Document:

B
      & D FOOD CORPORATION

     

    

    The
      2006 Global Stock and Option Plan 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    This
      plan, as amended from time to time, shall be known as the B & D Food
      Corporation 2006 Global Stock and Option Plan (the “Plan”).

     

    1. PURPOSE
      OF THE PLAN

     

    The
      Plan is intended to provide an incentive to retain, in the employ of the Company
      (as defined below) and its affiliates, persons of training, experience and
      ability;
      to
      attract new employees, directors, consultants and
      service
      providers;
      to
      encourage the sense of proprietorship of such persons;
      and
      to stimulate the active interest of such persons in the development and
      financial success of the Company by providing them with opportunities to
      purchase stock in
      the
      Company. 2.

     

    DEFINITIONS

     

    For
      purposes of interpreting the Plan and related documents (including the Award
      Agreement and its appendixes), the following definitions shall
      apply:

    

      
        	 	
                2.1

              	
                “Award”
                  means an
                  Option and/or Stock granted to a Grantee, as the case may be, under
                  the
                  Plan.

              
	 	 	 
	 	
                2.2

              	
                “Award
                  Agreement”
                  means the Stock and/or Option Agreement between the Company and
                  a Grantee
                  that evidences and sets out the terms and conditions of an
                  Award.

              
	 	 	 
	 	
                2.3

              	
                “Board”
                  means
                  the Board of Directors of the Company.

              
	 	 	 
	 	
                2.4

              	
                “Cause”
                  means
                  (i) conviction of any felony involving moral turpitude or affecting
                  the
                  Company or its affiliates; (ii) any refusal to carry out a reasonable
                  directive of the Company’s Chief Executive Officer, Board or theGrantee’s
                  direct supervisor, which involves the business of the Company or
                  its
                  affiliates and was capable of being lawfully performed; (iii) embezzlement
                  of funds of the Company or its affiliates; (iv) any breach of theGrantee’s
                  fiduciary duties or duties of care of the Company
                  or
                  its affiliates;
                  including without limitation disclosure of confidential information
                  of the
                  Company or its affiliates; and (v) any conduct (other than conduct
                  in good
                  faith) reasonably determined by the Board to be materially detrimental
                  to
                  the Company or its affiliates. 

              
	 	 	 
	 	
                2.5

              	
                “Chairman”
                  means
                  the Chairman of the Committee.

              
	 	 	 
	 	
                2.6

              	
                “Committee”
                  means a compensation committee of the Board, designated from time
                  to time
                  by the resolution of the Board, which shall consist of no fewer
                  than two
                  members of the Board. 

              
	 	 	 
	 	
                2.7

              	
                “Company”
                  means   B
                  & D Food Corporation.

              
	 	 	 
	 	
                2.8

              	
                “Date
                  of Grant”
                  means the date determined by the Board or authorized Committee
                  as set
                  forth in the Award Agreement. 

              
	 	 	 

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              2.9

            	
              “Employee”
                means a person who is employed by the Company or any
                affiliate. 

            
	 	 	 	 	 
	 	
              2.10

            	
              “Expiration
                date”
                means the date upon which an Option shall expire, as set forth in
                Section
                8.2 of the Plan. 

            
	 	 	 	 	 
	 	
              2.11
                

            	
              “Fair
                Market Value”
                means as of any date, the value of a Stock determined as follows:
                

            
	 	 	 	 	 
	 	
               

            	
              
                (i)

              

            	If
              the Stock are listed on any established stock exchange or a national
              market system, including without limitation the Tel-Aviv Stock Exchange,
              the NASDAQ National Market System
              or
              the
              NASDAQ SmallCap Market,
              the Fair Market Value shall be the last
              reported sale
              price for such Stock (or the highest
              closing
              bid, if no sales were reported), as quoted on such exchange or system
              for
              the last market trading day prior to time of determination, as reported
              in
              The
              Wall Street Journal, or such other source as the Board deems
              reliable;
	 	 	 	 
	 	
               

            	
              
                (ii)

              

            	If
              the Stock are regularly quoted by one
              or more
              recognized securities dealers,
              but
              selling prices are not reported, the Fair Market Value shall be the
              mean
              between the highest
              bid and lowest
              asked prices for the Stock on the last market trading day prior to
              the day
              of determination;
              or
	 	 	 	 
	 	
               

            	
              (iii)

            	In
              the
              absence of an established market for the Stock, the Fair Market Value
              thereof shall be determined in good faith by the Board.
	 	 	 	 
	 	
              2.12

            	
              “Grantee”
                means a person who receives or holds an Award under the
                Plan.

            
	 	 	 	 	 
	 	
              2.13

            	
              “Option”
                means an option to purchase one or more Stock
                pursuant to the Plan.

            
	 	 	 	 	 
	 	
              2.14

            	
              “Option
                Agreement” means
                the option agreement between the Company and a Grantee that evidences
                and
                sets out the terms and conditions of an Option.

            
	 	 	 	 	 
	 	
              2.15

            	
              “Stock
                Agreement” means
                the stock agreement between the Company and a Grantee that evidences
                and sets out the terms and conditions of a Stock.

            
	 	 	 	 	 
	 	
              2.16

            	
              “Plan”
                means the Company’s 2006 Global Stock and Option Plan.

            
	 	 	 	 	 
	 	
              2.17

            	
              “Purchase
                Price”
                means the price for each Stock subject to an Award.

            
	 	 	 	 	 
	 	
              2.18

            	
              “Service
                Provider” means
                a director, consultant or adviser of the Company or any
                affiliate, or any other person who is not an Employee.

            
	 	 	 	 	 
	 	
              2.19

            	
              “Stock”
                means the common stock, $ 0.01 par value, of the Company.
                

            
	 	 	 	 	 
	 	
              2.20

            	
              “Successor
                Company” means
                any entity into
                which the
                Company is merged to or by
                which the
                Company is
                acquired.
                

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              2.21

            	
              “Transaction”
                means
                (i)
                merger, acquisition or reorganization of the Company with one or
                more
                other entities in which the Company is not the surviving entity,
                (ii) a
                sale of all or substantially all of the assets or stock of the Company
                to
                another entity. 

            
	 	 	 	 	 
	 	
              2.22

            	
              “Vested
                Award”
                means any Award, which has already been vested according to the Vesting
                Dates. 

            
	 	 	 	 	 
	 	
              2.23

            	
              “Vesting
                Dates”
                means, as determined by the Board or authorized Committee, the date
                as of
                which the Grantee shall be entitled to exercise the Awards as set
                forth in
                Section
                10
                of the Plan.

            
	 	 	 	 	 
	
              3.

            	
              ADMINISTRATION
                OF THE PLAN

            
	 	 	 	 	 
	 	
              3.1
                

            	
              The
                Board shall have the power to administer the Plan. To the extent
                permitted
                under applicable law, the Board may delegate its powers under the
                Plan, or
                any part thereof, to the Committee, in which case, any reference
                to the
                Board in the Plan with respect to the rights so delegated shall be
                construed as reference to the Committee. Notwithstanding the foregoing,
                the Board shall automatically have residual authority (i) if no Committee
                shall be constituted, (ii) with respect to rights not delegated by
                the
                Board to the Committee, or (iii) if such Committee shall cease to
                operate
                for any reason whatsoever. 

            
	 	 	 	 	 
	 	
              3.2
                

            	
              The
                Committee, if appointed, shall select one of its members as its Chairman
                and shall hold its meetings at such times and places as the Chairman
                shall
                determine. The Committee shall keep records of its meetings and shall
                make
                such rules and regulations for the conduct of its business as it
                shall
                deem advisable.

            
	 	 	 
	 	
              3.3

            	
              The
                Committee shall have full power and authority subject
                to the approval of the Board to the extent required under applicable
                law
                (and subject further to applicable laws): (i) to
                designate Grantees;
                (ii) to determine the terms and provisions of respective Award Agreements
                (which need not be identical) including, but not limited to, the
                number of
                Stock to
                be covered by each Award, provisions concerning the time or times
                when and
                the extent to which the Award may be exercised and the nature and
                duration
                of restrictions as to transferability or restrictions constituting
                substantial risk of forfeiture; (iii) to accelerate the right of
                a Grantee
                to exercise, in whole or in part, any previously granted Award; (iv)
                to
                interpret the provisions and supervise the administration of the
                Plan; (v)
                to determine the Fair Market Value of the Stock; (vi) to designate
                the
                type of Award to be granted to a Grantee; (vii) to determine any
                other
                matter which is necessary or desirable for, or incidental to,
                the
                administration of the Plan.

            
	 	 	 
	 	
              3.4

            	
              The
                Board and/or the Committee shall have the authority to grant, at
                its
                discretion, to the holder of an outstanding Award, in exchange for
                the
                surrender and cancellation of such Award, a new Award having a purchase
                price equal to, lower than or higher than the Purchase Price of the
                original Award so surrendered and canceled, and containing such other
                terms and conditions or to change the Purchase Price, as the Committee
                may
                prescribe in accordance with the provisions of the
                Plan.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

    

    
      	 	
              3.5

            	
              Subject
                to the Company’s incorporation documents, all decisions and selections
                made by the Board or the Committee pursuant to the provisions of
                the Plan
                shall be made by a majority of its members except that no member
                of the
                Board or the Committee shall vote on, or be counted for quorum purposes,
                with respect to any proposed action of the Board or the Committee
                relating
                to any Award to be granted to that member. Any decision reduced to
                writing
                shall be executed in accordance with the provisions of the Company’s
                incorporation documents, as the same may be in effect from time to
                time.

            
	 	 	 
	 	
              3.6

            	
              The
                interpretation and construction by the Committee of any provision
                of the
                Plan or of any Award Agreement thereunder shall be final and conclusive
                unless otherwise determined by the Board. 

            
	 	 	 
	 	
              3.7

            	
              Subject
                to the Company’s incorporation documents and the Company’s decision, and
                to all approvals legally required, each member of the Board or the
                Committee shall be indemnified and held harmless by the Company against
                any cost or expense (including counsel fees) reasonably incurred
                by him,
                or any liability (including any sum paid in settlement of a claim
                with the
                approval of the Company) arising out of any act or omission to act
                in
                connection with the Plan unless arising out of such member's own
                fraud or
                bad faith, to the extent permitted by applicable law. Such indemnification
                shall be in addition to any rights of indemnification the member
                may have
                as a director or otherwise under the Company's incorporation documents,
                any agreement, any vote of stockholders or disinterested directors,
                insurance policy or otherwise.

            
	 	 	 	 	 
	4.	
              DESIGNATION
                OF PARTICIPANTS

            
	 	 	 	 	 
	 	 	
              The
                persons eligible for participation
                in
                the Plan shall
                include
                Employees and/or Service Providers.
                The grant of an Award hereunder shall neither entitle the Grantee
                to
                participate nor disqualify him
                or
                her
                from participating in, any other grant of Award pursuant to the Plan
                or
                any other option or share plan of the Company or any of its
                affiliates.

            
	 	 	 
	5.	
              STOCK
                RESERVED FOR THE PLAN

            
	 	 	 	 	 
	 	
              5.1

            	
              The
                Company has reserved 10,000,000 (ten million) authorized but unissued
                Stock for the purposes of the Plan and for the purpose of the Company’s
                other stock option plans when applicable, subject to adjustment as
                set
                forth in Section
                7
                below. Any Stock which remain unissued and which are not subject
                to
                outstanding Options at the termination of the Plan shall cease to
                be
                reserved for the purpose of the Plan, but until termination of the
                Plan
                the Company shall at all times reserve a
                sufficient
                number of Stock to meet the requirements of the Plan. Should any
                Option
                for any reason expire or be canceled prior to its exercise or
                relinquishment in full, the
                Stock or
                Stock subject to such Option may again be subjected to an Option
                under the
                Plan or under future plans.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              5.2

            	
              Each
                Award granted pursuant to the Plan, shall be evidenced by a written
                Award
                Agreement between the Company and the Grantee, in such form as the
                Board
                shall from time to time approve. Each Award Agreement shall state,
                inter
                alia, the number of Stock to which the Option relates, the type of
                Award
                granted thereunder, the Vesting Dates, the Purchase Price per Stock
                and
                the Expiration Date.

            
	 	 	 	 	 
	6.	
              PURCHASE
                PRICE

            
	 	 	 
	 	
              6.1

            	
              The
                Purchase Price of each Stock subject to an Award shall be determined
                by
                the Committee in its sole and absolute discretion in accordance with
                applicable law, subject to any guidelines as may be determined by
                the
                Board from time to time and shall be paid by the Grantee either at
                the
                Date of Grant of the Award or at the date of exercise of the Award,
                as the
                case may be. Each Award Agreement will contain the Purchase Price
                determined for each Grantee. 

            
	 	 	 	 	 
	 	
              6.2

            	
              Without
                derogating from the above and in addition thereto, the
                Purchase Price of
                each Stock subject to an Option
                shall be payable upon the exercise of an Option in the following
                acceptable forms of payment: 

            
	 	 	 	 	 
	 	
                

            	
              (i)

            	
              cash,
                check or wire transfer.

            
	 	 	 	 	 
	 	
               

            	
              
                (ii)

              

            	at
              the discretion of the Committee, through delivery of Stock (including
              other Stock subject to the Options being exercised) having a Fair Market
              Value equal as of the date of exercise to the Purchase Price of the
              Stock
              purchased and acquired upon the exercise of the Option, or by
              a different form of cashless exercise method through a third party
              broker
              as approved by the Committee.
	 	 	 	 	 
	 	
               

            	
              
                (iii)

              

            	at
              the discretion of the Committee, any combination of the methods of
              payment
              permitted by any paragraph of this Section 6.2.
	 	 	 	 	 
	 	
              6.3

            	
              The
                Purchase
                Price shall be denominated in the currency of the primary economic
                environment of, at the Company’s discretion, either the Company or the
                Employee (that is the functional currency of the Company or the currency
                in which the Employee is paid).

            
	 	 	 
	
              7.

            	
              
                ADJUSTMENTS

              

            
	 	 	 	 	 
	 	
              Upon
                the occurrence of any of the following described events, Grantee's
                rights
                to Awards under the Plan shall be adjusted as hereafter
                provided:

            
	 	 	 	 	 
	 	
              7.1

            	
              In
                the event of Transaction, the unexercised Award then outstanding
                under the
                Plan shall be assumed or substituted for an appropriate number of
                Award of
                each class of Award or other securities of the Successor Company
                (or a
                parent or subsidiary of the Successor Company) as were distributed
                to the
                stockholders of the Company in connection and with respect to the
                Transaction. In the case of such assumption and/or substitution of
                Awards,
                appropriate adjustments shall be made so as to reflect such action
                (such
                as to the Purchase Price, as the case may be) and all other terms
                and
                conditions of the Award Agreements shall remain unchanged, including
                but
                not limited to the vesting schedule, all subject to the determination
                of
                the Committee or the Board, which determination shall be in their
                sole
                discretion and final.
                The Company shall notify the Grantee
                of
                the Transaction in such form and method as it deems applicable at
                least
                ten (10) days prior to the effective date of such
                Transaction

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              7.2

            	
               Notwithstanding
                the above and subject to all applicable law, the Board or the Committee
                shall have the power and authority to determine that in certain Award
                Agreements there shall be a clause instructing that if in any Transaction
                the Successor Company (or parent or subsidiary of the Successor Company)
                does not agree to assume or substitute the Award, the Vesting Dates
                of
                outstanding Award shall be accelerated so that any unvested Award
                or any
                portion thereof shall be immediately vested as of the date which
                is ten
                (10) days prior to the effective date of the
                Transaction.   

            
	 	 	 	 	 
	 	
              7.3

            	
              For
                the purposes of Section
                7.1 above, an Award shall be considered
                assumed or
                substitute if,
                following the Transaction,
                the Award shall confer the right, subject to such Award’s original vesting
                schedule, to
                purchase or receive, for each Stock underlying such
                Award immediately prior to the Transaction, the consideration (whether
                stock, options, cash, or other securities or property) received in
                the
                Transaction by the holders
                of
                stock for each Stock
                held on the effective date of the Transaction (and if such holders
                were
                offered a choice of consideration, the type of consideration chosen
                by the
                holders of a majority of the outstanding Stock);
                provided, however, that if such consideration received in the Transaction
                is not solely stock of common stock (or their equivalent) of the
                Successor
                Company or its parent or subsidiary, the Committee may, with the
                consent
                of the Successor Company, provide for the consideration to be received
                upon the exercise of the Award to be solely stock of common stock
                (or
                their equivalent) of the Successor Company or its parent or subsidiary
                equal in Fair Market Value to the per Stock
                consideration received by holders of a majority of the outstanding
                stock
                in the Transaction; and provided further that the Committee may determine,
                in its discretion, that in lieu of such assumption or
                substitution of Awards for awards of the Successor Company or its
                parent
                or subsidiary, such Awards will be substituted for any other type
                of asset
                or property including cash which is fair under the
                circumstances.

            
	 	 	 	 	 
	 	
              7.4

            	
              If
                the Company is voluntarily liquidated or dissolved while unexercised
                Award
                remain outstanding under the Plan, the Company shall immediately
                notify
                all unexercised Award holders of such liquidation, and the Award
                holders
                shall then have ten (10) days to exercise any unexercised Vested
                Award
                held by them at that time, in accordance with the exercise procedure
                set
                forth herein. Upon the expiration of such ten-days period, all remaining
                outstanding Award will terminate immediately.

            
	 	 	 	 	 
	 	
              7.5

            	
              If
                the outstanding Stock
                shall at any time be changed or exchanged by declaration of a stock
                dividend (bonus stock), Stock
                split or reverse Stock
                split, combination or exchange of stock, recapitalization, or any
                other
                like event by or of the Company, and as often as the same shall occur,
                then the Purchase Price (if applicable), the number, class and kind
                of the
                Stock subject to the Plan or subject to any Award theretofore
                granted, shall be appropriately and equitably adjusted so as to maintain
                the proportionate number of Stock without changing the aggregate
                Purchase
                Price;
                provided, however, that no adjustment shall be made by reason of
                the
                distribution of subscription rights (rights offering) on outstanding
                Stock.
                Upon happening of any of the foregoing, the class and aggregate number
                of
                Stock issuable pursuant to the Plan (as set forth in Section
                5
                hereof), in respect of which Award have not yet been exercised, shall
                be
                appropriately adjusted.
                

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	8.	
              
                TERM
                  AND EXERCISE OF OPTIONS

              

            
	 	 
	 	
              8.1

            	
              Options
                shall be exercised by the Grantee’s
                by
                giving written notice of
                to
                the Company or to any third party designated by the Company (the
                “Representative”),
                in such form and method as may be determined by the Company,
                which
                exercise shall be effective upon receipt of such notice by the Company
                and/or the Representative and the payment of the exercise price for
                the
                number of Stock with respect to which the Option is being exercised,
                at
                the Company’s or the Representative’s principal office.
                The notice shall specify the number of Stock with respect to which
                the
                Option is being exercised.

            
	 	 	 	 	 
	 	
              8.2

            	
              Options,
                to the extent not previously exercised, shall terminate upon
                the earlier of: (i) the date set forth in the Option Agreement;
                (ii)
                the expiration of ten (10) years from the Date of Grant; or (iii)
                the
                expiration of any extended period in any of the events set forth
                in
                Section
                8.5 below. 

            
	 	 	 	 	 
	 	
              8.3 

            	
              The
                Options may be exercised by the Grantee in whole at any time or in
                part
                from time to time, to the extent that the Options have
                become
                vested and exercisable, prior to the Expiration Date, and provided
                that,
                subject to the provisions of Section
                8.5 below, the Grantee is an Employee or a Service Provider at
                all times during the period beginning with the granting of the Option
                and
                ending upon the date of exercise. 

            
	 	 	 	 	 
	 	
              8.4

            	
              Subject
                to the provisions of Section
                8.5 below, in the event of a
                termination
                of
                Grantee’s employment or service,
                all Options granted to such
                Grantee shall
                immediately expire. Unless otherwise approved by the Committee,
                a
                notice of termination of employment or services shall be deemed to
                constitute termination of employment or services. 

            
	 	 	 	 	 
	 	
              8.5

            	
              Notwithstanding
                anything to the contrary hereinabove and unless otherwise determined
                in
                the Grantee’s Option Agreement, an Option may be exercised after the date
                of termination of Grantee’s employment or service during an additional
                period of time beyond the date of such termination, but only with
                respect
                to the number of Vested
                Options at the time of such termination
                according to the Vesting Dates, if:

            
	 	 	 	 	 
	 	
               

            	
              8.5.1

            	termination
              is without Cause, in which event the vested Options
              still in force and unexpired may be exercised within a period of three
              (3)
              months after the date of such termination;
              or

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
               

            	
              
                8.5.2

              

            	termination
              is the result of death or disability of the Grantee, in which event
              the
              vested Options still in force and unexpired may be exercised within
              a
              period of twelve (12) months after such date of termination;
              or-
	 	 	 	 	 
	 	 	 	 	 
	 	
               

            	
              
                8.5.3

              

            	prior
              to the date of such termination, the Committee shall authorize an
              extension of the term
              of
              all or part of the vested Options beyond the date of such termination
              for
              a period not to exceed the period during which the Options by their
              terms
              would otherwise have been exercisable.
	 	 	 	 	 
