Document:

EX-10.2

 Exhibit 10.2 

WAIVER AND ACKNOWLEDGEMENT TO CONTRIBUTION AND IMPLEMENTATION AGREEMENT 

This Waiver and Acknowledgement (this “Waiver”) is entered into as of April 2, 2015, and is granted and agreed pursuant
to the Contribution and Implementation Agreement (the “Agreement”), entered into as of December 23, 2014, by and among Colony Financial, Inc., a Maryland corporation (“CFI”), Colony Capital Operating Company,
LLC (formerly known as CFI RE Masterco, LLC), a Delaware limited liability company and wholly owned subsidiary of CFI, Colony Capital, LLC, a Delaware limited liability company (“CC”), Colony Capital Holdings, LLC, a Delaware
limited liability company, and Colony Capital OP Subsidiary, LLC, a Delaware limited liability company and wholly owned subsidiary of CC (“NewCo”), CCH Management Partners I, LLC, a Delaware limited liability company, FHB Holding
LLC, a Delaware limited liability company and Richard Saltzman. 
 Each capitalized term used and not defined herein takes its meaning from
the Agreement. 
 WHEREAS, pursuant to Section 11.3 of the Agreement, the parties thereto may waive compliance with any
obligation, covenant, agreement or condition of the Agreement;  
 WHEREAS, Section 7.15 of the Agreement states that
“CC and CFI shall, promptly after the [signing] date [t]hereof, prepare and file Form ADV and other forms or schedules required to be filed in order to register a wholly owned Subsidiary of NewCo with the SEC as an investment adviser under the
Investment Advisers Act of 1940.”; 
 WHEREAS, Section 8.1 of the Agreement states, among certain other conditions, that
“the respective obligations of each party to effect the Closing shall be subject to the satisfaction or waiver, at or prior to the Closing, of the following conditions: .... (e) A wholly owned Subsidiary of NewCo shall have been
registered with the SEC as an investment adviser under the Investment Advisers Act of 1940.”;  
 WHEREAS, the parties
hereto and to the Agreement desire to waive the obligations, covenants, agreements and conditions set forth in Section 7.15 and Section 8.1(e) of the Agreement and provide that CC and CFI shall, promptly following the Closing, file Form
ADV and other forms or schedules required to be filed in order to register Colony Capital Investment Advisors, LLC (formerly known as Colony Capital OP Subsidiary TRS, LLC), a Delaware limited liability company and an indirect, wholly owned
subsidiary of NewCo (“CCIA”) with the SEC as an investment adviser under the Advisers Act; 
 WHEREAS,
Section 2.1(a)(i) of the Agreement provides, among other things, that CC shall contribute to NewCo the CC Contributed Assets, which include all of the equity interests held by CC in each of the Contributed Entities; 

 WHEREAS, Section 1.1(c) of the CC Disclosure Letter states that Colony Capital Sarl
(Lebanon) shall be a CC Contributed Entity; 
 WHEREAS, Section 7.2 of the Agreement states, among other provisions, that CC
will, after the signing of the Agreement, “preserve intact its business organization” and will not “amend the Organizational Documents of any Subject Entity”, nor “sell, pledge, dispose of, transfer, lease, license or
encumber any material property or assets that would otherwise be CC Contributed Assets”; 
 WHEREAS, the parties hereto and to
the Agreement desire that Colony Capital Sarl (Lebanon) (“CC Lebanon”) be liquidated, that CC retain CC Lebanon as a CC Retained Entity and that CC Lebanon shall not be a CC Contributed Entity; 

WHEREAS, Section 7.22(b) of the Agreement states that “(b) [w]ithout limiting CFI’s obligations in Section 7.22(a)
above, in the event that the Initial Resale Registration Statement has not been declared effective by the SEC on the date that is five Business Days prior to the anticipated Closing Date, (i) CC shall provide written notice (“Share
Retention Notice”) to CFI of the percentage of New Shares and corresponding number of New Shares to be retained by CFI to satisfy any Tax obligations of Richard B. Saltzman in respect of the New Shares; (ii) CFI shall retain from New
Shares to be delivered to CC pursuant to Section 3.3(b)(ii) a number of New Shares as specified in the Share Retention Notice, as the same may be updated by CC prior to Closing to reflect changes to the Disbursement Schedule and the Estimated
Closing Statement in accordance with Section 3.2(b) between the date of the Share Retention Notice and the Closing Date; and (iii) CFI shall, within 30 days following the Closing (or promptly following the Closing, and in any event on or
prior to the applicable due date, if Richard B. Saltzman is obligated to pay Tax in respect of the New Shares prior to the 30th day following the Closing), pay an amount in cash to the applicable federal and state taxing authorities equal to the
number of New Shares so retained multiplied by the closing price of CFI Common Stock on the Closing Date; provided that any amount so paid to such taxing authorities shall be treated for all purposes of this Agreement as having been paid to
Richard B. Saltzman; provided, further that if the Initial Resale Registration Statement is declared effective by the SEC by the earlier of (x) the 30th day following the Closing and (y) the fifth Business Day prior to the
applicable due date, then CFI shall deliver to CC the New Shares retained under clause (ii) in lieu of the cash to be paid under clause (iii)”; and 

WHEREAS, the parties hereto and to the Agreement desire to waive certain of the provisions of Section 7.22(b) of the Agreement and
take the actions specified in Section 1.3 of this Waiver. 
 NOW, THEREFORE, in consideration of the mutual promises
contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, each of the parties hereto agrees as follows: 

  
 2 

	SECTION 1.	WAIVER AND ACKNOWLEDGEMENT 

 1.1 Registration of CCIA. 

(a) Each of the parties hereto waives hereby all of the obligations, covenants and agreements of each of CC and CFI under
Section 7.15 of the Agreement to prepare and file, promptly after the signing date of the Agreement, Form ADV and other forms or schedules required to be filed in order to register a wholly owned Subsidiary of NewCo with the SEC as an
investment adviser under the Advisers Act. 
 (b) Each of the parties hereto waives hereby the condition under
Section 8.1(e) of the Agreement that, at or prior to the Closing, a wholly owned Subsidiary of NewCo shall have been registered with the SEC as an investment adviser under the Investment Advisers Act of 1940. 

(c) Each of the parties hereto acknowledges and agrees that CC and CFI shall, promptly following the Closing, file Form ADV and
other forms or schedules required to be filed in order to register CCIA with the SEC as an investment adviser under the Advisers Act. Each of the parties hereto acknowledges that CCIA is intended to be a successor to CC’s registration as an
investment adviser under the Advisers Act and CC agrees to cooperate with CFI’s succession to such registration. 
 1.2 CC
Lebanon. 
 (a) Each of the parties hereto waives hereby all of the obligations, covenants and agreements of CC
(i) under Section 2.1(a)(i) of the Agreement, to contribute the equity interests of CC Lebanon to NewCo in connection with the CC Pre-Closing Contribution and (ii) under Section 7.2 of the Agreement, only to the extent that such
obligations, covenants and agreements would prohibit the liquidation of CC Lebanon. 
 (b) Each of the parties hereto
acknowledges hereby that CC Lebanon shall be deemed to be a CC Retained Entity, and shall be deemed not be a CC Contributed Entity for all purposes under the Agreement. 

(c) CC represents and warrants to CFI and OP that (i) Exhibit A hereto contains true, correct and complete copies of the
statement of financial position of CC Lebanon as of December 31, 2014, the related statements of comprehensive income, changes in equity and cash flows for the fiscal year ended December 31, 2014 and the notes thereto (collectively, the
“CC Lebanon Financial Statements”). The CC Lebanon Financial Statements present fairly in all material respects the financial condition and the results of operations of CC Lebanon as of such dates and for such periods, and have been
prepared in accordance with the International Financial Reporting Standards (as in effect on the date of the CC Lebanon Financial Statements), applied on a consistent basis during the periods involved and (ii) since December 31, 2014, CC
Lebanon has not conducted any operations or business or acquired any assets. 

  
 3 

 1.3 Actions relating to the Initial Resale Registration Statement. Each of the parties
hereto agrees and acknowledges hereby that, notwithstanding that CFI intends to have the Initial Resale Registration Statement declared effective by the SEC on or prior to the earlier of (x) the 30th day following the Closing and (y) the
fifth Business Day prior to the applicable due date, (i) CFI shall retain from New Shares to be delivered to CC pursuant to Section 3.3(b)(ii) 1,368,653 New Shares and (ii) CFI shall, on or prior to the applicable due date on which
Richard B. Saltzman is obligated to pay Tax in respect of the New Shares (but in no event later than June 15, 2015), pay an amount in cash to the applicable federal and state taxing authorities equal to the number of New Shares so retained
multiplied by the closing price of CFI Common Stock on the Closing Date; provided that any amount so paid to such taxing authorities shall be treated for all purposes of this Agreement as having been paid to Richard B. Saltzman. 

 

	SECTION 2.	MISCELLANEOUS 

 (a) Except as expressly provided herein, the Agreement remains unchanged
and continues in full force and effect. This Waiver is not an amendment of or waiver to any other provision of the Agreement not expressly referred to herein and is not to be construed as a waiver or consent to any further action by any of the
parties to the Agreement except as expressly provided for herein. For the avoidance of doubt, this Waiver shall be subject to the general provisions contained in Article 11 of the Agreement, which are incorporated herein by reference. 

(b) This Waiver shall be governed by and construed in accordance with the laws of the State of Delaware with respect to all other matters,
issues and questions, without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of
Delaware. 
 (c) Each party hereto stipulates that any dispute or disagreement between or among any of the parties hereto as to the
interpretation of any provision of, or the performance of obligations under, this Waiver shall be commenced and prosecuted in its entirety in, and consents to the exclusive jurisdiction and proper venue of, the Delaware Court of Chancery (and if the
Delaware Court of Chancery shall be unavailable, any federal court located within the State of Delaware), and each party hereto consents to personal and subject matter jurisdiction and venue in such courts and waives and relinquishes all right to
attack the suitability or convenience of such venue or forum by reason of its present or future domiciles, or by any other reason, for any such dispute or disagreement. The parties hereto acknowledge that all directions issued by the forum court,
including all injunctions and other decrees, will be binding and enforceable in all jurisdictions and countries. 
 (d) This Waiver may be
executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same 

  
 4 

 
instrument. This Waiver will become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties. This Waiver may be executed by facsimile or
pdf signature and a facsimile or pdf signature will constitute an original for all purposes. At the request of any party, the parties will confirm a facsimile of pdf transmission by signing a duplicate original document. 

(e) THE PARTIES WAIVE ANY RIGHT TO A JURY TRIAL OF ANY CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS WAIVER, OR THE MAKING,
PERFORMANCE OR INTERPRETATION THEREOF, INCLUDING FRAUDULENT INDUCEMENT THEREOF. 
 *** 

  
 5 

 IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly executed as of
the day and year first above written. 
  

					
	COLONY CAPITAL HOLDINGS, LLC
	
	By: Thomas J. Barrack, Jr., its sole managing member
		
	By:		 /s/ Thomas J. Barrack, Jr.

			Thomas J. Barrack, Jr.
	
	COLONY CAPITAL, LLC
		
	By:		 /s/ Mark M. Hedstrom

			Name:		Mark M. Hedstrom
			Title:		Vice President
	
	COLONY FINANCIAL, INC.
		
	By:		 /s/ Darren J. Tangen

			Name:		Darren J. Tangen
			Title:		Chief Operating Officer,
					Chief Financial Officer and
					Treasurer
	
	COLONY CAPITAL OPERATING COMPANY, LLC
	
	By: Colony Financial, Inc., its managing member
		
	By:		 /s/ Darren J. Tangen

			Name:		Darren J. Tangen
			Title:		Chief Operating Officer,
					Chief Financial Officer
					and Treasurer

 [Signature Page to Waiver under Contribution Agreement] 

 
					
	COLONY CAPITAL OP SUBSIDIARY, LLC
		
	By:		 /s/ Mark M. Hedstrom

			Name:		Mark M. Hedstrom
			Title:		Vice President
	
	CCH MANAGEMENT PARTNERS I, LLC
		
	By:		 /s/ Mark M. Hedstrom

			Name:		Mark M. Hedstrom
			Title:		Vice President
	
	FHB HOLDING LLC
		
	By:		 /s/ Henry G. Brauer

			Name:		Henry G. Brauer
			Title:		Manager
	
	RICHARD B. SALTZMAN
		
	By:		 /s/ Richard B. Saltzman

			Richard B. Saltzman

 [Signature Page to Waiver under Contribution Agreement] 

 Exhibit A 

December 31, 2014 Financial Statements of Colony Capital (Offshore) SAL 

(see attached) 

 COLONY CAPITAL (OFFSHORE) SAL 

FINANCIAL STATEMENTS 

31 DECEMBER 2014 

					
	

        		 Ernst & Young p.c.c.
 Commerce & Finance
Building
 1st Floor
 Kantari, Beirut

P.O. Box: 11-1639, Riad el Solh
 Beirut -1107 2090,
Lebanon
		 Tel: +961 1 760 800
 Fax: +961 1 760 822/3

beirut@lb.ey.com
 ey.com/mena

 INDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS OF COLONY CAPITAL (OFFSHORE) SAL 

We have audited the accompanying financial statements of Colony Capital (Offshore) SAL (‘the Company’), which comprise the statement of financial
position as at 31 December 2014 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

 Management’s Responsibility for the Financial Statements 

Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting
Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. 

