Document:

FORM OF
		EXCHANGE AGREEMENT

	  

	 dated as
		of

	  

	 [          
		], 2007

	  

	 

	 
	 

	 
	 

	 TABLE OF
		CONTENTS

	  

	 
		
		  	 	 	
				  Page

				  
	 	 	 
	
				  ARTICLE
					 I  DEFINITIONS
 	
				  1

				  
	
				  Section
					 1.1
 	
				  DEFINITIONS

				  	
				  1

				  
	
				  Section
					 1.2
 	
				  GENDER

				  	
				  5

				  
	
				  ARTICLE
					 II  EXCHANGE
 	
				  5

				  
	
				  Section
					 2.1
 	
				  EXCHANGE
					 WITH ENTITIES
 	
				  5

				  
	
				  Section
					 2.2
 	
				  REVOCABILITY;
					 EXPENSES
 	
				  8

				  
	
				  Section
					 2.3
 	
				  DELEGATION;
					 FIG CALL RIGHT
 	
				  8

				  
	
				  ARTICLE
					 III  MISCELLANEOUS 
 	
				  8

				  
	
				  Section
					 3.1
 	
				  NOTICES

				  	
				  8

				  
	
				  Section
					 3.2
 	
				  INTERPRETATION

				  	
				  9

				  
	
				  Section
					 3.3
 	
				  PARTNERS

				  	
				  9

				  
	
				  Section
					 3.4
 	
				  PARTNERSHIPS

				  	
				  10

				  
	
				  Section
					 3.5
 	
				  SEVERABILITY

				  	
				  10

				  
	
				  Section
					 3.6
 	
				  COUNTERPARTS

				  	
				  10

				  
	
				  Section
					 3.7
 	
				  ENTIRE
					 AGREEMENT; NO THIRD PARTY BENEFICIARIES
 	
				  10

				  
	
				  Section
					 3.8
 	
				  FURTHER
					 ASSURANCES
 	
				  10

				  
	
				  Section
					 3.9
 	
				  GOVERNING
					 LAW; EQUITABLE REMEDIES
 	
				  10

				  
	
				  Section
					 3.10
 	
				  CONSENT
					 TO JURISDICTION
 	
				  11

				  
	
				  Section
					 3.11
 	
				  AMENDMENTS;
					 WAIVERS
 	
				  11

				  
	
				  Section
					 3.12
 	
				  ASSIGNMENT

				  	
				  12

				  
	
				  Section
					 3.13
 	
				  TAX
					 TREATMENT
 	
				  12

				  
	
				  Section
					 3.14
 	
				  HEADINGS

				  	
				  12

				  

 
 

	  

	 i

	  

	 

	 
	 

	 
	 
		EXCHANGE
		  AGREEMENT (the "Agreement"), dated as of
		  [             
		  ], 2007, among FIG Corp., a Delaware corporation ("FIG"), FIG Asset Co. LLC, a
		  Delaware limited liability company ("FIGA"), Fortress Operating Entity I LP, a
		  Delaware limited partnership ("FOE I"), Fortress Operating Entity II LP, a
		  Delaware limited partnership ("FOE II"), Fortress Operating Entity III LP, a
		  Delaware limited partnership ("FOE III"), Principal Holdings I LP, a Delaware
		  limited partnership ("PH I"), and Peter Briger, Jr., Wesley Edens, Robert
		  Kauffman, Randal Nardone and Michael Novogratz (the "Original Partners").
		  Capitalized terms used but not otherwise defined herein have the respective
		  meanings ascribed thereto in Section 1.1. 

		 

		WHEREAS,
		  in connection with the closing of the IPO, Fortress and its Affiliates intend
		  to consummate the transactions described in the Registration Statement on Form
		  S-1 filed with the Commission on November 8, 2006 (Registration No. 333-138514)
		  (as amended and supplemented from time to time, the "IPO Registration
		  Statement"); 

		 

		WHEREAS,
		  each Original Partner owns Partnership Units in each Partnership;

		 

		WHEREAS,
		  the parties hereto desire to provide for the possible future exchange of
		  Partnership Units for Class A Shares, on the terms and subject to the
		  conditions set forth herein; 

		 

		WHEREAS,
		  an Exchange Right, once exercised, represents a several, and not a joint and
		  several, obligation of the Partnerships, and no Partnership shall have any
		  obligation or right to acquire Partnership Units issued by another
		  Partnership;

		 

		WHEREAS,
		  no Partnership shall have any obligation to acquire from any Partner any
		  Partnership Unit issued by it unless such Partner exercises its Exchange Right
		  with respect to an equal number of Partnership Units in each Partnership and
		  delivers to Fortress for cancellation a number of Class B Shares equal to such
		  number of Partnership Units; and

		 

		WHEREAS,
		  the parties intend that an Exchange consummated hereunder be treated for
		  Federal income tax purposes, to the extent possible, as a taxable sale of
		  Partnership Units by the exchanging Partner to FIG or FIGA, as the case may
		  be;

		 

		NOW,
		  THEREFORE, in consideration of the mutual covenants and undertakings contained
		  herein and for good and valuable consideration, the receipt and sufficiency of
		  which are hereby acknowledged, the parties hereto hereby agree as
		  follows:

		 

		ARTICLE
		  I

		
		   

		  DEFINITIONS

		   

		  Section
			 1.1 DEFINITIONS. As
			 used in this Agreement, the following terms shall have the following meanings:
			 

		   

		  An
			 "AFFILIATE" of any Person means any other Person that directly or indirectly,
			 through one or more intermediaries, Controls, is Controlled by, or is under
			 common Control with, such first Person. "CONTROL" means the possession, direct
			 or indirect, of the power to direct 

		   

		  

		  
		  

		  
		   

		  or cause
			 the direction of the management and policies of a Person, whether through
			 ownership of voting securities, by contract or otherwise.

		   

		  "AGGREGATE
			 VALUE" means, with respect to any Potentially Exchanged FOG Units, an amount
			 equal to the product of (a) the number of such Potentially Exchanged FOG Units,
			 multiplied by (b) the closing sales price of a Class A Share on the primary
			 securities exchange on which the Class A Shares are then traded on the Business
			 Day immediately preceding the date of delivery of the Exchange Request or
			 Exchange Notice for such Potentially Exchanged FOG Units.

		   

		  "AGREEMENT"
			 has the meaning set forth in the recitals to this Agreement.

		   

		  "AGREEMENT
			 AMONG PRINCIPALS" means
			 the Agreement, dated as of the date hereof, by and among the Original
			 Partners.

		   

		  "BUSINESS
			 DAY” means Monday through Friday of each week, except that a legal holiday
			 recognized as such by the government of the United States of America or the
			 State of New York shall not be regarded as a Business Day.

		   

		  "CALL
			 RIGHT" shall have the meaning set forth in Section 2.3.

		   

		  "CLASS A
			 SHARES" means the Class A Shares of Fortress.

		   

		  "CLASS B
			 SHARES" means the Class B Shares of Fortress.

		   

		  "CLOSING"
			 and "CLOSING DATE" shall have the meanings set forth in Section
			 2.1(g).

		   

		  "COMMISSION"
			 means the United States Securities and Exchange Commission or any similar
			 agency then having jurisdiction to enforce the Securities Act.

		   

		  "EXCHANGE"
			 shall mean the exchange by a Partner of a FOG Unit for a Class A Share, as
			 described in Article II of this Agreement.

		   

		  "EXCHANGE
			 RIGHT" shall mean the right of a Partner to exchange a FOG Unit for a Class A
			 Share pursuant to Article II of this Agreement.

		   

		  "EXCHANGE
			 REQUEST" shall have the meaning set forth in Section 2.1(a).

		   

		  "EXCHANGE
			 NOTICE" shall have the meaning set forth in Section 2.1(b).

		   

		  "FIG"
			 has the meaning set forth in the recitals to this Agreement.

		   

		  "FIGA"
			 has the meaning set forth in the recitals to this Agreement.

		   

		  "FINAL
			 EXCHANGED FOG UNITS" shall mean, with respect to any Partner and any Closing,
			 an amount of FOG Units equal to (a) the number of Potentially Exchanged FOG
			 Units of such Partner with respect to such Closing, less (b) the number of such
			 Potentially Exchanged FOG Units with respect to which such Partner revokes an
			 Exchange Request or Exchange Notice pursuant to Section 2.2.

		   

		  2

		   

		  

		  
		  

		  
		   

		  "FOG
			 UNIT" refers to a unit in the Fortress Operating Group, which represents one
			 Partnership Unit in each Partnership.

		   

		  "FORTRESS"
			 shall mean Fortress Investment Group LLC, a Delaware limited liability company
			 formerly known as Fortress Investment Group Holdings LLC.

		   

		  "FORTRESS
			 OPERATING GROUP" means, collectively, the Persons directly Controlled by FIG or
			 FIGA. As of the date of this Agreement, FOE I, FOE II, FOE III and PH I
			 constitute the Fortress Operating Group. 

		   

		  "GOVERNMENTAL
			 ENTITY" means any court, administrative agency, regulatory body, commission or
			 other governmental authority, board, bureau or instrumentality, domestic or
			 foreign and any subdivision thereof.

		   

		  "INVESTING
			 FOG UNIT" means refers one Partnership Unit in each of the Principal
			 Entities.

		   

		  "IPO"
			 means the initial offering and sale of Class A Shares to the public, as
			 described in the IPO Registration Statement. 

		   

		  "IPO
			 REGISTRATION STATEMENT" has the meaning set forth in the recitals of this
			 Agreement.

		   

		  "LIENS"
			 means any and all liens, charges, security interests, options, claims,
			 mortgages, pledges, proxies, voting trusts or agreements, obligations,
			 understandings or arrangements or other restrictions on title or transfer of
			 any nature whatsoever.

		   

		  "OPERATING
			 FOG UNIT" means one Partnership Unit in each of the Operating
			 Entities.

		   

		  "OPERATING
			 ENTITIES" means the Persons directly Controlled by FIG.

		   

		  "ORIGINAL
			 PARTNERS" has the meaning set forth in the recitals to this Agreement.
			 

		   

		  "PARTNERS"
			 means the Original Partners and all other Persons who execute and deliver a
			 joinder to this Agreement, as contemplated in Section 3.3.

		   

		  “PARTNERSHIP”
			 shall mean any Person that is included in the Fortress Operating Group, and
			 shall mean any Operating Entity or Principal Entity. As of the date of this
			 Agreement, the Partnerships consist of FOE I, FOE II, FOE III and PH I, but if
			 any other Person subsequently becomes a Partnership, FIG and FIGA will cause it
			 to execute a joinder to this Agreement, pursuant to Section 3.4.

		   

		  "PARTNERSHIP
			 PARTICIPATION NOTICE" shall have the meaning set forth in Section
			 2.1(b).

		   

		  "PARTNERSHIP
			 UNIT" means one unit of interest in any of the Partnerships (including, without
			 limitation, a limited partnership interest and a limited liability company
			 interest).

