Document:

Exhibit 10.1
    

    
      MANAGEMENT AGREEMENT
    

    
      THIS MANAGEMENT AGREEMENT is made as of June 26, 2013 by and among
      Annaly Management Company LLC, a Delaware limited liability company
      (together with its permitted assignees, the “Manager”),
      ANNALY CAPITAL MANAGEMENT, INC., a Maryland corporation (the “Company”),
      and each Subsidiary (as defined below) of the Company that becomes a
      party to the Agreement (as defined below) pursuant to Section 29, and
      shall become effective and binding on the Manager and the Company as of
      July 1, 2013 (the “Effective Date”).  
    

    
      WHEREAS, the Company has elected to be taxed as a “real estate
      investment trust” (“REIT”) as defined under the
      Internal Revenue Code of 1986, as amended (the “Code”); and
    

    
      WHEREAS, the Company and the Subsidiaries each desire to retain the
      Manager to provide investment advisory services to the Company and the
      Subsidiaries on the terms and conditions hereinafter set forth, and the
      Manager wishes to be retained to provide such services.  
    

    
      NOW THEREFORE, in consideration of the mutual agreements herein set
      forth, the parties hereto agree as follows:
    

    
      SECTION 1.  DEFINITIONS. The following terms have the
      following meanings assigned to them:
    

    
      (a)  “Affiliate” means (i) any Person directly or
      indirectly controlling, controlled by, or under common control with such
      other Person, (ii) any executive officer, general partner or employee of
      such other Person, (iii) any member of the board of directors or board
      of managers (or bodies performing similar functions) of such Person, and
      (iv) any legal entity for which such Person acts as an executive officer
      or general partner.
    

    
      (b)  “Agreement” means this Management Agreement,
      as amended from time to time.  
    

    
      (c)  “Assets” means the assets of the Company and
      the Subsidiaries.
    

    
      (d)  “Bankruptcy” means, with respect to any
      Person, (a) the filing by such Person of a voluntary petition seeking
      liquidation, reorganization, arrangement or readjustment, in any form,
      of its debts under Title 11 of the United States Code or any other
      federal, state or foreign insolvency law, or such Person’s filing an
      answer consenting to or acquiescing in any such petition, (b) the making
      by such Person of any assignment for the benefit of its creditors, (c)
      the expiration of sixty (60) days after the filing of an involuntary
      petition under Title 11 of the Unites States Code, an application for
      the appointment of a receiver for a material portion of the assets of
      such Person, or an involuntary petition seeking liquidation,
      reorganization, arrangement or readjustment of its debts under any other
      federal, state or foreign insolvency law, provided that the same shall
      not have been vacated, set aside or stayed within such 60-day period or
      (d) the entry against it of a final and non-appealable order for relief
      under any bankruptcy, insolvency or similar law now or hereinafter in
      effect.
    

    
      (e)  “Board of Directors” means the Board of
      Directors of the Company.
    

    
      
        

        

      

      
        
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      (f)   “Code” has the meaning set forth in the
      recitals of the Agreement.
    

    
      (g)  “Common Stock” means the common stock, par
      value $0.01 per share, of the Company.
    

    
      (h)  “Company” has the meaning set forth in the
      preamble of the Agreement.
    

    
      (i)  “Company Account” has the meaning set forth
      in Section 5 of the Agreement.   
    

    
      (j)  “Company Executive Officer” means the
      Company’s Chief Executive Officer, President, Chief Operating Officer,
      Chief Financial Officer, and Chief Legal Officer of the Company.
    

    
      (k)  “Company Indemnified Party” has the meaning
      set forth in Section 11(b) of the Agreement.   
    

    
      (l)  “Effective Termination Date” has the meaning
      set forth in Section 13(a) of the Agreement.
    

    
      (m)  “Excess Funds” has the meaning set forth in
      Section 2(m) of the Agreement.   
    

    
      (n)  “Exchange Act” means the Securities Exchange
      Act of 1934, as amended.  
    

    
      (o)  “Expenses” has the meaning set forth in
      Section 9 of the Agreement.   
    

    
      (p)  “GAAP” means generally accepted accounting
      principles, as applied in the United States.  
    

    
      (q)  “Governing Instruments” means, with regard
      to any entity, the articles of incorporation and bylaws in the case of a
      corporation, certificate of limited partnership (if applicable) and the
      partnership agreement in the case of a general or limited partnership,
      the articles of formation and the operating agreement in the case of a
      limited liability company, the trust instrument in the case of a trust,
      or similar governing documents, in each case as amended from time to
      time.  
    

    
      (r)  “Guidelines” has the meaning set forth in
      Section 2(b)(i) of the Agreement.
    

    
      (s)  “Indemnitee” has the meaning set forth in
      Section 11(b) of the Agreement.   
    

    
      (t)  “Indemnitor” has the meaning set forth in
      Section 11(c) of the Agreement.   
    

    
      (u)  “Independent Directors” means the members of
      the Board of Directors who are not officers or employees of the Manager
      or any Person directly or indirectly controlling or controlled by the
      Manager, and who are otherwise “independent” in accordance with the
      Company’s Governing Instruments and, if applicable, the rules of any
      national securities exchange on which the Common Stock is listed.  
    

    
      (v)  “Initial Term” has the meaning set forth in
      Section 13(a) of the Agreement.
    

    
      (w)  “Investment Company Act” means the
      Investment Company Act of 1940, as amended.
    

    
      
        

        

      

      
        
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      (x)  “Management Fee” means a management fee,
      payable (in cash) monthly in arrears, in an amount equal to one-twelfth
      of 1.05% of the Opening Stockholders’ Equity Balance, as adjusted by the
      Manager in the following manner:
    

    
      (A)       at the end of a calendar month to reflect any changes that
      result from any of the events specified in clause (A) in the definition
      of “Stockholders' Equity” during such calendar month from the Opening
      Stockholders’ Equity Balance; and
    

    
      (B)       at the end of a calendar quarter to reflect any changes that
      result from the components specified in clauses (B), (C) or (D) in the
      definition of “Stockholders’ Equity” for such calendar quarter from the
      Opening Stockholders’ Equity Balance.
    

    
      Since the Management Fee is to be paid monthly, and the components of
      Stockholders’ Equity specified in clauses (B), (C) and (D) will not be
      known until the end of the quarter in question, the Manager shall use
      the prior quarter’s value as an estimate for each monthly payment and
      will effect a reconciliation at the end of the quarter, so that the
      actual Management Fee paid for each quarter will be based on the values
      of the components specified in clauses (B), (C) and (D) at the end of
      that particular quarter.
    

    
      (y)  “Manager” has the meaning set forth in the
      preamble of the Agreement.  
    

    
      (z)  “Manager Indemnified Party” has the meaning
      set forth in Section 11(a) of the Agreement.
    

    
      (aa)  “Monitoring Services” has the meaning set
      forth in Section 2(b) of the Agreement.
    

    
      (bb)  “Notice of Proposal to Negotiate” has the
      meaning set forth in Section 13(a) of the Agreement.
    

    
      (cc)  “NYSE” means the New York Stock Exchange
      LLC.
    

    
      (dd)  “Opening Stockholders’ Equity Balance”
      means Stockholders’ Equity at the end of the most recently completed
      calendar quarter.
    

    
      (ee)  “Person” means any individual, corporation,
      partnership, joint venture, limited liability company, estate, trust,
      unincorporated association, any federal, state, county or municipal
      government or any bureau, department or agency thereof and any fiduciary
      acting in such capacity on behalf of any of the foregoing.  
    

    
      (ff)  “Portfolio Management Services” has the
      meaning set forth in Section 2(b) of the Agreement.
    

    
      (gg)   “Qualified REIT Subsidiary” has the
      meaning set forth in Section 856(i)(2) of the Code.
    

    
      (hh)  “REIT” has the meaning set forth in the
      recitals of the Agreement.
    

    
      
        

        

      

      
        
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      (ii)  “Renewal Term” has the meaning set forth in
      Section 13(a) of the Agreement.
    

    
      (jj)   “Sale of the Manager” means the occurrence
      of any of the following:
    

    
      (A)       the sale, lease or transfer, in one or a series of related
      transactions, of all or substantially all of the assets of the Manager,
      taken as a whole, to any Person; or
    

    
      (B)       the acquisition by any Person or group other than any of the
      Manager’s employees (within the meaning of Section 13(d)(3) or Section
      14(d)(2) of the Exchange Act, or any successor provision), including any
      group acting for the purpose of acquiring, holding or disposing of
      securities (within the meaning of Rule 13d-5(b)(1) under the Exchange
      Act),  in a single transaction or in a related series of transactions,
      by way of merger, consolidation or other business combination or
      purchase of beneficial ownership (within the meaning of Rule 13d-3 under
      the Exchange Act, or any successor provision) of 50% or more of the
      total voting power of the voting capital interests of the Manager or 50%
      or more of the total market value of the capital interests of the
      Manager.
    

    
      (kk)   “Securities Act” means the Securities Act
      of 1933, as amended.
    

    
      (ll)  “Stockholders’ Equity” means:
    

    
      (A)       the sum of the net proceeds from any issuances of the
      Company’s equity securities since inception less any amount that the
      Company pays for repurchases of its equity securities (determined as of
      the most recent month end), plus
    

    
      (B)       the Company’s consolidated retained earnings at the end of the
      most recently completed calendar quarter (without taking into account
      any non-cash equity compensation expense incurred in current or prior
      periods), less
    

    
      (C)       any unrealized gains, losses or other items that do not affect
      realized net income as of the most recently completed calendar quarter
      as adjusted to exclude
    

    
      (D)       one-time events pursuant to changes in GAAP and certain
      non-cash charges after discussions between the Manager and the
      Company’s  Independent Directors and approved by a majority of the
      Company’s  Independent Directors.
    

