Document:

Exhibit
      10.2

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    REGISTRATION
      RIGHTS AGREEMENT, dated as of January 18, 2008 (this “Agreement”),
      between NEW YORK MORTGAGE TRUST, INC., a Maryland corporation (the “Company”),
      and
      each of JMP Group Inc., JMP Realty Trust, Inc., Harvest Opportunity Partners
      II,
      L.P., Harvest Opportunity Partners Offshore Fund, Ltd., Harvest Small Cap
      Partners, L.P. and Harvest Small Cap Offshore, Ltd. (collectively, the
“Investors”).
      

     

    WHEREAS,
      the Investors have acquired on the date hereof an aggregate of 1,000,000 shares
      of Series A Cumulative Redeemable Convertible preferred stock of the Company
      (“Series A Preferred Stock”) pursuant to the terms of a Stock Purchase Agreement
      dated as of November 30, 2007 between the Company and each of the Investors,
      as
      amended by Amendment No. 1 to Stock Purchase Agreement dated January 3, 2008,
      as
      amended by Amendment No. 2 to Stock Purchase Agreement dated January 4, 2008,
      as
      amended by Amendment No. 3 to Stock Purchase Agreement dated January 16, 2008,
      as amended by Amendment No. 4 to Stock Purchase Agreement dated January 17,
      2008, as amended by Amendment No. 5 to Stock Purchase Agreement dated January
      18, 2008 (collectively, the “Purchase
      Agreement”);
      and

     

    WHEREAS,
      pursuant to the Purchase Agreement, the Company has agreed to grant certain
      registration rights, subject to the terms and conditions set forth in this
      Agreement, with respect to shares of common stock, $0.01 par value per share,
      of
      the Company (“Common Stock”), that may be issued to the Investors upon
      conversion of the Series A Preferred Stock pursuant to the Articles
      Supplementary of the Company establishing and fixing the rights and preferences
      of the Series A Preferred Stock, as filed with the Department of Assessment
      and
      Taxation of the State of Maryland (“Articles Supplementary”);

     

    WHEREAS,
      the Company and the Investors wish to set forth their agreement with respect
      to
      certain rights and obligations regarding the registration of shares of the
      Common Stock. 

     

    In
      consideration of the foregoing and of the mutual agreements contained herein
      and
      in the Purchase Agreement, the Company and the Investors hereby agree as
      follows:

     

    
      	
              1.

            	
              DEFINITIONS.
                

            

    

     

    As
      used
      in this Agreement, the following capitalized defined terms shall have the
      following meanings:

     

    “Affiliate”
means,
      with respect to any Person, (i) each Person that, directly or indirectly,
      owns or controls, whether beneficially or as a trustee, guardian or other
      fiduciary, 25% or more of the capital stock having ordinary voting power in
      the
      election of directors of such Person, (ii) each Person that controls, is
      controlled by or is under common control with such Person or any Affiliate
      of
      such Person, or (iii) each of such Person’s executive officers and
      directors. For the purpose of this definition, “control” of a Person shall mean
      the possession, directly or indirectly, of the power to direct or cause the
      direction of its management or policies, whether through the ownership of voting
      securities, by contract or otherwise. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

    

    “Articles
      Supplementary”
shall
      have the meaning set forth in the recitals.

     

    “Board
      of Directors”
means
      the board of directors of the Company from time to time. 

     

    “Commission”
means
      the United States Securities and Exchange Commission. 

     

    “Common
      Stock”
has
      the
      meaning specified in the recitals to this Agreement. 

     

    “Company”
has
      the
meaning
      specified in the recitals to this Agreement. 

     

    “Controlling
      Person”
has
      the
      meaning specified in Section 7(a).

     

    “End
      of
      Suspension Notice”
has
      the
      meaning specified in Section 6(b).

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      of the Commission promulgated thereunder. 

     

    “Fully
      Diluted Basis”
means
      at any date as of which the number of shares of Common Stock is to be
      determined, on a basis including all shares of Common Stock outstanding at
      such
      date and the maximum shares of Common Stock issuable in respect of Common Stock
      Equivalents (giving effect to the then current respective conversion prices)
      and
      other rights to purchase (directly or indirectly) shares of Common Stock or
      Common Stock Equivalents, outstanding on such date, to the extent such rights
      to
      convert, exchange or exercise thereunder are presently exercisable. For purposes
      of this definition, “Common Stock Equivalents” means any security or obligation
      which is by its terms convertible into shares of Common Stock and any option,
      warrant or other subscription or purchase right with respect to Common
      Stock.

     

    “Holder”
shall
      mean each owner of any Registrable Shares from time to time.

     

    “Indemnified
      Party”
has
      the
      meaning specified in Section 7(c).

     

    “Indemnifying
      Party”
has
      the
      meaning specified in Section 7(c).

     

    “Liabilities”
has
      the
      meaning specified in Section 7(a).

     

    “Material
      Adverse Change” or “Material Adverse Effect”
      shall
      mean any event, circumstance, change or effect that would reasonably be likely,
      individually or in the aggregate, to have a material adverse effect on the
      assets, business, operations, earnings, properties or condition (financial
      or
      otherwise), of the Company and its subsidiaries taken as a whole; provided,
      however, that none of the following shall be deemed to constitute or shall
      be
      taken into account in determining whether there has been a Material Adverse
      Effect: any event, circumstance, change or effect arising out of or attributable
      to (a) changes in the economy or financial markets, including, prevailing
      interest rates and market conditions, generally in the United States or that
      are
      the result of acts of war or terrorism, or (b) changes that are caused by
      factors generally affecting the industry in which the Company and its
      subsidiaries operate. 

     

    
      
        
        

      

      
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    “Person”
means
      any individual, corporation, partnership, joint venture, association, joint
      stock company, trust, fund, unincorporated association or organization or
      government or other agency or political subdivision thereof. 

     

    “Piggyback
      Registrations”
has
      the
      meaning specified in Section 2.2(a).

     

    “Purchase
      Agreement”
has
      the
      meaning specified in the recitals. 

     

    “Purchaser
      Indemnitee”
has
      the
      meaning specified in Section 7(a).

