Document:

AMENDED
      AND RESTATED TRUST AGREEMENT

    

    among

    

    NORTHSTAR
      REALTY FINANCE LIMITED PARTNERSHIP,

    as
      Depositor

    

    

    NORTHSTAR
      REALTY FINANCE CORP.,

    as
      Guarantor

    

    

    WILMINGTON
      TRUST COMPANY

    as
      Property Trustee

    

    

    WILMINGTON
      TRUST COMPANY

    as
      Delaware Trustee

    

    

    and

    

    

    THE
      ADMINISTRATIVE TRUSTEES NAMED HEREIN

    as
      Administrative Trustees

    

    ________________

    

    

    Dated
      as
      of October 6, 2006

    

    

    NORTHSTAR
      REALTY FINANCE TRUST VI

    

    

     

      
        

        

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

     

    
      
        
          	 	 	
                  Page

                
	 	 	 
	
                  ARTICLE
                    I.     Defined
                    Terms

                	
                  1

                
	
                  SECTION
                    1.1

                	
                  Definitions

                	
                  1

                
	
                  ARTICLE
                    II.    The
                    Trust

                	
                  10

                
	
                  SECTION
                    2.1

                	
                  Name

                	
                  10

                
	
                  SECTION
                    2.2

                	
                  Office
                    of the Delaware Trustee; Principal Place of Business

                	
                  10

                
	
                  SECTION
                    2.3

                	
                  Initial
                    Contribution of Trust Property; Fees, Costs and Expenses

                	
                  10

                
	
                  SECTION
                    2.4

                	
                  Purposes
                    of Trust

                	
                  11

                
	
                  SECTION
                    2.5

                	
                  Authorization
                    to Enter into Certain Transactions

                	
                  11

                
	
                  SECTION
                    2.6

                	
                  Assets
                    of Trust

                	
                  14

                
	
                  SECTION
                    2.7

                	
                  Title
                    to Trust Property

                	
                  14

                
	
                  ARTICLE
                    III.    Payment
                    Account; Paying Agents

                	
                  14

                
	
                  SECTION
                    3.1

                	
                  Payment
                    Account

                	
                  14

                
	
                  SECTION
                    3.2

                	
                  Appointment
                    of Paying Agents

                	
                  15

                
	
                  ARTICLE
                    IV.    Distributions;
                    Redemption

                	
                  15

                
	
                  SECTION
                    4.1

                	
                  Distributions

                	
                  15

                
	
                  SECTION
                    4.2

                	
                  Redemption

                	
                  16

                
	
                  SECTION
                    4.3

                	
                  Subordination
                    of Common Securities

                	
                  19

                
	
                  SECTION
                    4.4

                	
                  Payment
                    Procedures

                	
                  20

                
	
                  SECTION
                    4.5

                	
                  Withholding
                    Tax

                	
                  20

                
	
                  SECTION
                    4.6

                	
                  Tax
                    Returns and Other Reports

                	
                  20

                
	
                  SECTION
                    4.7

                	
                  Payment
                    of Taxes, Duties, Etc. of the Trust

                	
                  21

                
	
                  SECTION
                    4.8

                	
                  Payments
                    under Indenture or Pursuant to Direct Actions

                	
                  21

                
	
                  SECTION
                    4.9

                	
                  Exchanges

                	
                  21

                
	
                  SECTION
                    4.10

                	
                  Calculation
                    Agent

                	
                  22

                
	
                  SECTION
                    4.11

                	
                  Certain
                    Accounting Matters

                	
                  22

                
	
                  ARTICLE
                    V.    Securities

                	
                  23

                
	
                  SECTION
                    5.1

                	
                  Initial
                    Ownership

                	
                  23

                
	
                  SECTION
                    5.2

                	
                  Authorized
                    Trust Securities

                	
                  23

                
	
                  SECTION
                    5.3

                	
                  Issuance
                    of the Common Securities; Subscription and Purchase of
                    Notes

                	
                  23

                
	
                  SECTION
                    5.4

                	
                  The
                    Securities Certificates

                	
                  24

                
	
                  SECTION
                    5.5

                	
                  Rights
                    of Holders

                	
                  25

                
	
                  SECTION
                    5.6

                	
                  Book-Entry
                    Preferred Securities

                	
                  25

                
	
                  SECTION
                    5.7

                	
                  Registration
                    of Transfer and Exchange of Preferred Securities
                    Certificates

                	
                  27

                
	
                  SECTION
                    5.8

                	
                  Mutilated,
                    Destroyed, Lost or Stolen Securities Certificates

                	
                  28

                
	
                  SECTION
                    5.9

                	
                  Persons
                    Deemed Holders

                	
                  29

                
	
                  SECTION
                    5.10

                	
                  Cancellation

                	
                  29

                
	
                  SECTION
                    5.11

                	
                  Ownership
                    of Common Securities by Depositor

                	
                  29

                
	
                  SECTION
                    5.12

                	
                  Restricted
                    Legends

                	
                  30

                
	
                  SECTION
                    5.13

                	
                  Form
                    of Certificate of Authentication

                	
                  32

                

        

         

        
          
            
            

          

          
            i

            
              

            

          

          
            
            

          

        

        
          	
                  ARTICLE
                    VI.    Meetings;
                    Voting; Acts of Holders

                	
                  33

                
	
                  SECTION
                    6.1

                	
                  Notice
                    of Meetings

                	
                  33

                
	
                  SECTION
                    6.2

                	
                  Meetings
                    of Holders of the Preferred Securities

                	
                  33

                
	
                  SECTION
                    6.3

                	
                  Voting
                    Rights

                	
                  33

                
	
                  SECTION
                    6.4

                	
                  Proxies,
                    Etc

                	
                  34

                
	
                  SECTION
                    6.5

                	
                  Holder
                    Action by Written Consent

                	
                  34

                
	
                  SECTION
                    6.6

                	
                  Record
                    Date for Voting and Other Purposes

                	
                  34

                
	
                  SECTION
                    6.7

                	
                  Acts
                    of Holders

                	
                  34

                
	
                  SECTION
                    6.8

                	
                  Inspection
                    of Records

                	
                  35

                
	
                  SECTION
                    6.9

                	
                  Limitations
                    on Voting Rights

                	
                  35

                
	
                  SECTION
                    6.10

                	
                  Acceleration
                    of Maturity; Rescission of Annulment; Waivers of Past
                    Defaults

                	
                  36

                
	
                  ARTICLE
                    VII.     Representations
                    and Warranties

                	
                  39

                
	
                  SECTION
                    7.1

                	
                  Representations
                    and Warranties of the Property Trustee and the Delaware
                    Trustee

                	
                  39

                
	
                  SECTION
                    7.2

                	
                  Representations
                    and Warranties of Depositor

                	
                  40

                
	
                  ARTICLE
                    VIII.    The
                    Trustees

                	
                  41

                
	
                  SECTION
                    8.1

                	
                  Number
                    of Trustees

                	
                  41

                
	
                  SECTION
                    8.2

                	
                  Property
                    Trustee Required

                	
                  41

                
	
                  SECTION
                    8.3

                	
                  Delaware
                    Trustee Required

                	
                  41

                
	
                  SECTION
                    8.4

                	
                  Appointment
                    of Administrative Trustees

                	
                  42

                
	
                  SECTION
                    8.5

                	
                  Duties
                    and Responsibilities of the Trustees

                	
                  42

                
	
                  SECTION
                    8.6

                	
                  Notices
                    of Defaults and Extensions

                	
                  44

                
	
                  SECTION
                    8.7

                	
                  Certain
                    Rights of Property Trustee

                	
                  44

                
	
                  SECTION
                    8.8

                	
                  Delegation
                    of Power

                	
                  46

                
	
                  SECTION
                    8.9

                	
                  May
                    Hold Securities

                	
                  46

                
	
                  SECTION
                    8.10

                	
                  Compensation;
                    Reimbursement; Indemnity

                	
                  47

                
	
                  SECTION
                    8.11

                	
                  Resignation
                    and Removal; Appointment of Successor

                	
                  48

                
	
                  SECTION
                    8.12

                	
                  Acceptance
                    of Appointment by Successor

                	
                  49

                
	
                  SECTION
                    8.13

                	
                  Merger,
                    Conversion, Consolidation or Succession to Business

                	
                  49

                
	
                  SECTION
                    8.14

                	
                  Not
                    Responsible for Recitals or Issuance of Securities

                	
                  50

                
	
                  SECTION
                    8.15

                	
                  Property
                    Trustee May File Proofs of Claim

                	
                  50

                
	
                  SECTION
                    8.16

                	
                  Reports
                    to and from the Property Trustee

                	
                  50

                
	
                  ARTICLE
                    IX.    Termination,
                    Liquidation and Merger

                	
                  51

                
	
                  SECTION
                    9.1

                	
                  Dissolution
                    Upon Expiration Date

                	
                  51

                
	
                  SECTION
                    9.2

                	
                  Early
                    Termination

                	
                  51

                
	
                  SECTION
                    9.3

                	
                  Termination

                	
                  52

                
	
                  SECTION
                    9.4

                	
                  Liquidation

                	
                  52

                
	
                  SECTION
                    9.5

                	
                  Mergers,
                    Consolidations, Amalgamations or Replacements of Trust

                	
                  53

                
	
                  ARTICLE
                    X.    Information
                    to Purchaser

                	
                  55

                
	
                  SECTION
                    10.1

                	
                  Depositor
                    Obligations to Purchaser

                	
                  55

                
	
                  SECTION
                    10.2

                	
                  Property
                    Trustee’s Obligations to Purchaser

                	
                  55

                

        

         

        
          
            
            

          

          
            ii

            
              

            

          

          
            
            

          

        

        
          	
                  ARTICLE
                    XI.    Miscellaneous
                    Provisions

                	
                  55

                
	
                  SECTION
                    11.1

                	
                  Limitation
                    of Rights of Holders

                	
                  55

                
	
                  SECTION
                    11.2

                	
                  Agreed
                    Tax Treatment of Trust and Trust Securities

                	
                  55

                
	
                  SECTION
                    11.3

                	
                  Amendment

                	
                  56

                
	
                  SECTION
                    11.4

                	
                  Separability

                	
                  57

                
	
                  SECTION
                    11.5

                	
                  Governing
                    Law

                	
                  57

                
	
                  SECTION
                    11.6

                	
                  Successors

                	
                  57

                
	
                  SECTION
                    11.7

                	
                  Headings

                	
                  58

                
	
                  SECTION
                    11.8

                	
                  Reports,
                    Notices and Demands

                	
                  58

                
	
                  SECTION
                    11.9

                	
                  Agreement
                    Not to Petition

                	
                  58

                
	 	 	 
	
                  Exhibit
                    A

                	
                  Certificate
                    of Trust of NorthStar Realty Finance Trust VI

                	 
	
                  Exhibit
                    B

                	
                  Form
                    of Common Securities Certificate

                	 
	
                  Exhibit
                    C

                	
                  Form
                    of Preferred Securities Certificate

                	 
	
                  Exhibit
                    D

                	
                  Junior
                    Subordinated Indenture

                	 
	
                  Exhibit
                    E

                	
                  Form
                    of Transferee Certificate to be Executed by Transferees other
                    than
                    QIBs

                	 
	
                  Exhibit
                    F

                	
                  Form
                    of Transferor Certificate to be Executed by QIBs

                	 
	
                  Exhibit
                    G

                	
                  Form
                    of Officer’s Financial Certificate

                	 
	
                  Exhibit
                    H

                	
                  Form
                    of Officer’s Certificate pursuant to Section 8.16(a)

                	 
	 	 	 
	
                  Schedule
                    A

                	
                  Calculation
                    of LIBOR

                	 

        

      

    

     

    

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

        
        

      

    

    AMENDED
      AND RESTATED TRUST AGREEMENT, dated as of October 6, 2006, among (i) NorthStar
      Realty Finance Limited Partnership, a Delaware limited partnership (including
      any successors or permitted assigns, the “Depositor”), (ii) NorthStar Realty
      Finance Corp., a Maryland corporation (including any successors or permitted
      assigns, the “Guarantor”), (iii) Wilmington Trust Company, a Delaware banking
      corporation, as property trustee (in such capacity, the “Property Trustee”),
      (iv) Wilmington Trust Company, a Delaware banking corporation, as Delaware
      trustee (in such capacity, the “Delaware Trustee”), (v) David T. Hamamoto, an
      individual, Richard J. McCready, an individual, and Andrew C. Richardson, an
      individual, each of whose address is c/o NorthStar Realty Finance Limited
      Partnership, c/o NorthStar Realty Finance Corp., 527 Madison Avenue, New York,
      NY 10022, as administrative trustees (in such capacities, each an
“Administrative Trustee” and, collectively, the “Administrative Trustees” and,
      together with the Property Trustee and the Delaware Trustee, the “Trustees”) and
      (vi) the several Holders, as hereinafter defined.

     

    WITNESSETH

     

    

      WHEREAS,
        the
        Depositor, the Property Trustee and the Delaware Trustee have heretofore
        created
        a Delaware statutory trust pursuant to the Delaware Statutory Trust Act by
        entering into a Trust Agreement, dated as of September 29, 2006 (the “Original
        Trust Agreement”), and by executing and filing with the Secretary of State of
        the State of Delaware the Certificate of Trust, substantially in the form
        attached as Exhibit
        A;
        and

    

     

    

      WHEREAS,
        the
Depositor
        and the Trustees desire to amend and restate the Original Trust Agreement
        in its
        entirety as set forth herein to provide for, among other things, (i) the
        issuance of the Common Securities by the Trust to the Depositor, (ii) the
        issuance and sale of the Preferred Securities by the Trust pursuant to the
        Purchase Agreement and (iii) the acquisition by the Trust from the Depositor
        of
        all of the right, title and interest in and to the Notes;

    

     

    NOW,
      THEREFORE,
      in
      consideration of the agreements and obligations set forth herein and for other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, each party, for the benefit of the other parties and for the
      benefit of the Holders, hereby amends and restates the Original Trust Agreement
      in its entirety and agrees as follows:

     

    ARTICLE
      I. 

     

    DEFINED
      TERMS

     

    SECTION
      1.1.  Definitions.

     

    For
      all
      purposes of this Trust Agreement, except as otherwise expressly provided or
      unless the context otherwise requires:

     

    (a) the
      terms
      defined in this Article
      I
      have the
      meanings assigned to them in this Article
      I;

     

    (b) the
      words
“include”, “includes” and “including” shall be deemed to be followed by the
      phrase “without limitation”;

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    (c) all
      accounting terms used but not defined herein have the meanings assigned to
      them
      in accordance with United States generally accepted accounting
      principles;

     

    (d) unless
      the context otherwise requires, any reference to an “Article”, a “Section”, a
“Schedule” or an “Exhibit” refers to an Article, a Section, a Schedule or an
      Exhibit, as the case may be, of or to this Trust Agreement;

     

    (e) the
      words
“hereby”, “herein”, “hereof” and “hereunder” and other words of similar import
      refer to this Trust Agreement as a whole and not to any particular Article,
      Section or other subdivision;

     

    (f) a
      reference to the singular includes the plural and vice versa; and

     

              (g) the
      masculine, feminine or neuter genders used herein shall include the masculine,
      feminine and neuter genders.

     

    “Act”
has
      the meaning specified in Section
      6.7.

     

    “Additional
      Interest” has the meaning specified in Section
      1.1
      of the
      Indenture.

     

    “Additional
      Interest Amount” means, with respect to Trust Securities of a given Liquidation
      Amount and/or a given period, the amount of Additional Interest paid by the
      Depositor on a Like Amount of Notes for such period.

     

    “Additional
      Taxes” has the meaning specified in Section
      1.1
      of the
      Indenture.

     

    “Additional
      Tax Sums” has the meaning specified in Section
      10.5
      of the
      Indenture.

     

    “Administrative
      Trustee” means each of the Persons identified as an “Administrative Trustee” in
      the preamble to this Trust Agreement, solely in each such Person’s capacity as
      Administrative Trustee of the Trust and not in such Person’s individual
      capacity, or any successor Administrative Trustee appointed as herein
      provided.

     

    “Affiliate”
      of any specified Person means any other Person directly or indirectly
      controlling or controlled by or under direct or indirect common control with
      such specified Person. For the purposes of this definition, “control” when used
      with respect to any specified Person means the power to direct the management
      and policies of such Person, directly or indirectly, whether through the
      ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative to the
      foregoing.

     

    “Applicable
      Depositary Procedures” means, with respect to any transfer or transaction
      involving a Book-Entry Preferred Security, the rules and procedures of the
      Depositary for such Book-Entry Preferred Security, in each case to the extent
      applicable to such transaction and as in effect from time to time.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Bankruptcy
      Event” means, with respect to any Person:

     

    (a)
      the
      entry of a decree or order by a court having jurisdiction in the premises (i)
      judging such Person a bankrupt or insolvent, (ii) approving as properly filed
      a
      petition seeking reorganization, arrangement, adjudication or composition of
      or
      in respect of such Person under any applicable Federal or state bankruptcy,
      insolvency, reorganization or other similar law, (iii) appointing a custodian,
      receiver, liquidator, assignee, trustee, sequestrator or other similar official
      of such Person or of any substantial part of its property or (iv) ordering
      the
      winding up or liquidation of its affairs, and the continuance of any such decree
      or order unstayed and in effect for a period of sixty (60) consecutive days;
      or

     

    (b)
      the
      institution by such Person of proceedings to be adjudicated a bankrupt or
      insolvent, or the consent by it to the institution of bankruptcy or insolvency
      proceedings against it, or the filing by it of a petition or answer or consent
      seeking reorganization or relief under any applicable Bankruptcy Law, or the
      consent by it to the filing of any such petition or to the appointment of a
      custodian, receiver, liquidator, assignee, trustee, sequestrator or similar
      official of such Person or of any substantial part of its property, or the
      making by it of an assignment for the benefit of creditors, or the admission
      by
      it in writing of its inability to pay its debts generally as they become due
      and
      its willingness to be adjudicated a bankrupt or insolvent, or the taking of
      corporate action by such Person in furtherance of any such action.

     

    “Bankruptcy
      Law” means all Federal and state bankruptcy, insolvency, reorganization and
      other similar laws, including the United States Bankruptcy Code.

     

    “Book-Entry
      Preferred Security” means a Preferred Security, the ownership and transfers of
      which shall be made through book entries by a Depositary.

     

    “Business
      Day” means a day other than (a) a Saturday or Sunday, (b) a day on which banking
      institutions in the City of New York are authorized or required by law or
      executive order to remain closed or (c) a day on which the Corporate Trust
      Office is closed for business.

     

    “Calculation
      Agent” has the meaning specified in Section
      4.10.

     

    “Change
      of Control” has the meaning specified in the Indenture. 

     

    “Closing
      Date” has the meaning specified in the Purchase Agreement.

     

    “Code”
      means the United States Internal Revenue Code of 1986, as amended.

     

    “Commission”
      means the Securities and Exchange Commission, as from time to time constituted,
      created under the Exchange Act or, if at any time after the execution of this
      Trust Agreement such Commission is not existing and performing the duties
      assigned to it, then the body performing such duties at such time.

     

    “Common
      Securities Certificate” means a certificate evidencing ownership of Common
      Securities, substantially in the form attached as Exhibit
      B.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Common
      Security” means a common security of the Trust, denominated as such and
      representing an undivided beneficial interest in the assets of the Trust, having
      a Liquidation Amount of $1,000 and having the terms provided therefor in this
      Trust Agreement.

     

    “Corporate
      Trust Office” means the principal office of the Property Trustee at which any
      particular time its corporate trust business shall be administered, which office
      at the date of this Trust Agreement is located at Rodney Square North, 1100
      North Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate
      Capital Markets.

     

    “Definitive
      Preferred Securities Certificates” means Preferred Securities issued in
      certificated, fully registered form that are not Global Preferred
      Securities.

     

    “Delaware
      Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del.
      Code § 3801 et seq., or any successor statute thereto, in each case as amended
      from time to time.

     

    “Delaware
      Trustee” means the Person identified as the “Delaware Trustee” in the preamble
      to this Trust Agreement, solely in its capacity as Delaware Trustee of the
      Trust
      and not in its individual capacity, or its successor in interest in such
      capacity, or any successor Delaware Trustee appointed as herein
      provided.

     

    “Depositary”
      means an organization registered as a clearing agency under the Exchange Act
      that is designated as Depositary by the Depositor or any successor thereto.
      DTC
      will be the initial Depositary.

     

    “Depositary
      Participant” means a broker, dealer, bank, other financial institution or other
      Person for whom from time to time the Depositary effects book-entry transfers
      and pledges of securities deposited with the Depositary.

     

    “Depositor”
      has the meaning specified in the preamble to this Trust Agreement and any
      successors and permitted assigns.

     

    “Depositor
      Affiliate” has the meaning specified in Section
      4.9.

     

    “Distribution
      Date” has the meaning specified in Section
      4.1(a)(i).

     

    “Distributions”
      means amounts payable in respect of the Trust Securities as provided in
Section
      4.1.

     

    “DTC”
      means The Depository Trust Company or any successor thereto.

     

    “Early
      Termination Event” has the meaning specified in Section
      9.2.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “Event
      of
      Default” means any one of the following events (whatever the reason for such
      event and whether it shall be voluntary or involuntary or be effected by
      operation of law or pursuant to any judgment, decree or order of any court
      or
      any order, rule or regulation of any administrative or governmental
      body):

     

    (a)
      the
      occurrence of a Note Event of Default; or

     

    (b)
      default by the Trust in the payment of any Distribution when it becomes due
      and
      payable, and continuation of such default for a period of thirty (30) days;
      or

     

    (c)
      default by the Trust in the payment of any Redemption Price of any Trust
      Security when it becomes due and payable; or

     

    (d)
      default in the performance, or breach, in any material respect of any covenant
      or warranty of the Trustees in this Trust Agreement (other than those specified
      in clause (b) or (c) above) and continuation of such default or breach for
      a
      period of thirty (30) days after there has been given, by registered or
      certified mail, to the Trustees and to the Depositor by the Holders of at least
      twenty-five percent (25%) in aggregate Liquidation Amount of the Outstanding
      Preferred Securities a written notice specifying such default or breach and
      requiring it to be remedied and stating that such notice is a “Notice of
      Default” hereunder; or

     

    (e)
      the
      occurrence of a Bankruptcy Event with respect to the Property Trustee if a
      successor Property Trustee has not been appointed within ninety (90) days
      thereof.

     

    “Exchange
      Act” means the Securities Exchange Act of 1934, and any successor statute
      thereto, in each case as amended from time to time.

     

    “Expiration
      Date” has the meaning specified in Section
      9.1.

     

    “Fiscal
      Year” shall be the fiscal year of the Trust, which shall be the calendar year,
      or such other period as is required by the Code.

     

    “Global
      Preferred Security” means a Preferred Securities Certificate evidencing
      ownership of Book-Entry Preferred Securities.

     

    “Guarantor”
      has the meaning specified in the preamble to this Trust Agreement and any
      successors and permitted assigns.

     

    “Holder”
      means a Person in whose name a Trust Security or Trust Securities are registered
      in the Securities Register; any such Person shall be a beneficial owner within
      the meaning of the Delaware Statutory Trust Act.

     

    “Indemnified
      Person” has the meaning specified in Section
      8.10(c).

     

    “Indenture”
      means the Junior Subordinated Indenture executed and delivered by the Depositor,
      the Guarantor and the Note Trustee contemporaneously with the execution and
      delivery of this Trust Agreement, for the benefit of the holders of the Notes,
      a
      copy of which is attached hereto as Exhibit
      D,
      as
      amended or supplemented from time to time.

     

    “Indenture
      Redemption Price” has the meaning specified in Section
      4.2(c).

     

    “Interest
      Payment Date” has the meaning specified in Section
      1.1
      of the
      Indenture.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Investment
      Company Act” means the Investment Company Act of 1940, or any successor statute
      thereto, in each case as amended from time to time.

     

    “Investment
      Company Event” has the meaning specified in Section
      1.1
      of the
      Indenture.

     

    “LIBOR”
      has the meaning specified in Schedule
      A.

     

    “LIBOR
      Business Day” has the meaning specified in Schedule
      A.

     

    “LIBOR
      Determination Date” has the meaning specified in Schedule
      A.
      

     

    “Lien”
      means any lien, pledge, charge, encumbrance, mortgage, deed of trust, adverse
      ownership interest, hypothecation, assignment, security interest or preference,
      priority or other security agreement or preferential arrangement of any kind
      or
      nature whatsoever.

     

    “Like
      Amount” means (a) with respect to a redemption of any Trust Securities, Trust
      Securities having a Liquidation Amount equal to the principal amount of Notes
      to
      be contemporaneously redeemed or paid at maturity in accordance with the
      Indenture, the proceeds of which will be used to pay the Redemption Price of
      such Trust Securities, (b) with respect to a distribution of Notes to Holders
      of
      Trust Securities in connection with a dissolution of the Trust, Notes having
      a
      principal amount equal to the Liquidation Amount of the Trust Securities of
      the
      Holder to whom such Notes are distributed and (c) with respect to any
      distribution of Additional Interest Amounts to Holders of Trust Securities,
      Notes having a principal amount equal to the Liquidation Amount of the Trust
      Securities in respect of which such distribution is made.

     

    “Liquidation
      Amount” means the stated amount of $1,000 per Trust Security.

     

    “Liquidation
      Date” means the date on which assets are to be distributed to Holders in
      accordance with Section
      9.4(a)
      hereunder following dissolution of the Trust.

     

    “Liquidation
      Distribution” has the meaning specified in Section
      9.4(d).

     

    “Majority
      in Liquidation Amount of the Preferred Securities” means Preferred Securities
      representing more than fifty percent (50%) of the aggregate Liquidation Amount
      of all (or a specified group of) then Outstanding Preferred
      Securities.

     

    “Note
      Event of Default” means any “Event of Default” specified in Section
      5.1
      of the
      Indenture.

     

    “Note
      Redemption Date” means, with respect to any Notes to be redeemed under the
      Indenture, the date fixed for redemption of such Notes under the
      Indenture.

     

    “Note
      Trustee” means the Person identified as the “Trustee” in the Indenture, solely
      in its capacity as Trustee pursuant to the Indenture and not in its individual
      capacity, or its successor in interest in such capacity, or any successor
      Trustee appointed as provided in the Indenture.

     

    “Notes”
      means the Depositor’s Junior Subordinated Notes issued pursuant to the
      Indenture.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    “Officer’s
      Certificate” means a certificate signed by the Chief Executive Officer, the
      President, an Executive Vice President, the Chief Financial Officer, the
      Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary,
      of the Depositor or the Guarantor, as applicable, and delivered to the Trustees.
      Any Officer’s Certificate delivered with respect to compliance with a condition
      or covenant provided for in this Trust Agreement (other than the certificate
      provided pursuant to Section
      8.16(a))
      shall
      include:

     

    (a)
      a
      statement by each officer signing the Officer’s Certificate that such officer
      has read the covenant or condition and the definitions relating
      thereto;

     

    (b)
      a
      brief statement of the nature and scope of the examination or investigation
      undertaken by such officer in rendering the Officer’s Certificate;

     

    (c)
      a
      statement that such officer has made such examination or investigation as,
      in
      such officer’s opinion, is necessary to enable such officer to express an
      informed opinion as to whether or not such covenant or condition has been
      complied with; and

     

    (d)
      a
      statement as to whether, in the opinion of such officer, such condition or
      covenant has been complied with.

     

    “Operative
      Documents” means the Purchase Agreement, the Indenture, the Trust Agreement, the
      Notes and the Trust Securities.

     

    “Opinion
      of Counsel” means a written opinion of counsel, who may be counsel for, or an
      employee of, the Depositor or the Guarantor or any Affiliate of the Depositor
      or
      the Guarantor.

     

    “Original
      Issue Date” means the date of original issuance of the Trust
      Securities.

     

    “Original
      Trust Agreement” has the meaning specified in the recitals to this Trust
      Agreement.

     

    “Outstanding,”
      when used with respect to any Trust Securities, means, as of the date of
      determination, all Trust Securities theretofore executed and delivered under
      this Trust Agreement, except:

     

    (a)
      Trust
      Securities theretofore canceled by the Property Trustee or delivered to the
      Property Trustee for cancellation;

     

    (b)
      Trust
      Securities for which payment or redemption money in the necessary amount has
      been theretofore deposited with the Property Trustee or any Paying Agent in
      trust for the Holders of such Trust Securities; provided, that if such Trust
      Securities are to be redeemed, notice of such redemption has been duly given
      pursuant to this Trust Agreement; and

     

    (c)
      Trust
      Securities that have been paid or in exchange for or in lieu of which other
      Trust Securities have been executed and delivered pursuant to the provisions
      of
      this Trust Agreement, unless proof satisfactory to the Property Trustee is
      presented that any such Trust Securities are held by Holders in whose hands
      such
      Trust Securities are valid, legal and binding obligations of the
      Trust;

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    provided,
      that in determining whether the Holders of the requisite Liquidation Amount
      of
      the Outstanding Preferred Securities have given any request, demand,
      authorization, direction, notice, consent or waiver hereunder, Preferred
      Securities owned by the Depositor, the Guarantor, any Trustee or any Affiliate
      of the Depositor, the Guarantor or of any Trustee shall be disregarded and
      deemed not to be Outstanding, except that (i) in determining whether any Trustee
      shall be protected in relying upon any such request, demand, authorization,
      direction, notice, consent or waiver, only Preferred Securities that such
      Trustee knows to be so owned shall be so disregarded and (ii) the foregoing
      shall not apply at any time when all of the Outstanding Preferred Securities
      are
      owned by the Depositor, the Guarantor, one or more of the Trustees and/or any
      such Affiliate. Preferred Securities so owned that have been pledged in good
      faith may be regarded as Outstanding if the pledgee establishes to the
      satisfaction of the Administrative Trustees the pledgee’s right so to act with
      respect to such Preferred Securities and that the pledgee is not the Depositor,
      the Guarantor, any Trustee or any Affiliate of the Depositor, the Guarantor
      or
      of any Trustee.

     

    “Owner”
      means each Person who is the beneficial owner of Book-Entry Preferred Securities
      as reflected in the records of the Depositary or, if a Depositary Participant
      is
      not the beneficial owner, then the beneficial owner as reflected in the records
      of the Depositary Participant.

     

    “Paying
      Agent” means any Person authorized by the Administrative Trustees to pay
      Distributions or other amounts in respect of any Trust Securities on behalf
      of
      the Trust.

     

    “Payment
      Account” means a segregated non-interest-bearing corporate trust account
      maintained by the Property Trustee for the benefit of the Holders in which
      all
      amounts paid in respect of the Notes will be held and from which the Property
      Trustee, through the Paying Agent, shall make payments to the Holders in
      accordance with Sections
      3.1,
      4.1
      and
4.2.

     

    “Person”
      means a legal person, including any individual, corporation, estate,
      partnership, joint venture, association, joint stock company, company, limited
      liability company, trust, unincorporated association or government, or any
      agency or political subdivision thereof, or any other entity of whatever
      nature.

     

    “Preferred
      Security” means a preferred security of the Trust, denominated as such and
      representing an undivided beneficial interest in the assets of the Trust, having
      a Liquidation Amount of $1,000 and having the terms provided therefor in this
      Trust Agreement.

     

    “Preferred
      Securities Certificate” means a certificate evidencing ownership of Preferred
      Securities, substantially in the form attached as Exhibit
      C.

     

    “Property
      Trustee” means the Person identified as the “Property Trustee” in the preamble
      to this Trust Agreement, solely in its capacity as Property Trustee of the
      Trust
      and not in its individual capacity, or its successor in interest in such
      capacity, or any successor Property Trustee appointed as herein
      provided.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    “Purchase
      Agreement” means the Purchase Agreement, dated as of October 6, 2006, executed
      and delivered by the Trust, the Depositor, the Guarantor, and the
      Purchaser.

     

    “Purchaser”
      means Merrill Lynch International, whose address is 4 World Financial Center,
      250 Vesey Street, 7th Floor, New York, NY 10080, Attention: Michael Rogozinski,
      as purchaser of the Preferred Securities pursuant to the Purchase
      Agreement.

     

    “QIB”
      means a “qualified institutional buyer” as defined in Rule 144A under the
      Securities Act.

     

    “Redemption
      Date” means, with respect to any Trust Security to be redeemed, the date fixed
      for such redemption by or pursuant to this Trust Agreement; provided, that
      each
      Note Redemption Date and the stated maturity (or any date of principal repayment
      upon early maturity) of the Notes shall be a Redemption Date for a Like Amount
      of Trust Securities.

     

    “Redemption
      Price” means, with respect to any Trust Security, the Liquidation Amount of such
      Trust Security, plus accumulated and unpaid Distributions to the Redemption
      Date, plus the related amount of the premium, if any, paid by the Depositor
      upon
      the concurrent redemption or payment at maturity of a Like Amount of
      Notes.

     

    “Reference
      Banks” has the meaning specified in Schedule
      A.

     

    “Responsible
      Officer” means, with respect to the Property Trustee, any Senior Vice President,
      any Vice President, any Assistant Vice President, the Secretary, any Assistant
      Secretary, the Treasurer, any Assistant Treasurer, any Trust Officer or
      Assistant Trust Officer or any other officer in the Corporate Trust Office
      of
      the Property Trustee with direct responsibility for the administration of this
      Trust Agreement and also means, with respect to a particular corporate trust
      matter, any other officer of the Property Trustee to whom such matter is
      referred because of that officer’s knowledge of and familiarity with the
      particular subject.

     

    “Securities
      Act” means the Securities Act of 1933, and any successor statute thereto, in
      each case as amended from time to time.

     

    “Securities
      Certificate” means any one of the Common Securities Certificates or the
      Preferred Securities Certificates.

     

    “Securities
      Register” and “Securities Registrar” have the respective meanings specified in
Section
      5.7.

     

    “Special
      Event Redemption Price” has the meaning specified in Section
      11.2
      of the
      Indenture.

     

    “Successor
      Securities” has the meaning specified in Section
      9.5(a).

     

    “Tax
      Event” has the meaning specified in Section
      1.1
      of the
      Indenture.

     

    “Trust”
      means the Delaware statutory trust known as “NorthStar Realty Finance Trust VI,”
which was created on September 29, 2006, under the Delaware Statutory Trust
      Act
      pursuant to the Original Trust Agreement and the filing of the Certificate
      of
      Trust, and continued pursuant to this Trust Agreement.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    “Trust
      Agreement” means this Amended and Restated Trust Agreement, including all
      Schedules and Exhibits (other than Exhibit D), as the same may be modified,
      amended or supplemented from time to time in accordance with the applicable
      provisions hereof.

     

    “Trustees”
      means the Administrative Trustees, the Property Trustee and the Delaware
      Trustee, each as defined in this Article
      I.

     

    “Trust
      Property” means (a) the Notes, (b) any cash on deposit in, or owing to, the
      Payment Account and (c) all proceeds and rights in respect of the foregoing
      and
      any other property and assets for the time being held or deemed to be held
      by
      the Property Trustee pursuant to the trusts of this Trust
      Agreement.

     

    “Trust
      Security” means any one of the Common Securities or the Preferred
      Securities.

     

     

    ARTICLE
      II.

     

    THE
      TRUST

     

    SECTION
      2.1.  Name.

     

    The
      trust
      continued hereby shall be known as “NorthStar Realty Finance Trust VI,” as such
      name may be modified from time to time by the Administrative Trustees following
      written notice to the Holders of Trust Securities and the other Trustees, in
      which name the Trustees may conduct the business of the Trust, make and execute
      contracts and other instruments on behalf of the Trust and sue and be
      sued.

     

    SECTION
      2.2.  Office
      of
      the Delaware Trustee; Principal Place of Business.

     

    The
      address of the Delaware Trustee in the State of Delaware is Rodney Square North,
      1100 North Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate
      Capital Markets, or such other address in the State of Delaware as the Delaware
      Trustee may designate by written notice to the Holders, the Depositor, the
      Guarantor, the Property Trustee and the Administrative Trustees. The principal
      executive office of the Trust is c/o NorthStar Realty Finance Corp., 527 Madison
      Avenue, New York, NY 10022, Attention: Chief Financial Officer, as such address
      may be changed from time to time by the Administrative Trustees following
      written notice to the Holders and the other Trustees.

     

    SECTION
      2.3.  Initial
      Contribution of Trust Property; Fees, Costs and Expenses.

     

    The
      Property Trustee acknowledges receipt from the Depositor in connection with
      the
      Original Trust Agreement of the sum of ten dollars ($10), which constituted
      the
      initial Trust Property. The Depositor shall pay all fees, costs and expenses
      of
      the Trust (except with respect to the Trust Securities) as they arise or shall,
      upon request of any Trustee, promptly reimburse such Trustee for any such fees,
      costs and expenses paid by such Trustee. The Depositor shall make no claim
      upon
      the Trust Property for the payment of such fees, costs or expenses.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    SECTION
      2.4.  Purposes
      of Trust.

     

    (a)  The
      exclusive purposes and functions of the Trust are to (i) issue and sell Trust
      Securities and use the proceeds from such sale to acquire the Notes and (ii)
      engage in only those activities necessary or incidental thereto. The Delaware
      Trustee, the Property Trustee and the Administrative Trustees are trustees
      of
      the Trust, and have all the rights, powers and duties to the extent set forth
      herein. The Trustees hereby acknowledge that they are trustees of the
      Trust.

     

    (b)  So
      long
      as this Trust Agreement remains in effect, the Trust (or the Trustees acting
      on
      behalf of the Trust) shall not undertake any business, activities or transaction
      except as expressly provided herein or contemplated hereby. In particular,
      the
      Trust (or the Trustees acting on behalf of the Trust) shall not (i) acquire
      any
      investments or engage in any activities not authorized by this Trust Agreement,
      (ii) sell, assign, transfer, exchange, mortgage, pledge, set-off or otherwise
      dispose of any of the Trust Property or interests therein, including to Holders,
      except as expressly provided herein, (iii) incur any indebtedness for borrowed
      money or issue any other debt, (iv) take or consent to any action that would
      result in the placement of a Lien on any of the Trust Property, (v) take or
      consent to any action that would reasonably be expected to cause (or, in the
      case of the Property Trustee, to the actual knowledge of a Responsible Officer
      would cause) the Trust to become taxable as a corporation or classified as
      other
      than a grantor trust for United States federal income tax purposes, (vi) take
      or
      consent to any action that would cause (or, in the case of the Property Trustee,
      to the actual knowledge of a Responsible Officer would cause) the Notes to
      be
      treated as other than indebtedness of the Depositor for United States federal
      income tax purposes or (vii) take or consent to any action that would cause
      (or,
      in the case of the Property Trustee, to the actual knowledge of a Responsible
      Officer would cause) the Trust to be deemed to be an “investment company”
required to be registered under the Investment Company Act.

     

    SECTION
      2.5.  Authorization
      to Enter into Certain Transactions.

     

    (a)  The
      Trustees shall conduct the affairs of the Trust in accordance with and subject
      to the terms of this Trust Agreement. In accordance with the following
      provisions (i) and (ii), the Trustees shall have the authority to enter into
      all
      transactions and agreements determined by the Trustees to be appropriate in
      exercising the authority, express or implied, otherwise granted to the Trustees,
      under this Trust Agreement, and to perform all acts in furtherance thereof,
      including the following:

     

    (i)  As
      among
      the Trustees, each Administrative Trustee shall severally have the power,
      authority and authorization to act on behalf of the Trust with respect to the
      following matters:

     

    (A)  the
      issuance and sale of the Trust Securities;

     

    (B)  to
      cause
      the Trust to enter into, and to execute, deliver and perform on behalf of the
      Trust, such agreements, documents, instruments, certificates and other writings
      as may be necessary or desirable in connection with the purposes and function
      of
      the Trust, including, without limitation, a common securities subscription
      agreement and a junior subordinated note subscription agreement and to cause
      the
      Trust to perform under the Purchase Agreement;

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (C)  assisting
      in the sale of the Preferred Securities in one or more transactions exempt
      from
      registration under the Securities Act, and in compliance with applicable state
      securities or blue sky laws;

     

    (D)  assisting
      in the sending of notices (other than notices of default) and other information
      regarding the Trust Securities and the Notes to the Holders in accordance with
      this Trust Agreement;

     

    (E)  the
      appointment of a successor Paying Agent and Calculation Agent in accordance
      with
      this Trust Agreement;

     

    (F)  execution
      and delivery of the Trust Securities on behalf of the Trust in accordance with
      this Trust Agreement;

     

    (G)  execution
      and delivery of closing certificates, if any, pursuant to the Purchase
      Agreement;

     

    (H)  preparation
      and filing of all applicable tax returns and tax information reports that are
      required to be filed on behalf of the Trust;

     

    (I)  establishing
      a record date with respect to all actions to be taken hereunder that require
      a
      record date to be established, except as provided in Section
      6.10(a);

     

    (J)  unless
      otherwise required by the Delaware Statutory Trust Act, to execute on behalf
      of
      the Trust (either acting alone or together with the other Administrative
      Trustees) any documents and other writings that such Administrative Trustee
      has
      the power to execute pursuant to this Trust Agreement; and

     

    (K)  the
      taking of any action incidental to the foregoing as such Administrative Trustee
      may from time to time determine is necessary or advisable to give effect to
      the
      terms of this Trust Agreement.

     

    (ii)  As
      among
      the Trustees, the Property Trustee shall have the power, authority and
      authorization to act on behalf of the Trust with respect to the following
      matters:

     

    (A)  the
      receipt and holding of legal title of the Notes;

     

    (B)  the
      establishment of the Payment Account;

     

    (C)  the
      receipt of interest, principal and any other payments made in respect of the
      Notes and the holding of such amounts in the Payment Account;

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (D)  the
      distribution through the Paying Agent of amounts distributable to the Holders
      in
      respect of the Trust Securities;

     

    (E)  the
      exercise of all of the rights, powers and privileges of a holder of the Notes
      in
      accordance with the terms of this Trust Agreement;

     

    (F)  the
      sending of notices of default and other information regarding the Trust
      Securities and the Notes to the Holders in accordance with this Trust
      Agreement;

     

    (G)  the
      distribution of the Trust Property in accordance with the terms of this Trust
      Agreement;

     

    (H)  to
      the
      extent provided in this Trust Agreement, the winding up of the affairs of and
      liquidation of the Trust and the preparation, execution and filing of the
      certificate of cancellation of the Trust with the Secretary of State of the
      State of Delaware; 

     

    (I)  application
      for a taxpayer identification number for the Trust;

     

    (J)  the
      authentication of the Preferred Securities as provided in this Trust Agreement;
      and

     

    (K)  the
      taking of any action incidental to the foregoing as the Property Trustee may
      from time to time determine is necessary or advisable to give effect to the
      terms of this Trust Agreement and protect and conserve the Trust Property for
      the benefit of the Holders (without consideration of the effect of any such
      action on any particular Holder).

     

    (b)  In
      connection with the issue and sale of the Preferred Securities, the Depositor
      shall have the right and responsibility to assist the Trust with respect to,
      or
      effect on behalf of the Trust, the following (and any actions taken by the
      Depositor in furtherance of the following prior to the date of this Trust
      Agreement are hereby ratified and confirmed in all respects):

     

    (i)  the
      negotiation of the terms of, and the execution and delivery of, the Purchase
      Agreement providing for the sale of the Preferred Securities in one or more
      transactions exempt from registration under the Securities Act, and in
      compliance with applicable state securities or blue sky laws; and

     

    (ii)  the
      taking of any other actions necessary or desirable to carry out any of the
      foregoing activities.

     

    (c)  Notwithstanding
      anything herein to the contrary, the Administrative Trustees are authorized
      and
      directed to conduct the affairs of the Trust and to operate the Trust so that
      the Trust will not be taxable as a corporation or classified as other than
      a
      grantor trust for United States federal income tax purposes, so that the Notes
      will be treated as indebtedness of the Depositor for United States federal
      income tax purposes and so that the Trust will not be deemed to be an
“investment company” required to be registered under the Investment Company Act.
      In this connection, each Administrative Trustee is authorized to take any
      action, not inconsistent with applicable law, the Certificate of Trust or this
      Trust Agreement, that such Administrative Trustee determines in his or her
      discretion to be necessary or desirable for such purposes, as long as such
      action does not adversely affect in any material respect the interests of the
      Holders of the Outstanding Preferred Securities. In no event shall the
      Administrative Trustees be liable to the Trust or the Holders for any failure
      to
      comply with this Section
      2.5
      to the
      extent that such failure results solely from a change in law or regulation
      or in
      the interpretation thereof.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (d)  Any
      action taken by a Trustee in accordance with its powers shall constitute the
      act
      of and serve to bind the Trust. In dealing with any Trustee acting on behalf
      of
      the Trust, no Person shall be required to inquire into the authority of such
      Trustee to bind the Trust. Persons dealing with the Trust are entitled to rely
      conclusively on the power and authority of any Trustee as set forth in this
      Trust Agreement.

     

    SECTION
      2.6.  Assets
      of
      Trust.

     

    The
      assets of the Trust shall consist of the Trust Property.

     

    SECTION
      2.7.  Title
      to
      Trust Property.

     

    (a)  Legal
      title to all Trust Property shall be vested at all times in the Property Trustee
      and shall be held and administered by the Property Trustee in trust for the
      benefit of the Trust and the Holders in accordance with this Trust
      Agreement.

     

    (b)  The
      Holders shall not have any right or title to the Trust Property other than
      the
      undivided beneficial interest in the assets of the Trust conferred by their
      Trust Securities and they shall have no right to call for any partition or
      division of property, profits or rights of the Trust except as described below.
      The Trust Securities shall be personal property giving only the rights
      specifically set forth therein and in this Trust Agreement.

     

     

     

    ARTICLE
      III.

    

      PAYMENT
        ACCOUNT; PAYING AGENTS

    

     

    SECTION
      3.1.  Payment
      Account.

     

    (a)  On
      or
      prior to the Closing Date, the Property Trustee shall establish the Payment
      Account. The Property Trustee and the Paying Agent shall have exclusive control
      and sole right of withdrawal with respect to the Payment Account for the purpose
      of making deposits in and withdrawals from the Payment Account in accordance
      with this Trust Agreement. All monies and other property deposited or held
      from
      time to time in the Payment Account shall be held by the Property Trustee in
      the
      Payment Account for the exclusive benefit of the Holders and for Distribution
      as
      herein provided.

     

    (b)  The
      Property Trustee shall deposit in the Payment Account, promptly upon receipt,
      all payments of principal of or interest on, and any other payments with respect
      to, the Notes. Amounts held in the Payment Account shall not be invested by
      the
      Property Trustee pending distribution thereof.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    SECTION
      3.2.  Appointment
      of Paying Agents.

     

    The
      Property Trustee is appointed as the initial Paying Agent and hereby accepts
      such appointment. The Paying Agent shall make Distributions to Holders from
      the
      Payment Account and shall report the amounts of such Distributions to the
      Property Trustee and the Administrative Trustees. Any Paying Agent shall have
      the revocable power to withdraw funds from the Payment Account solely for the
      purpose of making the Distributions referred to above. The Administrative
      Trustees may revoke such power and remove the Paying Agent in their sole
      discretion. Any Person acting as Paying Agent shall be permitted to resign
      as
      Paying Agent upon thirty (30) days’ written notice to the Administrative
      Trustees and the Property Trustee. If the Property Trustee shall no longer
      be
      the Paying Agent or a successor Paying Agent shall resign or its authority
      to
      act be revoked, the Administrative Trustees shall appoint a successor (which
      shall be a bank or trust company) to act as Paying Agent. Such successor Paying
      Agent appointed by the Administrative Trustees shall execute and deliver to
      the
      Trustees an instrument in which such successor Paying Agent shall agree with
      the
      Trustees that as Paying Agent, such successor Paying Agent will hold all sums,
      if any, held by it for payment to the Holders in trust for the benefit of the
      Holders entitled thereto until such sums shall be paid to such Holders. The
      Paying Agent shall return all unclaimed funds to the Property Trustee and upon
      removal of a Paying Agent such Paying Agent shall also return all funds in
      its
      possession to the Property Trustee. The provisions of Article
      VIII
      shall
      apply to the Property Trustee also in its role as Paying Agent, for so long
      as
      the Property Trustee shall act as Paying Agent and, to the extent applicable,
      to
      any other Paying Agent appointed hereunder. Any reference in this Trust
      Agreement to the Paying Agent shall include any co-paying agent unless the
      context requires otherwise.

     

     

     

    ARTICLE
      IV.

    

      DISTRIBUTIONS;
        REDEMPTION

    

     

    SECTION
      4.1.  Distributions.

     

    (a)  The
      Trust
      Securities represent undivided beneficial interests in the Trust Property,
      and
      Distributions (including any Additional Interest Amounts) will be made on the
      Trust Securities at the rate and on the dates that payments of interest
      (including any Additional Interest) are made on the Notes.
      Accordingly:

     

    (i)  Distributions
      on the Trust Securities shall be cumulative, and shall accumulate whether or
      not
      there are funds of the Trust available for the payment of Distributions.
      Distributions shall accumulate from October 6, 2006, and, except as provided
      in
      clause (ii) below, shall be payable quarterly in arrears on March 30th,
      June
      30th,
      September 30th
      and
      December 30th
      of each
      year, commencing on December 30, 2006. If any date on which a Distribution
      is
      otherwise payable on the Trust Securities is not a Business Day, then the
      payment of such Distribution shall be made on the next succeeding Business
      Day
      (and no interest shall accrue in respect of the amounts whose payment is so
      delayed for the period from and after each such date until the next succeeding
      Business Day), except that, if such Business Day falls in the next succeeding
      calendar year, such payment shall be made on the immediately preceding Business
      Day, in each case, with the same force and effect as if made on such date (each
      date on which Distributions are payable in accordance with this Section
      4.1(a)(i), a “Distribution Date”);

     

    
      
        
        

      

      
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    (ii)  Distributions
      shall accumulate in respect of the Trust Securities at a variable rate per
      annum, reset quarterly, equal to LIBOR plus the Margin (as defined in the
      Indenture) of the Liquidation Amount of the Trust Securities, such rate being
      the rate of interest payable on the Notes. LIBOR shall be determined by the
      Calculation Agent in accordance with Schedule
      A.
      The
      amount of Distributions payable for any Distribution period shall be computed
      and paid on the basis of a 360-day year and the actual number of days elapsed
      in
      the relevant Distribution period. The amount of Distributions payable for any
      period shall include any Additional Interest Amounts in respect of such period;
      and

     

    (iii)  Distributions
      on the Trust Securities shall be made by the Paying Agent from the Payment
      Account and shall be payable on each Distribution Date only to the extent that
      the Trust has funds then on hand and available in the Payment Account for the
      payment of such Distributions.

     

    (b)  Distributions
      on the Trust Securities with respect to a Distribution Date shall be payable
      to
      the Holders thereof as they appear on the Securities Register for the Trust
      Securities at the close of business on the relevant record date, which shall
      be
      at the close of business on the fifteenth day (whether or not a Business Day)
      preceding the relevant Distribution Date. Distributions payable on any Trust
      Securities that are not punctually paid on any Distribution Date as a result
      of
      the Depositor having failed to make an interest payment under the Notes will
      cease to be payable to the Person in whose name such Trust Securities are
      registered on the relevant record date, and such defaulted Distributions and
      any
      Additional Interest Amounts will instead be payable to the Person in whose
      name
      such Trust Securities are registered on the special record date, or other
      specified date for determining Holders entitled to such defaulted Distribution
      and Additional Interest Amount, established in the same manner, and on the
      same
      date, as such is established with respect to the Notes under the
      Indenture.

     

    (c)  As
      a
      condition to the payment of any principal of or interest on the Trust Securities
      without the imposition of withholding tax, the Administrative Trustees shall
      require the previous delivery of properly completed and signed applicable U.S.
      federal income tax certifications (generally, an Internal Revenue Service Form
      W-9 (or applicable successor form) in the case of a person that is a “United
      States person” within the meaning of Section 7701(a)(30) of the Code or an
      Internal Revenue Service Form W-8 (or applicable successor form) in the case
      of
      a person that is not a “United States person” within the meaning of Section
      7701(a)(30) of the Code) and any other certification acceptable to it to enable
      the Paying Agent to determine its duties and liabilities with respect to any
      taxes or other charges that it may be required to pay, deduct or withhold in
      respect of such Trust Securities.

     

    SECTION
      4.2.  Redemption.

     

    (a)  On
      each
      Note Redemption Date and on the stated maturity (or any date of principal
      repayment upon early maturity) of the Notes and on each other date on (or in
      respect of) which any principal on the Notes is repaid, the Trust will be
      required to redeem a Like Amount of Trust Securities at the Redemption
      Price.

     

    
      
        
        

      

      
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    (b)  Notice
      of
      redemption shall be given by the Property Trustee by first-class mail, postage
      prepaid, mailed not less than thirty (30) nor more than sixty (60) days prior
      to
      the Redemption Date to each Holder of Trust Securities to be redeemed, at such
      Holder’s address appearing in the Securities Register. All notices of redemption
      shall state:

     

    (i)  the
      Redemption Date;

     

    (ii)  the
      Redemption Price or, if the Redemption Price cannot be calculated prior to
      the
      time the notice is required to be sent, the estimate of the Redemption Price
      provided pursuant to the Indenture, as calculated by the Depositor, together
      with a statement that it is an estimate and that the actual Redemption Price
      will be calculated by the Calculation Agent on the fifth Business Day prior
      to
      the Redemption Date (and if an estimate is provided, a further notice shall
      be
      sent of the actual Redemption Price on the date that such Redemption Price
      is
      calculated);

     

    (iii)  if
      less
      than all the Outstanding Trust Securities are to be redeemed, the identification
      (and, in the case of partial redemption, the respective Liquidation Amounts)
      and
      Liquidation Amounts of the particular Trust Securities to be
      redeemed;

     

    (iv)  that
      on
      the Redemption Date, the Redemption Price will become due and payable upon
      each
      such Trust Security, or portion thereof, to be redeemed and that Distributions
      thereon will cease to accumulate on such Trust Security or such portion, as
      the
      case may be, on and after said date, except as provided in Section
      4.2(d);

     

    (v)  the
      place
      or places where the Trust Securities are to be surrendered for the payment
      of
      the Redemption Price; and

     

    (vi)  such
      other provisions as the Property Trustee deems relevant.

     

    (c)  The
      Trust
      Securities (or portion thereof) redeemed on each Redemption Date shall be
      redeemed at the Redemption Price with the proceeds from the contemporaneous
      redemption or payment at maturity of Notes. Redemptions of the Trust Securities
      (or portion thereof) shall be made and the Redemption Price shall be payable
      on
      each Redemption Date only to the extent that the Trust has funds then on hand
      and available in the Payment Account for the payment of such Redemption Price.
      Under the Indenture, the Notes may be redeemed by the Depositor on any Interest
      Payment Date, at the Depositor’s option, on or after the earlier to occur of (i)
      a Change of Control Event (as defined in the Indenture) or (ii) December 30,
      2011, in whole or in part, from time to time at a redemption price equal to
      one
      hundred percent (100%) of the principal amount thereof, together, in the case
      of
      any such redemption, with accrued interest, including any Additional Interest,
      to but excluding the date fixed for redemption (the “Indenture Redemption
      Price”). The Notes may also be redeemed by the Depositor, at its option, in
      whole but not in part, upon the occurrence of an Investment Company Event or
      a
      Tax Event at the Special Event Redemption Price (as set forth in the
      Indenture).

     

    
      
        
        

      

      
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    (d)  If
      the
      Property Trustee gives a notice of redemption in respect of any Preferred
      Securities, then by 10:00 A.M., New York City time, on the Redemption Date,
      the
      Depositor shall deposit sufficient funds with the Property Trustee to pay the
      Redemption Price. If such deposit has been made by such time, then by 12:00
      noon, New York City time, on the Redemption Date, the Property Trustee will,
      with respect to Book-Entry Preferred Securities, irrevocably deposit with the
      Depositary for such Book-Entry Preferred Securities, to the extent available
      therefor, funds sufficient to pay the applicable Redemption Price and will
      give
      such Depositary irrevocable instructions and authority to pay the Redemption
      Price to the Holders of the Preferred Securities. With respect to Preferred
      Securities that are not Book-Entry Preferred Securities, the Property Trustee
      will irrevocably deposit with the Paying Agent, to the extent available
      therefor, funds sufficient to pay the applicable Redemption Price and will
      give
      the Paying Agent irrevocable instructions and authority to pay the Redemption
      Price to the Holders of the Preferred Securities upon surrender of their
      Preferred Securities Certificates. Notwithstanding the foregoing, Distributions
      payable on or prior to the Redemption Date for any Trust Securities (or portion
      thereof) called for redemption shall be payable to the Holders of such Trust
      Securities as they appear on the Securities Register on the relevant record
      dates for the related Distribution Dates. If notice of redemption shall have
      been given and funds deposited as required, then upon the date of such deposit,
      all rights of Holders holding Trust Securities (or portion thereof) so called
      for redemption will cease, except the right of such Holders to receive the
      Redemption Price and any Distribution payable in respect of the Trust Securities
      on or prior to the Redemption Date, but without interest, and, in the case
      of a
      partial redemption, the right of such Holders to receive a new Trust Security
      or
      Securities of authorized denominations, in aggregate Liquidation Amount equal
      to
      the unredeemed portion of such Trust Security or Securities, and such Securities
      (or portion thereof) called for redemption will cease to be Outstanding. In
      the
      event that any date on which any Redemption Price is payable is not a Business
      Day, then payment of the Redemption Price payable on such date will be made
      on
      the next succeeding Business Day (and no interest shall accrue in respect of
      the
      amounts whose payment is so delayed for the period from and after each such
      date
      until the next succeeding Business Day), except that, if such Business Day
      falls
      in the next succeeding calendar year, such payment shall be made on the
      immediately preceding Business Day, in each case, with the same force and effect
      as if made on such date. In the event that payment of the Redemption Price
      in
      respect of any Trust Securities (or portion thereof) called for redemption
      is
      improperly withheld or refused and not paid either by the Trust or by the
      Depositor or the Guarantor pursuant to the Indenture, Distributions on such
      Trust Securities (or portion thereof) will continue to accumulate, as set forth
      in Section
      4.1,
      from
      the Redemption Date originally established by the Trust for such Trust
      Securities(or portion thereof) to the date such Redemption Price is actually
      paid, in which case the actual payment date will be the date fixed for
      redemption for purposes of calculating the Redemption Price.

