Document:

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                                                                    Exhibit 10.7

THE REGISTERED HOLDER OF THIS PURCHASE OPTION, BY ITS ACCEPTANCE HEREOF, AGREES
THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE OPTION, EXCEPT AS HEREIN
PROVIDED, AND THE REGISTERED HOLDER OF THIS PURCHASE OPTION AGREES THAT IT WILL
NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE OPTION FOR A
PERIOD OF ONE YEAR FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER
THAN (I) MAXIM GROUP LLC ("MAXIM") OR ITS AFFILIATES OR AN UNDERWRITER OR A
SELECTED DEALER IN CONNECTION WITH THE OFFERING (DEFINED HEREIN), OR (II) A BONA
FIDE OFFICER, PARTNER OR EMPLOYEE OF MAXIM OR OF ANY SUCH UNDERWRITER OR
SELECTED DEALER.

THIS PURCHASE OPTION IS NOT EXERCISABLE PRIOR TO THE LATER OF (I) _____________,
2008 AND (II) THE CONSUMMATION BY ALPHA SECURITY GROUP CORPORATION (THE
"COMPANY") OF A MERGER, CAPITAL STOCK EXCHANGE, ASSET ACQUISITION OR OTHER
SIMILAR BUSINESS COMBINATION (A "BUSINESS COMBINATION") (AS DESCRIBED MORE FULLY
IN THE COMPANY'S REGISTRATION STATEMENT (AS DEFINED HEREIN)). THIS PURCHASE
OPTION SHALL BE VOID AFTER 5:00 P.M., NEW YORK CITY LOCAL TIME, ON
_____________, 2012.

                              UNIT PURCHASE OPTION

                               FOR THE PURCHASE OF

                                  105,000 UNITS

                                       OF

                        ALPHA SECURITY GROUP CORPORATION

     1.   Purchase Option.

          THIS CERTIFIES THAT, in consideration of $100 duly paid by or on
behalf of Maxim Group LLC (collectively, with its successors and permitted
assigns and/or transferees, the "HOLDER"), as registered owner of this Purchase
Option, to Alpha Security Group Corporation (the "COMPANY"), Holder is entitled,
at any time or from time to time after the closing of the Offering (as defined
below) and during the period commencing (the "COMMENCEMENT DATE") on the later
of: (i) the consummation of a Business Combination and (ii) _________, 2009
[twenty four months from the effective date of registration statement], and
expiring (the "EXPIRATION DATE") at or before 5:00 p.m., New York City local
time, __________, 2012, but not thereafter, to subscribe for, purchase and
receive, in whole or in part, up to One Hundred Five Thousand (105,000) units
(the "UNITS") of the Company, each Unit consisting of one share of common stock
of the Company, par value $.0001 per share (the "COMMON STOCK"), and one

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warrant (the "WARRANT") to purchase one share of Common Stock expiring five
years from the effective date (the "EFFECTIVE DATE") of the registration
statement (the "REGISTRATION STATEMENT") pursuant to which Units are offered for
sale to the public (the "OFFERING"). Each Warrant is on the same terms and
conditions as the warrants underlying the Units being registered for sale to the
public by way of the Registration Statement. If the Expiration Date is a day on
which banking institutions are authorized by law to close, then this Purchase
Option shall expire on the next succeeding day that is not such a day in
accordance with the terms herein. During the period ending on the Expiration
Date, the Company agrees not to take any action that would terminate the
Purchase Option. This Purchase Option is initially exercisable at $11.00 per
Unit (the "EXERCISE PRICE"). The number of Units purchasable hereunder and the
Exercise Price are subject to adjustment as provided in this Purchase Option.

     2.   Exercise.

          2.1 Exercise. This Purchase Option may be exercised by the Holder in
whole or in part at any time or in part from time to time on or after the
Commencement Date and before the Expiration Date by: (x) surrendering this
Purchase Option to the Company, (y) delivering a subscription form in the
attached hereto as Annex I (duly executed by the Holder) and (z) making payment
of the Exercise Price in cash, certified or official bank check payable to the
order of the Company or wire transfer of immediately available funds (to an
account designated by the Company), in any case in an amount obtained by
multiplying (a) the number of Units designated by the Holder in the subscription
form by (b) the Exercise Price then in effect. In the event of a partial
exercise or assignment hereof, the Company shall issue and deliver to or upon
the order of the Holder a new Purchase Option of like tenor, in the name of the
Holder or as the Holder (upon payment by the Holder of applicable transfer
taxes) may request, evidencing the right to purchase the aggregate number of
Units for which such Purchase Option may still be exercised. If the subscription
rights represented hereby shall not be exercised at or before 5:00 p.m., New
York City local time on the Expiration Date, this Purchase Option automatically
shall become and be void, without further force or effect, and all rights
represented hereby shall cease and expire.

          2.2 Legend. Each certificate for the Units issued upon exercise of
this Purchase Option and each certificate representing the underlying Common
Stock and Warrants and the Common Stock issuable upon exercise of the underlying
Warrants (the "WARRANT SHARES") shall bear a legend as follows, unless such
Units, Common Stock, Warrants and/or Warrant Shares (collectively, the
"SECURITIES") have been registered under the Securities Act of 1933, as amended
(the "ACT"):

     "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
     SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
     SECURITIES LAWS AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE
     OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT
     PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR
     SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND

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     SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THIS CORPORATION, IS
     AVAILABLE."

          2.3 Cashless Exercise. In lieu of the payment of the Exercise Price
multiplied by the number of Units for which this Purchase Option is exercisable
(and in lieu of being entitled to receive Common Stock and Warrants) in the
manner required by Section 2.1, the Holder shall have the right (but not the
obligation) to convert any exercisable but unexercised portion of this Purchase
Option into Units (the "CONVERSION RIGHT") as follows: upon exercise of the
Conversion Right, the Company shall deliver to the Holder (without payment by
the Holder of any of the Exercise Price in cash) that number of shares of Common
Stock and Warrants comprising that number of Units equal to the quotient
obtained by dividing (x) the Value (as defined below) of the portion of the
Purchase Option being converted by (y) the Current Market Value (as defined
below) of the portion of the Purchase Option being converted. The "VALUE" of the
portion of the Purchase Option being converted shall equal the remainder derived
from subtracting (a) (i) the Exercise Price multiplied by (ii) the number of
Units underlying the portion of this Purchase Option being converted from (b)
the Current Market Value (as defined below) of a Unit multiplied by the number
of Units underlying the portion of the Purchase Option being converted. As used
herein, the term "CURRENT MARKET VALUE" per Unit at any date means: (A) in the
event that neither the Units nor Warrants are still trading, the remainder
derived from subtracting (x) the exercise price of the Warrants multiplied by
the number of shares of Common Stock issuable upon exercise of the Warrants
underlying one Unit from (y) (i) the Current Market Price of the Common Stock
multiplied by (ii) the number of shares of Common Stock underlying one Unit,
which shall include the shares of Common Stock underlying the Warrants included
in such Unit; (B) in the event that the Units, Common Stock and Warrants are
still trading, (i) if the Units are listed on a national securities exchange or
quoted on the Nasdaq Global Market, Nasdaq Capital Market or NASD OTC Bulletin
Board (or successor such as the Bulletin Board Exchange), the average of the
last sale price of the Units in the principal trading market for the Units as
reported by the exchange, Nasdaq or the NASD, as the case may be, for the ten
trading days ending on the third business day prior to exercise; or (ii) if the
Units are not listed on a national securities exchange or quoted on the Nasdaq
Global Market, Nasdaq Capital Market or the NASD OTC Bulletin Board (or
successor exchange), but is traded in the residual over-the-counter market, the
average of the closing bid price for Units for the ten trading days ending on
the third business day prior to exercise for which such quotations are reported
by the Pink Sheets, LLC or similar publisher of such quotations; and (C) in the
event that the Units are not still trading but the Common Stock and Warrants
underlying the Units are still trading, the Current Market Price of the Common
Stock plus the product of (x) the Current Market Price of the Warrants and (y)
the number of shares of Common Stock underlying the Warrants included in one
Unit. The "CURRENT MARKET PRICE" shall mean (i) if the Common Stock (or
Warrants, as the case may be) is listed on a national securities exchange or
quoted on the Nasdaq Global Market, Nasdaq Capital Market or NASD OTC Bulletin
Board (or successor such as the Bulletin Board Exchange), the average of the
sale price of the Common Stock (or Warrants) in the principal trading market for
the Common Stock as reported by the exchange, Nasdaq or the NASD, as the case
may be, for the ten trading days ending on the third business day prior to
exercise; (ii) if the Common Stock (or Warrants, as the case may be) is not
listed on a national securities exchange or quoted on the Nasdaq Global Market,
Nasdaq Capital Market or the NASD OTC Bulletin Board (or successor exchange),
but is traded in the residual

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over-the-counter market, the closing bid price for the Common Stock (or
Warrants) on the last trading day preceding the date in question for which such
quotations are reported by the Pink Sheets, LLC or similar publisher of such
quotations; and (iii) if the fair market value of the Common Stock cannot be
determined pursuant to clause (i) or (ii) above, such price as the Board of
Directors of the Company shall determine, in good faith.

