Document:

Exhibit

EXHIBIT 10.32
FIG LLC 
EMPLOYMENT, NON-COMPETITION AND NON-SOLICITATION AGREEMENT
THIS EMPLOYMENT, NON-COMPETITION AND NON-SOLICITATION AGREEMENT (together with the exhibits hereto, this “Agreement”) is entered into as of the third day of November, 2016, by and between FIG LLC, a Delaware limited liability company (the “Company”), and Randal A. Nardone (“Executive”).
W I T N E S S E T H:
WHEREAS, the Company desires to secure the services of the Executive for the benefit of the Company and its “Affiliates” (as defined below) from and after the date hereof; and
WHEREAS, Executive desires to provide such services.
NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements herein contained, together with other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:
1.SERVICES AND DUTIES.
(a)    General.  From and after January 1, 2017 (which shall be the “Effective Date” of this Agreement), Executive shall be employed by the Company in the capacity of Principal; in such capacity Executive shall be a member of the Company’s Management Committee.  The principal location of Executive’s employment with the Company shall be the present location in which the Executive performs such services, although Executive understands and agrees that Executive may also be required to travel from time to time for business reasons.  Executive shall be a full-time employee of the Company and shall dedicate all of Executive’s working time to the Company and its Affiliates and shall have no other employment and no other business ventures which are undisclosed to the Company or which conflict with Executive’s duties under this Agreement.  Executive will perform such duties as are required by the Company from time to time and normally associated with Executive’s position, together with such additional duties, commensurate with Executive’s positions with the Company and with its Affiliates, as may be assigned to Executive from time to time by the Board of Directors of Fortress Investment Group LLC (the “Board”).  Notwithstanding the foregoing, nothing herein shall prohibit Executive from (i) subject to prior approval of the Board, accepting directorships unrelated to the Company that do not give rise to any conflict of interests with the Company or its Affiliates and (ii) engaging in charitable and civic activities, so long as such outside interests do not interfere individually or in the aggregate with the performance of the Executive’s duties hereunder.  The Company acknowledges and approves the current activities of the Executive.
(b)    As to Affiliates.  The Executive shall report directly to the Board.  Parent agrees that during the Term the Executive shall serve as an officer of Fortress Investment Group LLC (the “Parent”) and as a director and officer of each of the Company, FIG Asset Co. LLC and FIG Corp. and each of their directly controlled entities.
(c)    Prior Agreement.  The Employment, Non-Competition and Non-Solicitation Agreement dated as of August 4, 2011 (the “Prior Agreement”), shall terminate immediately prior to the Effective Date.
2.    TERM.  Executive’s employment under the terms and conditions of this Agreement will commence on the Effective Date.  The term of this Agreement (the “Term”) shall consist of the “Initial Term” and “Renewal 

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Terms” (as defined below), which, in any case, may be terminated earlier pursuant to Section 5 hereof.  The Initial Term of this Agreement shall commence on the Effective Date and end on the fifth anniversary of the Effective Date.  The Initial Term shall automatically renew for additional one-year periods (each such one-year period, a Renewal Term), unless either party delivers to the other party, at least ninety (90) days prior to the end of the Initial Term or the relevant Renewal Term, a written notice indicating that such party intends not to extend the Term hereof.  The delivery by the Company pursuant to this Section 2 of a notice not to extend the Term shall not be deemed a termination of Executive’s employment by the Company without Cause for purposes of this Agreement.  If the Term expires, and Executive is employed by the Company thereafter, such employment shall be “at-will.”  Notwithstanding the foregoing provisions of this Section 2, the Executive will have the right to voluntarily terminate his employment with the Company at any time, any such termination being effective on the date on which a written notice thereof is delivered to the Company.
3.    COMPENSATION.
(a)    Base Salary.  In consideration of Executive’s full and faithful satisfaction of Executive’s duties under this Agreement, the Company agrees to pay to Executive a salary in the amount of two hundred thousand dollars ($200,000) per annum (the “Base Salary”), payable in accordance with the current regular payroll practices of the Company.  This means that Executive will be paid his base salary on a semi-monthly basis on the 15th (the “First Payday”) and the last day of each month (the “Second Payday”).  If the First Payday falls on a holiday or a day outside the regular workweek, then Executive will be paid on the business day immediately prior to the First Payday, and if the Second Payday falls on a holiday or a day outside the regular workweek, then Executive will be paid on the business day immediately prior to the Second Payday.  The Company reserves the right to modify its payroll practices and payroll schedule at its sole discretion.  The Base Salary shall be reviewed on an annual basis by the Board and adjusted at the Board’s sole discretion; provided, however, in no event shall the Base Salary be reduced without Executive’s approval.
(b)    Withholding.  The Company may withhold from any benefits or taxable compensation due under this Agreement such Federal, state, and local taxes as may be required or permitted to be withheld pursuant to any applicable law or regulation.  The Company may determine that any compensation hereunder constitutes guaranteed payment under Section 707 of the Code.
4.    BENEFITS AND EXPENSE REIMBURSEMENT.
(a)    Retirement and Welfare Benefits.  During the Term, Executive will be entitled to all the usual benefits offered to employees at Executive’s level, including sick time and participation in the Company’s medical, dental and insurance programs, as well as the ability to participate in the Company’s 401(k) retirement savings plan, subject to the applicable limitations and requirements imposed by the terms of such benefit plans, in each case in accordance with the terms of such plans as in effect from time to time. Nothing in this Section 4, however, shall require the Company to maintain any benefit plan or provide any type or level of benefits to its employees, including Executive.
(b)    Vacation/Paid Time Off.  Notwithstanding anything to the contrary in the Company’s vacation or paid time off (“PTO”) policies, for each calendar year during the Term, Executive shall be entitled to four (4) weeks (20 business days) vacation and paid time off under the Company’s “PTO” plan for each calendar year.
(c)    Reimbursement of Expenses.  Subject to Section 5(f) below, the Company shall reimburse Executive for any expenses reasonably and necessarily incurred by Executive in furtherance of Executive’s duties hereunder, including travel, meals and accommodations, upon submission by Executive of vouchers or receipts and in compliance with such rules and policies relating thereto as the Company may from time to time adopt.

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5.    TERMINATION.  Executive’s employment shall be terminated at the earliest to occur of the following: (i) at the end of the Term unless Executive agrees to continue working for the Company on an “at-will” basis (as described above in Section 2), (ii) the date on which the Board delivers written notice that Executive is being terminated for Disability (as defined below), or (iii) the date of Executive’s death.  In addition, Executive’s employment with the Company may be terminated (i) by the Company for “Cause” (as defined below), effective on the date on which a written notice to such effect is delivered to Executive; (ii) by the Company at any time without Cause, effective on the date on which a written notice to such effect is delivered to Executive or such other date as is reasonably designated by the Company; or (iii) by Executive at any time, effective on the date on which a written notice to such effect is delivered to the Company.
(a)    Termination by Company with Cause.  If Executive’s employment with the Company is terminated by the Company with Cause, Executive shall not be entitled to any further compensation or benefits other than accrued but unpaid Base Salary (payable as provided in Section 3(a) hereof) and accrued and unused vacation pay through the date of such termination (collectively, the “Accrued Benefits”), which Accrued Benefits shall be payable to Executive within thirty (30) days following the termination date.
(b)    Termination by Company without Cause.  If Executive’s employment is terminated by the Company without Cause prior to the end of the Term hereof, then Executive shall be entitled to the Accrued Benefits, and, subject to Executive’s execution (within forty-five (45) days following termination of employment) and non-revocation of a signed release of claims in a form adopted by the Board from time to time (a “Release”), a lump sum separation payment equal to three (3) times the Executive’s then-current Base Salary.  Amounts due pursuant to the preceding sentence shall be payable to you on or before March 15th of the year immediately following the year in which termination of employment occurs.  Termination by the Company without Cause is subject to the approval of the holders of the Class B shares of the Parent pursuant to the Shareholders Agreement in effect between the Executive, certain other individuals and the Parent, as such may be amended from time to time.
(c)    Death, Disability or Termination by Executive.  If Executive’s employment is terminated voluntarily by Executive or by reason of Executive’s death or Disability prior to the end of the Term, in lieu of any other payments or benefits, Executive (or Executive’s estate, as applicable) shall be entitled to the Accrued Benefits, which Accrued Benefits shall be payable to Executive within thirty (30) days following the termination date.
(d)    Definitions. For purposes of this Agreement:
“Affiliate” means an affiliate of the Company (or other referenced entity, as the case may be) as defined in Rule 405 promulgated under the Securities Act of 1933, as amended.
“Cause” means:
(i)    the willful engaging by the Executive in illegal or fraudulent conduct or gross misconduct which, in each case, is materially and demonstrably injurious (x) to the Parent, the Company or any of Parent’s other controlled Affiliates other than the Fortress Funds (as defined in Section 8(l) hereof) and their Subsidiaries, (y) to the reputation of the Executive, the Parent, the Company or any of Parent’s other controlled Affiliates other than the Fortress Funds and their Subsidiaries, or (z) to any of the Parent’s or the Company’s material funds or businesses, or
(ii)    conviction of a felony or guilty or nolo contendere plea by the Executive with respect thereto, or

