Document:

Exhibit10.10 - NSAM 8-K Credit Agreement

Exhibit 10.10

	
				
	

Dated as of June 30, 2014

	NORTHSTAR ASSET MANAGEMENT GROUP INC., 
as Borrower

and

NORTHSTAR REALTY FINANCE CORP.
as Lender

	 
	CREDIT AGREEMENT
	 

	
			
	 
	 
	 

	
		
	TABLE OF CONTENTS

	 
	Page

		
	ARTICLE I DEFINED TERMS
	1

		
	Section 1.01
	Definitions.    1

		
	Section 1.02
	Interpretation.    5

		
	ARTICLE II REVOLVING CREDIT FACILITY
	5

		
	Section 2.01
	The Loans.    5

		
	Section 2.02
	Manner of Borrowing.    5

		
	Section 2.03
	Repayment of Principal.    6

		
	Section 2.04
	Payment of Interest.    6

		
	Section 2.05
	Voluntary Prepayment.    6

		
	Section 2.06
	Termination or Reduction of Commitments.    6

		
	Section 2.07
	Notes.    6

		
	ARTICLE III CHANGE IN CIRCUMSTANCES
	6

		
	Section 3.01
	[Reserved].    6

		
	Section 3.02
	Taxes.    7

		
	ARTICLE IV PAYMENTS
	7

		
	Section 4.01
	Manner of Payments.    7

		
	Section 4.02
	Extension of Payments.    8

		
	Section 4.03
	Computation of Interest and Fees.    8

		
	ARTICLE V CONDITIONS PRECEDENT
	8

		
	Section 5.01
	Initial Conditions.    8

		
	Section 5.02
	Continuing Conditions.    8

		
	ARTICLE VI REPRESENTATIONS AND WARRANTIES
	9

		
	Section 6.01
	Existence, Qualification and Power.    9

		
	Section 6.02
	Authorization; No Contravention.    9

		
	Section 6.03
	Governmental Authorization; Other Consents.    9

		
	Section 6.04
	Binding Effect.    10

		
	Section 6.05
	Financial Statements.    10

		
	Section 6.06
	Litigation.    10

		
	Section 6.07
	Insurance.    10

		
	Section 6.08
	Taxes.    10

	
			
	 
	i
	 

		
	Section 6.09
	Margin Regulations; Investment Company Act.    10

		
	Section 6.10
	Compliance with Laws.    11

		
	Section 6.11
	Disclosure.    11

		
	ARTICLE VII AFFIRMATIVE COVENANTS
	11

		
	Section 7.01
	Financial Statements.    11

		
	Section 7.02
	Certificates; Other Information.    12

		
	Section 7.03
	Payment of Obligations.    12

		
	Section 7.04
	Preservation of Existence, Etc..    13

		
	Section 7.05
	Maintenance of Properties.    13

		
	Section 7.06
	Compliance with Laws.    13

		
	Section 7.07
	Keeping of Books and Records; Inspection.    13

		
	Section 7.08
	Inspection Rights.    13

		
	Section 7.09
	Use of Proceeds.    13

		
	Section 7.10
	Further Assurances.    13

		
	ARTICLE VIII NEGATIVE COVENANTS
	14

		
	Section 8.01
	Fundamental Changes.    14

		
	Section 8.02
	Use of Proceeds.    14

		
	ARTICLE IX EVENTS OF DEFAULT
	14

		
	Section 9.01
	Events of Default.    14

		
	Section 9.02
	Default Remedies.    15

		
	Section 9.03
	Default Interest.    16

		
	Section 9.04
	Funding Indemnities.    16

		
	ARTICLE X GENERAL PROVISIONS
	16

		
	Section 10.01
	Assignment.    16

		
	Section 10.02
	Amendments and Waivers.    17

		
	Section 10.03
	Notices.    17

		
	Section 10.04
	Expenses; Indemnification.    18

		
	Section 10.05
	Cumulative Rights; No Waiver.    18

		
	Section 10.06
	Counterparts; Integration; Effectiveness.    18

		
	Section 10.07
	Severability.    19

		
	Section 10.08
	Headings.    19

		
	Section 10.09
	GOVERNING LAW.    19

		
	Section 10.10
	Consent to Jurisdiction.    19

	
			
	 
	ii
	 

		
	Section 10.11
	Waiver of Venue.    19

		
	Section 10.12
	Service of Process.    19

		
	Section 10.13
	Waiver of Jury Trial.    20

EXHIBITS
		
	Exhibit A
	Form of Revolving Credit Promissory Note

		
	Exhibit B
	Form of Notice of Borrowing

	
			
	 
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CREDIT AGREEMENT
CREDIT AGREEMENT dated as of June 30, 2014 between NORTHSTAR ASSET MANAGEMENT GROUP INC., a Delaware corporation (the "Borrower"), and NORTHSTAR REALTY FINANCE CORP. (formerly known as NRFC Sub-REIT Corp.), a Maryland corporation (the "Lender").
W I T N E S S E T H:
WHEREAS, the Borrower has requested the Lender to make revolving credit loans to the Borrower for its general corporate purposes; and
WHEREAS, the Lender is willing to make such revolving credit loans on the terms and subject to the conditions contained herein; 
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the parties hereto hereby agree as follows:
Article I 
 
DEFINED TERMS
Section 1.01    Definitions.  Each term defined in this Section 1.01, when used in this Agreement, has the meaning indicated below:
"Affiliate" shall means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.
"Agreement" shall mean this Credit Agreement.
"Applicable Margin" shall mean 3.50%.
"Asset Management Agreement" shall mean the Asset Management Agreement dated as of June 30, 2014 between NRF and NSAM J-NRF Ltd, a Jersey limited company.
"Availability Period" shall mean the period from and including the Closing Date to the earliest of (i) ten (10) Business Days prior to the Final Maturity Date and (ii) the date of termination of the Commitments pursuant to Section 2.06.
"Available Commitment" shall mean, as of any date, the Maximum Commitment Amount minus the Outstanding Amount.
"Borrowing Date" shall mean any Business Day specified by the Borrower as a date on which the Borrower requests that the Lender make a Loan hereunder.

	
			
	 
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"Business Day" shall mean a day on which banks are not required or authorized by law or executive order to close in New York City.
"Closing Date" shall mean June 30, 2014.
"Code" shall mean the United States Internal Revenue Code of 1986 (or any successor legislation thereto).
"Commitment" shall mean the obligation of the Lender to make Loans pursuant to Section 2.01 hereof, in an aggregate principal amount at any one time outstanding up to the Maximum Commitment Amount.  The Commitment is subject to reduction pursuant to Sections 2.06 and 9.02 hereof.
"Contractual Obligation" shall mean, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.
"Control" shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "Controlling" and "Controlled" have meanings correlative thereto.
"Debtor Relief Laws" shall mean the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.
"Default" shall mean any Event of Default or any event which, with the giving of notice or lapse of time, or both, would become an Event of Default.
"Default Rate" shall mean an interest rate equal to the interest rate otherwise applicable to the Loans plus 3.0%.
"Dollars" or "$" shall mean the lawful currency of the United States of America and, in relation to any amount to be advanced or paid hereunder, funds having same day or immediate value.
"Event of Default" shall mean each of the events set forth in Section 9.01 hereof.
"Final Maturity Date" shall mean the earlier of (i) June 30, 2019 or (ii) the date on which the Asset Management Agreement is terminated or otherwise is no longer in full force and effect.
"Governmental Authority" shall mean any national, federal, state or local government (whether foreign or domestic), any political subdivision thereof or any governmental, quasi-governmental, judicial, public or statutory instrumentality, authority, body or entity, or any other regulatory bureau, authority, body or entity, including the Federal Deposit Insurance Corporation, 

	
			
	 
	2
	 

the Comptroller of the Currency or the Board of Governors of the Federal Reserve System, any central bank or any comparable authority or entity.
"Indebtedness" shall mean for any Person, without duplication, (i) all indebtedness or other obligations of such Person for borrowed money and all obligations of such Person under leases which would, in accordance with United States generally accepted accounting principles, be capitalized on the balance sheet of such Person, (ii) all obligations of such Person to pay the deferred purchase price of property or services (including indebtedness created under or arising out of any conditional sale or other title retention agreement), (iii) all obligations of such Person (contingent or otherwise) under reimbursement or similar agreements with respect to the issuance of letters of credit, (iv) all indebtedness or other obligations of such Person under or with respect to any swap, cap, collar or other financial or commodity hedging arrangement, (v) all indebtedness or other obligations of any other Person of the type specified in clause (i), (ii), (iii) or (iv) above, the payment or collection of which such Person has guaranteed (except by reason of endorsement for collection in the ordinary course of business) or in respect of which such Person is liable, contingently or otherwise, including, without limitation, liable by way of agreement to purchase products or securities, to provide funds for payment, and (vi) all indebtedness or other obligations of any other Person of the type specified in clause (i), (ii), (iii), (iv) or (v) above secured by (or for which the holder of such indebtedness has an existing right contingent or otherwise, to be secured by) any Lien, upon or in property (including, without limitation, accounts and contract rights) owned by such Person, whether or not such Person has assumed or becomes liable for the payment of such indebtedness or obligations.
"Interest Payment Date" shall mean (i) the first day of each month, or the following Business Day if such day is not a Business Day, and (ii) the Final Maturity Date.
"Interest Period" shall mean with respect to any Loan, initially, the period commencing on the date such Loan is disbursed and ending on the following Interest Payment Date, and thereafter, each successive period commencing on such Interest Payment Date and ending on the next following Interest Payment Date. No Interest Period shall extend beyond the Final Maturity Date.
"Internal Revenue Code" shall mean the Internal Revenue Code of 1986, as amended, or any successor statute.
"IRS" shall mean the United States Internal Revenue Service or any successor thereto.  
"Laws" means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.
"LIBOR" means, for any Interest Period, the rate per annum equal to the determined on a the basis of the rate for deposits in Dollars for a period equal to such Interest Period commencing on the first day of such Interest Period appearing on the Bloomberg screen BBAM as of 

	
			
	 
	3
	 

approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period.  If such rate is not available at such time for any reason, then "LIBOR" for such Interest Period shall be the rate per annum determined by reference to such other comparable publically available service for displaying eurodollar rates as may be selected by the Lender.
"Lien" shall mean any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), or preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing of any financing statement under the Uniform Commercial Code or comparable law of any jurisdiction).
"Loan" shall mean each loan made by the Lender to the Borrower pursuant to Article II hereof.
"Material Adverse Effect" shall mean any effect which would be material and adverse to the financial condition, assets, business or operations of the Borrower and its Subsidiaries, considered as a whole, or which would materially and adversely impair the ability of the Borrower to perform its obligations under this Agreement or the Related Documents to which it is a party.
"Maximum Commitment Amount" shall mean $250,000,000.
"Notice of Borrowing" shall mean an irrevocable notice, substantially in the form of Exhibit B annexed hereto, given to the Lender by the Borrower pursuant to Section 2.02 hereof.
"NRF" shall mean NorthStar Realty Finance Corp., a Maryland corporation.
"Obligations" shall mean all advances to, and debts, liabilities, obligations, covenants and duties of, the Borrower arising under this Agreement or any Related Document or otherwise with respect to any Loan, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against the Borrower or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming the Borrower as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.
"Outstanding Amount" shall mean, as of any date, the aggregate principal amount of Loans outstanding after giving effect to any borrowings, repayments and prepayments on such date.
"Person" shall mean any corporation, limited liability company, natural person, joint venture, partnership, trust, unincorporated organization, government or any department or agency of any government.
"Related Documents" shall mean the Revolving Credit Note.
"Responsible Officer" shall mean the chief executive officer, president, chief investment and operating officer, chief financial officer, treasurer, chief accounting officer, controller, general counsel and any other officer of the Borrower with responsibility for the administration of the 

