Document:

Unassociated Document

    EXHIBIT
10.5

     

    
      

      

      
        
 

      AMERICAN
REALTY CAPITAL NEW YORK RECOVERY REIT, INC.

      

      FORM
OF 2010 STOCK OPTION PLAN

      

      Adopted
by Board of
Directors:             ,
2010

      

      Approved
by
Stockholders:             ,
2010

       

      
        
 

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      TABLE
OF CONTENTS

      

      

      
        	 
      	 
      	
                Page

              
	 
      	 
      	 
      
	
                1.

              	
                Purpose
      of the Plan.

              	
                1

              
	
                2.

              	
                Definitions.

              	
                1

              
	
                3.

              	
                Effective
      Date/Expiration of Plan.

              	
                3

              
	
                4.

              	
                Administration.

              	
                3

              
	
                5.

              	
                Shares;
      Adjustment Upon Certain Events.

              	
                4

              
	
                6.

              	
                Awards
      and Terms of Options.

              	
                6

              
	
                7.

              	
                Effect
      of Termination of Service.

              	
                9

              
	
                8.

              	
                Nontransferability
      of Options.

              	
                10

              
	
                9.

              	
                Rights
      as a Stockholder.

              	
                10

              
	
                10.

              	
                Determinations.

              	
                10

              
	
                11.

              	
                Termination,
      Amendment and Modification.

              	
                10

              
	
                12.

              	
                Non-Exclusivity.

              	
                11

              
	
                13.

              	
                Use
      of Proceeds.

              	
                11

              
	
                14.

              	
                General
      Provisions.

              	
                11

              
	
                15.

              	
                Issuance
      of Stock Certificates; Legends and Payment of Expenses.

              	
                12

              
	
                16.

              	
                Listing
      of Shares and Related Matters.

              	
                13

              
	
                17.

              	
                Governing
      Law.

              	
                13

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      AMERICAN
REALTY CAPITAL NEW YORK RECOVERY REIT, INC.

      

      FORM OF
2010 STOCK OPTION PLAN

      

      

      Adopted
by Board of
Directors:            ,
2010

      

      Approved
by
Stockholders:              ,
2010

       

      
        
          1.  Purpose
of the Plan.

        

        

        The
purpose of this American Realty Capital New York Recovery REIT, Inc. 2010 Stock
Option Plan is to enhance the Company’s profitability and value for the benefit
of stockholders to enable the Company to attract, retain and
motivate directors, officers, advisors, consultants and other personnel,
affiliates, personnel of affiliates, and any joint venture affiliates who
are important to the success of the Company and to create and strengthen a
mutuality of interest between the Potential Participants and the stockholders of
the Company by granting such Potential Participants options to
purchase Common Stock of the Company.

        
           

        

        
          2.  Definitions.

        

        

        (a)  “Acquisition
Event” means a
merger or consolidation in which the Company is not the surviving entity, or any
transaction that results in the acquisition of all or substantially all of the
Company’s outstanding Common Stock by a single person or entity or by a group of
persons and/or entities in concert, or the sale or transfer of all or
substantially all of the Company’s assets.

        

        (b)  “Act” means the Securities
Exchange Act of 1934, as amended and the rules and regulations promulgated
thereunder.

        

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

        

        (d)  “Cause” has the meaning set forth in
Section 7(b).

        

        (e)  “Change of
Control” has the
meaning set for in Section 6(d).

        

        (f)  “Code” means the Internal Revenue
Code of 1986, as amended.

        

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

        

        (h)  “Common
Stock” means the
voting common stock of the Company, par value $.01, any common stock into which
the common stock may be converted and any common stock resulting from any
reclassification of the common stock.

        

        (i)  “Company” means American Realty
Capital New York Recovery REIT, Inc., a Maryland corporation.

        

        (j)  “Company Voting
Securities” has
the meaning set forth in Section 6(d)(i).

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        (k)  “Corporate
Transaction” has
the meaning set forth in Section 6(d)(i).

        

        (l)  “Disability” means a permanent and total
disability, as determined by the Committee in its sole discretion, provided that
in no event shall any disability that is not permanent and total disability
within the meaning of Section 22(e)(3) of the Code be treated as a
Disability.  A Disability shall be deemed to occur at the time of the
determination by the Committee of the Disability.

         

        (m)  “Effective
Date” has the
meaning set forth in Section 3.

        

        (n)  “Fair Market
Value”  means, for purposes of this Plan, unless otherwise
required by any applicable provision of the Code or any regulations issued
thereunder, as of any date and except as provided below, the last sales price
reported for the Common Stock on the applicable date: (i) as reported on the
principal national securities exchange in the United States on which it is then
traded or The Nasdaq Stock Market; or (ii) if not traded on any such national
securities exchange or The Nasdaq Stock Market, as quoted on an automated
quotation system sponsored by FINRA or if the Common Stock shall not have been
reported or quoted on such date, on the first day prior thereto on which the
Common Stock was reported or quoted; provided, that the Committee may modify the
definition of Fair Market Value to reflect any changes in the trading practices
of any exchange on which the Common Stock is listed or traded.  If the
Common Stock is not readily tradable on a national securities exchange, The
Nasdaq Stock Market or any automated quotation system sponsored by FINRA, its
Fair Market Value shall be set in good faith by the Committee and in a manner
that complies with Section 409A of the Code.  For purposes of the
grant of any Option, the applicable date shall be the date on which the Stock
Option is granted.

        

        (o)  “FINRA” means the Financial Industry
Regulatory Authority, Inc.

        

        (p)  “Incumbent
Board” has the
meaning set forth in Section 6(d)(ii).

        

        (q)  “Option”
means the right to purchase the number of Shares granted in the Option agreement
at a prescribed purchase price on the terms specified in the Plan and the Option
agreement.  No Option awarded under this Plan is intended to be an
“incentive stock option” within the meaning of Section 422 of the
Code.

        

        (r)  “Participant” means a Potential
Pariticipant who is granted an Option under the Plan, which Option has not
expired or been cancelled.

        

        (s)  “Person” means an individual, entity
or group within the meaning of Section l3d-3 or 14d-1 of the Act.

        

        (t)  “Plan” means this American Realty
Capital New York Recovery REIT, Inc. 2010 Stock Option Plan, as amended from
time to time.

         

        
          (u) 
“Potential
Participants” means the directors, officers, advisors, consultants
and other personnel of the Company, New York Recovery Advisors, LLC (the
“Advisor”), New York Recovery Properties, LLC (the “Property Manager”), and
affiliates, personnel of the Advisor, the Property Manager and affiliates, and
any joint venture affiliates of the Company.

        

         

        (v)  “Purchase
Price” means the purchase price per Share.

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

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

        

        (x)  “Share” means a share of Common
Stock.

        

        (y)  “Termination of
Service” means
termination of the relationship with the Company so that an individual is no
longer a Potential Participant.

        
           

        

        
          3.  Effective
Date/Expiration of Plan.

        

        

        The Plan
will
become effective
on                       ,
2010, subject to the receipt of stockholder approval (the “Effective
Date”).  No Option shall be granted under the Plan on or after
the tenth anniversary of the Effective Date, but Options previously granted may
extend beyond that date.

        
           

        

        
          4.  Administration.

        

        

        (a)  Duties of the
Committee.  The Plan shall be administered by the
Committee.  The Committee shall have full authority to interpret the
Plan and to decide any questions and settle all controversies and disputes that
may arise in connection with the Plan; to establish, amend, and rescind rules
for carrying out the Plan, to administer the Plan, subject to its provisions; to
prescribe the form or forms of instruments evidencing Options and any other
instruments required under the Plan (which need not be uniform) and to change
such forms from time to time; and to make all other determinations and to take
all such steps in connection with the Plan and the Options as the Committee, in
its sole discretion, deems necessary or desirable; provided, that all
such determinations shall be in accordance with the express provisions, if any,
contained in the Plan or Option agreement.  The Committee shall not be
bound to any standards of uniformity or similarity of action, interpretation or
conduct in the discharge of its duties hereunder, regardless of the apparent
similarity of the matters coming before it.  The determination, action
or conclusion of the Committee in connection with the foregoing shall be final,
conclusive and binding on all parties.

        

        (b)  Advisors.  The
Committee may designate the Secretary of the Company, other officers or
employees of the Company or competent professional advisors to assist the
Committee in the administration of the Plan, and may grant authority to such
persons (other than professional advisors) to grant an Option or to execute
Option agreements or other documents on behalf of the Committee, provided that
no Participant may grant an Option or execute any Option agreement granting
Options to such Participant.  The Committee may employ such legal
counsel, consultants and agents as it may deem desirable for the administration
of the Plan, and may rely upon any opinion received from any such counsel or
consultant and any computation received from any such consultant or
agent.  Expenses incurred by the Committee in the engagement of such
counsel, consultant or agent shall be paid by the Company.

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        (c)  Indemnification.  To
the maximum extent permitted by law, no officer, member or former officer or
member of the Committee or the Board shall be liable for any action or
determination made in good faith with respect to the Plan or any Option granted
under it.  To the maximum extent permitted by applicable law or the
Certificate of Incorporation or By-Laws of the Company, as may be amended from
time to time, and to the extent not covered by insurance, each officer, member
or former officer or member of the Committee or of the Board shall be
indemnified and held harmless by the Company against any cost or expense
(including reasonable fees of counsel reasonably acceptable to the Company) or
liability (including any sum paid in settlement of a claim with the approval of
the Company), and advanced amounts necessary to pay the foregoing at the
earliest time and to the fullest extent permitted, arising out of any act or
omission to act in connection with the Plan, except to the extent arising out of
such officer’s, member’s or former officer’s or member’s own fraud or bad
faith.  Such indemnification shall be in addition to any rights of
indemnification the officers, members or former officers or members may have as
directors under applicable law or under the Certificate of Incorporation or
By-Laws of the Company or otherwise.

        

        (d)  Meetings of the
Committee.  The Committee shall select one of its members as a
Chairman and shall adopt such rules and regulations, as it shall deem
appropriate, concerning the holding of its meetings and the transaction of its
business.  Any member of the Committee may be removed at any time
either with or without cause by resolution adopted by the Board, and any vacancy
on the Committee may at any time be filled by resolution adopted by the
Board.  All determinations by the Committee shall be made by the
affirmative vote of a majority of its members.  Any such determination
may be made at a meeting duly called and held at which a majority of the members
of the Committee were in attendance in person or through telephonic
communication.  Any determination set forth in writing and signed by
all of the members of the Committee shall be as fully effective as if it had
been made by a vote of such members at a meeting duly called and
held.

        
           

        

        
          5.  Shares;
Adjustment Upon Certain Events.

        

        

        (a)  Shares to be Delivered; Fractional
Shares.  Shares to be issued under the Plan shall be made
available, at the discretion of the Board, either from authorized but unissued
Shares or from issued Shares reacquired by the Company and held in
treasury.  No fractional Shares will be issued or transferred upon the
exercise of any Option.  In lieu thereof, the Company shall pay a cash
adjustment equal to the same fraction of the Fair Market Value of one Share on
the date of exercise.

        

        (b)  Number of Shares. Subject to
adjustment as provided in this Section 5, the maximum aggregate number of Shares
authorized for issuance under the Plan shall be 500,000 Shares.  If an
Option is for any reason canceled, or expires or terminates unexercised, the
Shares covered by such Option shall again be available for the grant of Options,
within the limits provided by the preceding sentence.  In addition, if
Common Stock has been exchanged by a Participant as full or partial payment to
the Company of the Purchase Price or if the number of shares of Common Stock
otherwise deliverable has been reduced for full or partial payment to the
Company of the Purchase Price, the number of shares of Common Stock exchanged or
reduced shall again be available under the Plan.

        

        (c)  Adjustments; Recapitalization,
etc.  The existence of the Plan and the Options granted
hereunder shall not affect in any way the right or power of the Board or the
stockholders of the Company to make or authorize any adjustment,
recapitalization, reorganization or other change in the Company’s capital
structure or its business, any merger or consolidation of the Company, any issue
of bonds, debentures, preferred or prior preference stocks ahead of or affecting
Common Stock, the dissolution or liquidation of the Company or any sale or
transfer of all or part of its assets or business or any other corporate act or
proceeding.  If and whenever the Company takes any such action,
however, the following provisions, to the extent applicable, shall
govern:

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

        (i)  If
and whenever the Company shall effect a stock split, reverse stock split, stock
dividend, subdivision, recapitalization or combination of Shares or other
changes in the Company’s Common Stock, (x) the Purchase Price per Share and the
number and class of Shares and/or other securities with respect to which
outstanding Options thereafter may be exercised, and (y) the total number and
class of Shares and/or other securities that may be issued under this Plan,
shall be appropriately adjusted by the Committee.  The Committee may
also make such other adjustments as it deems necessary to take into
consideration any other event (including, without limitation, accounting
changes) if the Committee determines that such adjustment is appropriate to
avoid distortion in the operation of the Plan.

        

        (ii)  Subject
to Section 5(c)(iii), if the Company merges or consolidates with one or more
corporations, then from and after the effective date of such merger or
consolidation, upon exercise of an Option theretofore granted, the Participant
shall be entitled to purchase under such Option, in lieu of the number of Shares
as to which such Option shall then be exercisable but on the same terms and
conditions of exercise set forth in such Option, the number and class of Shares
and/or other securities or property (including cash) to which the Participant
would have been entitled pursuant to the terms of the agreement of merger or
consolidation if, immediately prior to such merger or consolidation, the
Participant had been the holder of record of the total number of Shares
receivable upon exercise of such Option (whether or not then
exercisable).  In connection with any event described in this Section
5(c)(ii), the Committee may provide, in its sole discretion, for the
cancellation of any outstanding Options and payment in cash or other property in
exchange therefor.