    
       (mm)  “Subsidiary” means any subsidiary of
      the Company; any partnership, the general partner of which is the
      Company or any                      subsidiary of the Company; and any
      limited liability company, the managing member of which is the Company
      or any subsidiary of the                      Company.
    

    
      (nn)  “Taxable REIT Subsidiary” has the meaning
      set forth in Section 856(l) of the Code.  
    

    
      (oo)  “Termination Notice” has the meaning set
      forth in Section 13(a) of the Agreement.
    

    
      (pp)  “Treasury Regulations” means the
      regulations promulgated under the Code from time to time, as amended.
    

    
      
        

        

      

      
        
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      SECTION 2.  APPOINTMENT AND DUTIES OF THE MANAGER.  
    

    
         (a)  The Company and each Subsidiary that becomes a party to this
      Agreement each hereby appoints the Manager to manage the Assets of the
      Company and each Subsidiary that becomes a party to this Agreement
      subject to the further terms and conditions set forth in this Agreement,
      and the Manager hereby agrees to use its commercially reasonable efforts
      to perform each of the duties set forth herein.  Unless otherwise
      provided, the appointment gives the Manager discretionary authority over
      the Assets and in the performance of the Portfolio Management Services,
      as defined below.  The appointment of the Manager shall be exclusive to
      the Manager except to the extent that the Manager otherwise agrees, in
      its sole and absolute discretion, and except to the extent that the
      Manager elects, pursuant to the terms of this Agreement, to cause the
      duties of the Manager hereunder to be provided by third parties.  
    

    
         (b)  The Manager, in its capacity as manager of the Assets and the
      day-to-day operations of the Company and its Subsidiaries, at all times
      will be subject to the supervision of the Company’s Board of Directors
      and will have only such functions and authority as the Company and its
      Subsidiaries may delegate to it including, without limitation, the
      functions and authority identified herein and delegated to the Manager
      hereby. The Manager will be responsible for the day-to-day operations of
      the Company and its Subsidiaries and will perform (or cause to be
      performed) such services and activities relating to the Assets and
      operations of the Company and its Subsidiaries as may be appropriate,
      including, without limitation:
    

    
             (i)  serving as consultant for the Company and its Subsidiaries
      with respect to the periodic review of the investment criteria and
      parameters for the Assets, borrowings and operations, any modifications
      to which shall be approved by a majority of the Independent Directors
      (such policy guidelines as initially approved and attached hereto as Exhibit
      A, as the same may be modified with such approval, the “Guidelines”),
      and other policies for approval by the Board of Directors;
    

    
            (ii)  investigating, analyzing and selecting possible asset
      acquisition opportunities and acquiring, financing, retaining, selling,
      restructuring, or disposing of Assets consistent with the Guidelines;
    

    
           (iii)  with respect to prospective purchases, sales, or exchanges
      of Assets, conducting negotiations, on behalf of the Company and its
      Subsidiaries, with sellers and purchasers and their respective agents,
      representatives and investment bankers;
    

    
            (iv)  advising the Board of Directors with respect to alternative
      forms of capital raising;
    

    
             (v)  negotiating and entering into, on behalf of the Company and
      its Subsidiaries, repurchase agreements, securitizations, commercial
      paper, CDOs, interest rate swap agreements, warehouse facilities and
      other agreements and instruments required for the Company and its
      Subsidiaries to conduct its business;
    

    
            (vi)  engaging and supervising, on behalf of the Company and its
      Subsidiaries, and at the Company’s expense, independent contractors
      which provide investment banking, mortgage brokerage, securities
      brokerage, other financial services, due diligence services,
      underwriting review services, and all other services as may be required
      relating to the Company’s and the Subsidiaries’ operations or Assets (or
      potential Assets);
    

    
      
        

        

      

      
        
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           (vii)  advising the Company and its Subsidiaries on, preparing,
      negotiating and entering into, on the Company’s behalf, applications and
      agreements relating to programs established by the U.S. Government or
      other governments;
    

    
          (viii)  coordinating and managing operations of any joint venture or
      co-investment interests held by the Company and its Subsidiaries and
      conducting all matters with the joint venture or co-investment partners;
    

    
            (ix)  providing executive and administrative personnel, office
      space and office services required in rendering services to the Company
      and its Subsidiaries;
    

    
             (x)  administering the day-to-day operations of the Company and
      its Subsidiaries and performing and supervising the performance of such
      other administrative functions necessary in the management of the
      Company and its Subsidiaries as may be agreed upon by the Manager and
      the Board of Directors, including, without limitation, the collection of
      revenues and the payment of the Company’s and its Subsidiaries’ debts
      and obligations and maintenance of appropriate computer services to
      perform such administrative functions;
    

    
            (xi)  communicating on behalf of the Company and its Subsidiaries
      with the holders of any equity or debt securities of the Company and its
      Subsidiaries as required to satisfy the reporting and other requirements
      of any governmental bodies or agencies or trading markets and to
      maintain effective relations with such holders;
    

    
           (xii)  counseling the Company in connection with policy decisions
      to be made by the Board of Directors;
    

    
          (xiii)  evaluating and recommending to the Board of Directors
      hedging strategies and engaging in hedging activities on behalf of the
      Company and its Subsidiaries, consistent with such strategies, as so
      modified from time to time, with the Company’s status as a REIT, and
      with the Guidelines;
    

    
           (xiv)  counseling the Company regarding the maintenance of its
      status as a REIT and monitoring compliance with the various REIT
      qualification tests and other rules set out in the Code and Treasury
      Regulations thereunder and using commercially reasonable efforts to
      cause the Company to qualify for taxation as a REIT;
    

    
            (xv)  counseling the Company and its Subsidiaries regarding Asset
      holdings in order for the Company or any Subsidiary not to fall within
      the definition of “investment company” under the Investment Company Act
      or otherwise satisfy an exemption or exclusion from the Investment
      Company Act and monitoring compliance with the requirements for
      maintaining an exemption from the Investment Company Act and using
      commercially reasonable efforts to cause the Company and its
      Subsidiaries to maintain such exemption from the registration as an
      investment company under the Investment Company Act;
    

    
           (xvi)  assisting the Company and its Subsidiaries in developing
      criteria for asset purchase commitments that are specifically tailored
      to the investment objectives of the Company and its Subsidiaries and
      making available to the Company and its Subsidiaries its knowledge and
      experience with respect to mortgage loans, real estate, real
      estate-related securities, other real estate-related assets and non-real
      estate related assets;
    

    
      
        

        

      

      
        
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         (xvii)  furnishing reports and statistical and economic research to
      the Company and its Subsidiaries regarding the activities of the Company
      and its Subsidiaries and the services performed for the Company and its
      Subsidiaries by the Manager;
    

    
         (xviii)  monitoring the operating performance of the Assets and
      providing periodic reports with respect to Asset performance to the
      Board of Directors, including comparative information with respect to
      such operating performance and budgeted or projected operating results;
    

    
           (xix)  investing and re-investing any moneys and securities of the
      Company and its Subsidiaries (including investing Assets in short-term
      financial instruments pending investment of such Assets, payment of
      fees, costs and expenses, or payments of dividends or distributions to
      stockholders and partners of the Company and its Subsidiaries) and
      advising the Company and its Subsidiaries as to its capital structure
      and capital raising;
    

    
            (xx)  causing the Company and its Subsidiaries to retain qualified
      accountants and legal counsel, as applicable, to assist in developing
      appropriate accounting procedures, compliance procedures and testing
      systems with respect to financial reporting obligations and compliance
      with the provisions of the Code applicable to REITs and to conduct
      quarterly compliance reviews with respect thereto;
    

    
           (xxi)  assisting the Company and its Subsidiaries in qualifying to
      do business in all applicable jurisdictions and to obtain and maintain
      all appropriate licenses;
    

    
          (xxii)  assisting the Company in establishing any new Subsidiaries,
      which may be Taxable REIT Subsidiaries or Qualified REIT Subsidiaries;
    

    
         (xxiii)  assisting the Company and its Subsidiaries in complying with
      all regulatory requirements applicable to the Company and its
      Subsidiaries in respect of its business activities, including preparing
      or causing the preparation of all financial statements required under
      applicable regulations and contractual undertakings and all reports and
      documents, if any, required under the Exchange Act and the Securities
      Act or by the NYSE and any other securities exchange or quotation
      systems on which the Company’s capital stock may be traded or quoted;
    

    
          (xxiv)  assisting the Company and its Subsidiaries in taking all
      necessary actions to enable the Company to make required tax filings and
      reports, including soliciting stockholders for required information to
      the extent provided by the provisions of the Code applicable to REITs;
    

    
           (xxv)  placing, or arranging for the placement of, all portfolio
      management orders pursuant to its investment determinations for the
      Company and its Subsidiaries either directly with the issuer or with a
      broker or dealer (including any Affiliated broker or dealer);  
    

    
          (xxvi)  handling and resolving all claims, disputes or controversies
      (including all litigation, arbitration, settlement or other proceedings
      or negotiations) in which the Company and its Subsidiaries may be
      involved or to which the Company may be subject arising out of the
      day-to-day operations of the Company and its Subsidiaries (other than
      with the Manager or its Affiliates), subject to such limitations or
      parameters as may be imposed from time to time by the Board of Directors;
    

    
      
        

        

      

      
        
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         (xxvii)  using commercially reasonable efforts to cause expenses
      incurred by or on behalf of the Company and its Subsidiaries to be
      commercially reasonable or commercially customary and within any
      budgeted parameters or expense guidelines set by the Board of Directors
      from time to time;
    

    
        (xxviii)    representing and making recommendations to the Company and
      its Subsidiaries in connection with the purchase and finance of, and
      commitment to purchase and finance, mortgage loans (including on a
      portfolio basis), real estate, real estate-related securities, other
      real estate-related assets and non-real estate-related assets, and the
      sale and commitment to sell such assets;
    

    
          (xxix)  advising the Company and its Subsidiaries with respect to
      and structuring long-term financing vehicles for the portfolio of
      Assets, and offering and selling securities publicly or privately in
      connection with any such structured financing;
    

    
           (xxx)   serving as the consultant for the Company and its
      Subsidiaries with respect to decisions regarding any of its financings,
      hedging activities or borrowings undertaken by the Company and its
      Subsidiaries including (1) assisting the Company and its Subsidiaries in
      developing criteria for debt and equity financing that is specifically
      tailored to its objectives; and (2) advising the Company and its
      Subsidiaries with respect to obtaining appropriate financing for its
      Assets;
    

    
          (xxxi)  arranging marketing materials, advertising, industry group
      activities (such as conference participations and industry organization
      memberships) and other promotional efforts designed to promote the
      business of the Company and its Subsidiaries;
    

    
         (xxxii)  performing such other services as may be reasonably required
      from time to time for management and other activities relating to the
      Assets and business of the Company and its Subsidiaries as the Board of
      Directors shall reasonably request or the Manager shall deem appropriate
      under the particular circumstances; and
    

    
        (xxxiii)  using commercially reasonable efforts to cause the Company
      and its Subsidiaries to materially comply with all applicable laws.  
    

