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<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>PURSUANT TO SECTION 13 OR 15(d) OF THE</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>SECURITIES EXCHANGE ACT OF 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Date of Report (Date of earliest event reported):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>March 28, 2014</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>NORTHSTAR REALTY FINANCE CORP.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Exact Name of Registrant as Specified in
Charter)</P>

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    <TD STYLE="width: 32%; text-align: center"><font style="font-size: 10pt"><b>Maryland</b></font></td>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</td>
    <TD STYLE="width: 32%; text-align: center"><font style="font-size: 10pt"><b>001-32330</b></font></td>
    <TD STYLE="width: 2%; text-align: center">&nbsp;</td>
    <TD STYLE="width: 32%; text-align: center"><font style="font-size: 10pt"><b>11-3707493</b></font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: center"><font style="font-size: 10pt">(State or Other</font></td>
    <TD STYLE="text-align: center">&nbsp;</td>
    <TD STYLE="text-align: center"><font style="font-size: 10pt">(Commission</font></td>
    <TD STYLE="text-align: center">&nbsp;</td>
    <TD STYLE="text-align: center"><font style="font-size: 10pt">(IRS Employer</font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: center"><font style="font-size: 10pt">Jurisdiction of</font></td>
    <TD STYLE="text-align: center">&nbsp;</td>
    <TD STYLE="text-align: center"><font style="font-size: 10pt">File Number)</font></td>
    <TD STYLE="text-align: center">&nbsp;</td>
    <TD STYLE="text-align: center"><font style="font-size: 10pt">Identification No.)</font></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: center"><font style="font-size: 10pt">Incorporation)</font></td>
    <TD STYLE="text-align: center">&nbsp;</td>
    <TD STYLE="text-align: center">&nbsp;</td>
    <TD STYLE="text-align: center">&nbsp;</td>
    <TD STYLE="text-align: center">&nbsp;</td></tr>
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    <TD STYLE="vertical-align: top; width: 62%; text-align: center"><font style="font-size: 10pt"><b>399 Park Avenue</b></font></td>
    <TD STYLE="vertical-align: bottom; width: 2%">&nbsp;</td>
    <TD STYLE="vertical-align: bottom; width: 36%; text-align: center">&nbsp;</td></tr>
<tr>
    <TD STYLE="vertical-align: top; text-align: center"><font style="font-size: 10pt"><b>18<sup>th</sup> Floor</b></font></td>
    <TD STYLE="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</td></tr>
<tr>
    <TD STYLE="vertical-align: top; text-align: center"><font style="font-size: 10pt"><b>New York, New York</b></font></td>
    <TD STYLE="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="vertical-align: bottom; text-align: center"><font style="font-size: 10pt"><b>10022</b></font></td></tr>
<tr>
    <TD STYLE="vertical-align: top; text-align: center"><font style="font-size: 10pt">(Address of Principal Executive offices) </font></td>
    <TD STYLE="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="vertical-align: top; text-align: center"><font style="font-size: 10pt">(Zip Code) </font></td></tr>
</table>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">Registrant&rsquo;s telephone number, including
area code:<B> (212) 547-2600</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>N/A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">(Former name or former address, if changed
since last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions
A.2.):</P>

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<TD STYLE="width: 0%"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0%"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0%"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0%"></TD><TD STYLE="width: 0.35in"><FONT STYLE="font: 10pt Wingdings">&uml;</FONT></TD><TD><FONT STYLE="font-size: 10pt">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD></TR></TABLE>