		   

		  3

		   

		  

		  
		  

		  
		   

		  "PERMITTED
			 TRANSFEREE" shall mean with respect to each Original Partner (a) such Original
			 Partner's spouse, (b) a lineal descendant of such Original Partner's maternal
			 or paternal grandparents, the spouse of any such descendant or a lineal
			 descendant of any such spouse, (c) a Charitable Institution (as defined below),
			 (d) a trustee of a trust (whether inter
			 vivos or
			 testamentary), all of the current beneficiaries and presumptive remaindermen of
			 which are one or more of such Original Partner and Persons described in clauses
			 (a) through (c) of this definition; provided, however, that any subsequent
			 transfer of any portion of the ownership of the entity such that it is owned in
			 any part by a Person other than an Original Partner and/or a Person described
			 in clauses (a) through (d) of this definition will not be deemed to be a
			 transfer to a Permitted Transferee, (e) a corporation, limited liability
			 company or partnership, of which all of the outstanding shares of capital stock
			 or interests therein are owned by one or more of such Original Partner and
			 Persons described in clauses (a) through (d) of this definition, (f) an
			 individual mandated under a qualified domestic relations order, (g) a legal or
			 personal representative of such Original Partner in the event of his death or
			 Disability (as defined below), (h) any other Original Partner with respect to
			 transactions contemplated by the Principals Agreement, (i) any other Original
			 Partner who is then employed by Fortress or any of its Affiliates or any
			 Permitted Transferee of such Original Partner in respect to any transaction not
			 contemplated by the Principals Agreement, and (j) in the case of Mr. Novogratz,
			 MN1 LLC, a Delaware limited liability company. For purpose of this definition:
			 (i) "lineal descendants" shall not include individuals adopted after attaining
			 the age of eighteen (18) years and such adopted Person's descendants; (ii)
			 Charitable Institution shall refer to an organization described in section
			 501(c)(3) of the Code (or any corresponding provision of a future United State
			 Internal Revenue law) which is exempt from income taxation under section 501(a)
			 thereof; (iii) "presumptive remaindermen" shall refer to those Persons entitled
			 to a share of a trust's assets if it were then to terminate; and (iv)
			 Disability shall refer to any physical or mental incapacity which prevents such
			 Original Partner from carrying out all or substantially all of his duties under
			 his employment agreement with Fortress or any of its Subsidiaries in such
			 capacity for any period of one hundred twenty (120) consecutive days or any
			 aggregate period of six (6) months in any 12-month period, as determined, in
			 its sole discretion, by a majority of the members of the board of directors of
			 Fortress, including a majority of the Original Partners who are then members of
			 the board of directors of Fortress (but for the sake of clarity not including
			 the Original Partner in respect of which the determination is being
			 made).

		   

		  "PERSON"
			 means any individual, corporation, firm, partnership, joint venture, limited
			 liability company, estate, trust, business association, organization,
			 Governmental Entity or other entity.

		   

		  "POSSIBLE
			 CLOSING DATE" shall mean the fifth Business Day prior to the last Business Day
			 of the calendar month immediately preceding the last calendar month of each
			 fiscal quarter of Fortress.

		   

		  "POTENTIALLY
			 EXCHANGED FOG UNITS" shall mean, with respect to any Partner and any Closing,
			 the maximum number of FOG Units that such Partner wishes to exchange for Class
			 A Shares at such Closing, as set forth in such Partner’s Exchange Request
			 or Exchange Notice for such Closing.

		   

		  "PRINCIPAL
			 ENTITIES" means the Persons directly Controlled by FIGA.

		   

		  4

		   

		  

		  
		  

		  
		   

		  "PRINCIPALS
			 AGREEMENT" means the Agreement Among Principals, dated as of the date hereof,
			 by and among the Original Partners.

		   

		  "PROCEEDING"
			 has the meaning set forth in Section 3.10.

		   

		  "SELECTED
			 COURTS" has the meaning set forth in Section 3.10.

		   

		  "SHAREHOLDERS
			 AGREEMENT" means
			 the Shareholders Agreement, dated as of the date hereof, by and among the
			 Original Partners and Fortress.

		   

		  "SUBSIDIARIES"
			 means, with respect to any Person, as of any date of determination, any other
			 Person as to which such Person, owns, directly or indirectly, or otherwise
			 controls more than 50% of the voting shares or other similar interests or a
			 sole general partner interest or managing member or similar interest of such
			 Person.

		   

		  Section
			 1.2 GENDER. For
			 the purposes of this Agreement, the words "he," "his" or "himself" shall be
			 interpreted to include the masculine, feminine and corporate, other entity or
			 trust form.

		   

		  ARTICLE
			 II

		   

		  EXCHANGE

		   

		  Section
			 2.1 EXCHANGE
			 WITH ENTITIES.

		   

		  (a) Notice
			 for Exchange. A
			 Partner may elect to exchange any number of his FOG Units for Class A Shares by
			 delivering a written notice (an "Exchange Request") to such effect to the
			 Partnerships, not less than 25 Business Days prior to the next Possible Closing
			 Date, setting forth the maximum number of FOG Units the Partner wishes to
			 exchange for Class A Shares (such Partner's "Potentially Exchanged FOG Units");
			 provided, however, that the Potentially Exchanged FOG Units must have an
			 Aggregate Value, as of the date of such notice, of at least twenty million
			 dollars ($20,000,000). The Partner shall represent in the Exchange Request that
			 he owns, and will continue to own until the Closing, his Potentially Exchanged
			 FOG Units and the Class B Shares required to be delivered to Fortress at the
			 applicable Closing, in each case, free and clear of all Liens, except as set
			 forth in such Exchange Request, and, if there are any Liens identified in the
			 Exchange Request, such Partner shall covenant that he will deliver to the
			 Partnerships at the applicable Closing evidence reasonably satisfactory to the
			 Partnerships that all such Liens have been released. Any Exchange initiated
			 pursuant to this Section 2.1(a) shall occur on the applicable Closing
			 Date.

		   

		  (b) Notice
			 to Other Partners.
			 Promptly upon receipt of a valid Exchange Request from a Partner, each
			 Partnership shall provide written notice (a "Partnership Participation Notice")
			 to every other Partner informing all such Partners that they may exchange FOG
			 Units with the Partnerships for Class A Shares on the next Possible Closing
			 Date. Each Partner shall have the right to exchange any or all of his FOG Units
			 with the Partnerships for Class A Shares by delivering to the Partnerships,
			 within ten Business Days of delivery of such Partnership Participation Notice,
			 a written notice (an "Exchange Notice"), setting forth the Partner's desire to
			 Exchange FOG Units and the number of FOG Units the Partner wishes to
			 

		   

		  5

		   

		  

		  
		  

		  
		   

		  Exchange
			 for Class A Shares. The Partner shall represent in the Partner Notice that he
			 owns, and will continue to own until the Closing, such FOG Units and the Class
			 B Shares required to be delivered to Fortress at the applicable Closing, in
			 each case, free and clear of all Liens, except as set forth in such Exchange
			 Notice, and, if there are any Liens identified in the Partner Notice, such
			 Partner shall covenant that he will deliver to the Partnerships at the
			 applicable Closing evidence reasonably satisfactory to the Partnerships that
			 all such Liens have been released. 

		   

		  (c) Concurrent
			 Exchanges. The
			 Exchange Right, once exercised, represents a several, and not a joint and
			 several, obligation of the Partnerships, and no Partnership shall have any
			 obligation or right to acquire one or more Partnership Units issued by another
			 Partnership. Notwithstanding any other provision of this Agreement, an Exchange
			 Request or an Exchange Notice shall not be valid unless the Partner giving such
			 Exchange Request or Exchange Notice requests an exchange of an equal number of
			 Partnership Units in each Partnership.

		   

		  (d) Engagement
			 of a Financial Advisor. Upon
			 receiving a valid Exchange Request pursuant to Section 2.1(a), the Partnerships
			 shall collectively engage a financial advisor of national reputation to
			 determine the relative value of each Operating Entity and each Principal Entity
			 as of the applicable Closing Date and the parties hereto agree to be bound by
			 such financial advisor's determination, including, without limitation, for tax
			 reporting purposes. The Partnerships shall be responsible for the fees and
			 expenses of such financial advisor. The parties agree, however, that in the
			 event that the Partnerships have received a valuation or an opinion from a
			 financial advisor of national reputation regarding such relative values dated
			 within 45 days prior to the applicable Closing Date, and each of the board of
			 directors of FIG and the sole member of FIGA determines in its good faith
			 judgment that no material change has occurred, or is expected to occur prior to
			 Closing, with respect to the Partnerships, the Partnerships may elect to use
			 such valuation or opinion for purposes of this Section 2.1(d) and the parties
			 hereto agree to be bound by such valuation or opinion, including, without
			 limitation, for tax reporting purposes.

		   

		  (e) Closing.

		   

		  (i) If an
			 Exchange Request has been timely delivered pursuant to Section 2.1(a), then,
			 subject to Section 2.2, on the next Possible Closing Date (as such date may be
			 extended pursuant to Section 2.1(e)(ii) or (iii), the "Closing Date"), the
			 parties shall effect the closing (the "Closing") of the transactions
			 contemplated by Section 2.1 at the offices of Skadden, Arps, Slate, Meagher
			 & Flom LLP, Four Times Square, New York, New York, 10036, or at such other
			 time, at such other place, and in such other manner, as the applicable parties
			 hereto shall agree in writing.

		   

		  (ii) If the
			 Closing Date falls on a day during which officers and directors of
			 Fortress are prohibited by the trading policies of Fortress from disposing
			 of equity securities of Fortress, such Closing Date shall instead be
			 deemed to be the first Business Day after such date that the officers and
			 directors of Fortress are allowed to dispose of equity securities of Fortress
			 pursuant to the trading policies of Fortress.

		   

		  6

		   

		  

		  
		  

		  
		   

		  (iii) Any of
			 the Partnerships may, if it determines, based on the advice of counsel, that
			 consummating an Exchange contemplated by this Section 2.1 on the next Possible
			 Closing Date will result in adverse tax consequences to the general partner of
			 such Partnership, delay the applicable Closing for up to six months by giving
			 notice of the new Closing Date to all Partners and Partnerships. The new
			 Closing Date is not required to be a Possible Closing Date.

		   

		  (iv) The
			 Partnerships are not required to effect a Closing relating to the delivery of
			 an Exchange Request unless the aggregate number of Final Exchanged FOG Units of
			 all Partners who elect to participate in such Closing by delivering an Exchange
			 Request or Exchange Notice have an Aggregate Value of at least $50 million;
			 provided, however, that the Partnerships may, collectively, waive this
			 condition at any time. 

		   

		  (f) Closing
			 Condition. The
			 obligations of all of the parties to consummate an Exchange pursuant to this
			 Section 2.1 shall be subject to the condition that there shall be no
			 injunction, restraining order or decree of any nature of any Governmental
			 Entity that is in effect that restrains or prohibits the exchange of
			 Partnership Units for Class A Shares.