	
			
	 
	4
	 

relevant portion of this Agreement or any Related Document.  Any document delivered hereunder that is signed by a Responsible Officer shall be conclusively presumed to have been authorized by all necessary corporate and/or other action on the part of the Borrower and such Responsible Officer shall be conclusively presumed to have acted on behalf of the Borrower.
"Revolving Credit Note" shall mean the promissory note of the Borrower payable to the order of the Lender evidencing the Loans made by the Lender as provided for herein, substantially in the form of Exhibit A hereto, and any promissory note or notes of the Borrower issued in substitution thereof.
"Subsidiary" shall mean, as to any Person, a corporation, partnership, joint venture, limited liability company, or other business entity (except for Persons which would not be considered a Subsidiary of such Person but for the application of Financial Accounting Standards Board ("FASB") Accounting Standards Codification,  810-10 (formerly FASB Interpretation No. 46R or EITF 04-5 issued by the FASB and the Emerging Issues Task Force, respectively)) of which a majority of the shares of securities or other interest having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only be reason of the happening of a contingency) are at the time beneficially owned by such Person.
"Taxes" shall mean any and all taxes, levies, imposts, duties or other charges of a similar nature.
"Threshold Amount" means $50,000,000.
Section 1.02    Interpretation.  All references in this Agreement to any other agreement or instrument shall include such other agreement or instrument as the same may be amended, modified or supplemented from time to time.  In the computation of interest and fees payable from a specified date to a later specified date, unless otherwise indicated the word "from" means "from and including" and the words "to" and "until" both mean "to but not including".
ARTICLE II 
 
REVOLVING CREDIT FACILITY
Section 2.01    The Loans.  On the terms and subject to the conditions of this Agreement, the Lender shall make Loans to the Borrower, from time to time during the Availability Period, in an aggregate principal amount at any one time outstanding up to but not exceeding the Maximum Commitment Amount, provided that the aggregate principal amount of all outstanding Loans immediately after the making of each Loan and giving effect to the application of the proceeds thereof will not exceed the Maximum Commitment Amount.  Within such limit, the Borrower may borrow, prepay, repay and reborrow pursuant to this Article II.
Section 2.02    Manner of Borrowing.  The Borrower shall give the Lender a duly completed Notice of Borrowing, appropriately completed and signed by a Responsible Officer of the Borrower, not less than three (3) Business Days prior to the Borrowing Date or such shorter period as Lender may agree upon.  Each such Notice of Borrowing shall specify: (i) the amount of 

	
			
	 
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such Loan, which shall be an amount of $1,000,000 or more (or less if the then Available Commitment is less than $1,000,000); and (ii) the requested Borrowing Date. Subject to the conditions of this Agreement, the Lender shall make such Loan by transferring the proceeds thereof in Dollars to the account designated by the Borrower for such purpose not later than 4:30 p.m. (New York time) on the relevant Borrowing Date.
Section 2.03    Repayment of Principal.  The Borrower shall repay the outstanding principal amount of each Loan on Final Maturity Date.
Section 2.04    Payment of Interest.  The Borrower shall pay interest on the unpaid principal amount of each Loan from the date of such Loan to the date on which such Loan is paid in full at a rate per annum equal to the LIBOR Rate determined for the such Interest Period plus the Applicable Margin. Accrued interest on each Loan shall be payable on each Interest Payment Date and at such other times as may be specified herein.
Section 2.05    Voluntary Prepayment.  The Borrower may prepay any Loan in whole or in part at any time upon not less than one (1) Business Day prior notice, or such shorter period as Lender may agree upon, without premium or penalty.
Section 2.06    Termination or Reduction of Commitments.  The Borrower shall have the right, upon not less than one (1) Business Day notice to the Lender, to permanently reduce the Maximum Commitment Amount; provided that no such termination or reduction of the Maximum Commitment Amount shall be permitted if, after giving effect thereto and to any prepayments of the Loans made on the effective date thereof, the Outstanding Amount would exceed the Maximum Commitment Amount. Any such termination or reduction shall be in an amount equal to $1,000,000, or a whole multiple thereof, and shall reduce permanently the Maximum Commitment Amount then in effect.
Section 2.07    Notes.  The Loans made by the Lender shall be evidenced by one or more accounts or records maintained by the Lender in the ordinary course of business. The accounts or records maintained by the Lender shall be conclusive absent manifest error of the amount of the Loans made by the Lender to the Borrower and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations.  Upon the request of the Lender, the Borrower shall execute and deliver to the Lender the Revolving Credit Note, which shall evidence such Lender's Loans in addition to such accounts or records. The Lender may attach schedules to the Revolving Credit Note and endorse thereon the date, amount and maturity of its Loans and payments with respect thereto. 
ARTICLE IIICHANGE IN CIRCUMSTANCES
Section 3.01    [Reserved.].    

	
			
	 
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Section 3.02    Taxes.
(a)    Each payment by the Borrower to the Lender under this Agreement or any of the Related Documents shall be made free and clear of and without deduction for any Taxes, other than any Taxes imposed on the overall net income of the Lender by the jurisdiction of its incorporation (all such non‐excluded Taxes being hereinafter referred to as "Covered Taxes").  If the Borrower shall be required by law to deduct any Covered Taxes from or in respect of any such payment, then (i) the sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums payable under this Section) the Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay on a timely basis the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law.
(b)    The Borrower will indemnify the Lender for the full amount of Covered Taxes required to be paid by, or imposed, levied or assessed against the Lender.  In addition, the Borrower shall pay to the Lender such amounts as may be necessary to hold the Lender harmless on an after-tax basis from any Taxes (including without limitation, income or franchise taxes) imposed by any jurisdiction as a result of the receipt or accrual by the Lender of any payment under this Section 3.02 (including any payment under this sentence).  Any indemnification pursuant to this Section 3.02(b) shall be made within 30 days from the date the Lender makes written demand therefor.  A certificate setting forth any amount payable to the Lender under this Section 3.02 and the basis therefor submitted by the Lender to the Borrower shall, absent a good faith dispute by the Borrower, be conclusive and binding.
(c)    Within 60 days after the date of any payment of Covered Taxes made under this Section 3.02 or the withholding of any Taxes excluded from indemnification under subsection (a) the Borrower will furnish to the Lender the original or a certified copy of a receipt, accompanied by a certified English translation if the receipt is not in English, evidencing payment thereof, a statement signed by an officer responsible for the Borrower's financial or accounting records setting forth the amount and identity of such Taxes (specifying the particular provisions of law requiring such withholding), and all additional information and documents that the Lender shall reasonably and in writing request to establish that full and timely payment of such Covered Taxes or other Taxes has been made.  The Borrower will promptly notify the Lender of any reports or returns that the Lender is required to file with respect to Covered Taxes.
(d)    Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in this Section 3.02 shall survive the prepayment or payment in full or in part of the Loans and the interest thereon and the termination of this Agreement or any Related Document.
ARTICLE IVPAYMENTS
Section 4.01    Manner of Payments.  Each payment required to be made by the Borrower under this Agreement or the Related Documents shall be made by transferring the amount thereof in Dollars to the Lender on the date on which such payment shall become due.  No payment by the 

	
			
	 
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Borrower to the Lender pursuant to this Section 4.01 shall be deemed a waiver of any rights the Borrower may have against the Lender.  
Section 4.02    Extension of Payments.  If any payment under this Agreement or the Related Documents shall become due on a day which is not a Business Day, then the due date thereof shall be extended to the next following day which is a Business Day, and such extension shall be taken into account in computing the amount of any interest or fees then due and payable hereunder.
Section 4.03    Computation of Interest.  All interest on Loans and all other amounts payable under this Agreement and the Related Documents shall be computed on the basis of a year of 360 days and the actual number of days elapsed.
ARTICLE V 
 
CONDITIONS PRECEDENT
Section 5.01    Initial Conditions.  As a condition precedent to the Lender's obligation to make the initial Loan hereunder, the Lender shall have received the following items in form and substance satisfactory to it:
(a)    Related Documents.  A counterpart hereof and of each of the Related Documents, each duly executed by the Borrower; and
(b)    Borrower Documents.  (i)  A Certificate from the Secretary of State of the State of Delaware certifying that the Borrower is in good standing under the laws of such state; and (ii) a certificate from a Responsible Officer, certifying (A) as to the incumbency and signatures of the officers of the Borrower authorized to execute and deliver this Agreement and the Related Documents and any certificate to be furnished pursuant thereto, (B) that attached thereto are true and complete copies of the constitutional documents of the Borrower, and (C) that attached thereto is a true and complete copy of the resolutions of the Borrower authorizing the execution, delivery and performance of this Agreement and the Related Documents and the transactions contemplated thereby, together with a certification by another officer of the Borrower as to the incumbency and signature of such appropriate officers.
Section 5.02    Continuing Conditions.  As a condition precedent to the Lender's obligation to make any Loan hereunder, including the initial Loan, the following conditions shall be satisfied on the date of such Loan:
(a)    Representations True.  The representations and warranties contained in Article VI hereof shall be true and correct in all material respects with the same force and effect as though made on and as of such date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date; 
(b)    No Default.  No Default or Event of Default has occurred and is continuing, or would result from such proposed Loan or from the application of the proceeds thereof; and

	
			
	 
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(c)    Notice of Borrowing.  The Lender shall have received a Notice of Borrowing in accordance with the requirements hereof.
(d)    Availability.  NRF and its consolidated Subsidiaries shall have, at the time of such proposed Loan and after giving effect to the proposed Loan, at least $100,000,000 of unrestricted cash and cash equivalents or amounts available under committed lines of credit.  
On the date of each Loan, the Borrower shall be deemed to have represented that all of the conditions to the making of such Loan have been satisfied.
ARTICLE VIREPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants to the Lender that:
Section 6.01    Existence, Qualification and Power.  The Borrower (a) is duly organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under this Agreement and the Related Documents to which it is a party and (c) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license except to the extent the absence of such qualification or license could reasonably be expected to have a Material Adverse Effect.
Section 6.02    Authorization; No Contravention.  The execution, delivery and performance by the Borrower of this Agreement and each Related Document to which it is or is to be a party, and the consummation of the transactions contemplated thereby, have been duly authorized by all necessary corporate or other organizational action, and, except for conflicts, breaches and/or violations that individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect, do not and will not (a) contravene the terms of any of the Borrower's organizational documents; (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any Contractual Obligation to which the Borrower is a party or affecting the Borrower or the properties of the Borrower or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which the Borrower or its property is subject, or (c) violate any Law.
Section 6.03    Governmental Authorization; Other Consents.  No approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, the Borrower of this Agreement or any Related Document.  
Section 6.04    Binding Effect.  This Agreement has been, and each other Related Document, when delivered hereunder, will have been, duly executed and delivered by the Borrower.  This Agreement constitutes, and each other Related Document when so executed and delivered will constitute, a legal, valid and binding obligation of the Borrower, enforceable against the Borrower 

	
			