     

    “Registrable
      Securities”
means
      (i) any Common Stock that may be issued upon conversion of the Series A
      Preferred Stock pursuant to the Articles Supplementary, (ii) the Series A
      Preferred Stock and (iii) any shares or other securities issued in respect
      of
      such Registrable Securities by reason of or in connection with any stock
      dividend, stock distribution, stock split, purchase in any rights offering
      or in
      connection with any exchange for or replacement of such Registrable Securities
      or any combination of shares, recapitalization, merger or consolidation, or
      any
      other equity securities issued pursuant to any other pro rata distribution
      with
      respect to the Registrable Securities. Any Registrable Security will cease
      to be
      a Registrable Security when: (a) a registration statement covering such
      Registrable Security has been declared effective by the Commission and the
      Registrable Security has been disposed of pursuant to such effective
      registration statement, (b) the Registrable Security is sold under circumstances
      in which all of the applicable conditions of Rule 144 (or any similar provisions
      then in force) under the Securities Act are met or (c) the Registrable Security
      has been otherwise transferred, the Company has delivered a new certificate
      or
      other evidence of ownership for the Registrable Security not bearing a legend
      restricting further transfer, and the Registrable Security may be resold without
      subsequent registration under the Securities Act. 

     

    “Registration
      Expenses”
means
      all expenses incident to the Company’s performance of or compliance with this
      Agreement, including without limitation all Commission and stock exchange or
      NASDAQ Stock Market registration and filing fees and expenses, fees and expenses
      of compliance with securities or blue sky laws (including without limitation
      reasonable fees and disbursements of one counsel for all underwriters or holders
      as a group in connection with blue sky qualifications of the Registrable
      Securities), rating agency fees, printing expenses, messenger, telephone and
      delivery expenses, the fees and expenses incurred in connection with the listing
      of the securities to be registered on each securities exchange or national
      market system on which similar securities issued by the Company are then listed,
      fees and disbursements of counsel for the Company and all independent certified
      public accountants (including the expenses of any annual audit, special audit
      and “cold comfort” letters required by or incident to such performance and
      compliance), securities laws liability insurance (if the Company so desires),
      the fees and expenses of any “qualified independent underwriter” that is
      required to be retained by any holder of Registrable Securities pursuant to
      the
      rules and regulations of the Financial Industry Regulatory Authority (“FINRA”)
      customarily paid by issuers or sellers of securities (but not including any
      underwriting discounts or commissions attributable to the sale of Registrable
      Securities by the sellers of Registrable Securities) and the reasonable fees
      of
      counsel selected pursuant to Section 6 hereof by the Holders in connection
      with each such registration. 

     

    
      
        
        

      

      
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    “Registration
      Statement”
means
      a
      registration statement of the Company that covers the resale of Registrable
      Shares pursuant to the provisions of this Agreement, including any prospectus
      included in such registration statement, amendments and supplements to such
      registration statement or prospectus, including pre- and post-effective
amendments, all exhibits thereto and all material incorporated by reference
      or
      deemed to be incorporated by reference, if any, in such registration
      statement.

     

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

     

    “Series A
      Preferred Stock”
has
      the
      meaning specified in the recitals. 

     

    “Shelf
      Registration Statement”
has
      the
      meaning specified in Section 2.1(a).

     

    “Suspension
      Event”
has
      the
      meaning specified in Section 6(b).

     

    “Suspension
      Notice”
has
      the
      meaning specified in Section 6(b).

     

    “Underwritten
      Offering”
means
      a
      sale of securities of the Company to an underwriter or underwriters for
      reoffering to the public.

     

    
      	
              2.

            	
              REGISTRATION
                RIGHTS. 

            

    

     

    2.1 MANDATORY
      REGISTRATION RIGHTS.
      

     

    (a) As
      set
      forth in Section 4 hereof, the Company agrees to file with the Commission
      on or before June 30, 2008 a shelf Registration Statement on Form S-11 or such
      other form under the Securities Act then available to the Company providing
      for
      the resale of any Registrable Securities pursuant to Rule 415 from time to
      time
      by the Holders (a “Shelf
      Registration Statement”).
      The
      Company shall use its commercially reasonable best efforts to cause such Shelf
      Registration Statement to be declared effective by the Commission as soon as
      practicable thereafter, and, for this purpose, the Company shall be entitled
      to
      consider the advice of the managing underwriter(s) of a public offering of
      the
      Common Stock which is then pending as to the effect that the effectiveness
      of
      the Shelf Registration Statement could reasonably be expected to have on the
      marketing of the public offering. Any Shelf Registration Statement shall provide
      for the resale from time to time, and pursuant to any method or combination
      of
      methods legally available (including, without limitation, an Underwritten
      Offering, a direct sale to purchasers or a sale through brokers or agents,
      which
      may include sales over the internet) by the Holders of any and all Registrable
      Securities.

     

    (b) PRIORITY
      ON SHELF REGISTRATION STATEMENT.
      The
      Company will not include in any Shelf Registration Statement any securities
      that
      are not Registrable Securities without the prior written consent of the Holders.
      If the managing underwriters of a Shelf Registration Statement advise the
      Company in writing that in their opinion the number of Registrable Securities
      and, if permitted hereunder, other securities requested to be included in such
      offering exceeds the number of Registrable Securities and other securities,
      if
      any, which can be sold therein without adversely affecting the marketability
      of
      the offering, the Company will include in such registration, (i) first, the
      Registrable; and (ii) second, other securities, if any, requested to be
      included in such registration, pro rata among the holders of such other
      securities, on the basis of the number of shares of other securities owned
      by
      each such holder and requested to be included therein. 

     

    
      
        
        

      

      
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    (c) SELECTION
      OF UNDERWRITERS.
      Subject
      to an engagement agreement to which the Company is a party, the Company shall
      have the right to select the investment banker or bankers, underwriters and
      managers to administer any Underwritten Offering under a Shelf Registration
      Statement; PROVIDED, HOWEVER, that such investment banker or bankers,
      underwriters and managers shall be reasonably satisfactory to the Holders.
      All
      Holders proposing to distribute their Registrable Securities through such
      Underwritten Offering shall enter into an underwriting agreement in customary
      form with the managing underwriters selected for such underwriting and furnish
      to the Company such information in writing as the Company may reasonably request
      for inclusion in the Shelf Registration Statement; PROVIDED,
      HOWEVER,
      that no
      Holder shall be required to make any representations or warranties to or
      agreements with the Company or the managing underwriters other than
      representations, warranties or agreements as are customary and reasonably
      requested by the managing underwriters. If any Holder disapproves of the terms
      of such Underwritten Offering, such Holder may elect to withdraw therefrom
      by
      written notice to the Company and the managing underwriter delivered at least
      ten (10) business days prior to the effective date of the Shelf Registration
      Statement. Any Registrable Securities excluded or withdrawn from such
      Underwritten Offering shall be excluded and withdrawn from the Shelf
      Registration Statement.