Auditors’ Responsibility 
 Our responsibility is to
express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement. 
 An audit involves performing procedures to obtain
audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements. 
 We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion. 
 Opinion 

In our opinion, the financial statements present fairly, in all material respects, the financial position of Colony Capital (Offshore) SAL as at
31 December 2014 and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards. 

Emphasis of Matter 
 Without qualifying our opinion, we
draw attention to the following: 
  

	1-	As discussed in Note 2 to the financial statements, the ability of the Company to continue to carry out its activities is dependent on the availability of adequate financial support. The financial statements have been
prepared on a going concern basis which assumes that such financial support will be available from the Parent Company. 

  

	2-	Accumulated losses of the Company exceeded 75% of its capital as of 31 December 2014. According to the Lebanese Code of Commerce, the Board of Directors should call for an extraordinary general assembly to take
appropriate measures. 

  

	
	

	Ernst & Young
	
	16 January 2015
	Beirut, Lebanon
	  
 A member firm of Ernst & Young Global Limited

Civil Register - 61 - Capital L.L. 6,000,000 fully paid

 COLONY CAPITAL (OFFSHORE) SAL 

 
 STATEMENT OF COMPREHENSIVE INCOME 

For the year ended 31 December 2014 
  

											
	 	  	Notes	  	 2014

US$
	 	 	 2013

US$
	 
				
	 Finance costs
	  		  	 	(1,916	) 	 	 	(67	) 
	 General and administrative expenses
	  	4	  	 	(199,242	) 	 	 	(3,523	) 
	 Depreciation expense
	  	5	  	 	(1,519	) 	 	 	—  	  
		  		  	  
	  
	 	 	  
	  
	 
	 LOSS BEFORE TAX
				 	(202,677	) 		 	(3,590	) 
				
	 Offshore companies’ tax
		6		 	(663	) 		 	(663	) 
		  		  	  
	  
	 	 	  
	  
	 
	 LOSS FOR THE YEAR
				 	(203,340	) 		 	(4,253	) 
				
	 Other comprehensive income for the year
				 	—  	  		 	—  	  
		  		  	  
	  
	 	 	  
	  
	 
	 TOTAL COMPREHENSIVE LOSS FOR THE YEAR
				 	(203,340	) 		 	(4,253	) 
		  		  	  
	  
	 	 	  
	  
	 

  
 The attached notes 1 to 13 form part of
these financial statements. 
  
 2

 COLONY CAPITAL (OFFSHORE) SAL 

 
 STATEMENT OF FINANCIAL POSITION 

As at 31 December 2014 
  

											
	 	  	Notes	  	 2014

US$
	 	 	 2013

US$
	 
	 ASSETS
	  		  				 			
	 Non currents assets
	  		  				 			
	 Property and equipment
	  	5	  	 	13,611	  	 	 	—  	  
		  		  	  
	  
	 	 	  
	  
	 
	 Current assets
										
	 Due from a related party
		7		 	—  	  		 	247,571	  
	 Accounts receivable and prepayments
				 	2,292	  		 	—  	  
	 Bank balances and cash
				 	17,550	  		 	125	  
		  		  	  
	  
	 	 	  
	  
	 
	 Total current assets
				 	19,842	  		 	247,696	  
		  		  	  
	  
	 	 	  
	  
	 
	 TOTAL ASSETS
				 	33,453	  		 	247,696	  
		  		  	  
	  
	 	 	  
	  
	 
				
	 DEFICIENCY OF ASSETS AND LIABILITIES
										
	 Deficiency of assets
										
	 Share capital
		8		 	20,000	  		 	20,000	  
	 Accumulated losses
				 	(1,434,787	) 		 	(1,231,447	) 
		  		  	  
	  
	 	 	  
	  
	 
	 Total deficiency of assets
				 	(1,414,787	) 		 	(1,211,447	) 
		  		  	  
	  
	 	 	  
	  
	 
				
	 Current liabilities
										
	 Due to a related party
		7		 	1,423,965	  		 	1,451,616	  
	 Accounts payable and accruals
		9		 	24,275	  		 	7,527	  
		  		  	  
	  
	 	 	  
	  
	 
	 Total liabilities
				 	1,448,240	  		 	1,459,143	  
		  		  	  
	  
	 	 	  
	  
	 
	 TOTAL DEFICIENCY OF ASSETS AND LIABILITIES
				 	33,453	  		 	247,696	  
		  		  	  
	  
	 	 	  
	  
	 

 The financial statements were authorized for issue on 16 January 2015 by: 

 

	
	

	  

	Thomas Barrack, JR
	Chairman - General Manager

  
 The attached notes 1 to 13 form part of
these financial statements. 
  
 3

 COLONY CAPITAL (OFFSHORE) SAL 

 
 STATEMENT OF CHANGES IN EQUITY 

For the year ended 31 December 2014 
  

													
	 	  	 Share

capital

US$
	 	  	 Accumulated

losses

US$
	 	 	 Total

US$
	 
	 Balance at 1 January 2013
	  	 	20,000	  	  	 	(1,227,194	) 	 	 	(1,207,194	) 
	 Total comprehensive loss for 2013
	  	 	—  	  	  	 	(4,253	) 	 	 	(4,253	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Balance at 31 December 2013
		 	20,000	  		 	(1,231,447	) 		 	(1,211,447	) 
	 Total comprehensive loss for 2014
		 	—  	  		 	(203,340	) 		 	(203,340	) 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 
	 Balance at 31 December 2014
		 	20,000	  		 	(1,434,787	) 		 	1,414,787	  
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 

  
 The attached notes 1 to 13 form part of
these financial statements 
  
 4

 COLONY CAPITAL (OFFSHORE) SAL 

 
 STATEMENT OF CASH FLOWS 

For the year ended 31 December 2014 
  

											
	 	  	Notes	  	 2014

US$
	 	 	 2013

US$
	 
				
	 OPERATING ACTIVITIES
	  		  				 			
	 Loss for the year
	  		  	 	(203,340	) 	 	 	(4,253	) 
				
	 Adjustments for:
	  		  				 			
	 Depreciation expense
	  	5	  	 	1,519	  	 	 	—  	  
		  		  	  
	  
	 	 	  
	  
	 
					 	(201,821	) 		 	(4,253	) 
				
	 Working capital changes:
										
	 Accounts receivable and prepayments
				 	(2,292	) 		 	—  	  
	 Accounts payable and accruals
				 	16,748	  		 	3,523	  
		  		  	  
	  
	 	 	  
	  
	 
	 Net cash used in operating activities
				 	(187,365	) 		 	(730	) 
				
	 INVESTING ACTIVITIES:
										
	 Purchase of property and equipment
		5		 	(15,130	) 		 	—  	  
		  		  	  
	  
	 	 	  
	  
	 
	 Net cash used in investing activities
				 	(15,130	) 		 	—  	  
		  		  	  
	  
	 	 	  
	  
	 
	 FINANCING ACTIVITY
										
	 Balances with related parties
				 	219,920	  		 	663	  
		  		  	  
	  
	 	 	  
	  
	 
	 Net cash from financing activity
				 	219,920	  		 	663	  
		  		  	  
	  
	 	 	  
	  
	 
				
	 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
				 	17,425	  		 	(67	) 
				
	 Cash and cash equivalents at 1 January
				 	125	  		 	192	  
		  		  	  
	  
	 	 	  
	  
	 
	 CASH AND CASH EQUIVALENTS AT 31 DECEMBER
				 	17,550	  		 	125	  
		  		  	  
	  
	 	 	  
	  
	 

  
 The attached notes 1 to 13 form part of
these financial statements 
  
 5

 COLONY CAPITAL (OFFSHORE) SAL 

 
 NOTES TO THE FINANCIAL STATEMENTS 

31 December 2014 
  

	1	CORPORATE INFORMATION 

 Colony Capital (Offshore) SAL is a shareholding company registered in Beirut
under the Commercial Registration No. 1801767 dated 16 February 2007. The objective of the company is to negotiate and sign contracts and agreements in respect of operations and transactions outside the Lebanese territory, and the
preparation of studies and consultations which shall be utilized outside Lebanon. The Company is 99.9% owned by Colony Capital LLC, a United States corporation. The Company’s registered head office is at A1 Marfaa, Foche Street, Beirut,
Lebanon. 
 In accordance with the Extraordinary General Assembly held on 23 June 2011, the shareholders decided to dissolve the Company. 

In accordance with the Company’s extraordinary General Assembly dated 15 March 2013, the shareholders decided to withdraw the decision related to
the dissolution and liquidation of the Company adopted by virtue of the extraordinary General Assembly held on 23 June 2011 and therefore the Company shall continue its activities without interruption. 

 

	2	FUNDAMENTAL ACCOUNTING CONCEPT 

 The Company incurred a loss of US$ 203,340 for the year ended
31 December 2014 which led to a deficiency of assets of US$ 1,414,787 as of 31 December 2014. These factors raise substantial doubt that the Company will be able to continue as a going concern. The continuation of the Company’s
activities is dependent on the availability of adequate financial support. The financial statements have been prepared on a going concern basis, because the major shareholder of the Company, Colony Capital LLC, agreed to provide adequate funds for
the Company to meet its liabilities as they fall due. 
  

	3	SIGNIFICANT ACCOUNTING POLICIES 

 Basis of preparation 

The financial statements of the Company have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB). 
 The financial statements have been presented in US Dollars. 

The financial statements are prepared on a historical cost basis. 

Changes in accounting policies 
 The accounting policies
adopted are consistent with those of the previous financial year, except for the following amendments to IFRS effective as of 1 January 2014: 
  

	 	•	 	Recoverable Amount Disclosures for Non-Financial Assets – Amendments to IAS 36 

  

	 	•	 	Investment Entities (Amendments to IFRS 10, IFRS 12 and IAS 27) 

  

	 	•	 	Offsetting Financial Assets and Financial Liabilities - Amendments to IAS 32 

  

	 	•	 	Novation of Derivatives and Continuation of Hedge Accounting – Amendments to IAS 39 

 The adoption of the
above new standard and amendments to standards did not impact the financial position or performance of the Company. 
 Income tax 

Taxes are accrued for in accordance with the Lebanese Income Tax Law. 

Cash and cash equivalents 
 Cash and cash equivalents
comprise of cash on hand and bank balances and short-term deposits with an original maturity of three months or less. 
 Accounts payable and accruals

 Liabilities are recognized for amounts to be paid in the future for goods or services received, whether billed by the supplier or not. 

Accounts receivable 
 Accounts receivable are stated at
original invoice amount less a provision for any uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when there is no possibility of recovery. 

  
  

6 

 COLONY CAPITAL (OFFSHORE) SAL 

 
 NOTES TO THE FINANCIAL STATEMENTS 

31 December 2014 
  

	3	SIGNIFICANT ACCOUNTING POLICIES (continued) 

  

 Foreign currency transactions 

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the statement of financial position date. All differences are taken to the statement of comprehensive income. 

Fair values 
 The fair value of interest-bearing items is
estimated based on discounted cash flows using interest rates for items with similar terms and risk characteristics. 
  

	4	GENERAL AND ADMINISTRATIVE EXPENSES 

  

									
	 	  	 2014

US$
	 	  	2013
US$	 
			
	 Salaries and related benefits
	  	 	73,259	  	  	 	—  	  
	 Office rent
	  	 	55,001	  	  	 	—  	  
	 Professional fees
	  	 	18,220	  	  	 	2,860	  
	 Transportation and telecommunications
	  	 	17,919	  	  	 	—  	  
	 Maintenance
	  	 	10,826	  	  	 	—  	  
	 Water and electricity expenses
	  	 	8,693	  	  	 	—  	  
	 Office supplies and stationery
	  	 	6,291	  	  	 	—  	  
	 Taxes
	  	 	6,965	  	  	 	—  	  
	 Gifts
	  	 	2,012	  	  	 	—  	  
	 Others
	  	 	56	  	  	 	663	  
		  	  
	  
	 	  	  
	  
	 
			 	199,242	  		 	3,523	  
		  	  
	  
	 	  	  
	  
	 

  

	5	PROPERTY AND EQUIPMENT 

  

																	
	 	  	 Computer

equipment
 US$
	 	  	 Office

equipment
 US$
	 	  	Furniture
and fixtures
US$	 	  	 Total

US$
	 
					
	 Cost
	  				  				  				  			
	 At 1 January 2014
	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  
	 Additions
	  	 	3,431	  	  	 	605	  	  	 	11,094	  	  	 	15,130	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 At 31 December 2014
		 	3,431	  		 	605	  		 	11,094	  		 	15,130	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
					
	 Depreciation
																
	 At 1 January 2014
		 	—  	  		 	—  	  		 	—  	  		 	—  	  
	 Depreciation charge for the year
		 	687	  		 	48	  		 	784	  		 	1,519	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 At 31 December 2014
		 	687	  		 	48	  		 	784	  		 	1,519	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
					
	 Net carrying value
																
	 At 31 December 2014
		 	2,744	  		 	557	  		 	10,310	  		 	13,611	  
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

 During 2014, the Company purchased fixed assets amounting to US$ 12,758 from Colony Capital SARL, a related party. 