     

    (e)  Subject
      to Section
      4.3(a),
      if
      less than all the Outstanding Trust Securities are to be redeemed on a
      Redemption Date, then the aggregate Liquidation Amount of Trust Securities
      to be
      redeemed shall be allocated pro rata to the Common Securities and the Preferred
      Securities based upon the relative aggregate Liquidation Amounts of the Common
      Securities and the Preferred Securities. The Preferred Securities to be redeemed
      shall be selected on a pro rata basis based upon their respective Liquidation
      Amounts not more than sixty (60) days prior to the Redemption Date by the
      Property Trustee from the Outstanding Preferred Securities not previously called
      for redemption; provided, however, that with respect to Holders that would
      be
      required to hold less than one hundred (100) but more than zero (0) Trust
      Securities as a result of such redemption, the Trust shall redeem Trust
      Securities of each such Holder so that after such redemption such Holder shall
      hold either one hundred (100) Trust Securities or such Holder no longer holds
      any Trust Securities, and shall use such method (including, without limitation,
      by lot) as the Trust shall deem fair and appropriate; and provided, further,
      that so long as the Preferred Securities are Book-Entry Preferred Securities,
      such selection shall be made in accordance with the Applicable Depositary
      Procedures for the Preferred Securities by such Depositary. The Property Trustee
      shall promptly notify the Securities Registrar in writing of the Preferred
      Securities (or portion thereof) selected for redemption and, in the case of
      any
      Preferred Securities selected for partial redemption, the Liquidation Amount
      thereof to be redeemed. For all purposes of this Trust Agreement, unless the
      context otherwise requires, all provisions relating to the redemption of
      Preferred Securities shall relate, in the case of any Preferred Securities
      redeemed or to be redeemed only in part, to the portion of the aggregate
      Liquidation Amount of Preferred Securities that has been or is to be
      redeemed.

     

    
      
        
        

      

      
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    (f)  The
      Trust
      in issuing the Trust Securities may use “CUSIP” numbers (if then generally in
      use), and, if so, the Property Trustee shall indicate the “CUSIP” numbers of the
      Trust Securities in notices of redemption and related materials as a convenience
      to Holders; provided, that any such notice may state that no representation
      is
      made as to the correctness of such numbers either as printed on the Trust
      Securities or as contained in any notice of redemption and related
      materials.

     

    SECTION
      4.3.  Subordination
      of Common Securities.

     

    (a)  Payment
      of Distributions (including any Additional Interest Amounts) on, the Redemption
      Price of and the Liquidation Distribution in respect of, the Trust Securities,
      as applicable, shall be made, pro rata among the Common Securities and the
      Preferred Securities based on the Liquidation Amount of the respective Trust
      Securities; provided, that if on any Distribution Date, Redemption Date or
      Liquidation Date an Event of Default shall have occurred and be continuing,
      no
      payment of any Distribution (including any Additional Interest Amounts) on,
      Redemption Price of or Liquidation Distribution in respect of, any Common
      Security, and no other payment on account of the redemption, liquidation or
      other acquisition of Common Securities, shall be made unless payment in full
      in
      cash of all accumulated and unpaid Distributions (including any Additional
      Interest Amounts) on all Outstanding Preferred Securities for all Distribution
      periods terminating on or prior thereto, or in the case of payment of the
      Redemption Price the full amount of such Redemption Price on all Outstanding
      Preferred Securities then called for redemption, or in the case of payment
      of
      the Liquidation Distribution the full amount of such Liquidation Distribution
      on
      all Outstanding Preferred Securities, shall have been made or provided for,
      and
      all funds immediately available to the Property Trustee shall first be applied
      to the payment in full in cash of all Distributions (including any Additional
      Interest Amounts) on, or the Redemption Price of or the Liquidation Distribution
      in respect of, the Preferred Securities then due and payable.

     

    (b)  In
      the
      case of the occurrence of any Event of Default, the Holders of the Common
      Securities shall have no right to act with respect to any such Event of Default
      under this Trust Agreement until all such Events of Default with respect to
      the
      Preferred Securities have been cured, waived or otherwise eliminated. Until
      all
      such Events of Default under this Trust Agreement with respect to the Preferred
      Securities have been so cured, waived or otherwise eliminated, the Property
      Trustee shall act solely on behalf of the Holders of the Preferred Securities
      and not on behalf of the Holders of the Common Securities, and only the Holders
      of all the Preferred Securities will have the right to direct the Property
      Trustee to act on their behalf.

     

    
      
        
        

      

      
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    SECTION
      4.4.  Payment
      Procedures.

     

    Payments
      of Distributions (including any Additional Interest Amounts), the Redemption
      Price, Liquidation Amount or any other amounts in respect of the Preferred
      Securities shall be made by wire transfer at such place and to such account
      at a
      banking institution in the United States as may be designated in writing at
      least ten (10) Business Days prior to the date for payment by the Person
      entitled thereto unless proper written transfer instructions have not been
      received by the relevant record date, in which case such payments shall be
      made
      by check mailed to the address of such Person as such address shall appear
      in
      the Securities Register. If any Preferred Securities are held by a Depositary,
      such Distributions thereon shall be made to the Depositary in immediately
      available funds. Payments in respect of the Common Securities shall be made
      in
      such manner as shall be mutually agreed between the Property Trustee and the
      Holder of all the Common Securities.

     

    SECTION
      4.5.  Withholding
      Tax.

     

    The
      Trust
      and the Administrative Trustees shall comply with all withholding and backup
      withholding tax requirements under United States federal, state and local law.
      The Administrative Trustees on behalf of the Trust shall request, and the
      Holders shall provide to the Trust, such forms or certificates as are necessary
      to establish an exemption from withholding and backup withholding tax with
      respect to each Holder and any representations and forms as shall reasonably
      be
      requested by the Administrative Trustees on behalf of the Trust to assist it
      in
      determining the extent of, and in fulfilling, its withholding and backup
      withholding tax obligations. The Administrative Trustees shall file required
      forms with applicable jurisdictions and, unless an exemption from withholding
      and backup withholding tax is properly established by a Holder, shall remit
      amounts withheld with respect to the Holder to applicable jurisdictions. To
      the
      extent that the Trust is required to withhold and pay over any amounts to any
      jurisdiction with respect to Distributions or allocations to any Holder, the
      amount withheld shall be deemed to be a Distribution in the amount of the
      withholding to the Holder. In the event of any claimed overwithholding, Holders
      shall be limited to an action against the applicable jurisdiction. If the amount
      required to be withheld was not withheld from actual Distributions made, the
      Administrative Trustees on behalf of the Trust may reduce subsequent
      Distributions by the amount of such required withholding.

     

    SECTION
      4.6.  Tax
      Returns and Other Reports.

     

    (a)  The
      Administrative Trustees shall prepare (or cause to be prepared) at the principal
      office of the Trust in the United States, as defined for purposes of Treasury
      regulations section 301.7701-7, at the Depositor’s expense, and file, all United
      States federal, state and local tax and information returns and reports required
      to be filed by or in respect of the Trust. The Administrative Trustees shall
      prepare at the principal office of the Trust in the United States, as defined
      for purposes of Treasury regulations section 301.7701-7, and furnish (or cause
      to be prepared and furnished), by January 31 in each taxable year of the Trust
      to each Holder all Internal Revenue Service forms and returns required to be
      provided by the Trust. The Administrative Trustees shall provide the Depositor
      and the Property Trustee with a copy of all such returns and reports promptly
      after such filing or furnishing.

     

    
      
        
        

      

      
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    SECTION
      4.7.  Payment
      of Taxes, Duties, Etc. of the Trust.

     

    Upon
      receipt under the Notes of Additional Tax Sums and upon the written direction
      of
      the Administrative Trustees, the Property Trustee shall promptly pay, solely
      out
      of monies on deposit pursuant to this Trust Agreement, any Additional Taxes
      imposed on the Trust by the United States or any other taxing
      authority.

     

    SECTION
      4.8.  Payments
      under Indenture or Pursuant to Direct Actions.

     

    Any
      amount payable hereunder to any Holder of Preferred Securities shall be reduced
      by the amount of any corresponding payment such Holder (or any Owner with
      respect thereto) has directly received pursuant to Section
      5.8
      of the
      Indenture or Section
      6.10(b)
      of this
      Trust Agreement.

     

    SECTION
      4.9.  Exchanges.

     

    (a)  If
      at any
      time the Depositor or any of its Affiliates (in either case, a “Depositor
      Affiliate”) is the Owner or Holder of any Preferred Securities, such Depositor
      Affiliate shall have the right to deliver to the Property Trustee all or such
      portion of its Preferred Securities as it elects and, subject to compliance
      with
      Sections 2.2 and 3.5 of the Indenture, receive, in exchange therefor, a Like
      Amount of Notes. Such election (i) shall be exercisable effective on any
      Distribution Date by such Depositor Affiliate delivering to the Property Trustee
      a written notice of such election specifying the Liquidation Amount of Preferred
      Securities with respect to which such election is being made and the
      Distribution Date on which such exchange shall occur, which Distribution Date
      shall be not less than ten (10) Business Days after the date of receipt by
      the
      Property Trustee of such election notice and (ii) shall be conditioned upon
      such
      Depositor Affiliate having delivered or caused to be delivered to the Property
      Trustee or its designee the Preferred Securities that are the subject of such
      election by 10:00 A.M. New York time, on the Distribution Date on which such
      exchange is to occur. After the exchange, such Preferred Securities will be
      canceled and will no longer be deemed to be Outstanding and all rights of the
      Depositor Affiliate with respect to such Preferred Securities will
      cease.

     

    (b)  In
      the
      case of an exchange described in Section
      4.9(a),
      the
      Property Trustee on behalf of the Trust will, on the date of such exchange,
      exchange Notes having a principal amount equal to a proportional amount of
      the
      aggregate Liquidation Amount of the Outstanding Common Securities, based on
      the
      ratio of the aggregate Liquidation Amount of the Preferred Securities exchanged
      pursuant to Section
      4.9(a)
      divided
      by the aggregate Liquidation Amount of the Preferred Securities Outstanding
      immediately prior to such exchange, for such proportional amount of Common
      Securities held by the Depositor (which contemporaneously shall be canceled
      and
      no longer be deemed to be Outstanding); provided, that the Depositor delivers
      or
      causes to be delivered to the Property Trustee or its designee the required
      amount of Common Securities to be exchanged by 10:00 A.M. New York time, on
      the
      Distribution Date on which such exchange is to occur.

     

    
      
        
        

      

      
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    SECTION
      4.10.  Calculation
      Agent.

     

    (a)  The
      Property Trustee shall initially, and, subject to the immediately following
      sentence, for so long as it holds any of the Notes, be the Calculation Agent
      for
      purposes of determining LIBOR for each Distribution Date. The Calculation Agent
      may be removed by the Administrative Trustees at any time. If the Calculation
      Agent is unable or unwilling to act as such or is removed by the Administrative
      Trustees, the Administrative Trustees will promptly appoint as a replacement
      Calculation Agent the London office of a leading bank which is engaged in
      transactions in three-month U.S. dollar deposits in Europe and which does not
      control or is not controlled by or under common control with the Administrative
      Trustee or its Affiliates. The Calculation Agent may not resign its duties
      without a successor having been duly appointed.

     

    (b)  The
      Calculation Agent shall be required to agree that, as soon as possible after
      11:00 a.m. (London time) on each LIBOR Determination Date, but in no event
      later
      than 11:00 a.m. (London time) on the Business Day immediately following each
      LIBOR Determination Date, the Calculation Agent will calculate the interest
      rate
      and dollar amount (rounded to the nearest cent, with half a cent being rounded
      upwards) for the related Distribution Date, and will communicate such rate
      and
      amount to the Depositor, the Property Trustee, each Paying Agent and the
      Depositary. The Calculation Agent will also specify to the Administrative
      Trustees the quotations upon which the foregoing rates and amounts are based
      and, in any event, the Calculation Agent shall notify the Administrative
      Trustees before 5:00 p.m. (London time) on each LIBOR Determination Date that
      either: (i) it has determined or is in the process of determining the foregoing
      rates and amounts or (ii) it has not determined and is not in the process of
      determining the foregoing rates and amounts, together with its reasons therefor.
      The Calculation Agent’s determination of the foregoing rates and amounts for any
      Distribution Date will (in the absence of manifest error) be final and binding
      upon all parties. For the sole purpose of calculating the interest rate for
      the
      Trust Securities, “Business Day” shall be defined as any day on which dealings
      in deposits in Dollars are transacted in the London interbank
      market.

     

    SECTION
      4.11.  Certain
      Accounting Matters.

     

    (a)  At
      all
      times during the existence of the Trust, the Administrative Trustees shall
      keep,
      or cause to be kept at the principal office of the Trust in the United States,
      as defined for purposes of Treasury Regulations section 301.7701-7, full books
      of account, records and supporting documents, which shall reflect in reasonable
      detail each transaction of the Trust. The books of account shall be maintained
      on the accrual method of accounting, in accordance with generally accepted
      accounting principles, consistently applied.

     

    (b)  The
      Administrative Trustees shall either (i) if the Depositor is then subject to
      such reporting requirements, cause each Form 10-K and Form 10-Q prepared by
      the
      Depositor and filed with the Commission in accordance with the Exchange Act
      to
      be delivered to each Holder, with a copy to the Property Trustee, within thirty
      (30) days after the filing thereof or (ii) cause to be prepared at the principal
      office of the Trust in the United States, as defined for purposes of Treasury
      Regulations section 301.7701-7, and delivered to each of the Holders, with
      a
      copy to the Property Trustee, within ninety (90) days after the end of each
      Fiscal Year, annual financial statements of the Trust, including a balance
      sheet
      of the Trust as of the end of such Fiscal Year, and the related statements
      of
      income or loss.

     

    
      
        
        

      

      
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    (c)  The
      Trust
      shall maintain one or more bank accounts in the United States, as defined for
      purposes of Treasury Regulations section 301.7701-7, in the name and for the
      sole benefit of the Trust; provided,
      however,
      that
      all payments of funds in respect of the Notes held by the Property Trustee
      shall
      be made directly to the Payment Account and no other funds of the Trust shall
      be
      deposited in the Payment Account. The sole signatories for such accounts
      (including the Payment Account) shall be designated by the Property
      Trustee.

     

     

     

    ARTICLE
      V.

     

    SECURITIES

     

    SECTION
      5.1.  Initial
      Ownership.

     

    Upon
      the
      creation of the Trust and the contribution by the Depositor referred to in
      Section
      2.3
      and
      until the issuance of the Trust Securities, and at any time during which no
      Trust Securities are Outstanding, the Depositor shall be the sole beneficial
      owner of the Trust.

     

    SECTION
      5.2.  Authorized
      Trust Securities.

     

    The
      Trust
      shall be authorized to issue one series of Preferred Securities having an
      aggregate Liquidation Amount of twenty-five million dollars ($25,000,000) and
      one series of Common Securities having an aggregate Liquidation Amount of one
      hundred thousand dollars ($100,000).

     

    SECTION
      5.3.  Issuance
      of the Common Securities; Subscription and Purchase of Notes.

     

    On
      the
      Closing Date, an Administrative Trustee, on behalf of the Trust, shall execute
      and deliver to the Depositor Common Securities Certificates, registered in
      the
      name of the Depositor, evidencing an aggregate of 100 Common Securities having
      an aggregate Liquidation Amount of one hundred thousand dollars ($100,000),
      against receipt by the Trust of the aggregate purchase price of such Common
      Securities of one hundred thousand dollars ($100,000). Contemporaneously
      therewith and with the sale by the Trust to the Holders of an aggregate of
      twenty-five thousand (25,000) Preferred Securities having an aggregate
      Liquidation Amount of twenty-five million dollars ($25,000,000), an
      Administrative Trustee, on behalf of the Trust, shall subscribe for and purchase
      from the Depositor Notes, to be registered in the name of the Property Trustee
      on behalf of the Trust and having an aggregate principal amount equal to
      twenty-five million one hundred thousand dollars ($25,100,000), and, in
      satisfaction of the purchase price for such Notes, the Property Trustee, on
      behalf of the Trust, shall deliver to the Depositor the sum of twenty-five
      million one hundred thousand dollars ($25,100,000) (being the aggregate amount
      paid by the Holders for the Preferred Securities and the amount paid by the
      Depositor for the Common Securities).

     

    
      
        
        

      

      
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    SECTION
      5.4.  The
      Securities Certificates.

     

    (a)  The
      Preferred Securities Certificates shall be issued in minimum denominations
      of
      one hundred thousand dollars ($100,000) Liquidation Amount and integral
      multiples of one thousand dollars ($1,000) in excess thereof, and the Common
      Securities Certificates shall be issued in minimum denominations of ten thousand
      dollars ($10,000) Liquidation Amount and integral multiples of one thousand
      dollars ($1,000) in excess thereof. The Securities Certificates shall be
      executed on behalf of the Trust by manual or facsimile signature of at least
      one
      Administrative Trustee. Securities Certificates bearing the signatures of
      individuals who were, at the time when such signatures shall have been affixed,
      authorized to sign such Securities Certificates on behalf of the Trust shall
      be
      validly issued and entitled to the benefits of this Trust Agreement,
      notwithstanding that such individuals or any of them shall have ceased to be
      so
      authorized prior to the delivery of such Securities Certificates or did not
      have
      such authority at the date of delivery of such Securities
      Certificates.

     

    (b)  On
      the
      Closing Date, upon the written order of an authorized officer of the Depositor,
      the Administrative Trustees shall cause Securities Certificates to be executed
      on behalf of the Trust and delivered, without further corporate action by the
      Depositor, in authorized denominations.

     

    (c)  Preferred
      Securities issued on the Closing Date to QIBS shall be issued as directed by
      the
      Purchaser on or prior to the Closing Date, either (i) in the form of one or
      more
      Global Preferred Securities Certificates or (ii) in the form of one or more
      Definitive Preferred Securities Certificates. Global Preferred Securities shall
      be, except as provided in Section 5.6,
      Book-Entry Preferred Securities issued in the form of one or more Global
      Preferred Securities registered in the name of the Depositary, or its nominee
      and deposited with the Depositary or the Property Trustee as custodian for
      the
      Depositary for credit by the Depositary to the respective accounts of the
      Depositary Participants thereof (or such other accounts as they may direct).
      The
      Preferred Securities issued to a Person other than a QIB shall be issued in
      the
      form of Definitive Preferred Securities Certificates.

     

    (d)  A
      Preferred Security shall not be valid until authenticated by the manual
      signature of a Responsible Officer of the Property Trustee. Such signature
      shall
      be conclusive evidence that the Preferred Security has been authenticated under
      this Trust Agreement. Upon written order of the Trust signed by one
      Administrative Trustee, the Property Trustee shall authenticate and deliver
      one
      or more Preferred Security Certificates evidencing the Preferred Securities
      for
      original issue. The Property Trustee may appoint an authenticating agent that
      is
      a U.S. Person acceptable to the Trust to authenticate the Preferred Securities.
      A Common Security need not be so authenticated and shall be valid upon execution
      by one or more Administrative Trustees. The form of this certificate of
      authentication can be found in Section 5.13.

     

    (e)  Upon
      issuance of the Trust Securities as provided in this Trust Agreement, the Trust
      Securities so issued shall be deemed to be validly issued, fully paid and
      nonassessable, and each Holder thereof shall be entitled to the benefits
      provided by this Trust Agreement.

     

    
      
        
        

      

      
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    SECTION
      5.5.  Rights
      of
      Holders.

     

    The
      Trust
      Securities shall have no, and the issuance of the Trust Securities is not
      subject to, preemptive or similar rights and when issued and delivered to
      Holders against payment of the purchase price therefor will be fully paid and
      non-assessable by the Trust. Except as provided in Section
      5.11(b),
      the
      Holders of the Trust Securities, in their capacities as such, shall be entitled
      to the same limitation of personal liability extended to stockholders of private
      corporations for profit organized under the General Corporation Law of the
      State
      of Delaware.

     

    SECTION
      5.6.  Book-Entry
      Preferred Securities.

     

    (a)  A
      Global
      Preferred Security may be exchanged, in whole or in part, for Definitive
      Preferred Securities Certificates registered in the names of the Owners only
      if
      such exchange complies with Section
      5.7
      and (i)
      the Depositary advises the Administrative Trustees and the Property Trustee
      in
      writing that the Depositary is no longer willing or able properly to discharge
      its responsibilities with respect to the Global Preferred Security, and no
      qualified successor is appointed by the Administrative Trustees within ninety
      (90) days of receipt of such notice, (ii) the Depositary ceases to be a clearing
      agency registered under the Exchange Act and the Administrative Trustees fail
      to
      appoint a qualified successor within ninety (90) days of obtaining knowledge
      of
      such event, (iii) the Administrative Trustees at their option advise the
      Property Trustee in writing that the Trust elects to terminate the book-entry
      system through the Depositary or (iv) a Note Event of Default has occurred
      and
      is continuing. Upon the occurrence of any event specified in clause (i), (ii),
      (iii) or (iv) above, the Administrative Trustees shall notify the Depositary
      and
      instruct the Depositary to notify all Owners of Book-Entry Preferred Securities,
      the Delaware Trustee and the Property Trustee of the occurrence of such event
      and of the availability of the Definitive Preferred Securities Certificates
      to
      Owners of the Preferred Securities requesting the same. Upon the issuance of
      Definitive Preferred Securities Certificates, the Trustees shall recognize
      the
      Holders of the Definitive Preferred Securities Certificates as Holders.
      Notwithstanding the foregoing, if an Owner of a beneficial interest in a Global
      Preferred Security wishes at any time to transfer an interest in such Global
      Preferred Security to a Person other than a QIB, such transfer shall be
      effected, subject to the Applicable Depositary Procedures, in accordance with
      the provisions of this Section
      5.6
      and
Section
      5.7,
      and the
      transferee shall receive a Definitive Preferred Securities Certificate in
      connection with such transfer. A holder of a Definitive Preferred Securities
      Certificate that is a QIB may, upon request, and in accordance with the
      provisions of this Section
      5.6
      and
Section
      5.7,
      exchange such Definitive Preferred Securities Certificate for a beneficial
      interest in a Global Preferred Security.

     

    (b)  If
      any
      Global Preferred Security is to be exchanged for Definitive Preferred Securities
      Certificates or canceled in part, or if any Definitive Preferred Securities
      Certificate is to be exchanged in whole or in part for any Global Preferred
      Security, then either (i) such Global Preferred Security shall be so surrendered
      for exchange or cancellation as provided in this Article V
      or (ii)
      the aggregate Liquidation Amount represented by such Global Preferred Security
      shall be reduced, subject to Section
      5.4,
      or
      increased by an amount equal to the Liquidation Amount represented by that
      portion of the Global Preferred Security to be so exchanged or canceled, or
      equal to the Liquidation Amount represented by such Definitive Preferred
      Securities Certificates to be so exchanged for any Global Preferred Security,
      as
      the case may be, by means of an appropriate adjustment made on the records
      of
      the Securities Registrar, whereupon the Property Trustee, in accordance with
      the
      Applicable Depositary Procedures, shall instruct the Depositary or its
      authorized representative to make a corresponding adjustment to its records.
      Upon any such surrender to the Administrative Trustees or the Securities
      Registrar of any Global Preferred Security or Securities by the Depositary,
      accompanied by registration instructions, the Administrative Trustees, or any
      one of them, shall execute the Definitive Preferred Securities Certificates
      in
      accordance with the instructions of the Depositary, and the Property Trustee,
      upon receipt thereof, shall authenticate and deliver such Definitive Preferred
      Securities Certificates. None of the Securities Registrar or the Trustees shall
      be liable for any delay in delivery of such instructions and may conclusively
      rely on, and shall be fully protected in relying on, such
      instructions.

     

    
      
        
        

      

      
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    (c)  Every
      Securities Certificate executed and delivered upon registration or transfer
      of,
      or in exchange for or in lieu of, a Global Preferred Security or any portion
      thereof shall be executed and delivered in the form of, and shall be, a Global
      Preferred Security, unless such Securities Certificate is registered in the
      name
      of a Person other than the Depositary for such Global Preferred Security or
      a
      nominee thereof.

     

    (d)  The
      Depositary or its nominee, as registered owner of a Global Preferred Security,
      shall be the Holder of such Global Preferred Security for all purposes under
      this Trust Agreement and the Global Preferred Security, and Owners with respect
      to a Global Preferred Security shall hold such interests pursuant to the
      Applicable Depositary Procedures. The Securities Registrar and the Trustees
      shall be entitled to deal with the Depositary for all purposes of this Trust
      Agreement relating to the Global Preferred Securities (including the payment
      of
      the Liquidation Amount of and Distributions on the Book-Entry Preferred
      Securities represented thereby and the giving of instructions or directions
      by
      Owners of Book-Entry Preferred Securities represented thereby and the giving
      of
      notices) as the sole Holder of the Book-Entry Preferred Securities represented
      thereby and shall have no obligations to the Owners thereof. None of the
      Trustees nor the Securities Registrar shall have any liability in respect of
      any
      transfers effected by the Depositary.

     

    (e)  The
      rights of the Owners of the Book-Entry Preferred Securities shall be exercised
      only through the Depositary and shall be limited to those established by law,
      the Applicable Depositary Procedures and agreements between such Owners and
      the
      Depositary and/or the Depositary Participants; provided, that, solely for the
      purpose of determining whether the Holders of the requisite amount of Preferred
      Securities have voted on any matter provided for in this Trust Agreement, to
      the
      extent that Preferred Securities are represented by a Global Preferred Security,
      the Trustees may conclusively rely on, and shall be fully protected in relying
      on, any written instrument (including a proxy) delivered to the Property Trustee
      by the Depositary setting forth the Owners’ votes or assigning the right to vote
      on any matter to any other Persons either in whole or in part. To the extent
      that Preferred Securities are represented by a Global Preferred Security, the
      Depositary will make book-entry transfers among the Depositary Participants
      and
      receive and transmit payments on the Preferred Securities that are represented
      by a Global Preferred Security to such Depositary Participants, and none of
      the
      Depositor or the Trustees shall have any responsibility or obligation with
      respect thereto.

     

    (f)  To
      the
      extent that a notice or other communication to the Holders is required under
      this Trust Agreement, for so long as Preferred Securities are represented by
      a
      Global Preferred Security, the Trustees shall give all such notices and
      communications to the Depositary, and shall have no obligations to the
      Owners.

     

    
      
        
        

      

      
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    SECTION
      5.7.  Registration
      of Transfer and Exchange of Preferred Securities Certificates.

     

    (a)  The
      Property Trustee shall keep or cause to be kept, at the Corporate Trust Office,
      a register or registers (the “Securities Register”) in which the registrar and
      transfer agent with respect to the Trust Securities (the “Securities
      Registrar”), subject to such reasonable regulations as it may prescribe, shall
      provide for the registration of Preferred Securities Certificates and Common
      Securities Certificates and registration of transfers and exchanges of Preferred
      Securities Certificates as herein provided. The Property Trustee shall at all
      times also be the Securities Registrar. The provisions of Article
      VIII
      shall
      apply to the Property Trustee in its role as Securities Registrar.

     

    (b)  Subject
      to Section 5.7(d), upon surrender for registration of transfer of any Preferred
      Securities Certificate at the office or agency maintained pursuant to
Section
      5.7(f),
      the
      Administrative Trustees or any one of them shall execute by manual or facsimile
      signature and deliver to the Property Trustee, and upon receipt thereof the
      Property Trustee shall authenticate and deliver, in the name of the designated
      transferee or transferees, one or more new Preferred Securities Certificates
      in
      authorized denominations of a like aggregate Liquidation Amount as may be
      required by this Trust Agreement dated the date of execution by such
      Administrative Trustee or Trustees. At the option of a Holder, Preferred
      Securities Certificates may be exchanged for other Preferred Securities
      Certificates in authorized denominations and of a like aggregate Liquidation
      Amount upon surrender of the Preferred Securities Certificate to be exchanged
      at
      the office or agency maintained pursuant to Section 5.7(f).
      Whenever any Preferred Securities Certificates are so surrendered for exchange,
      the Administrative Trustees or any one of them shall execute by manual or
      facsimile signature and deliver to the Property Trustee, and upon receipt
      thereof the Property Trustee shall authenticate and deliver, the Preferred
      Securities Certificates that the Holder making the exchange is entitled to
      receive.

     

    (c)  The
      Securities Registrar shall not be required, (i) to issue, register the transfer
      of or exchange any Preferred Security during a period beginning at the opening
      of business fifteen (15) days before the day of selection for redemption of
      such
      Preferred Securities pursuant to Article
      IV
      and
      ending at the close of business on the day of mailing of the notice of
      redemption or (ii) to register the transfer of or exchange any Preferred
      Security so selected for redemption in whole or in part, except, in the case
      of
      any such Preferred Security to be redeemed in part, any portion thereof not
      to
      be redeemed.

     

    (d)  Every
      Preferred Securities Certificate presented or surrendered for registration
      of
      transfer or exchange shall be duly endorsed, or be accompanied by a written
      instrument of transfer in form satisfactory to the Securities Registrar duly
      executed by the Holder or such Holder’s attorney duly authorized in writing and
      (i) if such Preferred Securities Certificate is being transferred otherwise
      than
      to a QIB, accompanied by a certificate of the transferee substantially in the
      form set forth as Exhibit
      E
      hereto
      or (ii) if such Preferred Securities Certificate is being transferred to a
      QIB,
      accompanied by a certificate of the transferor substantially in the form set
      forth as Exhibit
      F
      hereto.

     

    
      
        
        

      

      
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    (e)  No
      service charge shall be made for any registration of transfer or exchange of
      Preferred Securities Certificates, but the Property Trustee on behalf of the
      Trust may require payment of a sum sufficient to cover any tax or governmental
      charge that may be imposed in connection with any transfer or exchange of
      Preferred Securities Certificates.

     

    (f)  The
      Administrative Trustees shall designate an office or offices or agency or
      agencies where Preferred Securities Certificates may be surrendered for
      registration of transfer or exchange, and initially designate the Corporate
      Trust Office as its office and agency for such purposes. The Administrative
      Trustees shall give prompt written notice to the Depositor, the Property Trustee
      and to the Holders of any change in the location of any such office or
      agency.

     

    SECTION
      5.8.  Mutilated,
      Destroyed, Lost or Stolen Securities Certificates.

     

    (a)  If
      any
      mutilated Securities Certificate shall be surrendered to the Securities
      Registrar together with such security or indemnity as may be required by the
      Securities Registrar and the Administrative Trustees to save each of them
      harmless, the Administrative Trustees, or any one of them, on behalf of the
      Trust, shall execute and make available for delivery and, with respect to
      Preferred Securities, the Property Trustee shall authenticate, in exchange
      therefor a new Securities Certificate of like class, tenor and
      denomination.

     

    (b)  If
      the
      Securities Registrar shall receive evidence to its satisfaction of the
      destruction, loss or theft of any Securities Certificate and there shall be
      delivered to the Securities Registrar and the Administrative Trustees such
      security or indemnity as may be required by them to save each of them harmless,
      then in the absence of notice that such Securities Certificate shall have been
      acquired by a protected purchaser, the Administrative Trustees, or any one
      of
      them, on behalf of the Trust, shall execute and make available for delivery,
      and, with respect to Preferred Securities, the Property Trustee shall
      authenticate, in exchange for or in lieu of any such destroyed, lost or stolen
      Securities Certificate, a new Securities Certificate of like class, tenor and
      denomination.

     

    (c)  In
      connection with the issuance of any new Securities Certificate under this
Section
      5.8,
      the
      Administrative Trustees or the Securities Registrar may require the payment
      of a
      sum sufficient to cover any tax or other governmental charge that may be imposed
      in connection therewith.

     

    (d)  Any
      duplicate Securities Certificate issued pursuant to this Section
      5.8
      shall
      constitute conclusive evidence of an undivided beneficial interest in the assets
      of the Trust corresponding to that evidenced by the mutilated, lost, stolen
      or
      destroyed Securities Certificate, as if originally issued, whether or not the
      lost, stolen or destroyed Securities Certificate shall be found at any
      time.

     

    (e)  If
      any
      such mutilated, destroyed, lost or stolen Securities Certificate has become
      or
      is about to become due and payable, the Depositor in its discretion may, instead
      of issuing a new Trust Security, pay such Trust Security.

     

    (f)  The
      provisions of this Section
      5.8
      are
      exclusive and shall preclude (to the extent lawful) all other rights and
      remedies with respect to the replacement of mutilated, destroyed, lost or stolen
      Securities Certificates.

     

    
      
        
        

      

      
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    (g)  With
      respect to Preferred Securities issued to QIBs in the form of one or more
      Definitive Preferred Securities Certificates as provided in Section 5.4(c),
      and
      any subsequent transfers thereof, the Depositor and the Trust shall use all
      commercially reasonable efforts to make such Preferred Securities eligible
      for
      clearance and settlement as Book-Entry Preferred Securities through the
      facilities of the Depositary and listed for trading through the PORTAL Market,
      and will execute, deliver and comply with all representations made to, and
      agreements with, the Depositary and the PORTAL Market in connection
      therewith.

     

    SECTION
      5.9.  Persons
      Deemed Holders.

     

    The
      Trustees and the Securities Registrar shall each treat the Person in whose
      name
      any Securities Certificate shall be registered in the Securities Register as
      the
      owner of the Trust Securities evidenced by such Securities Certificate for
      the
      purpose of receiving Distributions and for all other purposes whatsoever, and
      none of the Trustees and the Securities Registrar shall be bound by any notice
      to the contrary.

     

    SECTION
      5.10.  Cancellation.

     

    All
      Preferred Securities Certificates surrendered for registration of transfer
      or
      exchange or for payment shall, if surrendered to any Person other than the
      Property Trustee, be delivered to the Property Trustee, and any such Preferred
      Securities Certificates and Preferred Securities Certificates surrendered
      directly to the Property Trustee for any such purpose shall be promptly canceled
      by it. The Administrative Trustees may at any time deliver to the Property
      Trustee for cancellation any Preferred Securities Certificates previously
      delivered hereunder that the Administrative Trustees may have acquired in any
      manner whatsoever, and all Preferred Securities Certificates so delivered shall
      be promptly canceled by the Property Trustee. No Preferred Securities
      Certificates shall be executed and delivered in lieu of or in exchange for
      any
      Preferred Securities Certificates canceled as provided in this Section
      5.10,
      except
      as expressly permitted by this Trust Agreement. All canceled Preferred
      Securities Certificates shall be disposed of by the Property Trustee in
      accordance with its customary practices and the Property Trustee shall deliver
      to the Administrative Trustees a certificate of such disposition.

     

    SECTION
      5.11.  Ownership
      of Common Securities by Depositor.

     

    (a)  On
      the
      Closing Date, the Depositor shall acquire, and thereafter shall retain,
      beneficial and record ownership of the Common Securities. Neither the Depositor
      nor any successor Holder of the Common Securities may transfer less than all
      the
      Common Securities, and the Depositor or any such successor Holder may transfer
      the Common Securities only (i) in connection with a consolidation or merger
      of
      the Depositor into another Person, or any conveyance, transfer or lease by
      the
      Depositor of its properties and assets substantially as an entirety to any
      Person (in which event such Common Securities will be transferred to such
      surviving entity, transferee or lessee, as the case may be), pursuant to
Section
      8.1
      of the
      Indenture or (ii) to the Depositor or an Affiliate of the Depositor, in each
      such case in compliance with applicable law (including the Securities Act,
      and
      applicable state securities and blue sky laws). To the fullest extent permitted
      by law, any attempted transfer of the Common Securities other than as set forth
      in the immediately preceding sentence shall be void. The Administrative Trustees
      shall cause each Common Securities Certificate issued to the Depositor to
      contain a legend stating substantially “THIS CERTIFICATE IS NOT TRANSFERABLE
      EXCEPT IN COMPLIANCE WITH APPLICABLE LAW AND SECTION 5.11 OF THE TRUST
      AGREEMENT.”

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    (b)  Any
      Holder of the Common Securities shall be liable for the debts and obligations
      of
      the Trust in the manner and to the extent set forth herein with respect to
      the
      Depositor and agrees that it shall be subject to all liabilities to which the
      Depositor may be subject and, prior to becoming such a Holder, shall deliver
      to
      the Administrative Trustees an instrument of assumption satisfactory to such
      Trustees.

     

    SECTION
      5.12.  Restricted
      Legends.

     

    (a)  Each
      Preferred Security Certificate shall bear a legend in substantially the
      following form:

     

    “[IF
      THIS SECURITY IS A GLOBAL SECURITY INSERT:
      THIS
      PREFERRED SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE TRUST
      AGREEMENT HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
      DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF DTC. THIS PREFERRED SECURITY IS
      EXCHANGEABLE FOR PREFERRED SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER
      THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
      TRUST
      AGREEMENT, AND NO TRANSFER OF THIS PREFERRED SECURITY (OTHER THAN A TRANSFER
      OF
      THIS PREFERRED SECURITY AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE
      OF
      DTC TO DTC OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED
      CIRCUMSTANCES.

     

    UNLESS
      THIS PREFERRED SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
      TO
      NORTHSTAR REALTY FINANCE TRUST VI
      OR ITS
      AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY PREFERRED
      SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
      NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON
      IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
      AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
      FOR
      VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
      OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

     

    THE
      PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED
      IN A
      TRANSACTION EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
      AMENDED (THE “SECURITIES ACT”), AND SUCH PREFERRED SECURITIES OR ANY INTEREST
      THEREIN, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF
      SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF ANY
      PREFERRED SECURITIES IS HEREBY NOTIFIED THAT THE SELLER OF THE PREFERRED
      SECURITIES MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
      OF
      THE SECURITIES ACT PROVIDED BY RULE 144A UNDER THE SECURITIES ACT.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    THE
      HOLDER OF THE PREFERRED SECURITIES REPRESENTED BY THIS CERTIFICATE AGREES FOR
      THE BENEFIT OF THE TRUST AND THE DEPOSITOR THAT (A) SUCH PREFERRED SECURITIES
      MAY BE OFFERED, RESOLD OR OTHERWISE TRANSFERRED ONLY (I) TO THE TRUST, (II)
      TO A
      PERSON WHOM THE SELLER REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER”
(AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING
      THE
      REQUIREMENTS OF RULE 144A, OR (III) TO AN INSTITUTIONAL “ACCREDITED INVESTOR”
WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER
      THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR
      THE ACCOUNT OF AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a)
      (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT, FOR INVESTMENT
      PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
      DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE
      WITH
      ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
      APPLICABLE JURISDICTION AND, IN THE CASE OF (III), SUBJECT TO THE RIGHT OF
      THE
      TRUST AND THE DEPOSITOR TO REQUIRE AN OPINION OF COUNSEL ADDRESSING COMPLIANCE
      WITH THE U.S. SECURITIES LAWS, AND OTHER INFORMATION SATISFACTORY TO EACH OF
      THEM AND (B) THE HOLDER WILL NOTIFY ANY PURCHASER OF ANY PREFERRED SECURITIES
      FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

     

    THE
      PREFERRED SECURITIES WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING
      AN AGGREGATE LIQUIDATION AMOUNT OF NOT LESS THAN $100,000. TO THE FULLEST EXTENT
      PERMITTED BY LAW, ANY ATTEMPTED TRANSFER OF PREFERRED SECURITIES, OR ANY
      INTEREST THEREIN, IN A BLOCK HAVING AN AGGREGATE LIQUIDATION AMOUNT OF LESS
      THAN
      $100,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL BE DEEMED TO BE VOID
      AND OF NO LEGAL EFFECT WHATSOEVER. TO THE FULLEST EXTENT PERMITTED BY LAW,
      ANY
      SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH PREFERRED
      SECURITIES FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
      LIQUIDATION AMOUNT OF OR DISTRIBUTIONS ON SUCH PREFERRED SECURITIES, OR ANY
      INTEREST THEREIN, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO
      INTEREST WHATSOEVER IN SUCH PREFERRED SECURITIES.

     

    
      
        
        

      

      
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    THE
      HOLDER OF THIS SECURITY, OR ANY INTEREST THEREIN, BY ITS ACCEPTANCE HEREOF
      OR
      THEREOF ALSO AGREES, REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT
      PLAN, INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO
      TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
      (“ERISA”), OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
“CODE”) (EACH A “PLAN”), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN
      ASSETS” BY REASON OF ANY PLAN’S INVESTMENT IN THE ENTITY, AND NO PERSON
      INVESTING “PLAN ASSETS” OF ANY PLAN MAY ACQUIRE OR HOLD THIS PREFERRED SECURITY
      OR ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE
      EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION
      CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE
      EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY, OR ANY INTEREST THEREIN,
      ARE NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH
      RESPECT TO SUCH PURCHASE AND HOLDING. ANY PURCHASER OR HOLDER OF THE PREFERRED
      SECURITIES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS
      PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT
      PLAN
      OR OTHER PLAN TO WHICH TITLE I OF ERISA OR SECTION 4975 OF THE CODE IS
      APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF ANY SUCH EMPLOYEE
      BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE “PLAN ASSETS” OF
      ANY SUCH EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH
      PURCHASE OR HOLDING WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION
      406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH FULL EXEMPTIVE RELIEF IS
      NOT
      AVAILABLE UNDER AN APPLICABLE STATUTORY OR ADMINISTRATIVE
      EXEMPTION.

     

    (b)  The
      above
      legend shall not be removed from any of the Preferred Securities Certificates
      unless there is delivered to the Property Trustee and the Depositor satisfactory
      evidence, which may include an Opinion of Counsel, as may be reasonably required
      to ensure that any future transfers thereof may be made without restriction
      under or violation of the provisions of the Securities Act and other applicable
      law. Upon provision of such satisfactory evidence, one or more of the
      Administrative Trustees on behalf of the Trust shall execute and deliver to
      the
      Property Trustee, and the Property Trustee shall authenticate and deliver,
      at
      the written direction of the Administrative Trustees and the Depositor,
      Preferred Securities Certificates that do not bear the legend.

     

    SECTION
      5.13.  Form
      of
      Certificate of Authentication.

     

    The
      Property Trustee’s certificate of authentication shall be in substantially the
      following form:

     

    This
      represents Preferred Securities referred to in the within-mentioned Trust
      Agreement.

     

     

    
      	
              Dated:

            	
              WILMINGTON
                TRUST COMPANY,
                not in its individual capacity, but solely as Property
                Trustee

               

               

              By: ________________________________

              Authorized
                officer

               

            

    

     

    
       

      
        
          
          

        

        
          32

          
            

          

        

      

    

    ARTICLE
      VI.

    

      MEETINGS;
        VOTING; ACTS OF HOLDERS

    

     

    SECTION
      6.1.  Notice
      of
      Meetings.

     

    Notice
      of
      all meetings of the Holders of the Preferred Securities, stating the time,
      place
      and purpose of the meeting, shall be given by the Property Trustee pursuant
      to
Section
      11.8
      to each
      Holder of Preferred Securities, at such Holder’s registered address, at least
      fifteen (15) days and not more than ninety (90) days before the meeting. At
      any
      such meeting, any business properly before the meeting may be so considered
      whether or not stated in the notice of the meeting. Any adjourned meeting may
      be
      held as adjourned without further notice.

     

    SECTION
      6.2.  Meetings
      of Holders of the Preferred Securities.

     

    (a)  No
      annual
      meeting of Holders is required to be held. The Property Trustee, however, shall
      call a meeting of the Holders of the Preferred Securities to vote on any matter
      upon the written request of the Holders of at least twenty-five percent (25%)
      in
      aggregate Liquidation Amount of the Outstanding Preferred Securities and the
      Administrative Trustees or the Property Trustee may, at any time in their
      discretion, call a meeting of the Holders of the Preferred Securities to vote
      on
      any matters as to which such Holders are entitled to vote.

     

    (b)  The
      Holders of at least a Majority in Liquidation Amount of the Preferred
      Securities, present in person or by proxy, shall constitute a quorum at any
      meeting of the Holders of the Preferred Securities.

     

    (c)  If
      a
      quorum is present at a meeting, an affirmative vote by the Holders present,
      in
      person or by proxy, holding Preferred Securities representing at least a
      Majority in Liquidation Amount of the Preferred Securities held by the Holders
      present, either in person or by proxy, at such meeting shall constitute the
      action of the Holders of the Preferred Securities, unless this Trust Agreement
      requires a lesser or greater number of affirmative votes.

     

    SECTION
      6.3.  Voting
      Rights.

     

    Holders
      shall be entitled to one vote for each $10,000 of Liquidation Amount represented
      by their Outstanding Trust Securities in respect of any matter as to which
      such
      Holders are entitled to vote.

     

    
      
        
        

      

      
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    SECTION
      6.4.  Proxies,
      Etc.

     

    At
      any
      meeting of Holders, any Holder entitled to vote thereat may vote by proxy,
      provided, that no proxy shall be voted at any meeting unless it shall have
      been
      placed on file with the Administrative Trustees, or with such other officer
      or
      agent of the Trust as the Administrative Trustees may direct, for verification
      prior to the time at which such vote shall be taken. Pursuant to a resolution
      of
      the Property Trustee, proxies may be solicited in the name of the Property
      Trustee or one or more officers of the Property Trustee. Only Holders of record
      shall be entitled to vote. When Trust Securities are held jointly by several
      Persons, any one of them may vote at any meeting in person or by proxy in
      respect of such Trust Securities, but if more than one of them shall be present
      at such meeting in person or by proxy, and such joint owners or their proxies
      so
      present disagree as to any vote to be cast, such vote shall not be received
      in
      respect of such Trust Securities. A proxy purporting to be executed by or on
      behalf of a Holder shall be deemed valid unless challenged at or prior to its
      exercise, and the burden of proving invalidity shall rest on the challenger.
      No
      proxy shall be valid more than three years after its date of
      execution.

     

    SECTION
      6.5.  Holder
      Action by Written Consent.

     

    Any
      action that may be taken by Holders at a meeting may be taken without a meeting
      and without prior notice if Holders holding at least a Majority in Liquidation
      Amount of all Preferred Securities entitled to vote in respect of such action
      (or such lesser or greater proportion thereof as shall be required by any other
      provision of this Trust Agreement) shall consent to the action in writing;
      provided, that notice of such action is promptly provided to the Holders of
      Preferred Securities that did not consent to such action. Any action that may
      be
      taken by the Holders of all the Common Securities may be taken without a meeting
      and without prior notice if such Holders shall consent to the action in
      writing.

     

    SECTION
      6.6.  Record
      Date for Voting and Other Purposes.

     

    Except
      as
      provided in Section
      6.10(a),
      for the
      purposes of determining the Holders who are entitled to notice of and to vote
      at
      any meeting or to act by written consent, or to participate in any distribution
      on the Trust Securities in respect of which a record date is not otherwise
      provided for in this Trust Agreement, or for the purpose of any other action,
      the Administrative Trustees may from time to time fix a date, not more than
      ninety (90) days prior to the date of any meeting of Holders or the payment
      of a
      Distribution or other action, as the case may be, as a record date for the
      determination of the identity of the Holders of record for such
      purposes.

     

    SECTION
      6.7.  Acts
      of
      Holders.

     

    (a)  Any
      request, demand, authorization, direction, notice, consent, waiver or other
      action provided or permitted by this Trust Agreement to be given, made or taken
      by Holders may be embodied in and evidenced by one or more instruments of
      substantially similar tenor signed by such Holders in person or by an agent
      thereof duly appointed in writing; and, except as otherwise expressly provided
      herein, such action shall become effective when such instrument or instruments
      are delivered to an Administrative Trustee. Such instrument or instruments
      (and
      the action embodied therein and evidenced thereby) are herein sometimes referred
      to as the “Act” of the Holders signing such instrument or instruments. Proof of
      execution of any such instrument or of a writing appointing any such agent
      shall
      be sufficient for any purpose of this Trust Agreement and conclusive in favor
      of
      the Trustees, if made in the manner provided in this Section
      6.7.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    (b)  The
      fact
      and date of the execution by any Person of any such instrument or writing may
      be
      proved by the affidavit of a witness of such execution or by a certificate
      of a
      notary public or other officer authorized by law to take acknowledgments of
      deeds, certifying that the individual signing such instrument or writing
      acknowledged to him the execution thereof. Where such execution is by a signer
      acting in a capacity other than such signer’s individual capacity, such
      certificate or affidavit shall also constitute sufficient proof of such signer’s
      authority. The fact and date of the execution of any such instrument or writing,
      or the authority of the Person executing the same, may also be proved in any
      other manner that any Trustee receiving the same deems sufficient.

     

    (c)  The
      ownership of Trust Securities shall be proved by the Securities
      Register.

     

    (d)  Any
      request, demand, authorization, direction, notice, consent, waiver or other
      Act
      of the Holder of any Trust Security shall bind every future Holder of the same
      Trust Security and the Holder of every Trust Security issued upon the
      registration of transfer thereof or in exchange therefor or in lieu thereof
      in
      respect of anything done, omitted or suffered to be done by the Trustees, the
      Administrative Trustees or the Trust in reliance thereon, whether or not
      notation of such action is made upon such Trust Security.

     

    (e)  Without
      limiting the foregoing, a Holder entitled hereunder to take any action hereunder
      with regard to any particular Trust Security may do so with regard to all or
      any
      part of the Liquidation Amount of such Trust Security or by one or more duly
      appointed agents each of which may do so pursuant to such appointment with
      regard to all or any part of such Liquidation Amount.

     

    (f)  If
      any
      dispute shall arise among the Holders or the Trustees with respect to the
      authenticity, validity or binding nature of any request, demand, authorization,
      direction, notice, consent, waiver or other Act of such Holder or Trustee under
      this Article
      VI,
      then
      the determination of such matter by the Property Trustee shall be conclusive
      with respect to such matter.

     

    SECTION
      6.8.  Inspection
      of Records.

     

    Upon
      reasonable written notice to the Administrative Trustees and the Property
      Trustee, the records of the Trust shall be open to inspection by any Holder
      during normal business hours for any purpose reasonably related to such Holder’s
      interest as a Holder.

     

    SECTION
      6.9.  Limitations
      on Voting Rights.

     

    (a)  Except
      as
      expressly provided in this Trust Agreement and in the Indenture and as otherwise
      required by law, no Holder of Preferred Securities shall have any right to
      vote
      or in any manner otherwise control the administration, operation and management
      of the Trust or the obligations of the parties hereto, nor shall anything herein
      set forth, or contained in the terms of the Securities Certificates, be
      construed so as to constitute the Holders from time to time as partners or
      members of an association.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    (b)  So
      long
      as any Notes are held by the Property Trustee on behalf of the Trust, the
      Property Trustee shall not (i) direct the time, method and place of conducting
      any proceeding for any remedy available to the Note Trustee, or exercise any
      trust or power conferred on the Property Trustee with respect to the Notes,
      (ii)
      waive any past default that may be waived under Section
      5.13
      of the
      Indenture, (iii) exercise any right to rescind or annul a declaration that
      the
      principal of all the Notes shall be due and payable or (iv) consent to any
      amendment, modification or termination of the Indenture or the Notes, where
      such
      consent shall be required, without, in each case, obtaining the prior approval
      of the Holders of at least a Majority in Liquidation Amount of the Preferred
      Securities; provided, that where a consent under the Indenture would require
      the
      consent of each holder of Notes (or each Holder of Preferred Securities)
      affected thereby, no such consent shall be given by the Property Trustee without
      the prior written consent of each Holder of Preferred Securities. The Property
      Trustee shall not revoke any action previously authorized or approved by a
      vote
      of the Holders of the Preferred Securities, except by a subsequent vote of
      the
      Holders of the Preferred Securities. In addition to obtaining the foregoing
      approvals of the Holders of the Preferred Securities, prior to taking any of
      the
      foregoing actions, the Property Trustee shall, at the expense of the Depositor,
      obtain an Opinion of Counsel experienced in such matters to the effect that
      such
      action shall not cause the Trust to be taxable as a corporation or classified
      as
      other than a grantor trust for United States federal income tax
      purposes.

     

    (c)  If
      any
      proposed amendment to the Trust Agreement provides for, or the Trustees
      otherwise propose to effect, (i) any action that would adversely affect in
      any
      material respect the powers, preferences or special rights of the Preferred
      Securities, whether by way of amendment to the Trust Agreement or otherwise
      or
      (ii) the dissolution, winding-up or termination of the Trust, other than
      pursuant to the terms of this Trust Agreement, then the Holders of Outstanding
      Preferred Securities as a class will be entitled to vote on such amendment
      or
      proposal and such amendment or proposal shall not be effective except with
      the
      approval of the Holders of at least a Majority in Liquidation Amount of the
      Preferred Securities. Notwithstanding any other provision of this Trust
      Agreement, no amendment to this Trust Agreement may be made if, as a result
      of
      such amendment, it would cause the Trust to be taxable as a corporation or
      classified as other than a grantor trust for United States federal income tax
      purposes.

     

    SECTION
      6.10.  Acceleration
      of Maturity; Rescission of Annulment; Waivers of Past Defaults.

     

    (a)  For
      so
      long as any Preferred Securities remain Outstanding, if, upon a Note Event
      of
      Default, the Note Trustee fails or the holders of not less than twenty-five
      percent (25%) in principal amount of the outstanding Notes fail to declare
      the
      principal of all of the Notes to be immediately due and payable, the Holders
      of
      at least twenty-five percent (25%) in Liquidation Amount of the Preferred
      Securities then Outstanding shall have the right to make such declaration by
      a
      notice in writing to the Property Trustee, the Depositor and the Note Trustee.
      At any time after a declaration of acceleration with respect to the Notes has
      been made and before a judgment or decree for payment of the money due has
      been
      obtained by the Note Trustee as provided in the Indenture, the Holders of at
      least a Majority in Liquidation Amount of the Preferred Securities, by written
      notice to the Property Trustee, the Depositor and the Note Trustee, may rescind
      and annul such declaration and its consequences if:

     

    
      
        
        

      

      
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    (i)  the
      Depositor has paid or deposited with the Note Trustee a sum sufficient to
      pay:

     

    (A)  all
      overdue installments of interest on all of the Notes;

     

    (B)  any
      accrued Additional Interest on all of the Notes;

     

    (C)  the
      principal of and premium, if any, on any Notes that have become due otherwise
      than by such declaration of acceleration and interest and Additional Interest
      thereon at the rate borne by the Notes; and

     

    (D)  all
      sums
      paid or advanced by the Note Trustee under the Indenture and the reasonable
      compensation, expenses, disbursements and advances of the Note Trustee, the
      Property Trustee and their agents and counsel; and

     

    (ii)  all
      Note
      Events of Default, other than the non-payment of the principal of the Notes
      that
      has become due solely by such acceleration, have been cured or waived as
      provided in Section
      5.13
      of the
      Indenture.

     

    Upon
      receipt by the Property Trustee of written notice requesting such an
      acceleration, or rescission and annulment thereof, by Holders of any part of
      the
      Preferred Securities, a record date shall be established for determining Holders
      of Outstanding Preferred Securities entitled to join in such notice, which
      record date shall be at the close of business on the day the Property Trustee
      receives such notice. The Holders on such record date, or their duly designated
      proxies, and only such Persons, shall be entitled to join in such notice,
      whether or not such Holders remain Holders after such record date; provided,
      that, unless such declaration of acceleration, or rescission and annulment,
      as
      the case may be, shall have become effective by virtue of the requisite
      percentage having joined in such notice prior to the day that is ninety (90)
      days after such record date, such notice of declaration of acceleration, or
      rescission and annulment, as the case may be, shall automatically and without
      further action by any Holder be canceled and of no further effect. Nothing
      in
      this paragraph shall prevent a Holder, or a proxy of a Holder, from giving,
      after expiration of such ninety (90)-day period, a new written notice of
      declaration of acceleration, or rescission and annulment thereof, as the case
      may be, that is identical to a written notice that has been canceled pursuant
      to
      the proviso to the preceding sentence, in which event a new record date shall
      be
      established pursuant to the provisions of this Section
      6.10(a).