     

    2.2 RIGHT
      TO PIGGYBACK REGISTRATION.
      

     

    (a) If
      at any
      time following the date of this Agreement and prior to the registration of
      Registrable Securities pursuant to Section 2(a), the Company proposes for any
      reason to register any shares of Common Stock under the Securities Act (other
      than pursuant to a registration statement on Form S-4 or Form S-8 (or a similar
      or successor form)) with respect to an offering of Common Stock by the Company
      for its own account or for the account of any of its stockholders, it shall
      at
      each such time promptly give written notice to the Holders of its intention
      to
      do so (but in no event less than 30 days before the anticipated filing date)
      and
      include in such registration all Registrable Securities with respect to which
      the Company has received written requests for inclusion therein within 15 days
      after receipt of the Company’s notice (a “Piggyback
      Registration”).
      Such
      notice shall offer the Holders the opportunity to register such number of shares
      of Registrable Securities as each Holder my request and shall indicate the
      intended method of distribution of such Registrable Securities.

     

    (b) The
      Company shall use its commercially reasonable best efforts to cause the managing
      underwriter or underwriters of a proposed Underwritten Offering to permit the
      shares of Registrable Securities requested to be included in the Registration
      Statement for such offering to be included (on the same terms and conditions
      as
      the Common Stock of the Company included therein to the extent appropriate).
      Notwithstanding the foregoing, if in the reasonable judgment of the managing
      underwriter or underwriters due to the size of the offering which the Company
      or
      such other persons or entities intends to make, the success of the offering
      would be adversely affected by inclusion of the Registrable Securities requested
      to be included, then, if the offering is by the Company for its own account
      or
      is an offering by other holders registering shares of Common Stock of the
      Company pursuant to demand registration rights, then the number of shares of
      Common Stock to be offered for the accounts of Holders and other holders
      registering shares of Common Stock of the Company pursuant to similar piggyback
      registration rights shall be reduced pro rata based on the relative percentage
      ownership of all shares of Common Stock then outstanding owned by the Holders
      and such other holders to the extent necessary to reduce the total number of
      shares of Common Stock to be included in such offering to the amount recommended
      by such managing underwriter or underwriters.

     

    
      
        
        

      

      
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    (c) In
      all
      Piggyback Registrations, the Company will pay the registration expenses of
      the
      Holders, and each Holder shall pay all underwriting discounts or commissions,
      fees of counsel to the Holders or transfer taxes, if any, relating to the sale
      or disposition of Registrable Securities pursuant to a Piggyback
      Registration.

     

    
      	
              3.

            	
              HOLDBACK
                AGREEMENTS. 

            

    

     

    (a) The
      Holders agree not to effect any public sale or distribution (including sales
      pursuant to Rule 144 under the Securities Act) of equity securities,
      including, without limitation, the Common Stock, of the Company, or any
      securities convertible into or exchangeable or exercisable for such securities,
      during the seven days prior to and the 90-day period beginning on the effective
      date of any Shelf Registration Statement or Piggyback Registration for a public
      offering to be underwritten on a firm commitment basis (except as part of such
      underwritten registration), unless the investment bankers or underwriters
      managing the public offering otherwise agree. 

     

    (b) The
      Company agrees to use its commercially reasonable best efforts to cause each
      of
      its directors and executive officers and each holder of at least 5% (on a Fully
      Diluted Basis) of the Company’s equity securities, including, without
      limitation, Common Stock, or any securities convertible into or exchangeable
      or
      exercisable for such securities, purchased from the Company at any time after
      the date of this Agreement (other than in a registered public offering or
      distribution or securities issued pursuant to the Company’s 2005 Stock Inventive
      Plan) to agree not to effect any public sale or distribution (including sales
      pursuant to Rule 144 under the Securities Act) of any such securities
      during such period (except as part of such underwritten registration), unless
      the underwriters managing the public offering or distribution otherwise agree.
      

     

    
      	
              4.

            	
              
                RULE
                  144 AND 144A
                  REPORTING.

              

            

    

     

    With
      a
      view to making available the benefits of certain rules and regulations of the
      Commission that may permit the sale of the Registrable Securities to the public
      without registration, the Company agrees to, so long as any Holder owns any
      Registrable Securities:

     

    
      
        
        

      

      
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    (a) use
      its
      commercially reasonable best efforts to make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144(c) under the Securities Act;

     

    (b) use
      its
      commercially reasonable best efforts to file with the Commission in a timely
      manner all reports and other documents required to be filed by the Company
      under
      the Securities Act and the Exchange Act (at any time after it has become subject
      to such reporting requirements); and

     

    (c) furnish
      to any Holder promptly upon request (i) a written statement by the Company
      that
      it has complied with the reporting requirements of Rule 144 (at any time after
      ninety (90) days after the effective date of the first registration statement
      filed by the Company), the Securities Act and the Exchange Act, or that it
      qualifies as a registrant whose securities may be resold pursuant to Form S-3
      (at any time after it so qualifies), (ii) a copy of the most recent annual
      or
      quarterly report of the Company and such other reports and documents of the
      Company and (iii) such other information as a Holder may reasonably request
      in
      availing itself of any rule or regulation of the Commission allowing a Holder
      to
      sell any such Registrable Securities without registration or pursuant to such
      form.

     

    
      	5.	
              REGISTRATION
                PROCEDURES. 

            

    

     

    Whenever
      the Holders have requested that any Registrable Securities be registered
      pursuant to this Agreement, the Company will use its commercially reasonable
      best efforts to effect the registration and the sale of such Registrable
      Securities in accordance with the intended method of disposition thereof, and
      pursuant thereto the Company will as expeditiously as reasonably
      practicable:

     

    (a) Prepare
      and file with the Commission a Registration Statement with respect to such
      Registrable Securities and use its commercially reasonable best efforts to
      cause
      such Registration Statement to become effective (provided that before filing
      a
      Registration Statement or prospectus or any amendments or supplements thereto,
      the Company will furnish to counsel selected by the Holders copies of all such
      documents proposed to be filed);

     

    (b) Subject
      to Section 7, prepare and file with the Commission such amendments and
      supplements to such Registration Statement and the prospectus used in connection
      therewith as may be necessary to keep such Registration Statement effective
      for
      a period of not less than one year and comply with the provisions of the
      Securities Act with respect to the disposition of all securities covered by
      such
      Registration Statement during such period in accordance with the intended
      methods of disposition by the sellers thereof set forth in such Registration
      Statement;

     

    (c) Furnish
      to the Holders such number of copies of such Registration Statement, each
      amendment and supplement thereto, the prospectus included in such Registration
      Statement (including each preliminary prospectus) and such other documents
      as
      such seller may reasonably request in order to facilitate the disposition of
      the
      Registrable Securities;

     