	 	
               

            	For
              avoidance of any doubt, if termination of employment or service is
              for
              Cause, any outstanding unexercised Option will immediately expire and
              terminate, and the Grantee shall not have any right in respect
              of
              such outstanding Options.
	 	 	 	 	 
	 	
              8.6

            	
              To
                avoid doubt, Grantees shall not have any of the rights or privileges
                of
                stockholders of the Company, in respect of any Stock purchasable
                upon the
                exercise of an Option, nor shall they be deemed to be a class of
                stockholders or creditors of the Company for the purpose of all applicable
                law, until registration of the Grantee as holder of such Stock in
                the
                Company’s register of stockholders upon exercise of the Option in
                accordance with the provisions of the Plan.

            
	 	 	 	 	 
	 	
              8.7

            	
              Any
                form of Option Agreement authorized by the Plan may contain such
                other
                provisions,
                not inconsistent with the Plan,
                as
                the Board may, from time to time, deem advisable. 

            
	 	 	 	 	 
	9.
              	
              
                TERMS
                  OF THE STOCK

              

            
	 	 	 
	 	
              9.1

            	
              Subject
                to any applicable law, the Board or the Committee shall have the
                sole
                discretion to determine that in certain Stock Agreement there shall
                be a
                clause instructing that in the event of termination of Grantee's
                employment with the Company or any of its affiliates the following
                may
                apply:

            
	 	 	 	 	 
	 	
               

            	
              
                (i)
                  

              

            	termination
              is without Cause, in which event all vested Stock held by the Grantee
              on
              the date of termination may be retained by the Grantee and may not
              be
              subject to forfeiture by the Company. 
	 	 	 	 	 
	 	
               

            	
              
                (ii)

              

            	unvested
              Stock held by the Grantee on the date of termination, may be subject
              to
              forfeiture by the Company, at a price which is to be resolved by the
              Board
              or the Committee and which is to be equal to the lower of the price
              paid
              by the Grantee for the Stock (or the par value of the Stock, as the
              case
              may be) or the fair market value of the Company’s Stock at the date of
              such forfeiture, and the Grantee shall not be entitled to retain the
              unvested Stock. Upon consummation of the forfeiture of the unvested
              Stock,
              the Grantee's rights with respect to such Stock including, inter alia,
              the
              right to receive dividends with respect to such unvested Sock shall
              lapse
              and shall be of no further force and
              effect.

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
               

            	
              
                (iii)

              

            	notwithstanding
              anything to the contrary above, in the event of termination for Cause,
              all
              Stock, whether vested or not, may be subject to forfeiture by the Company
              at the lower price of the price paid by the Grantee for the Stock (or
              the
              par value of the Stock, as the case may be) and the fair market value
              of
              the Company’s Stock at the date of such forfeiture and all the Grantee's
              rights with respect to such Stock including, inter alia, the right
              to
              receive dividends with respect to such Sock shall lapse and shall be
              of no
              further force and effect.
	 	 	 	 	 
	 	
              9.2

            	
              Any
                form of Award Agreement authorized by the Plan may contain such other
                provisions
                
                as
                  the Committee may, from time to time, deem advisable.

              

            
	 	 	 	 	 
	10.	
              VESTING
                OF AWARD

            
	 	 
	 	
              10.1

            	
              Subject
                to the provisions of the Plan, Award shall vest at the Vesting Dates
                set
                forth in the Award Agreement. However
                no Award shall be exercised after the Expiration Date. 

            
	 	 	 	 	 
	 	
              10.2

            	
              An
                Award may be subject to such other terms and conditions,
                not inconsistent with the Plan,
                on
                the time or times when it may be exercised as the Committee may deem
                appropriate. The vesting provisions of individual Award may vary.
                

            
	 	 	 	 	 
	11.	
              PURCHASE FOR
                INVESTMENT

            
	 	 
	 	
              The
                Company’s obligation to issue or allocate Stock under the Plan, as the
                case may be, is expressly conditioned upon: (a) the Company’s completion
                of any registration or other qualifications of such Stock under all
                applicable laws, rules and regulations or (b) representations and
                undertakings by the Grantee
                (or his legal representative, heir or legatee, in the event of
                the
                Grantee’s
                death) to assure that the sale of the Stock complies with any registration
                exemption requirements which the Company in its sole discretion shall
                deem
                necessary or advisable. Such required representations and undertakings
                may
                include representations
                and agreements that such Grantee
                (or his legal representative, heir, or legatee): (a) is purchasing
                such
                Stock for investment and not with any present intention of selling
                or
                otherwise disposing thereof; and (b) agrees to have placed upon the
                face
                and reverse of any certificates evidencing such Stock a legend setting
                forth (i) any representations and undertakings which such Grantee
                has given to the Company or a reference thereto and (ii) that, prior
                to
                effecting any sale or other disposition of any such Stock, the
                Grantee
                must furnish to the Company an opinion of counsel, satisfactory to
                the
                Company, that such sale or disposition will not violate the applicable
                laws, rules and regulations of the United States or any other state
                having
                jurisdiction over the Company and the Grantee.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	12.	
              DIVIDENDS

            
	 	 	 	 	 
	 	
              With
                respect to all Stock (but excluding, for avoidance of any doubt,
                any
                unexercised Options) allocated or issued upon the exercise of Options
                purchased by the Grantee
                and held by the Grantee
                or
                by a trustee, as the case may be, the Grantee
                shall be entitled to receive dividends in accordance with the quantity
                of
                such Stock, subject to the provisions of the Company’s incorporation
                documents, as amended from time to time
                and subject to any applicable taxation on distribution of
                dividends.

            
	13.	
              RESTRICTIONS
                ON ASSIGNABILITY AND SALE OF OPTIONS

            
	 	 	 	 	 
	 	
              No
                Award or any right with respect thereto,
                purchasable hereunder, whether fully paid or not, shall be assignable,
                transferable,
                or given
                as collateral nor
                any right with respect thereto may be given to any third party whatsoever,
                other than by will or by the laws of descent and distribution
                or
                as specifically otherwise allowed under the Plan and during
                the lifetime of the Grantee, each
                and all of such Grantee’s rights to purchase Stock hereunder
                shall
                be exercisable only by the Grantee. Any
                action made in contradiction to the aforementioned, shall be null
                and
                void.

            
	 	 	 	 	 
	14.	
              
                EFFECTIVE
                  DATE DURATION AMENDMENTS OR TERMINATION OF THE PLAN

              

            
	 	 	 	 	 
	 	
              14.1
                

            	
              The
                Plan shall
                be
                effective as of the day it was adopted by the Board and shall terminate
                at
                the end of
                ten (10) years from such day of adoption (the: ”Termination
                Date”).

            
	 	 	 	 	 
	 	
              14.2

            	
              The
                Company shall obtain the approval of the Company’s stockholders for the
                adoption of this Plan and/or the Appendixes thereto or for any amendment
                to this Plan and/or the Appendixes thereto if stockholders’ approval is
                required under any applicable law
                including without limitation the U.S. securities law or the securities
                laws of other jurisdiction applicable to Award granted to Grantees
                under this Plan and/or the Appendixes thereto, or if stockholders’
                approval is required by any authority or by any governmental agencies
                or
                national securities exchanges including without limitation the U.S.
                Securities and Exchange Commission. 

            
	 	 	 	 	 
	 	
              14.3

            	
              The
                Board may at any time, subject
                to the provisions of Section 14.2 above
                and all applicable law, amend, alter, suspend or terminate the Plan,
                provided,
                however,
                that (i) the Board may not extend the term of the Plan specified
                in
                Section 14.1 above and (ii) no amendment, alteration, suspension
                or
                termination of the Plan shall impair the rights of any Grantee, unless
                mutually agreed otherwise by the Grantee and the Company, which agreement
                must be in writing and signed by the Grantee and the Company. Earlier
                termination of the Plan prior to the Termination Date shall not affect
                the
                Board’s ability to exercise the powers granted to it hereunder with
                respect to Award granted under the Plan prior to the date of such
                earlier
                termination.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	15.	
              
                GOVERNMENT
                  REGULATIONS

              

            
	 	 	 	 	 
	 	
              The
                Plan, the
                granting and exercise of Award hereunder
                and the obligation of the Company to sell and deliver Stock under
                such
                Options
                shall be subject to all applicable laws, rules, regulations, approvals
                and
                consents whether of the United States, the State of Israel, or any
                other
                State
                having jurisdiction over the Company or
                the Grantee, including the registration of the Stock under the United
                States Securities Act 1933 or under the securities act of any applicable
                jurisdiction, and to such approvals by any governmental agencies
                or
                national securities exchanges as may be required. Nothing herein
                shall be
                deemed to require the Company to register the Stock under the securities
                law of any jurisdiction.

            
	 	 	 	 	 
	16.	
              CONTINUANCE
                OF EMPLOYMENT 

            
	 	 
	 	
              Neither
                the Plan nor any
                Award Agreement shall
                impose any obligation on the Company or an affiliate
                to continue any Grantee in its employ or service, and nothing in
                the Plan
                or in any Award granted pursuant hereto
                shall confer upon any Grantee any right to continue in the employ
                or
                service of the Company or an affiliate thereof or restrict the right
                of
                the Company or an affiliate thereof to terminate such employment
                or
                service at any time.

            
	17.	
              GOVERNING
                LAW AND
                JURISDICTION

            
	 	 	 	 	 
	 	
              The
                Plan shall be governed by and construed and enforced in accordance
                with
                the laws of Israel as applicable to contracts made and to be performed
                therein, without giving effect to the principles of conflict of laws.
                The
                competent courts of the state of Israel shall have sole jurisdiction
                in
                any matters pertaining to the Plan.

            
	 	 
	18.	
              TAX
                CONSEQUENCES

            
	 	 
	 	
              Any
                tax consequences to
                any Grantee arising
                from the grant or exercise of any Award, from the payment for Stock
                covered thereby or from any other event or act (of the Company and/or
                its
                affiliates, or the Grantee)
                hereunder
                shall be borne solely by the Grantee. The Company and/or its affiliates
                shall withhold taxes according to the requirements under the applicable
                laws, rules, and regulations, including withholding taxes at source.
                Furthermore, the Grantee shall agree to indemnify the Company and/or
                its
                affiliates and hold them harmless against and from any and all liability
                for any such tax or interest or penalty thereon, including without
                limitation, liabilities relating to the necessity to withhold, or
                to have
                withheld, any such tax from any payment made to the
                Grantee.

            
	 	 
	 	
              The
                Company shall not be required to release any Stock certificate to
                a
                Grantee until all required payments have been fully made.
                

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	19.	
              NON-EXCLUSIVITY
                OF THE PLAN

            
	 	 	 	 	 
	 	
              The
                adoption of the Plan by the Board shall not be construed as amending,
                modifying or rescinding any previously approved incentive arrangements
                or
                as creating any limitations on the power of the Board to adopt such
                other
                incentive arrangements as it may deem desirable, including, without
                limitation, the granting of Award otherwise then under the Plan,
                and such
                arrangements may be either applicable generally or only in specific
                cases.
                For the avoidance of doubt, prior grant of Award to Grantees of the
                Company under their employment agreements, and not in the framework
                of any
                previous stock and/or option plan, shall not be deemed an approved
                incentive arrangement for the purpose of this Section.

            
	 	 	 	 	 
	20.	
              MULTIPLE
                AGREEMENTS

            
	 	 
	 	
              The
                terms of each Award may differ from other Award granted under the
                Plan at
                the same time, or at any other time. The Board may also grant more
                than
                one Award to a given Grantee during the term of the Plan, either
                in
                addition to, or in substitution for, one or more Award previously
                granted
                to that Grantee.

            
	 	 
	21.	
              RULES
                PARTICULAR TO SPECIFIC COUNTRIES

            
	 	 
	 	Notwithstanding
              anything herein to the contrary, the terms and conditions of the Plan
              may
              be adjusted with respect to a particular country by means of an addendum
              to the Plan in the form of an appendix (the “Appendix”),
              and to the extent that the terms and conditions set forth in the Appendix
              conflict with any provisions of the Plan, the provisions of the Appendix
              shall govern. Terms and conditions set forth in the Appendix shall
              apply
              only to Award issued to Grantees under the jurisdiction of the specific
              country that is subject of the Appendix and shall not apply to Award
              issued to any other Grantee. The adoption of any such Appendix shall
              be
              subject to the approval of the Board and if required the approval of
              the
              stockholders of the Company.

    

     

    

    *
      *
      *Execution
        Copy

       

    

    ASSET
      PURCHASE AND SALE AGREEMENT

    

    between

     

    The
      New York Mortgage Company, LLC,

    

    as
      Seller,

    

    and

    

    Tribeca
      Lending Corp.,

    

    as
      Buyer

     

    Dated
      as of February 14, 2007

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ASSET
      PURCHASE AND SALE AGREEMENT

    

    THIS
      ASSET PURCHASE AND SALE AGREEMENT is made and entered into, dated and effective
      as of this 14th
      day of
      February, 2007, by and between The New York Mortgage Company, LLC, a New York
      limited liability company (“Seller”), Tribeca Lending Corp., a New York
      corporation (“Buyer”) and, solely for the limited purposes set forth in Section
      8.4 hereof, New York Mortgage Trust, Inc., a Maryland corporation (“NYMT”), and
      Franklin Credit Management Corporation, a Delaware corporation (“FCMC”). Buyer
      and Seller are collectively referred to herein as the "Parties" or individually
      as a "Party."

    

    WHEREAS,
      Seller is, among other things, engaged in the wholesale residential mortgage
      loan origination business located at 1125 Route 22 West, Bridgewater, New Jersey
      (as further defined below, the "Origination Business"); and

    

    WHEREAS,
      subject to the terms and conditions of this Agreement, Seller wishes to sell
      to
      Buyer and Buyer wishes to purchase from Seller, certain assets that relate
      to or
      are used by Seller in connection with its Origination Business, all in
      consideration of the Purchase Price described below and Buyer's assumption
      of
      certain liabilities and obligations of Seller, as set forth below;
      and

    

    WHEREAS,
      Seller has determined that the Purchase Price to be paid by Buyer and Buyer's
      assumption of the Assumed Liabilities hereunder will constitute receipt by
      Seller of fair value for the Assets to be conveyed to Buyer.

    

    NOW,
      THEREFORE, in consideration of the premises, the mutual representations,
      warranties, covenants, agreements and conditions contained herein and in order
      to set forth the terms and conditions of such sale and purchase and the mode
      of
      carrying the same into effect, the parties agree as follows:

     

    ARTICLE
      I

    Definitions

     

    1.1 Definitions.

     

    In
      addition to the abbreviations and terms otherwise defined in the text of this
      Agreement, the following capitalized terms used herein shall have the respective
      meanings set forth below; the terms defined herein include the plural as well
      as
      the singular and the singular as well as the plural.

    

    “Acquired
      Intellectual Property”
means
      the Intellectual Property set forth on Schedule 1 hereto.

    

    “Acquisition
      Proposal”
has
      the
      meaning set forth in Section 7.6.

    

    “Affiliates”
with
      respect to any Person means any other Person directly or indirectly controlling,
      controlled by or under common control with such Person. For purposes of this
      definition, the term “control” means the possession, direct or indirect, of the
      power to direct or cause the direction of the management and policies of a
      Person, whether through the ownership of voting securities, by contract or
      otherwise.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Agency”
means
      FHA or any other part of the Department of Housing and Urban Development, VA,
      FNMA, FHLMC, GNMA, any other Governmental Authority or any other state agency
      or
      entity with authority to regulate the mortgage-related activities of Seller
      or
      to determine the investment or servicing requirements with regard to mortgage
      loan origination, purchasing or servicing performed by Seller, as
      applicable.

    

    “Agreement”
means
      this Asset Purchase and Sale Agreement, as the same may be amended or
      supplemented in accordance with its terms, including all Exhibits and Schedules
      attached hereto or delivered pursuant hereto.

    

    “Applicable
      Law”
means
      any order, writ, injunction, decree, judgment, ruling, law, decision, opinion,
      statute, rule or regulation of any governmental, judicial, legislative,
      executive, administrative or regulatory authority of the United States, or
      of
      any state, local or foreign government or any subdivision thereof, or of any
      Governmental Authority that is applicable to Seller, the Origination Business
      or
      the Acquired Assets, including the federal Fair Housing Act, federal Equal
      Credit Opportunity Act and Regulation B, federal Fair Credit Reporting Act,
      federal Truth in Lending Act and Regulation Z, National Flood Insurance Act
      of
      1968, federal Flood Disaster Protection Act of 1973, federal Real Estate
      Settlement Procedures Act and Regulation X, federal Fair Debt Collection
      Practices Act, federal Home Mortgage Disclosure Act, and state and local
      consumer credit and usury codes and laws, including laws relating to “predatory”
or “high cost” lending.

    

    “Applicable
      Requirements”
means
      and includes, as of the time of reference, with respect to the origination,
      purchase, sale or servicing of the Pipeline Mortgage Loans all of the following:
      (i) all contractual obligations of Seller, including but not limited to the
      those under any Mortgage Note, Mortgage or other document or any commitment
      or
      other contractual obligation relating to a Pipeline Mortgage Loan, including
      any
      Investor Commitment, and all other contractual obligations to any Agency,
      Insurer or Investor, (ii) all applicable underwriting, selling and servicing
      guidelines of Seller or any Investor or Insurer, (iii) all other applicable
      requirements and guidelines of any Agency, and (iv) all Applicable
      Law.

    

    “Assets”
or
      “Acquired
      Assets”
means
      the following assets of Seller: (i) the Pipeline Mortgage Loans; (ii) the
      Furniture, Fixtures and Equipment; (iii) all rights of Seller under the Assumed
      Leases (inclusive of all rights in security deposits and other sums owing to
      lessee in connection therewith) and Assumed Broker Agreements; (iv) the
      Supplies; (v) all of Seller’s rights, title and interest in, to and under
      Acquired Intellectual Property, and the right to sue for past, present, or
      future infringement and to collect and retain all damages and profits related
      to
      the foregoing; (vi) the Goodwill; (vii) originals
      or copies of all books, records, working papers, analytical models, work
      product, correspondence, memoranda and other documentation
      (collectively, “Documents”) to the extent related to the assets referred to in
      clauses (i) through (vi) of this definition, to the extent in use in the conduct
      of the Origination Business or ordinarily located at the Origination Premises.
      In no case shall the Acquired Assets include any Excluded Assets.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Assignment
      and Assumption Agreement”
means
      the assignment and assumption agreement substantially in the form attached
      hereto as Exhibit
      J.

    

    “Assumed
      Broker Agreements”
means
      the agreement or agreements (including all exhibits and schedules thereto and
      all amendments and supplements thereof) between Seller and mortgage brokers
      for
      the acquisition of or funding by Seller of mortgage loans that are listed in
      Exhibit
      B
      attached
      hereto and by reference made a part hereof.

    

    “Assumed
      Leases”
means
      the Origination Premises Lease and other lease agreements with respect to the
      Origination Premises and the Furniture, Fixtures and Equipment more particularly
      described in Exhibit
      A.

    

    “Assumed
      Liabilities”
means
      only those obligations of Seller, if any, arising on and after the Closing
      Date:
      (i) with respect to the Pipeline Mortgage Loans; (ii) under the Assumed Broker
      Agreements to the extent pertaining to the Pipeline Mortgage Loans, but only
      to
      the extent the assignment and assumption of the Assumed Broker Agreements will
      not constitute a breach thereof or in any way adversely affect the benefits,
      rights or obligations thereunder being assigned by Seller to Buyer; (iii) under
      the Assumed Leases, but only to the extent the assignment and assumption of
      the
      Assumed Leases will not constitute a breach thereof or in any way adversely
      affect the benefits, rights or obligations thereunder being assigned by Seller
      to Buyer; and (iv) other routine and immaterial obligations and ongoing expenses
      of the Origination Business (such as water delivery and landscaping services)
      arising in respect of services performed on and after the Closing, which
      arrangements may be terminated without a fee on less than thirty (30) days’
notice. 

    

    “Bill
      of Sale”
means
      a
      bill of sale, substantially in the form attached hereto as Exhibit
      K.

    

    “Broker
      Assignment and Assumption Agreement”
means
      the Contract Assignment and Assumption Agreement, between Buyer and Seller,
      with
      respect to the assignment and assumption of the Assumed Broker Agreements,
      substantially in the form attached hereto as Exhibit
      H.

