Document:

EX-10.5 FORM OF INDEPENDENT DIRECTORS COMP PLAN

EXHIBIT 10.5

 

NORTHSTAR REAL ESTATE INCOME TRUST, INC.

INDEPENDENT DIRECTORS COMPENSATION PLAN

 

 

 

NORTHSTAR REAL ESTATE INCOME TRUST, INC.

INDEPENDENT DIRECTORS COMPENSATION PLAN

ARTICLE 1

PURPOSE

     1.1. PURPOSE. The purpose of the Plan is to attract, retain and compensate
highly-qualified individuals who are not employees of NorthStar Real Estate Income Trust, Inc. or
any of its subsidiaries or affiliates for service as members of the Board by providing them with
competitive compensation and an ownership interest in the Stock of the Company. The Company
intends that the Plan will benefit the Company and its stockholders by allowing Independent
Directors to have a personal financial stake in the Company through an ownership interest in the
Stock and will closely associate the interests of Independent Directors with that of the Company’s
stockholders.

     1.2. ELIGIBILITY. Independent Directors of the Company who are Eligible Participants,
as defined below, shall automatically be participants in the Plan.

ARTICLE 2

DEFINITIONS

     2.1. DEFINITIONS. Capitalized terms used herein and not otherwise defined shall have
the meanings given such terms in the Incentive Plan. Unless the context clearly indicates
otherwise, the following terms shall have the following meanings:

     “Base Annual Retainer” means the annual retainer (excluding Meeting Fees and
expenses) payable by the Company to an Independent Director pursuant to Section 5.1 hereof for
service as a director of the Company (i.e., excluding any Supplemental Annual Retainer), as
such amount may be changed from time to time.

     “Effective
Date” of the Plan has the meaning set forth in Section 9.4 of the Plan.

     “Eligible Participant” means any person who is an Independent Director on the Effective Date
or becomes an Independent Director while this Plan is in effect; except that during any period a
director is prohibited from participating in the Plan by his or her employer or otherwise waives
participation in the Plan, such director shall not be an Eligible Participant.

     “Incentive Plan” means the NorthStar Real Estate Income Trust, Inc. Long Term Incentive Plan,
or any subsequent equity compensation plan approved by the Board and designated as the Incentive
Plan for purposes of this Plan.

     “Meeting Fees” means fees for attending a meeting of the Board or one of its committees as set
forth in Section 5.3 hereof.

     “Plan” means this NorthStar Real Estate Income Trust, Inc. Independent Directors Compensation
Plan, as amended from time to time.

     “Plan Year(s)” means the approximate twelve-month periods between annual meetings of the
stockholders of the Company, which, for purposes of the Plan, are the periods for which annual
retainers are earned.

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     “Supplemental Annual Retainer” means the annual retainer (excluding Meeting Fees and
expenses) payable by the Company to an Independent Director pursuant to Section 5.2 hereof for
service as the chair of the Audit Committee of the Board, as such amount may be changed from time
to time.

ARTICLE 3

ADMINISTRATION

     3.1. ADMINISTRATION. The Plan shall be administered by the Board. Subject to the
provisions of the Plan, the Board shall be authorized to interpret the Plan, to establish, amend
and rescind any rules and regulations relating to the Plan, and to make all other determinations
necessary or advisable for the administration of the Plan. The Board’s interpretation of the Plan,
and all actions taken and determinations made by the Board pursuant to the powers vested in it
hereunder, shall be conclusive and binding upon all parties concerned, including the Company, its
stockholders and persons granted awards under the Plan. The Board may appoint a plan administrator
to carry out the ministerial functions of the Plan, but the administrator shall have no other
authority or powers of the Board.

     3.2. RELIANCE. In administering the Plan, the Board may rely upon any information
furnished by the Company, its public accountants and other experts. No individual will have
personal liability by reason of anything done or omitted to be done by the Company or the Board in
connection with the Plan. This limitation of liability shall not be exclusive of any other
limitation of liability to which any such person may be entitled under the Company’s certificate of
incorporation or otherwise.

