Document:

Exhibit
10.5

FORTRESS INVESTMENT GROUP LLC
EMPLOYMENT,
NON-COMPETITION AND NON-SOLICITATION AGREEMENT

THIS
EMPLOYMENT, NON-COMPETITION AND NON-SOLICITATION AGREEMENT
(‘‘Agreement’’) is made and entered into as of
the 17th day of January, 2007, by and between Fortress
Investment Group LLC, a Delaware limited liability company (the
‘‘Company’’), and Wesley R. Edens
(‘‘Executive’’), and only with respect to
Section 1(b) hereof, Fortress Investment Group Holdings LLC, a Delaware
limited liability corporation (the ‘‘Parent’’).
Where the context permits, references to ‘‘the
Company’’ shall include the Company and any successor of
the Company. In connection with the anticipated initial public offering
of Class A shares of the Parent (the
‘‘Offering’’), it is expected that the Parent
will be renamed as ‘‘Fortress Investment Group
LLC’’ and that the Company will be renamed as
‘‘FIG LLC’’.

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 the date hereof (which shall be the ‘‘Effective
Date’’ of this Agreement), Executive shall be employed by
the Company in the capacity of its Chairman of the Board and Chief
Executive Officer; 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 Parent’s Board of Directors (the ‘‘Parent
Board’’). Notwithstanding the foregoing, nothing herein
shall prohibit Executive from (i) subject to prior approval of the
Parent 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 with the performance of
the Executive’s duties hereunder. The Company acknowledges and
approves the current activities of the Executive.

(b)    As to Affiliates.    Parent and
Company agree that the Executive shall report directly to the Parent
Board. Parent agrees that (i) during the Term, as defined below
(beginning at or about the date of the Offering with respect to
entities created in connection with the Offering), the Executive shall
serve as an officer of 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 and (ii) Parent shall take, or cause to be
taken, such actions as are necessary or appropriate to provide for such
service.

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
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 later of the Effective Date and the effective date
of any Offering which occurs within one year of the date hereof. 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 such
installments as the Company pays its similarly placed employees (but
not less frequently than each calendar month), subject to usual and
customary deductions for withholding taxes and similar charges, and
customary employee contributions to the health, welfare and retirement
programs in which Executive is enrolled from time to time. 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.    All taxable compensation payable to
Executive pursuant to this Section 3 or otherwise pursuant to this
Agreement shall be subject to customary withholding taxes and such
other excise or employment taxes as are required under Federal law or
the applicable law of any state or governmental body to be collected
with respect to compensation paid by the Company to an
employee.

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
starting with 2007, 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.    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.

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, (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 

2

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’’)
and his receipt of the Accrued Benefits shall be subject to his
providing the Company with a signed release of claims in a form adopted
by the Board from time to
time.

(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, upon Executive’s providing the
Company with a signed release of claims in a form adopted by the Board
from time to time: (i) the Accrued Benefits, and (ii) a
lump sum separation payment equal to three (3) times the
Executive’s then-current Base Salary. 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, subject to the
Executive (or Executive’s estate, as applicable) providing the
Company with a signed release of claims in a form adopted by the Board
from time to
time.

(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

(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 

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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 of
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.

(f)    Section
409A.    To the extent required to comply with Section 409A of
the Code, as determined by Executive’s counsel, if requested by
the Executive, one or more payments under this Section 5 shall be
delayed to the six-month anniversary of the date of Executive’s
separation from service, within the meaning of Section 409A of the
Code.

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 telecopy or telex), 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.

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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 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 exhibit,
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. Notwithstanding the immediately preceding
sentence, this Agreement does not supersede or preempt other agreements
to which the Executive may be, or may become, a party in connection
with the Offering, including, without limitation, agreements described
in the registration statement for the Offering as the shareholders
agreement and the agreement among
principals.

(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 Delaware
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.

5

(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 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,
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 Parent 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 Parent 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.

6

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.

		FORTRESS INVESTMENT GROUP
LLC

		By: /s/ Randal A.
Nardone                        

      Name: Randal A. Nardone
      Title: Chief
Operating Officer

		/s/ Wesley R.
Edens                                    

WESLEY
R. EDENS
Chairman of the Board and
 Chief Executive
Officer

Only with respect to Section 1(b)
hereof:

FORTRESS INVESTMENT GROUP HOLDINGS
LLC

By: /s/ Randal A.
Nardone                                        

      Name: Randal A. Nardone
      Title: Chief
Operating Officer

Signature Page for Wesley R. Edens
Employment Agreement

7

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, in preparation for the Offering,
(iii) the Restrictive Covenants are an essential part of the
Company’s preparation for the Offering, (iv) he has been fully
advised by counsel in connection with the negotiation of this Agreement
and the Restrictive Covenants, (v) 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 the Offering and
this Agreement, (vi) 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
Offering 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, and (vii) neither the
transactions identified on Exhibit B hereto nor the Offering would
proceed without the benefit of this Agreement and each 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 

8

alternative 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 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 

9

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.

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 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 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 upon
breach of any provision of this Exhibit, the Company 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 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.

10

Exhibit
B

Transactions contemplated in the Securities
Purchase Agreement by and among Peter Briger, Jr., Wesley Edens, Robert
Kauffman, Randal Nardone, Michael Novogratz and Nomura Investment
Managers U.S.A., Inc. dated as of December  18,
2006.