    
      Without limiting the foregoing, the Manager will perform portfolio
      management services (the “Portfolio Management Services”)
      on behalf of the Company and its Subsidiaries with respect to the
      Assets.  Such services will include, but not be limited to: (i)
      consulting with the Company and its Subsidiaries on the purchase and
      sale of portfolio Assets; (ii) identifying other investment
      opportunities in connection with managing the portfolio of Assets; (iii)
      collecting information on, and submitting reports pertaining to Assets,
      interest rates and general economic conditions; (iv) periodically
      reviewing and evaluating the performance of the portfolio of Assets; (v)
      acting as liaison between the Company and its Subsidiaries and banking,
      mortgage banking, investment banking and other parties with respect to
      the purchase, financing and disposition of Assets; and (vi) performing
      other customary functions related to portfolio
      management.  Additionally, the Manager will perform monitoring services
      (the “Monitoring Services”) on behalf of the Company and
      its Subsidiaries with respect to any loan servicing activities provided
      by third parties. Such Monitoring Services will include, but not be
      limited to: (i) negotiating servicing agreements; (ii) acting as a
      liaison between the servicers of the assets and the Company and its
      Subsidiaries; (iii) reviewing servicers’ delinquency, foreclosure and
      other reports on Assets; supervising claims filed under any insurance
      policies; and (iv) enforcing the obligation of any servicer to
      repurchase assets.
    

    
      
        

        

      

      
        
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         (c)  For the period and on the terms and conditions set forth in this
      Agreement, the Company and each of its Subsidiaries hereby constitutes,
      appoints and authorizes the Manager as its true and lawful agent and
      attorney-in-fact, in its name, place and stead, to negotiate, execute,
      deliver and enter into such credit finance agreements and arrangements
      and securities repurchase and reverse repurchase agreements and
      arrangements, brokerage agreements, interest rate swap agreements and
      such other agreements, instruments and authorizations on its behalf on
      such terms and conditions as the Manager, acting in its sole and
      absolute discretion, deems necessary or appropriate.  This power of
      attorney is deemed to be coupled with an interest.
    

    
         (d)  The Manager may enter into agreements with third parties, for
      the purpose of engaging one or more parties for and on behalf, and at
      the sole cost and expense, of the Company and its Subsidiaries to
      provide property management, asset management, leasing, development
      and/or other services to the Company and its Subsidiaries pursuant to
      agreement(s) with terms which are then customary for agreements
      regarding the provision of services to companies that have assets
      similar in type, quality and value to the assets of the Company and its
      Subsidiaries.
    

    
         (e)  To the extent that the Manager deems necessary or advisable, the
      Manager may, from time to time, propose to retain one or more additional
      service providers for the provision of sub-advisory services to the
      Manager in order to enable the Manager to provide the services to the
      Company and its Subsidiaries specified by this Agreement; provided
      that any such agreement (i) shall be on terms and conditions
      substantially identical to the terms and conditions of this Agreement or
      otherwise not adverse to the Company and its Subsidiaries, (ii) shall
      not result in an increased Management Fee or expenses to the Company,
      and (iii) shall be approved by the Independent Directors of the
      Company.  
    

    
         (f)  The Manager may retain, for and on behalf and at the sole cost
      and expense of the Company and its Subsidiaries, such services of
      accountants, legal counsel, appraisers, insurers, brokers, dealers,
      transfer agents, registrars, developers, investment banks, financial
      advisors, due diligence firms, underwriting review firms, banks and
      other lenders and others as the Manager deems necessary or advisable in
      connection with the management and operations of the Company and its
      Subsidiaries.  Notwithstanding anything contained herein to the
      contrary, the Manager shall have the right to cause any such services to
      be rendered by its employees or Affiliates (including having any
      “in-house” legal opinions of the Company be issued by employees of the
      Manager).  The Company shall pay or reimburse the Manager or its
      Affiliates performing such services for the cost thereof; provided
      that such costs and reimbursements are no greater than those which would
      be payable to comparable outside professionals or consultants engaged to
      perform such services pursuant to agreements negotiated on an
      arm’s-length basis.  
    

    
         (g)  The Manager may effect transactions by or through the agency of
      another person with it or its Affiliates which have an arrangement under
      which that party or its Affiliates will from time to time provide to or
      procure for the Manager and/or its Affiliates goods, services or other
      benefits (including, but not limited to, research and advisory services;
      economic and political analysis, including valuation and performance
      measurement; market analysis, data and quotation services; computer
      hardware and software incidental to the above goods and services;
      clearing and custodian services and investment related publications),
      the nature of which is such that provision can reasonably be expected to
      benefit the Company as a whole and may contribute to an improvement in
      the performance of the Company or the Manager or its Affiliates in
      providing services to the Company on terms that no direct payment is
      made but instead the Manager and/or its Affiliates undertake to place
      business with that party.  
    

    
         (h)  In executing portfolio transactions and selecting brokers or
      dealers, the Manager will use its commercially reasonable efforts to
      seek on behalf of the Company and its Subsidiaries the best overall
      terms available.  In assessing the best overall terms available for any
      transaction, the Manager shall consider all factors that it deems
      relevant, including without limitation the breadth of the market in the
      security, the price of the security, the financial condition and
      execution capability of the broker or dealer, and the reasonableness of
      transaction costs, including commissions, mark-ups, markdowns or other
      expenses, if any, both for the specific transaction and on a continuing
      basis.  In evaluating the best overall terms available, and in selecting
      the broker or dealer to execute a particular transaction, the Manager
      may also consider whether such broker or dealer furnishes research and
      other information or services to the Manager.
    

    
      
        

        

      

      
        
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         (i)  The Manager has no duty or obligation to seek in advance
      competitive bidding for the most favorable commission rate applicable to
      any particular purchase, sale or other transaction, or to select any
      broker-dealer on the basis of its purported or “posted” commission rate,
      but will endeavor to be aware of the current level of charges of
      eligible broker-dealers and to minimize the expense incurred for
      effecting purchases, sales and other transactions to the extent
      consistent with the interests and policies of the Company and its
      Subsidiaries.  Although the Manager will generally seek competitive
      commission rates, it is not required to pay the lowest commission or
      commission equivalent, provided that such decision is made in good faith
      to effect the best interests of the Company and its Subsidiaries.
    

    
         (j)  As frequently as the Manager may deem necessary or advisable, or
      at the direction of the Board of Directors, the Manager shall, at the
      sole cost and expense of the Company and its Subsidiaries, prepare, or
      cause to be prepared, with respect to any Investment, reports and other
      information with respect to such Investment as may be reasonably
      requested by the Company.  
    

    
         (k)  The Manager shall prepare, or cause to be prepared, at the sole
      cost and expense of the Company and its Subsidiaries, all reports,
      financial or otherwise, with respect to the Company and its Subsidiaries
      reasonably required by the Board of Directors in order for the Company
      and its Subsidiaries to comply with its Governing Instruments or any
      other materials required to be filed with any governmental body or
      agency, and shall prepare, or cause to be prepared, all materials and
      data necessary to complete such reports and other materials including,
      without limitation, an annual audit of the Company’s and its
      Subsidiaries’ books of account by a nationally recognized independent
      accounting firm.  
    

    
         (l)  The Manager shall prepare regular reports for the Board of
      Directors to enable the Board of Directors to review the Company’s and
      its Subsidiaries’ acquisitions, portfolio composition and
      characteristics, credit quality, performance and compliance with the
      Guidelines and policies approved by the Board of Directors.  
    

    
         (m)  Notwithstanding anything contained in this Agreement to the
      contrary, except to the extent that the payment of additional moneys is
      proven by the Company to have been required as a direct result of the
      Manager’s acts or omissions which result in the right of the Company to
      terminate this Agreement pursuant to Section 15 of this Agreement, the
      Manager shall not be required to expend money (“Excess Funds”)
      in connection with any expenses that are required to be paid for or
      reimbursed by the Company pursuant to Section 9 in excess of that
      contained in any applicable Company Account (as herein defined) or
      otherwise made available by the Company to be expended by the Manager
      hereunder.  Failure of the Manager to expend Excess Funds out-of-pocket
      shall not give rise or be a contributing factor to the right of the
      Company under Section 13(a) of this Agreement to terminate this
      Agreement due to the Manager’s unsatisfactory performance.  
    

    
         (n)  In performing its duties under this Section 2, the Manager shall
      be entitled to rely reasonably on qualified experts and professionals
      (including, without limitation, accountants, legal counsel and other
      service providers) hired by the Manager at the Company’s and its
      Subsidiaries’ sole cost and expense.  
    