        

        (iii)  In
the event of an Acquisition Event, the Committee may, in its discretion, and
without any liability to any Participant, terminate all outstanding Options as
of the consummation of the Acquisition Event by delivering notice of termination
to each Participant at least 20 days prior to the date of consummation of the
Acquisition Event; provided, however, that, during the period from the date
on which such notice of termination is delivered to the consummation of the
Acquisition Event, each Participant shall have the right to exercise in full all
the Options that are then outstanding (without regard to limitations on exercise
otherwise contained in the Options), but any such exercise shall be contingent
upon and subject to the occurrence of the Acquisition Event; provided,
however, that if the Acquisition Event does not take place within a
specified period after giving such notice for any reason whatsoever, the notice
and exercise pursuant thereto shall be null and void.  If the
Acquisition Event does take place after giving such notice, any Option not
exercised prior to the date of the consummation of such Acquisition Event shall
be forfeited simultaneous with the consummation of the Acquisition
Event.  If an Acquisition Event occurs and the Committee does not
terminate the outstanding Options pursuant to the foregoing provisions, then the
provisions of Section 5(c)(ii) shall apply.

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        (iv)  If,
as a result of any adjustment made pursuant to the preceding paragraphs of this
Section 5, any Participant shall become entitled upon exercise of an Option to
receive any securities other than Common Stock, then the number and class of
securities so receivable thereafter shall be subject to adjustment from time to
time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Common Stock set forth in this Section 5, as
determined by the Committee in its discretion.

        

        (v)  Except
as hereinbefore expressly provided, the issuance by the Company of shares of
stock of any class, or securities convertible or exercisable into shares of
stock of any class, for cash, property, labor or services, upon direct sale,
upon the exercise of rights or warrants to subscribe therefor, or upon
conversion of shares or other securities, and in any case whether or not for
fair value, shall not affect, and no adjustment by reason thereof shall be made
with respect to the number and class of Shares and/or other securities or
property subject to Options theretofore granted or the Purchase Price per Share.
Notwithstanding
anything else herein, the Committee:  (A) shall not make any
adjustments to any Awards that would cause an Award to be subject to Section
409A of the Code without the consent of the affected Participant; and (B) shall
adjust any Award that is subject to Code Section 409A only in a manner that is
in compliance with the requirements of Code Section 409A.

        
           

        

        
          6.  Awards
and Terms of Options.

        

        

        (a)  Grant.  All Options
issued hereunder shall be issued in accordance with Section V.K.6. of the
Statement of Policy Regarding Real Estate Investment Trusts, as revised and
adopted by NASAA membership on May 7, 2007.

        

        (b)  Purchase
Price.  The Purchase Price deliverable upon the exercise of an
Option shall equal 100% of the Fair Market Value on the last business day
preceding the Annual Date of Grant.  Notwithstanding the foregoing,
but subject to Section 6(a), the Purchase Price for all Options granted under
the Plan before the termination of the Company’s initial public offering will be
$10 per Share.

        

        (c)  Exercisability.  Except
as otherwise provided herein, any Option granted to a Participant shall vest and
become exercisable on the second anniversary of the date of grant, subject to
the Participant’s continued service as a
Potential Participant through such date.  No Option shall be
exercisable after the expiration of ten (10) years from the date of
grant.

        

        (d)  Acceleration of Exercisability on
Change of Control.  Except as
otherwise provided in the Participant's Option agreement,
all Options granted and not previously exercisable shall
become exercisable immediately upon a Change of Control (as defined
herein).  For this purpose, a “Change of Control” shall be deemed to
have occurred upon:

        

        (i)  an
acquisition by any Person of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Act) of 33% or more of either (A) the then
outstanding Shares or (B) the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of
directors (the “Company Voting
Securities”);
excluding, however, the following: (w) any acquisition directly from the
Company, other than an acquisition by virtue of the exercise of a conversion
privilege unless the security being so converted was itself acquired directly
from the Company; (x) any acquisition by the Company; (y) any acquisition by an
employee benefit plan (or related trust) sponsored or maintained by the Company;
or (z) any acquisition by any entity pursuant to a reorganization, merger,
consolidation or similar corporate transaction (in each case, a “Corporate
Transaction”),
if, pursuant to such Corporate Transaction, the conditions described in clauses
(A), (B) and (C) of paragraph (iii) of this Section are satisfied;
or

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        (ii)  a
change in the composition of the Board such that the individuals who, as of the
Effective Date hereof, constitute the Board (the Board as of the date hereof
shall be hereinafter referred to as the “Incumbent
Board”) cease for
any reason to constitute at least a majority of the Board; provided that for
purposes of this subsection any individual who becomes a member of the Board
subsequent to the date hereof whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a majority of those
individuals who are members of the Board and who are also members of the
Incumbent Board (or deemed to be such pursuant to this proviso) shall be
considered as though such individual were a member of the Incumbent Board; but,
provided further, that any such individual whose initial assumption of office
occurs as a result of either an actual or threatened election contest (as such
terms are used in Rule 14a-11 of Regulation 14A promulgated under the Act) or
other actual or threatened solicitation of proxies or consents by or on behalf
of a Person other than the Board shall not be so considered as a member of the
Incumbent Board; or

        

        (iii)  the
approval by the stockholders of the Company of a Corporate Transaction or, if
consummation of such Corporate Transaction is subject, at the time of such
approval by stockholders, to the consent of any government or governmental
agency, the obtaining of such consent (either explicitly or implicitly by
consummation); excluding, however, such a Corporate Transaction pursuant to
which (A) all or substantially all of the individuals and entities who are the
beneficial owners, respectively, of the outstanding Shares and Company Voting
Securities immediately prior to such Corporate Transaction will beneficially
own, directly or indirectly, more than 60% of, respectively, the outstanding
shares of common stock of the entity resulting from such Corporate Transaction
and the combined voting power of the outstanding voting securities of such
entity entitled to vote generally in the election of directors, in substantially
the same proportions as their ownership, immediately prior to such Corporate
Transaction, of the outstanding Shares and Company Voting Securities, as the
case may be, (B) no Person (other than the Company, any employee benefit plan
(or related trust) of the Company or the entity resulting from such Corporate
Transaction and any Person beneficially owning, immediately prior to such
Corporate Transaction, directly or indirectly, 33% or more of the outstanding
Shares or Company Voting Securities, as the case may be) will beneficially own,
directly or indirectly, 33% or more of, respectively, the outstanding shares of
Common Stock of the entity resulting from such Corporate Transaction or the
combined voting power of the then outstanding securities of such entity entitled
to vote generally in the election of directors, and (C) individuals who were
members of the Incumbent Board will constitute at least a majority of the
members of the board of directors of the corporation resulting from such
Corporate Transaction; notwithstanding the foregoing, no Change of Control will
occur if two-thirds (2/3rds) of the Incumbent Board approves the Corporate
Transaction; or

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        (iv)  the
approval of the stockholders of the Company of (A) a complete liquidation or
dissolution of the Company, or (B) the sale or other disposition of all or
substantially all of the assets of the Company; excluding; however, such a sale
or other disposition to a entity with respect to which, following such sale or
other disposition, (x) more than 60% of, respectively, the then outstanding
shares of common stock of such entity and the combined voting power of the then
outstanding voting securities of such entity entitled to vote generally in the
election of directors will be then beneficially owned, directly or indirectly,
by all or substantially all of the individuals and entities who were the
beneficial owners respectively, of the outstanding Shares and Company Voting
Securities immediately prior to such sale or other disposition in substantially
the same proportion as their ownership, immediately prior to such sale or other
disposition, of the outstanding Shares and Company Voting Securities, as the
case may be, (y) no Person (other than the Company and any employee benefit plan
(or related trust) of the Company or such entity and any Person beneficially
owning, immediately prior to such sale or other disposition, directly or
indirectly, 33% or more of the outstanding Shares or Company Voting Securities,
as the case may be) will beneficially own, directly or indirectly, 33% or more
of, respectively, the then outstanding shares of common stock of such entity and
the combined voting power of the then outstanding voting securities of such
entity entitled to vote generally in the election of directors, and (z)
individuals who were members of the Incumbent Board will constitute at least a
majority of the members of the board of directors of such entity.

        

        (e)  Exercise of
Options.

        

        (i)  A
Participant may elect to exercise an Option by giving written notice to the
Committee of such election and of the number of Shares such Participant has
elected to purchase pursuant to the Option, accompanied by payment in full of
the aggregate Purchase Price for the number of Shares for which the Option is
being exercised.

        

        (ii)  Shares
purchased pursuant to the exercise of an Option shall be paid for at the time of
exercise as follows:

        

        (A)  in
cash or by check, bank draft or money order payable to the order of the
Company;

        

        (B)  if
so permitted by the Committee: (x) through the delivery of unencumbered Shares
(including Shares being acquired pursuant to the Option then being exercised),
provided such Shares (or such Option) have been owned by the Participant for
such period as may be required by applicable accounting standards to avoid a
charge to earnings; or (y) through a combination of Shares and cash as provided
above, provided, that, if the Shares delivered upon exercise of the Option is an
original issue of authorized Shares, at least so much of the Purchase Price as
represents the par value of such Shares shall be paid in cash or by a
combination of cash and Shares;

        

        (C) to
the extent permitted by applicable law, if the Common Stock is traded on a
national securities exchange, the Nasdaq Stock Market or quoted on a national
quotation system sponsored by FINRA, through the delivery of irrevocable
instructions to a broker to deliver promptly to the Company an amount equal to
the aggregate Purchase Price; or

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

        (D)  on
such other terms and conditions as may be acceptable to the Committee and in
accordance with applicable law.  The Company will not issue shares in
certificated form.  The Company's transfer agent maintains a stock
ledger that contains the name and address of each stockholder and the number of
shares that the stockholder holds.  The Company shall provide the
Participant, pursuant to the Company's Articles of Amendment and Restatement,
with a notice containing information about the Shares purchased, in lieu of
issuance of a share certificate.

        

        (iii)  REIT
Status.  Notwithstanding anything herein to the contrary, no
Option granted under this Plan may be exercised if such exercise would
jeopardize the Company’s status as a “real estate investment trust” as defined
under the Code.

        
           

        

        
          7.  Effect
of Termination of Service.

        

        

        (a)  Death, Disability, or Retirement.
Except as otherwise provided in the Participant’s Option agreement or in
this Plan, upon a Termination of Service, all outstanding Options then
exercisable and not exercised by the Participant prior to such Termination of
Service shall remain exercisable by the Participant to the extent not
theretofore exercised for the following time periods (subject to Section
6(c)):

        

        (i)  in
the event of the Participant’s death, such Options shall remain exercisable (by
the Participant’s estate or by the person given authority to exercise such
Options by the Participant’s will or by operation of law) for a period of one
(1) year from the date of the Participant’s death; and

        

        (ii)  in
the event the Participant retires at or after age 65 (or, with the consent of
the Committee, before age 65), or, if the Participant’s services terminate due
to Disability, such Options shall remain exercisable for one (1) year from the
date of the Participant’s Termination of Service.

        

        (b)  Cause.  Upon the
Termination of Service of a Participant for Cause (as defined herein) or if it
is discovered after a Termination of Service that such Participant had engaged
in conduct that would have justified a Termination of Service for Cause, all
outstanding Options (whether vested or unvested) shall immediately be canceled,
provided that upon any such termination the Committee may, in its discretion,
require the Participant to promptly pay to the Company (and the Company shall
have the right to recover) any gain the Participant realized as a result of the
exercise of any Option that occurred within one (1) year prior to such
Termination of Service or the discovery of conduct that would have justified a
Termination of Service for Cause.  Termination of Service shall be
deemed to be for “Cause” for purposes of this Section 7(b) if the Participant
shall have committed fraud or any felony in connection with the Participant’s
duties as a director of the Company or willful misconduct or any act of
disloyalty, dishonesty, fraud or breach of trust, confidentiality or fiduciary
duties as to the Company or the commission of any other act which causes or may
reasonably be expected to cause economic or reputational injury to the Company
or any other act or failure to act that constitutes “cause” for removal of a
director under applicable Maryland law.

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        (c)  Other
Termination.  In the event of a Termination of Service for any
reason other than as provided in Sections 7(a) and 7(b), except as otherwise
provided in the Participant's Option agreement, all outstanding
Options then exercisable and not exercised by the Participant prior to such
Termination of Service shall remain exercisable (to the extent exercisable by
such Participant immediately before such termination) for a period of three (3)
months after such termination, but not beyond the original stated term of the
Option.

        
           

        

        
          8.  Nontransferability
of Options.

        

        

        No Option
shall be transferable by the Participant otherwise than by will or under
applicable laws of descent and distribution, and during the lifetime of the
holder may be exercised only by the holder or his or her guardian or legal
representative.  In addition, no Option shall be assigned, negotiated,
pledged or hypothecated in any way (whether by operation of law or otherwise),
and no Option shall be subject to execution, attachment or similar
process.  Upon any attempt to transfer, assign, negotiate, pledge or
hypothecate any Option, or in the event of any levy upon any Option by reason of
any execution, attachment or similar process contrary to the provisions hereof,
such Option shall immediately be cancelled.  Notwithstanding the
foregoing, the Committee may determine at the time of grant or thereafter, that
an Option that is otherwise non transferable is transferable in whole or in part
and in such circumstances, and under such conditions, as specified by the
Committee.