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<TD STYLE="width: 0in"></TD><TD STYLE="width: 1in; text-align: left">Item 5.02</TD><TD STYLE="text-align: left">Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</TD>
</TR></TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-indent: -1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On March 28, 2014, NorthStar Asset Management
Group Inc. (&ldquo;NSAM&rdquo;), a subsidiary of NorthStar Realty Finance Corp. (the &ldquo;Company&rdquo;), adopted
the NorthStar Asset Management Group Inc. 2014 Omnibus Stock Incentive Plan (the &ldquo;NSAM Stock Plan&rdquo;) and the NorthStar
Asset Management Group Inc. Executive Incentive Bonus Plan (the &ldquo;NSAM Incentive Plan&rdquo;) in connection with the anticipated
spin-off of NSAM from the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>NSAM 2014 Omnibus Stock Incentive Plan</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The NSAM Stock Plan is intended to be the
initial omnibus plan pursuant to which NSAM will grant equity awards and certain performance-based cash awards. NSAM may grant
stock options, stock appreciation rights, restricted stock awards, restricted stock units, dividend equivalent rights, other types
of equity awards, and cash awards pursuant to the NSAM Stock Plan, including awards that are intended to qualify as &ldquo;performance-based
compensation&rdquo; under Section 162(m) of the Internal Revenue Code. Awards under the NSAM Stock Plan may be made to officers,
employees, directors (including non-employee directors), consultants and advisors of NSAM or any parent or subsidiary of NSAM who
provides services to NSAM. The term of the NSAM Stock Plan will expire on March 31, 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Initially, 45,000,000 shares of common stock
of NSAM have been reserved for the issuance of awards under the NSAM Stock Plan; provided that this number will automatically increase
each January 1, beginning on January 1, 2015, by two percent of the outstanding number of shares of common stock of NSAM on the
immediately preceding December 31. The number of shares of common stock of NSAM reserved under the NSAM Stock Plan was based on
the aggregate number of outstanding shares of the Company&rsquo;s common stock. In the event of a reverse stock split or other
similar event affecting the Company&rsquo;s common stock prior to the spin-off, the number of shares of common stock of NSAM reserved
under the NSAM Stock Plan will be proportionally adjusted.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Prior to the completion of the anticipated
spin-off of NSAM from the Company, the Compensation Committee of the Board of Directors of the Company will administer the NSAM
Stock Plan. Following the completion of the spin off, the Compensation Committee of the board of directors of NSAM will administer
the NSAM Stock Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>NSAM Executive Incentive Bonus Plan</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The NSAM Incentive Plan establishes the
general parameters of NSAM&rsquo;s intended incentive bonus program for its executive officers, and is similar in structure to
the existing executive bonus plan of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Under the NSAM Incentive Plan, for each
plan year, the administrator will establish two bonus pools (an annual cash bonus pool and a long-term bonus pool), award a bonus
pool percentage or percentages to each participant with respect to such bonus pools (i.e., the percentage of such pool that the
participant will be eligible to receive as either an annual bonus or a long-term bonus, if applicable criteria are achieved) and
establish performance goals, vesting requirements and other terms and conditions applicable to such bonuses. Bonuses under the
NSAM Incentive Plan will also constitute awards under the NSAM Stock Plan and are</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">intended to be eligible to qualify as &ldquo;performance-based
compensation&rdquo; under Section&nbsp;162(m) of the Internal Revenue Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If awarded an annual bonus pool percentage
by the administrator for a plan year, a participant will be eligible to receive an annual bonus with respect to such plan year.
