Document:

Exhibit

Exhibit 10.3

EXECUTION VERSION

MANAGEMENT SERVICES AGREEMENT
THIS MANAGEMENT SERVICES AGREEMENT (this “Agreement”), dated as of this 31st day of January, 2018, is made and entered into by and among N1 Liquidating Trust, a Maryland statutory trust (the “Trust”), N1 Hendon Holdings, LLC, a Delaware limited liability company (“Holdco”), and CNI NSI Advisors, LLC, a Delaware limited liability company.
RECITALS
WHEREAS, the board of directors of NorthStar Real Estate Income Trust Inc., a Maryland corporation (“NorthStar I”), and the stockholders of NorthStar I have approved the merger (the “NorthStar I Merger”) of NorthStar I with and into Colony NorthStar Credit Real Estate, Inc., a Maryland corporation (“CLNC”), and the other transactions contemplated by the Amended and Restated Master Combination Agreement, dated as of November 20, 2017 (the “Combination Agreement”), by and among NorthStar I, NorthStar Real Estate Income Trust Operating Partnership, LP, a Delaware limited partnership and the operating partnership of NorthStar I (“NorthStar I OP”), Colony Capital Operating Company, LLC (“CLNS OP”), a Delaware limited liability company and the operating company of Colony NorthStar, Inc., a Maryland corporation, NRF RED REIT Corp., a Maryland corporation and an indirect subsidiary of CLNS OP, NorthStar Real Estate Income II, Inc., a Maryland corporation (“NorthStar II”), NorthStar Real Estate Income Operating Partnership II, LP, a Delaware limited partnership and the operating partnership of NorthStar II, CLNC, and Credit RE Operating Company, LLC, a Delaware limited liability company and wholly owned subsidiary of CLNC, which other transactions include a plan for the distribution to the stockholders of NorthStar I of the Excluded Asset (as defined below), in accordance with Maryland law (the “Plan”), prior to the NorthStar I Merger;
WHEREAS, the Plan contemplates that prior to consummation of the NorthStar I Merger, NorthStar I OP will transfer, or cause to be transferred, the Excluded Asset to a limited liability company formed to hold, service and receive the proceeds of any sale of the Excluded Asset;
WHEREAS, Holdco was formed as a subsidiary of NorthStar I pursuant to the Delaware Limited Liability Company Act, as amended, by the filing of a Certificate of Formation with the Secretary of State of the State of Delaware on January 25, 2018, in order to serve as such limited liability company;
WHEREAS, in accordance with the Plan, NorthStar I OP has caused the transfer of the Excluded Asset to Holdco;
WHEREAS, CFI Hendon Holdings, LLC (including any of its assignees or successors, the “Senior Interest Holder”) and Holdco have entered into that certain Participation Agreement, dated as of January 31, 2018, by and among the Senior Interest Holder and Holdco (as may be amended, restated, revised or supplemented from time to time, the “Participation Agreement”), pursuant to which (i) the Senior Interest Holder has purchased the Senior Participation Interest (as defined below) and (ii) Holdco has retained the Retained Asset (as defined below);
WHEREAS, the Trust was formed on January 5, 2018 by filing a Certificate of Trust with the State Department of Assessments and Taxation of Maryland;
WHEREAS, in accordance with the Plan, NorthStar I has entered into an Agreement and Declaration of Trust, dated as of January 31, 2018 (the “Trust Agreement”), with the trustees of the Liquidating Trust named therein (the “Trustees”);
WHEREAS, concurrently with the execution of this Agreement, NorthStar I is transferring all of its ownership interests in Holdco to the Trust;
WHEREAS, Northstar I intends to cause the units of beneficial interest in the Trust (“Units”) to be distributed to the stockholders of NorthStar I prior to the effective time of the NorthStar I Merger;
WHEREAS, under the Trust Agreement, the Trustees shall administer the Trust in order to hold and ultimately dispose of the Retained Asset and, upon satisfaction of all related liabilities and obligations, to cause the residue of the proceeds of such disposition to be distributed to holders of Units in accordance with the terms thereof;

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WHEREAS, following the transfer by NorthStar I of all of its ownership interests in Holdco to the Trust, the Trust will be the managing member of Holdco and will conduct all its business and hold its ownership interest in the Retained Asset through Holdco or other Trust Subsidiaries (as defined below);
WHEREAS, the Trust and Holdco desire to avail themselves of the experience, sources of information, advice, assistance and certain facilities of the Advisor (as defined below) and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of, the Trustees, as provided herein; and
WHEREAS, the Advisor (as defined below) is willing to undertake to render such services, subject to the supervision of the Trustees, on the terms and conditions hereinafter set forth.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and promises contained herein, the receipt and sufficiency of which being hereby acknowledged, the parties hereto, intending to be legally bound, do hereby agree as follows:
1.    DEFINITIONS.  Unless otherwise expressly stated, as used herein, the following terms shall have the following meanings:
“Advisor” shall mean CNI NSI Advisors, LLC, a Delaware limited liability company, any successor advisor to the Trust, Holdco or any person or entity to which CNI NSI Advisors, LLC or any successor advisor subcontracts substantially all of its functions. Notwithstanding the forgoing, a Person hired or retained by CNI NSI Advisors, LLC to perform asset, property or securities management and related services for the Trust or Holdco that is not hired or retained to perform substantially all of the functions of CNI NSI Advisors, LLC with respect to the Trust or Holdco as a whole shall not be deemed to be an Advisor.
“Advisor Covered Person” shall have the meaning set forth in Section 16(a) of this Agreement.
“Affiliate” or “Affiliated” shall mean, with respect to any Person, any Person directly or indirectly controlling, controlled by or under common control with such other Person. As used herein, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such entity, whether through ownership of voting securities or other interests, by contract or otherwise.
“Agreement” shall have the meaning set forth in the preamble of this Agreement.
“Board of Trustees” shall refer to the persons holding such office, as of any particular time, under the Trust Agreement of the Trust, whether they be Trustees named therein or additional or successor Trustees.
“Cause” shall mean, with respect to the termination of this Agreement, fraud, criminal conduct or willful misconduct by the Trust, Holdco or the Advisor, as applicable, or a material breach of this Agreement by the Trust, Holdco or the Advisor, as applicable, which has not been cured within thirty (30) days following the delivery by the non-breaching party to the breaching party of notice of such breach.
“CLNC” shall have the meaning set forth in the recitals to this Agreement.
“CLNS OP” shall have the meaning set forth in the recitals to this Agreement.
“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision of the Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.
“Combination Agreement” shall have the meaning set forth in the recitals to this Agreement.