  
  

7 

 COLONY CAPITAL (OFFSHORE) SAL 

 
 NOTES TO THE FINANCIAL STATEMENTS 

31 December 2014 
  

	6	OFFSHORE COMPANIES’ TAX 

 As required by the legislative decree No 46 dated 24 June 1983
amended by Law No 19 dated 5 September 2008, the Company is exempted from income tax on profits which is set at a fixed annual amount of LL 1 million (equivalent to US$ 663). 

 

	7	BALANCES WITH RELATED PARTIES 

  

									
	 	  	 2014

US$
	 	  	 2013

US$
	 
			
	 Due from related party:
	  				  			
	 Colony Capital SARL
	  	 	—  	  	  	 	247,571	  
		  	  
	  
	 	  	  
	  
	 
			
	 Due to related party:
								
	 Colony Capital LLC (Parent Company)
		 	1,423,965	  		 	1,451,616	  
		  	  
	  
	 	  	  
	  
	 

 Transactions with related parties are disclosed under note 5 to the financial statements. 

The above balances do not carry interest and have no repayment dates 
  

	8	SHARE CAPITAL 

 Share capital consists of 2,000 shares of US$ 10 each, authorized, issued and fully paid
as of 31 December 2014 (2013: same). 
  

	9	ACCOUNTS PAYABLE AND ACCRUALS 

  

									
	 	  	2014
US$	 	  	2013
US$	 
			
	 Accrued professional services
	  	 	14,721	  	  	 	6,864	  
	 Tax payable
	  	 	5,271	  	  	 	663	  
	 Other
	  	 	4,283	  	  	 	—  	  
		  	  
	  
	 	  	  
	  
	 
			 	24,275	  		 	7,527	  
		  	  
	  
	 	  	  
	  
	 

  

	10	RELATED PARTY TRANSACTIONS 

 Related parties represent associated companies, partners, directors and key
management personnel of the Company, and entities controlled, jointly controlled or significantly influenced by such parties. Pricing policies and terms of these transactions are approved by the Company’s management. 

Balances with related parties included in the statement of financial position are disclosed under note 7 to the financial statements. 

Transactions with related parties included in the statement of comprehensive income are disclosed under note 5 to the financial statements. 

 

	11	COMMITMENTS AND CONTINGENCIES 

 The Company’s books have not been inspected by the Department of
Income Tax, Value Added Tax and National Social Security Fund since inception. The ultimate outcome of any review that may take place cannot presently be determined. 

  
  

8 

 COLONY CAPITAL (OFFSHORE) SAL 

 
 NOTES TO THE FINANCIAL STATEMENTS 

31 December 2014 
  

	12	RISK MANAGEMENT 

  

	Interest	rate risk 

 The Company is exposed to minimal interest rate risk on its bank deposits. 

Credit risk 
 Credit risk is the risk that the Company
will incur losses because its counterparties fail to discharge their contractual obligations. The Company is exposed to credit risk with respect to its bank balances and due from related parties as recognized in the statement of financial position.

 The Company seeks to limit its credit risk with respect to banks by dealing with banks of good reputation. 

The Company’s related parties are considered to be highly credit-worthy. 

Liquidity risk 
 Liquidity risk is the risk that the
Company will not be able to meet its commitments associated with financial liabilities when they fall due. 
 The Company limits its liquidity risk by
ensuring necessary facilities from the parent company are available. 
 The table below summarizes the maturities of the Company’s undiscounted
financial liabilities based on contractual payment dates and current market interest rates. 
  

					
	At 31 December 2014	  	Less than
3 months
US$	 
		
	 Due to a related party
	  	 	1,423,965	  
	 Accounts payable and accruals
	  	 	24,275	  
		  	  
	  
	 
			 	1,448,240	  
		  	  
	  
	 
		
	At 31 December 2013	  	Less than
3 months
US$	 
		
	 Due to a related party
	  	 	1,451,616	  
	 Accounts payable and accruals
	  	 	7,527	  
		  	  
	  
	 
			 	1,459,143	  
		  	  
	  
	 

 Currency risk 
 Currency
risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. 
 The majority of the Company’s
transactions are denominated in US Dollars which is the Company’s functional and presentation currency. Accordingly, the Company is not exposed to significant currency risks. 

 

	13	FAIR VALUES OF FINANCIAL INSTRUMENTS 

 Financial instruments comprise of financial assets and financial
liabilities. 
 Financial assets consist of cash and bank balances and due from related parties. Financial liabilities consist of payables and due to
related parties. 
 The fair values of financial instruments are not materially different from their carrying values as of the date of the statement of
financial position. 

  
  

9EX-10.3

 Exhibit 10.3 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”), dated as of March 16, 2015, is made by and between Colony
Financial, Inc., a Maryland corporation (“CFI”), and Ronald M. Sanders (the “Executive”). CFI, together with its subsidiaries is hereinafter referred to as “the Company,” and where the context permits,
references to “the Company” shall include the Company and any successor to the Company. 
 WHEREAS, certain businesses of
the Company are currently externally managed and advised by a subsidiary of Colony Capital, LLC (“CC”) pursuant to the terms of a management agreement; 

WHEREAS, CFI, CC, Colony Capital Holdings, LLC, a Delaware limited liability company (“CC Holdings”), Colony Capital
OP Subsidiary, LLC, a Delaware limited liability company (“NewCo”), CCH Management Partners I, LLC (“CCH”), FHB Holding LLC, a Delaware limited liability company, Richard B. Saltzman and CFI RE Masterco LLC, a
Delaware limited liability company (the “OP”) have entered into that certain Contribution and Implementation Agreement, dated as of December 23, 2014 (the “Contribution Agreement”), pursuant to which, among
other things, CC Holdings, CC and CCH will contribute to the OP and the OP will acquire from CC Holdings, CC and CCH the membership interests in NewCo held by CC Holdings, CC and CCH (which constitute all of the membership interests of NewCo) (along
with the other transactions contemplated thereby, the “Contribution”) and the management of the Company will be internalized; and 

WHEREAS, CFI desires to enter into this Agreement with the Executive, effective as of the closing of the Contribution (the date on
which such closing occurs, the “Effective Date”), pursuant to which the Executive will become employed by CFI Operating Company, LLC or one of its subsidiaries (as applicable, the “Operating Entity”) and will serve
as the Executive Director, Chief Legal Officer of CFI. 
 NOW, THEREFORE, in consideration of the foregoing premises, the mutual
covenants, terms and conditions set forth herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

1. EMPLOYMENT TERM. The Executive’s employment under the terms and conditions of this Agreement shall commence on the Effective Date and shall
expire on the third anniversary of the Effective Date (the “Initial Term”); provided, however, that on the third anniversary of the Effective Date and on each subsequent anniversary thereof, the term of this Agreement
shall automatically be extended for an additional one-year period (each a “Renewal Term”) unless, not later than 180 days prior to the expiration of the Initial Term or the then-current Renewal Term, as applicable, either party
provides written notice to the other party hereto that such extension shall not take effect (a “Non-Renewal Notice”). The period during which the Executive is employed by the Company during the Initial Term and any Renewal Term
pursuant to this Agreement is referred to herein as the “Employment Term”. Notwithstanding anything set forth in this Section 1 to the contrary, the Employment Term and the Executive’s employment shall earlier terminate
immediately upon the termination of the Executive’s employment pursuant to Section 4 hereof. 

 2. POSITION; REPORTING AND DUTIES; LOCATION. 

(a) Position and Reporting. During the Employment Term, the Executive shall serve as the Executive Director, Chief Legal Officer of
CFI. The Executive shall report directly to the Chief Executive Officer of the Company during the Employment Term or, if otherwise determined by the Board of Directors of CFI (the “Board”), the Executive Chairman of CFI (the
“Executive Chairman”). 
 (b) Duties and Responsibilities. 

(i) During the Employment Term, the Executive shall devote his full business time (excepting vacation time, holidays, sick days and periods of
disability) and attention to the performance of his duties hereunder, shall faithfully serve the Company and shall have no other employment which is undisclosed to the Company or which conflicts with his duties under this Agreement; provided,
that, nothing contained herein shall prohibit the Executive from (A) participating in trade associations or industry organizations, (B) engaging in charitable, civic, educational or political activities, (C) delivering lectures
or fulfilling speaking engagements, (D) engaging in personal investment activities and personal real estate-related activities for himself and his family or (E) accepting directorships or similar positions (together, the “Personal
Activities”), in each case so long as the Personal Activities do not unreasonably interfere, individually or in the aggregate, with the performance of the Executive’s duties to the Company under this Agreement. The Company hereby
acknowledges and approves the current activities of the Executive as set forth on Schedule 1 hereto, each of which shall be deemed a Personal Activity. Notwithstanding the foregoing, to the extent that the Personal Activities include the Executive
providing services to any for-profit company (excluding CC and CFI, and any subsidiaries or portfolio companies thereof) as a member of such company’s board of directors, only two such directorships shall be permitted as a Personal Activity.

 (ii) In serving in his capacity as the Executive Director, Chief Legal Officer of CFI during the Employment Term, the Executive shall
(A) perform such duties and provide such services as are reasonably consistent with those provided by the Executive to CFI in his role as its Executive Director, Chief Legal Officer prior to the Effective Date and (B) provide such other
duties as are consistent with his role as Executive Director, Chief Legal Officer of CFI, as reasonably requested from time to time by the Board or the Executive Chairman. 

(iii) The parties acknowledge and agree that all of the compensation and benefits provided to the Executive hereunder will be in respect of
services performed by the Executive for the Operating Entity. 
 (c) Location of Employment. The Executive’s principal place of
business during the Employment Term shall be at the Company’s office in New York, New York; provided, that, the Executive may be required to engage in travel during the Employment Term in the performance of his duties hereunder.

 3. COMPENSATION AND BENEFITS. 
 (a)
Base Salary. During the Employment Term, the Company will pay to the Executive a base salary at the annualized rate of not less than $432,000 (the base salary in effect from time to time, the “Base Salary”). The Base Salary
will be paid to the Executive in accordance with the Company’s customary compensation practices from time to time in effect for the Company’s senior executive officers. The Board (or a committee of directors delegated

  
 2 

 
by the Board) will review the Base Salary from time to time, but at least annually, during the Employment Term, but may not reduce the Executive’s then-existing Base Salary without the
Executive’s prior written consent and agreement. 
 (b) Annual Cash Bonus. 

(i) For each calendar year during the Employment Term beginning with the calendar year in which the Effective Date occurs, the Executive shall
be given an opportunity to earn an annual incentive cash bonus based on an evaluation by the Board (or a committee of directors delegated by the Board) of the Executive’s performance in respect of the applicable calendar year; provided,
that, the Board or such committee may determine prior to the beginning of any such calendar year to instead condition the payment of all or a portion of the cash bonus with respect to the applicable calendar year upon the achievement of
performance measures determined by the Board or such committee in consultation with the Executive (as applicable, the “Annual Bonus”). The Executive’s target Annual Bonus for each calendar year during the Employment Term
(including the calendar year in which the Effective Date occurs) shall be no less than $1,062,500 (such amount, as increased from time to time, the “Target Bonus Amount”). If the Board (or a committee of directors delegated by the
Board), establishes reasonable performance measures as provided for above, the actual Annual Bonus amount paid to the Executive in respect of any calendar year during the Employment Term shall be based on the achievement of the applicable
performance measures and may be less or more than the applicable Target Bonus Amount. The Board (or a committee of directors delegated by the Board) will review the Target Bonus Amount from time to time, but at least annually, during the Employment
Term, but may not reduce the Executive’s then-existing Target Bonus Amount without the Executive’s prior written consent and agreement. The Executive’s Annual Bonus for the calendar year in which the Effective Date occurs shall not be
pro-rated. 
 (ii) Any Annual Bonus payment that becomes payable to the Executive hereunder will be paid to him in a cash lump sum by no
later than March 15 of the calendar year following the calendar year to which it relates (and no later than the date on which bonuses are paid to other senior executive officers of CFI); provided, that, except as otherwise set
forth in this Agreement, the Executive is an active employee as of, and has not given or received notice of termination of employment as of, the date such payment would otherwise be made. 