ARTICLE 4

SHARES

     4.1. SOURCE OF SHARES FOR THE PLAN. The shares of Stock that may be issued pursuant
to the Plan shall be issued under the Incentive Plan, subject to all of the terms and conditions of
the Incentive Plan. The terms contained in the Incentive Plan are incorporated into and made a
part of this Plan with respect to shares of stock, Restricted Stock and any other equity granted pursuant
hereto and any such grant shall be governed by and construed in accordance with the Incentive
Plan. In the event of any actual or alleged conflict between the provisions of the Incentive Plan
and the provisions of this Plan, the provisions of the Incentive Plan shall be controlling and
determinative. This Plan does not constitute a separate source of
shares for the grant of Restricted stock or shares of stock described herein.

ARTICLE 5

RETAINERS, MEETING FEES AND EXPENSES

     5.1. BASE ANNUAL RETAINER. Each Eligible Participant shall be paid a Base Annual
Retainer for service as a director during each Plan Year payable in
such form as shall be elected by the Eligible Participant in
accordance with Section 6.1. The amount of the Base Annual Retainer shall be established from time to time by the Board. Until changed by the Board, the Base
Annual Retainer for a full Plan Year shall be $45,000. The Base Annual  Retainer shall be
payable in approximately equal quarterly installments in advance, beginning on the date of the
annual stockholders meeting. A pro rata Base Annual Retainer will be paid to any person who
becomes an Eligible Participant on a date other than the beginning of a Plan Year, based on the
number of full months he or she serves as an Independent Director during the Plan Year. Payment of
such prorated Base Annual Retainer shall begin on the date that the person first becomes an
Eligible Participant, and shall resume on a quarterly basis

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thereafter. In no event shall any installment of the Base Annual Retainer be paid later than
March 15 of the year following the year to which such installment relates.

     5.2. AUDIT COMMITTEE CHAIRPERSON SUPPLEMENTAL ANNUAL RETAINER. The chairperson
of the Audit Committee of the Board shall be paid a Supplemental Annual Retainer for his or
her service as such chairperson during a Plan Year, payable at the same times as installments of
the Base Annual Retainer are paid and in such form as shall be
elected by such chairperson in accordance with Section 6.1. The amount of the Supplemental Annual Retainer for the
chairperson of the Audit Committee shall be established from time to time by the Board. Until
changed by the Board, the Supplemental Annual Retainer for a full Plan Year for the
chairperson of the Audit Committee shall be $10,000. A prorata Supplemental Annual Retainer
will be paid to any Eligible Participant who becomes the chairperson of the Audit Committee of the
Board on a date other than the beginning of a Plan Year, based on the number of full months he or
she serves as a chairperson of the Audit Committee of the Board during the Plan Year. Payment of
such prorated Supplemental Annual Retainer shall begin on the date that the person first
becomes chairperson of the Audit Committee, and shall resume on a quarterly basis thereafter. In no
event shall any installment of the Supplemental Annual Retainer be paid later than March 15
following the end of the given quarter.

     5.3. MEETING FEES. Each Independent Director shall be paid Meeting Fees for attending
meetings of the Board or its committees payable in such form as shall
be elected by the Independent Director in accordance with
Section 6.2. The amount of the Meeting Fees shall be established from
time to time by the Board. Until changed by the Board, the Meeting Fee for attending a meeting of
the Board in person shall be $2,500 and the Meeting Fee for attending a meeting of a committee of
the Board in person shall be $2,000. Until changed by the Board, the Meeting Fee for participation
in a telephonic meeting of the Board or a committee of the Board, provided that minutes are kept at
such telephonic meeting, shall be $1,000 if such meeting lasts less than one hour, or $1,500 if
such meeting lasts more than one hour. If an Independent Director attends a Board meeting and a
committee meeting on a single day, he or she shall only receive a Meeting Fee for the Board meeting
attended. Meeting Fees shall be payable on the date of the applicable meeting to which they
relate.

     5.4. TRAVEL EXPENSE REIMBURSEMENT. All Eligible Participants shall be reimbursed for
reasonable travel expenses (including spouse’s expenses to attend events to which spouses are
invited) in connection with attendance at meetings of the Board and its committees, or other
Company functions at which the Chief Executive Officer or Chair of the Board requests the
Independent Director to participate. Notwithstanding the foregoing, the Company’s reimbursement
obligations pursuant to this Section 5.4 shall be limited to expenses incurred during such
director’s service as an Independent Director. Such payments will be made within 30 days after
delivery of the Independent Director’s written requests for payment, accompanied by such evidence
of expenses incurred as the Company may reasonably require, but in no event later than the last day
of the Independent Director’s tax year following the tax year in which the expense was incurred.
The amount reimbursable in any one tax year shall not affect the amount reimbursable in any other
tax year. Independent Directors’ right to reimbursement pursuant to this Section 5.4 shall not be
subject to liquidation or exchange for another benefit.