     

    (b)  For
      so
      long as any Preferred Securities remain Outstanding, to the fullest extent
      permitted by law and subject to the terms of this Trust Agreement and the
      Indenture, upon a Note Event of Default specified in paragraph (a) or (b) of
      Section
      5.1
      of the
      Indenture, any Holder of Preferred Securities shall have the right to institute
      a proceeding directly against the Depositor or the Guarantor, pursuant to
Section
      5.8
      of the
      Indenture, for enforcement of payment to such Holder of any amounts payable
      in
      respect of Notes having an aggregate principal amount equal to the aggregate
      Liquidation Amount of the Preferred Securities of such Holder. Except as set
      forth in Section 6.10(a)
      and this
Section
      6.10(b),
      the
      Holders of Preferred Securities shall have no right to exercise directly any
      right or remedy available to the holders of, or in respect of, the
      Notes.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    (c)  Notwithstanding
      paragraphs (a) and (b) of this Section
      6.10,
      the
      Holders of at least a Majority in Liquidation Amount of the Preferred Securities
      may, on behalf of the Holders of all the Preferred Securities, waive any Note
      Event of Default, except any Note Event of Default arising from the failure
      to
      pay any principal of or premium, if any, or interest on (including any
      Additional Interest) the Notes (unless such Note Event of Default has been
      cured
      and a sum sufficient to pay all matured installments of interest and all
      principal and premium, if any, on all Notes due otherwise than by acceleration
      has been deposited with the Note Trustee) or a Note Event of Default in respect
      of a covenant or provision that under the Indenture cannot be modified or
      amended without the consent of the holder of each outstanding Note. Upon any
      such waiver, such Note Event of Default shall cease to exist and any Note Event
      of Default arising therefrom shall be deemed to have been cured for every
      purpose of the Indenture; but no such waiver shall affect any subsequent Note
      Event of Default or impair any right consequent thereon.

     

    (d)  Notwithstanding
      paragraphs (a) and (b) of this Section
      6.10
      and
      subject to paragraph (c), the Holders of at least a Majority in Liquidation
      Amount of the Preferred Securities may, on behalf of the Holders of all the
      Preferred Securities, waive any Event of Default and its consequences. Upon
      such
      waiver, any such Event of Default shall cease to exist, and any Event of Default
      arising therefrom shall be deemed to have been cured, for every purpose of
      this
      Trust Agreement, but no such waiver shall extend to any subsequent or other
      Event of Default or impair any right consequent thereon.

     

    (e)  The
      Holders of a Majority in Liquidation Amount of the Preferred Securities shall
      have the right to direct the time, method and place of conducting any proceeding
      for any remedy available to the Property Trustee in respect of this Trust
      Agreement or the Notes or exercising any trust or power conferred upon the
      Property Trustee under this Trust Agreement; provided, that, subject to
Sections
      8.5
      and
8.7,
      the
      Property Trustee shall have the right to decline to follow any such direction
      if
      the Property Trustee being advised by counsel determines that the action so
      directed may not lawfully be taken, or if the Property Trustee in good faith
      shall, by an officer or officers of the Property Trustee, determine that the
      proceedings so directed would be illegal or involve it in personal liability
      or
      be unduly prejudicial to the rights of Holders not party to such direction,
      and
      provided, further, that nothing in this Trust Agreement shall impair the right
      of the Property Trustee to take any action deemed proper by the Property Trustee
      and which is not inconsistent with such direction.

     

     

    
      
        
        

      

      
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    ARTICLE
      VII.

     

    
      REPRESENTATIONS
        AND WARRANTIES

    

     

    SECTION
      7.1.  Representations
      and Warranties of the Property Trustee and the Delaware Trustee.

     

    The
      Property Trustee and the Delaware Trustee, each severally on behalf of and
      as to
      itself, hereby represents and warrants for the benefit of the Depositor, the
      Guarantor and the Holders that:

     

    (a)  the
      Property Trustee is a Delaware banking corporation with trust powers, duly
      organized, validly existing and in good standing under the laws of the State
      of
      Delaware;

     

    (b)  the
      Property Trustee has full corporate power, authority and legal right to execute,
      deliver and perform its obligations under this Trust Agreement and has taken
      all
      necessary action to authorize the execution, delivery and performance by it
      of
      this Trust Agreement;

     

    (c)  the
      Delaware Trustee is a Delaware banking corporation, duly organized with trust
      powers, validly existing and in good standing under the laws of the State of
      Delaware and with its principal place of business in the State of
      Delaware;

     

    (d)  the
      Delaware Trustee has full corporate power, authority and legal right to execute,
      deliver and perform its obligations under this Trust Agreement and has taken
      all
      necessary action to authorize the execution, delivery and performance by it
      of
      this Trust Agreement;

     

    (e)  this
      Trust Agreement has been duly authorized, executed and delivered by the Property
      Trustee and the Delaware Trustee and constitutes the legal, valid and binding
      agreement of each of the Property Trustee and the Delaware Trustee enforceable
      against each of them in accordance with its terms, subject to applicable
      bankruptcy, insolvency and similar laws affecting creditors’ rights generally
      and to general principles of equity and the discretion of the court (regardless
      of whether considered in a proceeding in equity or at law);

     

    (f)  the
      execution, delivery and performance of this Trust Agreement have been duly
      authorized by all necessary corporate or other action on the part of the
      Property Trustee and the Delaware Trustee and do not require any approval of
      stockholders of the Property Trustee and the Delaware Trustee and such
      execution, delivery and performance will not (i) violate the Charter or By-laws
      of the Property Trustee or the Delaware Trustee or  (ii) violate any
      applicable law, governmental rule or regulation of the United States or the
      State of Delaware, as the case may be, governing the banking and trust powers
      of
      the Property Trustee or the Delaware Trustee or any order, judgment or decree
      applicable to the Property Trustee or the Delaware Trustee;

     

    (g)  neither
      the authorization, execution or delivery by the Property Trustee or the Delaware
      Trustee of this Trust Agreement nor the consummation of any of the transactions
      by the Property Trustee or the Delaware Trustee contemplated herein requires
      the
      consent or approval of, the giving of notice to, the registration with or the
      taking of any other action with respect to any governmental authority or agency
      under any existing law of the United States or the State of Delaware governing
      the banking and trust powers of the Property Trustee or the Delaware Trustee,
      as
      the case may be; and

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    (h)  to
      the
      best of each of the Property Trustee’s and the Delaware Trustee’s knowledge,
      there are no proceedings pending or threatened against or affecting the Property
      Trustee or the Delaware Trustee in any court or before any governmental
      authority, agency or arbitration board or tribunal that, individually or in
      the
      aggregate, would materially and adversely affect the Trust or would question
      the
      right, power and authority of the Property Trustee or the Delaware Trustee,
      as
      the case may be, to enter into or perform its obligations as one of the Trustees
      under this Trust Agreement.

     

    SECTION
      7.2.  Representations
      and Warranties of Depositor.

     

    The
      Depositor hereby represents and warrants for the benefit of the Holders
      that:

     

    (a)  the
      Depositor is a limited partnership duly organized, validly existing and in
      good
      standing under the laws of its state of organization;

     

    (b)  the
      Depositor has full power, authority and legal right to execute, deliver and
      perform its obligations under this Trust Agreement and has taken all necessary
      action to authorize the execution, delivery and performance by it of this Trust
      Agreement;

     

    (c)  this
      Trust Agreement has been duly authorized, executed and delivered by the
      Depositor and constitutes the legal, valid and binding agreement of the
      Depositor enforceable against the Depositor in accordance with its terms,
      subject to applicable bankruptcy, insolvency and similar laws affecting
      creditors’ rights generally and to general principles of equity;

     

    (d)  the
      Securities Certificates issued at the Closing Date on behalf of the Trust have
      been duly authorized and will have been duly and validly executed, issued and
      delivered by the applicable Trustees pursuant to the terms and provisions of,
      and in accordance with the requirements of, this Trust Agreement and the Holders
      will be, as of such date, entitled to the benefits of this Trust
      Agreement;

     

    (e)  the
      execution, delivery and performance of this Trust Agreement have been duly
      authorized by all necessary action on the part of the Depositor and do not
      require any approval of equity owners of the Depositor and such execution,
      delivery and performance will not (i) violate the organizational documents
      of
      the Depositor or (ii) violate any applicable law, governmental rule or
      regulation governing the Depositor or any material portion of its property
      or
      any order, judgment or decree applicable to the Depositor or any material
      portion of its property;

     

    (f)  neither
      the authorization, execution or delivery by the Depositor of this Trust
      Agreement nor the consummation of any of the transactions by the Depositor
      contemplated herein requires the consent or approval of, the giving of notice
      to, the registration with or the taking of any other action with respect to
      any
      governmental authority or agency under any existing law governing the Depositor
      or any material portion of its property; and

     

    (g)  there
      are
      no proceedings pending or, to the best of the Depositor’s knowledge, threatened
      against or affecting the Depositor or any material portion of its property
      in
      any court or before any governmental authority, agency or arbitration board
      or
      tribunal that, individually or in the aggregate, would materially and adversely
      affect the Trust or would question the right, power and authority of the
      Depositor, as the case may be, to enter into or perform its obligations under
      this Trust Agreement.

     

    
      
        
        

      

      
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    ARTICLE
      VIII.

     

    THE
      TRUSTEES

     

    SECTION
      8.1.  Number
      of
      Trustees.

     

    The
      number of Trustees shall be five (5), provided, that the Property Trustee and
      the Delaware Trustee may be the same Person, in which case the number of
      Trustees shall be four (4). The number of Trustees may be increased or decreased
      by Act of the Holder of the Common Securities subject to Sections
      8.2,
      8.3,
      and
8.4.
      The
      death, resignation, retirement, removal, bankruptcy, incompetence or incapacity
      to perform the duties of a Trustee shall not operate to annul, dissolve or
      terminate the Trust.

     

    SECTION
      8.2.  Property
      Trustee Required.

     

    There
      shall at all times be a Property Trustee hereunder with respect to the Trust
      Securities. The Property Trustee shall be a corporation organized and doing
      business under the laws of the United States or of any state thereof, authorized
      to exercise corporate trust powers, having a combined capital and surplus of
      at
      least fifty million dollars ($50,000,000), subject to supervision or examination
      by federal or state authority and having an office within the United States.
      If
      any such Person publishes reports of condition at least annually pursuant to
      law
      or to the requirements of its supervising or examining authority, then for
      the
      purposes of this Section 8.2,
      the
      combined capital and surplus of such Person shall be deemed to be its combined
      capital and surplus as set forth in its most recent report of condition so
      published. If at any time the Property Trustee shall cease to be eligible in
      accordance with the provisions of this Section 8.2,
      it
      shall resign immediately in the manner and with the effect hereinafter specified
      in this Article
      VIII.

     

    SECTION
      8.3.  Delaware
      Trustee Required.

     

    (a)  If
      required by the Delaware Statutory Trust Act, there shall at all times be a
      Delaware Trustee with respect to the Trust Securities. The Delaware Trustee
      shall either be (i) a natural person who is at least 21 years of age and a
      resident of the State of Delaware or (ii) a legal entity that has its principal
      place of business in the State of Delaware, otherwise meets the requirements
      of
      applicable Delaware law and shall act through one or more persons authorized
      to
      bind such entity. If at any time the Delaware Trustee shall cease to be eligible
      in accordance with the provisions of this Section
      8.3,
      it
      shall resign immediately in the manner and with the effect hereinafter specified
      in this Article
      VIII.

     

    (b)  The
      Delaware Trustee shall not be entitled to exercise any powers, nor shall the
      Delaware Trustee have any of the duties and responsibilities, of the Property
      Trustee or the Administrative Trustees set forth herein. The Delaware Trustee
      shall be one of the trustees of the Trust for the sole and limited purpose
      of
      fulfilling the requirements of Section 3807 of the Delaware Statutory Trust
      Act
      and for taking such actions as are required to be taken by a Delaware trustee
      under the Delaware Statutory Trust Act. The duties (including fiduciary duties),
      liabilities and obligations of the Delaware Trustee shall be limited to (a)
      accepting legal process served on the Trust in the State of Delaware and (b)
      the
      execution of any certificates required to be filed with the Secretary of State
      of the State of Delaware that the Delaware Trustee is required to execute under
      Section 3811 of the Delaware Statutory Trust Act and there shall be no other
      duties (including fiduciary duties) or obligations, express or implied, at
      law
      or in equity, of the Delaware Trustee.

     

    
      
        
        

      

      
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    SECTION
      8.4.  Appointment
      of Administrative Trustees.

     

    (a)  There
      shall at all times be one or more Administrative Trustees hereunder with respect
      to the Trust Securities. Each Administrative Trustee shall be either a natural
      person who is at least 21 years of age or a legal entity that shall act through
      one or more persons authorized to bind that entity. Each of the individuals
      identified as an “Administrative Trustee” in the preamble of this Trust
      Agreement hereby accepts his or her appointment as such.

     

    (b)  Except
      where a requirement for action by a specific number of Administrative Trustees
      is expressly set forth in this Trust Agreement, any act required or permitted
      to
      be taken by, and any power of the Administrative Trustees may be exercised
      by,
      or with the consent of, any one such Administrative Trustee. Whenever a vacancy
      in the number of Administrative Trustees shall occur, until such vacancy is
      filled by the appointment of an Administrative Trustee in accordance with
Section
      8.11,
      the
      Administrative Trustees in office, regardless of their number (and
      notwithstanding any other provision of this Trust Agreement), shall have all
      the
      powers granted to the Administrative Trustees and shall discharge all the duties
      imposed upon the Administrative Trustees by this Trust Agreement.

     

    SECTION
      8.5.  Duties
      and Responsibilities of the Trustees.

     

    (a)  The
      rights, immunities, duties and responsibilities of the Trustees shall be as
      provided by this Trust Agreement and there shall be no other duties (including
      fiduciary duties) or obligations, express or implied, at law or in equity,
      of
      the Trustees; provided, however, that if an Event of Default known to the
      Property Trustee has occurred and is continuing, the Property Trustee shall,
      prior to the receipt of directions, if any, from the Holders of at least a
      Majority in Liquidation Amount of the Preferred Securities, exercise such of
      the
      rights and powers vested in it by this Trust Agreement, and use the same degree
      of care and skill in its exercise, as a prudent person would exercise or use
      under the circumstances in the conduct of such person’s own affairs.
      Notwithstanding the foregoing, no provision of this Trust Agreement shall
      require any of the Trustees to expend or risk its own funds or otherwise incur
      any financial liability in the performance of any of its duties hereunder,
      or in
      the exercise of any of its or their rights or powers, if it or they shall have
      reasonable grounds for believing that repayment of such funds or adequate
      indemnity against such risk or liability is not reasonably assured to it.
      Whether or not herein expressly so provided, every provision of this Trust
      Agreement relating to the conduct or affecting the liability of or affording
      protection to the Trustees shall be subject to the provisions of this
Section
      8.5.
      To the
      extent that, at law or in equity, a Trustee has duties and liabilities relating
      to the Trust or to the Holders, such Trustee shall not be liable to the Trust
      or
      to any Holder for such Trustee’s good faith reliance on the provisions of this
      Trust Agreement. The provisions of this Trust Agreement, to the extent that
      they
      restrict the duties and liabilities of the Trustees otherwise existing at law
      or
      in equity, are agreed by the Depositor, the Guarantor and the Holders to replace
      such other duties and liabilities of the Trustees.

     

    
      
        
        

      

      
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    (b)  All
      payments made by the Property Trustee or a Paying Agent in respect of the Trust
      Securities shall be made only from the revenue and proceeds from the Trust
      Property and only to the extent that there shall be sufficient revenue or
      proceeds from the Trust Property to enable the Property Trustee or a Paying
      Agent to make payments in accordance with the terms hereof. Each Holder, by
      its
      acceptance of a Trust Security, agrees that it will look solely to the revenue
      and proceeds from the Trust Property to the extent legally available for
      distribution to it as herein provided and that the Trustees are not personally
      liable to it for any amount distributable in respect of any Trust Security
      or
      for any other liability in respect of any Trust Security. This Section
      8.5(b)
      does not
      limit the liability of the Trustees expressly set forth elsewhere in this Trust
      Agreement.

     

    (c)  No
      provisions of this Trust Agreement shall be construed to relieve the Property
      Trustee from liability with respect to matters that are within the authority
      of
      the Property Trustee under this Trust Agreement for its own negligent action,
      negligent failure to act or willful misconduct, except that:

     

    (i)  the
      Property Trustee shall not be liable for any error or judgment made in good
      faith by an authorized officer of the Property Trustee, unless it shall be
      proved that the Property Trustee was negligent in ascertaining the pertinent
      facts;

     

    (ii)  the
      Property Trustee shall not be liable with respect to any action taken or omitted
      to be taken by it in good faith in accordance with the direction of the Holders
      of at least a Majority in Liquidation Amount of the Preferred Securities
      relating to the time, method and place of conducting any proceeding for any
      remedy available to the Property Trustee hereunder or under the Indenture,
      or
      exercising any trust or power conferred upon the Property Trustee under this
      Trust Agreement;

     

    (iii)  the
      Property Trustee’s sole duty with respect to the custody, safe keeping and
      physical preservation of the Notes and the Payment Account shall be to deal
      with
      such Property in a similar manner as the Property Trustee deals with similar
      property for its own account, subject to the protections and limitations on
      liability afforded to the Property Trustee under this Trust
      Agreement;

     

    (iv)  the
      Property Trustee shall not be liable for any interest on any money received
      by
      it; and money held by the Property Trustee need not be segregated from other
      funds held by it except in relation to the Payment Account maintained by the
      Property Trustee pursuant to Section 3.1 and except to the extent otherwise
      required by law; and

     

    (v)  the
      Property Trustee shall not be responsible for monitoring the compliance by
      the
      Administrative Trustees, the Guarantor or the Depositor with their respective
      duties under this Trust Agreement, nor shall the Property Trustee be liable
      for
      the default or misconduct of any other Trustee, the Guarantor or the
      Depositor.

     

    
      
        
        

      

      
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    SECTION
      8.6.  Notices
      of Defaults and Extensions.

     

    (a)  Within
      ninety (90) days after the occurrence of a default actually known to the
      Property Trustee, the Property Trustee shall transmit notice of such default
      to
      the Holders, the Administrative Trustees, the Guarantor and the Depositor,
      unless such default shall have been cured or waived; provided, that, except
      in
      the case of a default in the payment of the principal of or any premium or
      interest (including any Additional Interest) on any Trust Security, the Property
      Trustee shall be fully protected in withholding such notice if and so long
      as
      the board of directors, the executive committee or a trust committee of
      directors and/or Responsible Officers of the Property Trustee in good faith
      determines that the withholding of such notice is in the interests of the
      Holders of the Trust Securities. For the purpose of this Section
      8.6,
      the
      term “default” means any event that is, or after notice or lapse of time or both
      would become, an Event of Default.

     

    (b)  RESERVED.
      

     

    (c)  The
      Property Trustee shall not be deemed to have knowledge of any default or Event
      of Default unless the Property Trustee shall have received written notice
      thereof from the Depositor, the Guarantor, any Administrative Trustee or any
      Holder or unless a Responsible Officer of the Property Trustee shall have
      obtained actual knowledge of such default or Event of Default.

     

    (d)  The
      Property Trustee shall notify all Holders of the Preferred Securities of any
      notice of default received with respect to the Notes.

     

    SECTION
      8.7.  Certain
      Rights of Property Trustee.

     

    Subject
      to the provisions of Section
      8.5:

     

    (a)  the
      Property Trustee may conclusively rely and shall be protected in acting or
      refraining from acting in good faith and in accordance with the terms hereof
      upon any resolution, Opinion of Counsel, certificate, written representation
      of
      a Holder or transferee, certificate of auditors or any other resolution,
      certificate, statement, instrument, opinion, report, notice, request, direction,
      consent, order, appraisal, bond, debenture, note, other evidence of indebtedness
      or other paper or document believed by it to be genuine and to have been signed
      or presented by the proper party or parties;

     

    (b)  if
      (i) in
      performing its duties under this Trust Agreement the Property Trustee is
      required to decide between alternative courses of action, (ii) in construing
      any
      of the provisions of this Trust Agreement the Property Trustee finds a provision
      ambiguous or inconsistent with any other provisions contained herein or (iii)
      the Property Trustee is unsure of the application of any provision of this
      Trust
      Agreement, then, except as to any matter as to which the Holders of the
      Preferred Securities are entitled to vote under the terms of this Trust
      Agreement, the Property Trustee shall deliver a notice to the Depositor
      requesting the Depositor’s written instruction as to the course of action to be
      taken and the Property Trustee shall take such action, or refrain from taking
      such action, as the Property Trustee shall be instructed in writing to take,
      or
      to refrain from taking, by the Depositor; provided, that if the Property Trustee
      does not receive such instructions of the Depositor within ten (10) Business
      Days after it has delivered such notice or such reasonably shorter period of
      time set forth in such notice, the Property Trustee may, but shall be under
      no
      duty to, take such action, or refrain from taking such action, as the Property
      Trustee shall deem advisable and in the best interests of the Holders, in which
      event the Property Trustee shall have no liability except for its own
      negligence, bad faith or willful misconduct;

     

    
      
        
        

      

      
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    (c)  any
      direction or act of the Depositor or the Guarantor contemplated by this Trust
      Agreement shall be sufficiently evidenced by an Officer’s Certificate unless
      otherwise expressly provided herein;

     

    (d)  any
      direction or act of an Administrative Trustee contemplated by this Trust
      Agreement shall be sufficiently evidenced by a certificate executed by such
      Administrative Trustee and setting forth such direction or act;

     

    (e)  the
      Property Trustee shall have no duty to see to any recording, filing or
      registration of any instrument (including any financing or continuation
      statement or any filing under tax or securities laws) or any re-recording,
      re-filing or re-registration thereof;

     

    (f)  the
      Property Trustee may consult with counsel (which counsel may be counsel to
      the
      Property Trustee, the Depositor or the Guarantor or any of the Depositor’s or
      the Guarantor’s Affiliates, and may include any of its employees) and the advice
      of such counsel shall be full and complete authorization and protection in
      respect of any action taken, suffered or omitted by it hereunder in good faith
      and in reliance thereon and in accordance with such advice; the Property Trustee
      shall have the right at any time to seek instructions concerning the
      administration of this Trust Agreement from any court of competent
      jurisdiction;

     

    (g)  the
      Property Trustee shall be under no obligation to exercise any of the rights
      or
      powers vested in it by this Trust Agreement at the request or direction of
      any
      of the Holders pursuant to this Trust Agreement, unless such Holders shall
      have
      offered to the Property Trustee reasonable security or indemnity against the
      costs, expenses (including reasonable attorneys’ fees and expenses) and
      liabilities that might be incurred by it in compliance with such request or
      direction, including reasonable advances as may be requested by the Property
      Trustee;

     

    (h)  the
      Property Trustee shall not be bound to make any investigation into the facts
      or
      matters stated in any resolution, certificate, statement, instrument, opinion,
      report, notice, request, direction, consent, order, approval, bond, debenture,
      note or other evidence of indebtedness or other paper or document, unless
      requested in writing to do so by one or more Holders, but the Property Trustee
      may make such further inquiry or investigation into such facts or matters as
      it
      may see fit, and, if the Property Trustee shall determine to make such inquiry
      or investigation, it shall be entitled to examine the books, records and
      premises of the Depositor, personally or by agent or attorney;

     

    (i)  the
      Property Trustee may execute any of the trusts or powers hereunder or perform
      any duties hereunder either directly or by or through its agents, attorneys,
      custodians or nominees and the Property Trustee shall not be responsible for
      any
      negligence or misconduct on the part of any such agent, attorney, custodian
      or
      nominee appointed with due care by it hereunder;

     

    
      
        
        

      

      
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    (j)  whenever
      in the administration of this Trust Agreement the Property Trustee shall deem
      it
      desirable to receive instructions with respect to enforcing any remedy or right
      hereunder, the Property Trustee (i) may request instructions from the Holders
      (which instructions may only be given by the Holders of the same proportion
      in
      Liquidation Amount of the Trust Securities as would be entitled to direct the
      Property Trustee under this Trust Agreement in respect of such remedy, right
      or
      action), (ii) may refrain from enforcing such remedy or right or taking such
      other action until such instructions are received and (iii) shall be protected
      in acting in accordance with such instructions;

     

    (k)  except
      as
      otherwise expressly provided by this Trust Agreement, the Property Trustee
      shall
      not be under any obligation to take any action that is discretionary under
      the
      provisions of this Trust Agreement;

     

    (l)  without
      prejudice to any other rights available to the Property Trustee under applicable
      law, when the Property Trustee incurs expenses or renders services in connection
      with a Bankruptcy Event, such expenses (including legal fees and expenses of
      its
      agents and counsel) and the compensation for such services are intended to
      constitute expenses of administration under any Bankruptcy Law or law relating
      to creditors rights generally; and

     

    (m)  whenever
      in the administration of this Trust Agreement the Property Trustee shall deem
      it
      desirable that a matter be proved or established prior to taking, suffering
      or
      omitting any action hereunder, the Property Trustee (unless other evidence
      be
      herein specifically prescribed) may, in the absence of bad faith on its part,
      request and rely on an Officer’s Certificate which, upon receipt of such
      request, shall be promptly delivered by the Depositor.

     

    No
      provision of this Trust Agreement shall be deemed to impose any duty or
      obligation on any Trustee to perform any act or acts or exercise any right,
      power, duty or obligation conferred or imposed on it, in any jurisdiction in
      which it shall be illegal, or in which such Person shall be unqualified or
      incompetent in accordance with applicable law, to perform any such act or acts,
      or to exercise any such right, power, duty or obligation.

     

    SECTION
      8.8.  Delegation
      of Power.

     

    Any
      Trustee may, by power of attorney or otherwise, delegate to any other Person
      its, his or her power for the purpose of executing any documents contemplated
      in
Section
      2.5.
      The
      Trustees shall have power to delegate from time to time to such of their number
      or to the Depositor the doing of such things and the execution of such
      instruments either in the name of the Trust or the names of the Trustees or
      otherwise as the Trustees may deem expedient, to the extent such delegation
      is
      not prohibited by applicable law or contrary to the provisions of this Trust
      Agreement.

     

    SECTION
      8.9.  May
      Hold
      Securities.

     

    Any
      Trustee or any other agent of any Trustee or the Trust, in its individual or
      any
      other capacity, may become the owner or pledgee of Trust Securities and except
      as provided in the definition of the term “Outstanding” in Article
      I,
      may
      otherwise deal with the Trust with the same rights it would have if it were
      not
      a Trustee or such other agent.

     

    
      
        
        

      

      
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    SECTION
      8.10.  Compensation;
      Reimbursement; Indemnity.

     

    The
      Depositor agrees:

     

    (a)  to
      pay to
      the Trustees from time to time such reasonable compensation for all services
      rendered by them hereunder as may be agreed by the Depositor and the Trustees
      from time to time (which compensation shall not be limited by any provision
      of
      law in regard to the compensation of a trustee of an express
      trust);

     

    (b)  to
      reimburse the Trustees upon request for all reasonable expenses, disbursements
      and advances incurred or made by the Trustees in accordance with any provision
      of this Trust Agreement (including the reasonable compensation and the expenses
      and disbursements of their agents and counsel), except any such expense,
      disbursement or advance as may be attributable to their gross negligence, bad
      faith or willful misconduct; and

     

    (c)  to
      the
      fullest extent permitted by applicable law, to indemnify and hold harmless
      (i)
      each Trustee (including in its individual capacity), (ii) any Affiliate of
      any
      Trustee, (iii) any officer, director, shareholder, employee, representative
      or
      agent of any Trustee or any Affiliate of any Trustee and (iv) any employee
      or
      agent of the Trust (referred to herein as an “Indemnified Person”) from and
      against any loss, damage, liability, tax (other than income, franchise or other
      taxes imposed on amounts paid pursuant to Section
      8.10(a)
      or
(b)
      hereof),
      penalty, expense or claim of any kind or nature whatsoever incurred without
      negligence, bad faith or willful misconduct on its part, arising out of or
      in
      connection with the acceptance or administration of the Trust hereunder,
      including the advancement of funds to cover the reasonable costs and expenses
      of
      defending itself against any claim or liability in connection with the exercise
      or performance of any of its powers or duties hereunder.

     

    The
      Trust
      shall have no payment, reimbursement or indemnity obligations to the Trustees
      under this Section
      8.10.
      The
      provisions of this Section
      8.10
      shall
      survive the termination of this Trust Agreement and the earlier removal or
      resignation of any Trustee.

     

    No
      Trustee may claim any Lien on any Trust Property whether before or after
      termination of the Trust as a result of any amount due pursuant to this
Section
      8.10.

     

    To
      the
      fullest extent permitted by law, in no event shall the Property Trustee and
      the
      Delaware Trustee be liable for any indirect, special, punitive or consequential
      loss or damage of any kind whatsoever, including, but not limited to, lost
      profits, even if the Trustee has been advised of the likelihood of such loss
      or
      damage and regardless of the form of action. 

     

    In
      no
      event shall the Property Trustee and the Delaware Trustee be liable for any
      failure or delay in the performance of its obligations hereunder because of
      circumstances beyond its control, including, but not limited to, acts of God,
      flood, war (whether declared or undeclared), terrorism, fire, riot, embargo,
      government action, including any laws, ordinances, regulations, governmental
      action or the like which delay, restrict or prohibit the providing of the
      services contemplated by this Trust Agreement. 

     

    
      
        
        

      

      
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    SECTION
      8.11.  Resignation
      and Removal; Appointment of Successor.

     

    (a)  No
      resignation or removal of any Trustee and no appointment of a successor Trustee
      pursuant to this Article
      VIII
      shall
      become effective until the acceptance of appointment by the successor Trustee
      in
      accordance with the applicable requirements of Section
      8.12.

     

    (b)  A
      Trustee
      may resign at any time by giving written notice thereof to the Depositor and,
      in
      the case of the Property Trustee and the Delaware Trustee, to the
      Holders.

     

    (c)  Unless
      an
      Event of Default shall have occurred and be continuing, the Property Trustee
      or
      the Delaware Trustee, or both of them, may be removed (with or without cause)
      at
      any time by Act of the Holder of Common Securities. If an Event of Default
      shall
      have occurred and be continuing, the Property Trustee or the Delaware Trustee,
      or both of them, may be removed (with or without cause) at such time by Act
      of
      the Holders of at least a Majority in Liquidation Amount of the Preferred
      Securities, delivered to the removed Trustee (in its individual capacity and
      on
      behalf of the Trust). An Administrative Trustee may be removed (with or without
      cause) only by Act of the Holder of the Common Securities at any
      time.

     

    (d)  If
      any
      Trustee shall resign, be removed or become incapable of acting as Trustee,
      or if
      a vacancy shall occur in the office of any Trustee for any reason, at a time
      when no Event of Default shall have occurred and be continuing, the Holder
      of
      the Common Securities, by Act of the Holder of the Common Securities, shall
      promptly appoint a successor Trustee or Trustees, and such successor Trustee
      and
      the retiring Trustee shall comply with the applicable requirements of
Section
      8.12.
      If the
      Property Trustee or the Delaware Trustee shall resign, be removed or become
      incapable of continuing to act as the Property Trustee or the Delaware Trustee,
      as the case may be, at a time when an Event of Default shall have occurred
      and
      be continuing, the Holders of the Preferred Securities, by Act of the Holders
      of
      a Majority in Liquidation Amount of the Preferred Securities, shall promptly
      appoint a successor Property Trustee or Delaware Trustee, and such successor
      Property Trustee or Delaware Trustee and the retiring Property Trustee or
      Delaware Trustee shall comply with the applicable requirements of Section
      8.12.
      If an
      Administrative Trustee shall resign, be removed or become incapable of acting
      as
      Administrative Trustee, at a time when an Event of Default shall have occurred
      and be continuing, the Holder of the Common Securities by Act of the Holder
      of
      Common Securities shall promptly appoint a successor Administrative Trustee
      and
      such successor Administrative Trustee and the retiring Administrative Trustee
      shall comply with the applicable requirements of Section
      8.12.
      If no
      successor Trustee shall have been so appointed by the Holder of the Common
      Securities or Holders of the Preferred Securities, as the case may be, and
      accepted appointment in the manner required by Section
      8.12
      within
      thirty (30) days after the giving of a notice of resignation by a Trustee,
      the
      removal of a Trustee, or a Trustee becoming incapable of acting as such Trustee,
      any Holder who has been a Holder of Preferred Securities for at least six (6)
      months may, on behalf of himself and all others similarly situated, and any
      resigning Trustee may, in each case, at the expense of the Depositor, petition
      any court of competent jurisdiction for the appointment of a successor Trustee.
      

     

    (e)  The
      Depositor shall give notice of each resignation and each removal of the Property
      Trustee or the Delaware Trustee and each appointment of a successor Property
      Trustee or Delaware Trustee to all Holders in the manner provided in
Section
      10.8.
      Each
      notice shall include the name of the successor Property Trustee or Delaware
      Trustee and the address of its Corporate Trust Office if it is the Property
      Trustee.

     

    
      
        
        

      

      
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    (f)  Notwithstanding
      the foregoing or any other provision of this Trust Agreement, in the event
      any
      Administrative Trustee or a Delaware Trustee who is a natural person dies or
      becomes, in the opinion of the Holder of Common Securities, incompetent or
      incapacitated, the vacancy created by such death, incompetence or incapacity
      may
      be filled by (i) the unanimous act of the remaining Administrative Trustees
      if
      there are at least two of them or (ii) otherwise by the Holder of the Common
      Securities (with the successor in each case being a Person who satisfies the
      eligibility requirement for Administrative Trustees or Delaware Trustee, as
      the
      case may be, set forth in Sections
      8.3
      and
8.4).

     

    (g)  Upon
      the
      appointment of a successor Delaware Trustee, such successor Delaware Trustee
      shall file a Certificate of Amendment to the Certificate of Trust in accordance
      with Section 3810 of the Delaware Statutory Trust Act.

     

    SECTION
      8.12.  Acceptance
      of Appointment by Successor.

     

    (a)  In
      case
      of the appointment hereunder of a successor Trustee, each successor Trustee
      shall execute and deliver to the Depositor and to the retiring Trustee an
      instrument accepting such appointment, and thereupon the resignation or removal
      of the retiring Trustee shall become effective and each such successor Trustee,
      without any further act, deed or conveyance, shall become vested with all the
      rights, powers, trusts and duties of the retiring Trustee; but, on request
      of
      the Trust or any successor Trustee such retiring Trustee shall, upon payment
      of
      its charges, duly assign, transfer and deliver to such successor Trustee all
      Trust Property, all proceeds thereof and money held by such retiring Trustee
      hereunder with respect to the Trust Securities and the Trust.

     

    (b)  Upon
      request of any such successor Trustee, the Trust (or the retiring Trustee if
      requested by the Depositor) shall execute any and all instruments for more
      fully
      and certainly vesting in and confirming to such successor Trustee all such
      rights, powers and trusts referred to in the preceding paragraph.

     

    (c)  No
      successor Trustee shall accept its appointment unless at the time of such
      acceptance such successor Trustee shall be qualified and eligible under this
      Article
      VIII.

     

    SECTION
      8.13.  Merger,
      Conversion, Consolidation or Succession to Business.

     

    Any
      Person into which the Property Trustee or the Delaware Trustee may be merged
      or
      converted or with which it may be consolidated, or any Person resulting from
      any
      merger, conversion or consolidation to which such Trustee shall be a party,
      or
      any Person succeeding to all or substantially all the corporate trust business
      of such Trustee, shall be the successor of such Trustee hereunder, without
      the
      execution or filing of any paper or any further act on the part of any of the
      parties hereto, provided, that such Person shall be otherwise qualified and
      eligible under this Article
      VIII.

     

    
      
        
        

      

      
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    SECTION
      8.14.  Not
      Responsible for Recitals or Issuance of Securities.

     

    The
      recitals contained herein and in the Securities Certificates shall be taken
      as
      the statements of the Trust and the Depositor, and the Trustees do not assume
      any responsibility for their correctness. The Trustees make no representations
      as to the title to, or value or condition of, the property of the Trust or
      any
      part thereof, nor as to the validity or sufficiency of this Trust Agreement,
      the
      Notes or the Trust Securities. The Trustees shall not be accountable for the
      use
      or application by the Depositor of the proceeds of the Notes.

     

    SECTION
      8.15.  Property
      Trustee May File Proofs of Claim.

     

    (a)  In
      case
      of any Bankruptcy Event (or event that with the passage of time would become
      a
      Bankruptcy Event) relative to the Trust or any other obligor upon the Trust
      Securities or the property of the Trust or of such other obligor or their
      creditors, the Property Trustee (irrespective of whether any Distributions
      on
      the Trust Securities shall then be due and payable and irrespective of whether
      the Property Trustee shall have made any demand on the Trust for the payment
      of
      any past due Distributions) shall be entitled and empowered, to the fullest
      extent permitted by law, by intervention in such proceeding or
      otherwise:

     

    (i)  to
      file
      and prove a claim for the whole amount of any Distributions owing and unpaid
      in
      respect of the Trust Securities and to file such other papers or documents
      as
      may be necessary or advisable in order to have the claims of the Property
      Trustee (including any claim for the reasonable compensation, expenses,
      disbursements and advances of the Property Trustee, its agents and counsel)
      and
      of the Holders allowed in such judicial proceeding; and

     

    (ii)  to
      collect and receive any monies or other property payable or deliverable on
      any
      such claims and to distribute the same;

     

    and
      any
      custodian, receiver, assignee, trustee, liquidator, sequestrator or other
      similar official in any such proceeding is hereby authorized by each Holder
      to
      make such payments to the Property Trustee and, in the event the Property
      Trustee shall consent to the making of such payments directly to the Holders,
      to
      pay to the Property Trustee first any amount due it for the reasonable
      compensation, expenses, disbursements and advances of the Property Trustee,
      its
      agents and counsel, and any other amounts due the Property Trustee.

     

    (b)  Nothing
      herein contained shall be deemed to authorize the Property Trustee to authorize
      or consent to or accept or adopt on behalf of any Holder any plan of
      reorganization, arrangement, adjustment or compensation affecting the Trust
      Securities or the rights of any Holder thereof or to authorize the Property
      Trustee to vote in respect of the claim of any Holder in any such
      proceeding.

     

    
      
        
        

      

      
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    SECTION
      8.16.  Reports
      to and from the Property Trustee.

     

    (a)  The
      Depositor, the Guarantor and the Administrative Trustees shall deliver to the
      Property Trustee, not later than forty five (45) days after the end of each
      of
      the first three fiscal quarters of the Depositor and the Guarantor and not
      later
      than ninety (90) days after the end of each fiscal year of the Depositor and
      the
      Guarantor ending after the date of this Trust Agreement, an Officer’s
      Certificate (substantially in the form attached hereto as Exhibit
      H)
      covering the preceding fiscal period, stating whether or not to the knowledge
      of
      the signers thereof the Depositor, the Guarantor, the Administrative Trustees
      or
      the Trust are in default in the performance or observance of any of the terms,
      provisions and conditions of this Trust Agreement (without regard to any period
      of grace or requirement of notice provided hereunder) and, if the Depositor,
      the
      Guarantor, the Administrative Trustees or the Trust shall be in default,
      specifying all such defaults and the nature and status thereof of which they
      have knowledge.

     

    (b)  The
      Depositor and the Guarantor shall furnish to (i) the Property Trustee, (ii)
      the
      Purchaser, (iii) any Owner of the Preferred Securities reasonably identified
      to
      the Depositor, the Guarantor or the Trust (which identification may be made
      either by such Owner or by the Purchaser) and (iv) any designee of (i), (ii)
      or
      (iii) above, a duly completed and executed certificate in the form attached
      hereto as Exhibit G, including the financial statements referenced in such
      Exhibit, which certificate and financial statements shall be so furnished by
      the
      Depositor and the Guarantor not later than forty five (45) days after the end
      of
      each of the first three fiscal quarters of each fiscal year of the Depositor
      and
      the Guarantor and not later than ninety (90) days after the end of each fiscal
      year of the Depositor and the Guarantor.

     

    (c)  The
      Property Trustee shall receive all reports, certificates and information, which
      it is entitled to obtain under each of the Operative Documents, and deliver
      to
      (i) the Purchaser, or a designee thereof, as identified in writing to the
      Property Trustee, copies of all such reports, certificates or information
      promptly upon receipt thereof.

     

     

     

    ARTICLE
      IX.

     

    TERMINATION,
      LIQUIDATION AND MERGER

     

    SECTION
      9.1.  Dissolution
      Upon Expiration Date.

     

    Unless
      earlier dissolved, the Trust shall automatically dissolve on December 30, 2041
      (the “Expiration Date”), and the Trust Property shall be liquidated in
      accordance with Section
      9.4.

     

    SECTION
      9.2.  Early
      Termination.

     

    The
      first
      to occur of any of the following events is an “Early Termination Event”, upon
      the occurrence of which the Trust shall be dissolved:

     

    (a)  the
      occurrence of a Bankruptcy Event in respect of, or the dissolution or
      liquidation of, the Depositor, in its capacity as the Holder of the Common
      Securities, unless the Depositor shall have transferred the Common Securities
      as
      provided by Section
      5.11,
      in
      which case this provision shall refer instead to any such successor Holder
      of
      the Common Securities;

     

    (b)  the
      written direction to the Property Trustee from the Holder of the Common
      Securities at any time to dissolve the Trust and, after satisfaction of any
      liabilities of the Trust as required by applicable law, to distribute the Notes
      to Holders in exchange for the Preferred Securities (which direction is optional
      and wholly within the discretion of the Holder of the Common
      Securities).

     

    
      
        
        

      

      
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    (c)  the
      redemption of all of the Preferred Securities in connection with the payment
      at
      maturity or redemption of all the Notes; and

     

    (d)  the
      entry
      of an order for dissolution of the Trust by a court of competent
      jurisdiction.

     

    SECTION
      9.3.  Termination.

     

    The
      respective obligations and responsibilities of the Trustees and the Trust shall
      terminate upon the latest to occur of the following: (a) the distribution by
      the
      Property Trustee to Holders of all amounts required to be distributed hereunder
      upon the liquidation of the Trust pursuant to Section
      9.4,
      or upon
      the redemption of all of the Trust Securities pursuant to Section 4.2;
      (b) the
      satisfaction of any expenses owed by the Trust; and (c) the discharge of all
      administrative duties of the Administrative Trustees, including the performance
      of any tax reporting obligations with respect to the Trust or the
      Holders.

     

    SECTION
      9.4.  Liquidation.

     

    (a)  If
      an
      Early Termination Event specified in Section
      9.2(a),
      (b)
      or
(d)
      occurs
      or upon the Expiration Date, the Trust shall be liquidated by the Property
      Trustee as expeditiously as the Property Trustee shall determine to be possible
      by distributing, after satisfaction of liabilities to creditors of the Trust
      as
      provided by applicable law, to each Holder a Like Amount of Notes, subject
      to
Section
      9.4(d).
      Notice
      of liquidation shall be given by the Property Trustee not less than thirty
      (30)
      nor more than sixty (60) days prior to the Liquidation Date to each Holder
      of
      Trust Securities at such Holder’s address appearing in the Securities Register.
      All such notices of liquidation shall:

     

    (i)  state
      the
      Liquidation Date;

     

    (ii)  state
      that from and after the Liquidation Date, the Trust Securities will no longer
      be
      deemed to be Outstanding and (subject to Section
      9.4(d))
      any
      Securities Certificates not surrendered for exchange will be deemed to represent
      a Like Amount of Notes; and

     

    (iii)  provide
      such information with respect to the mechanics by which Holders may exchange
      Securities Certificates for Notes, or if Section
      9.4(d)
      applies,
      receive a Liquidation Distribution, as the Property Trustee shall deem
      appropriate.

     

    (b)  Except
      where Section
      9.2(c)
      or
9.4(d)
      applies,
      in order to effect the liquidation of the Trust and distribution of the Notes
      to
      Holders, the Property Trustee, either itself acting as exchange agent or through
      the appointment of a separate exchange agent, shall establish a record date
      for
      such distribution (which shall not be more than forty-five (45) days prior
      to
      the Liquidation Date nor prior to the date on which notice of such liquidation
      is given to the Holders) and establish such procedures as it shall deem
      appropriate to effect the distribution of Notes in exchange for the Outstanding
      Securities Certificates.

     

    
      
        
        

      

      
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    (c)  Except
      where Section
      9.2(c)
      or
9.4(d)
      applies,
      after the Liquidation Date, (i) the Trust Securities will no longer be deemed
      to
      be Outstanding, (ii) certificates representing a Like Amount of Notes will
      be
      issued to Holders of Securities Certificates, upon surrender of such
      Certificates to the exchange agent for exchange, (iii) the Depositor shall
      use
      its best efforts to have the Notes listed on the New York Stock Exchange or
      on
      such other exchange, interdealer quotation system or self-regulatory
      organization on which the Preferred Securities are then listed, if any, (iv)
      Securities Certificates not so surrendered for exchange will be deemed to
      represent a Like Amount of Notes bearing accrued and unpaid interest in an
      amount equal to the accumulated and unpaid Distributions on such Securities
      Certificates until such certificates are so surrendered (and until such
      certificates are so surrendered, no payments of interest or principal will
      be
      made to Holders of Securities Certificates with respect to such Notes) and
      (v)
      all rights of Holders holding Trust Securities will cease, except the right
      of
      such Holders to receive Notes upon surrender of Securities
      Certificates.

     

    (d)  Notwithstanding
      the other provisions of this Section
      9.4,
      if
      distribution of the Notes in the manner provided herein is determined by the
      Property Trustee not to be permitted or practical, the Trust Property shall
      be
      liquidated, and the Trust shall be wound up by the Property Trustee in such
      manner as the Property Trustee determines. In such event, Holders will be
      entitled to receive out of the assets of the Trust available for distribution
      to
      Holders, after satisfaction of liabilities to creditors of the Trust as provided
      by applicable law, an amount equal to the Liquidation Amount per Trust Security
      plus accumulated and unpaid Distributions thereon to the date of payment (such
      amount being the “Liquidation Distribution”). If, upon any such winding up the
      Liquidation Distribution can be paid only in part because the Trust has
      insufficient assets available to pay in full the aggregate Liquidation
      Distribution, then, subject to the next succeeding sentence, the amounts payable
      by the Trust on the Trust Securities shall be paid on a pro rata basis (based
      upon Liquidation Amounts). The Holder of the Common Securities will be entitled
      to receive Liquidation Distributions upon any such winding up pro rata (based
      upon Liquidation Amounts) with Holders of all Trust Securities, except that,
      if
      an Event of Default has occurred and is continuing, the Preferred Securities
      shall have a priority over the Common Securities as provided in Section
      4.3.

     

    SECTION
      9.5.  Mergers,
      Consolidations, Amalgamations or Replacements of Trust.

     

    The
      Trust
      may not merge with or into, consolidate, amalgamate, or be replaced by, or
      convey, transfer or lease its properties and assets substantially as an entirety
      to, any Person except pursuant to this Article
      IX.
      At the
      request of the Holders of the Common Securities, without the consent of the
      Holders of the Preferred Securities, the Trust may merge with or into,
      consolidate, amalgamate, or be replaced by or convey, transfer or lease its
      properties and assets substantially as an entirety to a trust organized as
      such
      under the laws of any State; provided, that:

     

    (a)  such
      successor entity either (i) expressly assumes all of the obligations of the
      Trust under this Trust Agreement with respect to the Preferred Securities or
      (ii) substitutes for the Preferred Securities other securities having
      substantially the same terms as the Preferred Securities (such other Securities,
      the “Successor Securities”) so long as the Successor Securities have the same
      priority as the Preferred Securities with respect to distributions and payments
      upon liquidation, redemption and otherwise;

     

    
      
        
        

      

      
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    (b)  a
      trustee
      of such successor entity possessing substantially the same powers and duties
      as
      the Property Trustee is appointed to hold the Notes;

     

    (c)  if
      the
      Preferred Securities or the Notes are rated, such merger, consolidation,
      amalgamation, replacement, conveyance, transfer or lease does not cause the
      Preferred Securities or the Notes (including any Successor Securities) to be
      downgraded by any nationally recognized statistical rating organization that
      then assigns a rating to the Preferred Securities or the Notes;

     

    (d)  the
      Preferred Securities are listed, or any Successor Securities will be listed
      upon
      notice of issuance, on any national securities exchange or interdealer quotation
      system on which the Preferred Securities are then listed, if any;

     

    (e)  such
      merger, consolidation, amalgamation, replacement, conveyance, transfer or lease
      does not adversely affect the rights, preferences and privileges of the Holders
      of the Preferred Securities (including any Successor Securities) in any material
      respect;

     

    (f)  such
      successor entity has a purpose substantially identical to that of the
      Trust;

     

    (g)  prior
      to
      such merger, consolidation, amalgamation, replacement, conveyance, transfer
      or
      lease, the Depositor has received an Opinion of Counsel to the effect that
      (i)
      such merger, consolidation, amalgamation, replacement, conveyance, transfer
      or
      lease does not adversely affect the rights, preferences and privileges of the
      Holders of the Preferred Securities (including any Successor Securities) in
      any
      material respect; (ii) following such merger, consolidation, amalgamation,
      replacement, conveyance, transfer or lease, neither the Trust nor such successor
      entity will be required to register as an “investment company” under the
      Investment Company Act and (iii) following such merger, consolidation,
      amalgamation, replacement, conveyance, transfer or lease, the Trust (or the
      successor entity) will continue to be classified as a grantor trust for U.S.
      federal income tax purposes; and

     

    (h)  the
      Depositor or its permitted transferee owns all of the common securities of
      such
      successor entity and guarantees the obligations of such successor entity under
      the Successor Securities at least to the extent provided by the
      Indenture.

     

    Notwithstanding
      the foregoing, the Trust shall not, except with the consent of Holders of all
      of
      the Preferred Securities, consolidate, amalgamate, merge with or into, or be
      replaced by or convey, transfer or lease its properties and assets substantially
      as an entirety to any other Person or permit any other entity to consolidate,
      amalgamate, merge with or into, or replace, the Trust if such consolidation,
      amalgamation, merger, replacement, conveyance, transfer or lease would cause
      the
      Trust or the successor entity to be taxable as a corporation or classified
      as
      other than a grantor trust for United States federal income tax purposes or
      cause the Notes to be treated as other than indebtedness of the Depositor for
      United States federal income tax purposes.

     

    
      
        
        

      

      
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    ARTICLE
      X.

     

    INFORMATION
      TO PURCHASER

     

    SECTION
      10.1.  Depositor
      Obligations to Purchaser.

     

    Notwithstanding
      any other provision herein, the Depositor and the Guarantor shall furnish to
      (a)
      the Purchaser, (b) any Owner of the Preferred Securities reasonably identified
      to the Depositor, the Guarantor, or the Trust (which identification may be
      made
      either by such Owner or by the Purchaser) and (c) any designee of (a) or (b)
      above, copies of all correspondence, notices, forms, filings, reports and other
      documents required to be provided by the Depositor or the Guarantor, whether
      acting through an Administrative Trustee or otherwise, to the Property Trustee
      or Delaware Trustee under this Trust Agreement.

     

    SECTION
      10.2.  Property
      Trustee’s Obligations to Purchaser.

     

    Notwithstanding
      any other provision herein, the Property Trustee shall furnish to the Purchaser,
      and any a designee thereof as identified in writing to the Property Trustee,
      copies of all (i) correspondence, notices, forms, filings, reports and other
      documents received by the Property Trustee or Delaware Trustee from the
      Depositor, whether acting through an Administrative Trustee or otherwise, under
      this Trust Agreement, and (ii) all correspondence, notices, forms, filings,
      reports and other documents required to be provided to the Depositor or a Holder
      by the Property Trustee or Delaware Trustee under this Trust
      Agreement.

     

    

     

    ARTICLE
      XI.

     

    MISCELLANEOUS
      PROVISIONS

     

    SECTION
      11.1.  Limitation
      of Rights of Holders.

     

    Except
      as
      set forth in Section
      9.2,
      the
      death, bankruptcy, termination, dissolution or incapacity of any Person having
      an interest, beneficial or otherwise, in Trust Securities shall not operate
      to
      terminate this Trust Agreement, nor annul, dissolve or terminate the Trust
      nor
      entitle the legal representatives or heirs of such Person or any Holder for
      such
      Person, to claim an accounting, take any action or bring any proceeding in
      any
      court for a partition or winding up of the arrangements contemplated hereby,
      nor
      otherwise affect the rights, obligations and liabilities of the parties hereto
      or any of them.

     

    SECTION
      11.2.  Agreed
      Tax Treatment of Trust and Trust Securities.

     

    The
      parties hereto and, by its acceptance or acquisition of a Trust Security or
      a
      beneficial interest therein, the Holder of, and any Person that acquires a
      beneficial interest in, such Trust Security intend and agree to treat the Trust
      as a grantor trust for United States federal, state and local tax purposes,
      and
      to treat the Trust Securities (including all payments and proceeds with respect
      to such Trust Securities) as undivided beneficial ownership interests in the
      Trust Property (and payments and proceeds therefrom, respectively) for United
      States federal, state and local tax purposes and to treat the Notes as
      indebtedness of the Depositor for United States federal, state and local tax
      purposes. The provisions of this Trust Agreement shall be interpreted to further
      this intention and agreement of the parties.

     

    
      
        
        

      

      
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    SECTION
      11.3.  Amendment.

     

    (a)  This
      Trust Agreement may be amended from time to time by the Property Trustee, the
      Administrative Trustees and the Holder of all the Common Securities, without
      the
      consent of any Holder of the Preferred Securities, (i) to cure any ambiguity,
      correct or supplement any provision herein that may be defective or inconsistent
      with any other provision herein, or to make or amend any other provisions with
      respect to matters or questions arising under this Trust Agreement, which shall
      not be inconsistent with the other provisions of this Trust Agreement, (ii)
      to
      modify, eliminate or add to any provisions of this Trust Agreement to such
      extent as shall be necessary to ensure that the Trust will neither be taxable
      as
      a corporation nor be classified as other than a grantor trust for United States
      federal income tax purposes at all times that any Trust Securities are
      Outstanding or to ensure that the Notes are treated as indebtedness of the
      Depositor for United States federal income tax purposes, or to ensure that
      the
      Trust will not be required to register as an “investment company” under the
      Investment Company Act or (iii) to add to the covenants, restrictions or
      obligations of the Depositor; provided, that in the case of clauses (i), (ii)
      or
      (iii), such action shall not adversely affect in any material respect the
      interests of any Holder.

     

    (b)  Except
      as
      provided in Section
      11.3(c),
      any
      provision of this Trust Agreement may be amended by the Property Trustee, the
      Administrative Trustees and the Holder of all of the Common Securities and
      with
      (i) the consent of Holders of at least a Majority in Liquidation Amount of
      the
      Preferred Securities and (ii) receipt by the Trustees of an Opinion of Counsel
      to the effect that such amendment or the exercise of any power granted to the
      Trustees in accordance with such amendment will not cause the Trust to be
      taxable as a corporation or classified as other than a grantor trust for United
      States federal income tax purposes or affect the treatment of the Notes as
      indebtedness of the Depositor for United States federal income tax purposes
      or
      affect the Trust’s exemption from status (or from any requirement to register)
      as an “investment company” under the Investment Company Act.

     

    (c)  Notwithstanding
      any other provision of this Trust Agreement, without the consent of each Holder,
      this Trust Agreement may not be amended to (i) change the accrual rate, amount,
      currency or timing of any Distribution on or the redemption price of the Trust
      Securities or otherwise adversely affect the amount of any Distribution or
      other
      payment required to be made in respect of the Trust Securities as of a specified
      date, (ii) restrict or impair the right of a Holder to institute suit for the
      enforcement of any such payment on or after such date, (iii) reduce the
      percentage of aggregate Liquidation Amount of Outstanding Preferred Securities,
      the consent of whose Holders is required for any such amendment, or the consent
      of whose Holders is required for any waiver of compliance with any provision
      of
      this Trust Agreement or of defaults hereunder and their consequences provided
      for in this Trust Agreement; (iv) impair or adversely affect the rights and
      interests of the Holders in the Trust Property, or permit the creation of any
      Lien on any portion of the Trust Property; or (v) modify the definition of
      “Outstanding,” this Section
      11.3(c),
      Sections
      4.1,
      4.2,
      4.3,
      6.10(e)
      or
Article
      IX.

     

    
      
        
        

      

      
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    (d)  Notwithstanding
      any other provision of this Trust Agreement, no Trustee shall enter into or
      consent to any amendment to this Trust Agreement that would cause the Trust
      to
      be taxable as a corporation or to be classified as other than a grantor trust
      for United States federal income tax purposes or that would cause the Notes
      to
      fail or cease to be treated as indebtedness of the Depositor for United States
      federal income tax purposes or that would cause the Trust to fail or cease
      to
      qualify for the exemption from status (or from any requirement to register)
      as
      an “investment company” under the Investment Company Act.

     

    (e)  If
      any
      amendment to this Trust Agreement is made, the Administrative Trustees or the
      Property Trustee shall promptly provide to the Depositor and the Note Trustee
      a
      copy of such amendment.

     

    (f)  No
      Trustee shall be required to enter into any amendment to this Trust Agreement
      that affects its own rights, duties or immunities under this Trust Agreement.
      The Trustees shall be entitled to receive an Opinion of Counsel and an Officer’s
      Certificate stating that any amendment to this Trust Agreement is in compliance
      with this Trust Agreement and all conditions precedent herein provided for
      relating to such action have been met.

     

    (g)  No
      amendment or modification to this Trust Agreement that adversely affects in
      any
      material respect the rights, duties, liabilities, indemnities or immunities
      of
      the Delaware Trustee hereunder shall be permitted without the prior written
      consent of the Delaware Trustee.

