Document:

Form of Stock Option Award Agreement

 Exhibit 10.7 
 COLONY FINANCIAL, INC. 
 2009 EQUITY INCENTIVE PLAN 
 NON-QUALIFIED OPTION AGREEMENT 
 Colony Financial,
Inc., a Maryland corporation (the “Company”), hereby grants an option to purchase shares of its common stock, par value $0.01 (the “Option”), to the optionee named below, subject to the vesting and other conditions set forth
below. Additional terms and conditions of the grant are set forth in this cover sheet and in the attachment (collectively, the “Agreement”), and in the Company’s 2009 Equity Incentive Plan (as amended from time to time, the
“Plan”). 
 Grant Date:             , 200    

 Name of Optionee:
                             
 Optionee’s Social Security Number:         -        -        

 Number of Shares Covered by Option:      
 Option Price per Share: $        .     (At least 100% of Fair Market Value) 
 Vesting Schedule [                            ] 
 By your signature below, you agree to all of the terms and conditions described herein, in the attached Agreement and in the Plan, a copy of which
is also attached. You acknowledge that you have carefully reviewed the Plan, and agree that the Plan will control in the event any provision of this cover sheet or Agreement should appear to be inconsistent. 
  

							
	Optionee:	  	  
	    	Date:	  	  

		  	(Signature)	    		  	
				
	Company:	  	  
	    	Date:	  	  

		  	(Signature)	    		  	
	Title:	  	                                       
 	    		  	

 Attachment 
 This is not a stock certificate or a negotiable instrument. 

 COLONY FINANCIAL, INC. 
 2009 EQUITY INCENTIVE PLAN 
 NON-QUALIFIED OPTION AGREEMENT 
  

			
	Non-qualified Option	  	This Agreement evidences an award of an Option exercisable for that number of shares of Stock set forth on the cover sheet and subject to the vesting and other conditions set forth herein, in
the Plan and on the cover sheet. This option is not intended to be an incentive option under Section 422 of the Internal Revenue Code and will be interpreted accordingly.
		
	Transfer of Option	  	 During your lifetime, only you (or, in the event of your legal incapacity or incompetency, your guardian or legal representative) may exercise the
Option. The Option may not be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered, whether by operation of law or otherwise, nor may the Option be made subject to execution, attachment or similar process.
  
 If you attempt to do any of these things, this Option will immediately become forfeited.

 
 Notwithstanding these restrictions on transfer, the Plan administrator may authorize, in its sole
discretion, the transfer of a vested Option (in whole or in part) to a member of your immediate family or a trust for the benefit of your immediate family.

		
	Vesting	  	Your Option shall vest in accordance with the vesting schedule shown on the cover sheet so long as you continue in Service on the vesting dates set forth on the cover sheet and is exercisable
only as to its vested portion.
		
		  	No additional shares of Stock will vest after your Service has terminated for any reason.
		
	Change in Control	  	Notwithstanding the vesting schedule set forth above, upon the consummation of a Change in Control, this option will become 100% vested (i) if it is not assumed, or equivalent options are not
substituted for the options, by the Company or its successor, or (ii) if assumed or substituted for, upon your Involuntary Termination within the 12-month period following the consummation of the Change in Control. Notwithstanding any other
provision in this Agreement, if assumed or substituted for, the option will expire one year after the date of your termination of Service, for any reason, within such 12-month period.

  

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		  	“Involuntary Termination” means termination of your Service by reason of (i) your involuntary dismissal by the Company or its successor for reasons other than Cause; or (ii)
your voluntary resignation for Good Reason as defined in any applicable employment or severance agreement, plan, or arrangement between you and the Company, or if none, then as set forth in the Plan following (x) a substantial adverse alteration in
your title or responsibilities from those in effect immediately prior to the Change in Control; (y) a reduction in your annual base salary as of immediately prior to the Change in Control (or as the same may be increased from time to time) or a
material reduction in your annual target bonus opportunity as of immediately prior to the Change in Control; or (z) the relocation of your principal place of employment to a location more than 35 miles from your principal place of employment as of
the Change in Control or the Company’s requiring you to be based anywhere other than such principal place of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent substantially
consistent with your business travel obligations as of immediately prior to the Change in Control. To qualify as an “Involuntary Termination” you must provide notice to the Company of any of the foregoing occurrences within 90 days of the
initial occurrence and the Company shall have 30 days to remedy such occurrence.
		