		   

		  (g) Closing
			 Deliveries. At
			 each Closing, with respect to each Partner that requests the Exchange, or
			 elects to participate in the Exchange, contemplated for such Closing:
			 

		   

		  (i) such
			 Partner shall deliver to each Partnership certificates representing a number of
			 Partnership Units in such Partnership equal to the number of such Partner's
			 Final Exchanged FOG Units, together with stock powers duly endorsed in blank;
			 

		   

		  (ii) such
			 Partner shall deliver to Fortress for cancellation a certificate or
			 certificates representing a number of Class B Shares equal to the number of
			 such Partner's Final Exchanged FOG Units, together with stock powers duly
			 endorsed in blank; 

		   

		  (iii) if
			 applicable, such Partner shall deliver evidence reasonably satisfactory to each
			 Partnership that all Liens on his Final Exchanged FOG Units and Class B Shares
			 delivered at Closing have been released;

		   

		  (iv) each
			 Partnership shall deliver to such Partner a certificate or certificates,
			 registered in the name of such Partner or its designee, representing a number
			 of Class A Shares equal to the product of (a) the number of Final Exchanged FOG
			 Units, multiplied by (b) a fraction, the numerator of which is the value of
			 such Partnership, and the denominator of which is the value of all
			 Partnerships, as determined pursuant to Section 2.1(d); provided,
			 however, that
			 the Partnerships may elect to collectively deliver to such Partner a
			 certificate or certificates representing a number of Class A Shares equal to
			 the number of his Final Exchanged FOG Units; 

		   

		  7

		   

		  

		  
		  

		  
		   

		  (v) if a
			 Partner delivers to a Partnership a certificate or certificates that represent
			 more Partnership Units than the number of Final Exchanged FOG Units, the
			 Partnership shall deliver to such Partner a certificate or certificates
			 registered in the name of such Partner or its designee, representing a number
			 of Partnership Units in such Partnership equal to the excess of (a) the number
			 of Partnership Units represented by the certificates delivered by such Partner
			 at Closing, over (b) the number of Final Exchanged FOG Units; and

		   

		  (vi)
			 if a
			 Partner delivers to Fortress a certificate or certificates that represent more
			 Class B Shares than the number of Final Exchanged FOG Units, the Partnership
			 shall cause Fortress to deliver to such Partner a certificate or certificates
			 registered in the name of such Partner or its designee, representing a number
			 of Class B Shares equal to the excess of (a) the number of Class B Shares Units
			 represented by the certificates delivered by such Partner at Closing, over (b)
			 the number of Final Exchanged FOG Units.

		   

		  (h) The
			 parties agree that no Partner shall be required in an Exchange to deliver a
			 number of Partnership Units in any Partnership or a number of Class B Shares
			 that is different than the number of such Partner's Final Exchanged FOG
			 Units.

		   

		  Section
			 2.2 REVOCABILITY;
			 EXPENSES. The
			 parties agree that a Partner may revoke an Exchange Request or an Exchange
			 Notice with respect to any or all of the Potentially Exchanged FOG Units set
			 forth in such Partner's Exchange Request or Exchange Notice, by delivery of a
			 written notice to the Partnerships at any time prior to Closing. If, after
			 giving effect to all such revocations, the aggregate number of Final Exchanged
			 FOG Units of all Partners who elect to participate in a Closing have an
			 Aggregate Value of less than $50 million, the Partnerships will have no
			 obligation to effect such Closing. Each party hereto shall bear his or its own
			 expenses in connection with the transactions contemplated hereby, whether or
			 not any such transaction is ultimately consummated.

		   

		  Section
			 2.3 DELEGATION;
			 FIG CALL RIGHT. Each
			 of the Operating Entities hereby delegates to FIG all of its obligations to
			 effect an Exchange, and each of the Principal Entities hereby delegates to FIGA
			 all of its obligations to effect an Exchange. Each of FIG and FIGA hereby
			 accept such delegation, agree to perform such obligations, and agree to bear
			 all of their own expenses associated with any Exchange. Notwithstanding any
			 other provision of this Agreement, but subject to a Partnership's right to
			 defer the Closing of an Exchange pursuant to Section 2.1(e)(iii), FIG shall
			 have the right (the “Call Right”), but not the obligation, to assume
			 FIGA’s obligations to effect an Exchange at any particular Closing with
			 respect to FOG Units issued by a Principal Entity. FIG may exercise the Call
			 Right by giving written notice to such effect to FIGA prior to such Closing. If
			 FIG exercises the Call Right, neither FIGA nor any of the Principal Entities
			 shall be relieved of any of its obligations hereunder.

		   

		  ARTICLE
			 III

		   

		  MISCELLANEOUS

		   

		  Section
			 3.1 NOTICES. All
			 notices, requests, consents and other communications hereunder to any party
			 shall be deemed to be sufficient if contained in a written 

		   

		  8

		   

		  

		  
		  

		  
		   

		  instrument
			 delivered in person or sent by facsimile (provided a copy is thereafter
			 promptly delivered as provided in this Section 3.1) or nationally recognized
			 overnight courier, addressed to such party at the address or facsimile number
			 set forth below or such other address or facsimile number as may hereafter be
			 designated in writing by such party to the other parties:

		   

		  
			 	 	(a)	
					 If to
						FIG, FIGA or any Partnership, to:
 

 

		   

		  c/o
			 Fortress Invest Group LLC

		  1345
			 Avenue of the Americas

		  46th
			 Floor

		  New
			 York, NY 10105

		  (T)
			 (212) 798-6100

		  (F)
			 (917) 591-8433

		   

		  Attention:
			 General Counsel

		   

		  with a
			 copy to:

		   

		  Skadden,
			 Arps, Slate, Meagher & Flom LLP

		  Four
			 Times Square

		  New
			 York, New York 10036

		  (T)
			 (212) 735-3000

		  (F)
			 (212) 735-2000

		   

		  Attention:
			 Joseph A. Coco, Esq.

		   

		  
			 	 	(b)	
					 if to
						any of the Partners, to:
 

 

		   

		  the
			 address and facsimile set forth in the records of Fortress

		   

		  Section
			 3.2 INTERPRETATION. The
			 headings contained in this Agreement are for reference purposes only and shall
			 not affect in any way the meaning or interpretation of this Agreement. Whenever
			 the words "included", "includes" or "including" are used in this Agreement,
			 they shall be deemed to be followed by the words "without
			 limitation".

		   

		  Section
			 3.3 PARTNERS. To
			 the extent an Original Partner (or an applicable Permitted
			 Transferee) transfers his FOG Units, and corresponding Class B
			 Shares, to a Permitted Transferee of such Original Partner or to any
			 other Person in a transaction not in contravention of, and in
			 accordance with, applicable Partnership Agreements, the Shareholder Agreement
			 and Agreement Among Principals, then such Person shall have the right to
			 execute and deliver a joinder to this Agreement, in form and substance
			 reasonably satisfactory to each of FIG and FIGA, on behalf of the respective
			 Partnerships they Control, agreeing to become a "Partner"
			 for all purposes of this Agreement. FIG and
			 FIGA may, in their sole discretion, on behalf of the respective Partnerships
			 they Control, allow an entity (a "Holding Entity") that holds FOG Units and
			 corresponding Class B Shares on behalf of employees of Fortress or any of its
			 Subsidiaries to execute and deliver a joinder to this Agreement, in form and
			 substance reasonably satisfactory to FIG and
			 FIGA, on behalf of the respective Partnerships they Control,
			 agreeing to become a 

		   

		  9

		   

		  

		  
		  

		  
		   

		  "Partner"
			 for all purposes of this Agreement, except as otherwise provided in such
			 joinder.  In connection with the foregoing, FIG and FIGA may, in their
			 sole discretion, on
			 behalf of the respective Partnerships they Control, grant
			 a Holding Entity in the applicable joinder the right to effect an
			 exchange of FOG Units and corresponding Class B Shares for Class A
			 Shares in the event that no Partner delivers an Exchange Request during a
			 given calendar year.

		   

		  Section
			 3.4 PARTNERSHIPS. Each
			 of FIG and FIGA hereby agree that if any other Person subsequently becomes a
			 Partnership, it will cause such Person to execute a joinder to this Agreement
			 and become a "Partnership" for all purposes of this Agreement.

		   

		  Section
			 3.5 SEVERABILITY. The
			 provisions of this Agreement shall be deemed severable and the invalidity or
			 unenforceability of any provision shall not affect the validity or
			 enforceability of the other provisions hereof. If any provision of this
			 Agreement, or the application thereof to any person or entity or any
			 circumstance, is found to be invalid or unenforceable in any jurisdiction, (a)
			 a suitable and equitable provision shall be substituted therefor in order to
			 carry out, so far as may be valid and enforceable, the intent and purpose of
			 such invalid or unenforceable provision and (b) the remainder of this Agreement
			 and the application of such provision to other Persons or circumstances shall
			 not be affected by such invalidity or unenforceability, nor shall such
			 invalidity or unenforceability affect the validity or enforceability of such
			 provision, or the application thereof, in any other jurisdiction.

		   

		  Section
			 3.6 COUNTERPARTS. This
			 Agreement may be executed in one or more counterparts, each of which shall be
			 deemed an original and all of which shall, taken together, be considered one
			 and the same agreement, it being understood that both parties need not sign the
			 same counterpart.

		   

		  Section
			 3.7 ENTIRE
			 AGREEMENT; NO THIRD PARTY BENEFICIARIES. This
			 Agreement (a) constitutes the entire agreement and supersedes all other prior
			 agreements, both written and oral, among the parties with respect to the
			 subject matter hereof and (b) is not intended to confer upon any Person, other
			 than the parties hereto, any rights or remedies hereunder.

		   

		  Section
			 3.8 FURTHER
			 ASSURANCES. Each
			 party shall execute, deliver, acknowledge and file such other documents and
			 take such further actions as may be reasonably requested from time to time by
			 the other party hereto to give effect to and carry out the transactions
			 contemplated herein.

		   

		  Section
			 3.9 GOVERNING
			 LAW; EQUITABLE REMEDIES.
			 THIS
			 AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
			 THE STATE OF DELAWARE (WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES
			 THEREOF). The
			 parties hereto agree that irreparable damage would occur in the event that any
			 of the provisions of this Agreement were not performed in accordance with its
			 specific terms or was otherwise breached. It is accordingly agreed that the
			 parties hereto shall be entitled to an injunction or injunctions and other
			 equitable remedies to prevent breaches of this Agreement and to enforce
			 specifically the terms and provisions hereof in any of the Selected Courts,
			 this being in addition to any other remedy to which they are entitled at law or
			 in equity. Any requirements for the securing or posting of any bond with
			 respect to such remedy are hereby waived by each of the parties hereto. Each
			 party further agrees that, in the event of any action for an injunction or
			 other equitable remedy in 

		   

		  10

		   

		  

		  
		  

		  
		   

		  respect
			 of such breach or enforcement of specific performance, it will not assert the
			 defense that a remedy at law would be adequate.

		   

		  Section
			 3.10 CONSENT
			 TO JURISDICTION. With
			 respect to any suit, action or proceeding ("Proceeding") arising out of or
			 relating to this Agreement or any transaction contemplated hereby each of the
			 parties hereto hereby irrevocably (i) submits to the exclusive jurisdiction of
			 the United States District Court for the Southern District of New York or the
			 Court of Chancery located in the State of Delaware, County of Newcastle (the
			 "Selected Courts") and waives any objection to venue being laid in the Selected
			 Courts whether based on the grounds of forum non conveniens or otherwise and
			 hereby agrees not to commence any such Proceeding other than before one of the
			 Selected Courts; provided,
			 however, that a
			 party may commence any Proceeding in a court other than a Selected Court solely
			 for the purpose of enforcing an order or judgment issued by one of the Selected
			 Courts; (ii) consents to service of process in any Proceeding by the mailing of
			 copies thereof by registered or certified mail, postage prepaid, or by
			 recognized international express carrier or delivery service, to the Partners
			 at their respective addresses referred to in Section 3.1 hereof; provided,
			 however, that
			 nothing herein shall affect the right of any party hereto to serve process in
			 any other manner permitted by law; and (iii) TO
			 THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, WAIVES, AND
			 COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR
			 OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART
			 UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE CONTEMPLATED
			 TRANSACTIONS, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING
			 IN CONTRACT, TORT OR OTHERWISE, AND AGREES THAT ANY OF THEM MAY FILE A COPY OF
			 THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND
			 BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO
			 TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS
			 AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS WILL INSTEAD BE TRIED IN A
			 COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A
			 JURY.