          2.4 Mechanics of Cashless Exercise. The Cashless Exercise Right may be
exercised by the Holder on any business day on or after the Commencement Date
and not later than the Expiration Date by delivering the Purchase Option with
the duly executed exercise form attached hereto with the cashless exercise
section completed to the Company, exercising the Cashless Exercise Right and
specifying the total number of Units the Holder will purchase pursuant to such
Cashless Exercise Right.

          2.5 No Cash Settlement. Notwithstanding anything to the contrary
contained in this Purchase Option, under no circumstances will the Company be
required to net cash settle the exercise of the Purchase Option.

          2.6 Effective Registration Statement. This Purchase Option is
exercisable only during those periods of time in which the Company maintains the
effectiveness of the Registration Statement. If the Company fails to maintain
the effectiveness of the Registration Statement, this Purchase Option may expire
unexercised and the underlying warrants may be unredeemed.

     3.   Transfer.

          3.1 General Restrictions. Holder agrees that, pursuant to NASD Rule
2710(g)(1), it will not sell this Purchase Option during the Company's Offering,
nor shall such Holder sell, transfer, assign, pledge, hypothecate or otherwise
dispose of this Purchase Option (including the Securities hereunder) or cause
this Purchase Option or the Securities hereunder to be the subject of any
hedging, short sale, derivative, put or call transaction that would result in
the effective economic disposition of this Purchase Option or the Securities
hereunder, except as provided for in NASD Rule 2710(g)(2). Furthermore, Holder
agrees that it will not sell, transfer, assign, pledge or hypothecate this
Purchase Option for a period of eighteen (18) months following the Effective
Date.

          3.2 Restrictions Imposed by the Act. The Securities evidenced by this
Purchase Option shall not be transferred unless and until (i) the Company has
received the opinion of counsel for the Holder that the Securities may be
transferred pursuant to an exemption from registration under the Act and
applicable state securities laws, the availability of which is established to
the reasonable satisfaction of the Company (the Company hereby agreeing that the
opinion of Eiseman Levine Lehrhaupt & Kakoyiannis, P.C. shall be deemed
satisfactory evidence of the availability of an exemption), or (ii) a
registration statement or a post-effective amendment to the Registration
Statement relating to such Securities has been filed by the Company and declared
effective by the Securities and Exchange Commission (the "SEC") and compliance
with applicable state securities law has been established.

     4.   New Purchase Options to be Issued.

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          4.1 Partial Exercise or Transfer. Subject to the restrictions in
Section 3 hereof, this Purchase Option may be exercised or assigned in whole or
in part. In order to make any permitted assignment or transfer, the Holder must
deliver to the Company the assignment form attached hereto as Annex II duly
executed and completed, together with the Purchase Option and payment of all
transfer taxes, if any, payable in connection therewith. The Company shall
within five (5) business days transfer this Purchase Option on the books of the
Company and shall execute and deliver a new Purchase Option or Purchase Options
of like tenor to the appropriate assignee(s) expressly evidencing the right to
purchase the aggregate number of Units purchasable hereunder or such portion of
such number as shall be contemplated by any such assignment or transfer.

          4.2 Lost Certificate. Upon receipt by the Company of evidence
satisfactory to it of the loss, theft, destruction or mutilation of this
Purchase Option and of reasonably satisfactory indemnification or the posting of
a bond, the Company shall execute and deliver a new Purchase Option of like
tenor and date. Any such new Purchase Option executed and delivered as a result
of such loss, theft, mutilation or destruction shall constitute a substitute
contractual obligation on the part of the Company.

     5.   Registration Rights.

          5.1 Demand Registration.

               5.1.1 Grant of Right. The Company, upon written demand (an
"DEMAND NOTICE") of the Holder(s) of at least 51% (the "MAJORITY HOLDERS") of
the Purchase Options and/or the underlying Units and/or the underlying
Securities, agrees to register all or any portion of the Purchase Option and the
underlying Securities (collectively, the "REGISTRABLE SECURITIES") as requested
by the Majority Holders. The Company will file a registration statement or a
post-effective amendment to the Registration Statement covering the Registrable
Securities within sixty (60) days after receipt of the Initial Demand Notice and
use its best efforts to have such registration statement or post-effective
amendment declared effective as soon as possible thereafter, subject to
compliance with review by the SEC. The demand for registration may be made at
any time during a period of five (5) years beginning on the Effective Date. The
Company covenants and agrees to give written notice of its receipt of any Demand
Notice by any Holder(s) to all other registered Holders of the Purchase Options
and/or the Registrable Securities within ten (10) days from the date of the
receipt of any such Demand Notice.

               5.1.2 Terms. The Company shall bear all fees and expenses
attendant to registering the Registrable Securities, including the expenses of
one legal counsel selected by the Holders to represent them in connection with
the registration of the Registrable Securities, but the Holders shall pay any
and all underwriting commissions. The Company agrees to use its reasonable best
efforts to qualify or register the Registrable Securities in such States as are
reasonably requested by the Majority Holder(s); provided, however, that in no
event shall the Company be required to register the Registrable Securities in a
State in which such registration would cause (i) the Company to be obligated to
qualify to do business in such State, or would subject the Company to taxation
as a foreign corporation doing business in such jurisdiction or

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(ii) the principal stockholders of the Company to be obligated to escrow their
shares of capital stock of the Company. The Company shall cause any registration
statement or post-effective amendment filed pursuant to the demand rights
granted under Section 5.1.1 to remain effective for a period of two (2) years
from the effective date of such registration statement or post-effective
amendment.

          5.2 "Piggy-Back" Registration.

               5.2.1 Grant of Right. If at any time during a period of seven (7)
years commencing on the Effective Date when there is not an effective
registration statement covering all of the Registrable Securities, the Company
shall determine to prepare and file with the SEC a registration statement
relating to an offering under the Act of any of its securities, other than
pursuant to SEC Form S-4 or S-8 or any equivalent form, the Company, upon the
request of any Holder, as described below, shall cause the registration under
the Act of the Registrable Securities as part of any such registration statement
filed by the Company; provided, however, that if, in the written opinion of the
Company's managing underwriter or underwriters, if any, for such offering, the
inclusion of the Registrable Securities, when added to the securities being
registered by the Company or the selling stockholder(s), will exceed the maximum
amount of the Company's securities (the "MAXIMUM NUMBER OF SHARES") which can be
marketed (i) at a price reasonably related to their then current market value,
and (ii) without materially and adversely affecting the entire offering, then
the Company shall include in any such registration:

               (i) If the registration is undertaken for the Company's account:
(A) first, the shares of Common Stock or other securities that the Company
desires to sell that can be sold without exceeding the Maximum Number of Shares;
(B) second, to the extent that the Maximum Number of Shares has not been reached
under the foregoing clause (A), the shares of Common Stock, if any, including
the Registrable Securities, as to which registration has been requested pursuant
to written contractual piggy-back registration rights of security holders (pro
rata in accordance with the number of shares of Common Stock which each such
person has actually requested to be included in such registration, regardless of
the number of shares of Common Stock with respect to which such persons have the
right to request such inclusion) that can be sold without exceeding the Maximum
Number of Shares; and

               (ii) If the registration is a "demand" registration undertaken at
the demand of persons other than the holders of Registrable Securities pursuant
to written contractual arrangements with such persons, (A) first, the shares of
Common Stock for the account of the demanding persons that can be sold without
exceeding the Maximum Number of Shares; (B) second, to the extent that the
Maximum Number of Shares has not been reached under the foregoing clause (A),
the shares of Common Stock or other securities that the Company desires to sell
that can be sold without exceeding the Maximum Number of Shares; and (C) third,
to the extent that the Maximum Number of Shares has not been reached under the
foregoing clauses (A) and (B), the Registrable Securities as to which
registration has been requested under this Section 5.2 (pro rata in accordance
with the number of shares of Registrable Securities held by each such holder);
and (D) fourth, to the extent that the Maximum Number of Shares has not been
reached under the foregoing clauses (A), (B) and (C), the shares of Common
Stock, if any, as to which registration has been requested pursuant to written
contractual piggy-

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back registration rights which other shareholders desire to sell that can be
sold without exceeding the Maximum Number of Shares.