	Forfeiture of Unvested Options / Term	  	 Unless the termination of your Service triggers accelerated vesting or other treatment of your Option pursuant to the terms of this Agreement, the
Plan, or any other written agreement between an Applicable Entity and you, you will automatically forfeit to the Company those portions of the Option that have not yet vested in the event your Service terminates for any reason.
  
 Your option will expire in any event at the close of business at Company headquarters on the day
before the 10th anniversary of the Grant Date, as shown on the cover sheet. Your option will expire earlier if your Service terminates, as described below.

		
	Expiration of Vested Options After Service Terminates	  	 If your Service terminates for any reason, other than death, Disability or Cause, then the vested portion of your Option will expire at the close
of business at Company headquarters on the 90th day after your termination date.
  
 If
your Service terminates because of your death or Disability, or if you die during the 90-day period after your termination for any reason (other than Cause), then the vested portion of your Option will expire at the close of business at Company
headquarters on the date twelve (12) months after the date of your death or termination for Disability. During that twelve (12) month period, your estate or heirs may exercise the vested portion of your Option.

  

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		  	If your Service is terminated for Cause, then you shall immediately forfeit all rights to your entire Option and the Option shall immediately expire.
		
	Forfeiture of Rights	  	 If you should take actions in violation or breach of or in conflict with any non-competition agreement, any agreement prohibiting solicitation of
employees or clients of the Company or any Affiliate or any confidentiality obligation with respect to the Company or any Affiliate or otherwise in competition with the Company or any Affiliate, the Company has the right to cause an immediate
forfeiture of your rights to this Option and the Option shall immediately expire.
  
 In
addition, if you have exercised any options during the two year period prior to your actions, you will owe the Company a cash payment (or forfeiture of shares of Stock) in an amount determined as follows: (1) for any shares of Stock that you have
sold prior to receiving notice from the Company, the amount will be the proceeds received from the sale(s), less the option exercise price, and (2) for any shares of Stock that you still own, the amount will be the number of shares of Stock owned
times the Fair Market Value of the shares of Stock on the date you receive notice from the Company, less the option exercise price (provided, that the Company may require you to satisfy your payment obligations hereunder either by forfeiting and
returning to the Company the shares or any other shares of Stock or making a cash payment or a combination of these methods as determined by the Company in its sole discretion).

		
	Leaves of Absence	  	 For purposes of this Agreement, your Service does not terminate when you go on a bona fide leave of absence that was approved by your
employer in writing if the terms of the leave provide for continued Service crediting, or when continued Service crediting is required by applicable law. Your Service terminates in any event when the approved leave ends unless you immediately return
to active employee work.
  
 Your employer may determine, in its discretion, which leaves
count for this purpose, and when your Service terminates for all purposes under the Plan in accordance with the provisions of the Plan. Notwithstanding the foregoing, the Company may determine, in its discretion, that a leave counts for this purpose
even if your employer does not agree.

		
	Notice of Exercise	  	The Option may be exercised, in whole or in part, to purchase a whole number of vested shares of Stock of not less than 100 shares, unless the number of vested shares purchased is the total
number available for purchase under the option, by following the procedures set forth in the Plan and in this Agreement.

  

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		  	 When you wish to exercise this Option, you must exercise in a manner required or permitted by the Company.
  
 If someone else wants to exercise this Option after your death, that person must prove to the
Company’s satisfaction that he or she is entitled to do so.
  
 Notwithstanding any
other provision in this Agreement, if you are an employee of the Manager or an Affiliate of the Manager on the Grant Date you must exercise your Option, if you elect to exercise it at all, on the earliest to occur of (1) [DATE]
(or a later date within the same calendar year), (2) your termination from Service for any reason with the Manager or Affiliate (or a later date within the same calendar year), or (3) the latest date you would otherwise be eligible to exercise your
Option.

