Document:

Exhibit

EXHIBIT 10.1
EXECUTION VERSION

PARTNERSHIP AGREEMENT  
OF  
RXR 11 JANE VENTURE JV 
(A Delaware partnership) 
This PARTNERSHIP AGREEMENT (as amended, restated or otherwise modified from time to time, this “Agreement”) of RXR 11 Jane Venture JV (the “Partnership”) is made and entered into as of August 1, 2017 by and between 1285 Investor NT-NSR, LLC, a Delaware limited liability company (the “NTR Partner”), and RXR 11 Jane Vehicle LP, a Delaware limited partnership (the “RXR Partner” or the “Designated Partner”) (each a “Partner”, and together, the “Partners”).  This Agreement shall constitute the “partnership agreement” (as defined in the Act) of the Partnership. 
RECITALS
WHEREAS, the Partnership was formed as a partnership under and pursuant to the provisions of the Delaware Revised Uniform Partnership Act (as may be amended from time to time, the “Act”) by the filing of a Statement of Partnership Existence with the Secretary of State of the State of Delaware on August 1, 2017 pursuant to Section 15-303 of the Act (as may be amended or restated from time to time hereafter, the “Statement of Partnership Existence”);
WHEREAS, the Partnership is the owner of one hundred percent (100%) of the Common Units of RXR 11 Jane REIT LLC, a Delaware limited liability company (the “REIT”);
WHEREAS, the REIT is the sole member of RXR 11 Jane Mezz Lender LLC, a Delaware limited liability company (the “Mezzanine Lender”);
WHEREAS, the Mezzanine Lender made a mezzanine loan (the “Mezz Loan”) in the original principal amount of Twenty Million Dollars ($20,000,000) as of the date hereof to JCM Jane Street Mezz LLC, a Delaware limited liability company (“Borrower”), which Mezz Loan is secured by that certain property located at 11 Jane Street, New York, New York, pursuant to that certain Mezzanine Loan Agreement (as the same may be amended, restated, modified or supplemented from time to time, the “Mezz Agreement”), dated as of the date hereof, between Borrower and the Mezzanine Lender;
WHEREAS, in order to secure the Mezz Loan under the Mezz Agreement, Borrower executed and delivered a Mezzanine Loan Promissory Note in favor of the Mezzanine Lender in the aggregate principal amount equal to Twenty Million Dollars ($20,000,000) (as the same may be amended, restated, modified or supplemented from time to time, the “Mezz Note”, and together with the Mezz Agreement and all other agreements and documents (and any amendments and modifications thereto) in respect of the Mezz Loan, the “Mezz Loan Documents”);
WHEREAS, as of the date hereof, the Mezz Loan and the Mezz Loan Documents are one hundred percent (100%) held by the Mezzanine Lender;

WHEREAS, the parties hereto desire to enter into this Agreement and to operate the Partnership in the manner set forth herein.
NOW, THEREFORE, the parties hereto hereby agree as follows:
1.    Formation.  The Partners hereby agree to form and maintain a Partnership pursuant to the Act and this Agreement.  The Designated Partner shall have the authority (i) to execute, file and record any amendments to, or restatements of, the Statement of Partnership Existence, any fictitious name certificates and/or other documents to comply with the laws of the State of Delaware, and any other jurisdiction in which the Partnership shall carry on its business and (ii) to designate and authorize any third party who need not be a Partner of the Partnership to execute, file and record any such amendments, restatements, certificates and/or other documents.  The Designated Partner shall promptly deliver copies of any such amendments, restatements, certificates and/or other documents to the NTR Partner. 
2.    Name.  The name of the Partnership is “RXR 11 JANE VENTURE JV”.  
3.    Purposes of the Partnership.  The purposes and powers of the Partnership shall be to (i) through the REIT’s ownership in the Mezzanine Lender, directly or indirectly hold, own, sell, manage and otherwise deal with the Mezz Loan, the Mezz Loan Documents and the Collateral (as defined in the Mezz Agreement), and (ii) do such other acts as the Partners may deem necessary or advisable in connection with the foregoing. 
4.    Partners.  Unless and until there is a removal of the Designated Partner pursuant to Section 6, the Designated Partner of the Partnership shall be the RXR Partner, whose address is 625 RXR Plaza, Uniondale, NY 11556, and the other Partner of the Partnership shall be the NTR Partner, whose address is 399 Park Avenue, 18th Floor, New York, NY 10022.  
5.    Admission of Additional Partners.  Additional partners of the Partnership may only be admitted if the admission of any such proposed additional partner is approved in writing, prior to such admission, by both Partners. 
6.    Removal of the Designated Partner.  (a) The NTR Partner shall have the right to remove the RXR Partner as the Designated Partner and appoint itself or its nominee or designee as the Designated Partner following a commercially reasonable determination by the NTR Partner made in good faith that any of the following events (each, a "DP Removal Event") has occurred: 
(i)    Fraudulent conduct by the RXR Partner in connection with the performance of its duties as the Designated Partner of the Partnership; 
(ii)    Intentional misconduct by the RXR Partner in connection with the performance of its duties as the Designated Partner of the Partnership; provided, that, such intentional misconduct may be cured if, within thirty (30) days after being notified in writing of such event, the Designated Partner makes full restitution to the Partnership of all damages caused by such intentional misconduct and promptly takes all appropriate actions necessary to remediate the situation and protect the interests of the Partnership; 

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(iii)    Gross negligence by the RXR Partner in connection with the performance of its duties as the Designated Partner of the Partnership that shall have a material adverse effect on the Partnership; provided, that, such gross negligence may be cured if, within thirty (30) days after being notified in writing of such event, the Designated Partner makes full restitution to the Partnership of all damages caused by such gross negligence and promptly takes all appropriate actions necessary to remediate the situation and protect the interests of the Partnership; or
(iv)    Intentional material breach of this Agreement by the RXR Partner in connection with performance of its duties as the Designated Partner of the Partnership, and the failure to cure such breach thirty (30) days following receipt of notice of such breach.
(b)    Reserved.    
(c)    In the event that a DP Removal Event occurs and the RXR Partner is replaced as Designated Partner pursuant to Section 6(a), (i) the RXR Partner shall be entitled to receive all distributions that otherwise would have been distributable to it pursuant to this Agreement as if it had not been removed as the Designated Partner of the Partnership, (ii) neither the RXR Partner nor its successors and/or assigns shall have any further consent and/or approval rights under this Agreement from and after such DP Removal Event, and (iii) the Indemnitees (as defined below) shall remain entitled to exculpation and indemnification from the Partnership pursuant to Section 22. The RXR Partner shall have no liability to the Partnership in its capacity as the Designated Partner in respect of any matter arising after its removal as the Designated Partner other than any liability it may have hereunder as a limited partner or for actions taken as the Designated Partner for which the Designated Partner is not entitled to indemnification hereunder.  
7.    Transfers; Right of First Offer.  
(a)    Except as otherwise permitted by this Section 7, no Partner may sell, transfer, assign and/or encumber (each a "Transfer"), directly or indirectly, all or a portion of its interest in the Partnership, without the prior written consent of the other Partner.  
(i)    Each Partner shall have the right, without the prior written consent of the other Partner, to directly Transfer all or any portion of its interest in the Partnership, so long as (A) such Transfer is in accordance with all applicable laws, (B) such Transfer is in accordance with, and does not cause the Partnership to breach, the terms and provisions of the Intercreditor Agreement and the Mezz Loan Documents, (C) the transferee is not a Prohibited Person, and (D) as a condition to consummation of such Transfer, each Partner complies with the terms of Section 7(b), (c) and (d) below.  
(ii)    Indirect Transfers of the interest in each Partner shall be permitted so long as (A) such Transfer is in accordance with all applicable laws, (B) such Transfer is in accordance with, and does not cause the Partnership to breach, the terms and provisions of the Intercreditor Agreement and the Mezz Loan Documents, (C) the transferee is not a Prohibited Person, and (D) after such Transfer of (1) direct or indirect interests in the RXR Partner, (x) Scott Rechler, or (y) both Jason Barnett and Michael Maturo, individually or jointly, directly or indirectly controls 

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the RXR Partner or (2) after such Transfer of (1) direct or indirect interests in the NTR Partner, the NTR (or its successors whether by way of merger, business combination, sale of assets, reincorporation, consolidation, recapitalization, liquidation, amalgamation or similar transaction or otherwise), individually or jointly, directly or indirectly controls the NTR Partner.  
(iii)    Subject to Section 15(b) and this Section 7, any transferee permitted under this Section 7 shall be admitted into the Partnership as a substituted partner upon the transferee’s execution and delivery of an instrument signifying its agreement to be bound by the terms and conditions of this Agreement, as if it were the transferor partner hereunder. 
(iv)    Upon consummation of any Transfer by RXR Partner (other than an indirect Transfer permitted pursuant to Section 7(a)(ii)) (A) if RXR Partner is the Designated Partner as of the date of such Transfer, a DP Removal Event shall be deemed to have occurred and the NTR Partner shall automatically upon consummation of such Transfer and without any notice or other action on the part of the NTR Partner, become the Designated Partner of the Partnership, and (B) neither RXR Partner nor such transferee nor their respective successors and/or assigns shall have any consent and/or approval rights under this Agreement from and after the date of such Transfer.   
(b)    Right of First Offer - Process. If at any time a Partner desires to Transfer all or any portion of its ownership interests in the Partnership (other than as permitted by Section 7(a)(ii)), such Partner (the “Selling Partner”) shall first deliver notice (a “ROFO Notice”) to the other Partner (together with any of its designees (so long as each such designee is an Affiliate of such other Partner) the “Receiving Partner”), which ROFO Notice shall set forth all of the material terms of the proposed transfer (including the identification of the ownership interests to be transferred (the “ROFO Interests”)), the price payable in cash (which price shall be payable only in cash) at which the Selling Partner is willing to sell such ROFO Interests (the “ROFO Price”) and any other material economic, business or other terms relevant to such proposed transfer. 
(c)    Exercise of ROFO. Upon receipt of the ROFO Notice, the Receiving Partner shall have the right to purchase all, but not less than all, of the ROFO Interests proposed to be so transferred by the Selling Partner on the terms set forth in the ROFO Notice (the “ROFO Right”), which right may only be exercised with respect to all of the ROFO Interests being offered pursuant to the ROFO Notice, exercisable by: (a) delivering notice thereof to the Selling Partner (the “ROFO Election Notice”) within thirty (30) days after receipt of the ROFO Notice; and (b) simultaneously depositing with a nationally recognized title insurance company, pursuant to a customary and reasonable escrow agreement, an amount equal to five percent (5%) of the full amount of the ROFO Price (the “ROFO Deposit”) (which ROFO Deposit, together with accrued interest, if any, shall be credited against the ROFO Price if the purchase closes).  If the Receiving Partner validly and timely delivers a ROFO Election Notice and deposits the ROFO Deposit, the closing of the purchase of such ROFO Interests (the “ROFO Closing”) shall be on a date which is not more than thirty (30) days after the delivery of the ROFO Election Notice to the Selling Partner.  At the ROFO Closing, the following transactions shall occur: 