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 “Disposition” shall mean a sale of the Retained Asset (subject to the terms and conditions of the Participation Agreement).
“Distributions” shall mean any distributions of money or other property by the Trust to Unitholders, including, but not limited to, distributions that may constitute a return of capital for federal income tax purposes.
“Excluded Asset” means the asset described in Exhibit A hereto.
“GAAP” shall mean generally accepted accounting principles as in effect in the United States of America from time to time.
“Holdco” shall have the meaning set forth in the preamble of this Agreement.
“Holdco LLC Agreement” shall mean that certain Amended and Restated Limited Liability Company Agreement of N1 Hendon Holdings, LLC, dated as of January 31, 2018, as may be amended from time to time.
“Indemnified Party” shall have the meaning set forth in Section 16(b) of this Agreement.
“Indemnifying Party” shall have the meaning set forth in Section 16(c) of this Agreement.
“Independent Trustees” shall have the meaning set forth in the Trust Agreement.
“Losses” shall have the meaning set forth in Section 16(a) of this Agreement.
“Management Fee” shall mean a fee paid to the Advisor as compensation for services rendered in connection with the management and Disposition of the Trust’s assets. The Management Fee shall consist of a monthly fee equal to one-twelfth of 1.25% of the fair market value of the Trust’s net assets.
“NorthStar I” shall have the meaning set forth in the recitals to this Agreement.
“NorthStar I Merger” shall have the meaning set forth in the recitals to this Agreement.
“NorthStar I OP” shall have the meaning set forth in the recitals to this Agreement.
“NorthStar II” shall have the meaning set forth in the recitals to this Agreement.
“Participation Agreement” shall have the meaning set forth in the recitals to this Agreement.
“Person” shall mean an individual, corporation, partnership, trust, joint venture, limited liability company or other entity.
“Plan” shall have the meaning set forth in the recitals to this Agreement.
“Retained Asset” shall mean the “Junior Participation Interest” with respect to the Excluded Asset, as such term is defined in the Participation Agreement.
“Senior Interest Holder” shall have the meaning set forth in the recitals to this Agreement.
“Senior Participation Interest” shall mean the “Senior Participation Interest” with respect to the Excluded Asset, as such term is defined in the Participation Agreement.
“Termination Date” shall mean the date of termination of this Agreement.
“Trust” shall have the meaning set forth in the preamble of this Agreement.
“Trust Agreement” shall have the meaning set forth in the recitals to this Agreement.

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“Trust Covered Person” shall have the meaning set forth in Section 16(b) of this Agreement.
“Trust Subsidiary” shall mean (i) Holdco and (ii) any corporation, partnership, limited liability company, joint venture, business trust, real estate investment trust or other organization, whether incorporated or unincorporated, or other legal entity directly or indirectly owned by Holdco.
“Trustee” shall mean a member of the Board of Trustees of the Trust.
“Units” shall have the meaning set forth in the recitals to this Agreement.
“Unitholders” shall mean the holders of the Units.
2.    APPOINTMENT.  The Trust and Holdco hereby appoint the Advisor to serve as their advisor on the terms and conditions set forth in this Agreement, and the Advisor hereby accepts such appointment.
3.    DUTIES OF THE ADVISOR.  The Advisor undertakes to use its commercially reasonable efforts to provide management, sale, disposition and/or liquidation services with respect to the Retained Asset, and to provide administrative services to the Trust and any Trust Subsidiaries, as determined and adopted from time to time by the Board of Trustees. In performance of this undertaking, subject to the supervision of the Board of Trustees and consistent with the provisions of the Trust Agreement and the Holdco LLC Agreement, and subject to the condition that any investment advisory services provided with respect to securities shall be provided by a registered investment adviser, the Advisor shall, either directly or by engaging an Affiliated or non-Affiliated Person:
(a)    provide the daily management for the Trust and the Trust Subsidiaries and perform and supervise the various administrative functions reasonably necessary for the management of the Trust and the Trust Subsidiaries, including, without limitation: (i) provide or arrange for administrative services and items, legal and other services, office space, office furnishings, personnel and other items necessary and incidental to the Trust’s and the Trust Subsidiaries’ business and operations; (ii) maintain accounting data and any other information requested concerning the activities of the Trust and the Trust Subsidiaries as shall be required to prepare and to file any required periodic financial reports with the Securities and Exchange Commission and any other regulatory agency, including, without limitation, annual financial statements; (iii) oversee tax and compliance services and risk management services and coordinate with appropriate third parties, including, without limitation, independent accountants and other consultants, on related tax matters; (iv) manage and coordinate with the transfer agent the payment of Distributions to Unitholders; (v) consult with and assist the Board of Trustees in evaluating and obtaining adequate insurance coverage based upon risk management determinations; (vi) provide the Board of Trustees with updates related to the overall regulatory environment affecting the Trust and the Trust Subsidiaries, as well as managing compliance with such matters; (vii) consult with the Board of Trustees with respect to the governance structure and appropriate policies and procedures related thereto; (viii) oversee all reporting, record keeping, internal controls and similar matters in a manner to allow the Trust and the Trust Subsidiaries to comply with applicable law; (ix) manage communications with Unitholders, including, without limitation, answering phone calls, preparing and sending written and electronic reports and other communications; and (x) establish technology infrastructure to assist in providing Unitholder support services and investor relations;
(b)    investigate, select, and, on behalf of the Trust and the Trust Subsidiaries, engage and conduct business with such Persons as the Advisor deems necessary to the proper performance of its obligations hereunder, including, but not limited to, consultants, accountants, correspondents, lenders, technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for collection, insurers, insurance agents, banks, builders, developers, property owners, real estate management companies, real estate operating companies, securities investment advisors, mortgagors, and any and all agents for any of the foregoing, including, without limitation, Affiliates of the Advisor, and Persons acting in any other capacity deemed by the Advisor necessary or desirable for the performance of any of the foregoing services, including, but not limited to, entering into contracts in the name of the Trust and the Trust Subsidiaries with any of the foregoing;
(c)    consult with the Board of Trustees and officers of the Trust and the Trust Subsidiaries and assist the Board of Trustees in the formulation and implementation of the Trust’s financial policies, and, as necessary, 

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furnish the Board of Trustees with advice and recommendations with respect to the making of investments consistent with the purpose, investment objectives and policies of the Trust and in connection with any borrowings proposed to be undertaken by the Trust or any Trust Subsidiary;
(d)    obtain the prior approval of the Board of Trustees, any particular Trustees specified by the Board of Trustees or any committee thereof, as applicable, for any Disposition of the Retained Asset;
(e)    pursue a Disposition of the Retained Asset within the discretionary limits and authority as granted by the Board of Trustees;
(f)    obtain reports (which may but are not required to be prepared by the Advisor or its Affiliates), where appropriate, concerning the value of the Trust’s assets;
(g)    from time to time, or at any time reasonably requested by the Board of Trustees, make reports to the Board of Trustees of its performance of services to the Trust and the Trust Subsidiaries under this Agreement, including, but not limited to, reports with respect to potential conflicts of interest involving the Advisor or any of its Affiliates;
(h)    provide the Trust and the Trust Subsidiaries with all necessary cash management services;
(i)    consult with the Board of Trustees and provide assistance with the evaluation and approval of any potential Disposition or other material restructuring or modification of the terms governing the Retained Asset;
(j)    structure and negotiate the terms and conditions of transactions pursuant to which a Disposition may be made; 
(k)    perform all duties (including the granting of any consent) of the Trustees as set forth in Section 3.03 of the Trust Agreement;
(l)    do all things necessary to assure its ability to render the services described in this Agreement; and
(m)    before such transactions are completed, notify and obtain the approval of a majority of the Board of Trustees, including a majority of the Independent Trustees, for all transactions with Affiliates.
Notwithstanding the foregoing, the Advisor may delegate any or all of the foregoing duties to any Person so long as the Advisor or any Affiliate remains responsible for the performance of the duties set forth in this Section 3, subject to the prior consent of the Board of Trustees if all or substantially all of such duties are delegated to a Person who is not an Affiliate of the Advisor.
4.    AUTHORITY OF ADVISOR.
(a)    Pursuant to the terms of this Agreement (including the restrictions included in this Section 4 and in Section 7), and subject to the continuing and exclusive authority of the Board of Trustees over the management of the Trust, the Board of Trustees hereby delegates to the Advisor the authority to (i) structure the terms and conditions of transactions pursuant to which a Disposition will be made, (ii) oversee Affiliated and non-Affiliated Persons with whom the Advisor contracts to perform certain of the services required to be performed under this Agreement, (iii) manage communications with Unitholders, and (iv) manage public reporting, internal controls, accounting and other record-keeping functions and general corporate services for the Trust and the Trust Subsidiaries.
(b)    In connection with a proposed Disposition, the Advisor will deliver to the Board of Trustees or to any delegated committee of the Board of Trustees or other group of Trustees, as the case may be, all documents and other information required by them to properly evaluate such proposed Disposition. The prior approval of a majority of the Board of Trustees (including, in the case of a Disposition to an Affiliate, a majority of the Independent Trustees) will be required for any Disposition.