(c) Equity Incentives and Related Awards. 

(i) For each calendar year during the Employment Term beginning with the calendar year in which the Effective Date occurs, the Executive shall
be eligible to receive equity and equity-based incentive awards (“LTIP Awards”), with an annual target LTIP Award opportunity of no less than $680,000 (the target amount in effect from time to time, the “Target LTIP
Award”). The Board (or a committee of directors delegated by the Board) will review the Target LTIP Award (and any applicable performance measures) from time to time, but at least annually, during the Employment Term, but may not reduce the
Executive’s then-existing Target LTIP Award without the Executive’s prior written consent and agreement. 
 (ii) The Executive
shall (x) continue to receive allocations in respect of carried interests, incentive fees and other such remuneration in respect of funds and similar vehicles, as applicable, managed by the Company that were granted to the Executive prior to
the Effective Date and (y) be eligible to be granted new allocations in respect of carried interests, incentive fees and other such remuneration in respect of funds and similar vehicles, as applicable,

  
 3 

 
managed by the Company (collectively, “Fund Incentives”). Allocations of all Fund Incentives shall be made as determined by the Board (or a committee of directors delegated by
the Board) in consultation with the Executive. 
 (iii) The terms and conditions (including with respect to vesting) of any LTIP Awards and
Fund Incentives shall be no less favorable than the terms and conditions of any LTIP Awards and Fund Incentives, as applicable, granted to the executive officers of the Company during the same calendar year. 

(d) Retirement, Welfare and Fringe Benefits. During the Employment Term, the Executive shall be eligible to participate in the
retirement savings, medical, disability, life insurance, perquisite and other welfare and fringe benefit plans applicable to senior executive officers of CFI (which will include emergency airlift (if needed) from locations outside the United States
to the United States) generally in accordance with the terms of such plans as are in effect from time to time. The foregoing shall not be construed to limit the ability of the Company to amend, modify or terminate any such benefit plans, policies or
programs in accordance with their terms or to cease providing such benefit plans, policies or programs at any time and from time to time; provided, that, subject to the last sentence of this Section 3(d), the terms and conditions
imposed on Executive’s participation in such plans, policies or programs and any adverse amendments, terminations and modifications are at least as favorable to Executive as those applicable to other senior executives. In addition, the
Executive shall continue to receive the other fringe benefits and perquisites provided to the Executive by CC and its affiliates immediately prior to the Effective Date, except that the Executive shall no longer be entitled to receive a car
allowance or reimbursement for club membership dues. 
 (e) Paid Time Off. During the Employment Term, the Executive shall be
eligible to participate in the paid time off policies generally applicable to CFI’s senior executives as are in effect from time to time. 

(f) Business Expenses. The Company shall pay or reimburse the Executive for all reasonable out-of-pocket expenses that the Executive
incurs in connection with his employment during the Employment Term or his employment by CC during the 90-day period prior to the Effective Date upon presentation of expense statements or vouchers and such other information as the Company may
require in accordance with the generally applicable policies and procedures of the Company applicable to CFI’s senior executive officers as are in effect from time to time. No expense payment or reimbursement under this Section 3(f) shall
be “grossed up” or increased to take into account any tax liability incurred by the Executive as a result of such payment or reimbursement. 

(g) Insurance; Indemnification. The Executive shall be covered by such comprehensive directors’ and officers’ liability
insurance and errors and omissions liability insurance as the Company shall have established and maintained in respect of its directors and officers generally at its expense, and the Company shall cause such insurance policies to be maintained in a
manner reasonably acceptable to the Executive both during and, in accordance with the provisions of Section 4(a)(i)(D) below, after Executive’s employment with the Company. The Executive shall also be entitled to indemnification rights,
benefits and related expense advances and reimbursements to the same extent as any other director or officer of CFI and to the maximum extent permitted under applicable law pursuant to an indemnification agreement (the “Indemnification
Agreement”). 

  
 4 

 (h) Attorneys’ Fees. The Company shall promptly pay or reimburse the Executive for
reasonable attorneys’ fees incurred by the Executive in connection with the review, negotiation, drafting and execution of this Agreement and any related arrangements, and the employment agreements of Darren J. Tangen and Kevin Traenkle and any
agreements related thereto, in an aggregate amount not to exceed $50,000, subject to the Executive providing the Company with reasonable documentation of such fees within 30 days following the Effective Date. The Company shall reimburse the
Executive for such fees within 10 business days following Executive’s submission to the Company of the documentation evidencing the fees. 
 4.
TERMINATION OF EMPLOYMENT. 
 (a) General Provisions. 

(i) Upon any termination of Executive’s employment with the Company, the Executive shall be entitled to receive the following:
(A) any accrued but unpaid Base Salary and vacation (determined in accordance with Company policy) through the date of termination (paid in cash within 30 days (or such shorter period required by applicable law) following the date of
termination); (B) reimbursement for expenses and fees incurred by the Executive prior to the date of termination in accordance with Sections 3(f) and 3(h); (C) vested and accrued benefits, if any, to which the Executive may be entitled
under the Company’s employee benefit plans as of the date of termination; and (D) any additional amounts or benefits due under any applicable plan, program, agreement or arrangement of the Company (including continuing “tail”
indemnification and directors and officers liability insurance for actions and inactions occurring while the Executive provided services for CFI and its affiliates and continued coverage for any actions or inactions by the Executive while providing
cooperation under this Agreement), including any such plan, program, agreement or arrangement relating to equity or equity-based awards (the amounts and benefits described in clauses (A) through (D) above, collectively, the
“Accrued Benefits”). The Accrued Benefits shall in all events be paid in accordance with the Company’s payroll procedures, expense reimbursement procedures or plan terms, as applicable. 

(ii) During any notice period required under this Section 4, (A) the Executive shall remain employed by the Company and shall
continue to be bound by all the terms of this Agreement and any other applicable duties and obligations to the Company, (B) the Company may direct the Executive not to report to work, and (C) the Executive shall only undertake such actions
on behalf of the Company, consistent with his position, as expressly directed by the Company. 
 (b) Termination for Cause or by the
Executive without Good Reason. 
 (i) The Employment Term and the Executive’s employment hereunder may be terminated at any time
either (A) by the Company for “Cause” (as defined and determined below), effective as set forth in Section 4(b)(iii), or (B) by the Executive without Good Reason, effective 30 days following the date on which notice of such
termination is given by the Executive to the Company. 
 (ii) If the Executive’s employment is terminated by the Company for Cause, or
by the Executive without Good Reason, the Executive shall only be entitled to receive the Accrued Benefits. 
 (iii) For purposes of this
Agreement, a termination for “Cause” shall mean a termination of the Executive’s employment with the Company because of (A) the Executive’s 

  
 5 

 
conviction of, or plea of no contest to, any felony under the laws of the United States or any state within the United States (other than a traffic-related felony) which termination shall become
effective immediately as of the date the Board determines to terminate the Agreement, which action must be taken on or after the date of such conviction or plea or within 60 days thereafter; (B) the Executive’s willful and gross misconduct
in connection with the performance of his duties to the Company (other than by reason of his incapacity or disability), it being expressly understood that the Company’s dissatisfaction with the Executive’s performance shall not constitute
Cause; or (C) a continuous, willful and material breach by the Executive of this Agreement after written notice of such breach has been provided to the Executive by the Board, provided, that, in no event shall any action or
omission in subsections (B) or (C) constitute “Cause” unless (1) the Company gives notice to the Executive stating that the Executive will be terminated for Cause, specifying the particulars thereof in reasonable detail and
the effective date of such termination (which shall be no less than 10 business days following the date on which such written notice is received by the Executive) and (2) the Executive fails or refuses to materially cure or cease such
misconduct or breach within 10 business days after such written notice is given to him. For purposes of the foregoing sentence, no act, or failure to act, on the Executive’s part shall be considered willful unless done or omitted to be done, by
him not in good faith and without reasonable belief that his action or omission was in the best interest of the Company, and any act or omission by the Executive pursuant to the authority given pursuant to a resolution duly adopted by the Board or
on the advice of counsel for the Company will be deemed made in good faith and in the best interests of the Company. 
 (c) Termination
by the Company without Cause or by the Executive for Good Reason. 
 (i) The Employment Term and the Executive’s employment
hereunder may be terminated (A) by the Company at any time without Cause, effective four business days following the date on which written notice to such effect is delivered to the Executive, or (B) by the Executive for “Good
Reason” (as defined and determined below), effective as set forth in Section 4(c)(iii). 
 (ii) If the Executive’s employment
is terminated by the Company without Cause or by the Executive for Good Reason, the Company shall pay or provide to the Executive (A) the Accrued Benefits and (B) upon the Executive’s execution of a separation agreement containing a
general release of claims substantially in the form attached as Exhibit A hereto (the “Release”), and the expiration of the applicable revocation period with respect to such Release within 60 days following the date of termination
(the date on which the Release becomes effective, the “Release Effective Date”): 
 (A) A lump sum cash payment equal to
the product of (i) two and (ii) the sum of (1) the Base Salary in effect immediately prior to the date of termination (without regard to any reduction that gives rise to Good Reason) and (2) (x) if such termination occurs on
or after the date on which the Annual Bonus, if any, is paid to the Executive in respect of the second calendar year following the calendar year in which the Effective Date occurs (the “Third Annual Bonus”), the average Annual Bonus
paid in respect of each of the three calendar years prior to the date of termination or (y) if such termination occurs prior to the date on which the Third Annual Bonus, if any, is paid, the Target Bonus Amount in effect immediately prior to
the date of termination (without regard to any reduction that gives rise to Good Reason), payable on the first regularly scheduled payroll date of the Company following the Release Effective Date and in no event later than the 60th day following the date of termination (the actual date of 

  
 6 

 
payment, the “Severance Payment Date”); provided, that, if the 60 day period referenced in Section 4(c)(ii) begins in one calendar year and ends in a subsequent calendar
year, the Severance Payment Date will in all events occur in the second calendar year; 
 (B) A lump sum cash payment equal to the Annual
Bonus, if any, that the Executive would have received in respect of the calendar year prior to the calendar year in which the termination occurs had the Executive remained an active employee of the Company, based on the achievement of the applicable
performance measures, to the extent unpaid as of the termination date, payable on the date such amount would have been paid had the Executive continued in employment (the “Unpaid Bonus”); 

(C) A lump-sum payment equal to the product of (1) the Target Annual Bonus in effect for the calendar year in which the termination
occurs, and (2) a fraction, the numerator of which shall equal the number of days during the year in which the termination date occurs that the Executive was employed by the Company and the denominator of which shall equal 365, payable on the
Severance Payment Date (the “Pro-Rated Bonus”); 
 (D) Continuation of the Company’s contributions necessary to
maintain the Executive’s coverage for the 24 calendar months immediately following the end of the calendar month in which the termination date occurs under the medical, dental and vision programs in which the Executive participated immediately
prior to his termination of employment (and such coverage shall include the Executive’s eligible dependents); provided, that, if the Company determines in good faith that such contributions would cause adverse tax consequences to
the Company or the Executive under applicable law, the Company shall instead provide the Executive with monthly cash payments during such 24-month period in an amount that, after reduction for applicable taxes (assuming the Executive pays taxes at
the highest marginal rates in the applicable jurisdictions), is equal to the amount of the Company’s monthly contributions referenced above. The applicable period of health benefit continuation under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) shall begin on the expiration of such 24-month period; and 
 (E) Full vesting as of
the date of termination of any and all equity or equity-based awards relating to the securities of the Company and any Fund Incentives that are outstanding and unvested immediately prior to the date of such termination. 

(iii) For purposes of this Agreement, “Good Reason” shall mean any action by the Company, in each case without the
Executive’s prior written consent, that (A) results in a material diminution in the Executive’s duties, authority or responsibilities or a diminution in the Executive’s title or position; (B) requires the Executive to report
to any person other than the Chief Executive Officer or the Executive Chairman; (C) reduces the Base Salary, Target Annual Bonus or Target LTIP Award then in effect; (D) relocates the Executive’s principal place of employment to a
location more than 25 miles from the location in effect immediately prior to such relocation; or (E) constitutes a material breach by the Company of this Agreement or any other material agreement between the Executive and the Company ;
provided, that, in no event shall the occurrence of any such condition constitute Good Reason unless (1) the Executive gives notice to the Company of the existence of the Executive’s knowledge of the condition giving rise to
Good Reason within 90 days following its initial existence, (2) the Company fails to cure such condition within 30 days following the date such notice is given and (3) the Executive terminates his employment with the Company within 30 days
following the expiration of such cure period. 