		
	Form of Payment	  	 When you exercise your Option, you must include payment of the option price indicated on the cover sheet for the shares you are purchasing.
Payment may be made in one (or a combination) of the following forms:
  
 •        Cash, your personal check, a cashier’s check, a money order or another cash equivalent acceptable to the Company.
  
 •        Shares
of Stock which are owned by you and which are surrendered to the Company. The Fair Market Value of the shares as of the effective date of the option exercise will be applied to the option price.
  
 •        By
delivery (on a form prescribed by the Company) of an irrevocable direction to a licensed securities broker acceptable to the Company to sell Stock and to deliver all or part of the sale proceeds to the Company in payment of the aggregate option
price and any withholding taxes (if approved in advance by the Committee of the Board if you are either an executive officer or a director of the Company).

		
	Evidence of Issuance	  	The issuance of the shares upon exercise of this Option shall be evidenced in such a manner as the Company, in its discretion, will deem appropriate, including, without limitation,
book-entry, registration or issuance of one or more share certificates.
		
	Withholding Taxes	  	You agree as a condition of this grant that you will make acceptable arrangements to pay any withholding or other taxes that may be due as a result of the Option exercise or sale of Stock
acquired under this

  

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		  	Option. In the event that any Applicable Entity determines that any federal, state, local or foreign tax or withholding payment is required relating to the exercise of this Option or sale of
Stock arising from this Option, the Applicable Entity shall have the right to require such payments from you, or withhold such amounts from other payments due to you from the Applicable Entity (including withholding the delivery of vested shares of
Stock otherwise deliverable under this Agreement).
		
	Retention Rights	  	This Agreement and this Option do not give you the right to be retained by the any Applicable Entity in any capacity. Unless otherwise specified in an employment or other written agreement
between the Applicable Entity and you, the Applicable Entity reserves the right to terminate your Service at any time and for any reason.
		
	Stockholder Rights	  	 You, or your estate or heirs, have no rights as a shareholder of the Company until the Stock has been issued upon exercise of your Option and
either a certificate evidencing your Stock has been issued or an appropriate entry has been made on the Company’s books. No adjustments are made for dividends, distributions or other rights if the applicable record date occurs before your
certificate is issued (or an appropriate book entry is made), except as described in the Plan.
  
 Your Option shall be subject to the terms of any applicable agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.

		
	Clawback	  	 This Award is subject to mandatory repayment by you to the Company to the extent you are or in the future become subject to any Company
“clawback” or recoupment policy that requires the repayment by you to the Company of compensation paid by the Company to you in the event that you fail to comply with, or violate, the terms or requirements of such policy.
  
 If the Company is required to prepare an accounting restatement due to the material noncompliance of
the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, and you are subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 and you knowingly engaged in the misconduct,
were grossly negligent in engaging in the misconduct, knowingly failed to prevent the misconduct or were grossly negligent in failing to prevent the misconduct, you shall reimburse the Company the amount of any payment in settlement of this Award
earned or accrued during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurred) of the financial document that contained such material noncompliance.

  

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		  	[Notwithstanding any other provision of the Plan or any provision of this Agreement, if the Company is required to prepare an accounting restatement, then you shall forfeit any cash or
Stock received in connection with this Award (or an amount equal to the fair market value of such Stock on the date of delivery if you no longer hold the shares of Stock) if pursuant to the terms of this Agreement, the amount of the Award earned or
the vesting in the Award was explicitly based on the achievement of pre-established performance goals set forth in this Agreement (including earnings, gains, or other criteria) that are later determined, as a result of the accounting restatement,
not to have been achieved.] [Include if any performance goals are included in award]
		
	Applicable Law	  	This Agreement will be interpreted and enforced under the laws of the State of Maryland, other than any conflicts or choice of law rule or principle that might otherwise refer construction or
interpretation of this Agreement to the substantive law of another jurisdiction.
		