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(i)    the Receiving Partner shall pay or cause to be paid (or tender) to the Selling Partner the ROFO Price (minus the ROFO Deposit, together with any interest accrued thereon, and as adjusted by the credits and apportionments herein set forth) for the ROFO Interest being purchased;
(ii)    the Selling Partner shall, unless otherwise provided in the ROFO Notice, cause all filing fees, if any, due and payable in connection with the sale and purchase of the ROFO Interest to be paid and furnish the Receiving Partner with satisfactory proof of such payment; and if the Selling Partner fails to cause all such filing fees to be paid, the Receiving Partner may cause such filing fees to be paid and deduct the amount of such filing fees from the ROFO Price; and
(iii)    upon receipt (or tender) of the ROFO Price, the ROFO Interests of the Selling Partner shall be deemed transferred and the Selling Partner shall convey and assign by a duly executed instrument of assignment to the Receiving Partner the ROFO Interests of the Selling Partner, free and clear of all liens, claims and encumbrances (other than any lien, claim, or encumbrance that is either expressly permitted by the Receiving Partner, in favor of any third party lender that has made a loan to the Partnership, arising by virtue of this Agreement, or arising by virtue of applicable federal and/or state securities laws), which instrument shall contain surviving representations concerning due organization and authority of the Selling Partner and shall contain a provision indemnifying and holding Receiving Partner harmless from any loss, liability, cost or expense (including reasonable attorney fees) it may incur by reason of any breach of such representations.
(d)    Sale to Third Party; Defaults. If the Receiving Partner fails to timely and validly deliver the ROFO Election Notice or pay the ROFO Deposit pursuant to Section 7(c), the Receiving Partner shall have been deemed to have waived the ROFO Right with respect to the ROFO Interests being offered under the applicable ROFO Notice, and any portion of the ownership interests proposed to be sold in such ROFO Notice may be sold by the Selling Partner to any transferee that is not a Prohibited Person at a price equal to or greater than ninety-seven  percent (97%) of the ROFO Price and otherwise on the same terms as those offered to the Receiving Partner in the ROFO Notice.  If the Receiving Partner shall have exercised the ROFO Right with respect to a given ROFO Notice and shall have then defaulted in consummating the transaction, any portion of the ROFO Interests offered in such ROFO Notice may be sold by the Selling Partner to any transferee that is not a Prohibited Person at a price equal to or greater than ninety-seven (97%) of the ROFO Price and otherwise on the same terms as those offered to the Receiving Partner in the ROFO Notice, at any time subsequent to such failure by the Receiving Partner, and the Selling Partner may, as its exclusive remedy, retain the ROFO Deposit paid with respect to such ROFO Notice as liquidated damages, and not as a penalty.  If the Selling Partner wrongfully fails or refuses to close under the provisions in this Section 7, the Receiving Partner may sue for damages or specific performance (together with enforcement costs).
(e)    A “Prohibited Person” means any Person (i) currently identified on the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Assets Control, Department of the Treasury (“OFAC”) or on any other similar list maintained by OFAC pursuant to any authorizing statute, executive order or regulation, or (ii) with whom a citizen of the 

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United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of United States law, regulation, or Executive Order of the President of the United States.
8.    Powers.  (a) Subject to Section 8(b), the powers of the Partnership shall be exercised by or under the authority of, and the business and day-to-day affairs of the Partnership shall be managed by, the Designated Partner.  
(b)    Notwithstanding Section 8(a), the Designated Partner shall provide written notice to the NTR Partner prior to taking any of the following actions (each, a “Major Decision”) on behalf of the Partnership or the Mezzanine Lender, and shall not take any such actions over any written objection of the NTR Partner: 
(i)    executing any mortgage, security, bond or pledge of assets on behalf of the Partnership or its direct or indirect subsidiaries;
(ii)    transferring  or pledging any debts due to the Partnership or its direct or indirect subsidiaries,  or releasing any  such  debts  except  on full  payment  in accordance  with  the terms thereof;
(iii)    doing  any  act  on  behalf  of  the  Partnership  or  its  direct or indirect subsidiaries which would materially impair the operation of the business of the Partnership or its direct or indirect subsidiaries, taken as a whole, as contemplated hereunder;
(iv)    entering  into,  on  behalf  of  the  Partnership or its direct or indirect subsidiaries,  any  contract,  agreement, arrangement or payment to or with a Partner or Affiliate of a Partner;
(v)    commencing litigation on behalf of the Partnership or its direct or indirect subsidiaries;
(vi)    compromising   any  claim  due  to  the  Partnership or its direct or indirect subsidiaries or  submitting   to arbitration any dispute or controversy involving the Partnership or its direct or indirect subsidiaries to the extent  such  compromise  or  submission  could  adversely  impact  the potential liability of any Partner;
(vii)    transferring or hypothecating a Partner’s interest in the Partnership, other than as expressly permitted by Section 7 or transferring or hypothecating the Partnership’s interest in any direct or indirect subsidiary of the Partnership;
(viii)    selling, transferring, pledging or encumbering all or any portion of the assets of the Partnership or its direct or indirect subsidiaries;
(ix)    making any tax election, decision or allocation that would disproportionately (compared to the Designated Partner) and adversely affect the NTR Partner;

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(x)    the taking of any action or decision other than in connection with the day to day affairs of the Partnership or its direct or indirect subsidiaries; or
(xi)    the making of any material decision with respect to the operation of the Partnership, its direct or indirect subsidiaries, the Mezz Loan, the Mezz Loan Documents or the Intercreditor Agreement, including engaging and replacing any servicer for the Mezz Loan and modifying any material terms of any servicing arrangement (for the avoidance of doubt, excluding decisions relating to the day-to-day administration and servicing of the Mezz Loan).
Notwithstanding the foregoing, the Partners agree that routine construction and loan administration related consents and decisions available to the Mezzanine Lender under the Mezz Agreement (e.g., major trade contracts, change orders, etc.) shall not constitute Major Decisions so long as they do not materially affect the scope or nature of the Project as a residential condominium building; it being agreed, for the avoidance of doubt, that any decision of the Mezzanine Lender to pay or advance any sum of money under the Mezzanine Loan Agreement (other than sums of money for which Borrower is required to reimburse the Mezzanine Lender in an amount not exceed $5,000 outstanding at any one time) shall constitute a Major Decision.  If the Partners fail to reach agreement on a Major Decision or any other matter hereunder, then, the Partners shall be deemed to have elected not to take the action for which the approval of the NTR Partner is requested hereunder; provided, that, if the NTR Partner fails to approve or disapprove a matter within five (5) business days after the Designated Partner delivers a written request for consent to the NTR Partner, the Designated Partner may deliver a second written request for consent to such matter, and if the NTR Partner fails to approve or disapprove such matter within five (5) business days after the Designated Partner delivers such second written request, the NTR Partner shall be deemed to have approved such matter. 
(c)    Notwithstanding Section 8(a) or Section 8(b), upon the occurrence of an Event of Default (as defined in the Mezz Agreement) under the Mezz Loan Documents that remains outstanding for a period of 90 days, Designated Partner shall cause the Mezzanine Lender to, on behalf of the Partnership, foreclose on the Collateral (as defined in the Mezz Agreement) in accordance with the terms of the Mezz Loan Documents and the Intercreditor Agreement, unless otherwise instructed by all of the Partners in writing. During any period of time during which an Event of Default is continuing, the Partners shall cooperate in good faith to determine whether and to what extent the Mezzanine Lender will exercise its rights and remedies under the Mezz Loan Documents. 
9.    Management. 
(a)    Subject to Section 8(b), management of the Partnership shall be vested in the Designated Partner. The Designated Partner shall have the power to do any and all acts necessary, convenient or incidental to or for the furtherance of the purposes described herein, including all powers, statutory or otherwise, possessed by partners of a partnership under the laws of the State of Delaware.  Subject to Section 3 and Section 8(b), the Designated Partner shall have the authority to bind the Partnership, and the execution of any agreement or document by the Designated Partner on behalf of the Partnership shall be conclusive evidence of the Designated Partner’s authorization to take such action. 

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(b)    Subject to Section 8(b), the Designated Partner shall have the power and authority to designate “Authorized Persons” of the Partnership, who, at the Designated Partner’s direction, shall have each the power and authority, acting singly, to execute all agreements and documents on behalf of the Partnership and to singularly bind the Partnership.  The execution of any such agreement or document shall be conclusive evidence of the Designated Partner’s authorization to take such action.  Authorized Persons shall retain the powers described in this Section 9(b) until such time as they resign or are removed as Authorized Persons by the Designated Partner.  The initial Authorized Persons of the Partnership designated by the Designated Partner are listed on Annex B hereto.
10.    Limited Liability.  Except as otherwise expressly provided by the Act, the debts, obligations and liabilities of the Partnership, whether arising in contract, tort or otherwise, shall be the debts, obligations and liabilities solely of the Partnership, and the Designated Partner and the NTR Partner shall not be obligated personally for any such debt, obligation or liability of the Partnership solely by reason of being a Partner of the Partnership.  To the fullest extent permitted by law, the failure of the Partnership to observe any formalities or requirements relating to the exercise of its powers or management of its business or affairs under the Act or this Agreement shall not be grounds for imposing personal liability on the Designated Partner or the NTR Partner for liabilities of the Partnership.
11.    Capital Contributions; Percentage Interest.  The initial amount that each Partner has contributed to the Partnership, in the form of cash, property or services rendered, and the percentage interest of each Partner in the Partnership (“Percentage Interest”) as of the date hereof is set forth on Annex A, attached hereto.  If any Partner makes an additional contribution to the Partnership, the Designated Partner may amend Annex A to reflect the revised Percentage Interest of each Partner, and otherwise record such additional contribution on the books of account and records of the Partnership.  
12.    Additional Contributions.  The Partners shall only contribute additional capital contributions at such times and in such amounts as is agreed upon by both Partners.
13.    Distributions.  Distributions shall be made to the Partners, pro rata in accordance with their Percentage Interests, at such times and in such amounts as determined by the Designated Partner, but not less frequently than monthly.
14.    Capital Accounts.  (a) The Partnership shall maintain a capital account (“Capital Account”) in respect of each Partner in accordance with Section 1.704-1(b)(2)(iv) of the Regulations, which capital account initially shall consist of its capital contribution to the Partnership as described in Section 11.
(b)    The Capital Account of each Partner shall be credited with (i) the amount of cash or other property (net of liabilities assumed by the Partnership and liabilities to which such contributed property is subject) contributed, or deemed to be contributed, by such Partner to the Partnership in accordance with this Agreement and (ii) the amount of Profit and other items of income and gain allocated to such Partner pursuant to Section 16.

