Document:

EX-10.1.A

 

Exhibit 10.1(a)

AMENDED AND RESTATED MANAGEMENT AGREEMENT

          This AMENDED AND RESTATED MANAGEMENT AGREEMENT is made as of July 11, 2006 (this “Agreement”)
by and between Crystal River Capital, Inc., a Maryland corporation (the “Company”) and Hyperion
Brookfield Crystal River Capital Advisors, LLC, a Delaware limited liability company (the
“Manager”).

WITNESSETH:

          WHEREAS, the Company desires to retain the Manager for the purpose of providing day-to-day
management and administrative services to the Company as described herein on the terms and
conditions hereinafter set forth;

          WHEREAS, the Manager is willing to render such services on the terms and conditions
hereinafter set forth;

          WHEREAS, the Company and the Manager entered into that certain Management Agreement, dated as
of March 15, 2005 (the “Original Management Agreement”); and

          WHEREAS, the Company and the Manager desire to amend and restate the terms of the Original
Management Agreement pursuant to this Agreement.

AGREEMENT

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

     1. Definitions.

          (a) “Affiliate” shall mean, with respect to any Person, any Person Controlling, Controlled by,
or under common Control with, such Person.

          (b) “Agreement” has the meaning assigned in the first paragraph.

          (c) “Bankruptcy” shall mean, with respect to any Person, (a) the filing by such Person of a
voluntary petition seeking liquidation, reorganization, arrangement or readjustment, in any form,
of its debts under Title 11 of the United States Code or any other federal, state or foreign
insolvency law, or such Person’s filing an answer consenting to or acquiescing in any such
petition, (b) the making by such Person of any assignment for the benefit of its creditors, (c) the
expiration of sixty days after the filing of an involuntary petition under Title 11 of the United
States Code, an application for the appointment of a receiver for a material portion of the assets
of such Person, or an involuntary petition seeking liquidation, reorganization, arrangement or
readjustment of its debts under any other federal, state or foreign insolvency law, provided that
the same shall not have been vacated, set aside or stayed within such sixty-day period or (d) the
entry against it of a final and nonappealable order for relief under any bankruptcy, insolvency or
similar law now or hereafter in effect.

 

 

          (d) “Board of Directors” means the Board of Directors of the Company.

          (e) “Brookfield Sub-Advisor” means Brookfield Crystal River Capital, L.P.

          (f) “Closing Date” means the date of this Agreement.

          (g) “Code” means the Internal Revenue Code of 1986, as amended.

          (h) “Common Stock” shall mean the common stock, par value $0.001 per share, of the Company.

          (i) “Company” has the meaning assigned in the first paragraph; provided that all
references herein to the Company shall, except as otherwise expressly provided herein, be deemed to
include the any Subsidiaries of Crystal River Capital, Inc.

          (j) “Company Account” has the meaning assigned in Section 5.

          (k) “Control” shall mean, the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of another Person without the consent or approval
of any other Person.

          (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

          (m) “Expenses” has the meaning assigned in Section 9.

          (n) “GAAP” means generally accepted accounting principles in effect in the U.S. on the date
such principles are applied consistently.

          (o) “Governing Instruments” means, with respect to any Person, the articles of incorporation
and bylaws in the case of a corporation, the certificate of limited partnership (if applicable) and
partnership agreement in the case of a general or limited partnership or the articles of formation
and operating agreement in the case of a limited liability company.

          (p) “Hyperion Brookfield” means Hyperion Brookfield Asset Management, Inc.

          (q) “Independent Directors” means the members of the Board of Directors who are not officers
or employees of the Company, the Manager or Hyperion Brookfield and who are otherwise “independent”
in accordance with the Company’s Governing Instruments and, at any time during which any securities
of the Company are listed on the New York Stock Exchange, the rules of the New York Stock Exchange
as may be in effect from time to time.

          (r) “Investment Company Act” means the Investment Company Act of 1940, as amended.

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          (s) “Investment Guidelines” means the general parameters and policies relating to Investments
as established by the Board of Directors as the same may be modified from time-to-time.

          (t) “Investment Strategy Committee” has the meaning assigned in Section 7(e).

          (u) “Investments” means the investments of the Company.

          (v) “Manager” has the meaning assigned in the first paragraph.

          (w) “Person” means any individual, corporation, partnership, joint venture, limited liability
company, estate, trust, unincorporated association, any federal, state, county or municipal
government or any bureau, department or agency thereof and any fiduciary acting in such capacity on
behalf of any of the foregoing.

          (x) “Registration Rights Agreement” means that certain registration rights agreement, dated as
of March 15, 2005, among the Company, the Manager, Deutsche Bank Securities Inc. (“Deutsche Bank”)
and Wachovia Capital Markets, LLC (“Wachovia”) and, together with Deutsche Bank, Wachovia and the
other initial purchasers/placement agents named in the Purchase/Placement Agreement (as defined
therein) (the “Initial Purchasers”) for whom Deutsche Bank and Wachovia are acting as
representatives (in such capacity, the “Representatives”) for the benefit of the Initial Purchasers
and the Holders (as defined therein).

          (y) “REIT” means a corporation or trust which qualifies as a real estate investment trust in
accordance with Sections 856 through 860 of the Code and the Treasury Regulation promulgated
thereunder.

          (z) “SOX” means the Sarbanes-Oxley Act of 2002, as amended.

          (aa) “Stockholders’ Equity” means, for any month, the sum of the net proceeds from any
issuance of the Company’s equity securities, after deducting any underwriting discounts and
commissions and other expenses and costs relating to the issuance, plus the Company’s retained
earnings at the end of such month (without taking into account any non-cash equity compensation
expense incurred in current or prior periods), which amount shall be reduced by any amount that the
Company pays for repurchases of its common stock.

          (bb) “Sub-Advisors” has the meaning assigned in Section 2(d).

          (cc) “Subsidiary” means any subsidiary of the Company, any partnership, the general partner of
which is the Company or any subsidiary of the Company and any limited liability company, the
managing member of which is the Company or any subsidiary of the Company.

          (dd) “Treasury Regulations” means the Procedures and Administration Regulations promulgated by
the U.S. Department of Treasury under the Code, as amended.

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     2. Appointment and Duties of Manager.

          (a) Appointment. The Company hereby appoints the Manager as its exclusive agent to manage,
operate and administer the assets, liabilities and business of the Company subject to the further
terms and conditions set forth in this Agreement, and the Manager hereby agrees to perform each of
the duties set forth herein in accordance with the provisions of this Agreement.

          (b) Duties. The Manager shall manage, operate and administer the Company’s day-to-day
operations, business and affairs, subject to the supervision of the Board of Directors, and shall
have such authority as the Company may delegate to it, including, without limitation, the authority
identified and delegated to the Manager herein. Without limiting the foregoing, the Manager shall
oversee and conduct the Company’s investment activities in accordance with the Investment
Guidelines and other policies adopted and implemented by the Board of Directors. Subject to the
foregoing, the Manager will perform (or cause to be performed) such services and activities
relating to the management, operation and administration of the assets, liabilities and business of
the Company as is appropriate, including:

               (i) serving as the Company’s consultant with respect to the periodic review of the investment
criteria and parameters for the Investments, borrowings and operations of the Company for the
approval of the Board of Directors;

               (ii) investigating, analyzing and selecting possible Investment opportunities and originating,
acquiring, financing, retaining, selling, negotiating for prepayment, restructuring or disposing
Company Investments consistent with the Investment Guidelines;

               (iii) with respect to any prospective Investment by the Company and any sale, exchange or
other disposition of any Investment by the Company, conducting negotiations on the Company’s behalf
with sellers and purchasers and their respective agents, representatives and investment bankers;

               (iv) engaging and supervising, on the Company’s behalf and at the Company’s expense,
independent contractors who provide investment banking, mortgage brokerage, securities brokerage
and other financial services and such other services as may be required relating to the
Investments;

               (v) coordinating and managing operations of any joint venture or co-investment interests held
by the Company and conducting all matters with any joint venture or co-investment partners;

               (vi) providing executive and administrative personnel, office space and office services
required in rendering services to the Company;

               (vii) administering the Company’s day-to-day operations and performing and supervising the
performance of such other administrative functions necessary to the Company’s management as may be
agreed upon by the Manager and the Board of Directors,

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including the collection of revenues and the payment of the Company’s debts and obligations
and maintenance of appropriate computer services to perform such administrative functions;

               (viii) communicating on the Company’s behalf with the holders of any of the Company’s equity
or debt securities as required to satisfy the reporting and other requirements of any governmental
bodies or agencies or trading markets and to maintain effective relations with such holders;

               (ix) counseling the Company in connection with policy decisions to be made by the Board of
Directors;

               (x) evaluating and recommending to the Board of Directors hedging strategies and engaging in
hedging activities on the Company’s behalf, consistent with the Company’s qualification as a REIT
and with the Investment Guidelines;

               (xi) counseling the Company regarding the maintenance of the Company’s qualification for
taxation as a REIT and monitoring compliance with the various REIT qualification tests and other
rules set out in the Code and Treasury Regulations thereunder and using commercially reasonable
efforts to cause the Company to qualify for taxation as a REIT;

               (xii) counseling the Company regarding the maintenance of the Company’s exemption from
regulation as an investment company under the Investment Company Act and monitoring compliance with
the requirements for maintaining such exemption and using commercially reasonable efforts to cause
the Company to maintain such exemption from regulation as an investment company under the
Investment Company Act;

               (xiii) assisting the Company in developing criteria for asset purchase commitments that are
specifically tailored to the Company’s investment objectives and making available to the Company
its knowledge and experience with respect to mortgage loans, real estate, real estate-related
securities, other real estate-related assets and non-real estate-related assets;

               (xiv) furnishing reports and statistical and economic research to the Company regarding the
Company’s activities and services performed for the Company by the Manager;

               (xv) monitoring the operating performance of the Investments and providing periodic reports
with respect thereto to the Board of Directors, including comparative information with respect to
such operating performance and budgeted or projected operating results;

               (xvi) investing or reinvesting any money or securities of the Company (including investing in
short-term Investments pending investment in other Investments, payment of fees, costs and
expenses, or payments of dividends or distributions to the Company’s stockholders), and advising
the Company as to the Company’s capital structure and capital raising;