	 
	9
	 

in accordance with its terms, except as enforcement may be limited by Debtor Relief Laws or similar equitable principles relating to or limiting creditors' rights generally.
Section 6.05    Financial Statements.  The financial statements of the Borrower furnished to the Lender on or before the date hereof (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein and (ii) fairly present the financial position of the Borrower as of the date hereof. 
Section 6.06    Litigation.  There are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrower after due and diligent investigation, threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority, by or against the Borrower or against any of its properties or revenues that (a) purport to affect or pertain to this Agreement, or any Related Document, or (b) except as specifically disclosed to the Lender, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.
Section 6.07    Insurance.  The properties of the Borrower are insured with financially sound and reputable insurance companies, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the Borrower operates.
Section 6.08    Taxes.  The Borrower has filed all Federal, state, local, foreign and other material tax returns and reports required to be filed, and has paid all Federal, state, local, foreign and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance with GAAP.  There is no proposed tax assessment against the Borrower that would, if made, have a Material Adverse Effect.
Section 6.09    Margin Regulations; Investment Company Act.
(a)    The Borrower is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the meaning of Regulation U issued by the Federal Reserve Board), or extending credit for the purpose of purchasing or carrying margin stock.  Following the application of the proceeds of each Loan, not more than 25% of the value of the assets (either of the Borrower only or of the Borrower and its Subsidiaries on a consolidated basis) will be margin stock.
(b)    None of the Borrower, any Person Controlling the Borrower, or any Subsidiary is or is required to be registered as an "investment company" under the Investment Company Act of 1940.
Section 6.10    Compliance with Laws.  The Borrower is in compliance in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently 

	
			
	 
	10
	 

conducted or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.
Section 6.11    Disclosure.  The Borrower has disclosed to the Lender all agreements, instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.  No report, financial statement, certificate, schedule or other information furnished (whether in writing or orally) by or on behalf of the Borrower to the Lender in connection with the negotiation of this Agreement or delivered hereunder or under any other Related Document (in each case, as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time.
ARTICLE VII 
 
AFFIRMATIVE COVENANTS
The Borrower covenants and agrees that until the Loans and all other amounts owing hereunder have been paid in full and the Commitments shall have expired:
Section 7.01    Financial Statements.  The Borrower will deliver to the Lender:
(a)    as soon as available, but in any event within 120 days after the end of each fiscal year of the Borrower, a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or operations, shareholders' equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited and accompanied by (i) a report of a registered public accounting firm of nationally recognized standing reasonably acceptable to the Lender, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any "going concern" or like qualification or exception or any qualification or exception as to the scope of such audit; and
(b)    as soon as available, but in any event within 60 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal quarter, and the related consolidated statements of income or operations, shareholders' equity (as applicable) and cash flows for such fiscal quarter and for the portion of the fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable detail and certified by the Chief Financial Officer of the Borrower as fairly presenting the financial condition, results of operations, shareholders' equity and cash flows of the Borrower and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes.

	
			
	 
	11
	 

The financial statements filed with or furnished to the Securities and Exchange Commission by the Borrower (and which are available online) shall be deemed to have been provided by the Borrower under the reporting requirements of this Section 7.01.
Section 7.02    Certificates; Other Information.  The Borrower will deliver to the Lender:
(a)    promptly after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of the Borrower, and copies of all annual, regular, periodic and special reports and registration statements which the Borrower may file or be required to file with the Securities and Exchange Commission under Section 13 or 15(d) of the Securities Exchange Act of 1934, and in any case not otherwise required to be delivered to the Lender pursuant hereto;
(b)    promptly after the furnishing thereof, copies of any statement or report furnished to any holder of debt securities of the Borrower or any Subsidiary thereof pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished to the Lenders pursuant to Section 6.01 or any other clause of this Section 7.02; 
(c)    promptly and in any event not more than three (3) Business Days after obtaining knowledge thereof, notice to the Lender of (i) the occurrence of any Default or (ii) the commencement of any litigation or governmental proceeding affecting the Borrower or any of its Subsidiaries which, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; and
(d)    promptly, such additional information regarding the business, financial, legal or corporate affairs of the Borrower or any Subsidiary thereof, or compliance with the terms of this Agreement and the Related Documents, as the Lender may from time to time reasonably request.
The statements, reports and other communications filed with or furnished to the Securities and Exchange Commission by the Borrower (and which are available online) shall be deemed to have been provided by the Borrower under the reporting requirements of this Section 7.02.
Section 7.03    Payment of Obligations.  The Borrower will pay and discharge as the same shall become due and payable, all its obligations and liabilities, including (a) all tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by the Borrower; and (b) all lawful claims which, if unpaid, would by law become a Lien upon its property.
Section 7.04    Preservation of Existence, Etc..  Except for transactions not prohibited by Section 8.01, the Borrower will (a) preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization; and (b) take all reasonable action to maintain all rights, privileges, authorizations, permits, licenses and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

	
			
	 
	12
	 

Section 7.05    Maintenance of Properties.   The Borrower will preserve and protect all of its properties and equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear excepted, and make all necessary repairs thereto and renewals and replacements thereof, except in each case where the failure to do so could not reasonably be expected to have a Material Adverse Effect.
Section 7.06    Compliance with Laws.  The Borrower will comply with the requirements of all applicable Laws, non‐compliance with which could, singly or in the aggregate, have a Material Adverse Effect.
Section 7.07    Keeping of Books and Records; Inspection.   The Borrower will maintain proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving the financial condition and operations of the Borrower.
Section 7.08    Inspection Rights.  The Borrower will permit representatives and independent contractors of the Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided, however, that when an Event of Default exists the Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice.
Section 7.09    Use of Proceeds.  The Borrower will use the proceeds of the Loans for general corporate purposes and not in contravention of any Law, this Agreement and any Related Document.
Section 7.10    Further Assurances.   The Borrower shall, promptly upon request by the Lender, (a) correct any material defect or error that may be discovered in this Agreement or any Related Document or in the execution, acknowledgment, filing or recordation thereof, and (b) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates, assurances and other instruments as the Lender may reasonably require from time to time in order to carry out more effectively the purposes of this Agreement.
ARTICLE VIII 
 
NEGATIVE COVENANTS
Until the Loans and all other amounts owing hereunder have been paid in full and the Commitments have expired, the Borrower shall not, directly or indirectly:
Section 8.01    Fundamental Changes.  Merge or consolidate with or into another Person, or liquidate or dissolve, or dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person; provided that, Borrower may do any of the foregoing if (i) the Borrower is the surviving 

	
			
	 
	13
	 

entity or (ii) the successor or transferee entity is a U.S. Person with at least $100,000,000 in assets and such Person assumes the obligations under this Agreement.
Section 8.02    Use of Proceeds.  Use the proceeds of any Loan, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the Federal Reserve Board) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund indebtedness originally incurred for such purpose.
ARTICLE IX 
 
EVENTS OF DEFAULT
Section 9.01    Events of Default.  Each of the following shall constitute an "Event of Default":
(a)    Non-Payment.  The Borrower fails to pay (i) when and as required to be paid herein, any amount of principal of any Loan, or (ii) within two Business Days after the same becomes due, any interest on any Loan or (iii) within five Business Days after the same becomes due, any other amount payable hereunder or under any Related Document; or
(b)    Specific Covenants.  (i) The Borrower fails to perform or observe in any material respect any term, covenant or agreement contained in any of Section 7.02(c)(i), 7.04(a), 7.08, 7.09, 7.10 or Article VIII; or
(c)    Other Defaults.  The Borrower fails to perform or observe in any material respect any other covenant or agreement (not specified in Section 9.01(a) or (b) above) contained in this Agreement or any Related Document on its part to be performed or observed and such failure continues for 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such failure and (ii) the Borrower receiving notice of such failure from the Lender; or
(d)    Representations and Warranties.  Any representation, warranty, certification or statement of fact made or deemed made by or on behalf of the Borrower herein, in any Related Document, or in any document delivered in connection herewith or therewith shall be incorrect or misleading in any material respect when made or deemed made or shall be breached; or
(e)    Cross-Default.  The Borrower (A) fails to make any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness (other than Indebtedness hereunder) having an aggregate principal amount (including undrawn revolving or available amounts and including amounts owing to all creditors under any combined or syndicated credit arrangement) of more than the Threshold Amount, or (B) fails to observe or perform any other agreement or condition relating to any such Indebtedness or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause such Indebtedness to be demanded or terminated or to become due or to be repurchased, prepaid, defeased or redeemed (automatically 

	
			
	 
	14
	 

or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or cash collateral in respect thereof to be demanded; or
(f)    Insolvency Proceedings, Etc.  The Borrower institutes or consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed without the application or consent of the Borrower and the appointment continues undischarged or unstayed for 90 calendar days; or any proceeding under any Debtor Relief Law relating to the Borrower or to all or any material part of its property is instituted without the consent of the Borrower and continues undismissed or unstayed for 90 calendar days, or an order for relief is entered in any such proceeding; or
(g)    Inability to Pay Debts; Attachment.  (i) The Borrower becomes unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of the Borrower and is not released, vacated or fully bonded within 30 days after its issue or levy; or
(h)    Judgments.  There is entered against the Borrower (i) a final judgment or order for the payment of money in an aggregate amount exceeding the Threshold Amount (to the extent not covered by independent third-party insurance as to which the insurer does not dispute coverage), or (ii) any one or more non-monetary final judgments that have, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 10 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or
(i)    Invalidity of Loan Documents.  Any of this Agreement or any Related Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full force and effect.
Section 9.02    Default Remedies.  If any Event of Default shall occur and be continuing, then and in every such event, and at any time thereafter during the continuance of such Event of Default, the Lender may, by notice to the Borrower, take one or more of the following actions:  (a) reduce its Commitment to zero and (b) declare its Loans to be forthwith due and payable, whereupon its Loans shall become forthwith due and payable both as to principal and interest together with all other amounts payable by the Borrower to the Lender under this Agreement or any other Related Document to which it is a party, without presentment, demand, protest or any other notice of any kind, all of which are expressly waived; provided, however, that if the Event of Default set forth in paragraph (f) of Section 9.01 hereof shall occur with respect to the Borrower, then without any notice to the Borrower or any other act by any other Person, the Loans, interest thereon and all such other amounts shall become automatically due and payable, all without presentment, demand, protest or notice of any kind, all of which are expressly waived.

	
			
	 
	15
	 

Section 9.03    Default Interest.  
(a)    Notwithstanding any other provision of this Agreement to the contrary, if the Borrower shall fail to pay any amount owing to the Lender under this Agreement or any Related Document to which the Borrower is a party when due (whether at stated due date, on acceleration or otherwise), then the Borrower will pay interest to the Lender payable on demand, on the amount in default from the date such payment became due until payment in full at an interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.
(b)    While any Event of Default exists and is continuing, the Borrower shall pay interest on the amount of all outstanding Obligations under Agreement or any Related Document at an interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.
Section 9.04    Funding Indemnities.  The Borrower will indemnify the Lender against, and on demand reimburse the Lender for, any loss, premium, penalty or expense which the Lender may pay or incur (including, without limitation, any loss or expense incurred by reason of the relending, depositing or other employment of funds acquired by the Lender to fund any Loan) as a result of any acceleration of any Loan pursuant to Section 9.02 hereof.  The Lender shall furnish the Borrower with a certificate setting forth the basis for determining any additional amount to be paid to it hereunder, and such certificate shall be conclusive, absent manifest error, as to the contents thereof.
ARTICLE X
 
GENERAL PROVISIONS
Section 10.01    Assignment.  The Borrower may not assign its rights or obligations under this Agreement without the prior written consent of the Lender which consent may be given or withheld in the sole and absolute discretion of the Lender.  The Lender may not assign its rights or obligations under this Agreement without the prior consent of the Borrower.  Any such assignment shall be made pursuant to an assignment agreement between such assignee and the Lender.  Upon execution and delivery of an assignment agreement, from and after the effective date specified in such assignment agreement, (x) the assignee thereunder shall be a party hereto and have the rights and obligations of the Lender hereunder and (y) the transferor Lender thereunder shall be released from its obligations under this Agreement.  On or prior to the effective date specified in such assignment agreement, the Borrower, at its own expense, shall execute and deliver to such transferor Lender in exchange for the Revolving Credit Note previously delivered to the transferor Lender a new Revolving Credit Note to the order of such assignee in an amount equal to the principal amount of the original Revolving Credit Note.  Each such new Revolving Credit Note shall be dated the effective date of such assignment and shall otherwise be in the form of the Revolving Credit Note replaced thereby.  Subject to the foregoing, all provisions contained in this Agreement or any document or agreement referred to herein or relating hereto shall inure to the benefit of, and shall be binding upon, the Borrower, the Lender and their respective successors and permitted assigns.