A participant&rsquo;s maximum annual bonus will equal the product of the participant&rsquo;s annual bonus pool percentage and the
annual cash bonus pool. The actual amount of annual bonuses will be tied to the achievement of performance goals established by
the administrator. The administrator shall determine the relevant performance goals and the relative weighting of such goals, generally
within the first 90 days of the plan year. The relative weighing and payout ranges for annual bonuses will be set forth in a participant&rsquo;s
bonus award notice for the year. Within 60 days following the end of a plan year, the administrator will certify whether and to
what extent the applicable performance goals have been met and determine the actual amount of the annual bonuses payable with respect
to such year. A participant will be eligible to receive an annual bonus if the participant was employed through December 31 of
the plan year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If awarded a long-term bonus pool percentage,
a participant will be eligible to receive a long-term bonus with respect to such plan year. Long-term bonuses may be paid in cash
and/or in the form of equity interests in NSAM, the Company or one of their subsidiaries, as determined by the administrator. The
vesting, payment and/or the amount of a participant&rsquo;s long-term bonus for a plan year may be tied to the achievement of performance
goals for the relevant long-term bonus performance period, a participant&rsquo;s continued employment with NSAM for such period
and/or such other criteria as may be established by the administrator and set forth in participants&rsquo; bonus award notices
for such plan year. Performance goals for each long-term bonus performance period shall be determined by the administrator generally
within 90 days after the beginning of the plan year. The administrator may establish ranges within such performance goals that
correspond to the payout of different fixed percentages of the maximum long-term bonus that a participant is eligible to receive.
Equity awards granted with respect to long-term bonuses may also be subject to additional no-sale restrictions as determined by
the administrator.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">If a participant&rsquo;s employment is terminated
by NSAM without cause (as defined in the participant&rsquo;s employment or other service agreement with NSAM), by the participant
with good reason (as defined in the participant&rsquo;s employment or other service agreement with NSAM), or terminates due to
the participant&rsquo;s death or disability (a &ldquo;Qualifying Termination&rdquo;) the participant will remain eligible to receive
a pro-rated annual bonus if and to the extent that the applicable performance goals for the plan year are achieved. In the event
of a change of control (which under the Incentive Plan includes a change of control of the Company or of NSAM), participants will
be eligible to receive an annual bonus assuming all performance goals are achieved, but calculated based on a bonus pool that is
adjusted to reflect the shortened plan year. The terms and conditions relating to treatment of long-term bonuses upon a participant&rsquo;s
termination of employment and change of control will be set forth in the participant&rsquo;s bonus award notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The NSAM Incentive Plan also amends awards
made under the Company&rsquo;s Executive Incentive Bonus Plan to provide that, upon a change of control (as defined in such plan),
certain no-sale restrictions applicable to long-term bonuses previously awarded under such plan will expire and the pro-rata percentage
of performance-based restricted stock units that will vest will equal the greater of (i) the pro-rata portion of the performance
period that has elapsed (as</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">currently provided in such plan) or (ii) the amount that would have been earned if the Company&rsquo;s
stock price at the end of the applicable performance period equaled the Company&rsquo;s stock price as of the date of the change
of control.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Prior to the completion of the anticipated
spin-off of NSAM from the Company, the Compensation Committee of the Board of Directors of the Company will administer the NSAM
Incentive Plan. Following the completion of the spin off, the Compensation Committee of the board of directors of NSAM
will administer the NSAM Incentive Plan.</P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">SIGNATURES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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    <TD>&nbsp;</td>
    <TD COLSPAN="2"><FONT STYLE="text-transform: uppercase"><B>Northstar realty finance corp.</B></FONT></td>
    <TD>&nbsp;</TD></tr>
<tr style="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</td>
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    <TD STYLE="width: 38%">&nbsp;</td>
    <TD STYLE="width: 10%">&nbsp;</TD></tr>
<tr style="vertical-align: top">
    <TD>Date:&nbsp;&nbsp;April 3, 2014</td>
    <TD>By:&nbsp;</td>
    <TD STYLE="border-bottom: Black 1pt solid">/s/ Ronald J. Lieberman</td>
    <TD>&nbsp;</TD></tr>
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    <TD STYLE="width: 50%">&nbsp;</td>
    <TD STYLE="width: 3%">&nbsp;</td>
    <TD STYLE="width: 47%">Name: Ronald J. Lieberman</td></tr>
<tr style="vertical-align: top">
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>Title: Executive Vice President, General Counsel and Secretary</td></tr>
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[{"type": "8-K", "sequence": "1", "filename": "t1400596_8k.htm", "description": "FORM 8-K", "secsgml_size_bytes": 27663}]
{"company-data": {"conformed-name": "NORTHSTAR REALTY FINANCE CORP.", "cik": "0001273801", "assigned-sic": "6798", "irs-number": "000000000", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-32330", "film-number": "14743217"}, "business-address": {"street1": "399 PARK AVENUE,", "street2": "18TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022", "phone": "212-547-2640"}, "mail-address": {"street1": "399 PARK AVENUE,", "street2": "18TH FLOOR", "city": "NEW YORK", "state": "NY", "zip": "10022"}, "former-company": {"former-conformed-name": "NORTHSTAR REALTY", "date-changed": "20031218"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
March 28, 2014
NORTHSTAR REALTY FINANCE CORP.