	The Plan	  	 The text of the Plan is incorporated in this Agreement by reference.
  
 Certain capitalized terms used in this Agreement are defined in the Plan, and have the meaning
set forth in the Plan.
  
 This Agreement and the Plan constitute the entire
understanding between you and the Company regarding this Option. Any prior agreements, commitments or negotiations concerning this grant are superseded; except that any written employment, consulting, confidentiality, non-competition,
non-solicitation and/or severance agreement between you and any Applicable Entity shall supersede this Agreement with respect to its subject matter.

		
	Data Privacy	  	 In order to administer the Plan, the Company may process personal data about you. Such data includes, but is not limited to, information provided
in this Agreement and any changes thereto, other appropriate personal and financial data about you such as your contact information, payroll information and any other information that might be deemed appropriate by the Company to facilitate the
administration of the Plan.
  
 By accepting this grant, you give explicit consent to the
Company to process any such personal data.

		
	Code Section 409A	  	It is intended that this Award comply with Section 409A of the Code (“Section 409A”) or an exemption to Section 409A. To the extent that the Company determines that you would be
subject to the additional 20% tax imposed on certain non-qualified deferred

  

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		 	compensation plans pursuant to Section 409A as a result of any provision of this Agreement, such provision shall be deemed amended to the minimum extent necessary to avoid application of such
additional tax. The nature of any such amendment shall be determined by the Company. For purposes of this Award, a termination of Service only occurs upon an event that would be a Separation from Service within the meaning of Section
409A.

 By signing this Agreement, you agree to all of the terms and conditions described above and
in the Plan. 
  

 8Form of License Agreement

 Exhibit 10.8 
 LICENSE AGREEMENT 
 This LICENSE AGREEMENT is made and entered into as of September
    , 2009 by and between NEW COLONY INVESTORS, LLC, a Delaware limited liability company (“Licensor”) and COLONY FINANCIAL, INC., a Maryland corporation (“Licensee”). Capitalized terms used but
not defined herein have the meanings ascribed to such term in the Restructuring Agreement (as defined below). 
 W I T
N E S S E T H : 
 WHEREAS, Licensor, which is an affiliate of the manager of Licensee,
desires to grant to Licensee a license to use the Colony Intellectual Property (as hereinafter defined). 
 NOW, THEREFORE, in consideration
of the foregoing and of the covenants and agreements herein provided, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Licensor and Licensee hereby agree as follows: 
 Section 1. Grant and Scope of License 
 1.1 Licensor
hereby grants to Licensee, for the term set forth in Section 1.2 below, a non-exclusive, non-transferable, royalty-free license to use, and to sublicense or permit Licensee’s affiliates to use (provided each such affiliate complies with
all of the terms and conditions of this Agreement), the Colony Intellectual Property, in connection with the business of Licensee and its affiliates and subject to and in accordance with the terms and conditions of this Agreement (the
“License”). Licensee shall cause each of its affiliates to fully comply with all of the terms and conditions of this Agreement. In the event an affiliate of Licensee fails to comply with any of the terms or conditions of this
Agreement, Licensee shall be responsible for any such failure. Notwithstanding anything to the contrary contained herein, Licensor reserves the right to further license the Colony Intellectual Property at its sole discretion. For purposes of this
License, “Colony Intellectual Property” means all right, title and interest in all present and future trade names, trademarks, logos, Internet domain names and other intellectual property relating to the Colony franchise held by
Licensor from time to time. 
 1.2 The License shall be perpetual unless otherwise terminated pursuant to Section 4. 
 Section 2. Quality Control 
 2.1 Licensee shall use
the Colony Intellectual Property only in connection with specified business activities of a high standard of quality, so as to preserve the goodwill associated with such property. Upon reasonable prior notice, Licensee shall cooperate with Licensor
in respect of any and all reasonable procedures and requirements established by Licensor which are designed to preserve the goodwill associated with the Colony Intellectual Property and are notified to Licensee . In order to ensure Licensor’s
control over the quality of the activities performed by Licensee in connection with the use of the Colony Intellectual Property, Licensee shall permit the authorized representatives of Licensor to review and inspect Licensee’s uses of the
Colony Intellectual Property at all reasonable times. 