		   

		  Section
			 3.11 AMENDMENTS;
			 WAIVERS. 

		   

		  (a) Subject
			 to Section 3.11(c), no provision of this Agreement may be amended unless such
			 amendment is approved in writing by each of FIG and FIGA, on behalf of
			 themselves and the respective Partnerships they Control, and by Original
			 Partners who, together with their Permitted Transferees, collectively hold at
			 least two-thirds of the FOG Units collectively held by all of the Original
			 Partners and their respective Permitted Transferees; provided, that no such
			 amendment shall be effective if such amendment will have a disproportionate
			 effect on certain Partners unless all such Partners disproportionately effected
			 consent in writing to such amendment). No provision of this Agreement may be
			 waived unless such waiver is in writing and signed by the party against whom
			 the waiver is to be effective.

		   

		  (b) No
			 failure or delay by any party in exercising any right, power or privilege
			 hereunder shall operate as waiver thereof nor shall any single or partial
			 exercise thereof preclude any other or further exercise thereof or the exercise
			 of any other right, power or 

		   

		  11

		   

		  

		  
		  

		  
		   

		  privilege.
			 The rights and remedies herein provided shall be cumulative and not exclusive
			 of any rights or remedies provided by law.

		   

		  (c) FIG and
			 FIGA may amend this Agreement in writing without the approval or consent of any
			 Original Partners or Permitted Transferees if such amendment does not
			 materially and adversely affect any Partner’s Exchange Right.

		   

		  Section
			 3.12 ASSIGNMENT. Except
			 as contemplated by Section 3.3, neither this Agreement nor any of the rights or
			 obligations hereunder shall be assigned by any of the parties hereto without
			 the prior written consent of the other parties. Subject to the preceding
			 sentence, this Agreement will be binding upon, inure to the benefit of and be
			 enforceable by the parties and their respective successors and
			 assigns.

		   

		  Section
			 3.13 TAX
			 TREATMENT. To the
			 extent this Agreement imposes obligations upon a particular Partnership or its
			 general partner, this Agreement shall be treated as part of the partnership
			 agreement of such Partnership as described in Section 761(c) of the Internal
			 Revenue Code of 1986, as amended, and Sections 1.704-1(b)(2)(ii)(h) and
			 1.761-1(c) of the Treasury Regulations. As required by the Code and the
			 Regulations: (i) the parties shall report an Exchange consummated hereunder as
			 a taxable sale of Units and Class B Shares by a Partner to (x) FIG, in the case
			 of an Exchange with an Operating Entity or an Exchange with respect to which
			 the Call Right has been exercised, or (y) FIGA, in the case of an Exchange with
			 a Principal Entity; and (ii) no party shall take a contrary position on any
			 income tax return, amendment thereof or communication with a taxing
			 authority.

		   

		  Section
			 3.14 HEADINGS. The
			 headings in this Agreement are for convenience of reference only and shall not
			 limit or otherwise affect the meaning hereof.

		   
 

		
		  12

		  

		  
		  

		  
		   

		  IN
			 WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
			 delivered, all as of the date first set forth above. 

		   

		  
			 	 	 	 
	 	
					 FIG
						CORP.
 
	 
 	 
 	 
 
	 	By:  	 
	 	
					 
Name:
	 	Title: 

 

		   

		  
			  

			 
					 	 	 
	 	
						FIG
						  ASSET CO. LLC
 
	 
 	 
 	 
 
	 	By:  	 
	 	
						
Name:
	 	Title: 

 

			  

			 
				 

				
				  	 	 	 
	 	      	 
	 	
						  

						  PETER L.
							 BRIGER, JR.
 
	 	 
	 	 
	 	
						  

						  WESLEY
							 R. EDENS
 
	 	 
	 	 
	 	
						  
ROBERT
						  I. KAUFFMAN
	 	 
	 	 
	 	
						  
RANDAL
						  A. NARDONE
	 	 
	 	 
	 	
						  
MICHAEL
						  E. NOVOGRATZ

 

				 
 

			 
				13

				
 

		   

		  

		  
		  

		  
		   

		  
			 	 	
					 FORTRESS
						OPERATING ENTITY I LP

					 FORTRESS
						OPERATING ENTITY I LP

					 FORTRESS
						OPERATING ENTITY I LP
 

 

		   

		  
			 	 	 	 
	 	By: FIG
					 Corp., the general partner of each of the foregoing entities
	 
 	 
 	 
 
	 	By:  	 
	 	
					 

					 Name:
	 	Title:

 

		  
 

		  
			 	 	 	 
	 	
					 PRINCIPAL
						HOLDINGS I LP

					  
 
	 	
					 By: FIG
						Asset Co. LLC, the general partner of each of the foregoing
						entities
 
	 
 	 
 	 
 
	 	By:  	 
	 	
					 
Name:
	 	Title:

 

		   

		  14January 25, 2007
	 

	 
		Daniel Bass
	 

	 
		15 Whitlaw Close
	 

	 
		Chappaqua, NY 10514
	 

	 
		

	 

	 
		Dear Dan:
	 

	 
		

	 

	 
		It is with great pleasure that we extend to you this offer to
		continue your employment with FIG LLC (previously operating as
		Fortress Investment Group LLC, (including its affiliates,
		“Fortress” or the “Company”)), as Chief Financial
		Officer, as set forth below.      
	 

	 
		

	 

	 
		Title:
	 

	 
		Chief Financial Officer of Fortress Investment Group LLC.
		 
	 

	 
		

	 

	 
		Start Date:
	 

	 
		December 1, 2003.
	 

	 
		

	 

	 
		Compensation:
	 

	 
		Your base salary will be paid at the rate of $200,000 per
		annum, payable in accordance with the regular payroll practices of
		Fortress. Payment of additional compensation or a bonus in any given
		fiscal or calendar year does not entitle you to additional
		compensation or a bonus in any subsequent year. In order to be
		eligible for any bonus while employed at Fortress, you must be an
		active employee at, and not have given or received notice of
		termination prior to, the time of the bonus payment.
	 

	 
		

	 

	 
		For purposes of this Offer Letter, “cause” means (i)
		your commission of an act of fraud or dishonesty in the course of
		your employment; (ii) your indictment or entering of a plea of nolo
		contendere for a crime constituting a felony or in respect of any act
		of fraud or dishonesty; (iii) your commission of an act which would
		make you or Fortress (including any of its affiliates) subject to
		being enjoined, suspended, barred or otherwise disciplined for
		violation of federal or state securities laws, rules or regulations,
		including a statutory disqualification; (iv) your gross negligence or
		willful misconduct in connection with your performance of your duties
		in connection with your employment by Fortress (including any
		affiliate of Fortress for whom you may be employed on a full-time
		basis at the time) or your failure to comply with any of the
		restrictive covenants set forth herein; (v) your commission of any
		act that would result or which might reasonably be a substantial
		factor resulting in the termination of Fortress (including any of its
		affiliates) for cause under any of Fortress’s (including
	 

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		any of its affiliates’) management, advisory or similar
		agreements; (vi) your willful failure to comply with any material
		policies or procedures of Fortress as in effect from time to time
		provided that you shall have been delivered a copy of such policies
		or notice that they have been posted on a Fortress website prior to
		such compliance failure, and (vii) your failure to perform the
		material duties in connection with your position, unless you remedy
		such failure no later than 10 days following delivery to you of a
		written notice from Fortress (including any of its affiliates)
		describing such failure in reasonable detail (provided that you shall
		not be given more than one opportunity in the aggregate to remedy
		failures described in this clause (vii)).  
	 

	 
		

	 

	 
		Representation:
	 

	 
		You represent that on your first day of work you were free to
		accept employment hereunder without any contractual
		    restrictions, express or implied, with
		respect to any of your prior employers.   You represent
		that you have not taken or otherwise misappropriated and you do not
		have in your possession or control any confidential and proprietary
		information belonging to any of your prior employers or connected
		with or derived from your services to prior employers.  You
		represent that you have returned to all prior employers any and all
		such confidential and proprietary information.  You further
		acknowledge that Fortress has informed you that you are not to use or
		cause the use of such confidential or proprietary information in any
		manner whatsoever in connection with your employment by Fortress.
		 You agree that you will not use such information.  You
		shall indemnify and hold harmless Fortress from any and all claims
		arising from any breach of the representations and warranties in this
		clause.
	 

	 
		

	 

	 
		Policies and Procedures:
	 

	 
		You agree to comply fully with all Fortress policies and
		procedures applicable to employees, as amended from time to time.
		 
	 

	 
		

	 

	 
		Employment Relationship:
	 

	 
		You are an at-will employee. This offer is not a contract of
		employment for any specific period of time, and your employment may
		be terminated by you or by Fortress at any time for any reason or no
		reason whatsoever.
	 

	 
		

	 

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Benefits:
	 

	 
		Effective your first day of employment, you (and your spouse
		and eligible dependents, if any) may at your election be covered
		under Fortress’s health insurance plan, subject to applicable
		exclusions and limitations.   You will be eligible to
		participate in Fortress’s 401(k) plan, subject to the terms of
		the plan.  You will be eligible to participate in all other
		perquisite and benefit arrangements generally made available by
		Fortress to its Managing Director level employees, including, without
		limitation, any directors and officers insurance and any benefits of
		indemnification or limitation of liability which may be provided to
		Fortress employees with respect to their service to Fortress or to
		another entity at the request of or for the benefit of Fortress,
		subject to the terms of such plans or programs. Each Fortress benefit
		is subject to modification, including elimination, from to time, at
		Fortress’s sole discretion.
	 

	 
		

	 

	 
		Vacation:
	 

	 
		Twenty (20) days per year  in accordance with Fortress's
		vacation policy applicable to employees, as amended from time to
		time.
	 

	 
		

	 

	 
		Certain Covenants:
	 

	 
		You shall not, directly or indirectly, without prior written
		consent of Fortress, during your employment hereunder, provide
		consultative services to, own, manage, operate, join, control, be
		employed by, participate in, or be connected with any business,
		individual, partner, firm, corporation or other entity that directly
		or indirectly competes with Fortress or any of its affiliates. 
		You further agree that if you resign your employment or are
		terminated for Cause (as defined herein), for twelve (12) months
		thereafter, you shall not engage in any activity which calls for the
		application of the same or similar specialized knowledge or skills as
		those utilized by you in your employment with Fortress for the
		benefit of, or otherwise directly or indirectly provide consultative
		services to, own, manage, operate, join, control, be employed by,
		participate in, or be connected with, any business, individual,
		partner, firm, corporation, or other entity that directly or
		indirectly competes with any Fortress business or Fortress managed
		fund for which you have performed services or with respect to which
		you have received equity compensation during the course of the last
		two (2) years of your employment with Fortress.  Notwithstanding
		the foregoing, the "beneficial ownership" by you, either individually
		or as a member of a "group" (as such terms are used in Rule 13d of
		the general rules and regulations under the Securities Exchange Act
		of 1934) of stock, but not more than 5% of the voting stock, of any
		public company shall not be in violation of this agreement.
	 