    
      
        
        

      

      
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    (d) Use
      its
      commercially reasonable best efforts to register or qualify such Registrable
      Securities under such other securities or blue sky laws of such jurisdictions
      of
      the United States of America as the Holders reasonably request and shall
      maintain such qualification in effect so long as required; (provided that the
      Company will not be required to (i) qualify generally to do business in any
      jurisdiction where it would not otherwise be required to qualify but for this
      subsection, (ii) subject itself to taxation in any such jurisdiction or
      (iii) consent to general service of process (i.e.,
      service
      of process which is not limited solely to securities law violations) in any
      such
      jurisdiction);

     

    (e) notify
      each Holder promptly and, if requested by any Holder, confirm such advice in
      writing (i) when a Registration Statement registering the Registrable
      Securities has become effective and when any post-effective amendments and
      supplements thereto become effective, (ii) of the issuance by the
      Commission or any state securities authority of any stop order suspending the
      effectiveness of a Registration Statement or the initiation of any proceedings
      for that purpose, (iii) of any request by the Commission or any other
      federal, state or foreign governmental authority for amendments or supplements
      to a Registration Statement or related prospectus or for additional information,
      and (iv) of the happening of any event during the period a Registration
      Statement is effective as a result of which such Registration Statement covering
      the Registrable Securities or the related prospectus or any document
      incorporated by reference therein contains any untrue statement of a material
      fact or omits to state any material fact required to be stated therein or
      necessary to make the statements therein not misleading (which information
      shall
      be accompanied by an instruction to suspend the use of the prospectus until
      the
      requisite changes have been made);

     

    (f) Use
      its
      commercially reasonable best efforts to cause all such Registrable Securities
      to
      be listed on each securities exchange on which similar securities issued by
      the
      Company are then listed and, if not so listed, to be listed on the NASDAQ Stock
      Market and, if listed on the NASDAQ Stock Market, use its commercially
      reasonable best efforts to secure designation of all such Registrable Securities
      covered by such Registration Statement as a “national market system security”
within the meaning of Rule 11Aa2-1 of the Commission;

     

    (g) Provide
      a
      transfer agent and registrar for all such Registrable Securities not later
      than
      the effective date of such Registration Statement;

     

    (h) Enter
      into such customary agreements (including underwriting agreements in customary
      form) and take all such other reasonable actions as the Holders or the
      underwriters, if any, reasonably request in order to expedite or facilitate
      the
      disposition of such Registrable Securities (including, without limitation,
      effecting a stock split or a combination of shares);

     

    
      
        
        

      

      
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    (i) Use
      its
      commercially reasonable best efforts to make available, subject to any
      confidentiality agreements reasonably requested by the Company, for inspection
      by one representative appointed by the Holders any underwriter participating
      in
      any disposition pursuant to such Registration Statement and any attorney,
      accountant or other agent retained by such representative of the Holders or
      underwriter, all financial and other records, pertinent corporate documents
      and
      properties of the Company, and cause the Company’s officers, directors,
      employees and independent accountants to supply all information reasonably
      requested by any Holder, such underwriter, attorney, accountant or agent in
      connection with such Registration Statement;

     

    (j) Otherwise
      use its commercially reasonable best efforts to comply with all applicable
      rules
      and regulations of the Commission, and, if required, make available to its
      security holders, as soon as reasonably practicable, an earnings statement
      covering the period of at least twelve months beginning with the first day
      of
      the Company’s first full calendar quarter after the effective date of the
      Registration Statement, which earnings statement shall satisfy the provisions
      of
      Section 11(a) of the Securities Act and Rule 158
      thereunder;

     

    (k) use
      its
      commercially reasonable best efforts to avoid the issuance of any stop order
      suspending the effectiveness of a Registration Statement, or of any order
      suspending or preventing the use of any related prospectus or suspending the
      qualification of any equity securities, including, without limitation, the
      Common Stock, included in such Registration Statement for sale in any
      jurisdiction; in the event of the issuance of any stop order suspending the
      effectiveness of a Registration Statement, or of any order suspending or
      preventing the use of any related prospectus or suspending the qualification
      of
      any equity securities, including, without limitation, the Common Stock, included
      in such Registration Statement for sale in any jurisdiction, the Company will
      use its commercially reasonable best efforts promptly to obtain the withdrawal
      of such order; 

     

    (l) Use
      its
      commercially reasonable best efforts to cause such Registrable Securities
      covered by such Registration Statement to be registered with or approved by
      such
      other governmental agencies or authorities as may be reasonably necessary to
      enable the sellers thereof to consummate the disposition of such Registrable
      Securities;

     

    (m) Except
      as
      provided in Section 7, upon the occurrence of any event contemplated by Section
      5(e)(iv) of this Agreement, use its commercially reasonable best efforts to
      promptly prepare a supplement or post-effective amendment to a Registration
      Statement or the related prospectus or any document incorporated therein by
      reference or file any other required document so that, as thereafter delivered
      to the purchasers of the Registrable Securities, such prospectus will not
      contain any untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary to make the statements therein,
      in
      the light of the circumstances under which they were made, not misleading,
      and,
      upon request, promptly furnish to each requesting Holder a reasonable number
      of
      copies each such supplement or post-effective amendment;

     

    (n) if
      requested by the managing underwriter(s), if any, or any Holders of Registrable
      Securities
      (i) as promptly as practicable incorporate in a prospectus supplement or
      post-effective amendment relating to the Registrable Securities
      such
      material information as the managing underwriter(s), if any, or such Holders
      indicate in writing relates to them or that they reasonably request be included
      therein and (ii) use its commercially reasonable best efforts to make all
      required filings of such prospectus supplement or such post-effective amendment
      as soon as practicable after the Company has received written notification
      of
      the matters to be incorporated in such prospectus supplement or post-effective
      amendment;

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    (o) in
      the
      case of an Underwritten Offering, use its commercially reasonable best efforts
      to furnish to each Holder of Registrable Securities covered by such Registration
      Statement and the underwriters a signed counterpart, addressed to each such
      Holder and the underwriters, of: (i) an opinion of counsel for the Company,
      dated the date of each closing under the underwriting agreement, reasonably
      satisfactory to such Holder and the underwriters; and (ii) a “comfort”
letter, dated the effective date of such Registration Statement and the date
      of
      each closing under the underwriting agreement, signed by the independent public
      accountants who have certified the Company's financial statements included
      in
      such Registration Statement, covering substantially the same matters with
      respect to such Registration Statement (and the prospectus included therein)
      and
      with respect to events subsequent to the date of such financial statements,
      as
      are customarily covered in accountants' letters delivered to underwriters in
      underwritten public offerings of securities and such other financial matters
      as
      such Holder and the underwriters may reasonably request; 

     

    (p) provide
      a
      CUSIP number for all Registrable Securities, not later than the effective date
      of the Registration Statement;
      and

     

    (q) if
      requested by any holder of Registrable Securities, obtain a “cold comfort”
letter from the Company’s independent registered public accounting firm in
      customary form and covering such matters of the type customarily covered by
      “cold comfort” letters as the Investors reasonably request.

