Document:

exv10w1

EXHIBIT 10.1

FORM OF ADVISORY AGREEMENT

AMONG

NORTHSTAR SENIOR CARE TRUST, INC.,

NORTHSTAR SENIOR CARE OPERATING PARTNERSHIP, LP,

NORTHSTAR SENIOR CARE ADVISOR, LLC

AND

NORTHSTAR REALTY FINANCE CORP.

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE 1 - DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 - APPOINTMENT
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 3 - DUTIES OF THE ADVISOR
	 	 	6	 
	 
	 	 	 	 
	3.01 Offering Services
	 	 	6	 
	3.02 Acquisition Services
	 	 	7	 
	3.03 Asset Management Services
	 	 	7	 
	3.04 Accounting and Other Administrative Services
	 	 	8	 
	3.05 Stockholder Services
	 	 	9	 
	3.06 Financing Services
	 	 	9	 
	3.07 Disposition Services
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 4 - AUTHORITY OF ADVISOR
	 	 	10	 
	 
	 	 	 	 
	4.01 Powers of the Advisor
	 	 	10	 
	4.02 Approval by the Board
	 	 	10	 
	4.03 Modification or Revocation of Authority of Advisor
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 5 - BANK ACCOUNTS
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 6 - RECORDS AND ACCESS
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 7 - LIMITATION ON ACTIVITIES
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 8 - FEES
	 	 	11	 
	 
	 	 	 	 
	8.01 Acquisition Fees
	 	 	11	 
	8.02 Asset Management Fees
	 	 	12	 
	8.03 Disposition Fees
	 	 	12	 
	8.04 Operating Partnership Interests
	 	 	12	 
	8.05 Changes to Fee Structure
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 9 - EXPENSES
	 	 	12	 
	 
	 	 	 	 
	9.01 General
	 	 	12	 
	9.02 Timing of and Additional Limitations on Reimbursements
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 10 - OTHER SERVICES
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 11 - VOTING AGREEMENT
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 12 - RELATIONSHIP OF ADVISOR AND
COMPANY; OTHER ACTIVITIES OF THE ADVISOR
	 	 	15	 
	 
	 	 	 	 
	12.01 Relationship
	 	 	15	 
	12.02 Time Commitment
	 	 	15	 
	12.03 Investment Opportunities and Allocation
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 13 —THE NORTHSTAR NAME
	 	 	16	 

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	ARTICLE 14 - TERM AND TERMINATION OF THE AGREEMENT
	 	 	16	 
	 
	 	 	 	 
	14.01 Term
	 	 	16	 
	14.02 Termination by the Parties
	 	 	16	 
	14.03 Payments on Termination
and Survival of Certain Rights and Obligations
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 15 - ASSIGNMENT
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 16 - INDEMNIFICATION AND LIMITATION OF LIABILITY
	 	 	17	 
	 
	 	 	 	 
	16.01 Indemnification
	 	 	17	 
	16.02 Limitation on Indemnification
	 	 	18	 
	16.03 Limitation on Payment of Expenses
	 	 	18	 
	16.04 Indemnification by Advisor
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 17 - NON-SOLICITATION
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 18 - MISCELLANEOUS
	 	 	19	 
	 
	 	 	 	 
	18.01 Notices
	 	 	19	 
	18.02 Modification
	 	 	19	 
	18.03 Severability
	 	 	19	 
	18.04 Construction
	 	 	19	 
	18.05 Entire Agreement
	 	 	19	 
	18.06 Waiver
	 	 	20	 
	18.07 Gender
	 	 	20	 
	18.08 Titles Not to Affect Interpretation
	 	 	20	 
	18.09 Counterparts
	 	 	20	 

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FORM
OF ADVISORY AGREEMENT

     THIS ADVISORY AGREEMENT (this “Agreement”), dated as of the      , 2011, and
effective as of the date that the Registration Statement (as defined below) is declared effective
by the Securities and Exchange Commission (the “Effective Date”), is entered into by and
among NorthStar Senior Care Trust, Inc., a Maryland corporation (the “Company”), NorthStar
Senior Care Operating Partnership, LP, a Delaware limited partnership (the “Operating
Partnership”), NorthStar Senior Care Advisor, LLC, a Delaware limited liability company (the
“Advisor”) and, solely in connection with the obligations set forth in Section 12-03 and
Article 13, NorthStar Realty Finance Corp., a Maryland corporation (“NorthStar”).
Capitalized terms used herein shall have the meanings ascribed to them in Section 1 below.

W I T N E S S E T H

     WHEREAS, the Company intends to qualify as a REIT, and to invest its funds in investments
permitted by the terms of Sections 856 through 860 of the Code;

     WHEREAS, the Company is the general partner of the Operating Partnership and intends to
conduct all of its business and make all or substantially all Investments through the Operating
Partnership;

     WHEREAS, the Company and the Operating Partnership desire to avail themselves of the
knowledge, experience, sources of information, advice, assistance and certain facilities available
to the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set
forth, on behalf of, and subject to the supervision of, the Board of the Company, all as provided
herein; and

     WHEREAS, the Advisor is willing to undertake to render such services, subject to the
supervision of the Board, on the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
contained herein, the parties hereto agree as follows:

ARTICLE 1

DEFINITIONS

     As used in this Agreement, the following terms shall have the meanings specified below:

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

     Acquisition Fees means the fee payable to the Advisor pursuant to Section 8.01 plus
all other fees and commissions, excluding Acquisition Expenses, paid by any Person to any Person in
connection with making or investing in any Investments or the purchase, development or construction
of any Property by the Company. Included in the computation of such fees or commissions shall be
any real estate commission, selection fee, development fee, construction fee, nonrecurring
management fee, loan fees or points or any fee of a similar nature, however designated. Excluded
shall be development fees and construction fees paid to Persons not Affiliated with the Advisor in
connection with the actual development and construction of a Property.

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     Advisor means (i) NorthStar Senior Care Advisor, LLC, a Delaware limited liability
company, or (ii) any successor advisor to the Company.

     Affiliate or Affiliated means, with respect to any Person, (i) any Person directly or
indirectly controlling, controlled by, or under common control with such other Person; (ii) any
Person directly or indirectly owning, controlling, or holding with the power to vote 10.0% or more
of the outstanding voting securities of such other Person; (iii) any legal entity for which such
Person acts as an executive officer, director, trustee, or general partner; (iv) any Person 10.0%
or more of whose outstanding voting securities are directly or indirectly owned, controlled, or
held, with power to vote, by such other Person; and (v) any executive officer, director, trustee,
or general partner of such other Person. An entity shall not be deemed to control or be under
common control with a program sponsored by the sponsor of the Company unless (A) the entity owns
10.0% or more of the voting equity interests of such program or (B) a majority of the Board (or
equivalent governing body) of such program is composed of Affiliates of the entity.

     Asset Management Fee means the fees payable to the Advisor pursuant to Section 8.02.

     Average Invested Assets means, for a specified period, the average of the aggregate
book value of the assets of the Company invested, directly or indirectly, in Investments before
reserves for depreciation or bad debts or other similar non-cash reserves, computed by taking the
average of such values at the end of each month during such period.

     Board means the board of directors of the Company, as of any particular time.

     Bylaws means the bylaws of the Company, as amended from time to time.

     Cause means with respect to the termination of this Agreement, fraud, criminal
conduct, misconduct, negligence or breach of fiduciary duty by the Advisor, or a material breach of
this Agreement by the Advisor.

     Charter means the articles of incorporation of the Company, as amended from time to
time.

     Code means the Internal Revenue Code of 1986, as amended from time to time, or any
successor statute thereto. Reference to any provision of the Code shall mean such provision as in
effect from time to time, as the same may be amended, and any successor provision thereto, as
interpreted by any applicable regulations as in effect from time to time.

     Company means NorthStar Senior Care Trust, Inc., a corporation organized under the
laws of the State of Maryland.

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

     Cost of Investments means the sum of (i) with respect to the acquisition or
origination of a Property, Loan or other Permitted Investment to be wholly owned, directly or
indirectly, by the Company, the amount actually paid or allocated to fund the acquisition,
origination, development, construction or improvement of the Property, Loan or other Permitted
Investment, inclusive of expenses associated with such Property, Loan or other Permitted Investment
and the amount of any debt associated with, or used to fund the investment in, such Property, Loan
or other Permitted Investment and (ii) with respect to the acquisition or origination of a
Property, Loan or other Permitted Investment through any Joint Venture, the portion of the amount
actually paid or allocated to fund the acquisition, origination, development, construction or
improvement of the Property, Loan or other Permitted Investment, inclusive of expenses associated
with such Property, Loan or other Permitted Investment and expenses of the Joint Venture, plus the
amount of any debt associated with, or used to fund the investment in, such Property, Loan or other
Permitted Investment that is attributable to the Company’s investment in such Joint Venture.

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     Dealer Manager means NRF Capital Markets, LLC, a Delaware limited liability company,
or such other Person or entity selected by the Board to act as dealer manager for the Offering.

     Disposition Fee means the fees payable to the Advisor pursuant to Section 8.03.

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

     Excess Amount has the meaning set forth in Section 9.02.

     Expense Year has the meaning set forth in Section 9.02.

     FINRA means the Financial Industry Regulatory Authority, Inc.

     GAAP means generally accepted accounting principles as in effect in the United States
of America from time to time.

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

     Gross Proceeds means the aggregate purchase price of all Shares sold for the account
of the Company through an Offering, without deduction for Organization and Offering Expenses, and
not including Shares sold pursuant to the Company’s distribution reimbursement plan.

     Independent Directors has the meaning set forth in the Articles of Incorporation.

     Initial Public Offering means the initial public offering of Shares registered on
Registration Statement No.          on Form S-11.

     Investments means any investments by the Company or the Operating Partnership in
Properties, Loans and all other investments in which the Company or the Operating Partnership may
acquire an interest, either directly or indirectly, including through ownership interests in a
Joint Venture, pursuant to its Charter, Bylaws and the investment objectives and policies adopted
by the Board from time to time, other than short-term investments acquired for purposes of cash
management.

     Joint Venture means any joint venture, limited liability company, partnership or other
entity pursuant to which the Company is a co-venturer or partner with respect to the ownership of
any Investments.

     Listing means the listing of the Shares on a national securities exchange. Upon such
Listing, the Shares shall be deemed “Listed.”

     Loans means mortgage loans and other types of debt financing investments made by the
Company or the Operating Partnership, either directly or indirectly, including through ownership
interests in a Joint Venture, including, without limitation, mezzanine loans, B-notes, bridge
loans, convertible debt, wraparound mortgage loans, construction mortgage loans, loans on leasehold
interests, and participations in such loans.

     NASAA REIT Guidelines means the Statement of Policy Regarding Real Estate Investment
Trusts published by the North American Securities Administrators Association as in effect on the
Effective Date.

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     Net Income means, for any period, the Company’s total revenues applicable to such
period, less the total expenses applicable to such period excluding additions to reserves for
depreciation, bad debts or other similar non-cash reserves; provided, however, Net Income for
purposes of calculating total allowable Operating Expenses (as defined herein) shall exclude the
gain from the sale of the Company’s assets.

     Offering means any offering of Shares that is registered with the SEC, excluding
Shares offered under any employee benefit plan.