        
           

        

        
          9.  Rights
as a Stockholder.

        

        

        A holder
of an Option shall have no rights as a stockholder with respect to any Shares
covered by such holder’s Option until such holder shall have become the holder
of record of such Shares, and no adjustments shall be made for dividends in cash
or other property or distributions or other rights in respect to any such
Shares, except as otherwise specifically provided for in this Plan.

        
           

        

        
          10.  Determinations.

        

        

        Each
determination, interpretation or other action made or taken pursuant to the
provisions of this Plan by the Committee shall be final, conclusive and binding
for all purposes and upon all persons, including, without limitation, the
holders of any Options and the
Potential Participants and their respective heirs, executors,
administrators, personal representatives and other successors in
interest.

        
           

        

        
          11.  Termination,
Amendment and Modification.

        

        

        Notwithstanding
any other provision of this Plan, the Board or the Committee may at any time,
and from time to time, amend, in whole or in part, any or all of the provisions
of this Plan, or suspend or terminate it entirely, retroactively or otherwise;
provided, however, that, unless otherwise required by law or specifically
provided herein, the rights of a Participant with respect to Options granted
prior to such amendment, suspension or termination, may not be impaired without
the consent of such Participant; provided further, that no amendment may be made
without stockholder approval if stockholder approval is required under
applicable law.

        

        The
Committee may amend the terms of any Option theretofore granted, prospectively
or retroactively, but, subject to Section 5 or as otherwise specifically
provided herein, no such amendment or other action by the Committee shall impair
the rights of any holder without the holder’s consent.

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

        
          12.  Non-Exclusivity.

        

        

        Neither
the adoption of the Plan by the Board shall be construed as creating any
limitations on the power of the Board to adopt such other incentive arrangements
as it may deem desirable, including, without limitation, the granting or
issuance of Options, Shares and/or other incentives otherwise than under the
Plan, and such arrangements may be either generally applicable or limited in
application.

         

        
          13.  Use
of Proceeds.

        

        

        The
proceeds of the sale of Shares subject to Options under the Plan are to be added
to the general funds of the Company and used for its general corporate purposes
as the Board shall determine.

        
           

        

        
          14.  General
Provisions.

        

        

        (a)  Right to Terminate
Services.  Neither the adoption of the Plan nor the grant of
Options shall impose any obligations on the Company to retain any Participant as
a director nor shall it impose any obligation on the part of any Participant to
remain a director.

        

        (b)  Purchase for
Investment.  If the Board determines that the law so requires,
the holder of an Option granted hereunder shall, upon any exercise or conversion
thereof, execute and deliver to the Company a written statement, in form
satisfactory to the Company, representing and warranting that such Participant
is purchasing or accepting the Shares then acquired for such Participant’s own
account and not with a view to the resale or distribution thereof, that any
subsequent offer for sale or sale of any such Shares shall be made either
pursuant to (i) a registration statement on in appropriate form under the
Securities Act, which registration statement shall have become effective and
shall be current with respect to the Shares being offered and sold, or (ii) a
specific exemption from the registration requirements of the Securities Act, and
that in claiming such exemption the holder will, prior to any offer for sale or
sale of such Shares, obtain a favorable written opinion, satisfactory in form
and substance to the Company, from counsel approved by the Company as to the
availability of such exception.

        

        (c)  Trusts,
etc.  Nothing contained in the Plan and no action taken
pursuant to the Plan (including, without limitation, the grant of any Option
thereunder) shall create or be construed to create a trust of any kind, or a
fiduciary relationship, between the Company and any Participant or the executor,
administrator or other personal representative or designated beneficiary of such
Participant, or any other persons.  Any reserves that may be
established by the Company in connection with the Plan shall continue to be part
of the general funds of the Company, and no individual or entity other than the
Company shall have any interest in such funds until paid to a
Participant.  If and to the extent that any Participant or such
Participant’s executor, administrator, or other personal representative, as the
case may be, acquires a right to receive any payment from the Company pursuant
to the Plan, such right shall be no greater than the right of an unsecured
general creditor of the Company.

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        (d)  Notices. Each Participant
shall be responsible for furnishing the Committee with the current and proper
address for the mailing to such Participant of notices and the delivery to such
Participant of agreements, Shares and payments.  Any notices required
or permitted to be given shall be deemed given if directed to the person to whom
addressed at such address and mailed by regular United States mail, first class
and prepaid.  If any item mailed to such address is returned as
undeliverable to the addressee, mailing will be suspended until the Participant
furnishes the proper address.

        

        (e)  Severability of
Provisions.  If any provisions of the Plan shall be held
invalid or unenforceable, such invalidity or unenforceability shall not affect
any other provisions of the Plan, and the Plan shall be construed and enforced
as if such provisions had not been included.

        

        (f)  Payment to Minors,
Etc.  Any benefit payable to or for the benefit of a minor, an
incompetent person or other person incapable of receipting therefor shall be
deemed paid when paid to such person’s guardian or to the party providing or
reasonably appearing to provide for the care of such person, and such payment
shall fully discharge the Committee, the Company and their employees, agents and
representatives with respect thereto.

        

        (g)  Readings and
Captions.  The headings and captions herein are provided for
reference and convenience only.  They shall not be considered part of
the Plan and shall not be employed in the construction of the Plan.

        

        (h)  Other Benefits.  No
award under this Plan shall be deemed compensation for purposes of computing
benefits under any retirement plan of the Company or its subsidiaries nor affect
any benefits under any other benefit plan now or subsequently in effect under
which the availability or amount of benefits is related to the level of
compensation.

        

        (i)  409A.  To the
extent applicable, the Plan is intended to comply with the applicable
requirements of Section 409A of the Code and shall be limited, construed and
interpreted in a manner so as to comply therewith.  To the extent that
any Option is subject to Section 409A of the Code, it shall be paid in a manner
that will comply with Section 409A of the Code, including proposed, temporary or
final regulations or any other guidance issued by the Secretary of the Treasury
and the Internal Revenue Service with respect thereto.

        
           

        

        
          15.  Issuance
of Stock Certificates; Legends and Payment of Expenses.

        

        

        (a)  Uncertificated
Shares.  Upon any exercise of an Option and payment of the
exercise price as provided in such Option, Shares as to which such Option has
been exercised shall be issued by the Company in the name of the person or
persons exercising such Option along with a notice to the Participant containing
information about the Shares purchased, in lieu of issuance of a share
certificate, and the Company's transfer agent maintains a stock ledger that
contains the name and address of each stockholder and the number of shares that
the stockholder holds.  The Company will not issue shares in
certificated form.

        

        (b)  Legends. Certificates for
Shares issued upon exercise of an Option shall bear such legend or legends as
the Committee, in its discretion, determines to be necessary or appropriate to
prevent a violation of, or to perfect an exemption from, the registration
requirements of the Securities Act or to implement the provisions of any
agreements between the Company and the Participant with respect to such
Shares.

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

         

        (c)  Payment of
Expenses.  The Company shall pay all issue or transfer taxes
with respect to the issuance or transfer of Shares, as well as all fees and
expenses necessarily incurred by the Company in connection with such issuance or
transfer and with the administration of the Plan.

        

        (d)  Section 16(b) of the Act. All elections and
transactions under the Plan by persons subject to Section 16 of the Act
involving Shares are intended to comply with any applicable condition under Rule
16b-3, provided, however, noncompliance with the requirements of Rule 16b-3
shall not affect the validity of an Option granted under this
Plan.  To the extent any provision of the Plan or action by the
Committee fails to so comply, it shall be deemed null and void.  The
Committee may establish and adopt written administrative guidelines, designed to
facilitate compliance with Section 16(b) of the Act, as it may deem necessary or
proper for the administration and operation of the Plan and the transaction of
business thereunder.

        
           

        

        
          16.  Listing
of Shares and Related Matters.

        

        

        If at any
time the Board shall determine in its sole discretion that the listing,
registration or qualification of the Shares covered by the Plan upon any
national securities exchange or under any state or federal law, or the consent
or approval of any governmental regulatory body, is necessary or desirable as a
condition of, or in connection with the award or sale of Shares under the Plan,
no Shares will be delivered unless and until such listing, registration,
qualification, consent or approval shall have been effected or obtained, or
otherwise provided for, free of any conditions not acceptable to the
Board.

        
           

        

        
          17.  Governing
Law.

        

        

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

         

        
          
            
            

          

          
            13Unassociated Document

    
      Exhibit
10.6

       

    

    AGREEMENT
FOR PURCHASE AND SALE OF REAL PROPERTY

     

    Interior
Design Building:  306 East 61st
Street

     

    THIS
AGREEMENT (this “Agreement”)
is made this 21st day of
January, 2010 (the “Effective
Date”), by and between AMERICAN REALTY CAPITAL II, LLC (“Buyer”),
and URBAN DEVELOPMENT PARTNERS (61), LLC (“Seller”).

     

    In
consideration of the mutual promises set forth herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intending to be legally bound, agree as
follows:

     

    1.           Terms
and Definitions.  The terms listed below shall have the
respective meaning given them as set forth adjacent to each term.

     

    (a)           “Base
Purchase Price”
shall mean Thirty Two Million Two Hundred Fifty Thousand and No/00
($32,250,000).

     

    (b)           “Brokers” shall mean TQS Partners,
acting as Seller’s agent.

     

    (c)            “Closing” shall mean the consummation
of the transaction contemplated hereby, which shall take place at the offices of
Latham & Watkins LLP, 885 Third Avenue, New York, NY  10022 on
March 29, 2010 (the “Initial
Closing Date”).  Notwithstanding the foregoing, if Seller has
not secured the written consent of the Lender (as defined herein) under the Loan
(as defined herein), Buyer or Seller may extend Closing for up to eighty five
(85) days from the Initial Closing Date to allow Seller time to obtain such
written consent.  If (i) at the end of such eighty five (85) day
period Seller has still not secured the written consent of the Lender under the
Loan, or (ii) during such eighty five (85) day period a Material Adverse Change
shall have occurred, then Buyer shall have the right to terminate this Agreement whereupon Escrow Agent shall
refund the Earnest Money to Buyer and thereafter neither party shall have any
further rights, obligations or liabilities hereunder, except as otherwise
expressly set forth herein.

     

    Buyer
shall have the right, in its sole and absolute discretion to extend the Closing
Date (as such date may be extended in accordance with this Agreement) (the
“Closing
Extension Option”) for up to thirty (30) days, TIME BEING OF THE ESSENCE
WITH RESPECT TO BUYER’S OBLIGATION TO CLOSE ON SUCH DATE, by (i) providing
written notice of such extension to Seller prior to the Initial Closing Date and
(ii) delivering the Additional Earnest Money to the Escrow Agent on or before
the Initial Closing Date and in no event less than three (3) business days after
Seller’s receipt of Buyer’s notice to extend the Initial Closing
Date.

     

    (d)           “Closing
Date” shall mean the Initial Closing Date,
as such date may be extended in accordance with this Agreement. Anything
contained herein to the contrary notwithstanding, in no event shall the Closing
Date occur after June 21, 2010.

     

    (e)           “Due
Diligence Period”
shall mean the period beginning on the Effective Date and extending until 11:59
PM EST on the date that is thirty five (35) days thereafter.  Seller
shall deliver to Buyer substantially all of the Due Diligence Materials (as
defined herein) within five (5) business days after this Agreement is fully
executed.  If Buyer determines that any Due Diligence
Materials are missing, Buyer shall, within two (2) business days after the
expiration of said five (5) business day period, deliver to Seller a list
setting forth the Due Diligence Materials Buyer is missing.  Seller
shall deliver to Buyer all of the Due Diligence Materials set forth on such list
within ten (10) business days after receipt of such list from Buyer or an
explanation of why any such information is not available.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f)           “Earnest
Money” shall mean
collectively, and as applicable, the Initial Earnest Money and the Additional
Earnest Money.  “Initial
Earnest Money” shall mean Five Hundred Thousand Dollars and No/00
($500,000) and all interest accrued thereon.  The Initial Earnest
Money shall be delivered to Escrow Agent within one (1) business day after the
later of (i) Buyer’s receipt of a fully executed copy of this Agreement and (ii)
the Effective Date.  The Earnest Money shall be deposited in escrow
with the Escrow Agent in accordance with this Agreement.  If Buyer
elects to exercise the Closing Extension Option, then Buyer shall deliver an
additional Five Hundred Thousand Dollars and No/00 ($500,000) and all interest
accrued thereon (the “Additional
Earnest Money”) in accordance with the terms hereof.

     

    (g)           “Leases” shall mean those certain
leases with respect to the Property between Seller (or Seller’s predecessor in
interest), as landlord, and the various tenants (each a “Tenant”),
as each may be amended.

     

    (h)           “Material
Adverse Change”
shall mean a material adverse change to the business and operations of the
Property (taken as a whole).

     

    (i)           “Property” shall mean, collectively (a)
that certain real property located at 306 East 61st Street
in New York, New York, being more particularly described on Exhibit A, attached
hereto and incorporated herein (the “Real
Property”) together with all buildings and other improvements located
thereon (collectively, the “Improvements”);
(b) all right, title and interest of Seller under the Leases and all security
deposits (if any) that Seller is holding pursuant to the Leases (subject to the
terms thereof); (c) all right, title and interest of Seller in all machinery,
furniture, equipment and items of personal property of Seller attached or
appurtenant to, located on or used in the ownership, use, operation or
maintenance of the Property or the Improvements (collectively, the “Personalty”);
(d) all right, title and interest of Seller, if any, to any unpaid award for (1)
any taking or condemnation of the Property or any portion thereof, or (2) any
damage to the Property or the Improvements by reason of a change of grade of any
street or highway; (e) all easements, licenses, rights and appurtenances
relating to any of the foregoing; and (f) any and all right, title and interest
of Seller in and to any warranties, tradenames, logos (including any federal or
state trademark or tradename registrations), or other identifying name or mark
now used in connection with the Real Property and/or the Improvements, but
expressly excluding any such property to the extent owned by any Tenant (the
“Intangible
Property”).