11Exhibit
10.6

FORTRESS INVESTMENT GROUP LLC
EMPLOYMENT,
NON-COMPETITION AND NON-SOLICITATION AGREEMENT

THIS
EMPLOYMENT, NON-COMPETITION AND NON-SOLICITATION AGREEMENT
(‘‘Agreement’’) is made and entered into as
of the 17th day of January, 2007, by and between Fortress
Investment Group LLC, a Delaware limited liability company (the
‘‘Company’’), and Randal A. Nardone
(‘‘Executive’’), and only with respect to
Section 1(b) hereof, Fortress Investment Group Holdings LLC, a Delaware
limited liability corporation (the
‘‘Parent’’). Where the context permits,
references to ‘‘the Company’’ shall include
the Company and any successor of the Company. In connection with the
anticipated initial public offering of Class A shares of the Parent
(the ‘‘Offering’’), it is expected that the
Parent will be renamed as ‘‘Fortress Investment Group
LLC’’ and that the Company will be renamed as
‘‘FIG LLC’’.

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 the
date hereof (which shall be the ‘‘Effective
Date’’ of this Agreement), Executive shall be employed by
the Company in the capacity of its Chief Operating Officer; 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 Parent’s Board of Directors
(the ‘‘Parent Board’’). Notwithstanding the
foregoing, nothing herein shall prohibit Executive from (i) subject to
prior approval of the Parent 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 with the
performance of the Executive’s duties hereunder. The Company
acknowledges and approves the current activities of the Executive.

(b)    As to Affiliates.    Parent and Company agree
that the Executive shall report directly to the Parent Board. Parent
agrees that (i) during the Term, as defined below (beginning at or
about the date of the Offering with respect to entities created in
connection with the Offering), the Executive shall serve as an officer
of 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 and (ii) Parent shall take, or cause to be taken, such actions
as are necessary or appropriate to provide for such
service.

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 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

1

Effective Date and end on the fifth
anniversary of the later of the Effective Date and the effective date
of any Offering which occurs within one year of the date hereof. 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 such
installments as the Company pays its similarly placed employees (but
not less frequently than each calendar month), subject to usual and
customary deductions for withholding taxes and similar charges, and
customary employee contributions to the health, welfare and retirement
programs in which Executive is enrolled from time to time. 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.    All taxable
compensation payable to Executive pursuant to this Section 3 or
otherwise pursuant to this Agreement shall be subject to customary
withholding taxes and such other excise or employment taxes as are
required under Federal law or the applicable law of any state or
governmental body to be collected with respect to compensation paid by
the Company to an employee.

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
starting with 2007, 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.    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.

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, (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 

2

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’’) and his receipt of the Accrued Benefits shall
be subject to his providing the Company with a signed release of claims
in a form adopted by the Board from time to
time.

(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, upon Executive’s providing the
Company with a signed release of claims in a form adopted by the Board
from time to time: (i) the Accrued Benefits, and (ii) a
lump sum separation payment equal to three (3) times the
Executive’s then-current Base Salary. 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,
subject to the Executive (or Executive’s estate, as applicable)
providing the Company with a signed release of claims in a form adopted
by the Board from time to
time.

(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

(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 

3

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 of
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.

(f)    Section 409A.    To the
extent required to comply with Section 409A of the Code, as determined
by Executive’s counsel, if requested by the Executive, one or
more payments under this Section 5 shall be delayed to the six-month
anniversary of the date of Executive’s separation from service,
within the meaning of Section 409A of the
Code.

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 telecopy or telex), 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.

4

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 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 exhibit,
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. Notwithstanding the immediately preceding
sentence, this Agreement does not supersede or preempt other agreements
to which the Executive may be, or may become, a party in connection
with the Offering, including, without limitation, agreements described
in the registration statement for the Offering as the shareholders
agreement and the agreement among
principals.

(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 Delaware 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.

5

(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 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,
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 Parent 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 Parent 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.

6

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.

							
	 			FORTRESS
INVESTMENT GROUP
LLC
	 			By:			/s/
Wesley R. Edens
	 			 			Name: Wesley R.
Edens
	 			 			Title: Chief Executive
Officer
	 			/s/
Randal A. Nardone
	 			RANDAL A.
NARDONE
	 			Chief Operating
Officer
	

Only with respect to Section 1(b)
hereof:

FORTRESS INVESTMENT GROUP HOLDINGS
LLC

		
	By: 	/s/ Wesley R.
Edens                                                    

Name: Wesley R. Edens
Title: Chief Executive
Officer

Signature Page for Randal A. Nardone Employment
Agreement

7

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, in preparation for
the Offering, (iii) the Restrictive Covenants are an essential part of
the Company’s preparation for the Offering, (iv) he has been
fully advised by counsel in connection with the negotiation of this
Agreement and the Restrictive Covenants, (v) 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 the Offering
and this Agreement, (vi)  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 Offering 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, and (vii)
neither the transactions identified on Exhibit B hereto nor the
Offering would proceed without the benefit of this Agreement and each
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 

8

alternative 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 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 

9

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.

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 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 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 upon
breach of any provision of this Exhibit, the Company 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 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.

10

Exhibit
B

Transactions contemplated in the Securities
Purchase Agreement by and among Peter Briger, Jr., Wesley Edens, Robert
Kauffman, Randal Nardone, Michael Novogratz and Nomura Investment
Managers U.S.A., Inc. dated as of December  18,
2006.

11

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