     

    “Broker
      Management Software”
means
      that certain broker tracking and management software developed for Seller by
      Synechron on a work-for-hire basis. 

    

    “Buyer”
means
      Tribeca Lending Corp., a New York corporation, its successors in interest and
      assigns.

    

    “Code”
means
      the Internal Revenue Code of 1986, as amended.

    

    “Copyrights”
means
      all domestic and foreign copyright interests in any original work of authorship,
      whether registered or unregistered, published or unpublished, including all
      copyright registrations or foreign equivalent, all applications for registration
      or foreign equivalent, all moral rights, all common-law rights, all work for
      hire and all rights to register and obtain renewals and extensions of copyright
      registrations, together with all other copyright interests accruing by reason
      of
      international copyright convention.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended. 

    

    “Excluded
      Assets”
means
      the following assets of Seller, which are expressly excluded from the Acquired
      Assets: (a) the consideration delivered by Buyer to Seller pursuant to this
      Agreement; (b) cash, cash equivalents, notes receivable and securities; (c)
      all
      mortgage loans and accounts receivable, except those with respect to Pipeline
      Mortgage Loans; (d) all articles of incorporation and similar organizational
      documents, corporate seals, minute books and other records of corporate
      proceedings; (e) all trade names, trademarks, service marks and other rights
      to
      the names "NYMC", "The New York Mortgage Company" and any derivative thereof;
      (f) all insurance policies and all claims, refunds and credits from insurance
      policies due or to become due to Seller or its affiliates, except to the extent
      such policies and all claims, refunds and credits relate to Acquired Assets
      and/or Assumed Liabilities arising from and after the Closing; (g) all tax
      credits and refunds due or to become due to Seller or its Affiliates, except
      to
      the extent such credits and refunds relate to Acquired Assets and/or Assumed
      Liabilities from and after the Closing; and (h) all other assets owned by Seller
      and not specifically included in the Acquired Assets.

    

    “FHA”
means
      the Federal Housing Administration of the Department of Housing and Urban
      Development of the United States and any successor thereto.

    

    “FHLMC”
means
      the Federal Home Loan Mortgage Corporation and any successor
      thereto.

    

    “FNMA”
means
      the Federal National Mortgage Association and any successor
      thereto.

    

    “Final
      Payment Date”
means
      the date on which the Purchase Price is paid to Seller pursuant to this
      Agreement.

     

    “Furniture,
      Fixtures and Equipment”
means
      (i) the furniture and equipment owned by Seller as of the Closing Date,
      ordinarily located at the Origination Premises and used in connection with
      the
      Origination Business, (ii) furniture and equipment that is described in
Exhibit
      C
      attached
      hereto and by reference made a part hereof, and (iii) all leasehold improvements
      made to the Origination Premises, including fixtures.

    

    “GNMA”
means
      the Government National Mortgage Association and any successor
      thereto.

    

    “Goodwill”
means
      all goodwill associated with the Origination Business, including the right
      of
      Buyer to represent itself to third parties as the successor in interest to
      the
      Origination Business.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    “Governmental
      Authority”
means
      any federal, state or municipal agency, department, commission, Agency or other
      governmental authority, including any domestic or foreign court or tribunal
      of
      competent jurisdiction.

    

    “Insurer”
means
      a
      Person who (i) insures or guarantees all or any portion of the risk of loss
      on
      any Residential Mortgage Loan, including any Agency and any provider of private
      mortgage insurance, standard hazard insurance, flood insurance, earthquake
      insurance or title insurance with respect to any Residential Mortgage Loan
      or
      the property securing such Residential Mortgage Loan or (ii) provides any
      fidelity bond, direct surety bond, letter of credit, other credit enhancement
      instrument or errors and omissions policy.

    

    “Intellectual
      Property”
means
      all intellectual property rights worldwide, whether owned, used or licensed
      (as
      licensor or licensee) by Seller or the Origination Business, or that has been
      used in, or is held for use in, the Origination Business or in any product,
      service, technology or process whether currently or formerly offered by Seller
      or the Origination Business, or currently under development by Seller or the
      Origination Business, including Copyrights, Marks (including the Service Marks),
      Trade Secrets, Inventions and all improvements thereto, Know How, Software
      (including the Broker Management Software), other
      intellectual property or proprietary rights and claims or causes of action
      arising out of or related to any infringement, misappropriation or other
      violation of any of the foregoing, including rights to recover for past, present
      and future violations thereof and
      associated goodwill.

    

    “Inventions”
means
      novel devices, processes, compositions of matter, methods, techniques,
      observations, discoveries, apparatuses, machines, designs, expressions, theories
      and ideas, whether or not patentable.

    

    “Investor”
means,
      with respect to any Residential Mortgage Loan or Investor Commitment, the Agency
      or any other Person who owns such Residential Mortgage Loan, is party to such
      Investor Commitment, or will otherwise own such Residential Mortgage Loan upon
      its purchase from Seller, or Buyer as successor pursuant to this
      Agreement.

    

    “Investor
      Commitment”
means
      the optional or mandatory commitment of Seller to sell to any Investor, or
      any
      Investor to purchase from Seller, a Residential Mortgage Loan or an interest
      therein owned by or to be originated or acquired by Seller, or Buyer as
      successor pursuant to this Agreement.

    

    “Know
      How”
means
      all scientific, engineering, mechanical, electrical, financial, marketing or
      practical knowledge or experience useful in the operation of the Origination
      Business.

    

    “Lessor”
means
      First States Investors 5200 LLC, the lessor under the Origination Premises
      Lease.

    

    “Liabilities”
means
      any and all liabilities and obligations of every nature or kind (whether
      accrued, absolute, contingent or otherwise and whether asserted or unasserted,
      known or unknown and whether due or to become due).

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    “Lien”
means
      any lien, claim, mortgage, security interest, pledge, charge, easement,
      servitude or other encumbrance of any kind, including any thereof arising under
      any conditional sales or other title retention agreement.

    

    “Loss”
      means
      any liability, loss, cost, damage, penalty, fine, interest, obligation or
      expense of any kind whatsoever (including, without limitation, reasonable
      attorneys', accountants', consultants' or experts' fees and disbursements)
      actually incurred by Buyer or Seller, as applicable.

    

    “Marks”
means
      all domestic and foreign trademarks, trade dress, service marks, trade names,
      business names, icons, logos, slogans, and any other indicia of source or
      sponsorship of goods and services, symbols, designs and logotypes related to
      the
      above, in any and all forms, all trademark registrations and applications for
      registration related to such trademarks (including intent to use applications
      and any extensions, modifications or renewals of the same), and all goodwill
      related to the foregoing.

    

    “Material
      Adverse Effect”
      means
      any change or changes or effect or effects that, individually or in the
      aggregate, is or may reasonably be expected to result in a Loss that exceeds
      Fifty Thousand Dollars ($50,000) or is reasonably expected to prevent or
      materially hinder a Party's ability to perform its obligations under this
      Agreement.

    

    “Mortgage”
means
      with respect to a Residential Mortgage Loan, a mortgage, deed of trust or other
      security instrument creating an lien upon or other security interest in real
      property and any other property described therein, including an individual
      unit
      in a condominium or a planned unit development, or stock in a cooperative
      ownership development, that secures a Mortgage Note.

    

    “Mortgage
      Note”
means,
      with respect to a Residential Mortgage Loan, a promissory note or notes, or
      other evidence of indebtedness, with respect to such Loan secured by a Mortgage
      or Mortgages.

    

    “Origination
      Business”
means
      the wholesale residential mortgage loan origination business engaged in by
      Seller at the Origination Premises (defined below) immediately prior to Closing.
      

    

    “Origination
      Premises”
means
      the office space leased under and as further described in the Origination
      Premises Lease. 

     

    “Origination
      Premises Lease”
means
      the Office Lease Agreement dated as of June 21, 2005, as amended by that certain
      First Amendment to Office lease dated as of September 30, 2005, between First
      States Investors 5200 LLC and Seller, with respect to the Origination
      Premises.

    

    “Permits”
means
      licenses, permits, authorizations and approvals issued or granted by any
      Governmental Authority.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    “Person”
means
      an individual, corporation, partnership, joint venture, association, joint
      stock
      company, trust or unincorporated organization or a federal, state, city,
      municipal or foreign government or an agency or political subdivision
      thereof.

    

    “Pipeline
      Mortgage Loans”
means
      all registrations for and applications from prospective borrowers for
      Residential Mortgage Loans that have been put into process by the Origination
      Business prior to 12:01 a.m. on the Closing Date, and (i) which have not been
      closed or funded by Seller prior to the Closing Date and (ii) which are listed
      on the Pipeline Mortgage Loan Schedule as mutually agreed by Buyer and Seller.
      

    

    “Pipeline
      Mortgage Loan Schedule”
means
      the schedule mutually agreed by Buyer and Seller setting forth information
      with
      respect to each Pipeline Mortgage Loan, including information necessary to
      effect the calculations required by Sections 2.3 and 2.4 of this
      Agreement.

    

    “Purchase
      Price”
means
      the aggregate amount required to be paid pursuant to Section 2.3 below (net
      of
      any and all adjustments or deductions as provided therein).

    

    “Residential
      Mortgage Loan”
means
      a
      loan evidenced by a Mortgage Note and secured by a Mortgage.

    

    “Return”
means
      any report, return or other information required to be supplied to a Government
      Entity by Seller in connection with Taxes including, where permitted or
      required, combined or consolidated returns for any group of entities that
      includes Seller or any Affiliate.

    

    “Seller”
means
      The New York Mortgage Company, LLC, a New York limited liability company, or
      its
      successors in interest or assigns.

    

    “Service
      Marks”
means
      all ownership and use rights to the unregistered marks “EZ Alt-A”, “E-Z Alt-A”
and “Mortgage Power” as used to refer to mortgage instruments and any Marks
      associated therewith and derivatives thereof.

    

    “Software”
means
      the computer programs and/or software programs set forth on Schedule 1 hereto
      (including all documentation related thereto and ordinarily located at the
      Origination Premises).

    

    “Supplies”
means
      all consumable supplies owned by Seller that relate to or are used in connection
      with the Origination Business and that are located at the Origination
      Premises.

    

    “Tax”
or
      “Taxes”
means
      all taxes, charges, fees, levies or other assessments (including income, gross
      receipts, gains, profits, transfer, ad valorem, value added, stamp, excise,
      real
      property, personal property, sales, use, production, recording, license,
      payroll, transfer, net worth, capital, business and occupation, disability,
      social security, employment severance, unemployment, franchise or withholding
      taxes), imposed (whether directly or by withholding) by any Governmental
      Authority and includes any estimated tax, assessment interest and penalties
      (civil or criminal) or additions to tax. It shall include any obligations of
      the
      Seller in connection with or related to any tax sharing or similar arrangements
      between the Seller and any other Person.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    “Trade
      Secrets”
means
      any formula, design, device or compilation, or other information which is used
      or held for use by a business, which gives the holder thereof an advantage
      or
      opportunity for advantage over competitors which do not have or use the same,
      and which is not generally known by the public, including formulas, algorithms,
      market surveys, market research studies, client lists, customer lists,
      databases, models, information contained on drawings and other documents,
      methodologies, and information relating to the performance of valuation
      services.

    

    “Transaction
      Documents”
means
      any agreements, instruments or other documents delivered pursuant to this
      Agreement, including those described in Section 5.6. 

    

    “Transferred
      Employee”
      or
“Transferred
      Employees”
shall
      mean the individual(s) listed on Exhibit
      D
      employed
      by Seller who are engaged in the Origination Business (excluding those
      individuals who are on temporary leave for medical, family, military, personal
      or other reasons).

    

    “VA”
means
      the Veterans Administration of the United States and any successor
      thereto.

     

    1.2 Other
      Defined Terms.

     

    In
      addition to the terms defined in Section 1.1, the following terms are defined
      in
      the Sections indicated below.

     

    
      
        	
                Term

              	 	
                Section

              	 
	
                Allocation
                  Statement

              	 	 	
                7.8

              	 
	
                Approved
                  Pipeline Mortgage Loan

              	 	 	
                3.17(a

              	
                )

              
	
                Buyer
                  Indemnified Parties

              	 	 	
                8.1

              	 
	
                Buyer
                  Nondirected Solicitation

              	 	 	
                9.1(b

              	
                )

              
	
                Buyer
                  Required Consents

              	 	 	
                4.10

              	 
	
                Buyer's
                  Losses

              	 	 	
                8.1

              	 
	
                Charges

              	 	 	
                2.6

              	 
	
                Claim(s)

              	 	 	
                8.3(a

              	
                )

              
	
                Closing

              	 	 	
                2.7

              	 
	
                Closing
                  Date

              	 	 	
                2.7

              	 
	
                Confidentiality
                  Agreement

              	 	 	
                9.2(a

              	
                )

              
	
                Defense

              	 	 	
                8.3(b

              	
                )

              
	
                Delivery
                  Deadline

              	 	 	
                2.4(b

              	
                )

              
	
                Enforceability
                  Exception

              	 	 	
                3.3

              	 
	
                Excluded
                  Liabilities

              	 	 	
                2.2(b

              	
                )

              
	
                Paying
                  Party

              	 	 	
                7.7(b

              	
                )

              
	
                Pipeline
                  Premium

              	 	 	
                2.3(a

              	
                )

              
	
                Pipeline
                  Mortgage Loan Adjustment

              	 	 	
                Exhibit
                  E

              	 
	
                Plans

              	 	 	
                7.12(c

              	
                )

              

      

    

    
      
        	
                Prohibited
                  Employee

              	 	 	
                9.1(b

              	
                )

              
	
                Purchase
                  Price

              	 	 	
                2.3

              	 
	
                Restricted
                  Employee

              	 	 	
                9.1(a

              	
                )

              
	
                Seller
                  Indemnified Parties

              	 	 	
                8.2

              	 
	
                Seller
                  Nondirected Solicitation

              	 	 	
                9.1(a

              	
                )

              
	
                Seller
                  Operating Expenses

              	 	 	
                2.6(c

              	
                )

              
	
                Seller
                  Prepaid Expenses

              	 	 	
                2.6(c

              	
                )

              
	
                Seller
                  Required Consents

              	 	 	
                3.12

              	 
	
                Seller's
                  Losses

              	 	 	
                8.2

              	 
	 	 	 	 	 

      

       

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      
        	
                1.3
                  Exhibits and Schedules.

              
	 	 
	
                Exhibit
                  A

              	
                Assumed
                  Leases

              
	
                Exhibit
                  B

              	
                Assumed
                  Broker Agreements

              
	
                Exhibit
                  C

              	
                Furniture,
                  Fixtures and Equipment

              
	
                Exhibit
                  D

              	
                Transferred
                  Employees

              
	
                Exhibit
                  E

              	
                Pipeline
                  Mortgage Loan Adjustment

              
	
                Exhibit
                  F

              	
                Form
                  of Origination Premises Lease Assignment and Assumption
                  Agreement

              
	
                Exhibit
                  G

              	
                Origination
                  Premises Lease Estoppel Certificate

              
	
                Exhibit
                  H

              	
                Broker
                  Assignment and Assumption Agreement

              
	
                Exhibit
                  I

              	
                License
                  Agreement

              
	
                Exhibit
                  J

              	
                Assignment
                  and Assumption Agreement

              
	
                Exhibit
                  K

              	
                Bill
                  of Sale

              
	 	 
	
                Schedule
                  1

              	
                Acquired
                  Intellectual Property

              
	
                Schedule
                  3.4

              	
                Liens

              
	
                Schedule
                  3.10

              	
                Compliance
                  with Applicable Requirements

              
	Schedule
                3.10(b)
                	Compliance
                with Applicable Laws
	
                Schedule
                  3.12

              	
                Seller
                  Required Consents

              
	
                Schedule
                  3.16

              	
                Intellectual
                  Property Infringement

              
	Schedule
                3.17(a)
                	Pipeline
                Mortgage Loans
	
                Schedule
                  4.10

              	
                Buyer
                  Required Consents

              
	
                Schedule
                  7.12

              	
                Post-Closing
                  Services

              
	 	 

      

    

     

    ARTICLE
      II

    Terms
      of Purchase and Sale of Assets

     

    2.1 Purchase
      and Sale of Assets.

     

    Subject
      to the terms, conditions and provisions hereof, Seller agrees to sell to Buyer
      and Buyer agrees to purchase from Seller, the Assets in consideration of the
      payment of the Purchase Price and the assumption of the Assumed Liabilities,
      as
      hereinafter provided. In no case shall the Acquired Assets include any Excluded
      Assets.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    On
      the
      Closing Date, Seller shall sell, assign, transfer, convey and deliver to Buyer,
      free and clear of all Liens (except Assumed Liabilities and Liens for Taxes
      not
      yet due and payable), and Buyer shall purchase from Seller, the
      Assets.

     

    2.2 Assumption
      of Liabilities.

     

    
      	
            	(a)	
              On
                the terms and subject to the conditions provided for in this Agreement,
                on
                the Closing Date, Buyer shall assume the Assumed Liabilities. Except
                for
                the Assumed Liabilities, nothing in this Agreement is intended or
                shall be
                deemed to subject Buyer, any of its Affiliates or any of the officers,
                directors, employees or agents of Buyer or its Affiliates, to any
                Liability by reason of the transfer of assets contemplated hereby
                under
                the laws of the United States of America, any State, territory or
                possession thereof or the District of Columbia or any other jurisdiction
                based, in whole or in part, directly or indirectly, on any theory
                of law,
                including any theory of successor, assignee or transferee
                liability.

            

    

    

    Notwithstanding
      anything to the contrary herein, Seller and Buyer agree that Buyer is not under
      any obligation to close any Pipeline Mortgage Loans in connection with which
      Seller, the broker or correspondent, including any employees or agents of
      Seller, broker or correspondent, has engaged in unlicensed mortgage activity
      or
      mortgage activity from an unlicensed location or was otherwise in violation
      of
      Applicable Requirements.

     

    
      	 	
              (b)

            	
              Notwithstanding
                any provision in this Agreement or any other writing to the contrary,
                Buyer is assuming only the Assumed Liabilities and is not assuming
                any
                other liability or obligation of Seller (or any predecessor of Seller
                or
                any prior owner of all or part of its businesses and assets). All
                such
                other liabilities and obligations shall be retained by and remain
                obligations and liabilities of Seller (all such liabilities and
                obligations not being assumed being herein referred to as the “Excluded
                Liabilities”). Notwithstanding anything to the contrary in this Agreement,
                the term “Excluded Liabilities”
includes:

            

    

     

    
      	 	
              (i)

            	
              all
                Liabilities relating to any compensation or benefits of any director,
                officer, personnel, former personnel, independent contractor, agent,
                or
                other representative of Seller or any Plans, including, in respect
                of
                workers’ compensation or claims relating to employment of personnel by, or
                provision of services by personnel to, Seller prior to the Closing,
                including severance obligations, if
                any;

            

    

     

    
      	 	
              (ii)

            	
              any
                right, title, benefit, privileges and interest in and to, and all
                of the
                burdens, and Liabilities under, Assumed Broker Agreements with respect
                to
                (A) any mortgage loans that are not included in the Assets or (B)
                any
                mortgage loans that closed in the name of Seller before the Closing
                Date;
                

            

    

     

    
      	 	
              (iii)

            	
              any
                Taxes of Seller with respect to taxable periods ending before the
                Closing
                Date; and

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iv)

            	
              with
                respect to taxable periods beginning before the Closing Date and
                ending
                after the Closing Date, any Taxes of Seller that are allocable to
                the
                portion of such period ending prior to the Closing
                Date.

            

    

     

    2.3 Purchase
      Price.

     

    Buyer
      shall pay to Seller for the sale, conveyance transfer, assignment and delivery
      of the Assets the sum of the following amounts (the “Purchase
      Price”):

     

    
      	 	
              (a)

            	
              The
                Purchase Price to be paid for the Assets shall be comprised of the
                following components: 

            

    

     

    
      	 	
              (i)

            	
              An
                amount equal to fifty (50) basis points of the principal amount of
                each
                Pipeline Mortgage Loan closed during the first ninety (90) day period
                immediately following the Closing Date (the “Pipeline Premium”), plus the
                Pipeline Mortgage Loan Adjustment calculated pursuant to the provisions
                set forth in Exhibit
                E;
                plus 

            

    

     

    
      	 	
              (ii)

            	
              $485,134.63,
                which represents the aggregate amount of Seller’s book value on the date
                hereof for the Furniture, Fixtures and Equipment.
                