    
      
        

        

      

      
        
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         (o)  After the Effective Date, the Manager will advise the Board of
      Directors of changes in the equity ownership of the Manager.
    

    
      SECTION 3.  DEVOTION OF TIME; NONCOMPETITION;
      NONSOLICITATION.  
    

    
         (a)  The Manager will provide the Company and its Subsidiaries with a
      management team, including its Chief Executive Officer, President, Chief
      Operating Officer, Chief Financial Officer, and Chief Legal Officer and
      other support personnel, to provide the management services to be
      provided by the Manager to the Company and its Subsidiaries hereunder,
      the members of which team shall devote their full business time, energy
      and ability to the management of the Company and its Subsidiaries as the
      Board of Directors deems necessary and appropriate, commensurate with
      the level of activity of the Company and its Subsidiaries from time to
      time.   The Manager shall provide the Company with a succession plan,
      which must be reasonably acceptable to a majority of the Independent
      Directors, setting forth the succession of replacement officers in the
      event that a member of the management team is unable to provide
      management services to the Manager.
    

    
         (b)  Each Company Executive Officer shall enter into an employment
      agreement with the Manager, to which the Company shall be a third party
      beneficiary, that provides that during the term of the Company Executive
      Officer’s employment and, in the event of termination of the Company
      Executive Officer’s employment by the Manager for Cause or voluntary
      termination of employment by the Company Executive Officer (other than
      for Good Reason), for a period of one year following such termination,
      the Company Executive Officer will not, directly or indirectly, without
      the prior written consent of the Company, manage, operate, join,
      control, participate in, or be connected as a stockholder (other than as
      a holder of shares publicly traded on a stock exchange or the NASDAQ
      National Market System), partner, or other equity holder with, or as an
      officer, director or employee of, any private or public investment firm,
      broker dealer or real estate investment trust whose principal business
      strategy is based on or who engages in the trading, sales or management
      of mortgage-backed securities (the “Business”) in any
      geographical region in which the Company engages in the Business.  The
      employment agreement will further provide that it is further expressly
      agreed that the Company will or would suffer irreparable injury of the
      Company in violation of the preceding sentence of this Agreement and
      that the Company would by reason of such competition be entitled to
      injunctive relief in a court of appropriate jurisdiction, and the
      Company Executive Officer further consents and stipulates to the entry
      of such injunctive relief in such a court prohibiting the Company
      Executive Officer from competing with the Company or any Subsidiary in
      the areas of Business in violation of this Agreement.  For the purposes
      of this paragraph “Cause” means (i)  the Company Executive
      Officer’s failure to substantially perform the duties described in his
      or her employment agreement, (ii) acts or omissions constituting
      recklessness or willful misconduct on the part of the Company Executive
      Officer in respect of his or her fiduciary obligations to the Manager
      which is materially and demonstrably injurious to the Manager, or (iii)
      the Company Executive Officer’s conviction for fraud, misappropriation
      or embezzlement in connection with the assets of the Company or the
      Manager.  In the case of clause (i) only, it shall also be a condition
      precedent to the Manager’s right to terminate the Company Executive
      Officer’s employment for Cause that (1) the Manager shall first have
      given the Company Executive Officer written notice stating with
      specificity the reason for the termination (“breach”) at
      least 60 days before such determination and the Company Executive
      Officer and his or her counsel are given the opportunity to answer such
      grounds for termination in person, at a hearing or in writing, in the
      Company Executive Officer’s discretion; and (2) if such breach is
      susceptible to cure or remedy, a period of 60 days from and after the
      giving of the notice described in (1) shall have elapsed without the
      Company Executive Officer having effectively cured or remedied such
      breach during such 30-day period, unless such breach cannot be cured or
      remedied within 60 days, in which case the period for remedy or cure
      shall be extended for a reasonable time (not to exceed an additional 30
      days), provided the Company Executive Officer has made and continues to
      make a diligent effort to effect such remedy or cure.  In the case of
      clause (iii) above, the Company Executive Officer’s employment may be
      terminated immediately without any advance written notice.  For the
      purposes of this paragraph “Good Reason” means the
      occurrence of one or more of the following without the Company Executive
      Officer’s written consent: (i) a material breach of this Agreement by
      the Company, (ii) a materially significant change by the Company in the
      Company Executive Officer’s duties, authorities or responsibilities,
      (iii) the relocation by the Company of the Company Executive Officer’s
      principal place of employment more than 60 miles from New York, New
      York, or (iv) the failure of the Company to obtain the assumption in
      writing of its obligations to perform this Agreement by any successor to
      all or substantially all of the assets or business of the Company within
      fifteen (15) days upon a merger, consolidation, sale or similar
      transaction, provided however that none of the events specified in (i),
      (ii), or (iii) shall constitute Good Reason unless the Company Executive
      Officer shall have notified the Company in writing describing the events
      which constitute Good Reason and the Company shall have failed to cure
      such event within a reasonable period, not to exceed thirty (30) days,
      after the Company’s actual receipt of such written notice.
    

    
      
        

        

      

      
        
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        (c)  During the Term of this Agreement and, in the event of
      termination of this Agreement by the Manager pursuant to Section 13(b),
      for a period of one year following such termination, the Manager will
      not, directly or indirectly, without the prior written consent of the
      Company, manage, operate, join, control, participate in, or advise any
      real estate investment trust whose business strategy is based on or who
      engages in the Business in any geographical region in which the Company
      engages in the Business.  It is further expressly agreed that the
      Company will or would suffer irreparable injury of the Company in
      violation of the preceding sentence of this Agreement and that the
      Company would by reason of such competition be entitled to injunctive
      relief in a court of appropriate jurisdiction, and the Manager further
      consents and stipulates to the entry of such injunctive relief in such a
      court prohibiting the Manager from competing with the Company or any
      Subsidiary, in the areas of Business in violation of this Agreement.
    

    
      SECTION 4.  AGENCY.  
    

    
      (a)  The Manager shall act as agent of the Company and each Subsidiary
      in making, acquiring, financing and disposing of Assets, disbursing and
      collecting the Company’s funds, paying the debts and fulfilling the
      obligations of the Company and each Subsidiary, supervising the
      performance of professionals engaged by or on behalf of the Company and
      the Subsidiaries, and handling, prosecuting and settling any claims of
      or against the Company or Subsidiary, the Board of Directors, and
      holders of the Company’s and the Subsidiaries’ Assets.  
    

    
      (b)  Managers, partners, officers, employees and agents of the Manager
      or Affiliates of the Manager may serve as directors, officers,
      employees, agents, nominees or signatories for the Company or any
      Subsidiary, to the extent permitted by their Governing Instruments or by
      any resolutions duly adopted by the Board of Directors pursuant to the
      Company’s Governing Instruments.  When executing documents or otherwise
      acting in such capacities for the Company or the Subsidiary, such
      persons shall use their respective titles in the Company or the
      Subsidiary.  
    

    
      (c)  The Manager is authorized, for and on behalf of, and at the sole
      cost and expense of the Company and the Subsidiaries, to employ
      securities dealers for the purchase and sale of Assets as the Manager
      deems necessary or appropriate, in its sole discretion. All trades will
      be executed with established securities dealers which are approved by
      the Manager selected in a manner consistent with best execution. No
      concessions on prices will be made to any dealer by reason of services
      or goods provided or offered to be provided. In addition to the gross
      dealing price, the Manager will take into account the level of charges,
      mark up or mark down made by the counterparty and the creditworthiness
      of the counterparty.
    

    
      
        

        

      

      
        
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      (d)  The Company (including the Board of Directors) agrees to take, or
      cause to be taken, all actions reasonably required to permit and enable
      the Manager to carry out its duties and obligations under this
      Agreement, including, without limitation, all steps reasonably necessary
      to allow the Company to file any registration statement in a timely
      manner or to deliver any financial statements or other reports with
      respect to the Company or any Subsidiary.  If the Manager is not able to
      provide a service, or in the reasonable judgment of the Manager it is
      not prudent to provide a service, without the approval of the Board of
      Directors or the Independent Directors, as applicable, then the Manager
      shall use good faith reasonable efforts to promptly obtain such approval
      and shall be excused from providing such service (and shall not be in
      breach of this Agreement) until the applicable approval has been
      obtained.
    

    
      SECTION 5.  BANK ACCOUNTS.  At the direction of the
      Board of Directors, the Manager may establish and maintain one or more
      bank accounts in the name of the Company or any Subsidiary (any such
      account, a “Company Account”), and may collect and deposit
      funds into any such Company Account or Company Accounts, and disburse
      funds from any such Company Account or Company Accounts, under such
      terms and conditions as the Board of Directors may approve; and the
      Manager shall from time to time render appropriate accountings of such
      collections and payments to the Board of Directors and, upon request, to
      the auditors of the Company or any Subsidiary.  
    

    
      SECTION 6.  RECORDS; CONFIDENTIALITY.  The Manager
      shall maintain appropriate books of accounts and records relating to
      services performed under this Agreement, and such books of account and
      records shall be accessible for inspection by representatives of the
      Company or any Subsidiary at any time during normal business hours upon
      reasonable advance notice.  The Manager shall keep confidential any and
      all information obtained in connection with the services rendered under
      this Agreement and shall not disclose any such information (or use the
      same except in furtherance of its duties under this Agreement) to
      non-Affiliated third parties except (i) with the prior written consent
      of the Board of Directors; (ii) to legal counsel, accountants and other
      professional advisors; (iii) to appraisers, financing sources and others
      in the ordinary course of the Company’s and its Subsidiaries’ business;
      (iv) to governmental officials having jurisdiction over the Company or
      any Subsidiary; (v) in connection with any governmental or regulatory
      filings of the Company or any Subsidiary or disclosure or presentations
      to Company or Subsidiary investors; or (vi) as required by law or legal
      process to which the Manager or any Person to whom disclosure is
      permitted hereunder is a party.  The foregoing shall not apply to
      information which has previously become publicly available through the
      actions of a Person other than the Manager not resulting from the
      Manager’s violation of this Section 6.  The provisions of this Section 6
      shall survive the expiration or earlier termination of this Agreement
      for a period of one (1) year.  
    