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(c)    The Capital Account of each Partner shall be reduced by (i) the amount of Loss and other items of deduction or loss allocated to such Partner pursuant to Section 16, (ii) the amount of cash distributed to such Partner pursuant to Section 16; and (iii) the fair market value of property other than cash distributed to such Partner (net of liabilities assumed by such Partner and liabilities to which such distributed property is subject).
(d)    No Partner shall be required to restore any negative balance in its Capital Account except as otherwise provided herein.  In the event that all or a portion of a partnership interest in the Partnership is transferred in accordance with the terms of this Agreement, the transferee shall succeed to the Capital Account of the transferor to the extent it relates to the transferred partnership interest.
15.    Withholding.  (a) The Designated Partner may withhold and pay over to the Internal Revenue Service (or any other relevant taxing authority) such amounts as the Partnership is required to withhold or otherwise pay, pursuant to the Code or any other applicable law, on account of a Partner's allocable share of the Partnership's items of gross income, income, gain, or other attributes for tax purposes.
(b)    For purposes of this Agreement, any taxes so withheld or any taxes paid over by the Partnership or otherwise incurred directly or indirectly (including under Section 6225 of the Code, as amended by the Budget Act) with respect to a Partner's allocable share of the Partnership’s gross income, income, gain or other attributes for tax purposes, or amounts which are otherwise properly allocable to a Partner, shall be deemed to be a distribution or payment to such Partner, reducing the amount otherwise distributable to such Partner pursuant to this Agreement and reducing the Capital Account of such Partner.  If the Partnership or the Designated Partner itself pays or incurs any tax (including penalties or interest) or similar charge directly or indirectly in respect of any Partner, including under Section 6225 of the Code, as amended by the Budget Act, or pays or incurs any amount (including any tax, penalties or interest) in respect of any failure to pay or withhold any tax or similar charge in respect of any Partner as required by applicable law directly or indirectly that in either case is not withheld from distribution to such Partner, such Partner shall, on demand, reimburse the Partnership for such amounts plus interest thereon (accruing from the date such payment was made by the person entitled to reimbursement) at the rate of fifteen percent (15%) per annum, compounded quarterly on the first day of each calendar quarter, from and after the date on which the Partnership has given notice to such Partner.  Such reimbursement shall not constitute a capital contribution.  In addition to all other rights and remedies of the Designated Partner or the Partnership at law or in equity with respect to amounts owed by a Partner to the Partnership pursuant to this Section 15(b), the Designated Partner shall have the right to offset, or cause to be offset, against any such Partner’s distributions under this Agreement all amounts owed by such Partner to the Designated Partner or the Partnership pursuant to this Section 15(b).  A Partner’s reimbursement obligation arising under this Section 15(b) shall survive the transfer of an interest by such Partner, a withdrawal by such Partner, and the dissolution and termination of the Partnership.
16.    Allocation of Profits and Losses.  (a) Profits, Losses and items thereof of the Partnership for each year (or other period) shall be allocated among the Partners in such manner that (x) the Adjusted Capital Account balances (as defined below) of all Partners with positive 

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Adjusted Capital Account balances (after crediting or debiting Capital Accounts for Profits, Losses, items thereof, and allocations pursuant to this Section 16 for such year or other period) will correspond as closely as possible to the distributions that would result if an amount equal to the aggregate of the Adjusted Capital Account balances of all Partners with positive Adjusted Capital Account balances were distributed in accordance with Section 13 at the end of such year or other period and (y) the Adjusted Capital Account balances of all Partners with negative Adjusted Capital Account balances will correspond as closely as possible to the manner in which economic responsibility for such deficit balances would be borne by the Partners under the terms of this Agreement or any collateral agreement. The “Adjusted Capital Account” balance of a Partner means the balance of such Partner’s Capital Account increased by (x) such Partner’s share of “partnership minimum gain” and “partner nonrecourse debt minimum gain” (as defined in the Regulations under Section 704(b) of the Code) and (y) the amount of any unconditional, non contingent obligation of the Partner in respect of capital contributions (including obligations under any note contributed to the capital of the Partnership the principal balance of which has not previously been reflected in Capital Accounts) owed to (or on behalf of) the Partnership, payable on or before liquidation of the Partnership.
(b)    Special Allocations.
(i)    Notwithstanding any other provision of this Agreement, (i) “partner nonrecourse deductions” (as defined in Section 1.704-2(i) of the Regulations), if any, of the Partnership shall be allocated to the Partner that bears the economic risk of loss within the meaning of Section 1.704-2(i) of the Regulations, and (ii) “nonrecourse deductions” (as defined in Section 1.704-2(b) of the Regulations) and “excess nonrecourse liabilities” (as defined in Section 1.752-3(a)(3) of the Regulations), if any, of the Partnership with respect to each period shall be allocated among the Partners in accordance with their respective Percentage Interests.
(ii)    This Agreement shall be deemed to include “qualified income offset,” “minimum gain chargeback” and “partner nonrecourse debt minimum gain chargeback” provisions within the meaning of the Regulations under Section 704(b) of the Code.  Accordingly, notwithstanding any other provision of this Agreement, items of gross income shall be allocated to the Partners on a priority basis to the extent and in the manner required by such provisions.
(iii)    Notwithstanding any other provision of this Agreement, no allocation of Losses or items of deduction or expense shall be made to any Partner to the extent that the effect of such allocation would be to cause the Partner to have a negative balance in its Capital Account, after taking into account any adjustments, allocations or distributions described in Section 1.704-1(b)(2)(ii)(d)(4), (5) or (6) of the Regulations, in excess of the maximum amount of such negative balance such Partner would be obligated (or deemed obligated under the Regulations) to contribute to the Partnership upon liquidation.
(iv)    To the extent that an adjustment to the adjusted tax basis of any Partnership asset pursuant to Section 734(b) or 743(b) of the Code is required, pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations, to be taken into account in determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the 

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adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis) and such gain or loss shall be specially allocated to the Partners in a manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such section of the Regulations.
(v)    If the interest of any Partner in the Partnership changes during a taxable year the principles of Section 706 of the Code and the Regulations thereunder shall be applied, as reasonably determined by the Designated Partner, to account for such change.
17.    Tax Allocations: Code Section 704(c).  (a) For federal income tax purposes, except as otherwise provided in Section 17(b), each item of income, gain, loss and deduction shall be allocated among the Partners in the same manner as its corresponding item of book income, gain, loss or deduction is allocated pursuant to Section 16.
(b)    In accordance with Section 704(c) of the Code and the Regulations thereunder, income, gain, loss and deduction with respect to any property contributed to the capital of the Partnership shall, solely for tax purposes, be allocated among the Partners under any reasonable method selected by the Designated Partner so as to take account of any variation between the adjusted basis of such property to the Partnership for federal income tax purposes and its initial Gross Asset Value.
If the Gross Asset Value of any Partnership asset is adjusted pursuant to clause (ii) or (iv) of the definition thereof, subsequent allocations of income, gain, loss and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Gross Asset Value in the same manner as under Code Section 704(c) and the Regulations thereunder.
Any elections or other decisions relating to such allocations shall be made by the Designated Partner in a manner that reasonably reflects the purpose and intention of this Agreement.  Allocations pursuant to this Section 17(b) are solely for purposes of federal, state and local taxes and shall not affect, or in any way be taken into account in computing, any Partner's Capital Account or share of Profits, Losses, other items or distributions pursuant to any provision of this Agreement.
(c)    The provisions of this Section 17 (and other related provisions in this Agreement) pertaining to the allocation of items of Partnership income, gain, loss, deductions, and credits shall be interpreted consistently with the Regulations, and to the extent unintentionally inconsistent with such Regulations, shall be deemed to be modified to the extent necessary to make such provisions consistent with the Regulations.
18.    Books and Records.  The Designated Partner shall keep or cause to be kept complete and accurate books of account and records with respect to the Partnership’s business.  The Partnership’s books of account shall be kept using the method of accounting determined by the Designated Partner.  The Partnership’s independent auditor, if any, shall be any “Big Four” accounting firm, Marcum LLP, Berdon LLP, FTI Consulting, Inc., Grant Thornton LLC or any other independent public accounting firm selected by the Designated Partner.   The Designated Partner shall give the Partners access to all books and records of the Partnership upon reasonable advance notice.  In addition, the Designated Partner shall deliver to the Partners copies of all monthly, 

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quarterly and annual reports received from Borrower or the Construction Consultant (as defined in the Mezz Agreement) in respect of the Mezz Loan. Upon the NTR Partner’s request, the Designated Partner shall deliver to the NTR Partner all other material notices, reports and other documents received by the Designated Partner in respect of the Mezz Loan.
19.    Other Business.  The Partners and any Affiliates (as defined herein) of the Partners may engage in or possess any interest in other business ventures (unconnected with the Partnership) of every kind and description, independently or with others.  The Partnership shall not have any rights in or to such independent ventures or the income or profits therefrom by virtue of this Agreement. 
20.    No Termination.  To the maximum extent permitted by law, the death, bankruptcy, insolvency, dissolution, liquidation, termination or incapacity of any Partner shall not serve to cause the dissolution, liquidation or termination of the Partnership.
21.    Dissolution.  (a)  Subject to Section 20, the Partnership shall be dissolved upon the first of the following events to occur:  (i) the written election by both Partners at any time to dissolve and wind up the affairs of the Partnership; (ii) the application of a judicial dissolution pursuant to Section 15-801(5) of the Act; and (iii) the termination of the legal existence of the last remaining partner of the Partnership or the occurrence of any other event which terminates the continued partnership of the last remaining partner of the Partnership in the Partnership unless the Partnership is continued without dissolution in a manner permitted by this Agreement or the Act.  Upon the occurrence of any event that causes the last remaining partner of the Partnership to cease to be a partner of the Partnership, to the fullest extent permitted by law, the personal representative of such partner is hereby authorized to, and shall, within ninety (90) days after the occurrence of the event that terminated the continued partnership of such partner in the Partnership, agree in writing (y) to continue the Partnership and (z) to the admission of the personal representative or its nominee or designee, as the case may be, as a substitute partner of the Partnership, effective as of the occurrence of the event that terminated the continued partnership of the last remaining partner of the Partnership in the Partnership.
(b)    Notwithstanding any other provision of this Agreement, the bankruptcy of any Partner shall not cause the Partner to cease to be a partner of the Partnership and upon the occurrence of such an event, the Partnership shall continue without dissolution.
(c)    In the event of a dissolution, the Partnership shall conduct only such activities as are necessary to wind up its affairs (including the sale of the assets of the Partnership in an orderly manner).
(d)    The Partnership shall terminate when (i) all of the assets of the Partnership, after payment of or due provision for all debts, liabilities and obligations of the Partnership shall have been distributed to the Partners in the manner provided for in this Agreement and (ii) the Statement of Partnership Existence shall have been cancelled in the manner required by the Act. 

