Document:

uBid.com
      Holdings, Inc.

    

    

    

    September
      20, 2007

    

    Via
      Hand Delivery 

    Personal
      and Confidential

    

    Robert
      H.
      Tomlinson, Jr.

    c/o
      uBid.com Holdings, Inc.

    8725
      W.
      Higgins Road, Suite 900

    Chicago,
      IL 60631

    

    Re:       Separation
      Agreement and Release

    

    Dear
      Mr.
      Tomlinson:

    

    As
      you
      know, your employment with uBid.com Holdings, Inc. (“the Company”) ended on
      September 20, 2007. The purpose of this Separation Agreement and Release letter
      (“Agreement”) is to set forth the specific separation pay that the Company will
      provide you in exchange for your agreement to the terms and conditions of this
      Agreement. 

    

    By
      your
      signature below, you agree to the following terms and conditions:

    

    1.       End
      of
      Employment.
      Your
      employment with the Company ended effective September 20, 2007. Upon your
      receipt of your final paycheck, which included payment for services through
      September 20, 2007, you will have received all compensation owed to you by
      virtue of your employment with the Company or termination thereof. You are
      not
      eligible for any other payments or benefits except for those expressly described
      in this Agreement, provided that you sign and do not rescind this Agreement.
      The
      Company will send information to you regarding your COBRA rights under separate
      cover. 

    

    2.       Separation
      Pay.
      Specifically in consideration of your signing this Agreement and subject to
      the
      limitations, obligations, and other provisions contained in this Agreement,
      the
      Company agrees to pay you $95,489.11, which is the equivalent of your regular
      compensation through December 29, 2007, less applicable withholding, to be
      paid
      in a lump sum within ten business days after the expiration of the rescission
      period described in this Agreement. 

    

    3.       Release
      of Claims.
      Specifically in consideration of the separation pay described in Section 2,
      to
      which you would not otherwise be entitled, by signing this Agreement you, for
      yourself and anyone who has or obtains legal rights or claims through you,
      agree
      to the following:

    

    a.       You
      hereby do release, agree not to sue, and forever discharge the Company of and
      from any and all manner of claims, demands, actions, causes of action,
      administrative claims, liability, damages, claims for punitive or liquidated
      damages, claims for attorney’s fees, costs and disbursements, individual or
      class action claims, or demands of any kind whatsoever, you have or might have
      against them or any of them, whether known or unknown, in law or equity,
      contract or tort, arising out of or in connection with your employment with
      the
      Company, or the termination of that employment, or otherwise, and however
      originating or existing, from the beginning of time through the date of your
      signing this Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Page
      2

     

    b.       This
      release includes, without limiting the generality of the foregoing, any claims
      you may have for wages, bonuses, commissions, penalties, compensation, deferred
      compensation, vacation pay, other paid time off, separation benefits,
      defamation, invasion of privacy, negligence, emotional distress, improper
      discharge (based on contract, common law, or statute, including any federal,
      state or local statute or ordinance prohibiting discrimination or retaliation
      in
      employment), violation of the United States Constitution, the Illinois
      Constitution, the Illinois
      Human Rights Act, Ill. Rev. Stat. Ch. 775, the Illinois Equal Wage Act, Ill.
      Rev. Stat. Ch. 820, the Illinois Smokers’ Rights Law, Ch. 820, Title
      VII
      of the Civil Rights Act, 42 U.S.C. § 2000e et seq.,
      the
      Age Discrimination in Employment Act, 29 U.S.C. §§ 621, et seq., the Americans
      with Disabilities Act, 42 U.S.C. § 12101 et seq.,
      the
      Employee Retirement Income Security Act of 1976, 29 U.S.C. § 1001 et seq.,
      the
      Family and Medical Leave Act, 29 U.S.C. § 2601 et seq.,
      any
      claim arising under Illinois Statutes, any claim arising under Chicago or other
      local ordinances, including, but not limited to, the Chicago Human Rights
      Ordinance, and any claim for retaliation, harassment or discrimination based
      on
race,
      color, religion, sex, pregnancy, national origin, ancestry, citizenship status,
      age, marital status, gender
      identity, sexual orientation, parental status, source of income status,
military
      discharge status, military status, arrest record, or physical, mental or
      perceived handicap or disability,
      or
      other protected class, or sexual or other harassment. You hereby waive any
      and
      all relief not provided for in this Agreement. You understand and agree that,
      by
      signing this Agreement, you waive and release any past, present, or future
      claim
      to employment with the Company.

    

    c.       If
      you file, or have filed on your behalf, a charge, complaint, or action, you
      agree that the payment described above in Section 2 is in complete satisfaction
      of any and all claims in connection with such charge, complaint, or action
      and
      you
      waive,
      and agree not to take, any award of money or other damages from such charge,
      complaint, or action. 