	
			
	 
	16
	 

Section 10.02    Amendments and Waivers.  Any provision of this Agreement may be amended if, but only if, such amendment is in writing and is signed by the Borrower and the Lender. No consent to any departure by the Borrower from the provisions of this Agreement shall be effective unless in writing signed by the Lender, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. Without limitation of the foregoing, Borrower and Lender may amend or terminate this Agreement at any time.
Section 10.03    Notices.  
(a)    Notices Generally. All notices, requests, demands and other communications to any party hereunder shall be in writing (including telecopy or similar writing) and shall be given to such party at its address, or telecopier number set forth below or such other address or telecopier number as such party may hereafter specify by notice to the other parties listed below.
		
	If to the Lender:
	NorthStar Realty Finance Corp.

399 Park Avenue, 18th Floor
New York, NY 10022
Attn: Chief Investment and Operating Officer
Tel: 1 (212) 547-2600

		
	If to the Borrower:
	NorthStar Asset Management Group Inc.

399 Park Avenue, 18th Floor
New York, NY 10022
Attn: General Counsel
Tel: 1 (212) 547-2600

Each such notice, request or other communication shall be effective when actually received.
(a)    Electronic Communication.  Notices and other communications to the Lender hereunder may be delivered or furnished by electronic communication (including e‐mail and Internet or intranet websites) pursuant to procedures approved by the Lender.  The Lender or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications.
Section 10.04    Expenses; Indemnification.  
(a)    The Borrower agrees to pay all reasonable out‐of‐pocket costs and expenses, including the reasonable fees and disbursements of counsel, incurred by the Lender in connection with (i) the preparation, execution and delivery of this Agreement and (ii) any amendments and waivers hereof or thereof.  The Borrower also agrees to pay all reasonable out‐of‐pocket costs and expenses, including the fees and disbursements of counsel, incurred by the Lender in connection with the enforcement of this Agreement and the collection of any amounts owing hereunder.  In addition, the Borrower will indemnify the Lender (and any sub-agent thereof) (each such Person being called an "Indemnitee") against, and on demand reimburse such Indemnitee for, any and all 

	
			
	 
	17
	 

liabilities, obligations, losses, damages, penalties, stamp and other similar taxes, actions, judgments, costs, expenses or disbursements of any kind or nature whatsoever which may at any time be imposed on, incurred by or asserted against such Indemnitee arising solely out of this Agreement; provided that the Borrower shall not be liable for any of the foregoing to the extent they arise from the gross negligence or willful misconduct of the Indemnitee.  
(b)    To the fullest extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any Loan or the use of the proceeds thereof.  No Indemnitee referred to in subsection (a) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement.
(c)    All amounts due under this Section 10.04 shall be payable not later than thirty days after demand therefor. 
(d)    Notwithstanding anything in this Agreement to the contrary, the provisions of this Section 10.04 shall survive the termination of this Agreement.
Section 10.05    Cumulative Rights; No Waiver.  No failure by the Lender to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.
Section 10.06    Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement constitutes the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 5.01, this Agreement shall become effective when it shall have been executed by the Lender and when the Lender shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of this Agreement.
Section 10.07    Severability.  If any provision of this Agreement is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable 

	
			
	 
	18
	 

provisions.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
Section 10.08    Headings.  The Article and Section headings in this Agreement are for convenience of reference only and shall not affect the interpretation hereof.
Section 10.09    GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
Section 10.10    Consent to Jurisdiction.  The Borrower irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Lender in any way relating to this Agreement or the transactions relating hereto or thereto, in any forum other than the courts of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees, to the fullest extent permitted by applicable law, that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York state court or in such federal court.  Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement shall affect any right that the Lender may otherwise have to bring any action or proceeding relating to this Agreement against the Borrower or its properties in the courts of any jurisdiction.
Section 10.11    Waiver of Venue.   The Borrower irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement in any court referred to in Section 10.10.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
Section 10.12    Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 10.03.  Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by applicable law.
Section 10.13    Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES 

	
			
	 
	19
	 

HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
[Remainder of page left blank intentionally; signatures follow]

	
			
	 
	20
	 

IN WITNESS WHEREOF, the parties hereto have caused this Credit Agreement to be duly executed as of the date first above written.

BORROWER:
NORTHSTAR ASSET MANAGEMENT GROUP INC.

By:   /s/ Debra A. Hess______________________ 
Name: Debra A. Hess 
Title: Chief Financial Officer

	
			
	 
	[Signature page to NRF - NSAM Credit Agreement]

	 

LENDER:
NORTHSTAR REALTY FINANCE CORP.
		
	By:
	/s/ Ronald J. Lieberman     
Name: Ronald J. Lieberman  
Title: Executive Vice President, General Counsel & Secretary

	
			
	 
	[Signature page to NRF - NSAM Credit Agreement]
	 

Exhibit A
FORM OF REVOLVING CREDIT PROMISSORY NOTE
NORTHSTAR ASSET MANAGEMENT GROUP INC.
REVOLVING CREDIT PROMISSORY NOTE
New York, New York
$250,000,000.00    __________ __, 20__
FOR VALUE RECEIVED, NORTHSTAR ASSET MANAGEMENT GROUP INC., a Delaware corporation (the "Borrower"), promises to pay to the order of NORTHSTAR REALTY FINANCE CORP. (the "Lender"), at the time or times which shall be determined by the provisions of the Credit Agreement referred to below, TWO HUNDRED FIFTY MILLION AND NO/100 DOLLARS ($250,000,000.00) or, if less, the unpaid principal amount of the outstanding Loans made by the Lender to the Borrower under the Credit Agreement referred to below.
The Borrower also promises to pay interest on the unpaid principal amount hereof from time to time outstanding, from the date such amount is advanced by the Lender to the Borrower until paid in full at the rates and at the times which shall be determined in accordance with the provisions of the Credit Agreement (the "Credit Agreement") dated as of June 30, 2014 between the Borrower and the Lender.
This Note is issued pursuant to and entitled to the benefits of the Credit Agreement, to which reference is hereby made for a more complete statement of the terms and conditions under which the Loans evidenced hereby and thereby are made and are to be repaid.  Capitalized terms used herein without definition shall have the meanings set forth in the Credit Agreement.
All payments of principal and interest in respect of this Note shall be made in lawful currency of the United States of America without set‐off or counterclaim, in immediately available or same day funds, delivered to the Lender at its address referred to in the Credit Agreement or to such other location as the Lender may designate from time to time.
This Note may not be transferred except pursuant to and in accordance with Section 10.01 of the Credit Agreement.  Until notified in writing of the transfer of this Note, the Borrower shall be entitled to deem the Lender as the holder of this Note.  
This Note is subject to prepayment at the option of the Borrower as provided in the Credit Agreement.  Upon the occurrence of an Event of Default, the unpaid balance of the principal amount of this Note may become, or may be declared to be, due and payable in the manner, upon the conditions and with the effect provided in the Credit Agreement.
No reference herein to the Credit Agreement and no provision of this Note or the Credit Agreement shall alter or impair the obligation of the Borrower, which is absolute and unconditional, 

	
			
	 
	1
	 

to pay the principal of and interest on this Note at the place, at the respective times, and in the currency herein prescribed.
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
IN WITNESS WHEREOF, the Borrower has caused this Note to be executed and delivered by its duly authorized officer, as of the day and year first above written.
NORTHSTAR ASSET MANAGEMENT GROUP INC.

By:   ___________________________ 
Name: 
Title:

	
			
	 
	2
	 

Exhibit B
FORM OF NOTICE OF BORROWING
NORTHSTAR ASSET MANAGEMENT GROUP INC.
NOTICE OF BORROWING
Date:
NORTHSTAR REALTY FINANCE CORP.
Gentlemen:
Pursuant to Section 2.02 of the Credit Agreement (the "Credit Agreement"), dated as of June 30, 2014, between NorthStar Asset Management Group Inc. (the "Borrower") and NorthStar Realty Finance Corp., as lender, named above, we hereby give you irrevocable notice that we request a Loan as follows:
1.    Amount of Loan: $_________________.
2.    Date of Borrowing: _________________.
We hereby confirm that all conditions to such Loan will be satisfied on the date of such Loan.
Capitalized terms used herein but not defined shall have the meanings given to them in the Credit Agreement.
NORTHSTAR ASSET MANAGEMENT GROUP INC.

By:   ___________________________ 
Name: 
Title:

	
			
	 
	1Exhibit 10.11 - HamamotoEmploymentAgreement

Exhibit 10.11

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive Employment Agreement (the “Agreement”) by and between David T. Hamamoto (“Executive”), NorthStar Asset Management Group Inc. (the “Company”) and, solely for purposes of Section 17, NorthStar Realty Finance Corp. (“NRF”), is dated June 30, 2014, and shall be effective upon the consummation of the contemplated spin-off of the Company from NRF (the “Effective Date”).
WHEREAS, Executive and the Company desire to memorialize the terms and conditions related to Executive’s employment by the Company herein.
NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Agreements Between the Parties.  This Agreement is intended to memorialize all of the terms and conditions of Executive’s employment by the Company.
2.    Employment.
(a)    Term.  The Company shall employ Executive, and Executive agrees to be employed with the Company, upon the terms and conditions set forth in this Agreement, for the period beginning on the Effective Date and ending on the third anniversary of the Effective Date (the “Employment Period”); provided, however, that commencing on the third anniversary of the Effective Date and on each subsequent anniversary of the Effective Date (each such anniversary, a “Renewal Date”), the Employment Period shall automatically be extended for one additional year unless, not later than ninety (90) days prior to such Renewal Date, the Company or Executive shall have given written notice not to extend the Employment Period; provided, further, however, that the Employment Period shall be subject to earlier termination as provided in Section 5(b) hereof (the “Term”).
(b)    Base Salary.  Executive’s initial base salary shall be $1,050,000 per annum (pro-rated for partial calendar years), payable in accordance with the Company’s usual payroll practices for senior executives (as in effect from time to time, the “Base Salary”); provided that the Base Salary for any year shall be reduced, but not below $0, by the amount of any cash compensation paid to Executive by NRF or its subsidiaries as base salary during such year for 