     

    It
      shall
      be a condition precedent to the obligation of the Company to take any action
      pursuant to this Agreement in respect of the securities which are to be
      registered at the request of the Holders that the Holders shall furnish to
      the
      Company such information regarding the Registrable Securities held by the
      Holders and the intended method of disposition thereof as the Company shall
      reasonably request in connection with such registration. 

     

    
      	
              6.

            	
              REGISTRATION
                EXPENSES. 

            

    

     

    (a) Except
      as
      otherwise expressly provided in this Agreement, all Registration Expenses will
      be borne by the Company. To the extent Registration Expenses are not required
      to
      be paid by the Company pursuant to this Agreement, each holder of securities
      included in any registration or qualification hereunder will pay those
      Registration Expenses allocable to the registration or qualification of such
      holders’ securities so included, and any Registration Expenses not so allocable
      will be borne by all sellers of securities included in such registration in
      proportion to the aggregate selling price of the securities to be so registered
      or qualified.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (b) Except
      as
      otherwise expressly provided in this Agreement, in connection with each Shelf
      Registration Statement and any Piggyback Registration, the Company will
      reimburse the Holders covered by such Registration Statement for the reasonable
      fees and disbursements of one United States legal counsel, which counsel shall
      be selected (i) in the case of a Shelf Registration Statement by the Holders
      holding a majority of the Registrable Securities, and (ii) in all other cases,
      by the Holders of a majority of the Registrable Securities, and in each case
      in
      consultation with the Company. 

     

    
      	
              7.

            	
              BLACK
                OUT PERIOD.

            

    

     

    (a) Subject
      to the provisions of this Section 7, the Company shall have the right, but
      not the obligation, from time to time to suspend the use of the Registration
      Statement, following the effectiveness of a Registration Statement (and the
      filings with any international, federal or state securities commissions), the
      Company, by written notice to the Holders, may direct the Holders to suspend
      sales of the Registrable Shares pursuant to a Registration Statement for such
      times as the Company reasonably may determine is necessary and advisable
      if a majority of the independent members of the Board of Directors of the
      Company shall have determined in good faith, after the advice of counsel, that
      the Company is required by law, rule or regulation, or that it is in the best
      interests of the Company, to (i) supplement the prospectus or (ii) file a
      post-effective amendment to the Registration Statement in the case of (i) or
      (ii) to incorporate information into the Registration Statement for the purpose
      of (1) including in the Registration Statement any prospectus required
      under Section 10(a)(3) of the Securities Act; (2) reflecting in the
      prospectus any facts or events arising after the effective date of the
      Registration Statement (or of the most-recent post-effective amendment) that,
      individually or in the aggregate, represents a fundamental change in the
      information set forth therein; or (3) including in the prospectus any
      material information with respect to the plan of distribution not disclosed
      in
      the Registration Statement or any material change to such information; PROVIDED,
      HOWEVER, that the foregoing provisions (i) and (ii) shall only apply to a Shelf
      Registration Statement filed on Form S-11 under the Securities Act. In no event
      may a suspension in the case of (i) last for more than five (5) business days
      in
      any singular instance and in the case of (i) and (ii) cumulatively last for
      more
      than an aggregate of ninety (90) days in any rolling twelve (12) month period
      commencing on the Closing Date or for more than an aggregate of sixty (60)
      days
      in any rolling ninety (90) day period, except as a result of a refusal by the
      Commission to declare any post-effective amendment to the Registration Statement
      effective after the Company shall have used all commercially reasonable best
      efforts to cause such post-effective amendment to be declared effective, in
      which case the suspension shall be terminated immediately following the
      effective date of the post-effective amendment to the Registration Statement.
      Upon the occurrence of any such suspension, the Company shall use its
      commercially reasonable best efforts to cause the Registration Statement to
      become effective or to promptly amend or supplement the Registration Statement
      on a post-effective basis or to take such action as is necessary to make resumed
      use of the Registration Statement compatible with the Company’s best interests,
      as applicable, so as to permit the Holders to resume sales of the Registrable
      Shares as soon as possible.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    (b) In
      the
      case of an event that causes the Company to suspend the use of a Registration
      Statement (a “Suspension
      Event”),
      the
      Company shall give written notice (a “Suspension
      Notice”)
      to the
      Holders to suspend sales of the Registrable Shares pursuant to the Registration
      Statement and such notice shall state generally the basis for the notice and
      that such suspension shall continue only for so long as the Suspension Event
      or
      its effect is continuing and the Company is using its commercially reasonable
      best efforts and taking all reasonable steps to terminate suspension of the
      use
      of the Registration Statement as promptly as possible. No Holder shall effect
      any sales of the Registrable Shares pursuant to such Registration Statement
      (or
      such filings) at any time after it has received a Suspension Notice from the
      Company and prior to receipt of an End of Suspension Notice (as defined below).
      Each Holder agrees to keep confidential the fact that the Company has issued
      a
      Suspension Notice and the contents thereof. If so directed by the Company,
      each
      Holder will deliver to the Company all copies, other than permanent file copies
      then in such Holder’s possession, of the prospectus covering the Registrable
      Shares at the time of receipt of the Suspension Notice. The Holders may
      recommence effecting sales of the Registrable Shares pursuant to the
      Registration Statement (or such filings) following further notice to such effect
      (an “End
      of
      Suspension Notice”)
      from
      the Company, which End of Suspension Notice shall be given by the Company to
      the
      Holders in the manner described above promptly following the conclusion of
      any
      Suspension Event.

     

    (c) Notwithstanding
      any provision herein to the contrary, if the Company shall give a Suspension
      Notice pursuant to this Section 7, the Company agrees that it shall extend
      the period of time during which the applicable Registration Statement shall
      be
      maintained effective pursuant to this Agreement by the number of days during
      the
      period from the date of receipt by the Holders of the Suspension Notice to
      and
      including the date of receipt by the Holders of the End of Suspension Notice
      and
      copies of the supplemented or amended prospectus necessary to resume
      sales; PROVIDED
      that such period of time shall not be extended beyond the date that securities
      are no longer Registrable Securities.

     

    
      	
              8.