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(iii)    a material breach by the Executive of the non-competition or non-solicitation covenants provided in Section 6 hereof and Exhibit A hereto, if such breach is curable and is not cured within thirty business days following receipt of a notice of such breach or if such breach is not curable.
For purposes of this provision, no act or failure to act on the part of the Executive shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company or was done or omitted to be done with reckless disregard to the consequences. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. The cessation of employment of the Executive shall not be deemed to be for Cause unless and until there shall have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than two-thirds of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel, to be heard before the Board), finding that in the good faith opinion of the Board, the Executive is guilty of the conduct constituting Cause and specifying the particulars thereof in detail.
“Disability” means, as determined by the Board in good faith, Executive’s inability, due to disability or incapacity, to perform all of the Executive’s duties hereunder on a full-time basis for (i) periods aggregating one-hundred-eighty (180) days, whether or not continuous, in any continuous period of three-hundred-and-sixty-five (365) days or, (ii) where Executive’s absence is adversely affecting the performance of the Company in a significant manner, periods greater than ninety (90) days and Executive is unable to resume Executive’s duties on a full time basis within ten (10) days following receipt of written notice of the Board’s determination under this clause (ii).
“Subsidiary” means a subsidiary of the Company (or other referenced entity, as the case may be) as defined in Rule 405 promulgated under the Securities Act of 1933, as amended.
(e)    Resignation as Officer or Director.  Upon the termination of employment for any reason, Executive shall resign each position (if any) that Executive then holds as an officer or director of the Company or any of its Subsidiaries.  Executive’s execution of this Agreement shall be deemed the grant by Executive to the officers of the Company and its Affiliates of a limited power of attorney to sign in Executive’s name and on Executive’s behalf documentation solely for the limited purpose of effectuating such resignations.
(f)    Section 409A.  The intent of the parties is that payments and benefits under this Agreement (including all exhibits hereto) comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted and be administered to be in compliance therewith.  Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Code Section 409A, Executive shall not be considered to have terminated employment with the Company for purposes of this Agreement, and no payment shall be due to Executive under this Agreement, until Executive would be considered to have incurred a “separation from service” from the Company within the meaning of Code Section 409A.  Any payments described in this Agreement that are due within the “short-term deferral period” as defined in Code Section 409A shall not be treated as deferred compensation unless applicable law requires otherwise.  The amount of expenses that are eligible for reimbursement in any taxable year shall not affect the amount of expenses eligible for reimbursement in another taxable year.  Any reimbursements of such expenses shall be made by the end of the year following the year in which the related expenses were incurred, or, in the case of reimbursements for any taxes to which Executive becomes entitled, by the end of the year following the year in which Executive remits the related taxes, except, in each case, to the extent 

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that the right to reimbursement does not provide for a “deferral of compensation” within the meaning of Code Section 409A.
Each amount to be paid or benefit to be provided to Executive pursuant to this Agreement that constitutes deferred compensation subject to Code Section 409A shall be construed as a separate identified payment for purposes of Code Section 409A.  Notwithstanding anything to the contrary in this Agreement, to the extent that any payments to be made in connection with Executive’s separation from service would result in the imposition of any individual penalty tax imposed under Code Section 409A, the payment shall instead be made on the first business day after the earlier of (i) the date that is six (6) months following such separation from service and (ii) Executive’s death.
6.    RESTRICTIVE COVENANTS.  The parties agree that the restrictive covenants set forth in Exhibit A hereto (the “Restrictive Covenants”) are incorporated herein by reference and shall be deemed to be contained herein.  The Executive understands, acknowledges and agrees that the Restrictive Covenants apply (i) during his employment under this Agreement, during any period of employment by (x) the Company or (y) any Affiliate following the termination of this Agreement or the expiration of the Term of this Agreement, and (ii), as provided in Exhibit A hereto, during the periods specified following termination of his employment by the Company and by any Affiliate which may have employed him.
7.    ASSIGNMENT.  This Agreement, and all of the terms and conditions hereof, shall bind the Company and its successors and assigns and shall bind Executive and Executive’s heirs, executors and administrators.  No transfer or assignment of this Agreement shall release the Company from any obligation to Executive hereunder.  Neither this Agreement, nor any of the Company’s rights or obligations hereunder, may be assigned or are otherwise subject to hypothecation by Executive.  The Company may assign the rights and obligations of the Company hereunder, in whole or in part, to any of the Company’s Subsidiaries or Affiliates, or to any other successor or assign in connection with the sale of all or substantially all of the Company’s assets or equity or in connection with any merger, acquisition and/or reorganization, provided the assignee assumes the obligations of the Company hereunder.
8.    GENERAL.
(a)    Notices.  Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of one business day following personal delivery (including personal delivery by courier), or the third business day after mailing by first class mail to the recipient at the address indicated below:
To the Company:
General Counsel 
Fortress Investment Group LLC 
1345 Avenue of the Americas 
46th Floor 
New York, NY  10105
To Executive at the location set forth in the Company’s records.
or to such other address or to the attention of such other person as the recipient party may have specified by prior written notice to the sending party.
(b)    Severability.  Any provision of this Agreement which is deemed invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this paragraph be ineffective to the extent 

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of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions hereof in such jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction.  If any covenant should be deemed invalid, illegal or unenforceable because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and enforceable.
(c)    Entire Agreement.  This document, together with its attached exhibits, constitutes the final, complete, and exclusive embodiment of the entire agreement and understanding between the parties related to the subject matter hereof and supersedes and preempts any prior or contemporaneous understandings, agreements, or representations by or between the parties, written or oral, including, without limitation, the Prior Agreement.
(d)    Counterparts.  This Agreement may be executed on separate counterparts, any one of which need not contain signatures of more than one party, but all of which taken together will constitute one and the same agreement.
(e)    Amendments.  No amendments or other modifications to this Agreement may be made except by a writing signed by both parties.  No amendment or waiver of this Agreement requires the consent of any individual, partnership, corporation or other entity not a party to this Agreement.  Nothing in this Agreement, express or implied, is intended to confer upon any third person any rights or remedies under or by reason of this Agreement.
(f)    Choice of Law.  All questions concerning the construction, validity and interpretation of this Agreement will be governed by the laws of the State of New York without giving effect to principles of conflicts of law of such state.
(g)    Survivorship.  The provisions of this Agreement necessary to carry out the intention of the parties as expressed herein (including, without limitation, the Restrictive Covenants provided in Section 6 hereof and Exhibit A hereto) shall survive the termination or expiration of this Agreement.
(h)    Waiver.  The waiver by either party of the other party’s prompt and complete performance, or breach or violation, of any provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation, and the failure by any party hereto to exercise any right or remedy which it may possess hereunder shall not operate nor be construed as a bar to the exercise of such right or remedy by such party upon the occurrence of any subsequent breach or violation. No waiver shall be deemed to have occurred unless set forth in a writing executed by or on behalf of the waiving party. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.
(i)    Captions.  The captions of this Agreement are for convenience and reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision hereof.
(j)    Construction.  The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties, each afforded representation by legal counsel.  Each and every provision of this Agreement shall be construed as though both parties participated equally in the drafting of the same, and any rule of construction that a document shall be construed against the drafting party shall not be applicable to this Agreement.
(k)    Arbitration.  Except as necessary for the Company, its Subsidiaries, Affiliates, and their respective successors or assigns or Executive to specifically enforce or enjoin a breach of this Agreement (to the extent such remedies are otherwise available, including as provided and limited in Section 8(l) hereof), the parties agree that 