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services directly provided to such entities by Executive as an employee of such entities following the Effective Date.  In subsequent years of the Term, the Base Salary shall be subject to annual review and adjustment from time to time by the compensation committee of the Company’s board of directors (the “Compensation Committee”), taking into account such factors as the Compensation Committee deems appropriate, including but not limited to the salaries of executive officers having similar titles and performing similar functions at comparable companies.
(c)    Annual Cash Bonus.  For fiscal years during Executive’s employment with the Company, Executive shall participate in an annual cash incentive compensation plan as adopted and approved by the board of directors of the Company or a committee thereof acting pursuant to the authority of the board of directors of the Company (the “Board”) from time to time, with applicable corporate and individual performance targets and maximum award amounts determined by the Compensation Committee (the “Annual Cash Bonus”).  Executive agrees that the Annual Cash Bonus for any year (including, without limitation, the amount of any Annual Bonus otherwise due pursuant to the Company’s Executive Incentive Bonus Plan (the “Bonus Plan”) for the 2014 Plan Year) shall be reduced, but not below $0, by the amount of any cash compensation paid to Executive by NRF or its subsidiaries as annual cash bonus for such year for services directly provided to such entities by Executive as an employee of such entities following the Effective Date.
Any Annual Cash Bonus payable to Executive will be paid at the time set forth in the applicable bonus plan, or if no such plan exists, at the time the Company otherwise pays such bonuses to its senior executives, but in no event later than 75 days following the end of the applicable fiscal year, and will be subject to the terms and conditions of the applicable annual cash incentive compensation plan.
(d)    Long Term Incentive Awards.  During Executive’s employment with the Company, Executive shall be eligible to receive long term equity incentive compensation awards (which may consist of restricted stock, stock options, stock appreciation rights, or other types of equity or cash bonus awards, including equity awards denominated in or relating to shares of NRF common stock or equity of any other NSAM Managed Company (as defined below), as determined by the Compensation Committee in its discretion) pursuant to the Company’s equity incentive compensation plans and programs in effect from time to time, including, without limitation, the Bonus Plan.  These awards shall be granted in the discretion of the Board and shall include such terms and conditions (including performance objectives) as the Board deems appropriate.

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(e)    Vacation.  Executive shall be eligible for four weeks of annual vacation to be accrued and payable in accordance with the Company’s policy with respect to senior executives.
(f)    Indemnification.  To the fullest extent permitted by law, the Company will indemnify Executive against any actual or threatened action, suit or proceeding, whether civil, criminal, administrative or investigative, arising by reason of Executive’s status as a current or former director, officer, employee and/or agent of the Company, any subsidiary or affiliate of the Company or any other entity to which the Company appoints Executive to serve as a director or officer.  Executive shall be covered under any director and officer insurance policy obtained by the Company, if any, and shall be entitled to benefit from any officer indemnification arrangements adopted by the Company, if any, to the same extent as other directors or senior executive officers of the Company (including the right to such coverage or benefit following Executive’s employment to the extent liability continues to exist).  However, Executive agrees to repay any expenses paid or reimbursed by the Company for Executive’s indemnification expenses if it is ultimately determined by a final non-appealable court decision that Executive is not legally entitled to be indemnified by the Company.
(g)    Other Benefits.  In addition, Executive will be eligible to participate in all fringe benefit plans and retirement plans of the Company, as are generally available to the other senior management employees of the Company, such as health insurance plans, disability insurance plans, life insurance plans, expense reimbursement and the Company’s 401(k) retirement plan.
(h)    Clawback Policy. Executive acknowledges that Executive will be subject to the Company’s clawback policy, dated as of June 26, 2014, which is in effect as of the date hereof.
3.    Duties of Executive.
(a)    Duties of Position.  During the Employment Period, Executive shall serve as Founder and Chief Executive Officer of the Company.  Executive shall perform such duties and responsibilities, consistent with Executive’s title, training and experience, as are from time to time reasonably assigned to Executive by the Board.  Executive shall report directly to the Board.  It is anticipated that during the Employment Period, Executive shall also provide services directly to NRF and/or its subsidiaries, as well as to other entities with which the Company or its subsidiaries may have entered into or may enter into management agreements following the Effective Date (such entities, “NSAM Managed Companies”).  Executive agrees to devote not less than a majority of Executive’s business time, attention and energies to the performance of 

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the duties assigned to Executive hereunder and his services to NRF and, if applicable, any other NSAM Managed Companies and their subsidiaries, and to perform his duties hereunder faithfully, diligently and to the best of Executive’s abilities and subject to such laws, rules, regulations and policies from time to time applicable to the Company’s employees.  Notwithstanding the above, nothing in this Agreement shall preclude Executive from devoting a portion of Executive’s business time, attention and energies to other business endeavors.  The Company may assign all or a portion of its rights and obligations under this agreement to any of its affiliates or enter into an agreement with any of its affiliates that provides that Executive will perform services on behalf of such affiliate and Executive agrees to provide such services, as directed by the Company.
(b)    Confidential Information.  Executive shall hold in confidence for the benefit of the Company all of the information (other than information concerning corporate opportunities) and business secrets in respect of the Company and all of its affiliates, including, but not limited to, all information and data relating to or concerned with the legal, business, finances, pending transactions and other affairs of the Company and all of its affiliates, and Executive shall not at any time before or after Executive’s employment by the Company is terminated for any reason, or Executive resigns for any reason, willfully use or disclose or divulge any such information or data to any other Person (as defined below) except (i) with the prior written consent of the Company, (ii) to the extent necessary to comply with applicable law or the valid order of a court of competent jurisdiction, in which event Executive shall notify the Company as promptly as reasonably practicable (and, if possible, prior to making such disclosure), or to enforce or defend his rights under this Agreement or any other agreements with the Company or any affiliate, and (iii) in the performance of Executive’s duties hereunder.  With respect to information concerning corporate opportunities of the Company and all of its affiliates that are developed, initiated or become known to Executive during Executive’s employment with the Company, Executive shall hold in confidence for the benefit of the Company all of such information in respect of the Company and all of its affiliates, including, but not limited to, all information and data relating to or concerned with such opportunities of the Company and all of its affiliates, and Executive shall not at any time before or within one (1) year after Executive’s employment by the Company is terminated for any reason, or Executive resigns for any reason, willfully use or disclose or divulge any information relating to any such corporate opportunities to or for the benefit of Executive or any other Person (as defined below) except (i) with the prior written consent of the Company, (ii) to the extent necessary to comply with applicable law or the valid order of a court of competent jurisdiction, in which event Executive shall notify the Company as promptly as reasonably practicable (and, if possible, prior to making such disclosure) and (iii) in the performance of Executive’s duties hereunder.  The foregoing provisions of this Section 3(b) shall not apply to any information or data which has been 

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previously disclosed to the public or is otherwise in the public domain in each case other than as a result of the breach by Executive of Executive’s obligations under this Section 3(b).  For purposes of this Agreement, “Person” means an individual, corporation, partnership, limited liability company, joint venture, association, trust, unincorporated organization, other entity or “group” (as defined in the Securities Exchange Act of 1934, as amended (the “Exchange Act”)).
4.    Termination of Employment.  Executive’s employment hereunder may be terminated in accordance with this Section 4.
(a)    Death.  Executive’s employment hereunder shall terminate upon Executive’s death.
(b)    Disability.  If, as a result of Executive’s incapacity due to physical or mental illness, Executive shall have been absent from the full-time performance of Executive’s duties hereunder for the entire period of six consecutive months, and within thirty (30) days after written Notice of Termination (as defined in Section 5(a)) is given shall not have returned to the performance of Executive's duties hereunder on a full-time basis, the Company may terminate Executive’s employment hereunder for “Disability.”
(c)    Cause.  The Company may terminate Executive’s employment hereunder for Cause.  For purposes of this Agreement, the Company shall have “Cause” to terminate Executive’s employment hereunder upon the occurrence of any of the following events:
(i)    the conviction of, or a plea of nolo contendere by, Executive for the commission of a felony;
(ii)    continuing willful failure for ten (10) business days to substantially perform Executive’s duties hereunder (other than such failure resulting from Executive’s incapacity due to physical or mental illness or subsequent to the issuance of a Notice of Termination by Executive for Good Reason) after demand for substantial performance is delivered by the Company in writing that specifically identifies the manner in which the Company believes Executive has not substantially performed Executive’s duties; or
(iii)    willful misconduct by Executive (including, but not limited to, breach by Executive of the provisions of Section 7) that is demonstrably and materially injurious to the Company or its subsidiaries.
(d)    Good Reason.  Executive may terminate Executive’s employment hereunder for “Good Reason” by providing to the Company a Notice of Termination within 

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thirty (30) days after the occurrence, without Executive’s written consent, of one of the following events that has not been cured within ten (10) business days after written notice thereof has been given by Executive to the Company:
(i)    the assignment to Executive of duties materially inconsistent with Executive’s status as Chief Executive Officer of the Company or the Executive is directed to directly report to other than the Board (or the board of directors of the Successor Person following a Change of Control pursuant to clause (i), (ii) or (iv) of the definition thereof);
(ii)    following a Change of Control, the assignment to Executive of duties with the Company or the Successor Person, as applicable, inconsistent with Executive’s title, position, status, reporting relationships, authority, duties or responsibilities to the Company as contemplated by Section 3(a) (including, without limitation, if Executive is not the Chief Executive Officer of the Successor Person), or any other action by the Successor Person which results in a diminution in Executive’s title, position, status, reporting relationships, authority, duties or responsibilities, other than insubstantial or inadvertent actions not taken in bad faith which are remedied by the Successor Person or the Company promptly after receipt of notice thereof given by Executive;
(iii)    a reduction by the Company in Executive’s Base Salary or a failure by the Company to pay any Base Salary or contractually committed cash bonus payment amounts when due (other than a reduction or failure to pay resulting from Executive’s receipt of cash compensation from NRF or its subsidiaries for services directly provided to such entities by Executive as an employee of such entities in accordance with Section 2(a) or 2(c));
(iv)    following a Change of Control, the requirement by the Successor Person or the Company that the principal place of performance of Executive’s services be at a location more than fifty (50) miles from either (x) the greater New York City metropolitan area or (y) the metropolitan area where Executive principally performed Executive’s services immediately prior to such Change of Control or, if earlier, the entry into a definitive agreement contemplating a Change of Control;
(v)    any purported termination of Executive’s employment which is not effected pursuant to a Notice of Termination satisfying the requirements of Section 5(a); or

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(vi)    a material failure by the Company to comply with any other material provision of this Agreement, including, without limitation, a breach of Section 11.
(e)    Change of Control.  For the purposes hereof, a “Change of Control” of the Company shall be deemed to have occurred if an event set forth in any one of the following paragraphs (i) - (v) shall have occurred:
(i)    any Person is or becomes Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing thirty-five percent (35%) or more of the combined voting power of the then outstanding securities of the Company, excluding (A) any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (x) of paragraph (ii) below, and (B) any Person who becomes such a Beneficial Owner through the issuance of such securities with respect to purchases made directly from the Company; or
(ii)    the consummation of a merger or consolidation of the Company with any other Person or the issuance of voting securities of the Company in connection with a merger or consolidation of the Company (or any direct or indirect subsidiary of the Company), other than (x) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) fifty percent (50%) or more of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (y) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing thirty-five percent (35%) or more of the combined voting power of the then outstanding securities of the Company;
(iii)    the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company;
(iv)    the consummation of the sale or disposition by the Company of all or substantially all of the assets of the Company; or