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    (j)           “Seller’s
Notice Address”
shall be as follows, except as same may be changed pursuant to the Notice
section herein:

     

    Philip R.
Carter

    Urban
Development Partners (61), LLC

    188 East
78th
Street, 21st
Floor

    New York,
New York 10075

    Tel. No.:
(917) 885-8700

     

    and a
copy to:

     

    James I.
Hisiger

    Latham
& Watkins LLP

    885 Third
Avenue

    New York,
NY  10022

    Tel. No.:
(212) 906-1371

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (k)           “Buyer’s
Notice Address”
shall be as follows, except as same may be changed pursuant to the Notice
section herein:

     

    Michael
Happel

    American
Realty Capital II, LLC

    405 Park
Avenue, 15th Floor

    New York,
NY 10022

    Tel. No.:
(212) 415-6546

     

    and
to:

     

    Jesse
Galloway

    American
Realty Capital II, LLC

    405 Park
Avenue, 15th Floor

    New York,
NY 10022

    Tel. No.:
(212) 415-6516

     

    (l)           “Escrow
Agent” shall mean
Chicago Title Insurance Company, Suite 1325, 1515 Market Street, Philadelphia,
PA 19102-1930, Attention:  Edwin G. Ditlow, Telephone:
215-875-4184.

     

    2.           Purchase and Sale of the
Property.  Subject to and in accordance with the terms of this
Agreement, Seller agrees to sell to Buyer and Buyer agrees to purchase from
Seller the Property.

     

    3.           Purchase
Price and Payment.

     

    (a)           The
purchase price (“Purchase
Price”) to be paid by Buyer to Seller for the Property is the aggregate
of (i) the Base Purchase Price, plus (ii) Buyer’s Closing Costs (as defined in
Section 4 of this Agreement below.

     

    (b)           All
amounts payable by Buyer to Seller under this Agreement, after adjustment for
assumption of the Loan, unless otherwise specified, shall be paid by wire
transfer of immediately available funds to the Escrow Agent on the Closing
Date.

     

    4.    Proration of Expenses
and Payment of Costs and Recording Fees.

     

    (a)           All
real estate taxes, water and sewer use charges, and any other charges and
assessments constituting a lien on the Property (collectively “Taxes and
Assessments”) shall be prorated between Buyer and Seller as
follows:

     

    (i)             Seller
shall be responsible for that portion of the Taxes and Assessments equal to (x)
the total of the Taxes and Assessments due and payable during the calendar year
in which the Closing occurs, multiplied by (y) a fraction,
the numerator of which shall be the number of days in such calendar year prior
to the Closing Date, and the denominator of which shall be 365; and

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (ii)            Buyer
shall be responsible for that portion of the Taxes and Assessments equal to (x)
the total such taxes due and payable during the calendar year in which the
Closing occurs, multiplied by (y) a fraction,
the numerator of which shall be the number of days in such calendar year
occurring on and subsequent to the Closing Date, and the denominator of which
shall be 365.

     

    (b)           All
rents (including operating expense and real estate tax contributions or
reimbursements and similar charges (collectively, “Tenant
Pass-Throughs”)), credits, security deposits and set-offs due or required
to be paid under or by reason of the Leases shall be adjusted pro-rata by
appropriate credit to the Seller or Buyer (as the case may be) on the Closing
Date.  If, at the Closing Date, any Tenant is in arrears in the
payment of rents, Seller will disclose the same to Buyer in writing or on the
Rent Roll and such amounts shall not be adjusted on the Closing
Date.  Prior to the Closing Date, Seller shall use Seller’s current
business practices to collect such arrearages.  Buyer shall use
reasonable efforts to collect any such arrearages after the Closing Date, and
Buyer shall turn over to Seller the arrearages so collected, less the reasonable
cost of collection thereof, if any; provided, however, Buyer shall only be
obligated to do so for a period of ninety (90) days after the Closing
Date.  After such ninety (90) day period, Seller may seek to collect
the arrearages by legal action.  All rents collected by Buyer after
the Closing Date (except for amounts specifically billed and paid as end of year
reconciliation payments for Tenant Pass-Throughs, which shall be separately
accounted for and allocated, pro rata, between Seller and Buyer as their
interest may appear) shall be first applied to rents payable after the Closing
Date and only the excess thereof shall be paid over to Seller on account of the
arrearages.  To the extent that items to be apportioned hereunder may
be required to be paid directly by a Tenant under its Lease,
same shall not be apportioned, provided, however, that such items shall have
been paid by such Tenant currently through the month including the Closing
Date.  In addition, Seller shall (i) account to and turn over to Buyer
any and all security deposits paid by existing Tenants (“Tenant Security
Deposits”), or (ii) provide Buyer a credit against the Purchase Price in
the amount of the Tenant Security Deposits.  The provisions of this
subparagraph (b) shall survive Closing and the delivery of the Deed and the
Assignments (each, as defined below), and shall survive the expiration of this
Agreement.

     

    (c)           Accrued
payments of debt service on account of the Loan shall be prorated as of the date
immediately preceding the Closing Date together with a credit or debit for all
escrows and reserves held by Lender or to be held by Lender pursuant to the
Loan.

     

    (d)           Seller
shall pay or be charged with the following costs and expenses in connection with
this transaction which costs shall be referred to as “Seller’s
Closing Costs”:

     

    (i)           
Any and all state and local transfer taxes on the sale and transfer of the
Property shall be paid by Seller;

    

    (ii)           All
costs and expenses incurred by Lender or any other third party (other than Buyer
or any assignee of Buyer permitted under this Agreement) in connection with the
Loan Assumption (as defined herein) shall be paid by the Seller, including any
assumption fee or legal costs associated therewith, that are not paid by the
Lender provided, however, in the event
the Seller has the opportunity to pay a commercially reasonable fee to Lender to
accelerate the Loan Assumption approval process (the “Acceleration
Fee”), Seller agrees to pay the Acceleration Fee in an amount not to
exceed Four Thousand Dollars and No/00 ($4,000) and Buyer shall reimburse Seller
for any such Acceleration Fee.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    (iii)           Broker’s
commission payments (for both leasing and sales commissions earned), in
accordance with Section 23 of this Agreement; and

    

    (iv)           Any
costs incurred in connection with the release of exceptions to title that are
not “Permitted Exceptions” (as defined herein), including, but not limited to,
prepayment penalty fees and recording fees for documents providing for the
release of the Property from the such exceptions.

    

    Seller’s
Closing Costs shall be capitalized and are deemed to be included in the Base
Purchase Price for the Property.

    

    (e)           Buyer
shall pay or be charged with the following costs and expenses in connection with
this transaction, which costs shall be referred to as “Buyer’s
Closing Costs”:

     

    (i)           100%
of all Owner’s Title Insurance policy premiums, including any endorsements
issued in connection with such policies; and

    

    (ii)           Buyer
shall pay for the cost of its own survey, Phase 1 environmental study and due
diligence investigations.

    

    Buyer’s
Closing Costs shall be paid or reimbursed by Seller and shall be added to the
Base Purchase Price to establish the Purchase Price for the Property, and Buyer
shall pay for any and all costs resulting from such increase in Purchase Price,
including, without limitation, any additional transfer taxes paid by Seller on
account thereof, to the effect that Seller’s payment of Buyer Closing Costs is
economically neutral to Seller.

    

    (f)          
Each party shall pay its own legal fees incidental to the negotiation, execution
and delivery of this Agreement and the consummation of the transactions
contemplated hereby.

     

    (g)          Fuel
oil shall be measured the day prior to the Closing Date and shall be prorated
between Buyer and Seller as of the Closing Date.

     

    (h)          Salaries,
payroll taxes and fringe benefits payable to employees.

     

    (i)          
All other items customarily apportioned in connection with sales of retail,
office and showroom buildings.

     

    5.    Title.  At
Closing, Seller agrees to convey to Buyer fee simple marketable title to the
Property by bargain and sale deed with covenants against grantor’s acts, in the
form attached hereto as Exhibit B, free and clear of all liens, defects of
title, conditions, easements, assessments, restrictions, and encumbrances except
Permitted Exceptions.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    6.    Examination of
Property.  Seller and Buyer hereby agree as
follows:

     

    (a)           Buyer
shall order a title commitment (the “Title
Commitment”) from Escrow Agent promptly after the date
hereof.  All matters shown in the Title Commitment with respect to
which Buyer fails to object prior to the expiration of the Due Diligence Period
shall be deemed “Permitted
Exceptions”; provided, however, Permitted Exceptions shall not include
and Seller shall be obligated to cure or remove any mechanic’s lien or any
monetary lien or any deeds of trust, mortgages, or other loan documents secured
by the Property, except for taxes and special assessments not yet due and
payable, or any mortgage and related documents executed in connection with the
Loan Assumption.  If any matter not revealed in the Title Commitment
is discovered by Buyer or by the Escrow Agent and is added to the Title
Commitment by the Escrow Agent at or prior to Closing, Buyer shall have until
the earlier of (i) ten (10) days after Buyer’s receipt of the updated, revised
Title Commitment showing the new title exception, together with a legible copy
of any such new matter, or (ii) the Closing Date, to provide Seller with written
notice of its objection to any such new title exception (an “Objection”).  If
Seller does not, within thirty (30) days of receipt of notice of an Objection,
remove or cure such Objection, Buyer may terminate this Agreement, in which case
the Earnest Money shall be returned to Buyer.  In addition, if such
Objection was caused by an act of Seller or by reason of Seller’s refusal to act
Seller shall reimburse Buyer for all out of pocket costs and expenses incurred
hereunder and neither party shall have any further obligation hereunder, except
as otherwise expressly set forth herein.

     

    (b)           Within
the time period set forth in Section 1(e), Seller shall have provided to Buyer
copies of the following documents and materials pertaining to the Property to
the extent within Seller’s possession or reasonably obtainable by Seller or
Seller’s counsel: (i) a complete copy of all Leases affecting the Property and
all amendments thereto; (ii) a copy of the survey of the Property; (iii) a copy
of all architectural plans and specifications and construction drawings and
contracts for improvements constructed and located on the Property; (iv) a copy
of Seller’s title insurance policy relating to the Property; (v) a copy of the
certificate of occupancy for the Property; (vi) a copy of all environmental,
engineering and physical condition reports for the Property; (vii) copies of the
Property’s real estate tax bills for the current and prior three (3) tax years;
(viii) copies of any and all operating statement for the Property for the years
2007, 2008 and 2009; (ix) all service contracts and certificates of insurance
which affect the Property; (x) a copy of any management agreement relating to
the management of the Property;and (xi) copies of the material loan documents
for the Loan (collectively, the “Due
Diligence Materials”).  To the extent in Seller’s possession,
Seller shall deliver any other documents relating to the Property reasonably
requested by Buyer within three (3) business days following such
request.  Additionally, during the term of this Agreement, Buyer, its
agents and designees, shall have the right to enter the Property for the
purposes of inspecting the Property, and making surveys, environmental and
appraisal inspections, mechanical and structural engineering studies; provided,
however, that such activities by or on behalf of Buyer on the Property shall not
damage the Property nor interfere with the conduct of business by any Tenant
under the Leases; and provided further, however, that Buyer shall indemnify and
hold Seller harmless from and against any and all claims or damages to the
extent resulting from the activities of Buyer on the Property.  Buyer
shall repair any and all damage caused, in whole or in part, by Buyer and return
the Property to its condition prior to such damage, which obligation shall
survive Closing or any termination of this Agreement.  Buyer shall
deliver to Seller an insurance policy which shall contain a contractual
indemnity provision covering such indemnity.  Seller shall reasonably
cooperate with the efforts of Buyer and Buyer’s representatives to inspect the
Property.  After the Effective
Date, Buyer shall be permitted to speak and/or meet with any two (2) Tenants
whose leases expire in 2011 in connection with Buyer’s due diligence, provided
that Seller shall have the right, either in person or by his designee, to
accompany Buyer at all times at any such meeting and participate in any
conference calls between Buyer and such Tenants  Buyer shall give
Seller reasonable written notice (which in any event shall not be less than two
(2) business days) before entering the Property, and Seller may have a
representative present during any and all examinations, inspections and/or
studies on the Property.  Notwithstanding the foregoing, Buyer may not
conduct a Phase 2 environmental inspection without the prior consent of Seller,
which may be withheld or granted in Seller’s sole discretion.  Buyer
shall have the unconditional right, for any reason or no reason, to terminate
this Agreement by giving written notice thereof to Seller prior to the
expiration of the Due Diligence Period, in which event this Agreement shall
become null and void, Buyer shall receive a refund of the Earnest Money, and all
rights, liabilities and obligations of the parties under this Agreement shall
expire, except as otherwise expressly set forth herein.  If Buyer does
not deliver to Seller prior to the expiration of the Due Diligence Period a
written notice stating that it waives its right to terminate this Agreement,
then Buyer shall be deemed to have elected to terminate this Agreement, for any
reason or no reason at all.