ARTICLE 6

ALTERNATIVE FORM OF PAYMENT FOR BASE ANNUAL RETAINER, 

SUPPLEMENTAL ANNUAL RETAINER AND MEETING FEES

     6.1.         PAYMENT OF BASE ANNUAL RETAINER AND SUPPLEMENTAL ANNUAL
RETAINER. At the election of each Eligible Participant, the Base Annual Retainer or the Supplemental Annual Retainer
for a given Plan Year shall be either (i) payable in cash in approximately equal quarterly installments in
advance, beginning on the date of the annual stockholders meeting, or (ii) subject to share availability
under the Incentive Plan, payable by a grant on the day an installment of the Base Annual Retainer or
Supplemental Annual Retainer is normally paid (the “Stock Grant Date”) of that number of shares of
Stock (rounded up to the nearest whole share) determined by dividing the Base Annual Retainer or
Supplemental Annual Retainer installment otherwise payable by (a) if the Stock Grant Date occurs
during any public offering of the Company’s Stock, the offering price of the Stock, net of dealer
manager fees and selling commissions, or (b) if the Stock Grant Date occurs after the termination
of any public offering of the Company's Stock, the per share estimated value of the Stock disclosed
in the Company’s most recent annual report distributed to investors pursuant
to Section 13(a) of the 1934 Act, or (c) in any case, the
Fair Market Value as otherwise determined by the Committee.  Any shares of Stock granted under the Plan as the Base Annual
Retainer or Supplemental Annual Retainer under clause (ii) above will be 100% vested and nonforfeitable as of the Stock
Grant Date, and the Eligible Participant receiving such shares of Stock (or his or her custodian, if any) will have
immediate rights of ownership in the shares of Stock, including the right to vote the shares of Stock and the right
to receive dividends or other distributions thereon.

     6.2.         PAYMENT
OF MEETING FEES. At the election of each
Eligible Participant, the Meeting Fees to be earned during a Plan Year by such Eligible Participant shall be
either (i) payable in cash at each meeting date or such other date(s) on which such fees are normally
paid, or (ii) subject to share availability under the Incentive Plan, payable by a grant on the day
following each meeting date (the “Meeting Fee Stock Grant Date”) of that number of shares of
Stock (rounded up to the nearest whole share) determined by dividing the Meeting Fee
otherwise payable by (a) if the Meeting Fee Stock Grant Date occurs during any public
offering of the Company's Stock, the offering price of the Stock, net of dealer manager fees and
selling commissions, or (b) if the Meeting Fee Stock Grant Date occurs after the termination of
any public offering of the Company’s Stock, the per share estimated value of the Stock disclosed
in the Company's most recent annual report distributed to investors pursuant to Section 13(a) of
the 1934 Act, or (c) in any case, the Fair Market Value as otherwise determined by
the Committee. Any shares of Stock granted under the Plan as Meeting Fees under
clause (ii) above will be 100% vested and nonforfeitable as of the Meeting Fee
Stock Grant Date, and the Eligible Participant receiving such shares of
Stock (or his or her custodian, if any) will have immediate rights of
ownership in the shares of Stock, including the right to vote the shares of Stock
and the right to receive dividends or other distributions thereon.

     6.3.         TIMING
AND MANNER OF PAYMENT ELECTION. Each Eligible
Participant shall elect the form of payment desired for his or her Base Annual Retainer, Supplemental
Annual Retainer (if applicable) and Meeting Fees for a Plan Year by delivering a valid election form in such form as the
Board or the plan administrator shall prescribe (the “Election Form”) to the Board or the plan administrator prior to
the beginning of such Plan Year, which will be effective as of the first day of the Plan Year beginning after the
Board or the plan administrator receives the Eligible Participant’s Election Form. The Election Form signed by
the Eligible Participant prior to the Plan Year will be irrevocable for the coming Plan Year. However, prior to
the commencement of the following Plan Year, an Eligible Participant may change his or her election for future
Plan Years by executing and delivering a new Election Form indicating different choices. If an Eligible
Participant fails to deliver a new Election Form prior to the commencement of the new Plan Year, his or
her Election Form in effect during the previous Plan Year shall continue in effect during the new Plan
Year. If no Election Form is filed or effective, or if there are insufficient shares of Stock in the
Incentive Plan, the Base Annual Retainer, Supplemental Annual Retainer (if applicable) and Meeting
Fees will be paid in cash.