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(v)    individuals who, on the Effective Date, constitute the Board (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the Effective Date, whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Directors then on the Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without written objection to such nomination) shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any person other than the Board shall be deemed to be an Incumbent Director.
For purposes of this Agreement, (1) “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act and (2) “Successor Person” shall mean (A) the Person who is or becomes Beneficial Owner of securities of the Company representing thirty-five percent (35%) or more of the combined voting power of the then outstanding securities of the Company as a result of a Change of Control pursuant to clause (i) of the definition thereof; (B) in the event of a Change of Control pursuant to clause (ii) of the definition thereof resulting from the consummation of a merger or consolidation of the Company with any other Person, the ultimate parent entity controlling the Person surviving or resulting from such merger or consolidation or, if the Person surviving or resulting from such merger or consolidation is not a subsidiary of another entity, such Person, (C) in the event of a Change of Control pursuant to clause (iv) of the definition thereof, the ultimate parent entity of the Person that is the purchaser or other transferee of all or substantially all of the assets of the Company or, if such Person is not a subsidiary of another entity, such Person, or (D) in the event of all other circumstances resulting in a Change of Control, the Company.
(f)    The Company may terminate Executive’s employment at any time without Cause.  Executive may terminate Executive’s employment at any time without Good Reason upon thirty (30) days’ advance written notice to the Company.
(g)    The Company shall not be required to make the payments and provide the benefits specified in Section 6 below (other than the Accrued Benefits (as defined below) or payments and benefits to be made or provided in connection with a termination of Executive’s 

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employment on account of death (other than on account of death after delivery of a valid Notice of Termination for Cause or by Executive without Good Reason)) unless Executive executes and delivers to the Company an agreement releasing the Company, its affiliates and its officers, directors and employees from all liability (other than the payments and benefits under this Agreement and certain other entitlements set forth therein) attached hereto as Exhibit A (the “Release Agreement”) and the Release Agreement becomes irrevocable within thirty (30) days after the Date of Termination; provided, however, that the effectiveness of the Release Agreement will be subject to the Company releasing Executive from all liability to the Company and its affiliates that any Board members (other than Executive) have actual knowledge of on the Date of Termination under the Release Agreement.  The Release Agreement shall constitute the Release required by any equity or bonus award agreement.
(h)    Unless the Company and Executive agree in writing to waive this requirement, upon the termination of Executive’s employment for any reason, Executive agrees to promptly resign from (i) office as a director of the Company, any subsidiary or affiliate of the Company and any other entity to which the Company appoints Executive to serve as a director, including, without limitation, NRF and all NSAM Managed Companies, (ii) from all offices held by Executive in any or all of such entities in clause (i) above, and (iii) all fiduciary positions (including as trustee) held by Executive with respect to any pension plans or trusts established by any such entities in clause (i) above.   For the avoidance of doubt, the reason for Executive’s termination of employment under this Agreement shall be deemed to be the same reason Executive’s employment terminates with respect to any Company subsidiary or affiliate, NRF or any NSAM Managed Companies.
5.    Termination Procedure.
(a)    Notice of Termination.  Any termination of Executive’s employment by the Company or by Executive (other than termination pursuant to Sections 4(a) and 6(a)(i) hereof) shall be communicated by written “Notice of Termination” to the other party hereto in accordance with Section 12.  In connection with a termination pursuant to Section 4(b), 4(c) or 4(d), such “Notice of Termination” shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated.
(b)    Effect of Date of Termination.  “Date of Termination” of Executive’s employment and this Agreement shall mean (i) if the Term of this Agreement expires without renewal as of the third anniversary of the Effective Date or any subsequent Renewal Date, the date of such expiration, (ii) if Executive’s employment is terminated pursuant to Section 4

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(a) above, the date of Executive’s death, (iii) if Executive’s employment is terminated pursuant to Section 4(b) above, thirty (30) days after delivery to Executive of Notice of Termination (provided that Executive shall not have returned to the performance of Executive’s duties on a full-time basis during such thirty (30) day period), (iv) if Executive’s employment is terminated pursuant to Sections 4(c) and 4(f) above, the date specified in the Notice of Termination (which date shall be at least thirty (30) days after delivery to Company of Notice of Termination in the case of a termination by Executive pursuant to Section 4(f)), and (v) if Executive’s employment is terminated pursuant to Section 4(d) above, the date on which a Notice of Termination is given or any later date (within thirty (30) days) set forth in such Notice of Termination; provided that the Company shall not have cured the event giving rise to the Notice of Termination within ten (10) business days following delivery of such Notice.  Upon the Date of Termination, the Term of this Agreement shall expire and the Company shall have no further obligation to Executive except to the extent Executive is otherwise entitled to any unpaid salary or benefits hereunder and insurance coverage in accordance with applicable law; provided that the provisions set forth in Sections 2(f), 3(b), 6, 7, 13, 14 and 15 hereof and this Section 5(b) shall remain in full force and effect after the termination of Executive’s employment, notwithstanding the expiration of the Term of or termination of this Agreement.
6.    Obligations of the Company Upon Termination of Employment.
(a)    Expiration of Term and Nonrenewal by Executive, By the Company for Cause or by Executive without Good Reason.  If Executive’s employment shall be terminated (i) due to and upon expiration of the Term of this Agreement because Executive shall have given written notice not to extend the Employment Period pursuant to Section 2(a), (ii) by the Company for Cause or (iii) by Executive without Good Reason, then the Company shall pay Executive Executive’s Base Salary (at the rate in effect at the time Notice of Termination is given) through the Date of Termination on or before the time required by law but in no event more than 30 days after the Executive’s Date of Termination, and any accrued or vested benefits or entitlements the Executive may have under any employee benefit, equity or bonus plan or award agreement of the Company or any affiliate through the Date of Termination, which accrued or vested benefits or entitlements shall be paid and/or provided in accordance with the terms of such employee benefit, equity or bonus plans or award agreements (collectively, the “Accrued Benefits”) and, except as provided in Section 2(f), the Company shall have no additional obligations to Executive under this Agreement.
(b)    Death; Disability.  If, during the Employment Period, Executive’s employment shall terminate on account of death (other than on account of death after delivery of a valid Notice of Termination for Cause or by Executive without Good Reason) or Disability, 

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except as provided in Section 2(f), the Company shall have no further obligations to Executive other than to provide Executive (or Executive’s estate):
(vii)    the Accrued Benefits;
(viii)    1.0 times Executive’s Base Salary at the rate in effect at the Date of Termination without taking into account any reduction in Base Salary in accordance with Section 2(a) resulting from Executive’s receipt of cash compensation from NRF or its subsidiaries as base salary for services directly provided to such entities by Executive as an employee of such entities;
(ix)    a pro-rated bonus based upon the number of days in the year of termination through the Date of Termination relative to 365 and the target Annual Cash Bonus in the year the Date of Termination occurs; provided that (x) no amount shall be payable pursuant to this Section 6(b)(iii) if (i) Executive was a Participant in the Bonus Plan and received an Annual Bonus Pool Percentage for the Plan Year (as such terms are defined in the Bonus Plan) in which the Date of Termination occurs or (ii) Executive was a participant in an annual bonus plan or program of the Company, other than the Bonus Plan, during the year in which the Date of Termination occurs that specifically provides for a method of determining the pro-rated annual bonus to be received by the Executive for the year in which the Date of Termination occurs and (y) if a target Annual Cash Bonus has not yet been established for Executive (or Executive’s Annual Bonus Pool Percentage for such Plan Year or the basis upon which Executive is to participate in an alternative annual bonus plan or program has not yet been determined) for the year in which the Date of Termination occurs, Executive’s target Annual Cash Bonus shall be deemed to be Executive’s actual Annual Cash Bonus for the prior year;
(x)    the health benefits set forth under Other Benefits in Section 2(g) for a one-year period from the Date of Termination;
(xi)    full vesting of all Company or any affiliate’s equity awards as of the Date of Termination, except to the extent otherwise provided in the plan governing particular equity awards, as in effect at the time such equity awards were granted, or an award agreement governing a particular equity award or as otherwise consented to by Executive in writing;

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(xii)    continuing exercisability of all stock options and stock appreciation rights for the lesser of (x) twelve (12) months after the Date of Termination or (y) the remainder of their term; and
(xiii)    any restrictions prohibiting the transfer or other disposition of vested shares of the Company’s common stock, LTIP Units (or similar units) of the Company’s operating partnership subsidiary, or equity interests of NRF or any other NSAM Managed Company (including any subsidiary of NRF or any such NSAM Managed Company) shall lapse on the date that is thirty (30) days after the Date of Termination notwithstanding any provisions to the contrary contained in the award agreements or plans governing such vested shares, LTIP Units (or similar units) or equity interests.
The amounts set forth in Section 6(b)(ii) and (iii) will be paid in a lump sum in cash within thirty (30) days after the Date of Termination; provided that if the 30-day period begins in one calendar year and ends in a second calendar year, such amounts shall be paid in the second calendar year by the last day of such 30-day period.
(c)    For any other reason.  If, during the Employment Period, Executive’s employment shall terminate for any reason other than those provided in Section 6(a) or 6(b) above (including due to and upon expiration of the Term of this Agreement because the Company shall have given written notice not to extend the Employment Period pursuant to Section 2(a)), except as provided in Section 2(f), the Company shall have no further obligations to Executive other than to provide Executive:
(vi)    the Accrued Benefits;
(vii)    an amount equal to 2.25 times (or 3.0 times in the event such termination occurs in connection with (i.e., after a definitive agreement is executed which results in a Change of Control or within 70 days prior to a Change of Control where substantial steps have been taken by the Company (or of which the Company is aware) to negotiate or effectuate such Change of Control prior to such termination) or within 12 months following a Change of Control) Executive’s total compensation in effect prior to the Date of Termination (using for this purpose, (x) Executive’s Base Salary at the rate in effect on the Date of Termination without taking into account any reduction in Base Salary in accordance with Section 2(a) resulting from Executive’s receipt of cash compensation from NRF or its subsidiaries as base salary for services directly provided to such entities by Executive as an employee of such entities, and (y) the 

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average of the annual bonuses (including, to the extent paid by the Company, NRF, any other NSAM Managed Company or any of their subsidiaries, Annual Cash Bonuses and annual bonuses paid in LTIPs or other securities of the Company, NRF, any other NSAM Managed Company or any of their subsidiaries and excluding annual bonuses paid in LTIPs or such other securities that are earned based on multi-year performance criteria) earned for the three (3) years prior to the year in which the Date of Termination occurs; provided that if the Date of Termination occurs before annual bonuses for Executive have been earned for at least three (3) years from and including the year in which the Effective Date occurs, the average for purposes of clause (y) shall be computed based on (i) each full calendar year from and including the year in which the Effective Date occurs or (ii) if the Date of Termination occurs before the end of the year in which the Effective Date occurs, the average of the annual bonuses (including annual cash bonuses and annual bonuses paid in shares of common stock or other securities of NRF or its operating partnership) earned from NRF for the three (3) years prior to the year in which the Date of Termination occurs (or such lesser number of full years as Executive was employed by NRF);
(viii)    a pro-rated bonus based upon the number of days in the year of termination through the Date of Termination relative to 365 and the target Annual Cash Bonus in the year the Date of Termination occurs; provided that (x) no amount shall be payable pursuant to this Section 6(c)(iii) if (i) Executive was a Participant in the Bonus Plan and received an Annual Bonus Pool Percentage for the Plan Year (as such terms are defined in the Bonus Plan) in which the Date of Termination occurs or (ii) Executive was a participant in an annual bonus plan or program of the Company, other than the Bonus Plan, during the year in which the Date of Termination occurs that specifically provides for a method of determining the pro-rated annual bonus to be received by the Executive for the year in which the Date of Termination occurs and (y) if a target Annual Cash Bonus has not yet been established for Executive (or Executive’s Annual Bonus Pool Percentage for such Plan Year or the basis upon which Executive is to participate in an alternative annual bonus plan or program has not yet been determined) for the year in which the Date of Termination occurs, Executive’s target Annual Cash Bonus shall be deemed to be Executive’s actual Annual Cash Bonus for the prior year;
(ix)    the health benefits set forth under Other Benefits in Section 2(g) until the earlier of (x) the one-year anniversary of the Date of 