    
      SECTION 7.  OBLIGATIONS OF MANAGER; RESTRICTIONS.  
    

    
         (a)  The Manager shall require each seller or transferor of
      investment assets to the Company and its Subsidiaries to make such
      representations and warranties regarding such assets as may, in the
      judgment of the Manager, be necessary and appropriate.  In addition, the
      Manager shall take such other action as it deems necessary or
      appropriate with regard to the protection of the Assets.  
    

    
         (b)  The Manager shall refrain from any action that, in its sole
      judgment made in good faith, (i) is not in compliance with the
      Guidelines, (ii) would adversely affect the status of the Company as a
      REIT under the Code, (iii) would adversely affect the status of the
      Company or the Subsidiary under the Investment Company Act or the
      Company’s or any Subsidiary’s reliance on any exemption from
      registration as an “investment company” under the Investment Company
      Act, or (iv) would violate any law, rule or regulation of any
      governmental body or agency having jurisdiction over the Company or any
      Subsidiary or that would otherwise not be permitted by the Company’s
      Governing Instruments.  If the Manager is ordered to take any such
      action by the Board of Directors, the Manager shall promptly notify the
      Board of Directors of the Manager’s judgment that such action would
      adversely affect such status or violate any such law, rule or regulation
      or the Governing Instruments.  Notwithstanding the foregoing or any
      other provisions of this Agreement, the Manager, its directors,
      officers, stockholders and employees shall not be liable to the Company
      or any Subsidiary, the Board of Directors, or the Company’s or any
      Subsidiary’s stockholders or partners, for any act or omission by the
      Manager, its directors, officers, stockholders or employees except as
      provided in Section 11 of this Agreement.  
    

    
      
        

        

      

      
        
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         (c)  The Board of Directors periodically reviews the Guidelines and
      the Company’s portfolio of Assets but will not review each proposed
      investment, except as otherwise provided herein.  If a majority of the
      Independent Directors determine in their periodic review of transactions
      that a particular transaction does not comply with the Guidelines, then
      a majority of the Independent Directors will consider what corrective
      action, if any, can be taken.  The Manager shall be permitted to rely
      upon the direction of the Secretary of the Company to evidence the
      approval of the Board of Directors or the Independent Directors with
      respect to a proposed investment.  
    

    
         (d)  The Manager shall at all times during the term of this Agreement
      maintain “errors and omissions” insurance coverage and other insurance
      coverage which is customarily carried by property, asset and investment
      managers performing functions similar to those of the Manager under this
      Agreement with respect to assets similar to the assets of the Company
      and its Subsidiaries, in an amount which is comparable to that
      customarily maintained by other managers or servicers of similar
      assets.  
    

    
         (e)  Each of executive officers initially provided by the Manager
      pursuant to Section 3(a) (Wellington J. Denahan, Kevin G. Keyes, Kathryn
      F. Fagan, R. Nicholas Singh and James P. Fortescue) shall, respectively,
      own an amount of the Company’s shares of common stock equal to at least
      six times their respective 2012 base salaries with the Company within
      three years from the Effective Date. For purposes of this requirement,
      vested shares from any restricted share grants shall be included in the
      amount of the Company's shares of common stock owned by the executive
      officers.
    

    
      SECTION 8.  COMPENSATION.  
    

    
         (a)  During the Initial Term and any Renewal Term (each as defined
      below), the Company shall pay the Manager the Management Fee monthly in
      arrears commencing with the month in which this Agreement was executed.
      If applicable, the initial payment and final installment of the
      Management Fee will be pro-rated based on the number of days during the
      initial and final month, respectively, that this Agreement was in
      effect.  
    

    
         (b)  The Manager shall compute each installment of the Management Fee
      within five days after the end of the calendar month with respect to
      which such installment is payable.  A copy of the computations made by
      the Manager to calculate such installment shall thereafter, for
      informational purposes only and subject in any event to Section 13(a) of
      this Agreement, promptly be delivered to the Board of Directors and,
      upon such delivery, payment of such installment of the Management Fee
      shown therein shall be due and payable no later than the date which is
      five business days after the date of delivery to the Board of Directors
      of such computations.  
    

    
         (c)  All compensation, including, without limitation, salaries, bonus
      and other wages, payroll taxes and the cost of employee benefit plans
      other than discretionary incentive compensation provided to employees in
      accordance with Section 8(f), and costs of insurance other than
      liability insurance as contemplated by Section 9(b)(iii), related to any
      employees of the Company or any of its Subsidiaries who remain employees
      thereof for regulatory or corporate efficiency reasons will be deducted
      from the Management Fee.
    

    
      
        

        

      

      
        
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         (d)  The Management Fee is subject to adjustment pursuant to and in
      accordance with the provisions of Section 13(a) of this Agreement.  
    

    
         (e)  The Company and the Manager agree that the Manager (as
      determined by the Company’s Chief Financial Officer in good faith) shall
      prepare a pro forma calculation that sets forth a calculation of the
      Management Fee as if this Agreement was in effect for the period from
      January 1, 2013 until the Effective Date (the “Pro Forma
      Calculation”).  The Company shall pay to the Manager, in July 2013,
      an amount equal to the Pro Forma Calculation minus the actual amount of
      cash compensation paid to any employees of the Company and any of its
      Subsidiaries for the period from January 1, 2013 until the Effective
      Date.  
    

    
      SECTION 9.  EXPENSES OF THE COMPANY.  
    

    
         (a)  The Manager shall be responsible for the compensation expenses
      related to any and all personnel of the Manager, including without
      limitation, salaries, bonus and other wages, payroll taxes and the cost
      of the employee benefit plans of such personnel, and costs of insurance
      with respect to such personnel (other than liability insurance as
      contemplated by Section 9(b)(iii)).
    

    
         (b)  The Company shall pay all of its expenses and shall reimburse
      the Manager for documented expenses of the Manager incurred on its
      behalf (the “Expenses”), excepting those expenses that are
      specifically the responsibility of the Manager as set forth
      herein.  Without limiting the generality of the foregoing, Expenses
      include, but are not limited to, the following:
    

    
             (i)  expenses in connection with the issuance and transaction
      costs incident to the acquisition, disposition and financing of Assets;
    

    
            (ii)  costs of legal, tax, accounting, consulting, auditing,
      administrative and other similar services rendered for the Company and
      its Subsidiaries by third party providers retained by the Manager.
    

    
           (iii)  the compensation of the Independent Directors and expenses
      of the Company’s directors and the cost of liability insurance to
      indemnify the directors and officers of the Company, its Subsidiaries
      and the Manager;
    

    
            (iv)  costs associated with the establishment and maintenance of
      any credit facilities or other indebtedness of the Company and its
      Subsidiaries (including commitment fees, accounting fees, legal fees,
      closing and other similar costs) or any securities offerings of the
      Company and its Subsidiaries;
    

    
             (v)  expenses connected with communications to holders of
      securities of the Company or its Subsidiaries and other bookkeeping and
      clerical work necessary in maintaining relations with holders of such
      securities and in complying with the continuous reporting and other
      requirements of governmental bodies or agencies, including, without
      limitation, all costs of preparing and filing required reports with the
      Securities and Exchange Commission, the costs payable by the Company to
      any transfer agent and registrar in connection with the listing and/or
      trading of the Company’s stock on any exchange or other market center,
      the fees payable by the Company to any such exchange in connection with
      its listing, costs of preparing, printing and mailing the Company’s
      annual report to its stockholders and proxy materials with respect to
      any meeting of the stockholders of the Company;
    

    
      
        

        

      

      
        
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            (vi)  costs associated with any computer software or hardware,
      electronic equipment or purchased information technology services from
      third-party vendors that is used solely for the Company and its
      Subsidiaries;
    

    
           (vii)  expenses incurred by managers, officers, employees and
      agents of the Manager for travel on behalf of the Company and its
      Subsidiaries and other out-of-pocket expenses incurred by managers,
      officers, employees and agents of the Manager in connection with the
      purchase, financing, refinancing, sale or other disposition of Assets or
      establishment and maintenance of any credit facilities and other
      indebtedness or any securities offerings of the Company and its
      Subsidiaries;
    

    
          (viii)  costs and expenses incurred with respect to market
      information systems and publications, research publications and
      materials, and settlement, clearing and custodial fees and expenses;
    

    
            (ix)  compensation and expenses of the custodian and transfer
      agent of the Company and its Subsidiaries, if any;
    

    
             (x)  the costs of maintaining compliance with all federal, state
      and local rules and regulations or any other regulatory agency;
    

    
            (xi)  all taxes and license fees;
    

    
           (xii)  all insurance costs incurred in connection with the
      operation of the business of the Company and its Subsidiaries except for
      the costs attributable to the insurance that the Manager elects or is
      required by Sections 7(d), 8(c) or 9(b)(iii) to carry for itself and its
      employees and employees of the Company and its Subsidiaries who remain
      employees thereof for regulatory or corporate efficiency reasons;
    

    
          (xiii)  costs and expenses incurred in contracting with third
      parties for the servicing and special servicing of assets of the Company
      and its Subsidiaries;
    

    
           (xiv)  all other costs and expenses relating to the business and
      investment operations of the Company and its Subsidiaries, including,
      without limitation, the costs and expenses of acquiring, owning,
      protecting, maintaining, developing and disposing of Assets, including
      appraisal, reporting, audit and legal fees;
    

    
            (xv)  expenses relating to any office(s) or office facilities,
      including but not limited to disaster backup recovery sites and
      facilities, maintained for the Company and its Subsidiaries or Assets
      separate from the office or offices of the Manager;
    

    
           (xvi)  expenses connected with the payments of interest, dividends
      or distributions in cash or any other form authorized or caused to be
      made by the Board of Directors to or on account of the holders of
      securities of the Company or its Subsidiaries, including, without
      limitation, in connection with any dividend reinvestment plan;
    

    
          (xvii)  any judgment or settlement of pending or threatened
      proceedings (whether civil, criminal or otherwise) against the Company
      or any Subsidiary, or against any trustee, director or officer of the
      Company or of any Subsidiary in his capacity as such for which the
      Company or any Subsidiary is required to indemnify such trustee,
      director or officer by any court or governmental agency;
    

    
      
        

        

      

      
        
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        (xviii)  all rent, telephone, utilities, office furniture, equipment,
      machinery and other office, internal and overhead expenses of the
      Company, its Subsidiaries, the Manager and its Affiliates required for
      the operations of the Company and its Subsidiaries; and
    

    
           (xix)  all other expenses actually incurred by the Manager which
      are reasonably necessary for the performance by the Manager of its
      duties and functions under this Agreement.  
    