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any and all disputes that may arise in connection with, arising out of or relating to this Agreement, or any dispute that relates in any way, in whole or in part, to Executive’s services on behalf of the Company or any Affiliate, any compensation relating to such services, the termination of such services or any other dispute by and between the parties or their Subsidiaries, Affiliates, and their respective successors or assigns, shall be submitted to binding arbitration in New York, New York, according to the National Employment Dispute Resolution Rules and procedures of the American Arbitration Association.  The parties agree that each party shall bear its or his own expenses incurred in connection with any such dispute.  Subject to Section 8(l) hereof, this arbitration obligation extends to any and all claims that may arise by and between the parties or their Subsidiaries, Affiliates and their respective successors or assigns, and expressly extends to, without limitation, claims or causes of action for wrongful termination, impairment of ability to compete in the open labor market, breach of an express or implied contract, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, defamation, slander, infliction of emotional distress, disability, loss of future earnings, and claims under the United States Constitution, and applicable state and federal fair employment laws, federal and state equal employment opportunity laws, and federal and state labor statutes and regulations, including, but not limited to, the Civil Rights Act of 1964, as amended, the Fair Labor Standards Act, as amended, the Americans With Disabilities Act of 1990, as amended, the Rehabilitation Act of 1973, as amended, the Employee Retirement Income Security Act of 1974, as amended, the Age Discrimination in Employment Act of 1967, as amended, and any other state or federal law.
(l)    Third Party Beneficiaries.  Except as expressly provided herein, nothing in this Agreement shall confer any rights or remedies upon any Person other than the parties hereto.  In any provision of the Agreement which provides rights or remedies to, or permits the assignment of rights to, Affiliates or Subsidiaries of the Company, the terms “Affiliates” and “Subsidiaries” shall be construed to exclude (i) any fund or similar collective investment vehicle or managed account formed primarily for the purpose of investing the capital of third parties (whether formed as a limited partnership, a corporation, a limited liability company or other similar form) managed by the Company or its Affiliates (the “Fortress Funds”) and (ii) any entities controlled by any Fortress Fund.  In the discretion of the Board, any right or remedy which a Fortress Fund or an entity controlled by a Fortress Fund would otherwise have (but for the immediately preceding sentence) may be asserted or pursued by the Company or another Affiliate of the Company on behalf of such Fortress Fund or its controlled entity; further, in the discretion of the Board, any obligation (including, without limitation, any obligation to arbitrate) which a Fortress Fund or an entity controlled by a Fortress Fund might otherwise have under this Agreement may be exclusively undertaken by the Company or another Affiliate of the Company on behalf of such Fortress Fund or its controlled entity.
IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND THEREBY, the parties hereto have executed and delivered this Agreement as of the year and date first above written.
FIG LLC
		
	By:
	/s/ David N. Brooks     
Name: David N. Brooks 
Title: Secretary

/s/ Randal A. Nardone     
Name: Randal A. Nardone 
Title: Chief Executive Officer and Principal
 
Signature Page for Randal A. Nardone Employment Agreement

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Exhibit A
Restrictive Covenants
The Executive understands, acknowledges and agrees that, by virtue of his equity interest in the Company and/or its Affiliates, his previous services to the Company and its Affiliates, and his employment by the Company pursuant to this Agreement, directly or indirectly, he acquired, had access to, or was otherwise exposed to, and shall acquire, have access to or be otherwise exposed to confidential information of the Company and its Affiliates (the “Confidential Information,” as defined below) and he has met and developed relationships with, and will meet and develop relationships with, the Company’s potential and existing financing sources, capital market intermediaries, investors, employees and consultants.
The Company and its Affiliates are engaged throughout the United States and the world in the business of raising, managing, investing the assets of and making investments in private equity funds, hedge funds, publicly traded alternative investment vehicles and other alternative asset investment vehicles (the “Business”).   In addition, the Company and its Affiliates are also engaged in expanding their business by developing new investment strategies, investment vehicles, business concepts and services (the “Developing Business”).  As part of this Developing Business, the Company and its Affiliates have developed and continue to develop trade secrets, confidential business information, valuable relationships with prospective and existing business, financial and other counterparties and others, and to create goodwill associated with these relationships and businesses.  The Developing Business is a substantial business asset owned by and proprietary to the Company and/or its Affiliates, as applicable. The Executive acknowledges that (i) the Business and Developing Business are global in nature and the Executive is among the limited number of individuals leading the Business and Developing Business, (ii) the Company is entering into this Agreement, with all its provisions including the Restrictive Covenants, as part of a larger transaction, of which the Restrictive Covenants are an essential part, (iii) he has been fully advised by counsel in connection with the negotiation of this Agreement and the Restrictive Covenants, (iv) he is familiar with the laws which govern the enforceability of restrictive covenants in the jurisdictions where the Business is carried on and where the Developing Business is under consideration, and agrees that these Restrictive Covenants, including, without limitation, the non-competition covenant, are reasonable, valid and enforceable in the context of this Agreement, and (v) compliance with the Restrictive Covenants, including, without limitation, the non-competition covenant, will not create any hardship for the Executive as he has independent means and sufficient income, including the payments to be made pursuant to the Principal Compensation Plan and related agreements, to be fully self-supporting without competing with the Company in the Business or Developing Business or violating any of the Restrictive Covenants.  Nothing contained in this Exhibit shall limit any common law or statutory obligation that the Executive may have to the Company or any of its Affiliates.
A.    Non-competition.  The Executive agrees that during the period of his employment with the Company (or any Affiliate) and, if he shall have terminated his employment voluntarily or if the Company or its Affiliate shall have terminated his employment with Cause, for the eighteen-month period immediately following termination of such employment (whether or not such termination occurs during the Term of this Agreement), the Executive shall not, directly or indirectly, either as a principal, agent, employee, employer, consultant, partner, member, shareholder of a closely held corporation or shareholder in excess of five percent of a publicly traded corporation, corporate officer or director, or in any other individual or representative capacity, engage or otherwise participate in any manner or fashion in any business that is a Competing Business (as defined below), either in the United States or in any other place in the world where the Company or any of its Affiliates, successors or assigns engages in the Business or proposes to engage in the Developing Business.  Solely for purposes of this Exhibit: “Competing Business” means any business (other than the Business or Developing Business of the Company, its successors or assigns or Affiliates) which (i) raises, manages, invests the assets of and/or makes investments in private equity funds, hedge funds, publicly traded alternative 

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investment vehicles, managed accounts or other alternative asset investment vehicles, or the persons who manage, advise or own such investment vehicles, (ii) makes investments of the type being made at any time during the Term (or during the period of Executive’s employment) by the Company or any Affiliate, (iii) otherwise competes in any fashion with the Business, or (iv) otherwise competes with, makes investments contemplated by or provides services contemplated by the Developing Business.
B.    Non-solicitation of Employees, Etc.  The Executive agrees that during the period of his employment with the Company (or any Affiliate) and during the two-year period immediately following the date of termination of the Executive’s employment with the Company or any Affiliate for any reason (whether or not such termination occurs during the Term of this Agreement), the Executive shall not, directly or indirectly, (i) solicit or induce any officer, director, employee, agent or consultant of the Company or any of its successors, assigns or Affiliates to terminate his, her or its employment or other relationship with the Company or its successors, assigns or Affiliates for the purpose of associating with any Competing Business, or otherwise encourage any such person or entity to leave or sever his, her or its employment or other relationship with the Company or its successors, assigns or Affiliates, for any other reason or (ii) hire any individual who left the employ of the Company or any of its Affiliates during the immediately preceding one-year period.
C.    Non-solicitation of Investors, Etc.  The Executive agrees that during the period of his employment with the Company (or any Affiliate) and for the two-year period immediately following the date of termination of the Executive’s employment with the Company or any Affiliate for any reason (whether or not such termination occurs during the Term of this Agreement), the Executive shall not, directly or indirectly, solicit or induce (i) any investors, financing sources or capital market intermediaries of the Company or its successors, assigns or Affiliates or (ii) any consultants then under contract to the Company or its successors, assigns or Affiliates, to terminate (or diminish in any material respect) his, her or its relationship with the Company or its successors, assigns or Affiliates, for the purpose of associating with any Competing Business, or otherwise encourage such investors, financing sources, capital market intermediaries or consultants, to terminate (or diminish in any respect) his, her or its relationship with the Company or its successors, assigns or Affiliates, for any other reason.  Nothing in this paragraph applies to those investors, financing sources, capital market intermediaries or consultants who did not conduct business with the Company, or its successors, assigns or Affiliates during the Executive’s employment with, or the period in which Executive held, directly or indirectly, an ownership interest in, the Company or any Affiliate.
D.    Confidentiality.  All books of account, records, systems, correspondence, documents, and any and all other data, in whatever form, concerning or containing any reference to the works and business of the Company or its Affiliates shall belong to the Company and shall be given up to the Company whenever the Company requires the Executive to do so.  The Executive agrees that the Executive shall not at any time during the Executive’s employment or thereafter, without the Company’s prior written consent, disclose to any person (individual or entity) any information or any trade secrets, plans or other information or data, in whatever form, (including, without limitation, (a) any investment, financing or capital-raising strategies and practices, pricing information and methods, training and operational procedures, advertising, marketing, and sales information or methodologies or financial information of the Company or any of its Affiliates, investors, financing sources or capital market intermediaries, including, without limitation, any information relating to the investment performance of any fund or business managed by the Company or any of its Affiliates, and (b) any Proprietary Information (as defined below)), concerning practices, businesses, procedures, systems, plans or policies of the Company or any of its Affiliates (collectively, “Confidential Information”), nor shall the Executive utilize any such Confidential Information in any way or communicate with or contact any such investor, financing source or capital market intermediary, other than in connection with the Executive’s employment by the Company (or any Affiliate). The Executive hereby confirms that all Confidential Information constitutes the Company’s exclusive property, and that all of the restrictions on the Executive’s activities contained in this Agreement and all other 