    

    d.       You
      are not, by signing this Agreement, releasing or waiving (1) any vested interest
      you may have in any 401(k) or profit sharing plan by virtue of your employment
      with the Company, (2) any rights or claims that may arise after the Agreement
      is
      signed, (3) the post-employment payment specifically promised to you under
      Section 2 of this Agreement, (4) the right to institute legal action for the
      purpose of enforcing the provisions of this Agreement, (5) any rights you have
      under workers compensation laws, (6) any rights you have under state
      unemployment compensation benefits laws, or (7) the right to file a charge
      of
      discrimination with a governmental agency, although, as noted above, you agree
      that you will not be able to recover any award of money or damages if you file
      such a charge or have a charge filed on your behalf.

     

    e.       The
      Company, as used in this Agreement, shall mean uBid.com Holdings, Inc. and
      its
      and their parent, subsidiaries, divisions, affiliated entities, insurers, and
      its and their present and former officers, directors, shareholders, trustees,
      employees, agents, representatives, attorneys, and consultants, and the
      successors and assigns of each, whether in their individual or official
      capacities, and the current and former trustees or administrators of any pension
      or other benefit plan applicable to the employees or former employees of the
      Company, in their official and individual capacities..

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Page
      3

     

    4.       Notice
      of Right to Consult Attorney and Twenty-One (21) Day Consideration
      Period.
      By
      signing this Agreement, you acknowledge and agree that the Company has informed
      you by this Agreement that (1) you have the right to consult with an attorney
      of
      your choice prior to signing this Agreement, and (2) you are entitled to
      twenty-one (21) days from the receipt of this Agreement to consider whether
      the
      terms are acceptable to you. The Company encourages you to use the full 21-day
      period to consider this Agreement, but you have the right, if you choose, to
      sign this Agreement prior to the expiration of the twenty-one (21) day period.
      

    

    5.       Notification
      of Rights under the Federal Age Discrimination in Employment Act (29 U.S.C.
§
621 et seq.).
      You are
      hereby notified of your right to rescind the release of claims contained in
      Paragraph 3 with regard to your rights arising under the federal Age
      Discrimination in Employment Act, 29 U.S.C. § 621 et seq., within seven (7)
      calendar days of your signing this Agreement. In order to be effective, the
      rescission must (a) be in writing; (b) delivered to Patricia A. Hamm, EVP -
      Human Resources, uBid.com Holdings, Inc., 4400 Baker Road, Minnetonka, Minnesota
      55343, by hand or mail within the required period; and (c) if delivered by
      mail,
      the rescission must be postmarked within the required period, properly addressed
      to Patricia A. Hamm as set forth above, and sent by certified mail, return
      receipt requested. This Agreement will be effective upon the expiration of
      the
      7-day period without rescission. You understand that if you rescind any part
      of
      this Agreement in accordance with this Paragraph 5, you will not receive the
      separation pay described in Paragraph 2.

    

    6.       Return
      of Property.
      By
      signing this Agreement, you acknowledge and agree that all documents and
      materials relating to the business of, or the services provided by, the Company
      are the sole property of the Company. By signing this Agreement you further
      agree and represent that you have returned to the Company all of its property,
      including but not limited to, all company documents, records and keys.

    

    7.       Confidential
      and Proprietary Information.
      By
      signing this Agreement, you acknowledge and agree that you have had access
      in
      your employment with the Company to confidential and proprietary information
      of
      the Company and further acknowledge and agree that the release or disclosure
      of
      any confidential or proprietary information will cause the Company irreparable
      injury. By signing this Agreement, you acknowledge that you have not used or
      disclosed, and agree that you will not at any time use or disclose, directly
      or
      indirectly, to any other entity or person, any confidential or proprietary
      information of the Company. For purposes of this Agreement, the term
“confidential or proprietary information” shall include, but not be limited to,
      information about the personal or business affairs of the Company’s customers,
      vendors, or employees. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Page
      4

     

    8.       Confidentiality.
      You
      promise and agree not to disparage the Company or disclose or discuss, directly
      or indirectly, in any manner whatsoever, any information regarding either (a)
      the contents and terms of this Agreement, or (b) the substance and/or nature
      of
      any dispute between the Company and any employee or former employee, including
      yourself. You agree that the only people with whom you may discuss this
      confidential information are your legal and financial advisors and your spouse,
      if applicable, provided they agree to keep the information confidential, or
      as
      otherwise required by law.

