**SECOND      AMENDMENT TO MASTER REPURCHASE AGREEMENT**

**(VFCC/NorthStar)**

**THIS      SECOND AMENDMENT TO MASTER REPURCHASE AGREEMENT**
**NRFC      WA HOLDINGS, LLC**
**NRFC      WA HOLDINGS II, LLC**
**NRFC      WA HOLDINGS VII, LLC**
**NRFC      WA HOLDINGS X, LLC**
**NRFC      WA HOLDINGS XI, LLC**
**NRFC      WA HOLDINGS XII, LLC**
**VARIABLE      FUNDING CAPITAL COMPANY LLC**
**WACHOVIA      BANK, NATIONAL ASSOCIATION**
**WACHOVIA      CAPITAL MARKETS, LLC**
**NORTHSTAR      REALTY FINANCE CORP**
**NORTHSTAR      REALTY FINANCE L.P.**
**NRFC      SUB-REIT CORP.**
**WELLS      FARGO BANK, NATIONAL ASSOCIATION**

**R**

**E**

**C**

**I**

**T**

**A**

**L**

**S**

**WHEREAS**

**WHEREAS**

**WHEREAS**

**WHEREAS**

----

**NOW      THEREFORE**

**Section      **
**1**
**.**
**Amendment      to Repurchase Agreement**
**.      **

**Section      **
**2**
**.**
**[**
**Reserved**
**].**

**Section      **
**3**
**.**
**Repurchase      Documents in Full Force and Effect as Modified**
**.**

**Section      **
**4**
**.**
**Representations**
**.**

----

**Section      **
**5**
**.**
**Conditions      Precedent**
**.**

**Section      **
**6**
**.**
**Miscellaneous**
**.**

----

**THIS      AMENDMENT**
**NO. 2      AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT NO. 2      SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS      OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAWS      PROVISIONS.**

**[REMAINDER      OF PAGE INTENTIONALLY LEFT BLANK]**

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**IN      WITNESS WHEREOF,**

|                          |                                                                                                                                                                                                       |                                                  |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|
| **THE              SELLERS:** | **NRFC              WA              HOLDINGS, LLC**,              a                Delaware limited liability company                                                                                      |
|                     |                                                                                                                                                                                                  |                                             |
|                          | By:                                                                                                                                                                                              | /s/              Albert Tylis     |
|                          | Name: Albert                Tylis    Title: Executive                Vice President, General  Counsel                and                Assistant Secretary   |

|   | Address                  for Notices:                    |                                    |
|--------|----------------------------------------------------------|-----------------------------------------|
|   |                                                     |                                    |
|   | NRFC                  WA Holdings, LLC                   |
|   | c/o                  NorthStar Realty Finance Corp.      |
|   | 399                  Park Avenue, 18th floor             |
|   | New                  York, New York 10022                |
|   | Attention:                                               | Andy                  Richardson        |
|   |                                                     | Al                  Tylis, Esq.         |
|   |                                                     | Daniel                  R. Gilbert      |
|   | Facsimile                  No.:                          | (212)                  547-2700         |
|   | Confirmation                  No.:                       | (212)                  547-2650         |
|   |                                                     | (212)                  547-2641         |
|   |                                                     | (212)                  547-2680         |
|   |                                                     |                                    |
|   | with                  a copy to:                         |                                    |
|   |                                                     |                                    |
|   | Paul                  Hastings Janofsky & Walker LLP |
|   | 75                  East 55th                  Street    |                                    |
|   | New                  York, New York                      | 10022                                   |
|   | Attention:                                               | Robert                  J. Grados, Esq. |
|   | Facsimile                  No.:                          | (212)                  230-7830         |
|   | Confirmation                  No.:                       | (212)                  318-6923         |
|   |                                                     |                                    |

----

|                                             |                                                                                                                                                                                                       |                                                  |
|---------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|
|  **THE              SELLERS (cont.):** | **NRFC              WA              HOLDINGS****II**,**LLC**,              a                Delaware limited liability company                                                                             |
|                                   |                                                                                                                                                                                                  |                                             |
|                                        | By:                                                                                                                                                                                              | /s/              Albert Tylis     |
|                                        | Name: Albert                Tylis    Title: Executive                Vice President, General  Counsel                and                Assistant Secretary   |