ARTICLE 7
EQUITY COMPENSATION

     7.1. INITIAL RESTRICTED STOCK GRANT. Subject to share availability under the Incentive
Plan, each Independent Director shall receive on the first date he or she is initially elected or
appointed to the Board, 5,000 shares of Restricted Stock. Notwithstanding the

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foregoing, each Independent Director elected or appointed to the Board prior to the Company’s
initial public offering of its common stock being declared effective by the Securities and Exchange
Commission (the “IPO Effective Date”) and who remains as an Independent Director as of such date
shall receive such Restricted Stock grant on the IPO Effective Date. Such Restricted Stock shall be
subject to the terms and restrictions described below in this Article 7.

     7.2. SUBSEQUENT RESTRICTED STOCK GRANT. Subject to share availability under the
Incentive Plan, on the date following an Independent Director’s subsequent re-election to the
Board, such director shall receive 2,500 shares of Restricted Stock.

     7.3. TERMS AND CONDITIONS OF RESTRICTED STOCK. Shares of Restricted Stock shall be
evidenced by a written Award Certificate, and shall be subject to such restrictions and risk of
forfeiture as determined by the Board, and shall be granted under and pursuant to the terms of the
Incentive Plan. Unless and until provided otherwise by the Board, the Restricted Stock granted
pursuant to Section 7.1 and Section 7.2 herein shall vest and become non-forfeitable in equal
quarterly installments beginning on the first day of the first quarter following the Grant Date;
provided, however, that the shares of Restricted Stock shall become fully vested on the earlier
occurrence of (i) the termination of the Independent Director’s service as a director of the
Company due to his or her death or Disability, or (ii) a Change in Control of the Company. If the
Independent Director’s service as a director of the Company terminates other than as described in
clause (i) of the foregoing sentence, then the Independent Director shall forfeit all of his or her
right, title and interest in and to any unvested shares of Restricted Stock as of the date of such
termination from the Board and such Restricted Stock shall be reconveyed to the Company without
further consideration or any act or action by the Independent Director.

ARTICLE 8

AMENDMENT, MODIFICATION AND TERMINATION

     8.1. AMENDMENT, MODIFICATION AND TERMINATION. The Board may, at any time and from
time to time, amend, modify or terminate the Plan without stockholder approval; provided, however,
that if an amendment to the Plan would, in the reasonable opinion of the Board, require stockholder
approval under applicable laws, policies or regulations or the applicable listing or other
requirements of a securities exchange on which the Stock is listed or traded, then such amendment
shall be subject to stockholder approval; and provided further, that the Board may condition any
other amendment or modification on the approval of stockholders of the Company for any reason.

ARTICLE 9

GENERAL PROVISIONS

     9.1. ADJUSTMENTS. The adjustment provisions of the Incentive Plan shall apply with
respect to Restricted Stock or other equity awards outstanding or to be granted pursuant to this
Plan.

     9.2. DURATION OF THE PLAN. The Plan shall remain in effect until terminated by the
Board.

     9.3. EXPENSES OF THE PLAN. The expenses of administering the Plan shall be borne by
the Company.

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     9.4. EFFECTIVE DATE. The Plan was originally adopted by the Board on
                                                            , 2009, and became effective on that date (the “Effective Date”).

*****

     The foregoing is hereby acknowledged as being the NorthStar Real Estate Income Trust, Inc.
Independent Directors Compensation Plan as adopted by the Board.

	 	 	 	 	 	 	 
	 	 	NORTHSTAR REAL ESTATE INCOME TRUST, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

- 5 -EX-10.6 FORM OF DISTRIBUTION SUPPORT AGREEMENT

EXHIBIT 10.6

DISTRIBUTION SUPPORT AGREEMENT

     DISTRIBUTION SUPPORT AGREEMENT (the “Agreement”) dated                     , 2009, by and between
NorthStar Realty Finance Corp. (“NRFC”) and NorthStar Real Estate Income Trust, Inc. (the
“Company”).