               5.2.2 Terms. The Company shall bear all fees and expenses
attendant to registering the Registrable Securities, including the reasonable
expenses of one legal counsel selected by the Holders to represent them in
connection with the registration of the Registrable Securities but the Holders
shall pay any and all underwriting commissions related to the Registrable
Securities. In the event of such a proposed registration, the Company shall
furnish the then Holders of outstanding Registrable Securities with not less
than fifteen (15) days' written notice prior to the proposed date of filing of
such registration statement. Such notice to the Holders shall continue to be
given for each applicable registration statement filed (during the period in
which the Purchase Option is exercisable) by the Company until such time as all
of the Registrable Securities have been registered and sold. The holders of the
Registrable Securities shall exercise the "piggy-back" rights provided for
herein by giving written notice, within ten days of the receipt of the Company's
notice of its intention to file a registration statement. The Company shall
cause any registration statement filed pursuant to the above "piggyback" rights
to remain effective for at least nine months from the date that the Holders of
the Registrable Securities are first given the opportunity to sell all of such
securities. The Company agrees, at its sole expense, to use its reasonable best
efforts to qualify or register the Registrable Securities in such States as are
reasonably requested by the Majority Holder(s); provided, however, that in no
event shall the Company be required to register the Registrable Securities in a
State in which such registration would cause (i) the Company to be obligated to
qualify to do business in such State, or would subject the Company to taxation
as a foreign corporation doing business in such jurisdiction or (ii) the
principal stockholders of the Company to be obligated to escrow their shares of
capital stock of the Company.

          5.3 Equitable Relief. Should the registration or the effectiveness
thereof required by Sections 5.1 and 5.2 hereof be delayed by the Company or the
Company otherwise materially fails to comply with such provisions, the Company
shall, in addition to any other equitable or other relief available to the
Holder(s), be liable for any and all incidental, special and consequential
damages sustained by the Holder(s), including, but not limited to, the loss of
any profits that might have been received by the holder upon the sale of shares
of Common Stock or Warrants (and shares of Common Stock underlying the Warrants)
underlying this Purchase Option.

          5.4 General Terms.

               5.4.1 Indemnification. The Company shall, notwithstanding any
termination of this Purchase Option, indemnify and hold harmless each Holder,
the officers, directors, agents, brokers, investment advisors and employees of
each of them and each person, if any, who controls such Holders within the
meaning of Section 15 of the Act or Section 20(a) of the Securities Exchange Act
of 1934, as amended (the "EXCHANGE ACT"), and the officers, directors, agents
and employees of such controlling person, to the fullest extent permitted by
applicable law, from and against all loss, claim, damage, expense or liability
(including all reasonable attorneys' fees and other expenses reasonably incurred
in investigating, preparing or defending against litigation, commenced or
threatened, or any claim whatsoever whether arising

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out of any action between the underwriter and the Company or between the
underwriter and any third party or otherwise) to which any of them may become
subject under the Act, the Exchange Act or otherwise, arising out of or relating
to such registration statement filed pursuant to this Section 5 and any
prospectus contained in the registration statement or in any amendment or
supplement thereto, except only to the same extent and with the same effect as
the provisions pursuant to which the Company has agreed to indemnify the
underwriters contained in Section 5.1 of the Underwriting Agreement between the
Company, Maxim and the other underwriters named therein dated the Effective
Date. Each Holder of the Registrable Securities to be sold pursuant to such
registration statement, and their successors and assigns, shall severally, and
not jointly, indemnify the Company, its officers and directors and each person,
if any, who controls the Company within the meaning of Section 15 of the Act or
Section 20(a) of the Exchange Act, against all loss, claim, damage, expense or
liability (including all reasonable attorneys' fees and other expenses
reasonably incurred in investigating, preparing or defending against any claim
whatsoever) to which they may become subject under the Act, the Exchange Act or
otherwise, arising from information furnished by or on behalf of such Holders,
or their successors or assigns, in writing, for specific inclusion in such
registration statement to the same extent and with the same effect as the
provisions contained in Section 5.2 of the Underwriting Agreement pursuant to
which the underwriters have agreed to indemnify the Company.

               5.4.2 Exercise of Purchase Options. Nothing contained in this
Purchase Option shall be construed as requiring any Holder to exercise their
Purchase Options or Warrants underlying such Purchase Options prior to or after
the filing of any registration statement or the effectiveness thereof.

               5.4.3 Documents Delivered to Holders. The Company shall furnish
Maxim, as representative of the Holders participating in any of the foregoing
offerings, a signed counterpart, addressed to the participating Holders, of (i)
an opinion of counsel to the Company, dated the effective date of such
registration statement (and, if such registration includes an underwritten
public offering, an opinion dated the date of the closing under any underwriting
agreement related thereto), and (ii) a "cold comfort" letter dated the effective
date of such registration statement (and, if such registration includes an
underwritten public offering, a letter dated the date of the closing under the
underwriting agreement) signed by the independent public accountants who have
issued a report on the Company's financial statements included in such
registration statement, in each case covering substantially the same matters
with respect to such registration statement (and the prospectus included
therein) and, in the case of such accountants' letter, with respect to events
subsequent to the date of such financial statements, as are customarily covered
in opinions of issuer's counsel and in accountants' letters delivered to
underwriters in underwritten public offerings of securities. The Company shall
also deliver promptly to Maxim, as representative of the Holders participating
in the offering, the correspondence and memoranda described below and copies of
all correspondence between the Commission and the Company, its counsel or
auditors and all memoranda relating to discussions with the Commission or its
staff with respect to the registration statement and permit Maxim, as
representative of the Holders, to do such investigation, upon reasonable advance
notice, with respect to information contained in or omitted from the
registration statement as it deems reasonably necessary to comply with
applicable securities laws or rules of the National Association of Securities
Dealers, Inc. (the "NASD"). Such investigation shall include access to

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books, records and properties and opportunities to discuss the business of the
Company with its officers and independent auditors, all to such reasonable
extent and at such reasonable times and as often as Maxim, as representative of
the Holders, shall reasonably request. The Company shall not be required to
disclose any confidential information or other records to Maxim, as
representative of the Holders, or to any other person, until and unless such
persons shall have entered into reasonable confidentiality agreements (in form
and substance reasonably satisfactory to the Company), with the Company with
respect thereto.

               5.4.4 Documents to be Delivered by Holder(s). Each Holder
participating in any of the foregoing offerings shall furnish to the Company a
completed and executed questionnaire provided by the Company requesting
information customarily sought of selling securityholders.

               5.4.5 Underwriting Agreement. The Company shall enter into an
underwriting agreement with the managing underwriter(s), if any, selected by any
Holders, whose Registrable Securities are being registered pursuant to this
Section 5, which managing underwriter shall be reasonably acceptable to the
Company. Such agreement shall be reasonably satisfactory in form and substance
to the Company and its legal counsel, each Holder and such managing
underwriters, and shall contain such representations, warranties and covenants
by the Company and such other terms as are customarily contained in agreements
of that type used by the managing underwriter. The Holders shall be parties to
any underwriting agreement relating to an underwritten sale of their Registrable
Securities and may, at their option, require that any or all the
representations, warranties and covenants of the Company to or for the benefit
of such underwriters shall also be made to and for the benefit of such Holders.
Such Holders shall not be required to make any representations or warranties to
or agreements with the Company or the underwriters except as they may relate to
such Holders and their intended methods of distribution. Such Holders, however,
shall agree to such covenants and indemnification and contribution obligations
for selling stockholders as are customarily contained in agreements of that type
used by the managing underwriter. Further, such Holders shall execute
appropriate custody agreements and otherwise cooperate fully in the preparation
of the registration statement and other documents relating to any offering in
which they include securities pursuant to this Section 5. Each Holder shall also
furnish to the Company such information regarding itself, the Registrable
Securities held by it, and the intended method of disposition of such securities
as shall be reasonably required to effect the registration of the Registrable
Securities.

               5.4.6 Rule 144 Sale. Notwithstanding anything contained in this
Section 5 to the contrary, the Company shall have no obligation pursuant to
Sections 5.1 or 5.2 for the registration of Registrable Securities held by any
Holder (i) where such Holder would then be entitled to sell under Rule 144
within any three month period (or such other period prescribed under Rule 144 as
may be provided by amendment thereof) all of the Registrable Securities held by
such Holder, and (ii) where the number of Registrable Securities held by such
Holder is within the volume limitations under paragraph (e) of Rule 144
(calculated as if such Holder were an affiliate within the meaning of Rule 144).

               5.4.7 Supplemental Prospectus. Each Holder agrees, that upon
receipt of any notice from the Company of the happening of any event as a result
of which the prospectus

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included in the Registration Statement, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing, such Holder will immediately
discontinue disposition of Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities until such Holder's receipt of
the copies of a supplemental or amended prospectus, and, if so desired by the
Company, such Holder shall deliver to the Company (at the expense of the
Company) or destroy (and deliver to the Company a certificate of such
destruction) all copies, other than permanent file copies then in such Holder's
possession, of the prospectus covering such Registrable Securities current at
the time of receipt of such notice.