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               (xvii) causing the Company to retain a qualified independent public accounting firm and legal
counsel, as applicable, to assist in developing appropriate accounting procedures, compliance
procedures and testing systems with respect to financial reporting obligations and compliance with
the provisions of the Code applicable to REITs and causing the Company to conduct quarterly
compliance reviews with respect thereto;

               (xviii) causing the Company to qualify to do business in all applicable jurisdictions and to
obtain and maintain all appropriate licenses;

               (xix) assisting the Company in complying with all regulatory requirements applicable to the
Company in respect of the Company’s business activities, including preparing or causing to be
prepared all financial statements required under applicable regulations and contractual
undertakings and all reports and documents, if any, required under the Exchange Act;

               (xx) taking all necessary actions to enable the Company to make required tax filings and
reports, including soliciting stockholders for required information to the extent provided by the
provisions of the Code and Treasury Regulations applicable to REITs;

               (xxi) handling and resolving all claims, disputes or controversies (including all litigation,
arbitration, settlement or other proceedings or negotiations) in which the Company may be involved
or to which the Company may be subject arising out of the Company’s day-to-day operations, subject
to such limitations or parameters as may be imposed from time to time by the Board of Directors;

               (xxii) using commercially reasonable efforts to cause expenses incurred by or on behalf of the
Company to be commercially reasonable or commercially customary and within any budgeted parameters
or expense guidelines set by the Board of Directors from time to time;

               (xxiii) obtaining appropriate warehouse and similar credit facilities or other financings for
the Investments consistent with the Investment Guidelines;

               (xxiv) advising the Company with respect to and structuring long-term financing vehicles for
the Company’s portfolio of assets, and offering and selling securities publicly or privately in
connection with any such structured financing;

               (xxv) performing such other services as may be required from time to time for management and
other activities relating to the Company’s assets as the Board of Directors shall reasonably
request or the Manager shall deem appropriate under the particular circumstances; and

               (xxvi) using commercially reasonable efforts to cause the Company to comply with all
applicable laws.

          (c) Sub-Advisory Agreements. Contemporaneously with the execution of the Original Management
Agreement, the Company and the Manager entered into a sub-advisory agreement with Ranieri & Co.,
and contemporaneously with the execution of this Agreement, the

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Company and the Manager are entering into a sub-advisory agreement with Brookfield Sub-Advisor
(together with Ranieri & Co., the “Sub-Advisors”) pursuant to which the Sub-Advisors will, subject
to the direction and control of the Company and the Manager, provide advisory services to the
Company and provide advisory services to the Manager in connection with its service to the Company
hereunder.

          (d) Service Providers. The Manager may engage other Persons, including its Affiliates, any of
the Sub-Advisors and/or any Affiliates of any Sub-Advisor, for and on behalf, and at the sole cost
and expense, of the Company to provide services to the Company and its Subsidiaries, including
asset management, property management, leasing, financing, disposition and/or similar services
customarily provided in connection with the management, operation and administration of a business
similar to the business of the Company, provided that such services are provided at market rates,
with standard market terms and, in the case of an Affiliate of the Manager, any Sub-Advisor or
Affiliates of any Sub-Advisor, (A) the Person providing the services has sufficient qualifications
and experience to perform the services at a level of quality comparable to non-Affiliated service
providers in the area, (B) the cost to the Manager is no less favorable than can be obtained from
an unrelated third party on an arm’s length basis and (C) any such arrangements are approved by a
majority of the Independent Directors.

          (e) Reporting Requirements.

               (i) As frequently as the Manager may deem necessary or advisable, or at the direction of the
Board of Directors, the Manager shall prepare, or cause to be prepared, with respect to any
Investment (A) reports and information on the Company’s operations and asset performance and (B)
other information reasonably requested by the Company.

               (ii) The Manager shall prepare, or cause to be prepared, all reports, financial or otherwise,
with respect to the Company reasonably required by the Board of Directors in order for the Company
to comply with its Governing Instruments or any other materials required to be filed with any
governmental entity or agency, and shall prepare, or cause to be prepared, all materials and data
necessary to complete such reports and other materials including, without limitation, an annual
audit of the Company’s books of account by a nationally recognized independent accounting firm of
good reputation, initially Ernst & Young LLP.

               (iii) The Manager shall prepare regular reports for the Board of Directors to enable the Board
of Directors to review the Company’s acquisitions, portfolio composition and characteristics,
credit quality, performance and compliance with the Investment Guidelines and policies approved by
the Board of Directors.

          (f) Use of the Manager’s Funds. The Manager shall not be required to expend money in excess
of that contained in any applicable Company Account or otherwise made available by the Company to
be expended by the Manager hereunder.

          (g) Reliance by Manager. In performing its duties under this Section 2, the Manager shall be
entitled to rely on qualified experts and professionals (including, without limitation,
accountants, legal counsel and other professional service providers) hired by the Manager at the
Company’s sole cost and expense.

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          (h) Payment and Reimbursement of Expenses. The Company shall pay all expenses, and reimburse
the Manager for the Manager’s expenses incurred on its behalf, in connection with any such services
to the extent such expenses are reimbursable by the Company to the Manager pursuant to Section 9.

     3. Dedication; Other Activities.

          (a) Devotion of Time. The Manager will provide a dedicated management team (including,
without limitation, a chief executive officer, president, chief investment officer, chief financial
officer and executive vice president) to deliver the management services to the Company hereunder,
with the members of such management team devoting such of their time to the management of the
Company as the Manager deems reasonably necessary and appropriate for the proper performance of all
of the Manager’s duties hereunder, commensurate with the level of activity of the Company from time
to time. The Company shall have the benefit of the Manager’s reasonable judgment and effort in
rendering services and, in furtherance of the foregoing, the Manager shall not undertake activities
which, in its reasonable judgment, will substantially adversely affect the performance of its
obligations under this Agreement.

          (b) Other Activities. Except to the extent set forth in clause (a) above, nothing herein
shall prevent the Manager or any of its Affiliates or any of the officers and employees of any of
the foregoing from engaging in other businesses or from rendering services of any kind to any other
Person, including investment in, or advisory services to others investing in, any type of real
estate, real estate related investment or non-real estate related investment, including investments
which meet the principal investment objectives of the Company.

          (c) Officers, Employees, Etc. The Manager’s or its Affiliates’ members, partners, officers,
employees and agents may serve as directors, officers, employees, agents, nominees or signatories
for the Company or any Subsidiary, to the extent permitted by their Governing Instruments, as may
be amended from time to time, or by any resolutions duly adopted by the Board of Directors pursuant
to the Company’s Governing Instruments. When executing documents or otherwise acting in such
capacities for the Company or such other Subsidiary, such Persons shall use their respective titles
with respect to the Company or such Subsidiary.

     4. Agency; Authority.

          (a) The Manager shall act as the agent of the Company in originating, acquiring, financing and
disposing of Investments, disbursing and collecting the Company’s funds, paying the debts and
fulfilling the obligations of the Company, supervising the performance of professionals engaged by
or on behalf of the Company and handling, prosecuting and settling any claims of or against the
Company, the Board of Directors, holders of the Company’s securities or the Company’s
representatives or assets.

          (b) In performing the services set forth in this Agreement, as an agent of the Company, the
Manager shall have the right to exercise all powers and authority which are reasonably necessary
and customary to perform its obligations under this Agreement, including

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the following powers, subject in each case to the terms and conditions of this Agreement,
including, without limitation, the Investment Guidelines:

               (i) to purchase, exchange or otherwise acquire and to sell, exchange or otherwise dispose of,
any Investment at public or private sale;

               (ii) to borrow and, for the purpose of securing the repayment thereof, to pledge, mortgage or
otherwise encumber Investments;

               (iii) to purchase, take and hold Investments subject to mortgages or other liens;

               (iv) to extend the time of payment of any liens or encumbrances which may at any time be
encumbrances upon any Investment, irrespective of by whom the same were made;

               (v) to foreclose, to reduce the rate of interest on, and to consent to the modification and
extension of the maturity of any Investments, or to accept a deed in lieu of foreclosure;

               (vi) to join in a voluntary partition of any Investment;

               (vii) to cause to be demolished any structures on any real estate Investment;

               (viii) to cause renovations and capital improvements to be made to any real estate Investment;

               (ix) to abandon any real estate Investment deemed to be worthless;

               (x) to enter into joint ventures or otherwise participate in investment vehicles investing in
Investments;

               (xi) to cause any real estate Investment to be leased, operated, developed, constructed or
exploited;

               (xii) to obtain and maintain insurance in such amounts and against such risks as are prudent
in accordance with customary and sound business practices in the appropriate geographic area;

               (xiii) to cause any property to be maintained in good state of repair and upkeep; and to pay
the taxes, upkeep, repairs, carrying charges, maintenance and premiums for insurance;

               (xiv) to use the personnel and resources of its Affiliates in performing the services
specified in this Agreement;

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               (xv) to hire service providers subject to and in accordance with Section 2(e);

               (xvi) to designate and engage all professionals and consultants to perform services (directly
or indirectly) on behalf of the Company or the Company’s Affiliates, including, without limitation,
accountants, legal counsel and engineers; and

               (xvii) to take any and all other actions as are necessary or appropriate in connection with
the Company’s Investments.

          (c) The Manager shall be authorized to represent to third parties that it has the power to
perform the actions which it is authorized to perform under this Agreement.

          (d) The Company does hereby constitute and appoint the Manager, and any officer of the Manager
acting on its behalf from time to time, as the Company’s true and lawful representative and
attorney-in-fact, in its name, place and stead to make, execute, sign, deliver and file any
agreements, contracts, instruments, certificates or documents authorized by the Manager pursuant to
this Section 4. This power of attorney is deemed to be coupled with an interest.

     5. Bank Accounts. At the direction of the Board of Directors, the Manager may establish and
maintain as an agent on behalf of the Company one or more bank accounts in the name of the Company
or any other Subsidiary (any such account, a “Company Account”), collect and deposit funds into any
such Company Account and disburse funds from any such Company Account, under such terms and
conditions as the Board of Directors may approve. The Manager shall from time-to-time render
appropriate accountings of such collections and payments to the Board of Directors and, upon
request, to the auditors of Company.