     Operating Expenses means all costs and expenses paid or incurred by the Company, as
determined under GAAP, that in any way are related to the operation of the Company or its business,
including fees paid to the Advisor, but excluding (i) the expenses of raising capital such as
Organization and Offering Expenses, legal, audit, accounting, underwriting, brokerage, listing,
registration, and other fees, printing and other such expenses and taxes incurred in connection
with the issuance, distribution, transfer, registration and Listing, (ii) interest payments, (iii)
taxes, (iv) non-cash expenditures such as depreciation, amortization and bad debt reserves, (v)
incentive fees paid in compliance with the NASAA REIT Guidelines, (vi) Acquisition Fees,
origination fees, Acquisition Expenses, real estate commissions on the resale of real property and
other fees and expenses connected with the acquisition, financing, disposition, management and
ownership of real estate interests, loans or other property (other than commissions on the sale of
assets other than real property), including the costs of foreclosure, insurance premiums, legal
services, maintenance, repair, and improvement of property. The definition of “Operating Expenses”
set forth above is intended to encompass only those expenses which are required to be treated as
“Total Operating Expenses” under the NASAA REIT Guidelines. As a result, and notwithstanding the
definition set forth above, any expense of the Company which is not part of Total Operating
Expenses under the NASAA REIT Guidelines shall not be treated as part of “Operating Expenses” for
purposes hereof.

     Operating Partnership means NorthStar Senior Care Operating Partnership, LP, a
Delaware limited partnership formed to own and operate Investments on behalf of the Company.

     Operating Partnership Agreement means the agreement among the Company, the Advisor and
NorthStar Senior Care OP Holdings, LLC.

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

     Organization and Offering Expenses means any and all costs and expenses incurred by or
on behalf of the Company and to be paid from the Assets in connection with the formation of the
Company and the qualification and registration of an Offering, and the marketing and distribution
of Shares, including, without limitation, total underwriting and brokerage discounts and
commissions (including fees of the underwriters’ attorneys), expenses for printing, engraving and
amending registration statements or supplementing prospectuses, mailing and distributing costs,
salaries of employees while engaged in sales activity, telephone and other telecommunications
costs, all advertising and marketing expenses, charges of transfer agents, registrars, trustees,
escrow holders, depositories and experts and fees, expenses and taxes related to the filing,
registration and qualification of the sale of the Shares under federal and state laws, including
taxes and fees and accountants’ and attorneys’ fees.

     Person means an individual, corporation, partnership, estate, trust (including a trust
qualified under Section 401(a) or 501(c) (17) of the Code), a portion of a trust permanently set
aside for or to be used exclusively for the purposes described in Section 642(c) of the Code,
association, private foundation within the meaning of Section 509(a) of the Code, joint stock
company or other entity, or any government or any agency or political subdivision thereof, and also
includes a group as that term is used for purposes of Section 13(d)(3) of the Securities Exchange
Act of 1934, as amended.

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     Property means any real property or properties transferred or conveyed to the Company
or the Operating Partnership, either directly or indirectly, including through ownership interests
in a Joint Venture.

     Operator means an entity that has been retained to perform and carry out property
management services at one or more of the Properties, excluding persons, entities or independent
contractors retained or hired to perform facility management or other services or tasks at a
particular Property, the costs for which are passed through to and ultimately paid by the tenant at
such Property.

     Registration Statement means the registration statement filed by the Company with the
SEC on Form S-11 (Reg. No.           ), as amended from time to time, in connection with
the Initial Public Offering.

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

     Sale means (i) any transaction or series of transactions whereby: (A) the Company or
the Operating Partnership sells, grants, transfers, conveys, or relinquishes its ownership of any
Investment or portion thereof, including the transfer of any Property that is the subject of a
ground lease, including any event with respect to any Investment that gives rise to a significant
amount of insurance proceeds or condemnation awards, and including the issuance by one of the
Company’s subsidiaries of any asset-backed securities or collateralized debt obligations as part of
a securitization transaction; (B) the Company or the Operating Partnership sells, grants,
transfers, conveys, or relinquishes its ownership of all or substantially all of the interest of
the Company or the Operating Partnership in any Joint Venture in which it is a partner; or (C) any
Joint Venture in which the Company or the Operating Partnership is a co-venturer or partner, sells,
grants, transfers, conveys, or relinquishes its ownership of any Investment or portion thereof,
including any event with respect to any Investment that gives rise to insurance claims or
condemnation awards, and including the issuance by such Joint Venture or one of its subsidiaries of
any asset-backed securities or collateralized debt obligations as part of a securitization
transaction.

     SEC means the United States Securities and Exchange Commission.

     Securities means any Shares, any other stock, shares or other evidences of equity or
beneficial or other interests, voting trust certificates, bonds, debentures, notes or other
evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in
general any instruments commonly known as “securities” or any certificates of interest, shares or
participations in, temporary or interim certificates for, receipts for, guarantees of, or warrants,
options or rights to subscribe to, purchase or acquire, any of the foregoing.

     Shares means shares of common stock of the Company, par value $.01 per share.

     Special OP Units means the separate series of limited partnership interests to be
issued in accordance with Section 8.04.

     Stockholders means the registered holders of the Shares.

     Termination Date means the date of termination of the Agreement determined in
accordance with Article 15 hereof.

     Termination Event means the termination or nonrenewal of this Agreement (i) in
connection with a merger, sale of assets or transaction involving the Company pursuant to which a
majority of the Board then in office are replaced or removed, (ii) by the Advisor for Good Reason
or (iii) by the Company and the Operating Partnership other than for Cause.

5

 

     2%/25% Guidelines means the requirement pursuant to the NASAA REIT Guidelines that, in
any period of four consecutive fiscal quarters, total Operating Expenses not exceed the greater of
2.0% of the Company’s Average Invested Assets during such 12-month period or 25.0% of the Company’s
Net Income over the same 12-month period.

ARTICLE 2

APPOINTMENT

     The Company and the Operating Partnership hereby appoint the Advisor to serve as their advisor
and asset manager on the terms and conditions set forth in this Agreement, and the Advisor hereby
accepts such appointment.

ARTICLE 3

DUTIES OF THE ADVISOR

     The Advisor is responsible for managing, operating, directing and supervising the operations
and administration of the Company and its assets. The Advisor undertakes to use its commercially
reasonable efforts to present to the Company and the Operating Partnership potential investment
opportunities, to make investment decisions on behalf of the Company subject to the limitations in
the Company’s Charter, the direction and oversight of the Board and Section 4.03 hereof, and to
provide the Company with a continuing and suitable investment program consistent with the
investment objectives and policies of the Company as determined and adopted from time to time by
the Board. Subject to the limitations set forth in this Agreement, including Article 4 hereof, and
the continuing and exclusive authority of the Board over the management of the Company, the Advisor
shall, either directly or by engaging an Affiliate or third party, perform the following duties:

     3.01 Offering Services. The Advisor shall manage and supervise:

     (i) Development of the Initial Public Offering and any subsequent Offering approved by
the Board, including the determination of the specific terms of the securities to be offered
by the Company, preparation of all offering and related documents, and obtaining all required
regulatory approvals of such documents;

     (ii) Along with the Dealer Manager, approval of the participating broker-dealers and
negotiation of the related selling agreements;

     (iii) Coordination of the due diligence process relating to participating broker-dealers
and their review of the Registration Statement and other Offering and Company documents;

     (iv) Preparation and approval of all marketing materials contemplated to be used by the
Dealer Manager or others relating to the Offering;

     (v) Along with the Dealer Manager, negotiation and coordination with the transfer agent
for the receipt, collection, processing and acceptance of subscription agreements,
commissions, and other administrative support functions;

     (vi) Creation and implementation of various technology and electronic communications
related to the Offering; and

6

 

     (vii) All other services related to the Offering, other than services that (a) are to be
performed by the Dealer Manager, (b) the Company elects to perform directly or (c) would
require the Advisor to register as a broker-dealer with the SEC, FINRA or any state.

     3.02 Acquisition Services.

The Advisor shall:

     (i) Serve as the Company’s investment and financial advisor and obtain certain market
research and economic and statistical data in connection with the Company’s Investments and
investment objectives and policies;

     (ii) Subject to Article 4 hereof and the investment objectives and policies of the
Company: (a) locate, analyze and select potential Investments; (b) structure and negotiate the
terms and conditions of transactions pursuant to which the Investments will be made; and
(c) acquire Investments on behalf of the Company;

     (iii) Oversee the due diligence process related to prospective Investments;

     (iv) Prepare reports regarding prospective investments which include recommendations and
supporting documentation necessary for the Board to evaluate the prospective investments;

     (v) Obtain reports (which may be prepared by the Advisor or its Affiliates), where
appropriate, concerning the value of prospective Investments of the Company; and

     (vi) Negotiate and execute approved Investments and other transactions.

     3.03 Asset Management Services.

The Advisor shall:

     (i) Investigate, select, and, on behalf of the Company, engage and conduct business with
such Persons as the Advisor deems necessary to the proper performance of its obligations
hereunder, including but not limited to consultants, accountants, lenders, technical advisors,
attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries,
custodians, agents for collection, insurers, insurance agents, developers, construction
companies, Operators and any and all Persons acting in any other capacity deemed by the
Advisor necessary or desirable for the performance of any of the foregoing services;

     (ii) Monitor applicable markets and obtain reports (which may be prepared by the Advisor
or its Affiliates) where appropriate, concerning the value of Investments of the Company;

     (iii) Monitor and evaluate the performance of Investments of the Company, provide daily
management services to the Company and perform and supervise the various management and
operational functions related to the Company’s Investments;

     (iv) Formulate and oversee the implementation of strategies for the administration,
promotion, management, operation, maintenance, improvement, financing and refinancing,
marketing, leasing and disposition of Investments on an overall portfolio basis;

7

 

     (v) Oversee the performance by the Operators of their duties, including collection and
proper deposits of rental payments and payment of Property expenses and maintenance;

     (vi) Conduct periodic on-site property visits to some or all (as the Advisor deems
reasonably necessary) of the Properties to inspect the physical condition of the Properties
and to evaluate the performance of the Operators;

     (vii) Review, analyze and comment upon the operating budgets, capital budgets and leasing
plans prepared and submitted by each Operator and aggregate these property budgets into the
Company’s overall budget;

     (viii) Coordinate and manage relationships between the Company and any Joint Venture
partners; and

     (ix) Provide financial and operational planning services and investment portfolio
management functions.