            

    

     

    2.4 Timing
      of Payments and Adjustments.

     

    The
      various elements of the Purchase Price shall be paid and adjusted as
      follows:

     

    
      	 	
              (a)

            	
              Buyer
                will pay to Seller at Closing an amount equal to (I) the entire Purchase
                Price except for the Pipeline Premium and the Pipeline Mortgage Loan
                Adjustment, plus the Seller Prepaid Expenses and the amount of the
                security deposit held by the Lessor under the Origination Premises
                Lease,
                less (II) the Seller Operating Expenses, and (III) as increased or
                decreased by the amount of the Pipeline Mortgage Loan Adjustment,
                in
                accordance with Section 2.4(b).

            

    

     

    
      	 	
              (b)

            	
              On
                or prior to the Closing Date, Buyer and Seller will mutually agree
                to a
                determination of the amount of the Pipeline Mortgage Loan Adjustment,
                which shall be determined in accordance with Exhibit
                E.
                The amount of the agreed-upon Pipeline Mortgage Loan Adjustment shall
                be
                applied to adjust the Purchase Price in accordance with Exhibit
                E.

            

    

     

    
      	 	
              (c)

            	
              The
                Pipeline Premium shall be paid as
                follows:

            

    

     

    
      	 	
              (i)

            	
              Forty
                (40) days after the Closing Date, Buyer shall pay Seller the portion
                of
                the Pipeline Premium attributable to Pipeline Mortgage Loans closed
                on the
                Closing Date and during the first thirty (30) day period following
                the
                Closing Date.

            

    

     

    
      	 	
              (ii)

            	
              Seventy
                (70) days after the Closing Date, Buyer shall pay Seller the portion
                of
                the Pipeline Premium attributable to Pipeline Mortgage Loans closed
                during
                the second thirty (30) day period following the Closing Date, plus
                such
                other amounts previously accrued but not paid to Seller pursuant
                to
                sub-section 2.4(c)(i) above.

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iii)

            	
              One
                hundred (100) days after the Closing Date, Buyer shall pay Seller
                the
                portion of the Pipeline Premium attributable to Pipeline Mortgage
                Loans
                closed during the third thirty (30) day period following the Closing
                Date,
                plus such other amounts previously accrued but not paid to Seller
                pursuant
                to sub-sections 2.4(c)(i) and (ii)
                above.

            

    

     

    
      	 	
              (d)

            	
              On
                or prior to the Closing Date, Buyer and Seller will reasonably agree
                upon
                the Pipeline Mortgage Loan Schedule; provided, however, that Buyer
                and
                Seller hereby acknowledge and agree that Buyer may, in its reasonable
                discretion, decline to include on the Pipeline Mortgage Loan Schedule
                any
                registration for or application from prospective borrowers for Residential
                Mortgage Loans that have been put into process by the Origination
                Business
                because Buyer would not be able to perform and close such loan(s)
                due to
                Buyer not possessing any licenses required for such performance.
                If Buyer
                declines to include any such loans on the Pipeline Mortgage Loan
                Schedule,
                Seller shall retain the files and documents for such loans and Seller
                shall, at its sole discretion, originate, underwrite, process and
                or close
                such loans.

            

    

     

    
      	 	
              (e)

            	
              After
                the Closing Date, Buyer shall not take any action, other than those
                actions reasonably required by circumstance, including, for example
                (and
                without limitation), based upon a borrower’s qualifications for a mortgage
                loan or changes in such qualifications, and exercised in a commercially
                reasonable manner, with respect to renegotiation of any Pipeline
                Mortgage
                Loan in any manner which is adverse to the payment to be made to
                Seller
                hereunder.

            

    

     

    2.5 Method
      of Payment.

     

    Unless
      otherwise stated, all payments under this Agreement to either party by the
      other
      shall be made in immediately available funds (a) by wire transfer to an account
      designated in writing by the receiving party, which account information shall
      be
      provided to the other party at least two (2) business days notice prior to
      payment, or (b) as otherwise mutually agreed by Buyer and Seller. 

     

    2.6 Proration
      of Expenses and Fees.

     

    
      	
            	(a)	
              All
                Operating Expenses (as such term is defined in the Origination Premises
                Lease) and utility payments, property taxes and other Taxes relating
                to
                the Origination Premises and all other expenses, fees arising in
                the
                ordinary course of business (including, but not limited to, fees
                incurred
                in connection with processing Pipeline Mortgage Loans such as charges
                for
                credit reports, field review appraisals, DISSCOTM and MARI® reports), and
                Taxes relating to the Assets (collectively, “Charges”), shall be prorated
                between the parties as of 12:01 a.m. on the Closing Date, with Seller
                responsible for Charges relating to periods or services provided
                prior to
                the Closing Date and Buyer responsible for Charges relating to periods
                including, from and after the Closing Date and services provided
                during
                such periods. 

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              For
                all purposes of this Agreement, Taxes that are based upon or related
                to
                income or receipts or imposed in connection with any sale or other
                transfer or assignment of property, or any other Tax for which an
                interim
                closing of the books is reasonably applicable (other than any Tax
                described in Section 7.7(b) hereof), shall be allocated to portions
                of a
                taxable period based on an interim closing of the books. In the case
                of
                any Tax for which an interim closing of the books is not reasonably
                applicable, such as property taxes, the amount of such Tax that is
                allocable to a portion of a taxable period shall be determined by
                multiplying the amount of Tax for the entire period by a fraction,
                the
                numerator of which is the number of days in the portion of the taxable
                period and the denominator of which is the number of days in the
                entire
                taxable period.

            

    

     

    
      	 	
              (c)

            	
              Seller
                and Buyer hereby agree that on or prior to Closing, the Parties shall
                set
                forth in writing (a) the amount of Operating Expenses for calendar
                year
                2006 and the portion of calendar year 2007 that will have elapsed
                prior to
                the Closing Date and for which Seller shall be responsible pursuant
                to the
                foregoing provisions of this Section 2.6 (“Seller Operating Expenses”) and
                (b) the amount of prepaid expenses and prepaid rent, if any, that
                Seller
                has paid and which represents Charges for which Buyer would be responsible
                pursuant to the foregoing provisions of this Section 2.6 (“Seller Prepaid
                Expenses”). 

            

    

     

    
      	 	
              (d)

            	
              If,
                after the Closing, either Party receives an invoice for Charges for
                which
                the other Party is responsible pursuant to the foregoing provisions
                of
                this Section 2.6 and which have not already otherwise been paid between
                the Parties, the Party receiving such invoice shall provide the other
                Party with written notice of such invoice. In the event that the
                other
                Party does not pay the invoice within twenty (20) days from the date
                of
                the first Party’s notice to the other of the receipt of such invoice, the
                first Party may, but is not obligated to, pay such invoice and (1)
                deduct
                such payment from any amounts otherwise payable to the other Party
                pursuant to this Agreement or (2) invoice the other Party, in which
                case,
                the other Party shall promptly pay the invoiced
                amount.

            

    

     

    2.7 Closing.

     

    The
      closing of the transactions contemplated hereby (the “Closing”) shall take place
      at the offices of Seller or its counsel at 11:00 a.m., local time, on February
      22, 2007, unless another location or time or place is mutually agreed upon
      by
      the parties in writing (the “Closing Date”). The Closing shall be effective as
      of 12:01 a.m. on the Closing Date. At the Closing, (i) ownership of the Assets
      shall be transferred to Buyer by Seller; (ii) Buyer shall remit to Seller the
      applicable portion of the Purchase Price as determined in accordance with
      Sections 2.3 and 2.4(a); and (iii) Buyer or Seller, as applicable, shall remit
      to the other Estimated Net Closing Date Charges. In the event that prior to
      or
      on the Closing Date, any one or more of the conditions precedent to either
      Buyer’s or Seller’s obligation to perform under Articles V or VI have not been
      satisfied, then the party whose performance is conditioned upon the satisfaction
      of such condition precedent may, at its sole discretion exercised in writing,
      either waive the condition or extend from time to time the period of time for
      the condition to be satisfied.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    2.8 Post-Closing
      Adjustments.

     

    In
      the
      event, on the Closing Date, the precise figures necessary for any calculation
      are not known, the calculation shall be made based on the best information
      available on the Closing Date, and adjustments shall be made promptly after
      Closing whenever precise figures are available, but no later than 1 year after
      the Closing Date. If, subsequent to the payment of the Purchase Price or the
      payment of any amounts due hereunder to either party, for any reason the
      Purchase Price or such other amount is found to be inaccurate or in error,
      the
      party benefiting from the inaccuracy or error shall pay an amount sufficient
      to
      correct and reconcile the Purchase Price and shall provide a reconciliation
      statement and other such documentation to reasonably satisfy the other party
      concerning the accuracy of such reconciliation. Such amount shall be paid to
      the
      proper party within ten (10) business days from receipt of satisfactory written
      verification of amounts due.

     

    ARTICLE
      III

    Representations
      and Warranties of Seller

    

    Seller
      hereby represents and warrants to Buyer as of the date of this Agreement and
      as
      of the Closing Date as follows:

     

    3.1 Organization.

     

    Seller
      is
      a New York limited liability company and is duly organized and validly existing
      under the laws of the State of New York and has all corporate powers and all
      governmental licenses, authorizations, permits, consents and approvals required
      to carry on the Origination Business as now being conducted. 

     

    3.2 Authority;
      Consent and Approvals.

     

    
      	
            	(a)	
              The
                execution and delivery of this Agreement by each of Seller and NYMT
                and
                the Transaction Documents to which it is a party and their consummation
                of
                the transactions contemplated hereby (inclusive of the sale of the
                Assets
                to Buyer on the terms and conditions hereof) and thereby have been
                duly
                and validly authorized by all requisite corporate
                action;

            

    

     

    
      	 	
              (b)

            	
              Each
                of Seller and NYMT has the full corporate power and authority to
                enter
                into, deliver and perform their obligations under this Agreement
                and any
                other Transaction Document to which it is a party;
                and

            

    

     

    
      	 	
              (c)

            	
              This
                Agreement has been duly executed and delivered by Seller and NYMT.
                The
                Transaction Documents to which Seller is a party will, at or prior
                to
                Closing, be duly executed and delivered by
                it.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    3.3 Binding
      Agreement.

     

    This
      Agreement has been duly executed and delivered by a duly authorized officer
      of
      Seller and by a duly authorized officer of NYMT and constitutes each such
      party’s legal, valid and binding obligation. Assuming that this Agreement is
      duly authorized, executed and delivered by Buyer and FCMC, this Agreement is
      enforceable against Seller in accordance with its terms except as may be limited
      by bankruptcy, insolvency, receivership, conservatorship or similar laws
      affecting the rights of creditors generally or equitable principles limiting
      the
      right to obtain specific performance or other similar relief (the
“Enforceability Exception”). Assuming that this Agreement is duly authorized,
      executed and delivered by Buyer and FCMC, this Agreement is enforceable against
      NYMT in accordance with its terms, subject to the Enforceability Exception.
      The
      Transaction Documents to which Seller is a party will, when executed and
      delivered by Seller at Closing, constitute legal, valid and binding obligations
      of Seller, and, assuming that the Transaction Documents are duly authorized,
      executed and delivered by the other parties thereto, are enforceable against
      Seller in accordance with their terms, subject to the Enforceability
      Exception.

     

    3.4 Title
      to Assets; Marketability.

     

    
      	 	
              (a)

            	
              Seller
                has, and at Closing Buyer will receive from Seller, good and valid
                marketable, indefeasible, fee simple title to all of the Assets to
                which
                it asserts claims of ownership and valid leasehold interests in all
                of the
                Assets leased by it, in each case free and clear of all Liens (other
                than
                Assumed Liabilities, Liens for Taxes not yet due and payable and
                Liens set
                forth on Schedule 3.4, which are to be released at or prior to Closing).
                Upon consummation of the transactions contemplated hereby, Seller
                shall
                have conveyed to Buyer good and marketable title in and to, or, in
                the
                case of assets which are leased or licensed pursuant to Assumed Leases,
                a
                valid leasehold interest or license in, each of the Assets, free
                and clear
                of all Liens (other than Assumed Liabilities, Liens for Taxes not
                yet due
                and payable). Notwithstanding the foregoing, Seller makes no
                representations or warranties with respect to title to the unregistered
                service marks “E-Z Alt-A”, “EZ Alt-A”, “Mortgage Power” or the cartoon
                characters used by Seller.

            

    

     

    
      	 	
              (b)

            	
              Seller
                has made available for inspection by Buyer all of the Acquired Assets
                which are tangible (“Tangible Assets”, including, without limitation,
                Furniture, Fixtures and Equipment), and such Tangible Assets are
                sold and
                purchased hereunder on an "as is" basis, with all faults, and no
                further
                representation is made by Seller to such Tangible
                Assets.

            

    

     

    
      	
            	(c)	
              Exhibit
                C
                sets forth a true and correct listing of the Furniture, Fixtures
                and
                Equipment and the book value on the date hereof for each piece of
                Furniture, Fixtures and Equipment.

            

    

     

    3.5 Leases.

     

    True,
      correct and complete copies of the Assumed Leases are included with Exhibit
      A,
      and the
      Assumed Leases are valid, binding, and enforceable in accordance with their
      respective terms, subject to the Enforceability Exception. There are no existing
      defaults or circumstances which, with notice or the passage of time or
      otherwise, would constitute defaults, by Seller or, to the knowledge of Seller,
      any other party to the Assumed Leases. The security deposit under the
      Origination Premises Lease as of the Closing Date will be $6933.00 and, to
      Seller’s knowledge, there is no claim by the Lessor against any or all of such
      security deposit and no facts or circumstances exist that would serve as a
      basis
      for such a claim.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    3.6 Litigation.
      

     

    To
      Seller’s knowledge, there is no action, suit, proceeding or investigation of any
      kind pending or, to Seller’s knowledge, threatened against or affecting the
      Origination Business before any Governmental Authority, quasi-governmental
      organization, securities exchange, or arbitrator of any kind which, would draw
      into question the validity of this Agreement or of any action taken or to be
      taken in connection with the obligations of Seller contemplated herein or which
      in any manner challenges or seeks to prevent, enjoin, alter or would likely
      materially delay or impair the transactions contemplated by this Agreement,
      except in each case for actions which, if adversely determined, would not have
      a
      Material Adverse Effect on Seller or Buyer. 

     

    3.7 No
      Commissions to Third Parties.

     

    Other
      than Milestone Advisors, LLC whose fee will be paid by Seller, Seller has not
      dealt with any broker or agent or anyone else who might be entitled to a fee
      or
      commission in connection with the transactions contemplated hereby.

     

    3.8 Good
      Standing.

     

    Seller
      is
      a mortgage lender and servicer in good standing with each Agency and all other
      Governmental Authorities to the extent required with respect to the Origination
      Business.

     

    3.9 Regulatory
      Matters.

     

    There
      are
      no pending or, to the knowledge of Seller, threatened, disputes or controversies
      between Seller and any federal state or local Governmental Authority or any
      Agency in connection with, directly related to, or that would affect the
      Origination Business except in each case for disputes or controversies which,
      if
      adversely determined, would not have a Material Adverse Effect on Seller or
      Buyer.

     

    3.10 Compliance
      with Law.

     

    
      	 	
              (a)

            	
              The
                Origination Business has been operated in compliance with Seller’s
                organizational documents and charter and all Applicable
                Laws. Seller has not received notice from any Governmental Authority
                alleging that it is not in compliance with, or that it is in violation
                of,
                any Applicable Law with respect to the Origination Business and or
                the
                Origination Premises.  To
                its knowledge, the Seller and each entity involved in the solicitation,
                origination, processing and/or taking of registrations or applications
                for
                a mortgage loan from a consumer as part of the Origination Business,
                including but not limited to any broker or correspondent (including
                employees, independent contractors, agents and affiliates of the
                broker or
                correspondent) are in compliance with Applicable Requirements. Except
                as
                set forth on Schedule 3.10, the Seller has not received any written
                notice
                of any asserted past or present failure to comply with Applicable
                Requirements with respect to the Origination Business. Schedule 3.10
                sets
                forth a true, correct and complete description of any cure of any
                such
                failures or initiation of a cure of any such
                failure.

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              Except
                as set forth on Schedule 3.10(b), to Seller’s knowledge, Seller has
                complied with all Applicable Law relating to labor and employment
                in
                connection with, directly related to, or that would affect the Origination
                Business, including provisions thereof relating to civil rights,
                occupational safety and health, wages, hours, equal opportunity,
                collective bargaining, employee benefits and employee benefit plans,
                and
                the payment of social security and other Taxes. To Seller’s knowledge,
                there are no unfair labor practice charges or complaints, minimum
                wage or
                overtime or equal pay charges or complaints, occupational safety
                and
                health charges or complaints, wrongful discharge charges or complaints,
                harassment charges or complaints, retaliatory charges or complaints,
                employee grievances, discrimination claims, claims for additional
                compensation, breach of contract, claims or charges relating to employment
                or termination of employment, or workers’ compensation claims pending or,
                to Seller’s knowledge, threatened against Seller in connection with,
                directly related to, or that would affect the Origination Business,
                except
                in each case for actions which, if adversely determined, would not
                have a
                Material Adverse Effect on Seller or Buyer.

            

    

     

    
      	 	
              (c)

            	
              To
                Seller’s knowledge, there are no outstanding orders or charges against
                Seller in connection with, directly related to, or that would affect
                the
                Origination Business under any occupational health or safety legislation
                and, to Seller’s knowledge, none have been threatened. All material
                levies, assessments and penalties made against Seller in connection
                with,
                directly related to, or that would affect the Origination Business
                pursuant to all applicable workers compensation or unemployment insurance
                legislation as of the date hereof have been paid by Seller and Seller
                has
                not been reassessed under any such
                legislation.

            

    

    

    
      	 	
              (d)

            	
              As
                of the Closing Date (or such later date as required by applicable
                law or
                contract), Seller shall have duly paid or otherwise provided for
                all
                obligations to individuals who are directors, officers, personnel,
                independent contractors, agents, or other representatives of Seller,
                including those who become personnel of Buyer, for retirement, severance,
                deferred compensation, incentive, stock option, vacation, bonus,
                unemployment, partnership and other payments, distributions and benefits
                accrued prior to the Closing Date and all contributions (voluntary
                or
                otherwise) to any payments under all
                Plans.

            

    

     

    3.11 Defaults.

     

    The
      execution, delivery, and performance by Seller and NYMT of this Agreement and
      the consummation of the transactions contemplated by this Agreement will not,
      (a) violate any provision of the charter or organizational documents of Seller
      or NYMT, (b) result in any breach or violation of, or be in conflict with or
      constitute (with or without due notice or lapse or time or both) a default,
      or
      give rise to any right of termination, modification, cancellation, or
      acceleration under (i) any term of any agreement or instrument to which Seller
      or NYMT is a party or by which Seller or NYMT or any of their respective assets
      or properties is bound, including the Assumed Leases, Assumed Broker Agreements
      and the Origination Premises Lease, (ii) Applicable Law, or (iii) any Applicable
      Requirements, including any that, if exercised, would impair Seller’s or NYMT’s
      ability, financial or otherwise, to perform their respective obligations under
      and consummate the transactions contemplated by this Agreement, or (c) result
      in
      the creation or imposition of any lien upon any of the Assets.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    3.12 Consents.

     

    Except
      as
      set forth on Schedule 3.12 (collectively, the “Seller Required Consents”), to
      Seller’s knowledge, no consent, approval or authorization of, or declaration,
      filing or registration with, any Governmental Authority, Agency or any other
      Person is required to be made or obtained by Seller or NYMT in connection with
      the execution, delivery or performance of this Agreement or the applicable
      Transaction Documents by Seller and NYMT, as applicable. 

     

    3.13 Assumed
      Broker Agreements.

     

    Seller
      has delivered to Buyer true, correct and complete copies of the Assumed Broker
      Agreements, each of which is an executed original or is a certified copy of
      the
      original. Each of the Assumed Broker Agreements is valid, binding and
      enforceable in accordance with their respective terms, subject to the
      Enforceability Exception. Each of the Assumed Broker Agreements in full force
      and effect and has not been amended, modified, or altered except as the same
      shall have been provided to Buyer. Seller has performed all obligations required
      to be performed by it as of the Closing Date and is not in default thereunder,
      and no event has occurred and remains incurred which constitutes or which,
      with
      notice or the passage of time or otherwise, would constitute a default or result
      in a right of acceleration, termination or any similar right by any party under
      any such Assumed Broker Agreement. Seller will make and be responsible for
      all
      payments under the Assumed Broker Agreements with respect to mortgage loans
      that
      closed in the name of Seller on or before the Closing Date. To the knowledge
      of
      Seller, there are no existing defaults or circumstances which, with notice
      or
      the passage of time or otherwise, would constitute defaults, by any other party
      to the Assumed Broker Agreements. No Assumed Broker Agreement prohibits
      assignment to Buyer as contemplated in the Broker Assignment and Assumption
      Agreement.