 2.2 Licensee bears the exclusive responsibility to assure that any activities Licensee undertakes in
connection with the use of the Colony Intellectual Property comply with all applicable statues, laws, ordinances, codes, regulations, rules or requirements of any government, governmental authority, regulatory agency or self-regulatory body wherever
located. 
 Section 3. Ownership and Protection 
 3.1 Licensor represents and warrants that it owns the Colony Intellectual Property and the goodwill associated therewith and has all rights necessary to grant the licenses in the Colony Intellectual Property to Licensee as set forth herein.
Licensee acknowledges such ownership by Licensor, and Licensee shall do nothing inconsistent therewith. Licensee further acknowledges that the Colony Intellectual Property is part of the business of Licensor. Licensee agrees that it shall not,
during the term of this Agreement or at any time thereafter, contest the fact that Licensee’s rights under this Agreement (i) are solely those of a licensed used and (ii) shall cease upon termination of this Agreement, subject to
Section 4.4. During and after the term of this License, Licensee shall not adopt, use or attempt to register any name, brand, logo, mark or other identifier, or perform any act, that Licensee reasonably believes is likely to disparage, dilute
or be confusingly similar to the Colony Intellectual Property. 
 3.2 Licensee shall notify Licensor of any infringement of the Colony
Intellectual Property promptly upon Licensee becoming aware of such infringement. Licensor has and shall retain the sole and exclusive right, in its sole discretion and at its own expense, to bring infringement proceedings involving the Colony
Intellectual Property and to retain all amounts rewarded as relief therein or in settlement thereof. 
 Section 4. Termination 
 4.1 The License and this Agreement (except as set forth in Section 6.7 and 4.4.) will terminate immediately upon the earlier to occur of (i) the
mutual written agreement of the parties hereto, (ii) such time as Colony Financial Manager, LLC, or an affiliate thereof, ceases to be the manager of Licensee and (iii) the dissolution of Licensee. 
 4.2 Licensor shall have the right to terminate the License and this Agreement, upon written notice to Licensee if Licensee materially breaches any of the
provisions of this Agreement and Licensee fails to cure such material breach within thirty (30) days of receiving written notice of such material breach from Licensor. 
 4.3 It is understood and agreed that except for Licensee’s right to use the Colony Intellectual Property as set forth in this Agreement, Licensee
shall have no right, title or interest in or to the Colony Intellectual Property, and that all such rights will immediately terminate and revert to Licensor upon termination of this License. All goodwill associated with Licensee’s use of the
Colony Intellectual Property shall accrue to the benefit of Licensor. Licensee hereby quitclaims to Licensor ownership of all intellectual property rights that may accrue to Licensee relating to the Colony Intellectual Property, and Licensee agrees
at all times during and after this License to execute any document(s) necessary to perfect Licensor’s title to the foregoing. Any such assignment, transfer or conveyance shall be without consideration other than the mutual agreements contained
herein. 
  