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Notwithstanding anything else herein, the mere "beneficial
		ownership" by you, either individually or as a member of a "group"
		(as such terms are used in Rule 13(d) issued under the Securities
		Exchange Act of 1934) of not more than 5% of the voting stock of any
		public company shall not be deemed in violation of this Letter
		Agreement.
	 

	 
		

	 

	 
		In addition, you shall not, directly or indirectly, without the
		prior written consent of Fortress, during the term of your employment
		hereunder and for 2 years thereafter, regardless of the reason for
		your termination, solicit or encourage to leave the employment of
		Fortress or its affiliates, any employee thereof, or hire (on behalf
		of yourself or any other person or entity) any person who has left
		the employment of Fortress (including, for these purposes, any its
		affiliates) during the immediately preceding one-year period. In
		addition through the end of the two-year period commencing with the
		termination by you of your employment with the Company you shall not,
		whether for your own account or for the account of any other person,
		firm, corporation or other business organization, intentionally
		interfere with Fortress’s relationship with, or endeavor to
		entice away from Fortress or any fund, business or account managed by
		Fortress, any investor in Fortress or any fund, business or account
		managed by Fortress.  In addition, you shall not publish or make
		any statement (x) under circumstances reasonably likely to become
		public that is critical of Fortress (including any of its affiliates)
		or (y) which would in any way adversely affect or otherwise malign
		the business or reputation of Fortress (including any of its
		affiliates).
	 

	 
		

	 

	 
		

	 

	 
		Governing Law:
	 

	 
		This agreement will be covered by and construed in accordance
		with the laws of New York, without regard to the conflicts of laws
		provisions thereof. YOU HEREBY AGREE TO THAT EXCLUSIVE JURISDICTION
		WILL BE IN A COURT OF COMPETENT JURISDICTION IN THE CITY OF NEW YORK
		AND WAIVE OBJECTION TO THE JURISDICTION OR TO THE LAYING OF VENUE IN
		ANY SUCH COURT.
	 

	 
		

	 

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Miscellaneous:
	 

	 
		This agreement (together with the Exhibits attached hereto)
		contains the entire understanding of the parties, amends and
		supersedes for all purposes the agreement between you and Fortress
		dated as of October 27, 2003 and may be modified only in a document
		signed by the parties and referring explicitly to this agreement.
		  If any provision of this agreement is determined to be
		unenforceable, the remainder of this agreement shall not be adversely
		affected thereby.  In executing this agreement, you represent
		that you have not relied on any representation or statement not set
		forth herein, and you expressly disavow any such representations or
		statements. Without limiting the foregoing, you represent that you
		understand that you shall not be entitled to any equity interest,
		profits interest or other interest in Fortress (including, for these
		purposes, any of its affiliates, including any fund, account or
		business managed by any of them) except as set forth in a writing
		signed by Fortress. Fortress’s affiliates are intended
		beneficiaries under this Offer Letter.
	 

	 
		

	 

	 
		

	 

	 
		If you agree with the terms of this agreement and accept this
		amended employment agreement, please sign and date this agreement in
		the space provided below and return a copy to me to indicate your
		acceptance.  We look forward to your continuing your work at
		Fortress.
	 

	 
		

	 

	 			
	
			 
				Sincerely,
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				FORTRESS INVESTMENT GROUP LLC
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				By:
			 

		  	
			 
				/s/ Randal A Nardone
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				     Randal A. Nardone
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				     Chief Operating Officer
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				AGREED AND ACCEPTED AS OF January 25, 2007:
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				By:
			 

		  	
			 
				/s/ Daniel N. Bass
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				Daniel N. Bass
			 

		  	
			 
				 
			 

		  

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Exhibit B
	 

	 
		This is Exhibit B to the Letter Agreement between Daniel Bass
		and Fortress Investment Group LLC, dated as of October 27, 2003 (the
		“Letter Agreement”). When executed by both parties, the
		terms of this Exhibit B are intended to be incorporated by reference
		into the Letter Agreement.
	 

	 
		

	 

	 
		1. Fund II Promote.  Fortress Fund MM II LLC (the
		"Managing Member"), serves as managing member to Fortress Investment
		Fund II LLC, a Delaware limited liability company formed to operate
		as a private investment fund ("Fund II").  FIG is the managing
		member of the Managing Member, and FIG and its affiliates are the
		holders of 100% of the Class B membership interest in the Managing
		Member (the “Promote Interest”); the Managing Member
		receives an incentive allocation from Fund II, and the Promote
		Interest entitles its holder to such allocation.
	 

	 
		A portion of the Promote Interest has been assigned to FIG
		Promote II LLC ("Promoteco II"). Class II membership interests in
		Promoteco II are non-voting, non-managing membership interests which
		represent, subject to the terms of the Limited Liability Company
		Operating Agreement of Promote II (the "Promoteco II Operating
		Agreement"), a percentage of the distributions made in respect of the
		Promote Interest.
	 

	 
		

	 

	 
		As contemplated by the Promoteco II Operating Agreement, you
		are hereby granted a Class II Membership Interest in Promoteco II.
		 The percentage initially applicable to such Class II Membership
		Interest under the Promoteco II Operating Agreement is set forth
		below in this Exhibit B.  By your execution of this Letter
		Agreement, you expressly agree to be subject to all of the terms and
		conditions of the Promoteco II Operating Agreement and any other
		documents governing membership interests in Promoteco II, including,
		without limitation, terms and conditions relating to clawbacks,
		holdbacks, obligations to return distributions and to the vesting and
		possible forfeiture of your Class II Membership Interest. The terms
		and conditions of the Promoteco II Operating Agreement govern the
		grant of the Class II Membership Interest in the case of any conflict
		between the terms thereof and the terms of this Letter Agreement. You
		are encouraged to read the Promoteco II Operating Agreement closely.
	 

	 
		

	 

	 
		For the sake of clarity, the Class II Membership Interest in
		Promoteco II does not entitle you to any percentage of any management
		or advisory fees received by Fortress or its affiliates, including,
		without limitation, under the terms of the operative documents of
		Fund II or any of its affiliates, including Fortress Investment Trust
		II (“FIT II”), a Delaware business trust.
	 

	 
		

	 

	 
		2. Fund II Co-Investment. Fortress Principal Investment
		Group LLC and its affiliates (collectively, the "Manager’s
		Investment Entity") is the entity through which the principals of
		Fortress have made a capital commitment to Fund II of $18,750,000
		(i.e., 1.5% of Fund II’s aggregate capital commitments of
		$1,250,000,000).
	 

	 
		

	 

	 
		You agree that you are hereby deemed to have made an equity
		commitment in Fund II (the specific amount designated by you in
		accordance with the next sentence, the "Fund II Commitment") of not
		less than 50% and up to a maximum of 100% of (a) your Class II
		Membership Percentage Interest as set forth below in this Exhibit B
		multiplied by (b) $18,750,000. You shall confirm the specific Fund II
		Equity Commitment you have elected, by executing and delivering the
		Fund II subscription agreement or such other documentation deemed by
		Fund II’s managing member to be necessary and appropriate to
		evidence such commitment.  
	 

	 
		

	 

	 
		For so long as your employment with the Company (or any
		affiliate of Fortress for whom you may be employed on a full-time
		basis at the time) has not been terminated, your Fund II Commitment
		shall not be subject to any management fees or incentive fees
		otherwise payable in respect thereof pursuant to the operative
		documents of Fund II and FIT II. From and after such time as you
		cease to be such a full-time
	 

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		employee, the Managing Member may, in its sole discretion,
		charge your Fund II Commitment and membership interest in Fund II
		management fees and incentive allocations payable in respect thereof
		in accordance with the operative documents of Fund II and FIT II.Your
		Fund II Commitment shall be assigned to you by the Manager’s
		Investment Entity. In connection with such assignment, you agree to
		pay to the Manager’s Investment Entity, the amount of any
		capital contributions made in respect of your Fund II Commitment
		prior to such assignment plus an amount representing an effective
		interest rate of prime rate plus 2% (not compounded) on such capital
		contributions.
	 

	 
		If your employment with the Company (or any affiliate of
		Fortress for whom you may be employed on a full-time basis at the
		time) terminates prior to the date on which Fund II acquires its last
		Portfolio Investment (as defined in the Fund II limited liability
		company agreement) other than by reason of (i) disability or (ii)
		death, then Manager’s Investment Entity or the Company may, in
		its sole discretion, and notwithstanding any termination of this
		Letter Agreement, assume the then-unfunded portion of your Fund II
		Commitment, which right may be exercised at any time during the 90
		day period following such termination of employment.  In such
		event, you shall not be entitled to receive any distributions in
		respect of the portion of your Fund II Commitment so assumed from and
		after the date of termination of your employment (and shall pay over
		to the Manager’s Investment Entity or the Company any such
		distributions), and you shall not be obligated to make any further
		capital contributions to Fund II in respect of the portion of your
		Fund II Commitment so assumed.  You hereby agree to execute and
		deliver such documentation reasonably required by the Company as may
		be necessary or appropriate to effectuate such assumption. The
		provisions of this paragraph shall survive any termination of this
		Letter Agreement and any termination of your employment.
	 

	 
		

	 

	 			 		
	
			 
				 
			 

		  	
			 
				Class II Membership Percentage:
			 

		  	 	
			 
				 
			 

		  	
			 
				Your Class II Membership Percentage in Promoteco II shall
				be that which corresponds to a zero point five percent (0.5%) of the
				Promote Interest.
			 

		  
	
			 
				 
			 

		  	
			 
				Equity Commitment in Fund II:
				     
			 

		  	 	
			 
				 
			 

		  	
			 
				Between $46, 875 and $93,750
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				Fortress Investment Group LLC
			 

		  	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				 
			 

		  	
			 
				 
			 

		  	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	
			 
				By:
			 

		  	
			 
				/s/ Wesley R. Edens
			 

		  	 	
			 
				By:
			 

		  	
			 
				/s/ Daniel N. Bass
			 

		  
	
			 
				 
			 

		  	
			 
				Wesley R. Edens
			 

		  	 	
			 
				 
			 

		  	
			 
				Daniel N. Bass
			 

		  

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Exhibit C – Newcastle
	 

	 
		

	 

	 
		This is Exhibit C to the Letter Agreement between Daniel Bass
		and Fortress Investment Group LLC, dated as of January 1, 2004 (the
		“Letter Agreement”). When executed by both parties, the
		terms of this Exhibit C are intended to be incorporated by reference
		into the Letter Agreement.
	 

	 		
	
			 
				Percentage of Net Newcastle Operating Results:
			 

		  	
			 
				 zero point five percent (for 2004, subject to
				adjustment for calendar years subsequent to 2004) (0.5%).
			 