     

    3.14 Employment
      -Related Matters.

     

    Seller
      has provided to Buyer a true and complete list of the Transferred Employees.
      Each Transferred Employee is employed on an at-will basis and, except as shall
      have been terminated at or before the Closing, Seller does not have any written
      or oral agreement with any such Transferred Employee which would interfere
      with
      Seller’s ability to discharge such personnel or Buyer’s ability to hire such
      personnel. The Seller is not a party to or bound by any employment agreement
      (express or implied), collective bargaining agreement, or other contract or
      agreement with any labor organization, or other representative of any of the
      Seller’s employees nor is any such contract or agreement presently being
      negotiated with respect to the Origination Business and or Transferred
      Employees. 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    3.15 Origination
      Premises Lease.

     

    Seller
      has a valid and enforceable leasehold interest in the premises covered by the
      Origination Premises Lease and such interest is free and clear of all Liens,
      except as set forth in said lease. Neither the Origination Premises Lease nor
      the premises demised thereunder has been assigned, sublet or licensed by Seller.
      Seller has not exercised, nor given notice of its exercise, of any renewal
      or
      termination option under the Origination Premises Lease. Seller has received
      no
      notices from the Lessor regarding potential relocation of Seller pursuant to
      Article 12 of the Origination Premises Lease. The Origination Premises Lease
      is
      in full force and effect and is the legal, valid and binding obligation of
      the
      Seller, enforceable in accordance with its terms, subject to the Enforceability
      Exception. There are no existing defaults or circumstances which, with the
      notice or passage of time or otherwise, would constitute defaults, by Seller
      or
      to the knowledge of Seller, any other party to the Origination Premises
      Lease.

     

    3.16 Intellectual
      Property

     

    
      	
            	(a)	
              Schedule
                1 contains a true and complete list of the Intellectual Property
                that is
                being sold by Seller to Buyer. 

            

    

     

    
      	 	
              (b)

            	
              Except
                as disclosed on Schedule 3.16(b), neither Seller, the conduct of
                the
                Origination Business, nor the Acquired Intellectual Property has
                been
                alleged to have, and to Seller’s knowledge, has Seller, the conduct of the
                Origination Business, or the Acquired Intellectual Property, infringed
                upon or misappropriated any intellectual property or other proprietary
                information or rights of another Person. There are no pending, and
                to
                Seller’s knowledge, no threatened claims, actions or proceedings
                contesting or challenging the Acquired Intellectual Property, or
                Seller’s
                use of the Acquired Intellectual Property that is owned by another
                Person.
                To Seller’s knowledge, no third party including any current or former
                personnel or contractor of Seller, is infringing upon, misappropriating,
                or otherwise violating Seller’s rights to the Acquired Intellectual
                Property.

            

    

    

    3.17 Pipeline
      Mortgage Loans

     

    
      	 	
              (a)

            	
              As
                of the Closing, to Seller’s knowledge, each Pipeline Mortgage Loan that is
                approved for funding (“Approved Pipeline Mortgage Loan”) and that is
                allocated to a particular Investor is or was eligible in all material
                respects for sale under an Investor Commitment and complies or complied
                with all requirements of such Investor. Except as set forth on Schedule
                3.17(a), as of the Closing, to Seller’s knowledge, each Approved Pipeline
                Mortgage Loan not allocated to a particular Investor in accordance
                with
                the foregoing sentence would be otherwise eligible for sale in all
                material respects under an Investor Commitment upon allocation to
                an
                Investor. Except as set forth on Schedule 3.17(a), to Seller’s knowledge,
                there exists no fact or circumstance that would entitle the applicable
                Insurer or Investor to (i) demand from Seller or Buyer either repurchase
                of any Pipeline Mortgage Loan or indemnification for losses or refuse
                to
                purchase a Pipeline Mortgage Loan, (ii) impose on Seller or Buyer
                sanctions, penalties or special requirements in respect of any Pipeline
                Mortgage Loan, or (iii) rescind any insurance policy or reduce insurance
                benefits in respect of any Pipeline Mortgage Loan which would result
                in a
                breach of any obligation of Seller or Buyer under any Investor Commitment
                or contract with an Investor. Each Pipeline Mortgage Loan complies
                in all
                material respects with Applicable Requirements for the stage of processing
                that has been achieved as of the date of this Agreement or Closing
                Date,
                as applicable. 

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              The
                origination, purchase and sale practices used by Seller or any other
                Person with respect to each Pipeline Mortgage Loan have been in compliance
                with Applicable Requirements, and are proper, prudent and customary
                in the
                mortgage banking business. 

            

    

     

    
      	 	
              (c)

            	
              There
                has been no fraudulent action on the part of Seller, and to Seller’s
                knowledge, there has been no fraudulent action on the part of any
                other
                Person (including any borrower, appraiser, builder or developer,
                credit
                reporting agency, settlement agent, realtor, broker or correspondent),
                in
                each case in connection with the solicitation, origination, processing
                and/or taking of registrations or applications for any Pipeline Mortgage
                Loan.

            

    

     

    
      	 	
              (d)

            	
              No
                Investor Commitment provides for any arrangement pursuant to which
                the
                Seller would bear the risk of any default under or foreclosure on
                a
                Pipeline Mortgage Loan except insofar as such risk of loss would
                be based
                upon (i) a breach by Seller of a contractual representation, warranty
                or
                covenant, (ii) expenses, such as legal fees, in excess of the
                reimbursement limits, if any, set forth in the Applicable Requirements,
                or
                (iii) industry standard exceptions for early defaults and early
                payoff.

            

    

     

    
      	 	
              (e)

            	
              Seller
                is not now, nor has it been during the past twelve (12) months, subject
                to
                any material fine, suspension, settlement or other agreement or
                administrative agreement or sanction by, or any obligation to indemnify,
                HUD, GNMA, VA, FNMA, FHLMC or other Agency, Investor or Insurer,
                relating
                to the Origination Business.

            

    

     

    
      	 	
              (f)

            	
              No
                facts that currently exist with respect to Residential Mortgage Loan
                sales
                heretofore undertaken by Seller in the Origination Business would
                be
                reasonably likely to materially and adversely affect the ability
                of Buyer
                to continue to undertake loan sales to the same Investors in the
                future in
                accordance with existing practices of the Origination
                Business.

            

    

     

    
      	 	
              (g)

            	
              No
                current or former officer, manager, director, mortgage loan originator
                or
                other personnel of Seller in the Origination Business has been indicted,
                arraigned or convicted, or currently is (or has been in twelve (12)
                months
                prior to the date hereof) under investigation for any criminal offense
                or
                any fraudulent activity related to the origination, sale or servicing
                of
                any Residential Loans.

            

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (h)

            	
              To
                Seller’s knowledge, each Pipeline Mortgage Loan is, as of the Closing
                Date, in compliance with all applicable anti-predatory and abusive
                lending
                laws. As of the Closing Date, the terms and conditions of each Pipeline
                Mortgage Loan, including without limitation points, fees, and prepayment
                penalty entered into the Seller’s mortgage origination software or
                disclosed to the consumer by the Seller, broker or correspondent,
                will not
                result in a Pipeline Mortgage Loan, when closed or funded, being
                classified as (i) a “high cost” loan under the Home Ownership and Equity
                Protection Act of 1994 as amended, or (ii) a “high cost,” “threshold,”
                “covered,” “predatory,” “abusive,” or similarly defined loan, including
                refinance loans, under any other applicable state, federal or local
                law
                (or a similarly classified loan using different terminology under
                a law
                imposing heightened regulatory scrutiny or additional legal liability
                for
                residential mortgage loans having high interest rates, points and/or
                fees), or (iii)
                a “High Cost Loan” or “Covered Loan” as defined in Appendix E of Standard
                & Poor’s Glossary for File Format for LEVELS Version 5.6(b).
                As of the Closing Date, no predatory or deceptive lending practices,
                including, without limitation, the extension of credit without regard
                to
                the ability of the borrower to repay and the extension of credit
                which has
                no apparent benefit to the borrower, were employed in connection
                with a
                Pipeline Mortgage Loan. Seller has implemented and conducted compliance
                procedures to determine if each Pipeline Mortgage Loan would fall
                into one
                of the categories above and has performed a review of the disclosure
                provided to the borrower in accordance with such Applicable Requirements
                and the related Mortgage Note in order to determine that such Pipeline
                Mortgage Loan does not violate any Applicable
                Requirements.

            

    

     

    3.18 Solvency.
      

     

    Seller
      has been and now is solvent. Seller is not a party to any bankruptcy proceeding,
      whether voluntary or involuntary, actual or threatened, and has not made an
      assignment of its assets for the benefit of any creditor or otherwise.
      Immediately after the consummation of the transactions contemplated hereby,
      Seller will be solvent.

     

    3.19 Absence
      of Changes.

     

    Since
      December 1, 2006, Seller has conducted its operations of the Origination
      Business according to its ordinary and usual course of business, consistent
      with
      past practice and has not (a) suffered any adverse change in its business,
      operations, prospects or financial condition (except for fluctuations in the
      interest rate environment and factors affecting the mortgage industry as a
      whole), (b) incurred any indebtedness for borrowed money or guaranteed, assumed
      or endorsed the obligations of any other Person, (c) except in the ordinary
      course of business, sold, transferred or otherwise disposed of any assets of
      the
      Origination Business, or (d) created or permitted to exist any Lien on any
      Assets, in each case except as otherwise expressly set forth in this Agreement
      and or an exhibit or schedule hereto.

     

    3.20 Financial
      Information.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    Seller’s
      income from continuing operations of the Origination Business before income
      taxes, extraordinary items and cumulative effect of a change in accounting
      principle for the fiscal year ending December 31, 2006, determined in accordance
      with United States generally accepted accounting principles, was equal to or
      less than two million five hundred thousand dollars ($2,500,000).

     

    ARTICLE
      IV

    Representations
      and Warranties of Buyer

    

    Buyer
      hereby represents and warrants as of the date of this Agreement and as of the
      Closing Date as follows:

     

    4.1 Organization.

     

    Buyer
      is
      a New York corporation and is duly organized and validly existing under the
      laws
      of the State of New York.

     

    4.2 Authority;
      Consents and Approvals.

     

    
      	 	
              (a)

            	
              The
                execution and delivery of this Agreement by each of Buyer and FCMC
                and the
                Transaction Document to which it is a party and its consummation
                of the
                transactions contemplated hereby (inclusive of the sale of the Assets
                to
                Buyer on the terms and conditions hereof) and thereby, have been
                duly and
                validly authorized by all requisite corporate
                action;

            

    

     

    
      	 	
              (b)

            	
              Each
                of Buyer and FCMC has the full corporate power and authority to enter
                into, deliver and perform their obligations under this Agreement
                and any
                other Transaction Document to which it is a party;
                

            

    

     

    
      	 	
              (c)

            	
              This
                Agreement has been duly executed and delivered by Buyer and FCMC.
                The
                Transaction Documents to which Buyer is a party will, by Closing,
                have
                been duly executed and delivered by it;
                and

            

    

    

    
      	
            	(d)	
              Buyer
                has full corporate power and authority to close the Pipeline Mortgage
                Loans. 

            

    

     

    4.3 Binding
      Agreement.

     

    This
      Agreement has been duly executed and delivered by a duly authorized officer
      of
      Buyer and by a duly authorized officer of FCMC and constitutes each such party’s
      legal, valid and binding obligation. Assuming that this Agreement is duly
      authorized, executed and delivered by Seller and NYMT, this Agreement is
      enforceable against Buyer in accordance with its terms, subject to the
      Enforceability Exception. Assuming that this Agreement is duly authorized,
      executed and delivered by Seller and NYMT, this Agreement is enforceable against
      FCMC in accordance with its terms, subject to the Enforceability Exception.
      The
      Transaction Documents to which Buyer is a party will, when it is executed and
      delivered by Buyer at Closing, constitute legal, valid and binding obligations
      of Buyer, and, assuming that the Transaction Documents are duly authorized,
      executed and delivered by the other parties thereto, be enforceable against
      Buyer in accordance with their terms, subject to the Enforceability
      Exception.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    4.4 No
      Commissions to Third Parties.

     

    Other
      than Milestone Advisors, LLC, Buyer has not dealt with any broker or agent
      or
      anyone else who might be entitled to a fee or commission in connection with
      the
      transaction contemplated hereby.

     

    4.5 Buyer’s
      Due Diligence.

     

    Buyer
      has
      had an opportunity to conduct due diligence with respect to the Origination
      Business and the Assets. Buyer has reviewed and has had access to all documents,
      records and information which it has desired to review related to the
      Origination Business, and has had the opportunity to ask questions and have
      received sufficient answers, in connection with its decision to enter into
      this
      Agreement and to consummate the transactions contemplated hereby. In deciding
      to
      enter into this Agreement, and to consummate the transactions contemplated
      hereby, Buyer has relied solely upon its own knowledge, investigation, and
      analysis (and that of its attorneys, accountants, consultants and
      representatives) and not on any disclosure or representation made by, or any
      duty to disclose on the part of, Seller or any of its Affiliates, or any of
      their representatives, other than the express representations and warranties
      of
      Seller set forth in this Agreement, the Schedules and exhibits hereto and
      Transaction Documents. Seller agrees and acknowledges that Buyer’s conduct of
      due diligence with respect to the Origination Business and the Assets shall
      not
      affect Buyer’s ability to rely on the representations and warranties of Seller
      set forth in this Agreement, the Schedules and exhibits hereto and Transaction
      Documents.

     

    4.6 Litigation.
      

     

    To
      Buyer’s knowledge, there is no action, suit, proceeding or investigation of any
      kind pending or, to Buyer’s knowledge, threatened against or affecting the Buyer
      before any Governmental Authority, quasi-governmental organization, securities
      exchange, or arbitrator of any kind which, would draw into question the validity
      of this Agreement or of any action taken or to be taken in connection with
      the
      obligations of Buyer contemplated herein or which in any manner challenges
      or
      seeks to prevent, enjoin, alter or would likely materially delay or impair
      the
      transactions contemplated by this Agreement, except in each case for actions
      which, if adversely determined, would not have a Material Adverse Effect on
      Seller or Buyer. 

     

    4.7 Good
      Standing.

     

    Buyer
      is,
      or will be prior to Closing, a mortgage lender and servicer in good standing
      with each Agency and all other Governmental Authorities to the extent required
      with respect to the Pipeline Mortgage Loans.

     

    4.8 Regulatory
      Matters.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    There
      are
      no pending or, to the knowledge of Buyer, threatened, disputes or controversies
      between Buyer and any federal state or local Governmental Authority or any
      Agency that would affect Buyer’s ability to service or close the Pipeline
      Mortgage Loans except in each case for disputes or controversies which, if
      adversely determined, would not have a Material Adverse Effect on Seller or
      Buyer.

     

    4.9 Defaults.

     

    The
      execution, delivery, and performance by Buyer and FCMC of this Agreement and
      the
      consummation of the transactions contemplated by this Agreement will not, (a)
      violate any provision of the charter or organizational documents of Buyer or
      FCMC, (b) result in any breach or violation of, or be in conflict with or
      constitute (with or without due notice or lapse or time or both) a default,
      or
      give rise to any right of termination, modification, cancellation, or
      acceleration under (i) any term of any agreement or instrument to which Buyer
      or
      FCMC is a party or by which Buyer or FCMC any of their respective assets or
      properties is bound, or (ii) any Applicable Law, or (iii) any Applicable
      Requirement, including any that, if exercised, would impair Buyer’s or FCMC’s
      ability, financial or otherwise, to perform their respective obligations under
      and consummate the transactions contemplated by this Agreement.

     

    4.10 Consents.

     

    Except
      as
      set forth on Schedule 4.10 (collectively, the “Buyer Required Consents”), to
      Buyer’s knowledge, no consent, approval or authorization of, or declaration,
      filing or registration with, any Governmental Authority, Agency or any other
      Person is required to be made or obtained by Buyer or FCMC in connection with
      the execution, delivery or performance of this Agreement or the applicable
      Transaction Documents by Buyer, as applicable. 

     

    4.11 Availability
      of Funds.

     

    Buyer
      has, and at the Closing will have, sufficient access to funds to pay the
      Purchase Price.

     

    ARTICLE
      V

    Conditions
      Precedent to the Obligations of Buyer

    

    The
      obligation of Buyer to effect the Closing hereunder is subject to the
      satisfaction (or express waiver in writing by Buyer) of each of the following
      conditions on or prior to the Closing Date:

     

    5.1 Representations
      and Warranties True.

     

    The
      representations and warranties of Seller contained herein shall be true and
      accurate in all material respects as of the date when made and shall be deemed
      to be made again at and as of the Closing Date and (except for changes
      specifically contemplated by this Agreement) shall then be true and accurate
      in
      all material respects.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    5.2 Performance
      of Covenants.

     

    Seller
      shall have performed and complied in all material respects with each and every
      obligation, covenant, and condition required by this Agreement to be performed
      or complied with by it prior to or on the Closing Date.

     

    5.3 Corporate
      Proceedings.

     

    All
      corporate and other proceedings required to be conducted by Seller in connection
      with the transactions contemplated by this Agreement shall have been completed
      in the manner required by applicable law and in accordance with the articles
      of
      organization and by-laws of Seller so as to give such transactions full force
      and effect. 

     

    5.4 Lease
      for Origination Premises.

     

    Seller
      and Lessor shall have executed and delivered to Buyer a lease assignment for
      the
      Origination Premises Lease in the form attached hereto as Exhibit
      F.
      Lessor
      shall have executed and delivered to Buyer an estoppel certificate in the form
      attached hereto as Exhibit
      G,
      which
      shall not have been adversely modified or withdrawn as of the
      Closing.

     

    5.5 No
      Governmental or Other Proceedings.

     

    No
      action
      or proceeding shall be instituted, pending or threatened before any court or
      Governmental Authority or Agency and no claim or demand shall have been made
      against Buyer or Seller seeking to restrain or prohibit, to obtain damages
      or
      other relief in connection with or otherwise interfere with the consummation
      of
      the transactions contemplated by this Agreement, the ownership or operation
      by
      Buyer or any of its Affiliates or all or any material portion of the Assets
      or
      the business or assets of Buyer or any of its Affiliates or to compel Buyer
      or
      any of its Affiliates to dispose of all or any material portion of the assets
      of
      Buyer or any of its Affiliates or seeking to require divestiture by Buyer or
      any
      of its Affiliates of any Assets, or to obtain damages or other relief in
      connection with the consummation of the transactions contemplated by this
      Agreement, and which, if adversely determined, would have a Material Adverse
      Effect on Buyer.

     

    5.6 Delivery
      of Documents and Possession.

     

    Seller
      shall have delivered to Buyer:

     

    
      	 	
              (a)

            	
              The
                Bill of Sale, Assignment and Assumption Agreement, Broker Assignment
                and
                Assumption Agreement, and any other assignments of leases and contracts
                necessary to vest in Buyer all of Seller’s right, title and interest in
                and to the Assets, each in form and substance reasonably acceptable
                to
                Buyer and executed by Seller.

            

    

     

    
      	 	
              (b)

            	
              Physical
                possession of the tangible Assets.

            

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              All
                other documents Buyer may reasonably request relating to the existence
                of
                Seller and the authority of Seller to execute and perform under the
                provisions of this Agreement.

            

    

     

    
      	 	
              (d)

            	
              UCC
                Financing Statement Termination Statements (if any are required to
                terminate UCC statements set forth on Schedule 3.4, if any) and any
                other
                document required in order to terminate any security interests covering
                or
                encumbering the Assets, including those set forth on Schedule
                3.4.

            

    

     

    
      	 	
              (e)

            	
              A
                certificate from the Secretary of State of New York regarding the
                existence of Seller. 

            

    

     

    
      	 	
              (f)

            	
              A
                certificate from the Secretary of the Seller, in form and substance
                reasonably acceptable to Buyer, (i) certifying that the Board of
                Directors
                of Seller has duly adopted a resolution, approving this Agreement
                and
                authorizing an officer to execute and deliver this Agreement and
                such
                related agreements and such resolution is in full force and effect
                and
                (ii) attaching a true, correct and complete copy of Seller’s charter and
                by-laws.

            

    

     

    
      	 	
              (g)

            	
              Copies
                or originals of Seller’s documents associated with the Pipeline Mortgage
                Loans.

            

    

     

    
      	 	
              (h)

            	
              A
                certificate, in form and substance reasonably satisfactory to Buyer,
                signed by an executive officer of Seller, dated the Closing Date,
                certifying as to the matters set forth in Sections 5.1 and 5.2 as
                of the
                Closing Date.

            

    

    

    
      	 	
              (i)

            	
              If
                a license to the Leased Premises is requested by Seller, the License
                Agreement in the form attached hereto as Exhibit
                I,
                executed by Seller.