     6.   Adjustments.

          6.1 Adjustments to Exercise Price and Number of Securities. The
Exercise Price and the number of Units underlying the Purchase Option shall be
subject to adjustment from time to time as hereinafter set forth:

               6.1.1 Stock Dividends - Split-Ups. If after the date hereof, the
number of outstanding shares of Common Stock is increased by a stock dividend
payable in shares of Common Stock or by a split-up of shares of Common Stock or
other similar event, then, on the effective date thereof, the number of shares
of Common Stock underlying each of the Units purchasable hereunder shall be
increased in proportion to such increase in outstanding shares. In such case,
the number of shares of Common Stock, and the exercise price applicable thereto,
underlying the Warrants underlying each of the Units purchasable hereunder shall
be adjusted in accordance with the terms of the Warrants. For example, if the
Company declares a two-for-one stock dividend and at the time of such dividend
this Purchase Option is for the purchase of one Unit at $11.00 per whole Unit
(each Warrant underlying the Units is exercisable for $7.50 per share), upon
effectiveness of the dividend, this Purchase Option will be adjusted to allow
for the purchase of one Unit at $11.00 per Unit, each Unit entitling the holder
to receive two shares of Common Stock and two Warrants (each Warrant exercisable
for $3.75 per share).

               6.1.2 Aggregation of Shares. If after the date hereof, the number
of outstanding shares of Common Stock is decreased by a consolidation,
combination or reclassification of shares of Common Stock or other similar
event, then, on the effective date thereof, the number of shares of Common Stock
underlying each of the Units purchasable hereunder shall be decreased in
proportion to such decrease in outstanding shares. In such case, the number of
shares of Common Stock, and the exercise price applicable thereto, underlying
the Warrants underlying each of the Units purchasable hereunder shall be
adjusted in accordance with the terms of the Warrants.

               6.1.3 Replacement of Securities upon Reorganization, etc. In case
of any reclassification or reorganization of the outstanding shares of Common
Stock other than a change covered by Section 6.1.1 or 6.1.2 hereof or that
solely affects the par value of such shares of Common Stock, or in the case of
any merger or consolidation of the Company with or into another corporation
(other than a consolidation or merger in which the Company is the continuing
corporation and that does not result in any reclassification or reorganization
of the

                                       10

<PAGE>

outstanding shares of Common Stock), or in the case of any sale or conveyance to
another corporation or entity of the property of the Company as an entirety or
substantially as an entirety in connection with which the Company is dissolved,
the Holder of this Purchase Option shall have the right thereafter (until the
expiration of the right of exercise of this Purchase Option) to receive upon the
exercise hereof, for the same aggregate Exercise Price payable hereunder
immediately prior to such event, the kind and amount of shares of stock or other
securities or property (including cash) receivable upon such reclassification,
reorganization, merger or consolidation, or upon a dissolution following any
such sale or transfer, by a Holder of the number of shares of Common Stock of
the Company obtainable upon exercise of this Purchase Option and the underlying
Warrants immediately prior to such event; and if any reclassification also
results in a change in shares of Common Stock covered by Section 6.1.1 or 6.1.2,
then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this
Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to
successive reclassifications, reorganizations, mergers or consolidations, sales
or other transfers.

               6.1.4 Changes in Form of Purchase Option. This form of Purchase
Option need not be changed because of any change pursuant to this Section, and
the Purchase Options issued after such change may state the same Exercise Price
and the same number of Units as are stated in the Purchase Options initially
issued pursuant to this Agreement. The acceptance by any Holder of the issuance
of new Purchase Options reflecting a required or permissive change shall not be
deemed to waive any rights to an adjustment occurring after the Commencement
Date or the computation thereof.

          6.2 Substitute Purchase Option. In case of any consolidation of the
Company with, or merger of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger which does not result
in any reclassification or change of the outstanding Common Stock), the
corporation formed by such consolidation or merger shall execute and deliver to
the Holder a supplemental Purchase Option providing that the holder of each
Purchase Option then outstanding or to be outstanding shall have the right
thereafter (until the stated expiration of such Purchase Option) to receive,
upon exercise of such Purchase Option, the kind and amount of shares of stock
and other securities and property receivable upon such consolidation or merger,
by a holder of the number of shares of Common Stock of the Company for which
such Purchase Option might have been exercised immediately prior to such
consolidation, merger, sale or transfer. Such supplemental Purchase Option shall
provide for adjustments which shall be identical to the adjustments provided in
Section 6. The above provision of this Section shall similarly apply to
successive consolidations or mergers.

          6.3 Elimination of Fractional Interests. The Company shall not be
required to issue certificates representing fractions of shares of Common Stock
or Warrants upon the exercise of the Purchase Option, nor shall it be required
to issue scrip or pay cash in lieu of any fractional interests, it being the
intent of the parties that all fractional interests shall be eliminated by
rounding any fraction up or down to the nearest whole number of Warrants, shares
of Common Stock or other securities, properties or rights.

     7. Reservation and Listing. The Company shall at all times reserve and keep
available out of its authorized shares of Common Stock, solely for the purpose
of issuance upon

                                       11

<PAGE>

exercise of the Purchase Options or the Warrants underlying the Purchase Option,
such number of shares of Common Stock or other securities, properties or rights
as shall be issuable upon the exercise thereof. The Company covenants and agrees
that, upon exercise of the Purchase Options and payment of the Exercise Price
therefor, all shares of Common Stock and other securities issuable upon such
exercise shall be duly and validly issued, fully paid and non-assessable and not
subject to preemptive rights of any stockholder. The Company further covenants
and agrees that upon exercise of the Warrants underlying the Purchase Options
and payment of the respective Warrant exercise price therefor, all shares of
Common Stock and other securities issuable upon such exercise shall be duly and
validly issued, fully paid and non-assessable and not subject to preemptive
rights of any stockholder. As long as the Purchase Options shall be outstanding,
the Company shall use its best efforts to cause all (i) Units and shares of
Common Stock issuable upon exercise of the Purchase Options, (ii) Warrants
issuable upon exercise of the Purchase Options and (iii) shares of Common Stock
issuable upon exercise of the Warrants included in the Units issuable upon
exercise of the Purchase Option to be listed (subject to official notice of
issuance) on all securities exchanges (or, if applicable on the Nasdaq Global
Market, Nasdaq Capital Market, NASD OTC Bulletin Board or any successor trading
market) on which the Units, the Common Stock or the Warrants may then be listed
and/or quoted.

     8. Certain Notice Requirements.

          8.1 Holder's Right to Receive Notice. Nothing herein shall be
construed as conferring upon the Holders the right to vote or consent as a
stockholder for the election of directors or any other matter, or as having any
rights whatsoever as a stockholder of the Company. If, however, at any time
prior to the expiration of the Purchase Options and their exercise, any of the
events described in Section 8.2 shall occur, then, in one or more of said
events, the Company shall give written notice of such event at least fifteen
(15) days prior to the date fixed as a record date or the date of closing the
transfer books for the determination of the stockholders entitled to such
dividend, distribution, conversion or exchange of securities or subscription
rights, or entitled to vote on such proposed dissolution, liquidation, winding
up or sale. Such notice shall specify such record date or the date of the
closing of the transfer books, as the case may be. Notwithstanding the
foregoing, the Company shall deliver to each Holder a copy of each notice given
to the other stockholders of the Company at the same time and in the same manner
that such notice is given to the stockholders.

          8.2 Events Requiring Notice. The Company shall be required to give the
notice described in this Section 8 upon one or more of the following events: (i)
if the Company shall take a record of the holders of its shares of Common Stock
for the purpose of entitling them to receive a dividend or distribution, or (ii)
the Company shall offer to all the holders of its Common Stock any additional
shares of capital stock of the Company or securities convertible into,
exercisable for or exchangeable for shares of capital stock of the Company, or
any option, right or warrant to subscribe therefor, or (iii) a dissolution,
liquidation or winding up of the Company (other than in connection with a
consolidation or merger) or a sale of all or substantially all of its property,
assets and business or a merger of the Company wherein the separate existence of
the Company shall cease shall be proposed.

                                       12

<PAGE>

          8.3 Notice of Change in Exercise Price. The Company shall, promptly
after an event requiring a change in the Exercise Price pursuant to Section 6
hereof, send notice to the Holders of such event and change (a "PRICE NOTICE").
The Price Notice shall describe the event causing the change and the method of
calculating same and shall be certified as being true and accurate by the
Company's President and Chief Financial Officer.

          8.4 Transmittal of Notices. All notices, requests, consents and other
communications under this Purchase Option shall be in writing and shall be
deemed to have been duly made when hand delivered, mailed by express mail or
private courier service, or sent by facsimile transmission, with confirmation of
receipt: (i) If to the registered Holder of the Purchase Option, to the address
and/or fax number of such Holder as shown on the books of the Company, or (ii)
if to the Company, to the following address or fax number or to such other
address or and fax number as the Company may designate by notice to the Holders:

          Alpha Security Group Corporation
          328 West 77th Street
          New York, New York 10024
          Attn: Steven M. Wasserman, Chief Executive Officer
          Fax No.: (212) 877-6249

     9. Miscellaneous.

          9.1 Amendments. The Company and Maxim may from time to time supplement
or amend this Purchase Option without the approval of any of the Holders in
order to cure any ambiguity, to correct or supplement any provision contained
herein that may be defective or inconsistent with any other provisions herein,
or to make any other provisions in regard to matters or questions arising
hereunder that the Company and Maxim may deem necessary or desirable and that
the Company and Maxim deem shall not adversely affect the interest of the
Holders. All other modifications or amendments shall require the written consent
of and be signed by the party against whom enforcement of the modification or
amendment is sought.