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Termination and (y) the date upon which executive receives similar health benefits from another Person;
(x)    full vesting of all Company or any affiliate’s equity awards as of the Date of Termination, except to the extent otherwise provided in the plan governing particular equity awards, as in effect at the time such equity awards were granted, or an award agreement governing a particular equity award or as otherwise consented to by Executive in writing;
(xi)    continuing exercisability of all stock options and stock appreciation rights for the lesser of (x) twelve (12) months after the Date of Termination or (y) the remainder of their term; and
(xii)    any restrictions prohibiting the transfer or other disposition of vested shares of the Company’s common stock, LTIP Units (or similar units) of the Company’s operating partnership subsidiary, or equity interests of NRF or any other NSAM Managed Company (including any subsidiary of NRF or any such NSAM Managed Company) shall lapse on the date that is thirty (30) days after the Date of Termination notwithstanding any provisions to the contrary contained in the award agreements or plans governing such vested shares, LTIP Units (or similar units) or equity interests.
The amounts set forth in Section 6(c)(ii) and (iii) will be paid in a lump sum in cash within thirty (30) days after the Date of Termination; provided that if the 30-day period begins in one calendar year and ends in a second calendar year, such amounts shall be paid in the second calendar year by the last day of such 30-day period and in the case of a termination prior to and in connection with a Change in Control, the additional 0.75 times severance payment under Section 6(c)(ii) shall be paid upon the later of such date or the date of the Change of Control.
(d)    Additional Limitation.
(i)    Anything in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment, benefit or distribution by the Company, NRF, any NSAM Managed Company or any affiliate or successor thereto or any entity which effectuates a transaction described in Section 280G(b)(2)(A)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), and any regulations or Treasury guidance promulgated thereunder, to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise 

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and whether paid upon termination of employment or otherwise, calculated in a manner consistent with Section 280G of the Code and the applicable regulations thereunder (the “Compensatory Payments”), would be subject to the excise tax imposed by Section 4999 of the Code (or any successor provision), then the Compensatory Payments shall be reduced (but not below zero) so that the sum of all of the Compensatory Payments shall be $1.00 less than the amount at which Executive becomes subject to the excise tax imposed by Section 4999 of the Code (or any successor provision); provided that such reduction shall only occur if it would result in Executive receiving a higher After Tax Amount (as defined below) than Executive would receive if the Compensatory Payments were not subject to such reduction. In such event, the Compensatory Payments shall be reduced in the following order, in each case, in reverse chronological order beginning with the Compensatory Payments that are to be paid the furthest in time from consummation of the transaction that is subject to Section 280G of the Code:  (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits; provided that in the case of all the foregoing Compensatory Payments all amounts or payments that are not subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c) shall be reduced before any amounts that are subject to calculation under Treas. Reg. §1.280G-1, Q&A-24(b) or (c).
(ii)    For purposes of this Section 6(d), the “After Tax Amount” means the amount of the Compensatory Payments less all federal, state, and local income, excise and employment taxes imposed on Executive as a result of Executive’s receipt of the Compensatory Payments.  For purposes of determining the After Tax Amount, Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes at the highest marginal rates of individual taxation in each applicable state and locality, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.
(iii)    The determination as to whether a reduction in the Compensatory Payments shall be made pursuant to Section 6(d)(i) shall be made by a nationally recognized accounting firm selected by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and Executive within fifteen (15) business days of the Date of 

15

Termination, if applicable, or at such earlier time as is reasonably requested by the Company or Executive.  Any determination by the Accounting Firm shall be binding upon the Company and Executive.
7.    Prohibited Activities.
(a)    Non-Solicitation and Business Relationships.  Executive agrees that during Executive’s employment by the Company and for one (1) year following Executive’s Date of Termination (the “Non-Solicitation Period”), Executive shall not, directly or indirectly, solicit, induce, or attempt to solicit or induce any officer, director, employee, consultant, agent or joint venture partner of the Company or any of its affiliates (including, without limitation, NRF or any NSAM Managed Company or their subsidiaries) to terminate his, her or its employment or other relationship with the Company or any of its affiliates for the purpose of associating with any competitor of the Company or any of its affiliates, or otherwise encourage any such person to leave or sever his, her or its employment or other relationship with the Company or any of its affiliates for any other reason, or authorize the taking of such actions by any other person or entity, or assist or participate with any such person or entity in taking such action.  For purposes of clarity, Executive’s provision of services to NRF, any other NSAM Managed Entity and/or any of their subsidiaries during the Executive’s employment by the Company pursuant to the terms of a management agreement between the Company (or any of its subsidiaries) and such entity (or as a direct employee of NRF and/or its subsidiaries) shall not constitute a breach of this Section 7(a).
(b)    Non-Competition.  Executive acknowledges that the services to be rendered by Executive to the Company are of a special and unique character.  In consideration of Executive’s employment hereunder, Executive agrees that during Executive’s employment by the Company and for the one-year period following the termination of Executive’s employment hereunder by either party for any reason (other than (i) due to and upon expiration of the Term of this Agreement because the Company has provided written notice not to extend the Employment Period pursuant to Section 2(a), (ii) termination by Executive with Good Reason provided that a Change of Control shall not have occurred prior to the Date of Termination, or (iii) termination by the Company of Executive without Cause), Executive will not engage, directly or indirectly, whether as principal, agent, representative, consultant, employee, partner, stockholder, limited partner, other investor or otherwise (other than a passive investment of not more than five percent (5%) of the stock, equity or other ownership interest of any corporation, partnership or other entity), within the United States of America, in any business that competes directly with the principal businesses conducted by the Company as of the Executive’s Date of Termination.  For purposes of clarity, Executive’s provision of services to NRF, any other NSAM Managed Entity 

16

and/or any of their subsidiaries during the Executive’s employment by the Company pursuant to the terms of a management agreement between the Company (or any of its subsidiaries) and such entity (or as a direct employee of NRF and/or its subsidiaries) shall not constitute a breach of this Section 7(b) and, for purposes of the scope of this non-competition provision applying following a termination in connection with or within 12 months following a Change of Control, the principal businesses conducted by the Company shall be deemed to mean only such businesses conducted by the Company immediately prior to the Change of Control.
8.    Confidentiality.  Each party to this Agreement shall keep strictly confidential the terms of this Agreement, provided, that (i) either party to this Agreement may disclose the terms of this Agreement with the prior written consent of the other party, (ii) either party to this Agreement may disclose the terms of this Agreement to the extent necessary to comply with law or legal process, in which event the disclosing party shall notify the other party to this Agreement as promptly as practicable (and, if possible, prior to making such disclosure), (iii) either party to this Agreement may disclose the terms of this Agreement to outside counsel, underwriters and accountants and (iv) the Company may disclose the terms of this Agreement in public filings with the Securities and Exchange Commission or other regulatory agencies, without notice to Executive, to the extent that it believes such disclosure to be prudent, necessary or required by applicable law in connection with the operation of the business of the Company and shall have the right to file a copy of this Agreement with such regulating agencies, it being understood that if this Agreement is so disclosed or filed, Executive shall thereafter be released from his obligation in respect of this Section 8.
9.    No Waiver.  No failure or delay on the part of the Company or Executive in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy.  The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to the Company or Executive at law or in equity.  No waiver of or consent to any departure by either the Company or Executive from any provision of this Agreement shall be effective unless signed in writing by the party entitled to the benefit thereof.  No amendment, modification or termination of any provision of this Agreement shall be effective unless signed in writing by all parties hereto.  Any waiver of any provision of this Agreement, and any consent to any departure from the terms of any provision of this Agreement, shall be effective only in the specific instance and for the specific purpose for which made or given.
10.    Severability of Provisions.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such 

17

prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.  Moreover, if any one or more of the provisions contained in this Agreement shall be held to be excessively broad as to duration, activity or subject, such provision shall be construed by limiting and reducing it so as to be enforceable to the maximum extent allowed by applicable law.
11.    Non-Assignability; Binding Nature.  The rights and obligations of Executive under this Agreement are personal to Executive and may not be assigned or delegated to any other Person; provided, however, that nothing in this Agreement shall preclude Executive from designating any of Executive’s beneficiaries to receive any benefits payable hereunder upon Executive’s death, or Executive’s executors, administrators or other legal representatives from assigning any rights hereunder to the person or persons entitled thereto.  Upon Executive’s death, any payments or entitlements due to Executive hereunder or otherwise shall be paid or provided to Executive’s designated beneficiaries (or if there are no such beneficiaries, his estate).  Except as otherwise provided in Section 3(a), no rights or obligations of the Company under this Agreement may be assigned or transferred by the Company except that such rights and obligations may be assigned or transferred pursuant to a merger, consolidation or other combination in which the Company is not the continuing entity, or a sale or liquidation of all or substantially all of the business and assets of the Company; provided that the assignee or transferee is the successor to all or substantially all of the business and assets of the Company and such assignee or transferee expressly assumes the liabilities, obligations and duties of the Company as set forth in this Agreement.  This Agreement shall be binding upon and inure to the benefit of the Company and Executive and their respective successors, heirs (in the case of Executive) and assigns.
12.    Notices.  Any notice given hereunder shall be in writing and shall be deemed to have been given when delivered by messenger or courier service (against appropriate receipt), or mailed by registered or certified mail (return receipt requested), addressed as follows:
		
	If to the Company:
	NorthStar Asset Management Group Inc.   
399 Park Avenue, 18th Floor   
New York, NY 10022   
Attention:  General Counsel

		
	If to Executive:
	David T. Hamamoto   
c/o NorthStar Asset Management Group Inc.   
399 Park Avenue, 18th Floor   
New York, NY 10022

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or at such other address as shall be indicated to the parties hereto in writing.  Notice of change of address shall be effective only upon receipt.
13.    Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York applicable to contracts made and to be entirely performed within such State.
14.    Dispute Resolution.
(a)    Subject to the provisions of Section 14(b), any dispute, controversy or claim arising between the parties relating to this Agreement, or otherwise relating in any way to Executive’s employment by or interest in the Company or any of its affiliate (whether such dispute arises under any federal, state or local statute or regulation, or at common law), shall be resolved by final and binding arbitration in New York, New York, before a single arbitrator, selected by the American Arbitration Association in accordance with its rules pertaining at the time the dispute arises.  In such arbitration proceedings, the arbitrator shall have the discretion, to be exercised in accordance with applicable law, to allocate among the parties the arbitrator’s fees, tribunal and other administrative costs.  If Executive prevails on at least one material issue in dispute, the Company shall reimburse Executive for the reasonable fees and costs of Executive’s counsel (and the arbitrator shall be requested to rule on whether Executive has so prevailed).  The award of the arbitrator may be confirmed before and entered as a judgment of any court having jurisdiction over the parties.
(b)    The provisions of Section 14(a) shall not apply with respect to any application made by the Company for injunctive relief under this Agreement.
15.    Section 409A.
(a)Anything in this Agreement to the contrary notwithstanding, if at the time of Executive’s separation from service within the meaning of Section 409A of the Code, the Company determines that Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that Executive becomes entitled to under this Agreement on account of Executive’s separation from service would be considered deferred compensation otherwise subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Executive’s separation from service, or (B) Executive’s death.  If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering 