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nondisclosure policies of the Company are required for the Company’s reasonable protection. Confidential Information shall not include any information that has otherwise been disclosed to the public not in violation of this Agreement or, in the case of disclosure by other Persons, not in violation of any agreements to which they are party. This confidentiality provision shall survive the termination of the Agreement to which it is an exhibit and shall not be limited by any other confidentiality agreements entered into with the Company or any of its Affiliates. Nothing in this Agreement shall be construed to (i) prohibit you from lawfully making reports to, communicating with, or filing a charge or complaint with any government agency or law enforcement entity regarding possible violations of federal law or regulation in accordance with the provisions and rules promulgated under Section 21F of the Securities and Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other express whistleblower protection provisions of state or federal law or regulation, (ii) require notification or prior approval by the Company of any reporting, communicating, or filing described in clause (i) hereof, or (iii) limit your right to receive an award for any reporting, providing any information, or filing described in clause (i) hereof.  
The Executive agrees that the Executive shall promptly disclose to the Company all information and inventions generated, conceived or first reduced to practice by him alone or in conjunction with others, during or after working hours, while in the employ of the Company or while rendering services to the Company’s Affiliates prior to the Effective Date (all of which is collectively referred to herein as “Proprietary Information”); provided, however, that such Proprietary Information shall not include (a) any information that has otherwise been disclosed to the public not in violation of this Agreement and (b) general business knowledge and work skills of the Executive, even if developed or improved by the Executive while in the employ of, or rendering services to, the Company or its Affiliates.  All such Proprietary Information shall be the exclusive property of the Company and is hereby assigned by the Executive to the Company.  The Executive’s obligation to the Company relative to the disclosure of such Proprietary Information shall continue beyond the Executive’s termination of employment and the Executive shall, at the Company’s expense, give the Company all assistance it reasonably requires to perfect, protect and use its right to the Proprietary Information.
E.    Disparaging Comments.  The Executive agrees that during the period of the Executive’s employment with the Company (or any Affiliate) and thereafter, the Executive shall not make any disparaging or defamatory comments regarding the Company or any Affiliate or, after termination of his employment relationship with the Company or any Affiliate, make any comments concerning any aspect of the termination of their relationship.  The obligations of the Executive under this paragraph shall not apply to disclosures required by applicable law, regulation or order of any court or governmental agency.
F.    Continuing Obligations to the Company and its Affiliates. In addition, commencing on the Effective Date, Executive will cooperate in all reasonable respects with the Company and its Affiliates in connection with any and all existing or future litigation, actions or proceedings (whether civil, criminal, administrative, regulatory or otherwise) brought by or against the Company or any of its Affiliates, to the extent the Company reasonably deems Executive’s cooperation necessary.  Executive shall be reimbursed for all out-of-pocket expenses (in accordance with Company policy in effect from time to time) incurred by him as a result of such cooperation.
G.    Acknowledgement.  The Executive agrees and acknowledges that each Restrictive Covenant herein is reasonable as to duration, terms and geographical area and that the same protects the legitimate interests of the Company and its Affiliates, imposes no undue hardship on the Executive, is not injurious to the public, and that any violation of any of these Restrictive Covenants shall be specifically enforceable in any court with jurisdiction upon short notice.  The Executive agrees and acknowledges that a portion of the compensation paid to Executive under the Agreement to which this Exhibit is attached will be paid in consideration of the covenants contained in this Exhibit, the sufficiency of which consideration is hereby acknowledged.  If any provision of this Exhibit as applied to the Executive or to any circumstance is adjudged by a court to be invalid or unenforceable, the same shall in no way affect any other circumstance or the validity or enforceability of any other provision of this Exhibit. If the scope of any such provision, or any part 

10

thereof, is too broad to permit enforcement of such provision to its full extent, the Executive agrees that the court making such determination shall have the power to reduce the duration and/or area of such provision, and/or to delete specific words or phrases, to the extent necessary to permit enforcement, and, in its reduced form, such provision shall then be enforceable and shall be enforced.  The Executive agrees and acknowledges that the breach of this Exhibit will cause irreparable injury to the Company and its Affiliates and upon breach of any provision of this Exhibit, the Company and its Affiliates shall be entitled to injunctive relief, specific performance or other equitable relief; provided, however, that this shall in no way limit any other remedies which the Company and its Affiliates may have (including, without limitation, the right to seek monetary damages).  Each of the covenants in this Exhibit shall be construed as an agreement independent of any other provisions in the Agreement to which it is attached, other than the consideration for such covenant provided in the Agreement.

11Exhibit

EXHIBIT 10.33

AMENDED AND RESTATED
FORTRESS INVESTMENT GROUP LLC
PRINCIPAL COMPENSATION PLAN

		
	1.
	Purposes of the Plan. This Fortress Investment Group LLC Principal Compensation Plan provides for the payment of annual incentive compensation to those Principals of the Company designated for participation in the Plan and is intended to compensate each of such Principals for his services, contributions and leadership provided to Fortress and further align his interests with the interests of the Company’s stockholders. Capitalized terms used but not defined herein have the meanings given to such terms in Annex A hereto.  

		
	2.
	Plan Administration.  

		
	(a)
	Compensation Committee. The Plan shall be administered by the Compensation Committee. The Compensation Committee shall have the power and authority, without limitation: 

		
	(i)
	to construe and interpret the terms and provisions of the Plan and any Award issued under the Plan (and any Award Agreement relating thereto) and to otherwise supervise the administration of the Plan and to exercise all powers and authorities specifically granted under the Plan or necessary or advisable in the administration of the Plan;  

		
	(ii)
	to delegate its authority and responsibilities under the Plan to the Principals Committee and/or members of management, subject to the requirements of applicable law or any stock exchange on which Class A Shares are traded;  

		
	(iii)
	to review and approve all material recommendations, decisions and determinations of the Principals Committee; 

		
	(iv)
	to determine the form of Awards granted under the Plan; 

		
	(v)
	to determine the terms and conditions, not inconsistent with the terms of the Plan, which shall govern all Awards under the Plan (including the amount, manner and time of Payments); 

		
	(vi)
	to determine the total amount and payment of all Awards under the Plan in respect of a particular Fiscal Year; 

		
	(vii)
	to determine the eligibility for participation in the Plan in accordance with Section 3 below;  

		
	(viii)
	to prescribe forms and procedures for purposes of Plan participation and distribution of Awards; and

		
	(ix)
	to adopt rules, regulations and bylaws and to take such actions as it deems necessary or desirable for the proper administration of the Plan.

The powers and authority of the Compensation Committee hereunder shall in all events be subject to the terms of the Plan and the applicable Award Agreement, and the Compensation Committee shall in all events honor such terms to the extent permitted by applicable law.
		
	(b)
	Principals Committee.  The Principals Committee shall make recommendations to the Compensation Committee with respect to the administration of the Plan.  In particular, the Principals Committee shall recommend (i) whether a Participant shall be treated as the CIO or Sponsor for a newly-raised fund or assets (which recommendation shall be made at the time a fund or product is launched) and (ii) interpretations of ambiguous or disputed material terms of the Plan. As a general principle under the Plan, Principals are expected to receive compensation in the same form and on the same schedule (e.g., equity of a public company) as do Fortress employees, subject to tax and other applicable limitations.   

1

		
	(c)
	All decisions made by the Compensation Committee pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, including the Company and the Participants. No member of the Board, the Compensation Committee or the Principals Committee, nor any officer or employee of the Company or any of its Affiliates acting on behalf of the Board, the Compensation Committee or the Principals Committee, shall be personally liable for any action, omission, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board, the Compensation Committee or the Principals Committee and each and any officer or employee of the Company and of any of its Affiliates acting on their behalf shall, to the maximum extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, omission, determination or interpretation.