     WHEREAS, the Company has registered for public sale (the “Offering”) a maximum of
$1,100,000,000 in shares of its common stock, $0.01 par value per share (the “Shares”), of
which amount: (a) up to $1,000,000,000 in Shares are being offered to the public pursuant to the
Company’s primary offering; and (b) up to $100,000,000 in Shares are being offered to stockholders
of the Company (the “Stockholders”) pursuant to the Company’s distribution reinvestment
plan;

     WHEREAS, the net proceeds of the Offering will be invested in a diversified portfolio of
commercial real estate loans, commercial real-estate related debt securities and other select real
estate equity investments;

     WHEREAS, to ensure that the Company has a sufficient amount of funds to pay cash distributions
to Stockholders during the Offering, NRFC has agreed to purchase up to an aggregate of $10,000,000
in Shares in accordance with the terms set forth herein;

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

     1. Definitions. The following terms, when used herein, shall have the following
meanings:

     “AFFO” means the Company’s adjusted funds from operations as disclosed in the
Company’s Periodic Report filed with respect to the applicable period.

     “Affiliate” means with respect to any Person, (i) any Person directly or indirectly
controlling, controlled by, or under common control with such other Person; (ii) any Person
directly or indirectly owning, controlling, or holding with the power to vote 10% or more of the
outstanding voting securities of such other Person; (iii) any legal entity for which such Person
acts as an executive officer, director, trustee, or general partner; (iv) any Person 10% or more of
whose outstanding voting securities are directly or indirectly owned, controlled, or held, with
power to vote, by such other Person; and (v) any executive officer, director, trustee, or general
partner of such other Person.

     “Agreement” has the meaning set forth in the recitals.

     “Business Day” means any day other a Saturday, a Sunday or a day on which banks are
required or permitted to close in New York, New York.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, or any
successor statute thereto. Reference to any provision of the Code shall mean such provision as in
effect from time to time, as the same may be amended, and any successor provision thereto, as
interpreted by any applicable regulations as in effect from time to time.

     “Company” has the meaning set forth in the recitals.

 

 

     “Distribution Shortfall” means, with respect to any calendar quarter during the Term,
the amount by which Quarterly Distributions exceed AFFO for such quarter or, in the event AFFO is
negative, the amount of the Quarterly Distributions for such quarter.

     “Invested Capital” means the amount calculated by multiplying the total number of
Shares purchased by Stockholders by the Issue Price, reduced by (i) any amounts paid by the Company
to repurchase Shares pursuant to the Company’s plan for redemption of Shares and (ii) the aggregate
amount of net sale proceeds distributed to Stockholders as a result of the sale of one or more of
the Company’s investments.

     “Issue Date” has the meaning set forth in Section 3(b) hereof.

     “Issue Price” means the gross price per Share the original purchasers of Shares paid
to the Company for the Shares (as adjusted for any stock dividends, combinations, splits,
recapitalizations and the like with respect to the Shares).

     “NRFC” has the meaning set forth in the recitals.

     “NS Advisor” means NS Real Estate Income Trust Advisor, LLC.

     “Offering” has the meaning set forth in the recitals.

     “Purchase Price” means, as of any given date, the per share price payable in the
Offering, net of the per share selling commissions and dealer manager fees specified in the
Prospectus.

     “Periodic Report” means the Company’s quarterly report on Form 10-Q or annual report
on Form 10-K, as applicable.

     “Person” means an individual, corporation, partnership, estate, trust (including a
trust qualified under Section 401(a) or 501(c) (17) of the Internal Revenue Code), a portion of a
trust permanently set aside for or to be used exclusively for the purposes described in Section
642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the
Code, joint stock company or other entity, or any government or any agency or political subdivision
thereof, and also includes a group as that term is used for purposes of Section 13(d)(3) of the
Securities Exchange Act of 1934, as amended.

     “Prospectus” means the prospectus for the Offering, as amended or supplemented, filed
with the SEC at or after the effective date of the Company’s registration statement on Form S-11
(including financial statements, exhibits and all other documents related thereto filed as a part
thereof or incorporated therein), pursuant to the Securities Act of 1933, as amended, and the
applicable rules and regulations of the SEC promulgated thereunder.

     “Quarterly Distributions” means the aggregate amount of cash distributions paid to
Stockholders during a calendar quarter.

     “SEC” means the United States Securities and Exchange Commission.

     “Shares” has the meaning set forth in the recitals.