     

    SECTION
      11.4.  Separability.

     

    If
      any
      provision in this Trust Agreement or in the Securities Certificates shall be
      invalid, illegal or unenforceable, the validity, legality and enforceability
      of
      the remaining provisions shall not in any way be affected or impaired thereby,
      and there shall be deemed substituted for the provision at issue a valid, legal
      and enforceable provision as similar as possible to the provision at
      issue.

     

    SECTION
      11.5.  Governing
      Law.

     

    THIS
      TRUST AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF EACH OF THE HOLDERS, THE
      TRUST, THE DEPOSITOR, THE GUARANTOR AND THE TRUSTEES WITH RESPECT TO THIS TRUST
      AGREEMENT AND THE TRUST SECURITIES SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE
      WITH AND GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO
      ITS
      CONFLICTS OF LAWS PROVISIONS.

     

    SECTION
      11.6.  Successors.

     

    This
      Trust Agreement shall be binding upon and shall inure to the benefit of any
      successor to the Depositor, the Guarantor, the Trust and any Trustee, including
      any successor by operation of law. Except in connection with a transaction
      involving the Depositor that is permitted under Article
      VIII
      of the
      Indenture and pursuant to which the assignee agrees in writing to perform the
      Depositor’s obligations hereunder, the Depositor shall not assign its
      obligations hereunder.

     

    
      
        
        

      

      
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    SECTION
      11.7.  Headings.

     

    The
      Article and Section headings are for convenience only and shall not affect
      the
      construction of this Trust Agreement.

     

    SECTION
      11.8.  Reports,
      Notices and Demands.

     

    (a)  Any
      report, notice, demand or other communication that by any provision of this
      Trust Agreement is required or permitted to be given or served to or upon any
      Holder, the Depositor or the Guarantor may be given or served in writing
      delivered in person, or by reputable, overnight courier, by telecopy or by
      deposit thereof, first-class postage prepaid, in the United States mail,
      addressed, (a) in the case of a Holder of Preferred Securities, to such Holder
      as such Holder’s name and address may appear on the Securities Register; (b) in
      the case of the Holder of all the Common Securities or the Depositor, to
      NorthStar Realty Finance Limited Partnership c/o NorthStar Realty Finance Corp.,
      527 Madison Avenue, New York, NY 10022, Attention: Chief Financial Officer,
      or
      to such other address as may be specified in a written notice by the Holder
      of
      all the Common Securities or the Depositor, as the case may be, to the Property
      Trustee; and (c) in the case of the Guarantor, to NorthStar Realty Finance
      Corp., 527 Madison Avenue, New York, NY 10022, Attention: Chief Financial
      Officer, or to such other address as may be specified in a written notice by
      the
      Guarantor to the Property Trustee. Such report, notice, demand or other
      communication to or upon a Holder, the Depositor or the Guarantor shall be
      deemed to have been given when received in person, within one (1) Business
      Day
      following delivery by overnight courier, when telecopied with receipt confirmed,
      or within three (3) Business Days following delivery by mail, except that if
      a
      notice or other document is refused delivery or cannot be delivered because
      of a
      changed address of which no notice was given, such notice or other document
      shall be deemed to have been delivered on the date of such refusal or inability
      to deliver.

     

    (b)  Any
      notice, demand or other communication that by any provision of this Trust
      Agreement is required or permitted to be given or served to or upon the Property
      Trustee, the Delaware Trustee, the Administrative Trustees or the Trust shall
      be
      given in writing by deposit thereof, first-class postage prepaid, in the U.S.
      mail, personal delivery or facsimile transmission, addressed to such Person
      as
      follows: (a) with respect to the Property Trustee and the Delaware Trustee
      to
      Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
      Wilmington, Delaware 19890-0001, Attention: Corporate Capital Markets, facsimile
      no. (302) 636-4140; (b) with respect to the Administrative Trustees, to them
      at
      the address above for notices to the Depositor, marked “Attention:
      Administrative Trustees of NorthStar Realty Finance Trust VI,” and (c) with
      respect to the Trust, to its principal executive office specified in
Section
      2.2,
      with a
      copy to the Property Trustee. Such notice, demand or other communication to
      or
      upon the Trust, the Property Trustee or the Administrative Trustees shall be
      deemed to have been sufficiently given or made only upon actual receipt of
      the
      writing by the Trust, the Property Trustee or the Administrative
      Trustees.

     

    SECTION
      11.9.  Agreement
      Not to Petition.

     

    Each
      of
      the Trustees and the Depositor agree for the benefit of the Holders that, until
      at least one year and one day after the Trust has been terminated in accordance
      with Article
      IX,
      they
      shall not file, or join in the filing of, a petition against the Trust under
      any
      Bankruptcy Law or otherwise join in the commencement of any proceeding against
      the Trust under any Bankruptcy Law. If the Depositor takes action in violation
      of this Section
      11.9,
      the
      Property Trustee agrees, for the benefit of Holders, that at the expense of
      the
      Depositor, it shall file an answer with the applicable bankruptcy court or
      otherwise properly contest the filing of such petition by the Depositor against
      the Trust or the commencement of such action and raise the defense that the
      Depositor has agreed in writing not to take such action and should be estopped
      and precluded therefrom and such other defenses, if any, as counsel for the
      Property Trustee or the Trust may assert.

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

    This
      instrument may be executed in any number of counterparts, each of which so
      executed shall be deemed to be an original, but all such counterparts shall
      together constitute but one and the same instrument. Delivery of an executed
      signature page of this instrument my facsimile transmission shall be effective
      as delivery of a manually executed counterpart hereof.

     

    [REMAINDER
      OF THIS PAGE INTENTIONALLY LEFT BLANK]

     

    

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

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

     

    
      	 	
              NorthStar
                Realty Finance Limited Partnership,

              as
                Depositor

               

              By:
                NorthStar Realty Finance Corp., its 

              General
                Partner

               

               

              By:
                /s/
                Albert
                Tylis                 
                

              Albert
                Tylis

              General
                Counsel and Assistant Secretary 

            
	 	 
	 	
              NorthStar
                Realty Finance Corp.,

              as
                Guarantor

               

               

              By:
                /s/ Albert
                Tylis                 
                

              Albert
                Tylis

              General
                Counsel and Assistant Secretary 

            
	 	 
	
              Wilmington
                Trust Company, as Property Trustee

               

               

              By:
                /s/ W. Thomas Morris,
                II                 
                

              W.
                Thomas Morris, II

              Assistant
                Vice President 

            	
              Wilmington
                Trust Company, as Delaware Trustee

               

               

              By:
                /s/
                W. Thomas Morris, II 
                               
                

              W.
                Thomas Morris, II

              Assistant
                Vice President: 

            
	
               

               

               

              /s/
                David
                Hamamoto                            
                

              Administrative
                Trustee

              David
                Hamamoto

            	
               

               

               

              /s/
                Andrew
                Richardson                                
                

              Administrative
                Trustee

              Andrew
                Richardson

            
	
               

               

               

               

              /s/
                Richard
                McCready                             
                

              Administrative
                Trustee

              Richard
                McCready

            	 

    

    

    
      
        
        

      

      
        60REVOLVING
      CREDIT AGREEMENT

     

     

    dated
      as
      of November 3, 2006

     

     

    among

     

    NORTHSTAR
      REALTY FINANCE CORP.,

    NORTHSTAR
      REALTY FINANCE LIMITED PARTNERSHIP, 

    NRFC
      SUB-REIT CORP.

    AND

    NS
      ADVISORS, LLC,

    as
      Borrowers,

     

     

    THE
      LENDERS FROM TIME TO TIME PARTY HERETO,

     

     

    KEYBANK
      NATIONAL ASSOCIATION,

    as
      Administrative Agent,

     

    

    KEYBANC
      CAPITAL MARKETS,

    and
      

    BANK
      OF
      AMERICA, N.A.,

    as
      Co-Lead Arrangers, 

    

    

    KEYBANC
      CAPITAL MARKETS,

    as
      Sole
      Book Manager,

     

     

    BANK
      OF
      AMERICA, N.A., 

    as
      Syndication Agent, 

     

    and
      

     

    CITICORP
      NORTH AMERICA, INC. 

    as
      Documentation Agent 

     

    
      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF
      CONTENTS

     

    
      	 	
              Page

            
	 	 	 
	
              ARTICLE
                I DEFINITIONS

            	
              1

            	 
	
              Section
                1.1

            	
              Definitions.

            	
              1

            	 
	
              Section
                1.2

            	
              Accounting
                Terms and Determinations

            	
              23

            	 
	
              Section
                1.3

            	
              Types
                of Borrowings

            	
              23

            	 
	
              ARTICLE
                II THE Commitments

            	
              23

            	 
	
              Section
                2.1

            	
              Commitments
                to Lend

            	
              23

            	 
	
              Section
                2.2

            	
              Notice
                of Committed Borrowing

            	
              24

            	 
	
              Section
                2.3

            	
              Notice
                to Lenders; Funding of Loans.

            	
              25

            	 
	
              Section
                2.4

            	
              Notes.

            	
              27

            	 
	
              Section
                2.5

            	
              Letters
                of Credit

            	
              27

            	 
	
              Section
                2.6

            	
              Method
                of Electing Interest Rates.

            	
              30

            	 
	
              Section
                2.7

            	
              Interest
                Rates.

            	
              31

            	 
	
              Section
                2.8

            	
              Fees.

            	
              32

            	 
	
              Section
                2.9

            	
              Maturity
                Date

            	
              33

            	 
	
              Section
                2.10

            	
              Mandatory
                Prepayment.

            	
              33

            	 
	
              Section
                2.11

            	
              Optional
                Prepayments.

            	
              34

            	 
	
              Section
                2.12

            	
              General
                Provisions as to Payments.

            	
              35

            	 
	
              Section
                2.13

            	
              Funding
                Losses

            	
              36

            	 
	
              Section
                2.14

            	
              Computation
                of Interest and Fees

            	
              36

            	 
	
              Section
                2.15

            	
              Use
                of Proceeds

            	
              36

            	 
	
              Section
                2.16

            	
              Letter
                of Credit Usage Absolute

            	
              36

            	 
	
              Section
                2.17

            	
              Joint
                and Several Obligations; Limitation on Liability.

            	
              37

            	 
	
              Section
                2.18

            	
              Increase
                in Facility Amount.

            	
              39

            	 
	
              Section
                2.19

            	
              Revolving
                Facility

            	
              41

            	 
	
              Section
                2.20

            	
              Delinquent
                Lenders.

            	
              41

            	 
	
              ARTICLE
                III CONDITIONS

            	
              42

            	 
	
              Section
                3.1

            	
              Closing

            	
              42

            	 
	
              Section
                3.2

            	
              Borrowings

            	
              45

            	 
	
              ARTICLE
                IV REPRESENTATIONS AND WARRANTIES

            	
              46

            	 
	
              Section
                4.1

            	
              Existence
                and Power

            	
              46

            	 
	
              Section
                4.2

            	
              Power
                and Authority

            	
              47

            	 
	
              Section
                4.3

            	
              No
                Violation

            	
              47

            	 
	
              Section
                4.4

            	
              Financial
                Information

            	
              47

            	 
	
              Section
                4.5

            	
              Litigation

            	
              48

            	 
	
              Section
                4.6

            	
              Compliance
                with ERISA.

            	
              48

            	 
	
              Section
                4.7

            	
              Borrowing
                Base Assets

            	
              48

            	 
	
              Section
                4.8

            	
              Environmental
                Matters

            	
              49

            	 
	
              Section
                4.9

            	
              Taxes

            	
              49

            	 
	
              Section
                4.10

            	
              Full
                Disclosure

            	
              49

            	 
	
              Section
                4.11

            	
              Solvency

            	
              49

            	 
	
              Section
                4.12

            	
              Use
                of Proceeds; Margin Regulations

            	
              50

            	 
	
              Section
                4.13

            	
              Governmental
                Approvals

            	
              50

            	 

    

     

    
      
        
        

      

      
        -i-

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
                4.14

            	
              Investment
                Company Act

            	
              50

            	 
	
              Section
                4.15

            	
              Principal
                Offices

            	
              50

            	 
	
              Section
                4.16

            	
              REIT
                Status

            	
              50

            	 
	
              Section
                4.17

            	
              Qualified
                REIT Subsidiary Status

            	
              50

            	 
	
              Section
                4.18

            	
              Patents,
                Trademarks, etc.

            	
              50

            	 
	
              Section
                4.19

            	
              No
                Default

            	
              50

            	 
	
              Section
                4.20

            	
              Licenses,
                etc.

            	
              51

            	 
	
              Section
                4.21

            	
              Compliance
                With Law

            	
              51

            	 
	
              Section
                4.22

            	
              No
                Burdensome Restrictions

            	
              51

            	 
	
              Section
                4.23

            	
              Brokers’
                Fees

            	
              51

            	 
	
              Section
                4.24

            	
              Labor
                Matters

            	
              51

            	 
	
              Section
                4.25

            	
              Insurance

            	
              51

            	 
	
              Section
                4.26

            	
              Organizational
                Documents

            	
              51

            	 
	
              ARTICLE
                V AFFIRMATIVE AND NEGATIVE COVENANTS

            	
              52

            	 
	
              Section
                5.1

            	
              Information

            	
              52

            	 
	
              Section
                5.2

            	
              Payment
                of Obligations

            	
              54

            	 
	
              Section
                5.3

            	
              Maintenance
                of Property

            	
              54

            	 
	
              Section
                5.4

            	
              Conduct
                of Business and Maintenance of Existence

            	
              54

            	 
	
              Section
                5.5

            	
              Compliance
                with Laws

            	
              55

            	 
	
              Section
                5.6

            	
              Inspection
                of Books and Records

            	
              55

            	 
	
              Section
                5.7

            	
              Existence

            	
              55

            	 
	
              Section
                5.8

            	
              Financial
                Covenants

            	
              55

            	 
	
              Section
                5.9

            	
              Restriction
                on Fundamental Changes.

            	
              56

            	 
	
              Section
                5.10

            	
              [Reserved]

            	
              57

            	 
	
              Section
                5.11

            	
              Margin
                Stock

            	
              57

            	 
	
              Section
                5.12

            	
              NorthStar,
                NorthStar OP and NRFC Sub-REIT Status

            	
              57

            	 
	
              Section
                5.13

            	
              Disposition
                of Borrowing Base Assets

            	
              57

            	 
	
              Section
                5.14

            	
              Liens;
                Release of Liens

            	
              58

            	 
	
              Section
                5.15

            	
              Business
                Loans

            	
              58

            	 
	
              Section
                5.16

            	
              Limitation
                on Changes in Fiscal Year; Accounting Methods; Valuation
                Methodology.

            	
              58

            	 
	
              Section
                5.17

            	
              Ownership
                of Borrowing Base Assets

            	
              58

            	 
	
              Section
                5.18

            	
              Limitation
                on Negative Pledge Clauses, Distribution Restrictions

            	
              58

            	 
	
              Section
                5.19

            	
              Addition
                of Borrowing Base Assets.

            	
              58

            	 
	
              Section
                5.20

            	
              Failure
                of Certain Borrowing Base Assets Representations and
                Warranties.

            	
              60

            	 
	
              Section
                5.21

            	
              Limitation
                on Transactions with Affiliates

            	
              60

            	 
	
              Section
                5.22

            	
              CDO
                Subsidiaries

            	
              60

            	 
	
              Section
                5.23

            	
              Guaranties

            	
              61

            	 
	
              Section
                5.24

            	
              Subsidiary
                Guarantors

            	
              61

            	 
	
              Section
                5.25

            	
              Release
                of Certain Subsidiary Guarantors

            	
              62

            	 
	
              ARTICLE
                VI DEFAULTS

            	
              62

            	 
	
              Section
                6.1

            	
              Events
                of Default

            	
              62

            	 
	
              Section
                6.2

            	
              Rights
                and Remedies.

            	
              65

            	 
	
              Section
                6.3

            	
              Notice
                of Default

            	
              66

            	 
	
              Section
                6.4

            	
              Actions
                in Respect of Letters of Credit.

            	
              66

            	 
	
              ARTICLE
                VII THE AGENTS

            	
              67

            	 
	
              Section
                7.1

            	
              Appointment
                and Authorization

            	
              67

            	 

    

     

    
      
        
        

      

      
        -ii-

        
          

        

      

      
        
        

      

    

     

     

    
      	
              Section
                7.2

            	
              Agency
                and Affiliates.

            	
              68

            	 
	
              Section
                7.3

            	
              Action
                by Administrative Agent

            	
              68

            	 
	
              Section
                7.4

            	
              Consultation
                with Experts

            	
              68

            	 
	
              Section
                7.5

            	
              Liability
                of Administrative Agent

            	
              68

            	 
	
              Section
                7.6

            	
              Indemnification

            	
              68

            	 
	
              Section
                7.7

            	
              Credit
                Decision

            	
              69

            	 
	
              Section
                7.8

            	
              Successor
                Administrative Agent

            	
              69

            	 
	
              Section
                7.9

            	
              Receipt
                of Notices

            	
              69

            	 
	
              ARTICLE
                VIII CHANGE IN CIRCUMSTANCES

            	
              69

            	 
	
              Section
                8.1

            	
              Basis
                for Determining Interest Rate Inadequate or Unfair

            	
              69

            	 
	
              Section
                8.2

            	
              Illegality

            	
              70

            	 
	
              Section
                8.3

            	
              Increased
                Cost and Reduced Return.

            	
              71

            	 
	
              Section
                8.4

            	
              Taxes.

            	
              72

            	 
	
              Section
                8.5

            	
              Alternate
                Base Rate Loans Substituted for Affected LIBOR Loans

            	
              74

            	 
	
              ARTICLE
                IX MISCELLANEOUS

            	
              74

            	 
	
              Section
                9.1

            	
              Notices

            	
              74

            	 
	
              Section
                9.2

            	
              No
                Waivers

            	
              75

            	 
	
              Section
                9.3

            	
              Expenses;
                Indemnification.

            	
              75

            	 
	
              Section
                9.4

            	
              Sharing
                of Set-Offs

            	
              76

            	 
	
              Section
                9.5

            	
              Amendments
                and Waivers.

            	
              77

            	 
	
              Section
                9.6

            	
              Successors
                and Assigns.

            	
              77

            	 
	
              Section
                9.7

            	
              Collateral

            	
              79

            	 
	
              Section
                9.8

            	
              Governing
                Law; Submission to Jurisdiction

            	
              79

            	 
	
              Section
                9.9

            	
              Marshalling;
                Recapture

            	
              79

            	 
	
              Section
                9.10

            	
              Counterparts;
                Integration; Effectiveness

            	
              80

            	 
	
              Section
                9.11

            	
              WAIVER
                OF JURY TRIAL

            	
              80

            	 
	
              Section
                9.12

            	
              Survival

            	
              80

            	 
	
              Section
                9.13

            	
              Domicile
                of Loans

            	
              80

            	 
	
              Section
                9.14

            	
              Limitation
                of Liability

            	
              80

            	 
	
              Section
                9.15

            	
              Recourse
                Obligation

            	
              80

            	 
	
              Section
                9.16

            	
              Confidentiality

            	
              80

            	 
	
              Section
                9.17

            	
              Legal
                Rate

            	
              81

            	 
	
              Section
                9.18

            	
              USA
                Patriot Act Notice

            	
              81

            	 
	
               

            	
               

            	
               

            	 

    

     

    
      
        
        

      

      
        -iii-

        
          

        

      

      
        
        

      

    

     

     

    
      	
              EXHIBITS

            	
               

            
	
              Exhibit
                A

            	
              -

            	
              Form
                of Note

            
	
              Exhibit
                B

            	
              -

            	
              Form
                of Assignment and Assumption Agreement

            
	
              Exhibit
                C

            	
              -

            	
              Initial
                Borrowing Base Assets

            
	
              Exhibit
                D

            	
              -

            	
              Form
                of Borrowing Base Certificate

            
	
              Exhibit
                E

            	
              -

            	
              Form
                of Continuing Compliance Certificate

            
	
              Exhibit
                F

            	
              -

            	
              First
                Mortgage Asset Representations and Warranties

            
	
              Exhibit
                G

            	
              -

            	
              Real
                Property Asset Representations and Warranties

            
	
              Exhibit
                H

            	
              -

            	
              Real
                Estate Security Asset Representations and Warranties

            
	
              Exhibit
                I

            	
              -

            	
              Subordinate
                Assets Representations and Warranties

            
	
              Exhibit
                J

            	
              -

            	
              CDO
                Retained Asset Representations and
                Warranties

            

    

     

    
      	
              SCHEDULES

            	
               

            
	
              Schedule
                1.1

            	
              TruPS
                Securities 

            
	
              Schedule
                4.4(c)

            	
              Post-June
                30, 2006 Material Indebtedness and Contingent
                Obligations

            

    

     

     

    
      
        
        

      

      
        -iv-

        
          

        

      

      
        
        

      

    

    REVOLVING
      CREDIT AGREEMENT

     

    THIS
      REVOLVING CREDIT AGREEMENT (this “Agreement”)
      is
      dated as of November 3, 2006 among NORTHSTAR REALTY FINANCE CORP., a Maryland
      corporation (“NorthStar”),
      NORTHSTAR REALTY FINANCE LIMITED PARTNERSHIP, a Delaware limited partnership
      (“NorthStar
      OP”),
      NRFC
      SUB-REIT CORP., a Maryland corporation (“NRFC
      Sub-REIT”),
      NS
      ADVISORS, LLC, a Delaware limited liability company (“NS
      Advisors”)
      (NorthStar, NorthStar OP, NRFC Sub-REIT and NS Advisors are hereinafter referred
      to individually as a “Borrower”
and
      collectively as the “Borrowers”),
      the
      Lenders (as defined herein), KEYBANK NATIONAL ASSOCIATION, as Administrative
      Agent, KEYBANC CAPITAL MARKETS and BANK OF AMERICA, N.A, as Co-Lead Arrangers,
      KEYBANC CAPITAL MARKETS, as Sole Book Manager, BANK OF AMERICA, N.A, as
      Syndication Agent and CITICORP NORTH AMERICA, INC., as Documentation
      Agent.

    

    RECITALS

     

    1. The
      Borrowers have requested that the Lenders establish a revolving credit facility
      for the Borrowers for the purposes of refinancing certain existing indebtedness,
      financing the acquisition by the Borrowers of real estate and finance assets
      and
      for other business purposes of the Borrowers.

     

    2. The
      Borrowers have requested that the Lenders set forth the terms and conditions
      upon which the Lenders will provide financing to the Borrowers.

     

    3. The
      Lenders have agreed to provide that financing to Borrowers on, and subject
      to,
      the terms and conditions of, this Agreement. 

     

    NOW,
      THEREFORE, for good and valuable consideration, the receipt and sufficiency
      of
      which are hereby acknowledged, the parties hereto agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    Section
      1.1 Definitions.
      The
      following terms, as used herein, have the following meanings:

     

    “Adjusted
      London Interbank Offered Rate”
has
      the
      meaning set forth in Section 2.7(c).

     

    “Administrative
      Agent”
shall
      mean KeyBank National Association in its capacity as Administrative Agent
      hereunder, and its permitted successors in such capacity in accordance with
      the
      terms of this Agreement.

     

    “Administrative
      Questionnaire”
means,
      with respect to each Lender, an administrative questionnaire in the form
      prepared by the Administrative Agent and submitted to the Administrative Agent
      (with a copy to the Borrowers) duly completed by such Lender.

     

    “Affiliate”
means,
      as to any Person, any other Person (other than a Subsidiary) which, directly
      or
      indirectly, is in control of, is controlled by, or is under common control
      with,
      such Person. For purposes of this definition, “control”
of
      a
      Person (including, with its correlative meanings, “controlled
      by”
and
      “under
      common control with”)
      means
      the power, directly or indirectly, either to (a) vote 33 1/3% or more of the
      securities having ordinary voting power for the election of directors of such
      Person or (b) direct or cause the direction of the management and policies
      of
      such Person, whether by contract or otherwise. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Adjusted
      Funds from Operations”
means
      Funds From Operations minus (or plus) (i) normalized recurring capitalized
      expenditures necessary to maintain properties (e.g. leasing commissions, and
      tenant improvement allowances), (ii) an adjustment to reverse the effect of
      Straight-Lining of Rents and fair value of lease revenue under SFAS 141, (iii)
      the amortization or accrual of various deferred costs including intangible
      assets and equity based compensation, (iv) non-recurring charges incurred in
      connection with the early extinguishment of debt, (v) an adjustment to reverse
      “mark-to-market” gains and losses related to interest rate changes on off
      balance sheet warehouse facilities, and (vi) such other adjustments approved
      by
      the Administrative Agent.

     

    “Agreement”
shall
      mean this Revolving Credit Agreement as the same may from time to time hereafter
      be modified, supplemented or amended.

     

    “Alternate
      Base Rate”
means,
      for any day, a rate per annum equal to the greater of (i) the Prime Rate or
      (ii)
      the Federal Funds Rate plus one-half percent (0.5%). 

     

    “Alternate
      Base Rate Loan”
means
      a
      Committed Loan to be made by a Lender as an Alternate Base Rate Loan in
      accordance with the applicable Notice of Committed Borrowing or pursuant to
      Article II.

     

    “Applicable
      Lending Office”
means,
      with respect to any Lender, (i) in the case of its Alternate Base Rate Loans,
      its Domestic Lending Office, and (ii) in the case of its LIBOR Loans, its LIBOR
      Lending Office.

     

    “Applicable
      Margin”
means,
      for any day, the rate per annum set forth below opposite the applicable Leverage
      Ratio then in effect.

     

    
      	
              Leverage
                Ratio (as calculated pursuant to the most-recently delivered officer’s
                certificate pursuant to Section 5.1(c) hereof)

            	
              Applicable
                Margin for LIBOR Loans and Letter of Credit Fees

            	
              Applicable
                Margin for Alternate Base Rate Loans

            
	
              >
                85%

            	
              2.50%

            	
              1.00%

            
	
              >
                75% to < 85%

            	
              2.25%

            	
              0.75%

            
	
              <
                75%

            	
              2.00%

            	
              0.50%

            

    

     

    The
      Applicable Margin shall be adjusted effective on the next Business Day following
      any change in the Leverage Ratio using the information provided in the
      most-recently delivered officer’s certificate pursuant to Section 5.1(c)
      hereof.

     

    Notwithstanding
      anything to the contrary contained in the foregoing, to the extent the Borrowers
      fail to deliver any officer’s certificate as of the date required pursuant to
      Section 5.1(c), the Applicable Margin as of the date immediately following
      such
      required date of delivery and until the delivery of such officer’s certificate
      shall be the greatest Applicable Margin specified in the foregoing
      chart.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    “Approval
      Request”
has
      the
      meaning set forth in Section 5.19(a).

     

    “Approval
      Request Package”
has
      the
      meaning set forth in Section 5.19(b).

     

    “Approved
      Uses”
has
      the
      meaning set forth in Section 2.15.

     

    “Approved
      Bank”
means
      a
      bank or other financial institution which has (i)(a) a minimum net worth of
      $500,000,000 and/or (b) total assets of $10,000,000,000, and (ii) a minimum
      long
      term debt rating of (a) BBB+ or higher by S&P, and (b) Baa1 or higher by
      Moody’s. 

     

    “Arranger”
means
      KeyBanc Capital Markets, in its capacity as Sole Lead Arranger of the
      Commitments and Sole Book Manager of the Commitments.

     

    “Asset
      Disposition”
means
      the disposition of any assets (including without limitation the Capital Stock
      of
      a Subsidiary) of any Consolidated Party whether by sale, lease (but excluding
      the lease of assets in the ordinary course of business), transfer or otherwise
      to a Person other than a Consolidated Party.

     

    “Assignee”
has
      the
      meaning set forth in Section 9.6(b).

     

    “Available
      Commitment”
means,
      with respect to each Lender, at any time, the amount obtained by multiplying
      such Lender’s Commitment at such time by a fraction, the numerator of which is
      the Total Available Commitments at such time, and the denominator of which
      is
      the aggregate of all Commitments at such time.

     

    “Bankruptcy
      Code”
means
      Title 11 of the United States Code, entitled “Bankruptcy”, as amended from time
      to time, and any successor statute or statutes.

     

    “Benefit
      Arrangement”
means
      at any time an employee benefit plan within the meaning of Section 3(3) of
      ERISA
      which is not a Plan or a Multiemployer Plan and which is maintained or otherwise
      contributed to by any member of the ERISA Group.

     

    “Book
      Value”
means
      as to any asset, the value of such asset determined in accordance with GAAP,
      as
      consistently applied in connection with the preparation of the financial
      statements filed by NorthStar with the Securities and Exchange
      Commission.

     

    “Borrowers”
means,
      collectively, NorthStar, NorthStar OP, NRFC Sub-REIT and NS Advisors , and
      “Borrower”
means
      any one of the foregoing.

     

    “Borrowing”
has
      the
      meaning set forth in Section 1.3.

     

    “Borrowing
      Base Assets”
means
      assets one hundred percent (100%) owned (legally and equitably) by a Borrowing
      Base Entity and which consist of Eligible CDO Retained Assets, Eligible First
      Mortgage Assets, Eligible Subordinated Assets, Eligible Property Equity
      Interests and Eligible Real Estate Securities.

     

    “Borrowing
      Base Assets Pool”
means,
      collectively at any time, all Borrowing Base Assets.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    “Borrowing
      Base Availability”
means,
      at any time of determination, an amount equal to the lesser of (i) the aggregate
      Borrowing Base Value of all Borrowing Base Assets in the Borrowing Base Assets
      Pool at such time and (ii) the aggregate amount that would cause the ratio
      of
      (i) the sum of (A) the aggregate recurring cash dividend and distribution income
      actually received from all Eligible CDO Equity Interests and Preferred
      Securities constituting Eligible Subordinated Assets during such period, (B)
      the
      aggregate recurring cash income (after debt service in respect of the related
      Real Property Asset, if applicable) actually received in respect of Eligible
      Property Equity Interests during such period, and (C) the aggregate recurring
      cash interest income actually received from all Eligible CDO Debt Assets,
      Eligible First Mortgage Assets, Eligible Subordinated Debt Assets and Eligible
      Real Estate Securities during such period, in each case calculated as of the
      end
      of each fiscal quarter on an annualized basis for the quarterly period then
      ended with respect to Borrowing Base Assets in the Borrowing Base Assets Pool
      as
      of the date of determination as reflected on the most recent Borrowing Base
      Certificate, to (ii) Facility Interest Expense for such period, to be not less
      than 2:00 to 1:00.

     

    “Borrowing
      Base Certificate”
has
      the
      meaning set forth in Section 2.2.

     

    “Borrowing
      Base Entity”
means
      a
      Subsidiary Guarantor, a Real Property Subsidiary or a CDO Subsidiary.

     

    “Borrowing
      Base Value”
means,
      as to any Borrowing Base Asset at any time of determination, the maximum
      aggregate amount of Loans and Letters of Credit which Borrowers shall be
      entitled to borrow, draw, or have issued or outstanding pursuant to the terms
      of
      this Agreement with respect to such Borrowing Base Asset, which shall be (i)
      with respect to any Eligible CDO Retained Asset, the lesser of (a) forty percent
      (40%) of the Eligible CDO Retained Asset Value of such asset, and (b) an amount
      equal to (1) the sum of (A) the recurring annual interest or dividend income
      of
      the Borrowers in respect of such Eligible CDO Retained Asset (determined by
      annualizing the interest or dividend income received by the Borrowers in respect
      of such Eligible CDO Retained Asset during the quarter most recently ended)
      and
      (B) the annual Senior Management Fees received by the Borrowers from such
      Eligible CDO Retained Asset (determined by annualizing the Senior Management
      Fees received by the Borrowers in respect of such Eligible CDO Retained Asset
      during the quarter most recently ended) divided
      by
      (2)
      three and one-half (3.5), and divided
      by
      (3) the
      average Facility Interest Rate during the quarter most recently ended, (ii)
      with
      respect to any Eligible First Mortgage Asset, the lesser of (a) eighty percent
      (80%) of the Underlying Real Estate Value on such date of the Underlying Asset
      securing such Eligible First Mortgage Asset, and (b) ninety percent (90%) of
      the
      lesser of (1) the outstanding principal amount of such Eligible First Mortgage
      Asset on such date and (2) the Book Value of such Eligible First Mortgage Asset
      on such date, (iii) with respect to any Eligible Subordinated Asset, the lesser
      of (a) eighty percent (80%) of (1) the Underlying Real Estate Value on such
      date
      of the Underlying Asset relating to such Eligible Subordinated Asset
minus
      (2) the
      aggregate outstanding principal amount on such date of any senior indebtedness
      encumbering the Underlying Asset relating to such Eligible Subordinated Asset
      and (b) sixty percent (60%) of the lesser of (1) the outstanding principal
      amount of such Eligible Subordinated Asset on such date and (2) the Book Value
      of such Eligible Subordinated Asset on such date, (iv) with respect to any
      Eligible Property Equity Interest, forty percent (40%) of the Net Equity Value
      on such date of such Eligible Property Equity Interest, (v) with respect to
      any
      Investment Grade Eligible Real Estate Security, eighty percent (80%) of the
      Fair
      Market Value of such Investment Grade Eligible Real Estate Security on such
      date, and (vi) with respect to any Eligible Real Estate Security that is not
      Investment Grade, sixty-five percent (65%) of the Fair Market Value of such
      non-Investment Grade Eligible Real Estate Security on such date.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    “Capitalization
      Rate”
means,
      as to any Real Property Assets or Underlying Assets that are at leased 95%
      leased to tenants (or such tenant’s parent) having an Investment Grade Credit
      Rating, seven percent (7.00%) per annum, and, as to all other Real Property
      Assets or Underlying Assets, nine percent (9.00%) per annum.

     

    “Capital
      Replacement Reserve”
means,
      with respect to any Real Property Asset or Underlying Asset, a normalized annual
      reserve for replacement reserves, capital expenditures, tenant improvements,
      and
      leasing commissions in the amount of $0.10 per year per square foot of net
      leaseable area contained in such Real Property Asset or Underlying Asset. When
      the Capital Replacement Reserve is used in computing an amount with respect
      to a
      period which is shorter than a year, said amount shall be appropriately
      prorated.

     

    “Capital
      Stock”
means,
      with respect to any Person, any capital stock (including preferred stock),
      shares, interests, participations or other ownership interests (however
      designated) of such Person and any rights (other than debt securities
      convertible into or exchangeable for corporate stock), warrants or options
      to
      purchase any thereof.

     

    “Cash
      and Cash Equivalents”
means
      (i) cash, (ii) direct obligations of the United States Government, including
      without limitation, treasury bills, notes and bonds, (iii) interest bearing
      or
      discounted obligations of Federal agencies and Government sponsored entities
      or
      pools of such instruments offered by Approved Banks and dealers, including
      without limitation, Federal Home Loan Mortgage Corporation participation sale
      certificates, Government National Mortgage Association modified pass through
      certificates, Federal National Mortgage Association bonds and notes, and Federal
      Farm Credit System securities, (iv) time deposits, Domestic and Eurodollar
      certificates of deposit, bankers’ acceptances, commercial paper rated at least
      A-2 by S&P and P-2 by Moody’s and/or guaranteed by a Person with an Aa3
      rating by Moody’s, an AA- rating by S&P or better rated credit, floating
      rate notes, other money market instruments each issued by an Approved Bank
      (provided that the same shall cease to be a “Cash or Cash Equivalent” if at any
      time any such bank shall cease to be an Approved Bank), (v) obligations of
      domestic corporations, including, without limitation, commercial paper, bonds,
      debentures and loan participations, each of which is rated at least AA- by
      S&P and/or Aa3 by Moody’s and/or guaranteed by a Person with an Aa3 rating
      by Moody’s and/or a AA- rating by S&P or better rated credit, (vi)
      obligations issued by states and local governments or their agencies, rated
      at
      least MIG-2 by Moody’s and/or SP-2 by S&P, (vii) repurchase agreements with
      major banks and primary government security dealers fully secured by the U.S.
      Government or agency collateral equal to or exceeding the principal amount
      on a
      daily basis and held in safekeeping, and (viii) real estate loan pool
      participations, guaranteed by a Person with an AA- rating given by S&P or
      Aa3 rating given by Moody’s or better rated credit.

     

    “CDO
      Debt Asset”
means
      with respect to any Eligible CDO, any and all performing debt obligations issued
      by such Eligible CDO and owned by a Borrowing Base Entity. 

    

    “CDO
      Equity Interest”
means
      with respect to any Eligible CDO, any and all shares, interests, participations
      or other equivalents (however designated) of capital stock of, and any and
      all
      equivalent ownership interests in, such Eligible CDO owned by a Borrowing Base
      Entity, including partnership interests and limited liability company membership
      interests.

    

    “CDO
      Retained Asset”
means
      a
      CDO Debt Asset or a CDO Equity Interest.

    

    “CDO
      Indenture”
means
      the indenture relating to any Eligible CDO Retained Asset.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    “CDO
      Subsidiary”
has
      the
      meaning set forth in Section 5.22. 

     

    “Charges”
has
      the
      meaning set forth in Section 9.17.

     

    “Closing
      Date”
means
      the date on or after the Effective Date on which the conditions set forth in
      Section 3.1 shall have been satisfied to the satisfaction of the Administrative
      Agent or waived by the Administrative Agent in its sole discretion.

     

    “Code”
means
      the Internal Revenue Code of 1986, as amended, and as it may be further amended
      from time to time, any successor statutes thereto, and applicable U.S.
      Department of Treasury regulations issued pursuant thereto in temporary or
      final
      form.

     

    “Commitment”
means,
      with respect to each Lender, the amount set forth opposite the name of such
      Lender on the signature pages hereof (and, for each Lender which is an Assignee,
      the amount set forth in the Assignment and Assumption Agreement entered into
      pursuant to Section 9.6(b) as the Assignee’s Commitment), as such amount may be
      reduced from time to time pursuant to Section 2.11(c) or in connection with
      an
      assignment to an Assignee, or increased pursuant to Section 2.18.

     

    “Commitment
      Fee Quarterly Period”
has
      the
      meaning set forth in Section 2.8(c).

     

    “Committed
      Loan”
means
      a
      loan made by a Lender pursuant to Section 2.1; provided
      that, if
      any such loan or loans (or portions thereof) are combined or subdivided pursuant
      to a Notice of Interest Rate Election, the term “Committed Loan” shall refer to
      the combined principal amount resulting from such combination or to each of
      the
      separate principal amounts resulting from such subdivision, as the case may
      be.

     

    “Consolidated
      Parties”
means,
      collectively, NorthStar and its Consolidated Subsidiaries. 

     

    “Consolidated
      Subsidiary”
means
      at any date any Subsidiary or other entity which is consolidated with NorthStar
      in accordance with GAAP or which is required under GAAP to be consolidated
      with
      NorthStar.

     

    “Consolidated
      Tangible Net Worth”
means,
      without duplication, at any date (a) the amounts included in “stockholders’
equity” on the balance sheet of the Consolidated Parties (including minority
      interests relating to NorthStar OP), less
      (b) the
      consolidated Intangible Assets of the Consolidated Parties (excluding FAS 141
      intangibles), all determined as of such date in accordance with GAAP. For
      purposes of this definition “Intangible
      Assets”
means
      goodwill, patents, trademarks, service marks, trade names, anticipated future
      benefit of tax loss carry forwards, copyrights, organization or developmental
      expenses and other intangible assets determined in accordance with
      GAAP.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    “Contingent
      Obligation”
means,
      as to any Person, without duplication, (i) any contingent obligation of such
      Person required to be shown on such Person’s balance sheet in accordance with
      GAAP, (ii) any obligation (including, without limitation, any Guarantee
      Obligation) required to be disclosed in the footnotes to such Person’s financial
      statements, guaranteeing partially or in whole any Non-Recourse Debt, lease,
      dividend or other obligation, exclusive of contractual indemnities (including,
      without limitation, any indemnity or price-adjustment provision relating to
      the
      purchase or sale of securities or other assets) and guarantees of non-monetary
      obligations which have not yet been called on or quantified, of such Person
      or
      of any other Person, and (iii) with respect to such Person’s forward commitments
      or obligations to fund or provide proceeds with respect to any loan or other
      financing which are obligatory and non-discretionary as of any date of
      determination, the aggregate amount of the reserves established for such
      commitments or obligations in accordance with Rating Agency requirements in
      respect of the three (3) month period following the date of determination.
      The
      Borrowers will promptly notify the Administrative Agent of the amounts initially
      established as, and any change from time to time in, the Rating Agency
      requirements in respect of the reserves referred to in the foregoing sentence.
      Notwithstanding the foregoing, “Contingent Liabilities” shall not include
      guarantees of customary carve-out matters made in connection with Indebtedness,
      such as fraud, misappropriation, bankruptcy, misapplication and environmental
      matters, unless a claim for payment or performance has been made thereunder
      (which has not been satisfied). The amount of any Contingent Obligation
      described in clause (ii) shall be deemed to be (a) with respect to a guarantee
      of interest or interest and principal, or operating income guarantee, the
      present value of the sum of all payments required to be made thereunder (which
      in the case of an operating income guarantee shall be deemed to be equal to
      the
      debt service for the note secured thereby), through (x) in the case of an
      interest or interest and principal guarantee, the stated date of maturity of
      the
      obligation (and commencing on the date interest could first be payable
      thereunder), or (y) in the case of an operating income guarantee, the date
      through which such guarantee will remain in effect, and (b) with respect to
      all
      guarantees not covered by the preceding clause (a), an amount equal to the
      stated or determinable amount of the primary obligation in respect of which
      such
      guarantee is made or, if not stated or determinable, the maximum reasonably
      anticipated liability in respect thereof (assuming such Person is required
      to
      perform thereunder) as recorded on the balance sheet and on the footnotes to
      the
      most recent financial statements of the Borrowers required to be delivered
      pursuant to Section 5.1 hereof.

     

    “Credit
      Rating”
means,
      with respect to any Person, the rating assigned by the Rating Agencies (one
      of
      which, in all instances, must be S&P or Moody’s or Fitch) to such Person’s
      long-term unsecured indebtedness.

     

    “Credit
      Underwriting Documents”
has
      the
      meaning set forth in Section 5.19(a). 

     

    “Default”
means
      any condition or event which with the giving of notice or lapse of time or
      both
      would, unless cured or waived, become an Event of Default.

     

    “Default
      Rate”
has
      the
      meaning set forth in Section 2.7(c).

     

    “Derivative
      Exposure”
means,
      as of any date, the aggregate maximum net liability (including costs, fees
      and
      expenses), based upon a liquidation or termination as of such date, of any
      Person under all interest rate swaps, collars, caps or other interest rate
      protection agreements, treasury locks, equity forward contracts, foreign
      currency exchange agreements, commodity purchase or option agreements or other
      interest or exchange rate or commodity price hedging agreements.

     

    “Distribution”
means
      with respect to any Person, the declaration or payment of any cash, cash flow,
      dividend or distribution (however payable, whether in cash, assets, capital
      stock or otherwise) on or in respect of any shares of any class of capital
      stock, partnership interest, membership interest or other beneficial interest
      of
      such Person; the purchase, redemption, exchange or other retirement of any
      shares of any class of capital stock, partnership interest, membership interest
      or other beneficial interest of such Person, directly or indirectly through
      a
      Subsidiary of such Person or otherwise; the return of capital by such Person
      to
      its shareholders, partners, members or other owners as such; or any other
      distribution on or in respect of any shares of any class of capital stock or
      other beneficial interest of such Person.

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    “Domestic
      Business Day”
means
      any day except a Saturday, Sunday or other day on which commercial banks in
      New
      York, New York are authorized or required by law to close.

    

    “Domestic
      Lending Office”
means,
      as to each Lender, its office located at its address in the United States set
      forth in its Administrative Questionnaire (or identified in its Administrative
      Questionnaire as its Domestic Lending Office) or such other office as such
      Lender may hereafter designate as its Domestic Lending Office by notice to
      the
      Borrowers and the Administrative Agent.

     

    “EBITDA”
means,
      for any period, the sum of, without duplication, (i) aggregate Net Income during
      such period calculated before the payment of Preferred Distributions,
plus
      (ii) an
      amount which, in the determination of Net Income for such period, has been
      deducted for (A) Interest Expense, (B) total federal, state, local and foreign
      income, value added and similar taxes and (C) depreciation and amortization
      expense, plus
      (iii)
      the minority interest attributable to NorthStar OP, plus
      (iii)
      losses from extraordinary items, non-recurring items, Asset Dispositions, or
      forgiveness of debt, plus
      (iv)
      compensation expense for equity or option based compensation minus
      (v)
      gains from extraordinary items, non-recurring items, Asset Dispositions,
      write-up of assets (including any loan accretion attributable to any asset),
      minus
      (v)
      interest income accrued but not actually received in cash, each of the above
      determined in accordance with GAAP and to the extent included in the calculation
      of Net Income and plus,
      (vi)
      interest income received in cash in such period to the extent such interest
      income had been subtracted from Net Income pursuant to the foregoing clause
      (v)
      with respect to any earlier period; provided, that such sum shall be exclusive
      of any adjustment for such period attributable to the Straight-Lining of Rents.
      

     

    “Effective
      Date”
means
      November 3, 2006.

     

    “Eligible
      Assignee”
means
      any Person that is: (a) a Lender; (b) an Affiliate of a Lender; (c) a commercial
      bank, trust company, savings and loan association savings bank, insurance
      company, investment bank or pension fund organized under the laws of the United
      States of America, any state thereof or the District of Columbia, and having
      total assets in excess of $5,000,000,000; or (d) a commercial bank organized
      under the laws of any other country which is a member of the Organization for
      Economic Co-operation and Development, or a political subdivision of any such
      country, and having total assets in excess of $10,000,000,000, provided
      that
      such bank is acting through a branch or agency located in the United States
      of
      America. No Borrower and no Affiliate of a Borrower shall qualify as an Eligible
      Assignee. Provided no Default or Event of Default has occurred and is
      continuing, no direct competitor of the Borrowers or any hedge fund principally
      engaged in the acquisition of “distressed” debt (each as determined by the
      Administrative Agent in its reasonable discretion) shall qualify as an Eligible
      Assignee.

     

    “Eligible
      CDO”
means
      a
      Special Purpose Entity, the common “ordinary” shares or limited liability
      company interests of which are wholly-owned by NorthStar or a Wholly-Owned
      Subsidiary of NorthStar and which is managed by NorthStar or a Wholly-Owned
      Subsidiary of NorthStar, that issues classes of securities representing rights
      to receive payments from assets held by such entity, the assets of which are
      (a)
      real estate securities or real estate-related debt obligations and/or (b) such
      other assets consistent with NorthStar’s current business
      practices.

    

    “Eligible
      CDO Debt Asset”
means
      a
      CDO Debt Asset that that at all times complies with the CDO Retained Asset
      Representations and Warranties set forth on Exhibit
      “J”
      attached
      hereto. 

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    “Eligible
      CDO Equity Interest”
means
      a
      CDO Equity Interest that at all times complies with the CDO Retained Asset
      Representations and Warranties set forth on Exhibit
      “J”
      attached
      hereto. 

    

    “Eligible
      CDO Retained Asset”
means
      any Eligible
      CDO Equity Interest and/or any Eligible CDO Debt Asset.

     

    “Eligible
      CDO Retained Asset Value”
means
      with respect to any Eligible CDO Retained Asset, an amount equal to (i) in
      the
      case of an Eligible CDO Debt Asset, the Fair Market Value of such Eligible
      CDO
      Retained Asset and (b) in the case of an Eligible CDO Equity Interest, the
      Net
      Equity CDO Value of such Eligible CDO Equity Interest. 

    

    “Eligible
      First Mortgage Asset”
means
      any First Mortgage Asset that at all times complies with the First Mortgage
      Asset Representations and Warranties set forth on Exhibit
      “F”
      attached
      hereto.

     

    “Eligible
      Property Equity Interest”
means
      any Property Equity Interest that at all times complies with the Property Equity
      Interest Representations and Warranties set forth on Exhibit
      “G”
      attached
      hereto.

     

    “Eligible
      Real Estate Security”
means
      any Real Estate Security that at all times complies with the Real Estate
      Security Asset Representations and Warranties set forth on Exhibit
      “H”
      attached
      hereto. 

     

    “Eligible
      Subordinated Asset”
means
      any Subordinated Asset that at all times complies with the Subordinated Asset
      Representations and Warranties set forth on Exhibit
      “I”
      attached
      hereto.

     

    “Environmental
      Affiliate”
means
      any partnership, joint venture, trust, limited liability company, corporation
      or
      other entity which is subject to an Environmental Claim and which is a
      Consolidated Subsidiary of NorthStar or, as to any partnership, in which
      NorthStar or a Consolidated Subsidiary is a general partner, either directly
      or
      indirectly.

     

    “Environmental
      Approvals”
means
      any permit, license, approval, ruling, variance, exemption or other
      authorization required under applicable Environmental Laws.

     

    “Environmental
      Claim”
means,
      with respect to any Person, any notice, claim, demand or similar communication
      (written or oral) by any other Person alleging potential liability of such
      Person for investigatory costs, cleanup costs, governmental response costs,
      natural resources damage, property damages, personal injuries, fines or
      penalties arising out of, based on or resulting from (i) the presence, or
      release into the environment, of any Materials of Environmental Concern at
      any
      location, whether or not owned by such Person or (ii) circumstances forming
      the
      basis of any violation, or alleged violation, of any Environmental Law, in
      each
      case (with respect to both (i) and (ii) above) as to which there is a reasonable
      possibility of an adverse determination with respect thereto and which, if
      adversely determined, would have a Material Adverse Effect on any
      Borrower.

     

    “Environmental
      Laws”
means
      any and all federal, state, and local statutes, laws, judicial decisions,
      regulations, ordinances, rules, judgments, orders, decrees, plans, injunctions,
      permits, concessions, grants, licenses, agreements and other governmental
      restrictions relating to the environment, the effect of the environment on
      human
      health or to emissions, discharges or releases of pollutants, contaminants,
      Materials of Environmental Concern or wastes into the environment including,
      without limitation, ambient air, surface water, ground water, or land, or
      otherwise relating to the manufacture, processing, distribution, use, treatment,
      storage, disposal, transport or handling of pollutants, contaminants, Materials
      of Environmental Concern or wastes or the clean-up or other remediation
      thereof.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    “Equity
      Issuance”
means
      any issuance by a Consolidated Party to any Person which is not a Consolidated
      Party of (a) shares of its Capital Stock, (b) any shares of its Capital Stock
      pursuant to the exercise of options or warrants or (c) any shares of its Capital
      Stock pursuant to the conversion of any debt securities to equity.

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended, or any
      successor statute.

     

    “ERISA
      Group”
means
      NorthStar, any Subsidiary and all members of a controlled group of corporations
      and all trades or businesses (whether or not incorporated) under common control
      which, together with NorthStar or any Subsidiary, are treated as a single
      employer under Section 414 of the Code.

     

    “Event
      of Default”
has
      the
      meaning set forth in Section 6.1.

     

    “Excepted
      Liens”
      shall
      mean: (i) Liens for taxes, assessments or other governmental charges or levies
      not yet due or which are being contested in good faith by appropriate action
      and
      for which adequate reserves have been maintained in accordance with GAAP; (ii)
      Liens in connection with worker’s compensation, unemployment insurance or other
      social security, old age pension or public liability obligations not yet due
      or
      which are being contested in good faith by appropriate action and for which
      adequate reserves have been maintained in accordance with GAAP; (iii) vendors’,
      carriers’, warehousemen’s, repairmen's, mechanics’, workmen’s, materialmen’s,
      construction or other like Liens arising by operation of law in the ordinary
      course of business, each of which is either (a) subordinate to the lien of
      the
      applicable Borrowing Base Asset or (b) been adequately insured or bonded or
      (c)
      being contested in good faith by appropriate proceedings and for which adequate
      reserves have been maintained in accordance with GAAP; (iv) easements, rights
      of
      way, zoning restrictions and other similar Liens relating to a Real Property
      Asset or Underlying Asset, which do not individually or in the aggregate
      materially impair the use of such Real Property Asset or Underlying Asset or
      materially impair the value of such Real Property Asset or Underlying Asset
      subject thereto.

     

    “Exceptions
      Summary”
has
      the
      meaning set forth in Section 5.19(a).

     

    “Expenses”
means,
      when used with respect to any asset, the costs of maintaining such asset which
      are the responsibility of the owner thereof, including, without limitation,
      taxes, insurance, repairs and maintenance.

     

    “Facility”
means
      the revolving credit facility established pursuant to this
      Agreement.

     

    “Facility
      Amount”
means
      one-hundred million dollars ($100,000,000) subject to increase pursuant to
      Section 2.18 hereof or decrease pursuant to Section 2.11 hereof.

     

    “Facility
      Interest Expense”
means,
      as of any date of determination for a particular period, an amount equal to
      the
      interest that would accrue during such period on the Outstanding Balance on
      such
      date of determination at an interest rate equal to the sum of (i) the Adjusted
      London Interbank Offered Rate on such date of determination for an Interest
      Period of one (1) month plus
      (ii) the
      Applicable Margin for LIBOR Loans on such date of determination.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    “Facility
      Interest Rate”
means
      as of any date of determination the rate at which the Loans are accruing
      interest in accordance with Section 2.7. 

     

    “Fair
      Market Value”
means
      as to any asset, the current market value of such asset as determined quarterly
      by an independent third party reasonably acceptable to the Administrative Agent
      utilizing valuation methodologies reasonably acceptable to the Administrative
      Agent. 

     

    “Federal
      Funds Rate”
means,
      for any day, the rate per annum (rounded upward, if necessary, to the nearest
      1/100th of 1%) equal to the weighted average of the rates on overnight Federal
      funds transactions with members of the Federal Reserve System arranged by
      Federal funds brokers on such day, as published by the Federal Reserve Bank
      of
      New York on the Domestic Business Day next succeeding such day, provided
      that (i)
      if such day is not a Domestic Business Day, the Federal Funds Rate for such
      day
      shall be such rate on such transactions on the next preceding Domestic Business
      Day as so published on the next succeeding Domestic Business Day, and (ii)
      if no
      such rate is so published on such next succeeding Domestic Business Day, the
      Federal Funds Rate for such day shall be the average rate quoted to KeyBank
      National Association on such day on such transactions as determined by the
      Administrative Agent.

     

    “Federal
      Reserve Board”
means
      the Board of Governors of the Federal Reserve System as constituted from time
      to
      time.

     

    “Fee
      Letter”
means
      that certain Fee Letter between the Borrowers and KeyBank dated on or about
      the
      date hereof, as amended, supplemented or otherwise modified from time to
      time.

     

    “Fees”
means
      all fees payable or to be payable by the Borrowers as provided for in Section
      2.8 and in the Fee Letter.

     

    “First
      Mortgage Asset”
means
      as to any Person, indebtedness owed to such Person, which is not the subject
      of
      a bankruptcy or similar proceeding, is fully performing as to payment and
      material nonpayment obligations thereunder and is secured by a first Lien of
      a
      properly recorded mortgage, deed of trust or other similar security instrument
      on a fee interest or a leasehold interest in real property and all collateral
      security related thereto (regardless of whether such Person’s interest therein
      is characterized as equity according to GAAP).

     

    “Fitch”
means
      Fitch, Inc. or any successor thereto. 

     

    “Fixed
      Charges”
means,
      with respect to the Consolidated Parties for any period, the sum of (i) Interest
      Expense for the such period plus
      (ii)
      Preferred Distributions permitted hereunder for the applicable period
plus
      (iii)
      Scheduled Amortization Payments for the applicable period. 

     

    “Fixed
      Charge Ratio”
means,
      as of the end of each fiscal quarter of the Consolidated Parties for the
      quarterly period ending on such date, the ratio of (a) EBITDA for the applicable
      period to (b) Fixed Charges for the applicable period. 

     

    “Floating
      Rate Indebtedness”
means,
      with respect to any Person, Indebtedness of such Person which accrues interest
      at a rate which may vary during the term of such Indebtedness (other than due
      solely to a default thereunder).

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    “Floating
      Rate Assets”
means
      with respect to any Person, the assets of such Person on the balance sheet
      of
      such Person which generate income that fluctuates based on changes in interest
      rates.

     

    “Fronting
      Lender”
means
      any Lender which is a party hereto which shall issue a Letter of Credit with
      respect to such Notice of Borrowing, subject, however, to the limitations set
      forth in Section 2.5. For purposes of this Agreement, the Fronting Lender shall,
      unless and until the Administrative Agent shall elect otherwise (subject, except
      during the continuance of an Event of Default, to the prior written consent
      of
      the Borrower, which consent shall not be unreasonably withheld, conditioned
      or
      delayed), be KeyBank.

     

    “Funded
      Indebtedness”
means,
      with respect to any Person, without duplication, all Indebtedness of such Person
      other than Indebtedness of the types referred to in clauses (f) and (h) of
      the
      definition of "Indebtedness" set forth in this Section 1.1.

     

    “Funds
      from Operations”
means
      with respect to any Person for any period, an amount equal to the Net Income
      of
      such Person for such period, computed in accordance with GAAP, excluding gains
      or losses from sales of depreciable properties, the cumulative effect of changes
      in accounting principles, and real estate depreciation and amortization. Funds
      from Operations shall be computed in accordance with the standards established
      by the National Association of Real Estate Investment Trusts (NAREIT).