    

    9.       Sarbanes-Oxley
      Certifications.
      You
      promise and agree to provide Sarbanes-Oxley Section 302 and Section 906
      Certifications, certified to the best of your knowledge, in support of the
      Sarbanes-Oxley Section 302 and Section 906 Certifications which will be required
      to be provided by the Company’s new Chief Executive Officer in the Company
      Quarterly Report on Form 10-Q for the period ending September 30,
      2007.

    

    10.       Remedies.
      If you
      breach any term of this Agreement, the Company shall be entitled to its
      available legal and equitable remedies, including but not limited to suspending
      and recovering any and all payments and benefits made or to be made under this
      Agreement and payment by you of the Company’s reasonable attorneys’ fees and
      costs. If the Company seeks and/or obtains relief from an alleged breach of
      this
      Agreement, all of the provisions of this Agreement shall remain in full force
      and effect.

    

    11.       Non-Admission.
      It is
      expressly understood that this Agreement does not constitute, nor shall it
      be
      construed as an admission by the Company or you of any liability or unlawful
      conduct whatsoever. The Company and you specifically deny any liability or
      unlawful conduct.

    

    12.       Successors
      and Assigns.
      This
      Agreement is personal to you and may not be assigned by you without the written
      agreement of the Company. The rights and obligations of this Agreement shall
      inure to the successors and assigns of the Company.

    

    13.       Enforceability.
      If a
      court finds any term of this Agreement to be invalid, unenforceable, or void,
      the parties agree that the court shall modify such term to make it enforceable
      to the maximum extent possible. If the term cannot be modified, the parties
      agree that the term shall be severed and all other terms of this Agreement
      shall
      remain in effect.

    

    14.       Law
      Governing.
      This
      Agreement shall be governed and construed in accordance with the laws of the
      State of Illinois.

    

    15.       Full
      Agreement.
      This
      Agreement contains the full agreement between you and the Company and may not
      be
      modified, altered, or changed in any way except by written agreement signed
      by
      both parties. The parties agree that this Agreement supersedes and terminates
      any and all other written and oral agreements and understandings between the
      parties.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Page
      5

     

    16. Acknowledgment
      of Reading and Understanding.
      By
      signing this Agreement, you acknowledge that you have read this Agreement,
      including the release of claims contained in Section 3, and understand that
      the
      release of claims is a full
      and final release of all claims
      you may
      have against the Company and the other entities and individuals covered by
      the
      release. By signing, you also acknowledge and agree that you have entered into
      this Agreement knowingly and voluntarily.

    

    The
      offer
      contained in this Agreement will expire at 5:00 p.m. on October 12, 2007. After
      you have reviewed this Agreement and obtained whatever advice and counsel you
      consider appropriate regarding it, please evidence your agreement to the
      provisions set forth in this Agreement by dating and signing both copies of
      the
      Agreement. Please then return one copy of this Agreement to me in the envelope
      provided by no later than October 12, 2007. You should keep the other copy
      for
      your records. We wish you the best in your future endeavors.

    

    Sincerely,

    

    

    Steven
      Sjoblad

    Chairman
      of the 

    Board
      of
      Directors

     

     

     

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Page
      6

    
 

    ACKNOWLEDGMENT
      AND SIGNATURE

    

    By
      signing below, I, Robert H. Tomlinson, Jr., acknowledge and agree to the
      following:

    

    
      	
              ·

            	
              I
                have had adequate time to consider whether to sign this Separation
                Agreement and Release.

            

    

    
      	
              ·

            	
              I
                have read this Separation Agreement and Release
                carefully.

            

    

    
      	
              ·

            	
              I
                understand and agree to all of the terms of the Separation Agreement
                and
                Release.

            

    

    
      	
              ·

            	
              I
                am knowingly and voluntarily releasing my claims against the
                Company.

            

    

    
      	
              ·

            	
              I
                have not, in signing this Agreement, relied upon any statements or
                explanations made by the Company except as for those specifically
                set
                forth in this Separation Agreement and Release.

            

    

    
      	
              ·

            	
              I
                intend this Separation Agreement and Release to be legally
                binding.

            

    

    
      	
              ·

            	
              I
                am signing this Separation Agreement and Release on or after my last
                day
                of employment with the Company.

            

    

    

    

    Accepted
      this ______ day of __________________, 2007.

    

    

    _______________________________

    Robert
      H.
      Tomlinson, Jr.Amended
      and Restated

    

    Advisory
      Agreement

    

    ----
      between ----

    

    NB
      Capital Corporation

    

    ---
      and ---

    

    National
      Bank of Canada

     

    
      
        

      

    

     

    March
      19, 2007

     

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

    
      	 	 	
              Page

            
	 	 	 
	
              1.

            	
              DEFINITIONS

            	
              1

            
	 	 	 
	
              2.