     “Stockholders” has the meaning set forth in the recitals.

 

 

     “Stockholders’ 8% Return” means, as of any date, an aggregate amount equal to an 8%
cumulative, non-compounded, annual return on Invested Capital (calculated like simple interest on a
daily basis based on a 365 day year). For purposes of calculating the Stockholders’ 8% Return,
Invested Capital shall be determined for each day during the period for which the Stockholders’ 8%
Return is being calculated.

     “Threshold Amount” means an amount equal to the Stockholders’ 8% Return, prorated for
such quarter.

     “Term” has the meaning set forth in Section 4 hereof.

     2. Share Purchase Commitment. In the event of a Distribution Shortfall for any
calendar quarter during the Term, NRFC shall purchase Shares from the Company in an amount equal to
the Distribution Shortfall; provided, however, that NRFC shall not be obligated to purchase Shares
for any quarter in which AFFO for such quarter exceeds the Threshold Amount and further provided,
that NRFC’s obligation to purchase Shares pursuant to this Agreement shall be limited to an
aggregate of $10,000,000 in purchase amount. Any Shares purchased by NRFC pursuant to this Section
2 shall be purchased pursuant to the Offering and at the Purchase Price in effect as of the date of
purchase of the Shares.

     3. Procedure for Purchase of Shares.

	 	(a)	 	In the event of a Distribution Shortfall, the Company shall
deliver to NRFC a written notice within ten (10) Business Days following the
Company’s filing with the SEC of its Periodic Report for such calendar quarter
specifying the number of Shares to be purchased by NRFC pursuant to Section 2
above and the Company’s calculation of the Distribution Shortfall.

	 	(b)	 	On the fifth Business Day following the delivery of such notice
(the “Issue Date”), the Company shall issue to NRFC the Shares being
sold against NRFC’s delivery of an executed subscription agreement in the form
attached hereto as Exhibit A and payment of the purchase price for such
Shares by wire transfer of immediately available funds.

     4. Term. This Agreement shall be in effect until the earlier of (a) the second
anniversary of the commencement of the Offering or (b) the date upon which neither NS Advisor nor
another Affiliate of NRFC is serving as the Company’s Advisor (as such term is defined in the
Company’s Articles of Incorporation, as amended from time to time) with responsibility for the
Company’s day-to-day operations (the “Term”).

     5. Notices. All notices shall be in writing and shall be given or made, by delivery
in person or by guaranteed delivery overnight courier to NRFC at the address set forth below:

NorthStar Realty Finance Corp.

399 Park Avenue, 18th Floor

New York, NY 10022

Attention:                     

or to such other address as NRFC may designate to the Company in writing. Notices shall be
effective upon receipt in the case of personal delivery or one Business Day after being sent in the
case of delivery by overnight courier.

 

 

     6. Voting Agreement. NRFC agrees, and shall cause any of its Affiliates to whom it
may transfer Shares to agree on behalf of itself and to require any subsequent transferees that are
Affiliates to agree that, with respect to any Shares purchased pursuant to this Agreement or
otherwise acquired, it will not vote or consent on matters submitted to the Stockholders regarding
any transaction between the Company and any of Affiliate of NRFC, including without limitation, the
removal of NS Advisor or any of its Affiliates as the Company’s Advisor (as such term is defined in
the Company’s Articles of Incorporation, as amended from time to time). This voting restriction
shall survive until such time that NS Advisor or any of its Affiliates is no longer serving as the
Company’s Advisor.

     7. Assignment; Third Party Beneficiaries. This Agreement may not be assigned by
either party; provided, however, that NRFC may assign its obligations under this Agreement to any
one or more of its Affiliates, but no such assignments shall relieve NRFC of its obligations
hereunder. This Agreement shall inure to the benefit of and shall be binding upon the heirs,
executors, administrators, legal representatives, successors and assigns of the parties hereto.

     8. Governing Law. This Agreement shall be governed by and interpreted in accordance
with the laws of the State of New York without reference to conflict of laws provisions.

     9. Amendment. No amendment, modification or waiver of this Agreement will be valid
unless made in writing and duly executed by each party hereto.

     10. Entire Agreement. This agreement constitutes the entire understanding between the
parties with respect to the subject matter hereof. This agreement may be executed in one or more
counterparts.

[The remainder of this page is intentionally left blank. Signature page follows.]