     3.04 Accounting and Other Administrative Services.

The Advisor shall:

     (i) Manage and perform the various administrative functions necessary for the management
of the day-to-day operations of the Company;

     (ii) From time-to-time, or at any time reasonably requested by the Board, make reports to
the Board on the Advisor’s performance of services to the Company under this Agreement;

     (iii) Coordinate with the Company’s independent accountants and auditors to prepare and
deliver to the Company’s audit committee an annual report covering the Advisor’s compliance
with certain material aspects of this Agreement;

     (iv) Provide or arrange for administrative services and items, legal and other services,
office space, office furnishings, personnel and other overhead items necessary and incidental
to the Company’s business and operations;

     (v) Provide financial and operational planning services and portfolio management
functions;

     (vi) Maintain accounting data and any other information concerning the activities of the
Company as shall be needed to prepare and file all periodic financial reports and returns
required to be filed with the SEC and any other regulatory agency, including annual financial
statements;

     (vii) Maintain all appropriate books and records of the Company;

     (viii) Oversee tax and compliance services and risk management services and coordinate
with appropriate third parties, including independent accountants and other consultants, on
related tax matters;

     (ix) Supervise the performance of such ministerial and administrative functions as may be
necessary in connection with the daily operations of the Company;

8

 

     (x) Provide the Company with all necessary cash management services;

     (xi) Manage and coordinate with the transfer agent the distribution process and payments
to Stockholders;

     (xii) Consult with the officers of the Company and the Board and assist in evaluating and
obtaining adequate insurance coverage based upon risk management determinations;

     (xiii) Provide the officers of the Company and the Board with timely updates related to
the overall regulatory environment affecting the Company, as well as managing compliance with
such matters;

     (xiv) Consult with the officers of the Company and the Board relating to the corporate
governance structure and appropriate policies and procedures related thereto; and

     (xv) Oversee all reporting, record keeping, internal controls and similar matters in a
manner to allow the Company to comply with applicable law including the Sarbanes-Oxley Act of
2002.

     3.05 Stockholder Services.

The Advisor shall:

     (i) Manage communications with Stockholders, including answering phone calls, preparing
and sending written and electronic reports and other communications; and

     (ii) Establish technology infrastructure to assist in providing Stockholder support and
service.

     3.06 Financing Services.

The Advisor shall:

     (i) Identify and evaluate potential financing and refinancing sources, engaging a
third-party broker if necessary;

     (ii) Negotiate terms, arrange and execute financing agreements;

     (iii) Manage relationships between the Company and its lenders; and

     (iv) Monitor and oversee the service of the Company’s debt facilities and other
financings.

     3.07 Disposition Services.

The Advisor shall:

     (i) Consult with the Board and provide assistance with the evaluation and approval of
potential asset dispositions, sales or other liquidity events; and

9

 

     (ii) Structure and negotiate the terms and conditions of transactions pursuant to which
Investments may be sold.

ARTICLE 4

AUTHORITY OF ADVISOR

     4.01 Powers of the Advisor. Subject to the express limitations set forth in this Agreement
and the continuing and exclusive authority of the Board over the management of the Company, the
power to direct the management, operation and policies of the Company, including making, financing
and disposing of Investments, and the performance of those services described in Article 3 hereof,
shall be vested in the Advisor, which shall have the power by itself and shall be authorized and
empowered on behalf and in the name of the Company to carry out any and all of the objectives and
purposes of the Company and to perform all acts and enter into and perform all contracts and other
undertakings that it may in its sole discretion deem necessary, advisable or incidental thereto to
perform its obligations under this Agreement. The Advisor shall have the power to delegate all or
any part of its rights and powers to manage and control the business and affairs of the Company to
such officers, employees, Affiliates, agents and representatives of the Advisor or the Company as
it may deem appropriate. Any authority delegated by the Advisor to any other Person shall be
subject to the limitations on the rights and powers of the Advisor specifically set forth in this
Agreement or the Charter.

     4.02 Approval by the Board. Notwithstanding the foregoing, the Advisor may not take any
action on behalf of the Company without the prior approval of the Board or duly authorized
committees thereof if the Charter or Maryland General Corporation Law require the prior approval of
the Board. If the Board or a committee of the Board must approve a proposed investment, financing
or disposition or chooses to do so, the Advisor will deliver to the Board or committee, as
applicable, all documents required by it to evaluate such investment, financing or disposition.

     4.03 Modification or Revocation of Authority of Advisor. The Board may, at any time upon the
giving of notice to the Advisor, modify or revoke the authority or approvals set forth in Article 3
and this Article 4 hereof; provided, however, that such modification or revocation shall be
effective upon receipt by the Advisor and shall not be applicable to investment transactions to
which the Advisor has committed the Company prior to the date of receipt by the Advisor of such
notification.

ARTICLE 5

BANK ACCOUNTS

     The Advisor may establish and maintain one or more bank accounts in the name of the Company
and the Operating Partnership and may collect and deposit into any such account or accounts, and
disburse from any such account or accounts, any money on behalf of the Company or the Operating
Partnership, under such terms and conditions as the Board may approve, provided that no funds shall
be commingled with the funds of the Advisor. The Advisor shall from time to time render
appropriate accountings of such collections and payments to the Board and the independent auditors
of the Company.

ARTICLE 6

RECORDS AND ACCESS

     The Advisor, in the conduct of its responsibilities to the Company, shall maintain adequate
and separate books and records for the Company’s operations in accordance with GAAP, which shall be

10

 

supported by sufficient documentation to ascertain that such books and records are properly and
accurately recorded. Such books and records shall be the property of the Company and shall be
available for inspection by the Board and by counsel, auditors and other authorized agents of the
Company, at any time or from time to time during normal business hours. The Advisor shall at all
reasonable times have access to the books and records of the Company and the Operating Partnership.

ARTICLE 7

LIMITATION ON ACTIVITIES

     Notwithstanding any provision in this Agreement to the contrary, the Advisor shall not take
any action that, in its sole judgment made in good faith, would (i) adversely affect the ability of
the Company to qualify or continue to qualify as a REIT under the Code unless the Board has
determined that the Company will not seek or maintain REIT qualification for the Company,
(ii) subject the Company to regulation under the Investment Company Act of 1940, as amended,
(iii) violate any law, rule, regulation or statement of policy of any governmental body or agency
having jurisdiction over the Company, its Shares or its other securities, (iv) require the Advisor
to register as a broker-dealer with the SEC or any state, or (v) violate the Charter or Bylaws. In
the event an action that would violate (i) through (v) of the preceding sentence but such action
has been ordered by the Board, the Advisor shall notify the Board of the Advisor’s judgment of the
potential impact of such action and shall refrain from taking such action until it receives further
clarification or instructions from the Board. In such event, the Advisor shall have no liability
for acting in accordance with the specific instructions of the Board so given.

ARTICLE 8

FEES

     8.01 Acquisition Fees. As compensation for the investigation, selection, sourcing and
acquisition or origination (by purchase, investment or exchange) of Investments, the Company shall
pay an Acquisition Fee to the Advisor for each such investment (whether an acquisition or
origination). With respect to the acquisition of Property to be wholly owned, directly or
indirectly, by the Company, the Acquisition Fee payable to the Advisor shall equal to 2.25% of the
sum of the amount actually paid or allocated to fund the acquisition of the Investment, inclusive
of the Acquisition Expenses associated with such Investment and the amount of any debt associated
with, or used to fund the investment in, such Investment. With respect to the acquisition or
origination of a Loan to be wholly owned, directly or indirectly, by the Company, the Acquisition
Fee payable to the Advisor shall equal 1.0% of the sum of the amount actually paid or allocated to
fund the acquisition or origination of the Investment, inclusive of the Acquisition Expenses
associated with such Investment and the amount of any debt associated with, or used to fund the
investment in, such Investment. With respect to the acquisition of a Property or the acquisition
or origination of a Loan through any Joint Venture in which the Company or the Partnership is,
directly or indirectly, a partner, the Acquisition Fee payable to the Advisor shall equal 2.25%,
with respect to Properties, and 1.0%, with respect to Loans, of the portion of
the amount actually paid or allocated to fund the acquisition, origination, development,
construction or improvement of the Investment, inclusive of the Acquisition Expenses associated
with such Investment, plus the amount of any debt associated with, or used to fund the investment
in, such Investment that is attributable to the Company’s investment in such Joint
Venture. Notwithstanding anything herein to the contrary, the payment of Acquisition Fees by the
Company shall be subject to the limitations on acquisition fees contained in (and defined in) the
Company’s Charter. The Advisor shall submit an invoice to the Company following the closing or
closings of each acquisition or origination, accompanied by a computation of the Acquisition Fee.
Generally, the Acquisition Fee payable to the Advisor shall be paid at the closing of the
transaction upon receipt of the invoice by the Company; provided, however, that such

11

 

Acquisition
Fee shall be paid to an Affiliate of the Advisor that is registered as a FINRA member broker-dealer
if applicable laws or regulations prohibit such payment to be made to a Person that is not a FINRA
member broker-dealer. However, payment of the Acquisition Fee may be deferred, in whole or in
part, as to any transaction in the sole discretion of the Advisor. Any such deferred Acquisition
Fees shall be paid to the Advisor without interest at such subsequent date as the Advisor shall
request.

     8.02 Asset Management Fees. The Company shall pay the Advisor as compensation for the
services described in Section 3.03 hereof a monthly fee (the “Asset Management Fee”) in an
amount equal to one-twelfth of 1.0% of the sum of the Cost of Investments, less any principal
repaid by borrowers on Loans or other debt securities (or the Company’s proportionate share thereof
in the case of an Investment made through a Joint Venture), as of the end of the preceding
month. The Advisor shall submit a monthly invoice to the Company, accompanied by a computation of
the Asset Management Fee for the applicable period. Generally, the Asset Management Fee payable to
the Advisor shall be paid on the last day of such month, or the first business day following the
last day of such month. However, payment of the Asset Management Fee may be deferred, in whole or
in part, as to any transaction in the sole discretion of the Advisor. Any such deferred Asset
Management Fees shall be paid to the Advisor without interest at such subsequent date as the
Advisor shall request.

     8.03 Disposition Fees. If the Advisor or any of its Affiliates provide a substantial amount
of services (as determined by the Independent Directors) in connection with the Sale of a Property,
the Advisor or such Affiliate shall receive a Disposition Fee of 2.0% of the Contract Sales Price
of each Property sold. The Advisor shall also receive a Disposition Fee upon the maturity,
prepayment, workout, modification or extension of a Loan or other debt-related investment if there
is a corresponding fee paid by the borrower to the Company, in which event the Advisor shall
receive the amount of the fee paid by the borrower to the Company in connection with such
transaction. The payment of any Disposition Fees by the Company shall be subject to the limitations
contained in the Company’s Charter. The Advisor shall submit an invoice to the Company following
the closing or closings of each disposition, accompanied by a computation of the Disposition Fee.
Generally, the Disposition Fee payable to the Advisor shall be paid at the closing of the
transaction upon receipt of the invoice by the Company; provided, however, that such Disposition
Fee shall be paid to an Affiliate of the Advisor that is registered as a FINRA member broker-dealer
if applicable laws or regulations prohibit such payment to be made to a Person that is not a FINRA
member broker-dealer. However, payment of the Disposition Fee may be deferred, in whole or in
part, as to any transaction in the sole discretion of the Advisor. Any such deferred Disposition
Fees shall be paid to the Advisor without interest at such subsequent date as the Advisor shall
request.

     8.04 Operating Partnership Interests. The Advisor has made a capital contribution of $1,000
to the Operating Partnership in exchange for OP Units. In addition, an Affiliate of the Advisor
has made a capital contribution of $1,000 to the Operating Partnership in exchange for Special OP
Units. The Special OP Units shall be entitled to the distributions provided for, and shall be
subject to redemption by the Operating Partnership, in accordance with the
terms of the Operating Partnership Agreement. To the extent distributions to the Special OP
Units are not paid from net sales proceeds, such amounts will count against the limit on Operating
Expenses.