            	
              DUTIES
                OF THE ADVISOR

            	
              2

            
	 	 	 
	
              3.

            	
              COMPENSATION
                OF THE ADVISOR

            	
              4

            
	 	 	 
	
              4.

            	
              EXPENSES
                OF THE ADVISOR

            	
              4

            
	 	 	 
	
              5.

            	
              RECORDS

            	
              4

            
	 	 	 
	
              6.

            	
              REIT
                QUALIFICATION AND COMPLIANCE

            	
              4

            
	 	 	 
	
              7.

            	
              TERM:
                TERMINATION

            	
              5

            
	 	 	 
	
              8.

            	
              OTHER
                ACTIVITIES OF THE ADVISOR

            	
              5

            
	 	 	 
	
              9.

            	
              CONFIDENTIALITY

            	
              5

            
	 	 	 
	
              10.

            	
              BINDING
                EFFECT: ASSIGNMENT

            	
              5

            
	 	 	 
	
              11.

            	
              SUBCONTRACTING

            	
              6

            
	 	 	 
	
              12.

            	
              LIABILITY
                AND INDEMNITY OF THE ADVISOR

            	
              6

            
	 	 	 
	
              13.

            	
              ACTION
                UPON NOTICE OF NON-RENEWAL OR TERMINATION

            	
              6

            
	 	 	 
	
              14.

            	
              NO
                JOINT VENTURE OF PARTNERSHIP

            	
              7

            
	 	 	 
	
              15.

            	
              NOTICES

            	
              7

            
	 	 	 
	
              16.

            	
              SEVERABILITY

            	
              7

            
	 	 	 
	
              17.

            	
              GOVERNING
                LAW

            	
              8

            
	 	 	 
	
              18.

            	
              AMENDMENTS

            	
              8

            
	 	 	 
	
              19.

            	
              HEADINGS

            	
              8

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    AMENDED
      AND RESTATED ADVISORY AGREEMENT

     

    Amended
      and Restated Advisory Agreement entered into as of March 19, 2007.

     

    
      	
              BETWEEN:

            	
              NB
                CAPITAL CORPORATION,
                a
                Maryland

            
	 	
              corporation;

            
	 	 
	 	
              (the
                “Company”)

            
	 	 
	
              AND:

            	
              NATIONAL
                BANK OF CANADA,
                a
                Canadian

            
	 	
              chartered
                bank;

            
	 	 
	 	
              (the
                “Advisor”)

            

    

    

    WHEREAS
      the Company qualifies as a “real estate investment trust” (“REIT”)
      under
      the Internal
      Revenue Code of 1986,
      as
      amended (the “Code”);

    

    WHEREAS
      the Company desires to avail itself of the experience and assistance of the
      Advisor and to have the Advisor undertake, on the Company’s behalf, the duties
      and responsibilities hereinafter set forth, subject to the control and
      supervision of the Board of Directors of the Company (the “Board
      of Directors”)
      as
      provided for herein;

    

    WHEREAS
      the Advisor desires to render such services to the Company subject to the
      control and supervision of the Board of Directors, on the terms and conditions
      hereinafter set forth;

    

    WHEREAS
      the parties signed an advisory agreement dated September 3, 1997, that was
      subsequently amended on October 31, 2001, October 31, 2003, November 3, 2004
      and
      March 21, 2006;

    

    WHEREAS
      the parties wish to amend said amended and restated advisory agreement,
      hereinafter referred to as the “Agreement”, as defined below;

    

    NOW,
      THEREFORE, the parties hereto hereby agree as follows:

     

    
      	 	
              1.

            	
              DEFINITIONS

            

    

    

    
      	 	
              1.1

            	
              Definitions

            

    

     

    As
      used
      herein, the following terms shall have the respective meanings set forth
      below:

    

    
      	 	
              1.1.1

            	
              “Advisor”
                has the meaning set forth in the forepart of this
                Agreement.

            

    

    

    
      	 	
              1.1.2

            	
              “Advisor
                Termination Date”
                means the date on which this Agreement
                terminates.

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	 	
              1.1.3

            	
              “Agreement”
                means this Amended and Restated Advisory Agreement, as amended, modified
                and supplemented from time to time.

            

    

    

    
      	 	
              1.1.4

            	
              “Board
                of Directors”
                has the meaning set forth in the forepart of this
                Agreement.

            

    

    

    
      	 	
              1.1.5

            	
              “Company”
                has the meaning set forth in the forepart of this
                Agreement.

            

    

    

    
      	 	
              1.1.6

            	
              “Independent
                Directors”
                means the members of the Board of Directors who are not current officers
                or employees of the Company or current directors, employees or officers
                of
                the Advisor or any affiliate of the
                Advisor.