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5.    BANK ACCOUNTS.  The Advisor may establish and maintain one or more bank accounts in its own name for the account of the Trust or the Trust Subsidiaries, or in the name of the Trust or the Trust Subsidiaries, and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Trust or the Trust Subsidiaries, under such terms and conditions as the Board of Trustees may approve; provided, that no funds shall be commingled with the funds of the Advisor and the Advisor shall from time to time render appropriate accountings of such collections and payments to the Board of Trustees and to the auditors of the Trust.
6.    RECORDS; ACCESS.  The Advisor shall maintain appropriate records of all its activities hereunder and make such records available for inspection by the Board of Trustees and by counsel, auditors and authorized agents of the Trust, at any time or from time to time during normal business hours. The Advisor shall at all reasonable times have access to the books and records of the Trust and the Trust Subsidiaries.
7.    RELATIONSHIP WITH TRUSTEES.  Members, managers, directors, officers and employees of the Advisor or an Affiliate of the Advisor may serve as a Trustee and as officers of the Trust and its subsidiaries, except that no member, manager, director, officer or employee of the Advisor or its Affiliates who also is a Trustee or officer of the Trust or its subsidiaries shall receive any compensation from the Trust for serving as a Trustee or officer of the Trust or its subsidiaries other than reasonable reimbursement for travel and related expenses incurred in attending meetings of the Board of Trustees.
8.    MANAGEMENT FEE. The Advisor shall receive the Management Fee as compensation for services rendered hereunder. The Advisor shall compute each installment of the Management Fee within twenty (20) days after the end of the calendar month with respect to which such installment is payable. A copy of the computations made by the Advisor to calculate such installment of the Management Fee shall thereafter promptly be delivered to the Trust and, upon such delivery, payment of such installment of the Management Fee shown therein shall be due and payable in cash no later than the date that is ten (10) days after the date of the delivery to the Trust of such computations. Payment of the Management Fee may be waived or deferred, in whole or in part, from time to time, by the Advisor (without interest).
9.    EXPENSES.
(a)    In addition to the compensation paid to the Advisor pursuant to Section 8 and subject to the limitations below, the Trust or the Trust Subsidiaries, as the case may be, shall pay directly or reimburse the Advisor for all of the expenses paid or incurred by the Advisor in connection with the services it provides to the Trust and the Trust Subsidiaries pursuant to this Agreement, including, but not limited to:
(i)    the actual cost of goods and services used by the Trust or the Trust Subsidiaries and obtained from Persons not affiliated with the Advisor, including, without limitation, brokerage fees paid in connection with the purchase and sale of any securities;
(ii)    interest and other costs for borrowed money, including, without limitation, discounts, points and other similar fees;
(iii)    taxes and assessments on income or assets of the Trust or the Trust Subsidiaries and any other taxes otherwise imposed on the Trust or the Trust Subsidiaries;
(iv)    costs associated with insurance required in connection with the business of the Trust or the Trust Subsidiaries or by the Trust’s officers and Trustees;
(v)    expenses of managing and operating assets owned by the Trust or the Trust Subsidiaries, whether payable to an Affiliate of the Trust or a non-Affiliated Person;
(vi)    all expenses in connection with payments to the Trustees and meetings of the Trustees and Unitholders;

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(vii)    expenses associated with a Disposition or other restructuring or modification of the terms governing the Retained Asset;
(viii)    expenses connected with payments of Distributions in cash or otherwise made or caused to be made by the Trust to the Unitholders;
(ix)    expenses of organizing, revising, amending, converting, modifying, or terminating the Trust or the Trust Agreement;
(x)    expenses of maintaining communications with Unitholders, including, without limitation, the cost of preparating, printing, and mailing annual reports and other Unitholder reports, proxy statements and other reports required by governmental entities;
(xi)    administrative service expenses (including, without limitation, related personnel costs (including, without limitation, salaries, bonuses, equity-based compensation, and benefits) relating to, among other things, the services set forth in Section 3(a) hereof); 
(xii)    audit, accounting and legal fees and other fees for professional services relating to the operations of the Trust or the Trust Subsidiaries and all such fees incurred at the request, or on behalf of, the Independent Trustees or any committee of the Board of Trustees;
(xiii)    out-of-pocket costs for the Trust or the Trust Subsidiaries to comply with all applicable laws, regulations and ordinances; and
(xiv)    all other costs incurred by the Advisor in performing its duties hereunder.
(b)    Expenses incurred by the Advisor on behalf of the Trust or the Trust Subsidiaries, or in connection with the services provided to the Trust pursuant to this Agreement, and payable pursuant to this Section 9 shall be reimbursed no less than monthly to the Advisor. The Advisor shall prepare a statement documenting the expenses of the Trust and the Trust Subsidiaries, and shall deliver such statement to the Trust and Holdco within twenty (20) days after the end of each month. Reimbursement of the expenses set forth in such statement shall be made no later than ten (10) days after the receipt of such statement.
10.    OTHER SERVICES.  Should the Board of Trustees request that the Advisor or any director, officer or employee thereof render services for the Trust or the Trust Subsidiaries other than set forth in Section 3, such services shall be separately compensated at such rates and in such amounts as are agreed by the Advisor and the Independent Trustees of the Trust, subject to the limitations contained in the Trust Agreement, and shall not be deemed to be services pursuant to the terms of this Agreement.
11.    ASSIGNMENT TO AN AFFILIATE.  This Agreement may be assigned by the Advisor to an Affiliate or Affiliates with the approval of a majority of the Board of Trustees, including a majority of the Independent Trustees. The Advisor may assign any rights to receive fees or other payments under this Agreement to any Person without obtaining the approval of the Board of Trustees. This Agreement shall not be assigned by the Trust or Holdco without the prior written consent of the Advisor, except in the case of an assignment by the Trust or Holdco to a corporation, limited partnership or other organization which is a successor to all of the assets, rights and obligations of the Trust or Holdco, in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Trust and Holdco are bound by this Agreement.
12.    OTHER ACTIVITIES OF THE ADVISOR.  Nothing herein shall prevent the Advisor or its Affiliates from (a) engaging in or earning fees from other activities, including, without limitation, the rendering of advice to other Persons and the management of other programs advised, sponsored or organized by the Advisor or its Affiliates or (b) competing with the Trust, and the doctrine of corporate opportunity or any similar doctrine applicable to the Trust shall not apply to the Advisor or its Affiliates; nor shall this Agreement limit or restrict the right of any member, manager, director, officer, employee, or stockholder of the Advisor or its Affiliates to engage in or earn fees from any other business or to render services of any kind to any other partnership, corporation, firm, individual, trust or association and earn fees for rendering such services.