          9.2 Headings. The headings contained herein are for the sole purpose
of convenience of reference, and shall not in any way limit or affect the
meaning or interpretation of any of the terms or provisions of this Purchase
Option.

          9.3. Entire Agreement. This Purchase Option (together with the other
agreements and documents being delivered pursuant to or in connection with this
Purchase Option) constitutes the entire agreement of the parties hereto with
respect to the subject matter hereof, and supersedes all prior agreements and
understandings of the parties, oral and written, with respect to the subject
matter hereof.

          9.4 Binding Effect. This Purchase Option shall inure solely to the
benefit of and shall be binding upon, the Holder and the Company and their
permitted assignees, respective successors, legal representative and assigns,
and no other person shall have or be construed to

                                       13

<PAGE>

have any legal or equitable right, remedy or claim under or in respect of or by
virtue of this Purchase Option or any provisions herein contained.

          9.5 Governing Law; Submission to Jurisdiction. This Purchase Option
shall be governed by and construed and enforced in accordance with the laws of
the State of New York, without giving effect to conflict of laws. Each of the
Company and Maxim agree that any action, proceeding or claim against it arising
out of, or relating in any way to this Purchase Option shall be brought and
enforced in the courts of the State of New York located in New York County or of
the United States of America for the Southern District of New York, and
irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive.
Each of the Company and Maxim hereby waives any objection to such exclusive
jurisdiction and that such courts represent an inconvenient forum. Any process
or summons to be served upon the Company may be served by transmitting a copy
thereof by registered or certified mail, return receipt requested, postage
prepaid, addressed to it at the address set forth in Section 8 hereof. Such
mailing shall be deemed personal service and shall be legal and binding upon the
Company in any action, proceeding or claim. The Company and the Holder agree
that the prevailing party(ies) in any such action shall be entitled to recover
from the other party(ies) all of its reasonable attorneys' fees and expenses
relating to such action or proceeding and/or incurred in connection with the
preparation therefor.

          9.6 Waiver, Etc. The failure of the Company or the Holder to at any
time enforce any of the provisions of this Purchase Option shall not be deemed
or construed to be a waiver of any such provision, nor to in any way affect the
validity of this Purchase Option or any provision hereof or the right of the
Company or any Holder to thereafter enforce each and every provision of this
Purchase Option. No waiver of any breach, non-compliance or non-fulfillment of
any of the provisions of this Purchase Option shall be effective unless set
forth in a written instrument executed by the party or parties against whom or
which enforcement of such waiver is sought; and no waiver of any such breach,
non-compliance or non-fulfillment shall be construed or deemed to be a waiver of
any other or subsequent breach, non-compliance or non-fulfillment.

          9.7 Execution. It is agreed that deliver of the Company's signature
hereon by facsimile or other electronic method of delivery shall constitute a
valid signature and delivery.

          9.8 Exchange Agreement. As a condition of the Holder's receipt and
acceptance of this Purchase Option, Holder agrees that, at any time prior to the
complete exercise of this Purchase Option by Holder, if the Company and Maxim
enter into an agreement (an "EXCHANGE AGREEMENT") pursuant to which they agree
that all outstanding Purchase Options will be exchanged for securities or cash
or a combination of both, then Holder shall agree to such exchange and become a
party to the Exchange Agreement.

          9.9 Underlying Warrants. At any time after exercise by the Holder of
this Purchase Option, the Holder may exchange his Warrants for Public Warrants
upon payment to the Company of the difference between the exercise price of his
Warrant and the exercise price of the Public Warrants, if any.

                                       14

<PAGE>

          IN WITNESS WHEREOF, the Company has caused this Purchase Option to be
signed by its duly authorized officer as of the __th day of __________, 2007.

                                        ALPHA SECURITY GROUP CORPORATION

                                        By:
                                            ------------------------------------
                                        Name: Steven M. Wasserman
                                        Title: Chief Executive Officer

                                       15

<PAGE>

                                     ANNEX I

                   Form to be used to exercise Purchase Option

ALPHA SECURITY GROUP CORPORATION

___________________________

___________________________

Date: ________________, 200__

          The undersigned hereby elects irrevocably to exercise all or a portion
of the within Purchase Option and to purchase ____ Units of Alpha Security Group
Corporation and hereby makes payment of $____________ (at the rate of $_________
per Unit) in payment of the Exercise Price pursuant thereto. Please issue the
Common Stock and Warrants as to which this Purchase Option is exercised in
accordance with the instructions given below.

                                       or

          The undersigned hereby elects irrevocably to convert its right to
purchase _________ Units purchasable under the within Purchase Option by
surrender of the unexercised portion of the attached Purchase Option (with a
"Value" based of $_______ based on a "Market Price" of $_______). Please issue
the securities comprising the Units as to which this Purchase Option is
exercised in accordance with the instructions given below.

                                        ----------------------------------------
                                        Signature

                                        ----------------------------------------
                                        Signature Guaranteed

                   INSTRUCTIONS FOR REGISTRATION OF SECURITIES

Name ____________________________________________________________
                  (Print in Block Letters)

Address _________________________________________________________

NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON
THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR
ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER
THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING MEMBERSHIP ON A
REGISTERED NATIONAL SECURITIES EXCHANGE.

<PAGE>

                                    ANNEX II

                    Form to be used to assign Purchase Option

                                   ASSIGNMENT

          (To be executed by the registered Holder to effect a transfer of the
within Purchase Option):

          FOR VALUE RECEIVED,___________________________________________ does
hereby sell, assign and transfer unto______________________________________ the
right to purchase __________ Units of Alpha Security Group Corporation (the
"COMPANY") evidenced by the within Purchase Option and does hereby authorize the
Company to transfer such right on the books of the Company.

Dated: __________________, 200_

                                        ----------------------------------------
                                        Signature

                                        ----------------------------------------
                                        Signature Guaranteed

NOTICE: THE SIGNATURE TO THIS FORM MUST CORRESPOND WITH THE NAME AS WRITTEN UPON
THE FACE OF THE WITHIN PURCHASE OPTION IN EVERY PARTICULAR WITHOUT ALTERATION OR
ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE GUARANTEED BY A BANK, OTHER
THAN A SAVINGS BANK, OR BY A TRUST COMPANY OR BY A FIRM HAVING MEMBERSHIP ON A
REGISTERED NATIONAL SECURITIES EXCHANGE.<PAGE>

                                                                    Exhibit 10.1

                              AMENDED AND RESTATED
                          INVESTMENT ADVISORY AGREEMENT

          AGREEMENT, dated as of March 15, 2007, between Anthracite Capital,
Inc. (the "Company"), a Maryland corporation, and BlackRock Financial
Management, Inc. (the "Investment Manager"), a Delaware corporation.

          WHEREAS, the Company is a real estate finance company that generates
income based on the spread between the interest income on its mortgage loans and
securities investments and the interest expense from borrowings used to finance
its investments. The Company seeks to earn high returns on a risk-adjusted basis
to support a consistent quarterly dividend. The Company expects to qualify for
the tax benefits accorded by Sections 856 through 860 of the Internal Revenue
Code of 1986, as amended (the "Code");

          WHEREAS, the Company desires to retain the Investment Manager to
acquire, sell and otherwise manage the investments of the Company and to perform
certain supervisory services for the Company in the manner and on the terms set
forth herein;

          WHEREAS, the Company and the Investment Manager entered into that
certain Amended and Restated Investment Advisory Agreement, dated as of March
11, 2004 (the "Prior Agreement");

          WHEREAS, the Company and the Investment Manager entered into that
certain (x) Amendment and Extension, dated as of March 31, 2005, to the Prior
Agreement, (y) Second Amendment and Extension, dated as of March 31, 2006, to
the Prior Agreement, as amended, and (z) Third Amendment, dated as of September
8, 2006, to the Prior Agreement, as amended; and

          WHEREAS, the Investment Manager and the Company desire to amend and
restate the Prior Agreement, as amended, in its entirety as set forth below;

          NOW THEREFORE, in consideration of the mutual promises and agreements
herein contained and other good and valuable consideration, the receipt of which
is hereby acknowledged, it is agreed by and between the parties hereto as
follows:

          1.   Certain Definitions

          (a) "Affiliate" means, when used with reference to a specified person,
(i) any person that directly or indirectly controls or is controlled by or is
under common control with

                                      -1-

<PAGE>

the specified person, (ii) any person that is an officer of, partner in or
trustee of, or serves in a similar capacity with respect to, the specified
person or of which the specified person is an officer, partner or trustee, or
with respect to which the specified person serves in a similar capacity and
(iii) any person that, directly or indirectly, is the beneficial owner of 5% or
more of any class of equity securities of the specified person or of which the
specified person is directly or indirectly the owner of 5% or more of any class
of equity securities; provided, however, that neither the Company nor any of its
controlled Affiliates will be treated as an Affiliate of the Investment Manager
or any of its Affiliates.