            

    

    

    
      	 	
              1.1.7

            	
              “Operating
                Expenses”
                for any period means any operating expenses of the Company (with
                the
                exception of those expenses to be borne by the Advisor in accordance
                with
                Section 4 hereof).

            

    

    

    
      	 	
              1.1.8

            	
              “Person”
                means and includes individuals, corporations, limited partnerships,
                general partnerships, joint stock companies or associations, limited
                liability companies, joint ventures, associations, consortia, companies,
                trusts, banks, trust companies, land trusts, common laws trusts,
                business
                trusts or other entities, governments and agencies and political
                subdivisions thereof.

            

    

    

    
      	 	
              1.1.9

            	
              “REIT”
                has the meaning set forth in the forepart of this
                Agreement.

            

    

     

    
      	 	
              2.

            	
              DUTIES
                OF THE ADVISOR

            

    

    

    The
      Advisor shall regularly consult with the Board of Directors and the officers
      of
      the Company and shall, at their request, furnish advice and recommendations
      with
      respect to all aspects of the business and affairs of the Company. Furthermore,
      subject to the control and discretion of and to instructions to the contrary
      from the Board of Directors, the Advisor shall perform the following services,
      without any specific request from the Board of Directors:

    

    
      	 	
              (a)

            	
              administer
                the day-to-day operations and affairs of the Company, including,
                without
                limitation, the performance or supervision of the functions described
                in
                this Section 2;

            

    

    

    
      	 	
              (b)

            	
              monitor
                the credit quality of the real estate mortgage assets held by the
                Company;

            

    

    

    
      	 	
              (c)

            	
              advise
                the Company with respect to the acquisition, management, financing
                and
                disposition of the Company’s real estate mortgage
                assets;

            

    

    

    
      	 	
              (d)

            	
              represent
                the Company in its day-to-day dealings with Persons with whom the
                Company
                interacts, including, without limitation, stockholders of the Company,
                the
                transfer agent of the Company, consultants, accountants, attorneys,
                servicers of the Company’s mortgage loans, custodians, insurers, banks,
                governments, government agencies and regulatory
                bodies;

            

    

    

    
      	 	
              (e)

            	
              establish
                and provide all the necessary services for the Company, including,
                without
                limitation, executive, administrative, accounting, stockholder relations,
                secretarial, recordkeeping, copying, telephone, mailing and distribution
                facilities;

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (f)

            	
              maintain
                communications and relations with the stockholders of the Company,
                including, but not limited to, responding to inquiries, proxy
                solicitations, providing reports to stockholders and arranging and
                coordination of all meetings of
                stockholders;

            

    

    

    
      	 	
              (g)

            	
              monitor
                and supervise the performance of all parties who have contracts to
                perform
                services for the Company, provided that the Advisor shall have no
                duty to
                assume the obligations or guarantee the performance of such parties
                under
                such contract;

            

    

    

    
      	 	
              (h)

            	
              arrange
                for the execution and delivery of such documents and instruments
                by the
                officers of the Company as may be required in order to perform the
                functions herein described and to take other required action contemplated
                by the terms of this Agreement;

            

    

    

    
      	 	
              (i)

            	
              maintain
                proper books and records of the Company’s affairs and furnish or cause to
                be furnished to the Board of Directors such periodic reports and
                accounting information as may be required from time to time by the
                Board
                of Directors, including, but not limited to, quarterly reports of
                all
                income, expenses and distributions of the Company;
                

            

    

    

    
      	 	
              (j)

            	
              consult
                and work with legal counsel for the Company in implementing Company
                decisions and undertaking measures consistent with all pertinent
                federal,
                provincial, state and local laws and rules or regulations of governmental
                or quasi-governmental agencies, including, but not limited to, federal,
                provincial and state securities laws and tax laws, as it relates
                to the
                Company’s qualification as a REIT, and the regulations promulgated under
                each of the foregoing;

            

    

    

    
      	 	
              (k)

            	
              consult
                and work with accountants for the Company in connection with the
                preparation of financial statements, annual reports and tax
                returns;

            

    

    

    
      	 	
              (l)

            	
              prepare
                and distribute, in consultation with the accountants for the Company,
                annual reports to stockholders which will contain audited financial
                statements;

            

    

    

    
      	 	
              (m)

            	
              furnish
                reports to the Board of Directors and provide research, economical
                and
                statistical data in connection with the Company’s investments;
                and

            

    

    

    
      	 	
              (n)

            	
              as
                reasonably requested by the Company, make reports to the Company
                of its
                performance of the foregoing services and furnish advice and
                recommendations with respect to other aspects of the business of
                the
                Company.