     6. Book and Records; Confidentiality.

          (a) Records. The Manager shall maintain appropriate books of account, records data and files
(including without limitation, computerized material) (collectively, “Records”) relating to the
Company and the Investments generated or obtained by the Manager in performing its obligations
under this Agreement, and such Records shall be accessible for inspection by representatives of the
Company at any time during normal business hours. The Manager shall have full responsibility for
the maintenance, care and safekeeping of all Records.

          (b) Confidentiality. The Manager shall keep confidential any nonpublic information obtained
in connection with the services rendered under this Agreement and shall not disclose any such
information (or use the same except in furtherance of its duties under this Agreement), except: (i)
to Hyperion Brookfield; (ii) in accordance with the Sub-Advisory Agreements; (iii) with the prior
written consent of the Board of Directors; (iv) to legal counsel, accountants and other
professional advisors; (v) to appraisers, financing sources and others in the ordinary course of
the Company’s business; (vi) to governmental officials having jurisdiction over the Company; (vii)
in connection with any governmental or regulatory filings of the Company or disclosure or
presentations to Company investors; or (viii) as required by law or legal process to which the
Manager or any Person to whom disclosure is permitted hereunder is a party. The foregoing shall not
apply to information which has previously become available

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through the actions of a Person other than the Manager not resulting from Manager’s violation
of this Section 6(b). The provisions of this Section 6(b) shall survive the expiration or earlier
termination of this Agreement for a period of one year.

     7. Obligations of Manager; Restrictions.

          (a) Internal Control. The Manager shall (i) establish and maintain (and require property
managers and other contractors to establish and maintain) a system of internal accounting and
financial controls (including, without limitation, internal controls to safeguard records and to
permit the Company to comply with the Exchange Act and SOX) designed to provide reasonable
assurance of the reliability of financial reporting, the effectiveness and efficiency of operations
and compliance with applicable laws, (ii) maintain records for each Company Investment on a GAAP
basis, (iii) develop accounting entries and reports required by the Company to meet its reporting
requirements under applicable laws, (iv) consult with the Company with respect to proposed or new
accounting/reporting rules identified by the Manager or the Company and (v) prepare quarterly and
annual financial statements as soon after the end of each such period as may be reasonably
requested and general ledger journal entries and other information necessary for the Company’s
compliance with applicable laws, including the Exchange Act, Regulation S-X and SOX, in accordance
with GAAP and cooperate with the Company’s independent accounting firm in connection with the
auditing or review of such financial statements, the cost of any such audit or review to be paid by
the Company.

          (b) Management Letters. The Manager shall provide to the Company as soon after the end of
each quarter or year as may be reasonably requested (within deadlines required for the Company to
comply with applicable legal requirements) by the Company, a completed management questionnaire
letter to the Board of Directors, in such form as the Company may reasonably request in response to
applicable legal requirements, on accounting, reporting, internal controls and disclosure issues in
support of any management representation letter to be issued by the Company to its independent
accounting firm.

          (c) Restrictions. The Manager shall refrain from any action that, in its sole judgment made
in good faith, (i) is not in compliance with the Investment Guidelines, (ii) would adversely affect
the status of the Company as a REIT or its exclusion from status as an investment company under the
Investment Company Act, or (iii) would violate any law, rule or regulation of any governmental body
or agency having jurisdiction over the Company or that would otherwise not be permitted by the
Company’s Governing Instruments. If the Manager is ordered to take any such action by the Board of
Directors, the Manager shall promptly notify the Board of Directors of the Manager’s judgment that
such action would adversely affect such status or violate any such law, rule or regulation or
Governing Instruments. Notwithstanding the foregoing, the Manager, its directors, managers,
officers, members and employees shall not be liable to the Company, the Board of Directors or the
Company’s stockholders for any act or omission by the Manager, its directors, managers, officers,
members or employees taken in good faith or except as provided in Section 11.

          (d) Board of Directors Review and Approval. The Board of Directors will periodically review
the Investment Guidelines and the Company’s portfolio of Investments but will not review each
proposed Investment. The Manager shall not consummate on behalf of the

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Company any transaction that would involve the acquisition of any Investment from, the sale of
any Investment to, the making of any co-investment with any proprietary account of Hyperion
Brookfield, Brookfield Asset Management Inc. or any of their respective Affiliates (any of the
foregoing, a “Related Person”) or any account advised by any Related Person, or borrow funds from
or lend funds to any Related Person or invest in any investment vehicle advised by any Related
Person unless (A) such transaction is on terms no less favorable than can be obtained on an arm’s
length basis from unrelated third parties based on any of (i) prevailing market prices, (ii) other
reliable indicators of fair market value or (iii) an independent valuation or appraisal and (B) in
any case, has been approved in advance by a majority of the Independent Directors.

          (e) Investment Strategy Committee. The Manager shall form an investment strategy committee
(the “Investment Strategy Committee”) consisting of four members, each of whom shall be designated
by the Manager and shall serve for an indefinite term. The Manager may, in its sole discretion, at
any time remove and replace any Investment Strategy Committee member. The initial members of the
Investment Strategy Committee shall be Lewis Ranieri, who will also serve as initial chairman of
the committee, Clifford Lai, John Dolan and Bruce Robertson. The Investment Strategy Committee
shall advise and consult with the Manager with respect to the Company’s investment policies,
investment portfolio holdings, financing and leveraging strategies and the Investment Guidelines.
The Investment Strategy Committee shall meet as regularly as necessary to perform its duties, as
determined by the Investment Strategy Committee in its sole discretion.

          (f) Insurance. The Manager shall maintain “errors and omissions” insurance coverage and
such other insurance coverage which is customarily carried by property, asset and investment
managers performing functions similar to those of the Manager under this Agreement with respect to
assets similar to the assets of the Company, in an amount which is comparable to that customarily
maintained by other managers or servicers of similar assets.

          (g) Tax Filings. The Manager shall (i) assemble, maintain and provide to the firm designated
by the Company to prepare tax returns on behalf of the Company and its subsidiaries (the “Tax
Preparer”) information and data required for the preparation of federal, state, local and foreign
tax returns, any audits, examinations or administrative or legal proceedings related thereto or any
contractual tax indemnity rights or obligations of the Company and its subsidiaries and supervise
the preparation and filing of such tax returns, the conduct of such audits, examinations or
proceedings and the prosecution or defense of such rights, (ii) provide factual data reasonably
requested by the Tax Preparer or the Company with respect to tax matters, (iii) assemble, record,
organize and report to the Company data and information with respect to the Investments relative to
taxes and tax returns in such form as may be reasonably requested by the Company, (iv) supervise
the Tax Preparer in connection with the preparation, filing or delivery to appropriate persons, of
applicable tax information reporting forms with respect to the Investments and transactions
involving the real estate (including, without limitation, information reporting forms, whether on
Form 1099 or otherwise with respect to sales, interest received, interest paid, partnership reports
and other relevant transactions); it being understood that, in the context of the foregoing, the
Company shall rely on its own tax advisers in the preparation of its tax returns and the conduct of
any audits, examinations or administrative or legal proceedings related thereto and that, without
limiting the Manager’s obligation to provide the information, data, reports and other supervision
and assistance provided

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herein, the Manager will not be responsible for the preparation of such returns or the conduct
of such audits, examinations or other proceedings.

     8. Compensation.

          (a) The Company shall pay the Manager an annual base management fee equal to 1.50% of
Stockholders’ Equity. The annual management fee shall be calculated on a weighted average basis and
paid in cash monthly in arrears. The Manager shall make available the monthly calculation of the
base management fee to the Company within fifteen days following the last day of each calendar
month, and the Company shall pay Manager the base annual management fee for such month within 20
business days thereafter; provided, however, that such management fee may be offset
by the Manager against amounts due to the Company. The foregoing calculation of the base
management fee will be adjusted to exclude one-time events pursuant to changes in GAAP, as well as
non-cash charges after discussion between the Manager and the Independent Directors and approval by
a majority of the Independent Directors in the case of non-cash charges. In the event that the
Company invests in any collateralized debt obligation or investment fund managed by Hyperion
Brookfield and structured or co-structured on the Company’s behalf, the annual base management fee
payable by the Company to the Manager will be reduced by an amount equal to the portion of the
management fee payable to Hyperion Brookfield that is allocable to the Company’s investment in such
collateralized debt obligation or investment fund.

          (b) In addition to the base management fee, the Manager shall receive a quarterly incentive
management fee in an amount equal to the product of: (i) 25% of the dollar amount by which (A) the
Company’s net income (determined in accordance with GAAP), before non-cash equity compensation
expense and the incentive management fee, for the applicable quarter per share of Company common
stock (based on the weighted average number of shares of Company common stock outstanding for such
quarter) exceeds (B) an amount equal to (1) the weighted average of the price per share of the
shares of Company common stock in the initial offering of Company common stock and the prices per
share of Company common stock in any subsequent offerings by the Company, in each case at the time
of issuance thereof, multiplied by (2) the greater of (x) 2.4375% and (y) 25% of the sum of the
then-applicable 10 year U.S. Treasury note rate and 0.50%, and (ii) the weighted average number of
shares of Company common stock outstanding during such quarter; provided that the foregoing
calculation of incentive compensation shall be adjusted to exclude one-time events pursuant to
changes in GAAP, as well as non-cash charges after discussion between the Manager and the
Independent Directors and approval by a majority of the Independent Directors in the case of
non-cash charges.

          The Manager will compute the quarterly incentive management fee within 30 days after the end
of each fiscal quarter, and the Company will pay the quarterly incentive management fee with
respect to each fiscal quarter within five business days following the delivery to the Company of
the Manager’s written statement setting forth the computation of the incentive management fee for
such quarter. Ten percent (10%) of the incentive management fee payable to the Manager hereunder
will be paid by the Company in shares of Common Stock (provided that the Manager may not receive
payment of such incentive management fee in shares

13

 

of Common Stock if such payment would result in the Manager owning directly or indirectly
through one or more of its subsidiaries more than 9.8% of the outstanding Common Stock) and the
balance thereof in cash. The Manager may, in its sole discretion, elect to receive a greater
percentage of its incentive compensation in the form of Common Stock. Notwithstanding the
foregoing, the Manager may not elect to receive shares of Common Stock as payment of its incentive
compensation, except in accordance with all applicable securities exchange rules and securities
laws (including prohibitions on insider trading).