|   | Address                    for Notices:                    |                                      |
|--------|------------------------------------------------------------|-------------------------------------------|
|   |                                                       |                                      |
|   | NRFC                    WA Holdings II, LLC                |
|   | c/o                    NorthStar Realty Finance Corp.      |
|   | 399                    Park Avenue, 18th floor             |
|   | New                    York, New York 10022                |
|   | Attention:                                                 | Andy                    Richardson        |
|   |                                                       | Al                    Tylis, Esq.         |
|   |                                                       | Daniel                    R. Gilbert      |
|   | Facsimile                    No.:                          | (212)                    547-2700         |
|   | Confirmation                    No.:                       | (212)                    547-2650         |
|   |                                                       | (212)                    547-2641         |
|   |                                                       | (212)                    547-2680         |
|   |                                                       |                                      |
|   | with                    a copy to:                         |                                      |
|   |                                                       |                                      |
|   | Paul                    Hastings Janofsky & Walker LLP |
|   | 75                    East 55th                    Street  |                                      |
|   | New                    York, New York                      | 10022                                     |
|   | Attention:                                                 | Robert                    J. Grados, Esq. |
|   | Facsimile                    No.:                          | (212)                    230-7830         |
|   | Confirmation                    No.:                       | (212)                    318-6923         |
|   |                                                       |                                      |

----

|                                               |                                                                                                                                                                                 |                                                    |
|-----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|
|  **THE                SELLERS (cont.):** | **NRFC                WA                HOLDINGS VII, LLC**,                a                  Delaware limited liability company                                                    |
|                                     |                                                                                                                                                                            |                                               |
|                                          | By:                                                                                                                                                                        | /s/                Albert Tylis     |
|                                          | Name: Albert                  Tylis    Title: Executive                  Vice President, General  Counseland                  Assistant Secretary |

|   | Address                        for Notices:                       |                                          |
|--------|-------------------------------------------------------------------|-----------------------------------------------|
|   |                                                              |                                          |
|   | NRFC                        WA Holdings VII, LLC                  |
|   | c/o                        NorthStar Realty Finance Corp.         |
|   | 399                        Park Avenue, 18th floor                |
|   | New                        York, New York 10022                   |
|   | Attention:                                                        | Andy                        Richardson        |
|   |                                                              | Al                        Tylis, Esq.         |
|   |                                                              | Daniel                        R. Gilbert      |
|   | Facsimile                        No.:                             | (212)                        547-2700         |
|   | Confirmation                        No.:                          | (212)                        547-2650         |
|   |                                                              | (212)                        547-2641         |
|   |                                                              | (212)                        547-2680         |
|   |                                                              |                                          |
|   | with                        a copy to:                            |                                          |
|   |                                                              |                                          |
|   | Paul                        Hastings Janofsky & Walker LLP    |
|   | 75                        East 55th                        Street |                                          |
|   | New                        York, New York                         | 10022                                         |
|   | Attention:                                                        | Robert                        J. Grados, Esq. |
|   | Facsimile                        No.:                             | (212)                        230-7830         |
|   | Confirmation                        No.:                          | (212)                        318-6923         |
|   |                                                              |                                          |

----

|                                               |                                                                                                                                                                                                   |                                                    |
|-----------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|
|  **THE                SELLERS (cont.):** | **NRFC                WA                HOLDINGS X, LLC**,                a                  Delaware limited liability company                                                                        |
|                                     |                                                                                                                                                                                              |                                               |
|                                          | By:                                                                                                                                                                                          | /s/                Albert Tylis     |
|                                          | Name: Albert                  Tylis    Title: Executive                  Vice President, General  Counsel                  and                  Assistant Secretary |

|   | Address                    for Notices:                    |                                      |
|--------|------------------------------------------------------------|-------------------------------------------|
|   |                                                       |                                      |
|   | NRFC                    WA Holdings X, LLC                 |
|   | c/o                    NorthStar Realty Finance Corp.      |
|   | 399                    Park Avenue, 18th floor             |
|   | New                    York, New York 10022                |
|   | Attention:                                                 | Andy                    Richardson        |
|   |                                                       | Al                    Tylis, Esq.         |
|   |                                                       | Daniel                    R. Gilbert      |
|   | Facsimile                    No.:                          | (212)                    547-2700         |
|   | Confirmation                    No.:                       | (212)                    547-2650         |
|   |                                                       | (212)                    547-2641         |
|   |                                                       | (212)                    547-2680         |
|   |                                                       |                                      |
|   | with                    a copy to:                         |                                      |
|   |                                                       |                                      |
|   | Paul                    Hastings Janofsky & Walker LLP |
|   | 75                    East 55th                    Street  |                                      |
|   | New                    York, New York                      | 10022                                     |
|   | Attention:                                                 | Robert                    J. Grados, Esq. |
|   | Facsimile                    No.:                          | (212)                    230-7830         |
|   | Confirmation                    No.:                       | (212)                    318-6923         |
|   |                                                       |                                      |