            

    

    

    For
      greater certainty, this Agreement does not provide the Advisor with the
      authority to modify or conclude contracts in the name of the
      Company.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	 	
              3.

            	
              COMPENSATION
                OF THE ADVISOR

            

    

    

    The
      Company shall pay to the Advisor, for services rendered by the Advisor
      hereunder, an advisory fee equal to ONE HUNDRED THOUSAND Dollars ($100,000)
      per
      year, payable in equal quarterly instalments.

     

    
      	 	
              4.

            	
              EXPENSES
                OF THE ADVISOR

            

    

    

    
      	 	
              (a)

            	
              Without
                regard to the compensation received pursuant to Section 3 hereof,
                the
                Advisor shall bear the following
                expenses:

            

    

    

    
      	 	
              (i)

            	
              employment
                expenses of the personnel employed by the Advisor, including, without
                limitation, salaries, wages, payroll taxes and the cost of employee
                benefit plans; and

            

    

    

    
      	 	
              (ii)

            	
              rent,
                telephone equipment, utilities, office furniture and equipment and
                machinery and other office expenses of the Advisor incurred in connection
                with the maintenance of any office facility of the
                Advisor.

            

    

    

    
      	 	
              (b)

            	
              Subject
                to paragraph 4(a) above, the Company shall reimburse the Advisor
                within 30
                days of a written request by the Advisor for any Operating Expenses
                paid
                or incurred by the Advisor on behalf of the
                Company.

            

    

     

    
      	 	
              5.

            	
              RECORDS

            

    

    

    The
      Advisor shall maintain appropriate books of account and records relating to
      services performed hereunder, and such books of account and records shall be
      accessible for inspection by the Board of Directors and representatives of
      the
      Company at all times.

     

    
      	 	
              6.

            	
              REIT
                QUALIFICATION AND
                COMPLIANCE

            

    

    

    The
      Advisor shall consult and work with the Company’s legal counsel in maintaining
      the Company’s qualification as a REIT. Notwithstanding any other provisions of
      this Agreement to the contrary, the Advisor shall refrain from any action which,
      in its reasonable judgment or in the judgment of the Board of Directors (of
      which the Advisor has received written notice), may adversely affect the
      qualification of the Company as a REIT or which would violate any laws, rule
      or
      regulation of any governmental body or agency having jurisdiction over the
      Company or its securities, or which would otherwise not be permitted by the
      articles of incorporation or by-laws of the Company. Furthermore, the Advisor
      shall take any action which, in its judgment or the judgment of the Board of
      Directors (of which the Advisor has received written notice), may be necessary
      to maintain the qualification of the Company as a REIT or prevent the violation
      of any law or regulation of any governmental body or agency having jurisdiction
      over the Company or its securities.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	 	
              7.

            	
              TERM:
                TERMINATION

            

    

    

    This
      Agreement shall be in full force and effect for a term beginning on the date
      hereof with an initial term of one year, and may be renewed for additional
      one-year periods at the election of the Company. Notwithstanding the foregoing,
      at any time after the initial term, the Company may terminate this Agreement
      at
      any time upon 60 days’ prior written notice; provided, however, that as long as
      any shares of the Company’s 8.35% Non Cumulative Exchangeable Preferred Stock,
      Series A, par value US$.01 per share, remain outstanding, any decision by the
      Company to renew, terminate or modify this Agreement must be approved by a
      majority of the Board of Directors, as well as by a majority of the Independent
      Directors.

     

    
      	 	
              8.

            	
              OTHER
                ACTIVITIES OF THE
                ADVISOR

            

    

    

    
      	 	
              (a)

            	
              Nothing
                herein contained shall prevent the Advisor, an affiliate of the Advisor
                or
                an officer, director, employee or stockholder of the Advisor from
                engaging
                in any activity, including, without limitation, originating, purchasing
                and managing real estate mortgage assets, rendering of services and
                investment advice with respect to real estate investment opportunities
                to
                any other Person (including other REITs) and managing other investments
                (including the investments of the Advisor and its
                affiliates).

            

    

    

    
      	 	
              (b)

            	
              Officers,
                directors, employees, stockholders and agents of the Advisor or of
                any
                affiliate of the Advisor may serve as officers, directors, employee
                or
                agents of the Company, but shall receive no compensation (other than
                reimbursement for expenses) from the Company for such
                service.

            

    

     

    
      	 	
              9.