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13.    TERM OF AGREEMENT.  This Agreement shall continue in force throughout the duration of the existence of the Trust and shall terminate as of the date of termination of the Trust.
14.    TERMINATION BY THE PARTIES.  This Agreement may be terminated immediately by the Trust and/or Holdco or the Advisor for Cause.
15.    TERMINATION.
(a)    After the Termination Date, the Advisor shall not be entitled to compensation for further services hereunder, except that the Advisor shall be entitled to receive from the Trust or Holdco within thirty (30) days after the Termination Date all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Advisor prior to the Termination Date.
(b)    The Advisor shall promptly upon termination:
(i)    pay over to the Trust and Holdco all money collected and held for the account of the Trust and the Trust Subsidiaries pursuant to this Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled;
(ii)    deliver to the Board of Trustees a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board of Trustees;
(iii)    deliver to the Board of Trustees all assets and documents of the Trust and the Trust Subsidiaries then in the custody of the Advisor; and
(iv)    cooperate with the Trust and Holdco to provide an orderly management transition.
16.    INDEMNIFICATION.  
(a)    The Trust, to the fullest extent permitted by law, shall indemnify and hold harmless the Advisor, its Affiliates and the Advisor’s and its Affiliates’ respective officers, directors, members, managers, employees, stockholders, partners, trustees, control persons and equityholders (each, an “Advisor Covered Person”) from and against any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever, including reasonable legal fees and other expenses reasonably incurred (collectively, “Losses”), in respect of, arising out of or in connection with the business and operations of the Trust or any Trust Subsidiary or any action taken or omitted by any such Advisor Covered Person in good faith by or on behalf of the Trust or any Trust Subsidiary pursuant to authority granted by this Agreement, except where found by a court of competent jurisdiction to be attributable to the gross negligence, fraud, willful misconduct or bad faith of any Advisor Covered Person or the reckless disregard by any Advisor Covered Person of their duties under this Agreement. In the event that any Advisor Covered Person becomes involved in any capacity in any suit, action, proceeding or investigation in connection with any matter arising out of or in connection with the Advisor’s duties hereunder, the Trust will periodically reimburse such Advisor Covered Person for its reasonable legal and other expenses (including the cost of any investigation and preparation) incurred in connection therewith; provided that prior to any such advancement of expenses (i) such Advisor Covered Person shall provide the Trust with an undertaking to promptly repay to the Trust the amount of any such expenses paid to it if it shall ultimately be determined that such Advisor Covered Person is not entitled to be indemnified by the Trust as herein provided in connection with such suit, action, proceeding or investigation, and (ii) such Advisor Covered Person shall provide the Trust with a written affirmation that such Advisor Covered Person in good faith believes that it has met the standard of conduct necessary for indemnification hereunder; provided, further, that the failure for any reason of the Trust to advance funds to any Advisor Covered Person shall in no way affect such Advisor Covered Person’s right to reimbursement of such costs if it is ultimately determined that such Advisor Covered Person was entitled to indemnification pursuant to the terms hereof.

(b)    The Advisor, to the fullest extent permitted by law, shall indemnify and hold harmless the Trust and any Trust Subsidiary, including their respective officers, trustees, directors, members, managers, employees, 

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stockholders, partners, trustees, control persons and equityholders (each, a “Trust Covered Person”; an Advisor Covered Person and a Trust Covered Person are each sometimes hereinafter referred to as an “Indemnified Party”) of and from any and all Losses in respect of, arising out of or in connection with (i) any action taken or omitted by the Advisor that is found by a court of competent jurisdiction to constitute gross negligence, fraud, willful misconduct, bad faith or reckless disregard of the Advisor’s duties under this Agreement or (ii) any claims by the employees of the Advisor or its Affiliates relating to the terms and conditions of their employment by the Advisor or its Affiliates.

(c)    An Indemnified Party will promptly notify the party from whom indemnification is sought pursuant to Section 16(a) or 16(b), as applicable (the “Indemnifying Party”), of the occurrence of any action, claim, suit, proceeding or investigation (a “Claim”) likely to result in an indemnification request pursuant hereto and shall describe the nature of the Claim; provided that any failure by such Indemnified Party to notify the Indemnifying Party will not relieve the Indemnifying Party from its obligations hereunder, except to the extent that such failure shall have actually prejudiced the Indemnifying Party’s ability to eliminate or reduce any liability or the defense of such action. Each Indemnified Party hereby undertakes, and the Indemnifying Party hereby accepts each Indemnified Party’s undertaking, to repay any and all such amounts so advanced if it shall ultimately be determined that such Indemnified Party is not entitled to be indemnified therefor. The Indemnifying Party will be entitled to take control, at its own cost, in the defense of said Claim, including the selection of counsel, in the Indemnifying Party’s sole discretion. In such a case, the Indemnified Party shall provide the Indemnifying Party with all necessary information and shall consult with the Indemnified Party on the conduct of its defense. Such cooperation shall include the retention and (upon the Indemnifying Party’s request) the provision to the Indemnifying Party of records and information that are reasonably relevant to such third-party claim, and the use of reasonable efforts to make employees available to provide additional information and explanation of any material provided hereunder. Should the Indemnifying Party so elect to assume the defense of a third-party claim, the Indemnifying Party will not be liable to any Indemnified Party for legal expenses subsequently incurred by such Indemnified Party in connection with the defense thereof, unless the third-party claim involves potential conflicts of interest between the Indemnified Party and the Indemnifying Party. If the Indemnifying Party assumes such defense, the Indemnified Party shall have the right to participate in the defense thereof and to employ counsel, at its own expense (except as provided in the immediately preceding sentence), separate from the counsel employed by the Indemnifying Party, it being understood that the Indemnifying Party shall control such defense. No Indemnified Party shall settle, compromise or consent to the entry of a judgment with respect to any pending or threatened Claim in respect of which indemnification can be sought under this Agreement without the Indemnifying Party’s prior written consent, in its sole discretion. The Indemnifying Party shall accept no liability or settlement in the context of Claims the consequences of which would be likely to give rise to indemnification pursuant hereto, without the prior written consent of the applicable Indemnified Party, unless such settlement agreement includes a full and unreserved clause of exclusion of liability of any Indemnified Party in the context of such dispute.
(d)    The provisions of this Section 16 shall survive the expiration or earlier termination of this Agreement.
17.    NOTICES.  All notices, reports and other communications under this Agreement to any party hereto shall be in writing and shall be deemed to have been duly given for all purposes when (i) deposited in the mail, postage prepaid, for delivery to, or deposited with a courier service for delivery to, such party, or (ii) delivered personally or sent by email to such party, in each case at the following address or at such other addresses or numbers as shall be specified by the parties by like notice.
To the Trustees and to the Trust:
N1 Liquidating Trust
515 S. Flower St., 44th Floor
Los Angeles, CA 90071
Attention:  Director, Legal Department     
Email: colonylegal@clns.com

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To Holdco:
N1 Hendon Holdings, LLC
515 S. Flower St., 44th Floor
Los Angeles, CA 90071
Attention:  Director, Legal Department     
Email: colonylegal@clns.com
To the Advisor:
CNI NSI Advisors, LLC
515 S. Flower St., 44th Floor
Los Angeles, CA 90071
Attention:  Director, Legal Department     
Email: colonylegal@clns.com
Any party may at any time give notice in writing to the other parties of a change in its address for the purposes of this Section 17.
18.    MISCELLANEOUS.
(a)    Amendment. This Agreement shall not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in writing signed by the parties hereto.
(b)    Severability.  The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.
(c)    Applicable Law.  The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of Maryland.
(d)    Entire Agreement.  This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by an agreement in writing.
(e)    Waiver.  Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.
(f)    Captions.  The titles of sections herein are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.
(g)    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.
[Signature page follows.] 