----

|                                                 |                                                                                                                                                                                                           |                                                      |
|-------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|
|  **THE                  SELLERS (cont.):** | **NRFC                  WA                  HOLDINGS XI, LLC**,                  a                    Delaware limited liability company                                                                       |
|                                       |                                                                                                                                                                                                      |                                                 |
|                                            | By:                                                                                                                                                                                                  | /s/                  Albert Tylis     |
|                                            | Name: Albert                    Tylis    Title: Executive                    Vice President, General  Counsel                    and                    Assistant Secretary |

|   | Address                        for Notices:                       |                                          |
|--------|-------------------------------------------------------------------|-----------------------------------------------|
|   |                                                              |                                          |
|   | NRFC                        WA Holdings XI, LLC                   |
|   | c/o                        NorthStar Realty Finance Corp.         |
|   | 399                        Park Avenue, 18th floor                |
|   | New                        York, New York 10022                   |
|   | Attention:                                                        | Andy                        Richardson        |
|   |                                                              | Al                        Tylis, Esq.         |
|   |                                                              | Daniel                        R. Gilbert      |
|   | Facsimile                        No.:                             | (212)                        547-2700         |
|   | Confirmation                        No.:                          | (212)                        547-2650         |
|   |                                                              | (212)                        547-2641         |
|   |                                                              | (212)                        547-2680         |
|   |                                                              |                                          |
|   | with                        a copy to:                            |                                          |
|   |                                                              |                                          |
|   | Paul                        Hastings Janofsky & Walker LLP    |
|   | 75                        East 55th                        Street |                                          |
|   | New                        York, New York                         | 10022                                         |
|   | Attention:                                                        | Robert                        J. Grados, Esq. |
|   | Facsimile                        No.:                             | (212)                        230-7830         |
|   | Confirmation                        No.:                          | (212)                        318-6923         |

----

|                                                   |                                                                                                                                                                                                   |                                                        |
|---------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------|
|  **THE                    SELLERS (cont.):** | **NRFC                    WA                    HOLDINGS XII, LLC**,                    a                      Delaware limited liability company                                                      |
|                                         |                                                                                                                                                                                              |                                                   |
|                                              | By:                                                                                                                                                                                          | /s/                    Albert Tylis     |
|                                              | Name: Albert                      Tylis    Title: Executive                      Vice President, General  Counsel and                      Assistant Secretary |

|   | Address                      for Notices:                     |                                        |
|--------|---------------------------------------------------------------|---------------------------------------------|
|   |                                                          |                                        |
|   | NRFC                      WA Holdings XII, LLC                |
|   | c/o                      NorthStar Realty Finance Corp.       |
|   | 399                      Park Avenue, 18th floor              |
|   | New                      York, New York 10022                 |
|   | Attention:                                                    | Andy                      Richardson        |
|   |                                                          | Al                      Tylis, Esq.         |
|   |                                                          | Daniel                      R. Gilbert      |
|   | Facsimile                      No.:                           | (212)                      547-2700         |
|   | Confirmation                      No.:                        | (212)                      547-2650         |
|   |                                                          | (212)                      547-2641         |
|   |                                                          | (212)                      547-2680         |
|   |                                                          |                                        |
|   | with                      a copy to:                          |                                        |
|   |                                                          |                                        |
|   | Paul                      Hastings Janofsky & Walker LLP  |
|   | 75                      East 55th                      Street |                                        |
|   | New                      York, New York                       | 10022                                       |
|   | Attention:                                                    | Robert                      J. Grados, Esq. |
|   | Facsimile                      No.:                           | (212)                      230-7830         |
|   | Confirmation                      No.:                        | (212)                      318-6923         |