            	
              CONFIDENTIALITY

            

    

    

    The
      Advisor acknowledges that all information provided in this Agreement is
      confidential, non-public and/or proprietary in nature. The Advisor agrees that
      it will, at all times, other than as required by law, treat such information
      as
      confidential and that it will not circulate, communicate or otherwise disclose
      any information in the Agreement, directly or indirectly, to anyone other than
      the original recipient. The Advisor agrees that all information provided shall
      be used solely for the purposes described in the Agreement and that it shall
      have no rights of ownership in any such information provided.

    

    
      	 	
              10.

            	
              BINDING
                EFFECT: ASSIGNMENT

            

    

    

    This
      Agreement shall inure to the benefit of and shall be binding upon the parties
      hereto and their respective successors and assigns. Neither party may assign
      this Agreement or any of its respective rights hereunder (other than an
      assignment to a successor organization which acquires substantially all of
      the
      property of such party or, in the case of the Advisor, to an affiliate of the
      Advisor) without the prior written consent of the other party to this
      Agreement.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	 	
              11.

            	
              SUBCONTRACTING

            

    

    

    The
      Advisor may at any time subcontract all or a portion of its obligations under
      this Agreement to one or more affiliates of the Advisor that are involved in
      the
      Business of managing real estate mortgage assets without the consent of the
      Company. If no affiliate of the Advisor is engaged in the business of managing
      real estate mortgage assets, the Advisor may, with the approval of a majority
      of
      the Board of Directors, as well as a majority of the Independent Directors,
      subcontract all or a portion of its obligations under this Agreement to
      unrelated third parties. Notwithstanding the foregoing, the Advisor will not,
      in
      connection with subcontracting any of its obligations under this Agreement,
      be
      discharged or relieved in any respect from its obligations under this
      Agreement.

     

    
      	 	
              12.

            	
              LIABILITY
                AND INDEMNITY OF THE
                ADVISOR

            

    

    

    The
      Advisor assumes no responsibilities under this Agreement other than to perform
      the services called for hereunder in good faith. Neither the Advisor nor any
      of
      its affiliates, stockholders, directors, officers or employees will have any
      liability to the Company, stockholders of the Company or others except by reason
      of acts or omissions constituting gross negligence or willful breach of any
      of
      the Advisor’s material obligations under this Agreement. The Company shall
      indemnify and reimburse (if necessary) the Advisor, its stockholders, directors,
      officers, employees and agents for any and all expenses (including, without
      limitation, attorney’s fees and expenses), losses, damages, liabilities, demands
      and charges of any nature whatsoever in respect of or arising from any acts
      or
      omissions by the Advisor, or any of its affiliates, stockholders, directors,
      officers or employees pursuant to this Agreement, provided that the conduct
      against which the claim is made was determined by such Person, in good faith,
      to
      be in the best interests of the Company and was not the result of gross
      negligence by such Person or willful breach of any of such Person’s material
      obligations by such Person. The Advisor agrees that any such indemnification
      is
      recoverable only from the assets of the Company and not from the
      stockholders.

     

    
      	 	
              13.

            	
              ACTION
                UPON NOTICE OF NON-RENEWAL OR
                TERMINATION

            

    

    

    Forthwith
      upon giving of notice of non-renewal of this Agreement by the Company or of
      termination of this Agreement by the Company, the Advisor shall not be entitled
      to compensation after the Advisor Termination Date for further services under
      this Agreement, but shall be paid all compensation accruing to the Advisor
      Termination Date and shall be reimbursed for all expenses of the Company paid
      or
      incurred by the Advisor as of the Advisor Termination Date which are
      reimbursable by the Company under this Agreement. The Advisor shall promptly
      after the Advisor Termination Date:

    

    
      	 	
              (a)

            	
              deliver
                to the Company all assets and documents of the Company then in the
                custody
                of the Advisor; and

            

    

    

    
      	 	
              (b)

            	
              cooperate
                with the Company and take all reasonable steps requested to assist
                the
                Board of Directors in making an orderly transfer of the administrative
                functions of the Company.

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    
      	 	
              14.

            	
              NO
                JOINT VENTURE OR
                PARTNERSHIP

            

    

    

    Nothing
      in this Agreement shall be deemed to create a joint venture or partnership
      between the parties, whether for purposes of taxation or otherwise. Furthermore,
      nothing in the Agreement conveys to, or otherwise grants, the Advisor the
      authority to conclude contracts in the name of the Company.

    

    

    
      	 	
              15.