		  

	 
		Your percentage of the Net Newcastle Operating Results
		(as defined below) will be paid to you as soon as practicable after
		results of Newcastle Investment Corp. (“Newcastle”) for the
		applicable fiscal year have been determined, provided that Fortress
		has received and been paid all amounts due to it under the management
		agreement (as amended from time to time, the “NCT Management
		Agreement”) pursuant to which Fortress manages Newcastle. For
		calendar years subsequent to 2004, Fortress reserves the right, in
		its sole and absolute discretion, to raise or to lower your
		percentage interest in the Net Newcastle Operating Results.
	 

	 
		In no event will you be entitled to receive any of the Net
		Newcastle Operating Results described above if you are not actively
		employed by or have given notice of your termination of your
		employment with the Company (or any affiliate of Fortress for whom
		you may be employed on a full-time basis at the time) at the time
		such compensation is to be paid.
	 

	 
		1. The “Net Newcastle Operating Results”
		equals (i) the amount of the net management fees plus the amount of
		net incentive fees actually received by Fortress under the NCT
		Management Agreement (net of rebates thereof with respect to
		investments by Fortress affiliates) minus (ii) the sum of (x)
		Newcastle’s allocable share of (A) payroll costs (including
		discretionary bonuses that may be paid to Fortress employees
		providing services for Newcastle), (B) rent and (C) other operating
		expenses (including reserves), in each case which are incurred by
		Fortress and (y) any taxes payable by Fortress or its affiliates in
		respect of the amounts set forth in (i) above. Determinations of
		Newcastle’s allocable shares of each category of expense set
		forth in clause (ii)(x) above (which allocations may vary by
		category) will be made by Fortress, in its sole and absolute
		discretion. The Net Newcastle Operating Results will not include any
		amounts paid to Fortress in the event that Newcastle were to
		terminate the NCT Management Agreement, including any amounts paid to
		purchase Fortress’s incentive fee.
	 

	 
		

	 

	 			 		
	
			 
				Fortress Investment Group LLC
			 

		  	 	
			 
				 
			 

		  	
			 
				 
			 

		  
	 	 	 	 	 
	
			 
				By:
			 

		  	
			 
				/s/ Wesley R. Edens
			 

		  	 	
			 
				By:
			 

		  	
			 
				/s/ Daniel N. Bass
			 

		  
	
			 
				 
			 

		  	
			 
				Wesley R. Edens
			 

		  	 	
			 
				 
			 

		  	
			 
				Daniel N. Bass
			 

		  

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Exhibit E – Eurocastle
	 

	 
		

	 

	 
		This is Exhibit E to the Letter Agreement between Daniel Bass
		and Fortress Investment Group LLC, dated as of January 1, 2004 (the
		“Letter Agreement”). When executed by both parties, the
		terms of this Exhibit C are intended to be incorporated by reference
		into the Letter Agreement.
	 

	 		
	
			 
				Percentage of Net Eurocastle Operating Results:
			 

		  	
			 
				zero point five percent (for 2004, subject to adjustment
				for calendar years subsequent to 2004) (0.5%).
			 

		  

	 
		Your percentage of the Net Eurocastle Operating Results
		(as defined below) will be paid to you as soon as practicable after
		results of Eurocastle Investment Limited (“Eurocastle”) for
		the applicable fiscal year have been determined, provided that
		Fortress has received and been paid all amounts due to it under the
		management agreement (as amended from time to time, the “ECT
		Management Agreement”) pursuant to which Fortress manages
		Eurocastle. For calendar years subsequent to 2004, Fortress reserves
		the right, in its sole and absolute discretion, to raise or to lower
		your percentage interest in the Net Eurocastle Operating Results.
	 

	 
		In no event will you be entitled to receive any of the Net
		Eurocastle Operating Results described above if you are not actively
		employed by or have given notice of your termination of your
		employment with the Company (or any affiliate of Fortress for whom
		you may be employed on a full-time basis at the time) at the time
		such compensation is to be paid.
	 

	 
		1. The “Net Eurocastle Operating Results”
		equals (i) the amount of the net management fees plus the amount of
		net incentive fees actually received by Fortress under the ECT
		Management Agreement (net of rebates thereof with respect to
		investments by Fortress affiliates) minus (ii) the sum of (x)
		Eurocastle’s allocable share of (A) payroll costs (including
		discretionary bonuses that may be paid to Fortress employees
		providing services for Eurocastle), (B) rent and (C) other operating
		expenses (including reserves), in each case which are incurred by
		Fortress and (y) any taxes payable by Fortress or its affiliates in
		respect of the amounts set forth in (i) above. Determinations of
		Eurocastle’s allocable shares of each category of expense set
		forth in clause (ii)(x) above (which allocations may vary by
		category) will be made by Fortress, in its sole and absolute
		discretion. The Net Eurocastle Operating Results will not include any
		amounts paid to Fortress in the event that Eurocastle were to
		terminate the ECT Management Agreement, including any amounts paid to
		purchase Fortress’s incentive fee.
	 

	 
		

	 

	 			 		
	
			 
				Fortress Investment Group LLC
			 

		  	 		
			 		
	
			 
				By: 
			 

		  	
			 
				/s/ Wesley R. Edens
			 

		  	 	
			 
				By:
			 

		  	
			 
				/s/ Daniel N. Bass
			 

		  
	
			 
				 
			 

		  	
			 
				 Wesley R. Edens
			 

		  	 	
			 
				 
			 

		  	
			 
				 Daniel N. Bass
			 

		  

	 
		
 

	 

	 
		

	 

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Exhibit F – Global Macro
	 

	 
		

	 

	 
		This is Exhibit F to the Letter Agreement between Daniel Bass
		and Fortress Investment Group LLC, dated as of January 1, 2004 (the
		“Letter Agreement”). When executed by both parties, the
		terms of this Exhibit F are intended to be incorporated by reference
		into the Letter Agreement.
	 

	 
		

	 

	 
		1. GM Funds. Drawbridge Global Macro GP LLC, a limited
		liability company (the "GM General Partner"), serves as general
		partner to Drawbridge Global Macro Fund LP, a Delaware limited
		partnership formed to operate as a private investment partnership for
		U.S. taxable investors (the "GM Partnership"). Drawbridge Global
		Macro Advisors LLC (the " GM Investment Manager"), serves as the
		management company to the GM Partnership and as investment manager to
		Drawbridge Global Macro Fund Ltd (the " GM Offshore Fund," and
		together with the GM Partnership, the "GM Funds"), a Cayman Islands
		exempted company formed as an investment vehicle for U.S. tax-exempt
		and non-U.S. investors.  The GM General Partner receives an
		incentive allocation from the GM Partnership, and the GM Investment
		Manager receives an incentive fee from the GM Offshore Fund.
		 The GM Investment Manager also receives a management fee from
		the GM Partnership and the GM Offshore Fund.  
	 

	 
		You are a non-managing, non-voting member of the GM General
		Partner and the GM Investment Manager.  You will receive the
		percentage interest set forth below in this Exhibit F in the
		incentive allocation from the GM Partnership that is allocable to the
		GM General Partner in respect of calendar 2004 (calculated on a basis
		consistent with the calculation of such percentage interests for
		other holders of “points” interests, subject to pro rata
		dilution in the event new members are admitted to the GM General
		Partner and to adjustment for calendar years subsequent to 2004 as
		provided below).  You will also receive the percentage interest
		set forth below in this Exhibit F in the incentive fee paid by the GM
		Offshore Fund to the GM Investment Manager (calculated on a basis
		consistent with the calculation of such percentage interests for
		other holders of “points” interests, subject to pro rata
		dilution in the event new members are admitted to the GM Investment
		Manager in 2004 and to adjustment for calendar years subsequent to
		2004 as provided below).  Your interest in the incentive fee
		(unless deferred by you) and incentive allocation will be paid within
		30 days of its receipt by the applicable entity.  Without your
		consent, your portion of the incentive fee will not be deferred.
	 

	 
		The fee structure for the GM Funds is a management fee of not
		more than 2% (out of which overhead will be paid) and a 20% incentive
		allocation or incentive fee, as the case may be.  You shall not
		be entitled to any percentage of the management fees.  
	 

	 
		For calendar years subsequent to 2004, Fortress reserves the
		right, in its sole and absolute discretion, to raise or to lower your
		percentage interest in the incentive allocation and incentive fee.
		 
	 

	 
		You will not receive your interest in the incentive allocation
		or incentive fee (or any payment under this paragraph) unless you are
		an active employee at the time of the payment and you have not given
		notice of resignation, except that you shall receive such payment for
		the year in which you are terminated if your employment is terminated
		by Fortress without cause(for these purposes, considered solely in
		terms of clause (i) of the definition thereof) prior to the date the
		payment is made by Fortress.  If you are not an active employee
		of Fortress, you will be withdrawn as a member of the General Partner
		and Investment Manager.
	 

	 
		

	 

	 			 		
	
			 
				GM Partnership - Percentage:
			 

		  	
			 
				0.5%
			 

		  	
			 
				 
			 

		  
			 		
	
			 
				GM Offshore Fund - Percentage:
			 

		  	
			 
				0.5%
			 

		  	
			 
				 
			 

		  
			 		
	
			 
				Fortress Investment Group LLC
			 

		  	 	
			 
				 
			 

		  	
			 
				 
			 

		  
			 		
	
			 
				By:
			 

		  	
			 
				/s/ Michael Novogratz
			 

		  	 	
			 
				By:
			 

		  	
			 
				/s/ Daniel N. Bass
			 

		  
	 	
			 
				Michael Novogratz
			 

		  	 	 	
			 
				Daniel N. Bass
			 

		  

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Exhibit G – Special Opportunities
	 

	 
		

	 

	 
		This is Exhibit G to the Letter Agreement between Daniel Bass
		and Fortress Investment Group LLC, dated as of January 1, 2004
		 (the “Letter Agreement”). When executed by both
		parties, the terms of this Exhibit D are intended to be incorporated
		by reference into the Letter Agreement.
	 

	 
		

	 

	 
		1. DB Funds. Drawbridge Special Opportunities GP LLC, a
		limited liability company (the " DB General Partner"), serves as
		general partner to Drawbridge Special Opportunities Fund LP, a
		Delaware limited partnership formed to operate as a private
		investment partnership for U.S. taxable investors (the "DB
		Partnership").  Drawbridge Special Opportunities Advisors LLC
		(the "DB Investment Manager"), serves as the management company to
		the Partnership and as investment manager to Drawbridge Special
		Opportunities Fund Ltd (the "DB Offshore Fund," and together with the
		Partnership, the "DB Funds"), a Cayman Islands exempted company
		formed as an investment vehicle for U.S. tax-exempt and non-U.S.
		investors.  The DB General Partner receives an incentive
		allocation from the DB Partnership, and the DB Investment Manager
		receives an incentive fee from the DB Offshore Fund.  The DB
		Investment Manager also receives a management fee from the DB
		Partnership and the DB Offshore Fund.  
	 