    
       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

    

    (c)           Seller
shall use good faith efforts to obtain an estoppel certificate from each Tenant
substantially in the form attached hereto as Exhibit F-1 (the
“Tenant
Estoppel Certificate”) prior to the Closing Date.  Seller shall
promptly deliver to Buyer photocopies of the executed Tenant Estoppel
Certificates when Seller receives the same.  Within five (5) business
days following the date that Buyer has received complete copies of the Leases,
Buyer may propose modifications or additions to the Tenant Estoppel
Certificate.

     

    (d)           If
Seller is unable to timely obtain a Tenant Estoppel Certificate from 100% of the
Tenants (based on building square footage) prior to the Closing Date, Seller
agrees at the request of Buyer to deliver to Buyer prior to the Closing Date a
Seller Estoppel in substantially the form attached as Exhibit F-2 (a “Seller
Estoppel”) for such missing Tenant Estoppel Certificates relating to its
premises, provided that Buyer shall not be required to accept a Seller Estoppel
for more than 25% of the Tenants.  If Seller delivers a Seller
Estoppel, and if thereafter a Tenant Estoppel Certificate is received from the
Tenant under the Lease covered by such Seller Estoppel, then such Tenant
Estoppel Certificate shall be substituted for the applicable Seller Estoppel and
Seller shall have no further liability thereunder, provided that the Tenant
Estoppel Certificate contains no material changes from the Seller Estoppel, or
if materially changed, is otherwise acceptable to Buyer.  The
provisions of this Section shall survive the Closing.

     

    7.    Risk of
Loss/Condemnation.  Upon an occurrence of a casualty,
condemnation or taking, Seller shall notify Buyer in writing of
same.  Until Closing, the risk of loss or damage to the Property,
except as otherwise expressly provided herein, shall be borne by
Seller.  In the event all or any portion of the Property is damaged in
any casualty or condemned or taken (or notice of any condemnation or taking is
issued) so that:  (a) any Tenant has a right of termination or
abatement of rent under the Leases, or (b) with respect to any casualty, if the
cost to repair such casualty would exceed $500,000, or (c) with respect to any
condemnation, any Improvements or access to the Property or more than five
percent (5%) of the Property is (or will be) condemned or taken, then, Buyer may
elect to terminate this Agreement by providing written notice of
such termination to Seller within ten (10) business days after Buyer’s receipt
of notice of such condemnation, taking or damage, upon which termination the
Earnest Money shall be returned to Buyer and neither party hereto shall have any
further rights, obligations or liabilities under this Agreement, except as
otherwise expressly set forth herein.  With respect to any
condemnation or taking (of any notice thereof), if Buyer does not elect to
cancel this Agreement as aforesaid, there shall be no abatement of the Purchase
Price and Seller shall assign to Buyer at the Closing the rights of Seller to
the awards, if any, for the condemnation or taking, and Buyer shall be entitled
to receive and keep all such awards (net of all reasonable third party costs and
expenses expended or incurred by Seller in order to obtain such
proceeds).  With respect to a casualty, if Buyer does not elect to
terminate this Agreement or does not have the right to terminate this Agreement
as aforesaid, there shall be no abatement of the Purchase Price and Seller shall
assign to Buyer at the Closing the rights of Seller to the proceeds under
Seller’s insurance policies covering such Property with respect to such damage
or destruction (or pay to Buyer any such proceeds received prior to Closing) and
pay to Buyer the amount of  any deductible with respect thereto, and
Buyer shall be entitled to receive and keep any monies received from such
insurance policies.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

     

    8.    Earnest Money
Disbursement.  The Earnest Money shall be held by Escrow Agent,
in trust, and disposed of only in accordance with the following
provisions:

     

    (a)           Escrow
Agent shall invest the Earnest Money in a money market account with Citizens
Bank, and shall promptly provide Buyer and Seller with confirmation of the
investments made.

     

    (b)           If
the Closing occurs, Escrow Agent shall deliver the Earnest Money to, or upon the
instructions of, Seller and Buyer on the Closing Date to be applied as part
payment of the Purchase Price.  If for any reason the Closing does not
occur, Escrow Agent shall deliver the Earnest Money to Seller or Buyer only upon
receipt of a written demand therefor from such party, subject to the following
provisions of this clause (b).  Subject to the last sentence of this
clause (b), if for any reason the Closing does not occur and either party makes
a written demand (the “Demand”) upon Escrow Agent for payment of the Earnest
Money, Escrow Agent shall give written notice to the other party of the Demand
within one business day after receipt of the Demand.  If Escrow Agent
does not receive a written objection from the other party to the proposed
payment within five (5) business days after the giving of such notice by Escrow
Agent, Escrow Agent is hereby authorized to make the payment set forth in the
Demand.  If Escrow Agent does receive such written objection within
such period, Escrow Agent shall continue to hold such amount until otherwise
directed by written instructions signed by Seller and Buyer or a final judgment
of a court.  Notwithstanding the foregoing provisions of this clause
(b) if Buyer delivers a notice to Escrow Agent stating that Buyer has terminated
this Agreement on or prior to the expiration of the Due Diligence Period, then
Escrow Agent shall immediately return the Earnest Money to Buyer without the
necessity of delivering any notice to, or receiving any notice from
Seller.

     

    (c)           The
parties acknowledge that Escrow Agent is acting solely as a stakeholder at their
request and for their convenience, that Escrow Agent shall not be deemed to be
the agent of either of the parties, and that Escrow Agent shall not be liable to
either of the parties for any action or omission on its part taken or made in
good faith, and not in disregard of this
Agreement, but shall be liable for its negligent acts and for any liabilities
(including reasonable attorneys’ fees, expenses and disbursements) incurred by
Seller or Buyer resulting from Escrow Agent’s mistake of law respecting Escrow
Agent scope or nature of its duties.  Seller and Buyer shall jointly
and severally indemnify and hold Escrow Agent harmless from and against all
liabilities (including reasonable attorneys’ fees, expenses and disbursements)
incurred in connection with the performance of Escrow Agent’s duties hereunder,
except with respect to actions or omissions taken or made by Escrow Agent in bad
faith, in disregard of this Agreement or involving negligence on the part of
Escrow Agent.  Escrow Agent has executed this Agreement in the place
indicated on the signature page hereof in order to confirm that Escrow Agent has
received and shall hold the Earnest Money in escrow, and shall disburse the
Earnest Money pursuant to the provisions of this Section 8.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    9.           Default

     

    (a)           In
the event that Seller is ready, willing and able to close in accordance with the
terms and provisions hereof, and Buyer defaults in the performance of any of its
obligations under this Agreement, Seller shall be entitled to, as its sole and
exclusive remedy to either:  (i) if Buyer is willing to proceed to
Closing, waive such default and proceed to Closing in accordance with the terms
and provisions hereof; or (ii) declare this Agreement to be terminated, and
Seller shall be entitled to immediately receive all of the Earnest Money as
liquidated damages as and for Seller’s sole remedy.  Upon such
termination, neither Buyer nor Seller shall have any further rights, obligations
or liabilities hereunder, except as otherwise expressly provided
herein.  Seller and Buyer agree that (a) actual damages due to Buyer’s
default hereunder would be difficult and inconvenient to ascertain and that such
amount is not a penalty and is fair and reasonable in light of all relevant
circumstances, (b) the amount specified as liquidated damages is not
disproportionate to the damages that would be suffered and the costs that would
be incurred by Seller as a result of having withdrawn the Property from the
market, and (c) Buyer desires to limit its liability under this Agreement to the
amount of the Earnest Money paid in the event Buyer fails to complete
Closing.  Seller hereby waives any right to recover the balance of the
Purchase Price, or any part thereof, and the right to pursue any other remedy
permitted at law or in equity against Buyer.  In no event under this
Section or otherwise shall Buyer be liable to Seller for any punitive,
speculative or consequential damages.

     

    (b)           In
the event that Seller defaults in the performance of any of its obligations
under this Agreement, Buyer may, as its sole and exclusive remedy,
either:  (i) waive any unsatisfied conditions and proceed to Closing
in accordance with the terms and provisions hereof without any abatement in the
payment of the Purchase Price; (ii) terminate this Agreement by delivering
written notice thereof to Seller no later than Closing, upon which termination
the Earnest Money shall be refunded to Buyer, Seller shall pay to Buyer all of
the out-of-pocket costs and expenses incurred by Buyer in connection with this
Agreement, which return and payment shall operate to terminate this Agreement
and release Seller and Buyer from any and all liability hereunder, except those
which are specifically stated herein to survive any termination hereof; (iii)
enforce specific performance of Seller’s obligations hereunder;  or
(iv) by notice to Seller given on or before the Closing Date, extend the Closing
Date for a period of up to thirty (30) days (the “Closing
Extension Period”) to permit Seller to remedy any such default, and the
“Closing Date” shall be moved to the last day of the Closing Extension Period,
AS TO WHICH DATE, TIME IS OF THE ESSENCE.  If Buyer so extends the
Closing Date, then Seller may, but shall not be obligated to, cause said
conditions to be satisfied during the Closing Extension Period.  If
Seller does not cause said conditions to be satisfied during the Closing
Extension Period, then Buyer shall have the remedies set forth in Section
9(b)(i) through (iii) above.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    10.    Closing.  The
Closing shall consist of the execution and delivery of documents by Seller and
Buyer, as set forth below, and delivery by Buyer to Seller of the Purchase Price
in accordance with the terms of this Agreement.  Seller shall deliver
to Buyer or to Escrow Agent, as directed by Buyer, for the benefit of Buyer at
Closing the following executed documents:

     

    (a)           a
Bargain and Sale Deed With Covenants Against Grantor’s Acts in the form attached
hereto as Exhibit B (the “Deed”);

     

    (b)           an
Assignment of Leases and Security Deposits, in the form attached hereto as
Exhibit C (the “Assignment
of Leases”);

     

    (c)           Intentionally
Deleted.

     

    (d)           an
Assignment of Contracts, Permits, Licenses and Warranties in the form of Exhibit
E (the “Assignment
of Contracts”; together with the Assignment of Leases, the “Assignments”);

     

    (e)           the
original Tenant Estoppel Certificates (or Seller’s Estoppel, as applicable) as
required by this Agreement, and reflect no defaults under the
Leases;

     

    (f)           Intentionally
Deleted;

     

    (g)           a
settlement statement setting forth the Purchase Price, all prorations and other
adjustments to be made pursuant to the terms hereof, and the funds required for
Closing as contemplated hereunder;

     

    (h)           all
transfer tax statements, declarations and filings as may be necessary or
appropriate for purposes of recordation of the deed;

     

    (i)           good
standing certificates and corporate resolutions or member or partner consents,
as applicable, and such other documents as reasonably requested by Escrow
Agent;

     

    (j)           to
the extent in Seller’s possession, originals of the warranties set forth on
Exhibit H;

     

    (k)           to
the extent not previously delivered to Buyer, the Leases, bearing the original
signatures of the landlord and tenant thereunder, or a copy thereof bearing an
original certification of the related Tenant confirming that the copy is true,
correct and complete; the leasing files; and copies of all books and records
applicable to the Property which are identified by Buyer by written notice to
Seller and reasonably necessary for the orderly transition of operation of the
Property;

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (l)           a
certificate pursuant to Section 1445 of the Internal Revenue Code of 1986, as
amended, or the regulations issued pursuant thereto, certifying the non foreign
status of Seller;

     

    (m)           an
owner’s title affidavit as to mechanics’ liens and possession and other matters
in customary form reasonably acceptable to Seller and Escrow Agent;

     

    (n)           Intentionally
Deleted;

     

    (o)           letter
to each Tenant in form of Exhibit G attached hereto;

     

    (p)           the
Loan Assumption signed by the Lender and Seller;

     

    (q)           Intentionally
Deleted; and

     

    (r)           such
other instruments as are reasonably required by Escrow Agent to effectuate the
Closing in accordance with the terms hereof.

     

    At
Closing, Buyer shall instruct Escrow Agent to deliver the Earnest Money to
Seller which shall be applied to the Purchase Price, shall wire transfer the
balance of the Purchase Price to Seller and shall execute and deliver execution
counterparts of the closing documents referenced in clauses (b), (d), (g), (h),
(o) and (p) set forth above.

     

    11.    Representation by
Seller.  For the purpose of inducing Buyer to enter into this
Agreement and to consummate the sale and purchase of the Property in accordance
herewith, Seller makes the following representations and warranties to Buyer as
of the date hereof and as of the Closing Date.

     

    (a)           Seller
is duly organized (or formed), validly existing and in good standing under the
laws of its state of organization, and to the extent required by law, the State
in which the Property is located.  Seller has the power and authority
to execute and deliver this Agreement and all closing documents to be executed
by Seller, and to perform all of Seller’s obligations hereunder and
thereunder.  Neither the execution and delivery of this Agreement and
all closing documents to be executed by Seller, nor the performance of the
obligations of Seller hereunder or thereunder will result in the violation of
any law or any provision of the organizational documents of Seller or will
conflict with any order or decree of any court or governmental instrumentality
of any nature by which Seller is bound;

     

    (b)           Except
as set forth on Schedule 11 attached hereto and made a part hereof, Seller has
not received any written notice of any current or pending litigation,
condemnation proceeding or tax appeals affecting Seller or the Property and
Seller does not have any knowledge of any proposed or pending condemnation
proceeding, pending litigation or tax appeals against Seller or the Property;
Seller has not initiated, nor is Seller participating in, any action for a
change or modification in the current subdivision, zoning or other land use
permits for the Property;

     

    (c)           Except
as set forth on Schedule 11, Seller has not entered into any contracts,
subcontracts or agreements (including agreements for any brokerage or leasing
commissions) affecting the Property which will be binding upon Buyer after the
Closing other than the Leases;

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (d)           Except
for violations cured or remedied on or before the Closing Date, Seller has not
received any written notice from (or delivered any notice to) any governmental
authority regarding any violation of any law applicable to the Property and
Seller does not have knowledge of any such violations;

     

    (e)           Intentionally
Deleted.

