Document:

Unassociated Document

     

    
      FORM OF
EMPLOYEE AND DIRECTOR

      

      INCENTIVE
RESTRICTED SHARE PLAN

      

      OF

      

      AMERICAN
REALTY CAPITAL NEW YORK RECOVERY REIT, INC.

      

      
        SECTION 1.  PURPOSES
OF THE PLAN AND DEFINITIONS

      

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

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

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

      

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

      

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

      

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

      

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

      

      “Director
Shares” means Shares issued under Section
6.

      

      “Effective
Date” has the meaning given it in Section
15.

      

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

      

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

      

      “Fair Market
Value” means with respect to Shares:

      

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

      

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

      

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

      

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

      

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

       

      
        
          
          

        

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

      

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

      

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

      

      “Retainer”
has the meaning given it in Section
6.3.

      

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

      

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

      

      “Section
409A
of the Code”

      

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

      

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

      

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

      

      
        SECTION 2.  ELIGIBLE
PERSONS

      

      

      Every
person who, at or as of the Grant Date, is

      

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

      

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

      

      (c)  a
Director of the Company;

      

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

      

      (e)  someone
whom the Board designates as eligible for an Award because the
person:

      

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

      

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

      

      shall be
eligible to receive Awards hereunder.

       

      
        
          
          

        

        
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      Directors
of the Company who are not full-time employees are only eligible to receive
Director Shares under Section
6.

      

      
        SECTION 3.  SHARES
SUBJECT TO THIS PLAN

      

      

      The total
number of Shares that may be issued under Awards is a number of Shares equal to
5.0% of the Company’s outstanding Shares on a fully diluted
basis.  The number of Shares reserved for issuance under this Plan is
subject to adjustment in accordance with the provisions for adjustment in Section
5.1.  If any Shares awarded under this Plan are forfeited for
any reason, the number of forfeited Shares shall again be available for purposes
of granting Awards under this Plan.

      

      
        SECTION 4.  ADMINISTRATION

      

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

      (ii)  the
effect of Employment Termination on an Award;

      

      (iii)  the
effect of approved leaves of absence;

      

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

      

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

      

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

      

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

       

      
        
          
          

        

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

      

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

      

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

      

      
        SECTION 5.  CERTAIN
TERMS AND CONDITIONS OF AWARDS

      

      

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

      

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

      

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

      

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

      

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

       

      
        
          
          

        

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

      

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

      

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

      

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

      

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

      

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

      

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

      

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

      

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

       

      
        
          
          

        

        
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        SECTION 6.  DIRECTOR
SHARES

      

       

      
        6.1 Automatic
Grant.  Non-Employee Directors shall receive 3,000 Restricted Shares
on the date of each annual stockholders’ meeting.

        

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

      

       

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

      

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

      

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

      

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

      

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

      

      P = the
Fair Market Value.

      

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

      

      
        SECTION 7.  SECURITIES
LAWS

      

      

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

       

      
        
          
          

        

        
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        SECTION 8.  EMPLOYMENT
OR OTHER RELATIONSHIP

      

      

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

      

      
        SECTION 9.  AMENDMENT,
SUSPENSION AND TERMINATION OF THIS PLAN

      

      

      The Board
may at any time amend, suspend or discontinue this Plan provided that such
amendment, suspension or discontinuance meets the requirements of Applicable
Laws, including without limitation, the requirements for stockholder
approval.  Notwithstanding the above, an amendment, alteration,
suspension or discontinuation shall not be made if it would impair the rights of
any Participant under any Award previously granted, without the Participant’s
consent, except to conform this Plan and Awards granted to the requirements of
Applicable Laws.  The provisions of this Plan relating to Awards for
Non-Employee Directors may not be amended more than once each six
months.  Notwithstanding any provision of the Plan to the contrary, in
the event that the Board determines that any Award may be subject to
Section 409A of the Code, the Board may adopt such amendment to the Plan
and the applicable Award Agreement or adopt other policies and procedures
(including amendments, policies and procedures with retroactive effect), or take
any other actions that the Board determines are necessary or appropriate,
without the consent of the Participant, to (1) exempt the Award from
Section 409A of the Code and/or preserve the intended tax treatment of the
benefits provided with respect to the Award or (2) comply with the
requirements of Section 409A of the Code.

      

      
        SECTION 10.  LIABILITY
AND INDEMNIFICATION OF THE BOARD

      

      

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

       

      
        
          
          

        

        
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        SECTION 11.  SEVERABILITY

      

      

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

      

      
        SECTION 12.  SECTION
409A OF THE CODE

      

      

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

      

      
        SECTION 13.  WITHHOLDING

      

      

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

      

      
        SECTION 14.  GOVERNING
LAW

      

      

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

      

      
        SECTION 15.  EFFECTIVE
DATE AND PROCEDURAL HISTORY

      

      

      This Plan
was originally approved by the Company’s Board on
                ,
2010.  It was approved in that form by the holders of the Company’s
voting Shares on
                ,
2010 (the “Effective
Date”).

       

      
        
          
          

        

        
          9Unassociated Document

     

    
      

      

      
        
 

      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 the 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 director,
officer, advisor, consultant or other employee of the Company's affiliate,
employee of an affiliate or a joint venture affiliate of the
Company.

        
           

        

        
          3.  Effective
Date/Expiration of Plan.

        

        

        The Plan
will
become effective
on                       ,
2010, subject to the receipt of shareholder 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, stock dividend,
subdivision, recapitalization or combination of Shares or other changes in the
Company’s Common Stock, (x) the Purchase Price (as defined herein) 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 proportionately 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
paragraph, 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 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 of 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 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 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 of 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.  Options
shall not be issued hereunder except on the same terms as such Options are sold
to the general public 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,
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
director, officer, advisor, consultant or other employee of the Company,
affiliate, employee of an affiliate or a joint venture affiliate of the
Company 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
directors, officers, advisors, consultants and other personnel of the Company,
the Advisor, the Property Manager and affiliates, as well as personnel of the
Advisor, the Property Manager and affiliates, and any joint venture affiliates
of the Company 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 above 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).

         

        
          
            
            

          

          
            13

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