	 
		You are a non-managing, non-voting member of the DB General
		Partner and the DB Investment Manager.  You will receive the
		percentage interest set forth below in this Exhibit G in the
		incentive allocation from the DB Partnership that is allocable to the
		DB General Partner in respect of calendar year 2004 (calculated on a
		basis consistent with the calculation of such percentage interests
		for other holders of “points” interests, subject to pro
		rata dilution in the event new members are admitted to the DB General
		Partner and to adjustment for calendar years subsequent to 2004 as
		provided below).  You will also receive the percentage interest
		set forth below in this Exhibit D in the incentive fee paid by the DB
		Offshore Fund to the DB Investment Manager (calculated on a basis
		consistent with the calculation of such percentage interests for
		other holders of “points” interests, subject to pro rata
		dilution in the event new members are admitted to the DB Investment
		Manager in 2004 and to adjustment for calendar years subsequent to
		2004 as provided below).  Your interest in the incentive fee
		(unless deferred by you) and incentive allocation will be paid within
		30 days of its receipt by the applicable entity.  Without your
		consent, your portion of the incentive fee will not be deferred.
	 

	 
		The fee structure for the DB Funds is a management fee of not
		more than 2% (out of which overhead will be paid) and a 20% incentive
		allocation or incentive fee, as the case may be. You shall not be
		entitled to any percentage of the management fees. To the extent that
		during the term of your employment by Fortress, Fortress forms one or
		more other hedge funds, the investment program of which is
		principally investing in distressed assets, you will also be entitled
		to participate in any incentive allocation or incentive fee paid to
		the general partner or investment management affiliate of Fortress by
		such fund(s) on the same terms and conditions as you participate in
		the incentive fees and incentive allocations of the DB Funds.
	 

	 
		For calendar years subsequent to 2004, Fortress reserves the
		right, in its sole and absolute discretion, to raise or to lower your
		percentage interest in the incentive allocation and incentive fee.
		 
	 

	 
		You will not receive your interest in the incentive allocation
		or incentive fee (or any payment under this Exhibit) unless you are
		an active employee at the time of the payment and you have not given
		notice of resignation, except that you shall receive such payment for
		the year in which you are terminated if your employment is terminated
		by Fortress without cause (for these purposes, considered solely in
		terms of clause (i) of the definition thereof) prior to the date the
		payment is made by Fortress. If you are not an active employee of
		Fortress, you will be withdrawn as a member of the General Partner
		and Investment Manager.  
	 

	 
		

	 

	 			 		
	
			 
				DB Partnership – Percentage:
			 

		  	 	
			 
				0.5%
			 

		  	
			 
				 
			 

		  
			 		
	
			 
				DB Offshore Fund - Percentage:
			 

		  	 	
			 
				0.5%
			 

		  	
			 
				 
			 

		  
			 		
	
			 
				Fortress Investment Group LLC
			 

		  	 	
			 
				 
			 

		  	
			 
				 
			 

		  
			 		
	
			 
				By:
			 

		  	
			 
				/s/ Peter L. Briger, Jr.
			 

		  	 	
			 
				By:
			 

		  	
			 
				/s/ Daniel N. Bass
			 

		  
	
			 
				 
			 

		  	
			 
				Peter L. Briger, Jr.
			 

		  	 	
			 
				 
			 

		  	
			 
				Daniel N. Bass
			 

		  

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Exhibit related to FRID (“Exhibit FRID”)
	 

	 
		This is Exhibit FRID, dated as of December 11, 2005, to the
		Letter Agreement dated October 27, 2003 between Daniel Bass and
		Fortress Investment Group LLC (the “Letter Agreement”).
		 When executed by both parties, the terms of this Exhibit are
		intended to be incorporated by reference into the Letter Agreement.
	 

	 
		

	 

	 
		FRID Promote.  Fortress Residential Investment
		Deutschland GP L.P. (the "FRID GP"), serves as general partner to
		Fortress Residential Investment Deutschland (Fund A)  L.P.,
		Fortress Residential Investment Deutschland (Fund B)  L.P.,
		Fortress Residential Investment Deutschland (Fund C)  L.P.
		and/or Fortress Residential Investment Deutschland (Fund D)
		 L.P. (each a Caymans limited partnership)(all such entities
		collectively referred to as "FRID").  The FRID GP receives an
		incentive allocation from FRID (the “FRID Promote
		Interest”).
	 

	 
		A portion of the FRID Promote Interest has been assigned to
		each of four Delaware limited liability interest companies (the
		applicable entity in your case, either FIG Promote FRID LLC, FIG
		Promote FRID KE LLC, FCF Promote FRID LLC or FCF Promote FRID KE LLC,
		as applicable, "Promoteco FRID"). Class II membership interests in
		Promoteco FRID are non-voting, non-managing membership interests
		which represent, subject to the terms of the Limited Liability
		Company Operating Agreement of Promoteco FRID (the "Promoteco FRID
		Operating Agreement"), a percentage of the distributions made in
		respect of the FRID Promote Interest.
	 

	 
		

	 

	 
		As contemplated by the Promoteco FRID Operating Agreement, you
		are hereby granted a Class II Membership Interest in Promoteco FRID.
		 The percentage initially applicable to such Class II Membership
		Interest under the Promoteco FRID Operating Agreement is set forth
		below in this Exhibit FRID.  By your execution of this Exhibit,
		you expressly agree to be subject to all of the terms and conditions
		of the Promoteco FRID Operating Agreement and any other documents
		governing membership interests in Promoteco FRID, including, without
		limitation, terms and conditions relating to clawbacks, holdbacks,
		obligations to return distributions and to the possible forfeiture of
		your Class II Membership Interest. The terms and conditions of the
		Promoteco FRID Operating Agreement govern the grant of the Class II
		Membership Interest in the case of any conflict between the terms
		thereof and the terms of this Exhibit. You are encouraged to read the
		Promoteco FRID Operating Agreement closely.
	 

	 
		

	 

	 
		For the sake of clarity, the Class II Membership Interest in
		Promoteco FRID does not entitle you to any percentage of any
		management or advisory fees received by Fortress or its affiliates,
		including, without limitation, under the terms of the operative
		documents of FRID or any of its affiliates or to any portion of the
		incentive allocation of any funds other than FRID that have been or
		may be assigned to Promoteco FRID.
	 

	 
		

	 

	 			 		
	
			 
				 
			 

		  	
			 
				Class II Membership Percentage:
			 

		  	 	
			 
				 
			 

		  	
			 
				Your Class II Membership Percentage in Promoteco FRID
				shall be that which corresponds to one half of one percent (0. 5%) of
				the FRID Promote Interest.
			 

		  
			 		
	
			 
				 
			 

		  	
			 
				Fortress Investment Group LLC.
			 

		  	 	
			 
				 
			 

		  	
			 
				 
			 

		  
			 		
	
			 
				By:
			 

		  	
			 
				/s/ Wesley R. Edens
			 

		  	 	
			 
				By:
			 

		  	
			 
				/s/ Daniel N. Bass
			 

		  
	
			 
				 
			 

		  	
			 
				Wesley R. Edens
			 

		  	 	
			 
				 
			 

		  	
			 
				Daniel N. Bass
			 

		  

	 
		
 

	 

	 
		

	 

	 
		

	 

	 
	 
		

	 

	 
		

	 

	 
		Exhibit related to FIF III, FIF III (Coinvest),
		GAGFAH(Coinvest) (“Exhibit Fund3”)
	 

	 
		This is Exhibit

		

	 

	 Fund3, dated as of December 15, 2005, to the Letter Agreement
	 dated October 27, 2003 between Daniel Bass and Fortress Investment
	 Group LLC (the “Letter Agreement”).  When executed by
	 both parties, the terms of this Exhibit are intended to be
	 incorporated by reference into the Letter Agreement.

  

  1. Fund III Promote.  Fortress Fund III GP LLC (the
  "Fund3 GP"), serves as general partner to Fortress Investment Fund
  III LP, Fortress Investment Fund III (Fund B) LP, Fortress Investment
  Fund III (Fund C) LP (each a Delaware limited partnership), Fortress
  Investment Fund III (Fund D) LP and/or Fortress Investment Fund III
  (Fund E) LP (each a Caymans limited partnership)(all such entities
  collectively referred to as "Fund III").  The Fund3 GP receives
  an incentive allocation from Fund III (the “Fund III Promote
  Interest”).

  A portion of the Fund III Promote Interest has been assigned to
  each of four Delaware limited liability interest companies (the
  applicable entity in your case, either FIG Promote III LLC, FIG
  Promote III KE LLC, FCF Promote III LLC or FCF Promote III KE LLC, as
  applicable, "Promoteco III"). Class II membership interests in
  Promoteco III are non-voting, non-managing membership interests which
  represent, subject to the terms of the Limited Liability Company
  Operating Agreement of Promoteco III (the "Promoteco III Operating
  Agreement"), a percentage of the distributions made in respect of the
  Fund III Promote Interest.

  

  As contemplated by the Promoteco III Operating Agreement, you are
  hereby granted a Class II Membership Interest in Promoteco III.
   The percentage initially applicable to such Class II Membership
  Interest under the Promoteco III Operating Agreement is set forth
  below in this Exhibit Fund3.  By your execution of this Letter
  Agreement, you expressly agree to be subject to all of the terms and
  conditions of the Promoteco III Operating Agreement and any other
  documents governing membership interests in Promoteco III, including,
  without limitation, terms and conditions relating to clawbacks,
  holdbacks, obligations to return distributions and to the vesting and
  possible forfeiture of your Class II Membership Interest. The terms
  and conditions of the Promoteco III Operating Agreement govern the
  grant of the Class II Membership Interest in the case of any conflict
  between the terms thereof and the terms of this Letter Agreement. You
  are encouraged to read the Promoteco III Operating Agreement closely.

  

  For the sake of clarity, the Class II Membership Interest in
  Promoteco III does not entitle you to any percentage of any
  management or advisory fees received by Fortress or its affiliates,
  including, without limitation, under the terms of the operative
  documents of Fund III or any of its affiliates or to any portion of
  the incentive allocation of any funds other than Fund III that have
  been assigned to Promoteco III.

  

  2. Fund III Co-Investment. Fortress Principal Investment
  Holdings II LLC and its affiliates (collectively, the "Manager’s
  Investment Entity") is the entity through which the

  
 

  

  

  

   
  

   
 

  principals of Fortress have made a
  capital commitment to Fund III of $$30,000,000 (i.e.,1.5% of Fund
  III’s aggregate capital commitments of $2 billion).

  

  You acknowledge that you have made an equity commitment in Fund III
  (the specific amount, the "Fund III Commitment") as set forth in the
  subscription documents executed by you in connection with such
  commitment.  

  For so long as your employment with the Company (or any affiliate
  of Fortress for whom you may be employed on a full-time basis at the
  time) has not been terminated, your Fund III Commitment shall not be
  subject to any management fees or incentive fees otherwise payable in
  respect thereof pursuant to the operative documents of Fund III. From
  and after such time as you cease to be such a full-time employee, the
  Fund III GP may, in its sole discretion, charge your Fund III
  Commitment and membership interest in Fund III management fees and
  incentive allocations payable in respect thereof in accordance with
  the operative documents of Fund III.