          (b) "Agreement" means this Amended and Restated Investment Advisory
Agreement, as amended from time to time.

          (c) "Board of Directors" means the Board of Directors of the Company.

          (d) "GAAP" means accounting principles generally accepted in the
United States of America.

          (e) "Mortgage-Backed Securities" means debt obligations (bonds) that
are secured by Mortgage Loans or mortgage certificates.

          (r) "Mortgage Loans" means multifamily, residential and commercial
term loans secured by real property.

          (g) "Quarterly Average Total Stockholders' Equity" means the average
of (i) the Total Stockholders' Equity at the end of the quarter preceding the
applicable quarter and (ii) the Total Stockholders' Equity at the end of the
applicable quarter, as reported in the Company's publicly filed financial
statements.

          (h) "REIT Provisions of the Code" means Sections 856 through 860 of
the Code.

          (i) "Ten-Year U.S. Treasury Rate" means the arithmetic average of the
weekly average yield to maturity for actively traded current coupon U.S.
Treasury fixed interest rate securities (adjusted to constant maturities of ten
years) published by the Federal Reserve Board during a quarter, or if such rate
is not published by the Federal Reserve Board, any Federal Reserve Bank or
agency or department of the federal government selected by the Company. If the
Company determines in good faith that the Ten-Year U.S. Treasury Rate cannot be
calculated as provided above, then the rate shall be the arithmetic average of
the per annum average yields to maturities, based upon closing

                                      -2-

<PAGE>

asked prices on each business day during a quarter, for each actively traded
marketable U.S. Treasury fixed interest rate security with a final maturity date
not less than eight nor more than twelve years from the date of the closing
asked prices as chosen and quoted for each business day in each such quarter in
New York City by at least three recognized dealers in U.S. government securities
selected by the Company.

          (j) "Unaffiliated Directors" shall mean those directors serving on the
Board of Directors who (a) do not own greater than a de minimis interest in the
Investment Manager or any of its Affiliates or (b) within the last two years,
have not directly or indirectly (i) been an officer of or employed by the
Company or the Investment Manager or any of their respective Affiliates, (ii)
been a director of the Investment Manager or any of its Affiliates, (iii)
performed more than a de minimis amount of services for the Investment Manager
or any of its Affiliates or (iv) had any material business or professional
relationship with the Investment Manager or any of its Affiliates.

          (k) "Common Stock" means the common stock, par value $0.001 per share,
of the Company.

          2.   In General

          The Investment Manager agrees, as more fully set forth herein, to act
as investment adviser to the Company with respect to the investment of the
Company's assets and to supervise and arrange the purchase of securities and
loans for and the sale of securities and loans held in the investment portfolio
of the Company. The Investment Manager shall manage the investment assets of the
Company in conformity with the policies that are approved and monitored by the
Board of Directors. The Investment Manager shall prepare regular reports for the
Board of Directors that will review the Company's acquisitions of assets,
portfolio composition and characteristics, credit quality, performance and
compliance with the policies approved by the Board of Directors. The Investment
Manager shall allocate investment and disposition opportunities in accordance
with policies and procedures the Investment Manager considers fair and
equitable, including, without limitation, such considerations as investment
objectives, restrictions and time horizons, availability of cash and the amount
of existing holdings.

          3.   Duties and Obligations of the Investment Manager with Respect to
               Investment of Assets of the Company

          (a) Subject to the succeeding provisions of this Section and subject
to the direction and control of the Board of Directors, the Investment Manager
will be

                                      -3-

<PAGE>

responsible for the day-to-day investment management of the Company and will
perform (or cause to be performed) such services and activities relating to the
investment of assets of the Company as may be appropriate, including, but not
limited to:

          (i) providing a complete program of investing and reinvesting the
capital and assets of the Company in pursuit of the Company's investment
objectives and in accordance with the policies adopted by the Board of Directors
from time to time;

          (ii) serving as the Company's consultant with respect to formulation
of investment criteria and preparation of policy guidelines by the Board of
Directors;

          (iii) assisting the Company in developing criteria for mortgage asset
purchase commitments that are specifically tailored to the Company's investment
objectives and making available to the Company the Company's knowledge and
experience with respect to mortgage assets and other real estate related assets;

          (iv) counseling the Company in connection with investment policy
decisions made by the Board of Directors;

          (v) evaluating and recommending hedging strategies to the Board of
Directors in accordance with hedging guidelines and policies adopted by the
Board of Directors, and engaging in hedging activities on behalf of the Company,
consistent with the Company's status as a REIT;

          (vi) maintaining the Company's exemption from regulation as an
investment company under the Investment Company Act of 1940, as amended (the
"Investment Company Act");

          (vii) representing the Company in connection with the purchase and
commitment to purchase or sell mortgage assets, including the accumulation of
Mortgage Loans for securitization and the incurrence of debt;

          (viii) arranging for the issuance of Mortgage-Backed Securities from
pools of Mortgage Loans owned by the Company;

          (ix) furnishing reports and statistical and economic research to the
Company regarding the Company's activities and the services performed for the
Company by the Investment Manager; and

                                      -4-

<PAGE>

          (x) monitoring and providing to the Board of Directors on an ongoing
basis price information and other data, obtained from certain nationally
recognized dealers that maintain markets in mortgage assets identified by the
Board of Directors from time to time, and providing data and advice to the Board
of Directors in connection with the identification of such dealers.

          (b) In the performance of its duties under this Agreement, the
Investment Manager shall at all times use all reasonable efforts to conform to
and act in accordance with any requirements imposed by (i) the status of the
Company as a REIT as defined in the REIT Provisions of the Code; (ii) the
Company's status as an entity exempt from regulation under the Investment
Company Act; (iii) any other applicable provision of law; (iv) the provisions of
the Articles of Incorporation and By-Laws of the Company, as such documents are
amended from time to time; (v) the investment objectives and policies of the
Company as set forth in its Registration Statement on Form S-11, as such
objectives and policies may thereafter be amended from time to time; and (vi)
any policies and determinations of the Board of Directors.

          (c) The Investment Manager will bear all costs and expenses of the
Investment Manager's officers and employees and any overhead incurred in
connection with the Investment Manager's duties hereunder, the cost of office
space and equipment required for performance of the Investment Manager's duties
and shall bear the costs of any salaries or directors' fees of any officers or
directors of the Company who are Affiliates of the Investment Manager, except
that the Board of Directors may approve reimbursement to the Investment Manager
of the Company's pro rata portion of the salaries, bonuses, health insurance,
retirement benefits and all similar employment costs for the time spent on
Company operations and administration (other than the provision of services
covered by Section 3(a) above) of all personnel employed by the Investment
Manager who devote substantial time to Company operations and administration or
the operations and administration of other companies advised by the Investment
Manager; provided that the Investment Manager shall not be expected to bear the
following expenses: issuance and transaction costs incident to the acquisition,
disposition and financing of investments, legal, accounting and auditing fees
and expenses, the compensation and expenses of the Company's Unaffiliated
Directors, the costs of printing and mailing proxies and reports to
stockholders, costs incurred by employees of the Investment Manager for travel
on behalf of the Company, costs associated with any computer software or
hardware that is used solely for the Company, costs to obtain liability
insurance to indemnify the Company's directors and officers, the Investment
Manager and its employees and directors and any underwriters, and the
compensation and expenses of the Company's custodian and transfer agent, if any.
The Company will also be required to pay all expenses incurred in connection

                                      -5-

<PAGE>

with due diligence, the accumulation of Mortgage Loans, the master and special
servicing of Mortgage Loans, the issuance and administration of Mortgage-Backed
Securities from pools of Mortgage Loans or otherwise, the raising of capital,
the incurrence of debt, the acquisition of assets, interest expenses, taxes and
license fees, non-cash costs, litigation, the base and incentive management fee
and extraordinary or non-recurring expenses.

          (d) The Investment Manager shall give the Company the benefit of its
best judgment and effort in rendering services hereunder.

          (e) Nothing in this Agreement shall prevent the Investment Manager or
any partner, officer, employee or other Affiliate of the Investment Manager from
acting as investment adviser for any other person, firm or corporation, or from
engaging in any other lawful activity, and shall not in any way limit or
restrict the Investment Manager or any of its shareholders, officers, employees
or agents from buying, selling or trading any securities for its or their own
accounts or for the accounts of others for whom it or they may be acting;
provided, however that the Investment Manager will not undertake activities
which, in its judgment, will substantially and adversely affect the performance
of its obligations under this Agreement.

          (f) The Investment Manager shall maintain appropriate books of
accounts and records relating to services performed under this Agreement, and
such books of accounts and records shall be accessible for inspection by
representatives of the Company or any of its subsidiaries at any time during
normal business hours. The Investment Manager shall keep confidential any and
all information obtained in connection with the services rendered under this
Agreement and shall not disclose any such information to nonaffiliated third
parties except with the prior written consent of the Board of Directors or as
may be required by law or order of a court or other tribunal having requisite
jurisdiction.

