
prior to the Termination Date pursuant to the Company’s share repurchase plan or
otherwise), plus (z) the total amount of cash that, if distributed to those
Stockholders who purchased Shares in an Offering on or prior to the Termination
Date, would have provided such Stockholders an annual six percent (6%)
cumulative, non-compounded return on the Gross Proceeds raised in all Offerings
through the Termination Date, measured for the period from inception through the
date of the Other Liquidity Event, less (B)
any prior payments to the Advisor of the Subordinated Participation In
Net Sales Proceeds or the Subordinated Incentive Listing
Fee.

    
      
         

      

      
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    (iv)           Any
portion of the Subordinated Participation In Net Sales Proceeds
received prior to a Listing shall offset the amount that would otherwise by
payable pursuant to the Subordinated Incentive Listing Fee.  If the
Advisor receives the Subordinated Incentive Listing Fee, it would no longer be
entitled to receive the Subordinated Participation In Net Sales Proceeds or the
Subordinated Termination Fee. If the Advisor receives the Subordinated
Termination Fee, it would no longer be entitled to receive the Subordinated
Participation In Net Sales Proceeds or the Subordinated Incentive Listing
Fee.

     

    (c)           Advisor’s
Duties.  The Advisor shall promptly upon termination of this
Agreement:

     

    (i)           pay
over to the Company and the Operating Partnership all money collected and held
for the account of the Company and the Operating Partnership pursuant to this
Agreement, after deducting any accrued compensation and reimbursement for its
expenses to which it is then entitled;

     

    (ii)          deliver
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 Board;

     

    (iii)         deliver
to the Board all assets, including all Investments, and documents of the Company
and the Operating Partnership then in the custody of the Advisor;
and

     

    (iv)         cooperate
with the Company and the Operating Partnership to provide an orderly management
transition.

     

    21.         INCORPORATION
OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP
AGREEMENT.  To
the extent that the Articles of Incorporation or the Operating Partnership
Agreement impose obligations or restrictions on the Advisor or grant the Advisor
certain rights which are not set forth in this Agreement, the Advisor shall
abide by such obligations or restrictions and such rights shall inure to the
benefit of the Advisor with the same force and effect as if they were set forth
herein.

     

    22.         INDEMNIFICATION
BY THE COMPANY AND THE OPERATING PARTNERSHIP.

    
      
         

      

      
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    (a)           The
Company and the Operating Partnership shall indemnify and hold harmless the
Advisor and its Affiliates, as well as their respective officers, directors,
equity holders, members, partners, stockholders, other equity holders and
employees (collectively, the “Indemnitees,” and
each, an “Indemnitee”), 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, and to the extent that such indemnification
would not be inconsistent with the laws of the State of New York, the Articles
of Incorporation or the provisions of Section II.G of the NASAA REIT
Guidelines.  Notwithstanding the foregoing, the Company and the
Operating Partnership shall not provide for indemnification of an Indemnitee for
any loss or liability suffered by such Indemnitee, nor shall they provide that
an Indemnitee be held harmless for any loss or liability suffered by the Company
and the Operating Partnership, unless all the following conditions are
met:

     

    (i)           the
Indemnitee has determined, in good faith, that the course of conduct that caused
the loss or liability was in the best interest of the Company and the Operating
Partnership;

     

    (ii)          the
Indemnitee was acting on behalf of, or performing services for, the Company or
the Operating Partnership;

     

    (iii)         such
liability or loss was not the result of negligence or willful misconduct by the
Indemnitee; and

     

    (iv)        such
indemnification or agreement to hold harmless is recoverable only out of the
Company’s net assets and not from the Stockholders.

     

    (b)           Notwithstanding
the foregoing, an Indemnitee shall not be indemnified by the Company and the
Operating Partnership for any losses, liabilities or expenses arising from or
out of an alleged violation of federal or state securities laws by such
Indemnitee 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 Indemnitee;

     

    (ii)         such
claims have been dismissed with prejudice on the merits by a court of competent
jurisdiction as to the Indemnitee; or

     

    (iii)         a
court of competent jurisdiction approves a settlement of the claims against the
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 Securities and Exchange Commission and
of the published position of any state securities regulatory authority in which
securities of the Company or the Operating Partnership were offered or sold as
to indemnification for violation of securities laws.

     

    (c)           In
addition, the advancement of the Company’s or the Operating Partnership’s funds
to an Indemnitee for legal expenses and other costs incurred as a result of any
legal action for which indemnification is being sought is permissible only if
all the following conditions are satisfied:

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    (i)           the
legal action relates to acts or omissions with respect to the performance of
duties or services on behalf of the Company or the Operating
Partnership;

     

    (ii)          the
legal action is initiated by a third party who is not a Stockholder or the legal
action is initiated by a Stockholder acting in such Stockholder’s capacity as
such and a court of competent jurisdiction specifically approves such
advancement; and

     

    (iii)         the
Indemnitee undertakes to repay the advanced funds to the Company or the
Operating Partnership, together with the applicable legal rate of interest
thereon, in cases in which such Indemnitee is found not to be entitled to
indemnification.

     

    23.         INDEMNIFICATION
BY ADVISOR.  The Advisor shall
indemnify and hold harmless the Company and the Operating Partnership from
contract or other liability, claims, damages, taxes or losses and related
expenses, including reasonable 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 Advisor’s bad faith,
fraud, willful misfeasance, intentional misconduct, gross negligence or reckless
disregard of its duties; provided, however, that the
Advisor shall not be held responsible for any action of the Board in following
or declining to follow any advice or recommendation given by the
Advisor.