		
	3.
	Eligibility.  The Participants in the Plan as of November 2, 2016 are set forth in Schedule 1. Additional persons eligible to participate in the Plan shall be determined by the unanimous agreement of the Principals Committee, subject to the approval of the Compensation Committee.  With respect to each Fiscal Year, the persons who shall participate in the Plan for such Fiscal Year shall be determined prior to the end of the immediately preceding Fiscal Year.  The Compensation Committee shall have the authority to remove a Participant from the Plan upon (i) a termination of the Participant’s employment with Fortress for Cause or the earlier of (A) such Participant’s voluntary resignation from Fortress or (B) receipt of notice from such Participant of such Participant’s voluntary resignation or (ii) the unanimous vote of the Principals Committee.  Schedule 1 sets forth the list of eligible Participants for the 2016 Fiscal Year. 

		
	4.
	Awards.  An award under this Plan (an “Award”) may be in such form as is determined by the Compensation Committee, including in the form of cash compensation and/or one or more equity or other economic interests in the Company or one or more Affiliates of the Company (any such equity or economic interest, an “Equity Interest”). Any portion of an Award comprised of an Equity Interest may be structured as a “profits interest,” “capital interest” or other type of interest for federal income tax purposes.  An Award may apply to a single Fiscal Year or multiple Fiscal Years.  An Award shall also indicate for which Hedge Fund(s), PE Fund(s) and/or Castle(s) a Participant will be a CIO or Sponsor.  Each Participant who is granted an Award shall enter into one or more Award Agreements with Fortress, containing such terms and conditions as are not inconsistent with the Plan, as the Compensation Committee shall require.  The provisions of each Award need not be the same with respect to each Participant. The Company shall make reasonable efforts to structure awards in a tax-efficient manner for the Participants, subject to compliance with Code Section 409A and other applicable requirements of the Code.  All obligations in respect of Awards hereunder shall be obligations of Fortress.  Fortress may cause partnership agreements of the Company’s Affiliates to be amended to the extent required or desirable to effectuate the terms of the Plan. 

		
	5.
	Determination of Annual Amount. Subject to the other terms and conditions of the Plan and any Award Agreement, an Award (whether in the form of cash or Equity Interests) will entitle the applicable Participant to a Payment equal to the Annual Amount (as defined below), if positive, in respect of the Fiscal Year to which the Award relates.  

		
	(a)
	Annual Amount.  The “Annual Amount” for a Participant for a particular Fiscal Year shall be equal to the sum of the following:

		
	(i)
	Existing Hedge Fund AUM:  the sum, for each Hedge Fund for which the applicable Participant has served as CIO during the applicable Fiscal Year, of the product of (A) 0.20 times (B) the Promote for the applicable Hedge Fund that is attributable to Existing Hedge Fund AUM for the applicable Fiscal Year; plus

		
	(ii)
	New Hedge Fund AUM:  the sum of:

		
	(A)
	For each Hedge Fund for which the applicable Participant has served as CIO during the applicable Fiscal Year, an amount equal to the product of (1) 0.20 times (2) the NOR for the applicable Hedge Fund that is attributable to New Hedge Fund AUM for the applicable Fiscal Year; plus

		
	(B)
	For Annual Awards relating to 2016 and before, for each Hedge Fund that was Sponsored by the applicable Participant, an amount equal to the product of (1) 0.10 

2

times (2) the NOR for the applicable Hedge Fund that is attributable to New Hedge Fund AUM for the applicable Fiscal Year; plus
		
	(C)
	For Annual Awards relating to 2017 and after, for each Hedge Fund that was Sponsored by the applicable Participant, an amount equal to the product of (1) 0.20 times (2) the NOR for the applicable Hedge Fund that is attributable to New Hedge Fund AUM for the applicable Fiscal Year; plus

		
	(iii)
	New PE Funds:  the sum of:

		
	(A)
	For each New PE Fund for which the applicable Participant has served as CIO during the applicable Fiscal Year, an amount equal to the product of (1) 0.20 times (2) the NOR for the applicable New PE Fund for the applicable Fiscal Year; plus

		
	(B)
	For Annual Awards relating to 2016 and before, for each New PE Fund that was Sponsored by the applicable Participant, an amount equal to the product of (1) 0.10 times (2) the NOR for the applicable New PE Fund for the applicable Fiscal Year; plus

		
	(C) 
	For Annual Awards relating to 2017 and after, for each New PE Fund that was Sponsored by the applicable Participant, an amount equal to the product of (1) 0.20 times (2) the NOR for the applicable New PE Fund for the applicable Fiscal Year; plus

		
	(iv)
	Castles:  the sum of:

		
	(A)
	For each Castle that had raised capital on or prior to January 1, 2012 that was Sponsored by the applicable Participant, an amount equal to the product of (1) 0.20 times (2) the excess, if any, of (x) the NOR for the applicable Castle for the applicable Fiscal Year over (y) the NOR for the applicable Castle for the 2011 Fiscal Year; plus

		
	(B)
	For each Castle that had first raised capital after January 1, 2012 for which the applicable Participant has served as CIO during the applicable Fiscal Year, an amount equal to the product of (1) 0.20 times (2) the NOR for the applicable Castle for the applicable Fiscal Year; plus    

		
	(C)
	For Annual Awards relating to 2016 and before, for each Castle that had first raised capital after January 1, 2012 that was Sponsored by the applicable Participant, an amount equal to the product of (1) 0.10 times (2) the NOR for the applicable Castle for the applicable Fiscal Year; plus

		
	(D)
	For Annual Awards relating to 2017 and after, for each Castle that had first raised capital after January 1, 2012 that was Sponsored by the applicable Participant, an amount equal to the product of (1) 0.20 times (2) the NOR for the applicable Castle for the applicable Fiscal Year.

Any reference to a “sum” or “amount” in this Section 5 may be a positive or negative number.  
		
	(b)
	Shortfall. In the event that the Annual Amount in respect of a Fiscal Year for a Participant is a negative amount (such amount, a “Shortfall Amount”), any future Annual Amount shall be reduced by the Shortfall Amount (and any prior Shortfall Amount that has not been previously recovered pursuant to this Section 5(b)). 

		
	(c)
	Adjustments. In the event that a Participant serves as CIO for less than all of a Fiscal Year (other than in circumstances governed by Section 9 of this Plan) , appropriate adjustments shall be made to this Section 5 to equitably adjust the amount of such Participant’s Annual Amount for the applicable Fiscal Year. 

		
	(d)
	Allocations. The Principals Committee shall determine the principles and methodology for expense and revenue allocations required to determine any Annual Amount (or component thereof) or other allocation described in the immediately following sentence.  For all purposes of this Plan and any 

3

Award Agreement, (i) any allocation of any revenues or expenses of Fortress and/or (ii) any allocation of any Promote, NOR, Trading P/L and/or the calculation of any HF Repayment Obligation in respect of any Hedge Fund that is comprised of Existing Hedge Fund AUM and New Hedge Fund AUM shall, in each case, be initially determined by a committee comprised of two representatives (not including a Participant) from each business unit and the Chief Financial Officer and Controller of the Company, with such determination based on the principles and methodology that have been established by the Principals Committee. The Principals Committee shall review and approve each such determination.
		
	6.
	Determination of Payments.  For each Fiscal Year, the Principals Committee shall recommend to the Compensation Committee the Annual Amount in respect of each Participant and the form of each Participant’s Payment (including any allocations among individual Participants within a business unit) on or prior to January 31st of the Fiscal Year immediately following the Fiscal Year to which the applicable Awards relate.  Mr. Edens shall be responsible for the provision to the Principals Committee of the allocation of amounts among the Participants within the Private Equity business unit, and shall make such provision on or prior to January 15th of the Fiscal Year immediately following the Fiscal Year to which the applicable Awards relate. The Compensation Committee shall act to make a final determination of amount and form of each Participant’s Payment, on the recommendations of the Principals Committee, by no later than February 10th of such Fiscal Year. 

		
	7.
	Form of Payment.  

		
	(a)
	General.  A Payment to a Participant may be made in cash (including cash compensation and cash distributions to a Participant in respect of any Equity Interests held by the Participant), and/or, in the discretion of the Compensation Committee based upon the recommendation of the Principals Committee, Class A shares of the Company or other types of Equity Interests; provided, however, that if the Annual Amounts payable to a Participant (or, in the case of a business unit with multiple Participants, all Participants in such business unit) in respect of a particular Fiscal Year exceeds 10% of the Company’s Distributable Earnings earned from the applicable Participant's (or, if applicable, Participants') business unit for such Fiscal Year (determined without reference to any deductions for amounts to be paid under this Plan for such Fiscal Year), such excess aggregate Annual Amounts in respect of Annual Awards relating to 2017 and later years (and in respect of 2016, to the extent permitted under Code Section 409A) shall be paid to such Participant (or, if applicable, Participants) in the form of grants of Class A Shares. In the case of a business unit with multiple Participants, the foregoing limitation shall be applied to them on a pro rata basis based upon their relative Annual Amounts.