     

    (f)           Intentionally
Deleted.

     

    (g)           There
are no occupancy rights, leases or tenancies affecting the Property other than
the Leases or subleases identified on Exhibit I attached
hereto.  Neither this Agreement nor the consummation of the
transactions contemplated hereby is subject to any first right of refusal or
other purchase right in favor of any other person or entity; and apart from this
Agreement, Seller has not entered into any written agreements for the purchase
or sale of the Property, or any interest therein which has not been
terminated;

     

    (h)           Intentionally
Deleted.

     

    (i)           To
Seller’s knowledge, except as set forth in the environmental reports previously
delivered by Seller to Buyer, no hazardous substances have been generated,
stored, released, or disposed of on or about the Property in violation of any
law, rule or regulation applicable to the Property which regulates or controls
matters relating to the environment or public health or safety (collectively,
“Environmental
Laws”).  Seller has not received any written notice from (nor
delivered any notice to) any federal, state, county, municipal or other
governmental department, agency or authority concerning any petroleum product or
other hazardous substance discharge or seepage.  For purposes of this
Subsection, “hazardous substances” shall mean any substance or material which is
defined or deemed to be hazardous or toxic pursuant to any Environmental
Laws.  To Seller’s knowledge, there are no underground storage tanks
located on the Property; and

     

    (j)           Exhibit
H attached hereto is a true, correct and complete listing of all warranties in
effect for the Property (the “Warranties”).

     

    The
representations and warranties of Seller in clause (a), (b), (c), (d), (g) and
(i) above shall survive Closing for a period of one (1) year.

     

    12.    Representations
by
Buyer.  Buyer represents and warrants to, and covenants with,
Seller as follows:

     

    (a)           Buyer
is duly formed, validly existing and in good standing under the laws of
Delaware, is authorized to consummate the transaction set forth herein and
fulfill all of its obligations hereunder and under all closing documents to be
executed by Buyer, and has all necessary power to execute and deliver this
Agreement and all closing documents to be executed by Buyer, and to perform all
of Buyer’s obligations hereunder and thereunder.  This Agreement and
all closing documents to be executed by Buyer have been duly authorized by all
requisite corporate or other required action on the part of Buyer and are the
valid and legally binding obligation of Buyer, enforceable in accordance with
their respective terms.  Neither the execution and delivery of this
Agreement and all closing documents to be executed by Buyer, nor the performance
of the obligations of Buyer hereunder or thereunder will result in the violation
of any law or any provision of the organizational documents of Buyer or will
conflict with any order or decree of any court or governmental instrumentality
of any nature by which Buyer is bound.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    The
representations and warranties of Buyer shall survive Closing for a period of
one (1) year.

     

    13.    Conditions Precedent
to Buyer’s Obligations.  Buyer’s obligation to pay the Purchase
Price, and to accept title to the Property, shall be subject to compliance by
Seller with the following conditions precedent on and as of the Closing
Date:

     

    (a)           Seller
shall deliver to Buyer on or before the Closing the items set forth in Section
10 above;

     

    (b)           Except
as set forth on Schedule 13 attached hereto and made a part hereof and any
immaterial changes made thereto by reason of a change in circumstances between
the Effective Date and the Closing Date which is not the result of a default by
Seller of its obligations hereunder, each Tenant shall be in possession of the
premises demised under their respective Leases and paying full and unabated rent
under their respective Leases and no Tenant shall have assigned or sublet the
premises demised under their respective Lease;

     

    (c)           The
representations and warranties of Seller contained in this Agreement shall have
been true when made and shall be true in all material respects at and as of the
Closing Date as if such representations and warranties were made at and as of
the Closing, and Seller shall have performed and complied in all material
respects with all covenants, agreements and conditions required by this
Agreement to be performed or complied with by Seller prior to or at the
Closing;

     

    (d)           Intentionally
Deleted;

     

    (e)           Intentionally
Deleted;

     

    (f)           Approval
by Lender for the Loan Assumption.

     

    In the
event that the foregoing conditions precedent have not been satisfied as of
Closing, Buyer shall have the rights and remedies set forth in Section 9(b) or
elsewhere in this Agreement.

     

    14.    Conditions Precedent
to Seller’s Obligations.  Seller’s obligation to deliver title
to the Property shall be subject to compliance with the following conditions
precedent on and as of the Closing Date or the waiver thereof by
Seller:

     

    (a)           Escrow
Agent shall deliver the Earnest Money; and

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (b)                      Buyer
shall deliver to Seller on the Closing Date the remainder of the Purchase Price
subject to adjustment of such amount pursuant to Section 2 hereof;
and

     

    (c)           The
representations and warranties of Buyer contained in this Agreement shall have
been true when made and shall be true in all material respects at and as of the
Closing Date as if such representations and warranties were made at and as of
the Closing, and Buyer shall have performed and complied in all material
respects with all covenants, agreements and conditions required by this
Agreement to be performed or complied with by Buyer prior to or at the
Closing.

     

    15.    Notices.  Unless
otherwise provided herein, all notices and other communications which may be or
are required to be given or made by any party to the other in connection
herewith shall be in writing and shall be deemed to have been properly given and
received on the date: (i) delivered in person to an adult at the address set out
in Section 1, (ii) that is three (3) days after such notice or communication is
deposited in the United States mail, registered or certified, return receipt
requested, postage prepaid, or (iii) that is one day after such notice or
communication is deposited with a nationally recognized overnight courier, to
the addresses set out in Section 1, or at such other addresses as specified by
written notice delivered in accordance herewith.  Notwithstanding the
foregoing, Seller and Buyer agree that notice may be given on behalf of each
party by the counsel for each party and notice by such counsel in accordance
with this Section 15 shall constitute notice under this Agreement.

     

    16.    Seller
Covenants.  Seller agrees that it:  (a) shall
continue to operate and manage the Property in the same manner in which Seller
has previously operated and maintained the Property; (b) shall, subject to
Section 7 hereof and subject to reasonable wear and tear, maintain the Property
in the same condition as exists on the date hereof; and (c) shall
not:  (i) amend any of the Leases in any manner, nor enter into any
new lease, license agreement or other occupancy agreement with respect to the
Property without the prior written consent of Buyer, which will not be
unreasonably withheld; (ii) consent to an assignment of the Leases or a sublease
of the premises demised thereunder or a termination or surrender thereof without
Buyer’s prior written consent, which, after the expiration of the Due Diligence
Period may be withheld in Buyer’s sole discretion; (iii) terminate any of the
Leases nor release any guarantor of or security for the Leases unless required
by the express terms of any of the Leases without Buyer’s prior written consent,
which, after the expiration of the Due Diligence Period may be withheld in
Buyer’s sole discretion; and/or (iv) cause, permit or consent to an alteration
of the premises demised thereunder without Buyer’s prior written consent, which,
after the expiration of the Due Diligence Period may be withheld in Buyer’s sole
discretion (unless such consent is non-discretionary).  Seller shall
promptly inform Buyer in writing of any material event adversely affecting the
ownership, use, occupancy or maintenance of the Property, whether insured or
not.

     

    17.    Performance on
Business Days.  A "business day" is a day which is not a
Saturday, Sunday or legal holiday recognized by the Federal
Government.  Furthermore, if any date upon which or by which action is
required under this Agreement is not a business day, then the date for such
action shall be extended to the first day that is after such date and is a
business day.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    18.    Entire
Agreement.  This Agreement constitutes the sole and entire
agreement among the parties hereto and no modification of this Agreement shall
be binding unless in writing and signed by all parties
hereto.   No prior agreement or understanding pertaining to the
subject matter hereof (including, without limitation, any letter of intent
executed prior to this Agreement) shall be valid or of any force or effect from
and after the date hereof.

     

    19.    Severability.
If any provision of this Agreement, or the application thereof to any
person or circumstance (except with respect to the payment of the Purchase
Price), shall be invalid or unenforceable, at any time or to any extent, then
the remainder of this Agreement, or the application of such provision to persons
or circumstances other than those as to which it is invalid or unenforceable,
shall not be affected thereby.  Each provision of this Agreement shall
be valid and enforced to the fullest extent permitted by law

     

    20.    No Representations or
Warranties.  Buyer hereby acknowledges, understands and agrees
that it has an opportunity to inspect the Property as set forth in Section 6
herein, and except as set forth in this Agreement, the Property shall be
conveyed at Closing to Buyer in “as-is” condition with no representation or
warranties whatsoever.

     

    21.    Applicable
Law.  This Agreement shall be construed under the laws of the
State of New York.

     

    22.    Tax-Deferred
Exchange.  Buyer and Seller respectively acknowledge that the
purchase and sale of the Property contemplated hereby may be part of a separate
exchange (an “Exchange”)
being made by each party pursuant to Section 1031 of the Internal Revenue Code
of 1986, as amended, and the regulations promulgated with respect
thereto.  In the event that either party (the “Exchanging
Party”) desires to effectuate such an exchange, then the other party (the
“Non-Exchanging
Party”) agrees to cooperate fully with the Exchanging Party in order that
the Exchanging Party may effectuate such an exchange; provided, however, that
with respect to such Exchange (a) all additional costs, fees and expenses
related thereto shall be the sole responsibility of, and borne by, the
Exchanging Party; (b) the Non-Exchanging Party shall incur no additional
liability as a result of such exchange; (c) the contemplated exchange shall not
delay any of the time periods or other obligations of the Exchanging Party
hereby, and without limiting the foregoing, the scheduled date for Closing shall
not be delayed or adversely affected by reason of the Exchange; (d) the
accomplishment of the Exchange shall not be a condition precedent or condition
subsequent to the Exchanging Party's obligations under the Agreement; and (e)
the Non-Exchanging Party shall not be required to hold title to any land other
than the Property for purposes of the Exchange.  The Exchanging Party
agrees to defend, indemnify and hold the Non-Exchanging Party harmless from any
and all liability, damage or cost, including, without limitation, reasonable
attorney's fees that may result from Non-Exchanging Party's cooperation with the
Exchange. The Non-Exchanging Party shall not, by reason of the Exchange, (i)
have its rights under this Agreement, including, without limitation, any
representations, warranties and covenants made by the Exchanging Party in this
Agreement (including but not limited to any warranties of title, which, if
Seller is the Exchanging Party, shall remain warranties of Seller), or in any of
the closing documents (including but not limited to any warranties of title,
which, if Seller is the Exchanging Party, shall remain warranties of Seller)
contemplated hereby, adversely affected or diminished in any manner, or (ii) be
responsible for compliance with or deemed to have warranted to the Exchanging
Party that the Exchange complies with Section 1031 of the Code.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    23.    Broker’s
Commissions.  Buyer and Seller each hereby represent that,
except for the Brokers, there are no other brokers involved or that have a right
to proceeds in this transaction.  Seller shall be responsible for
payment of commissions to the Broker pursuant to a separate written agreement
executed by Seller.  Seller and Buyer each hereby agree to indemnify
and hold the other harmless from all loss, cost, damage or expense (including
reasonable attorneys' fees at both trial and appellate levels) incurred by the
other as a result of any claim arising out of the acts of the indemnifying party
(or others on its behalf) for a commission, finder's fee or similar compensation
made by any broker, finder or any party who claims to have dealt with such party
(except that Buyer shall have no obligations hereunder with respect to any claim
by Broker).  The representations, warranties and indemnity obligations
contained in this section shall survive the Closing or the earlier termination
of this Agreement.

     

    24.    Assignment.  Buyer,
without the consent of Seller, may assign its rights under this Agreement,
provided, however, that no such assignment shall relieve Buyer of any of its
obligations hereunder until Closing is complete and provided further that such
assignment will not frustrate, delay or otherwise have an adverse effect on the
completion of the Loan Assumption.  Without relieving Buyer of any
liability under the contractual nature of this Agreement, and without assigning
all or any portion of this Agreement, it is understood and agreed to by Seller
that Buyer intends to take title in the name of a wholly owned bankruptcy remote
special purpose entity.  Notwithstanding the foregoing and without
further consent by Seller, it is understood and agreed to by Buyer and Seller
that Buyer intends to assign its rights and obligations under this Agreement to
the American Realty Capital New York Recovery REIT, Inc. or a subsidiary
thereof; provided however, that no such assignment shall relieve Buyer of any of
its obligations hereunder until Closing is complete.  Any other
assignment by Buyer shall require Seller’s prior written consent which consent
shall not be unreasonably withheld.

     

    25.    Attorneys’
Fees.  In any action between Buyer and Seller as a result of
failure to perform or a default under this Agreement, the prevailing party shall
be entitled to recover from the other party, and the other party shall pay to
the prevailing party, the prevailing party’s attorneys’ fees and disbursements
and court costs incurred in such action.

     

    26.    Counterparts.  This
Agreement may be executed in one or more counterparts, all of which shall be
considered one and the same agreement, and shall become a binding agreement when
one or more counterparts have been signed by each of the parties and delivered
to the other party.  A facsimile or photostatic copy of an executed
counterpart or signature page to this Agreement shall be given the same effect
as the original.