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IN WITNESS WHEREOF, the undersigned have executed this Management Services Agreement as of the date and year first above written.
	
							
	 
	 
	THE TRUST:

	 
	 
	N1 LIQUIDATING TRUST

	 
	 
	By:
	 /s/ Frank V. Saracino

	 
	 
	 
	Name:
	Frank V. Saracino

	 
	 
	 
	Title:
	Chief Financial Officer

	 
	 
	 

	 
	 
	HOLDCO:

	 
	 
	N1 HENDON HOLDINGS, LLC

	 
	 
	By:
	N1 LIQUIDATING TRUST, its sole member

	 
	 
	 
	By:
	 /s/ Frank V. Saracino

	 
	 
	 
	 
	Name:
	Frank V. Saracino

	 
	 
	 
	 
	Title:
	Chief Financial Officer

	 
	 
	 

	 
	 
	THE ADVISOR:

	 
	 
	CNI NSI ADVISORS, LLC

	 
	 
	By:
	 /s/ Mark M. Hedstrom

	 
	 
	 
	Name:
	Mark M. Hedstrom

	 
	 
	 
	Title:
	Vice President

	 
	 
	 

[Signature page to Management Services Agreement]

EXHIBIT A
DESCRIPTION OF EXCLUDED ASSET
That certain Promissory Note (the “Note”) in the original maximum principal sum of $150,150,000.00 dated April 11, 2014, as given by KDI Panama Mall, LLC, KDI Panama Center, LLC, KDI Panama Out Parcel, LLC, KDI Athens Mall, LLC, KDI Athens Theater, LLC, KDI RiverGate Mall, LLC, and KDI RiverGate Center, LLC, each a Georgia limited liability company (collectively, “Borrower”) to NS Income DB Loan – Series III, a series of NS Income DB Loan, LLC, a Delaware limited liability company, as successor in interest to SE Malls Lender NT‐I, LLC, a Delaware limited liability company (“Lender”), which Note was evidenced in part by that certain Loan Agreement dated as of April 11, 2014 between Borrower and Lender.

A-1Exhibit

Exhibit 10.4

FORM OF INDEMNIFICATION AGREEMENT
THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made and entered into, and effective, as of this 31st day of January, 2018, by and between N1 Liquidating Trust, a Maryland statutory trust (the “Trust”), and [●], a trustee and/or officer of the Trust (“Indemnitee”).
RECITALS
WHEREAS, the Trust was formed for the purpose of liquidating a certain asset of NorthStar Real Estate Income Trust, Inc. (“NorthStar I”), as contemplated by that certain Amended and Restated Master Combination Agreement, dated as of November 20, 2017, which sets forth the terms of the combination of NorthStar I, NorthStar Real Estate Income II, Inc., Colony NorthStar Credit Real Estate, Inc., and certain other parties;
WHEREAS, the interpretation of the provisions of statutes, regulations and governing instruments regarding indemnification of trustees and officers may be too uncertain to provide such trustees and officers with adequate notice of the legal, financial and other risks to which they may be exposed by virtue of their service as such;
WHEREAS, damages sought against trustees and officers in litigation may be substantial, and the costs of defending such actions and of judgments in favor of plaintiffs or of settlement therewith may be prohibitive for individual trustees and officers, without regard to the merits of a particular action and without regard to the culpability of, or the receipt of improper personal benefit by, any named trustee or officer;
WHEREAS, the period of time which may elapse before final disposition of such litigation may impose undue hardship and burden on a trustee or officer or his estate in maintaining a proper and adequate defense of himself or his estate against claims for damages;
WHEREAS, the Trust is organized under the Maryland Statutory Trust Act (the “Statutory Trust Act”), and Section 12-403 of the Statutory Trust Act empowers Maryland statutory trusts to indemnify and advance expenses of litigation to a person serving as a trustee, officer, employee or agent of a statutory trust;
WHEREAS, Section 12-403(b) of the Statutory Trust Act provides that, except as provided in the governing instrument of a statutory trust, a trustee shall be indemnified to the same extent as a director of a corporation under Section 2-418 of the Maryland General Corporation Law (the “MGCL”);
WHEREAS, Section 8.05 of that certain Agreement and Declaration of Trust, dated as of January 31, 2018, by and among NorthStar I and the trustees of the Trust (the “Trust Agreement”), provides that the Trust shall, to the fullest extent permitted by law (except to the extent set forth in an agreement between the Trust and Indemnitee), indemnify the trustees of the Trust, and each person appointed by such trustees pursuant to the terms thereof, including CNI NSI Advisors, LLC, the Trust’s advisor, and directors, officers, employees, managers and agents of each such trustee; and
WHEREAS, after careful consideration, the Board of Trustees of the Trust (the “Board of Trustees”) has concluded that it is advisable and in the best interests of the Trust to enter into an agreement to indemnify in a reasonable and adequate manner Indemnitee and to assume for itself maximum liability for expenses and damages in connection with claims lodged against Indemnitee for his or her decisions and actions as a trustee and/or officer of the Trust.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Trust and Indemnitee do hereby covenant and agree as follows:
Section 1.    Definitions.  For purposes of this Agreement:
(a)“Beneficiaries” means the holders of units of beneficial interests in the Trust.