     8.05 Changes to Fee Structure. In the event of Listing, the Company and the Advisor shall
negotiate in good faith to establish a fee structure appropriate for a perpetual-life entity.

ARTICLE 9

EXPENSES

     9.01 General. In addition to the compensation paid to the Advisor pursuant to Article 8
hereof, the Company shall pay directly or reimburse the Advisor for all of the expenses paid or
incurred by the

12

 

Advisor or its Affiliates on behalf of the Company or in connection with the
services provided to the Company pursuant to this Agreement, including, but not limited to:

     (i) All Organization and Offering Expenses; provided, however, that the Company shall
not reimburse the Advisor to the extent such reimbursement would cause the total amount spent
by the Company on Organization and Offering Expenses to exceed 15.0% of the Gross Proceeds
raised as of the date of the reimbursement and provided further that within 60 days after the
end of the month in which an Offering terminates, the Advisor shall reimburse the Company to
the extent the Company incurred Organization and Offering Expenses exceeding 15.0% of the
Gross Proceeds raised in the completed Offering; the Company shall not reimburse the Advisor
for any Organization and Offering Expenses that the Independent Directors determine are not
fair and commercially reasonable to the Company; the Company shall not reimburse the Advisor
for any individual retirement account custodian fees that the Advisor pays on behalf of
Stockholders;

     (ii) Acquisition Fees and Acquisition Expenses incurred in connection with the selection
and acquisition of Investments, including such expenses incurred related to assets pursued or
considered but not ultimately acquired by the Company, provided that, notwithstanding anything
herein to the contrary, the payment of Acquisition Fees and Acquisition Expenses by the
Company shall be subject to the limitations contained in the Company’s Charter;

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

     (iv) Interest and other costs for borrowed money or securitization transactions,
including discounts, points and other similar fees;

     (v) Taxes and assessments on income or Properties, taxes as an expense of doing business
and any other taxes otherwise imposed on the Company and its business, assets or income;

     (vi) Out-of-pocket costs associated with insurance required in connection with the
business of the Company or by its officers and Board;

     (vii) Expenses of managing, improving, developing, operating and selling Investments
owned, directly or indirectly, by the Company, as well as expenses of other transactions
relating to such Investments, including but not limited to prepayments, maturities, workouts
and other settlements of Loans and other Investments;

     (viii) All out-of-pocket expenses in connection with payments to the Board and meetings
of the Board and Stockholders;

     (ix) Personnel and related employment costs incurred by the Advisor or its Affiliates in
performing the services described in Article 3 hereof, including but not limited to reasonable
salaries and wages, benefits and overhead of all employees directly involved in the
performance of such services, provided that no reimbursement shall be made for costs of such
employees of the Advisor or its Affiliates to the extent that such employees (A) perform
services for which the Advisor receives Acquisition Fees or Disposition Fees or (B) serve as
executive officers of the Company;

     (x) Out-of-pocket expenses of providing services for and maintaining communications with
Stockholders, including the cost of preparation, printing, and mailing annual reports and
other Stockholder reports, proxy statements and other reports required by governmental
entities;

13

 

     (xi) Audit, accounting and legal fees, and other fees for professional services relating
to the operations of the Company and all such fees incurred at the request, or on behalf of,
the Board or any other committee of the Board;

     (xii) Out-of-pocket costs for the Company to comply with all applicable laws,
regulations and ordinances;

     (xiii) Expenses connected with payments of Distributions made or caused to be made by
the Company to the Stockholders;

     (xiv) Expenses of organizing, redomesticating, merging, liquidating or dissolving the
Company or of amending the Charter or the Bylaws; and

     (xv) All other out-of-pocket costs incurred by the Advisor in performing its duties
hereunder.

     9.02 Timing of and Additional Limitations on Reimbursements.

     (i) Expenses incurred by the Advisor on behalf of the Company and reimbursable pursuant
to this Article 9 shall be reimbursed no less than monthly to the Advisor. The Advisor shall
prepare a statement documenting the expenses of the Company during each quarter and shall
deliver such statement to the Company within 45 days after the end of each quarter.

     (ii) Notwithstanding anything else in this Article 9 to the contrary, the expenses
enumerated in this Article 9 shall not become reimbursable to the Advisor unless and until the
Company has raised $2 million in the Initial Public Offering.

     (iii) Commencing upon the fourth fiscal quarter after the commencement of the Initial
Public Offering, the following limitation on Operating Expenses shall apply: The Company
shall not reimburse the Advisor at the end of any fiscal quarter for Operating Expenses that
in the four consecutive fiscal quarters then ended (the “Expense Year”) exceed (the
“Excess Amount”) the greater of 2% of Average Invested Assets or 25% of Net Income
(the “2%/25% Guidelines”) for such year unless the Board determines that such excess
was justified, based on unusual and nonrecurring factors that the Board deems sufficient. If
the Board does not approve such excess as being so justified, any Excess Amount paid to the
Advisor during a fiscal quarter shall be repaid to the Company. If the Board determines such
excess was justified, then, within 60 days after the end of any fiscal quarter of the Company
for which total reimbursed Operating Expenses for the Expense Year exceed the 2%/25%
Guidelines, the Advisor, at the direction of the Board, shall cause such fact to be disclosed
to the Stockholders in writing (or the Company shall disclose such fact to the Stockholders in
the next quarterly report of the Company or by filing a Current Report on Form
8-K with the SEC within 60 days of such quarter end), together with an explanation of the
factors the Board considered in determining that such excess expenses were justified. The
Company will ensure that such determination will be reflected in the minutes of the meetings
of the Board. All figures used in the foregoing computation shall be determined in accordance
with GAAP applied on a consistent basis.

ARTICLE 10

OTHER SERVICES

     Should (i) the Operating Partnership request that the Advisor or any manager, officer or
employee thereof render services for the Company other than as set forth in this Agreement or
(ii) there are changes to the regulatory environment in which the Advisor or Company operates that
would increase significantly the level of services performed such that the costs and expenses borne
by the Advisor for

14

 

which the Advisor is not entitled to separate reimbursement for personnel and
related employment direct costs and overhead under Article 9 of this Agreement would increase
significantly, such services shall be separately compensated at such rates and in such amounts as
are agreed by the Advisor and the Independent Directors, subject to the limitations contained in
the Articles of Incorporation, and shall not be deemed to be services pursuant to the terms of this
Agreement.

ARTICLE 11

VOTING AGREEMENT

     NorthStar Senior Care Advisor, LLC agrees that, with respect to any Shares now or hereinafter
owned by it, it will not vote or consent on matters submitted to the Stockholders of the Company
regarding (i) the removal of NorthStar Senior Care Advisor, LLC or any of its Affiliates as the
Advisor or (ii) any transaction between the Company and NorthStar Senior Care Advisor, LLC or any
of its Affiliates. This voting restriction shall survive until such time that NorthStar Senior
Care Advisor, LLC or any of its Affiliates is no longer serving as the Advisor.

ARTICLE 12

RELATIONSHIP OF ADVISOR AND COMPANY;

OTHER ACTIVITIES OF THE ADVISOR

     12.01 Relationship. The Company and the Advisor are not partners or joint venturers with each
other, and nothing in this Agreement shall be construed to make them such partners or joint
venturers. Nothing herein contained shall prevent the Advisor from engaging in other activities,
including, without limitation, the rendering of advice to other Persons (including other REITs) and
the management of other programs advised, sponsored or organized by the Advisor or its Affiliates.
Nor shall this Agreement limit or restrict the right of any manager, director, officer, employee or
equityholder of the Advisor or its Affiliates to engage in any other business or to render services
of any kind to any other Person. The Advisor may, with respect to any investment in which the
Company is a participant, also render advice and service to each and every other participant
therein. The Advisor shall promptly disclose to the Board the existence of any condition or
circumstance, existing or anticipated, of which it has knowledge, that creates or could create a
conflict of interest between the Advisor’s obligations to the Company and its obligations to or its
interest in any other Person.

     12.02 Time Commitment. The Advisor shall, and shall cause its Affiliates and their respective
employees, officers and agents to, devote to the Company
such time as shall be reasonably necessary to conduct the business and affairs of the Company
in an appropriate manner consistent with the terms of this Agreement. The Company acknowledges that
the Advisor and its Affiliates and their respective employees, officers and agents may also engage
in activities unrelated to the Company and may provide services to Persons other than the Company
or any of its Affiliates.

     12.03 Investment Opportunities and Allocation. In the event NorthStar identifies a new
investment opportunity to make debt or equity investments related to senior housing facilities, for
which the Company has sufficient uninvested funds, the investment opportunity will first be offered
to the Company until such time as [90]% of the Net Proceeds in an Offering available for investment
as of the end of the Offering have been invested in Investments. Unless the Board of Directors
decides not to proceed with an investment opportunity presented to it, the investment opportunity
will not be presented to an Affiliate of NorthStar; provided, however, that any such investment
opportunity shall not be required to be presented to the Company during any period in which the
Company does not have sufficient available funds, or a reasonable opportunity of obtaining
available funds, with which to make an investment.

15

 

ARTICLE 13

THE NORTHSTAR NAME

     The Sponsor and its Affiliates have a proprietary interest in the name “NorthStar.” The
Sponsor hereby grants to the Company a non-transferable, non-assignable, non-exclusive royalty-free
right and license to use the name “NorthStar” during the term of this Agreement. Accordingly, and
in recognition of this right, if at any time the Company ceases to retain the Advisor or one of its
Affiliates to perform advisory services for the Company, the Company will, promptly after receipt
of written request from the Sponsor, cease to conduct business under or use the name “NorthStar” or
any derivative thereof and the Company shall change its name and the names of any of its
subsidiaries to a name that does not contain the name “NorthStar” or any other word or words that
might, in the reasonable discretion of the Sponsor, be susceptible of indication of some form of
relationship between the Company and the Sponsor or any its Affiliates. At such time, the Company
will also make any changes to any trademarks, servicemarks or other marks necessary to remove any
references to the word “NorthStar.” Consistent with the foregoing, it is specifically recognized
that the Sponsor or one or more of its Affiliates has in the past and may in the future organize,
sponsor or otherwise permit to exist other investment vehicles (including vehicles for investment
in healthcare-related real estate assets) and financial and service organizations having
“NorthStar” as a part of their name, all without the need for any consent (and without the right to
object thereto) by the Company. The Sponsor shall govern Company’s use of the name “NorthStar”
and the Company’s use of the “NorthStar” name will be in strict accordance with any quality
standards and specifications that may be established by Advisor and communicated to Company from
time to time.

ARTICLE 14

TERM AND TERMINATION OF THE AGREEMENT

     14.01 Term. This Agreement shall have an initial term of one year from the Effective Date and
may be renewed for an unlimited number of successive one-year terms upon mutual consent of the
parties. The Company (acting through the Independent Directors) will evaluate the performance of
the Advisor annually before renewing this Agreement, and each such renewal shall be for a term of
no more than one year. Any such renewal must be approved by the Independent Directors.

     14.02 Termination by the Parties. This Agreement may be terminated:

     (i) immediately by the Company or the Operating Partnership for Cause or upon the
bankruptcy of the Advisor;

     (ii) upon 60 days written notice without Cause and without penalty by a majority of the
Independent Directors of the Company; or

     (iii) upon 60 days written notice with Good Reason by the Advisor.