----

|                               |                                                                                                               |                                                                 |
|------------------------------------|--------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|
| **THE                PURCHASERS:** | **VARIABLE                FUNDING CAPITAL COMPANY LLC****,**as                  a Purchaser                        |
|                               |                By:  Wachovia                Capital Markets, LLC,as                attorney-in-fact |
|                               |                                                                                                               |                                                                 |
|                                    | By:                                                                                                      |  /s/ Douglas              R. Wilson, Sr.    |
|                               | Name:                Douglas R. Wilson, Sr.    Title:                Director   |

|   | Variable                  Funding Capital Company LLC   |
|--------|---------------------------------------------------------|
|   | c/o                  Wachovia Capital Markets, LLC      |
|   | One                  Wachovia Center, Mail Code: TW10   |
|   | 301                  South College Street               |
|   | Charlotte,                  North Carolina 28288        |
|   | Attention:                                              | Conduit                  Administration |
|   | Facsimile                  No.:                         | (704)                  383-9579 |
|   | Confirmation                  No.:                      | (704)                  374-2520 |
|   |                                                    |   |
|   | with                  a copy to:                        |   |
|   |                                                    |   |
|   | Wachovia                  Capital Markets, LLC          |
|   | One                  Wachovia Center, Mail Code: NC0166 |
|   | 301                  South College Street               |
|   | Charlotte,                  North Carolina 28288        |
|   | Attention:                                              | Lee                  Goins |
|   | Facsimile                  No.:                         | (704)                  715-0066 |
|   | Confirmation                  No.:                      | (704)                  715-7655 |

----

|                                       |                                                                                                                                                 |                                                            |
|--------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|
| **THE                PURCHASERS (cont.):** | **WACHOVIA                BANK, NATIONAL ASSOCIATION,**as                the Swingline Purchaser                                                |
|                                            | By:                                                                                                                                        |  /s/              H. Lee Goins III     |
|                                       | Name:                 H.                Lee Goins III    Title:                 Vice President     |

|   | Wachovia                  Bank, National Association    |
|--------|---------------------------------------------------------|
|   | One                  Wachovia Center, Mail Code: NC0166 |
|   | 301                  South College Street               |
|   | Charlotte,                  North Carolina 28288        |
|   | Attention:                                              | Lee                  Goins |
|   | Facsimile                  No.:                         | (704)                  715-0066 |
|   | Confirmation                  No.:                      | (704)                  715-7655 |
|   |                                                    |   |

----

|                                         |                                                                                                                          |                                      |
|----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|
|  **THE              DEAL AGENT:**  | **WACHOVIA              CAPITAL MARKETS, LLC**                                                                                |
|                                    |                                                                                                                     |                                 |
|                                              | By:                                                                                                                 |  /s/              Christina Hatfield |
|                                         | Name: Christina                HatfieldTitle:   Assistant                Vice President    |

|   | Wachovia                    Capital Markets, LLC          |
|--------|-----------------------------------------------------------|
|   | One                    Wachovia Center, Mail Code: NC0166 |
|   | 301                    South College Street               |
|   | Charlotte,                    North Carolina 28288        |
|   | Attention:                                                | Lee                    Goins |
|   | Facsimile                    No.:                         | (704)                    715-0066 |
|   | Confirmation                    No.:                      | (704)                    715-7655 |

----

|                                   |                                                                                                                                      |                          |
|----------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|
|  **THE              GUARANTORS:** | **NORTHSTAR              REALTY FINANCE CORP.**,** **a                Maryland corporation                                           |
|                              |                                                                                                                                 |                     |
|                                        | By:                                                                                                                             | /s/              Albert Tylis |
|                                   | Name:                Albert TylisTitle:                Executive Vice President, General Counsel and                  Assistant Secretary |

|   | NorthStar                  Realty Finance Corp.          |
|--------|----------------------------------------------------------|
|   | 399                  Park Avenue, 18th floor             |
|   | New                  York, New York 10022                |
|   | Attention:                                               | Andy                  Richardson |
|   |                                                     | Al                  Tylis, Esq. |
|   |                                                     | Daniel                  R. Gilbert |
|   | Facsimile                  No.:                          | (212)                  547-2700 |
|   | Confirmation                  No.:                       | (212)                  547-2650 |
|   |                                                     | (212)                  547-2641 |
|   |                                                     | (212)                  547-2680 |
|   |                                                     |   |
|   | with                  a copy to:                         |   |
|   |                                                     |   |
|   | Paul                  Hastings Janofsky & Walker LLP |
|   | 75                  East 55th                  Street    |   |
|   | New                  York, New York                      | 10022 |
|   | Attention:                                               | Robert                  J. Grados, Esq. |
|   | Facsimile                  No.:                          | (212)                  230-7830 |
|   | Confirmation                  No.:                       | (212)                  318-6923 |