 

 

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

	 	 	 	 	 	 	 
	 	 	NorthStar Real Estate Income Trust, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	NorthStar Realty Finance Corp.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT A

Form of Subscription Agreement

 

 

	 	 	 
	To:

	 	NorthStar Real Estate Income Trust, Inc.
	 

	 	399 Park Avenue, 18th Floor
	 

	 	New York, New York 10022
	 
	 	 
	 

	Re:      Subscription Agreement for the Purchase of Shares of Common Stock

     The undersigned, NorthStar Realty Finance Corp., a Maryland corporation, as of the                     
day of                      20                    , subscribes for and agrees to purchase shares of common stock, $0.01 par
value (such shares to be purchased referred to herein as the “Shares”) of NorthStar Real
Estate Income Trust, Inc. (the “Corporation”), a corporation organized and existing under
the laws of the State of Maryland, pursuant to the terms and conditions of this Subscription
Agreement.

     The undersigned acknowledges that the Corporation will not register the issuance of the Shares
under the Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws
(the “State Acts”) in reliance upon exemptions from registration contained in the 1933 Act
and the State Acts, and that the Corporation relies upon these exemptions, in part, because of the
undersigned’s representations, warranties and agreements contained in this Subscription Agreement.

     The undersigned acknowledges that, prior to executing this Subscription Agreement, it has had
the opportunity to ask questions of and receive answers or obtain additional information from a
representative of the Corporation concerning the financial and other affairs of the Corporation and
the terms and conditions of the offering of the Shares to which this Subscription Agreement
relates, and, to the extent it believes necessary in light of its knowledge of the Corporation’s
affairs, it has asked these questions and received satisfactory answers.

     The undersigned represents, warrants and agrees as follows:

     1. The undersigned hereby subscribes for                                         (  
                  ) Shares
(“Shares”), and hereby delivers in United States dollars the purchase price of $  per
share for an aggregate purchase price of $                     in cash.

     2. The undersigned has carefully read this Subscription Agreement and, to the extent it
believes necessary, has discussed with its counsel the representations, warranties, and agreements
that it makes by signing this Subscription Agreement and the limitations that apply to its resale
of the Shares.

     3. The undersigned is purchasing the Shares for its own account, with the intention of holding
the Shares for investment and with no present intention of dividing or allowing others to
participate in this investment or of reselling or otherwise participating, directly or indirectly,
in a distribution of the Shares; and it will not make any sale, transfer or other disposition of
the Shares without registration under the 1933 Act and the State Acts unless an exemption from
registration is available under the 1933 Act and the State Acts.

     4. The undersigned is familiar with the business in which the Corporation is or will be
engaged, and based upon its knowledge and experience in financial and business matters, it is
familiar with the investments of the type that it is undertaking to purchase in this Subscription
Agreement; it is fully aware of the problems and risks involved in making an investment of this
type; and it is capable of evaluating the merits and risks of this investment.

     5. The investment that the undersigned is undertaking in this Subscription Agreement
corresponds with the nature and size of its present investments and net worth, and the undersigned
can

 

 

financially bear the economic risk of this investment, including the ability to afford holding the
Shares for an indefinite period or to afford a complete loss of this investment.

     6. The undersigned agrees that it will not vote any of the Shares of the Corporation that it
owns regarding (i) the removal of any affiliate of the undersigned or (ii) any transaction between
the undersigned and the Corporation.

     7. The principal office of the undersigned is at the address shown under the signature on the
signature page of this Subscription Agreement.

     8. The undersigned understands as follows:

          8.1 The current facts surrounding this investment do not satisfy conditions under Rule 144
under the 1933 Act (“Rule 144”) that would permit the undersigned to resell the Shares under Rule
144; the nature of the Corporation’s business and the conditions under Rule 144 make it unlikely
that facts will ever exist to satisfy the conditions that would permit the undersigned to resell
the Shares under Rule 144; even if satisfaction of the conditions under Rule 144 should occur, the
undersigned could resell the Shares in reliance upon the provisions of Rule 144 only in limited
amounts and in accordance with the other terms and conditions of Rule 144; and in connection with
any resale of the Shares by the undersigned that Rule 144 does not permit, the undersigned must
comply with some other registration exemption.

          8.2 The Corporation has no obligation to register the Shares or to comply with the conditions
of Rule 144 or to take any other action necessary in order to make available any exemption for the
resale of the Shares without registration.