		
	(b)
	Class A Share grants.  The grants of Class A Shares shall be immediately transferable upon issuance, subject to applicable securities laws limitations, if any.    The number of Class A Shares granted shall be determined based upon the average closing price of Class A Shares of the Company over the 20 trading day period preceding the date of Compensation Committee approval of the Annual Amount.

		
	8.
	Timing of Payments.  Subject to Sections 9, 10, 11 and 12, a Payment to a Participant shall generally be made at the same time as payments of other formula-based or profit-sharing compensation payments in respect of the Fiscal Year to which the applicable Payment relates are made to employees of Fortress, but in no event earlier than January 31st or later than March 15th of the Fiscal Year immediately following the Fiscal Year to which the applicable Payment relates.

		
	9.
	Vesting of Awards; Termination of Employment. 

		
	(a)
	Payment in Respect of Hedge Funds and Castles.  Except as provided for in Sections 9(c) and 9(f), a Participant will not be entitled to any Payment in respect of any portion of an Annual Amount determined with reference to Sections 5(a)(i) or (ii) unless the Participant is an employee of Fortress on the date on which any Annual Amount is actually paid to a Participant.  

		
	(b)
	Private Equity.  Except as provided for in this Section and Sections 9(c) and 9(f), a Participant will not be entitled to any Payment in respect of any portion of an Annual Amount determined with reference to Section 5(a)(iii) or Section 5(a)(iv) unless the Participant is an employee of Fortress on 

4

the date on which any Annual Amount is actually paid to a Participant. Subject to Sections 9(c), (d) and (e), the right of a Participant to receive any payment in respect of any portion of Promote granted pursuant to Section 5(a)(iii) or Section 5(a)(iv) shall vest on the same vesting schedule and be subject to the other terms and conditions as are applicable to Fortress employees generally who are granted Promote interests in the PE Fund(s) or Castle to which any such portion relates (other than, subject to Section 10(d), terms and conditions relating to holdback of distributions and the cash collateralization of clawback obligations), or on such other schedule as is approved by the Compensation Committee in its capacity as administrator. Such vesting schedule shall be set forth in a Participant’s Award Agreement and/or the governing documents of any issuer of Equity Interests. 
		
	(c)
	Termination without Cause or Due to Death or Disability.  In the event of a termination of the Participant’s employment by Fortress without Cause or due to death or Disability, provided that the Participant (or his estate, if applicable) executes a general release of claims in the form customarily used by Fortress within forty-five (45) days following such termination and such release becomes irrevocable, (i) a Participant who serves as a CIO or Sponsor of an Existing Hedge Fund, a New Hedge Fund or a Castle shall be entitled to a Payment under the Plan equal to, and payable in the same manner as, the Payment that would have otherwise been made to such Participant in respect of the amounts determined with reference to Sections 5(a)(i), (ii), (iv) and 5(b) for the Fiscal Year in which the Participant was terminated had the Participant’s employment not terminated (and thereafter such Participant shall not be entitled to any further Payments with respect to such Existing Hedge Fund, a New Hedge Fund or a Castle under the Plan or any Award Agreement) and (ii) a Participant who serves as CIO or Sponsor of a New PE Fund or a Castle shall be entitled to Payments with respect to the portion of any Award  that is a Promote and that is vested pursuant to Section 9(b) (with such Payments payable at the same times as they are made to Participants generally under the Plan), provided that this Section 9(c)(ii) shall apply only with respect to Awards (or portions thereof) that do not constitute deferred compensation under Code Section 409A.  For the avoidance of doubt, Invested Amounts shall not be subject to forfeiture pursuant to this Section 9(c).

		
	(d)
	Termination for Cause.  Notwithstanding any other provision of the Plan or an Award Agreement to the contrary, in the event of a termination of a Participant’s employment by Fortress for Cause, the Participant’s rights to all Awards (whether vested or unvested) and Annual Amounts shall be forfeited without compensation as of the date the Participant receives notice of termination from Fortress and such Participant shall have no further rights under the Plan or any Award.  For the avoidance of doubt, Invested Amounts shall not be subject to forfeiture pursuant to this Section 9(d).

		
	(e)
	Voluntary Resignation.  Notwithstanding any other provision of the Plan or an Award Agreement to the contrary, in the event a Participant voluntarily resigns from his or her service to Fortress, the Participant’s rights to all Awards and unpaid Annual Amounts shall be forfeited without compensation as of the date of resignation and such Participant shall have no further rights under the Plan or any Award, except with respect to (i) any interest in a Promote that is vested pursuant to Section 9(b),(ii) any Invested Amounts or (iii) as set forth in Section 9(f). 

		
	(f)
	Retirement and Consultation. At the election of a Participant, the Participant may elect to retire and enter into a consulting agreement of up to three years in duration with Fortress pursuant to which the Participant provides substantive and ongoing services to the Company. During the pendency of the consulting agreement, the Participant shall continue to vest in any RSUs previously granted to him pursuant to this Plan (subject to the Participant’s compliance with the Restricted Covenant Obligations for the pendency of their term), but shall not further vest in any Promote interests or other Equity Interests granted to him hereunder after the date of such retirement. For all other purposes under this Agreement, the date of retirement shall be deemed to be the date of termination or resignation.  

		
	10.
	Certain Clawback and Repayment Obligations. 

		
	(a)
	Clawback Obligation in Respect of PE Funds.  Any Participant that receives a Payment that is comprised, in whole or in part, of an amount described under Section 5(a)(iii) shall be responsible for his pro rata share of any clawback or similar requirement applicable to any Promote paid to Fortress as the general partner of the applicable New PE Fund (or Fortress in respect thereof) (with 

5

respect to any New PE Fund (or Fortress), a “PE Clawback Obligation”).  The terms and conditions of a PE Clawback Obligation are intended to be substantially similar, in all material respects (other than, subject to Section 10(d), with respect to the holdback and cash collateralization of the obligation), to the terms and conditions applicable to Fortress employees who are granted or otherwise receive an interest in the promote or carry of the New PE Fund to which the PE Clawback Obligation relates.  Any PE Clawback Obligation of a Participant shall not be reduced or otherwise limited by the termination of the employment of such Participant with Fortress (and any related forfeiture resulting therefrom).
		
	(b)
	Funding.  A PE Clawback Obligation may be payable in cash and/or Equity Interests  in such proportion between them as shall be determined pursuant to the principles promulgated by the Compensation Committee and/or as may be set forth in a Participant’s Award Agreement. Any ratable portion of a PE Clawback Obligation that relates to Payments made to Participants in unvested RSUs shall not become due and payable until such time as the corresponding RSUs have vested and been delivered, provided that such repayment may in all events be made in cash at the election of the Participant.  

		
	(c)
	Override.  Notwithstanding any other provision of this Plan or an Award Agreement to the contrary, in the event that applicable law or the governing documents of any Hedge Fund or New PE Fund requires (i) a more stringent or burdensome clawback, repayment or similar obligation or (ii) the use of a deferral, escrow, holdback and/or collateral obligation, this Plan and the terms of any Award Agreement shall reflect such obligations and each of them shall be amended to the extent necessary to reflect such obligations.  

		
	11.
	Covenant Collateral. 

		
	(a)
	 An amount equal to 50% of the after-tax portion (determined assuming the Participant pays state and local income taxes at the highest marginal rate of taxation applicable to residents of New York, New York in the applicable Fiscal Year) of each Annual Amount that is paid in cash shall be invested by the Participant receiving Payment of such Annual Amount in one or more Fortress Funds (each such amount, an “Invested Amount”).  Each such amount shall be invested in the Fortress Fund(s) selected by the applicable Participant in his discretion at the earliest time that an appropriate fund is available for such investment (as determined in the reasonable judgment of the Compensation Committee).  In the event that an appropriate fund is not available for investment at the time of receipt of such Payment,  the Participant shall invest the applicable amount in a cash or money market fund that is used by Fortress for the investment of its own cash reserves until such time as the applicable Participant delivers the written direction described in the immediately preceding sentence and such amount shall be deemed to be an Invested Amount for all purposes while invested in such cash or money market account.  Any Invested Amount shall be subject to the terms and conditions generally applicable to investments by Fortress employees in the Fortress Fund(s) in which the Invested Amount is invested, including with respect to payment of fees and the nature and frequency of any redemption rights. At the election of a particular Principal, any amount invested by such Principal in a Fortress managed fund and designated by such Principal as an “Invested Amount” shall be deemed to count toward the investment obligation described in the first sentence of this Section 11(a), and any such amount shall be subject to the security interest described in Section 11(b) below.