  
 7 

 (d) Termination Due to Death or Disability. 

(i) The Employment Term and the Executive’s employment hereunder (A) may be terminated by the Company as a result of the
Executive’s “Disability” (as defined and determined below) and (B) shall terminate immediately as a result of the Executive’s death. 

(ii) If the Executive’s employment is terminated by the Company as a result of the Executive’s Disability or terminates as a result
of the Executive’s death, the Company shall provide the Executive (or his estate) with: (A) the Accrued Benefits, (B) the Unpaid Bonus, (C) a lump sum payment equal to the Pro-Rated Bonus with respect to the calendar year in
which the termination occurs and (D) full vesting as of the date of termination of any and all equity or equity-based awards relating to the securities of the Company and any Fund Incentives that are outstanding and unvested immediately prior
to the date of such termination. 
 (iii) For purposes of this Agreement, “Disability” shall mean a physical or mental
incapacity that substantially prevents the Executive from performing his duties hereunder and that has continued for at least 180 consecutive days. Any dispute as to whether or not the Executive is disabled within the meaning of the preceding
sentence shall be resolved by a qualified, independent physician reasonably satisfactory to the Executive and the Company, and the determination of such physician shall be final and binding upon both the Executive and the Company. All fees and
expenses of any such physician shall be borne solely by the Company. 
 (e) Non-Renewal of Agreement. 

(i) If the Company gives a Non-Renewal Notice to the Executive, the Employment Term and the Executive’s employment hereunder shall
terminate as of the expiration of the Initial Term or then-current Renewal Term, as applicable, and the Company shall provide the Executive with all of the payments and benefits set forth in Section 4(c) hereof, subject to his execution and
non-revocation of the Release by the Release Effective Date. 
 (ii) If the Executive gives a Non-Renewal Notice to the Company, the
Employment Term and the Executive’s employment hereunder shall terminate as of the expiration of the Initial Term or then-current Renewal Term, as applicable, and the Company shall provide the Executive with (A) the Accrued Benefits,
(B) any Unpaid Bonus in respect of the calendar year prior to the calendar year in which the termination occurs and (C) the Pro-Rated Bonus in respect of the calendar year in which the termination occurs. 

(f) Return of Property. Upon any termination of the Executive’s employment hereunder, the Executive shall as soon as practicable
following such termination deliver or cause to be delivered to the Company the tangible property owned by the Company, which is in the possession or control of the Executive. Notwithstanding the foregoing, the Executive shall be permitted to retain
his calendar and his contacts and investor lists, all compensation-related plans and agreements, any documents reasonably needed for personal tax purposes and his personal notes, journals, diaries and correspondence (including personal emails). In
addition, the Executive shall be able to retain his mobile phone(s) and personal computer(s) and his cell phone number(s). 
 (g)
Resignation as Officer or Director. Unless requested otherwise by the Company, upon any termination of the Executive’s employment hereunder the Executive shall resign each position (if any) that the Executive then holds as an officer or
director of the Company. The Executive’s execution of this Agreement shall be deemed the grant by the Executive to the 

  
 8 

 
officers of the Company of a limited power of attorney to sign in the Executive’s name and on the Executive’s behalf any such documentation as may be required to be executed solely for
the limited purposes of effectuating such resignations. 
 (h) No Set-Off or Mitigation. The Company’s obligations to make
payments under this Agreement shall not be affected by any set-off, counterclaim, recoupment or other claim the Company or any of its affiliates may have against the Executive. The Executive does not need to seek other employment or take any other
action to mitigate any amounts owed to the Executive under this Agreement, and those amounts shall not be reduced if the Executive does obtain other employment. 

5. RESTRICTIVE COVENANTS. The Executive is entering into the Restrictive Covenant Agreement, substantially in the form attached as Exhibit B hereto
(the “Restrictive Covenant Agreement”), as of the date hereof. The Restrictive Covenant Agreement shall become effective as of the Effective Date and shall continue in effect at all applicable times following the Effective Date in
accordance with the terms and conditions thereof. 
 6. SECTION 280G. 

(a) Treatment of Payments. Notwithstanding anything in this Agreement or any other plan, arrangement or agreement to the contrary, in
the event that an independent, nationally recognized, accounting firm which shall be designated by the Company with the Executive’s written consent (which consent shall not be unreasonably withheld) (the “Accounting Firm”)
shall determine that any payment or benefit received or to be received by the Executive from the Company or any of its affiliates or from any person who effectuates a change in control or effective control of the Company or any of such person’s
affiliates (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement) (all such payments and benefits, the “Total Payments”) would fail to be deductible under Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”), or otherwise would be subject (in whole or part) to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”) then the Accounting Firm shall determine
if the payments or benefits to be received by the Executive that are subject to Section 280G of the Code shall be reduced to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax, but such reduction shall
occur if and only to the extent that the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes, and employment, Social Security and Medicare taxes on such reduced Total
Payments), is greater than or equal to the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income taxes and employment, Social Security and Medicare taxes on such Total
Payments and the amount of Excise Tax (or any other excise tax) to which the Executive would be subject in respect of such unreduced Total Payments). For purposes of this Section 6(a), the above tax amounts shall be determined by applying the
highest marginal rate under Section 1 of the Code and under state and local laws which applied (or is likely to apply) to the Executive’s taxable income for the tax year in which the transaction which causes the application of
Section 280G of the Code occurs, or such other rate(s) as the Accounting Firm determines to be likely to apply to the Executive in the relevant tax year(s) in which any of the Total Payments is expected to be made. If the Accounting Firm
determines that the Executive would not retain a larger amount on an after-tax basis if the Total Payments were so reduced, then the Executive shall retain all of the Total Payments. 

  
 9 

 (b) Ordering of Reduction. In the case of a reduction in the Total Payments pursuant to
Section 6(a), the Total Payments will be reduced in the following order: (i) payments that are payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to
zero), with amounts that are payable last reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such
values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii) payments that are payable in cash that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A
24, with amounts that are payable last reduced first, will next be reduced; (iv) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest
values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next
reduced pro-rata. 
 (c) Certain Determinations. For purposes of determining whether and the extent to which the Total Payments will
be subject to the Excise Tax: (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of
Section 280G(b) of the Code will be taken into account; (ii) no portion of the Total Payments will be taken into account which, in the opinion of tax counsel (“Tax Counsel”) reasonably acceptable to the Executive and
selected by the Accounting Firm, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no
portion of such Total Payments will be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the
“base amount” (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will
be determined by the Accounting Firm in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. The Executive and the Company shall furnish such documentation and documents as may be necessary for the Accounting Firm to
perform the requisite calculations and analysis under this Section 6 (and shall cooperate to the extent necessary for any of the determinations in this Section 6(c) to be made), and the Accounting Firm shall provide a written report of its
determinations hereunder, including detailed supporting calculations. If the Accounting Firm determines that aggregate Total Payments should be reduced as described above, it shall promptly notify the Executive and the Company to that effect. In the
absence of manifest error, all determinations by the Accounting Firm under this Section 6 shall be binding on the Executive and the Company and shall be made as soon as reasonably practicable and in no event later than 15 days following the
later of the Executive’s date of termination of employment or the date of the transaction which causes the application of Section 280G of the Code. The Company shall bear all costs, fees and expenses of the Accounting Firm and any legal
counsel retained by the Accounting Firm. 
 (d) Additional Payments. If the Executive receives reduced payments and benefits by
reason of this Section 6 and it is established pursuant to a determination of a court of competent jurisdiction which is not subject to review or as to which the time to appeal has expired, or pursuant to an Internal Revenue Service proceeding,
that the Executive could have received a greater amount without resulting in any Excise Tax, then the Company shall thereafter pay the Executive the aggregate additional amount which could have been paid without resulting in any Excise Tax as soon
as reasonably practicable following such determination. 

  
 10 

 7. ASSIGNMENT; ASSUMPTION OF AGREEMENT. No right, benefit or interest hereunder shall be subject to
assignment, encumbrance, charge, pledge, hypothecation or setoff by the Executive in respect of any claim, debt, obligation or similar process. This Agreement may not be assigned by CFI and CFI will require any successor (whether direct or indirect,
by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of the Company to assume expressly and to agree to perform this Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. 
 8. PERMITTED TRANSFERS. CFI acknowledges and agrees that any transfer by CC Holdings
or CCH of OP Common Units (as defined in the Contribution Agreement) to Executive in compliance with the applicable Lock-Up Agreements (as defined in the Contribution Agreement) will be deemed to constitute a transfer that is “expressly
authorized” under a Non-Managing Ancillary Agreement and shall constitute a “Permitted Transfer” for purposes of the OP LLC Agreement (as defined in the Contribution Agreement). 

9. MISCELLANEOUS PROVISIONS. 
 (a) No
Breach of Obligation to Others. The Executive represents and warrants that his entering into this Agreement does not, and that his performance under this Agreement and consummation of the transactions contemplated hereby and thereby will not,
violate the provisions of any agreement or instrument to which the Executive is a party or any decree, judgment or order to which the Executive is subject, and that this Agreement constitutes a valid and binding obligation of the Executive
enforceable against the Executive in accordance with its terms. 
 (b) Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of California applicable to agreements entered into and to be performed entirely within such state. 

(c) Entire Agreement. This Agreement, together with the documents referred to herein, constitutes and expresses the whole agreement of
the parties hereto with reference to any of the matters or things herein provided for or herein before discussed or mentioned with reference to the Executive’s employment with the Company, and it cancels and replaces any and all prior
understandings, agreements and term sheets between the Executive and CFI and any of its subsidiaries or affiliates; provided, that, this Agreement shall not alter, amend or supersede (i) any Fund Incentives issued to Executive by
CC in connection with his prior employment, (ii) any interest the Executive or any of his affiliates may have in any general partner of any fund or related entity managed by the Company, (iii) any rights the Executive may have under the
Contribution Agreement, (iv) the Ancillary Documents (as defined in the Contribution Agreement), (v) the Indemnification Agreement referenced in Section 3(g) of this Agreement to which the Executive or any of his affiliates is a party
or beneficiary and (vi) any equity grant made by CFI to the Executive prior to the Effective Date. All promises, representations, collateral agreements and understandings not expressly incorporated in this Agreement are hereby superseded by
this Agreement. 

  
 11 

 (d) Notices. All notices, requests, demands and other communications required or permitted
hereunder must be made in writing and will be deemed to have been duly given and effective: (a) on the date of delivery, if delivered personally; (b) on the earlier of the fourth day after mailing or the date of the return receipt
acknowledgment, if mailed, postage prepaid, by certified or registered mail, return receipt requested; (c) on the date of transmission, if sent by facsimile; or (d) on the date of requested delivery if sent by a recognized overnight
courier: 
  

			
	If to the Company:		Colony Financial, Inc.
			2450 Broadway, 6th Floor
			Santa Monica, CA 90404
			Attention: Chief Executive Officer
		
	If to the Executive:		to the last address of the Executive in the Company’s records specifically identified for notices under this Agreement
		
	With a copy to:		Willkie Farr & Gallagher LLP
			787 Seventh Avenue
			New York, NY 10019
			Attention: Michael A. Katz and Adam Turteltaub

 or to such other address as is provided by a party to the other from time to time. 

(e) Survival. The representations, warranties and covenants of the Executive contained in this Agreement will survive any termination
of the Executive’s employment with the Company. 
 (f) Amendment; Waiver; Termination. No provision of this Agreement may be
amended, modified, waived or discharged unless such amendment, modification, waiver or discharge is agreed to in writing and signed by the Executive and CFI. No waiver by either party hereto at any time of any breach by the other party hereto of
compliance with any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. This Agreement and the
transactions contemplated herein shall terminate automatically without any further action by any party upon the termination of the Contribution Agreement. 

(g) Further Assurances. The parties hereto will from time to time after the date hereof execute, acknowledge where appropriate and
deliver such further instruments and take such other actions as any other party may reasonably request in order to carry out the intent and purposes of this Agreement. 

(h) Severability. If any term of provision hereof is determined to be invalid or unenforceable in a final court or arbitration
proceeding, (i) the remaining terms and provisions hereof shall be unimpaired and (ii) to the extent permitted by applicable law, the invalid or unenforceable term or provision shall be deemed replaced by a term or provision that is valid
and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. 