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(e)    Following the dissolution of the Partnership, the Designated Partner shall liquidate the assets of the Partnership as promptly as shall be practicable, but in an orderly and commercially reasonable manner.  The proceeds of such liquidation shall be applied in the following order of priority:
(i)    first, to the payment of debts and liabilities of the Partnership and the costs and expenses of the dissolution and liquidation; 
(ii)    then, to the establishment of any reserves that the Designated Partner may deem reasonably necessary to satisfy any contingent liabilities of the Partnership; and
(iii)    then, to the Partners in accordance with Section 13.
22.    Indemnification.  (a) To the fullest extent permitted by law, none of the Designated Partner (including in its capacity as “tax matters partner” or “partnership representative”) or its Affiliates, officers, directors, agents, stockholders, members, employees and partners, and any other person who serves at the request of the Designated Partner on behalf of the Partnership as an officer, director, partner, employee or agent of any other entities who serve in such capacities in furtherance of the Partnership’s  business activities or affairs (collectively, the “Indemnitees”) shall be liable to the Partnership or to any Partner for (i) any act or omission taken in good faith or suffered by the Indemnitees in connection with the conduct of the business or affairs of the Partnership or otherwise in connection with this Agreement or the matters contemplated herein, unless and to the extent that such act or omission resulted from an Indemnitee’s fraud, willful misconduct or gross negligence; provided that nothing herein shall constitute a waiver or limitation of any rights which a Partner or the Partnership may have under applicable United States federal securities laws or other laws and which may not be waived, or (ii) any mistake, negligence, dishonesty or bad faith of any broker, adviser or other agent of the Partnership (that is not an Affiliate of the Designated Partner) selected, engaged or retained with reasonable care by the Designated Partner.  To the extent that, at law or in equity, the Designated Partner has duties (including fiduciary duties) and liabilities relating thereto to the Partnership or to another Partner, the Designated Partner acting under this Agreement shall not be liable to the Partnership or to any such other Partner for its good faith reliance on the provisions of this Agreement.  The provisions of this Agreement, to the extent that they expand or restrict the duties and liabilities of the Designated Partner otherwise existing at law or in equity, are agreed by the Partners to modify to that extent such other duties and liabilities of the Designated Partner (to the extent permitted by applicable law).  The Designated Partner agrees that the Designated Partner and its Affiliates, officers, directors, agents, stockholders, members, employees or partners shall not have a right to indemnification for disputes or claims by and between the Designated Partner and/or its Affiliates, officers, directors, agents, stockholders, members, employees or partners.  The Partnership shall not be required to indemnify the Designated Partner from and against any successful claims, liabilities, damages, losses, costs and expenses against the Designated Partner arising out of or in connection with an intentional material breach of this Agreement by the Designated Partner.

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(b)    To the fullest extent permitted by law, each Indemnitee shall be indemnified and held harmless out of the assets held by the Designated Partner on behalf of the Partnership from and against any and all actual and out of pocket third party claims, liabilities, damages, losses, costs and expenses (including amounts paid in satisfaction of judgments, in compromises and settlements, as fines and penalties and legal or other costs and reasonable expenses of investigating or defending against any claim or alleged claim) of any nature whatsoever, known or unknown, liquidated or unliquidated, that are incurred by any Indemnitee and/or to which such Indemnitee may be subject by reason of its activities on behalf of the Partnership or in furtherance of the interest of the Partnership or otherwise arising out of or in connection with the affairs of the Partnership, including the performance by such Indemnitee of any of the Designated Partner’s responsibilities hereunder or otherwise in connection with the matters contemplated herein; provided, that:  (i) an Indemnitee shall be entitled to indemnification hereunder only to the extent that such Indemnitee’s conduct did not constitute fraud, willful misconduct or gross negligence; (ii) nothing herein shall constitute a waiver or limitation of any rights which a Partner or the Partnership may have under applicable United States federal securities laws or other laws and which may not be waived and (iii) the Partnership’s obligations hereunder shall not apply with respect to (x) economic losses or tax obligations incurred by any Indemnitee as a result of such Indemnitee’s ownership of a Partnership Interest or (y) expenses of the Partnership that an Indemnitee has agreed to bear.  The satisfaction of any indemnification and any holding harmless pursuant to this Section 22 shall be from and limited to Partnership assets and no Partner shall have any personal liability on account thereof.  
(c)    Expenses reasonably incurred by an Indemnitee in defense or settlement of any claim that may be subject to a right of indemnification hereunder shall be advanced by the Partnership prior to the final disposition thereof upon receipt of an undertaking by or on behalf of the Indemnitee to repay such amount to the extent that it shall be determined ultimately that such Indemnitee is not entitled to be indemnified hereunder.  No advances shall be made by the Partnership under this Section 22 without the prior written consent of the Designated Partner; provided, that the Partnership shall not advance funds to the Designated Partner or its Affiliates for legal expenses or other costs incurred as a result of any legal action or proceeding commenced against the Designated Partner or its Affiliates by the NTR Partner.  The Designated Partner hereby agrees that any expenses incurred by an Indemnitee pursuant to this Section 22(c) shall not be advanced or repaid to such Indemnitee if the expenses incurred are in connection with the defense or settlement of a claim resulting from a dispute between the Designated Partner and one of its respective Affiliates, officers, directors, agents, stockholders, members, employees or partners.
(d)    The right of any Indemnitee to the indemnification provided herein shall be cumulative of, and in addition to, any and all rights to which such Indemnitee may otherwise be entitled by contract or as a matter of law or equity and shall extend to such Indemnitee’s successors and assigns.
(e)    Any Person entitled to indemnification from the Partnership hereunder shall first seek recovery under any other indemnity or any insurance policies by which such Person is indemnified or covered, as the case may be, but only to the extent that the indemnitor with respect to such indemnity or the insurer with respect to such insurance policy provides (or acknowledges its obligation to provide) such indemnity or coverage on a timely basis, as the case may be, and, if 

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such Person is other than the Designated Partner, such Person shall obtain the written consent of the Designated Partner prior to entering into any compromise or settlement which would result in an obligation of the Partnership to indemnify such Person.  If liabilities arise out of the conduct of the affairs of the Partnership and any other Person for which the Person entitled to indemnification from the Partnership hereunder was then acting in a similar capacity, the amount of the indemnification provided by the Partnership shall be limited to the Partnership’s proportionate share thereof as determined in good faith by the Designated Partner in light of its fiduciary duties to the Partnership and the Partners.
(f)    Notwithstanding anything to the contrary contained herein but subject to this clause (f), in no event shall any of the Partners have the obligation to, and in no event shall the Partners be obligated to reimburse the Designated Partner or otherwise pay for, costs or expenses incurred by the Designated Partner in connection with the administration of its duties and rights hereunder (except to the extent of an indemnification obligation related to third party claims as expressly set forth above); provided that the Designated Partner or its Affiliates can charge the Partnership market rates for professional services (such as legal (including without limitation in connection with leasing services), accounting, tax preparation, architectural/engineering and other services) rendered by any employees of the Partnership, the Designated Partner or their Affiliates that would otherwise be charged to the Partnership by unaffiliated third party providers. 
23.    Insurance.  The Partnership may purchase and maintain insurance, on behalf of the Partners and such other Persons as the Partners shall determine, against any liability that may be asserted against or expense that may be incurred by, such persons in connection with the business or activities of the Partnership, regardless of whether the Partnership would have the power to indemnify such Persons against such liability under the provisions of this Agreement.
24.    Action by Partners.  The Partners shall have only such rights as are provided by law and this Agreement.  The Partnership shall not be required to hold any annual or regular meeting of Partners.  Any action permitted or required to be taken by the Designated Partner may be taken by a written consent, setting forth the action to be taken and signed by the Designated Partner.
25.    Governing Law.  This Agreement is made pursuant to and shall be governed by and construed in accordance with the laws of the State of Delaware (without regard to conflict of laws principles), all rights and remedies being governed by said laws.
26.    Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which taken together shall constitute one agreement.  Facsimile and Portable Document Format (PDF) signature pages shall have the same force and effect as original signature pages.
27.    Definitions.  For purposes of this Agreement, the following items shall have the following meanings: 

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“Affiliate” means, with respect to any Person, any other Person, directly or indirectly, through one or more intermediaries, controlling, controlled by, or under common control with such Person.
“Budget Act” means the Bipartisan Budget Act of 2015 (P.L. 114-74).
“Code” means the United States Internal Revenue Code of 1986, as amended from time to time.
“control” means, with respect to a Person that is a corporation, the right to elect a majority of its board of directors and, with respect to a Person that is not a corporation, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of the controlled Person; provided, that, a Person may still have control of a controlled Person notwithstanding that one or more third parties may have rights to participate in major decisions of such controlled Person.
“Gross Asset Value” means, with respect to any asset, the asset's adjusted basis for federal income tax purposes, except as follows:
(i)    the initial Gross Asset Value of any asset contributed by a Partner to the Partnership shall be the gross fair market value of such asset at the time of such contribution as reasonably determined by the Designated Partner;
(ii)    the Gross Asset Values of all Partnership assets may, in the sole discretion of the Designated Partner, be adjusted to equal their respective gross fair market values, as reasonably determined by the Designated Partner, as of the following times:  (a) the acquisition of an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis capital contribution; (b) the distribution by the Partnership to a Partner of more than a de minimis amount of Partnership property as consideration for an interest in the Partnership; and (c) the liquidation of the Partnership within the meaning of Section 1.704-1(b)(2)(ii)(g) of the Regulations;
(iii)    the Gross Asset Value of any Partnership asset distributed to any Partner shall be the gross fair market value of such asset on the date of distribution, as reasonably determined by the Designated Partner; and
(iv)    the Gross Asset Values of Partnership assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the Regulations and Section 14; provided, however, that Gross Asset Values shall not be adjusted pursuant to this clause (iv) to the extent the Designated Partner determines that an adjustment pursuant to clause (ii) above is necessary or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this clause (iv).
If the Gross Asset Value of an asset has been determined or adjusted pursuant to clause (i), (ii) or (iv) above, such Gross Asset Value shall thereafter be adjusted in the same manner as would the 

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asset’s adjusted basis for federal income tax purposes, except that depreciation deductions shall be computed based on the asset’s Gross Asset Value as so determined, rather than on its adjusted tax basis.
“Intercreditor Agreement” means that certain Intercreditor Agreement dated as of the date hereof between CIT Bank, N.A. and the Mezzanine Lender. 
“NTR” means Northstar/RXR New York Metro Real Estate, Inc.
“Person”  means any individual, corporation, partnership, joint venture, limited liability company, limited liability partnership, association, joint stock company, trust, unincorporated organization, or other organization, whether or not a legal entity, and any governmental authority
“Profits” and “Losses” mean, for each taxable year or other period, an amount equal to the Partnership’s taxable income or loss for such year or period, determined in accordance with Section 703(a) of the Code (for this purpose all items of income, gain, loss or deduction required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income or loss), with the following adjustments:
(i)    any income of the Partnership that is exempt from federal income tax and not otherwise taken into account in computing Profits and Losses shall be added to such taxable income or loss;
(ii)    any expenditures of the Partnership described in Section 705(a)(2)(B) of the Code or treated as Section 705(a)(2)(B) expenditures pursuant to Section 1.704-1(b)(2)(iv)(i) of the Regulations, and not otherwise taken into account in computing Profits and Losses pursuant to this definition, shall be subtracted from such taxable income or loss;
(iii)    if the Gross Asset Value of any Partnership asset is adjusted pursuant to clause (ii), (iii) or (iv) of the definition of Gross Asset Value herein, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits or Losses;
(iv)    gain or loss resulting from any disposition of Partnership property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Gross Asset Value; 
(v)    depreciation or other cost recovery deductions shall be computed based upon the Gross Asset Value of the Partnership’s assets rather than upon such assets’ adjusted bases for federal income tax purposes; and
(vi)    notwithstanding any other provision hereof, any items which are specially allocated pursuant to Section 16 shall not be taken into account in computing Profits and Losses.