(Exact Name of Registrant as Specified in
Charter)
Maryland
001-32330
11-3707493
(State or Other
(Commission
(IRS Employer
Jurisdiction of
File Number)
Identification No.)
Incorporation)
399 Park Avenue
18
th
Floor
New York, New York
10022
(Address of Principal Executive offices)
(Zip Code)
Registrant's telephone number, including
area code:
(212) 547-2600
N/A
(Former name or former address, if changed
since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions
A.2.):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02
Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On March 28, 2014, NorthStar Asset Management
Group Inc. ("NSAM"), a subsidiary of NorthStar Realty Finance Corp. (the "Company"), adopted
the NorthStar Asset Management Group Inc. 2014 Omnibus Stock Incentive Plan (the "NSAM Stock Plan") and the NorthStar
Asset Management Group Inc. Executive Incentive Bonus Plan (the "NSAM Incentive Plan") in connection with the anticipated
spin-off of NSAM from the Company.
NSAM 2014 Omnibus Stock Incentive Plan
The NSAM Stock Plan is intended to be the
initial omnibus plan pursuant to which NSAM will grant equity awards and certain performance-based cash awards. NSAM may grant
stock options, stock appreciation rights, restricted stock awards, restricted stock units, dividend equivalent rights, other types
of equity awards, and cash awards pursuant to the NSAM Stock Plan, including awards that are intended to qualify as "performance-based
compensation" under Section 162(m) of the Internal Revenue Code. Awards under the NSAM Stock Plan may be made to officers,
employees, directors (including non-employee directors), consultants and advisors of NSAM or any parent or subsidiary of NSAM who
provides services to NSAM. The term of the NSAM Stock Plan will expire on March 31, 2024.
Initially, 45,000,000 shares of common stock
of NSAM have been reserved for the issuance of awards under the NSAM Stock Plan; provided that this number will automatically increase
each January 1, beginning on January 1, 2015, by two percent of the outstanding number of shares of common stock of NSAM on the
immediately preceding December 31. The number of shares of common stock of NSAM reserved under the NSAM Stock Plan was based on
the aggregate number of outstanding shares of the Company's common stock. In the event of a reverse stock split or other
similar event affecting the Company's common stock prior to the spin-off, the number of shares of common stock of NSAM reserved
under the NSAM Stock Plan will be proportionally adjusted.
Prior to the completion of the anticipated
spin-off of NSAM from the Company, the Compensation Committee of the Board of Directors of the Company will administer the NSAM
Stock Plan. Following the completion of the spin off, the Compensation Committee of the board of directors of NSAM will administer
the NSAM Stock Plan.
NSAM Executive Incentive Bonus Plan
The NSAM Incentive Plan establishes the
general parameters of NSAM's intended incentive bonus program for its executive officers, and is similar in structure to
the existing executive bonus plan of the Company.