            

    

     

    5.7 Required
      Consents.

     

    The
      Seller Required Consents shall have been obtained, made or complied with and
      Seller shall have delivered to Buyer a copy of such Seller Required Consents;
      provided, that no delay in obtaining any Seller Required Consent prior to the
      Closing Date shall allow either Buyer or Seller to delay the Closing unless
      the
      failure to obtain such Seller Required Consent is reasonably likely to (a)
      result in a Material Adverse Effect on Buyer or Seller or (b) materially and
      adversely affect Buyer’s ability to have full benefit of the Acquired Assets.

     

    5.8 Employment
      of the Transferred Employees.

     

    
      	
            	(a)	
              Richard
                W. Payne III and Joseph J. Gorton shall have entered into an employment
                agreement with Buyer on or prior to the Closing
                Date.

            

    

     

    
      	 	
              (b)

            	
              Subject
                to Section 7.13, the individuals listed in Exhibit
                D
                to
                whom Buyer has offered employment shall have resigned from Seller’s
                employ, shall have accepted employment with Buyer on or prior to
                the
                Closing Date and shall have made themselves available for work on
                the
                Closing Date as employees of Buyer.

            

    

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    5.9 Payment
      of Commissions

     

    Seller
      shall have paid, or shall undertake to pay within thirty (30) days after
      Closing, any commissions owed to and earned by any of Seller’s employees,
      brokers or correspondents in respect of mortgage loans originated by the
      Origination Business which have closed prior to the Closing.

     

    5.10 Allocation
      Statement

     

    Buyer
      and
      Seller shall have agreed upon an Allocation Statement.

     

    5.11 Pipeline
      Mortgage Loan Adjustment

     

    Buyer
      and
      Seller shall have agreed upon the amount of the Pipeline Mortgage Loan
      Adjustment in accordance with Section 2.4(b).

     

    ARTICLE
      VI

    Conditions
      Precedent to the Obligations of Seller

    

    The
      obligation of Seller to effect the Closing hereunder is subject to the
      satisfaction (or express waiver in writing by Seller) of each of the following
      conditions on or prior to the Closing Date:

     

    6.1 Representations
      and Warranties True.

     

    The
      representations and warranties of Buyer contained herein shall be true and
      accurate in all material respects as of the date when made and shall be deemed
      to be made again at and as of the Closing Date and (except for changes
      specifically contemplated by this Agreement) shall then be true and accurate
      in
      all material respects.

     

    6.2 Performance
      of Covenants.

     

    Buyer
      shall have performed and complied in all material respects with each and every
      covenant and agreement and condition required by this Agreement to be performed
      or complied with by it prior to or on the Closing Date.

     

    6.3 Corporate
      Proceedings.

     

    All
      corporate and other proceedings required to be conducted by Buyer in connection
      with the transactions contemplated by this Agreement shall have been completed
      in the manner required by applicable law and in accordance with the articles
      of
      incorporation or charter and by-laws of Buyer so as to give such transactions
      full force and effect.

     

    6.4 No
      Governmental or Other Proceedings.

     

    No
      action
      or proceeding shall be pending or threatened before any court or Governmental
      Authority or Agency and no claim or demand shall have been made against Buyer
      or
      Seller seeking to restrain or prohibit or to obtain damages or other relief
      in
      connection with the consummation of the transactions contemplated by this
      Agreement, and which, if adversely determined, would have a Material Adverse
      Effect on Seller..

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    6.5 Consents
      and Approvals.

     

    The
      Buyer
      Required Consents shall have been obtained, made or complied with and Seller
      shall have delivered to Buyer a copy of such Buyer Required Consents; provided,
      that no delay in obtaining any Buyer Required Consent prior to the Closing
      Date
      shall allow either Buyer or Seller to delay the Closing unless the failure
      to
      obtain such Buyer Required Consent is reasonably likely to result in a Material
      Adverse Effect on Buyer or Seller. 

     

    6.6 Delivery
      of Documents

     

    Buyer
      shall have delivered to Seller:

     

    
      	 	
              (a)

            	
              A
                certificate, in form and substance reasonably satisfactory to Seller,
                signed by an executive officer of Buyer, dated the Closing Date,
                certifying as to the matters set forth in Sections 6.1 and 6.2 as
                of the
                Closing Date.

            

    

     

    
      	 	
              (b)

            	
              The
                Assignment and Assumption Agreement and Broker Assignment and Assumption
                Agreement, executed by Buyer.

            

    

     

    
      	 	
              (c)

            	
              A
                certificate from the Secretary of State of New York regarding the
                existence of Buyer and other documents Seller may reasonably request
                relating to the existence of Seller and the authority of Seller to
                execute
                and perform under the provisions of this Agreement.
                

            

    

     

    
      	 	
              (d)

            	
              A
                certificate from the Secretary of the Buyer, in form and substance
                reasonably acceptable to Seller, (i) certifying that the Board of
                Directors of Buyer has duly adopted a resolution, approving this
                Agreement
                and authorizing an officer to execute and deliver this Agreement
                and such
                related agreements and such resolution is in full force and effect
                and
                (ii) attaching a true, correct and complete copy of Seller’s charter and
                by-laws.

            

    

     

    
      	 	
              (e)

            	
              Lease
                assignment for the Origination Premises Lease in the form attached
                hereto
                as Exhibit
                F
                executed by Buyer and Lessor.

            

    

     

    
      	 	
              (f)

            	
              If
                a license to the Leased Premises is requested by Seller, the License
                Agreement in the form attached hereto as Exhibit
                I,
                executed by Buyer.

            

    

     

    6.7 Pipeline
      Mortgage Loan Adjustment

     

    Buyer
      and
      Seller shall have agreed upon the amount of the Pipeline Mortgage Loan
      Adjustment in accordance with Section 2.4(b).

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VII

    Certain
      General Covenants

     

    7.1 Pursuit
      of Approvals; Cooperation

     

    
      	 	
              (a)

            	
              Promptly
                following the execution and delivery hereof, Seller and Buyer shall
                file
                and use their commercially reasonable efforts to obtain all Seller
                Required Consents and Buyer Required Consents and other consents,
                approvals, permits, authorizations, notices, and registrations
                (collectively, “Filings and Consents”) necessary to consummate this
                transaction or otherwise required by any applicable law, regulation
                or
                rule in connection with the transactions contemplated herein, including
                compliance with securities laws or regulations. Each Party shall
                cooperate
                and consult with each other with respect to the making of all Filings
                and
                obtaining all Consents and each Party will keep the others apprised
                of the
                status of matters relating thereto. To the extent permitted by law,
                the
                Seller and Buyer shall promptly furnish each other with copies of
                written
                communications received from or delivered by any of them to any
                Governmental Authority, Agency, Investor or other third party in
                respect
                of the transactions contemplated hereby.
                If, in order to properly prepare documents referred to in this Section,
                it
                is necessary that either Seller or Buyer be furnished with additional
                information relating to the Origination Business, the Acquired Assets
                or
                Assumed Liabilities and such information is in the possession of
                a Party
                (subject, in each case, to such Party's then existing document retention
                policy) and may legally be provided to the other Party, such Party
                agrees
                to use its best efforts to furnish such information in a timely manner
                to
                such other Party, at the cost and expense of the Party requesting
                and
                being furnished such information. 

            

    

     

    
      	 	
              (b)

            	
              Buyer
                has applied for approval as a fully delegated correspondent of IndyMac
                Bank and Credit Suisse. Notwithstanding the foregoing, each of Seller
                and
                Buyer acknowledges and agrees that the Closing will not be delayed
                due to
                Buyer not having received approval as a fully delegated correspondent
                of
                either IndyMac Bank or Credit Suisse or both. Seller shall provide
                such
                information as reasonably required or requested and shall reasonably
                cooperate with respect to such efforts by
                Buyer.

            

    

    

    
      	 	
              (c)

            	
              Buyer
                and Seller will reasonably cooperate in (i) drafting and finalizing
                the
                form and substance of notifications to be sent to brokers and the
                applicants, registrants for or mortgagors of any of the Pipeline
                Mortgage
                Loans of information relating to the transactions contemplated by
                this
                Agreement and (ii) delivering such notifications, it being agreed
                that no
                notifications will be sent to any such parties unless the notification
                is
                in a form that has been mutually agreed upon by Buyer and
                Seller.

            

    

     

    7.2 Activities
      Pending Closing.

     

    From
      the
      date hereof and until the Closing Date, Seller (a) shall conduct the Origination
      Business (including the services appurtenant thereto) only in the ordinary
      course of business, in accordance in all material respects with Applicable
      Requirements and the Assumed Broker Agreements and shall use its best efforts
      to
      preserve intact the Origination Business and (b) shall not modify, supplement
      or
      amend, or send notices in respect of, the Assumed Leases or the Assumed Broker
      Agreements without obtaining Buyer’s prior written consent.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    7.3 Certain
      Notifications.

     

    From
      the
      date of this Agreement until the Closing Date, each party to this Agreement
      shall notify the other party promptly both orally and in writing (i) after
      becoming aware of the occurrence of, or the impending or threatened occurrence
      of, any event that would constitute a breach on its part of any obligation
      under
      this Agreement or the occurrence of any event that would cause any
      representation or warranty made by it herein to be false or misleading in any
      material respect if such representation and warranty were restated at such
      time,
      (ii) upon the occurrence of or the discovery of any event that could reasonably
      be expected to cause it to be unable to satisfy a condition to its obligation
      to
      consummate the transactions contemplated by this Agreement, and (iii) of any
      notice received in respect of the Origination Premises Lease, any of the other
      Assumed Leases and the Assumed Broker Agreements.

     

    7.4 No
      Inconsistent Actions. 

     

    Except
      as
      may be required by applicable law, none of the parties hereto will take or
      omit
      to take any action, the effect of the taking or omission of which would
      reasonably be expected to cause any of its representations and warranties herein
      to be inaccurate in any material respect at the Closing or at any time prior
      to
      the Closing as if such representation and warranty were restated at such
      time.

     

    7.5 Commercially
      Reasonable Efforts.

     

    Each
      of
      the parties hereto shall employ commercially reasonable efforts to cause each
      of
      the conditions to the consummation of the transactions contemplated hereby
      applicable to it to be fulfilled as soon as practicable after the date
      hereof.

     

    7.6 Exclusivity.

     

    Until
      the
      Closing Date or the termination of this Agreement, Seller shall not and shall
      not permit any Affiliate or representative to, directly or indirectly,
      encourage, initiate or engage in discussions or negotiations with or provide
      any
      information to, any Person or group, other than Buyer, concerning any proposal
      for an acquisition or other business combination involving all or any part
      of
      the Origination Business or the Assets or relating thereto or any interest
      therein (an “Acquisition Proposal”), other than the sale of mortgage loans made
      in the normal course of business. Seller shall promptly notify Buyer upon it
      or
      any Seller personnel receiving or becoming aware of any Acquisition Proposal
      and
      provide Buyer with a copy of any such Acquisition Proposal or a written summary
      of any oral Acquisition Proposal.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    7.7 Expenses
      and Taxes.

     

    
      	
            	(a)	
              Except
                as otherwise specifically provided in 7.12 relating to Transitional
                Services, Seller and Buyer shall each bear its own respective expenses
                incurred in connection with preparation, execution and performance
                of this
                Agreement and the transactions contemplated thereby, including all
                fees
                and expenses of agents, representatives, counsel and
                accountants.

            

    

     

    
      
        
          	
                	(b)	
                  Seller
                    shall be responsible for paying any and all transfer, conveyance,
                    recording, consent, use, stamp, documentary stamp, filing and
                    similar
                    Taxes or fees arising from the sale of the Assets pursuant to
                    this
                    Agreement; provided, however, each of Buyer and Seller shall
                    be
                    responsible for paying one-half of any and all sales taxes, if
                    any,
                    arising from the sale of the Furniture, Fixtures and Equipment
                    and other
                    Tangible Assets pursuant to this Agreement. In the event that
                    a Party pays
                    the entire amount of any such sales taxes (the “Paying Party”), the other
                    Party shall, promptly (and in any event within 5 business days
                    thereafter)
                    after receipt of an invoice from the Paying Party specifying
                    that it has
                    paid such sales taxes (including a description in reasonable
                    detail of the
                    amount paid), reimburse the Paying Party for the non-paying Party’s share
                    of the sales taxes.

                

        

      

    

     

    7.8 Allocation
      Statement.

     

    Buyer
      and
      Seller shall reasonably agree to an allocation of the Purchase Price among
      the
      Assets in a manner consistent with section 1060 of the Code and shall set forth
      such agreed upon allocation in writing (the “Allocation Statement”). Once an
      Allocation Statement has been agreed upon, the Allocation Statement shall be
      binding upon the parties, and neither Buyer nor Seller shall file any Return
      in
      a manner inconsistent with the Allocation Statement.

     

    7.9 Post
      Closing Tax Information.

     

    From
      time
      to time after the Closing, the parties shall deliver to each other such
      information and data as the other party may reasonably request, including that
      required in order to enable such party to complete and file all Federal, state
      and local forms that may be required to be filed by it and to complete all
      customary Tax and accounting procedures and otherwise to enable such party
      to
      satisfy its internal accounting and Tax requirements.

     

    7.10 Books
      and Records.

     

    Seller
      and Buyer each shall maintain any records regarding the Pipeline Mortgage Loans
      for the periods required by any applicable statute or regulation and each shall
      give the other an opportunity, on reasonable prior notice, to have reasonable
      access thereto during normal business hours and to examine, inspect and copy
      such records at the expense of the party seeking access. Buyer and Seller agree
      that Seller shall be entitled to retain and or receive originals or copies
      of
      any Documents as reasonably requested by Seller (at its expense) for purposes
      of
      complying with any applicable law, any Applicable Requirements, or any mortgage
      loan that closed prior to the Closing Date and or as reasonably required in
      order to determine the Purchase Price set forth in Section
      2.3(a)(i).

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    7.11 Further
      Assurances; Post-Closing Cooperation

     

    
      
        
          	
                	(a)	
                  Each
                    of the parties shall execute such documents and other papers
                    and take such
                    further actions as may be reasonably required to carry out the
                    provisions
                    of and the transactions contemplated by this
                    Agreement.

                

        

      

    

     

    
      
        
          	
                	(b)	
                  After
                    the Closing Date, Seller, on the one hand, and Buyer, on the
                    other hand,
                    will use their reasonable efforts to provide to the other party
                    (the
                    “requesting party”) such records and information and to make available to
                    the requesting party such personnel, in each case as may be reasonably
                    requested in writing by the requesting party, for the purpose
                    of
                    reasonably assisting the requesting party in responding to governmental
                    or
                    professional inquiries, making required governmental filings
                    or defending
                    or prosecuting any action or other proceeding relating to or
                    arising out
                    of the Origination Business, the Assets or the Assumed Liabilities,
                    involving any Person other than the party providing such information
                    or
                    records or making available such personnel (the “providing party”);
                    provided, however, that (i) the requesting party shall promptly
                    reimburse
                    the providing party for any reasonable out-of-pocket expenses
                    incurred by
                    the providing party in connection with the provision of any such
                    assistance (including disbursements), but the requesting party
                    shall not
                    be responsible to reimburse the providing party for such party’s time
                    spent in such cooperation or the salaries or costs of fringe
                    benefits or
                    other similar expenses paid by the providing party to its Affiliates
                    or
                    related entities or their respective officers, directors, partners,
                    principals, personnel and agents while such Persons are providing
                    any such
                    assistance, and (ii) no providing party shall be required to
                    (A) provide
                    information, records or personnel under circumstances which the
                    providing
                    party believes in its sole reasonable determination may expose
                    it to
                    liability to any Person or may prejudice any commercial, legal
                    or other
                    interest of the providing party or (B) take any action that,
                    in the
                    providing party’s sole determination, unreasonably interferes with its
                    business. Notwithstanding the foregoing, Seller agrees that,
                    promptly
                    after it receives a request from Buyer for the same, it will
                    provide to
                    Buyer financial information and data, including without limitation,
                    balance sheets, statements of operations and cash flow (accompanied
                    by a
                    certification of an officer of Seller that such information is
                    true and
                    correct), with respect to the Origination Business as reasonably
                    requested
                    by Buyer, based on the reasonable advice of its counsel and auditors
                    that
                    the same is necessary in order for Buyer to make required public
                    disclosure. Buyer agrees that it will promptly reimburse Seller
                    for any
                    reasonable out-of-pocket expenses incurred by Seller in connection
                    with
                    the provision of any such information (including disbursements).
                    In the
                    event that such information must be audited for purposes of such
                    public
                    disclosure, Seller agrees that it will either engage its auditors
                    (at
                    Buyer’s cost and expense) to perform the audit or it will allow Buyer’s
                    auditors with the access and information necessary to perform
                    the audit.
                    

                

        

      

    

     

    7.12 Transitional
      Services.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                	(a)	
                  Seller
                    shall provide to Buyer, at no additional cost, the services set
                    forth on
                    Schedule 7.12.

                

        

      

    

    

    
      	
            	(b)	
              For
                six (6) months after the Closing, Seller and Buyer mutually agree
                to
                provide all reasonable assistance to the other, on terms and conditions
                mutually agreed upon by the Buyer and Seller (which agreement shall
                not be
                unreasonably withheld), in connection with any transition issues
                arising
                in connection with the transfer of the Assets to Buyer and Buyer’s use of
                the Assets in its businesses. Without limiting the generality of
                the
                foregoing, Buyer shall provide reasonable access to Seller to the
                Origination Premises in order to remove property and Documents not
                related
                to the Origination Business and Documents for mortgage loans that
                closed
                prior to the Closing Date. 

            

    

    

    
      
        
          	
                	(c)	
                  For
                    three (3) months after the
                    Closing:

                

        

      

    

     

    
      
        
          	
                	(i)	
                  Buyer
                    will, at Seller’s expense, forward (within 2 business days of Buyer’s
                    receipt of the same) to Seller all mail and other correspondence
                    that is
                    received by Buyer and that is addressed to Seller. Seller shall,
                    within 2
                    business days after its receipt of any such mail or correspondence,
                    forward to Buyer any correspondence that belongs to Seller or
                    otherwise
                    relates to the Pipeline Mortgage
                    Loans.

                

        

      

    

     

    
      
        
          	
                	(ii)	
                  Buyer
                    will, at Seller’s expense, forward (within 5 business days of Buyer’s
                    receipt of the same) to Seller all mail and other correspondence
                    that is
                    received by Buyer and that belongs to Seller and does not relate
                    to the
                    Pipeline Mortgage Loans.

                

        

      

    

     

    
      
        
          	
                	(d)	
                  After
                    the three-month period described in Section 7.12(b), Buyer and
                    Seller will
                    promptly forward to the other mail or correspondence addressed
                    to or
                    otherwise belonging to the other that it
                    receives.

                

        

      

    

     

    7.13 Employees.

     

    
      
        
          	
                	(a)	
                  Prior
                    to the Closing Date, Buyer will offer employment to all of the
                    Transferred
                    Employees, subject to Buyer’s satisfaction with the results of
                    pre-employment procedures (including background checks), with
                    such
                    employment commencing on the Closing Date. Except as otherwise
                    expressly
                    agreed in writing by Buyer, Buyer’s employment of any such personnel shall
                    be on an “at-will” basis and shall be on such other terms and conditions
                    of employment as Buyer shall offer in its sole discretion.
                    

                

        

      

    

     

    
      
        
          	
                	(b)	
                  All
                    Transferred Employees shall be eligible to participate without
                    a waiting
                    period in benefit plans and other fringe benefits which are offered
                    by
                    Buyer to its employees in comparable positions. Where applicable,
                    Buyer
                    shall credit such Transferred Employees for their length of service
                    with
                    Seller and its Affiliates for all purposes under each employee
                    benefit and
                    fringe benefit plan to be provided by Buyer to such Transferred
                    Employees.
                    For purposes of this Section 7.13, “employee benefit plans and other
                    fringe benefits” means health insurance benefits (medical and dental) and
                    401(k) eligibility. 

                

        

      

    

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                	(c)	
                  Seller
                    shall be solely responsible for any and all Liabilities accruing
                    up until
                    the Closing in respect of personnel of the Origination Business,
                    including
                    the Transferred Employees, and their beneficiaries and dependents,
                    relating to or arising out of or in connection with (i) the employment
                    or
                    resignation or termination of employment of any personnel of
                    the
                    Origination Business by Seller or such employees, as applicable
                    (including
                    in connection with the consummation of the transactions contemplated
                    by
                    this Agreement), (ii) the participation in or accrual of benefits
                    or
                    compensation under, or the failure to participate in or to accrue
                    compensation under, any employee benefit plans, programs, policies
                    and
                    arrangements of Seller and its Affiliates (the “Plans”) prior to and as of
                    the Closing Date, and (iii) accrued but unpaid salaries, wages,
                    bonuses,
                    incentive compensation, commissions, vacation or sick pay or
                    other
                    compensation or payroll items, if any (including deferred compensation)
                    as
                    of the Closing. Seller shall be solely responsible for meeting
                    and Buyer
                    shall have no liability in respect of any obligations under Part
                    6 of
                    Subtitle B of Title I of ERISA and Section 4980B of the Code
                    in respect of
                    each of Seller’s personnel who incur a “qualifying event” before the
                    Closing Date or as a result of the transactions contemplated
                    hereby. Buyer
                    shall not at any time assume any Liability for the benefits of
                    any active
                    or any terminated, vested or retired participants in any Plans
                    of Seller
                    and its Affiliates. Seller shall not at any time assume any Liability
                    for
                    the benefits of any active or any terminated, vested or retired
                    participants in any Plans of Buyer and its Affiliates.
                    