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“Regulations” means the United States Treasury regulations promulgated under the Code from time to time.
28.    Amendments.  This Agreement may be modified, altered, supplemented or amended pursuant to a written instrument executed and delivered by the Partners.
29.    Severability of Provisions.  Each provision of this Agreement shall be considered severable and if for any reason any provision or provisions herein are determined to be invalid, unenforceable or illegal under any existing or future law, such invalidity, unenforceability or illegality shall not impair the operation of or affect those portions of this Agreement which are valid, enforceable and legal.
30.    Preparation of Tax Returns.  The Designated Partner shall furnish to the Partners information with respect to the Partnership required to be set forth in each Partner's individual U.S. federal income tax return as soon as reasonably practicable after the end of each taxable year of the Partnership.  The Designated Partner shall have exclusive authority in connection with the preparation of the Partnership tax returns and in selecting an accounting firm in connection with the preparation of such returns.  The cost of the preparation of all such reports shall be an expense of the Partnership.
31.    Tax Matters Partner; Partnership Representative; Tax Audits. 
(a)     The Designated Partner shall at all times constitute, and have full powers and responsibilities as, the “tax matters partner” of the Partnership for purposes of Section 6231(a)(7) of the Code so long as such designation is applicable and shall thereafter be designated as “partnership representative” of the Partnership for purposes of Section 6223(a) of the Code, as amended by Section 1101 of the Budget Act.  Notwithstanding Section 8(i), the Designated Partner is specifically directed and authorized to take whatever steps the Designated Partner deems necessary or desirable to perfect any such designation, including filing any forms or documents with the Internal Revenue Service and taking such other action as may from time to time be required under Regulations and, upon request of the Designated Partner, the NTR Partner shall execute any forms or statements required in connection therewith.
(b)    In the event the Partnership shall be the subject of an income tax audit by any U.S. federal, state or local authority, to the extent the Partnership is treated as an entity for purposes of such audit, including administrative settlement and judicial review, the Designated Partner shall be authorized to act for, and its decision shall be final and binding upon, the Partnership and each Partner.  If the Partnership receives a notice of final partnership adjustment from the Internal Revenue Service, the Designated Partner (in its capacity as “tax matters partner” or “partnership representative”, as applicable) may, as determined in its good faith discretion and with respect to any applicable year, (i) elect to apply the provisions of Section 1101 of the Budget Act with respect to any imputed underpayment arising from such adjustment and/or (ii) cause the Partnership to (x) elect the application of Section 6226 of the Code, as amended by Section 1101 of the Budget Act, with respect to any imputed underpayment arising from such adjustment, and (y) furnish to each Partner, and former Partner (as applicable), a statement of such Partner’s share (based on the year to which such adjustment relates) of any adjustment to income, gain, loss, 

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deduction or credit (as determined in the notice of final partnership adjustment).  All expenses incurred in connection with any such audit, investigation, settlement or review shall be borne by the Partnership.  Each Partner agrees that such Partner will not treat any Partnership item inconsistently on such Partner's individual income tax return with the treatment of the item on the Partnership's tax return and that such Partner will not independently act with respect to tax audits or tax litigation affecting the Partnership, unless previously authorized to do so in writing by the Designated Partner, which authorization may be withheld in the sole discretion of the Designated Partner.  Notwithstanding anything contained herein to the contrary, the RXR Partner shall have the sole right, and shall not require the consent of any other Partner, to either (i) make any entity classification election pursuant to Treasury Regulations Section 301.7701-3 with respect to the Partnership or the REIT for U.S. federal income tax purposes and/or (ii) cause the REIT to elect to be treated as a real estate investment trust within the meaning of Section 856 of the Code (or following such election, to cause the REIT to terminate the REIT’s status as a real estate investment trust within the meaning of Section 856 of the Code).
32.    Fiscal Year.  The fiscal year of the Partnership (the “Fiscal Year”) for accounting and tax purposes shall be the calendar year.  The Designated Partner is authorized to take such action as it may deem necessary or appropriate to adopt a Fiscal Year ending on any other date if such different Fiscal Year is required under the Code. 
33.    Notices. All notices, demands, requests, approvals or other communications which may be or are required to be given, served, delivered, or sent by any party to any other party pursuant to this Agreement shall be in writing and shall be (a) mailed by first-class, registered or certified mail, return receipt requested, postage prepaid, (b) sent by nationally recognized overnight courier or (c) delivered by hand delivery (including delivery by nationally recognized courier), addressed as follows:
(i)    If to the RXR Partner:
c/o RXR Realty LLC  
625 RXR Plaza  
Uniondale, New York 11556  
Attention:  Jason M. Barnett, Esq. 
with a copy to:

Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019-6064 
Attention:  Peter Fisch, Esq.
(ii)    If to the NTR Partner:
399 Park Avenue, 18th Floor,  
New York, New York 10022

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with a copy to:

Gibson, Dunn & Crutcher LLP
200 Park Avenue
New York, New York 10166
Attn: Aaron Beim, Esq.

Notwithstanding the foregoing, the Partners may deliver notices, demands, requests, approvals or other communications via electronic mail with respect to routine matters for which the Mezzanine Lender’s consent is being requested by Borrower under the Mezz Loan Documents.

34.    Senior Loan.  In no event shall either the NTR Partner or the Designated Partner or any of their respective Affiliates purchase all or a portion of the Senior Loan (as such term is defined in the Intercreditor Agreement), whether pursuant to the Intercreditor Agreement or otherwise, without first offering the other Partner the opportunity to participate in such purchase on a pro rata basis based on each Partner’s Percentage Interest (and if both Partners and/or their  Affiliates consummate such purchase, they will enter into a joint venture arrangement on substantially the same terms as those set forth herein to so consummate such purchase).  If both Partners so elect to so consummate such purchase, they shall reasonably cooperate with each other in the consummation of such purchase.

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IN WITNESS WHEREOF, the undersigned, intending to be legally bound hereby, have duly executed this Agreement as of the date first above written. 
DESIGNATED PARTNER:
RXR 11 Jane Vehicle LP, a Delaware limited partnership
By: RXR VAF III 11 Jane GP LLC, its general  
      partner
		
	By: 
	/s/ Jason Barnett     
Name: Jason Barnett 
Title: Authorized Person

Signature Page to Partnership Agreement of RXR 11 Jane Venture JV

NTR PARTNER:
1285 INVESTOR NT-NSR, LLC,  
a Delaware limited liability company
		
	By: 
	/s/ Ann B. Harrington     
Name: Ann B. Harrington 
Title: General Counsel and Secretary

Signature Page to Partnership Agreement of RXR 11 Jane Venture JV

Annex A
Capital Contributions and Percentage Interests
	
			
	Partners
	Initial Capital Contributions
	Percentage Interest

	RXR 11 Jane Vehicle LP
	$8,000,000
	40%

	1285 Investor NT-NSR, LLC
	$12,000,000
	60%

 

Annex B

Authorized Persons

Scott Rechler    
Jason Barnett    
Michael Maturo    
Todd Rechler    
Richard ConniffExhibit

Exhibit 10.1
BRIGHT HORIZONS FAMILY SOLUTIONS INC.
2012 OMNIBUS LONG-TERM INCENTIVE PLAN, AS AMENDED AND RESTATED EFFECTIVE AS OF JUNE 1, 2017
 
	
		
	1.
	DEFINED TERMS

Exhibit A, which is incorporated by reference, defines the terms used in the Plan and sets forth certain operational rules related to those terms.
 
	
		
	2.
	PURPOSE

The Plan has been established to advance the interests of the Company by providing for the grant to Participants of Stock-based and other incentive Awards.
 
	
		
	3.
	ADMINISTRATION

The Administrator has discretionary authority, subject only to the express provisions of the Plan, to interpret the Plan; determine eligibility for and grant Awards; determine, modify or waive the terms and conditions of any Award; determine the form of settlement of Awards (whether in cash, shares of Stock, or other property); prescribe forms, rules and procedures relating to the Plan and Awards; and otherwise do all things necessary or appropriate to carry out the purposes of the Plan. Determinations of the Administrator made under the Plan will be conclusive and will bind all parties.
 
	
		
	4.
	LIMITS ON AWARDS UNDER THE PLAN

(a) Number of Shares. Subject to adjustment as provided in Section 7(b), the maximum number of shares of Stock that may be delivered in satisfaction of Awards under the Plan is five million (5,000,000) shares. Up to the total number of shares available for awards to employee Participants may be issued in satisfaction of ISOs, but nothing in this Section 4(a) will be construed as requiring that any, or any fixed number of, ISOs be awarded under the Plan. For purposes of this Section 4(a), the number of shares of Stock delivered in satisfaction of Awards will be determined (i) by including shares of Stock withheld by the Company in payment of the exercise price or purchase price of the Award or in satisfaction of tax withholding requirements with respect to the Award, (ii) by including the full number of shares covered by a SAR any portion of which is settled in Stock (and not only the number of shares of Stock delivered in settlement), and (iii) by excluding any shares of Stock underlying Awards settled in cash or that expire, become unexercisable, terminate or are forfeited to or repurchased by the Company without the issuance of Stock. For the avoidance of doubt, the number of shares of Stock available for delivery under the Plan will not be increased by any shares of Stock delivered under the Plan that are subsequently repurchased using proceeds directly attributable to Stock Option exercises. To the extent consistent with the requirements of Section 422 and other applicable requirements (including applicable stock exchange requirements), Stock issued under Substitute Awards shall not reduce the number of shares available for Awards under the Plan. The shares which may be delivered under Substitute Awards shall be in addition to the limitations set forth in this Section 4(a) on the number of shares available for issuance under the Plan, and such Substitute Awards shall not be subject to the per-Participant Award limits described in Section 4(c) below.
(b) Type of Shares. Stock delivered by the Company under the Plan may be authorized but unissued Stock or previously issued Stock acquired by the Company.
 
(c) Section 162(m) Limits. The following additional limits will apply to Awards of the specified type granted or, in the case of Cash Awards, payable to any person in any calendar year:

(1) Stock Options: five-hundred thousand (500,000) shares of Stock.
(2) SARs: five-hundred thousand (500,000) shares of Stock.
(3) Awards other than Stock Options, SARs or Cash Awards: two-hundred and fifty thousand (250,000) shares of Stock.
(4) Cash Awards: two million five hundred thousand dollars ($2,500,000).
In applying the foregoing limits, (i) all Awards of the specified type granted to the same person in the same calendar year will be aggregated and made subject to one limit; (ii) the limits applicable to Stock Options and SARs refer to the number of shares of Stock subject to those Awards; (iii) the share limit under clause (3) refers to the maximum number of shares of Stock that may be delivered, under an Award or Awards of the type specified in clause (3) assuming a maximum payout; (iv) all Awards, other than Cash Awards that are settled in cash, count against the applicable share limit under clause (1), (2) or (3) and not against the dollar limit under clause (4); and (v) the dollar limit under clause (4) refers to the maximum dollar amount payable under a Cash Award assuming a maximum payout. The foregoing provisions will be construed in a manner consistent with Section 162(m), including, without limitation, where applicable, the rules under Section 162(m) pertaining to permissible deferrals of exempt awards.
(d) Non-Employee Director Limits. Notwithstanding the limits in subsection (c) above, the maximum grant date fair value of Awards (other than Cash Awards) granted to any non-Employee director of the Board in any calendar year, calculated in accordance with FASB ASC 718 (or any successor provision), assuming a maximum payout, may not exceed $500,000. The limitation in the immediately preceding sentence will not apply to any Award or shares of Stock granted pursuant to such director’s election to receive an Award or shares of Stock in lieu of cash retainers or other fees (to the extent such Award or shares of Stock have a fair value equal to the value of such cash retainers or other fees).
 