     

    27.    Anti-Terrorism.  Neither
Buyer or Seller, nor any of their affiliates, are in violation of any
Anti-Terrorism Law (as hereinafter defined) or engages in or conspires to engage
in any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in any
Anti-Terrorism Law. “Anti-Terrorism Laws” shall mean any laws relating to
terrorism or money laundering, including: Executive Order No. 13224; the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has been, or
may hereafter be, renewed, extended, amended or replaced; the applicable laws
comprising or implementing the Bank Secrecy Act; and the applicable laws
administered by the United States Treasury Department’s Office of Foreign Asset
Control (as any of the foregoing may from time to time be amended, renewed,
extended, or replaced).

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

         

                   
28.    Loan
Assumption.

     

    (a)           Notwithstanding
anything contained in this Agreement to the contrary, Buyer shall have no
obligation to purchase the Property unless and until (and subject to any of
Buyer’s termination rights contained in this Agreement) Seller has secured from
the existing mortgagee of the Property (the “Lender”)
approval for an assumption of the loan secured by the Property (the “Loan
Assumption” and “Loan”
respectively) to be executed by Buyer at Closing, which shall have:

     

    (i)           an
original principal balance of not less than Fourteen Million Five Hundred
Thousand Dollars and No/00 ($14,500,000);

    

    (ii)           an
annual interest rate of not more than six and two tenths percent
(6.20%);

    

    (iii)           an
annual debt service of not more than One Million One Hundred Sixty Four Thousand
Nine Hundred Sixteen and No/00 ($1,164,916);

    

    (iv)           cash
escrow balances fully funded by Seller of not less than Five Hundred Thousand
Dollars and No/00 ($500,000);

    

    (v)           a
maturity date on or after November 1, 2012; and

    

    (vi)           no
requirement for personal recourse liability from any shareholder, owner, officer
or employee of Buyer.

     

    Seller
shall be responsible for any and all fees and expenses of Lender or any other
third party (other than Buyer or any assignee of Buyer permitted under this
Agreement) in connection with the Loan Assumption; provided, however Buyer shall
pay Four Thousand Dollars and No/00 ($4,000) to Lender in connection with the
Acceleration Fee.  Notwithstanding anything to the contrary contained
in this Agreement, if the Loan Assumption is not completed on or before the date
that is one hundred fifteen (115) days after the end of the Due Diligence
Period, Buyer shall have the right to terminate this Agreement and receive a
full refund of the Earnest Money and thereafter neither party shall have any further
rights, obligations or liabilities hereunder, except as otherwise expressly set
forth herein.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (b)           Buyer
and Seller shall use commercially reasonable efforts, including without
limitation, the furnishing of all commercially reasonable documents, executed
forms, instruments, and other materials requested by Lender, in a timely manner,
to obtain the consent of the Lender to:

     

    (i)           the
transfer of the Property to Buyer or a bankruptcy remote, special purpose entity
to be formed by Buyer to purchase the Property as permitted pursuant and subject
to the provisions of Section 24 (the
“Buyer
Entity”) the governance of which may involve an independent director(s)
or other person who is not employed by Buyer or an affiliate of
Buyer,

     

    (ii)           the
assumption by Buyer or the Buyer Entity of the Loan with no change or
modification in the terms of the Loan; and

     

    (iii)           a
release of Seller and/or its affiliates from all liabilities arising under the
Loan for periods after Closing, including, without limitation, any liability
under any guaranty or indemnity executed by Seller and/or its affiliates in
favor of Lender relating to the Loan; provided, however, that notwithstanding
anything in this Agreement to the contrary, Seller acknowledges that Buyer will
propose the Buyer Entity (which entity Buyer agrees shall be formed and
established to qualify as bankruptcy remote, special purpose entities in
compliance with the customary requirements for so-called “securitized loans”) to
the Lender to assume the Loan and Buyer will determine in its sole and absolute
discretion the entity it will offer to the Lender to provide guarantees of
non-recourse carve outs and any required environmental or other
indemnity.  If Lender consents to the assumption of the Loan in
accordance with the provisions of this Section, the Buyer Entity shall assume
and agree to pay and perform at Closing the Loan obligations that arise from and
after the Closing, in each case subject to the prorations and adjustments
provided for in this Agreement.

     

           
29.    No
Recording.  The parties hereto agree that neither this
Agreement nor any memorandum or notice hereof shall be recorded.  Any
recordation or attempted recordation by Buyer shall constitute a default by
Buyer.

     

    [SIGNATURES
APPEAR ON THE FOLLOWING PAGES]

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day
and year first set forth above.

     

    BUYER:

     

    AMERICAN
REALTY CAPITAL II, LLC

     

    
      
        	 	 	 	 	 
	

                By:

              	 
      	 	 	 
	
                

                  Name:
      

                

              	 
      	 	
                 

              	 
	
                

                  Title: 

                

              	 
      	 	
                 

              	 
	
                 

              	 	 	
                 

              	 

      

    

     

     

    [signature pages
continue]

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SELLER:

     

    URBAN
DEVELOPMENT PARTNERS (61), LLC

    
       

      
        
          	 	 	 	 	 
	

                  

                    By:

                  

                	 
      	 	 	 
	
                  

                    

                      Name: 

                    

                  

                	

                  Phillip
      R. Carter

                	 	
                   

                	 
	
                  

                    

                      Title:  

                    

                  

                	

                  Authorized
      Signatory

                	 	
                   

                	 
	
                   

                	 	 	
                   

                	 

        

      

       

    

     

    [signature pages
continue]

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    THE
UNDERSIGNED HEREBY ACKNOWLEDGES AND AGREES TO BE BOUND BY THE TERMS OF THIS
AGREEMENT RELATING TO TITLE INSURER AND THE DEPOSIT.

     

    ESCROW
AGENT:

    
      
         

        
          
            	 	 	 	 	 
	

                    By:

                  	 
      	 	 	 
	
                    

                      Name:
      

                    

                  	 
      	 	
                     

                  	 
	
                    

                      Title: 

                    

                  	 
      	 	
                     

                  	 
	
                     

                  	 	 	
                     

                  	 

          

        

         

      

      
 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBITS
AND SCHEDULES

     

    
      
        	
                Exhibit
      A

              	
                -

              	
                Real
      Property

              
	 	 	 
	
                Exhibit
      B

              	
                -

              	
                Form
      of Bargain and Sale Deed With Covenants

              
	 	 	 
	
                Exhibit
      C

              	
                -

              	
                Form
      of Assignment of Leases and Security Deposits

              
	 	 	 
	
                Exhibit
      D

              	
                -

              	
                [Intentionally
      Deleted]

              
	 	 	 
	
                Exhibit
      E

              	
                -

              	
                Form
      of Assignment of Contracts, Permits, Licenses and
    Warranties

              
	 	 	 
	
                Exhibit
      F-1

              	
                -

              	
                Form
      of Tenant Estoppel Certificate

              
	 	 	 
	
                Exhibit
      F-2

              	
                -

              	
                Form
      of Seller Estoppel

              
	 	 	 
	
                Exhibit
      G

              	
                -

              	
                Form
      of Tenant Notice

              
	 	 	 
	
                Exhibit
      H

              	
                -

              	
                Warranties

              
	 	 	 
	
                Exhibit
      I

              	
                -

              	
                Leases

              
	 	 	 
	
                Schedule
      11

              	
                -

              	
                Exceptions
      to Seller Representations

              
	 	 	 
	
                Schedule
      13

              	
                -

              	
                Exceptions
      to Conditions Precedent

              

      

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    LEGAL
DESCRIPTION OF PROPERTY

     

    

     

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

     

    EXHIBIT
B

     

    FORM
OF BARGAIN AND SALE DEED WITH COVENANTS AGAINST GRANTOR’S ACTS

    

     

    THIS
INDENTURE, made on the _____ day of ______________, 2010, by and between
___________________________________, a ___________________________ ("Grantor"),
and ________________________________________, a ______________, whose address is
________________________________ ("Grantee").

     

    WITNESSETH, that Grantor in
consideration of the sum of Ten Dollars ($10.00) and other good and valuable
consideration paid by the Grantee, the receipt and sufficiency of which is
hereby acknowledged by Grantor, does hereby grant and release and assign forever
unto Grantee, and the [heirs], successors and assigns of Grantee, those certain
plot, piece or parcel of land situate lying and being in the City of New York,
County of the New York, State of New York , known as and by the street address
306 East 61st Street,
New York, New York, as more particularly bounded and described in Exhibit A attached hereto and
made a part hereof (the “Land”).

     

    TOGETHER with all right, title
and interest of Grantor in and to any and all buildings and improvements located
on the Land (the “Improvements”);

     

    TOGETHER with all right, title
and interest, it any, of Grantor in and to any easements, rights of way,
privileges, benefits, appurtenances, hereiditments, strips, gaps and gores, and
any and all other rights, if any, thereon or in any way pertaining thereto,
including, without limitation, any land lying in the bed of
any  streets and roads abutting the above-described property to the
center lines thereof (the foregoing rights, together with the Land and the
Improvements being hereinafter referred to, collectively, as the “Premises”);

     

    TO HAVE AND TO HOLD the
Premises herein granted, or mentioned and intended so to be, unto Grantee, and
the successors and assigns of Grantee, forever.

     

    AND the Grantor covenants that
the Grantor has not done or suffered anything whereby the said premises have
been encumbered in any way whatever, except as aforesaid [need exhibit approved by
Buyer setting forth any encumbrances such as encroachments reflected on
survey].

     

    AND Grantor, in compliance
with Section 13 of the Lien Law, covenants that Grantor will receive the
consideration for this conveyance and will hold the right to receive such
consideration as a trust fund to be applied first for the purpose of paying the
cost of improvements and will apply the same first to the payment of the cost of
improvements before using any part of the total of the same or any other
purpose.

     

    [SIGNATURE
PAGE FOLLOWS]

    
      
         

      

      
        B-1

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, Grantor has duly executed this deed the day and year first
above written.

     

    
      
        	 	 
      

                GRANTOR:

              	 
	 	 	 
	 	
                URBAN
      DEVELOPMENT PARTNERS (61), LLC,

              
	 	
                a
      Connecticut limited liability company

              	 
	 	 	 	 
	 	

                By:
      

              	 
      	 
	 
      	Name:
      	  	 
	 
      	Title:
      	 
    	 

      

    

    
       

    

    
      
        	
                State
      of New York 

              	)	 	 
	 	)ss.:	 	 
	
                County
      of New York

              	)	 	 

      

    

     

    On the ___ day of _______ in the year
2010 before me, the undersigned personally appeared ______________________,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual whose name is subscribed to the within instrument and
acknowledged to me that he executed the same in his capacity, and that by his
signature on the instrument, the individual, or the person upon behalf of which
the individual acted, executed the instrument.

     

    
      
        	 	 	 	 
	
                Signature
      and Office of individual

              	 	 	 
	
                taking
      acknowledgment

              	 	 	 

      

    

     

    
      
         

      

      
        B-2

        
          

        

      

      
         

      

    

    Exhibit
“A”

     

    TO
BARGAIN AND SALE DEED

     

    (Add
legal description of Real Property)

     

    
      
         

      

      
        B-3

        
          

        

      

      
         

      

    

    BARGAIN
AND SALE DEED WITH

     

    COVENANT AGAINST GRANTOR’S
ACTS

     

     

     

     

     

     

    Urban
Development Partners (61), LLC

    

    

    TO

    

    [_______________]

    

    

    
      	
              Block:  ____

            	 	
              Lot:  ____

            	 
	 
      	 	 
      	 
	
              County:

            	 	
              New
      York

            	 
	
              Address: 

            	
               

            	
              306
      East 61st
      Street, New York, New York

            
	 	 	 	 
	 	 	RECORD AND RETURN
      TO:	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	

              Attention:
      

            	
               

            	 
	 	 	 	 

    

     

    
      
         

      

      
        B-4

        
          

        

      

      
         

      

    

    EXHIBIT
C

     

    FORM
OF ASSIGNMENT OF LEASES AND SECURITY DEPOSIT

     

    ______________________________
("Assignor"),
in consideration of the sum of Ten and No/100 Dollars ($10.00) in hand paid and
other good and valuable consideration, the receipt of which is hereby
acknowledged, hereby assigns, transfers, sets over and conveys to
______________________________ ("Assignee"),
all of Assignor's right, title and interest in and to those certain Leases
between Assignor and the tenants listed on Exhibit A attached hereto (the “Leases”),
including any and all security deposits thereunder.

     

    Subject
to the limitations set forth below, Assignor does hereby agree to defend,
indemnify and hold harmless Assignee from any liability, damages (excluding
speculative damages, consequential damages and lost profits), causes of action,
expenses and reasonable attorneys' fees incurred by Assignee by reason of the
failure of Assignor to have fulfilled, performed and discharged all of the
various commitments, obligations and liabilities of the lessor, or landlord
under and by virtue of the Leases prior to the date of this
Assignment.

     

    Subject
to the limitations set forth below, Assignee does hereby agree to defend,
indemnify and hold harmless Assignor from any liability, damages (excluding
speculative damages, consequential damages and lost profits), causes of action,
expenses and reasonable attorneys' fees incurred by Assignor by reason of the
failure of Assignee to have fulfilled, performed and discharged all of the
various commitments, obligations and liabilities of the lessor, or landlord
under and by virtue of the Leases after the date of this
Assignment.

     

    IN
WITNESS WHEREOF, Assignor has executed this Assignment this ______ day of
______________, 20__, which Assignment is effective this date.