     

    24.         NOTICES.  Any notice,
report or other communication (each a “Notice”) required or
permitted to be given hereunder shall be in writing unless some other method of
giving such Notice is required by the Articles of Incorporation, the By-laws,
and shall be given by being delivered by hand, by courier or overnight carrier
or by registered or certified mail to the addresses set forth below: 

    
      	 
      	 
      	 
      
	
              To
      the Company:

            	 
      	
              American
      Realty Capital New York Recovery REIT, Inc.

            
	 
      	 
      	
              405
      Park Avenue

            
	 
      	 
      	
              New
      York, New York 10022

            
	 
      	 
      	
              Attention:  William
      M. Kahane,

            
	 
      	 
      	
                               President

            
	 
      	 
      	 
      
	 
      	 
      	
              with
      a copy to:

            
	 
      	 
      	 
      
	 
      	 
      	
              Proskauer
      Rose LLP

            
	 
      	 
      	
              1585
      Broadway

            
	 
      	 
      	
              New
      York, New York 10036

            
	 
      	 
      	
              Attention:  Peter
      M. Fass, Esq.

            
	 
      	 
      	
              Attention:  James
      P. Gerkis, Esq.

            

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    

    
      	
              To
      the Operating Partnership:

            	 
      	
              New
      York Recovery Operating Partnership, L.P.

            
	 
      	 
      	
              405
      Park Avenue

            
	 
      	 
      	
              New
      York, New York 10022

            
	 
      	 
      	
              Attention:  William
      M. Kahane

            
	 
      	 
      	 
      
	 
      	 
      	
              with
      a copy to:

            
	 
      	 
      	 
      
	 
      	 
      	
              Proskauer
      Rose LLP

            
	 
      	 
      	
              1585
      Broadway

            
	 
      	 
      	
              New
      York, New York 10036

            
	 
      	 
      	
              Attention:  Peter
      M. Fass, Esq.

            
	 
      	 
      	
              Attention:  James
      P. Gerkis, Esq.

            
	 
      	 
      	 
      
	
              To
      the Advisor:

            	 
      	
              New
      York Recovery Advisors, LLC

            
	 
      	 
      	
              405
      Park Avenue

            
	 
      	 
      	
              New
      York, New York 10022

            
	 
      	 
      	
              Attention:  William
      M. Kahane

            
	 
      	 
      	 
      
	 
      	 
      	
              with
      a copy to:

            
	 
      	 
      	 
      
	 
      	 
      	
              Proskauer
      Rose LLP

            
	 
      	 
      	
              1585
      Broadway

            
	 
      	 
      	
              New
      York, New York 10036

            
	 
      	 
      	
              Attention:  Peter
      M. Fass, Esq.

            
	 
      	 
      	
              Attention:  James
      P. Gerkis, Esq.

            
	 
      	 
      	 
      

    

    Any party
may at any time give Notice in writing to the other parties of a change in its
address for the purposes of this Section 23.

     

    25.         MODIFICATION.  This Agreement
shall not be amended, supplemented, terminated, or discharged, in whole or in
part, except by an instrument in writing signed by the parties hereto, or their
respective successors or assignees.

     

    26.         SEVERABILITY.  The provisions of
this Agreement are independent of and severable from each other, and no
provision shall be affected or rendered invalid or unenforceable by virtue of
the fact that for any reason any other or others of them may be invalid or
unenforceable in whole or in part.

     

    27.         GOVERNING
LAW. The provisions of this
Agreement shall be construed and interpreted in accordance with the laws of the
State of New York as at the time in effect, without regard to the principles of
conflicts of laws thereof.

     

    28.         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 or usage of the trade inconsistent with any of the
terms hereof. 

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    29.         NO
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.

     

    30.         PRONOUNS
AND PLURALS.  Whenever the
context may require, any pronoun used in this Agreement shall include the
corresponding masculine, feminine or neuter forms, and the singular form of
nouns, pronouns and verbs shall include the plural and vice versa.

     

    31.         HEADINGS.  The titles of
sections and subsections 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.

     

    32.         EXECUTION
IN COUNTERPARTS.  This Agreement
may be executed with counterpart signature pages or 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.

     

    [
Remainder of page intentionally left blank ]

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
first written above.

    
      
        
          
            
              	 
      
	
                      AMERICAN
      REALTY CAPITAL NEW YORK RECOVERY REIT, INC.

                    
	 
      	 
      
	
                      By:

                    	 
      
	 
      	
                      Name:  William
      M. Kahane

                    
	 
      	
                      Title:  President

                    
	 
      
	
                      NEW
      YORK RECOVERY OPERATING PARTNERSHIP, L.P.

                    
	 
      	 
      
	
                      By:

                    	
                      American
      Realty Capital New York Recovery REIT, Inc.

                    
	 
      	 
      
	 
      	
                      its
      General Partner

                    
	 
      	 
      
	
                      By:

                    	 
      
	 
      	
                      Name:  William
      M. Kahane

                    
	 
      	
                      Title:  President

                    
	 
      
	
                      NEW
      YORK RECOVERY ADVISORS, LLC

                    
	 
      	 
      
	
                      By:

                    	
                      New
      York Recovery Special Limited Partnership, LLC

                    
	 
      	 
      
	 
      	
                      its
      Member

                    
	 
      	 
      
	
                      By:

                    	
                      American
      Realty Capital III, LLC

                    
	 
      	 
      
	 
      	
                      its
      Managing Member

                    
	 
      	 
      
	
                      By:

                    	 
      
	 
      	
                      Name:  Nicholas
      S. Schorsch

                    
	 
      	
                      Title:  Authorized
      Signatory

                    

            

          

        

      

    

    
      
         

      

      
        24

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