----

|                                           |                                                                                                                                                               |                                                                                                      |
|------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|
|  **THE              GUARANTORS (cont.):** |  **NORTHSTAR              REALTY FINANCE L.P.**,** **a                Delaware limited partnership,                                                      |
|                                           |                                                                                                                                                               |                                                                                                      |
|                                           | By:                                                                                                                                                                | NorthStar                Realty Finance Corp., a Maryland corporation, its general                partner |
|                                      |                                                                                                                                                          |                                                                                                 |
|                                                | By:                                                                                                                                                      | /s/ Albert Tylis                                                                                          |
|                                           | Name:                  Albert TylisTitle:                  Executive Vice President, General Counsel and                    Assistant                    Secretary |

|   | NorthStar                  Realty Finance L.P.           |
|--------|----------------------------------------------------------|
|   | c/o                  NorthStar Realty Finance Corp.      |
|   | 399                  Park Avenue, 18th floor             |
|   | New                  York, New York 10022                |
|   | Attention:                                               | Andy                  Richardson |
|   |                                                     | Al                  Tylis, Esq. |
|   |                                                     | Daniel                  R. Gilbert |
|   | Facsimile                  No.:                          | (212)                  547-2700 |
|   | Confirmation                  No.:                       | (212)                  547-2650 |
|   |                                                     | (212)                  547-2641 |
|   |                                                     | (212)                  547-2680 |
|   |                                                     |   |
|   | with                  a copy to:                         |   |
|   |                                                     |   |
|   | Paul                  Hastings Janofsky & Walker LLP |
|   | 75                  East 55th                  Street    |   |
|   | New                  York, New York                      | 10022 |
|   | Attention:                                               | Robert                  J. Grados, Esq. |
|   | Facsimile                  No.:                          | (212)                  230-7830 |
|   | Confirmation                  No.:                       | (212)                  318-6923 |

----

**Acknowledged and Agreed to:**

|                                      |                                                                                                                                                               |             |
|-------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------|
|  **THE              PLEDGOR:**  |  **NRFC              SUB-REIT CORP.**,              a                Maryland corporation                                                                     |
|                                 |                                                                                                                                                          |        |
|                                      | By:                                                                                                                                                      | /s/ Albert Tylis |
|                                      | Name:                  Albert TylisTitle:                  Executive Vice President, General Counsel and                    Assistant                    Secretary |

|   | NRFC                  Sub-REIT Corp.                     |
|--------|----------------------------------------------------------|
|   |                                                     |
|   | c/o                  NorthStar Realty Finance Corp.      |
|   | 399                  Park Avenue, 18th floor             |
|   | New                  York, New York 10022                |
|   | Attention:                                               | Andy                  Richardson |
|   |                                                     | Al                  Tylis, Esq. |
|   |                                                     | Daniel                  R. Gilbert |
|   | Facsimile                  No.:                          | (212)                  547-2700 |
|   | Confirmation                  No.:                       | (212)                  547-2650 |
|   |                                                     | (212)                  547-2641 |
|   |                                                     | (212)                  547-2680 |
|   |                                                     |   |
|   | with                  a copy to:                         |   |
|   |                                                     |   |
|   | Paul                  Hastings Janofsky & Walker LLP |
|   | 75                  East 55th                  Street    |   |
|   | New                  York, New York                      | 10022 |
|   | Attention:                                               | Robert                  J. Grados, Esq. |
|   | Facsimile                  No.:                          | (212)                  230-7830 |
|   | Confirmation                  No.:                       | (212)                  318-6923 |

----

|                                        |                                                                                                          |                                      |
|---------------------------------------------|---------------------------------------------------------------------------------------------------------------|-------------------------------------------|
|  **THE              CUSTODIAN:**  | **WELLS              FARGO BANK, NATIONAL ASSOCIATION**                                                       |
|                                   |                                                                                                     |                                 |
|                                             | By:                                                                                                 |  /s/              Christina Hatfield |
|                                        | Name: Christina                HatfieldTitle:   Assistant                  Vice President |

|   |                                                    |                                      |
|--------|---------------------------------------------------------|-------------------------------------------|
|   | Wells                  Fargo Bank, National Association |
|   | 1055                  10th Avenue SE                    |                                      |
|   | Minneapolis,                  Minnesota 55414           |
|   | Attention:                                              | Tina                  Hatfield,           |
|   |                                                    | Assistant                  Vice President |
|   | Facsimile:                  No:                         | (612)                  466-5416           |
|   | Confirmation                  No:                       | (612)                  466-5252           |

----