  
 12 

 (i) Arbitration. Except as otherwise set forth in the Restrictive Covenant Agreement, any
dispute or controversy arising under or in connection with this Agreement that cannot be mutually resolved by the parties hereto shall be settled exclusively by arbitration in New York, New York, before a panel of three neutral arbitrators, each of
whom shall be selected jointly by the parties, or, if the parties cannot agree on the selection of the arbitrators, as selected by the American Arbitration Association. The commercial arbitration rules of the American Arbitration Association (the
“AAA Rules”) shall govern any arbitration between the parties, except that the following provisions are included in the parties’ agreement to arbitrate and override any contrary provisions in the AAA Rules: 

(i) The agreement to arbitrate and the rights of the parties hereunder shall be governed by and construed in accordance with
the laws of the State of California, without regard to conflict or choice of law rules; 
 (ii) The California Arbitration
Act shall govern the arbitration, the agreement to arbitrate, and any proceedings to enforce, confirm, modify or vacate the award; 

(iii) The arbitrators shall apply California law; 

(iv) Any petition or motion to modify or vacate the award shall be filed in a Superior Court in California (the
“Court”); 
 (iv) The award shall be written, reasoned, and shall include findings of fact as to all factual
issues and conclusions of law as to all legal issues; 
 (v) Either party may seek a de novo review by the Court of the
conclusions of law included in the award and any petition or motion to enforce, confirm, modify or vacate the award; and 

(vi) The arbitration shall be confidential. Judgment may be entered on the arbitrators’ award in any court having
jurisdiction. 
 The parties hereby agree that the arbitrators shall be empowered to enter an equitable decree mandating specific enforcement of the terms
of this Agreement. Each party shall bear its own legal fees and out-of-pocket expenses incurred in any arbitration hereunder and the parties shall share equally all expenses of the arbitrators; provided, that, the arbitrator shall have
the same authority to award reasonable attorneys’ fees to the prevailing party in any arbitration as part of the arbitrator’s award as would be the case had the dispute or controversy been argued before a court with competent jurisdiction.

 (j) Section 409A. The intent of the parties is that payments and benefits under this Agreement comply with Section 409A
of the Code, to the extent subject thereto, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted and administered to be in compliance therewith. In the event that any provision of Agreement or any other agreement or
award referenced herein is mutually agreed by the parties to be in violation of Section 409A of the Code, the parties shall cooperate reasonably to attempt to amend or modify this Agreement (or other agreement or award) in order to avoid a
violation of Section 409A of the Code while attempting to preserve the economic intent of the applicable provision. Notwithstanding anything contained herein to the contrary, the Executive shall not be considered to have terminated employment
with the Company for purposes of any payments under this Agreement which are subject to Section 409A of the Code until the Executive would be considered to have incurred a “separation from service” from the Company within the meaning
of Section 409A of 

  
 13 

 
the Code. Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Section 409A of the Code. Without limiting
the foregoing and notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, amounts that would otherwise be payable and benefits
that would otherwise be provided pursuant to this Agreement or any other arrangement between the Executive and the Company during the six-month period immediately following the Executive’s separation from service shall instead be paid on the
first business day after the date that is six months following the Executive’s separation from service (or, if earlier, the Executive’s date of death). To the extent required to avoid an accelerated or additional tax under
Section 409A of the Code, amounts reimbursable to the Executive under this Agreement shall be paid to the Executive on or before the last day of the year following the year in which the expense was incurred and the amount of expenses eligible
for reimbursement (and in kind benefits provided to the Executive) during one year may not affect amounts reimbursable or provided in any subsequent year. CFI makes no representation that any or all of the payments described in this Agreement will
be exempt from or comply with Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to any such payment. For purposes of this Section 9(j), Section 409A of the Code shall include all
regulations and guidance promulgated thereunder. 
 (k) Headings. The headings in this Agreement are for reference only and shall not
affect the interpretation of this Agreement. 
 (l) Construction. The parties acknowledge that this Agreement is the result of
arm’s-length negotiations between sophisticated parties, each afforded representation by legal counsel. Each and every provision of this Agreement shall be construed as though both parties participated equally in the drafting of the same, and
any rule of construction that a document shall be construed against the drafting party shall not be applicable to this Agreement. 
 (m)
Counterparts. This Agreement may be executed by the parties hereto in counterparts, each of which shall be deemed an original, but both such counterparts shall together constitute one and the same document. 

(n) Tax Withholding. The Company may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as
the Company is required to withhold pursuant to any applicable law, regulation or ruling. Notwithstanding any other provision of this Agreement, the Company shall not be obligated to guarantee any particular tax result for the Executive with respect
to any payment provided to the Executive hereunder, and the Executive shall be responsible for any taxes imposed on Executive with respect to any such payment. 

(o) Cooperation. For a period of 12 months following the termination of the Executive’s employment with the Company for any
reason, the Executive shall provide reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events during the Executive’s employment hereunder of which the Executive has
knowledge. The Company shall reimburse the Executive for the Executive’s reasonable travel expenses incurred in connection with the foregoing, in accordance with the Company’s policies (and consistent with the Executive’s travel
practices during the Executive’s employment with the Company) and subject to the delivery of reasonable support for such expenses. Any such requests for cooperation shall be subject to the Executive’s business and personal schedule and the
Executive shall not be required to cooperate against his 

  
 14 

 
own legal interests or the legal interests of his employer or partners or business ventures. In the event the Executive reasonably determines that he needs separate legal counsel in connection
with his cooperation, the Company shall reimburse the Executive for the reasonable costs of such counsel as soon as practicable (and in any event within 30 days) following its receipt of an invoice for such costs. In the event the Executive is
required to cooperate for more than 8 hours in any 12-month period, the Executive shall be paid an hourly consulting fee in an amount mutually agreed between the Company and Executive at the time. 

(p) Effectiveness. This Agreement and the transactions contemplated herein shall be conditioned upon the closing of the transactions
contemplated by the Contribution Agreement. In the event that the Contribution Agreement terminates prior to the closing of the transactions contemplated thereby, this Agreement shall terminate automatically without any further action by any party
and shall be void ab initio. If the Contribution Agreement is amended or modified prior to the Effective Date in a manner that has the effect of reducing the Consideration (as defined in the Contribution Agreement) payable to CCH under the
Contribution Agreement, the Executive will have the option of terminating this Agreement during the two business days following such time as CFI notifies the Executive of the amendment or modification (which notice may be given either before or
after the date of such amendment or modification). The option to terminate this Agreement must be exercised by the Executive by written notice to CFI within such two (2) business day period, after which time the option to terminate will expire.

 [remainder of page intentionally left blank] 

  
 15 

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

			
	 COLONY FINANCIAL, INC.

		
	 By:
		 /s/ Mark Hedstrom

	 Name:
		Mark Hedstrom
	 Title:
		Vice President
	
	 EXECUTIVE

	
	 /s/ Ronald M. Sanders

	 Ronald M. Sanders

 [Signature Page to Ronald M. Sanders Employment Agreement] 

 Schedule 1 

Current Activities 
 None. 

 Exhibit A 

Form of Release 
 Ronald
M. Sanders (“Executive”), a former employee of Colony Financial, Inc. (“CFI” and together with its subsidiaries, the “Employer”), hereby enters into and agrees to be bound by this General Waiver and
Release of Claims (the “Release”). Executive acknowledges that he is required to execute this Release in order to be eligible for certain post-termination benefits (the “Post-Termination Benefits”) as set forth in
Section [4(c)(ii)] / [4(e)(i)] of his Employment Agreement with CFI, dated March 16, 2015 (the “Employment Agreement”). Unless otherwise indicated, capitalized terms used but not defined herein shall have the meanings specified
in the Employment Agreement. 
 1. SEPARATION DATE. Executive acknowledges and agrees that his separation from Employer was effective as of
            , 20XX ( the “Separation Date”). 
 2. WAGES FULLY PAID.
Executive acknowledges and agrees that he has received payment in full for all salary and other wages, including without limitation any accrued, unused vacation or other similar benefits earned through the Separation Date. 

3. EXECUTIVE’S GENERAL RELEASE OF CLAIMS. 

(a) Waiver and Release. Pursuant to Section [4(c)(ii)] / [4(e)(i)] of the Employment Agreement, and in consideration of the
Post-Termination Benefits to be provided to Executive as outlined in the Employment Agreement and this Release as set forth herein, Executive, on behalf of himself and his heirs, executors, administrators and assigns, forever waives, releases and
discharges Employer, its officers, directors, owners, shareholders and agents (collectively referred to herein as, the “Employer Group”), and each of its and their respective officers, directors, shareholders, members, managers,
employees, agents, servants, accountants, attorneys, heirs, beneficiaries, successors and assigns (together with the Employer Group, the “Employer Released Parties”), from any and all claims, demands, causes of actions, fees,
damages, liabilities and expenses (including attorneys’ fees) of any kind whatsoever, whether known or unknown, that Executive has ever had or might have against the Employer Released Parties that directly or indirectly arise out of, relate to,
or are connected with, Executive’s services to, or employment by the Company, including, but not limited to (i) any claims under Title VII of the Civil Rights Act, as amended, the Americans with Disabilities Act, as amended, the Family and
Medical Leave Act, as amended, the Fair Labor Standards Act, as amended, the Equal Pay Act, as amended, the Employee Retirement Income Security Act, as amended (with respect to unvested benefits), the Civil Rights Act of 1991, as amended,
Section 1981 of Title 42 of the United States Code, the Sarbanes-Oxley Act of 2002, as amended, the Worker Adjustment and Retraining Notification Act, as amended, the Age Discrimination in Employment Act, as amended, the Uniform Services
Employment and Reemployment Rights Act, as amended, the California Fair Employment and Housing Act, as amended, and the California Labor Code, as amended, and/or any other federal, state or local law (statutory, regulatory or otherwise) that may be
legally waived and released and (ii) any tort and/or contract claims, including any claims of wrongful discharge, defamation, emotional distress, tortious interference with contract, invasion of privacy, nonphysical injury, personal injury or
sickness or any other harm. Executive acknowledges that 

  
 A-1 

 
if the Equal Employment Opportunity Commission or any other administrative agency brings any charge or complaint on his behalf or for his benefit, this Release bars Executive from receiving, and
Executive hereby waives any right to, any monetary or other individual relief related to such a charge or complaint. This Release, however, excludes (i) any claims made under state workers’ compensation or unemployment laws, and/or any
claims that cannot be waived by law, (ii) claims with respect to the breach of any covenant (including any payments under the Employment Agreement) to be performed by Employer after the date of this Release, (iii) any rights to
indemnification or contribution or directors’ and officers’ liability insurance under the Employment Agreement, Indemnification Agreement, any operative documents of the Company or any applicable law, (iv) any claims as a holder of
Company equity awards under the Company’s equity incentive plans or as a holder of Fund Incentives; and (v) any claims for vested benefits under any employee benefit plan (excluding any severance plan and including claims under the
Consolidated Omnibus Budget Reconciliation Act of 1985) or any claims that may arise after the date Executive signs the Release. 
 (b)
Waiver of Unknown Claims; Section 1542. Executive intends to fully waive and release all claims against Employer; therefore, he expressly understands and hereby agrees that this Release is intended to cover, and does cover, not
only all known injuries, losses or damages, but any injuries, losses or damages that he does not now know about or anticipate, but that might later develop or be discovered, including the effects and consequences of those injuries, losses or
damages. Executive expressly waives the benefits of and right to relief under California Civil Code Section 1542 (“Section 1542”), or any similar statute or comparable common law doctrine in any jurisdiction. Section 1542
provides: 
 Section 1542. (General Release-Claims Extinguished) A general release does not extend to claims which the creditor
does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. 

Executive understands and acknowledges the significance and consequences of this specific waiver of Section 1542 and, having had the opportunity to
consult with legal counsel, hereby knowingly and voluntarily waives and relinquishes any rights and/or benefits which he may have thereunder. Without limiting the generality of the foregoing, Executive acknowledges that by accepting the benefits and
payments offered in exchange for this Release, he assumes and waives the risks that the facts and the law may be other than he believes and that, after signing this Release, he may discover losses or claims that are released under this Release, but
that are presently unknown to him, and he understands and agrees that this Release shall apply to any such losses or claims. 
 (c)
Acknowledgement of ADEA Waiver. Without in any way limiting the scope of the foregoing general release of claims, Executive acknowledges that he is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of
1967 (the “ADEA”) and that such waiver and release is knowing and voluntary. This waiver and release does not govern any rights or claims that might arise under the ADEA after the date this Release is signed by Executive. Executive
acknowledges that: (i) the consideration given for this Release is in addition to anything of value to which Executive otherwise would be entitled to receive; (ii) he has been advised in writing to consult with an attorney of his choice
prior to signing this Release; 

  
 A-2 

 
(iii) he has been provided a full and ample opportunity to review this Release, including a period of at least twenty-one (21) days within which to consider it (which will not be lengthened
by any revisions or modifications); (iv) he has read and fully understands this Release and has had the opportunity to discuss it with an attorney of his choice; (v) to the extent that Executive takes less than twenty-one (21) days to
consider this Release prior to execution, he acknowledges that he had sufficient time to consider this Release with counsel and that he expressly, voluntarily and knowingly waives any additional time; and (vi) Executive is aware of his right to
revoke this Release at any time within the seven (7)-day period following the date on which he executes this Release. Executive further understands that he shall relinquish any right he has to Post-Termination Benefits described in the Employment
Agreement if he exercises his right to revoke this Release. Notice of revocation must be made in writing and must be received by [Name, Title], no later than 5:00 p.m. Pacific Time on the seventh (7th) calendar day immediately after the day on
which Executive executes this Release. 
 4. NO CLAIMS BY EXECUTIVE. Executive affirms and warrants that he has not filed, initiated or caused
to be filed or initiated any claim, charge, suit, complaint, grievance, action or cause of action against Employer or any of the other Employer Released Parties. 