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(b)“Corporate Status” means the status of a person who is or was a trustee, officer, employee or agent of the Trust, or a member of any committee of the Trust, and the status of a person who, while a trustee, officer, employee or agent of the Trust, is or was serving at the request of the Trust as a trustee, director, officer, partner (including service as a general partner of any limited partnership), manager, managing member, fiduciary, employee or agent of another foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, other incorporated or unincorporated entity or enterprise or employee benefit plan. As a clarification and without limiting the circumstances in which Indemnitee may be serving at the request of the Trust, service by Indemnitee shall be deemed to be at the request of the Trust if Indemnitee serves or served as a trustee, director, officer, partner, manager, managing member, fiduciary, employee or agent of any corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, other incorporated or unincorporated entity or enterprise or employee benefit plan (i) of which a majority of the voting power or equity interest is owned directly or indirectly by the Trust or (ii) the management of which is controlled directly or indirectly by the Trust.
(c)“Disinterested Trustee” means a trustee of the Trust who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of Expenses is sought by Indemnitee.
(d)“Effective Date” means the date set forth in the first paragraph of this Agreement.
(e)“Expenses” means, without limitation, expenses of Proceedings, including any and all reasonable and out-of-pocket attorneys’ fees and costs, retainers, court costs, arbitration and mediation costs, transcript costs, fees of experts, investigation fees and expenses, accounting and witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, directors and officers insurance policy, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in or otherwise participating in a Proceeding. “Expenses” shall also include Expenses incurred in connection with any appeal resulting from any Proceeding, including, without limitation, the premium for, security for and other costs relating to any cost bond, supersedeas bond or other appeal bond or its equivalent.
(f)“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither is, nor in the past two (2) years has been, retained to represent: (i) the Trust or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements), or (ii) any other party to or participant or witness in the Proceeding giving rise to a claim for indemnification or advance of Expenses hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Trust or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.
(g)“Liabilities” means liabilities of any type whatsoever, including, without limitation, any judgments, fines, excise taxes and penalties under the Employee Retirement Income Security Act of 1974, as amended, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such judgments, fines, penalties or amounts paid in settlement) in connection with the investigation, defense, settlement or appeal of any Proceeding or any claim, issue or matter therein.
(h)“Proceeding” means any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing, claim, demand, discovery request or any other actual, threatened or completed proceeding, whether brought by or in the right of the Trust or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature, including, without limitation, any internal investigation conducted by or on behalf of the Trust or by the Board of Trustees or any standing or special committee thereof, including any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Trust and Indemnitee. If Indemnitee reasonably believes that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding.

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Section 2.    Services by Indemnitee.  Indemnitee serves or will serve as a trustee and/or an officer of the Trust. However, this Agreement shall not impose any independent obligation on Indemnitee or the Company to continue Indemnitee’s service to the Trust. This Agreement shall not be deemed an employment contract between the Trust (or any other entity) and Indemnitee.
Section 3.    General.  Upon the terms and subject to the limitations set forth in this Agreement, the Trust shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to the maximum extent permitted by Maryland law in effect on the Effective Date and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the Effective Date. The rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the other sections of this Agreement, including any additional indemnification permitted by the Statutory Trust Act and the MGCL, including, without limitation, Section 12-403 of the Statutory Trust Act and Section 2-418 of the MGCL.
Section 4.    Standard for Indemnification.  If, by reason of Indemnitee’s Corporate Status, Indemnitee was, is, or is threatened to be, made a party to any Proceeding, the Trust shall indemnify Indemnitee against all judgments, penalties, fines, liabilities, and amounts paid in settlement and all Expenses actually and reasonably incurred by Indemnitee, or on Indemnitee’s behalf, in connection with any such Proceeding, unless it is established that (a) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that the act or omission was unlawful.
Section 5.    Certain Limits on Indemnification.  Notwithstanding any other provision of this Agreement (other than Section 6), Indemnitee shall not be entitled to:
(a)indemnification hereunder if the Proceeding was one by or in the right of the Trust and Indemnitee is adjudged, in a final adjudication of such Proceeding not subject to further appeal, to be liable to the Trust with respect to such Proceeding;

(b)indemnification hereunder if Indemnitee is adjudged, in a final adjudication of such Proceeding not subject to further appeal, to be liable on the basis that personal benefit was improperly received in any Proceeding charging improper personal benefit to Indemnitee, whether or not involving action in Indemnitee’s Corporate Status; or

(c)indemnification or advance of Expenses hereunder if the Proceeding was brought by Indemnitee against the Trust, unless: (i) the Proceeding was brought to enforce indemnification under Section 12-403 of the Statutory Trust Act, (ii) the Proceeding was brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as authorized by Section 12 of this Agreement, or (iii) the Trust Agreement or the Trust’s bylaws, if any, as may be amended from time to time (the “Bylaws”), a resolution or other action by the Beneficiaries or of the Board of Trustees or an agreement approved by the Board of Trustees to which the Trust is a party expressly provide otherwise.

Section 6.    Court-Ordered Indemnification.  Notwithstanding any other provision of this Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require, may order indemnification of Indemnitee by the Trust in the following circumstances:
(a)if such court determines that Indemnitee is entitled to reimbursement for Expenses under Section 12-403 of the Statutory Trust Act (and Section 2-418(d)(1) of the MGCL), the court shall order indemnification, in which case Indemnitee shall be entitled to recover the Expenses of securing such reimbursement; or
(b)if such court determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of conduct as required 

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under Section 12-403 of the Statutory Trust Act (and Section 2-418(b) of the MGCL) or (ii) has been adjudged liable for receipt of an improper personal benefit under 2-418(e) of the MGCL, the court may order such indemnification as the court shall deem proper without regard to any limitation on such court-ordered indemnification contemplated by Section 2-418(d)(2)(ii) of the MGCL; provided, however, that the Trust’s indemnification obligations to Indemnitee shall be limited to the Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf, in connection with any Proceeding by the Trust or in the Trust’s right or in which Indemnitee shall have been adjudged liable for receipt of an improper personal benefit under Section 2-418(e) of the MGCL.
Section 7.    Indemnification for Expenses of an Indemnitee Who is Wholly or Partially Successful. Notwithstanding any other provision of this Agreement, and without limiting any such provision, if, by reason of Indemnitee’s Corporate Status, Indemnitee was, is, or is threatened to be, made a party to (or otherwise becomes a participant in) any Proceeding and is successful, on the merits or otherwise, in the defense of such Proceeding, the Trust shall indemnify Indemnitee for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Trust shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably incurred by Indemnitee, or on Indemnitee’s behalf, in connection with each such claim, issue or matter for which Indemnitee is successful, allocated on a reasonable and proportionate basis. For purposes of this Section 7 and, without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.
Section 8.    Advance of Expenses for Indemnitee. If, by reason of Indemnitee’s Corporate Status, Indemnitee was, is, or is threatened to be, made a party to any Proceeding, the Trust shall, without requiring a preliminary determination of Indemnitee’s ultimate entitlement to indemnification hereunder, advance all reasonable Expenses incurred by or on behalf of Indemnitee in connection with such Proceeding. The Trust shall make such advance within ten (10) days after the receipt by the Trust of a statement or statements requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding and may be in the form of, in the reasonable discretion of Indemnitee (but without duplication) (a) payment of such Expenses directly to third parties on behalf of Indemnitee, (b) advance of funds to Indemnitee in an amount sufficient to pay such Expenses or (c) reimbursement to Indemnitee for Indemnitee's payment of such Expenses. Such statement or statements shall reasonably evidence the Expenses incurred or expected to be incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee of Indemnitee’s good faith belief that the standard of conduct necessary for indemnification by the Trust as authorized by law and by this Agreement has been met and a written undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof, to reimburse the portion of any Expenses advanced to Indemnitee relating to claims, issues or matters in the Proceeding as to which it shall ultimately be established that the standard of conduct has not been met by Indemnitee and which have not been successfully resolved as described in Section 7 of this Agreement. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee’s financial ability to repay such advanced Expenses and without any requirement to post security therefor.
Section 9.    Indemnification and Advance of Expenses as a Witness or Other Participant. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is or may be, by reason of Indemnitee’s Corporate Status, made a witness or otherwise asked to participate in any Proceeding, whether instituted by the Trust or any other person, and to which Indemnitee is not a party, Indemnitee shall be advanced all reasonable Expenses incurred or expected to be incurred and indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith within ten (10) days after the receipt by the Trust of a statement or statements requesting any such advance or indemnification from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee. In connection with any such advance of Expenses, the Trust may require Indemnitee to provide an undertaking and affirmation substantially in the form attached hereto as Exhibit A.