            	
              INDEMNIFICATION
                AND
                CONTRIBUTION.

            

    

     

    (a) The
      Company agrees to indemnify and hold harmless (i) each Holder and any
      underwriter (as determined in the Securities Act) for such Holder,
      (ii) each Person, if any, who controls (within the meaning of
      Section 15 of the Securities Act or Section 20(a) of the Exchange
      Act), any such Person described in clause (i) (any of the Persons referred
      to in
      this clause (ii) being hereinafter referred to as a “Controlling
      Person”),
      and
      (iii) the respective officers, directors, partners, employees,
      representatives and agents of any such Person or any Controlling Person (any
      Person referred to in clause (i), (ii) or (iii) may hereinafter be referred
      to
      as a “Purchaser
      Indemnitee”),
      to
      the fullest extent lawful, from and against any and all losses, claims, damages,
      judgments, actions, out-of-pocket expenses, and other liabilities (the
“Liabilities”),
      including without limitation and as incurred, reimbursement of all reasonable
      costs of investigating, preparing, pursuing or defending any claim or action,
      or
      any investigation or proceeding by any governmental agency or body, commenced
      or
      threatened, including the reasonable fees and expenses of counsel to any
      Purchaser Indemnitee, joint or several, directly or indirectly related to,
      based
      upon, arising out of or in connection with any untrue statement or alleged
      untrue statement of a material fact contained in any Registration Statement
      or
      prospectus included in such Registration Statement (as amended or supplemented
      if the Company shall have furnished to such Purchaser Indemnitee any amendments
      or supplements thereto), or any preliminary prospectus or any other document
      used to sell the Registrable Shares, or any omission or alleged omission to
      state therein a material fact required to be stated therein or necessary to
      make
      the statements therein, in the light of the circumstances under which they
      were
      made, not misleading, except insofar as such Liabilities arise out of or are
      based upon (i) any untrue statement or omission or alleged untrue statement
      or omission made in reliance upon and in conformity with information relating
      to
      any Purchaser Indemnitee furnished to the Company or any underwriter in writing
      by such Purchaser Indemnitee expressly for use therein, or (ii) any untrue
      statement contained in or omission from a preliminary prospectus if a copy
      of
      the prospectus (as then amended or supplemented, if the Company shall have
      furnished to or on behalf of the Holder participating in the distribution
      relating to the relevant Registration Statement any amendments or supplements
      thereto) was not sent or given by or on behalf of such Holder to the Person
      asserting any such Liabilities who purchased Registrable Shares, if such
      prospectus (or prospectus as amended or supplemented) is required by law to
      be
      sent or given at or prior to the written confirmation of the sale of such
      Registrable Shares to such Person and the untrue statement contained in or
      omission from such preliminary prospectus was corrected in the prospectus (or
      the prospectus as amended or supplemented), or (iii) any use of any Registration
      Statement or prospectus included therein during a period when a stop order
      has
      been issued in respect thereof or any action or proceedings for that purpose
      have been initiated, or use of a Registration Statement or a prospectus included
      therein (including any preliminary prospectus) that has been suspended pursuant
      to Sections 5(e)(ii), 5(e)(iii), or 5(e)(iv) of this Agreement; provided that,
      with respect to this subsection (iii), the Holder using such Registration
      Statement or prospectus (including any preliminary Prospectus) received the
      notice required by Section 5(e) hereof in advance of such use. The Company
      shall
      notify the Holders promptly of the institution, threat or assertion of any
      claim, proceeding (including any governmental investigation), or litigation
      of
      which it shall have become aware in connection with the matters addressed by
      this Agreement which involves the Company or a Purchaser Indemnitee. The
      indemnity provided for herein shall remain in full force and effect regardless
      of any investigation made by or on behalf of any Purchaser
      Indemnitee.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

    (b) In
      connection with any Registration Statement in which a Holder of Registrable
      Shares is participating, and as a condition to such participation, such Holder
      agrees, severally and not jointly, to indemnify and hold harmless the Company,
      each Person who signs the Registration Statement, each Person who controls
      the
      Company within the meaning of Section 15 of the Securities Act or
      Section 20(a) of the Exchange Act and the respective partners, directors,
      officers, members, representatives, employees and agents of the Company, such
      Person or Controlling Person to the same extent as the foregoing indemnity
      from
      the Company to each Purchaser Indemnitee, but only with reference to untrue
      statements or omissions or alleged untrue statements or omissions made in
      reliance upon and in strict conformity with information relating to such
      Purchaser Indemnitee furnished to the Company in writing by such Purchaser
      Indemnitee expressly for use in any Registration Statement or related
      prospectus, any amendment or supplement thereto or any related preliminary
      prospectus. The liability of any Purchaser Indemnitee pursuant to this paragraph
      shall in no event exceed the net proceeds received by such Purchaser Indemnitee
      from sales of Registrable Shares giving rise to such obligations.

     

    (c) If
      any
      suit, action, proceeding (including any governmental or regulatory
      investigation), claim or demand shall be brought or asserted against any Person
      in respect of which indemnity may be sought pursuant to paragraph (a) or (b)
      above, such Person (the “Indemnified
      Party”)
      shall
      promptly notify the Person against whom such indemnity may be sought (the
“Indemnifying
      Party”),
      in
      writing, of the commencement thereof (but the failure to so notify an
      Indemnifying Party shall not relieve it from any liability which it may have
      under this Section 8, except to the extent the Indemnifying Party is
      materially prejudiced by the failure to give notice), and the Indemnifying
      Party, upon request of the Indemnified Party, shall retain counsel reasonably
      satisfactory to the Indemnified Party to represent the Indemnified Party and
      any
      others the Indemnifying Party may reasonably designate in such proceeding and
      shall assume the defense of such proceeding and shall pay the reasonable fees
      and expenses actually incurred by such counsel related to such proceeding.
      Notwithstanding the foregoing, in any such proceeding, any Indemnified Party
      shall have the right to retain its own counsel, but the fees and expenses of
      such counsel shall be at the expense of such Indemnified Party, unless
      (i) the Indemnifying Party and the Indemnified Party shall have mutually
      agreed in writing to the contrary, (ii) the Indemnifying Party failed
      within a reasonable time after notice of commencement of the action to assume
      the defense and employ counsel reasonably satisfactory to the Indemnified Party,
      (iii) the Indemnifying Party and its counsel do not actively and vigorously
      pursue the defense of such action or (iv) the named parties to any such
      action (including any impleaded parties), include both such Indemnified Party
      and the Indemnifying Party, or any Affiliate of the Indemnifying Party, and
      such
      Indemnified Party shall have been reasonably advised by counsel that, either
      (x) there may be one or more legal defenses available to it which are
      different from or additional to those available to the Indemnifying Party or
      such Affiliate of the Indemnifying Party or (y) a conflict may exist
      between such Indemnified Party and the Indemnifying Party or such Affiliate
      of
      the Indemnifying Party (in which case the Indemnifying Party shall not have
      the
      right to assume nor direct the defense of such action on behalf of such
      Indemnified Party, it being understood, however, that the Indemnifying Party
      shall not, in connection with any one such action or separate but substantially
      similar or related actions in the same jurisdiction arising out of the same
      general allegations or circumstances, be liable for the fees and expenses of
      more than one separate firm of attorneys (in addition to any local counsel),
      for
      all such Indemnified Parties, which firm shall be designated in writing by
      those
      Indemnified Parties who sold a majority of the Registrable Shares sold by all
      such Indemnified Parties and any such separate firm for the Company, the
      directors, the officers and such control Persons of the Company as shall be
      designated in writing by the Company). The Indemnifying Party shall not be
      liable for any settlement of any proceeding effected without its written
      consent, which consent shall not be unreasonably withheld, but if settled with
      such consent or if there is a final judgment for the plaintiff, the Indemnifying
      Party agrees to indemnify any Indemnified Party from and against any loss or
      liability by reason of such settlement or judgment. No Indemnifying Party shall,
      without the prior written consent of the Indemnified Party, effect any
      settlement of any pending or threatened proceeding in respect of which any
      Indemnified Party is or could have been a party and indemnity could have been
      sought hereunder by such Indemnified Party, unless such settlement includes
      an
      unconditional release of such Indemnified Party from all liability on claims
      that are the subject matter of such proceeding.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