          The number of shares of Common Stock to be received by the Manager will be based on the fair
market value of such shares. Shares of Common Stock delivered as payment of the incentive
management fee will be immediately vested or exercisable; provided that the Manager agrees
not to sell such shares prior to one year after the date such shares are paid. Such transfer
restriction will immediately terminate if this Agreement is terminated for any reason. The Manager
may, in its sole discretion, allocate the shares of Common Stock received by the Manager as
incentive management fees for direct issuance or transfer to the Manager’s officers, employees and
other individuals who provide services to it and the Company agrees to issue or permit the transfer
of such shares of Common Stock in accordance with the Manager’s instructions, provided that such
shares shall remain subject to the foregoing one year lock up agreement.

          (c) Upon execution of the Original Management Agreement, the Company granted to the Manager
84,000 shares of restricted Common Stock and options to purchase 126,000 shares of Common Stock
with an exercise price equal to $25.00, representing in the aggregate approximately 1.50% of the
shares of Common Stock outstanding following the completion of the Company’s initial private
offering of Common Stock on a fully-diluted basis after giving effect to the issuance of the Common
Stock underlying the foregoing options. Such shares of restricted Common Stock and options to
purchase Common Stock vest or become exercisable in three equal annual installments beginning on
the first anniversary of the date hereof. The Manager may, in its sole discretion, allocate such
shares of Common Stock and options to purchase Common Stock for direct issuance or transfer to the
Manager’s officers, employees and other individuals who provide services to it and the Company
agrees to issue or permit the transfer of such shares of Common Stock or options to purchase Common
Stock in accordance with the Manager’s instructions, provided that such shares or options shall
remain subject to the foregoing vesting restrictions and the terms and conditions of any long-term
incentive plan and related award agreement pursuant to which they are to be or were issued.

     9. Expenses. The Company shall bear all of its operating expenses, except those
specifically required to be borne by the Manager under this Agreement. The expenses required to be
borne by the Company include, but are not limited to:

          (a) issuance and transaction costs incident to the acquisition, disposition and financing of
Investments;

          (b) legal, regulatory, compliance, tax, accounting, consulting, auditing and administrative
fees and expenses;

14

 

          (c) the compensation and expenses of the Company’s directors and the cost of liability
insurance to indemnify the Company’s directors and officers;

          (d) the costs associated with the establishment and maintenance of any credit facilities and
other indebtedness of the Company (including commitment fees, accounting fees, legal fees, closing
costs, etc.);

          (e) expenses associated with other securities offerings of the Company;

          (f) expenses relating to the payment of dividends;

          (g) expenses connected with communications to holders of the Company’s securities and in
complying with the continuous reporting and other requirements of the Securities and Exchange
Commission and other governmental bodies;

          (h) transfer agent and exchange listing fees;

          (i) the costs of printing and mailing proxies and reports to the Company’s stockholders;

          (j) costs associated with any computer software or hardware, electronic equipment, or
purchased information technology services from third party vendors that is used solely for the
Company;

          (k) costs and out of pocket expenses incurred by directors, officers, employees or other
agents of the Manager for travel on the Company’s behalf;

          (l) the costs and expenses incurred with respect to market information systems and
publications, research publications and materials;

          (m) settlement, clearing, and custodial fees and expenses;

          (n) the costs of maintaining compliance with all federal, state and local rules and
regulations, including securities regulations, or any other regulatory agency, all taxes and
license fees and all insurance costs incurred on the Company’s behalf; and

          (o) expenses relating to any office or office facilities, including disaster backup recovery
sites and facilities maintained for the Company or separate from offices of the Manager.

     In addition, the Company will be required to pay its pro rata portion of rent, telephone,
utilities, office furniture, equipment, machinery and other office, internal and overhead expenses
of the Manager and its Affiliates required for the Company’s operations.

     The Manager is not entitled to be reimbursed for wages, salaries and benefits of its officers
and employees. Subject to any required Board of Directors approval and the provisions of Section
2(e), the Manager may retain third parties including accountants, legal counsel, real estate
underwriters, brokers, among others, on the Company’s behalf, and be reimbursed for such

15

 

services. The provisions of this Section 9 shall survive the expiration or earlier termination of
this Agreement to the extent such expenses have previously been incurred or are incurred in
connection with such expiration or termination.

     10. Expense Reports and Reimbursements. The Manager shall prepare a statement documenting
the operating expenses of the Company incurred during each fiscal quarter, and deliver the same to
the Company within 45 days following the end of the applicable fiscal quarter. Such expenses
incurred by the Manager on behalf of the Company shall be reimbursed by the Company within 45 days
following delivery of the expense statement by the Manager; provided, however, that
such reimbursements may be offset by the Manager against amounts due to the Company from the
Manager. The provisions of this Section 10 shall survive the expiration or earlier termination of
this Agreement.

     11. Limits of Manager Responsibility; Indemnification.

          (a) Pursuant to this Agreement, the Manager will not assume any responsibility other than to
render the services called for hereunder and will not be responsible for any action of the Board of
Directors in following or declining to follow its advice or recommendations. The Manager, its
directors, officers, managers, Investment Strategy Committee members and employees will not be
liable to the Company, any Subsidiary, any of their directors, officers, stockholders, managers,
owners or partners for acts or omissions performed or not performed in accordance with and pursuant
to this Agreement, except by reason of acts or omissions constituting bad faith, willful
misconduct, gross negligence or reckless disregard of the Manager’s duties under this Agreement.

          (b) The Company hereby agrees to indemnify, defend and hold harmless the Manager and its
Affiliates, officers, directors, members, managers, Investment Strategy Committee members,
employees, agents, successors and assigns from and against all liabilities, judgments, costs,
charges, losses, expenses and claims, including attorneys’ fees, charges and expenses and expert
witness fees, of any nature, kind or description, arising out of claims by third parties based on
acts or omissions of the Manager performed or not performed in accordance with and pursuant to this
Agreement, except (i) to the extent caused by or resulting from acts or omissions constituting bad
faith, willful misconduct, gross negligence or reckless disregard of the Manager’s duties under
this Agreement, as determined pursuant to a final, non-appealable order of a court of competent
jurisdiction or (ii) claims by the Manager’s employees relating to the terms and conditions of
their employment with the Manager.

          (c) The Manager hereby agrees to indemnify the Company and its directors and officers with
respect to all liabilities, judgments, costs, charges, losses, expenses and claims, including
attorney’s fees, charges and expenses and expert witness fees, of any nature, kind or description,
arising out of (i) claims by third parties based on acts or omissions of the Manager performed or
not performed in accordance with and pursuant to this Agreement constituting bad faith, willful
misconduct, gross negligence or reckless disregard of the Manager’s duties under this Agreement, as
determined pursuant to a final, non-appealable order of a court of competent jurisdiction or (ii)
claims by the Manager’s employees relating to the terms and conditions of their employment with the
Manager.

16

 

          (d) The party seeking indemnity (“Indemnitee”) will promptly notify the party against whom
indemnity is claimed (“Indemnitor”) of any claim for which it seeks indemnification; provided,
however, that the failure to so notify the Indemnitor will not relieve Indemnitor from any
liability which it may have hereunder, except to the extent such failure actually prejudices
Indemnitor. The Indemnitor shall have the right to assume the defense and settlement of such
claim; provided that, Indemnitor notifies Indemnitee of its election to assume such defense and
settlement within thirty (30) days after the Indemnitee gives the Indemnitor notice of the claim.
In such case the Indemnitee will not settle or compromise such claim, and the Indemnitor will not
be liable for any such settlement made without its prior written consent. If Indemnitor is
entitled to, and does, assume such defense by delivering the aforementioned notice to Indemnitee,
Indemnitee will (i) have the right to approve Indemnitor’s counsel (which approval will not be
unreasonably withheld or delayed), (ii) be obligated to cooperate in furnishing evidence and
testimony and in any other manner in which Indemnitor may reasonably request and (iii) be entitled
to participate in (but not control) the defense of any such action, with its own counsel and at its
own expense.

          (e) Reasonable expenses (including attorney’s fees) incurred by an Indemnitee in defense or
settlement of a claim that may be subject to a right of indemnification hereunder may be advanced
by the Company to such Indemnitee as such expenses are incurred prior to the final disposition of
such claim; provided that, Indemnitee undertakes to repay such amounts if its shall be determined
ultimately by a court of competent jurisdiction that Indemnitee was not entitled to be indemnified
hereunder.

          (f) The Manager shall remain entitled to exculpation and indemnification from the Company
pursuant to this Section 11 (subject to the limitations set forth herein) with respect to any
matter arising prior to the termination of this Agreement and shall have no liability to the
Company in respect of any matter arising after such termination unless such matter arose out of
events or circumstances that occurred prior to such termination.

     12. No Joint Venture. Nothing in this Agreement shall be construed to make the Company and
the Manager partners or joint venturers or impose any liability as such on either of them.

     13. Term; Termination.

          (a) Term. This Agreement shall remain in full force through December 31, 2008, unless
terminated by the Company or Manager as set forth below, and shall be renewed automatically for
successive one year periods thereafter, until this Agreement is terminated in accordance with the
terms hereof.

          (b) Non-Renewal. Either party may elect not to renew this Agreement at the expiration of
the initial term or any renewal term for any or no reason by notice to the other party at least six
(6) months prior to the end of the term.

          (c) Termination by the Company for Cause. The Company may terminate this Agreement
effective 30 days after notice of termination from the Company to the Manager in the event that any
of the following occur: (i) the Manager commits any act of gross negligence

17

 

in the performance of its duties under this Agreement, (ii) the Manager commits any act of
fraud, misappropriation of funds, or embezzlement against the Company, (iii) the Manager, in its
corporate capacity (as distinguished from the acts of any employees of the Manager which are taken
without the complicity of any of the executive officers of the Manager), commits any other willful
and material violation of this Agreement and such willful and material violation continues for a
period of 30 days after written notice thereof specifying such violation and requesting that the
same be remedied in such 30 day period, (iv) neither Hyperion Brookfield nor Brookfield Asset
Management, Inc., or any successor thereof, Controls the Manager; (v) the Bankruptcy of the Manager
or (vi) the dissolution of the Manager.