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Section 10.    Procedure for Determination of Entitlement to Indemnification.
(a)    To obtain indemnification under this Agreement, Indemnitee shall submit to the Trust a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary or appropriate to determine whether and to what extent Indemnitee is entitled to indemnification. Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate in Indemnitee’s sole discretion. The officer of the Trust receiving any such request from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the Board of Trustees in writing that Indemnitee has requested indemnification.
(b)    Upon written request by Indemnitee for indemnification pursuant to Section 10(a) above, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i) by the Board of Trustees by a majority vote of a quorum consisting of Disinterested Trustees or, if such a quorum cannot be obtained, then by a majority vote of a duly authorized committee of the Board of Trustees consisting solely of one or more Disinterested Trustees, (ii) if Independent Counsel has been selected by the Board of Trustees or a duly authorized committee of the Board of Trustees in accordance with Section 2-418(e)(ii)(2) of the MGCL and approved by Indemnitee, which approval shall not be unreasonably withheld, by Independent Counsel, in a written opinion to the Board of Trustees, a copy of which shall be delivered to Indemnitee, or (iii) if so directed by a majority of the Disinterested Trustees, by the Beneficiaries of the Trust. If it is so determined that Indemnitee is entitled to indemnification, the Trust shall make payment to Indemnitee within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information that is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary or appropriate to such determination in the discretion of the Board of Trustees or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 10(b). Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Trust (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Trust shall indemnify and hold Indemnitee harmless therefrom.
(c)    The Trust shall pay the reasonable fees and expenses of Independent Counsel, if one is appointed.
Section 11.    Presumptions and Effect of Certain Proceedings.
(a)In making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Trust shall have the burden of overcoming that presumption in connection with the making of any determination contrary to that presumption.
(b)The termination of any Proceeding, or of any claim, issue or matter therein, by judgment, order or settlement does not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification, but the termination of any Proceeding, or of any claim, issue or matter therein by conviction, upon a plea of nolo contendere or its equivalent, or entry of an order of probation prior to judgment, creates a rebuttable presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification.
(c)The knowledge and/or actions, or failure to act, of any other trustee, officer, employee or agent of the Trust or any other trustee, director, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement.

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Section 12.    Remedies of Indemnitee.
(a)If (i) a determination is made pursuant to Section 10(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Sections 8 or 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(b) of this Agreement within forty-five (45) days (as may be extended pursuant to Section 12(b) of this Agreement) after receipt by the Trust of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 7 or 9 of this Agreement within ten (10) days after receipt by the Trust of a written request therefor, or (v) payment of indemnification pursuant to any other section of this Agreement, the Trust Agreement or Bylaws is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the State of Maryland, or in any other court of competent jurisdiction, or in an arbitration conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association, of Indemnitee’s entitlement to indemnification or advance of Expenses. Indemnitee shall commence a proceeding seeking an adjudication or an award in arbitration within one hundred eighty (180) days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce his or her rights under Section 7 of this Agreement, and, provided further that failure to commence a proceeding within such one hundred eighty (180)-day time period shall not be deemed a waiver of any right of Indemnitee hereunder unless it is established in the proceeding that the Trust was materially prejudiced thereby. Except as set forth herein, the provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration. The Trust shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.
(b)If the person or entity making the determination whether Indemnitee is entitled to indemnification shall not have made a determination within forty-five (45) days after receipt by the Trust of the request therefor, the requisite determination that Indemnitee is entitled to indemnification shall be deemed to have been made and Indemnitee shall be entitled to commence a proceeding to enforce Indemnitee’s entitlement to indemnification, absent: (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law. Such forty-five (45)-day period may be extended for a reasonable time, not to exceed an additional fifteen (15) days, if the person or entity making said determination in good faith requires additional time for the obtaining or evaluating of documentation and/or information relating thereto. The foregoing provisions of this Section 12(b) shall not apply: (i) if the determination of entitlement to indemnification is to be made by the Beneficiaries and if within fifteen (15) days after receipt by the Trust of the request for such determination a majority of the entire Board of Trustees resolves to submit such determination to the Beneficiaries for consideration at a meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made at such meeting, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(b) of this Agreement. Indemnitee shall commence a proceeding seeking an adjudication or an award in arbitration to compel payment pursuant to this Section 12(b) within the timeframes contemplated by Section 12(a) of this Agreement.
(c)In any judicial proceeding or arbitration commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses, as the case may be, under this Agreement and the Trust shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be. If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse the Trust for any advances pursuant to Section 8 of this Agreement until a final determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). The Trust shall, to the maximum extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Trust is bound by all of the provisions of this Agreement.
(d)If a determination shall have been made pursuant to Section 10(b) of this Agreement that Indemnitee is entitled to indemnification, the Trust shall be bound by such determination in any judicial proceeding 

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or arbitration commenced pursuant to this Section 12, absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification.
(e)In the event that Indemnitee is successful in seeking, pursuant to this Section 12, a judicial adjudication of or an award in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Trust, and shall be indemnified by the Trust for, any and all Expenses actually and reasonably incurred by Indemnitee in such judicial adjudication or arbitration. If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated.
(f)Interest shall be paid by the Trust to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial Proceedings Article of the Annotated Code of Maryland for amounts which the Trust pays or is obligated to pay for the period (i) commencing with either the tenth (10th) day after the date on which the Trust was requested to advance Expenses in accordance with Sections 8 or 9 of this Agreement or the sixtieth (60th) day after the date on which the Trust was requested to make the determination of entitlement to indemnification under Section 10(b) of this Agreement, as applicable, and (ii) ending on the date such payment is made to Indemnitee by the Trust.
Section 13.    Defense of the Underlying Proceeding.
(a)Indemnitee shall notify the Trust promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or other document relating to any Proceeding that may result in the right to indemnification or the advance of Expenses hereunder and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding. The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Trust’s ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Trust is thereby actually so prejudiced.
(b)Subject to the provisions of the last sentence of this Section 13(b) and of Section 13(c) below, the Trust shall have the right to defend Indemnitee in any Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status, which may give rise to indemnification hereunder; provided, however, that the Trust shall notify Indemnitee of any such decision to defend within fifteen (15) calendar days following receipt of notice of any such Proceeding under Section 13(a) above. The Trust shall not, without the prior written consent of Indemnitee, which consent shall not be unreasonably withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise that (i) includes an admission of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee or (iii) would impose any Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 13(b) shall not apply to a Proceeding brought by Indemnitee under Section 12 of this Agreement.
(c)Notwithstanding the provisions of Section 13(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Trust, which approval shall not be unreasonably withheld or delayed, that Indemnitee may have separate defenses or counterclaims to assert with respect to any issue that may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Trust, which approval shall not be unreasonably withheld or delayed, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Trust, (iii) the Trust fails to assume the defense of such Proceeding in a timely manner, or (iv) the proceeding seeks penalties or other relief against Indemnitee with respect to which the Trust could not provide monetary indemnification to Indemnitee (such as injunctive relief or incarceration), then Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s choice, subject to the prior approval of the Trust, which approval shall not be unreasonably withheld or delayed, at the expense of the Trust. In addition, if the Trust fails to comply with any of its obligations 