    

    “GAAP”
means
      generally accepted accounting principles recognized as such in the opinions
      and
      pronouncements of the Accounting Principles Board and the American Institute
      of
      Certified Public Accountants and the Financial Accounting Standards
      Board.

     

    “Group
      of Loans”
means,
      at any time, a group of Loans consisting of (i) all Committed Loans which are
      Alternate Base Rate Loans at such time, or (ii) all Committed Loans which are
      LIBOR Loans having the same Interest Period at such time.

     

    “Guarantee
      Obligation”
means
      as to any Person (the “guaranteeing
      person”),
      without duplication, any obligation of (a) the guaranteeing person or (b)
      another Person (including, without limitation, any bank under any letter of
      credit) guaranteeing any Indebtedness, leases, dividends or other obligations
      (the “primary
      obligations”)
      of any
      other third Person (the “primary
      obligor”)
      in any
      manner, whether directly or indirectly, including, without limitation, any
      obligation of the guaranteeing person, whether or not contingent, (i) to
      purchase any such primary obligation or any property constituting direct or
      indirect security therefor, (ii) to advance or supply funds (1) for the purchase
      or payment of any such primary obligation or (2) to maintain working capital
      or
      equity capital of the primary obligor or otherwise to maintain the net worth
      or
      solvency of the primary obligor, (iii) to purchase property, securities or
      services primarily for the purpose of assuring the owner of any such primary
      obligation of the ability of the primary obligor to make payment of such primary
      obligation or (iv) otherwise to assure or hold harmless the owner of any such
      primary obligation against loss in respect thereof; provided,
      however,
      that
      the term Guarantee Obligation shall not include endorsements of instruments
      for
      deposit or collection in the ordinary course of business. The terms
“Guarantee”
and
      “Guaranteed”
used
      as
      a verb shall have a correlative meaning.

     

    “Guaranty”
means
      the Unconditional Guaranty of Payment and Performance, dated of even date
      herewith, made by
      the
      Subsidiary Guarantors in favor of the Administrative Agent and the Lenders,
      as
      the same may be modified or amended, such Guaranty to be in form and substance
      satisfactory to the Administrative Agent. 

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    “Indebtedness”
of
      any
      Person, without duplication, means, in each case whether direct or contingent,
      (a) all obligations of such Person for borrowed money, (b) all obligations
      of
      such Person evidenced by bonds, debentures, notes or similar instruments, or
      upon which interest payments are customarily made, (c) all obligations of such
      Person under conditional sale or other title retention agreements relating
      to
      property purchased by such Person, (d) all obligations of such Person issued
      or
      assumed as the deferred purchase price of property or services purchased by
      such
      Person (other than trade debt incurred in the ordinary course of business and
      due within six months of the incurrence thereof) which would appear as
      liabilities on a balance sheet of such Person, (e) all indebtedness of others
      secured by (or for which the holder of such indebtedness has an existing right,
      contingent or otherwise, to be secured by) any Lien on, or payable out of the
      proceeds of production from, property owned or acquired by such Person, whether
      or not the obligations secured thereby have been assumed, (f) all Guarantee
      Obligations of such Person, (g) the principal portion of all obligations of
      such
      Person under Capital Leases, (h) all Derivative Exposure and other obligations
      of such Person in respect of interest rate swap, collar, cap or other interest
      rate protection agreements, treasury locks, equity forward contracts, foreign
      currency exchange agreements, commodity purchase or option agreements or other
      interest or exchange rate or commodity price hedging agreements (including,
      but
      not limited to, Match Funding Agreements), (i) all obligations of such Person
      to
      repurchase any securities which repurchase obligation is related to the issuance
      thereof, (j) the maximum amount of all letters of credit issued or bankers’
acceptances facilities created for the account of such Person and, without
      duplication, all drafts drawn thereunder (to the extent unreimbursed), (k)
      all
      preferred Capital Stock issued by such Person and required by the terms thereof
      to be redeemed, or for which mandatory sinking fund payments are due, by a
      fixed
      date, (l) the principal portion of all obligations of such Person for any Off
      Balance Sheet Liabilities and (m) such Person’s pro rata portion of the
      indebtedness of any partnership or unincorporated joint venture in which such
      Person is a general partner or a joint venturer.

     

    “Indemnitee”
has
      the
      meaning set forth in Section 9.3(b).

     

    “Interest
      Expense”
means,
      for any period, the interest expense (including, without limitation, the
      interest component under Capital Leases) of the Consolidated Parties for such
      period, as determined in accordance with GAAP.

     

    “Interest
      Payment Date”
means
      (a) as to Alternate Base Rate Loans, the first day of each calendar month (as
      to
      interest through the end of the prior calendar month) and the Maturity Date
      and
      (b) as to LIBOR Loans, the last day of each applicable Interest Period and
      the
      Maturity Date.

     

    “Interest
      Period”
      means:

     

    (a) with
      respect to each LIBOR Borrowing, the period commencing on the date of such
      Borrowing specified in the applicable Notice of Borrowing or on the date
      specified in the applicable Notice of Interest Rate Election and ending one,
      two
      or three months thereafter, as the Borrower may elect in the applicable Notice
      of Borrowing or Notice of Interest Rate Election; provided
      that:

     

    (i) any
      Interest Period which would otherwise end on a day which is not a LIBOR Business
      Day shall be extended to the next succeeding LIBOR Business Day unless such
      LIBOR Business Day falls in another calendar month, in which case such Interest
      Period shall end on the immediately preceding LIBOR Business Day;

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

    (ii) any
      Interest Period which begins on the last LIBOR Business Day of a calendar month
      (or on a day for which there is no numerically corresponding day in the calendar
      month at the end of such Interest Period) shall, subject to clause (iii) below,
      end on the last LIBOR Business Day of a calendar month; and

     

    (iii) if
      any
      Interest Period includes a date on which a payment of principal of the Loans
      is
      required to be made under Section 2.10 but does not end on such date, then
      (x)
      the principal amount (if any) of each LIBOR Loan required to be repaid on such
      date shall have an Interest Period ending on such date and (y) the remainder
      (if
      any) of each such LIBOR Loan shall have an Interest Period determined as set
      forth above.

     

    (b) With
      respect to each Alternate Base Rate Borrowing, the period commencing on the
      date
      of such Borrowing specified in the applicable Notice of Borrowing or on the
      date
      specified (or deemed specified) in the applicable Notice of Interest Rate
      Election and ending on the last day of the calendar month in which such Notice
      of Borrowing or Notice of Interest Rate Election was made (or deemed made);
      provided
      that if
      any Interest Period includes a date on which a payment of principal of the
      Loans
      is required to be made under Section 2.13 but does not end on such date, then
      (i) the principal amount (if any) of each Alternate Base Rate Loan required
      to
      be repaid on such date shall have an Interest Period ending on such date and
      (ii) the remainder (if any) of each such Alternate Base Rate Loan shall have
      an
      Interest Period determined as set forth above.

     

    “Investment
      Grade”
means,
      as to any asset or Person, such asset or the senior unsecured indebtedness
      of
      such Person is rated by at least one Rating Agency, and (i) if rated by S&P,
      having a rating of “BBB-” or higher and (ii) if rated by Fitch, having a rating
      of “BBB-“ or higher, and (iii) if rated by Moody’s, having a rating of “Baa3 “
or higher.

     

    “KeyBank”
means
      KeyBank National Association and its successors.

     

    “Legal
      Rate”
has
      the
      meaning set forth in Section 9.17. 

     

    “Lender”
means
      each lender listed on the signature pages hereof, each Assignee which becomes
      a
      Lender pursuant to Section 9.6(b), and their respective successors.

     

    “Letter(s)
      of Credit”
has
      the
      meaning set forth in Section 2.2.

     

    “Letter
      of Credit Fee”
has
      the
      meaning set forth in Section 2.8(b).

     

    “Letter
      of Credit Collateral”
has
      the
      meaning set forth in Section 6.4.

     

    “Letter
      of Credit Collateral Account”
has
      the
      meaning set forth in Section 6.4.

     

    “Letter
      of Credit Documents”
has
      the
      meaning set forth in Section 2.16.

     

    “Letter
      of Credit Usage”
means
      at any time the sum of (i) the aggregate maximum amount available to be drawn
      under the Letters of Credit then outstanding, assuming compliance with all
      requirements for drawing referred to in such Letters of Credit, and (ii) the
      aggregate amount which has been drawn under Letters Credit but for which the
      applicable Fronting Lender and/or Lenders have not been reimbursed at such
      time.

     

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

    “Leverage
      Ratio”
means,
      as of any date of calculation, the ratio of (i) Total Liabilities to (ii) Total
      Assets of the Consolidated Parties.

     

    “LIBOR
      Business Day”
means
      any Domestic Business Day on which commercial banks are open for international
      business (including dealings in dollar deposits) in London.

     

    “LIBOR
      Lending Office”
means,
      as to each Lender, its office, branch or affiliate located at its address set
      forth in its Administrative Questionnaire (or identified in its Administrative
      Questionnaire as its LIBOR Lending Office) or such other office, branch or
      affiliate of such Lender as it may hereafter designate as its LIBOR Lending
      Office by notice to the Borrowers and the Administrative Agent.

     

    “LIBOR
      Loan”
means
      a
      Committed Loan to be made by a Lender as a LIBOR Loan in accordance with the
      applicable Notice of Committed Borrowing.

     

    “Lien”
means,
      with respect to any asset, any mortgage, lien (including any tax lien or
      assessment), pledge, charge, security interest or encumbrance of any kind,
      or
      any other type of preferential arrangement that has the effect of creating
      a
      security interest. For purposes of this Agreement, the term “Lien” shall not
      include any Excepted Lien. For the purposes of this Agreement, any Borrowing
      Base Entity shall be deemed to own subject to a Lien any asset which it has
      acquired or holds subject to the interest of a vendor or lessor under any
      conditional or installment sales agreement, capital lease or other title
      retention agreement relating to such asset.

     

    “Loan”
means
      an Alternate Base Rate Loan or a LIBOR Loan and “Loans”
means
      Alternate Base Rate Loans or LIBOR Loans or any combination of the
      foregoing.

     

    “Loan
      Documents”
means
      a
      collective reference to this Agreement, the Notes, the Guaranty, the Letter
      of
      Credit Documents and all other related agreements and documents issued or
      delivered hereunder or thereunder or pursuant hereto or thereto (in each case,
      as the same may be amended, modified, restated, supplemented, extended, renewed
      or replaced from time to time).

     

    “London
      Interbank Offered Rate”
has
      the
      meaning set forth in Section 2.7(c).

     

    “Margin
      Stock”
has
      the
      meaning provided such term in Regulation U of the Federal Reserve
      Board.

     

    “Match
      Funding Agreements”
shall
      mean any and all agreements, devices or arrangements, the counterparty to which
      has a Credit Rating of at least A- by Standard & Poor’s or A3 by Moody’s or
      is otherwise acceptable to the Administrative Agent, designed to protect any
      Consolidated Party which is a party thereto from the fluctuations of interest
      rate, exchange rate or forward rate differences between individual assets owned
      by a Consolidated Party and the Indebtedness incurred by a Consolidated Party
      in
      connection with the origination or financing of such individual assets,
      including, but not limited to, dollar-denominated or cross-currency interest
      rate exchange agreements, Treasury locks, forward currency exchange agreements,
      interest rate cap or collar protection agreements, forward rate currency or
      interest rate options, puts and warrants.

     

    “Material
      Adverse Effect”
means
      an effect resulting from any circumstance or event or series of circumstances
      or
      events, of whatever nature (but excluding general economic conditions), which,
      taken as a whole, (i) could reasonably be expected to materially and adversely
      affect the business, operations, properties, assets or financial condition
      of
      NorthStar, any other Borrower, or, with respect to the Borrowing Base Entities,
      the Borrowing Base Entities taken as a whole, or (ii) could reasonably be
      expected to impair the ability of NorthStar, any other Borrower or any Borrowing
      Base Entity to fulfill its material obligations, including, if applicable,
      their
      ability to perform their respective obligations under the Loan Documents or
      which causes a Default under Section 5.8 hereof.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    “Material
      Plan”
means
      at any time a Plan or Plans having aggregate Unfunded Liabilities in excess
      of
      $1,000,000.

     

    “Materials
      of Environmental Concern”
means
      and includes pollutants, contaminants, wastes, toxic and hazardous substances,
      petroleum and petroleum by-products.

     

    “Maturity
      Date”
means
      the date when all of the Obligations hereunder shall be due and payable which
      shall be November 3, 2009, unless accelerated pursuant to the terms
      hereof.

     

    “Moody’s”
means
      Moody’s Investors Services, Inc. or any successor thereto.

     

    “Multiemployer
      Plan”
means
      at any time an employee pension benefit plan within the meaning of Section
      4001(a)(3) of ERISA to which any member of the ERISA Group is then making or
      accruing an obligation to make contributions or has within the preceding five
      plan years made contributions, including for these purposes any Person which
      ceased to be a member of the ERISA Group during such five year
      period.

     

    “Net
      Equity Proceeds”
means
      the aggregate cash proceeds received by the Consolidated Parties in respect
      of
      any Equity Issuance, net of (a) direct costs (including, without limitation,
      legal, accounting and investment banking fees and sales commissions) and (b)
      taxes paid or payable as a result thereof; it being understood, (i) that “Net
      Equity Proceeds” shall include, without limitation, any cash received upon the
      sale or other disposition of any non-cash consideration received by the
      Consolidated Parties in any Equity Issuance, and (ii) that “Net Equity Proceeds”
shall not include cash proceeds that are applied within thirty (30) days of
      the
      date of the related Equity Issuance to retire Capital Stock.

     

    “Net
      Equity Value”
means
      with respect to any Property Equity Interest, the lesser of (i) the
      un-depreciated Book Value of the related Real Property Asset (inclusive of
      any
      FAS 141 intangibles incurred in connection with the acquisition of such Real
      Property Asset) and (ii) the Underlying Real Estate Value of the related Real
      Property Asset less, in each case, any Indebtedness of any Person relating
      to
      such Real Property Asset which is permitted by the terms of Exhibit
      G
      hereto.

     

    “Net
      Equity CDO Value”
means
      with respect to any Eligible CDO Equity Interest, the lesser of (a) (i) with
      respect to an Eligible CDO Equity Interest in an Eligible CDO that is not a
      Consolidated Party, the Fair Market Value of such Eligible CDO Equity Interest,
      and (ii) with respect to an Eligible CDO Equity Interest in an Eligible CDO
      that
      is a Consolidated Party, an amount equal to (A) the Book Value to the extent
      the
      CDO collateral consists of loans or (B) the Fair Market Value to the extent
      the
      CDO collateral consists of real estate securities, as the case may be, minus
      the
      outstanding principal amount of all notes or real estate securities (including
      any capitalized interest thereon) issued by the related Eligible CDO (other
      than
      the Eligible CDO Equity Interest being valued), plus or minus the Fair Market
      Value of any interest rate swap relating to such Eligible CDO Equity Interest,
      and (b) the Net Outstanding Portfolio Balance under the CDO Indenture to which
      such Eligible CDO Equity Interest relates minus the outstanding principal amount
      of all notes or debt securities (including any capitalized interest thereon)
      issued by the related Eligible CDO. 

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

    “Net
      Income”
means,
      for any period, net income or loss after taxes for such period of the
      Consolidated Parties, as determined in accordance with GAAP.

     

    “Net
      Outstanding Portfolio Balance”
shall
      have the meaning set forth in the reports issued by the trustees pursuant to
      the
      applicable CDO Indentures; “Net Outstanding Portfolio Balance” may also refer to
      the “Principal Coverage Amount” as defined in the applicable CDO Indenture
      provided that such definition is acceptable to the Administrative Agent. If
      such
      term is not defined in any trustee report or by reference to the applicable
      CDO
      Indenture or the Administrative Agent reasonably determines that such definition
      is not acceptable, such term shall have the meaning agreed to by NorthStar
      and
      the Administrative Agent.

    

    “NNN
      Holdings”
means
      NRFC NNN Holdings, LLC, a Delaware limited liability company.

    

    “Non-Wholly-Owned
      Subsidiary”
means
      a
      Subsidiary which is not a Wholly-Owned Subsidiary. 

    

    “Non-Recourse
      Debt”
as
      to
      any Person means Indebtedness (i) for which the right of recovery of the obligee
      thereof is limited to recourse against the asset securing such Indebtedness
      (subject to such customary carve-out matters for which such Person has a
      Guarantee Obligation made in connection with such Indebtedness, such as fraud,
      misappropriation, bankruptcy, misapplication and environmental indemnities,
      unless, until and for so long as a claim for payment or performance has been
      made thereunder (which has not been satisfied) at which time the obligations
      with respect to any such customary carve-out shall not be considered
      Non-Recourse Debt, to the extent that such claim is a liability of such Person
      for GAAP purposes) and/or (ii) other Indebtedness for which such Person has
      no
      Guarantee Obligation (other than guarantees of customary carve-out matters
      made
      in connection with such Indebtedness, such as fraud, misappropriation,
      bankruptcy, environmental matters and misapplication, unless, until and for
      so
      long as a claim for payment or performance has been made thereunder (which
      has
      not been satisfied), at which time such guarantee of any such customary
      carve-out shall not be considered Non-Recourse Debt of such Person, to the
      extent that such claim is a liability of such Person for GAAP
      purposes).

     

    “Non-NorthStar
      Plan”
means
      any Plan other than a NorthStar Plan.

     

    “NorthStar’s
      2005 Form 10-K”
means
      NorthStar’s annual report on Form 10-K for the Fiscal Year ended December 31,
      2005, as filed with respect to NorthStar with the Securities and Exchange
      Commission pursuant to the Securities Exchange Act of 1934.

     

    “NorthStar’s
      2006 Form 10-Q”
means
      the quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2006,
      as
      filed with respect to NorthStar with the Securities and Exchange Commission
      pursuant to the Securities Exchange Act of 1934.

     

    “NorthStar
      Plan”
means
      a
      Plan in the ERISA Group sponsored, maintained or contributed to by NorthStar,
      NorthStar OP or any other Borrower.

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    “Notes”
means
      promissory notes of the Borrowers, substantially in the form of Exhibit
      “A”
      hereto,
      evidencing the obligation of the Borrowers to repay the Loans, and “Note” means
      any one of such promissory notes issued hereunder.

     

    “Notice
      of Borrowing”
means
      a
      Notice of Committed Borrowing (as defined in Section 2.3).

     

    “Notice
      of Interest Rate Election”
has
      the
      meaning set forth in Section 2.6.

     

    “NS
      Holdings I”
means
      NS Holdings I, LLC, a Delaware limited liability company.

    

    “NS
      Holdings II”
means
      NS Holdings II, LLC, a Delaware limited liability company.

    

    “NS
      Holdings III”
means
      NS Holdings III, LLC, a Delaware limited liability company.

    

    “Obligations”
means
      all obligations, liabilities and indebtedness of every nature of the Borrowers,
      from time to time owing to any Lender under or in connection with this Agreement
      or any other Loan Document, including, without limitation, (i) the outstanding
      principal amount of the Committed Loans at such time, plus (ii) the Letter
      of
      Credit Usage at such time.

     

    “Off
      Balance Sheet Asset”
means,
      with respect to any Person, any asset that is subject to an Off Balance Sheet
      Financing, and as a result of such transaction such asset does not (and is
      not
      required pursuant to GAAP) to appear as an asset on the balance sheet of such
      Person. 

     

    “Off
      Balance Sheet Liabilities”
means,
      with respect to any Person, any (a) repurchase obligation or liability,
      contingent or otherwise, of such Person with respect to any mortgages, mortgage
      notes, accounts or notes receivable sold, transferred or otherwise disposed
      of
      by such Person, (b) repurchase obligation or liability, contingent or otherwise,
      of such Person with respect to property or assets leased by such Person as
      lessee and (c) obligations, contingent or otherwise, of such Person under any
      Off Balance Sheet Transaction, in each case, if the transaction giving rise
      to
      such obligation (i) is considered Indebtedness for borrowed money for tax
      purposes, and (ii) does not (and is not required pursuant to GAAP) to appear
      as
      a liability on the balance sheet of such Person.

     

    “Off
      Balance Sheet Transaction”
means,
      with respect to any Person, any synthetic lease, tax retention operating lease,
      commercial mortgage backed securities transaction, securitization transaction,
      collateralized debt obligation transaction, off balance sheet loan or similar
      off balance sheet financing. 

     

    “Outstanding
      Balance”
means
      at any time, and from time to time, the sum of (i) the aggregate outstanding
      principal balance of all Committed Loans and (ii) the Letter of Credit
      Usage.

     

    “Parent”
means,
      with respect to any Lender, any Person controlling such Lender.

     

    “Participant”
has
      the
      meaning set forth in Section 9.6(c).

     

    “Partnership”
means
      any general or limited partnership, joint venture, corporation, limited
      liability company, limited liability partnership, limited liability limited
      partnership or other Person which is not a natural Person or the estate of
      a
      deceased natural Person and which owns directly an interest in real
      property.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    “PBGC”
means
      the Pension Benefit Guaranty Corporation or any entity succeeding to any or
      all
      of its functions under ERISA.

     

    “Person”
means
      an individual, a corporation, a partnership, an association, a trust or any
      other entity or organization, including a government or political subdivision
      or
      an agency or instrumentality thereof.

     

    “Plan”
means
      at any time an employee pension benefit plan (other than a Multiemployer Plan)
      which is covered by Title IV of ERISA or subject to the minimum funding
      standards under Section 412 of the Code and either (i) is maintained, or
      contributed to, by any member of the ERISA Group for employees of any member
      of
      the ERISA Group or (ii) has at any time within the preceding five years been
      maintained, or contributed to, by any Person which was at such time a member
      of
      the ERISA Group for employees of any Person which was at such time a member
      of
      the ERISA Group.

     

    “Preferred
      Distributions”
means
      for any period, the amount of any and all Distributions paid, declared but
      not
      yet paid or otherwise due and payable to the holders of any form of preferred
      stock or partnership interest (whether perpetual, convertible or otherwise)
      or
      other ownership or beneficial interest in NorthStar or any Subsidiary thereof
      that entitles the holders thereof to preferential payment or distribution
      priority with respect to dividends, distributions, assets or other payments
      over
      the holders of any other stock, partnership interest or other ownership or
      beneficial interest in such Person.

    

    “Preferred
      Securities”
means
      any stock, shares or other such interests (which is not the subject of a
      bankruptcy or similar proceeding) in and to a Person primarily and directly
      engaged (directly or through a Subsidiary) in the business of the ownership,
      operation and/or management of real property, the terms of which stock, shares
      or other interests provide the holders of the shares thereof with a liquidation
      preference in the assets of such Person in relation to the holders of the common
      stock of such Person.

    

    “Prime
      Rate”
means
      the rate of interest publicly announced by KeyBank from time to time as its
      Prime Rate.

    

    “Property
      Equity Interest”
means,
      with respect to a Real Property Asset, the ownership interest in such Real
      Property Asset. 

    

    “Property
      Expenses”
means,
      with respect to any applicable time period for any Real Property Asset, the
      costs of maintaining such Real Property Asset which are the responsibility
      of
      the owner thereof, including, without limitation, taxes, insurance, repairs
      and
      maintenance during such period.

    

    “Property
      NOI”
means,
      with respect to any applicable time period for any Real Property Asset, (a)
      Property Revenues for such period with respect to such Real Property Asset
      less
      (b) the
      sum of (i) Property Expenses for such period with respect to such Real Property
      Asset, plus
      (ii) the
      Capital Replacement Reserve amount for such Real Property Asset during such
      period (but only to the extent NorthStar or an Affiliate of NorthStar is
      responsible for such costs), plus
      (iii) a
      management fee in the amount of three percent (3%) of total revenues derived
      from the Real Property Asset during such period; provided, that such amount
      shall be exclusive of any adjustment for such period attributable to the
      Straight-Lining of Rents.

     

    “Property
      Revenues”
means,
      with respect to any applicable time period for any Real Property Asset, the
      base
      rent, expense reimbursement and other recurring rental income received during
      such period (other than prepaid rents and revenues and security deposits except
      to the extent applied in satisfaction of tenants’ obligations for
      rent).

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    “Rating
      Agencies”
means,
      collectively, S&P, Moody’s and Fitch.

     

    “Real
      Estate Securities”
means
      securities issued (i) pursuant to a securitization of commercial mortgage loans
      or (ii) by a real estate operating company or REIT.

     

    “Real
      Property Assets”
means,
      as of any time as to any Person, the real property assets in which such Person
      has a fee title ownership interest or possesses a leasehold interest at such
      time.

     

    “Real
      Property Subsidiary”
has
      the
      meaning set forth in Section 5.23. 

     

    “Recourse
      Debt”
as
      to
      any Person means all Indebtedness other than Non-Recourse Debt. TruPS shall
      be
      considered Recourse Debt for purposes of Section 6.1(e). 

     

    “Regulation
      U”
means
      Regulation U of the Board of Governors of the Federal Reserve System, as in
      effect from time to time.

     

    “Required
      Lenders”
means
      at any time Lenders having at least 66.67% of the aggregate amount of the
      Commitments or, if the Commitments shall have been terminated, holding Notes
      and/or participations in Letters of Credit evidencing at least 66.67% of the
      aggregate unpaid principal amount of the Committed Loans and Letter of Credit
      Usage.

     

    “Scheduled
      Amortization Payments”
means,
      for a given period, the sum of all scheduled payments of principal on Funded
      Indebtedness for the Consolidated Parties for the applicable period ending
      on
      such date (including the principal component of payments due on Capital Leases
      during the applicable period); it being understood that Scheduled Amortization
      Payments shall not include any one-time “bullet”, “lump sum” or “balloon”
payments due in respect of Funded Indebtedness.

     

    “Senior
      Management Fees”
means
      revenue derived from senior management fees payable to NS Advisors in respect
      of
      the management of a Borrowing Base Asset less any costs incurred by the
      Consolidated Parties that are allocable to the such revenues. 

     

    “S&P”
means
      Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies,
      Inc., or any successor thereto.

     

    “Solvent”
means,
      with respect to any Person, that (i) the fair saleable value of such Person’s
      assets exceeds the Indebtedness of such Person, (ii) such Person has the ability
      to generally pay its debts and other liabilities as they become due in ordinary
      course of business and (iii) such Person has sufficient capital to conduct
      its
      business in the ordinary course of business.

     

    “Special
      Purpose Entity”
means
      any entity whose structure and organizational and governing documents satisfy,
      in form and substance, Rating Agency special purpose entity requirements.

     

    “Straight-Lining
      of Rents”
means,
      with respect to any lease, the method by which rent with respect to such lease
      is considered earned or expensed equally over the term of such lease despite
      the
      existence of (i) any free rent periods under such lease and (ii) any rent
      step-up provisions under such lease.

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    “Subordinated
      Assets”
means
      Subordinated Debt Assets and Preferred Securities.

     

    “Subordinated
      Debt Assets”
means
      as to any Person, mezzanine or other subordinated indebtedness owed to such
      Person, which is not the subject of a bankruptcy or similar proceeding, is
      fully
      performing as to payment and material nonpayment obligations thereunder and
      is
      secured by (i) a Lien of a properly recorded mortgage, deed of trust or other
      similar security instrument on a fee interest or a leasehold interest in real
      property and all collateral security related thereto, which indebtedness is
      subject to only to a first Lien of a recorded mortgage, deed of trust or other
      similar security instrument or (ii) a pledge of the direct or indirect ownership
      interests in the Person owing such mezzanine or other indebtedness, which
      ownership interests are subject to no other Lien. 

     

    “Subsidiary”
means
      any corporation or other entity of which securities or other ownership interests
      having ordinary voting power to elect a majority of the board of directors
      or
      other Persons performing similar functions are at the time directly or
      indirectly owned by NorthStar.

     

    “Subsidiary
      Guarantor”
means
      (i) each Subsidiary of a Borrower that owns Borrowing Base Assets included
      in
      the Borrowing Base Assets Pool (other than any Real Property Subsidiary or
      any
      CDO Subsidiary), (ii) NNN Holdings, (iii) NS Holdings I, (iv) NS Holdings II
      and
      (v) NS Holdings III, together with any Subsidiary of a Borrower that shall
      become a Subsidiary Guarantor pursuant to Section 5.24.

     

    “Syndication
      Agent”
means
      Bank of America, N.A., in its capacity as Syndication Agent hereunder, and
      its
      permitted successors in such capacity in accordance with the terms of this
      Agreement.

     

    “Term”
has
      the
      meaning set forth in Section 2.9.

     

    “Termination
      Event”
means,
      with respect to a NorthStar Plan, or with respect to a Non-NorthStar Plan (but,
      as to any Non-NorthStar Plan, only to the extent an event described in (i)
      through (v) below would result in a Material Adverse Effect), (i) a “reportable
      event”, as such term is described in Section 4043 of ERISA (other than a
“reportable event” not subject to the provision for 30-day notice to the PBGC),
      or an event described in Section 4062(e) of ERISA, (ii) the withdrawal by any
      member of the ERISA Group from a Multiemployer Plan during a plan year in which
      it is a “substantial employer” (as defined in Section 4001(a)(2) of ERISA), or
      the incurrence of liability by any member of the ERISA Group under Section
      4064
      of ERISA upon the termination of a Multiemployer Plan, (iii) the filing of
      a
      notice of intent to terminate any Plan under Section 4041 of ERISA, other than
      in a standard termination within the meaning of Section 4041 of ERISA, or the
      treatment of a Plan amendment as a distress termination under Section 4041
      of
      ERISA, (iv) the institution by the PBGC of proceedings to terminate, impose
      liability (other than for premiums under Section 4007 of ERISA) in respect
      of,
      or cause a trustee to be appointed to administer, any Plan or (v) any other
      event or condition that would constitute grounds for the termination of, or
      the
      appointment of a trustee to administer, any Plan or the imposition of any
      liability or encumbrance or Lien on any Real Property Assets or any member
      of
      the ERISA Group under ERISA.

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    “Total
      Available Commitments”
means,
      at any time of determination, the lesser of (a) the aggregate amount of the
      Commitments at such time, or (b) the then Borrowing Base
      Availability.

     

    “Total
      Assets”
means,
      as to any Person as of any date, all assets of such Person determined in
      accordance with GAAP, adjusted (i) to give effect to the proportional ownership
      by such Person of any Non-Wholly-Owned Subsidiary of such Person and any
      partnership or unincorporated joint venture in which such Person is a general
      partner or a joint venturer and (ii) to include on the balance sheet of such
      Person any Off Balance Sheet Assets of such Person. 

     

    “Total
      Liabilities”
means
      the sum of (i) total liabilities of the Consolidated Parties, as determined
      in
      accordance with GAAP (exclusive of escrow deposits and other liabilities for
      which cash has been received and is classified under “restricted cash” on the
      balance sheet of such Person), plus
      (ii) the
      total Contingent Obligations of the Consolidated Parties, in each case adjusted
      (A) to give effect to the proportional ownership by such Person of any
      Non-Wholly-Owned Subsidiary of such Person and any partnership or unincorporated
      joint venture in which such Person is a general partner or a joint venturer
      and
      (B) to include on the balance sheet of such Person any Off Balance Sheet
      Liabilities of such Person, minus,
      Indebtedness of the Consolidated Parties in respect of TruPS. 

     

    “TruPS”
means
      those REIT trust preferred securities issued by a Consolidated Party identified
      on Schedule 1.1 hereto and such other REIT trust preferred securities issued
      by
      a Consolidated Party which are approved by the Administrative Agent, in each
      case which are expressly subordinated to all other Indebtedness of the
      Consolidated Parties. REIT trust preferred securities issued by a Consolidated
      Party shall be approved by the Administrative Agent if such securities are
      issued on terms substantially similar to those securities listed on Schedule
      1.1, as determined by the Administrative Agent in its reasonable discretion.
      

     

    “Underlying
      Asset”
means
      as to any First Mortgage Asset or Subordinated Debt Asset, the real property
      encumbered thereby or, as to any Preferred Securities, the real property which
      is owned directly by the Person in which the Securities are part of the equity
      structure thereof.

     

    “Underlying
      Real Estate Value”
means
      as to any Real Property Assets or any Underlying Assets (a) the appraised value
      of the real property as reflected in the most recent MAI appraisal in form
      and
      substance reasonably acceptable to the Administrative Agent or (b) where no
      MAI
      appraisal is available, (i) the annualized Property NOI for such property based
      upon the most recently completed two fiscal quarters, divided
      by
      (ii) the
      Capitalization Rate. 

     

    “Unfunded
      Liabilities”
means,
      with respect to any Plan at any time, the amount (if any) by which (i) the
      value
      of all benefit liabilities under such Plan, determined on a plan termination
      basis using the assumptions prescribed by the PBGC for purposes of Section
      4044
      of ERISA, exceeds (ii) the fair market value of all Plan assets allocable to
      such liabilities under Title IV of ERISA (excluding any accrued but unpaid
      contributions), all determined as of the then most recent valuation date for
      such Plan, but only to the extent that such excess represents a reasonably
      likely liability of a member of the ERISA Group to the PBGC or any other Person
      under Title IV of ERISA.

     

    “United
      States”
means
      the United States of America, including the fifty states and the District of
      Columbia.

     

    “Unused
      Commitment Fee”
has
      the
      meaning set forth in Section 2.8(c).

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    “Wholly-Owned
      Subsidiary”
means,
      with respect to any Person, a Subsidiary of such Person of which one hundred
      percent (100%) of the outstanding shares of stock or other equity interests
      are
      owned, directly or indirectly, by such Person (excluding, in the case of NRFC
      Sub-REIT, preferred shares that are owned by a Person other than a Borrower
      solely for purposes of compliance with the REIT minimum number of shareholders
      rules). 

     

    Section
      1.2 Accounting
      Terms and Determinations.
      Unless
      otherwise specified herein, all accounting terms used herein shall be
      interpreted, all accounting determinations
      hereunder shall be made, and all financial statements required to be delivered
      hereunder
      shall be prepared in accordance with GAAP applied on a basis consistent (except
      for changes concurred in by NorthStar’s independent public accountants) with the
      most recent audited consolidated financial statements of NorthStar and its
      Consolidated Subsidiaries delivered to the Administrative Agent; provided
      that, if
      the Borrowers notify the Administrative Agent that the Borrowers
      wish to amend any covenant in Article V to eliminate the effect of any change
      in
      GAAP on the operation of such covenant (or if the Administrative Agent notifies
      the Borrowers that the Required Lenders wish to amend Article V for such
      purpose), then the applicable Person’s compliance with such covenant shall be
      determined on the basis of GAAP in effect immediately before the relevant change
      in GAAP became effective until either such notice is withdrawn or such
      covenant is amended in a manner reasonably satisfactory to the Borrowers and
      the
      Required Lenders.
      All
      calculations with respect to the defined terms and the covenants in Article
      V
      shall be done without duplication.

     

    Section
      1.3 Types
      of Borrowings.
      The
      term “Borrowing” denotes the aggregation of Loans of one or more Lenders to be
      made to the Borrowers pursuant to Article II on the
      same
      date, all of which Loans are of the same type (subject to Article VIII) and,
      except in the case
      of
      Alternate Base Rate Loans, have the same Interest Period. Borrowings are
      classified for purposes
      of this Agreement either by reference to the pricing of Loans comprising such
      Borrowing
      (e.g.,
      a
“LIBOR
      Borrowing” is a Borrowing comprised of LIBOR Loans) or by reference to the
      provisions of Article II under which participation therein is determined
      (i.e.,
      a
“Committed Borrowing” is a Borrowing under Section 2.1 in which all Lenders
      participate in proportion to their Commitments).

     

    ARTICLE
      II

     

    THE
      COMMITMENTS

     

    Section
      2.1 Commitments
      to Lend.
      Each
      Lender severally agrees, on the terms and conditions set forth in this
      Agreement, to make Committed Loans to the Borrowers
      or
      participate in Letters of Credit issued by the Fronting Lender on behalf of
      Borrowers pursuant
      to this Article from time to time during the term hereof in amounts such that
      the aggregate principal amount
      of
      Committed Loans by such Lender at any one time outstanding plus such
Lender’s
      pro rata share (based on the ratio of its Commitment to the aggregate
of
      all
      Commitments) of Letter of Credit Usage shall not exceed the amount of its
      Available Commitment. The aggregate amount of Committed Loans together with
      the
      Letter of Credit Usage shall not exceed the lesser of (i) the Facility Amount
      and (ii) the Total Available Commitments.
      The
      aggregate dollar amount of Letters of Credit Usage shall not
      at
      any time exceed Ten Million Dollars ($10,000,000).
      Each
      Borrowing outstanding under this Section
      2.1 (other than a Borrowing in connection with a draw under a Letter of Credit)
      shall be in an aggregate principal amount of $5,000,000 (for LIBOR Loans) or
      $1,000,000 (for Alternate Base Rate Loans), or in each case an integral multiple
      of $1,000,000 in excess thereof
      (except that any such Borrowing may be in the aggregate amount available
      in accordance with Section 3.2(c)) and shall be made from the several Lenders
      ratably in proportion to their respective Commitments. Subject to the
      limitations set forth herein, any amounts repaid may be reborrowed.

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    Section
      2.2 Notice
      of Committed Borrowing.
      The
      Borrowers shall give Administrative Agent notice not later than 12:00 noon
      (New
      York, New York time) (x) one (1) Domestic
      Business Day before each Alternate Base Rate Borrowing, or (y) three (3) LIBOR
      Business
      Days before each LIBOR Borrowing, specifying:

     

    (i) the
      date
      of such Borrowing, which shall be a Domestic Business Day in the case of a
      Domestic Borrowing or a LIBOR Business Day in the case of a LIBOR
      Borrowing,

     

    (ii) the
      aggregate amount of such Borrowing,

     

    (iii) whether
      the Loans comprising such Borrowing are to be Alternate Base Rate Loans or
      LIBOR
      Loans,

     

    (iv) in
      the
      case of a LIBOR Borrowing, the duration of the Interest Period applicable
      thereto, subject to the provisions of the definition of Interest Period,

     

    (v) the
      Total
      Available Commitments, 

     

    (vi) the
      Outstanding Balance.

     

    Together
      with the notice to the Administrative Agent as specified immediately above,
      the
      Borrowers shall deliver to the Administrative Agent a completed, current
      certificate, identifying the Borrowing Base Assets against which the Borrowing
      is being requested, setting forth the calculation of Borrowing Base
      Availability, and providing other information concerning the Borrowing Base
      and
      the Borrowers, in the form attached hereto as Exhibit
      D
      (a
“Borrowing Base Certificate”).

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    The
      Borrowers shall give the Administrative Agent and the designated Fronting
      Lender, written notice that it desires to have Letters of Credit (a
“Letter
      of Credit”)
      issued
      hereunder no later than 10:00 A.M., New York, New York time, at least five
      (5)
      Domestic Business Days prior to the date of such issuance. Each such notice
      shall specify (i) the designated Fronting Lender (if other than KeyBank and,
      if
      not KeyBank, such other Fronting Lender shall be subject to the approval of
      the
      Administrative Agent), (ii) the aggregate amount of the requested Letters of
      Credit, (iii) the individual amount of each requested Letter of Credit and
      the
      number of Letters of Credit to be issued, (iv) the date of such issuance (which
      shall be a Domestic Business Day), (v) the name and address of the beneficiary,
      (vi) the expiration date of the Letter of Credit (which in no event shall be
      in
      excess of twelve (12) months from the date of issuance or less than thirty
      (30)
      days prior to the Maturity Date), (vii) the purpose and circumstances for which
      such Letter of Credit is being issued, (viii) the terms upon which such Letter
      of Credit may be drawn down (which terms shall be approved by the Fronting
      Lender), (ix) the Total Available Commitments, (x) the Borrowing Base Assets
      against which the issuance of the Letter(s) of Credit is being requested and
      the
      Borrowing Base Value of such Borrowing Base Assets (taking into consideration
      the amount of all Borrowings and Letter of Credit Usage outstanding with respect
      to such Borrowing Base Assets), including a certification from the chief
      financial officer or chief accounting officer of NorthStar setting forth in
      reasonable detail the manner by which the foregoing calculations have been
      made,
      and (xi) the Outstanding Balance. Together with the notice to the Administrative
      Agent as specified immediately above, the Borrowers shall deliver to the
      Administrative Agent a completed, current Borrowing Base Certificate stating
      that, after taking into account the issuance of any such Letter(s) of Credit,
      the Borrowers shall be in full compliance with all of the covenants contained
      in
      Section 5.8 of this Agreement and that the requirements with respect to the
      Borrowing Base Values shall be met. Each such notice may be revoked
      telephonically by Borrowers to each of the applicable Fronting Lender and the
      Administrative Agent any time prior to the date of issuance of the Letter of
      Credit by the applicable Fronting Lender, provided such revocation is confirmed
      in writing by Borrowers to Fronting Lender and the Administrative Agent within
      one (1) Domestic Business Day by facsimile. No later than 10:00 A.M. New York,
      New York time on the date that is five (5) Domestic Business Days prior to
      the
      date of issuance, Borrowers shall specify a precise description of the documents
      and the verbatim text of any certificate to be presented by the beneficiary
      of
      such Letter of Credit, which if presented by such beneficiary prior to the
      expiration date of the Letter of Credit would require Fronting Lender to make
      a
      payment under the Letter of Credit; provided that Fronting Lender may, in its
      reasonable judgment, require reasonable changes in any such documents and
      certificates only in conformity with changes in customary and commercially
      reasonable practice or law and provided further, that no Letter of Credit shall
      require payment against a conforming draft to be made thereunder on the
      following Domestic Business Day that such draft is presented if such
      presentation is made later than 10:00 A.M. New York, New York time (except
      that
      if the beneficiary of any Letter of Credit requests at the time of the issuance
      of its Letter of Credit that payment be made on the same Domestic Business
      Day
      against a conforming draft, such beneficiary shall be entitled to such a same
      day draw, provided such draft is presented to the applicable Fronting Lender
      no
      later than 10:00 A.M. New York, New York time and provided further that, prior
      to the issuance of such Letter of Credit, Borrowers shall have requested to
      Fronting Lender and the Administrative Agent that such beneficiary shall be
      entitled to a same day draw). In determining whether to pay on such Letter
      of
      Credit, Fronting Lender shall be responsible only to determine that the
      documents and certificates required to be delivered under the Letter of Credit
      have been delivered and that they comply on their face with the requirements
      of
      that Letter of Credit.

     

    Section
      2.3 Notice
      to Lenders; Funding of Loans.

     

    (a) Upon
      receipt of a notice from Borrowers in accordance with Section 2.2 hereof (each
      such notice being a “Notice
      of Committed Borrowing”),
      the
      Administrative Agent shall, on the date such Notice of Committed Borrowing
      is
      received by the Administrative Agent, notify each Lender of the contents thereof
      and of such Lender’s share of such Borrowing, of the interest rate determined
      pursuant thereto and the Interest Period(s) (if different from those requested
      by the Borrowers) and (unless such Notice of Committed Borrowing is for the
      issuance of a Letter of Credit) such Notice of Committed Borrowing shall not
      thereafter be revocable by the Borrowers, except as is otherwise specifically
      provided for in this Agreement.

     

    
      
        
        

      

      
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    (b) Not
      later
      than 1:00 p.m. (New York, New York time) on the date of each Borrowing as
      indicated in the Notice of Committed Borrowing, each Lender shall (except with
      respect to Notices of Committed Borrowing for issuances of Letters of Credit)
      make available its share of such Borrowing in Federal funds immediately
      available in New York, New York, to the Administrative Agent at its address
      referred to in Section 9.1. If Borrowers have requested the issuance of a Letter
      of Credit, no later than 12:00 Noon (New York, New York time) on the date of
      such issuance as indicated in the Notice of Committed Borrowing, Fronting Lender
      shall issue such Letter of Credit in the amount so requested and deliver the
      same to Borrower, with a copy thereof to the Administrative Agent. Immediately
      upon the issuance of each Letter of Credit by Fronting Lender, such Fronting
      Lender shall be deemed to have sold and transferred to each other Lender, and
      each such other Lender shall be deemed to, and hereby agrees to, have
      irrevocably and unconditionally purchased and received from Fronting Lender,
      without recourse or warranty, an undivided interest and a participation in
      such
      Letter of Credit, any drawing thereunder, and the obligations of Borrowers
      hereunder with respect thereto, and any security therefor or guaranty pertaining
      thereto, in an amount equal to such Lender’s ratable share thereof (based upon
      the ratio its Commitment bears to the aggregate of all Commitments). Upon any
      change in any of the Commitments in accordance herewith, there shall be an
      automatic adjustment to such participations to reflect such changed shares.
      The
      applicable Fronting Lender shall have the primary obligation to fund any and
      all
      draws made with respect to such Letter of Credit notwithstanding any failure
      of
      a participating Lender to fund its ratable share of any such draw. Unless the
      Administrative Agent determines that any applicable condition specified in
      Article III has not been satisfied, the Administrative Agent will instruct
      the
      applicable Fronting Lender to make such Letter of Credit available to the
      Borrowers and such Fronting Lender shall make such Letter of Credit available
      to
      the Borrowers at the Borrowers’ aforesaid address on the date of the issuance of
      such Letter of Credit. Without in any way implying a right of Fronting Lender
      not to issue a Letter of Credit as provided for herein, if a Fronting Lender
      shall fail to issue a Letter of Credit (notwithstanding that the applicable
      conditions specified in Article III have been satisfied), the Borrowers may
      designate a substitute Fronting Lender, provided that the notice periods set
      forth in Section 2.2(b) above shall begin anew.

     

    (c) Unless
      the Administrative Agent shall have received notice from a Lender prior to
      the
      date of any Borrowing that such Lender will not make available to the
      Administrative Agent such Lender’s share of such Borrowing, the Administrative
      Agent may assume that such Lender has made such share available to the
      Administrative Agent on the date of such Borrowing in accordance with subsection
      (b) of this Section 2.3 and the Administrative Agent may, in reliance upon
      such
      assumption, but shall not be obligated to, make available to the Borrowers
      on
      such date a corresponding amount on behalf of such Lender. If and to the extent
      that such Lender shall not have so made such share available to the
      Administrative Agent, such Lender and, without prejudice with respect to its
      rights and remedies against such Lender, the Borrowers, severally agree to
      repay
      to the Administrative Agent, within one (1) Domestic Business Day following
      receipt of demand, such corresponding amount together with interest thereon,
      for
      each day from the date such amount is made available to the Borrowers until
      the
      date such amount is repaid to the Administrative Agent, at (i) in the case
      of
      the Borrowers, a rate per annum equal to the interest rate applicable thereto
      pursuant to Section 2.6 and (ii) in the case of such Lender, the Federal Funds
      Rate. If such Lender shall repay to the Administrative Agent such corresponding
      amount, such amount so repaid shall constitute such Lender’s Loan included in
      such Borrowing for purposes of this Agreement. If at any time, any Lender shall
      fail to make available to the Administrative Agent such Lender’s share of any
      such Borrowing, as provided for in this Section 2.3(c), the Borrowers shall
      have
      the right, upon five (5) Domestic Business Day’s notice to the Administrative
      Agent to either (x) cause a bank, reasonably acceptable to the Administrative
      Agent, to offer to purchase the Commitments of such Lender for an amount equal
      to such Lender’s outstanding Committed Loans, and to become a Lender hereunder,
      which offer such Lender is hereby required to accept, or (y) to repay in full
      all Committed Loans then outstanding of such Lender, together with interest
      and
      all other amounts due thereon, upon which event, such Lender’s Commitment shall
      be deemed to be cancelled pursuant to Section 2.11(c) and the Facility Amount
      shall be reduced by a corresponding amount.

     

    
      
        
        

      

      
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    Section
      2.4 Notes.

     

    (a) The
      Committed Loans of each Lender shall be evidenced by a single Note payable to
      the order of such Lender for the account of its Applicable Lending
      Office.

     

    (b) Each
      Lender may, by notice to the Borrowers and the Administrative Agent, request
      that its Committed Loans be evidenced by a separate Note in an amount equal
      to
      the aggregate unpaid principal amount of such Committed Loans. Any additional
      costs incurred by the Administrative Agent, the Borrowers or the Lenders in
      connection with preparing such a Note shall be at the sole cost and expense
      of
      the Lender requesting such Note. In the event any Committed Loans evidenced
      by
      such a Note are paid in full prior to the Maturity Date, any such Lender shall
      return such Note to the Borrowers. Each such Note shall be in substantially
      the
      form of Exhibit
      A
      hereto
      with appropriate modifications to reflect the fact that it evidences solely
      Loans of the relevant type. Each reference in this Agreement to the
“Note”
of
      such
      Lender shall be deemed to refer to and include any or all of such Notes, as
      the
      context may require.

     

    (c) Upon
      receipt of each Lender’s Note pursuant to Section 3.1(a), the Administrative
      Agent shall forward such Note to such Lender. Each Lender shall record in its
      records the date, amount, type and maturity of each Loan made by it and the
      date
      and amount of each payment of principal made by the Borrowers with respect
      thereto, and may, if such Lender so elects in connection with any transfer
      or
      enforcement of its Note, endorse on the appropriate schedule appropriate
      notations to evidence the foregoing information with respect to each such Loan
      then outstanding; provided
      that the
      failure of any Lender to make any such recordation or endorsement shall not
      affect the obligations of the Borrowers hereunder or under the Notes. Each
      Lender is hereby irrevocably authorized by the Borrowers so to endorse its
      Note
      and to attach to and make a part of its Note a continuation of any such schedule
      as and when required.

     

    (d) The
      Loans
      shall mature, and the remaining principal amount thereof shall be due and
      payable by the Borrowers, on the Maturity Date. 

     

    (e) There
      shall be no more than six (6) Interest Periods applicable to the LIBOR Loans
      outstanding at any one time. Notwithstanding the foregoing, subject to the
      approval of the Administrative Agent, in the event the Borrowers wish to combine
      one or more LIBOR Loans into a single Interest Period, the Borrowers may from
      time to time be entitled to select an Interest Period of less than one month,
      with interest at a rate per annum equal to the sum of (i) the Adjusted London
      Interbank Offered Rate on the date of determination for an Interest Period
      of
      one (1) month plus
      (ii) the
      Applicable Margin for LIBOR Loans on such date of determination.

     

    Section
      2.5 Letters
      of Credit.

     

    (a) Subject
      to the terms contained in this Agreement and the other Loan Documents, upon
      the
      receipt of a Notice of Committed Borrowing
      requesting the issuance of a Letter of Credit, Fronting Lender shall issue
      a
      Letter of Credit
      or
      Letters of Credit in such form as is reasonably acceptable to Borrowers, in
      an
      aggregate amount equal to the amount requested, provided that after the issuance
      of such Letters of Credit, (i)
      the
      aggregate amount of issued and outstanding Letters of Credit shall not exceed
      Ten
      Million Dollars ($10,000,000), and (ii) the Letter of Credit Usage, when added
      to the aggregate principal amount of the Committed Loans outstanding, shall
      not
      exceed the lesser of (y) the Total Available Commitments, and (z)
      the
      Facility Amount. Fronting Lender shall promptly notify Administrative Agent
      and
      each Lender of the issuance of any such Letter of Credit, together with the
      amount thereof, simultaneously therewith.

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    (b) Each
      Letter of Credit shall be issued in the minimum aggregate amount of One Million
      Dollars ($1,000,000) or any amount in excess thereof.

     

    (c) In
      the
      event of any request for a drawing under any Letter of Credit by the beneficiary
      thereunder, Fronting Lender shall promptly notify Borrowers and the
      Administrative Agent (and the Administrative Agent shall promptly notify each
      Lender thereof) on or before the date on which Fronting Lender intends to honor
      such drawing, and, except as provided in this subsection (c), Borrowers shall
      reimburse Fronting Lender, in immediately available funds, on the same day
      on
      which such drawing is honored in an amount equal to the amount of such drawing.
      Notwithstanding anything contained herein to the contrary, however, unless
      Borrowers shall have notified the Administrative Agent and Fronting Lender
      prior
      to 10:00 a.m. (New York, New York time) on the date of such drawing (provided
      that the same shall be a Domestic Business Day) that Borrowers intend to
      reimburse Fronting Lender for the amount of such drawing with funds other than
      the proceeds of the Loans, Borrowers shall be deemed to have timely given a
      Notice of Committed Borrowing pursuant to Section 2.2 to the Administrative
      Agent, requesting a Borrowing of Alternate Base Rate Loans on the date on which
      such drawing is honored and in an amount equal to the amount of such drawing.
      Each Lender shall, in accordance with Section 2.3(b), make available its share
      of such Borrowing to the Administrative Agent, the proceeds of which shall
      be
      applied directly by the Administrative Agent to reimburse Fronting Lender for
      the amount of such draw. In the event that any Lender fails to make available
      to
      Fronting Lender the amount of such Lender’s participation on the date of a
      drawing, Fronting Lender shall be entitled to recover such amount on demand
      from
      such Lender together with interest at the Federal Funds Rate commencing on
      the
      date of drawing.

     

    (d) If,
      after
      the date hereof, any change in any law or regulation or in the interpretation
      thereof by any court or administrative or governmental authority charged with
      the administration thereof shall either (a) impose, modify or deem applicable
      any reserve, special deposit or similar requirement against letters of credit
      issued by, or assets held by, or deposits in or for the account of, or
      participations in any letter of credit, upon any Lender (including Fronting
      Lender) or (b) impose on any Lender any other condition regarding this Agreement
      or such Lender (including Fronting Lender) as it pertains to the Letters of
      Credit or any participation therein and the result of any event referred to
      in
      the preceding clause (a) or (b) shall be to increase the cost to the Fronting
      Lender or any Lender of issuing or maintaining any Letter of Credit or
      participating therein then the Borrowers shall pay to the Fronting Lender or
      such Lender, upon written demand therefor to the Borrowers from the
      Administrative Agent (provided such demand is received by the Borrowers within
      one hundred twenty (120) days following the date on which such increased cost
      becomes effective as against the Fronting Lender or such Lender), such
      additional amounts as shall be required to compensate the Fronting Lender or
      such Lender for such increased costs or reduction in amounts received or
      receivable hereunder together with interest thereon at the Federal Funds Rate
      plus the Applicable Margin on Alternate Base Rate Loans at such time. The amount
      specified in the written demand shall be conclusive in the absence of
      demonstrable error.

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

    (e) Borrower
      hereby agrees to protect, indemnify, pay and save Fronting Lender harmless
      from
      and against any and all actual claims, demands, liabilities, damages, losses,
      costs, charges and expenses (including reasonable, actual attorneys’ fees and
      disbursements) which Fronting Lender may incur or be subject to as a result
      of
      (i) the issuance of the Letters of Credit, other than as a result of the gross
      negligence or willful misconduct of Fronting Lender or (ii) the failure of
      Fronting Lender to honor a drawing under any Letter of Credit as a result of
      any
      act or omission, whether rightful or wrongful, of any present or future de
      jure
      or de facto government or governmental authority (collectively, “Governmental
      Acts”).
      As
      between Borrowers or any Fronting Lender, Borrowers assume all risks of the
      acts
      and omissions of, or misuses of the Letters of Credit issued by Fronting Lender
      by, the beneficiaries of such Letters of Credit. In furtherance and not in
      limitation of the foregoing, Fronting Lender shall not be responsible (i) for
      the form, validity, sufficiency, accuracy, genuineness or legal effect of any
      document submitted by any party in connection with the application for and
      issuance of such Letters of Credit, even if it should in fact prove to be in
      any
      and all respects invalid, insufficient, inaccurate, fraudulent or forged unless
      the Fronting Lender’s payment of under such Letter of Credit constitutes gross
      negligence or willful misconduct; (ii) for the validity or insufficiency of
      any
      instrument transferring or assigning or purporting to transfer or assign any
      such Letter of Credit or the rights or benefits thereunder or proceeds thereof,
      in whole or in part, which may prove to be invalid or ineffective for any
      reason; (iii) for failure of the beneficiary of any such Letter of Credit to
      comply fully with conditions required in order to draw upon such Letter of
      Credit unless the Fronting Lender’s acquiescence to such noncompliance
      constitutes gross negligence or willful misconduct; (iv) for errors, omissions,
      interruptions or delays in transmission or delivery of any message, by mail,
      cable, telegraph, telex, facsimile transmission, or otherwise; (v) for errors
      in
      interpretation of any technical terms; (vi) for any loss or delay in the
      transmission or otherwise of any documents required in order to make a drawing
      under any such Letter of Credit or of the proceeds thereof; (vii) for the
      misapplication by the beneficiary of any such Letter of Credit of the proceeds
      of such Letter of Credit; and (viii) for any consequence arising from causes
      beyond the control of Fronting Lender including any Government Acts. None of
      the
      above shall affect, impair or prevent the vesting of Fronting Lender’s rights
      and powers hereunder. In furtherance and extension and not in limitation of
      the
      specific provisions hereinabove set forth, any action taken or omitted by
      Fronting Lender under or in connection with the Letters of Credit issued by
      it
      or the related certificates, if taken or omitted in good faith, shall not put
      Fronting Lender under any resulting liability to the Borrowers.

     

    (f) If
      Fronting Lender or the Administrative Agent is required at any time, pursuant
      to
      any bankruptcy, insolvency, liquidation or reorganization law or otherwise,
      to
      return to any Borrower any reimbursement by any Borrower of any drawing under
      any Letter of Credit, each Lender shall pay to Fronting Lender or the
      Administrative Agent, as the case may be, its share of such payment, but without
      interest thereon unless Fronting Lender or the Administrative Agent is required
      to pay interest on such amounts to the person recovering such payment, in which
      case with interest thereon, computed at the same rate, and on the same basis,
      as
      the interest that Fronting Lender or the Administrative Agent is required to
      pay.