	
		
	5.
	ELIGIBILITY AND PARTICIPATION

The Administrator will select Participants from among key Employees and directors of, and consultants and advisors to, the Company and its Affiliates. Eligibility for ISOs is limited to individuals described in the first sentence of this Section 5 who are employees of the Company or of a “parent corporation” or “subsidiary corporation” of the Company as those terms are defined in Section 424 of the Code. Eligibility for Stock Options, other than ISOs, and SARs is limited to individuals described in the first sentence of this Section 5 who are providing direct services on the date of grant of the Award to the Company or to a subsidiary of the Company that would be described in the first sentence of Treas. Regs. §1.409A-1(b)(5)(iii)(E).
 
	
		
	6.
	RULES APPLICABLE TO AWARDS

(a) All Awards.
(1) Award Provisions. The Administrator will determine the terms of all Awards, subject to the limitations provided herein. By accepting (or, under such rules as the Administrator may prescribe, being deemed to have accepted) an Award, the Participant will be deemed to have agreed to the terms of the Award and the Plan. Notwithstanding any provision of this Plan to the contrary, Substitute Awards may contain terms and conditions that are inconsistent with the terms and conditions specified herein, as determined by the Administrator. No term of an Award shall provide for automatic “reload” grants of additional Awards upon exercise of an Option or SAR or otherwise as a term of an Award.
 
(2) Term of Plan. No Awards may be made after ten years from the Date of Adoption, but previously granted Awards may continue beyond that date in accordance with their terms.

(3) Transferability. Neither ISOs nor, except as the Administrator otherwise expressly provides in accordance with the third sentence of this Section 6(a)(3), other Awards may be transferred other than by will or by the laws of descent and distribution. During a Participant’s lifetime, ISOs (and, except as the Administrator otherwise expressly provides in accordance with the third sentence of this Section 6(a)(3), SARs and NSOs) may be exercised only by the Participant. The Administrator may permit the gratuitous transfer (i.e., transfer not for value) of Awards other than ISOs to any transferee eligible to be covered by the provisions of Form S-8 (under the Securities Act of 1933, as amended), subject to such limitations as the Administrator may impose.
(4) Vesting, etc. The Administrator will determine the time or times at which an Award will vest or become exercisable and the terms on which a Stock Option or SAR will remain exercisable. Without limiting the foregoing, the Administrator may at any time accelerate the vesting or exercisability of an Award, regardless of any adverse or potentially adverse tax or other consequences resulting from such acceleration. Unless the Administrator expressly provides otherwise, however, the following rules will apply if a Participant’s Employment ceases:
(A) Immediately upon the cessation of the Participant’s Employment and except as provided in (B), (C), (D) or (E) below, each Stock Option and SAR that is then held by the Participant or by the Participant’s permitted transferees, if any, will cease to be exercisable and will terminate and all other Awards that are then held by the Participant or by the Participant’s permitted transferees, if any, to the extent not already vested will be forfeited.
(B) Subject to (C), (D) and (E) below, all Stock Options and SARs held by the Participant or the Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment, to the extent then exercisable, will remain exercisable for the lesser of (i) a period of sixty (60) days or (ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon immediately terminate.
(C) All Stock Options and SARs held by a Participant or the Participant’s permitted transferees, if any, immediately prior to the Participant’s cessation of Employment by reason of death, to the extent then exercisable, will remain exercisable for the lesser of (i) the one year period ending with the first anniversary of the Participant’s death or (ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon immediately terminate.
(D) All Stock Options and SARs held by a Participant or the Participant’s permitted transferees, if any, immediately prior to the Participant’s cessation of Employment by reason of Disability, to the extent then exercisable, will remain exercisable for the lesser of (i) a period of one hundred and eighty (180) days, or (ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon immediately terminate.
(E) All Stock Options and SARs held by a Participant or the Participant’s permitted transferees, if any, immediately prior to the Participant’s cessation of Employment by reason of Retirement, to the extent then exercisable, will remain exercisable for the lesser of (i) a period of ninety (90) days, or (ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon immediately terminate.
(F) All Stock Options and SARs (whether or not exercisable) held by a Participant or the Participant’s permitted transferees, if any, immediately prior to the cessation of the Participant’s Employment will immediately terminate upon such cessation of Employment if the termination is for Cause or occurs in circumstances that in the sole determination of the Administrator would have constituted grounds for the Participant’s Employment to be terminated for Cause.
 
(5) Additional Restrictions. The Administrator may cancel, rescind, withhold or otherwise limit or restrict any Award at any time if the Participant is not in compliance with all applicable provisions of the Award agreement and the Plan, or if the Participant breaches any agreement with the Company or its Affiliates with respect 

to non-competition, non-solicitation or confidentiality. Without limiting the generality of the foregoing, the Administrator may recover Awards made under the Plan and payments under or gain in respect of any Award to the extent required to comply with (i) Section 10D of the Securities Exchange Act of 1934, as amended, or any stock exchange or similar rule adopted under said Section or (ii) any applicable Company clawback or recoupment policy as in effect from time to time. Each Participant, by accepting or being deemed to have accepted an Award under the Plan, agrees to cooperate fully with the Administrator, and to cause any and all permitted transferees of the Participant to cooperate fully with the Administrator, to effectuate any forfeiture or disgorgement required hereunder. Neither the Administrator nor the Company nor any other person, other than the Participant and his or her permitted transferees, if any, will be responsible for any adverse tax or other consequences to a Participant or his or her permitted transferees, if any, that may arise in connection with this Section 6(a)(5).
(6) Taxes. The delivery, vesting and retention of Stock, cash or other property under an Award are conditioned upon full satisfaction by the Participant of all tax withholding requirements with respect to the Award. The Administrator will prescribe such rules for the withholding of taxes as it deems necessary. The Administrator may, but need not, hold back shares of Stock from an Award or permit a Participant to tender previously owned shares of Stock in satisfaction of tax withholding requirements (but not in excess of the maximum withholding amount consistent with the award being subject to equity accounting treatment under FASB ASC 718).
(7) Dividends, Dividend Equivalents, Etc. The Administrator may provide for the payment of amounts (on terms and subject to conditions established by the Administrator) in lieu of cash dividends or other cash distributions with respect to Stock subject to an Award whether or not the holder of such Award is otherwise entitled to share in the actual dividend or distribution in respect of such Award; provided, however, that (a) dividends or dividend equivalents relating to an Award that, at the dividend payment date, remains subject to a risk of forfeiture (whether service-based or performance-based) shall be subject to the same risk of forfeiture as applies to the underlying Award and (b) no dividends or dividend equivalents shall be payable with respect to Options or SARs. Any entitlement to dividend equivalents or similar entitlements will be established and administered either consistent with an exemption from, or in compliance with, the requirements of Section 409A. Dividends or dividend equivalent amounts payable in respect of Awards that are subject to restrictions may be subject to such additional limitations or restrictions as the Administrator may impose.
(8) Rights Limited. Nothing in the Plan will be construed as giving any person the right to be granted an Award or to continued employment or service with the Company or its Affiliates, or any rights as a stockholder except as to shares of Stock actually issued under the Plan. The loss of existing or potential profit in Awards will not constitute an element of damages in the event of termination of Employment for any reason, even if the termination is in violation of an obligation of the Company or any Affiliate to the Participant.
(9) Section 162(m). In the case of any Performance Award (other than a Stock Option or SAR) intended to qualify for the performance-based compensation exception under Section 162(m), the Administrator will establish the applicable Performance Criterion or Criteria applicable to the Award within the time period required under Section 162(m) and the grant, vesting or payment, as the case may be, of the Award will be conditioned on the attainment of such Performance Criterion or Criteria as certified by the Administrator. The Administrator may, subject to the terms of the Plan, amend a previously granted Performance Award or take any other action that disqualifies such Award from the performance-based compensation exception under Section 162(m).
(10) Coordination with Other Plans. Awards under the Plan may be granted in tandem with, or in satisfaction of or substitution for, other Awards under the Plan or awards made under other compensatory plans or programs of the Company or its Affiliates. For example, but without limiting the generality of the foregoing, awards under other compensatory plans or programs of the Company or its Affiliates may be settled in Stock (including, without limitation, Unrestricted Stock) if the Administrator so determines, in which case the shares delivered will be treated as awarded under the Plan (and will reduce the number of shares thereafter available under the Plan in accordance with the rules set forth in Section 4). In any case where an award is made under another plan or program of the Company or its Affiliates and such award is intended to qualify for the performance-based compensation exception under Section 162(m), and such award is settled by the delivery of Stock or another Award under the Plan, the applicable Section 162(m) limitations under both the other plan or program and under the Plan will be 

applied to the Plan as necessary (as determined by the Administrator) to preserve the availability of the Section 162(m) performance-based compensation exception with respect thereto.
(11) Section 409A.
(A) Each Award will contain such terms as the Administrator determines, and will be construed and administered, such that the Award either qualifies for an exemption from the requirements of Section 409A or satisfies such requirements.
(B) Notwithstanding Section 9 of this Plan or any other provision of this Plan or any Award agreement to the contrary, the Administrator may unilaterally amend, modify or terminate the Plan or any outstanding Award, including but not limited to changing the form of the Award, if the Administrator determines that such amendment, modification or termination is necessary or advisable to avoid the imposition of an additional tax, interest or penalty under Section 409A.
(C) If a Participant is deemed on the date of the Participant’s termination of Employment to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B), then, with regard to any payment that is considered nonqualified deferred compensation under Section 409A, to the extent applicable, payable on account of a “separation from service”, such payment will be made or provided on the date that is the earlier of (i) the expiration of the six-month period measured from the date of such “separation from service” and (ii) the date of the Participant’s death (the “Delay Period”). Upon the expiration of the Delay Period, all payments delayed pursuant to this Section 6(a)(11)(C) (whether they would have otherwise been payable in a single lump sum or in installments in the absence of such delay) will be paid on the first business day following the expiration of the Delay Period in a lump sum and any remaining payments due under the Award will be paid in accordance with the normal payment dates specified for them in the applicable Award agreement.
(D) For purposes of Section 409A, each payment made under this Plan will be treated as a separate payment.
(E) With regard to any payment considered to be nonqualified deferred compensation under Section 409A, to the extent applicable, that is payable upon a change in control of the Company or other similar event, if necessary to avoid the imposition of an additional tax, interest or penalty under Section 409A, no amount will be payable unless such change in control constitutes a “change in control event” within the meaning of Section 1.409A-3(i)(5) of the Treasury Regulations.
(12) Fair Market Value. In determining the fair market value of any share of Stock under the Plan, the Administrator will make the determination in good faith consistent with the rules of Section 422 and Section 409A to the extent applicable.
(b) Stock Options and SARs.
(1) Time And Manner Of Exercise. Unless the Administrator expressly provides otherwise, no Stock Option or SAR will be deemed to have been exercised until the Administrator receives a notice of exercise (in form acceptable to the Administrator), which may be an electronic notice, signed (including electronic signature in form acceptable to the Administrator) by the appropriate person and accompanied by any payment required under the Award. A Stock Option or SAR exercised by any person other than the Participant will not be deemed to have been exercised until the Administrator has received such evidence as it may require that the person exercising the Award has the right to do so.
(2) Exercise Price. The exercise price (or the base value from which appreciation is to be measured) of each Award requiring exercise (other than a Substitute Award) will be no less than 100% (or in the case of an ISO granted to a ten-percent shareholder within the meaning of subsection (b)(6) of Section 422, 110%) of the fair 