    
      The provisions of this Section 9 shall survive the expiration or earlier
      termination of this Agreement to the extent such expenses have
      previously been incurred and have not yet been paid or are incurred in
      connection with such expiration or termination.  
    

    
      SECTION 10.  CALCULATIONS OF EXPENSES.  
    

    
      The Manager shall prepare a statement documenting the Expenses of the
      Company and its Subsidiaries and the Expenses incurred by the Manager on
      behalf of the Company during each month, and shall deliver such
      statement to the Company within 5 days after the end of each
      month.  Expenses incurred by the Manager on behalf of the Company shall
      be reimbursed by the Company to the Manager on the fifth (5th)
      business day immediately following the date of delivery of such
      statement; provided, however, that such reimbursements may be
      offset by the Manager against amounts due to the Company.  Cost and
      expense reimbursement to the Manager shall be subject to adjustment at
      the end of each calendar year in connection with the annual audit of the
      Company. The provisions of this Section 10 shall survive the expiration
      or earlier termination of this Agreement.  
    

    
      SECTION 11.  LIMITS OF MANAGER RESPONSIBILITY;
      INDEMNIFICATION.  
    

    
         (a)  The Manager assumes no responsibility under this Agreement other
      than to render the services called for under this Agreement in good
      faith and shall not be responsible for any action of the Board of
      Directors in following or declining to follow any advice or
      recommendations of the Manager, including as set forth in Section 7(b)
      of this Agreement.  The Manager, its officers, directors, employees, any
      Person controlling or controlled by the Manager and any Person providing
      sub-advisory services to the Manager and the officers, directors and
      employees of the Manager, its officers, directors, employees and any
      such Person will not be liable to the Company or any Subsidiary, to the
      Board of Directors, or the Company’s or any Subsidiary’s stockholders or
      partners for any acts or omissions by any such Person, pursuant to or in
      accordance with this Agreement, except by reason of acts constituting
      bad faith, willful misconduct, gross negligence or reckless disregard of
      the Manager’s duties under this Agreement.  The Company and each
      Subsidiary shall, to the full extent lawful, reimburse, indemnify and
      hold the Manager, its officers, stockholders, directors, employees, any
      Person controlling or controlled by the Manager and any Person providing
      sub-advisory services to the Manager, together with the managers,
      officers, directors and employees of the Manager, its officers, members,
      directors, employees, and any such Person (each a “Manager
      Indemnified Party”), harmless of and from any and all expenses,
      losses, damages, liabilities, demands, charges and claims of any nature
      whatsoever (including attorneys’ fees) in respect of or arising from any
      acts or omissions of such Manager Indemnified Party made in good faith
      in the performance of the Manager’s duties under this Agreement and not
      constituting such Manager Indemnified Party’s bad faith, willful
      misconduct, gross negligence or reckless disregard of the Manager’s
      duties under this Agreement.  
    

    
         (b)  The Manager shall, to the full extent lawful, reimburse,
      indemnify and hold the Company (or any Subsidiary), its stockholders,
      directors, officers and employees and each other Person, if any,
      controlling the Company (each, a “Company Indemnified Party”
      and together with a Manager Indemnified Party, the “Indemnitee”),
      harmless of and from any and all expenses, losses, damages, liabilities,
      demands, charges and claims of any nature whatsoever (including
      attorneys’ fees) in respect of or arising from the Manager’s bad faith,
      willful misconduct, gross negligence or reckless disregard of its duties
      under this Agreement.  
    

    
      
        

        

      

      
        
          17
        

        
          

        

      

      
        

        

      

    

    

    

    
         (c)  The Indemnitee will promptly notify the party against whom
      indemnity is claimed (the “Indemnitor”) of any claim for
      which it seeks indemnification; provided, however, that the failure to
      so notify the Indemnitor will not relieve the Indemnitor from any
      liability which it may have hereunder, except to the extent such failure
      actually prejudices the Indemnitor.  The Indemnitor shall have the right
      to assume the defense and settlement of such claim; provided, that the
      Indemnitor notifies the Indemnitee of its election to assume such
      defense and settlement within thirty (30) days after the Indemnitee
      gives the Indemnitor notice of the claim.  In such case, the Indemnitee
      will not settle or compromise such claim, and the Indemnitor will not be
      liable for any such settlement made without its prior written
      consent.  If the Indemnitor is entitled to, and does, assume such
      defense by delivering the aforementioned notice to the Indemnitee, the
      Indemnitee will (i) have the right to approve the Indemnitor’s counsel
      (which approval will not be unreasonably withheld, delayed or
      conditioned), (ii) be obligated to cooperate in furnishing evidence and
      testimony and in any other manner in which the Indemnitor may reasonably
      request and (iii) be entitled to participate in (but not control) the
      defense of any such action, with its own counsel and at its own expense.
    

    
      SECTION 12.  NO JOINT VENTURE.  Nothing in this
      Agreement shall be construed to make the Company and each Subsidiary and
      the Manager partners or joint venturers or impose any liability as such
      on either of them.  
    

    
      SECTION 13.  TERM; TERMINATION.  
    

    
         (a)  Until this Agreement is terminated in accordance with its terms,
      this Agreement shall be in effect until December 31, 2014 (the “Initial
      Term”) and shall be automatically renewed for a one-year term ending
      each anniversary date thereafter (a “Renewal Term”) unless
      two-thirds of the Independent Directors or the holders of a majority of
      the outstanding shares of common stock elect to terminate the Agreement
      in their sole discretion and for any or no reason, at any time during
      the Term or any Renewal Term.  If an election is made to terminate this
      Agreement as set forth above, the Company shall deliver to the Manager
      prior written notice of the Company’s intention to terminate this
      Agreement not less than one hundred eighty (180) days prior to the date
      designated by the Company on which the Manager shall cease to provide
      services under this Agreement and this Agreement shall terminate on such
      date.  
    

    
         (b)  The Manager may terminate this Agreement by providing prior
      written notice of the Manager’s intention to terminate this Agreement
      not less than one hundred eighty (180) days prior to the date designated
      by the Manager on which the Manager shall cease to provide services
      under this Agreement and this Agreement shall terminate on such date.  
    

    
         (c)  In the event of a Sale of the Manager without the prior written
      consent of the Independent Directors, this Agreement shall terminate
      automatically effective as of the date of such sale.
    

    
         (d)  If this Agreement is terminated pursuant to Section 13, such
      termination shall be without any further liability or obligation of
      either party to the other, except as provided in Sections 6, 9, 10, and
      16 of this Agreement.  In addition, Sections 11 and 21 of this Agreement
      shall survive termination of this Agreement.
    

    
      
        

        

      

      
        
          18
        

        
          

        

      

      
        

        

      

    

    

    

    
      SECTION 14.  ASSIGNMENT.  
    

    
      (a) Except as set forth in Section 14(b) of this Agreement, this
      Agreement shall terminate automatically in the event of its “assignment”
      (as defined under the Investment Advisers Act of 1940), in whole or in
      part, by the Manager, unless such assignment is consented to in writing
      by the Company with the consent of a majority of the Independent
      Directors.  Any such permitted assignment shall bind the assignee under
      this Agreement in the same manner as the Manager is bound, and the
      Manager shall be liable to the Company for all errors or omissions of
      the assignee under any such assignment.  In addition, the assignee shall
      execute and deliver to the Company a counterpart of this Agreement
      naming such assignee as Manager.  This Agreement shall not be assigned
      by the Company without the prior written consent of the Manager, except
      in the case of assignment by the Company to another REIT or other
      organization which is a successor (by merger, consolidation, purchase of
      assets, or similar transaction) to the Company, in which case such
      successor organization shall be bound under this Agreement and by the
      terms of such assignment in the same manner as the Company is bound
      under this Agreement.  
    

    
      (b) Notwithstanding any provision of this Agreement, the Manager may,
      without the written consent of the Company,  (i) assign this Agreement
      to an Affiliate of the Manager that is a successor to the Manager by
      reason of a restructuring or other internal reorganization among the
      Manager and any one or more of its Affiliates without the consent of the
      majority of the Independent Directors and (ii) delegate to one or more
      of its Affiliates the performance of any of its responsibilities so long
      as it remains liable for the Affiliate's performance In addition,
      provided that the Manager provides prior written notice to the Company
      for informational purposes only, nothing contained in this Agreement
      shall preclude any pledge, hypothecation or other transfer of any
      amounts payable to the Manager under this Agreement.  
    