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under this Agreement or in the event that the Trust or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the prior approval of the Trust, which approval shall not be unreasonably withheld or delayed, at the expense of the Trust (subject to Section 12(d) of this Agreement), to represent Indemnitee in connection with any such matter.
Section 14.    Non-Exclusivity; Survival of Rights; Subrogation.
(a)The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Trust Agreement, the Bylaws, any agreement, a resolution or other action by the Beneficiaries or of the Board of Trustees, or otherwise. Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of the Trust Agreement, the Bylaws, this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent to such amendment, alteration or repeal. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion of any right or remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy.
(b)In the event of any payment under this Agreement, the Trust shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, including, without limitation, pursuant to indemnification rights provided by any entity for which Indemnitee serves as trustee, director or officer and that is a party to any investment advisory, strategic or other relationship or agreement with the Trust or any affiliate thereof (as to which Indemnitee will take all reasonable steps to perfect such indemnification rights), who shall execute all papers required and take all action necessary to secure such rights, including, without limitation, execution of such documents as are necessary to enable the Trust to bring suit to enforce such rights.
Section 15.    Insurance.
(a)The Trust will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate by the Board of Trustees, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of his or her Corporate Status and covering the Trust for any indemnification or advance of Expenses made by the Trust to Indemnitee for any claims made against Indemnitee by reason of his or her Corporate Status.
(b)Without in any way limiting any other obligation under this Agreement, the Trust shall indemnify Indemnitee for any payment by Indemnitee that would otherwise be indemnifiable hereunder arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in Section 15(a). The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Trust or Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Trust and Indemnitee shall not in any way limit or affect the rights or obligations of the Trust under any such insurance policies. If, at the time the Trust receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise) the Trust has directors and officers liability insurance in effect, the Trust shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.
(c)Indemnitee shall cooperate with the Trust or any insurance carrier of the Trust with respect to any Proceeding.
Section 16.    Coordination of Payments.  The Trust shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the extent 

8

that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
Section 17.    Contribution.  If the indemnification provided in this Agreement is unavailable in whole or in part and may not be paid to Indemnitee for any reason, other than for failure to satisfy the standard of conduct set forth in Section 4 or due to the provisions of Section 5, then, with respect to any Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status in which the Trust is jointly liable with Indemnitee (or would be if joined in such Proceeding), to the maximum extent permissible under applicable law, the Trust, in lieu of indemnifying and holding harmless Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for Expenses, judgments, penalties, and/or amounts paid or to be paid in settlement, in connection with any Proceeding without requiring Indemnitee to contribute to such payment, and the Trust hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.
Section 18.    Duration of Agreement; Binding Effect.
(a)This Agreement shall continue until, and terminate on the later of, (i) the date that Indemnitee shall have ceased to serve as a trustee, officer, employee or agent of the Trust or as a trustee, director, officer, partner, manager, member, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Trust and (ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding, to which Indemnitee is a party by reason of Indemnitee’s Corporate Status (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement).
(b)The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Trust), shall continue as to an Indemnitee who has ceased to be a trustee, officer, employee or agent of the Trust or a trustee, director, officer, partner, manager, member, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Trust, and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.
(c)The Trust shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Trust, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Trust would be required to perform if no such succession had taken place.
(d)The execution of this Agreement shall not affect any rights to which Indemnitee is entitled under indemnification agreements in effect immediately prior to the Effective Date with predecessors of the Trust, including, without limitation, Colony NorthStar, Inc. or the predecessors thereof, NorthStar Real Estate Income Trust, Inc. and NorthStar Real Estate Income II, Inc., and the Trust confirms its assumption of the obligations of such predecessors.
(e)The Trust and Indemnitee agree that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled. Indemnitee shall further be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertakings in connection 

9

therewith. The Trust acknowledges that, in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Trust hereby waives any such requirement of such a bond or undertaking.
Section 19.    Severability.  If any provision or provisions of this Agreement shall be held to be invalid, void, illegal or otherwise unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the maximum extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the maximum extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.
Section 20.    Identical Counterparts.  This Agreement may be executed in one or more counterparts (delivery of which may be by facsimile, or via e-mail as a portable document format (.pdf) or other electronic format), each of which will be deemed to be an original and it will not be necessary in making proof of this agreement or the terms of this Agreement to produce or account for more than one such counterpart. One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.
Section 21.    Headings.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
Section 22.    Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor, unless otherwise expressly stated, shall such waiver constitute a continuing waiver.
Section 23.    Notices.  All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, on the day of such delivery, or (b) mailed by certified or registered mail with postage prepaid, on the third (3rd) business day after the date on which it is so mailed:
(i)If to Indemnitee, to the address set forth on the signature page hereto.
(ii)If to the Trust, to:
N1 Liquidating Trust 
515 S. Flower Street, 44th Floor 
Los Angeles, CA 90071 
Attn: Director of Legal
or to such other address as may have been furnished in writing to Indemnitee by the Trust or to the Trust by Indemnitee, as the case may be.
Section 24.    Governing Law.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules.
Section 25.    No Assignments.  No party hereto may assign his, her or its rights or delegate his, her or its obligations under this Agreement without the prior written consent of the other party. Any assignment or delegation in violation of this Section 25 shall be null and void.
Section 26.    No Third Party Rights.  Nothing expressed or referred to in this Agreement will be construed to give any person other than the parties to this Agreement any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its provisions are for the sole and exclusive benefit of the parties to this Agreement and their successors and permitted assigns.

10

[Signature page follows.]

11

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

	 
	 
	N1 LIQUIDATING TRUST

	 
	 
	By:
	 

	 
	 
	 
	Name:
	 

	 
	 
	 
	Title:
	 

	 
	 
	 

	 
	 
	INDEMNITEE:

	 
	 
	 

	 
	 
	Name:
	 

	 
	 
	Address:
	 

	 
	 
	 
	 

[Signature Page to Indemnification Agreement]

EXHIBIT A
AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED
To:     The Board of Trustees of N1 Liquidating Trust
Re:     Affirmation and Undertaking
Ladies and Gentlemen:
This Affirmation and Undertaking is being provided pursuant to that certain Indemnification Agreement dated the _____ day of ____________, 20____, by and between N1 Liquidating Trust, a Maryland statutory trust (the “Trust”), and the undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I am entitled to advance of Expenses in connection with [Description of Proceeding] (the “Proceeding”). Terms used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement.
I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged actions or omissions by me in such capacity. I hereby affirm my good faith belief that at all times, insofar as I was involved as [a trustee][and][an officer] of the Trust in any of the facts or events giving rise to the Proceeding, I (i) did not act with bad faith or active or deliberate dishonesty, (ii) did not receive any improper personal benefit in money, property or services and (iii) in the case of any criminal proceeding, had no reasonable cause to believe that any act or omission by me was unlawful.
In consideration of the advance of Expenses by the Trust for reasonable attorneys’ fees and related Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in connection with the Proceeding, it is established that (i) an act or omission by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (ii) I actually received an improper personal benefit in money, property or services or (iii) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.
IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this _____ day of ____________, 20____.
	
				
	 
	 
	 

	 
	 
	Name:

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