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 4.4 Upon termination of the License and after a period of three (3) months to ramp down
Licensee’s use of the Colony Intellectual Property (the “Ramp Down Period”), Licensee shall promptly discontinue all use, and refrain from all future use, of the Colony Intellectual Property, including such use in any format
confusingly similar thereto. During the Ramp Down Period, Licensee shall use the Colony Intellectual Property for transition purposes only until it can discontinue the use of the Colony Intellectual Property, and Licensee shall use its commercially
reasonable efforts to discontinue use of the Colony Intellectual Property as soon as reasonably practicable following termination of the License. 
 Section
5. Injunctive Relief 
 Licensee acknowledges and admits that there would be no adequate remedy at law for its failure to use the
Colony Intellectual Property in accordance with the terms and conditions of this Agreement or for its failure to cease its use of the Colony Intellectual Property at the termination of the License, and Licensee agrees that in the event of any such
failure, Licensor shall be entitled to seek equitable relief by way of a temporary restraining order, preliminary and permanent injunction and such other and further relief as any court with jurisdiction may grant. 
 Section 6. General Provisions 
 6.1 Nothing in this
Agreement shall create any relationship between Licensor and Licensee beyond that of licensor and licensee. 
 6.2 THIS AGREEMENT WILL BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW THEREOF. 
 6.3 The agreements contained in this Agreement are for the sole benefit of the parties hereto and their permitted successors and permitted assigns, and they will not be construed as conferring and are not intended to
confer any rights on any other persons. 
 6.4 Licensor may not assign or delegate its rights and obligations under this Agreement without the
prior written consent of Licensee, which consent may not be unreasonably withheld. Because this Agreement is personal in nature as to Licensee, unless otherwise permitted pursuant to the terms of this Agreement, Licensee may not assign, delegate,
sublicense, or otherwise encumber its rights or obligations under this Agreement in any manner, whether by operation of law or otherwise, absent the prior written consent of Licensor, which consent may be given or withheld in the sole discretion of
Licensor. Any attempted assignment, delegation, sublicense or other encumbrance in violation of this Section 6.4 shall be void. 
 6.5
This Agreement embodies the entire agreement between the parties hereto with respect to the use of the Colony Intellectual Property and, except as provided herein, supersedes any and all prior or contemporaneous oral or written understandings,
negotiations or communications on behalf of such parties with respect to the subject matter hereof. This Agreement may be amended only by an instrument in writing duly executed by each of the parties hereto and any such amendment so duly executed in
writing shall be binding on the parties hereto. 
  

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 6.6 The paragraph and section headings used herein are descriptive only and shall not affect the meaning
or interpretation of this Agreement. 
 6.7 Notwithstanding any termination of this Agreement, the parties’ rights and obligations,
acknowledgements and covenants under Sections 3, 4, 5 and this Section 6 will survive such termination and remain in full force and effect. 
 6.8 If any term or provision of this Agreement is held or deemed to be invalid or unenforceable, in whole or in part, by a court of competent jurisdiction, such provision shall be automatically reformed and construed so as to be valid,
operative and enforceable to the maximum extent permitted by law or equity while more nearly preserving its original intent; such invalidity shall not render invalid or unenforceable the remaining terms and provisions of this Agreement. 

6.9 Each of the parties hereto agrees to execute and deliver all such instruments and do all acts reasonably necessary, desirable or proper as may be
reasonably requested by any other party hereto to carry out the purposes of this Agreement. 
 6.10 Failure on the part of a party in any one
or more instances to enforce any of its rights that arise in connection with this Agreement, or to insist upon the strict performance of any of the terms, conditions or covenants of this Agreement, shall not be construed as a waiver or
relinquishment for the future of any such rights, terms, conditions or covenants. No waiver of any condition of this Agreement shall be valid unless it is in writing. 
 6.11 This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same Agreement. 
 6.12 EXCEPT AS EXPRESSLY SET FORTH HEREIN, LICENSOR MAKES NO REPRESENTATIONS OR WARRANTIES PERTAINING TO THE COLONY INTELLECTUAL PROPERTY. FOR EXAMPLE AND
WITHOUT LIMITATION, LICENSOR EXPRESSLY DISCLAIMS ALL WARRANTIES, IMPLIED OR OTHERWISE, REGARDING NONINFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE. 
  

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 IN WITNESS WHEREOF, the parties to this Agreement have duly executed it as of the date first above
written. 
  

			
	NEW COLONY INVESTORS LLC,
	a Delaware limited liability company
		
	By:	 	NEW COLONY HOLDINGS, LLC,
		 	its Managing Member
		
	By:	 	  

		 	Thomas J. Barrack, Jr.
		 	Managing Member
	
	 COLONY FINANCIAL, INC.,
 a Maryland
corporation

		
	By:	 	  

		 	Mark M. Hedstrom
		 	Vice President

  

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