          8.3 The Corporation will give stop transfer instructions to its transfer agent or the officer
in charge of its stock records who will note on the Corporation’s appropriate records words to the
effect that the Shares may not be transferred out of the undersigned’s name unless the undersigned
first obtains approval from the Corporation.

          8.4 The Corporation will not issue physical certificates for the Shares. Instead, the Shares
will be recorded on the books and records of the Corporation. The form of Notice to Stockholders
of Issuance of Uncertificated Shares of Common Stock, as mandated by Maryland General Corporation
Law, is attached hereto as Exhibit A.

     9. The parties hereto agree as follows:

          9.1 This Subscription Agreement shall be governed by and construed in accordance with the laws
of the State of Maryland without giving effect to the conflict of laws provisions therein.

          9.2 This Subscription Agreement contains the entire agreement between the parties with respect
to the subject matter thereof. The provisions of this Subscription Agreement may not be modified
or waived except in writing.

          9.3 The headings of this Subscription Agreement are for convenience of reference only, and
they shall not limit or otherwise effect the interpretation of any term or provision hereof.

          9.4 This Subscription Agreement and the rights, powers and duties set forth herein shall,
except as set forth herein, bind and inure to the benefit of the heirs, executors, administrators,
legal representatives, successors and assigns of the parties hereto. The parties hereto may not
assign any of

 

 

their respective rights or interests in and under this Subscription Agreement without the
prior written consent of the other party, and any attempted assignment without such consent shall
be void and without effect.

          9.5 If any part of this Subscription Agreement is held by a court of competent jurisdiction to
be unenforceable, illegal or invalid, the balance of this Subscription Agreement shall remain in
effect and unaffected by such unenforceability, illegality or invalidity.

[Remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement as of the day and
year first above written.

	 	 	 	 	 	 	 
	 	 	NORTHSTAR REALTY FINANCE CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 
	 

	 	399 Park Avenue, 18th Floor
 

Principal Office: Number and Street
	 	 
	 
	 	 	 	 
	 

	 	New York           New York            10022	 	 
	 

	 	 

City                     State                     Zip Code
	 	 
	 
	 	 	 	 
	 

	 	 

Employer Identification Number
	 	 

ACCEPTED, as of the ___day of                     , 2009, on behalf of NorthStar Real Estate Income Trust, Inc.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	David T. Hamamoto 	 
	 	 	President 	 
	 

 

 

EXHIBIT A

Notice to Stockholders of Issuance of Uncertificated Shares of Common Stock

(See Attached)

 

 

NorthStar Real Estate Income Trust, Inc.

a Maryland corporation

NOTICE TO STOCKHOLDER OF ISSUANCE

OF UNCERTIFICATED SHARES OF COMMON STOCK

	 	 	 
	To:

	 	Stockholder
	From:

	 	Mr. David T. Hamamoto, President and Chief Executive Officer

Shares of common stock, $0.01 par value per share

     NorthStar Real Estate Income Trust, Inc., a Maryland corporation (the “Corporation”), is issuing to
you, subject to acceptance by the Corporation, the number of shares of its common stock (the
“Shares”) set forth in your subscription agreement with the Corporation. The Shares do not have
physical certificates. Instead, the Shares are recorded on the books and records of the
Corporation, and this notice is given to you of certain information relating to the Shares. All
capitalized terms not defined herein have the meanings defined in the Corporation’s charter, as the
same may be amended from time to time (the “Charter”), a copy of which, including the restrictions
on transfer and ownership, will be furnished to each holder of shares of stock of the Corporation
on request and without charge. Requests for such a copy may be directed to the Secretary of the
Corporation at its principal office.

     The Corporation has the authority to issue shares of stock of more than one class. Upon the
request of any stockholder, and without charge, the Corporation will furnish a full statement of
the information required by Section 2-211 of the Maryland General Corporation Law with respect to
certain restrictions on ownership and transferability, the designations and any preferences,
conversion and other rights, voting powers, restrictions, limitations as to dividends and other
distributions, qualifications, and terms and conditions of redemption of the shares of each class
of stock which the Corporation has authority to issue, the differences in the relative rights and
preferences between the shares of each series to the extent set, and the authority of the Board of
Directors to set such rights and preferences of subsequent series. Such requests must be made to
the Secretary of the Corporation at its principal office.

- 3 -

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