19

amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance with their original schedule.  Any such delayed cash payment shall earn interest at an annual rate equal to the applicable federal short-term rate published by the Internal Revenue Service for the month in which the date of separation from service occurs, from such date of separation from service until the payment.
(b)All in-kind benefits provided and expenses eligible for reimbursement under this Agreement shall be provided by the Company or incurred by Executive during the time periods set forth in this Agreement.  All reimbursements shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the taxable year following the taxable year in which the expense was incurred.  The amount of in-kind benefits provided or reimbursable expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement in any other taxable year (except for any lifetime or other aggregate limitation applicable to medical expenses).  Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.
(c)To the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon Executive’s termination of employment, then such payments or benefits shall be payable only upon Executive’s “separation from service.”  The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A‐1(h).
(d)The parties intend that this Agreement will be administered in accordance with Section 409A of the Code.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder comply with Section 409A of the Code.  Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes of Treasury Regulation Section 1.409A‐2(b)(2).  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.
(e)The Company makes no representation or warranty and shall have no liability to Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section. For avoidance of doubt, the foregoing shall 

20

not limit the Company’s liability to Executive in the event that Executive is subject to taxes, interest or penalties under Section 409A of the Code as a result of the Company’s breach of this Agreement.
16.    Headings.  The paragraph headings used or contained in this Agreement are for convenience of reference only and shall not affect the construction of this Agreement.
17.    Entire Agreement.  This Agreement and any agreements executed contemporaneously herewith constitute the entire agreement between the parties with respect to the matters set forth herein, and there are no promises or undertakings with respect thereto relative to the subject matter hereof not expressly set forth or referred to herein or therein.  This Agreement expressly supersedes and replaces as of the Effective Date the Executive Employment and Non-Competition Agreement by and between NRF and Executive, dated as of October 4, 2007.  For the avoidance of doubt, Executive’s outstanding equity, bonus and/or LTIP awards and his indemnification agreement with NRF or any affiliate remain in full force and effect.
18.    Execution in Counterparts.  This Agreement may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first set forth above.

/s/ David T. Hamamoto     
David T. Hamamoto
NORTHSTAR ASSET MANAGEMENT GROUP INC.
By:  /s/ Albert Tylis    
Name:  Albert Tylis
Title:  President
   

NORTHSTAR REALTY FINANCE CORP.
By:  /s/ Albert Tylis    
Name:  Albert Tylis
Title:  President

Exhibit A

This General Release of Claims (this “Agreement”) is executed as of the date listed below by David T. Hamamoto (“Executive”) and NorthStar Asset Management Group Inc. (the “Company”).

In consideration of the promises set forth in the Employment Agreement between Executive and the Company, effective as of the spin-off of the Company from NorthStar Realty Finance Corp. (“NRF”) (the “Employment Agreement”), the Executive and the Company agree as follows:

1.Executive’s General Release and Waiver of Claims.
(a)    Release.  In consideration of the payments and benefits provided to Executive under the Employment Agreement, Executive and each of the Executive’s respective heirs, executors, administrators, representatives, agents, successors and assigns (collectively, the “Executive Releasors”) hereby irrevocably and unconditionally release and forever discharge the Company, NRF, any NSAM Managed Company (as defined in the Employment Agreement) and their respective subsidiaries, affiliates, predecessors and successors (collectively, the “Company Group”) and their respective officers, employees, directors, shareholders and agents (“Company Releasees”) from any and all claims, actions, causes of action, rights, judgments, obligations, damages, demands, accountings or liabilities of whatever kind or character (collectively, “Claims”), including, without limitation, any Claims under any federal, state, local or foreign law, regardless of whether based on any statute or the common law, including without limitation Claims of breach of contract, Claims based on tortious conduct, statutory or common law employment discrimination Claims, Claims for payment of salary or wages and Claims for attorney’s fees, regardless of whether known or unknown to Executive or any of the other Executive Releasors, that any of the Executive Releasors may have, or in the future may possess, arising out (i) of Executive’s employment relationship with and service as an employee, officer or director of any member of the Company Group, and the termination of such relationship or service and (ii) any other event, condition, circumstance or obligation that occurred, existed or arose on or prior to the date hereof; provided, however, that notwithstanding anything else herein to the contrary, Executive is not releasing any Claims with respect to:  (i) the payments and entitlements due to him under Section 6 of the Employment Agreement, (ii) any rights pursuant to any bonus, stock, equity-based compensation or LTIP or partnership awards awarded or granted by any member of the Company Group, (iii) his right to be reimbursed unreimbursed business expenses incurred through his termination date, (iv) his rights to be indemnified and covered under directors’ and officers’ liability insurance policies as set forth in Section 2.7 of the 

Employment Agreement as well as any indemnification agreement entered into between Executive and any member of the Company Group, (v) his rights to be indemnified pursuant to the bylaws or other corporate governance documents of any member of the Company Group or to be covered under any applicable directors’ and officers’ liability insurance policies, or (vi) his rights as a shareholder of any member of the Company Group.
(b)    Specific Release of ADEA Claims.  In further consideration of the payments and benefits provided to Executive under the Employment Agreement, Executive, on his behalf and on behalf of the Executive Releasors, hereby unconditionally releases and forever discharges the Company Releasees from any and all Claims that the Executive or any Executive Releasor may have as of the date the Executive signs this Agreement arising under the Federal Age Discrimination in Employment Act of 1967, as amended, and the applicable rules and regulations promulgated thereunder (“ADEA”). By signing this Agreement, Executive hereby acknowledges and confirms the following: (i) Executive was advised by the Company in connection with his termination to consult with an attorney of his choice prior to signing this Agreement and to have such attorney explain to Executive the terms of this Agreement, including, without limitation, the terms relating to Executive’s release of claims arising under ADEA, and Executive has in fact consulted with an attorney or chosen not to do so; (ii) Executive was given a period of 21 days following his termination date to consider the terms of this Agreement and to consult with an attorney of his choosing with respect thereto; and (iii) Executive knowingly and voluntarily accepts the terms of this Agreement.  Executive also understands that he has seven (7) days following the date on which he signs this Agreement within which to revoke the release contained in this paragraph, by providing the Company a written notice of his revocation of the release and waiver contained in this paragraph.
(c)    No Assignment. The Executive represents and warrants that he has not assigned any of the Claims being released by Executive under this Agreement.
2.    Company’s Release of Claims and Waiver of Known Claims.
(a)    Release.  In consideration of Executive’s release of claims herein and other good and valuation consideration, the Company, on behalf itself and any Company Releasees that it has the capacity to bind, hereby irrevocably and unconditionally release and forever discharge Executive and each of Executive’s respective heirs, executors, administrators, representatives, agents, successors and assigns from any and all Claims, including, without limitation, any Claims under any federal, state, local or foreign law that the Company and/or any Company Releasee may have, or in the future may possess arising out (i) of the Executive’s employment relationship with and service as an employee, officer or director of the Company and any other member of the Company Group, and the termination of such relationship or 

A-2

service and (ii) any event, condition, circumstance or obligation that occurred, existed or arose on or prior to the date hereof; provided that, in each case, such claim was known by a member (other than Executive) of the board of directors or similar governing body of the Company as of the date of Executive’s termination of employment.  Notwithstanding the foregoing, nothing in this Agreement shall be construed to affect Executive’s continued obligations under the Employment Agreement or any other agreement between Executive and the Company or any Company Releasee that was executed contemporaneous with or after the execution of the Employment Agreement.
(b)    No Assignment. The Company, on its behalf and that of any other Company Releasee that it has the capacity to bind, represents and warrants that it (or they) has not assigned any of the Claims being released by the Company or any Company Releasee under this Agreement.
1.    Proceedings.  As of the date he executes this Agreement, Executive acknowledges that he has not filed, and agrees not to initiate or cause to be initiated on his behalf, any complaint, charge, claim or proceeding against the Company Releasees before any local, state or federal agency, court or other body, other than with respect to the obligations of the Company to the Executive under the Employment Agreement or in respect of any other matter described in the proviso to Section 1(a) (each, individually, a “Proceeding”) and agrees not to participate voluntarily in any Proceeding; provided that the foregoing shall not affect Executive’s right to file a charge with the Equal Employment Opportunity Commission or any state fair employment practices agency, except that notwithstanding this proviso Executive waives any right he may have to benefit in any manner from any relief (whether monetary or otherwise) arising out of any Proceeding.  As of the date it executes this Agreement, the Company acknowledges that it has not filed, and is not aware of any other member of the Company Group or any Company Releasee filing, and agrees not to initiate or cause to be initiated on its or any Company Releasee’s behalf, any complaint, charge, claim or proceeding against the Executive or his heirs, executors, administrators, representatives, agents, successors and assigns before any local, state or federal agency, court or other body, which has been released by the Company or any other Company Releasee under Section 2 hereof and agrees not to participate voluntarily in any such proceeding and waives any relief (whether monetary or otherwise) arising out of any such proceeding.
2.    Remedies.  In the event Executive initiates or voluntarily participates in any Proceeding following his receipt of written notice from the Company and a failure to cease such participation within 30 days following receipt of such notice, or if he revokes the ADEA release contained in Paragraph 1(b) of this Agreement within the seven-day period provided under 

A-3

Paragraph 1(b), the Company may, in addition to any other remedies it may have, reclaim any amounts paid to him under the termination provisions of the Employment Agreement or terminate any benefits or payments that are subsequently due under the Employment Agreement, other than benefits or payments that would be due in the absence of this Agreement.  Executive understands that by entering into this Agreement he will be limiting the availability of certain remedies that he may have against the Company and any other member of the Company Group and limiting also his ability to pursue certain claims against the Company or any other member of the Company Group.
3.    Effectiveness.  For avoidance of doubt, this Agreement shall only be effective if the Company executes and delivers an executed copy of this Agreement to Executive within 30 days following the later of the date Executive executes and delivers an executed copy of this Agreement to the Company and the termination of Executive’s employment with the Company.
4.    Severability Clause.  In the event any provision or part of this Agreement is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Agreement, will be inoperative.
5.    Nonadmission.  Nothing contained in this Agreement will be deemed or construed as an admission of wrongdoing or liability on the part of the Company or Executive.
6.    Governing Law.  All matters affecting this Agreement, including the validity thereof, are to be governed by, and interpreted and construed in accordance with, the laws of the State of New York applicable to contracts made and to be entirely performed within such State.
7.    Notices.  All notices or communications hereunder shall be in writing, addressed as provided in Section 12 of the Employment Agreement.
EXECUTIVE ACKNOWLEDGES THAT HE HAS READ THIS AGREEMENT AND THAT HE FULLY KNOWS, UNDERSTANDS AND APPRECIATES ITS CONTENTS, AND THAT HE HEREBY EXECUTES THE SAME AND MAKES THIS AGREEMENT AND THE RELEASE AND AGREEMENTS PROVIDED FOR HEREIN VOLUNTARILY AND OF HIS OWN FREE WILL.

[Remainder of page intentionally left blank]

A-4

IN WITNESS WHEREOF, Executive and the Company have executed this Agreement on the date first set forth below for such party.

EXECUTIVE   

___________________________________   
David T. Hamamoto   
   
Date of Execution:____________________

    
NORTHSTAR ASSET MANAGEMENT GROUP INC.

       By:      
Name:
Title:     

Date of Execution:____________________

A-5

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