            	
              NOTICES

            

    

    

    Unless
      expressly provided otherwise herein, all notices, requests, demands and other
      communications required or permitted under this Agreement shall be in writing
      and shall be made by hand delivery, certified mail, overnight courier service,
      telex or telecopier. Any notice shall be duly addressed to the parties as
      follows:

    

    
      	 	
              (a)

            	
              If
                to the Company:

            

    

    NB
      CAPITAL CORPORATION

    65
      East
      55th Street

    31st
      Floor

    New
      York,
      New York 10022

    

    Attention:
      Chairman of the Board and President

    

    
      	 	
              (b)

            	
              If
                to the Advisor:

            

    

     

    NATIONAL
      BANK OF CANADA

    600
      de la
      Gauchetiere Street West

    Montreal
      (Québec)

    H3B
      4L2

    

    Attention:
      Vice-President & Chief Accountant

    

    Either
      party may alter the address to which communications or copies are to be sent
      by
      giving notice of such change of address in conformity with the provisions of
      this Section 15 for the giving of notice.

     

    
      	 	
              16.

            	
              SEVERABILITY

            

    

    

    If
      any
      term of provision of this Agreement or the application thereof with respect
      to
      any Person or circumstance shall, to any extent, be invalid or unenforceable
      (other than Section 14), the remainder of this Agreement, or the application
      of
      that term or provision to persons or circumstances other than those as to which
      it is held invalid or unenforceable, shall not be affected thereby, and each
      term and provision of this Agreement shall be valid and be enforced to the
      fullest extent permitted by law.

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	 	
              17.

            	
              JURISDICTION
                AND FORUM NON CONVENIENS

            

    

    

    Each
      of
      the parties hereto irrevocably and unconditionally submits, for itself and
      its
      property, to the non-exclusive jurisdiction of the Québec courts, and any
      appellate court thereof, in any action or proceeding arising out of or relating
      to this Agreement, or for recognition or enforcement of any judgment, and each
      of the parties hereto hereby irrevocably and unconditionally agrees that all
      claims in respect of any such action or proceeding may be heard and determined
      in such court. Each of the parties hereto agrees that a final judgment in any
      such action 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 any party may otherwise
      have to bring any action or proceeding relating to this Agreement in the courts
      of any jurisdiction. Each of the parties hereto irrevocably and unconditionally
      waives, to the fullest extent it may legally and effectively do so, any
      objection they may now or hereafter have to the laying of venue of any suit,
      action or proceeding arising out of or relating to his Agreement in the courts
      of the Province of Québec. Each of the parties hereto hereby irrevocably waives,
      to the fullest extent permitted by law, the defence of an inconvenient forum
      to
      the maintenance of such action or proceeding in any such court. The Company
      hereby irrevocably appoints the Bank of Nova Scotia Trust Company of New York,
      One Liberty Plaza, New-York, NY 10006, U.S.A. (“Company’s
      Process Agent”),
      as
      its agent to receive, on behalf of the Company, service of copies of the summons
      and complaint and in any other process that may be served in any such action
      or
      proceeding. Any such service may be made by mailing or delivering a copy of
      such
      process, in care of the Company’s Process Agent at the Company’s Process Agent’s
      above address. The Company hereby irrevocably authorizes and directs its agent
      to accept such service on its behalf. The parties hereto hereby agree that
      the
      final judgment in any such action or proceeding shall be conclusive and may
      be
      in force in any other jurisdiction by suit on the judgment or any other manner
      provided by law.

     

    
      	 	
              18.

            	
              GOVERNING
                LAW

            

    

    

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      Province of Québec and the obligations, rights and remedies hereunder shall be
      determined in accordance with the substantive laws of the Province of
      Québec.

     

    
      	 	
              19.

            	
              AMENDMENTS

            

    

    

    This
      Agreement shall not be amended, changed, modified or terminated in whole or
      in
      part except by an instrument in writing signed by both parties hereto or their
      respective successors or assigns, or otherwise as provided herein.

    

    The
      provisions of this Agreement replace any and all previous advisory agreements
      between the parties, namely, the advisory agreement dated September 3, 1997,
      the
      first supplemental advisory agreement dated October 31, 2001, the second
      supplemental advisory agreement dated October 31, 2003 and the amended and
      restarted advisory agreements dated November 3, 2004 and March 21, 2006.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	 	
              20.

            	
              HEADINGS

            

    

    

    The
      section headings herein have been inserted for convenience of reference only
      and
      shall not be construed to affect the meaning, construction or effect of this
      Agreement.

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      their officers thereunto duly authorized as of the date first written
      above.

     

    
      	 	
              NB
                CAPITAL CORPORATION

            	 
	 	 	 
	 	 	 
	
              By:

            	
              _____________________________

            	 
	 	 	 
	 	 	 
	 	
              NATIONAL
                BANK OF CANADA

            	 
	 	 	 
	 	 	 
	
              By:

            	
              ______________________________

            	 
	 	 	 
	 	 	 
	
              By:

            	
              ______________________________

            	 

    

    

    
      
        
        

      

      
        9

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