     

    
      
        
        

      

      
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    Section
      2.6 Method
      of Electing Interest Rates.

     

    (a) The
      Loans
      included in each Borrowing shall bear interest initially at the type of rate
      specified by the Borrowers in the applicable
      Notice of Committed Borrowing. Thereafter, the Borrowers may from time to time
      elect to change or continue the type of interest rate borne by each Group of
      Loans (subject in each case to the provisions of Article VIII), as
      follows:

     

    (i) if
      such
      Loans are Alternate Base Rate Loans, the Borrowers may elect to convert such
      Loans to LIBOR Loans as of any LIBOR Business Day; or

     

    (ii) if
      such
      Loans are LIBOR Loans, the Borrowers may elect to convert such Loans to
      Alternate Base Rate Loans or elect to continue such Loans as LIBOR Loans for
      an
      additional Interest Period, in each case effective on the last day of the then
      current Interest Period applicable to such Loans, or on such other date
      designated by Borrowers in the Notice of Interest Rate Election, provided
      Borrowers shall pay any losses pursuant to Section 2.13.

     

    Each
      such
      election shall be made by delivering a notice (a “Notice
      of Interest Rate Election”)
      to the
      Administrative Agent at least three (3) LIBOR Business Days before the
      conversion or continuation selected in such notice is to be effective. A Notice
      of Interest Rate Election may, if it so specifies, apply to only a portion
      of
      the aggregate principal amount of the relevant Group of Loans; provided
      that (i)
      such portion is allocated ratably among the Loans comprising such Group, (ii)
      the portion to which such Notice of Interest Rate Election applies, and the
      remaining portion to which it does not apply, are each $500,000 or any larger
      multiple of $100,000, (iii) there shall be no more than six (6) Interest Periods
      applicable to the LIBOR Loans outstanding at any one time, (iv) no Loan may
      be
      continued as, or converted into, a LIBOR Loan when any Event of Default has
      occurred and is continuing, and (v) no Interest Period shall extend beyond
      the
      Maturity Date.

     

    (b) Each
      Notice of Interest Rate Election shall specify:

     

    (i) the
      Group
      of Loans (or portion thereof) to which such notice applies;

     

    (ii) the
      date
      on which the conversion or continuation selected in such notice is to be
      effective, which shall comply with the applicable clause of subsection (a)
      above;

     

    (iii) if
      the
      Loans comprising such Group of Loans are to be converted, the new type of Loans
      and, if such new Loans are LIBOR Loans, the duration of the initial Interest
      Period applicable thereto; and

     

    (iv) if
      such
      Loans are to be continued as LIBOR Loans for an additional Interest Period,
      the
      duration of such additional Interest Period.

     

    Each
      Interest Period specified in a Notice of Interest Rate Election shall comply
      with the provisions of the definition of Interest Period.

     

    
      
        
        

      

      
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    (c) Upon
      receipt of a Notice of Interest Rate Election from the Borrowers pursuant to
      subsection (a) above, the Administrative Agent shall notify each Lender the
      same
      day as it receives such Notice of Interest Rate Election of the contents
      thereof, the interest rates determined pursuant thereto and the Interest Periods
      (if different from those requested by the Borrowers) and such Notice of Interest
      Rate Election shall not thereafter be revocable by the Borrowers. If the
      Borrowers fail to deliver a timely Notice of Interest Rate Election to the
      Administrative Agent for any Group of LIBOR Loans, such Loans shall be converted
      into a LIBOR Loan with an Interest Period applicable thereto of one (1)
      month.

     

    Section
      2.7 Interest
      Rates.

     

    (a) Each
      Alternate Base Rate Loan shall bear interest on the outstanding principal amount
      thereof, for each day from the date such Loan is made until the date it is
      repaid or converted into a LIBOR Loan pursuant to Section 2.6 or at the Maturity
      Date, at a rate per annum equal to the sum of the Applicable Margin for
      Alternate Base Rate Loans for such day plus the Alternate Base Rate. Such
      interest shall be payable for each Interest Period on each Interest Payment
      Date.

     

    (b) Each
      LIBOR Loan shall bear interest on the outstanding principal amount thereof,
      for
      each day during the Interest Period applicable thereto, at a rate per annum
      equal to the sum of the Applicable Margin for LIBOR Loans for such day plus
      the
      Adjusted London Interbank Offered Rate applicable to such Interest Period.
      Such
      interest shall be payable for each Interest Period on each Interest Payment
      Date.

     

    The
      “Adjusted
      London Interbank Offered Rate”
      applicable to a particular Interest Period shall mean a rate per annum equal
      to
      the product arrived at by multiplying the London Interbank Offered Rate
      applicable to such Interest Period by a fraction (expressed as a decimal),
      the
      numerator of which shall be the number one and the denominator of which shall
      be
      the number one minus the aggregate reserve percentages (expressed as a decimal)
      from time to time established by the Board of Governors of the Federal Reserve
      System of the United States and any other banking authority to which the
      Administrative Agent is now or hereafter subject, including, but not limited
      to,
      any reserve on Eurocurrency Liabilities as defined in Regulation D of the Board
      of Governors of the Federal Reserve System of the United States at the ratios
      provided in such Regulation from time to time, it being agreed that each LIBOR
      Loan shall be deemed to constitute Eurocurrency Liabilities, as defined by
      such
      Regulation, and it being further agreed that such Eurocurrency Liabilities
      shall
      be deemed to be subject to such reserve requirements without benefit of or
      credit for prorations, exceptions or offsets that may be available to the
      Administrative Agent from time to time under such Regulation and irrespective
      of
      whether the Administrative Agent actually maintains all or any portion of such
      reserve.

     

    The
      “London
      Interbank Offered Rate”
      applicable to a particular Interest Period shall mean a rate per annum equal
      to
      the rate for U.S. dollar deposits with maturities comparable to such Interest
      Period as shown in Dow Jones Markets (formerly Telerate) (Page 3750) as of
      11:00
      a.m., London time, two (2) LIBOR Business Days prior to the commencement of
      such
      Interest Period; provided,
      however,
      that if
      such rate does not appear on Dow Jones Markets, the “London Interbank Offered
      Rate” applicable to a particular Interest Period shall mean a rate per annum
      equal to the rate at which U.S. dollar deposits in an amount approximately
      equal
      to the applicable LIBOR Loan(s), and with maturities comparable to the last
      day
      of the Interest Period with respect to which such London Interbank Offered
      Rate
      is applicable, are offered in immediately available funds in the London
      Interbank Market to the London office of the Administrative Agent by leading
      banks in the Eurodollar market at 11:00 a.m., London time, two (2) LIBOR
      Business Days prior to the commencement of the Interest Period to which such
      London Interbank Offered Rate is applicable.

     

    
      
        
        

      

      
        -31-

        
          

        

      

      
        
        

      

    

    (c) In
      the
      event that, and for so long as, any Event of Default shall have occurred and
      be
      continuing, the outstanding principal amount of the Committed Loans, and, to
      the
      extent permitted by applicable law, overdue interest in respect of all Committed
      Loans shall bear interest at the annual rate equal to the sum of three percent
      (3%) plus the rate otherwise applicable to the Loans (the “Default
      Rate”).
      Any
      amounts due and unpaid hereunder shall be payable upon demand
      therefor.

     

    (d) The
      Administrative Agent shall determine each interest rate applicable to the
      Committed Loans hereunder. The Administrative Agent shall give prompt notice
      to
      the Borrowers and the Lenders of each rate of interest so determined, and its
      determination thereof shall be conclusive in the absence of demonstrable error.
      The Administrative Agent shall send an invoice to the Borrowers setting forth
      the interest due at least five (5) Domestic Business Days prior to any Interest
      Payment Date, provided that failure to do so shall not affect the Borrowers’
obligations hereunder to pay interest. It is understood that the Borrowers
      shall
      not be in Default under Section 6.1(a) as to interest for so long as it shall
      pay in accordance with the provisions hereof any amounts indicated on any such
      invoices or revised invoices.

     

    Section
      2.8 Fees.

     

    (a) Fees.
      The
      Borrowers shall pay to the Administrative Agent (when and as due for the benefit
      of KeyBank or KeyBanc Capital Markets, as applicable) the Fees as provided
      for
      in the Fee Letter.

     

    (b) Letter
      of Credit Fee.
      During
      the Term, the Borrowers shall pay to the Administrative Agent, for the account
      of the Lenders in proportion to their interests in respective undrawn issued
      Letters of Credit, a fee (the “Letter
      of Credit Fee”)
      in an
      amount equal to the rate per annum of the Applicable Margin for LIBOR Loans
      on
      the daily average of the amount undrawn and available under issued Letters
      of
      Credit, which fee shall be payable, in arrears, on the first Domestic Business
      Day of each January, April, July and October and on the Maturity Date, provided,
      that, from the occurrence and during the continuance of an Event of Default,
      the
      Letter of Credit Fee shall be increased to such Applicable Margin plus three
      percent (3%) per annum on the daily average amount of such issued and undrawn
      Letters of Credit.

     

    
      
        
        

      

      
        -32-

        
          

        

      

      
        
        

      

    

    (c) Unused
      Commitment Fee.
      During
      the Term, the Borrowers shall pay Administrative Agent for the account of the
      Lenders, ratably in proportion to their respective Commitments and with respect
      to that period of time during any applicable Commitment Fee Quarterly Period
      for
      which any such Lender or Lenders had its respective Commitment or Commitments
      outstanding to the effect that the Unused Commitment Fee shall be duly prorated,
      an annual commitment fee (the “Unused
      Commitment Fee”)
      in
      quarterly amounts equal to the product of (i) the average daily difference
      during the three (3) month period immediately preceding the due date of the
      Unused Commitment Fee installment (each such three month period being the
“Commitment
      Fee Quarterly Period”)
      between (A) the aggregate amount of the Commitments in effect from time to
      time,
      as such may be increased or decreased from time to time pursuant to the terms
      of
      this Agreement, and (B) the Outstanding Balance, multiplied
      by
      (ii)
      thirty basis points (.30%) (or fifteen basis points (.15%) if the resulting
      amount of (A) less (B) is less than fifty percent (50%) of the Facility Amount)
      per annum (in each case based upon a 360 day year) and (iii) the actual number
      of days in such three (3) month period. For purposes of calculating the Unused
      Commitment Fee hereunder, all Letters of Credit outstanding during the
      applicable Commitment Fee Quarterly Period under this Agreement shall be deemed
      to be drawn. The Unused Commitment Fee shall be payable quarterly, in arrears,
      on the first Domestic Business Day of each January, April, July, and October
      during the Term and on the Maturity Date, commencing January 1, 2007.
      Notwithstanding the foregoing, (i) the installment of the Unused Commitment
      Fee
      payable on January 1, 2007 shall be determined for the period commencing on
      the
      Closing Date and ending on December 31, 2006, and (ii) the installment of the
      Unused Commitment Fee payable on the Maturity Date shall be prorated for the
      period commencing on the payment date of the last quarterly installment of
      the
      Unused Commitment Fee and ending on the Maturity Date.

     

    (d) Fronting
      Fee.
      In
      addition to the Letter of Credit Fee payable pursuant to clause (b) above and
      in
      addition to all other fees payable pursuant to the terms of this Agreement,
      the
      Borrowers promise, with respect to each Letter of Credit, to pay to the Fronting
      Lender (i) a letter of credit fronting fee (payable upon issuance or
      extension of each Letter of Credit) equal to the greater of (A) of one-eighth
      of
      one percent (0.125%) on the maximum amount available to be drawn under such
      Letter of Credit (whether or not such maximum amount is then in effect under
      such Letter of Credit), and (B) $500, and (ii) the customary charges from
      time to time of the Fronting Lender with respect to the issuance, amendment,
      transfer, administration, cancellation and conversion of, and drawings under,
      such Letters of Credit. Such fees shall be due and payable on demand, shall
      be
      fully earned when paid and shall not be refundable for any reason whatsoever.
      For purposes of this Section 2.8(d), each renewal of any Letter of Credit,
      including an auto-renewal of any Letter of Credit, shall be considered an
      issuance of a new Letter of Credit.

     

    (e) Fees
      Non-Refundable.
      All
      Fees set forth in this Section 2.8 and in the Fee Letter shall be deemed to
      have
      been earned on the date payment is due in accordance with the provisions hereof
      and thereof and shall be non-refundable. The obligation of the Borrowers to
      pay
      such Fees in accordance with the provisions hereof shall be binding upon the
      Borrowers and shall inure to the benefit of the Administrative Agent and the
      Lenders regardless of whether any Loans are actually made.

     

    Section
      2.9 Maturity
      Date. 
      The term
      (the “Term”)
      of the
      Commitments shall terminate and expire on the Maturity Date. Upon the date
      of
      the termination of the Term, any Committed Loans then outstanding (together
      with
      accrued interest thereon) shall be due and payable on such date.

     

    Section
      2.10 Mandatory
      Prepayment.

     

    (a) If
      at any
      time during the Term, the Outstanding Balance at such time exceeds the amount
      of
      the Total Available Commitments (with the amount of any such excess being
      referred to herein as the “Borrowing
      Base Deficit”),
      then
      the Borrowers shall (provided no Event of Default then exists, in which event
      this Section shall be subject to the terms and provisions of Section 6.2) within
      two (2) Domestic Business Days following the occurrence of such event, pay
      to
      the Administrative Agent in cash, for the account of the Lenders, an amount
      equal to the Borrowing Base Deficit.

     

    
      
        
        

      

      
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    (b) The
      Borrowers shall not sell, or voluntarily permit the full or partial redemption,
      prepayment or refinancing of a Borrowing Base Asset unless, after giving effect
      to such transaction, either (i) Borrowers shall remain in compliance with the
      provisions hereof, including without limitation, the Outstanding Balance will
      not exceed the Total Available Commitments, or (ii) Borrowers shall,
      concurrently with or before such sale, prepay the Committed Loans in an amount
      at least equal to the amount required such that the Outstanding Balance will
      not
      exceed the Total Available Commitments. 

     

    Section
      2.11 Optional
      Prepayments.

     

    (a) The
      Borrowers may, upon at least one (1) Domestic Business Day’s notice to the
      Administrative Agent, prepay any Alternate Base Rate Borrowing in whole at
      any
      time, or from time to time in part in amounts aggregating One Million Dollars
      ($1,000,000) or any larger multiple of One Hundred Thousand Dollars ($100,000),
      by paying the principal amount to be prepaid together with accrued interest
      thereon to the date of prepayment. Each such optional prepayment shall be
      applied to prepay ratably the Committed Loans of the several Lenders included
      in
      such Borrowing.

     

    (b) The
      Borrowers may, upon at least three (3) LIBOR Business Days’ notice to the
      Administrative Agent, prepay any LIBOR Loan as of the last day of the Interest
      Period applicable thereto. Except as provided in Article VIII, the Borrowers
      may
      not prepay all or any portion of the principal amount of any LIBOR Loan prior
      to
      the end of the Interest Period applicable thereto unless the Borrowers shall
      also pay any applicable expenses pursuant to Section 2.13. The Administrative
      Agent shall notify the Borrowers of any amounts due pursuant to Section 2.13
      in
      connection with such prepayment within one (1) LIBOR Business Day after receipt
      of such notice of prepayment from the Borrowers (but subject to the right to
      submit subsequently a corrected statement). Each such optional prepayment shall
      be in the amounts set forth in Section 2.11(a) above and shall be applied to
      prepay ratably the Committed Loans of the Lenders included.

     

    (c) The
      Borrowers may at any time and from time to time cancel all or any part of the
      Commitments in a minimum amount of Ten Million Dollars ($10,000,000) or any
      larger multiple of One Million Dollars ($1,000,000), by the delivery to the
      Administrative Agent of a notice of cancellation within the applicable time
      periods set forth in Sections 2.11(a) and (b) if there are Committed Loans
      then
      outstanding or, if there are no Committed Loans outstanding at such time as
      to
      which the Commitments with respect thereto are being cancelled, upon at least
      one (1) Domestic Business Day’s notice to the Administrative Agent whereupon, in
      either event, all or such portion of the Commitments, as applicable, shall
      terminate as to the Lenders, pro
      rata
      on the
      date set forth in such notice of cancellation, and, if there are any Committed
      Loans then outstanding, Borrowers shall prepay, as applicable, all or such
      portion of Committed Loans outstanding on such date in accordance with the
      requirements of Section 2.11(a) and (b). The Commitments may not be reduced
      to
      an amount less than $25,000,000 except in the event of the termination of the
      Commitments in full. Borrowers shall be permitted to designate in its notice
      of
      cancellation which Committed Loans, if any, are to be prepaid. In no event
      shall
      Borrowers be permitted to cancel Commitments for which a Letter of Credit has
      been issued and is outstanding unless Borrowers return such Letter of Credit,
      undrawn, to the applicable Fronting Lender. The Facility Amount shall be reduced
      by the dollar amount of any reduction of the Commitments pursuant to this
      Section 2.11(c).

     

    
      
        
        

      

      
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    (d) The
      Borrowers may at any time return any undrawn Letters of Credit to the Fronting
      Lender in whole, but not in part, and the Fronting Lender shall promptly cancel
      such returned Letters of Credit and give the Borrowers, the Administrative
      Agent
      and each of the Lenders notice of such cancellation.

     

    (e) Upon
      receipt of a notice of prepayment or cancellation or a return of an undrawn
      Letter of Credit pursuant to this Section, the Administrative Agent shall
      promptly notify each Lender of the contents thereof and of such Lender’s ratable
      share (if any) of such prepayment or cancellation and such notice shall not
      thereafter be revocable by the Borrowers.

     

    (f) Any
      amounts so prepaid pursuant to Section 2.11(a) or (b) may be reborrowed. In
      the
      event Borrowers elect to cancel all or any portion of the Commitments pursuant
      to Section 2.11(c) hereof, such amounts may not be reborrowed.

     

    Section
      2.12 General
      Provisions as to Payments.

     

    (a) The
      Borrowers shall make each payment of interest on the Committed Loans and of
      Fees
      hereunder, not later than 12:00 noon (New York, New York time) on the date
      when
      due, in Federal or other funds immediately available in New York, New York,
      to
      the Administrative Agent at its address referred to in Section 9.1. Such
      payments and all other payments made on account of the Loan Documents to the
      Administrative Agent (provided such payments are made in accordance with terms
      hereof) shall be deemed to have been properly made. The Administrative Agent
      will promptly distribute to each Lender its ratable share of each such payment
      received by the Administrative Agent for the account of the Lenders. Whenever
      any payment of principal of, or interest on the Alternate Base Rate Loans or
      of
      Fees shall be due on a day which is not a Domestic Business Day, the date for
      payment thereof shall be extended to the next succeeding Domestic Business
      Day.
      Whenever any payment of principal of, or interest on, the LIBOR Loans shall
      be
      due on a day which is not a LIBOR Business Day, the date for payment thereof
      shall be extended to the next succeeding LIBOR Business Day unless such LIBOR
      Business Day falls in another calendar month, in which case the date for payment
      thereof shall be the next preceding LIBOR Business Day. If the date for any
      payment of principal is extended by operation of law or otherwise, interest
      thereon shall be payable for such extended time.

     

    (b) Unless
      the Administrative Agent shall have received notice from the Borrowers prior
      to
      the date on which any payment is due to the Lenders hereunder that the Borrowers
      will not make such payment in full, the Administrative Agent may assume that
      the
      Borrowers have made such payment in full to the Administrative Agent on such
      date and the Administrative Agent may, in reliance upon such assumption, cause
      to be distributed to each Lender on such due date an amount equal to the amount
      then due such Lender. If and to the extent that the Borrowers shall not have
      so
      made such payment, each Lender shall repay to the Administrative Agent forthwith
      on demand such amount distributed to such Lender together with interest thereon,
      for each day from the date such amount is distributed to such Lender until
      the
      date such Lender repays such amount to the Administrative Agent, at the Federal
      Funds Rate.

     

    
      
        
        

      

      
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    Section
      2.13 Funding
      Losses.
      If (i)
      the Borrowers make any payment of principal with respect to any LIBOR Loan
      (pursuant to Article II, VI, VIII or otherwise) on any day other than the last
      day of the Interest Period applicable thereto (subject to Section 2.12(a)
      hereof), or (ii) the Borrowers fail to borrow any LIBOR Loans after notice
      has
      been given to any Lender in accordance with Section 2.3(a), or (iii) Borrowers
      shall deliver a Notice of Interest Rate Election specifying that a LIBOR
      Loan shall be converted on a date other than the last day of the then current
      Interest Period applicable thereto, the Borrowers shall reimburse each Lender
      within three
      (3)
      Domestic Business
      Days after Borrowers’ receipt from the Administrative Agent of a certification
      of such Lender of such loss or expense (which shall be delivered by each such
      Lender to Administrative Agent
      for
      delivery to Borrowers not later than ten (10) Domestic Business Days after
      such
      Lender incurred
      such loss or expense) for any resulting actual loss or expense incurred by
      it
      (or by an existing or prospective Participant in the related Loan), including
      (without limitation) any loss incurred in obtaining, liquidating or employing
      deposits
      from
      third parties, but excluding loss of margin for the period after any such
      payment or failure to borrow, provided that
      such
      Lender shall have delivered to Administrative Agent and Administrative Agent
      shall have delivered to the Borrowers
      a certification as to the amount of such
      loss
      or expense, which certification
      shall set forth
      the
      basis for such loss or expense and shall be conclusive in the absence of
      demonstrable error. Failure or delay on the part of any Lender to demand
      compensation within the time periods set forth in this Section shall constitute
      a waiver of such right to demand compensation.

     

    Section
      2.14 Computation
      of Interest and Fees.
      All
      interest and Fees payable under the Loan Documents shall be computed on the
      basis of a year of 360 days and paid for the actual number of days elapsed
      (including the first day but excluding the last day).

     

    Section
      2.15 Use
      of
      Proceeds.
      The
      Borrowers shall use the proceeds of the Loans made hereunder and shall use
      the
      Letters of Credit issued hereunder only for (i) the acquisition, financing
      or
      refinancing of direct or indirect interests in real estate and/or real estate
      debt investments, (ii) the repayment of debt, and (iii) other lawful
      corporate, partnership or limited liability company purposes (exclusive of
      the
      purchase of Margin Stock) (the “Approved
      Uses”).

     

    Section
      2.16 Letter
      of Credit Usage Absolute.
      The
      reimbursement obligations of the Borrowers under this Agreement in respect
      of
      any Letter of Credit shall be unconditional and irrevocable, and shall be paid
      strictly in accordance with the terms of this Agreement and such other agreement
      or instrument under all circumstances, including, without limitation, to the
      extent permitted by law, the following circumstances:

     

    (a) any
      lack
      of validity or enforceability of any Letter of Credit or any other agreement
      or
      instrument relating thereto (collectively, the “Letter
      of Credit Documents”)
      or any
      Loan Document;

     

    (b) any
      change in the time, manner or place of payment of, or in any other term of,
      all
      or any of the obligations of the Borrowers in respect of the Letters of Credit
      or any other amendment or waiver of or any consent by the Borrowers to departure
      from all or any of the Letter of Credit Documents or any Loan Document, provided
      that no Fronting Lender shall consent to any such change or amendment unless
      previously consented to in writing by the Borrowers;

     

    
      
        
        

      

      
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    (c) any
      exchange, release or non-perfection of any collateral, or any release or
      amendment or waiver of or consent to departure from any guaranty, for all or
      any
      of the obligations of the Borrowers in respect of the Letters of
      Credit;

     

    (d) the
      existence of any claim, set-off, defense or other right that the Borrowers
      may
      have at any time against any beneficiary or any transferee of a Letter of Credit
      (or any Persons for whom any such beneficiary or any such transferee may be
      acting), the Administrative Agent or any Lender (other than a defense based
      on
      the gross negligence or willful misconduct of the Administrative Agent, Fronting
      Lender or such Lender) or any other Person, whether in connection with the
      Loan
      Documents, the transactions contemplated hereby or by the Letters of Credit
      Documents or any unrelated transaction;

     

    (e) any
      draft
      or any other document presented under or in connection with any Letter of Credit
      or other Loan Document proving to be forged, fraudulent, invalid or insufficient
      in any respect or any statement therein being untrue or inaccurate in any
      respect; provided that payment by the Fronting Lender under such Letter of
      Credit against presentation of such draft or document shall not have constituted
      gross negligence or willful misconduct of the Fronting Lender;

     

    (f) payment
      by the Fronting Lender against presentation of a draft or certificate that
      does
      not comply with the terms of the Letter of Credit; provided that such payment
      shall not have constituted gross negligence or willful misconduct of the
      Fronting Lender; and

     

    (g) any
      other
      circumstance or happening whatsoever other than the payment in full of all
      obligations hereunder in respect of any Letter of Credit or any agreement or
      instrument relating to any Letter of Credit, whether or not similar to any
      of
      the foregoing, that might otherwise constitute a defense available to, or a
      discharge of, the Borrowers; provided that such other circumstance or happening
      shall not have been the result of gross negligence or willful misconduct of
      the
      Fronting Lender or any issuing Lender.

     

    Section
      2.17 Joint
      and Several Obligations; Limitation on Liability. 

     

    (a) The
      Obligations constitute the joint and several obligations of each Borrower
      hereunder. Each Borrower hereby assumes, guarantees and agrees to discharge
      all
      Obligations of each other Borrower hereunder. Anything herein or in any other
      Loan Document to the contrary notwithstanding, the maximum liability of each
      Borrower hereunder and under the other Loan Documents shall in no event exceed
      the amount for which such Borrower can be liable under applicable federal and
      state laws relating to the insolvency of debtors.

     

    
      
        
        

      

      
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    (b) Notwithstanding
      any payment or payments made by any Borrower (the “paying Borrower”) hereunder
      or any set-off or application of funds of the paying Borrower by any Lender,
      the
      paying Borrower shall not be entitled to be subrogated to any of the rights
      of
      the Administrative Agent or any Lender against the other Borrower(s) or any
      collateral security or guarantee or right of offset held by any Lender for
      the
      payment of the Obligations, nor shall the paying Borrower seek or be entitled
      to
      seek any contribution or reimbursement from the other Borrower in respect of
      payments made by the paying Borrower hereunder, until all amounts owing to
      the
      Administrative Agent and the Lenders by the Borrowers on account of the
      Obligations are paid in full. If any amount shall be paid to the paying Borrower
      on account of such subrogation rights at any time when all of the Obligations
      shall not have been paid in full, such amount shall be held by the paying
      Borrower in trust for the Administrative Agent and the Lenders, segregated
      from
      other funds of the paying Borrower, and shall, forthwith upon receipt by the
      paying Borrower, be turned over to the Administrative Agent in the exact form
      received by the paying Borrower (duly indorsed by the paying Borrower to the
      Administrative Agent, if required), to be applied against the Obligations,
      whether matured or unmatured, in such order as the Administrative Agent may
      determine.

     

    (c) Each
      Borrower shall remain obligated hereunder notwithstanding that, without any
      reservation of rights against such Borrower and without notice to or further
      assent by such Borrower, any demand for payment of any of the Obligations made
      by the Administrative Agent or any Lender may be rescinded by such party and
      any
      of the Obligations continued, and the Obligations, or the liability of any
      other
      party upon or for any part thereof, or any collateral security or guarantee
      therefor or right of offset with respect thereto, may, from time to time, in
      whole or in part, be renewed, extended, amended, modified, accelerated,
      compromised, waived, surrendered or released by the Administrative Agent or
      any
      Lender, and this Agreement, the Notes and the other Loan Documents and any
      other
      documents executed and delivered in connection therewith may be amended,
      modified, supplemented or terminated, in whole or in part, as the Administrative
      Agent (or the Required Lenders, as the case may be) may deem advisable from
      time
      to time, and any collateral security, guarantee or right of offset at any time
      held by the Administrative Agent or any Lender for the payment of the
      Obligations may be sold, exchanged, waived, surrendered or released. Neither
      of
      the Administrative Agent nor any Lender shall have any obligation to protect,
      secure, perfect or insure any Lien at any time held by it as security for the
      Obligations or any property subject thereto. When making any demand hereunder
      against any Borrower, the Administrative Agent or any Lender may, but shall
      be
      under no obligation to, make a similar demand on the other Borrower or any
      guarantor, and any failure by the Administrative Agent or any Lender to make
      any
      such demand or to collect any payments from such other Borrower or any guarantor
      or any release of such other Borrower or guarantor shall not relieve the
      Borrower in respect of which a demand or collection is not made or the Borrower
      not so released of its obligations or liabilities hereunder, and shall not
      impair or affect the rights and remedies, express or implied, or as a matter
      of
      law, of the Administrative Agent or any Lender against any Borrower. For the
      purposes hereof “demand” shall include the commencement and continuance of any
      legal proceedings.

     

    
      
        
        

      

      
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    (d) Each
      Borrower waives any and all notice of the creation, renewal, extension or
      accrual of any of the Obligations and notice of or proof of reliance by the
      Administrative Agent or any Lender upon such Borrower or acceptance of the
      obligations of such Borrower under this Agreement, and the Obligations, and
      any
      of them, shall conclusively be deemed to have been created, contracted or
      incurred, or renewed, extended, amended or waived, in reliance upon the
      obligations of each Borrower under this Agreement; and all dealings between
      the
      Borrowers, on the one hand, and the Administrative Agent and the Lenders, on
      the
      other hand, likewise shall be conclusively presumed to have been had or
      consummated in reliance upon the obligations of all of the Borrowers. Except
      as
      is otherwise specifically provided for in this Agreement or in the other Loan
      Documents, each of the Borrowers waives diligence, presentment, protest, demand
      for payment and notice of default or nonpayment to or upon the other Borrower
      or
      such Borrower with respect to the Obligations. Each Borrower understands and
      agrees that it shall continue to be jointly and severally liable under this
      Agreement and the other Loan Documents without regard to (a) the validity,
      regularity or enforceability of this Agreement, any Note or any other Loan
      Document, any of the Obligations or any other collateral security therefor
      or
      guarantee or, except as is otherwise specifically provided for in this Agreement
      or the other Loan Documents, right of offset with respect thereto at any time
      or
      from time to time held by the Administrative Agent or any Lender, (b) any
      defense, set-off or counterclaim (other than a defense of payment or
      performance) which may at any time be available to or be asserted by the other
      Borrower against the Administrative Agent or any Lender, or (c) any other
      circumstance whatsoever (with or without notice to or knowledge of such Borrower
      or the other Borrower) which constitutes, or might be construed to constitute,
      an equitable or legal discharge of the other Borrower for the Obligations,
      or of
      such Borrower under this Agreement, in bankruptcy or in any other instance.
      When
      pursuing its rights and remedies hereunder against any Borrower, the
      Administrative Agent and any Lender may, but shall be under no obligation to,
      pursue such rights and remedies as it may have against the other Borrower or
      any
      other Person or against any collateral security or guarantee for the Obligations
      or any right of offset with respect thereto, and any failure by the
      Administrative Agent or any Lender to pursue such other rights or remedies
      or to
      collect any payments from the other Borrower or any such other Person or to
      realize upon any such collateral security or guarantee or to exercise any such
      right of offset, or any release of the other Borrower or any such other Person
      or any such collateral security, guarantee or right of offset, shall not relieve
      such Borrower of any liability hereunder, and shall not impair or affect the
      rights and remedies, whether express, implied or available as a matter of law,
      of the Administrative Agent and the Lenders against such Borrower.

     

    Section
      2.18 Increase
      in Facility Amount.

     

    (a) Request
      for Increase.
      Provided there exists no Default or Event of Default, upon notice to the
      Administrative Agent (which shall promptly notify the Lenders), the Borrowers
      may request an increase in the Facility Amount by an aggregate amount not
      exceeding $25,000,000; provided that any such request for an increase shall
      be
      in a minimum amount of $10,000,000. At the time of sending such notice, the
      Borrowers (in consultation with the Administrative Agent) shall specify the
      time
      period within which each Lender is requested to respond as to whether such
      Lender agrees to increase the amount of its Commitment in accordance with
      Section 2.18(b).

     

    (b) Lender
      Elections to Increase.
      Each
      Lender shall notify the Administrative Agent within such time period whether
      or
      not it agrees to increase its Commitment and, if so, by what amount (which
      need
      not be its pro rata share thereof). Any Lender not responding within such time
      period shall be deemed to have declined to increase its Commitment.

     

    
      
        
        

      

      
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    (c) Notification
      by Administrative Agent; Additional Lenders.
      The
      Administrative Agent shall notify the Borrowers and each Lender of the Lenders’
responses to each request made hereunder. To achieve the full amount of a
      requested increase in the Facility Amount and subject to the approval of the
      Administrative Agent and the Fronting Bank (which approvals shall not be
      unreasonably withheld), the Borrowers may also invite additional Eligible
      Assignees to become Lenders pursuant to a joinder agreement in form and
      substance reasonably satisfactory to the Administrative Agent and its
      counsel.

     

    (d) Effective
      Date and Allocations.
      If the
      aggregate Commitments (including due to new Commitments by additional Lenders)
      are increased in accordance with this Section 2.18, the Administrative Agent
      and
      the Borrowers shall determine the effective date (the “Increase
      Effective Date”)
      and
      the final allocation of such increase. The Administrative Agent shall promptly
      notify the Borrowers and the Lenders (including any additional Lenders) of
      the
      final allocation of such increase and the Increase Effective Date.

     

    (e) Conditions
      to Effectiveness of Increase.
      Any
      increase in the Facility Amount pursuant to this Section 2.18 shall be subject
      to the following conditions:

     

    (i) The
      Borrowers shall have paid to (A) the Administrative Agent, such fees as shall
      be
      due to Administrative Agent at such time under the Fee Letter, and (B) to each
      Lender, such fees, if any, as shall have been agreed upon by the Borrower and
      the Administrative Agent.

     

    (ii) As
      of the
      Increase Effective Date, no Default or Event of Default then exists or would
      result from such increase in the Facility Amount (including on a pro forma
      basis
      relative to financial covenant compliance).

     

    (iii) The
      Borrowers shall have delivered to the Administrative Agent a certificate dated
      as of the Increase Effective Date (in sufficient copies for each Lender) (A)
      certifying and attaching the resolutions adopted by the Borrowers approving
      or
      consenting to such increase, and (B) certifying that, before and after giving
      effect to such increase, (1) the representations and warranties of the Borrowers
      in this Agreement and in each other Loan Document are true and correct on and
      as
      of the Increase Effective Date, except to the extent that such representations
      and warranties specifically refer to an earlier date, in which case, to the
      knowledge of the Borrowers, they are true and correct as of such earlier date,
      and except to the extent of changes resulting from transactions contemplated
      and
      permitted by this Agreement and changes occurring in the ordinary course of
      business (in each case to the extent not constituting a Default or Event of
      Default), (2) no Default or Event of Default exists or would result from such
      increase in the Facility Amount (including on a pro forma basis relative to
      financial covenant compliance), and (3) the incurrence of Indebtedness in an
      aggregate principal amount equal to the full Facility Amount after giving effect
      to all Commitment increases and new Commitments would not result in a breach
      of,
      or a default under, any agreement to which any Borrower is a party.

     

    (iv) The
      Borrowers shall prepay any Committed Loans outstanding on the Increase Effective
      Date (and pay any additional amounts required pursuant to Section 2.13) to
      the extent necessary to keep the outstanding Committed Loans ratable with any
      revised Commitment allocations arising from any nonratable increase in the
      Commitments under this Section 2.18. Notwithstanding any provisions of this
      Agreement to the contrary, the Borrowers may borrow from the Lenders providing
      such increase in the Commitments (on a non pro rata basis with Lenders not
      providing such increase) in order to fund such prepayment.

     

    
      
        
        

      

      
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    (v) The
      Borrowers will execute and deliver to each applicable Lender a new Note in
      the
      appropriate stated amount, and will execute and deliver or otherwise provide
      to
      the Administrative Agent and the Lenders such other documents and instruments
      as
      the Administrative Agent or Lenders reasonably may require.

     

    (vi) The
      Subsidiary Guarantors will execute and deliver to the Administrative Agent
      a
      ratification of the Guaranty acknowledging the increase of the Facility Amount.
      

     

    (f) The
      provisions of this Section 2.18 shall not constitute a “commitment” to lend, and
      the Commitments of the Lenders shall not be increased until satisfaction of
      the
      provisions of this Section 2.18 and actual increase of the Commitments as
      provided herein.

     

    Section
      2.19 Revolving
      Facility.
      Except
      as otherwise specifically provided for herein, the Facility is a revolving
      credit facility and, accordingly, subject to the terms, provisions and
      conditions set forth in this Agreement, amounts borrowed and repaid may be
      reborrowed.

     

    Section
      2.20 Delinquent
      Lenders.

     

    (a) If
      for
      any reason any Lender shall fail or refuse to abide by its obligations under
      this Agreement, including without limitation its obligation to make available
      to
      the Administrative Agent its pro rata share of any Loans, expenses or setoff
      (a
“Delinquent
      Lender”)
      and
      such failure is not cured within two (2) Domestic Business Days of receipt
      from
      the Administrative Agent of written notice thereof, then, in addition to the
      rights and remedies that may be available to the Administrative Agent, the
      other
      Lenders, or the Borrowers at law or in equity, and not in limitation thereof,
      (i) such Delinquent Lender’s right to participate in the administration of, or
      decision-making rights related to, the Loans, this Loan Agreement or the other
      Loan Documents shall be suspended during the pendency of such failure or
      refusal, and (ii) a Delinquent Lender shall be deemed to have assigned any
      and
      all payments due to it from the Borrowers, whether on account of outstanding
      Loans, interest, fees or otherwise, to the non-delinquent Lenders for
      application to, and reduction of, their proportionate shares of all outstanding
      Loans until, as a result of application of such assigned payments the Lenders’
respective pro rata shares of all outstanding Loans shall have returned to
      those
      in effect immediately prior to such delinquency and without giving effect to
      the
      nonpayment causing such delinquency. The Delinquent Lender’s decision-making and
      participation rights and rights to payments as set forth in clauses (i) and
      (ii)
      hereinabove shall be restored only upon the payment by the Delinquent Lender
      of
      its pro rata share of any Loans or expenses as to which it is delinquent,
      together with interest thereon at the Default Rate from the date when originally
      due until the date upon which any such amounts are actually paid.

     

    
      
        
        

      

      
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    (b) The
      non-delinquent Lenders shall also have the right, but not the obligation, in
      their respective, sole and absolute discretion, to acquire for no cash
      consideration, (pro rata, based on the respective Commitments of those
      Lenders electing to exercise such right) the Delinquent Lender’s Commitment to
      fund future Loans (the “Future
      Commitment”).
      Upon
      any such purchase of the pro rata share of any Delinquent Lender’s Future
      Commitment, the Delinquent Lender’s share in future Loans and its rights under
      the Loan Documents with respect thereto shall terminate on the date of purchase,
      and the Delinquent Lender shall promptly execute all documents reasonably
      requested to surrender and transfer such interest, including, if so requested,
      an Assignment and Acceptance. Each Delinquent Lender shall indemnify the
      Administrative Agent and each non-delinquent Lender from and against any and
      all
      loss, damage or expenses, including but not limited to reasonable attorneys’
fees and funds advanced by the Administrative Agent or by any non-delinquent
      Lender, on account of a Delinquent Lender’s failure to timely fund its pro rata
      share of a Loan or to otherwise perform its obligations under the Loan
      Documents.

     

    ARTICLE
      III

     

    CONDITIONS

     

    Section
      3.1 Closing.
      The
      closing hereunder shall occur on the date (the “Closing
      Date”)
      when
      each of the following conditions is satisfied (or waived by the Administrative
      Agent and the Lenders), each document to be dated the Closing Date unless
      otherwise indicated:

     

    (a) the
      Borrowers shall have executed and delivered to the Administrative Agent a Note
      for the account of each Lender dated on or before the Closing Date complying
      with the provisions of Section 2.4;

     

    (b) the
      Borrowers, the Administrative Agent and each of the Lenders shall have executed
      and delivered to the Borrowers and the Administrative Agent a duly executed
      original of this Agreement;

     

    (c) the
      Subsidiary Guarantors shall have executed and delivered to the Administrative
      Agent the Guaranty;

     

    (d) the
      Administrative Agent shall have received an opinion from each of Paul, Hastings,
      Janofsky & Walker LLP and Venable LLP, counsel for the Borrowers and the
      Subsidiary Guarantors, with respect to the Borrowers’ and Subsidiary Guarantors’
due authorization,
      execution and delivery of the Loan Documents, the enforceability of the Loan
      Documents, and such other matters reasonably requested by the Administrative
      Agent, such opinion to be reasonably acceptable to the Administrative Agent
      and
      its counsel;

     

    
      
        
        

      

      
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    (e) the
      Administrative Agent shall have received all documents the Administrative Agent
      may reasonably request relating to the existence of the Borrowers and the
      Borrowing Base Entities, the authority for and the validity of this Agreement
      and the other Loan Documents, and any other matters relevant hereto, all in
      form
      and substance satisfactory to the Administrative Agent. Such documentation
      shall
      include, without limitation, (i) the organizational documents of NorthStar,
      as
      amended, modified or supplemented to the Closing Date, certified to be true,
      correct and complete by an officer of NorthStar as of a date not more than
      ten
      (10) days prior to the Closing Date, together with a good standing certificate
      as to NorthStar from the Secretary of State (or the equivalent thereof) of
      Maryland, to be dated not more than forty-five (45) days prior to the Closing
      Date, (ii) the partnership agreement of NorthStar OP, certified as of a date
      not
      more than ten (10) days prior to the Closing Date, together with a certificate
      of existence as to NorthStar OP from the Secretary of State of Delaware, to
      be
      dated not more than forty-five (45) days prior to the Closing Date, (iii) the
      organizational documents of NRFC Sub-REIT, as amended, modified or supplemented
      to the Closing Date, certified to be true, correct and complete by an officer
      of
      NRFC Sub-REIT as of a date not more than ten (10) days prior to the Closing
      Date, together with a good standing certificate as to NRFC Sub-REIT from the
      Secretary of State (or the equivalent thereof) of Maryland, to be dated not
      more
      than forty-five (45) days prior to the Closing Date, (iv) the limited liability
      company agreement of NS Advisors, certified to be true, correct and complete
      by
      an officer of NS Advisors as of a date not more than ten (10) days prior to
      the
      Closing Date, together with a certificate of existence as to NS Advisors from
      the Secretary of State of Delaware, to be dated not more than forty-five (45)
      days prior to the Closing Date, (v) the limited liability company agreement
      of
      NNN Holdings, certified to be true, correct and complete by an officer of NNN
      Holdings as of a date not more than ten (10) days prior to the Closing Date,
      together with a certificate of existence as to NNN Holdings from the Secretary
      of State of Delaware, to be dated not more than forty-five (45) days prior
      to
      the Closing Date, (vi) the limited liability company agreement of NS Holdings
      I,
      certified to be true, correct and complete by an officer of NS Holdings I as
      of
      a date not more than ten (10) days prior to the Closing Date, together with
      a
      certificate of existence as to NS Holdings I from the Secretary of State of
      Delaware, to be dated not more than forty-five (45) days prior to the Closing
      Date, (vii) the limited liability company agreement of NS Holdings II, certified
      to be true, correct and complete by an officer of NS Holdings II as of a date
      not more than ten (10) days prior to the Closing Date, together with a
      certificate of existence as to NS Holdings II from the Secretary of State of
      Delaware, to be dated not more than forty-five (45) days prior to the Closing
      Date, and (viii) the limited liability company agreement of NS Holdings III,
      certified to be true, correct and complete by an officer of NS Holdings III
      as
      of a date not more than ten (10) days prior to the Closing Date, together with
      a
      certificate of existence as to NS Holdings III from the Secretary of State
      of
      Delaware, to be dated not more than forty-five (45) days prior to the Closing
      Date;

     

    (f) the
      Administrative Agent shall have received all certificates, agreements and other
      documents and papers referred to in this Section 3.1 and the Notice of Borrowing
      referred to in Section 3.2, if applicable, unless otherwise specified, in
      sufficient counterparts, satisfactory in form and substance to the
      Administrative Agent in its sole discretion;

     

    (g) the
      Administrative Agent shall have received a certificate or certificates executed
      by an authorized officer of NorthStar as of the Closing Date stating that (A)
      each Consolidated Party is in compliance with all existing financial
      obligations, (B) all governmental, shareholder and third party consents and
      approvals necessary for the Borrowers and the Subsidiary Guarantors to enter
      into the Loan Documents and fully perform thereunder, if any, have been
      obtained, (C) no action, suit, investigation or proceeding is pending or
      threatened in writing in any court or before any arbitrator or governmental
      instrumentality that purports to affect any Consolidated Party or any
      transaction contemplated by the Loan Documents, if such action, suit,
      investigation or proceeding could reasonably be expected to have a Material
      Adverse Effect, and (D) immediately after giving effect to this Loan Agreement,
      the other Loan Documents and all the transactions contemplated therein to occur
      on such date, (1) each of the Borrowers and the Borrowing Base Entities is
      Solvent, (2) no Default or Event of Default exists, (3) all representations
      and
      warranties contained herein and in the other Loan Documents are true and correct
      in all material respects, and (4) the Borrowers are in compliance with each
      of
      the financial covenants set forth in Section 5.8 hereof.

     

    
      
        
        

      

      
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    (h) the
      Borrowers and the Subsidiary Guarantors shall have taken all actions required
      to
      authorize the execution and delivery of this Agreement and the other Loan
      Documents and the performance thereof by the Borrowers and the Subsidiary
      Guarantors;

     

    (i) no
      development or event which has had or could reasonably be expected to have
      a
      Material Adverse Effect shall have occurred since December 31,
      2005;

     

    (j) the
      Administrative Agent shall have received wire transfer instructions in
      connection with the Loans, if any, to be made on the Closing Date;

     

    (k) the
      Administrative Agent shall have received, for its and any other Lender’s
      account, all Fees due and payable pursuant to Section 2.8 hereof or pursuant
      to
      the Fee Letter on or before the Closing Date, and the reasonable fees and
      expenses accrued through the Closing Date of counsel to the Administrative
      Agent
      with respect to the transactions contemplated hereby;

     

    (l) the
      Administrative Agent shall have received copies of all consents, licenses and
      approvals, if any, required in connection with the execution, delivery and
      performance by NorthStar and the applicable Consolidated Subsidiaries, and
      the
      validity and enforceability, of the Loan Documents, or in connection with any
      of
      the transactions contemplated thereby, and such consents, licenses and approvals
      shall be in full force and effect;  

     

    (m) the
      Administrative Agent shall have received all available financial information
      with respect to NorthStar and its Affiliates (other than Morgans Hotels and
      NorthStar Capital Co.) reasonably requested by it or any Lender;

     

    (n) the
      Administrative Agent shall have received a completed current Borrowing Base
      Certificate and a completed current Continuing Compliance Certificate;

     

    (o) the
      Administrative Agent shall have received satisfactory reports (collectively,
      the
“UCC
      Searches”),
      of
      UCC, tax lien, judgment and litigation searches conducted by a search firm
      reasonably acceptable to Administrative Agent with respect to the Borrowers
      and
      the Subsidiary Guarantors, such searches to be conducted by Borrowers’ counsel
      in each of the locations specified by the Administrative Agent;

     

    (p) (i)
      the
      Administrative Agent shall have received evidence that each Real Property
      Subsidiary is a Wholly-Owned Subsidiary of NNN Holdings and (ii) the
      Administrative Agent shall have received evidence that each CDO Retained Asset
      included in the Borrowing Base Assets Pool is beneficially owned by NS Holdings
      I or NS Holdings II or NS Holdings III or a direct Wholly-Owned Subsidiary
      of NS
      Holdings I or NS Holdings II or NS Holdings III (no later than the date that
      is
      thirty (30) days after the Closing Date, the Borrowers also shall deliver to
      the
      Administrative Agent evidence that each CDO Retained Interest is owned of record
      by NS Holdings I or NS Holdings II or NS Holdings III or a direct Wholly-Owned
      Subsidiary of NS Holdings I or NS Holdings II or NS Holdings III); and

     

    
      
        
        

      

      
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    (q) the
      Administrative Agent shall have received a payoff letter, in form and substance
      satisfactory to the Administrative Agent, relating to the Borrowers’ credit
      facility with Bank of America, N.A.

     

    Section
      3.2 Borrowings.
      The
      obligation of any Lender to make a Loan or to participate in any Letter of
      Credit issued by the Fronting Lender
      and the obligation of the Fronting Lender to issue a Letter of Credit is subject
      to the satisfaction of the following conditions (as reasonably determined by
      the
      Administrative Agent):

     

    (a) receipt
      by the Administrative Agent of a Notice of Borrowing as required by Section
      2.2
      and 2.3, together with a certificate or certificates executed by an authorized
      officer of NorthStar as of the date of such Notice of Borrowing as to the
      matters set forth in Section 3.1(g);

     

    (b) receipt
      by the Administrative Agent of a fully completed Borrowing Base Certificate
      stating that, after taking into account any such Loan, the Borrowers shall
      be in
      full compliance with all of the covenants contained in Section 5.8 of this
      Agreement and that the requirements with respect to the Borrowing Base Values
      shall be met;

     

    (c) immediately
      after such Borrowing or issuance of such Letter of Credit, the Outstanding
      Balance will not exceed the aggregate amount of the Total Available
      Commitments;

     

    (d) immediately
      before and after such Borrowing or issuance of such Letter of Credit, no Default
      or Event of Default shall have occurred and be continuing both before and after
      giving effect to the making of such Loans or issuing of such Letters of
      Credit;

     

    (e) the
      representations and warranties of the Borrowers contained in this Agreement
      shall be true and correct in all material respects on and as of the date of
      such
      Borrowing both before and after giving effect to the making of such Loans,
      except to the extent any such representation or warranty relates solely to
      an
      earlier date and except for such exceptions as may be disclosed by the Borrowers
      to the Administrative Agent and approved by the Administrative
      Agent;

     

    (f) no
      law or
      regulation shall have been adopted, no order, judgment or decree of any
      governmental authority shall have been issued, and no litigation shall be
      pending, which does or seeks to enjoin, prohibit or restrain, the making or
      repayment of the Loans, the issuance of any Letter of Credit or any
      participations therein or the consummation of the transactions contemplated
      by
      this Agreement;

     

    (g) no
      event,
      act or condition shall have occurred after the Closing Date which, in the
      reasonable judgment of the Administrative Agent, has had or is likely to have
      a
      Material Adverse Effect; and

     

    (h) immediately
      after such Borrowing or issuance of such Letter of Credit, the aggregate
      outstanding undrawn issued Letters of Credit shall not exceed Ten Million
      Dollars ($10,000,000).

     

    
      
        
        

      

      
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    Each
      Borrowing hereunder shall be deemed to be a representation and warranty by
      the
      Borrowers on the date of such Borrowing as to the facts specified in clauses
      (d), (e), (f), (g) and (h) (to the extent that Borrowers are aware of any
      Material Adverse Effect) of this Section. 

     

    ARTICLE
      IV

     

    REPRESENTATIONS
      AND WARRANTIES

     

    In
      order
      to induce the Administrative Agent and each of the Lenders which is or may
      become a party to this Agreement to make the Loans, the Borrowers make the
      following representations and warranties as of the Closing Date. Such
      representations and warranties shall survive the effectiveness of this
      Agreement, the execution and delivery of the other Loan Documents and the making
      of the Loans.

     

    Section
      4.1 Existence
      and Power.
      NorthStar is a corporation, duly formed, validly existing and in good standing
      as a corporation under the laws of Maryland and has all powers and
      all
      material governmental licenses, authorizations, consents and approvals required
      to own its
      property and assets and carry on its business as now conducted or as it
      presently proposes to conduct
      and has been duly qualified and is in good standing in every jurisdiction
except
      where the failure to have such licenses, authorizations, consents or approvals
      or to be so qualified and/or in good standing is not likely to have a Material
      Adverse Effect.
      NorthStar OP is a limited partnership, duly formed, validly existing and in
      good
      standing as a limited partnership under the laws of Delaware and has all powers
      and all material governmental licenses, authorizations, consents and approvals
      required to own its property and assets and carry on its business as now
      conducted or as it presently proposes to conduct and has been duly qualified
      and
      is in good standing in every jurisdiction except where the failure to have
      such
      licenses, authorizations, consents or approvals or to be so qualified and/or
      in
      good standing is not likely to have a Material Adverse Effect. NRFC Sub-REIT
      is
      a
      corporation, wholly-owned by NorthStar OP and duly formed and validly existing
      as a corporation under the laws of the Sate of Maryland and has all powers
      and
      all material governmental licenses, authorizations, consents and approvals
      required to own its property
      and assets and carry on its business as now conducted or as it presently
      proposes to conduct
      and has been duly qualified and is in good standing in every jurisdiction except
      where the failure to have such licenses, authorizations, consents or approvals
      or to be so qualified and/or in good standing is not likely to have a Material
      Adverse Effect. NS
      Advisors is a limited liability company duly formed and validly existing as
      a
      limited liability company under the laws of the State of Delaware and has all
      powers and all material governmental licenses, authorizations, consents and
      approvals required to own its property and assets and carry on its business
      as
      now conducted or as it presently proposes to conduct and has been duly qualified
      and is in good standing in every jurisdiction except where the failure to have
      such licenses, authorizations, consents or approvals or to be so qualified
      and/or in good standing is not likely to have a Material Adverse Effect. Each
      Borrowing Base Entity is a Wholly-Owned Subsidiary of NRFC Sub-REIT and is
      a
      corporation, limited partnership, limited liability company or trust duly
      organized under the laws of its state of organization and is validly existing
      and in good standing under the laws thereof and has all powers and all material
      governmental licenses, authorizations, consents and approvals required to own
      its property and assets and carry on its business as now conducted or as it
      presently proposes to conduct and has been duly qualified and is in good
      standing in every jurisdiction except where the failure to have such licenses,
      authorizations, consents or approvals or to be so qualified and/or in good
      standing is not likely to have a Material Adverse Effect.

     

    
      
        
        

      

      
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    Section
      4.2 Power
      and Authority.
      Each
      Borrower and Borrowing Base Entity has the trust, corporate, partnership or
      limited liability company power, as applicable, and authority to execute,
      deliver and carry out the terms and provisions
      of each of the Loan Documents to which it is a party and has taken all necessary
      trust,
      corporate, partnership or limited liability company action, as applicable,
      to
      authorize the execution and delivery on behalf of such Borrower or Borrowing
      Base Entity and the performance by such Borrower or Borrowing Base Entity of
      such Loan Documents. Each Borrower and Borrowing Base Entity has duly executed
      and delivered each Loan Document to which it is a
      party
      in accordance with the terms of this Agreement, and each such Loan Document
      constitutes the legal, valid and binding obligation of such Borrower or
      Borrowing Base Entity, enforceable in accordance with its terms, except as
      enforceability may be limited by applicable insolvency, bankruptcy or other
      laws
      affecting creditors rights generally, or general principles of equity, whether
      such enforceability is considered in a proceeding in equity or at
      law.

     

    Section
      4.3 No
      Violation.
      Neither
      the execution, delivery or performance by or on behalf of any Borrower or
      Borrowing Base Entity of the Loan Documents to which it is a party, nor
      compliance by any
      Borrower or Borrowing Base Entity with the terms and provisions thereof nor
      the
      consummation of the transactions contemplated by the Loan Documents, (i) will
      materially contravene any applicable provision of any
      law,
      statute, rule, regulation, order, writ, injunction or decree of any court or
      governmental instrumentality, or (ii) will materially conflict with or result
      in
      any breach of, any of the terms, covenants,
      conditions or provisions of, or constitute a default under, or result in the
      creation or imposition
      of (or the obligation to create or impose) any Lien upon any of the property
      or
      assets of such Borrower or Borrowing Base Entity or any Consolidated
      Subsidiaries pursuant to the terms of any indenture, mortgage, deed of trust,
      or
      other agreement or other instrument to which such Borrower (or of any
      partnership of which such Borrower or Borrowing Base Entity is a partner) or
      any
      Consolidated Subsidiaries is a party or by which it or any of its property
      or
      assets is bound or to which it is subject, or (iii) will cause a
      material default by such Borrower or Borrowing Base Entity under any
      organizational document of any Person in which such
      Borrower or Borrowing Base Entity has an interest, or cause a material default
      under such Borrowers’ limited liability company agreement, partnership
      agreement, trust agreement or articles of incorporation or by-laws, as
      applicable.

     

    Section
      4.4 Financial
      Information

     

    (a) The
      consolidated balance sheet of NorthStar and its Consolidated Subsidiaries dated
      as of December 31, 2005 and the related consolidated statements of NorthStar’s
      financial position for the fiscal year then ended, auditied by Grant Thorton,
      LLP and set forth in NorthStar’s 2005 Form 10-K, a copy of which has been
      delivered to the Administrative Agent, fairly present in all material respects,
      in conformity with GAAP, the consolidated financial position of NorthStar and
      its Consolidated Subsidiaries as of such date and their consolidated results
      of
      operations and cash flows for such fiscal year.