                

        

      

    

     

    
      
        
          	
                	(d)	
                  Buyer
                    shall have no obligation to pay any retirement, severance, deferred
                    compensation, incentive, stock option, vacation, bonus, unemployment,
                    partnership or other payments, distributions or benefits that
                    the
                    Transferred Employees or any other person may have accrued prior
                    to the
                    Closing Date as a director, officer, personnel, independent contractor,
                    agent, or other representative of Seller or
                    otherwise.

                

        

      

    

     

    
      
        
          	
                	(e)	
                  Nothing
                    in this Section 7.13, expressed or implied, shall confer upon
                    any
                    director, officer, personnel or former director, officer or personnel
                    of
                    Seller or its Affiliates (including the Transferred Employees
                    and other
                    personnel of the Origination Business) any rights or remedies
                    (including
                    any right to employment or continued employment for any specified
                    period)
                    of any nature or kind whatsoever, under or by reason of this
                    Section 7.13.
                    It is expressly agreed that the provisions of this Section 7.13
                    are not
                    intended to be for the benefit of or otherwise be enforceable
                    by, any
                    third party, including any Transferred Employees or other personnel
                    of the
                    Origination Business.

                

        

      

    

     

    
      
        
          	
                	(f)	
                  As
                    of the Closing for the benefit of Buyer only, Seller shall waive
                    any and
                    all contractual, common law or other restrictive covenants enforceable
                    by
                    Seller or its Affiliates against the Transferred Employees in
                    respect of
                    their conduct in the service of Buyer after their termination
                    of
                    employment with Seller to the extent any such restrictions are
                    more
                    restrictive than those applicable to Buyer hereunder; provided,
                    however,
                    that the foregoing shall not affect any contractual, common law
                    or other
                    restrictive covenants enforceable by Seller or its Affiliates
                    against the
                    Transferred Employees to any other
                    extent.

                

        

      

    

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    
      
        
          	
                	(g)	
                  Seller
                    shall retain the responsibility for payment of all medical, dental,
                    health
                    and disability claims, including workers’ compensation claims, incurred by
                    any employee of the Origination Business, including each Transferred
                    Employees, prior to the Closing Date (whether or not filed on
                    or after the
                    Closing Date) and Buyer shall not assume any Liability with respect
                    to
                    such claims. Buyer agrees that any pre-existing condition clause
                    in any of
                    Buyer’s health or disability insurance policies shall not be applicable
                    to
                    Transferred Employees, provided such Transferred Employee is
                    enrolled in
                    the health and disability Plans of the Seller and its Affiliates
                    as of the
                    Closing and that such pre-existing condition clause would not
                    have limited
                    the Transferred Employee under the applicable Plans of Seller.
                    At or after
                    the Closing, all medical, dental, health and disability claims,
                    including
                    workers’ compensation claims, incurred by Transferred Employees shall
                    be
                    determined under Buyer’s benefit plans.

                

        

      

    

    

    
      	
            	(h)	
              Buyer
                shall be solely responsible for any and all Liabilities accruing
                from and
                after the Closing Date in respect of the Transferred Employees, and
                their
                beneficiaries and dependents, to the extent relating to or arising
                out of
                or in connection with (i) the employment or resignation or termination
                of
                employment of any Transferred Employees by Buyer or such employees,
                as
                applicable (including in connection with the consummation of the
                transactions contemplated by this Agreement) from and after the Closing
                Date, (ii) the participation in or accrual of benefits or compensation
                under, or the failure to participate in or to accrue compensation
                under,
                any employee benefit plans, programs, policies and arrangements of
                Buyer
                and its Affiliates from and after the Closing Date, and (iii) accrued
                but
                unpaid salaries, wages, bonuses, incentive compensation, commissions,
                vacation or sick pay or other compensation or payroll items, if any
                (including deferred compensation) from and after the Closing.
                

            

    

     

    7.14 No
      Solicitation of Pipeline Mortgage Loans.

     

    Seller
      shall not directly or indirectly solicit the applicants, registrants for or
      mortgagors of any of the Pipeline Mortgage Loans for purposes of originating,
      funding or arranging a loan or prepayment or refinance or modification of any
      Pipeline Mortgage Loans or any other financial services or products, by means
      of
      direct mail or telephonic or personal solicitation or other means that are
      not
      directed to the public generally.

     

    7.15 Post-Closing
      Operations.

     

    Buyer
      shall take all commercially reasonable steps to ensure that it does not use
      the
      name “The New York Mortgage Company” on any letterhead, in any signs for the
      Origination Premises that are located at the Origination Premises, or in a
      manner that creates any confusion as to the relationship between Buyer and
      Seller without first obtaining Seller’s consent to each such use, it being
      agreed by Seller that Buyer shall have a reasonable amount of time after the
      Closing Date to remove any signs containing the name “The New York Mortgage
      Company” from the Origination Premises, which removal shall occur by March 31,
      2007. Notwithstanding the foregoing, (i) nothing herein shall prevent Buyer
      from
      using or displaying (or shall be construed as requiring Buyer to obtain Seller’s
      approval to use or display) Seller’s name on an ongoing basis in factual
      references for historical reporting and informational purposes, including in
      regulatory filings, disclosures, tax returns, and marketing materials, in each
      case without obtaining prior approval of Seller for each such use.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VIII

    Indemnity
      and Recourse; Other Remedies

     

    8.1 Seller's
      Indemnity.

     

    Seller
      shall save, defend, indemnify and hold harmless Buyer and its Affiliates and
      the
      successors, assigns, officers, directors, servants, employees, partners and
      agents of any of them (the “Buyer Indemnified Parties”), promptly upon demand at
      any time and from time to time, from and against any and all actions and claims
      asserted against any Buyer Indemnified Party and shall reimburse the Buyer
      Indemnified Parties for any and all losses, Liabilities, damages, charges,
      Liens, deficiencies or expenses of any nature including reasonable attorneys'
      fees (“Buyer's Losses”), to the extent and only to the extent that Buyer's
      Losses arise out of or result from:

     

    
      	 	
              (a)

            	
              the
                inaccuracy of any representation or warranty made by Seller in this
                Agreement;

            

    

     

    
      	 	
              (b)

            	
              any
                failure of Seller to have complied with any and all Applicable
                Requirements with respect to the Origination Business or the Pipeline
                Mortgage Loans;

            

    

     

    
      	 	
              (c)

            	
              the
                failure by Seller to perform or observe any term, covenant or agreement
                set forth in this Agreement;

            

    

     

    
      	 	
              (d)

            	
              Excluded
                Liabilities;

            

    

     

    
      	 	
              (e)

            	
              the
                assertion against any Buyer Indemnified Party or the Assets of any
                Claims,
                other than Claims in respect of the Assumed Liabilities, based upon
                the
                rights, acts or omissions of any creditor, officers, director, employee
                or
                agent of Seller or any of its Affiliates prior to the Closing Date,
                including in connection with Seller’s conduct of the Origination Business
                and ownership of the Assets, regardless of when such assertion is
                made;

            

    

     

    
      	 	
              (f)

            	
              the
                assertion against any Buyer Indemnified Party or the Assets of any
                Claims
                arising out of the conduct of the Origination Business prior to 12:01
                a.m.
                on the Closing Date, other than the Assumed Liabilities, regardless
                of
                when such assertion is made; 

            

    

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (g)

            	
              any
                Claim by Milestone Advisors, LLC or any other broker or agent who
                might be
                entitled to a fee or commission in connection with the transactions
                contemplated hereby; 

            

    

     

    
      	 	
              (h)

            	
              any
                non-compliance by Seller with any fraudulent conveyance laws;
                and

            

    

     

    
      	 	
              (i)

            	
              the
                employee selection and employment offer process in connection with
                Buyer’s
                offer of employment to Transferred Employees (including any claim
                of
                discrimination or other illegality in such selection and offer process),
                to the extent any such Loss arises out of Seller’s wrongful act or
                omission.

            

    

     

    8.2 Buyer's
      Indemnity.

     

    Buyer
      shall save, defend, indemnify and hold harmless Seller and its Affiliates and
      the successor, assigns, officers, directors, partners, employees, servants
      and
      agents of any of them (the “Seller Indemnified Parties”), promptly upon demand
      at any time and from time to time, from and against any and all actions and
      claims asserted against any Seller Indemnified Party and shall reimburse Seller
      Indemnified Party for any and all actual losses, Liabilities, damages, charges,
      Liens, deficiencies or expenses of any nature including reasonable attorneys’
fees (“Seller’s Losses”), to the extent and only to the extent that Seller’s
      Losses arise out of or result from:

     

    
      	 	
              (a)

            	
              the
                inaccuracy of any representation or warranty made by Buyer in this
                Agreement;

            

    

     

    
      	 	
              (b)

            	
              the
                failure by Buyer to perform or observe any term, covenant or agreement
                set
                forth in this Agreement; 

            

    

     

    
      	 	
              (c)

            	
              the
                Assumed Liabilities;

            

    

     

    
      	 	
              (d)

            	
              the
                assertion against any Seller Indemnified Party of any Claims arising
                out
                of Buyer’s conduct and operation of its business from and after the
                Closing Date to the extent relating to the Assumed Liabilities and
                any and
                all Liabilities accruing from and after the Closing Date in respect
                of
                Transferred Employees; and

            

    

     

    
      	 	
              (e)

            	
              the
                employee selection and employment offer process in connection with
                Buyer’s
                offer of employment to Transferred Employees (including any claim
                of
                discrimination or other illegality in such selection and offer process),
                to the extent any such Loss arises out of Buyer’s wrongful act or
                omission.

            

    

     

    8.3 Indemnity
      Procedures.

     

    
      	 	
              (a)

            	
              If
                any legal proceedings, claims or demands are instituted or asserted
                by any
                third party in respect of which any of the Buyer Indemnified Parties
                or
                Seller Indemnified Parties may seek indemnification from any party
                hereto
                pursuant to the provisions hereof (such legal proceedings, claims
                or
                demands being referred to individually as a “Claim” and collectively as
                the “Claims”), the indemnified party, after receipt by it of written
                notice of the commencement or assertion of such Claim, shall promptly
                cause a written notice of such Claim to be made to the indemnifying
                party;
                provided, that failure to give such notice shall not relieve the
                indemnifying party of its indemnification obligations hereunder,
                unless
                such failure to provide notice shall have materially prejudiced the
                rights
                of the indemnifying party.

            

    

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (b)

            	
              Subject
                to the next sentence, the indemnifying party shall have the right,
                at its
                option and expense, to assume the defense, settlement or other disposition
                (collectively “Defense”) of any Claim, provided that within twenty (20)
                days of receiving the notice with respect to such Claim pursuant
                to
                Section 8.3(a) hereof (or within such shorter period of time as an
                answer
                or other responsive action may be required), the indemnifying party,
                by
                notice delivered to the indemnified party, elects to assume such
                defense
                and the indemnifying party acknowledges its obligation hereunder
                to
                indemnify the indemnified party with respect to such Claim.
                Notwithstanding the foregoing, the indemnifying party shall not have
                the
                right to assume the Defense of any Claim if: (i) representation of
                both
                the indemnified and indemnifying parties by the same counsel would
                be
                prohibited by rules or regulations governing the professional conduct
                of
                such counsel due to actual or potential differing interests between
                them;
                or (ii) the indemnified party determines in good faith (A) that there
                is a
                significant possibility that such Claim may materially and adversely
                affect it or its Affiliates other than as a result of monetary damages,
                (B) that, in the case of Buyer, there is a significant possibility
                that
                such Claim may materially and adversely affect it or its Affiliates’
                ability to conduct its loan origination business, or (C) on the advice
                of
                counsel, that it may have available to it one or more defenses or
                counterclaims that are inconsistent with one or more of those that
                may be
                available to the indemnifying party in respect of such
                Claim.

            

    

     

    
      	 	
              (c)

            	
              If
                the indemnifying party has assumed the Defense of a Claim in accordance
                with Section 8.3(b) hereof, then the following shall
                apply:

            

    

     

    
      	 	
              (i)

            	
              the
                indemnified party shall have the right to participate and assist
                in, but
                not control, the Defense of such Claim and to employ its own counsel
                in
                connection therewith;

            

    

     

    
      	 	
              (ii)

            	
              the
                indemnifying party shall not be liable to the indemnified party for
                the
                fees or expenses of the indemnified party's counsel or other expenses
                incurred by the indemnified party in connection with participating
                in the
                Defense of such Claim, except that the indemnifying party shall be
                liable
                for any such fees and expenses incurred prior to the time the indemnifying
                party assumed such Defense;

            

    

     

    
      	 	
              (iii)

            	
              counsel
                used by the indemnifying party in connection with the Defense of
                such
                Claim shall be reasonably satisfactory to the indemnified
                party;

            

    

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (iv)

            	
              the
                indemnifying party shall have no liability with respect to any compromise
                or settlement of such Claim effected without its consent, which consent
                shall not be unreasonably withheld or delayed;
                and

            

    

     

    
      	 	
              (v)

            	
              the
                indemnifying party shall not effect any compromise or settlement
                of such
                Claim without the consent of the indemnified party, which consent
                shall
                not be unreasonably withheld or delayed, unless such compromise or
                settlement includes a full release of the indemnified party and does
                not
                result in injury to reputation of the indemnified party or any of
                its
                Affiliates.

            

    

     

    
      	 	
              (d)

            	
              If
                the indemnifying party does not assume the Defense of a Claim (whether
                because it elects not to or has no right to), the following shall
                apply:

            

    

     

    
      	 	
              (i)

            	
              the
                indemnified party shall have the right, at the sole cost, risk and
                expense
                of the indemnifying party, to assume the Defense of a Claim, and
                employ
                its own counsel in connection therewith, in such manner and on such
                terms
                as the indemnified party reasonably deems appropriate, including
                settling
                the Claim with the consent of the indemnifying party, which consent
                shall
                not be unreasonably withheld or delayed, unless such compromise or
                settlement includes a full release of the indemnifying party and
                does not
                result in injury to reputation of the indemnifying party or any of
                its
                Affiliates. 

            

    

     

    
      	 	
              (ii)

            	
              if
                the indemnified party defends the Claim in accordance with this Section
                8.3(d), the indemnifying party shall cooperate with the indemnified
                party
                and its counsel, at the indemnifying party’s sole cost, risk and expense,
                in all reasonable respects, in connection with such defense.
                

            

    

     

    
      	 	
              (e)

            	
              Notwithstanding
                any other provision hereof, an indemnifying party shall not be liable
                under this Article VIII for any Buyer’s Losses or Seller’s Losses
                sustained by the indemnified party pursuant to Section 8.1(a) or
                8.2(a)
                hereof, as applicable, unless and until the aggregate amount of all
                such
                Buyer’s Losses or Seller’s Losses sustained by the indemnified party, as
                applicable, shall exceed $50,000, whereupon the indemnifying party’s
                obligation under this Article VIII shall apply to the full amount
                of such
                Buyer’s Losses or Seller’s Losses, as
                applicable.

            

    

     

    
      	 	
              (f)

            	
              The
                parties agree to cooperate to the fullest extent reasonably practicable
                in
                connection with any Claim in respect of which indemnification is
                sought
                under this Agreement.

            

    

     

    
      	 	
              (g)

            	
              After
                the Closing Date, the rights set forth in this Article VIII shall
                be each
                party's sole and exclusive remedies against the other party hereto
                for
                breaches of representations or covenants contained in this
                Agreement.

            

    

     

    
      	 	
              (h)

            	
              The
                amount of indemnification to which either party shall be entitled
                under
                this Article VIII shall be reduced by the amount of any insurance
                proceeds
                actually received by the Indemnified Party or other cash payments
                directly
                attributable to the Claim in question, it being understood and agreed
                that
                no Indemnified Party shall be obligated to obtain or maintain insurance
                policies for any specific level of coverage (or any coverage at all)
                or
                seek recovery under any such insurance
                policies.

            

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (i)

            	
              Except
                as otherwise provided in this Article VIII, all indemnification shall
                be
                paid for by the indemnifying party on a dollar for dollar basis without
                regard to or application of any
                multiple.

            

    

     

    
      	 	
              (j)

            	
              The
                maximum cumulative liability of Seller for Losses and other claims
                solely
                related to or arising out of Section 8.1(a) shall be limited to the
                Purchase Price.

            

    

     

    
      	 	
              (k)

            	
              The
                maximum cumulative liability of Buyer for all Losses and other claims
                solely related to or arising out of Section 8.2(a) shall be the Purchase
                Price.

            

    

     

    
      	 	
              (l)

            	
              The
                limitations set forth in Sections 8.3(j) and 8.3(k) shall not apply
                to
                Buyer’s Losses or Seller’s Losses arising from the fraud of Seller or
                Buyer, as the case may be, under this
                Agreement.

            

    

     

    8.4 Guaranty.

    

    
      	 	
              (a)

            	
              NYMT
                hereby absolutely and unconditionally guarantees Seller’s duties,
                obligations and responsibilities under this Article VIII (taking
                into
                account any limitations on such duties, obligations and responsibilities
                under this Article VIII).

            

    

    

    
      	 	
              (b)

            	
              FCMC
                hereby absolutely and unconditionally guarantees Buyer’s duties,
                obligations and responsibilities under this Article VIII (taking
                into
                account any limitations on such duties, obligations and responsibilities
                under this Article VIII).

            

    

     

    ARTICLE
      IX

    Restrictions
      on Solicitation; Confidentiality

     

    9.1 Restriction
      on Solicitation of Employees.

     

    
      	 	
              (a)

            	
              Seller
                agrees that, for a period of twenty four (24) months from the Closing
                Date, neither it nor any Affiliate which at the time continues to
                be an
                Affiliate will, directly or indirectly, induce or attempt to induce
                any
                Transferred Employee or any employee of Buyer or any other Person
                that
                Seller or its Affiliates knows is an Affiliate of Buyer (each, a
                “Restricted Employee”) to leave the employment of or engagement by Buyer
                or such Affiliate. Seller agrees that, for a period of twenty four
                (24)
                months from the Closing Date, neither it nor any Affiliate which
                at the
                time continues to be an Affiliate will hire any Restricted Employee
                without the consent of Buyer. Notwithstanding the foregoing, this
                Section
                shall not prohibit Seller or its Affiliates from (i) making general
                solicitations for employees through newspaper or other media
                advertisements directed to the public, for businesses other than
                wholesale
                mortgage loan origination (“Seller Nondirected Solicitation”) or (ii)
                hiring Restricted Employees after such Restricted Employees are no
                longer
                employed by Buyer or its Affiliates, if Seller or its Affiliates
                did not
                directly or indirectly have any communications (excluding Seller
                Nondirected Solicitation) prior to such termination regarding the
                prospect
                of employment with Seller or its
                Affiliates.

            

    

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    
      	
            	(b)	
              Buyer
                agrees that, for a period of twenty four (24) months from the Closing
                Date, neither it nor any Affiliate which at the time continues to
                be an
                Affiliate will, directly or indirectly, induce or attempt to induce
                any
                employee of Seller as of the Closing Date (a “Prohibited Employee”), to
                leave the employment of or engagement by Seller. Buyer agrees that,
                for a
                period of twenty four (24) months from the Closing Date, neither
                Buyer nor
                any Affiliate which at the time continues to be an Affiliate will
                hire any
                Prohibited Employee without the consent of Seller. Notwithstanding
                the
                foregoing, this Section shall not prohibit Buyer or its Affiliates
                from
                (i) making general solicitations for employees through newspaper
                or other
                media advertisements directed to the public (“Buyer Nondirected
                Solicitation”) or (ii) hiring Prohibited Employees after such Prohibited
                Employees are no longer employed by Seller, if Buyer or its Affiliates
                did
                not directly or indirectly have any communications (excluding Buyer
                Nondirected Solicitation) prior to such termination regarding the
                prospect
                of employment with Buyer or its
                Affiliates.

            

    

     

    9.2 Confidentiality.

     

    
      	 	
              (a)

            	
              The
                terms of the Confidentiality Agreement, dated December 5, 2006, between
                Milestone Advisors, LLC (on behalf of Seller) and Buyer (the
                “Confidentiality Agreement”) shall continue in full force and effect until
                the Closing, at which time Buyer’s confidentiality obligations thereunder
                shall terminate only in respect of the portion of Evaluation Materials
                (as
                defined in the Confidentiality Agreement) relating to the Assets
                and the
                Origination Business that is the subject of the transactions contemplated
                by this Agreement and the Transaction Documents.
                