		
	(b)
	Each Invested Amount shall secure a Participant’s obligations under the restrictive covenants included within his Employment Agreement or any successor provisions of his Employment Agreement (with respect to a Participant, his “Restrictive Covenant Obligations”) during the Collateral Period for the applicable Invested Amount.  As such, each Invested Amount shall be available to satisfy any judgment or settlement due to Fortress for any breach of a Participant’s Restrictive Covenant Obligations during the applicable Collateral Period.  In the event that there is any claim for any breach of a Participant’s Restrictive Covenant Obligations pending at the expiration of any Collateral Period, any applicable Invested Amount shall not be distributed or paid to the applicable Participant until the final determination or settlement of such claim.  For the avoidance of doubt, no Invested Amount of one 

6

Participant shall be available to satisfy any judgment or settlement resulting from a breach of the Restrictive Covenant Obligations of another Participant. 
		
	(c)
	Fortress shall have a first priority security interest in all Invested Amounts during the applicable Collateral Periods to secure the Restrictive Covenant Obligations.  Upon the request of Fortress, each Participant shall be required to execute and deliver such agreements and other instruments as may be necessary or appropriate to give effect to and maintain such security interest.

		
	(d)
	At the expiration of the Collateral Period with respect to each Invested Amount, the security interest held by Fortress over such Invested Amount shall automatically expire and be of no further effect, except as otherwise expressly set forth in this Plan.

		
	12.
	Set-Off.  Notwithstanding any other provision of this Plan or any Award Agreement to the contrary, to the extent permitted by Code Section 409A, Fortress shall have the right to offset against any amount owed to a Participant under this Plan any amounts that are owed by a Participant to Fortress (including amounts owed under this Plan) at the time of any Payment hereunder. Invested Amounts and FOG Units shall not be subject to the provisions of this Section 12. 

		
	13.
	Amendment and Termination of the Plan.  The Plan shall become effective as of the Effective Date.  The Board may amend, modify, suspend or terminate the Plan or Awards thereunder, in whole or in part, at any time, including adopting amendments deemed necessary or desirable to correct any defect or to supply omitted data or to reconcile any inconsistency in the Plan or in any Award granted hereunder.  At no time before the actual distribution of amounts to Participants under the Plan shall any Participant accrue any vested interest or right whatsoever under the Plan except as otherwise explicitly stated in this Plan. 

		
	14.
	Implementation of the Plan.  This Plan sets forth the material terms and conditions of the subject matter hereof.  Such terms and conditions will be more fully set forth in (i) such principles and policies as may be promulgated by the Compensation Committee and/or Principals Committee from time to time pursuant to Section 2, (ii) each Award Agreement and/or (iii) such other agreements and documents (whether or not referenced in this Plan) as may be necessary or appropriate to give effect to the terms and conditions set forth herein. 

		
	15.
	Withholding.  Distributions pursuant to this Plan shall be subject to any applicable tax withholding requirements (federal, state, local and foreign).

		
	16.
	No Guarantee of Employment.  No statement in this Plan should be construed to grant any employee an employment contract of fixed duration or any other contractual rights, nor should this Plan be interpreted as creating an implied or an expressed contract of employment or any other contractual rights between the Company and its employees.  

		
	17.
	Successors.  All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company. 

		
	18.
	Nonassignment.  Except as may be determined by the Compensation Committee or set forth in the applicable Award Agreement, the rights of a Participant under this Plan shall not be assignable or transferable by the Participant except by will or the laws of intestacy. 

		
	19.
	Right to Receive Payment.  Except as otherwise provided in the applicable Award Agreement, each Award under the Plan shall be paid solely from the general assets of Fortress.  Nothing in this Plan shall be construed to create a trust or to establish or evidence any Participant’s claim of any right to Payment of an Award other than as an unsecured general creditor with respect to any Payment to which he or she may be entitled.

		
	20.
	Governing Law.  The Plan shall be governed by the laws of the State of Delaware. 

		
	21.
	Section 409A.  This Plan and all Awards are intended to comply with Code Section 409A, to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Plan and all Awards hereunder shall be interpreted and be administered to be in compliance therewith.  Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Code Section 409A, a Participant shall not be considered to have terminated employment with the Company for 

7

purposes of this Plan, and no Payment shall be due to a Participant under this Plan, until such Participant would be considered to have incurred a “separation from service” from the Company within the meaning of Code Section 409A.  Any Payments described in this Plan that are due within the “short-term deferral period” as defined in Code Section 409A shall not be treated as deferred compensation unless applicable law requires otherwise.  Each amount to be paid or benefit to be provided to a Participant pursuant to this Plan that constitutes deferred compensation subject to Code Section 409A shall be construed as a separate identified payment for purposes of Code Section 409A.  Notwithstanding anything to the contrary in this Plan, to the extent that any Payments to be made upon a Participant’s separation from service would result in the imposition of any individual penalty tax imposed under Code Section 409A, the Payment shall instead be made on the first business day after the earlier of (i) the date that is six (6) months following such separation from service and (ii) such Participant’s death.
		
	22.
	Books and Records. For purposes of resolving accounting and record-keeping questions under the Plan, the books and records of the Company will govern in the event of a conflict between those records and those of any Hedge Fund, PE Fund or Castle (as applicable).  Adjustments from one Fiscal Year to the next necessitated by audit-related or other adjustments to the books and records of any Hedge Fund, PE Fund or Castle (as applicable) after the Payment of any Annual Amount for a particular Fiscal Year will be made and paid or deducted at the time Payments are made under the Plan with respect to the Fiscal Year following the Fiscal Year of the adjustment.

8

Annex A
Defined Terms
		
	(a)
	“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with the Person in question. As used herein, the term “Control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

		
	(b)
	“AUM” means the “Management Fee Paying Assets Under Management” or “AUM” as defined in the most recent quarterly or annual report filed by the Company with the SEC.

		
	(c)
	“Award” shall have the meaning set forth in Section 4 hereof. 

		
	(d)
	“Award Agreement” means any written agreement, contract, instrument and/or document evidencing any Award (or portion thereof) and providing the terms and conditions of such Award.

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

		
	(f)
	“Castles” means any (i) publicly traded alternative investment vehicle or (ii) company-like vehicle, in either case directly managed by Fortress, including the entities noted as “Castles” on Schedule 2 hereto.

		
	(g)
	“Cause” shall have the meaning set forth in the applicable Participant’s Employment Agreement.  

		
	(h)
	“CIO” means, with respect to a particular Hedge Fund or PE Fund, the chief investment officer (or person serving in a comparable capacity) of such fund. For any Hedge Fund, PE Fund or Castle, the CIO, if any, thereof is noted on Schedule 2 hereto. A fund may have more than one person acting as the CIO, and the determination that a Participant functions as the CIO (or one of the CIO’s) of a fund may be made based upon such factors as the Compensation Committee deems appropriate, including but not limited to the degree of involvement of a Participant in the fund’s investment process and the allocation of investments across the fund and other funds for which the Participant serves as the CIO. 

		
	(i)
	“Class A Shares” means Class A Shares of the Company. 

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

		
	(k)
	“Collateral Period” means, with respect to a particular Invested Amount, the period beginning either (i) January 1 of the Fiscal Year such amount was paid to the Participant or (ii) on the date that such an amount is so designated by a Principal, and, in either case of (i) or (ii), ending on the eighteen month anniversary of such date.

		
	(l)
	“Company” means Fortress Investment Group LLC. 

		
	(m)
	“Compensation Committee” means the Compensation Committee of the Board.

		
	(n)
	“Disability” shall have the meaning set forth in the applicable Participant’s Employment Agreement; provided, however, that, to the extent required in order to avoid accelerated taxation and/or tax penalties under Code Section 409A, a Participant shall not be considered to have become “disabled” for purposes of this Plan until such Participant would be considered to be “disabled” within the meaning of Code Section 409A.   

		
	(o)
	“Distributable Earnings” means, with respect to a Fiscal Year, the Company’s pre-tax fund management distributable earnings as reported in the Company’s Form 10-K for such Fiscal Year.

		
	(p)
	“Effective Date” means January 1, 2012.