5. NO ASSIGNMENT OF CLAIMS. Executive affirms and warrants that he has made no assignment of any right or interest in any claim which he may have
against any of the Employer Released Parties. 
 6. ADVICE OF COUNSEL. Executive acknowledges: (a) that he has been advised to consult with an
attorney regarding this Release; (b) that he has, in fact, consulted with an attorney regarding this Release; (c) that he has carefully read and understands all of the provisions of this Release; and (d) that he is knowingly and
voluntarily executing this Release in consideration of the Post-Termination Benefits provided under the Employment Agreement. 

[remainder of page intentionally left blank] 

  
 A-3 

 By his signature, Ronald M. Sanders hereby knowingly and voluntarily executes this Release as of the date
indicated below. 
  

			
	  

	Ronald M. Sanders
		
	Dated:		  

 [Signature page to Ronald M. Sanders Release] 

 Exhibit B 

Form of Restrictive Covenant Agreement 

Attached hereto. 

 RESTRICTIVE COVENANT AGREEMENT 

THIS RESTRICTIVE COVENANT AGREEMENT (this “Agreement”), dated as of March 16, 2015, and effective as of the
Effective Date (as defined below), is made by and between Colony Financial, Inc., a Maryland corporation (“CFI”), and Ronald M. Sanders (“Sanders”). CFI, together with its Subsidiaries (which, following the
Effective Date, shall include NewCo (as defined below) and its subsidiaries) is hereinafter referred to as “the Company,” and where the context permits, references to “the Company” shall include the Company and any successor to
the Company. Any capitalized term that is used but not otherwise defined in this Agreement shall have the meaning set forth in the Contribution Agreement (as defined below). 

WHEREAS, CFI, CC, Colony Capital Holdings, LLC, a Delaware limited liability company (“CC Holdings”), Colony Capital
OP Subsidiary, LLC, a Delaware limited liability company (“NewCo”), CCH Management Partners I, LLC (“CCH”), FHB Holding LLC, a Delaware limited liability company, Richard B. Saltzman and CFI RE Masterco LLC, a
Delaware limited liability company (the “OP”) have entered into that certain Contribution and Implementation Agreement, dated as of December 23, 2014 (the “Contribution Agreement”), pursuant to which, among
other things, CC Holdings, CC and CCH will contribute to the OP and the OP will acquire from CC Holdings, CC and CCH the membership interests in NewCo held by CC Holdings, CC and CCH (which constitute all of the membership interests of NewCo) (along
with the other transactions contemplated thereby, the “Contribution”) and the management of the Company will be internalized; 

WHEREAS, effective as of the closing of the Contribution (the date on which such closing occurs, the “Effective
Date”), Sanders will become employed by the Company and will serve as the Executive Director, Chief Legal Officer of CFI in accordance with terms of the Employment Agreement by and between CFI and Sanders, dated as of the date hereof (the
“Employment Agreement”); 
 WHEREAS, Sanders (i) has been actively involved in the management of the business
of CC and has thereby acquired significant experience, skill, and confidential and proprietary information relating to the business and operation of CC and (ii) in the course of his participation in the business of CC, has also developed on
behalf of CC significant goodwill that is now a significant part of the value of CC; 
 WHEREAS, the Company desires to protect its
investment in the assets, businesses and goodwill of CC to be acquired as part of the Contribution and, accordingly, as a material condition to its willingness to enter into the Contribution Agreement and consummate the Contribution, has required
that Sanders agree to limit certain activities by Sanders (as contemplated hereby) that would compete with or otherwise harm such assets, businesses or goodwill; 

WHEREAS, as part of the consideration and inducement to CFI to enter into the Contribution Agreement and acquire such assets,
businesses and goodwill, Sanders is willing to agree to enter into this Agreement and abide by such restrictions; and 

 WHEREAS, the parties intend this Agreement to be in compliance with California Business
and Professions Code Section 16601 (“BPC Section 16601”) to the extent that it is applicable, and further intend for it to be fully enforceable under any applicable Law. 

NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants, terms and conditions set forth herein, and other
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Defined
Terms. For purposes of this Agreement, the following terms have the respective meanings set forth below: 
 (a)
“Business” means (x) the business of acquiring, originating and managing real estate-related debt and equity investments; provided, that, for purposes of clarification, the Business shall not include debt or
equity investments in operating companies primarily engaged in businesses outside of the real estate or hospitality industries even though such businesses may own or lease real property and (y) any alternative asset management business (other
than CC) in which more than 25% of the total capital committed is third party capital from passive investors (which term shall exclude natural persons who are partners or employees of the business and are actively engaged in the management of the
business) that advises, manages or invests the assets of funds or related investment vehicles or separate accounts. 
 (b) “Company
Materials” means all Materials that Sanders makes or conceives, or has made or conceived, solely or jointly, during the period of Sanders’ retention by or employment with the Company, whether or not patentable or registerable under
copyright, trademark or similar statutes, which (i) are related to the current or demonstrably (by expenditure of material resources or material time spent by senior management) anticipated business or activities of the Company (which includes
any fund managed by the Company during or prior to the period of Sanders’ retention by or employment with the Company); and (ii) are otherwise developed by Sanders through the use of the Company’s confidential information, equipment,
software, or other facilities or resources at a time during which Sanders has been a consultant, or employee (temporary or otherwise) of the Company. Notwithstanding the foregoing, Company Materials shall not include any Materials conceived or made,
solely or jointly, by Sanders in connection with the performance of Permitted Activities. 
 (c) “Confidential Information”
means information that is not generally known to the public and that is or was used, developed or obtained by Sanders (in his capacity as a member or employee of CC); provided, however, Confidential Information will not include any information that
is generally available to the public or within the industry prior to the date Sanders proposes to disclose or use such information. For the avoidance of doubt, “Confidential Information” does not include (x) information concerning
non-proprietary business or investment practices, methods or relationships customarily employed or entered into by comparable business enterprises, (y) the identity of investors and their investment practices, methods and relationships,
financing sources or capital market intermediaries and (z) information that is used, developed or obtained by Sanders exclusively in connection with the performance of Permitted Activities. 

(d) “Inventions” means any inventions, improvements, developments, ideas or discoveries whether patentable or unpatentable,
that meets any one of the following criteria: (i)

  
 2 

 
relates at the time of conception or reduction to practice to: (A) the business, projects or products of the Company, or to the utilization thereof; or (B) the actual or demonstrably
anticipated research or development of the Company; (ii) results from any work performed directly or indirectly by Sanders for the Company; or (iii) results, at least in part, from Sanders’ use of the Company’s time, equipment,
supplies, facilities or trade secret information; provided, however, that Inventions shall not include (x) any Invention which qualifies fully under the provisions of California Labor Code Section 2870 (a copy of which is
attached as Exhibit 1), including any idea or invention which is developed entirely on Sanders’ own time without using the Company’s equipment, supplies, facilities or trade secret information, and which is not related to the business
(either actual or demonstrably anticipated), and which does not result from work performed for the Company and (y) inventions, improvements, developments, ideas or discoveries conceived or reduced to practice by Sanders exclusively in
connection with the performance of Permitted Activities. 
 (e) “Materials” means all articles, reports, documents,
memoranda, notes, other works of authorship, data, databases, discoveries, designs, developments, ideas, creative works, improvements, inventions, know-how, processes, computer programs, software, source code, techniques and useful ideas of any
description whatsoever (or portions thereof). 
 (f) “Permitted Activities” means each of the activities described in
Section 2 hereof. 
 (g) “Person” means any individual, company, limited liability company, limited or general
partnership, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 

(h) “Restricted Period” means the period commencing on the Effective Date and ending on the first anniversary of the
termination of Sanders’ employment with the Company; provided that the Restricted Period shall immediately cease if such termination of employment is by the Company without Cause, by Sanders for Good Reason or as a result of the Company giving
a Non-Renewal Notice to Sanders (in each case, such capitalized term used herein as defined in the Employment Agreement). 
 (i)
“Restricted Territory” means (i) any of Austria, Belgium, China, Czech Republic, Denmark, England, Finland, France, Germany, Hungary, Ireland, Italy, Japan, Monaco, Netherlands, Norway, Poland, Portugal, Scotland, South Korea,
Spain, Sweden, Switzerland and the United States, (ii) any state in the United States and/or other country listed in clause (i) and (iii) any other jurisdiction in which the Company or its subsidiaries engages in Business in any
material respect. 
 2. Permitted Activities. Notwithstanding anything set forth herein to the contrary, nothing contained herein shall prohibit
Sanders from: 
 (a) engaging in the Personal Activities (as defined in the Employment Agreement); 

(b) owning, directly or indirectly, solely as an investment, securities of any such Person which are traded on any national securities
exchange or NASDAQ if Sanders (A) is not a controlling person of, or a member of a group which controls, such Person; and (B) does not, directly or indirectly, own five percent (5%) or more of any class of securities of such Person;

  
 3 

 (c) managing any capital accounts, or exercising any of the rights and obligations of the general
partner, of the upper-tier general partners with respect to the Subject Funds, or any CC Retained Assets or CC Retained Liabilities of CC Parties following the Effective Date; 

(d) taking any actions with respect to (x) investments made (or legally committed to be made) on or prior to the date hereof (including
investments in Colony AH Member LLC and its subsidiaries, SONIFI Solutions, Inc., Miramax Films, LH-COL Participants, LLC or any other Affiliate of CC that is organized to acquire or invest in Lending Home Corporation and FYH-Bar Holdings, LLC or
any other Affiliate of CC that holds an investment in Adaptive Studios) or (y) follow-on investments to the investments described in clause (x) that are not real estate-related or the sourcing of investments for the investments described
in clause (x) that are not real-estate related or (z) investments made to refinance or restructure the investments described in clauses (x) and (y) that are not real estate-related; 

(e) making passive investments in private equity funds, mutual funds, hedge funds and other managed accounts (provided that such funds or
accounts do not have a primary investment strategy, as set forth in the applicable fund’s or account’s published statement of its primary investment strategy, of investments in real estate-related debt and equity investments); 

(f) making any passive investment (or group of related passive investments) of less than $20 million in private equity funds, mutual funds,
hedge funds and other managed accounts that have a primary investment strategy, as set forth in the applicable fund’s or account’s published statement of its primary investment strategy, of investments in real estate-related debt and
equity investments; or 
 (g) making investments in private companies that are (x) not engaged in the real estate or hospitality
industries, (y) do not predominantly make investments in real estate-related debt and equity instruments and (z) do not make investments similar to those made by CFI and the OP equal to the lesser of (A) 5% of the outstanding equity
securities of such private company and (B) $30 million per company or group of affiliated companies operating as part of one business. 
 3.
Non-Competition. Sanders shall not, during the Restricted Period, directly or indirectly, in any manner within the Restricted Territory: (i) engage in the Business (other than through the Company and its Affiliates); (ii) render any
services as an employee, officer, director or consultant to any Person (other than the Company) engaged in the Business; or (iii) make an investment in a Person engaged in the Business as a partner, shareholder, principal, member or other owner
of equity interests (or securities convertible into or exercisable for, equity interests); provided, however, nothing contained in this Agreement shall restrict Sanders from (x) engaging in any activity that he determines in good faith is in
furtherance of the interests of the Company in the performance of his duties for the Company and/or (y) engaging in any Permitted Activity. In addition, nothing herein shall prohibit Sanders from providing services to an entity engaged in the
Business if Sanders’ services are solely limited to a unit, division, or subsidiary of such entity which does not engage in the Business and Sanders does not provide services directly or indirectly to, or with respect to, the Business. 

4. Non-Solicitation. Except as necessary, appropriate or desirable to perform his duties to the Company during his employment, Sanders shall not during
the Restricted Period, without 

  
 4 

 
CFI’s prior written consent, (i) directly or indirectly, on his own behalf or for any other Person, knowingly solicit or induce any officer, director, employee or independent contractor
who is a natural person that provides consulting or advisory services with respect to sourcing or consummating financings or investments of the Company (A) to terminate his or her relationship with the Company, or (B) hire any such
individual whom Sanders knows left the employment of the Company during the previous 12 months or (ii) directly or indirectly, on his own behalf or for any other Person, solicit or induce any investors to terminate (or diminish in any material
respect) his, her or its relationship with the Company. For the avoidance of doubt, identification or doing business with or co-investing with any limited partners, investors, financing sources or capital markets intermediaries with regard to
activity that is not prohibited by Section 3 above shall not be deemed to be a breach of this Section 4 or otherwise. Sanders shall not be in violation of this Section 4 by reason of providing a personal reference for any officer,
director or employee of the Company or soliciting individuals for employment through a general advertisement not targeted specifically to officers, directors or employees of the Company. 