market value of the Stock subject to the Award, determined as of the date of grant, or such higher amount as the Administrator may determine in connection with the grant.
(3) Payment Of Exercise Price. Where the exercise of an Award is to be accompanied by payment, payment of the exercise price will be by cash or check acceptable to the Administrator or by such other legally permissible means, if any, as may be acceptable to the Administrator, including, without limitation, (i) through the delivery of previously acquired unrestricted shares of Stock, or the withholding of unrestricted shares of Stock otherwise deliverable upon exercise, in either case that have a fair market value equal to the exercise price, (ii) through a broker-assisted exercise program acceptable to the Administrator, or (iii) by any combination of the foregoing permissible forms of payment. The delivery of previously acquired shares in payment of the exercise price under clause (i) above may be accomplished either by actual delivery or by constructive delivery through attestation of ownership, subject to such rules as the Administrator may prescribe.
(4) Maximum Term. Stock Options and SARs will have a maximum term not to exceed ten (10) years from the date of grant (or five (5) years from the date of grant in the case of an ISO granted to a ten-percent shareholder described in Section 6(b)(2) above.
(5) No Repricing. Except in connection with a corporate transaction involving the Company (which term includes, without limitation, any stock dividend, stock split, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares) or as otherwise contemplated by Section 7 below, the Company may not, without obtaining stockholder approval, (A) amend the terms of outstanding Stock Options or SARs to reduce the exercise price or base value of such Stock Options or SARs, (B) cancel outstanding Stock Options or SARs in exchange for Stock Options or SARs with an exercise price or base value that is less than the exercise price or base value of the original Stock Options or SARs, or (C) cancel outstanding Stock Options or SARs that have an exercise price or base value greater than the fair market value of a share of Stock on the date of such cancellation in exchange for cash, another Award or other consideration.
 
	
		
	7.
	EFFECT OF CERTAIN TRANSACTIONS

(a) Mergers, etc. Except as otherwise provided in an Award agreement, the following provisions will apply in the event of a Covered Transaction:
(1) Assumption or Substitution. If the Covered Transaction is one in which there is an acquiring or surviving entity, the Administrator may (but, for the avoidance of doubt, need not) provide (i) for the assumption or continuation of some or all outstanding Awards or any portion thereof or (ii) for the grant of new awards in substitution therefor by the acquirer or survivor or an affiliate of the acquirer or survivor.
(2) Cash-Out of Awards. Subject to Section 7(a)(5) below the Administrator may (but, for the avoidance of doubt, need not) provide for payment (a “cash-out”), with respect to some or all Awards or any portion thereof, equal in the case of each affected Award or portion thereof to the excess, if any, of (A) the fair market value of one share of Stock (as determined by the Administrator in its reasonable discretion) times the number of shares of Stock subject to the Award or such portion, over (B) the aggregate exercise or purchase price, if any, under the Award or such portion (in the case of an SAR, the aggregate base value above which appreciation is measured), in each case on such payment terms (which need not be the same as the terms of payment to holders of Stock) and other terms, and subject to such conditions, as the Administrator determines; provided, however, for the avoidance of doubt, that if the exercise or purchase price (or base value) of an Award is equal to or greater than the fair market value of one share of Stock, the Award may be cancelled with no payment due hereunder or otherwise in respect of such Award.
(3) Acceleration of Certain Awards. Subject to Section 7(a)(5) below, the Administrator may (but, for the avoidance of doubt, need not) provide that any Award requiring exercise will become exercisable, in full or in part, and/or that the delivery of any shares of Stock remaining deliverable under any outstanding Award of Stock Units (including Restricted Stock Units and Performance Awards to the extent consisting of Stock Units) will be accelerated in full or in part, in each case on a basis that gives the holder of the Award a reasonable opportunity, as 

determined by the Administrator, following exercise of the Award or the delivery of the shares, as the case may be, to participate as a stockholder in the Covered Transaction.
(4) Termination of Awards Upon Consummation of Covered Transaction. Except as the Administrator may otherwise determine in any case, each Award will automatically terminate (and in the case of outstanding shares of Restricted Stock, will automatically be forfeited) upon consummation of the Covered Transaction, other than (A) any Award that is assumed or substituted pursuant to Section 7(a)(1) above and (B) any Cash Award that by its terms, or as a result of action taken by the Administrator, continues following the Covered Transaction.
(5) Additional Limitations. Any share of Stock and any cash or other property delivered pursuant to Section 7(a)(2) or Section 7(a)(3) above with respect to an Award may, in the discretion of the Administrator, contain such restrictions, if any, as the Administrator deems appropriate to reflect any performance or other vesting conditions to which the Award was subject and that did not lapse (and were not satisfied) in connection with the Covered Transaction. For purposes of the immediately preceding sentence, a cash-out under Section 7(a)(2) above or acceleration under Section 7(a)(3) above will not, in and of itself, be treated as the lapsing (or satisfaction) of a performance or other vesting condition. In the case of Restricted Stock that does not vest and is not forfeited in connection with the Covered Transaction, the Administrator may require that any amounts delivered, exchanged or otherwise paid in respect of such Stock in connection with the Covered Transaction be placed in escrow or otherwise made subject to such restrictions as the Administrator deems appropriate to carry out the intent of the Plan.
(b) Changes in and Distributions With Respect to Stock.
(1) Basic Adjustment Provisions. In the event of a stock dividend, stock split or combination of shares (including a reverse stock split), recapitalization or other change in the Company’s capital structure that constitutes an equity restructuring within the meaning of FASB ASC 718, the Administrator will make appropriate adjustments to the maximum number of shares specified in Section 4(a) that may be delivered under the Plan and to the maximum share limits described in Section 4(c), and will also make appropriate adjustments to the number and kind of shares of stock or securities subject to Awards then outstanding or subsequently granted, any exercise prices relating to Awards and any other provision of Awards affected by such change.
(2) Certain Other Adjustments. The Administrator may also make adjustments of the type described in Section 7(b)(1) above to take into account distributions to stockholders other than those provided for in Section 7(a) and 7(b)(1), or any other event, if the Administrator determines that adjustments are appropriate to avoid distortion in the operation of the Plan.
(3) Continuing Application of Plan Terms. References in the Plan to shares of Stock will be construed to include any stock or securities resulting from an adjustment pursuant to this Section 7.
 
	
		
	8.
	LEGAL CONDITIONS ON DELIVERY OF STOCK

The Company will not be obligated to deliver any shares of Stock pursuant to the Plan or to remove any restriction from shares of Stock previously delivered under the Plan until: (i) the Company is satisfied that all legal matters in connection with the issuance and delivery of such shares have been addressed and resolved; (ii) if the outstanding Stock is at the time of delivery listed on any stock exchange or national market system, the shares to be delivered have been listed or authorized to be listed on such exchange or system upon official notice of issuance; and (iii) all conditions of the Award have been satisfied or waived. The Company may require, as a condition to exercise of the Award (or the delivery of shares of Stock under the Award), such representations or agreements as counsel for the Company may consider appropriate to avoid violation of the Securities Act of 1933, as amended, or any applicable state or non-U.S. securities law. Any Stock required to be issued to Participants under the Plan will be evidenced in such manner as the Administrator may deem appropriate, including book-entry registration or delivery of stock certificates. In the event that the Administrator determines that Stock certificates will be issued to Participants under the Plan, the Administrator may require that certificates evidencing Stock issued under the Plan 

bear an appropriate legend reflecting any restriction on transfer applicable to such Stock, and the Company may hold the certificates pending lapse of the applicable restrictions.
 
	
		
	9.
	AMENDMENT AND TERMINATION

The Administrator may at any time or times amend the Plan or any outstanding Award for any purpose which may at the time be permitted by law, and may at any time terminate the Plan as to any future grants of Awards; provided, that except as otherwise expressly provided in the Plan the Administrator may not, without the Participant’s consent, alter the terms of an Award so as to affect materially and adversely the Participant’s rights under the Award, unless the Administrator expressly reserved the right to do so at the time the Award was granted. Any amendments to the Plan will be conditioned upon stockholder approval only to the extent, if any, such approval is required by law (including the Code and applicable stock exchange requirements), as determined by the Administrator.
 
	
		
	10.
	OTHER COMPENSATION ARRANGEMENTS

The existence of the Plan or the grant of any Award will not in any way affect the Company’s right to award a person bonuses or other compensation in addition to Awards under the Plan.
 
	
		
	11.
	MISCELLANEOUS

(a) Waiver of Jury Trial. By accepting an Award under the Plan, each Participant waives any right to a trial by jury in any action, proceeding or counterclaim concerning any rights under the Plan and any Award, or under any amendment, waiver, consent, instrument, document or other agreement delivered or which in the future may be delivered in connection therewith, and agrees that any such action, proceedings or counterclaim will be tried before a court and not before a jury. By accepting an Award under the Plan, each Participant certifies that no officer, representative, or attorney of the Company has represented, expressly or otherwise, that the Company would not, in the event of any action, proceeding or counterclaim, seek to enforce the foregoing waivers. Notwithstanding anything to the contrary in the Plan, nothing herein is to be construed as limiting the ability of the Company and a Participant to agree to submit disputes arising under the terms of the Plan or any Award made hereunder to binding arbitration or as limiting the ability of the Company to require any eligible individual to agree to submit such disputes to binding arbitration as a condition of receiving an Award hereunder.
(b) Limitation of Liability. Notwithstanding anything to the contrary in the Plan, neither the Company, nor any Affiliate, nor the Administrator, nor any person acting on behalf of the Company, any Affiliate, or the Administrator, will be liable to any Participant or to the estate or beneficiary of any Participant or to any other holder of an Award by reason of any acceleration of income, or any additional tax (including any interest and penalties), asserted by reason of the failure of an Award to satisfy the requirements of Section 422 or Section 409A or by reason of Section 4999 of the Code, or otherwise asserted with respect to the Award.
 
	
		
	12.
	ESTABLISHMENT OF SUB-PLANS

The Administrator may from time to time establish one or more sub-plans under the Plan for purposes of satisfying applicable blue sky, securities or tax laws of various jurisdictions. The Administrator will establish such sub-plans by adopting supplements to the Plan setting forth (i) such limitations on the Administrator’s discretion under the Plan as it deems necessary or desirable and (ii) such additional terms and conditions not otherwise inconsistent with the Plan as it deems necessary or desirable. All supplements so established will be deemed to be part of the Plan, but each supplement will apply only to Participants within the affected jurisdiction (as determined by the Administrator).
 