Under the NSAM Incentive Plan, for each
plan year, the administrator will establish two bonus pools (an annual cash bonus pool and a long-term bonus pool), award a bonus
pool percentage or percentages to each participant with respect to such bonus pools (i.e., the percentage of such pool that the
participant will be eligible to receive as either an annual bonus or a long-term bonus, if applicable criteria are achieved) and
establish performance goals, vesting requirements and other terms and conditions applicable to such bonuses. Bonuses under the
NSAM Incentive Plan will also constitute awards under the NSAM Stock Plan and are
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intended to be eligible to qualify as "performance-based
compensation" under Section 162(m) of the Internal Revenue Code.
If awarded an annual bonus pool percentage
by the administrator for a plan year, a participant will be eligible to receive an annual bonus with respect to such plan year.
A participant's maximum annual bonus will equal the product of the participant's annual bonus pool percentage and the
annual cash bonus pool. The actual amount of annual bonuses will be tied to the achievement of performance goals established by
the administrator. The administrator shall determine the relevant performance goals and the relative weighting of such goals, generally
within the first 90 days of the plan year. The relative weighing and payout ranges for annual bonuses will be set forth in a participant's
bonus award notice for the year. Within 60 days following the end of a plan year, the administrator will certify whether and to
what extent the applicable performance goals have been met and determine the actual amount of the annual bonuses payable with respect
to such year. A participant will be eligible to receive an annual bonus if the participant was employed through December 31 of
the plan year.
If awarded a long-term bonus pool percentage,
a participant will be eligible to receive a long-term bonus with respect to such plan year. Long-term bonuses may be paid in cash
and/or in the form of equity interests in NSAM, the Company or one of their subsidiaries, as determined by the administrator. The
vesting, payment and/or the amount of a participant's long-term bonus for a plan year may be tied to the achievement of performance
goals for the relevant long-term bonus performance period, a participant's continued employment with NSAM for such period
and/or such other criteria as may be established by the administrator and set forth in participants' bonus award notices
for such plan year. Performance goals for each long-term bonus performance period shall be determined by the administrator generally
within 90 days after the beginning of the plan year. The administrator may establish ranges within such performance goals that
correspond to the payout of different fixed percentages of the maximum long-term bonus that a participant is eligible to receive.
Equity awards granted with respect to long-term bonuses may also be subject to additional no-sale restrictions as determined by
the administrator.
If a participant's employment is terminated
by NSAM without cause (as defined in the participant's employment or other service agreement with NSAM), by the participant
with good reason (as defined in the participant's employment or other service agreement with NSAM), or terminates due to
the participant's death or disability (a "Qualifying Termination") the participant will remain eligible to receive
a pro-rated annual bonus if and to the extent that the applicable performance goals for the plan year are achieved. In the event
of a change of control (which under the Incentive Plan includes a change of control of the Company or of NSAM), participants will
be eligible to receive an annual bonus assuming all performance goals are achieved, but calculated based on a bonus pool that is
adjusted to reflect the shortened plan year. The terms and conditions relating to treatment of long-term bonuses upon a participant's
termination of employment and change of control will be set forth in the participant's bonus award notice.
The NSAM Incentive Plan also amends awards
made under the Company's Executive Incentive Bonus Plan to provide that, upon a change of control (as defined in such plan),
certain no-sale restrictions applicable to long-term bonuses previously awarded under such plan will expire and the pro-rata percentage
of performance-based restricted stock units that will vest will equal the greater of (i) the pro-rata portion of the performance
period that has elapsed (as
3
currently provided in such plan) or (ii) the amount that would have been earned if the Company's
stock price at the end of the applicable performance period equaled the Company's stock price as of the date of the change
of control.
Prior to the completion of the anticipated
spin-off of NSAM from the Company, the Compensation Committee of the Board of Directors of the Company will administer the NSAM
Incentive Plan. Following the completion of the spin off, the Compensation Committee of the board of directors of NSAM
will administer the NSAM Incentive Plan.
4
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
Northstar realty finance corp.
Date:  April 3, 2014
By:
/s/ Ronald J. Lieberman
Name: Ronald J. Lieberman
Title: Executive Vice President, General Counsel and Secretary
5