5. Confidential Information. At all times on and following the Effective Date, Sanders shall not disclose or use for his benefit or the benefit of
others, except in connection with the business and affairs of the Company or any of its affiliates, any Confidential Information except to the extent that (i) such disclosure or use is related to, necessary, appropriate or desirable in
connection with Sanders’ performance of his duties to the Company or (ii) is related to any good faith dispute between Sanders and the Company or any of its affiliates or otherwise in connection with any action by Sanders to enforce his
rights or defend his actions under this Agreement, the Contribution Agreement, the Employment Agreement or any other agreement with the Company or any of its affiliates. Nothing contained herein shall preclude Sanders from disclosing Confidential
Information to his immediate family and personal legal and financial advisor(s), provided that Sanders informs such family member(s) and/or advisor(s) that the information is confidential in nature and receives reasonable assurances that the family
member(s) and/or advisor(s) shall not disclose such information except as required by Law or by any Authority with apparent jurisdiction over such Person. Nothing in this Agreement shall be construed to prevent Sanders from complying with applicable
Law, or disclosing information pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not in Sanders’ reasonable judgment exceed the extent of disclosure required
by such Law. Sanders shall, to the extent legally permitted, promptly provide written notice of any such order to an authorized officer of the Company after receiving such order and reasonably cooperate (at the Company’s expense) with any
efforts of the Company to seek a protective order or other measure to protect the confidentiality of such information. 
 6. Mutual
Non-Disparagement. 
 (a) At all times on and following the Effective Date, Sanders shall refrain from making any disparaging statements
about the Company or any of its present or (to the extent such Persons serve in such capacity during Sanders’ employment with the Company) future officers, directors, and, in their capacity as such, employees to any third Persons, including,
without limitation, to any press or other media, except (i) to the extent required by Law or legal process, by any Authority with apparent jurisdiction or applicable securities considerations, (ii) related to any good faith litigation or
similar proceeding between Sanders and the Company or any of such officers or directors or otherwise in connection with any good faith litigation or similar proceeding or other efforts by Sanders to enforce his rights or defend his actions under

  
 5 

 
this Agreement, the Contribution Agreement, the Employment Agreement or any other agreement with the Company or any of such officers or directors or (iii) for the making of any critical
remarks about any such Person in connection with any analyses made or opinions expressed in the ordinary course of his duties to the Company during his employment therewith. 

(b) At all times on and following the Effective Date, the senior executive officers of the Company shall not make, or cause to be made by the
Company, any disparaging or negative statements about Sanders to any third Persons, including, without limitation, to any press or other media, except (i) to the extent required by Law or legal process, by any Authority with apparent
jurisdiction or applicable securities considerations, (ii) related to any good faith litigation or similar proceeding between Sanders and the Company or otherwise in connection with any good faith litigation or similar proceeding by Sanders to
enforce his rights or defend his actions under this Agreement, the Contribution Agreement, the Employment Agreement or any other agreement with the Company or (iii) for the making of any critical remarks about Sanders in connection with any
analyses made or opinions expressed in the ordinary course of their respective duties to the Company during their employment therewith. 
 7.
Intellectual Property. 
 (a) Sanders agrees that all Company Materials shall be deemed “work made for hire” by the Company
as the “author” and owner to the extent permitted by United States copyright Law. To the extent (if any) that some or all of the Company Materials do not constitute “work made for hire,” Sanders hereby irrevocably assigns to the
Company for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, all right, title and interest in and to such Company Materials (including without limitation any and all copyright rights, patent rights and
trademark rights and goodwill associated therewith). The provisions of this paragraph will apply to all Company Materials which are or have been conceived or developed by Sanders, solely or jointly, whether or not further development or reduction to
practice may take place after the termination of Sanders’ employment or retention, by the Company. 
 (b) Sanders further agrees that
he will execute and deliver to CFI any and all further documents or instruments and do any and all further acts which the Company reasonably requests in order to perfect, confirm, defend, police and enforce the Company’s intellectual property
rights, and hereby grants to the officers of the Company an irrevocable power of attorney, coupled with interest, to such end. Sanders shall be promptly reimbursed by the Company for all costs and expenditures incurred in connection with any
cooperation referenced in this Section 7(b). 
 8. Injunctive Relief; Other Remedies. The parties agree that the remedy at Law for any breach of
this Agreement is and will be inadequate, and in the event of a breach or threatened breach by Sanders of the provisions of Sections 3, 4, 5, 6, or 7 of this Agreement, the Company shall be entitled to seek an injunction restraining Sanders from the
conduct which would constitute a breach of this Agreement. Nothing herein contained shall be construed as prohibiting the Company from pursuing any other remedies available to it or them for such breach or threatened breach, including, without
limitation, specific performance and/or the recovery of damages from Sanders. 

  
 6 

 9. Reasonableness and Enforceability of Covenants. 

(a) The recitals to this Agreement are incorporated herein by this reference. The parties acknowledge and agree with such recitals, and
further agree that the value of the consideration paid by the Company in connection with the Contribution is substantial and that preservation of the confidential and proprietary information, goodwill, stable workforce, and client and customer
relations of the Company is a material part of the consideration being provided in connection with the Contribution. 
 (b) The parties
expressly agree that the character, duration and geographical scope of this Agreement are reasonable in light of the circumstances as they exist on the date upon which this Agreement has been executed, including, but not limited to, Sanders’
material economic interest in the Contribution, and Sanders’ position of confidence and trust as a stockholder of CFI. 
 (c) Sanders
acknowledges that, (i) in connection with the Contribution, the Company will be vested with the goodwill of, and will directly or indirectly carry on, the business of CC; (ii) the restrictive covenants and the other agreements contained
herein (collectively, the “Restrictive Covenants”) are an essential part of this Agreement and the contemplated Contribution; (iii) the contemplated Contribution is designed and intended to qualify as a sale (or other
disposition) by Sanders within the meaning of BPC Section 16601; and (iv) the covenants contained in this Agreement are intended to be and would be enforceable under BPC Section 16601. Sanders and the Company agree not to challenge
the enforceability of the covenants (and the limitations and qualifications included as part thereof) contained in this Agreement. 
 (d)
Sanders agrees to be bound by the Restrictive Covenants and the other agreements contained in this Agreement to the maximum extent permitted by Law, it being the intent and spirit of the parties that the Restrictive Covenants and the other
agreements contained herein shall be valid and enforceable in all respects, and, subject to the terms and conditions of, and limitations and qualifications included in, this Agreement. 

10. Acknowledgements. Sanders acknowledges that (i) his work for the Company will continue to give him access to the confidential affairs
and proprietary information of the Company; (ii) the agreements and covenants of Sanders contained in this Agreement are essential to the business and goodwill of the Company; and (iii) CFI would not have entered into the Contribution
Agreement or the Employment Agreement but for the covenants and agreements set forth herein. 
 11. Governing Law. This Agreement shall be governed
by and construed in accordance with the laws of the State of California applicable to agreements entered into and to be performed entirely within such state. 

  
 7 

 12. Notices. All notices, requests, demands and other communications required or permitted hereunder must
be made in writing and will be deemed to have been duly given and effective: (a) on the date of delivery, if delivered personally; (b) on the earlier of the fourth day after mailing or the date of the return receipt acknowledgment, if
mailed, postage prepaid, by certified or registered mail, return receipt requested; (c) on the date of transmission, if sent by facsimile; or (d) on the date of requested delivery if sent by a recognized overnight courier: 

 

			
	If to the Company:		 Colony Financial, Inc.
 2450 Broadway, 6th
Floor
 Santa Monica, CA 90404
 Attention: Chief Executive
Officer

		
	If to Sanders:		to the last address of Sanders in the Company’s records specifically identified for notices under this Agreement
		
	With a copy to:		 Willkie Farr & Gallagher LLP
 787 Seventh
Avenue
 New York, NY 10019
 Attention: Michael A. Katz and Adam
Turteltaub

 or to such other address as is provided by a party to the other from time to time. 

13. Survival. The representations, warranties and covenants of Sanders and the Company contained in this Agreement will survive any termination of
Sanders’ employment with the Company through the end of the Restricted Period. 
 14. Amendment; Waiver. No provision of this Agreement may be
amended, modified, waived or discharged unless such amendment, modification, waiver or discharge is agreed to in writing and signed by Sanders and CFI. No waiver by either party hereto at any time of any breach by the other party hereto of
compliance with any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 

15. Severability. Sanders acknowledges and agrees that (i) he has had an opportunity to seek advice of counsel in connection with this Agreement
and (ii) the Restrictive Covenants are reasonable in geographic and temporal scope and in all other respects. If any term or provision of this Agreement is determined to be invalid or unenforceable in a final court or arbitration proceeding,
(A) the remaining terms and provisions hereof shall be unimpaired and (B) to the extent permitted by applicable Law, the invalid or unenforceable term or provision shall be deemed replaced by a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision. 
 16. Arbitration. Except as
otherwise set forth in Section 8, any dispute or controversy arising under or in connection with this Agreement that cannot be mutually resolved by the parties hereto shall be settled exclusively by arbitration in New York, New York before a
panel of three neutral arbitrators, each of whom shall be selected jointly by the parties, or, if the parties cannot agree on the selection of the arbitrators, as selected by the American Arbitration Association. The commercial arbitration rules of
the American Arbitration Association (the “AAA Rules”) shall govern any arbitration between the parties, except that the following provisions are included in the parties’ agreement to arbitrate and override any contrary
provisions in the AAA Rules:     
 (a) The agreement to arbitrate and the rights of the parties
hereunder shall be governed by and construed in accordance with the laws of the State of California, without regard to conflict or choice of law rules; 

  
 8 

 (b) The California Arbitration Act shall govern the arbitration, the agreement to
arbitrate, and any proceedings to enforce, confirm, modify or vacate the award; 
 (c) The arbitrators shall apply California
law; 
 (d) Any petition or motion to modify or vacate the award shall be filed in a Superior Court in California (the
“Court”); 
 (e) The award shall be written, reasoned, and shall include findings of fact as to all factual
issues and conclusions of law as to all legal issues; 
 (f) Either party may seek a de novo review by the Court of the
conclusions of law included in the award and any petition or motion to enforce, confirm, modify or vacate the award; and 

(g) The arbitration shall be confidential. Judgment may be entered on the arbitrators’ award in any court having
jurisdiction. 
 The parties hereby agree that the arbitrators shall be empowered to enter an equitable decree mandating specific enforcement of the terms
of this Agreement. Each party shall bear its own legal fees and out-of-pocket expenses incurred in any arbitration hereunder and the parties shall share equally all expenses of the arbitrators; provided, that, the arbitrator shall have
the same authority to award reasonable attorneys’ fees to the prevailing party in any arbitration as part of the arbitrator’s award as would be the case had the dispute or controversy been argued before a court with competent jurisdiction.

 17. Effectiveness. This Agreement and the transactions contemplated herein shall be conditioned upon the closing of the transactions contemplated
by the Contribution Agreement. In the event that the Contribution Agreement terminates prior to the closing of the transactions contemplated thereby, this Agreement shall terminate automatically without any further action by any party and shall be
void ab initio. If the Contribution Agreement is amended or modified prior to the Effective Date in a manner that has the effect of reducing the Consideration (as defined in the Contribution Agreement) payable to CCH under the Contribution
Agreement, Sanders will have the option of terminating this Agreement during the two business days following such time as CFI notifies Sanders of the amendment or modification (which notice may be given either before or after the date of such
amendment or modification). The option to terminate this Agreement must be exercised by Sanders by written notice to CFI within such two (2) business day period, after which time the option to terminate will expire. 

[remainder of page intentionally left blank] 

  
 9 

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

			
	COLONY FINANCIAL, INC.
		
	By:		 /s/ Mark Hedstrom

	Name:		Mark Hedstrom
	Title:		Vice President
	
	EXECUTIVE
	
	 /s/ Ronald M. Sanders

	Ronald M. Sanders

 [Signature Page to Ronald M. Sanders Restrictive Covenant Agreement] 

  
 10 

 Exhibit 1 

California Labor Code Section 2870 

(a) Any provision in an employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his
or her employer shall not apply to an 
 invention that the employee developed entirely on his or her own time without using the employer’s equipment,
supplies, facilities, or trade secret information except for those inventions that either: 
 (1) Relate at the time of conception or
reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or 

(2) Result from any work performed by the employee for the employer. 

(b) To the extent a provision in an employment agreement purports to require an employee to assign an invention otherwise excluded from being required to be
assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable. 

  
 11

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