     The provisions of Article 13, Section 14.03 and Articles 16 through 18 of this Agreement shall
survive termination of this Agreement.

     14.03 Payments on Termination and Survival of Certain Rights and Obligations. Payments to
the Advisor pursuant to this Section 14.03 shall be subject to the 2%/25% Guidelines to the extent
applicable.

     (i) After the Termination Date, the Advisor shall not be entitled to compensation for
further services hereunder except it shall be entitled to receive from the Company or the
Operating Partnership within 30 days after the effective date of such termination all unpaid
reimbursements of

16

 

expenses and all earned but unpaid fees payable to the Advisor prior to
termination of this Agreement, subject to the 2%/25% Guidelines to the extent applicable.

(ii) The Advisor shall promptly upon termination:

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

     (b) deliver to the Board a full accounting, including a statement showing all
payments collected by it and a statement of all money held by it, covering the period
following the date of the last accounting furnished to the Board;

     (c) deliver to the Board all assets and documents of the Company then in the
custody of the Advisor; and

     (d) cooperate with the Company to provide an orderly transition of advisory
functions.

ARTICLE 15

ASSIGNMENT

     This Agreement may be assigned by the Advisor to an Affiliate with the approval of a majority
of the Board (including a majority of the Independent Directors). The Advisor may assign any rights
to receive fees or other payments under this Agreement without obtaining the approval of the Board.
This Agreement shall not be assigned by the Company or the Operating Partnership without the
consent of the Advisor, except in the case of an assignment by the Company or the Operating
Partnership to a corporation or other organization that is a successor to all of the assets, rights
and obligations of the Company or the Operating Partnership, in which case such successor
organization shall be bound hereunder and by the terms of said assignment in the same manner as the
Company and the Operating Partnership are bound by this Agreement. Nothing herein shall be deemed
to prohibit or otherwise
restrict any transfers or additional issuances of equity interests in the Advisor nor shall
any such transfer or issuance be deemed an assignment for purposes of this Article 15.

ARTICLE 16

INDEMNIFICATION AND LIMITATION OF LIABILITY

     16.01 Indemnification. Except as prohibited by the restrictions provided in this
Section 16.01, Section 16.02 and Section 16.03, the Company and the Operating Partnership shall
indemnify, defend and hold harmless the Advisor and its Affiliates, including their respective
officers, directors, equity holders, partners and employees, from all liability, claims, damages or
losses arising in the performance of their duties hereunder, and related expenses, including
reasonable attorneys’ fees, to the extent such liability, claims, damages or losses and related
expenses are not fully reimbursed by insurance. Any indemnification of the Advisor may be made only
out of the net assets of the Company and not from Stockholders.

     Notwithstanding the foregoing, the Company shall not indemnify the Advisors or its Affiliates
for any loss, liability or expense arising from or out of an alleged violation of federal or state
securities laws by such party unless one or more of the following conditions are met: (i) there has
been a successful adjudication on the merits of each count involving alleged material securities
law violations as to the

17

 

particular indemnitee; (ii) such claims have been dismissed with prejudice
on the merits by a court of competent jurisdiction as to the particular indemnitee; or (iii) a
court of competent jurisdiction approves a settlement of the claims against a particular indemnitee
and finds that indemnification of the settlement and the related costs should be made, and the
court considering the request for indemnification has been advised of the position of the SEC and
of the published position of any state securities regulatory authority in which securities of the
Company were offered or sold as to indemnification for violations of securities laws.

     16.02 Limitation on Indemnification. Notwithstanding the foregoing, the Company and Operating
Partnership shall not provide for indemnification of the Advisor or its Affiliates for any
liability or loss suffered by any of them, nor shall any of them be held harmless for any loss or
liability suffered by the Company, unless all of the following conditions are met:

     (i) The Advisor or its Affiliates have determined, in good faith, that the course of
conduct that caused the loss or liability was in the best interests of the Company and the
Operating Partnership.

     (ii) The Advisor or its Affiliates were acting on behalf of or performing services for
the Company or the Operating Partnership.

     (iii) Such liability or loss was not the result of negligence or misconduct by the
Advisor or its Affiliates.

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

     16.03 Limitation on Payment of Expenses. The Company shall pay or reimburse reasonable legal
expenses and other costs incurred by the Advisors or its Affiliates in advance of the final
disposition of a proceeding only if (in addition to the procedures required by the Maryland General
Corporation Law, as amended from time to time) all of the
following are satisfied: (a) the proceeding relates to acts or omissions with respect to the
performance of duties or services on behalf of the Company or the Operating Partnership, (b) the
legal proceeding was initiated by a third party who is not a Stockholder or, if by a Stockholder
acting in his or her capacity as such, a court of competent jurisdiction approves such advancement
and (c) the Advisor or its Affiliates undertake to repay the amount paid or reimbursed by the
Company Operating Partnership, together with the applicable legal rate of interest thereon, if it
is ultimately determined that the particular indemnitee is not entitled to indemnification.

     16.04 Indemnification by Advisor. The Advisor shall indemnify and hold harmless the Company
and the Operating Partnership from contract or other liability, claims, damages, taxes or losses
and related expenses including attorneys’ fees, to the extent that such liability, claims, damages,
taxes or losses and related expenses are not fully reimbursed by insurance and are incurred by
reason of the Advisor’s bad faith, fraud, misfeasance, intentional misconduct, negligence or
reckless disregard of its duties; provided, however, that the Advisor shall not be held responsible
for any action of the Board in following or declining to follow any advice or recommendation given
by the Advisor.

ARTICLE 17

NON-SOLICITATION

     During the period commencing on the Effective Date and ending one year following the
Termination Date, the Company shall not, without the Advisor’s prior written consent, directly or

18

 

indirectly, (i) solicit or encourage any person to leave the employment or other service of the
Advisor or its Affiliates, or (ii) hire, on behalf of the Company or any other person or entity,
any person who has left the employment within the one year period following the termination of that
person’s employment with the Advisor or its Affiliates. During the period commencing on the date
hereof through and ending one year following the Termination Date, the Company will not, whether
for its own account or for the account of any other Person, intentionally interfere with the
relationship of the Advisor or its Affiliates with, or endeavor to entice away from the Advisor or
its Affiliates, any person who during the term of the Agreement is, or during the preceding
one-year period, was a tenant, co-investor, co-developer, joint venturer or other customer of the
Advisor or its Affiliates.

ARTICLE 18

MISCELLANEOUS

     18.01 Notices. Any notice, report or other communication required or permitted to be given
hereunder shall be in writing unless some other method of giving such notice, report or other
communication is required by the Charter, the Bylaws or is accepted by the party to whom it is
given, and shall be given by being delivered by hand or by overnight mail or other overnight
delivery service to the addresses set forth herein:

	 	 	 
	To the Board, the Company or the

	 	NorthStar Senior Care Trust, Inc.
	Operating Partnership:

	 	399 Park Avenue
	 

	 	18th Floor
	 

	 	New York, New York 10022
	 
	 	 
	To the Advisor:

	 	NorthStar Senior Care Advisor, LLC
	 

	 	399 Park Avenue
	 

	 	18th Floor
	 

	 	New York, New York 10022

     Either party may at any time give notice in writing to the other party of a change in its
address for the purposes of this Section 18.01.

     18.02 Modification. This Agreement shall not be changed, modified, terminated or discharged,
in whole or in part, except by an instrument in writing signed by both parties hereto, or their
respective successors or permitted assigns.

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

     18.04 Construction. The provisions of this Agreement shall be construed and interpreted in
accordance with the laws of the State of New York.

     18.05 Entire Agreement. This Agreement contains the entire agreement and understanding
between the parties hereto with respect to the subject matter hereof, and supersedes all prior and
contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter hereof. The express terms
hereof control and supersede any course of performance and/or usage of the trade inconsistent with
any of the terms hereof. This Agreement may not be modified or amended other than by an agreement
in writing.

19

 

     18.06 Waiver. Neither the failure nor any delay on the part of a party to exercise any right,
remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any
right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such
right, remedy, power or privilege with respect to any other occurrence. No waiver shall be
effective unless it is in writing and is signed by the party asserted to have granted such waiver.

     18.07 Gender. Words used herein regardless of the number and gender specifically used, shall
be deemed and construed to include any other number, singular or plural, and any other gender,
masculine, feminine or neuter, as the context requires.

     18.08 Titles Not to Affect Interpretation. The titles of Articles and Sections contained in
this Agreement are for convenience only, and they neither form a part of this Agreement nor are
they to be used in the construction or interpretation hereof.

     18.09 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original as against any party whose signature appears thereon, and
all of which shall together constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together, shall bear the
signatures of all of the parties reflected hereon as the signatories.

[The remainder of this page is intentionally left blank. Signature page follows.]

20

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year
first above written.

	 	 	 	 	 
	 	NorthStar Senior Care Trust, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	Andrew C. Richardson 	 
	 	 	Title:  	Chief Financial Officer and Treasurer 	 
	 

	 	 	 	 	 
	 	NorthStar Senior Care Operating Partnership, LP

 	 
	 	By:  	NorthStar Senior Care Trust, Inc.,
 	 
	 	 	its General Partner 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Andrew C. Richardson 	 
	 	 	Title:  	Chief Financial Officer and Treasurer 	 
	 

	 	 	 	 	 
	 	NorthStar Senior Care Advisor, LLC

 	 
	 	By:  	NRFC Sub-REIT Corp., its sole member
 	 
	 	 	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Andrew C. Richardson 	 
	 	 	Title:  	Executive Vice President, Chief Financial Officer and
Treasurer 	 
	 

	 	 	 	 	 
	 	NorthStar Realty Finance Corp.

 	 
	 	By:  	 	 
	 	 	Name:  	Andrew C. Richardson 	 
	 	 	Title:  	Chief Financial Officerexv10w2

EXHIBIT 10.2

FORM OF ESCROW AGREEMENT

     THIS ESCROW AGREEMENT (the “Agreement”) is made and entered into as of the ___ day of
_________, 2011, by and among NorthStar Senior Care Trust, Inc., a Maryland corporation (the
“Company”), NRF Capital Markets, LLC (the “Dealer Manager”) and Wells Fargo Bank,
National Association, as escrow agent (the “Escrow Agent”).

     WHEREAS, the Company proposes to offer for sale (the “Offering”), on a continuing
basis, up to $1,100,000,000 in shares of the Company’s common stock, par value $0.01 per share (the
“Shares”), pursuant to the terms of the prospectus (the “Prospectus”) contained in
the registration statement on Form S-11, as amended, originally filed with the Securities and
Exchange Commission on  under the Securities Act of 1933, as amended, a copy of
the Prospectus is attached hereto as Exhibit A.