    
      SECTION 15.  TERMINATION FOR CAUSE.  
    

    
         (a)  The Company may terminate this Agreement effective immediately
      upon written notice of termination from the Company to the Manager if
      (i) the Manager, its agents or its assignees have materially breached
      any provision of this Agreement and such breach shall have continued for
      a period of thirty (30) days after written notice thereof specifying
      such breach and requesting that the same be remedied in such 30-day
      period (or forty-five (45) days after written notice of such breach if
      the Manager takes steps to cure such breach within thirty (30) days of
      the written notice), (ii) the Manager engages in any act of fraud,
      misappropriation of funds, or embezzlement against the Company or any
      Subsidiary, (iii) there is an event of any gross negligence on the part
      of the Manager in the performance of its duties under this Agreement,
      (iv) there is a commencement of any proceeding relating to the Manager’s
      Bankruptcy or insolvency, or (v) there is a dissolution of the Manager.
    

    
         (b)  The Manager may terminate this Agreement effective immediately
      upon written notice of termination to the Company in the event that the
      Company shall default in the performance or observance of any material
      term, condition or covenant contained in this Agreement and such default
      shall have continued for a period of thirty (30) days after written
      notice thereof specifying such default and requesting that the same be
      remedied in such 30-day period.  
    

    
         (c)  The Manager may terminate this Agreement in the event the
      Company becomes required to register as an “investment company” under
      the Investment Company Act, with such termination deemed to have
      occurred immediately prior to such event.  
    

    
      SECTION 16.  ACTION UPON TERMINATION.  From and after
      the effective date of termination of this Agreement, pursuant to
      Sections 13 or 15 of this Agreement, the Manager shall not be entitled
      to compensation for further services under this Agreement, but shall be
      paid all compensation accruing to the date of termination.  Upon such
      termination, the Manager shall forthwith:
    

    
      
        

        

      

      
        
          19
        

        
          

        

      

      
        

        

      

    

    

    

    
             (i)  after deducting any accrued compensation and reimbursement
      for its expenses to which it is then entitled, pay over to the Company
      or a Subsidiary all money collected and held for the account of the
      Company or a Subsidiary pursuant to this Agreement;
    

    
            (ii)  deliver to the Board of Directors a full accounting,
      including a statement showing all payments collected by it and a
      statement of all money held by it, covering the period following the
      date of the last accounting furnished to the Board of Directors with
      respect to the Company or a Subsidiary; and
    

    
           (iii)  deliver to the Board of Directors all property and documents
      of the Company or any Subsidiary then in the custody of the Manager.  
    

    
      SECTION 17.  RELEASE OF MONEY OR OTHER PROPERTY UPON
      WRITTEN REQUEST.  The Manager agrees that any money or other
      property of the Company or Subsidiary held by the Manager under this
      Agreement shall be held by the Manager as custodian for the Company or
      Subsidiary, and the Manager’s records shall be appropriately marked
      clearly to reflect the ownership of such money or other property by the
      Company or such Subsidiary.  Upon the receipt by the Manager of a
      written request signed by a duly authorized officer of the Company
      requesting the Manager to release to the Company or any Subsidiary any
      money or other property then held by the Manager for the account of the
      Company or any Subsidiary under this Agreement, the Manager shall
      release such money or other property to the Company or any Subsidiary
      within a reasonable period of time, but in no event later than thirty
      (30) days following such request.  The Manager shall not be liable to
      the Company, any Subsidiary, the Independent Directors, or the Company’s
      or a Subsidiary’s stockholders or partners for any acts performed or
      omissions to act by the Company or any Subsidiary in connection with the
      money or other property released to the Company or any Subsidiary in
      accordance with the second sentence of this Section 17.  The Company and
      any Subsidiary shall indemnify the Manager and its officers, directors,
      employees, managers, officers and employees against any and all
      expenses, losses, damages, liabilities, demands, charges and claims of
      any nature whatsoever, which arise in connection with the Manager’s
      release of such money or other property to the Company or any Subsidiary
      in accordance with the terms of this Section 17.  Indemnification
      pursuant to this provision shall be in addition to any right of the
      Manager to indemnification under Section 11 of this Agreement.  
    

    
      SECTION 18.  REPRESENTATIONS AND WARRANTIES.
    

    
         (a)  The Company hereby represents and warrants to the Manager as
      follows:
    

    
             (i)  The Company is duly organized, validly existing and in good
      standing under the laws of the State of Maryland, has the corporate
      power and authority and the legal right to own and operate its assets,
      to lease any property it may operate as lessee and to conduct the
      business in which it is now engaged and is duly qualified as a foreign
      corporation and in good standing under the laws of each jurisdiction
      where its ownership or lease of property or the conduct of its business
      requires such qualification, except for failures to be so qualified,
      authorized or licensed that could not in the aggregate have a material
      adverse effect on the business operations, assets or financial condition
      of the Company.
    

    
            (ii)  The Company has the corporate power and authority and the
      legal right to make, deliver and perform this Agreement and all
      obligations required hereunder and has taken all necessary corporate
      action to authorize this Agreement on the terms and conditions hereof
      and the execution, delivery and performance of this Agreement and all
      obligations required hereunder. No consent of any other Person,
      including stockholders and creditors of the Company, and no license,
      permit, approval or authorization of, exemption by, notice or report to,
      or registration, filing or declaration with, any governmental authority
      is required by the Company in connection with this Agreement or the
      execution, delivery, performance, validity or enforceability of this
      Agreement and all obligations required hereunder. This Agreement has
      been, and each instrument or document required hereunder will be,
      executed and delivered by a duly authorized officer of the Company, and
      this Agreement constitutes, and each instrument or document required
      hereunder when executed and delivered hereunder will constitute, the
      legally valid and binding obligation of the Company enforceable against
      the Company in accordance with its terms.
    

    
      
        

        

      

      
        
          20
        

        
          

        

      

      
        

        

      

    

    

    

    
           (iii)  The execution, delivery and performance of this Agreement
      and the documents or instruments required hereunder will not violate any
      provision of any existing law or regulation binding on the Company, or
      any order, judgment, award or decree of any court, arbitrator or
      governmental authority binding on the Company, or the Governing
      Instruments of, or any securities issued by the Company or of any
      mortgage, indenture, lease, contract or other agreement, instrument or
      undertaking to which the Company is a party or by which the Company or
      any of its assets may be bound, the violation of which would have a
      material adverse effect on the business operations, assets or financial
      condition of the Company and its Subsidiaries, if any, taken as a whole,
      and will not result in, or require, the creation or imposition of any
      lien or any of its property, assets or revenues pursuant to the
      provisions of any such mortgage, indenture, lease, contract or other
      agreement, instrument or undertaking.
    

    
         (b)  The Manager hereby represents and warrants to the Company as
      follows:
    

    
             (i)  The Manager is duly organized, validly existing and in good
      standing under the laws of the State of Delaware, has the corporate
      power and authority and the legal right to own and operate its assets,
      to lease the property it operates as lessee and to conduct the business
      in which it is now engaged and is duly qualified as a foreign
      corporation and in good standing under the laws of each jurisdiction
      where its ownership or lease of property or the conduct of its business
      requires such qualification, except for failures to be so qualified,
      authorized or licensed that could not in the aggregate have a material
      adverse effect on the business operations, assets or financial condition
      of the Manager.
    

    
            (ii)  The Manager has the corporate power and authority and the
      legal right to make, deliver and perform this Agreement and all
      obligations required hereunder and has taken all necessary corporate
      action to authorize this Agreement on the terms and conditions hereof
      and the execution, delivery and performance of this Agreement and all
      obligations required hereunder. No consent of any other Person,
      including members and creditors of the Manager, and no license, permit,
      approval or authorization of, exemption by, notice or report to, or
      registration, filing or declaration with, any governmental authority is
      required by the Manager in connection with this Agreement or the
      execution, delivery, performance, validity or enforceability of this
      Agreement and all obligations required hereunder. This Agreement has
      been, and each instrument or document required hereunder will be,
      executed and delivered by a duly authorized officer of the Manager, and
      this Agreement constitutes, and each instrument or document required
      hereunder when executed and delivered hereunder will constitute, the
      legally valid and binding obligation of the Manager enforceable against
      the Manager in accordance with its terms.
    

    
           (iii)  The execution, delivery and performance of this Agreement
      and the documents or instruments required hereunder will not violate any
      provision of any existing law or regulation binding on the Manager, or
      any order, judgment, award or decree of any court, arbitrator or
      governmental authority binding on the Manager, or the Governing
      Instruments of, or any securities issued by the Manager or of any
      mortgage, indenture, lease, contract or other agreement, instrument or
      undertaking to which the Manager is a party or by which the Manager or
      any of its assets may be bound, the violation of which would have a
      material adverse effect on the business operations, assets or financial
      condition of the Manager, and will not result in, or require, the
      creation or imposition of any lien or any of its property, assets or
      revenues pursuant to the provisions of any such mortgage, indenture,
      lease, contract or other agreement, instrument or undertaking.
    

    
      
        

        

      

      
        
          21
        

        
          

        

      

      
        

        

      

    

    

    

    
      SECTION 19.  NOTICES.  Unless expressly provided
      otherwise in this Agreement, all notices, requests, demands and other
      communications required or permitted under this Agreement shall be in
      writing and shall be deemed to have been duly given, made and received
      when delivered against receipt or upon actual receipt of (i) personal
      delivery, (ii) delivery by reputable overnight courier, (iii) delivery
      by facsimile transmission with telephonic confirmation or (iv) delivery
      by registered or certified mail, postage prepaid, return receipt
      requested, addressed as set forth below:
    

    	
           
        	
          (a)
        	
           
        	
          If to the Company:
        
	

        	

        	

        	
           
        
	

        	

        	

        	
          Annaly Capital Management, Inc.
        