  If your employment with the Company (or any affiliate of Fortress
  for whom you may be employed on a full-time basis at the time)
  terminates prior to the date prior to the Expiration Date (as defined
  in the Fund III limited partnership agreements) on which Fund III
  acquires its last Portfolio Investment (as defined in the Fund III
  limited partnership agreements) other than by reason of (i)
  disability or (ii) death, then Manager’s Investment Entity or
  the Company may, in its sole discretion, and notwithstanding any
  termination of this Letter Agreement, assume the then-unfunded
  portion of your Fund III Commitment, which right may be exercised at
  any time during the 90 day period following such termination of
  employment.  In such event, you shall not be entitled to receive
  any distributions in respect of the portion of your Fund III
  Commitment so assumed from and after the date of termination of your
  employment (and shall pay over to the Manager’s Investment
  Entity or the Company any such distributions), and you shall not be
  obligated to make any further capital contributions to Fund III in
  respect of the portion of your Fund III Commitment so assumed.
   You hereby agree to execute and deliver such documentation
  reasonably required by the Company as may be necessary or appropriate
  to effectuate such assumption. The provisions of this paragraph shall
  survive any termination of this Letter Agreement and any termination
  of your employment.

  

  3. Fund III (Coinvest) Promote.  The Fund3 GP serves as
  general partner to Fortress Investment Fund (Coinvestment Fund A) III
  LP, Fortress Investment Fund (Coinvestment Fund B) III LP and
  Fortress Investment Fund III (Coinvestment Fund C) LP (each a
  Delaware limited partnership) and Fortress Investment Fund III
  (Coinvestment Fund D) LP (a Cayman limited partnership)(all such
  entities collectively referred to as "Fund III(Coinvest)").  The
  Fund3 GP receives an incentive allocation from Fund III(Coinvest)
  (the “Fund III(Coinvest) Promote Interest”).

  A portion of the Fund III(Coinvest) Promote Interest has been
  assigned to each of the applicable Promoteco II entities described
  above. Class III membership interests in Promoteco III are
  non-voting, non-managing membership interests which represent,
  subject to the terms of the Promoteco III Operating Agreement, a
  percentage of the distributions made in respect of the Fund
  III(Coinvest) Promote Interest.

  

  As contemplated by the Promoteco III Operating Agreement, you are
  hereby granted a Class III Membership Interest in Promoteco III.
   The percentage initially applicable to such Class III
  Membership Interest under the Promoteco III Operating Agreement is
  set forth below in this Exhibit Fund3.  By your execution of
  this Letter Agreement, you expressly agree to be subject to all of
  the terms and conditions of the Promoteco III Operating Agreement and
  any other documents governing membership interests in Promoteco III,
  including, without limitation, terms and conditions relating to
  clawbacks, holdbacks, obligations to return distributions and to the
  vesting and possible forfeiture of your Class III Membership
  Interest. The terms and conditions of the Promoteco III Operating
  Agreement govern the grant of the Class III Membership Interest in
  the case of any conflict between the terms thereof and the terms of
  this Letter Agreement. You are encouraged to read the Promoteco III
  Operating Agreement closely.

  

  
 

  

  

  

   
  

   
 

  For the sake of clarity, the Class III
  Membership Interest in Promoteco III does not entitle you to any
  percentage of any management or advisory fees received by Fortress or
  its affiliates, including, without limitation, under the terms of the
  operative documents of Fund III(Coinvest) or any of its affiliates or
  to any portion of the incentive allocation of any funds other than
  Fund III(Coinvest) that have been assigned to Promoteco III.

  4. GAGFAH Coinvest Promote.  Fortress Principal
  Investment Holdings II LLC (“FPIH II”) serves as general
  partner to Fortress (GAGACQ) Investors L.P. ("GAGFAH(Coinvest)").
   FPIH II receives an incentive allocation from GAGFAH(Coinvest)
  (the “

  

GAGFAH(Coinvest) Promote Interest”).

A portion of the GAGFAH(Coinvest) Promote Interest has been assigned
to each of the applicable Promoteco III entities described above.
Class IV membership interests in Promoteco III are non-voting,
non-managing membership interests which represent, subject to the
terms of the Promoteco III Operating Agreement, a percentage of the
distributions made in respect of the GAGFAH(Coinvest) Promote
Interest.

As contemplated by the Promoteco III Operating Agreement, you are
hereby granted a Class IV Membership Interest in Promoteco III.
 The percentage initially applicable to such Class IV Membership
Interest under the Promoteco III Operating Agreement is set forth
below in this Exhibit Fund3.  By your execution of this Letter
Agreement, you expressly agree to be subject to all of the terms and
conditions of the Promoteco III Operating Agreement and any other
documents governing membership interests in Promoteco III, including,
without limitation, terms and conditions relating to clawbacks,
holdbacks, obligations to return distributions and to the vesting and
possible forfeiture of your Class IV Membership Interest. The terms
and conditions of the Promoteco III Operating Agreement govern the
grant of the Class IV Membership Interest in the case of any conflict
between the terms thereof and the terms of this Letter Agreement. You
are encouraged to read the Promoteco III Operating Agreement closely.

For the sake of clarity, the Class IV Membership Interest in
Promoteco III does not entitle you to any percentage of any
management or advisory fees received by Fortress or its affiliates,
including, without limitation, under the terms of the operative
documents of GAGFAH(Coinvest) or any of its affiliates or to any
portion of the incentive allocation of any funds other than
GAGFAH(Coinvest) that have been assigned to Promoteco III.

			 		
	
  
	 Class II Membership Percentage:
  

	 	
  
	 Your Class II Membership Percentage in Promoteco III shall be
	 that which corresponds to one half percent (0.50%) of the Fund III
	 Promote Interest.
  

	
  
	 Class III Membership Percentage:
  

	 	
  
	 Your Class III Membership Percentage in Promoteco III shall be
	 that which corresponds to one half percent (0.50%) of the Fund III
	 (Coinvest) Promote Interest.
  

	
  
	 Class IV Membership Percentage:
  

	 	
  
	 Your Class IV Membership Percentage in Promoteco III shall be
	 that which corresponds to one half percent (0.50%) of the
	 GAGFAH(Coinvest) Promote Interest.
  

	
  
	 Fortress Investment Group LLC
  

	 	
  
	  
  

	
  
	  
  

	
  
	 By:
  

	

  
	 /s/ Wesley R. Edens
  

	 	
  
	 By:
  

	

  
	 /s/ Daniel N. Bass
  

	
  
	  
  

	
  
	  Wesley R. Edens
  

	 	
  
	  
  

	
  
	 Daniel N. Bass
  

 

 
  

 
 

Exhibit related to FIF IV and Certain
Other Investment Funds (“Exhibit Fund4”)

This is Exhibit Fund4, dated as of July 20, 2006 (as amended October
28, 2006 and as further amended December 15, 2006) to the Letter
Agreement dated October 27, 2003 between Daniel Bass and Fortress
Investment Group LLC (the “Letter Agreement”).  When
executed by both parties, the terms of this Exhibit are intended to
be incorporated by reference into the Letter Agreement.

1. Background.  Affiliates of Fortress Investment Group
LLC (each, a "Fund GP") serve as the general partner of (a) Fortress
Investment Fund IV (Fund A) L.P. and its parallel partnerships
(collectively, "Fund IV"), (b) Fortress Investment Fund IV
(Coinvestment Fund A) L.P. and its parallel partnerships
(collectively, "Fund IV (Coinvest)"), (c) Fortress RIC Coinvestment
Fund LP and its parallel funds, if any (collectively, the "Brookdale
Fund"), (d) Fortress IW Coinvestment Fund (A) L.P. and its parallel
partnerships (collectively, the "IW Fund") and (e) Fortress Holiday
Investment Fund LP and its parallel funds, if any (collectively, the
"Holiday Fund" and, together with Fund IV, Fund IV (Coinvest), the
Brookdale Fund and the IW Fund, the "Funds").

Such Fund GPs receive an incentive allocation (also known as "carried
interest") from Fund IV (the “Fund IV Promote Interest”),
Fund IV (Coinvest) (the “Fund IV (Coinvest) Promote
Interest”), the Brookdale Fund (the "Brookdale Promote
Interest"), the IW Fund (the "IW Promote Interest") and the Holiday
Fund (the "Holiday Promote Interest").

A portion of the Fund IV Promote Interest, the Fund IV (Coinvest)
Promote Interest, the Brookdale Promote Interest, the IW Promote
Interest and the Holiday Promote Interest, subject to reduction in
respect of expenses and other obligations, if any, of the applicable
Fund GP, has been issued or assigned to, respectively, the Fund IV
Class, the Fund IV (Coinvest) Class, the Brookdale Class, the IW
Class and the Holiday Class of FIG Promote IV KE LLC, a Delaware
limited liability company ("Promoteco").

2.  Grant of Interest in Respect of Promotes.  You
are hereby granted a non-voting membership interest in the Fund IV
Class, the Fund IV (Coinvest) Class, the Brookdale Class, the IW
Class and the Holiday Class of Promoteco, subject to the terms of the
Limited Liability Company Operating Agreement of Promoteco (the
"Promoteco Operating Agreement").  The percentage initially
applicable to each such class under the Promoteco Operating Agreement
granted to you is set forth on Annex A hereto.  By your
execution of this Letter Agreement, you expressly agree to be subject
to all of the terms and conditions of the Promoteco Operating
Agreement and any other documents governing membership interests in
Promoteco, including, without limitation, terms and conditions
relating to clawbacks, holdbacks, obligations to return distributions
and to pay expenses and other obligations of Promoteco and to the
vesting and possible forfeiture of your interest in respect of each
such class. In the event of any conflict between the terms of the
Promoteco Operating Agreement and the terms of this Letter Agreement,
the terms and conditions of the Promoteco Operating Agreement shall
govern your interest in each such class of Promoteco. You are
encouraged to read the Promoteco Operating Agreement closely.

For the sake of clarity, your interest in Promoteco does not entitle
you to (a) any percentage of any management or advisory fees received
by Fortress or its affiliates, including, without limitation, fees
received under the terms of the operative documents of any Fund or
any of its affiliates or (b) any portion of the incentive allocation
of any investment funds other than Funds that provide incentive
allocations to the Fund GPs.

				
	
  
	 FORTRESS INVESTMENT GROUP LLC
  

	
  
	  
  

	
  
	  
  

	
  
	  
  

	
  
	  
  

	
  
	  
  

	
  
	 By:
  

	

  
	 /s/ Wesley R. Edens
  

	
  
	  
  

	

  
	 /s/ Daniel N. Bass
  

	
  
	  
  

	
  
	 Wesley R. Edens
  

	
  
	  
  

	
  
	 Daniel N. Bass
  

 

 
  

 
 

Annex A

	 	
	
  
	 Class
  

	
  
	 Your Interest in such class shall correspond to:
  

	 	
	
  
	  
  

	
  
	  
  

	 	
	
  
	 Fund IV Class:
  

	
  
	 One half percent (0.50%) of the Fund IV Promote Interest.
  

	 	
	
  
	 Fund IV (Coinvest) Class:
  

	
  
	 One half percent (0.50%) of the Fund IV (Coinvest) Promote
	 Interest.
  

	 	
	
  
	 Brookdale Class:
  

	
  
	 One half percent (0.50%) of the Brookdale Promote Interest.
  

	 	
	
  
	 IW Class:
  

	
  
	 One half percent (0.50%) of the IW Promote Interest.
  

	 	
	
  
	 Holiday Class:
  

	
  
	 One half percent (0.50%) of the Holiday Promote Interest.

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