     WHEREAS, the Dealer Manager, prior to marketing any Shares for sale, will be a registered
broker-dealer and member of the Financial Industry Regulatory Authority (“FINRA”). The
Dealer Manager has entered into an agreement with the Company and NorthStar Senior Care Trust
Operating Partnership, LP to serve as the dealer manager for the Offering (the “DMA”) and
will offer the Shares through other participating dealers that are registered under applicable
federal and state securities laws and that are members of FINRA (the “Dealers”);

     WHEREAS, it is anticipated that investors will subscribe for the Shares and will provide the
Dealers with subscription payments for such Shares (the “Subscription Payments”), which
subscriptions will be contingent upon (i) their respective acceptances by the Company and (ii) the
Company’s acceptance of Subscription Payments aggregating $2,000,000 (the “Minimum Amount”)
deposited into escrow;

     WHEREAS, the Company, the Dealer Manager (with respect to any sales made by the Dealer
Manager) or the Dealers desire to deposit funds contributed by the Subscribers (as defined below)
with the Escrow Agent, to be held for the benefit of the Subscribers (as defined below) and the
Company until such time as subscriptions for the Minimum Amount have been deposited into escrow or
otherwise in accordance with the terms of this Agreement;

     WHEREAS, the Escrow Agent has agreed to receive and hold in escrow all Subscription Payments
until the earlier of (i) such time as subscriptions for the Minimum Amount have been received and
accepted by the Company or (ii) the close of business on the date exactly one year after the
original effective date of the Prospectus (the Company shall provide written notice of such date
to the Escrow Agent) (the “Minimum Subscription Termination Date”), and to hold and
distribute such Subscription Payments in accordance with the terms and conditions herein set forth;
and

     WHEREAS, the Escrow Agent is willing to accept appointment as the escrow agent for only the
expressed duties, terms and conditions outlined herein.

     NOW, THEREFORE, in consideration of the premises and agreements set forth herein, the parties
hereto agree as follows:

     1. Appointment of Escrow Agent. The Company and the Dealer Manager hereby appoint the
Escrow Agent to serve as escrow agent, and the Escrow Agent hereby accepts such appointment, each
in accordance with the terms of this Agreement.

     2. Subscription Payments. An investor subscribing to purchase Shares (the
“Subscriber”) will be instructed by the Dealer Manager (with respect to any sales made by
the Dealer Manager) or the

 

 

Dealers to remit the purchase price in the form of checks, drafts or money orders (the
“Payment Instruments”) payable to the order of, or funds wired in favor of, “Wells Fargo
Bank, N.A., as escrow agent for NorthStar Senior Care Trust, Inc.” or “Wells Fargo Bank, N.A., as
escrow agent for NS Senior Care” (the “Escrow Account”), or, after the Company meets the
Minimum Amount, payable to the order of, or funds wired in favor of “NorthStar Senior Care Trust,
Inc.” or “NS Senior Care.” By noon of the next business day after receipt of any Payment
Instruments, the Dealer Manager (with respect to any sales made by the Dealer Manager) or the
Dealers shall remit, or shall cause its authorized agent or representative to remit, to the Escrow
Agent the Subscription Payments. Such Subscription Payments shall be retained in the Escrow
Account by the Escrow Agent and invested as set forth in Section 7 and shall be deposited within
one (1) business day of receipt.

     In the event that any Payment Instruments deposited in the Escrow Account prove uncollectible
after the funds represented thereby have been released by the Escrow Agent to the Company, then the
Company shall promptly reimburse the Escrow Agent for any and all costs incurred for such, upon
request, and the Escrow Agent shall deliver the uncollectible Payment Instrument to the Company.
The Escrow Agent shall be under no duty or responsibility to enforce collection of any check
delivered to it hereunder. Notwithstanding the foregoing, if any Subscriber exercises any right
provided by law to rescind his or her subscription, the Escrow Agent shall, upon notice from the
Company or the Dealer Manager, return to such Subscriber all Subscription Payments pertaining to
such subscription, together with any earnings thereon during the period that such payments were
held by the Escrow Agent under this Agreement.

     3. Subscriber Identity. By noon of the next business day after receipt of the Payment
Instruments, the Dealer Manager shall furnish or shall cause to be furnished to the Escrow Agent
each accepted Subscriber’s name, address, social security number or tax identification number,
number of Shares purchased and purchase price remitted. All Subscription Payments so deposited
shall be considered the property of the Subscribers and shall be held for the benefit of such
Subscribers and shall not be: (i) commingled with the monies or become an asset of the Company, or
(ii) subject to any liens or charges by the Company or the Escrow Agent, or judgments or creditors’
claims against the Company, until released to the Company as hereinafter provided. The Escrow
Agent will not use the information provided to it by the Company for any purpose other than to
fulfill its obligations as the Escrow Agent. The Escrow Agent agrees to treat all Subscriber
information as confidential and to treat the Subscriber’s identity and personal information as
protected under the Gramm-Leach-Bliley Act and the privacy standards and requirements of any other
applicable federal or state law, and its own internal privacy policies and procedures, each as may
be amended from time to time.

4. Disbursement of Subscription Payments and Escrow Income. On a weekly basis, and at the
end of the third business day following the Minimum Subscription Termination Date (and more
frequently, if requested by the Company), the Escrow Agent shall notify the Company of the amount
of Subscription Payments received and collected (the “Collected Funds”) since the last
report. If the Collected Funds are in an amount equal to or greater than the Minimum Amount at any
time prior to the Minimum Subscription Termination Date, and the Company has delivered a written
notice (the “Notice”) stating that the Company has received Collected Funds for the Minimum
Amount and the Dealer Manager has confirmed that all of the conditions precedent to the release of
the subscriptions from escrow pursuant to Section 6 of the DMA have been satisfied, then the Escrow
Agent shall deliver the Collected Funds and all earnings thereon to the Company when and as
directed by the Notice. After the Minimum Amount has been raised, the Escrow Account shall remain
open for ten business days. At the close of business on the tenth business day following the date
on which the Minimum Amount is raised, the Escrow Agent will close the Escrow Account. Until the
Escrow Account closes, Subscription Payments may continue to be deposited into the Escrow Account;
provided, however, that at the instruction of the Company to the Escrow Agent, Subscription
Proceeds shall either be (i) transferred from the Escrow

2

 

Account to the Company’s transfer agent for deposit into an account designated by the Company or
(ii) deposited directly into a commercial account in the name of the Company with the Escrow Agent
that has previously been established by the Company.

     If the Collected Funds are not greater than or equal to the Minimum Amount on the Minimum
Subscription Termination Date, the Escrow Agent shall (i) notify the Company and the Dealer Manager
immediately following the Minimum Subscription Termination Date and (ii) within a reasonable time
following the Minimum Subscription Termination Date, but in no event more than thirty (30) days
after the Minimum Subscription Termination Date, refund to each of the Subscribers all sums paid by
the Subscribers, with a pro rata portion of any interest earned thereon.

     In the event the Escrow Agent receives written notice from the Company or the Dealer Manager
that the Company or the Dealer Manager has rejected a Subscriber’s subscription, the Escrow Agent
shall pay to the applicable Subscriber, within ten (10) business days after receiving notice of the
rejection, by first class United States Mail the Subscription Payment paid by the Subscriber for
Shares and collected by the Escrow Agent, together with the interest earned on such Subscription
Payment.

     5. Duty and Liability of the Escrow Agent. The sole duty of the Escrow Agent, other
than as herein specified, shall be to receive the Subscription Payments and hold them subject to
release, in accordance herewith, and the Escrow Agent shall be under no duty to determine whether
the Company or the Dealer Manager is complying with requirements of this Agreement or the
Prospectus in tendering to the Escrow Agent said proceeds of the sale of the Shares. The Escrow
Agent shall have the right to perform any of its duties hereunder through its agents, attorneys,
custodians or nominees. The Escrow Agent may conclusively rely upon and shall be protected in
acting upon any statement, certificate, notice, request, consent, order or other document
reasonably believed by it to be genuine and to have been signed or presented by the proper party or
parties. The Escrow Agent shall have no duty or liability to verify any such statement,
certificate, notice, request, consent, order or other document, and its sole responsibility shall
be to act only as expressly set forth in this Agreement. The Escrow Agent shall be under no
obligation to institute or defend any action, suit or proceeding in connection with this Agreement
unless first indemnified to its satisfaction. The Escrow Agent may consult and hire counsel in
respect of any question arising under this Agreement, and the Escrow Agent shall not be liable for
any action taken or omitted in good faith upon advice of such counsel.

     The Escrow Agent is acting solely as escrow agent hereunder and owes no duties, covenants or
obligations, fiduciary or otherwise, to any other person by reason of this Agreement, except as
otherwise stated herein, and no implied duties, covenants or obligations, fiduciary or otherwise,
shall be read into this Agreement against the Escrow Agent. In no event shall the Escrow Agent be
liable, directly or indirectly, for any (i) damages, losses or expenses arising out of the services
provided hereunder, other than damages, losses or expenses which have been finally adjudicated to
have directly resulted from the Escrow Agent’s gross negligence or willful misconduct, or (ii)
special, indirect or consequential losses or damages of any kind whatsoever (including without
limitation lost profits), even if the Escrow Agent has been advised of the possibility of such
losses or damages and regardless of the form of action. The parties agree that the Escrow Agent
has no role in the preparation of the Prospectus or other Offering documents, has not reviewed any
such documents and makes no representations or warranties with respect to the information contained
therein or omitted therefrom. The Escrow Agent agrees that it may be named in the Prospectus and
Offering documents, solely to the extent necessary to describe this Agreement and the duties of the
Escrow Agent herein. The Escrow Agent shall have no obligation, duty or liability with respect to
compliance with any federal or state securities, disclosure or tax laws concerning the Offering
documents or the issuance, offering or sale of the Shares. The Escrow Agent shall have no duty or
obligation to monitor the application and use of the Subscription Payments once transferred to the
Company, that being the sole obligation and responsibility of the Company. No provision of this

3

 

Agreement shall require the Escrow Agent to risk or advance its own funds or otherwise incur
any financial liability in the performance of its duties or the exercise of its rights hereunder.

     6. Escrow Agent Fee. The Escrow Agent shall be entitled to compensation for its
services, as stated in the fee schedule attached hereto as Exhibit B, which compensation
shall be paid by the Company. Subject to the provisions of Section 10, the fee agreed upon for the
services rendered hereunder in Exhibit B is intended as full compensation for the Escrow
Agent’s services as contemplated by this Agreement. Notwithstanding anything contained herein to
the contrary, in no event shall any fee, reimbursement for costs and expenses, indemnification for
damages incurred by the Escrow Agent or monies whatsoever be paid out of or chargeable to the
income of assets of the Escrow Account. The Company’s obligations under this Section 6 shall
survive the resignation or removal of the Escrow Agent and the assignment or termination of this
Agreement.

     7. Investment of Subscription Payments. The Escrow Agent shall invest all Collected
Funds in the Wells Fargo Money Market Deposit Account (the “MMDA”), or a successor or
similar fund or account offered by the Escrow Agent as otherwise instructed in writing by the
Company. The MMDA is further described herein on Exhibit C. The Company acknowledges that
it has read and understands Exhibit C.

     Any interest received by the Escrow Agent with respect to the Collected Funds, including
reinvested interest, shall become part of the proceeds of the Escrow Account (the “Escrow
Income”), and shall be disbursed to the Company if Collected Funds, including interest
earnings, total the Minimum Amount. Any loss or expense incurred as a result of an investment or
sale of investment will be borne by the Escrow Account.

     The parties recognize and agree that the Escrow Agent will not provide supervision,
recommendations or advice relating to either the investment of moneys held in the Escrow Account or
the purchase, sale, retention or other disposition of any permitted investment.