          (d) Termination by the Company without Cause. After the initial term of this Agreement
expiring on December 31, 2008, the Independent Directors will review the Manager’s performance
annually and this Agreement may be terminated upon the affirmative vote of at least two-thirds of
the Independent Directors, or by the affirmative vote of the holders of at least a majority of the
outstanding shares of the Company’s common stock, based upon unsatisfactory performance by the
Manager that is materially detrimental to the Company or a determination by the Independent
Directors that the management fees payable to the Manager hereunder are not fair, subject to the
Manager’s right to prevent such a compensation termination by accepting a mutually acceptable
reduction of such management fees. The Board of Directors must provide at least 180 days’ prior
notice of any such termination to the Manager. Upon a termination of this Agreement pursuant to
this Section 13(d), the Company will pay the Manager a termination fee equal to the amount of two times
the sum of the average annual base management fee and the average annual incentive compensation
earned by the Manager during the two 12-month periods immediately preceding the date of
termination, calculated as of the end of the most recently completed fiscal quarter prior to the
date of termination.

          (e) Termination by Manager. The Manager may terminate this Agreement effective upon 30 days
prior written notice of termination to the Company in the event that the Company shall default in
the performance or observance of any material term, condition or covenant in this Agreement and
such default shall continue for a period of 30 days after written notice thereof specifying such
default and requesting that the same be remedied in such 30 day period. The Manager may terminate
this Agreement in the event that the Company becomes regulated as an investment company under the
Investment Company Act, with such termination deemed to occur immediately prior to such event.

          (f) Survival. If this Agreement is terminated pursuant to this Section 13, such termination
shall be without any further liability or obligation of either party to the other, except as
otherwise expressly provided herein.

     14. Action Upon Termination or Expiration of Origination Period. From and after the
effective date of termination of this Agreement pursuant to Section 13 herein, the Manager shall
not be entitled to compensation for further services under this Agreement but shall be paid all
compensation accruing to the date of termination, reimbursement for all Expenses and a termination
fee, if applicable. Upon such termination or expiration, the Manager shall reasonably promptly:

18

 

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

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

          (c) deliver to the Board of Directors all property and documents of the Company provided to or
obtained by the Manager pursuant to or in connection with this Agreement, including all copies and
extracts thereof in whatever form, then in the Manager’s possession or under its control.

     15. Assignment. The Manager may not assign its duties under this Agreement.

     16. Release of Money or other Property Upon Written Request. The Manager agrees that any
money or other property of the Company held by the Manager under this Agreement shall be held by
the Manager as custodian for the Company, and the Manager’s records shall be clearly and
appropriately marked to reflect the ownership of such money or other property by the Company. Upon
the receipt by the Manager of a written request signed by a duly authorized officer of the Company
requesting the Manager to release to the Company any money or other property then held by the
Manager for the account of the Company under this Agreement, the Manager shall release such money
or other property to the Company within a reasonable period of time, but in no event later than
thirty (30) days following such request. The Manager, its directors, officers, managers and
employees will not be liable to the Company, any Subsidiary, the Manager any of their directors,
officers, stockholders, managers, owners or partners for any acts or omissions by the Company in
connection with the money or other property released to the Company in accordance with the terms
hereof. The Company shall indemnify the Manager and its Affiliates, officers, directors, Investment
Strategy Committee members, employees, agents and successors and assigns against any and all
expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever which
arise in connection with the Manager’s release of such money or other property to the Company in
accordance with the terms of this Section 16. Indemnification pursuant to this Section 16 shall be
in addition to any right of the Manager to indemnification under Section 11.

     17. Notices. Unless expressly provided otherwise in this Agreement, all notices, requests,
demands and other communications required or permitted under this Agreement shall be in writing and
shall be deemed to have been duly given, made and received when delivered against receipt or upon
actual receipt of (a) personal delivery, (b) delivery by a reputable overnight courier, (c)
delivery by facsimile transmission against answerback, or (d) delivery by registered or certified
mail, postage prepaid, return receipt requested, addressed as set forth below:

	 	 	 
	If to the Company:

	 	Crystal River Capital, Inc.

Three World Financial Center

200 Vesey, 10th Floor

19

 

	 	 	 
	 

	 	New York, New York 10281

Attn: Assistant Secretary

Facsimile: (212) 549-8310
	 
	 	 
	If to the Manager:

	 	Hyperion Brookfield Crystal River Capital Advisors, LLC

Three World Financial Center

200 Vesey, 10th Floor

New York, New York 10281

Attn: Assistant Secretary

Facsimile: (212) 549-8310

     Any party may change the address to which communications or copies are to be sent by giving
notice of such change of address in conformity with the provisions of this Section 17 for the
giving of notice.

     18. Binding Nature of Agreement; Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective heirs, personal
representatives, successors and permitted assigns as provided in this Agreement.

     19. Entire Agreement; Amendments. This Agreement, together with the second paragraph of
Section 2(a) of the Registration Rights Agreement, contains the entire agreement and understanding
among the parties hereto with respect to the subject matter hereof and supersedes all prior and
contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or
written, of any nature whatsoever with respect to the subject matter of this Agreement. The express
terms of this Agreement, together with the second paragraph of Section 2(a) of the Registration
Rights Agreement, control and supersede any course of performance and/or usage of the trade
inconsistent with any of the terms of this Agreement. This Agreement may not be modified or amended
other than by an agreement in writing signed by the parties hereto.

     20. Governing Law. This Agreement and all questions relating to its validity,
interpretation, performance and enforcement shall be governed by and construed, interpreted and
enforced in accordance with the laws of the State of New York.

     21. Indulgences, Not Waivers. Neither the failure nor any delay on the part of a party to
exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude
any other or further exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

     22. Titles Not to Affect Interpretation. The titles of sections, paragraphs and
subparagraphs contained in this Agreement are for convenience only, and they neither form a part of
this Agreement nor are they to be used in the construction or interpretation of this Agreement.

20

 

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

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

     25. Principles of Construction. Words used herein regardless of the number and gender
specifically used, shall be deemed and construed to include any other number, singular or plural,
and any other gender, masculine, feminine or neuter, as the context requires. All references to
recitals, sections, paragraphs and schedules are to the recitals, sections, paragraphs and
schedules in or to this Agreement unless otherwise specified.

[SIGNATURE PAGE FOLLOWS]

21

 

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

	 	 	 	 	 
	 	THE COMPANY:

CRYSTAL RIVER CAPITAL, INC.

 	 
	 	By: 	/s/ John H. Dolan 	 
	 	 	Name:	John H. Dolan	 
	 	 	Title:  	Chief Investment Officer

 	 
	 
	 	THE MANAGER:

HYPERION BROOKFIELD CRYSTAL RIVER CAPITAL ADVISORS, LLC

 	 
	 	By:  	/s/
John J. Feeney, Jr.	 
	 	 	Name:  	John J. Feeney, Jr.	 
	 	 	Title:  	Executive Vice President	 
	 

[Signature Page to Amended and Restated Management Agreement]EX-10.1.B

 

Exhibit 10.1(b)

EXECUTION COPY

SUB-ADVISORY AGREEMENT

          This SUB-ADVISORY AGREEMENT is made as of July 10, 2006 (this “Agreement”) by and among Crystal
River Capital, Inc., a Maryland corporation (the “Company”), Hyperion Brookfield Crystal River
Capital Advisors, LLC, a Delaware limited liability company (the “Manager”), and Brookfield Crystal
River Capital L.P., a Manitoba limited partnership (the “Sub-Advisor”).

WITNESSETH:

          WHEREAS, pursuant to the terms of a Management Agreement, dated as of March 15, 2005 (the
“Management Agreement”), between the Company and the Manager, the Company has retained the Manager
for the purpose of providing day-to-day management and administrative services to the Company;

          WHEREAS, the Company and the Manager desire to retain the Sub-Advisor for the purpose of
providing advisory services to the Company in connection with the Company’s investment, directly or
indirectly, in (i) commercial real property or non-securitized commercial real estate financing
instruments, (ii) power generation assets, (iii) timberlands, (iv) other physical infrastructure
assets, (v) private equity investment funds and (vi) any other alternative asset category
designated by the Board of Directors (as hereinafter defined), all as hereinafter further provided;
and

          WHEREAS, the Sub-Advisor is willing to render such services on the terms and conditions
hereinafter set forth;

AGREEMENT

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

     1. Definitions.

          (a) “Affiliate” shall mean, with respect to any Person, any Person Controlling, Controlled by,
or under common Control with, such Person, but for purposes of Section 11 of this Agreement, with
respect to the Sub-Advisor shall not include the Manager, any Person controlled by the Manager or
any director or officer of the Manager in such capacity.

          (b) “Agreement” has the meaning assigned thereto in the introductory paragraph hereof.

          (c) “Alternative Assets” means (i) electric power generation facilities (including
hydroelectric, gas- and coal- fired power plants and wind and emerging alternative forms of power
generating facilities), and debt or equity securities issued by, or other equity interests
(including joint venture interests) in, companies primarily engaged in the operation or development
of such facilities, (ii) timberlands and timber, directly or through freehold or leasehold
interests, and debt or equity securities issued by, or other equity interests (including joint
venture interests) in, companies primarily engaged in the ownership or operation of

 

 

timberlands, (iii) other physical infrastructure assets and debt or equity securities issued
by, or other equity interests (including joint venture interests) in, companies primarily engaged
in the operation or development of physical infrastructure assets, (iv) private equity investment
funds, including any sponsored by Affiliates of the Sub-Advisor, and (v) any other alternative
asset category designated by the Board of Directors.

          (d) “Applicable Asset” means any particular asset in which the Company invests or that is
proposed for investment by the Sub-Advisor, in either case that falls into the category of a
Commercial Real Estate Asset or an Alternative Asset.