       

    

    (d) If
      the
      indemnification provided for in paragraphs (a) and (b) of this Section 8 is
      for any reason held to be unavailable to an Indemnified Party in respect of
      any
      Liabilities referred to therein (other than by reason of the exceptions provided
      therein) or is insufficient to hold harmless a party indemnified thereunder,
      then each Indemnifying Party under such paragraphs, in lieu of indemnifying
      such
      Indemnified Party thereunder, shall contribute to the amount paid or payable
      by
      such Indemnified Party as a result of such Liabilities (i) in such
      proportion as is appropriate to reflect the relative benefits of the Indemnified
      Party on the one hand and the Indemnifying Party(ies) on the other in connection
      with the statements or omissions that resulted in such Liabilities, or
      (ii) if the allocation provided by clause (i) above is not permitted by
      applicable law, in such proportion as is appropriate to reflect not only the
      relative benefits referred to in clause (i) above but also the relative fault
      of
      the Indemnifying Party(ies) and the Indemnified Party, as well as any other
      relevant equitable considerations. The relative fault of the Company on the
      one
      hand and any Purchaser Indemnitees on the other shall be determined by reference
      to, among other things, whether the untrue or alleged untrue statement of a
      material fact or the omission or alleged omission to state a material fact
      relates to information supplied by the Company or by such Purchaser Indemnitees
      and the parties' relative intent, knowledge, access to information and
      opportunity to correct or prevent such statement or omission.

     

    (e) The
      parties agree that it would not be just and equitable if contribution pursuant
      to this Section 8 were determined by pro
      rata
      allocation (even if such Indemnified Parties were treated as one entity for
      such
      purpose), or by any other method of allocation that does not take account of
      the
      equitable considerations referred to in paragraph 8(d) above. The amount paid
      or
      payable by an Indemnified Party as a result of any Liabilities referred to
      in
      paragraph 8(d) shall be deemed to include, subject to the limitations set forth
      above, any reasonable legal or other expenses actually incurred by such
      Indemnified Party in connection with investigating or defending any such action
      or claim. Notwithstanding the provisions of this Section 8, in no event
      shall a Purchaser Indemnitee be required to contribute any amount in excess
      of
      the amount by which proceeds received by such Purchaser Indemnitee from sales
      of
      Registrable Shares exceeds the amount of any damages that such Purchaser
      Indemnitee has otherwise been required to pay by reason of such untrue or
      alleged untrue statement or omission or alleged omission. For purposes of this
      Section 8, each Person, if any, who controls (within the meaning of
      Section 15 of the Securities Act or Section 20(a) of the Exchange Act)
      a Holder shall have the same rights to contribution as such Holder and each
      Person, if any, who controls (within the meaning of Section 15 of the Act
      or Section 20(a) of the Exchange Act) the Company, and each officer,
      director, partner, employee, representative, agent or manager of the Company
      shall have the same rights to contribution as the Company. Any party entitled
      to
      contribution will, promptly after receipt of notice of commencement of any
      action, suit or proceeding against such party in respect of which a claim for
      contribution may be made against another party or parties, notify each party
      or
      parties from whom contribution may be sought, but the omission to so notify
      such
      party or parties shall not relieve the party or parties from whom contribution
      may be sought from any obligation it or they may have under this Section 8
      or otherwise, except to the extent that any party is materially prejudiced
      by
      the failure to give notice. No Person guilty of fraudulent misrepresentation
      (within the meaning of Section 11(f) of the Securities Act), shall be
      entitled to contribution from any Person who was not guilty of such fraudulent
      misrepresentation.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

    (f) The
      indemnity and contribution agreements contained in this Section 8 will be
      in addition to any liability which the Indemnifying Parties may otherwise have
      to the Indemnified Parties referred to above. The Purchaser Indemnitee's
      obligations to contribute pursuant to this Section 8 are several in
      proportion to the respective number of Registrable Shares sold by each of the
      Purchaser Indemnitees hereunder and not joint.

     

    9.  PARTICIPATION
      IN UNDERWRITTEN REGISTRATIONS. No
      Person
      may participate in any registration hereunder which is underwritten unless
      such
      Person (a) agrees to sell such Person’s securities on the basis provided in
      any underwriting arrangements approved by the Person or Persons entitled
      hereunder to approve such arrangements and (b) completes and executes all
      customary questionnaires, powers of attorney, indemnities, underwriting
      agreements and other documents reasonably required under the terms of such
      underwriting arrangements. 

     

    
      	
              10.

            	
              MISCELLANEOUS.
                

            

    

     

    (a) NOTICES.
      All
      notices or other communication required or permitted hereunder shall be in
      writing and shall be delivered personally, telecopied or sent by certified,
      registered or express mail, postage prepaid. Any such notice shall be deemed
      given when so delivered personally, telecopied or sent by certified, registered
      or express mail or, if mailed, five days after the date of deposit in the United
      States mail, as follows:

     

    If
      to the
      Company:

     

    New
      York
      Mortgage Trust, Inc.