	
		
	13.
	GOVERNING LAW

(a) Certain Requirements of Corporate Law. Awards will be granted and administered consistent with the requirements of applicable Delaware law relating to the issuance of stock and the consideration to be received therefor, and with the applicable requirements of the stock exchanges or other trading systems on which the Stock is listed or entered for trading, in each case as determined by the Administrator.
(b) Other Matters. Except as otherwise provided by the express terms of an Award agreement, under a sub-plan described in Section 12 or as provided in Section 13(a) above, the provisions of the Plan and of Awards under the Plan and all claims or disputes arising out of or based upon the Plan or any Award under the Plan or relating to the subject matter hereof or thereof will be governed by and construed in accordance with the domestic substantive laws of the Commonwealth of Massachusetts without giving effect to any choice or conflict of laws provision or rule that would cause the application of the domestic substantive laws of any other jurisdiction.
(c) Jurisdiction. By accepting an Award, each Participant will be deemed to (a) have submitted irrevocably and unconditionally to the jurisdiction of the federal and state courts located within the geographic boundaries of the United States District Court for the District of Massachusetts for the purpose of any suit, action or other proceeding arising out of or based upon the Plan or any Award; (b) agree not to commence any suit, action or other proceeding arising out of or based upon the Plan or an Award, except in the federal and state courts located within the geographic boundaries of the United States District Court for the District of Massachusetts; and (c) waive, and agree not to assert, by way of motion as a defense or otherwise, in any such suit, action or proceeding, any claim that it he or she not subject personally to the jurisdiction of the above-named courts that his or her property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that the Plan or an Award or the subject matter thereof may not be enforced in or by such court.

EXHIBIT A
Definition of Terms
The following terms, when used in the Plan, will have the meanings and be subject to the provisions set forth below:
“Administrator”: The Compensation Committee, except that the Compensation Committee may delegate (i) to one or more of its members (or one or more other members of the Board (including the full Board)) such of its duties, powers and responsibilities as it may determine; (ii) to one or more officers of the Company the power to grant Awards to the extent permitted by Section 152 or 157(c) of the Delaware General Corporation Law; and (iii) to such Employees or other persons as it determines such ministerial tasks as it deems appropriate. In the event of any delegation described in the preceding sentence, the term “Administrator” will include the person or persons so delegated to the extent of such delegation.
“Affiliate”: Any corporation or other entity that stands in a relationship to the Company that would result in the Company and such corporation or other entity being treated as one employer under Section 414(b) and Section 414(c) of the Code.
“Award”: Any or a combination of the following:
(i) Stock Options.
(ii) SARs.
(iii) Restricted Stock.
(iv) Unrestricted Stock.
(v) Stock Units, including Restricted Stock Units.
(vi) Performance Awards.
(vii) Cash Awards.
(viii) Awards (other than Awards described in (i) through (vii) above) that are convertible into or otherwise based on Stock.
“Board”: The Board of Directors of the Company.
“Cash Award”: An Award denominated in cash that has a performance period of greater than (12) months.
“Cause”: In the case of any Participant who is party to an employment or severance-benefit agreement that contains a definition of “Cause,” the definition set forth in such agreement will apply with respect to such Participant under the Plan for so long as such agreement is in effect. In the case of any other Participant, “Cause” will mean, as determined by the Administrator in its reasonable judgment, (i) a substantial failure of the Participant to perform the Participant’s duties and responsibilities to the Company or subsidiaries or substantial negligence in the performance of such duties and responsibilities; (ii) the commission by the Participant of a felony or a crime involving moral turpitude; (iii) the commission by the Participant of theft, fraud, embezzlement, material breach of trust or any material act of dishonesty involving the Company or any of its subsidiaries; (iv) a significant violation by the Participant of the code of conduct of the Company or its subsidiaries of any material policy of the Company or its subsidiaries, or of any statutory or common law duty of loyalty to the Company or its subsidiaries; (v) material breach of any of the terms of the Plan or any Award made under the Plan, or of the terms of any other agreement between the Company or subsidiaries and the Participant; or (vi) other conduct by the Participant that could be expected to be harmful to the business, interests or reputation of the Company.

“Code”: The U.S. Internal Revenue Code of 1986, as from time to time amended and in effect, or any successor statute as from time to time in effect.
“Compensation Committee”: The Compensation Committee of the Board.
“Company”: Bright Horizons Family Solutions Inc.
“Covered Transaction”: Any of (i) a consolidation, merger, or similar transaction or series of related transactions, including a sale or other disposition of stock, in which the Company is not the surviving corporation or which results in the acquisition of all or substantially all of the Company’s then outstanding common stock by a single person or entity or by a group of persons and/or entities acting in concert, (ii) a sale or transfer of all or substantially all the Company’s assets, or (iii) a dissolution or liquidation of the Company. Where a Covered Transaction involves a tender offer that is reasonably expected to be followed by a merger described in clause (i) (as determined by the Administrator), the Covered Transaction will be deemed to have occurred upon consummation of the tender offer.
“Date of Adoption”: January 11, 2013.
“Disability”: In the case of any Participant who is a party to an employment or severance-benefit agreement that contains a definition of “Disability,” the definition set forth in such agreement shall apply with respect to such Participant under the Plan for so long as such agreement is in effect. In the case of any other Participant, “Disability” shall mean a disability that would entitle a Participant to long-term disability benefits under the Company’s long-term disability plan to which the Participant participates.
“Employee”: Any person who is employed by the Company or an Affiliate.
“Employment”: A Participant’s employment or other service relationship with the Company and its Affiliates. Employment will be deemed to continue, unless the Administrator expressly provides otherwise, so long as the Participant is employed by, or otherwise is providing services in a capacity described in Section 5 to the Company or an Affiliate. If a Participant’s employment or other service relationship is with an Affiliate and that entity ceases to be an Affiliate, the Participant’s Employment will be deemed to have terminated when the entity ceases to be an Affiliate unless the Participant transfers Employment to the Company or its remaining Affiliates. Notwithstanding the foregoing and the definition of “Affiliate” above, in construing the provisions of any Award relating to the payment of “nonqualified deferred compensation” (subject to Section 409A) upon a termination or cessation of Employment, references to termination or cessation of employment, separation from service, retirement or similar or correlative terms will be construed to require a “separation from service” (as that term is defined in Section 1.409A-1(h) of the Treasury Regulations) from the Company and from all other corporations and trades or businesses, if any, that would be treated as a single “service recipient” with the Company under Section 1.409A-1(h)(3) of the Treasury Regulations. The Company may, but need not, elect in writing, subject to the applicable limitations under Section 409A, any of the special elective rules prescribed in Section 1.409A-1(h) of the Treasury Regulations for purposes of determining whether a “separation from service” has occurred. Any such written election will be deemed a part of the Plan.
“ISO”: A Stock Option intended to be an “incentive stock option” within the meaning of Section 422. Each Stock Option granted pursuant to the Plan will be treated as providing by its terms that it is to be an NSO unless, as of the date of grant, it is expressly designated as an ISO.
 
“NSO”: A Stock Option that is not intended to be an “incentive stock option” within the meaning of Section 422.
“Participant”: A person who is granted an Award under the Plan.

“Performance Award”: An Award subject to Performance Criteria. The Administrator in its discretion may grant Performance Awards that are intended to qualify for the performance-based compensation exception under Section 162(m) and Performance Awards that are not intended so to qualify.
“Performance Criteria”: Specified criteria, other than the mere continuation of Employment or the mere passage of time, the satisfaction of which is a condition for the grant, exercisability, vesting or full enjoyment of an Award. For purposes of Awards that are intended to qualify for the performance-based compensation exception under Section 162(m), a Performance Criterion will mean an objectively determinable measure or objectively determinable measures of performance relating to any or any combination of the following (measured either absolutely or comparatively (including, without limitation, by reference to an index or indices or the performance of one or more companies) and determined either on a consolidated basis or, as the context permits, on a divisional, subsidiary, line of business, project or geographical basis or in combinations thereof and subject to such adjustments, if any, as the Administrator specifies, consistent with the requirements of Section 162(m)): sales; revenues; assets; expenses; earnings before or after deduction for all or any portion of interest, taxes, depreciation, amortization or equity expense whether or not on a continuing operations or an aggregate or per share basis; return on equity, investment, capital, capital employed or assets; one or more operating ratios; operating income or profit, including on an after-tax basis; net income; borrowing levels, leverage ratios or credit rating; market share; capital expenditures; cash flow; stock price; stockholder return; sales of particular services; customer acquisition or retention; acquisitions and divestitures (in whole or in part); joint ventures and strategic alliances; spin-offs, split-ups and the like; reorganizations; center openings (including openings in new markets); new service or product lines; or recapitalizations, restructurings, financings (issuance of debt or equity) or refinancings. A Performance Criterion and any targets with respect thereto determined by the Administrator need not be based upon an increase, a positive or improved result or avoidance of loss. Any Performance Criteria that are financial metrics may be determined in accordance with United States Generally Accepted Accounting Principles (“GAAP”) or may be adjusted when established (or to the extent permitted under Section 162(m) at any time thereafter) to include or exclude any items otherwise includable or excludable under GAAP. Provided that the Administrator has specified at least one Performance Criteria intended to qualify an Award as performance-based under Section 162(m), the Administrator may specify other performance goals or criteria (whether or not listed herein) as a basis for its exercise of negative discretion with respect to the Award. To the extent consistent with the requirements for satisfying the performance-based compensation exception under Section 162(m), the Administrator may provide in the case of any Award intended to qualify for such exception that one or more of the Performance Criteria applicable to such Award will be adjusted in an objectively determinable manner to reflect events (for example, but without limitation, the impact of charges for restructurings, discontinued operations, mergers, acquisitions, and other unusual or infrequently occurring items, and the cumulative effects of tax or accounting changes, each as defined by U.S. generally accepted accounting principles) occurring during the performance period that affect the applicable Performance Criterion or Criteria.
“Plan”: The Bright Horizons Family Solutions Inc. 2012 Omnibus Long-Term Incentive Plan, as from time to time amended and in effect.
“Restricted Stock”: Stock subject to restrictions requiring that it be redelivered or offered for sale to the Company if specified conditions are not satisfied.
“Restricted Stock Unit”: A Stock Unit that is, or as to which the delivery of Stock or cash in lieu of Stock is, subject to the satisfaction of specified performance or other vesting conditions.
“Retirement”: A Participant’s (i) retirement other than by reason of Disability from service with the Company upon or after attaining age sixty-five (65) or (ii) earlier retirement other than by reason of Disability from service with the Company with the express consent of the Company at or before the time of such retirement, provided that the Participant has attained the age of fifty (50) and has been employed by the Company or its subsidiaries for at least fifteen (15) years at the time of such retirement.

“SAR”: A right entitling the holder upon exercise to receive an amount (payable in cash or in shares of Stock of equivalent value) equal to the excess of the fair market value of the shares of Stock subject to the right over the base value from which appreciation under the SAR is to be measured.
“Section 409A”: Section 409A of the Code.
“Section 422”: Section 422 of the Code.
“Section 162(m)”: Section 162(m) of the Code.
“Substitute Awards”: Awards of an acquired company that are converted, replaced or adjusted in connection with the acquisition.
“Stock”: Common stock of the Company, par value $0.001 per share.
“Stock Option”: An option entitling the holder to acquire shares of Stock upon payment of the exercise price.
“Stock Unit”: An unfunded and unsecured promise, denominated in shares of Stock, to deliver Stock or cash measured by the value of Stock in the future.
“Unrestricted Stock”: Stock not subject to any restrictions under the terms of the Award.

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