          (e) “Bankruptcy” shall mean, with respect to any Person, (a) the filing by such Person of a
voluntary petition seeking liquidation, reorganization, arrangement or readjustment, in any form,
of its debts under Title 11 of the United States Code or any other federal, state or foreign
insolvency law, or such Person’s filing an answer consenting to or acquiescing in any such
petition, (b) the making by such Person of any assignment for the benefit of its creditors, (c) the
expiration of sixty days after the filing of an involuntary petition under Title 11 of the United
States Code, an application for the appointment of a receiver for a material portion of the assets
of such Person, or an involuntary petition seeking liquidation, reorganization, arrangement or
readjustment of its debts under any other federal, state or foreign insolvency law, provided that
the same shall not have been vacated, set aside or stayed within such sixty-day period or (d) the
entry against it of a final and nonappealable order for relief under any bankruptcy, insolvency or
similar law now or hereafter in effect.

          (f) “Board of Directors” means the Board of Directors of the Company. Unless otherwise
specified herein, and except as prohibited or restricted by law or the articles of incorporation or
by-laws of the Company as from time to time in effect, any reference herein to any action, approval
or authorization of the Board of Directors shall include action, approval or authorization of (i) a
committee of the Board of Directors duly authorized by the Board of Directors to act on its behalf
in respect of such action, approval or authorization or (ii) a committee of the Company established
by the Board of Directors and including at least one director and such other individuals serving as
officers of, or otherwise associated with, the Company, the Manager, the Sub-Advisor and/or any
other sub-advisor to the Company retained by the Company as are selected by the Board of Directors.

          (g) “Code” means the Internal Revenue Code of 1986, as amended.

          (h) “Commercial Real Estate Assets” means (i) direct ownership of commercial real properties,
(ii) common and preferred equity securities issued by real estate investment trusts investing
primarily in commercial real properties, (iii) equity securities issued by, or other equity
interests (including joint venture interests) in, companies the principal assets of which are
commercial real properties and (iv) non-securitized commercial real estate debt financing
instruments, including whole mortgage loans, construction loans and other loans (such as “bridge”
loans, “mezzanine” loans and “B notes”) secured by commercial real properties or primarily
dependant for the repayment thereof on the operation of or other realization on commercial real
property (whether constructed or under construction).

2

 

          (i) “Company” has the meaning assigned thereto in the introductory paragraph hereof;
provided that all references herein to the Company shall, except as otherwise expressly
provided herein, be deemed to include any Subsidiaries of Crystal River Capital, Inc.

          (j) “Company Account” has the meaning assigned thereto in Section 5.

          (k) “Control” shall mean, the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of another Person without the consent or approval
of any other Person.

          (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

          (m) “GAAP” means generally accepted accounting principles in effect in the U.S. on the date
such principles are applied consistently.

          (n) “Governing Instruments” means, with respect to any Person, the articles of incorporation
and bylaws in the case of a corporation, the certificate of limited partnership (if applicable) and
partnership agreement in the case of a general or limited partnership or the articles of formation
and operating agreement in the case of a limited liability company.

          (o) “Hyperion Brookfield” means Hyperion Brookfield Asset Management, Inc.

          (p) “Independent Directors” means the members of the Board of Directors who are not officers
or employees of the Company, the Manager or Hyperion Brookfield and who are otherwise “independent”
in accordance with the Company’s Governing Instruments and, at any time during which any securities
of the Company are listed on the New York Stock Exchange, the rules of the New York Stock Exchange
as may be in effect from time to time.

          (q) “Investment Company Act” means the Investment Company Act of 1940, as amended.

          (r) “Investment Guidelines” means the general parameters and policies relating to Investments
as established by the Board of Directors as the same may be modified from time-to-time.

          (s) “Investments” means the investments of the Company.

          (t) “Management Agreement” has the meaning assigned thereto in the first recital hereof.

          (u) “Manager” has the meaning assigned thereto in the introductory paragraph hereof.

          (v) “Person” means any individual, corporation, partnership, joint venture, limited liability
company, estate, trust, unincorporated association, any federal, state, county or

3

 

municipal government or any bureau, department or agency thereof and any fiduciary acting in
such capacity on behalf of any of the foregoing.

          (w) “REIT” means a corporation or trust which qualifies as a real estate investment trust in
accordance with Sections 856 through 860 of the Code and the Treasury Regulation promulgated
thereunder.

          (x) “Sub-Advisor” has the meaning assigned thereto in the introductory paragraph hereof.

          (y) “Sub-Advised Portfolio” has the meaning assigned thereto in Section 2(a).

          (z) “Subsidiary” means any subsidiary of the Company, any partnership, the general partner of
which is the Company or any subsidiary of the Company and any limited liability company, the
managing member of which is the Company or any subsidiary of the Company.

          (aa) “Treasury Regulations” means the Procedures and Administration Regulations promulgated by
the U.S. Department of Treasury under the Code, as amended.

     2. Retention and Duties of Sub-Advisor.

          (a) The Manager hereby retains the Sub-Advisor to advise the Company with respect to the
investment of a portion of the Company’s assets in Commercial Real Estate Assets and Alternative
Assets, to provide investment research and advice with respect to Commercial Real Estate and
Alternative Assets, to supervise and arrange the purchase or other acquisition of such investments
for, and the sale or other disposition of such investments held in, the Company’s investment
portfolio (the portion of the Company’s portfolio consisting of Commercial Real Estate Assets and
Alternative Assets is referred to herein as the “Sub-Advised Portfolio”), subject to the further
terms and conditions set forth in this Agreement (including the authorization requirements of
Section 4), and the Sub-Advisor hereby agrees to perform each of the duties set forth herein in
accordance with the provisions of this Agreement.

          (b) Subject to the further terms and conditions set forth in this Agreement, the Sub-Advisor
will perform (or cause to be performed) such services and activities relating to the Sub-Advised
Portfolio as is appropriate, including:

               (i) supervising and managing the investment and reinvestment of, the Sub-Advised Portfolio
and, in connection therewith, making recommendations relating to the purchase and sale of
Applicable Assets for the Company and to the vote, exercise of consents, and exercise of all other
rights appertaining to such assets owned by the Company;

               (ii) supervising continuously the investment program of the Company as such program pertains
to Commercial Real Estate Assets and Alternative Assets and the composition of the Sub-Advised
Portfolio; and

               (iii) arranging for the sale of Applicable Assets, or for further investment in Applicable
Assets, held in the Sub-Advised Portfolio.

4

 

          (c) In the performance of its duties under this Agreement, the Sub-Advisor shall at all times
conform to, and act in accordance with, to the extent applicable any requirements imposed by (i)
the provisions of the Investment Advisers Act of 1940, as amended (the “Act”), and any rules or
regulations in force thereunder, (ii) the Investment Guidelines and other policies adopted and
implemented by the Board of Directors of the Company; (iii) any other written directions of the
Board of Directors or authorized officers of the Company; and (iv) any other applicable provision
of law, including federal, state, county or city regulations.

          (d) The Board of Directors will have sole and absolute discretion to determine the amount or
percentage of the Company’s assets to be invested in Commercial Real Estate Assets and Alternative
Assets. From time to time, the Board of Directors may, subject to the Investment Guidelines,
determine to increase or decrease the amount or percentage of the Company’s assets to be invested
in Commercial Real Estate Assets or Alternative Assets. If the Board of Directors determines to
increase such amount or percentage, the Sub-Advisor shall recommend for investment such additional
funds in Applicable Assets as soon as practicable, or at such later time as the Board of Directors
may, subject to the Investment Guidelines, direct, after (i) notice of such increase is given to
the Sub-Advisor and (ii) such additional funds are made available for investment. If, on the other
hand, the Board of Directors determines to decrease such amount or percentage, the Sub-Advisor
shall, as soon as practicable, or at such later time as the Board of Directors may direct, after
notice of such decrease is given to the Sub-Advisor, liquidate that portion of the Sub-Advised
Portfolio required for the Sub-Advised Portfolio to represent the desired amount or percentage of
the Company’s assets and cause the proceeds of liquidation of such assets to be available to the
Company.

          (e) Financing assets in the Sub-Advised Portfolio and related hedging of exposure, if any,
will be undertaken by the Manager in consultation with the Sub-Advisor.

          (f) The Sub-Advisor is authorized, for the purchase and sale of the securities in the
Sub-Advised Portfolio, to employ such securities brokers or dealers as may, in the judgment of the
Sub-Advisor, implement the policy of the Company to obtain the best net results taking into account
such factors as price, including dealer spread, the size, type and difficulty of the transaction
involved, the firm’s general execution and operational facilities and the firm’s risk in
positioning the securities involved. Consistent with this policy, the Sub-Advisor is authorized to
direct the execution of the Sub-Advised Portfolio transactions to dealers and brokers furnishing
statistical information or research deemed by the Sub-Advisor to be useful or valuable to the
performance of its investment advisory functions for the Sub-Advised Portfolio. In addition, the
Sub-Advisor may give proper instructions to any custodian of the Company’s assets in connection
with the purchase or sale of Applicable Assets. The Manager, upon the Sub-Advisor’s request, shall
confirm such authority of such custodian.

          (g) The Sub-Advisor shall assist the Manager in the preparation of ongoing reports to the
Board of Directors that review the Company’s acquisitions of Applicable Assets, portfolio
composition and characteristics, credit quality, performance and compliance with the Investment
Guidelines and policies approved by the Board of Directors.

          (h) The Sub-Advisor shall cooperate with the Manager and the Company in all matters pertaining
to its performance hereunder and under agreements among the Manager,

5

 

the Company and other sub-advisors, including, without limitation: (i) timely reporting of all
transaction information; (ii) responding in a timely manner to all reasonable requests for
information from the Manager and the Company and (iii) meeting with staff of the Manager and the
Company as requested.

          (i) The Sub-Advisor shall not be required to expend money in excess of that contained in any
applicable Company Account or otherwise made available by the Company to be expended by the
Sub-Advisor hereunder.

          (j) In performing its duties under this Section 2, the Sub-Advisor shall be entitled to rely
on qualified experts and professionals (including, without limitation, accountants, legal counsel
and other professional service providers) hired by the Sub-Advisor at the Company’s sole cost and
expense.

          (k) The Company shall pay all expenses, and reimburse the Sub-Advisor for the Sub-Advisor’s
expenses incurred on its behalf, in connection with any such services to the extent such expenses
are reimbursable by the Company to the Sub-Advisor pursuant to Section 9 herein.