     

    
      
        	 	ASSIGNOR:	 
	 	 	 	 
	 	 
      	 
	 	 	 	 
	
                 

              	
                By: 
      

              	  	 
	 	Name: 
      	   	 
	 	Title: 
      	 
    	 
	 	 	 	 

      

    

     

    
      
         

      

      
        C-1

        
          

        

      

      
         

      

    

    Exhibit
A

     

    TO
ASSIGNMENT OF LEASES AND SECURITY DEPOSIT

     

    (Add
description of Leases)

    
      
         

      

      
        C-2

        
          

        

      

      
         

      

    

    EXHIBIT
D

     

    [Intentionally
Deleted]

    
      
         

      

      
        D-1

        
          

        

      

      
         

      

    

    EXHIBIT
E

     

    FORM
OF ASSIGNMENT OF CONTRACTS,

    PERMITS,
LICENSES AND WARRANTIES

     

    THIS
ASSIGNMENT, made as of the ___ day of ________, 2006, by _________________, a
__________________________ (“Assignor”), to _____________________________, a
__________________________________________(“Assignee”).

     

    W I T N E
S S E T H:

     

    WHEREAS,
by Agreement of Purchase and Sale (the “Purchase
Agreement”) dated as of ________, 2006, between Assignor and Assignee,
Assignee has agreed to purchase from Assignor as of the date hereof, and
Assignor has agreed to sell to Assignee, that certain property located at
________________________ (the “Property”);
and

     

    WHEREAS,
Assignor desires to assign to Assignee as of the date hereof all of Assignor’s
right, title and interest in contracts, permits, trademarks, licenses and
warranties held by Assignor in connection with the Property, including without
limitation any and all guaranties of leases relating to the Property
(collectively, the “Contracts”).

     

    NOW
THEREFORE, in consideration of the premises and the mutual covenants herein
contained, the Assignor hereby assigns, sets over and transfers unto Assignee to
have and to hold from and after the date hereof all of the right, title and
interest of Assignor in, to and under the Contracts.  Assignor agrees
without additional consideration to execute and deliver to Assignee any and all
additional forms of assignment and other instruments and documents that may be
reasonably necessary or desirable to transfer or evidence the transfer to
Assignee of any of Assignor's right, title and interest to any of the
Contracts.

     

    Assignor
does hereby agree to defend, indemnify and hold harmless Assignee from any
liability, damages (excluding speculative damages, consequential damages and
lost profits), causes of action, expenses and reasonable attorneys' fees
incurred by Assignee by reason of the failure of Assignor to have fulfilled,
performed and discharged all of the various commitments, obligations and
liabilities of the Assignor under and by virtue of the Contracts prior to the
date of this Assignment.

     

    Assignee
does hereby agree to defend, indemnify and hold harmless Assignor from any
liability, damages (excluding speculative damages, consequential damages and
lost profits), causes of action, expenses and reasonable attorneys' fees
incurred by Assignor by reason of the failure of Assignee to have fulfilled,
performed and discharged all of the various commitments, obligations and
liabilities of the Assignee under and by virtue of the Contracts after the date
of this Assignment.

     

    This
Assignment shall be governed by the laws of the State of _____________,
applicable to agreements made and to be performed entirely within said
State.

     

    
      
        
        

      

      
        E-1

        
          

        

      

      
        
        

      

    

     

    IN
WITNESS WHEREOF, Assignor has duly executed this Assignment as of the date first
above written.

     

    
       

      
        
          	 	ASSIGNOR:	 
	 	 	 	 
	 	 	 	 
	 	a 	 	 
	 	 	 	 
	
                   

                	
                  By: 
      

                	  	 
	 	Name: 
      	  	 
	 	Title: 
      	 
    	 
	 	 	 

        

      

    

     

    
      
        
        

      

      
        E-2

        
          

        

      

      
        
        

      

    

    EXHIBIT
F-1

     

    FORM
OF TENANT ESTOPPEL

     

    The
undersigned hereby certifies to American Realty Capital, LLC (“Buyer”),
___________________ (“Lender”)
and their respective successors and assigns as follows:

     

    1.           The
undersigned is the tenant under that certain [Lease Agreement] dated as of
_________ __, ____, [as amended by [insert any modifications to Lease]
([collectively,] the “Lease”)
by and between _________________________ (“Landlord”)
and _________________________ (“Tenant”),
pursuant to which Tenant leases that real property located at
_________________________________________ (the “Premises”).

     

    2.           Except
as set forth above, the Lease has not been modified, changed, altered,
supplemented or amended in any respect, nor have any provisions thereof been
waived.

     

    3.           The
Lease is valid and in full force and effect on the date hereof. The Lease
represents the entire agreement between Landlord and Tenant with respect to the
Premises and the land on which the Premises are situated.

     

    4.           Tenant
is not entitled to, and has made no agreement with Landlord or its agents or
employees concerning, free rent, partial rent, rebate of rent payments, credit
or offset or reduction in rent, or any other type of rental concession
including, without limitation, lease support payments, lease buy-outs, or
assumption of any leasing or occupancy agreements of Tenant other than with
respect to condemnation or casualty provisions.

     

    5.           The
initial term of the Lease began on __________ __, _____ and expires on ________
__, 20__.  The Rent Commencement Date was __________ __,
____.  Tenant has accepted possession of the Premises and is open for
business.  Tenant has not sublet all or a portion of the Premises to
any sublessee and has not assigned, transferred or encumbered any of its rights
or interests under the Lease.

     

    6.           Tenant
has no outstanding options or rights to renew or extend the term of the
Lease.  Tenant has no outstanding expansion options, other options,
rights of first refusal or rights of first offer to purchase the Premises or any
part thereof and/or the land on which the Premises are situated, or rights of
first offer to lease with respect to all or any part of the
Premises.

     

    7.           The
[Base Annual Rent] payable under the Lease is $____________ ($_________
monthly).  Such [Base Annual Rent] payable under the Lease shall be
adjusted during the initial term of the Lease as follows: (a) from ___________,
20__ to and including ______________, 20__, the Base Annual Rent shall be
$_______ ($_______ monthly), (b) from ___________, 20___ to and including
____________, 20___ the Base Annual Rent shall be $________ ($________ monthly);
[and from __________, 20__ to and including __________, 20___ the fixed annual
minimum rent shall be $_________ ($__________ monthly)]. Such rent has been paid
through and including the month of ____________, 200_. Additional rent under the
Lease has been paid through and including the month of __________,
200_.   No such rent (excluding security deposits) has been paid
more than one (1) month in advance of its due date.

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

     

    8.           Tenant's
security deposit, if any, is $_________________ (if none, please state
“none”).

     

    9.           No
event has occurred which has not been cured and no condition exists that
constitutes, or that with the giving of notice or the lapse of time or both,
would constitute, a default by Tenant or, to the best knowledge of Tenant,
Landlord under the Lease. Tenant has no existing defenses or offsets against the
enforcement of the Lease by Landlord.

     

    10.           (a)           All
required contributions by Landlord to Tenant on account of Tenant's improvements
have been received by Tenant and all of Tenant's tenant improvements have been
completed in accordance with the terms of the Lease.

     

    (b)           Landlord
has satisfied all its obligations to Tenant arising out of or incurred in
connection with the construction of the tenant improvements on the Premises and
no off-set exists with respect to any rents or other sums payable or to become
payable by the Tenant under the Lease.

     

    11.           The
undersigned is duly authorized to execute this Certificate on behalf of
Tenant.

     

    Dated:
____________, 200_

     

    TENANT:

     

    ____________________,
a ________________

     

    
      
        
          	 	 	 	 	 
	
                  By:

                	 
      	 	
                   

                	 
	
                  Name:

                	 
      	 	
                   

                	 
	
                  Title:

                	 
      	 	
                   

                	 

        

      

    

    
       

    

     

    
      
        
        

      

      
        F-2

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
F-2

     

    FORM
OF SELLER ESTOPPEL

     

    _____________________,
2010

     

     

    ________________________________

    ________________________________

    ________________________________

     

                            Re:
_________________________

    

    Ladies
and Gentlemen:

    

    You or
your assigns intend to acquire fee title to the referenced building (the “Property”)
from the undersigned Seller. This Seller’s Certificate is being delivered in
connection with such acquisition and may be relied upon by you, any lender or
mortgagee making a loan to the addressee secured by the Property or secured by a
direct or indirect equity interest in the addressee, each of their respective
successors and assigns, including a purchaser of an interest in any such loan,
and any person claiming by or through any of them (each, a “Recipient”).  Accordingly,
Seller as of the date hereof certifies to each Recipient as
follows:

     

    1.           The
Lease has not been amended, modified, supplemented or extended, except for the
amendments listed above, if any, and, to the knowledge of Landlord, is in full
force and effect as of the date hereof.  To the knowledge of Landlord,
there are no other agreements, whether written or oral, between Landlord and
Tenant affecting the Premises or Tenant’s obligation to pay rentals under the
Lease.

     

    2.           The
term of the Lease commenced
on                                                                                                           .

     

    3.           The
term of the Lease expires
on                                                                                                .

     

    4.           Tenant
has paid to Landlord all rent and other sums due under the Lease through
__________________.

     

    5.           The
current monthly base or minimum rent payable under the Lease is ___________ and
the current estimated monthly payments on account of Tenant’s proportionate
share of operating or similar expenses is ____________.

     

    6.           Tenant
has paid to Landlord a security deposit of $ that Landlord continues to hold for
Tenant’s obligations under the Lease.

     

    
      
        
        

      

      
        F-1

        
          

        

      

      
        
        

      

    

     

    7.           To
the knowledge of Landlord, Tenant has no existing charge, lien, claim or right
against Landlord, as of the date hereof, to any free rent, rental concessions,
rental abatement or offset against rents or any other charges due or to become
due under the Lease, except as
follows:  _________________________________________________________.

     

    8.           To
the knowledge of Landlord, neither Landlord nor Tenant is in default in any
respect under any terms of the Lease, and no state of facts exist which, with
the passage of time or the giving of notice, or both, would constitute a default
under the Lease by either Landlord or Tenant.

     

    9.           Seller’s
liability under this Seller’s Certificate shall be subject to the provisions of
that certain Purchase and Sale Agreement and Escrow Instructions dated
____________, 2010 (the “Purchase
Agreement”), between Seller, as Seller, and ________________, as Buyer
and shall extend for a period of the earlier of (i) six (6) years and (ii) the
stated expiration of the Lease.

     

    Dated:
____________, 200_

     

    SELLER:

     

    ____________________,
a ________________

    
       

      
        
          
            	 	 	 	 	 
	
                    By:

                  	 
      	 	
                     

                  	 
	
                    Name:

                  	 
      	 	
                     

                  	 
	
                    Title:

                  	 
      	 	
                     

                  	 

          

        

      

      

        
          
             

          

          
            F-2

            
              

            

          

          
             

          

        

    

    EXHIBIT
G

     

    FORM
OF NOTICE TO TENANT

     

    TO:           [Tenant]

     

    Re:           Notice
of Change of Ownership of ______________________________

     

    Ladies
and Gentlemen:

     

    YOU ARE
HEREBY NOTIFIED AS FOLLOWS:

     

    That as
of the date hereof, the undersigned has transferred, sold, assigned, and
conveyed all of its right, title and interest in and to the above-described
property, (the “Property”)
to [INSERT NAME OF BUYER] (the “New
Owner”) and assigned to New Owner, all of the undersigned’s right, title
and interest under that certain Lease, dated _________, between ________as
tenant and ____________as landlord (the “Lease”),
together with any security deposits or letters of credit held
thereunder.

     

    Accordingly,
New Owner is the landlord under the Lease and future notices and correspondence
with respect to your leased premises at the Property should be made to the New
Owner at the following address:

    
      
        	
                 

              	 	 	
                 
      

              	 
	
                 

              	 	 	
                 
      

              	 
	
                 

              	 	 	
                 
      

              	 

      

    

     

    You will
receive a separate notification from New Owner regarding the new address for the
payment of rent.  In addition, to the extent required by the Lease,
please amend all insurance policies you are required to maintain pursuant to the
Lease to name New Owner as an additional insured thereunder and promptly provide
New Owner with evidence thereof.

     

    
      
        	 	Very
      truly yours,	 
	 	[PRIOR
      LANDLORD)	 
	 	 	 	 
	
                 

              	
                By:
      

              	 
      	 
	 	Name:
      	  	 
	 	Title:	  	 
	 	 	 	 

      

    

     

    
      
         

      

      
        G-1

        
          

        

      

      
         

      

    

    EXHIBIT
H

     

    LIST
OF WARRANTIES

    

    None.

    
      
         

      

      
        H-1

        
          

        

      

      
         

      

    

    EXHIBIT
I

     

    LEASES

     

    
      
         

      

      
        I-1

        
          

        

      

      
         

      

    

    SCHEDULE
11

     

    EXCEPTIONS TO SELLER’S
REPS

     

    

    

    
      11(a):
Pending Litigation

    

    

    
      Para Luna
v Urban Partners et. Al.- Tenant employee injured hand.  Case settled
in December.

    

     

    11(c):
Contracts

    

    
      Donnolly
Mechanical Air Conditioning Contract.

    

    
      Management
Agreement with CBRE.

    

    
      
         

      

      
        Schedule 11-1

        
          

        

      

      
         

      

    

    SCHEDULE
13

     

    EXCEPTIONS TO CONDITIONS
PRECEDENT

     

     

    Bunny
Williams sublet to Nials Smith

    

    Jackson
Arron merged into Luca Luca

    

    Liz
O’Brien Inc. assigned to Liz O’Brien LLC

     

    
      
         

      

      
        Schedule 13-1

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