		
	(q)
	“Employment Agreement” means, for a particular Participant, that certain Employment, Non-Competition and Non-Solicitation Agreement between the applicable Participant and the Company dated as of August [     ], 2011, as amended from time to time, or any successor agreement.

9

		
	(r)
	“Excluded Assets” means (i), any fund or account managed by Logan Circle Partners, (ii) Fortress Partners Funds and (iii) any balance sheet investments of Fortress, including, in each case the funds, accounts and investments noted as an “Excluded Fund / Account” on Schedule 2 hereto.

		
	(s)
	“Existing Hedge Fund” means a Hedge Fund noted as an “Existing Hedge Fund” on Schedule 2 hereto.

		
	(t)
	“Existing Hedge Fund AUM” means the AUM of an Existing Hedge Fund up to the amount of such AUM reported in the December 31, 2011 Report on Form 10-K of Fortress (the “10-K”), adjusted for redemptions from such fund payable on or before December 31, 2010.  To the extent that the AUM of such a Hedge Fund increases beyond the amount reported in the 10-K (as adjusted), such incremental increased amount shall be treated as New Hedge Fund AUM. The measurement of New Hedge Fund AUM (if any) in an Existing Hedge Fund shall occur each time that promote is clipped in such fund. 

		
	(u)
	“Existing PE Fund” means a PE Fund noted as an “Existing PE Fund” on Schedule 2 hereto.

		
	(v)
	“Fiscal Year” means a fiscal year of the Company. 

		
	(w)
	“FOG” means Fortress Operating Group.

		
	(x)
	“FOG Unit” means a unit in the Fortress Operating Group, which represents one equity interest in each of the entities that comprise the Fortress Operating Group.

		
	(y)
	“Fortress” means, collectively, this Company and its controlled Affiliates.

		
	(z)
	“Fortress Fund” means any fund that is managed by Fortress that is determined by the Compensation Committee to be available for investment by a Participant for purposes of Section 11.

		
	(aa)
	“Fortress Operating Group” shall have the meaning assigned to it in the LLC Agreement.  

		
	(ab)
	“Hedge Fund” means (a) any fund that is an unregistered, open-ended fund that provides for periodic, discretionary redemption rights for an investor that is reported as a hedge fund as part of Fortress’s financial statements or other public reports and (b) any open-ended managed account or separate account that provides for periodic, discretionary redemption rights for a client and is managed by Fortress in a manner similar to a fund described in the immediately preceding clause (a), including, in each case, the funds and accounts noted as “Existing Hedge Funds” and “Hedge Funds Currently in Formation Subject to the Plan” on Schedule 2 hereto.  Notwithstanding the foregoing, a Hedge Fund shall not include any Excluded Assets or Castles.  

		
	(ac)
	“LLC Agreement” means the Amended and Restated Limited Liability Company Agreement of the Company, as amended from time to time.

		
	(ad)
	“New Hedge Fund AUM” means the AUM of any Hedge Fund other than Existing Hedge Fund AUM and Excluded Assets.  

		
	(ae)
	“New PE Fund” means a PE Fund that holds a final closing after January 1, 2012.  For the avoidance of doubt, no Existing PE Fund shall be a New PE Fund.  

		
	(af)
	“NOR” means, in all cases applying the principles used for determining “fund management distributable earnings” of Fortress as disclosed by Fortress on its financial statements publicly filed with the SEC, with respect to a particular Hedge Fund, PE Fund or Castle (as applicable) for the applicable Fiscal Year, (a) the amount of the net management fees plus the amount of net incentive fees actually received by Fortress as reflected on Fortress internal management accounts in respect of the applicable Hedge Fund, PE Fund or Castle with respect to the applicable Fiscal Year (in each case, net of rebates thereof, if any, with respect to investments by Fortress or its affiliates and revenue sharing arrangements), minus (b) the sum of (i) the applicable fund’s allocable share of the costs and expenses of Fortress related to, or incurred for the benefit of, the applicable Hedge Fund, PE Fund or Castle, including, but not limited to, (A) payroll costs (including salary, benefits and discretionary bonuses), (B) direct expenses (including travel and entertainment expenses and marketing), (C) overhead expenses (including rent), (D) other operating expenses (including reserves), (E) corporate 

10

overhead (including corporate functions and the “capital formation group”), (F) fixed asset depreciation and (G) payments to employees of Fortress and its Affiliates and third parties under profit-sharing arrangements and (ii) any taxes (including payroll and employment taxes, but for the avoidance of doubt, excluding any income taxes payable by Fortress) payable in respect of the amounts set forth in clause (a) or clause (b) above with respect to the applicable Fiscal Year.  For the avoidance of doubt, (i) the NOR may be negative for a Fiscal Year and (ii) clawback obligations on funds other than New PE AUM shall not be included within the NOR calculation.
		
	(ag)
	“Participant” means a Principal of the Company selected by the Principals Committee and approved by the Compensation Committee in accordance with Section 3 hereof.

		
	(ah)
	“Payment” means, with respect to a particular Annual Amount, the amount received by a Participant in satisfaction of the applicable Annual Amount, whether in cash (including cash compensation and cash distributions to a Participant in respect of any Equity Interests held by the applicable Participant), RSUs, Class A Shares or other consideration. Payment does not include distributions made out of Invested Amounts. 

		
	(ai)
	“PE Fund” means (a) any fund that is a closed-end fund or account with no discretionary redemption rights for an investor (other than in certain limited circumstances) that is reported as a private equity fund as part of Fortress’s financial statements or other public reports and (b) any closed-ended managed account or separate account with no discretionary redemption rights for a client (other than in certain limited circumstances) that is managed in a similar manner to a fund described in the immediately preceding clause (a), including, in each case, the funds and accounts listed noted as “Existing PE Funds” and “PE Funds Currently in Formation Subject to the Plan” on Schedule 2 hereto.  Notwithstanding the foregoing, a PE Fund shall not include any Excluded Assets or Castles.  

		
	(aj)
	“Person” means any individual, partnership, limited liability company, corporation, trust or other association or entity.

		
	(ak)
	“Plan” means this Fortress Investment Group LLC Principal Compensation Plan, as may be amended or restated from time to time. 

		
	(al)
	“Principals” means “principals” as defined in the most recent annual proxy statement filed by the Company with the SEC.

		
	(am)
	“Principals Committee” means the committee that may assist in the administration of the Plan as described in Section 2 hereof. The Principals Committee is comprised of Messrs. Wesley R. Edens, Peter L. Briger, Jr. and Randal A. Nardone as of November 4, 2016. The Compensation Committee shall be responsible for determining whether the replacement of a member of the Principals Committee is necessary in the event of the Death, Disability, termination or resignation of any member of the Principals Committee.  In determining a possible replacement, the Compensation Committee shall ensure that each business unit (i.e., PE and Credit) shall always maintain at least one representative on the Principals Committee.

		
	(an)
	“Promote” means, (i) with respect to Existing Hedge Fund AUM for the applicable Fiscal Year, the gross promote that is paid to Fortress with respect to such Existing Hedge Fund AUM in respect of such Fiscal Year less any payments to third parties and employees under profit-sharing arrangements (i.e., EWYK or DCP deals) and (ii) with respect to a particular PE Fund or Castle for the applicable Fiscal Year, the gross promote or similar amount (such as an equity interest) that is paid to Fortress by the applicable PE Fund or Castle in respect of such Fiscal Year less any payments of such promote or similar amount that is calculated by reference to such promote or similar amount to third parties and employees.

		
	(ao)
	“RSUs” means restricted share units of the Company granted pursuant to the Amended and Restated Fortress Investment Group LLC 2007 Omnibus Equity Incentive Plan, as amended from time to time, or a successor plan.

		
	(ap)
	“SEC” means the U.S. Securities and Exchange Commission. 

11

		
	(aq)
	“Sponsor” means the Participant with respect to any Hedge Fund or PE Fund that is raised, in whole or in part, by making use of such Participant’s relationships, investment track record, personal reputation and/or other individual attributes that, individually or in the aggregate, provide a substantial and necessary contribution to the success of the capital raise of the particular Hedge Fund or PE Fund. For any Hedge Fund, PE Fund or Castle in existence on the date hereof, any Sponsor thereof is noted on Schedule 2 hereto. Notwithstanding any other provision of this Plan to the contrary, no Hedge Fund or PE Fund for which a Participant serves as CIO shall also be deemed to be Sponsored by such Participant.

12

Schedule 1

Wesley R. Edens
Peter L. Briger, Jr. 
Randal A. Nardone

13

Schedule 2

See attached. 

14

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