     The Escrow Agent is hereby authorized to execute purchases and sales of permitted investments
through the facilities of its own trading or capital markets operations or those of any affiliated
entity. The Escrow Agent shall send statements to each of the parties hereto on a monthly basis
reflecting activity in the Escrow Account for the preceding month. No statement need be rendered
for the Escrow Account if no activity occurred for such month.

     The Company and the Dealer Manager acknowledge and agree that the delivery of the escrowed
property is subject to the sale and final settlement of permitted investments. Proceeds of a sale
of permitted investments will be delivered on the business day on which the appropriate
instructions are delivered to the Escrow Agent if received prior to the deadline for same day sale
of such permitted investments. If such instructions are received after the applicable deadline,
proceeds will be delivered on the next succeeding business day.

     8. Tax Reporting. As of each calendar year-end, the Escrow Agent shall report to the
Internal Revenue Service (the “IRS”) and to the Company or Subscribers all income earned
from the investment of any sum held in the Escrow Account against the Company or each Subscriber,
as and to the extent required under the provisions of the Internal Revenue Code of 1986, as
amended, and the regulations promulgated thereunder (the “Code”). For the avoidance of
doubt, all interest or other taxable income earned on the Collected Funds in any tax year shall be
taxable to the person or entity receiving the interest or other taxable income.

4

 

          On or before the date hereof, the Company shall provide the Escrow Agent with a certified tax
identification number by furnishing appropriate IRS form W-9 or W-8 and other forms and documents
that the Escrow Agent may reasonably request, including without limitation a form W-9 or W-8 for
each Subscriber. The parties hereto understand that if such tax reporting documentation is not so
certified to the Escrow Agent, the Escrow Agent may be required by the Internal Revenue Code of
1986, as amended, to withhold a portion of any interest or other income earned on the Collected
Funds pursuant to this Agreement for the Escrow Agent is not required to prepare and file any
income or other tax returns applicable to the Escrow Account with the IRS or required state and
local departments of revenue for years income is earned in any particular tax year. Any taxes
payable on income earned from the investment of any sums held in the Escrow Account shall be paid
by the Company or each Subscriber in the year in which disbursed and to the extent required under
the provisions of the Code.

          To the extent that the Escrow Agent becomes liable for the payment of any taxes in respect of
income derived from the investment of funds held or payments made hereunder, the Escrow Agent shall
satisfy such liability to the extent possible from the Collected Funds. The Company agrees to
indemnify and hold the Escrow Agent harmless from and against any taxes, additions for late
payment, interest, penalties and other expenses that may be assessed against the Escrow Agent on or
with respect to any payment or other activities under this Agreement unless any such tax, addition
for late payment, interest, penalties and other expenses shall arise out of or be caused by the
gross negligence or willful misconduct of the Escrow Agent. The terms of this paragraph
shall survive the assignment or termination of this Agreement and the resignation or removal of the
Escrow Agent.

     9. Notices. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given (i) on the date of
service if served personally on the party to whom notice is to be given, (ii) on the day of
transmission if sent by facsimile transmission to the facsimile number given below, and written
confirmation of receipt is obtained promptly after completion of transmission, (iii) on the day
after delivery to the United Parcel Service or similar overnight courier or the Express Mail
service maintained by the United States Postal Service and sent via overnight delivery or (iv) on
the fifth day after mailing, if mailed to the party to whom notice is to be given, by first class
mail, registered or certified, postage prepaid, and properly addressed, return receipt requested,
to the party as follows:

If to Company:

NorthStar Senior Care Trust, Inc.

399 Park Avenue

18th Floor

New York, New York 10022

Attention: Andrew C. Richardson, Chief Financial Officer and Treasurer

Fax: (212) 547-2700

If to the Dealer Manager:

NRF Capital Markets, LLC

5299 DTC Blvd., Ste. 900

Greenwood Village, CO 80111

Attention: Tim Toole

5

 

If to the Escrow Agent:

Wells Fargo Bank, N.A.

45 Broadway, 14th Floor

New York, New York 10006

Attention: Lisa D’Angelo

Email: lisa.dangelo@wellsfargo.com

Fax: (212) 509-1716

Checks should be delivered to the following address:

Wells Fargo Bank, N.A.

Participant Accounting

MAC N9303-121

608 2nd Avenue South

Minneapolis, Minnesota 55479

Ref: NorthStar Senior Care Trust, Inc.

Wires to the Escrow Agent should be directed to the following:

Wells Fargo Bank, N.A.

ABA: 121000248

A/C #: 4121911713

Participant Accounting Clearing Acct

Reference Account Number [          ]

Ref: NorthStar Senior Care Trust, Inc.

Attention: Lisa D’Angelo

Any party may change its address for purposes of this paragraph by giving the other party written
notice of the new address in the manner set forth above.

     10. Indemnification of the Escrow Agent. The Company and the Dealer Manager hereby
jointly and severally indemnify, defend and hold the Escrow Agent (and its officers, directors,
employees and agents) harmless from and against any and all loss, claim, liability, cost, damage
and expense, including, without limitation, reasonable counsel fees and expenses, which the Escrow
Agent may suffer or incur by reason of any action, claim or proceeding brought against the Escrow
Agent arising out of or relating in any way to this Agreement or any transaction to which this
Agreement relates unless such action, claim or proceeding is the result of the willful misconduct
or gross negligence of the Escrow Agent. The provisions of this section shall survive the
termination of this Agreement and the resignation or removal of the Escrow Agent.

     11. Attachment of Escrow Account; Compliance with Legal Orders. In the event that any
escrow property shall be attached, garnished or levied upon by any court order, or the delivery
thereof shall be stayed or enjoined by an order of a court, or any order, judgment or decree shall
be made or entered by any court order affecting the property deposited under this Agreement, the
Escrow Agent is hereby expressly authorized, in its sole discretion, to obey and comply with all
writs, orders or decrees so entered or issued, which it is advised by legal counsel of its own
choosing is binding upon it, whether with or without jurisdiction, and in the event that the Escrow
Agent obeys or complies with any such writ order or decree it shall not be liable to any of the
parties hereto or to any other person, firm or

6

 

corporation, by reason of such compliance notwithstanding such writ, order or decree being
subsequently reversed, modified, annulled, set aside or vacated.

     12. Successors and Assigns.

          (i) Except as otherwise provided in this Agreement, no party hereto shall assign this
Agreement or any rights or obligations hereunder without the prior written consent of the other
parties hereto and any such attempted assignment without such prior written consent shall be void
and of no force and effect. This Agreement shall inure to the benefit of and shall be binding upon
the heirs, executors, administrators, successors and permitted assigns of the parties hereto.

          (ii) Notwithstanding the above, any corporation or association into which the Escrow Agent may
be converted or merged, or with which it may be consolidated, or to which it may sell or transfer
all or substantially all of its corporate trust business and assets as a whole or substantially as
a whole, or any corporation or association resulting from any such conversion, sale, merger,
consolidation or transfer to which the Escrow Agent is a party, shall be and become the successor
Escrow Agent under this Agreement and shall have and succeed to the rights, powers, duties,
immunities and privileges as its predecessor, without the execution or filing of any instrument or
paper or the performance of any further act.

     13. Term. This Agreement shall terminate within thirty (30) days of receipt of
written notice of termination by the Company and the Dealer Manager to the Escrow Agent. In the
event of the release of all Subscriber funds and all accrued interest in accordance with Section 4
of this Agreement, this Agreement shall terminate and the Escrow Agent shall be relieved of all
responsibilities in connection with the Escrow Account, except claims which are occasioned by its
gross negligence or willful misconduct.

     14. Governing Law; Jurisdiction. This Agreement shall be construed, performed, and
enforced in accordance with, and governed by, the internal laws of the State of New York, without
giving effect to the principles of conflicts of laws thereof. Each party hereby consents to the
personal jurisdiction and venue of any court of competent jurisdiction in the State of New York.

     15. Severability. In the event that any part of this Agreement is declared by any
court or other judicial or administrative body to be null, void or unenforceable, said provision
shall survive to the extent it is not so declared, and all of the other provisions of this
Agreement shall remain in full force and effect.

     16. Amendments; Waivers. This Agreement may be amended or modified, and any of the
terms, covenants, representations, warranties or conditions hereof may be waived, only by a written
instrument executed by the parties hereto or, in the case of a waiver, by the party waiving
compliance. Any waiver by any party of any condition, or of the breach of any provision, term,
covenant, representation or warranty contained in this Agreement, in any one or more instances,
shall not be deemed to be nor construed as further or continuing waiver of any such condition, or
of the breach of any other provision, term, covenant, representation or warranty of this Agreement.

     17. Entire Agreement; Counterparts. This Agreement contains the entire understanding
among the parties hereto with respect to the escrow contemplated hereby and supersedes and replaces
all prior and contemporaneous agreements and understandings, oral or written, with regard to such
escrow. This Agreement, and any amendments hereto, may be executed by the parties hereto in two or
more counterparts, each of which shall be deemed an original.

7

 

     18. Section Headings. The section headings in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Agreement.

     19. Disputes. In the event of a disagreement among any of the parties to this
Agreement, or among them or any other person resulting in adverse claims and demands being made in
connection with or from any property in the Escrow Account, the Escrow Agent shall be entitled to
refuse to comply with any such claims or demands as long as such disagreement may continue, and in
so refusing, shall make no delivery or other disposition of any property then held by it in the
Escrow Account under this Agreement, and in so doing, the Escrow Agent shall be entitled to
continue to refrain from acting until (i) the right of adverse claimants shall have been finally
settled by binding arbitration or finally adjudicated in a court assuming and having jurisdiction
of the property involved herein or affected hereby or (ii) all differences shall have been adjusted
by agreement and the Escrow Agent shall have been notified in writing of such agreement signed by
the parties hereto.

     In the event of such dispute, the Escrow Agent shall be entitled, in its discretion and
judgment, to tender into the registry or custody of any court of competent jurisdiction all money
or property in its hands under this Agreement, together with such legal pleadings as the Escrow
Agent deems appropriate, and thereupon be discharged from all further duties and liabilities under
this Agreement. In the event of any uncertainty as to its duties hereunder, the Escrow Agent may
refuse to act under the provisions of this Agreement pending order of a court of competent
jurisdiction and the Escrow Agent shall have no liability to the Company, the Dealer Manager or to
any other person as a result of such action. Any such legal action may be brought in such court as
the Escrow Agent shall determine to have jurisdiction thereof. The filing of any such legal
proceedings shall not deprive the Escrow Agent of its compensation earned prior to such filing.
All costs, expenses and reasonable attorneys fees the Escrow Agent incurs in connection with such
proceeding shall be paid by the Company.

     20. Limited Purpose. The Company and the Dealer Manager hereby acknowledge that the
Escrow Agent is serving as the escrow agent only for the limited purposes herein set forth, and
hereby agree that they will not represent or imply that the Escrow Agent, by serving as the Escrow
Agent hereunder or otherwise, has investigated the desirability or advisability of investment in
the Company or have approved, endorsed or passed upon the merits of the Shares, nor shall they use
its name in any manner whatsoever in connection with the offer or sale of the Shares other than by
acknowledgment that the Escrow Agent has agreed to serve as the Escrow Agent for the limited
purposes set forth herein.