     3. Dedication; Other Activities.

          (a) The Sub-Advisor shall cause its officers and employees to devote such of their time to the
provision of services to the Company as the Sub-Advisor deems reasonably necessary and appropriate
for the proper performance of all of the Sub-Advisor’s duties hereunder. The Company shall have
the benefit of the Sub-Advisor’s reasonable judgment and effort in rendering services and, in
furtherance of the foregoing, the Sub-Advisor shall not undertake activities which, in its
reasonable judgment, will substantially adversely affect the performance of its obligations under
this Agreement.

          (b) Except to the extent set forth in clause (a) above, nothing herein shall prevent the
Sub-Advisor or any of its Affiliates or any of the officers and employees of any of the foregoing
from engaging in other businesses or from rendering services of any kind to any other Person,
including investment in, or advisory services to others investing in, any type of real estate, real
estate-related investment or non-real estate-related investment, including investments which meet
the principal investment objectives of the Company.

     4. Agency; Authority. Subject to Section 7(a), the Sub-Advisor shall act as the agent of
the Company in originating, acquiring, financing and disposing of Applicable Assets and, in
connection therewith, disbursing and collecting the Company’s funds, paying the debts and
fulfilling the obligations of the Company, supervising the performance of professionals engaged by
or on behalf of the Company and handling, prosecuting and settling any claims of or against the
Company, the Board of Directors, holders of the Company’s securities or the Company’s directors,
officers, employees or other representatives or assets and the Sub-Advisor shall have the right to
exercise all powers and authority which are reasonably necessary and customary to perform its
obligations under this Agreement; provided, however, that, except as otherwise provided by
directions or in accordance with guidelines adopted by the Board of Directors, the acquisition or
other investment of the Sub-Advised Portfolio in an Applicable

6

 

Asset, the sale or other disposition of an Applicable Asset and any Material Transaction (as
hereinafter defined) in respect of an Applicable Asset shall require the prior authorization of the
Board of Directors. A “Material Transaction” shall mean any transaction defined as such by the
Board of Directors.

     5. Custody of Applicable Assets. Nothing in paragraph 4 hereof shall be deemed to authorize
the Sub-advisor to take or receive physical possession or custody of any assets of the Company
including, Applicable Assets or cash, it being intended that sole responsibility for safekeeping of
such assets shall rest with such custodians as designated by the Company.

     6. Book and Records; Confidentiality.

          (a) The Sub-Advisor shall maintain appropriate books of account, records data and files
(including without limitation, computerized material) (collectively, “Records”) relating to the
Company’s investments in Applicable Assets or otherwise generated or obtained by the Sub-Advisor in
performing its obligations under this Agreement, and such Records shall be accessible for
inspection by representatives of the Company at any time during normal business hours. The
Sub-Advisor shall have full responsibility for the maintenance, care and safekeeping of all
Records.

          (b) The Sub-Advisor shall keep confidential any nonpublic information obtained in connection
with the services rendered under this Agreement and shall not disclose any such information (or use
the same except in furtherance of its duties under this Agreement), except: (i) to the Manager and
Hyperion Brookfield; (ii) with the prior written consent of the Board of Directors; (iii) to legal
counsel, accountants and other professional advisors; (iv) to appraisers, financing sources and
others in the ordinary course of the Company’s business of investing in Applicable Assets; (v) to
governmental officials having jurisdiction over the Company; (vi) in connection with any
governmental or regulatory filings of the Company or (vii) as required by law or legal process to
which the Sub-Advisor or any Person to whom disclosure is permitted hereunder is a party. The
foregoing shall not apply to information which has previously become available through the actions
of a Person other than the Sub-Advisor not resulting from Sub-Advisor’s violation of this Section
6(b). The provisions of this Section 6(b) shall survive the expiration or earlier termination of
this Agreement for a period of one year.

     7. Restrictions; Other Obligations.

          (a) The Company shall not acquire any Investment from, dispose of any Investment to, or make
any co-investment with any of its Affiliates (any of the foregoing, a “Related Person”) or any
account advised by any Related Person, or borrow funds from or lend funds to any Related Person or
invest in any investment vehicle advised by any Related Person unless such transaction is on terms
no less favorable than can be obtained on an arm’s length basis from unrelated third parties based
on any of (i) prevailing market prices, (ii) other reliable indicators of fair market value or
(iii) an independent valuation or appraisal and, in any case, has been approved in advance by a
majority of the Independent Directors.

7

 

          (b) The Sub-Advisor shall maintain “errors and omissions” insurance coverage and such other
insurance coverage which is customarily carried by property, asset and investment managers
performing functions similar to those of the Sub-Advisor under this Agreement with respect to
assets similar to the Applicable Assets of the Company, in an amount which is comparable to that
customarily maintained by other managers or servicers of similar assets.

          (c) The Company and the Manager each acknowledge that Sub-Advisor is not registered under the
Act or any similar state or non-U.S. law, and is not undertaking by entering into this Agreement to
become so registered; it being understood that the Sub-Advisor shall be responsible for determining
whether its activities require any such registration. The Sub-Advisor agrees not to accept any
engagement to provide investment advisory services to any client or Person other than the Company
without the consent of the Company, which consent shall not be unreasonably withheld; it being
understood that the foregoing shall not limit in any way the activities of Brookfield Asset
Management Inc. or any of its subsidiaries or Affiliates other than the Sub-Advisor.

     8. Compensation. The Manager shall pay the Sub-Advisor an annual fee equal to 20% of the
sum of the base management fees and incentive management fees received by the Manager from the
Company pursuant to the Management Agreement for the applicable year as reasonably as practicable
following receipt of such base management fees and incentive management fees. The Manager shall
make available the monthly calculation of the fee to the Sub-Advisor as reasonably as practicable
following the last day of each calendar month. The Manager shall pay the Sub-Advisor 20% of any
termination fee received by the Manager from the Company pursuant to the Management Agreement as
reasonable as practicable following receipt of any such termination fee.

     9. Expenses. Each of the Company, the Manager and the Sub-Advisor shall bear all of its
respective operating expenses, except those specifically required to be borne by the Manager under
the Management Agreement and those required to be borne by the Sub-Advisor. The expenses required
to be paid by the Company include, but are not limited to:

          (a) issuance and transaction costs incident to the acquisition, disposition and financing of
Investments;

          (b) legal, regulatory, compliance, tax, accounting, consulting, auditing and administrative
fees and expenses;

          (c) the compensation and expenses of the Company’s directors and the cost of liability
insurance to indemnify the Company’s directors and officers;

          (d) the costs associated with the establishment and maintenance of any credit facilities and
other indebtedness of the Company (including commitment fees, accounting fees, legal fees, closing
costs, etc.);

          (e) expenses associated with other securities offerings of the Company;

          (f) expenses relating to the payment of dividends;

8

 

          (g) expenses connected with communications to holders of the Company’s securities and in
complying with the continuous reporting and other requirements of the Securities and Exchange
Commission and other governmental bodies;

          (h) transfer agent and exchange listing fees;

          (i) the costs of printing and mailing proxies and reports to the Company’s stockholders;

          (j) costs associated with any computer software or hardware, electronic equipment, or
purchased information technology services from third party vendors that is used solely for the
Company;

          (k) costs and out of pocket expenses incurred by directors, officers, employees or other
agents of the Manager for travel on the Company’s behalf;

          (l) the costs and expenses incurred with respect to market information systems and
publications, research publications and materials;

          (m) settlement, clearing, and custodial fees and expenses;

          (n) the costs of maintaining compliance with all federal, state and local rules and
regulations, including securities regulations, or any other regulatory agency, all taxes and
license fees and all insurance costs incurred on the Company’s behalf; and

          (o) expenses relating to any office or office facilities, including disaster backup recovery
sites and facilities maintained for the Company or separate from offices of the Manager or the
Sub-Advisor.

          The Sub-Advisor is not entitled to be reimbursed for wages, salaries and benefits of its
officers and employees. Subject to any required approval of the Board of Directors, the
Sub-Advisor may retain third parties including accountants, legal counsel, real estate
underwriters, brokers, among others, on the Company’s behalf, and be reimbursed for such services.
The provisions of this Section 9 shall survive the expiration or earlier termination of this
Agreement to the extent such expenses have previously been incurred or are incurred in connection
with such expiration or termination.

     10. Expense Reports and Reimbursements. The Sub-Advisor shall prepare a statement
documenting the operating expenses of the Company incurred by the Sub-Advisor on behalf of the
Company during each fiscal quarter, and deliver the same to the Company and the Manager within 45
days following the end of the applicable fiscal quarter. Such expenses shall be reimbursed by the
Company within 45 days following delivery of the expense statement by the Sub-Advisor;
provided, however, that such reimbursements may be offset by the Sub-Advisor
against amounts due to the Company from the Sub-Advisor. The provisions of this Section 10 shall
survive the expiration or earlier termination of this Agreement.

9

 

     11. Limits of Manager Responsibility; Indemnification.

               (a) Pursuant to this Agreement, the Sub-Advisor will not assume any responsibility other than
to render the services called for hereunder and will not be responsible for any action of the Board
of Directors or the Manager in following or declining to follow its advice or recommendations. The
Sub-Advisor and its Affiliates, and their respective directors, officers, managers and employees,
will not be liable to the Company, any Subsidiary, the Manager, any of their directors, officers,
stockholders, managers, owners or partners for acts or omissions performed or not performed in
accordance with and pursuant to this Agreement, except by reason of acts or omissions constituting
bad faith, willful misconduct, gross negligence or reckless disregard of the Sub-Advisor’s duties
under this Agreement.

               (b) The Company hereby agrees to indemnify, defend and hold harmless the Sub-Advisor, the
Manager and their respective Affiliates, officers, directors, members, managers, employees, agents,
successors and assigns from and against all liabilities, judgments, costs, charges, losses,
expenses and claims, including attorneys’ fees, charges and expenses and expert witness fees, of
any nature, kind or description, arising out of claims by third parties based on acts or omissions
of the Sub-Advisor performed or not performed in accordance with and pursuant to this Agreement,
except (i) to the extent caused by or resulting from acts or omissions constituting bad faith,
willful misconduct, gross negligence or reckless disregard of the Sub-Advisor’s duties under this
Agreement, as determined pursuant to a final, non-appealable order of a court of competent
jurisdiction or (ii) claims by the Sub-Advisor’s employees relating to the terms and conditions of
their employment with the Sub-Advisor.