     

    
      
        
        

      

      
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    (b) The
      consolidated statements of NorthStar’s financial position as set forth in
      NorthStar’s 2006 Form 10-Q for the fiscal quarter ended June 30, 2006, a copy of
      which has been delivered to the Administrative Agent, fairly present in all
      material respects, in conformity with GAAP, the consolidated financial position
      of NorthStar and its Consolidated Subsidiaries as of such dates and their
      consolidated results of operations and cash flows for such periods.

     

    (c) Since
      NorthStar’s most recent Form 10-Q, (i) nothing has occurred having a Material
      Adverse Effect, and (ii) NorthStar and the Consolidated Subsidiaries have not
      incurred any material Indebtedness or Contingent Obligation except in the
      ordinary course of business.

     

    Section
      4.5 Litigation.
      There
      is no action, suit, investigation, or proceeding pending against, or to the
      knowledge of
      the
      Borrowers threatened in writing against or affecting, (i) any Borrower, any
      Borrowing Base Entity or any Consolidated
      Subsidiary, (ii) the Loan Documents or any of the transactions contemplated
      by
the
      Loan
Documents
      or (iii) any of their assets, before any court or arbitrator or any governmental
      body, agency or official in which there is a reasonable possibility of an
      adverse decision
      which could, individually, or in the aggregate have a Material Adverse Effect
      or
      which in any manner draws into question the validity of this Agreement or the
      other Loan Documents.

     

    Section
      4.6 Compliance
      with ERISA. With
      respect to each NorthStar Plan, and each Non-NorthStar Plan (but, as to any
      Non-NorthStar Plan, only to the extent that the failure to do so would have
      a
      Material Adverse Effect), each member of the ERISA Group has fulfilled its
      obligations under the minimum funding standards of ERISA and the Code with
      respect
      to each Plan and is in compliance in all material respects with the presently
      applicable provisions
      of ERISA
      and
      the Code with respect to each Plan. With respect to each NorthStar Plan, and
      each Non-NorthStar
      Plan (but, as to any Non-NorthStar Plan, only to the extent that the occurrence
      of any of (i) through (iii) below would cause a Material Adverse Effect), no
      member of the ERISA Group has (i) sought a waiver of the minimum funding
      standard under Section 412 of the Code in respect of any Plan, (ii) failed
      to
      make any contribution or payment to any Plan or Multiemployer Plan or made
      any
      amendment to any Plan,
      which failure to make contribution or payment or making of any amendment has
      resulted or would result in the imposition of a Lien or the posting of a bond
      or
other
      security under ERISA or the Code or (iii) incurred any liability under Title
      IV
      of ERISA other than liability to the PBGC for premiums under Section 4007 of
      ERISA. 

     

    (a) The
      transactions contemplated by the Loan Documents will not constitute a nonexempt
      prohibited transaction (as such term is defined in Section 4975 of the Code
      or
      Section 406 of ERISA) that could subject the Administrative Agent or the Lenders
      to any tax or penalty or prohibited transactions imposed under Section 4975
      of
      the Code or Section 502(i) of ERISA by reason of the assets of any Borrower
      being plan assets within the meaning of the Department of Labor Regulation
      Section 2510.3-101 of Section 401 of ERISA or in connection with any Plan or
      Benefit Arrangement.

     

    Section
      4.7 Borrowing
      Base Assets.
      Each
      and every representation and warranty with respect to (i) any Eligible First
      Mortgage Asset included in the Borrowing Base Assets Pool as set forth on
“Exhibit
      “F”
      hereto
      is true and correct, (ii) any Eligible Property Equity Interest included in
      the
      Borrowing Base Assets Pool as set forth on Exhibit
      “G”
hereto
      is true and correct, (iii) any Eligible Real Estate Security included in the
      Borrowing Base Assets Pool as set forth on Exhibit
      “H”
hereto
      is true and correct, (iv) any Eligible Subordinated Asset included in the
      Borrowing Base Assets Pool as set forth on Exhibit
      “I”
hereto
      is true and correct and (v) any Eligible CDO Retained Asset included in the
      Borrowing Base Assets Pool as set forth on Exhibit
      “J”
hereto
      is true and correct.

     

    
      
        
        

      

      
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    Section
      4.8  Environmental
      Matters.
      In the
      ordinary course of its business, the Borrowers conduct periodic reviews of
      the
      effect of Environmental Laws on the business, operations and properties of
      the
      Borrowers and the Consolidated Subsidiaries, including without limitation,
      the
      Real Property Assets and the Underlying Assets, in the course of which it
      identifies and evaluates associated
      liabilities and costs (including, without limitation, any capital or operating
      expenditures required for
      clean-up or closure of properties presently owned, any capital or operating
      expenditures required
      to achieve or maintain compliance with environmental protection standards
      imposed by law or as a condition of any license, permit or contract, any
related
      constraints on operating activities, and any actual or potential liabilities
      to
      third parties, including
      employees, and any related costs and expenses). On the basis of this review,
      the
      Borrowers have reasonably concluded that such associated liabilities and costs,
      including the costs
      of
      compliance with Environmental Laws, are unlikely to have a Material Adverse
      Effect.

     

    Section
      4.9 Taxes.
      United
      States Federal income tax returns of the Borrowers and the Consolidated
      Subsidiaries have been prepared and filed through the fiscal year ended
December
      31, 2005. The Borrowers and their Consolidated Subsidiaries have filed all
      United States Federal income tax returns and all other material tax returns
      which are required to be filed by
      them
      and have paid all taxes due pursuant to such returns or pursuant to any
      assessment received
      by the Borrowers or any Consolidated Subsidiary. The charges, accruals and
      reserves on
      the
      books of the Borrowers and the Consolidated Subsidiaries in respect of taxes
      or
      other governmental charges are, in the opinion of the Borrowers,
      adequate.

     

    Section
      4.10 Full
      Disclosure.
      All
      information furnished in writing by the Borrowers to the Administrative Agent
      or
      any Lender for purposes of or in connection with this Agreement or any
      transaction contemplated hereby (i) if prepared by the Borrowers or any
      Affiliate of the Borrowers is true and accurate in all material respects on
      the
      date as of which such information is stated or certified and (ii) if prepared
      by
      any Person other than the Borrowers or any Affiliate of the Borrowers, to the
      best of Borrowers’ knowledge, after the Borrowers have conducted reasonable
      investigation with due diligence, is true and accurate in all material respects
      on the date as of which such information is stated or certified; provided,
      that,
      with
      respect to projected financial information, the Borrowers represent and warrant
      only that such information represents the Borrowers expectations regarding
      future performance based upon historical information and reasonable assumptions,
      it being understood, however, that actual results may differ from the projected
      results described in the financial projections. The Borrowers have disclosed
      to
      the Administrative Agent and the Lenders in writing any and all facts which
      have
      or which is likely to have (to the extent the Borrowers can now reasonably
      foresee) a Material Adverse Effect.

     

    Section
      4.11 Solvency(a) .
      On the
      Closing Date and after giving effect to the transactions contemplated by the
      Loan Documents occurring on the Closing Date, each of the Borrowers and the
      Borrowing Base Entities will be Solvent.

     

    
      
        
        

      

      
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    Section
      4.12 Use
      of
      Proceeds; Margin Regulations.
      All
      proceeds of the Loans will be used by the Borrowers and all Letters of Credit
      shall be issued for the Borrowers only in accordance with the provisions hereof.
      No part of the proceeds of any Loan or any Letter of Credit will be used by
      the
      Borrowers to purchase or carry any Margin Stock or to extend
      credit to others for the purpose of purchasing or carrying any Margin Stock.
      Neither the making of any Loan, the issuance of any Letter of Credit, nor the
      use of the proceeds of the foregoing will violate or be inconsistent with the
      provisions of Regulations T, U or X of the Federal Reserve Board.

     

    Section
      4.13 Governmental
      Approvals.
      No
      order, consent, approval, license, authorization, or validation of, or filing,
      recording or registration with, or exemption by, any governmental
      or public body or authority, or any subdivision thereof, is required to
      authorize, or is
      required in connection with the execution, delivery and performance of any
      Loan
      Document or the consummation of any of the transactions contemplated thereby
      other than (i) the filing of a report on form 8-K with the Securities and
      Exchange Commission describing the transactions contemplated hereby, or (ii)
      those that have already
      been duly made or obtained and remain in full force and effect or (iii) those
      which, if not made or obtained, would not have a Material Adverse
      Effect.

     

    Section
      4.14 Investment
      Company Act.
      Neither
      the Borrowers nor any Consolidated Subsidiary is (i) required to register as
      an
“investment
      company”
or
      a
company
      “controlled”
by
      an
“investment
      company”,
      within
      the meaning of the Investment Company
      Act of 1940, as amended, or
      (ii)
subject
      to any other federal or state law or regulation which purports to restrict
      or
      regulate its ability to borrow money.

     

    Section
      4.15 Principal
      Offices.
      As of
      the Closing Date, the principal office, chief executive office and principal
      place of business of each of the Borrowers is 527 Madison Avenue, 16th
      Floor,
      New York, New York 10022. No Borrower shall change its principal
      office or state of formation without having given the Administrative Agent
      at
      least thirty (30) days prior written notice; provided no such notice is required
      in connection with the changing of the Borrowers’ principal office to 399 Park
      Avenue, New York, New York during the second fiscal quarter of 2007.

     

    Section
      4.16 REIT
      Status.
      For its
      first fiscal year and continuously thereafter NorthStar has qualified, and
      NorthStar shall continue to qualify, as a real estate investment trust under
      the
      Code.

     

    Section
      4.17 Qualified
      REIT Subsidiary Status.
      Each of
      NorthStar OP and NRFC Sub-REIT qualify as of the Closing Date, and intend to
      continue to qualify, as a qualified real estate investment subsidiary under
      the
      Code.

     

    Section
      4.18 Patents,
      Trademarks, etc.
      The
      Borrowers have obtained and hold in full force and effect all patents,
      trademarks, servicemarks, trade names, copyrights and other such
      rights, free from burdensome restrictions, which are necessary for the operation
      of its business
      as presently conducted, the impairment of which is likely to have a Material
      Adverse Effect. 

     

    Section
      4.19 No
      Default.
      No
      Event of Default or, to the Borrowers’ knowledge, Default exists under or with
      respect to any Loan Document and the Borrowers are not in default in any
      material respect beyond any applicable grace period under or with respect to
      any
      other material agreement, instrument or undertaking to which it is a party
      or by
      which it or any
      of
      its property is bound in any respect, the existence of which default is likely
      to result in a Material Adverse Effect.

     

    
      
        
        

      

      
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    Section
      4.20 Licenses,
      etc.
      The
      Borrowers have obtained and do hold in full force and effect, all franchises,
      licenses, permits, certificates, authorizations, qualifications, accreditation,
      easements, rights of way and other consents and approvals which are necessary
      for the
      operation of its businesses as presently conducted, the absence of which is
      likely to have a Material Adverse Effect.

     

    Section
      4.21 Compliance
      With Law.
      Each of
      the Borrowers and, to the Borrowers’ knowledge, each of the Borrowing Base
      Assets, are in compliance with all laws, rules, regulations, orders, judgments,
      writs
      and
      decrees, including, without limitation, all building and zoning ordinances
      and
      codes, the failure to comply with which is likely to have a Material Adverse
      Effect.

     

    Section
      4.22 No
      Burdensome Restrictions.
      Except
      as may have been disclosed by the Borrowers in writing to the Administrative
      Agent, no Borrower is a party to any agreement or instrument or subject to
      any
      other obligation or any charter or corporate or partnership
      restriction,
      as the case may be, which, individually or in the aggregate, is likely to have
      a
      Material Adverse Effect.

     

    Section
      4.23 Brokers’
      Fees.
      The
      Borrowers have not dealt with any broker or finder with respect to the
      transactions contemplated by this Agreement or otherwise in connection with
      this
      Agreement, and the Borrowers have not done any act, had any negotiations
or
      conversation, or made any agreements or promises which will in any way create
      or
      give rise to any
      obligation or liability for the payment by the Borrowers of any brokerage fee,
      charge, commission
      or other compensation to any party with respect to the transactions contemplated
      by the
      Loan
      Documents, other than the Fees payable to the Administrative Agent and the
      Lenders, and certain other Persons as previously disclosed in writing to the
      Administrative Agent.

     

    Section
      4.24 Labor
      Matters.
      There
      are no collective bargaining agreements or Multiemployer Plans covering the
      employees of the Borrowers as of the Closing Date and the Borrowers
      have not suffered any strikes, walkouts, work stoppages or other material labor
      difficulty
      within the last five years which, individually or in the aggregate, are likely
      to have a Material Adverse Effect.

     

    Section
      4.25 Insurance.
      As to
      each Borrowing Base Asset (other than Eligible CDO Retained Assets), the
      Borrowers (or a Borrowing Base Entity) maintain (or require that the borrower
      thereunder to maintain) insurance in amounts that a prudent owner of such assets
      would maintain.

     

    Section
      4.26 Organizational
      Documents.
      The
      documents delivered pursuant to Section 3.1(e) constitute, as of the Closing
      Date, all of the organizational documents (together with
      all
      amendments and modifications thereof) of the Borrowers and the Subsidiary
      Guarantors. The Borrowers represent that they
      have
      delivered to the Administrative Agent true, correct and complete copies of
      each
      of the documents described in Section 3.1(e).

     

    
      
        
        

      

      
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    ARTICLE
      V

     

    AFFIRMATIVE
      AND NEGATIVE COVENANTS

     

    The
      Borrowers covenant and agree that, so long as any Lender has any Commitment
      hereunder or any Obligations remain unpaid:

     

    Section
      5.1 Information.
      The
      Borrowers will deliver to the Administrative Agent, in a manner satisfactory
      to
      Administrative Agent:

     

    (a) As
      soon
      as available, and in any event within 90 days after the close of each fiscal
      year of the Consolidated Parties, a consolidated balance sheet and income
      statement of the Consolidated Parties, as of the end of such fiscal year,
      together with related consolidated statements of operations and retained
      earnings and of cash flows for such fiscal year, setting forth in comparative
      form consolidated figures for the preceding fiscal year, all such financial
      information described above to be in reasonable form and detail and audited
      by
      Grant Thorton or such other independent certified public accountants of
      recognized national standing reasonably acceptable to the Administrative Agent
      and whose opinion shall be to the effect that such financial statements have
      been prepared in accordance with GAAP (except for changes with which such
      accountants concur) and shall not be limited as to the scope of the audit or
      qualified as to the status of the Consolidated Parties as a going concern.
      

     

    (b) As
      soon
      as available, and in any event within 45 days after the close of each fiscal
      quarter of the Consolidated Parties (excluding the fourth fiscal quarter),
      a
      consolidated balance sheet and income statement of the Consolidated Parties,
      as
      of the end of such fiscal quarter, together with related consolidated statements
      of operations and retained earnings and of cash flows for such fiscal quarter
      in
      each case setting forth in comparative form consolidated figures for the
      corresponding period of the preceding fiscal year, all such financial
      information described above to be in reasonable form and detail and reasonably
      acceptable to the Administrative Agent, and accompanied by a certificate of
      the
      chief financial officer of NorthStar to the effect that such quarterly financial
      statements fairly present in all material respects the financial condition
      of
      the Consolidated Parties and have been prepared in accordance with GAAP, subject
      to changes resulting from audit and normal year-end audit adjustments and the
      omission of footnotes.

     

    (c) As
      soon
      as available, and in any event (i) within 45 days after the close of each fiscal
      quarter of the Consolidated Parties (excluding the fourth fiscal quarter),
      (ii)
      within 80 days after the close of the fourth fiscal quarter of the Consolidated
      Parties and (iii) at such other times as is required pursuant to the terms
      of
      this Agreement, (A) a fully completed current Borrowing Base Certificate and
      (B)
      a fully completed certificate of the chief financial officer or the chief
      accounting officer of NorthStar (the “Continuing
      Compliance Certificate”)
      in the
      form attached hereto as Exhibit
      “E.”
      

     

    (d) (i)
      within five (5) Domestic Business Days after any officer of any Borrower obtains
      knowledge of any Default, if such Default is then continuing, a certificate
      of
      the chief financial officer, the chief accounting officer, controller, or other
      executive officer of NorthStar setting forth the details thereof and the action
      which the Borrowers are taking or propose to take with respect thereto; and
      (ii)
      promptly and in any event within five (5) Domestic Business Days after the
      Borrowers obtain knowledge thereof, notice of (x) any litigation or governmental
      proceeding pending or threatened against any Borrower or the Borrowing Base
      Assets as to which there is a reasonable possibility of an adverse determination
      and which, if adversely determined, is likely to individually or in the
      aggregate result in a Material Adverse Effect, (y) any other event, act or
      condition which is likely to result in a Material Adverse Effect, and (z) any
      event giving rise to a mandatory prepayment pursuant to Section
      2.10;

     

    
      
        
        

      

      
        -52-

        
          

        

      

      
        
        

      

    

    (e) (i)
      promptly upon the mailing thereof (A) to the shareholders of NorthStar
      generally, copies of all financial statements, reports and proxy statements
      so
      mailed and (B) to the investors in any Eligible CDO, all trustee reports,
      collateral manager reports and other investor information so mailed and (ii)
      promptly upon receipt of knowledge thereof by the Borrowers (A) the breach
      of
      any over-collateralization or interest coverage covenant or requirement under
      any CDO Indenture to which any Affiliate of a Borrower is a party, (B) the
      failure of any scheduled Distribution to be paid when due under any CDO
      Indenture to which any Affiliate (other than Morgans Hotels and NorthStar
      Capital Co.) of a Borrower is a party, or (C) the occurrence of margin calls
      or
      related pay-down requirements being made in any seven day period in respect
      of
      any financing arrangements to which a Borrower or any Affiliate of a Borrower
      is
      a party which, individually or in the aggregate, require the posting of
      collateral or a pay-down of obligations in an amount equal to or greater than
      $15,000,000. 

     

    (f) promptly
      upon the filing thereof, copies of all reports on Forms 10-K and 10-Q (or their
      equivalents) (other than the exhibits thereto, which exhibits will be provided
      upon request therefor by any Lender) which NorthStar shall have filed with
      the
      Securities and Exchange Commission;

     

    (g) if
      and
      when any member of the ERISA Group, with respect to a NorthStar Plan, or a
      Non-NorthStar Plan (but, as to any Non-NorthStar Plan, only to the extent the
      occurrence of any of the following would cause a Material Adverse Effect),
      (i)
      gives or is required to give notice to the PBGC of any “reportable event” (as
      defined in Section 4043 of ERISA) with respect to any Plan which would
      constitute reasonable grounds for a termination of such Plan under Title IV
      of
      ERISA, or knows that the plan administrator of any Plan has given or is required
      to give notice of any such reportable event, a copy of the notice of such
      reportable event given or required to be given to the PBGC; (ii) receives notice
      of complete or partial withdrawal liability under Title IV of ERISA or notice
      that any Multiemployer Plan is in reorganization, is insolvent or has been
      terminated, a copy of such notice; (iii) receives notice from the PBGC under
      Title IV of ERISA of an intent to terminate, impose liability (other than for
      premiums under Section 4007 of ERISA) in respect of, or appoint a trustee to
      administer any Plan, a copy of such notice; (iv) applies for a waiver of the
      minimum funding standard under Section 412 of the Code, a copy of such
      application; (v) gives notice of intent to terminate any Plan under Section
      4041(c) of ERISA, a copy of such notice and other information filed with the
      PBGC; (vi) gives notice of withdrawal from any Plan pursuant to Section 4063
      of
      ERISA, a copy of such notice; or (vii) fails to make any payment or contribution
      to any Plan or Multiemployer Plan or makes any amendment to any Plan that has
      resulted or will result in the imposition of a Lien or the posting of a bond
      or
      other security, a certificate of the chief financial officer or the chief
      accounting officer of NorthStar setting forth details as to such occurrence
      and
      action, if any, which NorthStar or the applicable member of the ERISA Group
      is
      required or proposes to take;

     

    
      
        
        

      

      
        -53-

        
          

        

      

      
        
        

      

    

    (h) promptly
      and in any event within five (5) Domestic Business Days after any Borrower
      obtains actual knowledge of any of the following events, a certificate of
      NorthStar, executed by an officer of NorthStar, specifying the nature of such
      condition, and the Borrowers’ or, if the Borrowers have actual knowledge
      thereof, the Environmental Affiliate’s proposed initial response thereto: (i)
      the receipt by any Borrower, or, if any Borrower has actual knowledge thereof,
      any of the Environmental Affiliates of any written communication, whether from
      a
      governmental authority, citizens group, employee or otherwise, that alleges
      that
      any Borrower, or, if any Borrower has actual knowledge thereof, any of the
      Environmental Affiliates, is not in compliance with applicable Environmental
      Laws, and such noncompliance is likely to have a Material Adverse Effect, (ii)
      any Borrower shall obtain actual knowledge that there exists any Environmental
      Claim pending against any Borrower or any Environmental Affiliate and such
      Environmental Claim is likely to have a Material Adverse Effect or (iii) any
      Borrower obtains actual knowledge of any release, emission, discharge or
      disposal of any Material of Environmental Concern that is likely to form the
      basis of any Environmental Claim against any Borrower or any Environmental
      Affiliate which in any such event is likely to have a Material Adverse
      Effect;

     

    (i) promptly
      and in any event within ten (10) Domestic Business Days after receipt of any
      material notices or correspondence from any company or agent for any company
      providing insurance coverage to any Borrower relating to any loss in excess
      of
      $5,000,000 of the Borrower, copies of such notices and correspondence;
      and

     

    (j) from
      time
      to time such additional information regarding the Borrowing Base Assets or
      the
      financial position or business of the Borrowers, the Borrowing Base Entities
      or
      their Subsidiaries as the Administrative Agent, at the request of any Lender,
      may reasonably request in writing.

     

    Section
      5.2 Payment
      of Obligations.
      The
      Borrowers will pay and discharge, at or before maturity, all of their respective
      material obligations and liabilities including, without limitation, any
      obligation pursuant to any agreement by which it or any of its properties is
      bound and any liabilities, except where such liabilities may be contested
      in good faith by appropriate proceedings, and will maintain in accordance with
      GAAP, appropriate reserves for the accrual of any of the same. 

     

    Section
      5.3 Maintenance
      of Property.
      The
      Borrowers will keep, and will cause each Consolidated Subsidiary to keep, all
      property useful and necessary in its business insured in an
      amount
      not less than a commercially reasonable amount and in good order and repair,
      ordinary wear and tear and loss by condemnation or casualty
      excepted.

     

    Section
      5.4 Conduct
      of Business and Maintenance of Existence.
      Each
      Borrower and Borrowing Base Entity will continue to engage in business of the
      same general type as now conducted by such Borrower
      or Borrowing Base Entity and will not enter into any business which is not
      of
      the same general type as now conducted by such Borrower or Borrowing Base Entity
      (it being understood that a Borrower may enter into new lines of business
      provided such new lines of business do not constitute a material portion of
      the
      Borrower’s business). Each Borrower and Borrowing Base Entity will preserve,
      renew and keep in full force and effect, its trust, corporate, partnership
      or
      limited liability company existence, as applicable, and its respective rights,
      privileges and franchises necessary for the normal conduct of
      business.

     

    
      
        
        

      

      
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    Section
      5.5 Compliance
      with Laws.
      Each
      Borrower and Borrowing Base Entity will comply in all material respects with
      all
      applicable laws, ordinances, rules, regulations, and requirements of
      governmental authorities (including, without limitation, Environmental Laws,
      and
      all federal securities laws) except where the necessity of compliance therewith
      is contested in good faith by appropriate proceedings or where the failure
      to
      comply would not be likely to have a Material Adverse Effect.
      Each
Borrower
      and Borrowing Base Entity shall (i) ensure that no Person having a legal or
      beneficial title to a controlling interest in such Borrower or Borrowing Base
      Entity or a right to acquire such an interest (each an “Owner”)
      shall
      be listed on the Specially Designated Nationals and Blocked Person List or
      other
      similar lists maintained by the Office of Foreign Assets Control (“OFAC”),
      the
      Department of the Treasury or included in any Executive Orders, (ii) not use
      or
      permit the use of the proceeds of the Facility or any other financial
      accommodation from the Administrative Agent or the Lenders to violate any of
      the
      foreign asset control regulations of OFAC or other applicable law, (iii) comply
      with all applicable Bank Secrecy Act laws and regulations, as amended from
      time
      to time, and (iv) otherwise comply with the USA Patriot Act as required by
      federal law.

     

    Section
      5.6 Inspection
      of Books and Records.
      Each
      Borrower and Borrowing Base Entity will keep proper books of record and account
      in which full, true and correct entries shall be made of all
      dealings and
      transactions in relation to its business and activities; and will permit
      representatives of Administrative
      Agent at the expense of the Administrative Agent or the Lender requesting the
      Administrative Agent to conduct such visit and inspection, to visit and inspect
      any of its properties,
      to examine and make abstracts from any of its books and records and to discuss
      its affairs, finances and accounts with its officers and independent public
      accountants, all at such reasonable times, upon reasonable prior notice and
      as
      often as may reasonably be desired,
      but
      conducted in such a manner as to not unreasonably interfere with the conduct
      of
      Borrowers’ or Borrowing Base Entity’s business.

     

    Section
      5.7 Existence.
      Each
      Borrower and Borrowing Base Entity shall do or cause to be done, all things
      necessary to preserve and keep in full force and effect its and the Consolidated
      Subsidiaries’ existence
      and its patents, trademarks, servicemarks, tradenames, copyrights, franchises,
      licenses, permits,
      certificates, authorizations, qualifications, accreditation, easements, rights
      of way and other
      rights, consents and approvals the nonexistence of which is likely to have
      a
      Material Adverse Effect.

     

    Section
      5.8 Financial
      Covenants.
      The
      Borrowers shall comply with the following financial covenants, which covenants
      shall be calculated for NorthStar and its Consolidated Subsidiaries:

     

    (a) Leverage
      Ratio.
      As of
      the end of each fiscal quarter, the Leverage Ratio shall not exceed ninety
      percent (90%). 

     

    (b) Fixed
      Charge Ratio.
      As of
      the end of each fiscal quarter, the Fixed Charge Ratio shall not be less than
      1.30 to 1.00.

     

    (c) Consolidated
      Tangible Net Worth.
      As of
      the end of each fiscal quarter, the Consolidated Tangible Net Worth shall be
      greater than or equal to the sum of (i) $85% of Consolidated Tangible Net Worth
      at closing, plus
      (ii) an
      amount equal to 75.0% of the Net Equity Proceeds received by the Consolidated
      Parties in connection with any Equity Issuance subsequent to the Closing Date
      calculated on a cumulative basis as of the end of each fiscal quarter of the
      Consolidated Parties following the Closing Date.

     

    
      
        
        

      

      
        -55-

        
          

        

      

      
        
        

      

    

    (d) Recourse
      Debt to Total Assets.
      As of
      the end of each fiscal quarter, the ratio of (i) the Recourse Debt of the
      Consolidated Parties (excluding Indebtedness hereunder and TruPS) to (ii) the
      Total Assets of the Consolidated Parties shall not exceed 0.10 to
      1.00.

     

    (e) Dividends.
      NorthStar will not, at any time pay any Distributions in respect of NorthStar’s
      common stock in excess of 100% of NorthStar’s Adjusted Funds from Operations for
      the trailing four (4) consecutive calendar quarter period; provided that
      notwithstanding the foregoing, NorthStar may pay Distributions necessary to
      maintain its status as a real estate investment trust under the Code. During
      the
      continuance of a monetary Event of Default, NorthStar shall make no
      Distributions.

     

    (f) Interest
      Rate Exposure.
      The
      Consolidated Parties will at all times maintain a notional amount of Match
      Funding Agreements in effect such that fluctuations (increases or decreases)
      in
      interest rates of 100 basis points or more in any fiscal quarter in respect
      of
      the Floating Rate Indebtedness and/or Floating Rate Assets of the Consolidated
      Parties will not impact negatively NorthStar’s Adjusted Funds from Operations in
      such fiscal quarter annualized by greater than 10.0%.

     

    Notwithstanding
      that the Financial Covenants set forth in this Section 5.8 may be tested on
      a
      quarterly (or, in some cases, more frequent) basis, the Person to which such
      Financial Covenants apply must be in full and complete compliance with such
      Financial Covenants at all times.

     

    Section
      5.9 Restriction
      on Fundamental Changes.

     

    (a) No
      Borrowing Base Entity shall enter into any merger or consolidation without
      the
      prior written consent of the Required Lenders, which consent may be withheld
      by
      the Required Lenders in their respective sole and absolute discretion. Neither
      NorthStar nor NorthStar OP shall enter into any merger or consolidation unless
      (i) NorthStar or NorthStar OP is the surviving entity, (ii) the nature
      of
      NorthStar’s or NorthStar OP’s business following such merger or consolidation
      shall remain substantially similar to the nature of NorthStar’s or NorthStar
      OP’s business immediately prior to such merger or consolidation, (iii) NorthStar
      or NorthStar OP, as the surviving entity, shall, at the time of such merger
      or
      consolidation and at all times thereafter,
      be and remain in compliance with all of the terms and conditions
      of this Agreement including, without limitation, the Financial Covenants set
      forth in Section 5.8, (iv) at the time of such merger or consolidation,
      NorthStar or NorthStar OP shall deliver to the Administrative Agent a fully
      completed Continuing Compliance Certificate, together with a proforma
      (with respect to the four (4) consecutive calendar quarters immediately
      following such merger or consolidation) cash flow and
      Financial Covenant compliance projection, in form, content and detail reasonably
      acceptable to the Administrative Agent, (v) NorthStar or NorthStar OP, as the
      surviving entity, shall execute and deliver to the Administrative Agent at
      the
      time of such merger or consolidation a ratification and reaffirmation of all
      its
      Obligations under this Agreement and the other Loan Documents, in form, content
      and detail acceptable to the Administrative Agent,
      (vi) no
      Default or Event of Default shall
      have occurred and be continuing at the time of such merger or consolidation,
      and
      (vii) such merger or consolidation shall be accomplished in accordance with
      all
      terms, conditions and restrictions being imposed thereon by the Securities
      and
      Exchange Commission and/or any other applicable regulatory agency having
      jurisdiction with respect to such merger or consolidation.

     

    
      
        
        

      

      
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    (b) NorthStar
      shall not amend its certificate of incorporation, bylaws or other organizational
      documents so as to change the purpose or business of NorthStar in any manner
      which is likely to have a Material Adverse Effect without the Administrative
      Agent’s prior written consent.

     

    (c) NorthStar
      OP shall not amend its partnership agreement or other organizational documents
      in any manner which is likely to have a Material Adverse Effect without the
      Administrative Agent’s prior written consent.

     

    (d) No
      Borrowing Base Entity shall amend its certificate of incorporation, limited
      liability company agreement or other organizational documents in any manner
      which is likely to have a Material Adverse Effect without the Administrative
      Agent’s prior written consent.

     

    (e) The
      Borrowers shall deliver to the Administrative Agent copies of all amendments
      to
      any trust agreement, articles of incorporation, by-laws, limited liability
      company agreement or other organizational document, as applicable, of any
      Borrower or Borrowing Base Entity no less than ten (10) Domestic Business Days
      after the effective date of any such amendment.

     

    Section
      5.10 [Reserved].

     

    Section
      5.11 Margin
      Stock.
      None of
      the proceeds of the Loan will be used, directly or indirectly, for the purpose,
      whether immediate, incidental or ultimate, of buying or carrying any Margin
      Stock.

     

    Section
      5.12 NorthStar,
      NorthStar OP and NRFC Sub-REIT Status.
      NorthStar shall at all times (i) remain a publicly traded company listed, quoted
      or traded on the New York Stock Exchange, NASDAQ or any such other nationally
      recognized stock exchange, and (ii) maintain
      its status as a self-directed
      and self-administered real estate investment trust under the Code. NorthStar
      OP
      and NRFC Sub-REIT shall at all times (i) maintain their status as qualified
      real
      estate investment trust
      subsidiaries under
      the
      Code, and (ii) have the majority of their capital stock owned by NorthStar.
      Each
      Borrowing Base Entity Subsidiary (other than the Borrowing Base Entity owning
      the CDO Retained Asset in CDO I) shall be a Wholly-Owned Subsidiary of NorthStar
      OP.

     

    Section
      5.13 Disposition
      of Borrowing Base Assets.
      The
      Borrowers shall deliver written notice to the Administrative Agent of any sale,
      liquidation, disposition or transfer of, or the release or termination of a
      Borrower’s or Borrowing Base Entity’s interest in, any Borrowing Base Asset
      together with an
      updated Borrowing Base Certificate
      giving
      effect to the completion of such sale, liquidation, disposition, transfer,
      or
      other event, which notice and Borrowing Base Certificate shall be delivered
      (i)
      in the event there is no Outstanding Balance, promptly after the completion
      of
      such sale, liquidation, disposition, transfer, or other event or (ii)
in
      the
      event that there is any Outstanding Balance, prior to the completion of such
      sale, liquidation, disposition, transfer, or other event. 

     

    
      
        
        

      

      
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    Section
      5.14 Liens;
      Indebtedness.
      The
      Borrowers shall not at any time during the Term directly or indirectly create,
      incur, assume or permit to exist any Lien on or with respect to any Borrowing
      Base Asset or any Capital Stock of NorthStar OP, NRFC Sub-REIT or any Borrowing
      Base Entity (or any Subsidiary of a Borrower or a Subsidiary Guarantor owning,
      directly or indirectly, the Capital Stock of any Borrowing Base Entity) for
      borrowed monies
      or
      any other Lien, unless the same is being contested
      in good faith or the same is discharged,
      bonded off or paid within thirty (30) days of filing of such Lien.
      Notwithstanding the foregoing, the Borrowers may permit Liens (i) encumbering
      the Real Property Assets relating to Eligible Property Equity Interests,
      provided that such Liens may only secure Indebtedness permitted by Exhibit
      G
      hereto
      and (ii) on the Capital Stock of Real Property Subsidiaries, provided that
      such
      Liens may only secure Indebtedness permitted by Exhibit
      G
      hereto
      (including any replacement financing of such Indebtedness to the extent
      permitted by Exhibit
      G
      hereto).
      No Subsidiary Guarantor shall at any time owe, create, incur or assume or
      otherwise be obligated in respect of any Indebtedness; provided that NNN
      Holdings may incur Indebtedness consisting of guarantees of customary carve-out
      matters such as fraud, misappropriation, bankruptcy, misapplication and
      environmental matters which guarantees are made in connection with Indebtedness
      incurred by a Subsidiary of NNN Holdings. 

     

    Section
      5.15 Business
      Loans.
      The
      Borrowers acknowledge that all of the Loans are business loans and no portion
      of
      the proceeds of the Loans will be used for personal, family or household
      purposes.

     

    Section
      5.16 Limitation
      on Changes in Fiscal Year; Accounting Methods; Valuation
      Methodology.
      No
      Borrower shall (i) permit the fiscal year of such Borrower to end on a day
      other
      than December
      31, (ii) change its method or procedures of accounting from those in effect
      as
      of the Closing Date (except as permitted by Section 1.2 hereof or as required
      by
      the Securities and Exchange Commission); or (iii) change in any material respect
      its current methodology by which it values the Borrowing Base
      Assets.

     

    Section
      5.17 Ownership
      of Borrowing Base Assets.
      All
      Borrowing Base Assets included in the Borrowing Base Assets Pool shall be owned
      by a Borrowing Base Entity.

     

    Section
      5.18 Limitation
      on Negative Pledge Clauses, Distribution Restrictions.
      Neither
      NorthStar OP, NRFC Sub-REIT nor any Borrowing Base Entity shall enter into
      with
      any Person any agreement
      which
      prohibits or limits the ability of NorthStar OP, NRFC Sub-REIT or such Borrowing
      Base Entity to create, incur, assume or suffer to exist any Lien upon any of
      its
      property, assets or revenues,
      whether now owned or hereafter acquired, nor will NorthStar, NorthStar OP,
      NRFC
      Sub-REIT or any Borrowing Base Entity, as applicable, enter into any such
      agreement with respect to the Capital Stock of NorthStar OP, NRFC Sub-REIT
      or
      any Borrowing Base Entity. 

     

    Section
      5.19 Addition
      of Borrowing Base Assets.

     

    
      
        
        

      

      
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    (a) With
      the
      approval of the Administrative Agent, the Borrowers may from time to time have
      included as Borrowing Base Assets eligible assets not included as initial
      Borrowing Base Assets hereunder as set forth on the schedule of initial
      Borrowing Base Assets annexed hereto as Exhibit
      “C”.
      In such
      event, the Borrowers shall provide to the Administrative Agent written notice
      thereof (each an “Approval
      Request”)
      no
      later than 10:00 a.m. (New York, New York time) on the Business Day that is
      at
      least ten (10) Business Days prior to the date on which Borrowers wish to have
      such asset included within the Borrowing Base Assets Pool, such Approval Request
      to state (i) whether such asset is proposed to be an Eligible First Mortgage
      Asset, an Eligible Property Equity Interest, an Eligible Real Estate Security,
      an Eligible Subordinated Asset or an Eligible CDO Retained Asset, (ii) the
      value
      of such asset as proposed to be reflected on a Borrowing Base Certificate,
      and
      (iii) that such asset complies with all of the representations and warranties
      applicable to such asset contained in Exhibit F, Exhibit G, Exhibit H, Exhibit
      I
      or Exhibit J, as the case may be, and if not, a detailed description of each
      exception to such compliance (each an “Exceptions
      Summary”).
      Together with the Approval Request, the Borrowers shall deliver to the
      Administrative Agent a completed, (i) a current Borrowing Base Certificate,
      (ii)
      the Borrowers’ credit write-up and approval memo relating to such prospective
      Borrowing Base Asset, and (iii) if requested by the Administrative Agent, (A)
      an
      appraisal report relating to any Real Property Asset or Underlying Asset
      relating to such prospective Borrowing Base Asset, (B) a copy of any mortgage
      note relating to such prospective Borrowing Base Asset, (C) a copy of the
      documents establishing the rights of any Preferred Securities, (D) a copy of
      the
      deed to any Real Property Asset, (E) a copy of the CDO Indenture and offering
      memorandum or circular relating to any Eligible CDO Retained Asset and the
      most
      recent monthly and quarterly trustee reports relating to any CDO Retained Asset
      in the possession of the Borrowers, any and (F) such other documents as the
      Administrative Agent may request from time to time (collectively, the
“Credit
      Underwriting Documents”).
      With
      respect to any asset which Borrowers have requested be added to the Borrowing
      Base Assets Pool, Borrowers shall be deemed to represent and warrant hereunder
      that, except as specified in the Exceptions Summary, if any, with respect to
      such asset (i) all of the First Mortgage Asset Representations and Warranties
      as
      set forth on Exhibit
      “F”
      hereto
      are true and correct as to any such asset which is to be an Eligible First
      Mortgage Asset, (ii) all of the Real Property Asset Representations and
      Warranties as set forth on Exhibit
      “G”
      hereto
      are true and correct as to any such asset which is to be an Eligible Property
      Equity Interest, (iii) all of the Real Estate Security Asset Representations
      and
      Warranties as set forth on Exhibit
      “H”
      hereto
      are true and correct as to any such asset which is to be an Eligible Real Estate
      Security, (iv) all of the Subordinated Asset Representations and Warranties
      as
      set forth on Exhibit
      “I”
      hereto
      are true and correct as to any such asset which is to be an Eligible
      Subordinated Asset, and (v) all of the CDO Retained Asset Representations and
      Warranties as set forth on Exhibit
      “J”
      hereto
      are true and correct as to any such asset which is to be an Eligible
      Subordinated Asset. Promptly upon receipt of an Approval Request and all related
      Credit Underwriting Documents (collectively, each, an “Approval
      Request Package”),
      the
      Administrative Agent shall provide copies thereof to each Lender. 

     

    (b) On
      or
      before 5:00 P.M., New York time, on the tenth (10th)
      Domestic Business Day following the Administrative Agent’s receipt of an
      Approved Request Package, the Administrative Agent will advise the Borrowers
      as
      to whether the Administrative Agent has approved the Approval Request. If the
      Administrative Agent does not respond to the Approval Request within the time
      period set forth herein, the Approval Request shall be deemed denied and the
      prospective Borrowing Base Asset identified in the Approval Request shall not
      be
      included in the Borrowing Base Asset Pool. If an Approval Request has been
      approved, the subject asset shall thereupon become a Borrowing Base Asset
      hereunder.

     

    
      
        
        

      

      
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    (c) All
      determinations by the Administrative Agent as to whether to approve any Approval
      Request shall be in the Administrative Agent’s good faith
      discretion.

     

    Section
      5.20 Failure
      of Certain Borrowing Base Assets Representations and Warranties.
      If
      at any
      time Borrowers shall become aware that (a) as to any First Mortgage Asset in
      the
      Borrowing Base Asset Pool, any First Mortgage Asset Representation or Warranty
      is no longer true and correct, (b) as to any Real Property Asset in the
      Borrowing Base Assets Pool, any Real Property Asset Representation or Warranty
      is no longer true and correct, (c) as to any Real Estate Security in the
      Borrowing Base Assets Pool, any Real Estate Security Representation or Warranty
      is no longer true and correct, (d) as to Subordinated Asset in the Borrowing
      Base Assets Pool, any Subordinated Asset Representation or Warranty is no longer
      true and correct or (e) as to CDO Retained Assets in the Borrowing Base Assets
      Pool, any CDO Retained Asset Representation or Warranty is no longer true and
      correct, Borrowers shall promptly notify the Administrative Agent in writing
      of
      such event, together with a detailed description of the factual circumstances
      giving rise thereto. If the event relates to any breach arising as a result
      of
      any payment default in respect of the applicable Borrowing Base Asset whereby
      any payment in respect of the applicable Borrowing Base Asset is past due for
      more than thirty (30) but less than forty-five (45) days, the Administrative
      Agent may, and at the direction of the Required Lenders shall, require that
      the
      asset no longer be considered a Borrowing Base Asset for purposes hereof and
      require that such asset be removed from the Borrowing Base Assets Pool. If
      the
      event relates to any breach arising as a result of any payment default in
      respect of the applicable Borrowing Base Asset whereby any payment in respect
      of
      the applicable Borrowing Base Asset is past due for more than forty-five (45)
      days, the asset shall automatically no longer be considered a Borrowing Base
      Asset for purposes hereof and such asset shall be removed from the Borrowing
      Base Assets Pool. If the event relates to any breach (other than any breach
      arising as a result of any payment default) in respect of the applicable
      Borrowing Base Asset which continues after any applicable cure period, the
      Administrative Agent may require that the asset no longer be considered a
      Borrowing Base Asset for purposes hereof and require that such asset be removed
      from the Borrowing Base Assets Pool. Upon the determination that an asset shall
      no longer be considered a Borrowing Base Asset for purposes hereof, the
      provisions of Section 2.10(a) shall apply.

     

    Section
      5.21 Limitation
      on Transactions with Affiliates.
      No
      Borrower nor any Subsidiary shall enter into any transaction, including, without
      limitation, any purchase, sale, lease or exchange of property or other assets
      or
      the rendering of any service, with any Affiliate unless such transaction is
      (a)
      otherwise permitted under this Agreement or (b) upon fair and reasonable terms
      no less favorable to Borrowers or such Subsidiary, as the case may be, than
      it
      would obtain in a comparable arm’s length transaction with a Person which is not
      an Affiliate.

     

    Section
      5.22 CDO
      Subsidiaries. The
      organizational agreements of a Subsidiary which owns Eligible CDO Retained
      Assets may as a result of structuring requirements of the Eligible CDO, prohibit
      such Subsidiary from becoming a Guarantor. The Eligible CDO Retained Assets
      owned by such Subsidiary may be included in the Borrowing Base Assets Pool
      subject to the satisfaction at all times of the following conditions (such
      a
      Subsidiary which satisfies the conditions in this Section 5.22 shall be a
“CDO
      Subsidiary”):

     

    
      
        
        

      

      
        -60-

        
          

        

      

      
        
        

      

    

    (i) such
      CDO
      Subsidiary shall be a Wholly-Owned Subsidiary of a Subsidiary
      Guarantor;

    

    (ii) such
      CDO
      Subsidiary shall be a Special Purpose Entity;

    

    (iii)
       the
      interest of the owning Subsidiary Guarantor in such CDO Subsidiary shall be
      free
      and clear of all Liens;

    

    (iv) 
      such CDO
      Subsidiary shall not create, incur, assume, guarantee or be or remain liable,
      contingently or otherwise, with respect to any Indebtedness; and

    

    (v)
      such
      CDO Subsidiary shall comply with the terms of its organizational agreements
      and
      shall not amend such organizational agreements in any manner which could have
      a
      Material Adverse Effect without the prior written consent of the Administrative
      Agent. In the event that any Eligible CDO Retained Asset held by a CDO
      Subsidiary is no longer required to be held in a Special Purpose Entity that
      is
      prohibited from being a Subsidiary Guarantor, the Borrowers shall cause such
      Eligible CDO Retained Asset to be transferred to a Subsidiary Guarantor.

    

    Section
      5.23 Real
      Property Subsidiaries.
      The
      organizational agreements of a Subsidiary which owns Eligible Real Property
      Equity Interests may, as a result of structuring requirements of the documents
      relating to Indebtedness of such Subsidiary, prohibit such Subsidiary from
      becoming a Guarantor. The Eligible Real Property Equity Interests owned by
      such
      Subsidiary may be included in the Borrowing Base Assets Pool subject to the
      satisfaction at all times of the following conditions (such a Subsidiary which
      satisfies the conditions in this Section 5.23 shall be a “Real
      Property Subsidiary”):

     

    (i) such
      Real
      Property Subsidiary shall be a Wholly-Owned Subsidiary of a Subsidiary
      Guarantor;

    

    (ii) the
      interest of the owning Subsidiary Guarantor (or any Subsidiary of the Subsidiary
      Guarantor owning, directly or indirectly, the Capital Stock of such Real
      Property Subsidiary) in such Real Property Subsidiary shall be free and clear
      of
      all Liens except Liens securing Indebtedness permitted by Exhibit
      G
      hereto;

    

    (iii)
      such Real Property Subsidiary shall not create, incur, assume, guarantee or
      be
      or remain liable, contingently or otherwise, with respect to any Indebtedness
      except Indebtedness permitted by Exhibit
      G
      hereto;
      and

    

    (iv)
      such
      Real Property Subsidiary shall comply with the terms of its organizational
      agreements and shall not amend such organizational agreements in any manner
      which could have a Material Adverse Effect without the prior written consent
      of
      the Administrative Agent. In the event that the restrictions against a Real
      Property Subsidiary from becoming a Subsidiary Guarantor are no longer
      effective, such Real Property Subsidiary shall promptly become a Subsidiary
      Guarantor pursuant to Section 5.25.

    

    Section
      5.24 Guaranties.
      The
      Obligations shall be guaranteed by the Subsidiary Guarantors pursuant to the
      Guaranty.

     

    
      
        
        

      

      
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    Section
      5.25 Subsidiary
      Guarantors.
      In the
      event any Subsidiary of a Borrower (or, subject to the terms of Section 5.22
      or
      Section 5.23, a CDO Subsidiary or a Real Property Subsidiary) desires to include
      a Borrowing Base Asset owned by such Subsidiary (or, subject to the terms of
      Section 5.22 or Section 5.23, a CDO Retained Asset or a Property Equity
      Interest) in the Borrowing Base Assets Pool, such Subsidiary (and any other
      direct or indirect Subsidiary owning an interest therein), but excluding a
      CDO
      Subsidiary or any Real Property Subsidiary with respect to clause (i) below,
      shall, simultaneously with the inclusion of such Borrowing Base Asset in the
      Borrowing Base Asset Pool, deliver to the Administrative Agent each of the
      following items, each in form and substance satisfactory to the Agent: (i)
      a
      joinder agreement to the Guaranty executed by such Subsidiary and (ii) such
      organizational agreements, resolutions, consents, opinions and other documents
      and instruments as the Administrative Agent may reasonably require.
      Additionally, in the event that any Subsidiary of a Borrower, whether presently
      existing or hereafter formed or acquired, which is not a Subsidiary Guarantor
      at
      such time, shall after the date hereof become a guarantor under any existing
      or
      future unsecured Indebtedness of a Borrower, then the Borrower shall cause
      each
      such Subsidiary to execute and deliver the items described in clauses (i) and
      (ii) of this Section 5.25
      .

     

    Section
      5.26 Release
      of Certain Subsidiary Guarantors.
      Provided that no Default or Event of Default has occurred and is continuing,
      upon the request of a Borrower or any Subsidiary Guarantor, the Administrative
      Agent shall release such Borrower or Subsidiary Guarantor from liability
      hereunder or under the Guaranty; provided
      that (x)
      the Borrower shall deliver to Administrative Agent evidence satisfactory to
      Administrative Agent that the Borrowers will be in compliance with all covenants
      of this Agreement after giving effect to such sale and release and (y) all
      Borrowing Base Assets owned by such Subsidiary and all CDO Subsidiaries or
      Real
      Property Subsidiaries owned by such Subsidiary shall cease to be included in
      the
      Borrowing Base Assets Pool from the date of release of such Subsidiary from
      the
      Guaranty. Delivery by a Borrower to the Administrative Agent of any such request
      for a release shall constitute a representation by the Borrowers that the
      matters set forth in the preceding sentence (both as of the date of the giving
      of such request and as of the date of the effectiveness of such request) are
      true and correct with respect to such request.

     

    Section
      5.27 Distribution
      of proceeds of CDO Retained Interests.
      The
      Borrowers shall cause each CDO Subsidiary to promptly distribute to the Borrower
      or Subsidiary Guarantor that owns such CDO Subsidiary all payments made with
      respect to the Eligible CDO Retained Asset(s) owned by such CDO Subsidiary.
      

     

     

    ARTICLE
      VI

     

    DEFAULTS

     

    Section
      6.1 Events
      of Default.
      The
      occurrence and continuation of one or more of the following events (each, an
      “Event
      of Default”)
      shall
      constitute an event of default hereunder:

     

    (a) (i)
      the
      Borrowers shall fail to pay when due any principal of any Loan, (ii) the
      Borrowers shall fail to pay when due interest on any Loan and such failure
      continues for a period of three (3) Domestic Business Days, or (iii) the
      Borrowers shall fail to pay any Fees or any other amount payable hereunder
      or,
      as to Fees, under the Fee Letter, and the same shall continue for a period
      of
      five (5) Domestic Business Days after Borrowers have received notice
      thereof;

     

    
      
        
        

      

      
        -62-

        
          

        

      

      
        
        

      

    

    (b) any
      Borrower shall fail to observe or perform any covenant contained in Section
      5.1
      and Sections 5.8 to 5.26, inclusive;

     

    (c) any
      Borrower shall fail to observe or perform any covenant or agreement contained
      in
      this Agreement (other than those covered by clause (a) or (b) above) for thirty
      (30) days after written notice thereof has been given to such Borrower by the
      Administrative Agent, or if such default is of such a nature that is capable
      of
      being remedied but that cannot with reasonable effort be completely remedied
      within said period of thirty (30) days, such additional period of time as may
      be
      reasonably necessary to cure same, provided such Borrower commence such cure
      within said thirty (30) day period and diligently prosecutes same, until
      completion, but in no event shall such extended period exceed one hundred twenty
      (120) days;

     

    (d) any
      representation, warranty, certification or statement made by (i) any Borrower
      in
      this Agreement or in any certificate, financial statement or other document
      delivered pursuant to this Agreement or (ii) any Subsidiary Guarantor in the
      Guaranty or in any document delivered pursuant to the Guaranty shall prove
      to
      have been incorrect in any material respect when made (or deemed made) and
      such
      representation, warranty, certification or statement is not made correct in
      all
      material respects within thirty (30) days after the earlier to occur of (i)
      the
      date on which the Administrative Agent notifies the Borrowers of such incorrect
      representation, warranty, certification or statement, and (ii) the date on
      which
      any Borrower or Subsidiary Guarantor first becomes aware of any such incorrect
      representation, warranty, certification or statement; provided, however, that,
      no breach of any of the representations and warranties contained in Section
      4.7
      hereof shall constitute an “Event of Default” hereunder (and the sole remedy of
      the Administrative Agent and Lenders in respect of any such breach shall be
      as
      set forth in Section 5.20 hereof) unless such representation and warranty was
      untrue or incorrect when made and a Borrower or Subsidiary Guarantor had
      knowledge, at the time such representation and warranty was made, that the
      representation and warranty was untrue or incorrect;

     

    (e) a
      default
      (however defined) shall occur with respect to (i) any Recourse Debt of any
      Borrower or any Consolidated Subsidiary the aggregate outstanding principal
      amount of which is in excess of $20,000,000 (other than the Obligations) or
      (ii)
      any Non-Recourse Debt of any Borrower or any Consolidated Subsidiary the
      aggregate outstanding principal amount of which is in excess of
      $35,000,000;

     

    (f) any
      Borrower or Subsidiary Guarantor shall commence a voluntary case or other
      proceeding seeking liquidation, reorganization or other relief with respect
      to
      itself or its debts under any bankruptcy, insolvency or other similar law now
      or
      hereafter in effect or seeking the appointment of a trustee, receiver,
      liquidator, custodian or other similar official of it or any substantial part
      of
      its property, or shall consent to any such relief or to the appointment of
      or
      taking possession by any such official in an involuntary case or other
      proceeding commenced against it, or shall make a general assignment for the
      benefit of creditors, or shall fail generally to pay its debts as they become
      due, or shall take any corporate action to authorize any of the
      foregoing;

     

    
      
        
        

      

      
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    (g) an
      involuntary case or other proceeding shall be commenced against any Borrower
      or
      Subsidiary Guarantor seeking liquidation, reorganization or other relief with
      respect to it or its debts under any bankruptcy, insolvency or other similar
      law
      now or hereafter in effect or seeking the appointment of a trustee, receiver,
      liquidator, custodian or other similar official of it or any substantial part
      of
      its property, and such involuntary case or other proceeding shall remain
      undismissed and unstayed for a period of ninety (90) days; or an order for
      relief shall be entered against any Borrower or any Subsidiary Guarantor under
      the federal bankruptcy laws as now or hereafter in effect;

     

    (h) one
      or
      more final, non-appealable judgments or decrees in an aggregate amount of
      $20,000,000 or more shall be entered by a court or courts of competent
      jurisdiction against any Borrower or any Subsidiary Guarantor (other than any
      judgment as to which, and only to the extent, a reputable insurance company
      has
      acknowledged coverage of such claim in writing) and (i) any such judgments
      or
      decrees shall not be stayed, discharged, paid, bonded or vacated within thirty
      (30) days or (ii) enforcement proceedings shall be commenced by any creditor
      on
      any such judgments or decrees;

     

    (i) without
      the Required Lenders’ prior written consent (which the Required Lenders may
      withhold in their respective sole and absolute discretion), there shall be
      a
      change in the majority of the Board of Directors of NorthStar (a) during any
      twelve (12) month period following a change in “control” (as defined in Rule 405
      of the regulations promulgated under the Securities Act of 1933), or (b) during
      any period where a so-called “proxy fight” is in process (or during the twelve
      (12) month period after any related shareholders’ meeting) concerning either the
      composition of the Board of Directors or a sale of NorthStar;

     

    (j) without
      the Required Lenders’ prior written consent (which the Required Lenders may
      withhold in their respective sole and absolute discretion), any Person
      (including affiliates of such Person) or “group” (as such term is defined in
      applicable federal securities laws and regulations) shall acquire more than
      thirty percent (30%) of the common shares of NorthStar;

     

    (k) NorthStar
      shall cease at any time to qualify as a real estate investment trust under
      the
      Code and/or either of NorthStar OP or NRFC Sub-REIT shall cease at any time
      to
      qualify as qualified real estate investment trust subsidiaries under the
      Code;

     

    (l) if
      any
      Termination Event with respect to a Plan shall occur as a result of which
      Termination Event or Events any member of the ERISA Group has incurred or will
      incur any liability to the PBGC or any other Person and the sum (determined
      as
      of the date of occurrence of such Termination Event) of the insufficiency of
      such Plan and the insufficiency of any and all other Plans with respect to
      which
      such a Termination Event shall occur and be continuing at the same time (or,
      in
      the case of a Multiple Employer Plan with respect to which a Termination Event
      described in clause (ii) of the definition of Termination Event shall occur
      and
      be continuing at the same time, the liability of any Borrower) is equal to
      or
      greater than $5,000,000;

     

    (m) if,
      any
      member of the ERISA Group shall commit a failure described in Section 402(f)(1)
      of ERISA or Section 412(n)(1) of the Code and the amount of the lien determined
      under Section 402(f)(3) of ERISA or Section 412(n)(3) of the Code that will
      be
      imposed on any member of the ERISA Group or their assets in respect of such
      failure shall be, in the case of a NorthStar Plan, equal to or greater than
      $5,000,000 or, in the case of a Non-NorthStar Plan, an amount that would result
      in a Material Adverse Effect;

     

    
      
        
        

      

      
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    (n) at
      any
      time, for any reason any Borrower, any Consolidated Subsidiary or any other
      party (other than any Lender, the Administrative Agent or the Arranger) which
      is
      a party to a Loan Document seeks to repudiate its obligations under any Loan
      Document; or

     

    (o) a
      default
      beyond any applicable notice or grace period under any of the other Loan
      Documents.

     

    Section
      6.2 Rights
      and Remedies.