	

        	

        	

        	
          1211 Avenue of the Americas
        
	

        	

        	

        	
          Suite 2902
        
	

        	

        	

        	
          New York, New York 10036
        
	

        	

        	

        	
          Attention: R. Nicholas Singh, Esq.
        
	

        	

        	

        	
           
        
	

        	
          (b)
        	

        	
          If to the Manager:
        
	

        	

        	

        	
           
        
	

        	

        	

        	
          Annaly Management Company LLC
        
	

        	

        	

        	
          1211 Avenue of the Americas
        
	

        	

        	

        	
          Suite 2902
        
	

        	

        	

        	
          New York, New York 10036
        
	

        	

        	

        	
          Attention: Wellington J. Denahan
        

    

    
      Either party may alter the address to which communications or copies are
      to be sent by giving notice of such change of address in conformity with
      the provisions of this Section 19 for the giving of notice.  
    

    
      SECTION 20.  BINDING NATURE OF AGREEMENT; SUCCESSORS AND
      ASSIGNS.  This Agreement shall be binding upon and inure to the
      benefit of the parties hereto and their respective heirs, personal
      representatives, successors and permitted assigns as provided in this
      Agreement.  
    

    
      SECTION 21.  ENTIRE AGREEMENT.  This Agreement contains
      the entire agreement and understanding among the parties hereto with
      respect to the subject matter of this Agreement, and supersedes all
      prior and contemporaneous agreements, understandings, inducements and
      conditions, express or implied, oral or written, of any nature
      whatsoever with respect to the subject matter of this Agreement.  The
      express terms of this Agreement control and supersede any course of
      performance and/or usage of the trade inconsistent with any of the terms
      of this Agreement.  
    

    
      SECTION 22.  AMENDMENTS.  This Agreement may not be
      modified or amended other than by an agreement in writing signed by the
      parties hereto.  
    

    
      
        

        

      

      
        
          22
        

        
          

        

      

      
        

        

      

    

    

    

    
      SECTION 23.  GOVERNING LAW.  THIS AGREEMENT AND THE
      RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE
      GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW
      OF THE STATE OF NEW YORK  WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES
      TO THE CONTRARY (BUT WITH REFERENCE TO SECTION 5-1401 OF THE NEW YORK
      GENERAL OBLIGATION LAW, WHICH BY ITS TERMS APPLIES TO THIS AGREEMENT).
    

    
      SECTION 24.  NO WAIVER; CUMULATIVE REMEDIES.  No
      failure to exercise and no delay in exercising, on the part of any party
      hereto, any right, remedy, power or privilege hereunder shall operate as
      a waiver thereof; nor shall any single or partial exercise of any right,
      remedy, power or privilege hereunder preclude any other or further
      exercise thereof or the exercise of any other right, remedy, power or
      privilege.  The rights, remedies, powers and privileges herein provided
      are cumulative and not exclusive of any rights, remedies, powers and
      privileges provided by law.  No waiver of any provision hereto shall be
      effective unless it is in writing and is signed by the party asserted to
      have granted such waiver.  
    

    
      SECTION 25.  HEADINGS.  The headings of the sections of
      this Agreement have been inserted for convenience of reference only and
      shall not be deemed part of this Agreement.  
    

    
      SECTION 26.  COUNTERPARTS.  This Agreement may be
      executed in any number of counterparts, each of which shall be deemed to
      be an original as against any party whose signature appears thereon, and
      all of which shall together constitute one and the same
      instrument.  This Agreement shall become binding when one or more
      counterparts of this Agreement, individually or taken together, shall
      bear the signatures of all of the parties reflected hereon as the
      signatories.  
    

    
      SECTION 27.  SEVERABILITY.  Any provision of this
      Agreement that is prohibited or unenforceable in any jurisdiction shall,
      as to such jurisdiction, be ineffective to the extent of such
      prohibition or unenforceability without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall not invalidate or render unenforceable such provision
      in any other jurisdiction.
    

    
      SECTION 28.  GENDER.  Words used herein regardless of
      the number and gender specifically used, shall be deemed and construed
      to include any other number, singular or plural, and any other gender,
      masculine, feminine or neuter, as the context requires.
    

    
      SECTION 29.  JOINDER.  Each Subsidiary of the Company
      will become a party to this Agreement by executing a Joinder Agreement
      substantially in the form attached hereto as Exhibit B.
    

    
      [SIGNATURE PAGE FOLLOWS]
    

    

    

    
      
        

        

      

      
        
          23
        

        
          

        

      

      
        

        

      

    

    

    

    
      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
      of the date first written above.

    

    	
           
        	
          ANNALY CAPITAL MANAGEMENT, INC.
        	

        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ E. Wayne Nordberg
          

        	

        
	

        	
          
            Name:
          

        	
          
            E. Wayne Nordberg
          

        	

        
	

        	
          
            Title:
          

        	
          
            Independent DIrector
          

        	

        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	

        	
          ANNALY MANAGEMENT COMPANY LLC
        	

        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	

        	
          
            By:
          

        	
          
            /s/ Wellington J. Denahan
          

        	

        
	

        	
          
            Name:
          

        	
          
            Wellington J. Denahan
          

        	

        
	

        	
          
            Title:
          

        	
          
            Member
          

        	

        

    

    
      
        

        

      

      
        
          24
        

        
          

        

      

      
        

        

      

    

    

    

    
      EXHIBIT A

    

    
      GUIDELINES

    

    	
                 No investment shall be made that would cause the Company to
        fail to qualify as a REIT for federal income tax purposes;
      

    	
                 No investment shall be made that would cause the Company to
        be required to register as an investment company under the Investment
        Company Act;
      

    	
                 Any assets the Company purchases will be in the targeted
        assets of the Company (as determined from time to time by the Board of
        Directors); and
      

    	
                 Until appropriate assets can be identified, the Manager may
        deploy the proceeds of any offerings of capital stock of the Company
        or other cash of the Company in interest-bearing, short-term
        investments, including money market accounts and/or funds that are
        consistent with the Company’s intention to qualify as a REIT.
      

    
      
        

        

      

      
        
          A-1
        

        
          

        

      

      
        

        

      

    

    

    

    
      EXHIBIT B

FORM OF JOINDER AGREEMENT

    

    
       Reference is hereby made to the MANAGEMENT AGREEMENT made as of
                  , 2013 (the “Agreement”)
      by and among Annaly Management Company LLC, a Delaware limited liability
      company (together with its permitted assignees, the “Manager”),
      ANNALY CAPITAL MANAGEMENT, INC., a Maryland corporation (the “Company”),
      and each Subsidiary (as defined therein) of the Company that becomes a
      party to the Agreement pursuant to Section 29, and shall become
      effective and binding on the Manager and the Company as of July 1, 2013
      (the “Effective Date”).  
    

    
      Pursuant to and in accordance with Section 29 of the Agreement, the
      undersigned hereby agrees that upon the execution of this Joinder
      Agreement, it shall become a party to the Agreement and shall be fully
      bound by, and subject to, all of the covenants, terms and conditions of
      the Agreement as though an original party thereto and shall be deemed to
      be a Subsidiary of the Company for all purposes thereof.
    

    
       Capitalized terms used herein without definition shall have the
      meanings ascribed thereto in the Agreement.
    

    	
           
        	
          
            By:
          

        	
           
        	

        
	

        	
          
            Name:
          

        	
           
        	

        
	

        	
          
            Title:
          

        	

        	

        

    

    
      B-1Exhibit 10.2
    

    
      ANNALY CAPITAL MANAGEMENT, INC.

    

    
      TERMINATION AGREEMENT
    

    
                          WHEREAS,
      the undersigned Executive is employed by Annaly Capital Management, Inc.
      (“Company”); and
    

    
                          WHEREAS,
      the Executive is signatory and subject to an Employment Agreement
      (“Agreement”); and
    

    
                          WHEREAS,
      on May 23, 2013, the stockholders of the Company approved the entry into
      a management agreement with Annaly Management Company LLC (the
      “Manager”) under which the Manager will take responsibility for the
      management of Annaly effective July 1, 2013 (the “Effective Date”); and
    

    
                          WHEREAS,
      Executive has been offered employment with the Manager;
    

    
                          NOW,
      THEREFORE, the Executive and the Company, intending to be legally
      bound, hereby agree as follows:
    

    
      1.        That the Agreement is terminated, as of the Effective Date,
      and shall be of no force or effect thereafter.
    

    
      2.        That the termination of the Agreement does not entitle the
      Executive to the acceleration of any benefits or termination payments,
      including, but not limited to, those set forth in Section 8 of the
      Agreement; provided, however, that the Company acknowledges that if the
      Executive is terminated in the future by the Manager, such Executive
      shall be entitled to similar accelerated benefits pursuant to the
      Executive’s then existing employment agreement with the Manager.
    

    
      3.        That the offer to the Executive of employment with the Manager
      is good and valuable consideration, the sufficiency of which is hereby
      acknowledged by Executive, for the promises and agreements made by
      Executive herein.
    

    	

        	

        	
           
        	

        	

        	

        
	
          
            /s/Wellington J. Denahan
          

        	

        	
          Date:
        	
          
            6/14/2013
          

        	

        
	
          
            Name: Wellington J. Denahan
          

        	
          
             
          

        	

        	

        	

        
	

        	

        	

        	

        	

        	
           
        
	
          ANNALY CAPITAL MANAGEMENT, INC.
        	

        	

        	

        	

        
	

        	

        	

        	

        	

        	
           
        
	

        	

        	

        	

        	

        	
           
        
	
          
            By:
          

        	
          
            /s/Kevin G. Keyes
          

        	
          
             
          

        	
          Date:
        	
          
            6/25/2013
          

        	

        
	

        	
          
            Kevin G. Keyes, President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00218-of-00352.parquet"}]]