               (c) The Sub-Advisor hereby agrees to indemnify the Company, the Manager and their respective
directors and officers with respect to all liabilities, judgments, costs, charges, losses, expenses
and claims, including attorney’s fees, charges and expenses and expert witness fees, of any nature,
kind or description, arising out of (i) claims by third parties based on acts or omissions of the
Sub-Advisor performed or not performed in accordance with and pursuant to this Agreement
constituting bad faith, willful misconduct, gross negligence or reckless disregard of the
Sub-Advisor’s duties under this Agreement, as determined pursuant to a final, non-appealable order
of a court of competent jurisdiction or (ii) claims by the Sub-Advisor’s employees relating to the
terms and conditions of their employment with the Sub-Advisor.

               (d) The party seeking indemnity (“Indemnitee”) will promptly notify the party against whom
indemnity is claimed (“Indemnitor”) of any claim for which it seeks indemnification; provided,
however, that the failure to so notify the Indemnitor will not relieve Indemnitor from any
liability which it may have hereunder, except to the extent such failure actually prejudices
Indemnitor. The Indemnitor shall have the right to assume the defense and settlement of such
claim; provided that, Indemnitor notifies Indemnitee of its election to assume such defense and
settlement within thirty (30) days after the Indemnitee gives the Indemnitor notice of the claim.
In such case the Indemnitee will not settle or compromise such claim, and the Indemnitor will not
be liable for any such settlement made without its prior written consent. If Indemnitor is
entitled to, and does, assume such defense by delivering the aforementioned notice to Indemnitee,
Indemnitee will (i) have the right to approve Indemnitor’s counsel (which approval will not be
unreasonably withheld or delayed), (ii) be obligated to cooperate in

10

 

furnishing evidence and testimony and in any other manner in which Indemnitor may reasonably
request and (iii) be entitled to participate in (but not control) the defense of any such action,
with its own counsel and at its own expense.

               (e) Reasonable expenses (including attorney’s fees) incurred by an Indemnitee in defense or
settlement of a claim that may be subject to a right of indemnification hereunder may be advanced
by the Company to such Indemnitee as such expenses are incurred prior to the final disposition of
such claim; provided that, Indemnitee undertakes to repay such amounts if it shall be
determined ultimately by a court of competent jurisdiction that Indemnitee was not entitled to be
indemnified hereunder.

               (f) The Sub-Advisor shall remain entitled to exculpation from the Company and the Manager and
indemnification from the Company pursuant to this Section 11 (subject to the limitations set forth
herein) with respect to any matter arising prior to the termination of this Agreement and shall
have no liability to the Company or the Manager in respect of any matter arising after such
termination unless such matter arose out of events or circumstances that occurred prior to such
termination.

     12. No Joint Venture. Nothing in this Agreement shall be construed to make the Company, the
Manager and the Sub-Advisor partners or joint venturers or impose any liability as such on either
of them.

     13. Term; Termination; Termination Payment.

          (a) This Agreement shall become effective on the date first set forth above. This Agreement
may be terminated by the Sub-Advisor at any time without penalty upon giving the Company and the
Manager 60 days’ prior written notice (which notice may be waived by the Company), and may be
terminated by the Company at any time without penalty upon giving the Sub-Advisor 60 days’ prior
written notice (which notice may be waived by the Sub-Advisor). This Agreement shall terminate
automatically (i) immediately upon termination of the Management Agreement or (ii) in the event of
its assignment (as “assignment” is defined in the Investment Advisers Act of 1940).

          (b) If this Agreement is terminated pursuant to this Section 13, such termination shall be
without any further liability or obligation of either party to the other, except as otherwise
expressly provided herein.

          (c) The Company may terminate this Agreement effective 30 days after notice of termination
from the Company to the Sub-Advisor in the event that any of the following occur: (i) the
Sub-Advisor commits any act of gross negligence in the performance of its duties under this
Agreement, (ii) the Sub-Advisor commits any act of fraud, misappropriation of funds, or
embezzlement against the Company, (iii) the Sub-Advisor, in its corporate capacity (as
distinguished from the acts of any employees of the Sub-Advisor which are taken without the
complicity of any of the executive officers of the Sub-Advisor), commits any other willful and
material violation of this Agreement and such willful and material violation continues for a period
of 30 days after written notice thereof specifying such violation and requesting that the same be
remedied in such 30 day period, (iv) Brookfield Asset Management Inc. does not

11

 

Control the Sub-Advisor, (v) the Bankruptcy of the Sub-Advisor or (vi) the dissolution of the
Sub-Advisor.

          (d) Upon a termination of this Agreement pursuant to this Section 13 (other than pursuant to
Section 13(c) hereof, the Manager will continue to pay the Sub-Advisor termination fees equal to
the amount of annual investment advisory fees and termination fees that would otherwise be due and
payable pursuant to Section 8 in the absence of a termination of this Agreement until April 28,
2020 whereupon the foregoing obligation to pay termination fees shall cease.

     14. Action Upon Termination or Expiration of Origination Period. From and after the
effective date of termination of this Agreement pursuant to Section 13, the Sub-Advisor shall not
be entitled to compensation for further services under this Agreement but, other than in the event
of a termination pursuant to Section 13(c)(i), (c)(ii) or (c)(iii), shall be paid all compensation
accruing to the date of termination, reimbursement for all operating expenses of the Company borne
by the Sub-Advisor for the benefit of the Company and a termination fee, if applicable. Upon such
termination or expiration, the Sub-Advisor shall reasonably promptly:

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

          (b) deliver to the Company all property and documents of the Company provided to or obtained
by the Sub-Advisor pursuant to or in connection with this Agreement, including all copies and
extracts thereof in whatever form, then in the Sub-Advisor’s possession or under its control.

     15. Assignment. None of the parties hereto may assign its duties under this Agreement.

     16. Notices. Unless expressly provided otherwise in this Agreement, all notices, requests,
demands and other communications required or permitted under this Agreement shall be in writing and
shall be deemed to have been duly given, made and received when delivered against receipt or upon
actual receipt of (a) personal delivery, (b) delivery by a reputable overnight courier, (c)
delivery by facsimile transmission against answerback, or (d) delivery by registered or certified
mail, postage prepaid, return receipt requested, addressed as set forth below:

	 	 	 
	If to the Company:

	 	Crystal River Capital, Inc.

c/o Hyperion Brookfield Asset Management, Inc.

Three World Financial Center

200 Vesey Street, 10th Floor

New York, New York 10281-1010

Attn: General Counsel

Facsimile: (212) 549-8310

12

 

	 	 	 
	If to the Manager:

	 	Hyperion Crystal River Capital Advisors, LLC

c/o Hyperion Brookfield Asset Management, Inc.

Three World Financial Center

200 Vesey Street, 10th Floor

New York, New York 10281-1010

Attn: General Counsel

Facsimile: (212) 549-8310
	 
	 	 
	If to the Sub-Advisor:

	 	Brookfield Crystal River Capital L. P.

Suite 300, BCE Place

181 Bay Street, P.O. Box 771

Toronto, Canada M5J 2T3

Attn: Legal Counsel

Facsimile: (416) 365-9642

Any party may change the address to which communications or copies are to be sent by giving notice
of such change of address in conformity with the provisions of this Section 17 for the giving of
notice.

     17. Binding Nature of Agreement; Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective heirs, personal
representatives, successors and permitted assigns as provided in this Agreement.

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

     19. Governing Law. This Agreement and all questions relating to its validity,
interpretation, performance and enforcement shall be governed by and construed, interpreted and
enforced in accordance with the laws of the State of New York.

     20. Indulgences, Not Waivers. Neither the failure nor any delay on the part of a party to
exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver
thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude
any other or further exercise of the same or of any other right, remedy, power or privilege, nor
shall any waiver of any right, remedy, power or privilege with respect to any occurrence be
construed as a waiver of such right, remedy, power or privilege with respect to any other
occurrence. No waiver shall be effective unless it is in writing and is signed by the party
asserted to have granted such waiver.

     21. Titles Not to Affect Interpretation. The titles of sections, paragraphs and
subparagraphs contained in this Agreement are for convenience only, and they neither form a

13

 

part of this Agreement nor are they to be used in the construction or interpretation of this
Agreement.

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

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

     24. Principles of Construction. Words used herein regardless of the number and gender
specifically used, shall be deemed and construed to include any other number, singular or plural,
and any other gender, masculine, feminine or neuter, as the context requires. All references to
recitals, sections, paragraphs and schedules are to the recitals, sections, paragraphs and
schedules in or to this Agreement unless otherwise specified.

[SIGNATURE PAGE FOLLOWS]

14

 

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

	 	 	 	 	 
	 	 	THE COMPANY:
	 
	 	 	 	 
	 	 	CRYSTAL RIVER CAPITAL, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ John H. Dolan
	 

	 	 	 	 
	 

	 	 	 	Name: John H. Dolan
	 

	 	 	 	Title:  Chief Investment Officer
	 
	 	 	 	 
	 	 	THE MANAGER:
	 
	 	 	 	 
	 	 	HYPERION BROOKFIELD CRYSTAL RIVER CAPITAL ADVISORS, LLC
	 
	 	 	 	 
	 

	 	By:	 	/s/ John J. Feeney, Jr.
	 

	 	 	 	 
	 

	 	 	 	Name: John J. Feeney, Jr.
	 

	 	 	 	Title:  Executive Vice President
	 
	 	 	 	 
	 	 	THE SUB-ADVISOR:
	 
	 	 	 	 
	 	 	BROOKFIELD CRYSTAL RIVER CAPITAL L. P.
	 
	 	 	 	 
	 

	 	By:
	 	Brookfield Crystal River Capital Inc.,
	 

	 	 	 	Its sole general partner
	 
	 	 	 	 
	 

	 	By:	 	/s/ Bruce Robertson
	 

	 	 	 	 
	 

	 	 	 	Name: Bruce Robertson
	 

	 	 	 	Title:  President

[Signature Page to Brookfield Crystal River Capital Sub-Advisory Agreement]

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