     

    (a) Upon
      the
      occurrence of any Event of Default described in Sections 6.1(f) or (g), the
      Commitments shall immediately terminate and the unpaid
      principal amount of, and any and all accrued interest on, the Loans and any
      and
      all accrued Fees and other Obligations hereunder shall automatically become
      immediately due and payable,
      with all additional interest from time to time accrued thereon and, except
      as is
      otherwise specifically set forth in this Agreement or the other Loan Documents,
      without presentation, demand, or protest or other requirements of any kind
      (including, without limitation, valuation and appraisement, diligence,
      presentment, notice of intent to demand or accelerate and notice of
      acceleration), all of which are hereby expressly waived by the Borrowers; and
      upon the occurrence
      and during the continuance of any other Event of Default, the Administrative
      Agent may
      (and
      upon the demand of the Required Lenders shall), by written notice to the
      Borrowers, terminate the Commitments and may (and upon the demand of the
      Required Lenders shall), in addition
      to the exercise of all of the rights and remedies permitted the Administrative
      Agent and the Lenders at law or equity or under any of the other Loan Documents,
      declare the unpaid principal
      amount of and any and all accrued and unpaid interest on the Loans and any
      and
      all accrued
      Fees and other Obligations hereunder to be, and the same shall thereupon be,
      immediately
      due and payable with all additional interest from time to time accrued thereon
      and, except as is otherwise specifically set forth in this Agreement or the
      other Loan Documents, without presentation, demand, or protest or other
      requirements of any kind other than as provided in the Loan Documents
      (including, without limitation, valuation and appraisement, diligence,
      presentment, notice of intent
      to
      demand or accelerate and notice of acceleration), all of which are hereby
      expressly waived by the Borrowers.

     

    (b) Notwithstanding
      anything to the contrary contained in this Agreement or in any other Loan
      Document, the Administrative Agent and the Lenders each agree that any exercise
      or enforcement of the rights and remedies granted to the Administrative Agent
      or
      the Lenders under this Agreement or at law or in equity with respect to this
      Agreement or any other Loan Documents shall be commenced and maintained by
      the
      Administrative Agent on behalf of the Administrative Agent and/or the
      Lenders. The
      Administrative Agent shall act at the direction of the Required Lenders in
      connection with the exercise of any and all remedies at law, in equity or under
      any of the Loan Documents or, if the Required Lenders are unable to reach
      agreement, then, from and after an Event of Default, the Administrative Agent
      may pursue such rights and remedies as it may determine.

     

    
      
        
        

      

      
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    Section
      6.3 Notice
      of Default.
      The
      Administrative Agent shall give notice to the Borrowers under Section 6.1(c)
      promptly upon being requested to do so by the Required Lenders and shall
      thereupon notify all the Lenders thereof.

     

    Section
      6.4 Actions
      in Respect of Letters of Credit.

     

    (a) If,
      at
      any time and from time to time, any Letter of Credit shall have been issued
      hereunder and an Event of Default shall have occurred and be continuing, then,
      upon the occurrence and during the continuation thereof,
      the Administrative Agent may, whether in addition to the taking by the
      Administrative Agent of any of the actions described in this Article or
      otherwise, make a demand upon the Borrowers to, and immediately upon such
      demand, the Borrowers shall pay to the Administrative Agent, on behalf of the
      Lenders, in same day funds at the Administrative Agent’s office designated in
      such demand, for deposit in a special
      cash collateral account (the “Letter
      of Credit Collateral Account”)
      to be
      maintained in the name
      of
      the Administrative Agent (on behalf of the Lenders) and under its sole dominion
      and control at such place as shall be designated by the Administrative Agent,
      an
      amount equal to the amount
      of
      the Letter of Credit Usage under the Letters of Credit.

     

    (b) The
      Borrowers hereby pledge, grant and assign to the Administrative Agent, as
      Administrative Agent, for its benefit and for the ratable benefit of the Lenders
      a lien on and a security interest in, the following collateral (the
“Letter
      of Credit Collateral”):

     

    (i) the
      Letter of Credit Collateral Account, all cash deposited therein and all
      certificates and instruments, if any, from time to time representing or
      evidencing the Letter of Credit Collateral Account;

     

    (ii) all
      notes, certificates of deposit and other instruments from time to time hereafter
      delivered to or otherwise possessed by the Administrative Agent for or on behalf
      of the Borrowers in substitution for or in respect of any or all of the then
      existing Letter of Credit Collateral;

     

    (iii) all
      interest, dividends, cash, instruments and other property from time to time
      received, receivable or otherwise distributed in respect of or in exchange
      for
      any or all of the then existing Letter of Credit Collateral; and

     

    (iv) to
      the
      extent not covered by the above clauses, all proceeds of any or all of the
      foregoing Letter of Credit Collateral.

     

    The
      lien
      and security interest granted hereby secures the payment of all obligations
      of
      the Borrowers now or hereafter existing hereunder and under any other Loan
      Document.

     

    (c) The
      Borrowers hereby authorize the Administrative Agent for the ratable benefit
      of
      the Lenders to apply, from time to time after funds are deposited in the Letter
      of Credit Collateral Account, funds then held in the Letter of Credit Collateral
      Account to the payment of any amounts, in such order as the Administrative
      Agent
      may elect, as shall have become or shall become due and payable by the Borrowers
      to the Lenders in respect of the Letters of Credit.

     

    
      
        
        

      

      
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    (d) Neither
      the Borrowers nor any Person claiming or acting on behalf of or through the
      Borrowers shall have any right to withdraw any of the funds held in the Letter
      of Credit Collateral Account, except as provided in Section 6.4(h).

     

    (e) The
      Borrowers agree that they will not (i) sell or otherwise dispose of any interest
      in the Letter of Credit Collateral or (ii) create or permit to exist any lien,
      security interest or other charge or encumbrance upon or with respect to any
      of
      the Letter of Credit Collateral, except for the security interest created by
      this Section 6.4.

     

    (f) If
      any
      Event of Default shall have occurred and be continuing:

     

    (i) The
      Administrative Agent may, in its sole discretion, without notice to the
      Borrowers except as required by law and at any time from time to time, charge,
      set off or otherwise apply all or any part of first,
      (x)
      amounts previously drawn on any Letter of Credit that have not been reimbursed
      by the Borrowers and (y) any Letter of Credit Usage described in clause (ii)
      of
      the definition thereof that are then due and payable and second,
      any
      other unpaid Obligations then due and payable, against the Letter of Credit
      Collateral Account or any part thereof, in such order as the Administrative
      Agent shall elect. The rights of the Administrative Agent under this Section
      6.4
      are in addition to any rights and remedies which any Lender may
      have.

     

    (ii) The
      Administrative Agent may also exercise, in its sole discretion, in respect
      of
      the Letter of Credit Collateral Account, in addition to the other rights and
      remedies provided herein or otherwise available to it, all the rights and
      remedies of a secured party upon default under the Uniform Commercial Code
      in
      effect in the State of New York at that time.

     

    (g) The
      Administrative Agent shall be deemed to have exercised reasonable care in the
      custody and preservation of the Letter of Credit Collateral if the Letter of
      Credit Collateral is accorded treatment substantially equal to that which the
      Administrative Agent accords its own property, it being understood that,
      assuming such treatment, the Administrative Agent shall not have any
      responsibility or liability with respect thereto.

     

    (h) At
      such
      time as all Events of Default have been cured or waived in writing, all amounts
      remaining in the Letter of Credit Collateral Account shall be promptly returned
      to the Borrowers upon the written request of the Borrower. Absent such cure
      or
      written waiver, any surplus of the funds held in the Letter of Credit Collateral
      Account and remaining after payment in full of all of the Obligations of the
      Borrowers hereunder and under any other Loan Document after the Maturity Date
      shall be paid to the Borrowers or to whomsoever may be lawfully entitled to
      receive such surplus.

     

    ARTICLE
      VII

     

    THE
      AGENTS

     

    Section
      7.1 Appointment
      and Authorization.
      Each
      Lender irrevocably appoints and authorizes the Administrative Agent to take
      such
      action as agent on its behalf and to exercise such
      powers under this Agreement and the other Loan Documents as are delegated to
      the
      Administrative Agent by the terms hereof or thereof, together with all such
      powers as are reasonably incidental thereto.

     

    
      
        
        

      

      
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    Section
      7.2 Agency
      and Affiliates. KeyBank
      and Syndication Agent shall have the same rights and powers under this Agreement
      as any other Lender and may exercise or refrain from exercising the same as
      though it were not the Administrative Agent, and KeyBank and its affiliates
      may
      accept deposits
      from, lend money to, and generally engage in any kind of business with any
      Borrower or
      any
      Subsidiary or affiliate of any Borrower as if it were not the Administrative
      Agent hereunder, and the term “Lender” and “Lenders” shall include KeyBank in
      its individual capacity.
      Syndication Agent is an agent hereunder in title only and such designation
      shall
      impose no obligations on it.

     

    Section
      7.3 Action
      by Administrative Agent.
      The
      obligations of the Administrative Agent hereunder are only those expressly
      set
      forth herein. Without limiting the generality
      of the foregoing, the Administrative Agent shall not be required to take any
      action with respect to any Default or Event of Default, except as expressly
      provided in Article VI.

     

    Section
      7.4 Consultation
      with Experts.
      The
      Administrative Agent may consult with legal counsel, independent public
      accountants and other
      independent experts selected by it and shall not be liable for any action taken
      or omitted to be taken by it in good faith in accordance with the advice of
      such
      counsel, accountants or experts.

     

    Section
      7.5 Liability
      of Administrative Agent.
      Neither
      the Administrative Agent nor any of its Affiliates nor any of their respective
      directors, officers, agents or employees shall be liable for any action taken
      or
      not taken by it in connection herewith (i) with the consent or
      at the
      request of the Required Lenders or (ii) in the absence of its own gross
      negligence or willful misconduct. Neither the Administrative Agent nor any
      of
      its directors, officers, agents or employees shall be responsible for or have
      any duty to ascertain, inquire into or verify (i) any statement,
      warranty or representation made in connection with this Agreement or any
      Borrowing hereunder; (ii) the performance or observance of any of the covenants
      or agreements of the Borrowers; (iii) the satisfaction of any condition
      specified in Article III, except receipt of items required
      to be delivered to the Administrative Agent; or (iv) the validity, effectiveness
      or genuineness
      of this Agreement, the
      other
      Loan Documents or any other instrument or writing furnished in connection
      herewith. The Administrative Agent shall not incur any liability by acting
      in
      reliance upon any notice, consent, certificate, statement, or other writing
      (which may be a
      bank
      wire, telex or similar writing) believed by it to be genuine or to be signed
      by
      the proper party or parties.

     

    Section
      7.6 Indemnification.
      Each
      Lender shall, ratably in accordance with its Commitment, indemnify the
      Administrative Agent and its affiliates and their respective directors,
      officers, agents and employees (to the extent not reimbursed by the Borrowers)
      against any cost, expense (including counsel fees and disbursements), claim,
      demand, action, loss or liability
      (except such as result from such indemnitee’s gross negligence or willful
      misconduct) that such indemnitee may suffer or incur in connection with this
      Agreement, the other Loan Documents
      or any action taken or omitted by such indemnitee hereunder. In the event that
      the Administrative Agent shall, subsequent to its receipt of indemnification
      payment(s) from Lenders in accordance with this section, recoup any amount
      from
      the Borrowers, or any other party liable therefor in connection with such
      indemnification, the Administrative Agent shall promptly reimburse
      the Lenders which previously made the payment(s) pro
      rata,
      based
      upon the actual amounts which were theretofore paid by each Lender.

     

    
      
        
        

      

      
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    Section
      7.7 Credit
      Decision.
      Each
      Lender acknowledges that (i) it has, independently and without reliance upon
      the
      Administrative Agent or any other Lender, and based on such documents and
      information as it has deemed appropriate, made its own credit analysis
and
      decision to enter into this Agreement, and (ii) it has conducted its own
      independent investigation
      of the financial condition, creditworthiness, affairs and status of NorthStar
      and the
      Consolidated Subsidiaries and that it has not relied on any materials or
      information furnished to it by the Administrative Agent, the Arranger or any
      of
      their respective Affiliates which, if so furnished, is hereby acknowledged
      by
      each Lender as having been furnished without representation
      or warranty of any kind. Each Lender also acknowledges that it will,
      independently and without reliance upon the Administrative Agent or any other
      Lender, and based on such documents
      and information as it shall deem appropriate at the time, continue to make
      its
      own credit decisions in taking or not taking any action under this
      Agreement.

     

    Section
      7.8 Successor
      Administrative Agent.
      The
      Administrative Agent may resign at any time by giving notice thereof to the
      Lenders and the Borrowers and the Administrative
      Agent shall resign in the event its Commitment is reduced to zero. Upon any
      such
      resignation, the Required Lenders shall have the right to appoint a successor
      Administrative Agent, which successor Administrative Agent shall, provided
      no
      Event of Default has occurred and
      is
      then continuing, be subject to Borrowers’ approval, which approval shall not be
      unreasonably withheld, conditioned or delayed. If no successor Administrative
      Agent shall have been
      so
      appointed by the Required Lenders and approved by the Borrowers, and shall
      have
accepted
      such appointment, within thirty (30) days after the retiring Administrative
      Agent gives notice of resignation, then the retiring Administrative Agent may,
      on behalf of the Lenders, appoint
      a
      successor Administrative Agent, which shall be the Administrative Agent who
      shall act until
      the
      Required Lenders shall appoint a Administrative Agent.
      Upon the acceptance of its appointment as the Administrative Agent hereunder
      by
      a successor Administrative Agent, such successor Administrative Agent shall
      thereupon succeed to and become vested with all the rights and duties of the
      retiring Administrative Agent, and the retiring Administrative Agent shall
      be
      discharged from its duties and obligations hereunder. After any retiring
      Administrative Agent’s resignation
      hereunder,
      the provisions of this Article shall inure to its benefit as to any actions
      taken or omitted to be taken by it while it was the Administrative
      Agent.

     

    Section
      7.9 Receipt
      of Notices.
      Except
      as otherwise expressly provided herein, all material notices, reports and
      information received by the Administrative Agent with respect to the Borrowers
      and not otherwise delivered to the Lenders by the Borrowers, shall be delivered
      to the Lenders within ten (10) Domestic Business Days of the Administrative
      Agent’s receipt thereof.

     

    ARTICLE
      VIII

     

    CHANGE
      IN CIRCUMSTANCES

     

    Section
      8.1 Basis
      for Determining Interest Rate Inadequate or Unfair.
      If on
      or prior to the first day of any Interest Period for any LIBOR
      Borrowing:

     

    
      
        
        

      

      
        -69-

        
          

        

      

      
        
        

      

    

    (a) the
      Administrative Agent is advised that deposits in dollars (in the applicable
      amounts) are not being offered in the relevant market for such Interest Period,
      or

     

    (b) Lenders
      having fifty percent (50%) or more of the aggregate principal amount of the
      affected Loans advise the Administrative Agent that the Adjusted London
      Interbank Offered Rate, as determined by the Administrative Agent, will not
      adequately and fairly reflect the cost to such Lenders of funding their LIBOR
      Loans for such Interest Period, the Administrative Agent shall forthwith give
      notice thereof to the Borrowers and the Lenders,

     

    whereupon
      until the Administrative Agent notifies the Borrowers that the circumstances
      giving rise to such results set forth in Section 8.1(a) or (b) above no longer
      exist, (i) the obligations of the Lenders to make LIBOR Loans or to continue
      or
      convert outstanding Loans as or into LIBOR Loans shall be suspended and (ii)
      each outstanding LIBOR Loan shall be converted into a Alternate Base Rate Loan
      on the last day of the then current Interest Period applicable thereto. Unless
      the Borrowers notify the Administrative Agent at least two (2) Domestic Business
      Days before the date of any LIBOR Borrowing for which a Notice of Borrowing
      has
      previously been given that it elects not to borrow on such date, such Borrowing
      shall be an Alternate Base Rate Borrowing. 

     

    Section
      8.2 Illegality.
      If, on
      or after the date of this Agreement, the adoption of any applicable law, rule
      or
      regulation, or any change in any applicable law, rule or regulation,
or
      any
      change in the interpretation or administration thereof by any governmental
      authority, central bank or comparable agency charged with the interpretation
      or
      administration thereof, or compliance by any Lender (or its LIBOR Lending
      Office) with any request or directive (whether or not having the force of law)
      of any such authority, central bank or comparable agency shall make it unlawful
      or impossible for any Lender (or its LIBOR Lending Office) to make,
      maintain or fund its LIBOR Loans or to issue any Letter of Credit as a Fronting
      Lender or
      to
      participate in any Letter of Credit issued by a Fronting Lender, the
      Administrative Agent shall forthwith give notice thereof to the other Lenders
      and the Borrowers, whereupon until such Lender
      notifies the Borrowers and the Administrative Agent that the circumstances
      giving rise to such
      suspension no longer exist, the obligation of such Lender to make or convert
      LIBOR Loans
      or
      to issue Letters of Credit shall be suspended. With respect to LIBOR Loans,
      before giving any notice to the Administrative Agent pursuant to this Section,
      such Lender shall designate a different LIBOR Lending Office if such designation
      will avoid the need for giving such notice and will not, in the judgment of
      such
      Lender, be otherwise disadvantageous to such Lender. If such Lender shall
      determine that it may not lawfully continue to maintain and fund any
      of
      its outstanding LIBOR Loans to maturity and shall so specify in such notice,
      the
      Borrowers shall be deemed to have delivered a Notice of Interest Rate Election
      and such LIBOR Loan shall be converted as of such date to a Alternate Base
      Rate
      Loan (without payment of any amounts that Borrowers would otherwise be obligated
      to pay pursuant to Section 2.13 hereof with respect to Loans converted pursuant
      to this Section 8.2) and, in the case of LIBOR Loans,
      in
      an equal principal amount from such Lender (on which interest and principal
      shall be
      payable contemporaneously with the related LIBOR Loans of the other Lenders),
      and such Lender shall make such a Alternate Base Rate Loan.

     

    
      
        
        

      

      
        -70-

        
          

        

      

      
        
        

      

    

    If
      at any
      time, it shall be unlawful or impossible for any Lender to make, maintain or
      fund its LIBOR Loans, the Borrowers shall have the right, upon five (5) Domestic
      Business Day’s notice to the Administrative Agent, to either (x) cause a bank,
      reasonably acceptable to the Administrative Agent, to offer to purchase the
      Commitments of such Lender for an amount equal to such Lender’s outstanding
      Loans, together with all fees, accrued interest and other amounts payable to
      such Lender and to become a Lender hereunder, which offer such Lender is hereby
      required to accept, or (y) to repay in full all Loans then outstanding of such
      Lender, together with interest and all other amounts due thereon, upon which
      event, such Lender’s Commitments shall be deemed to be cancelled pursuant to
      Section 2.11(c). 

     

    Section
      8.3 Increased
      Cost and Reduced Return.

     

    (a) If
      on or
      after the date hereof the adoption of any applicable law, rule or regulation,
      or
      any change in any applicable law, rule or regulation, or any change in the
      interpretation or administration thereof by any governmental authority, central
      bank or comparable agency charged with the interpretation or administration
      thereof, or compliance by any Lender (or its Applicable Lending Office) with
      any
      request or directive (whether or not having the force of law) of any such
      authority, central bank or comparable agency shall impose, modify or deem
      applicable any reserve (including, without limitation, any such requirement
      imposed by the Board of Governors of the Federal Reserve System, but excluding
      with respect to any LIBOR Loan any such requirement with respect to which such
      Lender is entitled to compensation during the relevant Interest Period under
      Section 2.7), special deposit, insurance assessment or similar requirement
      against assets of, deposits with or for the account of, or credit extended
      by,
      any Lender (or its Applicable Lending Office) or shall impose on any Lender
      (or
      its Applicable Lending Office) or on the United States market for certificates
      of deposit or the London interbank market any other condition affecting its
      LIBOR Loans, its Note or its obligation to make such Loans and the result of
      any
      of the foregoing is to increase the cost to such Lender (or its Applicable
      Lending Office) of making or maintaining any such Loan, or to reduce the amount
      of any sum received or receivable by such Lender (or its Applicable Lending
      Office) under this Agreement or under its Note with respect thereto, by an
      amount deemed by such Lender to be material, then, within fifteen (15) days
      after demand by such Lender (with a copy to the Administrative Agent), the
      Borrowers shall pay to such Lender such additional amount or amounts as will
      compensate such Lender for such increased cost or reduction.

     

    (b) If
      any
      Lender shall have reasonably determined that, after the date hereof, the
      adoption of any applicable law, rule or regulation regarding capital adequacy,
      or any change in any such law, rule or regulation, or any change in the
      interpretation or administration thereof by any governmental authority, central
      bank or comparable agency charged with the interpretation or administration
      thereof, or any request or directive regarding capital adequacy (whether or
      not
      having the force of law) of any such authority, central bank or comparable
      agency, has or would have the effect of reducing the rate of return on capital
      of such Lender (or its Parent) as a consequence of such Lender’s obligations
      hereunder to a level below that which such Lender (or its Parent) could have
      achieved but for such adoption, change, request or directive (taking into
      consideration its policies with respect to capital adequacy) by an amount
      reasonably deemed by such Lender to be material, then from time to time, within
      fifteen (15) days after demand by such Lender (with a copy to the Administrative
      Agent), the Borrowers shall pay to such Lender such additional amount or amounts
      as will compensate such Lender (or its Parent) for such reduction.

     

    
      
        
        

      

      
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    (c) Each
      Lender will promptly notify the Borrowers and the Administrative Agent of any
      event of which it has knowledge, occurring after the date hereof, which will
      entitle such Lender to compensation pursuant to this Section and will designate
      a different Applicable Lending Office if such designation will avoid the need
      for, or reduce the amount of, such compensation and will not, in the reasonable
      judgment of such Lender, be otherwise disadvantageous to such Lender. A
      certificate of any Lender claiming compensation under this Section and setting
      forth the additional amount or amounts to be paid to it hereunder shall be
      conclusive in the absence of demonstrable error. In determining such amount,
      such Lender may use any reasonable averaging and attribution
      methods.

     

    (d) If
      at any
      time, any Lender shall be owed amounts pursuant to this Section 8.3, unless
      such
      Lender shall elect to waive the right to be paid the same, the Borrowers shall
      have the right, upon five (5) Domestic Business Day’s notice to the
      Administrative Agent to either (x) cause a bank, reasonably acceptable to the
      Administrative Agent, to offer to purchase the Commitments of such Lender for
      an
      amount equal to such Lender’s outstanding Loans, together with all fees, accrued
      interest and other amounts payable to such Lender, and to become a Lender
      hereunder, which offer such Lender is hereby required to accept, or (y) to
      repay
      in full all Loans then outstanding of such Lender, together with all fees,
      accrued interest and other amounts payable to such Lender, upon which event,
      such Lender’s Commitment shall be deemed to be cancelled pursuant to Section
      2.11(c).

     

    Section
      8.4 Taxes.

     

    (a) Any
      and
      all payments by the Borrowers under any Loan Document shall be made free and
      clear of and without deduction for any and all present or future taxes, duties,
      levies, imposts, deductions, charges or withholdings, and all liabilities with
      respect thereto, excluding, in the case of each Lender, the Fronting Lender
      and
      the Administrative Agent, taxes imposed on its income, and franchise or similar
      taxes imposed on it, by (i) any jurisdiction (or political subdivision thereof)
      of which the Administrative Agent, the Fronting Lender or such Lender, as the
      case may be, is a citizen or resident or in which such Person has an Applicable
      Lending Office, (ii) the jurisdiction (or any political subdivision thereof)
      in
      which the Administrative Agent, the Fronting Lender or such Lender is organized,
      or (iii) any jurisdiction (or political subdivision thereof) in which such
      Lender, the Fronting Lender or the Administrative Agent is presently doing
      business which taxes are imposed solely as a result of doing business in such
      jurisdiction (all such non excluded taxes, duties, levies, imposts, deductions,
      charges, withholdings and liabilities being hereinafter referred to as
“Taxes”).
      If
      the Borrowers shall be required by law to deduct any Taxes from or in respect
      of
      any sum payable under any Loan Document to the Lenders, the Fronting Lender
      or
      the Administrative Agent (i) the sum payable shall be increased by the amount
      necessary so that after making all required deductions (including deductions
      applicable to additional sums payable under this Section 8.4) such Lender,
      the
      Fronting Lender or the Administrative Agent (as the case may be) shall receive
      an amount equal to the sum it would have received had no such deductions been
      made, (ii) the Borrowers shall make such deductions and (iii) the Borrowers
      shall pay the full amount deducted to the relevant taxing authority or other
      governmental authority in accordance with applicable law.

     

    
      
        
        

      

      
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    (b) In
      addition, the Borrowers agree to pay any stamp or documentary taxes and any
      other excise or property taxes, or charges or similar levies, in each case
      to
      the extent imposed by the United States or any state (or political subdivision
      thereof) which arise from any payment made in the United States hereunder or
      under any Note or Letter of Credit or participation therein or from the
      execution or delivery of, or otherwise with respect to, this Agreement or any
      Note (hereinafter referred to as “Other
      Taxes”).

     

    (c) The
      Borrowers agree to indemnify each Lender, and the Administrative Agent for
      the
      full amount of Taxes or Other Taxes (including, without limitation, any Taxes
      or
      Other Taxes imposed or asserted by any jurisdiction on amounts payable under
      this Section 8.4) paid by such Lender or the Administrative Agent (as the case
      may be) and any liability (including penalties, interest and expenses) arising
      therefrom or with respect thereto. This indemnification shall be made within
      fifteen (15) days from the date such Lender or the Administrative Agent (as
      the
      case may be) makes demand therefor.

     

    (d) Each
      Lender organized under the laws of a jurisdiction outside the United States,
      on
      or prior to the date of its execution and delivery of this Agreement in the
      case
      of each Lender listed on the signature pages hereof and on or prior to the
      date
      on which it becomes a Lender in the case of each other Lender, and from time
      to
      time thereafter if requested in writing by the Borrowers (but only so long
      as
      such Lender remains eligible to do so), shall provide the Borrowers with
      Internal Revenue Service form W-8ECI or W-8BEN, as appropriate, or any successor
      form prescribed by the Internal Revenue Service, certifying that such Lender
      is
      entitled to benefits under an income tax treaty to which the United States
      is a
      party which reduces the rate of withholding tax on payments of interest or
      certifying that the income receivable pursuant to this Agreement is effectively
      connected with the conduct of a trade or business in the United States. If
      the
      form provided by a Lender at the time such Lender first becomes a party to
      this
      Agreement indicates a United States interest withholding tax rate in excess
      of
      zero, withholding tax at such rate shall be considered excluded from “Taxes” as
      defined in Section 8.4(a).

     

    (e) For
      any
      period with respect to which a Lender has failed to provide the Borrowers with
      the appropriate form pursuant to Section 8.4(d) (unless such failure is due
      to a
      change in treaty, law or regulation occurring subsequent to the date on which
      a
      form originally was required to be provided), such Lender shall not be entitled
      to indemnification under Section 8.4(a) with respect to Taxes imposed by the
      United States; provided,
      however,
      that
      should a Lender, which is otherwise exempt from or subject to a reduced rate
      of
      withholding tax, become subject to Taxes because of its failure to deliver
      a
      form required hereunder, the Borrowers shall take such steps as such Lender
      shall reasonably request to assist such Lender to recover such
      Taxes.

     

    (f) If
      the
      Borrowers are required to pay additional amounts to or for the account of any
      Lender pursuant to this Section 8.4, then such Lender will change the
      jurisdiction of its Applicable Lending Office so as to eliminate or reduce
      any
      such additional payment which may thereafter accrue if such change, in the
      judgment of such Lender, is not otherwise disadvantageous to such
      Lender.

     

    
      
        
        

      

      
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    (g) (i)
      if at
      any time, any Lender shall reasonably expect to be owed amounts pursuant to
      this
      Section 8.4, such Lender shall give the Administrative Agent and the Borrowers
      notice thereof (with no liability for failing to do so) as soon as reasonably
      practicable upon determining that it is reasonably likely to do so (subject
      to
      limitations on such disclosure imposed by applicable law or with the advice
      of
      counsel), and (ii) if any Lender at any time shall be owed amounts pursuant
      to
      this Section 8.4, unless such Lender shall elect to waive the right to be paid
      the same, the Borrowers shall have the right, upon five (5) Domestic Business
      Day’s notice to the Administrative Agent to either (x) cause a bank, reasonably
      acceptable to the Administrative Agent, to offer to purchase the Commitments
      of
      such Lender for an amount equal to such Lender’s outstanding Loans, together
      with all fees, accrued interest and other amounts payable to such Lender, and
      to
      become a Lender hereunder, which offer such Lender is hereby required to accept,
      or (y) to repay in full all Loans then outstanding of such Lender, together
      with
      interest and all other amounts due thereon, upon which event, such Lender’s
      Commitment shall be deemed to be cancelled pursuant to Section
      2.11(c).

     

    Section
      8.5 Alternate
      Base Rate Loans Substituted for Affected LIBOR Loans.
      If (i)
      the obligation of any Lender to make, or convert outstanding Loans to, LIBOR
      Loans
      has
      been suspended pursuant to Section 8.2 or (ii) any Lender has demanded
      compensation under
      Section 8.3 or 8.4 with respect to its LIBOR Loans and the Borrowers shall,
      by
      at least five (5)
      LIBOR
      Business Days’ prior notice to such Lender through the Administrative Agent,
      have elected that the provisions of this Section shall apply to such Lender,
      then, unless and until
      such Lender notifies the Borrowers that the circumstances giving rise to such
      suspension or demand for compensation no longer exist:

     

    (a) Borrowers
      shall be deemed to have delivered a Notice of Interest Rate Election with
      respect to such affected LIBOR Loans and thereafter all Loans which would
      otherwise be made (or continued as or converted into, as the case may be) by
      such Lender as LIBOR Loans shall be made instead as Alternate Base Rate Loans
      (on which interest and principal shall be payable contemporaneously with the
      related LIBOR Loans of the other Lenders); and

     

    (b) after
      each of its LIBOR Loans (as the case may be) has been repaid (or converted
      to a
      Alternate Base Rate Loan), all payments of principal which would otherwise
      be
      applied to repay such Loans shall be applied to repay its Alternate Base Rate
      Loans instead, and

     

    (c) Borrowers
      will not be required to make any payment which would otherwise be required
      by
      Section 2.13 with respect to such LIBOR Loans converted to Alternate Base Rate
      Loans pursuant to clause (a) above.

     

    ARTICLE
      IX

     

    MISCELLANEOUS

     

    Section
      9.1 Notices.
      All
      notices, requests and other communications to any party hereunder shall be
      in
      writing (including bank wire, telex, facsimile transmission followed
by
      telephonic confirmation or similar writing or e-mail with confirmation of
      receipt) and shall be given to such party: (x) in the case of the Borrowers,
      KeyBank (in its capacity as a Lender hereunder) and the Administrative Agent,
      at
      its address, telex number, facsimile number or e-mail address set forth on
      the
      signature pages hereof with a duplicate copy thereof, in the case
      of
      the Borrowers, to the Borrowers, at 527
      Madison Avenue, 16th
      Floor,
      New York, New York 10022, Attn: Chief Financial Officer and Controller, and
      with
      a duplicate copy, in the case of the Borrowers, to
      Paul,
      Hastings, Janofsky & Walker LLP, Attn: Robert J. Grados, Esq., (y) in the
      case of any Lender, at its address, telex number, facsimile number
      or
      e-mail address set forth in its Administrative
      Questionnaire
      or (z) in the case of any party, such other address, telex number, facsimile
      number
      or
      e-mail address as such party may hereafter specify for the purpose by notice
      to
      the Administrative Agent and the Borrowers. Each such notice, request or other
      communication shall be effective (i) if given by telex or facsimile
      transmission, when such telex or facsimile is transmitted to the telex number
      or
      facsimile number specified in this
      Section and the appropriate answerback or facsimile confirmation is received,
      (ii) if given by e-mail, when such e-mail is transmitted to the e-mail address
      specified in this Section and the appropriate receipt acknowledgement is
      received, (iii) if given by a nationally recognized overnight carrier, the
      next
      Domestic Business Day
      after
      such communication is deposited with such carrier with postage prepaid,
or
      (iv)
      if given by any other means,
      when delivered at the address specified in this Section; provided
      that
      notices to the Administrative Agent under Article II or Article VIII shall
      not
      be effective until received.

     

    
      
        
        

      

      
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    Section
      9.2 No
      Waivers.
      No
      failure or delay by the Administrative Agent or any Lender in exercising any
      right, power or privilege hereunder or under any Note shall operate as a waiver
      thereof nor shall any single or partial exercise thereof preclude any other
      or
      further exercise
      thereof or the exercise of any other right, power or privilege. The rights
      and
      remedies herein provided shall be cumulative and not exclusive of any rights
      or
      remedies provided by law.

     

    Section
      9.3 Expenses;
      Indemnification.

     

    (a) The
      Borrowers shall pay (i) all reasonable out-of-pocket costs and expenses of
      the
      Administrative Agent (including reasonable fees and disbursements of counsel
      to
      the Administrative Agent in connection with the preparation of this Agreement,
      the Loan Documents and the documents and instruments referred to therein, or
      any
      waiver or consent hereunder or any amendment hereof or any Default or alleged
      Default hereunder) and (ii) if an Event of Default occurs, all reasonable
      out-of-pocket expenses incurred by the Administrative Agent and each Lender,
      including reasonable, actual fees and disbursements of counsel for the
      Administrative Agent and each of the Lenders in connection with the enforcement
      of the Loan Documents and the instruments referred to therein and such Event
      of
      Default and collection, bankruptcy, insolvency and other enforcement proceedings
      resulting therefrom.

     

    (b) The
      Borrowers agree to indemnify the Administrative Agent and each Lender, their
      respective affiliates and the respective directors, officers, agents and
      employees of the foregoing (each an “Indemnitee”)
      and
      hold each Indemnitee harmless from and against any and all actual liabilities,
      losses, damages, costs and expenses of any kind, including, without limitation,
      the reasonable fees and disbursements of counsel, which may be incurred by
      such
      Indemnitee in connection with any investigative, administrative or judicial
      proceeding (whether or not such Indemnitee shall be designated a party thereto)
      that may at any time (including, without limitation, at any time following
      the
      payment of the Obligations) be imposed on, asserted against or incurred by
      any
      Indemnitee but excluding those liabilities, losses, damages, costs and expenses
      incurred solely by reason of the gross negligence or willful misconduct of
      any
      Indemnitee as finally determined by a court of competent jurisdiction, as a
      result of, or arising out of, or in any way related to or by reason of, (i)
      any
      of the transactions contemplated by the Loan Documents or the execution,
      delivery or performance of any Loan Document, (ii) any violation by the
      Borrowers or the Environmental Affiliates of any applicable Environmental Law,
      (iii) any Environmental Claim arising out of the management, use, control,
      ownership or operation of property or assets by the Borrowers or any of the
      Environmental Affiliates, including, without limitation, all on-site and
      off-site activities involving Materials of Environmental Concern, (iv) the
      breach of any environmental representation or warranty set forth herein, (v)
      the
      grant to the Administrative Agent and the Lenders of any Lien in any property
      or
      assets of the Borrowers or any stock or other equity interest in any Borrower,
      and (vi) the exercise by the Administrative Agent and the Lenders of their
      rights and remedies (including, without limitation, foreclosure) under any
      agreements creating any such Lien. The Borrowers’ obligations under this Section
      shall survive the termination of this Agreement and the payment of the
      Obligations.

     

    
      
        
        

      

      
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    Section
      9.4 Sharing
      of Set-Offs.
      In
      addition to any rights now or hereafter granted under applicable law or
      otherwise, and not by way of limitation of any such rights, upon the occurrence
      and during the continuance of any Event of Default, each Lender is hereby
      authorized at any time or from time to time, without presentment, demand,
      protest or other notice of any kind to the Borrowers or to any other Person,
      any
      such notice being hereby expressly waived, but subject to the prior consent
      of
      the Administrative Agent (if the taking of such action could limit or impair
      the
      rights and remedies of the Administrative Agent or the Lenders under any Loan
      Document) and to the terms and provisions
      of this Agreement and the other Loan Documents, to set off and to appropriate
      and
      apply
      any and all deposits (general or special, time or demand, provisional or final)
      and any other indebtedness in the nature of an account at any time held with
      such Lender or owing by such Lender (including, without limitation, by branches
      and
      agencies of such Lender wherever located) to or for the credit or the account
      of
      the Borrowers
      against and on account of the Obligations of the Borrowers then due and payable
      to such Lender under
      this Agreement or under any of the other Loan Documents, including, without
      limitation, all
      interests in Obligations purchased by such Lender; provided,
      however,
      notwithstanding the foregoing or anything else in this Agreement or any other
      Loan Document to the contrary, neither any of the Lenders nor the Administrative
      Agent shall have the right of set off with respect to
      any
      account, deposits or indebtedness to the extent that such account, deposits
      or
      indebtedness (a) are not the exclusive property of NorthStar or a Consolidated
      Subsidiary, (b) any Person (other than the Person with which such account has
      been established) which is not Affiliated with NorthStar, NorthStar OP or NRFC
      Sub-REIT has rights therein or (c) constitutes collateral for a secured
      financing of NorthStar or a Consolidated Party and are subject to a “control”
agreement relating to such facility. Each Lender agrees that if it shall, by
      exercising any right of set-off or counterclaim or otherwise, receive
      payment of a proportion of the aggregate amount of principal and interest due
      with respect to any Note held by it or Letter of
      Credit
      issued by it (in its capacity as a Fronting Lender) or participation therein
      which is greater than the proportion received by any other Lender in respect
      of
      the aggregate amount of principal and interest due with respect to any Note
      held
      by such other Lender or Letter of Credit issued by such other Lender (in its
      capacity as a Fronting
      Lender) or participated in by such other Lender, the Lender receiving such
      proportionately greater payment shall purchase such participations in the
Notes
      held by the other Lenders, and such other adjustments
      shall be made, as may be required so that all such payments of principal
and
      interest with respect to the Notes held by the Lenders shall be shared by the
      Lenders pro rata; provided
      that
      nothing in this Section shall impair the right of any Lender to exercise any
      right of set-off or counterclaim it may have to any deposits not received
      in connection with the Loans and to apply the amount subject to such exercise
      to
      the payment of indebtedness of the Borrowers other than its indebtedness under
      the Notes. The Borrowers agree, to the fullest extent they may effectively
      do
      so
      under applicable law, that any holder
      of
      a participation in a Note,
      whether or not acquired pursuant to the foregoing arrangements, may exercise
      rights of set-off or counterclaim and other rights with respect to such
participation
      as fully as if such holder of a participation were a direct creditor of the
      Borrowers in the amount of such participation. Notwithstanding anything to
      the
      contrary contained herein, any Lender may, by separate agreement with the
      Borrowers, waive its right to set off contained herein
      or
      granted by law and any such written waiver shall be effective against such
      Lender under this Section 9.4.

     

    
      
        
        

      

      
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    Section
      9.5 Amendments
      and Waivers. Any
      provision of this Agreement or the Notes or other Loan Documents may be amended
      or waived if, but only if, such amendment or
      waiver
      is in writing and is signed by the Borrowers and the Required Lenders (and,
      if
      the rights or
      duties
      of the Administrative Agent are affected thereby, by the Administrative Agent)
      except that, to the extent provided for in this Agreement, certain amendments
      and/or waivers may be consented to by the Borrowers and the Administrative
      Agent
      without the necessity of obtaining the consent of the Required Lenders;
provided
      that,
      except to reflect or implement matters otherwise specifically provided for
      in
      this Agreement, no such amendment or waiver with respect to this
      Agreement, the Notes or any other
      Loan Documents shall, unless signed by the Lenders affected thereby, (i)
      increase or decrease the Commitment of any Lender or
      subject any Lender to any additional obligation, (ii) reduce the principal
      of or
      rate of interest on any
      Loan
      or any Fees hereunder, (iii) postpone the date fixed for any payment of
      principal of or interest on any Loan or any Fees hereunder or for any reduction
      or termination of any Commitment,
      (iv) change the percentage of the Commitments or of the aggregate unpaid
      principal amount of the Notes, or the number of Lenders, which shall be required
      for the Lenders or any of them to take any action under this Section or any
      other provision of
      this
      Agreement (including any amendment of the term “Required Lenders”), (v) modify
      the provisions of Section 9.15, (vi) permit Liens on the Borrowing Base Assets
      (other than Liens in favor of the Administrative Agent for the ratable benefit
      of the Lenders), (vii) modify the provisions of this Section 9.5, or (viii)
      release any Borrower or any Guarantor of its obligations under the Loan
      Documents except as expressly permitted hereunder. 

     

    Section
      9.6 Successors
      and Assigns.

     

    (a) The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns, except that
      the
      Borrowers may not assign or otherwise transfer any of their rights under this
      Agreement or the other Loan Documents without the prior written consent of
      all
      Lenders and the Administrative Agent. The Administrative Agent and the Lenders
      shall not assign their respective interests under this Agreement except as
      set
      forth in Section 7.8 (with respect to the Administrative Agent) and this Article
      IX (with respect to the Lenders).

     

    
      
        
        

      

      
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    (b) Any
      Lender may, with the prior written consent of the Administrative Agent and
      the
      Borrowers (which consent in each case shall not unreasonably be withheld,
      delayed or conditioned) at any time assign to one or more Eligible Assignees
      (each, an “Assignee”)
      all,
      or a portion of, its rights and obligations under this Agreement, its Note
      and
      the other Loan Documents, provided,
      however,
      (i) no
      such consent by the Borrowers shall be required (x) if a Default or Event of
      Default exists, or (y) in the case of an assignment to another Lender or to
      an
      Affiliate of another Lender, (ii) any partial assignment shall be in an amount
      at least equal to $5,000,000 and, after giving effect to such assignment, the
      assigning Lender (unless it has sold its entire remaining Commitment and
      outstanding Loans) holds a Commitment of at least $5,000,000, and (iii) such
      Assignee shall assume the assigned rights and obligations, pursuant to an
      Assignment and Assumption Agreement in substantially the form of Exhibit
      “B”
hereto,
      executed by such Assignee and such transferor Lender. Upon execution and
      delivery of an Assignment and Assumption Agreement and payment by such Assignee
      to such transferor Lender of an amount equal to the purchase price agreed
      between such transferor Lender and such Assignee, such Assignee shall be a
      Lender party to this Agreement and shall have all the rights and obligations
      of
      a Lender with a Commitment as set forth in the applicable Assignment and
      Assumption Agreement, and no further consent or action by any party shall be
      required and the transferor Lender shall be released from its obligations
      hereunder to a corresponding extent. Upon the consummation of any assignment
      pursuant to this subsection (b), the transferor Lender, the Administrative
      Agent
      and the Borrowers shall make appropriate arrangements so that, if required,
      a
      new Note is issued to the Assignee upon the return to the Borrowers of the
      old
      Note marked “cancelled”. In connection with any such assignment, the transferor
      Lender shall pay to the Administrative Agent an administrative fee for
      processing such assignment in the amount of $3,500. If the Assignee is not
      incorporated under the laws of the United States of America or a state thereof,
      it shall deliver to the Borrowers and the Administrative Agent certification
      as
      to exemption from deduction or withholding of any United States federal income
      taxes in accordance with Section 8.4. Any assignment made during the
      continuation of an Event of Default shall not be affected by any subsequent
      cure
      or waiver of such Event of Default.

     

    (c) Any
      Lender may at any time grant to one or more banks or other financial
      institutions (in each case, a “Participant”)
      participating interests in its Commitment or any or all of its Loans. In the
      event of any such grant by a Lender of a participating interest to a
      Participant, whether or not upon notice to the Borrowers and the Administrative
      Agent, such Lender shall remain responsible for the performance of its
      obligations hereunder, and the Borrowers and the Administrative Agent shall
      continue to deal solely and directly with such Lender in connection with such
      Lender’s rights and obligations under this Agreement. Any agreement pursuant to
      which any Lender may grant such a participating interest shall provide that
      such
      Lender shall retain the sole right and responsibility to enforce the obligations
      of the Borrowers hereunder including, without limitation, the right to approve
      any amendment, modification or waiver of any provision of this Agreement;
provided
      that
      such participation agreement may provide that such Lender will not agree to
      any
      modification, amendment or waiver of this Agreement described in clause (i),
      (ii), or (iii) of Section 9.5 without the consent of the Participant. The
      Borrowers agree that each Participant shall, to the extent provided in its
      participation agreement, be entitled to the benefits of Article VIII with
      respect to its participating interest. An assignment or other transfer which
      is
      not permitted by subsection (b), above, or (d), below, shall be given effect
      for
      purposes of this Agreement only to the extent of a participating interest
      granted in accordance with this subsection (c).

     

    (d) Any
      Lender may at any time assign all or any portion of its rights under this
      Agreement and its Note to a Federal Reserve Bank. No such assignment shall
      release the transferor Lender from its obligations hereunder.

     

    
      
        
        

      

      
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    (e) No
      Assignee, Participant or other transferee of any Lender’s rights shall be
      entitled to receive any greater payment under Section 8.3 or 8.4 than such
      Lender would have been entitled to receive with respect to the rights
      transferred, unless such transfer is made with the Borrowers’ prior written
      consent or by reason of the provisions of Section 8.2, 8.3 or 8.4 requiring
      such
      Lender to designate a different Applicable Lending Office under certain
      circumstances or at a time when the circumstances giving rise to such greater
      payment did not exist.

     

    Section
      9.7 Collateral.
      Each of
      the Lenders represents to the Administrative Agent and each of the other Lenders
      that it in good faith is not relying upon any “margin stock” (as defined
      in Regulation U) as collateral in the extension or maintenance of the credit
      provided for in this Agreement.

     

    Section
      9.8 Governing
      Law; Submission to Jurisdiction.

     

    (a) THIS
      AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS
      OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE CONSTRUED
      IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW
      YORK,
      WITHOUT
      GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF. 

     

    (b) Any
      legal
      action or proceeding with respect to this Agreement or any other Loan Document
      and any action for enforcement of any judgment in respect thereof shall be
      brought non-exclusively in the courts of the State of New York or of the United
      States of America for the Southern District of New York, and, by execution
      and
      delivery of this Agreement, the Borrowers hereby accept for themselves and
      in
      respect of their property, generally and unconditionally, the non-exclusive
      jurisdiction of the aforesaid courts and appellate courts. The Borrowers
      irrevocably consent to the service of process out of any of the aforementioned
      courts in any such action or proceeding by the hand delivery, or mailing of
      copies thereof by registered or certified mail, postage prepaid, to the
      Borrowers at their address set forth below. The Borrowers hereby irrevocably
      waive any objection which they may now or hereafter have to the laying of venue
      of any of the aforesaid actions or proceedings arising out of or in connection
      with this Agreement or any other Loan Document brought in the courts referred
      to
      above and hereby further irrevocably waive and agree not to plead or claim
      in
      any such court that any such action or proceeding brought in any such court
      has
      been brought in an inconvenient forum. Nothing herein shall affect the right
      of
      the Administrative Agent to serve process in any other manner permitted by
      law
      or to commence legal proceedings or otherwise proceed against the Borrowers
      in
      any other jurisdiction.

     

    Section
      9.9 Marshalling;
      Recapture.
      Neither
      of the Administrative Agent nor any Lender shall be under any obligation to
      marshal any assets in favor of the Borrowers or any other
      party or against or in payment of any or all of the Obligations. To the extent
      any Lender receives any payment by or on behalf of the Borrowers in connection
      with this Agreement, which payment or any part thereof is subsequently
      invalidated, declared to be fraudulent or preferential, set aside or
required
      to be repaid to the Borrowers or their estate, trustee, receiver, custodian
      or
      any other party under any bankruptcy law, state or federal law, common law
      or
      equitable cause, then to the extent of such payment or repayment, the Obligation
      or part thereof which
      has
      been paid, reduced or satisfied by the amount so repaid shall be reinstated
      by
      the amount
      so
      repaid and shall be included within the liabilities of the Borrowers to such
      Lender as of the date such initial payment, reduction or satisfaction
      occurred.

     

    
      
        
        

      

      
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    Section
      9.10 Counterparts;
      Integration; Effectiveness.
      This
      Agreement may be signed in any number of counterparts, each of which shall
      be an
      original, with the same effect as if
      the
      signatures thereto and hereto were upon the same instrument. This Agreement
      constitutes the entire agreement and understanding among the parties hereto
      and
      supersedes any and all prior agreements and understandings, oral or written,
      relating to the subject matter hereof. This Agreement shall
      become effective upon receipt by the Administrative Agent and the Borrowers
      of
      counterparts hereof signed by each of the parties hereto (or, in the case of
      any
      party as to which
      an
      executed counterpart shall not have been received, receipt by the Administrative
      Agent in form satisfactory to it of telegraphic, telex or other written
      confirmation from such party of execution of a counterpart hereof by such
      party).

     

    Section
      9.11 WAIVER
      OF JURY TRIAL.
      EACH OF
      THE BORROWERS, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY
      WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING
OUT
      OF OR
      RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     

    Section
      9.12 Survival.
      All
      indemnities set forth herein shall survive the execution and delivery of this
      Agreement and the other Loan Documents and the making and repayment of the
      Loans
      hereunder.

     

    Section
      9.13 Domicile
      of Loans.
      Each
      Lender may transfer and carry its Loans at, to or for the account of any
      domestic or foreign branch office, subsidiary or affiliate of such
      Lender.

     

    Section
      9.14 Limitation
      of Liability.
      No
      claim may be made by the Borrowers or any other Person acting by or through
      Borrowers against the Administrative Agent or any Lender or the affiliates,
      directors, officers, employees, attorneys or agent of any of them for any
      consequential or punitive damages in respect of any claim for breach of contract
      or any other theory
      of
      liability arising out of or related to the transactions contemplated by this
      Agreement or by the other Loan Documents, or any act, omission or event
      occurring in connection therewith; and
      the
      Borrowers hereby waive, release and agree not to sue upon any claim for any
      such
      damages, whether or not accrued and whether or not known or suspected to exist
      in its favor.

     

    Section
      9.15 Recourse
      Obligation.
      This
      Agreement and the Obligations hereunder are fully recourse to the Borrowers.
      Notwithstanding the foregoing, no recourse under or upon any obligation,
      covenant, or agreement contained in this Agreement shall be had against
any
      officer, director, shareholder or employee of the Borrowers except for damages,
      losses, costs and expenses incurred by any Lender or the Administrative Agent
      with respect to any fraud or misappropriation of funds on the part of such
      officer, director, shareholder or employee.

     

    Section
      9.16 Confidentiality.
      The
      Administrative Agent and each Lender (each, a “Lending
      Party”)
      agrees
      to keep confidential any information furnished or made available to it
      by the
      Borrowers pursuant to this Agreement; provided
      that
      nothing herein shall prevent any Lending Party from disclosing such information
      (a) to any other Lending Party, or any officer, director, employee, agent,
      or
      advisor of any Lending Party, (b) to
      any
      other Person
      if
      reasonably incidental to the administration
      of the Facility provided herein such as an attorney or accountant for a Lending
      Party, provided such Person agrees to maintain the confidentiality of such
      information and uses same only in connection with the administration or
      enforcement of the Facility, (c) as
      required by any law, rule, or regulation, (d) upon the order of any court or
      administrative agency, (e) upon the request or demand of any regulatory agency
      or authority, (f) that is or becomes available to the public or that is or
      becomes available to any Lending Party other than as
      a
      result of a disclosure by any Lending Party prohibited by this Agreement, (g)
      in
      connection with any litigation to which such Lending Party or any of its
affiliates
      may be a party, (h) to the extent necessary
      in connection with the exercise of any remedy
      under this Agreement or any other Loan
      Document, and (i) subject to provisions substantially
      similar to those contained in this Section, to any actual or proposed
      participant or assignee.
      The
      Borrowers may disclose information concerning or relating to this Facility
      as
      required by any law, rule or regulation, upon the order of any court or
      administrative agency, or based upon the reasonable advice of counsel that
      such
      disclosure should be made for legal purposes.

     

    
      
        
        

      

      
        -80-

        
          

        

      

      
        
        

      

    

    Section
      9.17 Legal
      Rate.
      Notwithstanding anything in this Agreement or any Loan Document to the contrary,
      if at any time the interest rate applicable to the Notes, together
      with all fees and charges which are treated as interest under applicable law
      (collectively, the
      “Charges”),
      as
      provided for in this Agreement or in any other document executed in connection
      herewith, or otherwise contracted for, charged, received, taken or reserved
      by
      the Administrative
      Agent, on behalf of the Lenders, shall exceed the maximum lawful rate (the
      “Legal
      Rate”)
      which
      may be contracted for, charged, taken, received or reserved by the
      Administrative Agent, on behalf of the Lenders in accordance with applicable
      law, the rate of interest payable under
      such Notes, together with all Charges payable, shall be limited to the Legal
      Rate and any interest
      or Charges not so charged, taken, received or reserved by Administrative Agent,
      on behalf
      of
      the Lenders at such time shall be spread, prorated or amortized over the term
      of
      such Notes to the fullest extent permitted by law.

     

    Section
      9.18 USA
      Patriot Act Notice.
      Each
      Lender that is subject to the Act (as hereinafter defined) and the
      Administrative Agent (for itself and not on behalf of any Lender) hereby
      notifies the Borrower that pursuant to the requirements of the USA Patriot
      Act
      (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "Act"),
      it
      is required to obtain, verify and record information that identifies the
      Borrower, which information includes the name and address of the Borrower and
      other information that will allow such Lender or the Administrative Agent,
      as
      applicable, to identify the Borrower in accordance with the Act.

     

    [Remainder
      of page intentionally left blank]

     

     

    
      
        
        

      

      
        -81-

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this
      Agreement to be duly executed and delivered as of the date first above
      written.

     

     

     

     

    
      	 	
              BORROWERS:

               

              NORTHSTAR
                REALTY FINANCE CORP., a Maryland corporation

               

              By: /s/
                Albert Tylis

              Name: Albert
                Tylis

              Title: General
                Counsel and Assistant Secretary

               

               

              NORTHSTAR
                REALTY FINANCE LIMITED PARTNERSHIP, a Delaware limited
                partnership

            
	 	 
	 	
              By:

            	
              NorthStar
                Realty Finance Corp., a Maryland corporation, its general
                partner

            
	 	 	 
	 	 	 
	 	 	
              By: /s/
                Albert Tylis

              Name: Albert
                Tylis

              Title: General
                Counsel and Assistant Secretary: 

            
	 	 
	 	
              NRFC
                SUB-REIT CORP., a Maryland corporation

               

              By: /s/
                Albert Tylis

              Name: Albert
                Tylis

              Title: General
                Counsel and Assistant Secretary 

               

               

              NS
                ADVISORS, LLC, a Delaware limited liability company

               

              By: /s/
                Albert Tylis

              Name: Albert
                Tylis

              Title: General
                Counsel and Assistant Secretary 

               

            

    

     

     

    
      
        
        

      

      
        S-1

        
          

        

      

      
        
        

      

    

    
 

    
      	 	 	KEYBANK
              NATIONAL ASSOCIATION, as Administrative Agent
	 	 	 
	 	 	 
	Facsimile
              Number: 617-385-6292	By:	
              /s/
                Kathleen M. Ahern

            
	
            	 	Name:	Kathleen M.
              Ahern
	Address:	225 Franklin
              Street,
              18th
              Floor	Title:	Senior
              Banker
	 	Boston, Massachusetts
              02110	 	 
	 	 	 	 
	Attn:	Ms. Kathleen
              Ahern	 	 
	 	 	 	 

    

    

    
      
        
        

      

      
        S-2

        
          

        

      

      
        
        

      

    

     

    Commitment

    $30,000,000.00

     

     

    
      	 	KEYBANK NATIONAL ASSOCIATION,
              as a
              Lender 
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Kathleen M. Ahern

            
	 	 	
              Name:
                 Kathleen
                M. Ahern

            
	 	 	Title:    Senior
              Banker

    

     

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    Commitment

    $30,000,000.00

     

     

    
      
        	 	BANK OF AMERICA, N.A.,
                as a Lender
                
	 	 	 
	 	 	 
	 	
                By:

              	
                
                  /s/
                    Michael W. Edwards

                

              
	 	 	
                Name:  Michael
                  W. Edwards

              
	 	 	Title:    Senior
                Vice President

      

       

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    Commitment

    $25,000,000.00

     

    
       

      
        
          	 	CITICORP NORTH AMERICA,
                  INC., as a
                  Lender 
	 	 	 
	 	 	 
	 	
                  By:

                	
                  
                    
                      /s/
                        Ricardo James

                    

                  

                
	 	 	
                  Name:  Ricardo
                    James

                
	 	 	Title:    Director

        

         

      

    

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    Commitment

    $15,000,000.00

     

    
      
         

        
          
            	 	WESTLB AG, NEW YORK
                    BRANCH, as a
                    Lender
	 	 	 
	 	 	 
	 	
                    By:

                  	
                    
                      
                        
                          /s/
                            Lillian Tung Lum

                        

                      

                    

                  
	 	 	
                    Name:  Lillian
                      Tung Lum

                  
	 	 	Title:    Executive
                    Director
	 	 	 
	 	 	 
	 	
                    By:

                  	
                    /s/
                      Pui Chow

                  
	 	 	
                    Name:  Pui
                      Chow

                  
	 	 	Title:    Director

          

           

        

      

    

     

     

    
      
        
        

      

      
        -6-

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