            

    

    

    
      	 	
              (b)

            	
              Following
                the Closing Date, Seller shall and shall cause its Affiliates to,
                keep
                confidential the terms of this transaction and all information concerning
                the Origination Business known to it and neither Seller nor any of
                its
                Affiliates shall use any such information for its own business, except
                that Seller may use information concerning the Origination Business
                and
                this transaction to the extent reasonably necessary to arrange and
                dispose
                of any assets and liabilities not purchased or assumed by Buyer.
                Further,
                nothing contained herein shall be deemed to restrict the ability
                of either
                party to disclose or report information relating to the Origination
                Business pursuant to applicable banking, securities, insurance or
                other
                laws or regulations.

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      X

    Termination

     

    10.1 Termination.

     

    This
      Agreement may be terminated at any time prior to the Closing Date:

     

    
      	 	
              (a)

            	
              by
                mutual written consent of Seller and
                Buyer,

            

    

     

    
      	 	
              (b)

            	
              by
                Buyer or Seller if the Closing has not occurred on or prior to March
                1,
                2007 and if the failure to close on or before such date, is not due
                to any
                wrongful act or omission by the party seeking
                termination;

            

    

     

    
      	 	
              (c)

            	
              by
                Seller, if Buyer shall have made any material misrepresentation or
                breached any material covenant, warranty or obligation under this
                Agreement or if any of the conditions precedent set forth in Article
                VI
                hereof have not been satisfied within ten (10) days of written notice
                thereof or waived by Seller in writing at or prior to the Closing
                Date;
                or

            

    

     

    
      	 	
              (d)

            	
              by
                Buyer, if Seller shall have made any material misrepresentation or
                breached any material covenant, warranty or obligation under this
                Agreement or if any of the conditions precedent set forth in Article
                V
                hereof have not been satisfied within ten (10) days of written notice
                thereof or waived by Buyer in writing at or prior to the Closing
                Date.

            

    

     

    10.2 Effect
      of Termination.

     

    In
      the
      event of termination of this Agreement as provided in Section 10.1 hereof,
      this
      Agreement shall forthwith become null and void and there shall be no liability
      under this Agreement on the part of any party hereto; provided,
      however,
      that
      termination of this Agreement pursuant to Section 10.1 hereof shall not release
      any party from liability for its own misrepresentation or for any breach of
      it
      prior to such termination of any covenant, agreement or warranty contained
      herein.

     

    ARTICLE
      XI

    Miscellaneous

     

    11.1 Survival.

     

    All
      representations and warranties contained in Article III and Article IV,
      covenants and agreements contained in this Agreement shall survive the Closing
      and remain in full force and effect (i) May 1, 2008, with respect to the
      representations and warranties contained in Article III and Article IV and
      (ii)
      with respect to each covenant or agreement contained in this Agreement, until
      such covenant or agreement is fully performed.

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    11.2 Treatment
      of Payments.

     

    Buyer
      and
      Seller agree that any amount payable from Buyer to Seller or from Seller to
      Buyer, as applicable, under this Agreement shall be treated for Tax purposes
      as
      an adjustment to the Purchase Price.

     

    11.3 Amendment.

     

    This
      Agreement may not be amended except by an instrument in writing signed on behalf
      of each of the parties hereto.

     

    11.4 Counterparts.

     

    This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original but all of which shall be considered one and the same
      instrument.

     

    11.5 Entire
      Agreement.

     

    This
      Agreement, together with the Schedules and Exhibits hereto and Transaction
      Documents, contains the entire agreement between the parties and supersedes
      all
      prior and contemporaneous agreements, arrangements and understandings relating
      to the subject matter herein and therein. There are no written or oral
      agreements, understanding, representations or warranties between the parties
      other than those set forth in this Agreement, the Schedules and Exhibits hereto
      and Transaction Documents.

     

    11.6 Rights
      Cumulative; Waivers.

     

    The
      rights of each of the parties under this Agreement are cumulative, may be
      exercised as often as any party considers appropriate or, except as otherwise
      modified herein, under law. The rights of each of the parties hereunder shall
      not be capable of being waived or varied otherwise than by an express waiver
      or
      variation in writing. Any failure to exercise or and delay in exercising any
      of
      such rights shall not operate as a waiver or variation of that or any other
      such
      right. Any defective or partial exercise of any of such rights shall not
      preclude any other or further exercise of that or any other such right. No
      act
      or course of conduct or negotiation on the part of any party shall in any,
      way
      preclude such party from exercising any such right or constitute a suspension
      or
      any variation of any such right. At any time prior to the Closing Date, Seller,
      on the one hand, and Buyer, on the other, may (I) extend the time for the
      performance of any of the obligations or other acts of the other party hereto,
      (ii) waive any inaccuracies in the representations and warranties of the other
      party contained herein or in any document delivered pursuant hereto or (iii)
      waive compliance with any of the agreements of the other party contained herein
      or satisfaction of any of the conditions to the performance of its obligations
      contained herein. Any agreement on the part of a party thereto to any such
      extension or waiver shall be valid if set forth in an instrument in writing
      signed by the party granting the extension or waiver.

     

    11.7 Section
      Headings.

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    The
      section and paragraph headings contained in this Agreement are for reference
      purposes only and shall not in any way affect the meaning or interpretation
      of
      this Agreement.

     

    11.8 Notices.

     

    All
      notices and other communications hereunder shall be in writing (including a
      writing delivered by facsimile transmission) and shall be deemed to have been
      duly given (i) when delivered, if sent by registered or certified mail (return
      receipt requested), (ii) when delivered, if delivered personally or by telecopy
      or (iii) on the second following business day, if sent by United States Express
      Mail or overnight courier, in each case to the parties at the following
      addresses (or at such other addresses as shall be specified by like
      notice):

    

    If
      to
      Seller:            
The
      New
      York Mortgage Company, LLC 

    1301
      Avenue of the Americas, 7th
      Floor

    New
      York,
      New York 10019

    Attn:
      President 

    

    with
      a
      copy to: 

     

    Tarter
      Krinsky & Drogin LLP

    470
      Park
      Avenue South

    New
      York,
      New York 10016

    Attention:
      Alan M. Tarter, Esq.

    

    If
      to
      Buyer:           
Tribeca
      Lending Corp. 

    c/o
      Franklin Credit Management Corporation

    101
      Hudson Street

    Jersey
      City, New Jersey 07302 

    Attn:
      William Sullivan and Kevin Gildea

    

    with
      a
      copy to: 

     

    Kramer
      Levin Naftalis & Frankel LLP

    1177
      Avenue of the Americas

    New
      York,
      New York 10036

    Attn:
      J.
      Michael Mayerfeld, Esq.

     

    11.9 Governing
      Law.

     

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of New York applicable to agreements made and fully performed within
      the
      State of New York. Each of the parties hereto irrevocably submits to the
      jurisdiction of any New York State court sitting in the County of New York
      and
      any Federal court sitting in the Southern District of the State of New York
      in
      respect of any suit or proceeding related to or arising out of this Agreement.
      Each party hereto also hereby irrevocably waives any objection to the laying
      of
      the venue of any such suit or proceeding in any such court and further waives
      any claim that any such suit or proceeding brought in any such court has been
      brought in an inconvenient forum. In addition to any other form of service
      of
      process authorized by law, service of process in any suit or proceeding
      hereunder shall be sufficient if mailed to each party hereto at the address
      specified in Section 11.8 hereof, and such service shall constitute “personal
      service” for purposes of such suit or proceeding.

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    11.10 Successors
      and Assigns.

     

    This
      Agreement shall be binding upon the parties hereto and their respective
      successors and assigns and shall inure to the benefit of the parties hereto
      and
      their respective permitted successors and assigns. Without the consent of the
      other parties hereto, no party hereto may assign or delegate its rights or
      duties hereunder, except that Buyer may assign this Agreement and its rights
      hereunder, in whole or in part, to any parent, direct or indirect wholly-owned
      subsidiary of Buyer, provided that no such assignment shall relieve Buyer of
      its
      obligations hereunder.

     

    11.11 Further
      Agreements.

     

    Seller
      and Buyer each agree to execute and deliver to the other such reasonable and
      appropriate additional documents, instruments or agreements as may be necessary
      or appropriate to effectuate the purposes of this Agreement (including but
      not
      limited to updates of Exhibits and Schedules to be attached hereto and
      incorporated herein).

     

    11.12 Publicity.

     

    Buyer
      and
      Seller agree to consult with each other and to coordinate the issuance of any
      press release or similar public announcement or communication containing the
      other’s name and relating to the execution or performance of this Agreement and
      the transactions contemplated hereby; provided, however, that no party shall
      be
      restrained, after consultation with the other party, from making such disclosure
      as it shall be advised by counsel is required by law or by the applicable
      regulations of any regulatory body or securities exchange to be made. Without
      the prior written consent of the other party (which consent shall not be
      unreasonably withheld), neither Seller nor Buyer shall advertise or publicize
      in
      any newspaper or periodical any of the transactions contemplated by this
      Agreement using either Seller’s or Buyer’s name, including by way of a
“tombstone” advertisement.

     

    11.13 Severability.

     

    Each
      of
      the covenants and agreements set forth in this Agreement are separate and
      independent covenants, each of which has been separately bargained for and
      the
      parties hereto intend that the provisions of each such covenant shall be
      enforced to the fullest extent permissible. Should the whole or any part or
      provision of any such separate covenant be held or declared invalid by a court
      of competent jurisdiction, such invalidity shall not in any way affect the
      validity of any other such covenant or of any part or provision of the same
      covenant not also held or declared invalid. If any covenant shall be found
      to be
      invalid by a court of competent jurisdiction but would be valid if some part
      thereof were deleted or the period, area or scope of application reduced, then
      such covenant shall apply with such minimum modification as may be necessary
      to
      make it valid and effective.

     

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    11.14 Equitable
      Relief

     

    
      	 	
              (a)

            	
              Seller
                agrees that the provisions and restrictions contained in Article
                IX are
                necessary to protect the legitimate continuing interests of Buyer
                in
                acquiring the Assets, that the provisions of Article IX have been
                specifically bargained for, that any violation or breach of such
                provisions and restrictions will result in irreparable injury to
                Buyer for
                which a remedy at law would be inadequate and that, in addition to
                any
                relief at law which may be available to Buyer for such violation
                or breach
                and regardless of any other provision contained in this Agreement,
                Buyer
                will be entitled to injunctive and other equitable relief restraining
                such
                violation or breach (without any requirement that Buyer provide any
                bond
                or other security).

            

    

    

    
      	 	
              (b)

            	
              Buyer
                agrees that the provisions and restrictions contained in Article
                IX are
                necessary to protect the legitimate continuing interests of Seller
                in its
                businesses, that the provisions of Article IX have been specifically
                bargained for, that any violation or breach of such provisions and
                restrictions will result in irreparable injury to Seller for which
                a
                remedy at law would be inadequate and that, in addition to any relief
                at
                law which may be available to Seller for such violation or breach
                and
                regardless of any other provision contained in this Agreement, Seller
                will
                be entitled to injunctive and other equitable relief restraining
                such
                violation or breach (without any requirement that Seller provide
                any bond
                or other security).

            

    

     

    11.15 Waivers.

     

    No
      term
      or provision of this Agreement may be waived or modified unless such waiver
      or
      modification is in writing and signed by the party against whom such waiver
      or
      modification is sought to be enforced.

     

    11.16 Exhibits
      and Schedules.

     

    The
      Exhibits and Schedules to this Agreement are hereby incorporated and made a
      part
      hereof and are an integral part of this Agreement.

     

    11.17 General
      Interpretive Principles.

     

    For
      purposes of this Agreement, except as otherwise expressly provided or unless
      the
      context otherwise requires:

     

    
      	 	
              (a)

            	
              the
                terms defined in this Agreement have the meaning assigned to them
                in this
                Agreement and include the plural as well as the singular and the
                use of
                any gender herein shall be deemed to include the other
                gender;

            

    

     

    
      	 	
              (b)

            	
              accounting
                terms not otherwise defined herein have the meanings assigned to
                them in
                accordance with generally accepted accounting
                principles;

            

    

     

    
      
        
        

      

      
        47

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (c)

            	
              references
                herein to “Articles”, “Sections”, “Subsections”, “Paragraphs” and other
                subdivisions without reference, to a document are to designated Articles,
                Sections, Subsections, Paragraphs and other subdivisions of this
                Agreement;

            

    

     

    
      	 	
              (d)

            	
              a
                reference to a Subsection without further reference to a Section
                is a
                reference to such Subsection as contained in the same Section in
                which the
                reference appears and this rule shall also apply to Paragraphs and
                other
                subdivisions;

            

    

     

    
      	 	
              (e)

            	
              the
                words “herein”, “hereof”, “hereunder” and other words of similar import
                refer to this Agreement as a whole and not to any particular provision;
                and

            

    

     

    
      	 	
              (f)

            	
              The
                words “including”, “include” and “includes” are not exclusive and shall be
                deemed to be followed by the words “without limitation” unless the context
                clearly prohibits that
                construction.

            

    

     

    
      	 	
              (g)

            	
              The
                word “or” shall be construed to mean “and/or” unless the context clearly
                prohibits that construction.

            

    

     

    11.18 
      Reproduction of Documents.

     

    This
      Agreement and all documents relating thereto, including, without limitation,
      (a)
      consents, waivers and modifications that may hereafter be executed, (b)
      documents received by any party on the Closing Date and (c) financial
      statements, certificates and other information previously or hereafter
      furnished, may be reproduced by any photographic, photostatic, microfilm,
      microcard, miniature photographic or other similar process. The parties agree
      that any such reproduction shall be admissible in evidence as the original
      itself in any arbitration, judicial or administrative proceeding, whether or
      not
      the original is in existence and whether or not such reproduction was made
      by a
      party in the regular course of business, and that any enlargement, facsimile
      or
      further reproduction of such reproduction shall likewise be admissible in
      evidence.

    

    11.19 Limitation
      of Representations and Warranties. 

    

    NEITHER
      SELLER NOR ANY OF ITS AFFILIATES IS MAKING ANY REPRESENTATIONS OR WARRANTIES,
      WRITTEN OR ORAL, STATUTORY, EXPRESS OR IMPLIED, CONCERNING SELLER, THE ACQUIRED
      ASSETS, THE ASSUMED LIABILITIES OR THE ORIGINATION BUSINESS EXCEPT AS EXPRESSLY
      SET FORTH IN THIS AGREEMENT. WITHOUT LIMITING THE FOREGOING, NEITHER SELLER
      NOR
      ANY OF ITS AFFILIATES IS MAKING ANY REPRESENTATION OR WARRANTY TO BUYER WITH
      RESPECT TO (I) THE INFORMATION SET FORTH IN ANY EVALUATION MATERIALS PROVIDED
      TO
      BUYER OR (II) ANY FINANCIAL PROJECTION OR FORECAST OR OTHER STATEMENT RELATING
      TO THE BUSINESS OF SELLER, THE ORIGINATION BUSINESS, THE ACQUIRED ASSETS OR
      THE
      ASSUMED LIABILITIES EXCEPT THE REPRESENTATIONS AND WARRANTIES SET FORTH IN
      THIS
      AGREEMENT. WITH RESPECT TO ANY PROJECTION OR FORECAST DELIVERED ON BEHALF OF
      SELLER OR ITS AFFILIATES OR REPRESENTATIVES TO BUYER OR ITS REPRESENTATIVES,
      BUYER ACKNOWLEDGES THAT (I) THERE ARE UNCERTAINTIES INHERENT IN ATTEMPTING
      TO
      MAKE SUCH PROJECTIONS AND FORECASTS, (II) EACH IS FAMILIAR WITH SUCH
      UNCERTAINTIES, AND (III) EACH IS TAKING FULL RESPONSIBILITY FOR MAKING ITS
      OWN
      EVALUATION OF THE ADEQUACY AND ACCURACY OF ALL SUCH PROJECTIONS AND FORECASTS
      FURNISHED TO IT.
      BUYER
      AGREES THAT, IN THE ABSENCE OF FRAUD OR INTENTIONAL MISSTATEMENT, NEITHER SELLER
      NOR ANY OF ITS AFFILIATES WILL HAVE ANY LIABILITY TO BUYER OR ITS AFFILIATES
      WITH RESPECT TO ANY INFORMATION THAT IS NOT INCLUDED IN THIS AGREEMENT OR THE
      SCHEDULES HERETO.

     

    
      
        
        

      

      
        48

        
          

        

      

      
        
        

      

    

    

    11.20 Limitation
      on Damages. 

    

    IN
      THE
      ABSENCE OF FRAUD, NO PARTY HERETO (OR ITS AFFILIATES) SHALL, UNDER ANY
      CIRCUMSTANCE, BE LIABLE TO ANY OTHER PARTY (OR ITS AFFILIATES), BY STATUTE,
      IN
      TORT OR CONTRACT OR OTHERWISE, FOR ANY PUNITIVE DAMAGES, LOSS OF REVENUE OR
      INCOME, COST OF CAPITAL, OR LOSS OF BUSINESS REPUTATION OR OPPORTUNITY, CLAIMED
      BY ANY OTHER PARTY UNDER THE TERMS OF OR WITH RESPECT TO ANY BREACH OF THIS
      AGREEMENT.

     

    [signature
      page follows]

     

    
      
        
        

      

      
        49

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, this Agreement has been signed on behalf of each of the parties
      hereto by their authorized representatives, all as of the day and year first
      above written.

    
      	 	 	 
	 	
              SELLER:
                

               

              The
                New York Mortgage Company, LLC

            
	 
 	 
 	 
 
	
            	By: 	
               /s/
                Steven R. Mumma

            
	 	
              

              Name:
                Steven R. Mumma

            
	 	
              Title:
                Chief Executive Officer

            

    

     

    
      	 	 	 
	 	
              NYMT:
                

               

              The
                New York Mortgage Company, Inc.

            
	 
 	 
 	 
 
	
            	By: 	
               /s/
                David A. Akre

            
	 	
              

              Name:
                David A. Akre

            
	 	
              Title:
                Co-Chief Executive Officer

            

      	 	 	 
	 	
              BUYER:
                

               

              Tribeca
                Lending Corp.

            
	 
 	 
 	 
 
	
            	By: 	
               /s/
                A. Gordon Jardin

            
	 	
              
Name: 
              A.
              Gordon Jardin
	 	Title: Chief Executive
              Officer

    

     

    
      	 	 	 
	 	
              FCMC:
                

               

              Franklin
                Credit Management Corporation

            
	 
 	 
 	 
 
	
            	By: 	
               /s/
                A. Gordon Jardin

            
	 	
              
Name: 
              A.
              Gordon Jardin
	 	Title: Chief Executive
              Officer

    

     

    
      
        
        

      

      
        50

        
          

        

      

      
        
        

      

    

    Exhibit
      A

     

    Assumed
      Leases

     

    
      
        
        

      

      
        51

        
          

        

      

      
        
        

      

    

     

    Exhibit
      E

    

    Pipeline
      Mortgage Loan Adjustment

    

    Buyer
      and
      Seller shall determine the Pipeline Mortgage Loan Adjustment as of the Closing
      Date in accordance with the sample calculation included in the schedules
      attached to this Exhibit E.

     

    
      
        
        

      

      
        52

        
          

        

      

      
        
        

      

    

     

    Schedule
      1

    Acquired
      Intellectual Property

     

    
      
        
        

      

      
        53

        
          

        

      

      
        
        

      

    

     

    Schedule
      3.4

    Liens

    

    None.

     

    
      
        
        

      

      
        54

        
          

        

      

      
        
        

      

    

     

    Schedule
      3.10 

    Compliance
      with Applicable Requirements

    

    None.

     

    
      
        
        

      

      
        55

        
          

        

      

      
        
        

      

    

     

    Schedule
      3.10(b)

    Compliance
      with Applicable Laws

     

    None.

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

     

    Schedule
      3.12 

    Seller
      Required Consents

     

    None.

     

    
      
        
        

      

      
        57

        
          

        

      

      
        
        

      

    

     

    Schedule
      3.16 

    Intellectual
      Property Infringement

     

    None.

     

    
      
        
        

      

      
        58

        
          

        

      

      
        
        

      

    

     

    Schedule
      3.17(a)

    Pipeline
      Mortgage Loans

     

    None.

     

    
      
        
        

      

      
        59

        
          

        

      

      
        
        

      

    

     

    Schedule
      4.10 

    Buyer
      Required Consents

     

    None.

     

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

    
 

    Schedule
      7.12

    Post-Closing
      Services

     

    
      
        
        

      

      
        61

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