          (g) The Investment Manager shall require each seller or transferor of
assets to be acquired by the Company to make such representations and warranties
regarding such assets as may be directed by the Board of Directors, or, if no
such directions are given, as may, in the judgment of the Investment Manager, be
necessary and appropriate. In addition, the Investment Manager shall take such
other action as may be directed by the Board of Directors, or, if no such
directions are given, as it deems necessary or appropriate with regard to the
protection of the Company's assets.

                                      -6-

<PAGE>

          4.   Portfolio Transactions and Brokerage

          The Investment Manager is authorized, for the purchase and sale of the
Company's assets, to employ such securities dealers as may, in the judgment of
the Investment Manager, implement the policy of the Company to obtain the best
net results taking into account such factors as price, including dealer spread,
the size, type and difficulty of the transaction involved, the firm's general
execution and operational facilities and the firm's risk in positioning the
securities involved and is authorized to direct the execution of such
transactions, in compliance with applicable law to dealers and brokers that are
affiliates of, or have a financial interest in, the Investment Manager or its
affiliates ("Affiliated Broker-Dealers"). The Investment Manager and any
Affiliated Broker-Dealers are also hereby authorized by the Company to execute
agency cross transactions on the Company's behalf. Agency cross transactions may
facilitate a purchase or sale of a block of securities at a predetermined price
and may avoid unfavorable price movements which might otherwise be suffered if
the purchase or sale order were exposed to the market. However, the Manager and
its Affiliated Broker-Dealers may receive commissions from, and therefore may
have a potentially conflicting division of loyalties and responsibilities
regarding, both parties to an agency cross transaction. The Company understands
that its authority to the Investment Manager to effect agency cross transactions
for the Company is terminable at will without penalty, effective upon receipt by
the Investment Manager of written notice from the Company. If the Company's
assets are subject to Section 11(a) of the Exchange Act and Rule 11a2-2(T)
thereunder, the Company authorizes the Investment Manager's Affiliated
Broker-Dealers that may be members of a U.S. securities exchange, or have the
right to trade on such an exchange, to execute transactions on such exchange for
the Company. Consistent with this policy, the Investment Manager is authorized
to direct the execution of the Company's portfolio transactions to dealers and
brokers furnishing statistical information or research deemed by the Investment
Manager to be useful or valuable to the performance of the Investment Manager's
investment advisory functions for the Company.

          5.   Compensation of the Investment Manager

          (a) The Company agrees to pay to the Investment Manager and the
Investment Manager agrees to accept as full compensation for all services
rendered by the Investment Manager as such, (i) a quarterly base management fee
calculated as 2% of the Quarterly Average Total Stockholders' Equity for the
applicable quarter and (ii) incentive compensation in an amount equal to the
product of 25% of the dollar amount by which:

                                      -7-

<PAGE>

     (1) net income of the Company (before incentive fee) determined in
     accordance with GAAP

     exceeds

     (2) an amount equal to (A) the weighted average of the price per share of
     the Common Stock in the initial public offering and the prices per share of
     Common Stock in any secondary offerings of Common Stock by the Company,
     including, without limitation, issuances of Common Stock pursuant to the
     Company's Dividend Reinvestment and Stock Purchase Plan, private
     placements, public offerings and exercises of options granted under the
     Company's 1998 Stock Option Plan, multiplied by (B) the greater of: (i)
     8.5% or (ii) the Ten-Year U.S. Treasury Rate plus 4.0% per annum (expressed
     as a quarterly percentage) multiplied by (C) the weighted average number of
     shares of Common Stock outstanding during such quarter.

          Calculation of the incentive fee payable to the Investment Manager
shall be calculated using a rolling four-quarter high watermark (the
"Watermark"). In determining the Watermark, the Investment Manager shall
calculate the incentive fee based upon the current and prior three quarters' net
income (the "Yearly Incentive Fee"). The Company shall pay the Investment
Manager an incentive fee in the current quarter if the Yearly Incentive Fee is
greater than the amount the Company paid to the Investment Manager in the prior
three quarters cumulatively. Calculation of the incentive fee shall be based on
GAAP and adjusted to exclude special one-time events pursuant to changes in GAAP
accounting pronouncements, or other one-time events, after discussion between
the Investment Manager and the Unaffiliated Directors.

          For any period less than a fiscal quarter during which this Agreement
is in effect, the fee shall be prorated according to the proportion which such
period bears to a full quarter of 90, 91 or 92 days, as the case may be.

          (c) The management fees earned under Section 5(a)(i) will be payable
in arrears. The Investment Manager shall compute the compensation payable under
Section 5(a) of this Agreement within 45 days after the end of each calendar
quarter. A copy of the computations made by the Investment Manager to calculate
its compensation shall thereafter promptly be delivered to the Board of
Directors and, upon such delivery, payment of the compensation earned under
Section 5(a) of this Agreement shown therein shall be due and payable within 60
days after the end of such fiscal quarter. If requested by the Investment
Manager, the Company will make advance payments of the base

                                      -8-

<PAGE>

management fee in Section 5(a)(i) above as often as semi-monthly at the rate of
75% of such fee estimated by the Investment Manager.

          (d) The base management fee is intended to compensate the Investment
Manager for its costs in providing investment management services to the
Company. The Board of Directors may adjust the base management fee with the
consent of the Investment Manager in the future if necessary to align the fee
more closely with the costs of such services.

          (e) Thirty percent (30%) of the incentive fee shall (subject to the
other provisions of this Section 5) be payable to the Investment Manager in
Common Stock, and the remainder thereof shall be paid in cash; provided,
however, that payment of the incentive fee shall be paid in Common Stock as
aforesaid only when the issue price (as determined pursuant to paragraph (f)
below) on the relevant quarter end date exceeds the published GAAP book value
per share of Common Stock on the same quarter end date. Any shares issued
pursuant to this provision shall be issued pursuant to the Anthracite 2006 Stock
Award and Incentive Plan approved by the Company's stockholders at the Company's
2006 Annual Meeting or applicable subsequent comparable or substitute plan.

          (f) Common Stock payable as a portion of the incentive fee shall be
payable in accordance with the same schedule established by the Company in
connection with its Dividend Reinvestment and Stock Purchase Plan for the first
month following the applicable quarter end.

          (g) The Company shall pay to the Investment Manager a number of shares
of Common Stock equal to one half of one percent (.05%) of the total number of
shares of Common Stock outstanding as of December 31 each year in which this
Agreement is in effect. Any shares of Common Stock issued pursuant to this
provision shall be issued pursuant to the Anthracite 2006 Stock Award and
Incentive Plan approved by the Company's stockholders at the Company's 2006
Annual Meeting or applicable subsequent comparable or substitute plan.

          (h) The Investment Manager's receipt of Common Stock in accordance
herewith shall be subject to all applicable securities laws (including, without
limitation, prohibitions on insider trading), and all further restrictions as
shall be deemed necessary or advisable by the Board of Directors. The Investment
Manager shall have the right to allocate such shares in its sole and absolute
discretion to its officers, employees and other individuals who provide services
to the Investment Manager, subject to the same restrictions as above.

                                      -9-

<PAGE>

          6.   Indemnity

          (a) The Company hereby agrees to indemnify the Investment Manager and
each of the Investment Manager's shareholders, officers, employees, agents,
associates and controlling persons and the shareholders, officers, employees and
agents thereof (including any individual who serves at the Investment Manager's
request as director, officer, partner, trustee or the like of another
corporation) (each such person being an "indemnitee") against any liabilities
and expenses, including amounts paid in satisfaction of judgments, in compromise
or as fines and penalties, and counsel fees (all as provided in accordance with
applicable corporate law) reasonably incurred by such indemnitee in connection
with the defense or disposition of any action, suit or other proceeding, whether
civil or criminal, before any court or administrative or investigative body in
which he may be or may have been involved as a party or otherwise or with which
he may be or may have been threatened, while acting in any capacity set forth
above in this Section 6 or thereafter by reason of his having acted in any such
capacity, except with respect to any matter as to which he shall have been
adjudicated not to have acted in good faith in the reasonable belief that his
action was in the best interests of the Company and furthermore, in the case of
any criminal proceeding, so long as he had no reasonable cause to believe that
the conduct was unlawful; provided, however, that (1) no indemnitee shall be
indemnified hereunder against any liability to the Company or its stockholders
or any expense of such indemnitee arising by reason of (i) willful misfeasance,
(ii) bad faith, (iii) gross negligence or (iv) reckless disregard of the duties
involved in the conduct of his position (the conduct referred to in such clauses
(i) through (iv) being sometimes referred to herein as "disabling conduct"), (2)
as to any matter disposed of by settlement or a compromise payment by such
indemnitee, pursuant to a consent decree or otherwise, no indemnification either
for such payment or for any other expenses shall be provided unless there has
been a determination that such settlement or compromise is in the best interests
of the Company and that such indemnitee appears to have acted in good faith in
the reasonable belief that his action was in the best interests of the Company
and did not involve disabling conduct by such indemnitee and (3) with respect to
any action, suit or other proceeding voluntarily prosecuted by any indemnitee as
plaintiff, indemnification shall be mandatory only if the prosecution of such
action, suit or other proceeding by such indemnitee was authorized by a majority
of the Board of Directors.