     21. Resignation. The Escrow Agent may resign upon thirty (30) days’ advance written
notice to the Company and the Dealer Manager. Such resignation shall become effective on the date
specified in such notice, which shall be not earlier than thirty (30) days after such written
notice has been given. In the event of any such resignation, a successor escrow agent, which shall
be a bank or trust company organized under the laws of the United States of America, shall be
appointed by the mutual agreement of the Company and the Dealer Manager. Any such successor escrow
agent shall deliver to the Company and the Dealer Manager a written instrument accepting such
appointment, and thereupon shall succeed to all the rights and duties of the Escrow Agent hereunder
and shall be entitled to receive the Collected Funds from the Escrow Agent. The Escrow Agent shall
promptly pay the Subscription Payments in the Escrow Account, including interest thereon, to the
successor escrow agent. If a successor escrow agent is not appointed by the Company or the Dealer
Manager within the thirty (30) day period following such notice, the Escrow Agent may petition any
court of competent jurisdiction to name a successor escrow agent. All costs, expenses and
reasonable attorneys fees the Escrow Agent incurs in connection with such proceeding shall be paid
by the Company.

     22. Removal. The Escrow Agent may be jointly removed by the Company and the Dealer
Manager at any time, by written notice executed by both of them (which may be executed in
counterparts)

8

 

provided to the Escrow Agent, which instrument shall become effective on the date specified in
such written notice. The removal of the Escrow Agent shall not deprive the Escrow Agent of its
compensation earned prior to such removal. In the event of any such removal, a successor escrow
agent, which shall be a bank or trust company organized under the laws of the United States of
America, shall be appointed by the mutual agreement of the Company and the Dealer Manager. Any
such successor escrow agent shall deliver to the Company and the Dealer Manager a written
instrument accepting such appointment, and thereupon shall succeed to all the rights and duties of
the Escrow Agent hereunder and shall be entitled to receive the Collected Funds from the Escrow
Agent. The Escrow Agent shall promptly pay the Subscription Payments in the Escrow Account,
including interest thereon, to the successor escrow agent. If a successor escrow agent is not
appointed by the Company or the Dealer Manager within the thirty (30) day period following such
notice, the Escrow Agent may petition any court of competent jurisdiction to name a successor
escrow agent. All costs, expenses and reasonable attorneys fees the Escrow Agent incurs in
connection with such proceeding shall be paid by the Company.

     23. Maintenance of Records. The Escrow Agent shall maintain accurate records of all
transactions hereunder. Promptly after the termination of this Agreement, and as may from time to
time be reasonably requested by the Company before such termination, the Escrow Agent shall provide
the Company with a copy of such records, certified by the Escrow Agent to be a complete and
accurate account of all transactions hereunder. The authorized representatives of the Company and
the Dealer Manager shall also have access to the Escrow Agent’s books and records to the extent
relating to its duties hereunder, during normal business hours upon reasonable notice to the Escrow
Agent, and at the requesting party’s expense.

     24. Force Majeure. No party to this Agreement shall be liable to any other party for
losses arising out of, or the inability to perform its obligations under the terms of this
Agreement, due to acts of God, which shall include, but shall not be limited to, fire, floods,
strikes, mechanical failure, war, riot, nuclear accident, earthquake, terrorist attack, computer
piracy, cyber-terrorism or other acts beyond the control of the parties hereto.

     25. Representatives. The applicable persons designated on Exhibit D hereto
have been duly appointed to act as its representatives hereunder and have full power and authority
to execute and deliver any written directions, to amend, modify or waive any provision of this
Agreement and to take any and all other actions on behalf of the Company or the Dealer Manager, as
applicable, under this Agreement, all without further consent or direction from, or notice to, it
or any other party.

     26. USA PATRIOT Act. The Company and the Dealer Manager acknowledge that a portion
of the identifying information set forth on Exhibit D is being requested by the Escrow
Agent in connection with the USA Patriot Act, Pub. L. 107-56 (the “Act”), and the Company
and the Dealer Manager agree to provide any additional information requested by the Escrow Agent in
connection with the Act or any similar legislation or regulation to which Escrow Agent is subject,
in a timely manner.

     27. Illegal Activities. The Escrow Agent shall have the rights in its sole discretion
to not accept appointment as escrow agent and reject funds and collateral from any party in the
event that Escrow Agent has reason to believe that such funds or collateral violate applicable
banking practices or applicable laws or regulations, including but not limited to the Patriot Act.
In the event of suspicious or illegal activity and pursuant to all applicable laws, regulations and
practices, the other parties to this Agreement will assist Escrow Agent and comply with any
reviews, investigations and examinations directed against the deposited funds.

[Remainder of page intentionally left blank]

9

 

     IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to be executed the
day and year first set forth above.

	 	 	 	 	 
	 	NORTHSTAR SENIOR CARE TRUST, INC., the Company

 	 
	 	By:  	 	 
	 	 	Name:  	Andrew C. Richardson 	 
	 	 	Title:  	Chief Financial Officer and Treasurer 	 
	 
	 	NRF CAPITAL MARKETS, LLC, as Dealer Manager

 	 
	 	By:  	 	 
	 	 	Name:  	W. Timothy Toole 	 
	 	 	Title:  	President 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Escrow Agent	 
	 
	 	By:  	 	 
	 	 	Name:  	Lisa D’Angelo 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

Exhibit A

Prospectus

(See
Attached)

 

 

Exhibit B

CORPORATE TRUST SERVICES

SCHEDULE OF FEES

Subscription ESCROW AGENT

For

NorthStar Senior Care Trust, Inc.

Wells Fargo Corporate Trust Services

Fee Schedule for Subscription Escrow Agent for the

NorthStar Senior Care Trust, Inc.

      

			
	Acceptance Fee:
	 	$1,500.00

Initial Fees as they relate to Wells Fargo Bank acting in the capacity of Escrow Agent —
includes creation and examination of the Escrow Agreement; acceptance of the Escrow appointment;
setting up of Escrow Account(s) and accounting records; and coordination of receipt of funds for
deposit to the Escrow Account.

      

			
	Annual Escrow Agent Administration Fee:
	 	For up to 300 Investors — $2,500.00

$1,250.00 per each additional 100 Investors

For ordinary administration services by Escrow Agent — includes daily routine account management;
investment transactions; cash transaction processing (including wires and check processing);
monitoring claim notices pursuant to the agreement; disbursement of the funds in accordance with
the agreement; and mailing of trust account statements to all applicable parties. Includes access
to CTSLINK© (secure website for information dissemination to all applicable parties. Includes
access to Trust Portfolio Reporting © for Escrow Account information Northstar Senior Care Trust,
Inc. will provide subscriber data in a mutually agreeable electronic format compatible with Wells
Fargo system (Excel preferred) to include subscriber name(s), address, city, state, zip code, tax
ID or SSN number, dollar amount of investment and date of receipt.

$1,500.00 is payable in advance and due at the time of Escrow Agreement execution. $2,500 will be
billed upon initial funding to the escrow account. Additional fees will be billed in arrears
based on the final number of investors per the above schedule. Fees will not be prorated in case
of early termination or numbers of investors less than a total of 100 on a minimum or incremental
basis.

      

			
	Activity Fees:
	 	$10.00 per check disbursement

$20.00 per wire disbursement

Only applicable if funds held in Escrow are returned to the Investors.

      

			
	Tax Reporting:
	 	Minimum Fee of $250.00 and

$10.00 per 1099 charge will be assessed

(minimum fee charge will apply only if 1099’s are issued)

Wells Fargo’s fee quote is based on the following assumptions:

	 	•	 	Number of Escrow Accounts to be established: One (1)

B-1

 

	 	•	 	Number of Deposits to Escrow Account: Unlimited
	 
	 	•	 	Term of Escrow: No longer than One (1) Year
	 
	 	•	 	This fee schedule assumes that Wells Fargo is able to receive the current investor
information and transaction history in a format compatible to the STARs system
(preferably in Excel). If manual entry is required, Acceptance Fee will be increased by
an additional $1,500.
	 
	 	•	 	This Fee Schedule assumes that balances in the Escrow Account will be invested in
Money Market Funds Or Deposit Accounts
	 
	 	•	 	All funds will be received from or distributed to a domestic or an approved foreign
entity

      

			
	Out-Of-Pocket Expenses:
	 	At Cost

We only charge for out-of-pocket expenses in response to specific tasks assigned by the
client. Therefore, we cannot anticipate what specific out-of-pocket items will be needed or
what corresponding expenses will be incurred. Possible expenses would be, but are not limited
to, express mail and messenger charges, travel expenses to attend closing or other meetings.
There are no charges for indirect out-of- pocket expenses.

This fee schedule is based upon the assumptions listed above which pertain to the
responsibilities and risks involved in Wells Fargo undertaking the role of Escrow Agent. These
assumptions are based on information provided to us as of the date of this fee schedule. Our fee
schedule is subject to review and acceptance of the final documents. Should any of the
assumptions, duties or responsibilities change, we reserve the right to affirm, modify or
rescind our fee schedule. If the Account(s) does not open within eight (8) months of the date
shown below, this proposal will be deemed null and void.

Submitted on: November 12, 2010

I, on behalf of the Company, am duly authorized to sign on behalf of and bind the Company
and hereby confirm receipt and agreement with all of the terms and conditions of this
Schedule of Fees.

NorthStar Senior Care Trust, Inc.

	 	 	 	 	 	 	 	 	 

	 

	 	 

By:
	 	 
	 	 

Date
	 	 
	 

	 	Title:	 	 	 	 	 	 

B-2

 

Exhibit C

Agency and Custody Account Direction

For Cash Balances

Wells Fargo Money Market Deposit Accounts

Direction to use the following Wells Fargo Money Market Deposit Accounts for Cash Balances for the
escrow account or accounts (the “Account”) established under the Escrow Agreement to which this
Exhibit C is attached.

The Escrow Agent is hereby directed to deposit, as indicated below, or as the Company shall direct
further in writing from time to time, all cash in the Account(s) in the following money market
deposit account of Wells Fargo Bank, National Association (Bank):

Wells Fargo Money Market Deposit Account (MMDA)

The Company understands that amounts on deposit in the MMDA are insured, subject to the applicable
rules and regulations of the Federal Deposit Insurance Corporation (FDIC), in the basic FDIC
insurance amount of $100,000 per depositor, per insured bank. This includes principal and accrued
interest up to a total of $100,000. Note: On May 20, 2009, FDIC deposit insurance temporarily
increased from $100,000 to $250,000 per depositor through December 31, 2013.

The Company acknowledges that it has full power to direct investments of the Account(s).

The Company understands that it may change this direction at any time and that it shall continue in
effect until revoked or modified by the Company by written notice to the Escrow Agent.

C-1

 

Exhibit D

Company

Representative: The following individual(s) is
hereby appointed as representative of the Company
under the Escrow Agreement:

	 	 	 	 	 	 	 	 	 

	 

	 	Name: Lisa Meyer
	 	Specimen Signature:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Name: Keith Feldman
	 	Specimen Signature:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Name: Joann Sze
	 	Specimen Signature:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

Dealer Manager

Representative: The following individual(s) is
hereby appointed as representative of the Dealer
Manager under the Escrow Agreement:

	 	 	 	 	 	 	 	 	 

	 

	 	Name: W. Timothy Toole
	 	Specimen Signature:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

D-1

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