          (b) The Company shall make advance payments in connection with the
expenses of defending any action with respect to which indemnification might be
sought hereunder if the Company receives a written affirmation of the
indemnitee's good faith belief that the standard of conduct necessary for
indemnification has been met and a

                                      -10-

<PAGE>

written undertaking to reimburse the Company unless it is subsequently
determined that he is entitled to such indemnification and if a majority of the
Board of Directors determine that the facts then known to them would not
preclude indemnification. In addition, at least one of the following conditions
must be met: (A) the indemnitee shall provide a security for his undertaking,
(B) the Company shall be insured against losses arising by reason of any lawful
advances or (C) a majority of a quorum consisting of directors of the Company
who are neither affiliated persons of the Company nor parties to the proceeding
("Disinterested Non-Party Directors") or an independent legal counsel in a
written opinion, shall determine, based on a review of readily available facts
(as opposed to a full trial-type inquiry), that there is reason to believe that
the indemnitee ultimately will be found entitled to indemnification.

          (c) All determinations with respect to indemnification hereunder shall
be made (1) by a final decision on the merits by a court or other body before
whom the proceeding was brought that such indemnitee is not liable by reason of
disabling conduct or (2) in the absence of such a decision, by (i) a majority
vote of a quorum of the Disinterested Non-Party Directors of the Company or (ii)
if a majority vote of such quorum so directs, independent legal counsel in a
written opinion. All determinations that advance payments in connection with the
expense of defending any proceeding shall be authorized shall be made in
accordance with the immediately preceding clause (2).

          (d) The rights accruing to any indemnitee under these provisions shall
not exclude any other right to which he may be lawfully entitled.

          7.   Duration and Termination

          This Agreement shall commence on the date hereof for an initial term
expiring on March 31, 2008. Thereafter, successive extensions, each for a period
not to exceed one year, may be made by agreement between the Company and the
Investment Manager, with the approval of a majority of the Unaffiliated
Directors until terminated or assigned under the provisions of this Section 7 or
Section 9, as the case may be, of this Agreement.

          Upon termination of this Agreement by the Company, the Company is
obligated to pay the Investment Manager a termination fee that will be
determined by independent appraisal other than in the case of termination by the
Company for cause (as described below). The Company may terminate, or decline to
renew the term of, this Agreement without cause at any time upon 60 days'
written notice by a majority vote of the Unaffiliated Directors; provided that
the Company shall pay the Investment Manager a

                                      -11-

<PAGE>

termination fee determined by independent appraisal of the value of this
Agreement. Such appraisal is to be conducted by a nationally recognized
appraisal firm mutually agreed upon by the Company and the Investment Manager.
If the Company and the Investment Manager are unable to agree upon an appraisal
firm, then each of the Company and the Manager is to choose an independent
appraisal firm to conduct an appraisal. In such event, (i) if the appraisals
prepared by the two appraisers so selected are the same or differ by an amount
that does not exceed 20% of the higher of the two appraisals, the termination
fee is to be deemed to be the average of the appraisals as prepared by each
party's chosen appraiser and (ii) if these two appraisals differ by more than
20% of such higher amount, the two appraisers together are to select a third
appraisal firm to conduct an appraisal. If the two appraisers are unable to
agree as to the identity of such third appraiser, either of the Investment
Manager and the Company may request that the American Arbitration Association
("AAA") select the third appraiser. The termination fee then is to be the amount
determined by such third appraiser, but in no event shall the termination fee be
less than the lower of the two initial appraisals or more than the higher of
such two initial appraisals. Each party shall pay the costs of the appraisers
chosen by it, and each party shall pay one half of the costs of the third
appraiser. Any appraisal hereunder shall be performed no later than 45 days
following selection of the appraiser or appraisers.

          At the option of the Company, this Agreement, or any extension hereof,
shall be and become terminated with cause upon 60 days' prior written notice of
termination from the Board of Directors to the Investment Manager, without
payment of any termination fee, if any of the following events occur: (i) if the
Investment Manager commits a material breach of any provision of this Agreement
(including any material breach of the provisions contained in Section 3(a) and
(b) herein) and, after notice of such violation, shall not cure such violation
within 30 days; or (ii) there is entered an order for relief or similar decree
or order with respect to the Investment Manager by a court having competent
jurisdiction in an involuntary case under the federal bankruptcy laws as now or
hereafter constituted or under any applicable federal or state bankruptcy,
insolvency or other similar laws; or the Investment Manager (A) ceases, or
admits in writing its inability, to pay its debts as they become due and
payable, or makes a general assignment for the benefit of, or enters into any
composition or arrangement with, creditors; (B) applies for, or consents (by
admission of material allegations of a petition or otherwise) to the appointment
of a receiver, trustee, assignee, custodian, liquidator or sequestrator (or
other similar official) of the Investment Manager or of any substantial part of
its properties or assets, or authorizes such an application or consent, or
proceedings seeking such appointment are commenced without such authorization,
consent or application against the Investment Manager and continue undismissed
for 30 days; or (C) authorizes or files a voluntary petition in bankruptcy, or
applies for or consents (by admission of material

                                      -12-

<PAGE>

allegations of a petition or otherwise) to the application of any bankruptcy,
reorganization, arrangement, readjustment of debt, insolvency, dissolution,
liquidation or other similar law of any jurisdiction, or authorizes such
application or consent, of proceedings to such end are instituted against
application or consent, or proceedings to such end are instituted against the
Investment Manager without such authorization, application or consent and are
approved as properly instituted and remain undismissed for 30 days or result in
adjudication of bankruptcy or insolvency; or (D) permits or suffers all or any
substantial part of its properties or assets to be sequestered or attached by
court order and the order remains undismissed for 30 days.

          The Investment Manager agrees that if any of the events specified
above occur, it will give prompt written notice thereof to the Board of
Directors after the occurrence of such event.

          Upon written request from the Company, the Investment Manager shall
prepare, execute and deliver to a successor manager any and all documents and
other instruments, place in such successor manager's possession all files and do
or cause to be done all other acts or things necessary or appropriate to effect
the purposes of such notice of termination, to the successor manager at the
Investment Manager's sole expense; provided, however, that the Investment
Manager shall be entitled to retain copies of all such documents and other
instruments as it may be required by federal or state law. The Investment
Manager agrees to cooperate with Company and such successor manager in effecting
the termination of the Investment Manager's responsibilities and rights under
this Agreement.

          8.   Action Upon Termination.

          From and after the effective date of termination of this Agreement
pursuant to Section 7 hereof, the Investment Manager shall not be entitled to
compensation for further services under this Agreement, but shall be paid all
compensation accruing to the date of termination and, if such termination is not
for cause, the termination fee determined pursuant to Section 7. The Investment
Manager shall forthwith upon such termination deliver to the Board of Directors
all funds and property, documents, corporate records, reports and software of
the Company or any subsidiary of the Company then in the custody of Investment
Manager; provided, however, that the Investment Manager shall be entitled to
retain copies of all such documents and other instruments as it may be required
by federal or state law.

                                      -13-

<PAGE>

          9.   Assignment

          This Agreement may not be assigned without the prior written consent
of all the parties to this Agreement. For the foregoing purposes, "assigned"
shall have the meaning ascribed to it under the Investment Advisers Act of 1940,
as amended, and the rules promulgated thereunder.

          10.  Notices

          Any notice under this Agreement shall be in writing to the other party
at such address as the other party may designate from time to time for the
receipt of such notice and shall be deemed to be received on the earlier of the
date actually received or on the fourth day after the postmark if such notice is
mailed first class postage prepaid.

          11.  Governing Law

          This Agreement shall be construed in accordance with the laws of the
State of New York for contracts to be performed entirely therein without
reference to choice of law principles thereof.

          12.  Amendments

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

          13.  Severability

          The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity of any other provision, and all other provisions
shall remain in full force and effect.

          14.  Entire Agreement

          This instrument contains the entire agreement between the parties as
to the rights granted and the obligations assumed in this instrument.

                                      -14-

<PAGE>

          15.  Counterparts

          This Agreement may be signed by the parties in counterparts which
together shall constitute one and the same agreement among the parties.

          16.  Manager Brochure

          The Company hereby acknowledges that it has received from the
Investment Manager a copy of the Investment Manager's Form ADV, Part II, at
least forty-eight hours prior to entering into this Agreement.

                                      -15-

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused the foregoing
instrument to be executed by their duly authorized officers, all as of the date
and the year first above written.

                                        ANTHRACITE CAPITAL, INC.

                                        By: /s/ Chris A. Milner
                                            ------------------------------------
                                        Name: Chris A. Milner
                                        Title: Chief Executive Officer

                                        BLACKROCK FINANCIAL MANAGEMENT, INC.

                                        By: /s/ Ralph L. Schlosstein
                                            ------------------------------------
                                        Name: Ralph L. Schlosstein
                                        Title: President

                                      -16-

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