    1301
      Avenue of the Americas, 7th
      Floor

    New
      York,
      New York 10019

    Attention: President

    Fax:
      212-655-6269

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    With
      a
      copy to:

     

    Hunton
      & Williams LLP

    951
      East
      Byrd Street

    Richmond,
      Virginia 23219

    Attention:
      Daniel M. LeBey, Esq.

    Fax:
      804-788-8218

     

    If
      to the
      Investors:

     

    JMP
      Group, Inc.

    600
      Montgomery Street, 11th
      Floor

    San
      Francisco, CA 94108

    Attention:
      Janet Tarkoff

    Fax:
      (415) 263-1336

     

    With
      a
      copy to:

     

    Kirkpatrick
      & Lockhart Preston Gates Ellis LLP

    1601
      K
      Street, N.W.

    Washington,
      DC 20006

    Attention:
      Phillip Kardis, Esq.

    Fax:
      (202) 778-9100

     

    Any
      party
      may by notice given in accordance with this Section 9(a) designate another
      address or person for receipt of notices hereunder. 

     

    (b) AMENDMENT
      AND WAIVER.
      

     

    (i) No
      failure or delay on the part of any party hereto in exercising any right, power
      or remedy hereunder shall operate as a waiver thereof, nor shall any single
      or
      partial exercise of any such right, power or remedy preclude any other or
      further exercise thereof or the exercise of any other right, power or remedy.
      The remedies provided for herein are cumulative and are not exclusive of any
      remedies that may be available to the parties hereto at law, in equity or
      otherwise. 

     

    (ii) Any
      amendment, supplement or modification of or to any provision of this Agreement,
      any waiver of any provision of this Agreement, and any consent to any departure
      by any party from the terms of any provision of this Agreement, shall be
      effective, (a) only if it is made or given in writing and signed by the
      Company and by the holders of at least 66-2/3% of the Registrable Securities
      and
      (b) only in the specific instance and for the specific purpose for which
      made or given. 

     

    (c) SPECIFIC
      PERFORMANCE.
      The
      parties hereto intend that each of the parties have the right to seek damages
      or
      specific performance in the event that any other party hereto fails to perform
      such party’s obligations hereunder. Therefore, if any party shall institute any
      action or proceeding to enforce the provisions hereof, any party against whom
      such action or proceeding is brought hereby waives any claim or defense therein
      that the plaintiff party has an adequate remedy at law. 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

       

    

    (d) HEADINGS.
      The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof. 

     

    (e) SEVERABILITY.
      If any
      one or more of the provisions contained herein, or the application thereof
      in
      any circumstance, is held invalid, illegal or unenforceable in any respect
      for
      any reason, the validity, legality and enforceability of any such provision
      in
      every other respect and of the remaining provisions hereof shall not be in
      any
      way impaired, unless the provisions held invalid, illegal or unenforceable
      shall
      substantially impair the benefits of the remaining provisions hereof.

     

    (f) ENTIRE
      AGREEMENT.
      This
      Agreement is intended by the parties as a final expression of their agreement
      and intended to be a complete and exclusive statement of the agreement and
      understanding of the parties hereto in respect of the subject matter contained
      herein and therein. There are no restrictions, promises, warranties or
      undertakings, other than those set forth or referred to herein or therein.
      This
      Agreement supersedes all prior agreements and understandings between the parties
      with respect to such subject matter. 

     

    (g) TERM
      OF AGREEMENT.
      The
      provisions of this Agreement shall become effective upon the execution hereof
      and shall terminate as provided herein.

     

    (h) VARIATIONS
      IN PRONOUNS.
      All
      pronouns and any variations thereof refer to the masculine, feminine or neuter,
      singular or plural, as the context may require. 

     

    (i) GOVERNING
      LAW.
      THIS
      AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
      STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY
      WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.
      

     

    (j) FURTHER
      ASSURANCES.
      Each of
      the parties shall, and shall cause their respective Affiliates to, execute
      such
      instruments and take such action as may be reasonably required or desirable
      to
      carry out the provisions hereof and the transactions contemplated hereby.

     

    (k) SUCCESSORS
      AND ASSIGNS.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors, heirs, legatees and legal representatives. This
      Agreement is not assignable except in connection with a transfer of Shares
      in
      accordance with this Agreement. 

     

    (l) COUNTERPARTS.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, and all of which taken together shall constitute one and
      the
      same instrument. 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

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

     

    
      	 	 	 
	
              COMPANY:

            	
              NEW
                YORK MORTGAGE TRUST, INC.

            
	 
 	 
 	 
 
	
            	
            	
              /s/
                David Akre    

            
	 	
              

              Name:
                David Akre

            
	 	
              Title:
                Co-Chief Executive Officer

            

    

     

    
      	 	 	 
	
              INVESTORS:

            	
              JMP
                GROUP INC.

            
	 
 	 
 	 
 
	
            	
            	
              /s/
                Joseph A. Jolson    

            
	 	
              

              Name:
                

            
	 	
              Title:
                

            

    

     

    
      	 	 	 
	 	
              JMP
                REALTY TRUST, INC.

            
	 
 	 
 	 
 
	
            	
            	
              /s/
                Jim J. Fowler     

            
	 	
              

              Name:
                Jim J. Fowler

            
	 	
              Title:
                President

            

    

     

    
      	 	 	 
	 	
              HARVEST
                OPPORTUNITY PARTNERS II, L.P.

            
	 
 	 
 	 
 
	
            	
            	
              /s/
                Joseph A. Jolson    

            
	 	
              

              Name:
                

            
	 	
              Title:
                

            

    

     

    
      	 	 	 
	 	
              HARVEST
                OPPORTUNITY PARTNERS OFFSHORE FUND, LTD.

            
	 
 	 
 	 
 
	
            	
            	
              /s/
                Joseph A. Jolson    

            
	 	
              

              Name:
                

            
	 	
              Title:
                

            

    

     

    
      	 	 	 
	 	
              HARVEST
                SMALL CAP PARTNERS, L.P.

            
	 
 	 
 	 
 
	
            	
            	
              /s/
                Jeffrey B. Osher    

            
	 	
              

              Name:
                Jeffrey B. Osher

            
	 	
              Title:
                Portfolio Manager

            

    

     

    
      	 	 	 
	 	
              HARVEST
                SMALL CAP OFFSHORE, LTD.

            
	 
 	 
 	 
 
	
            	
            	
              /s/
                Jeffrey B. Osher    

            
	 	
              

              Name:
                Jeffrey B. Osher

            
	 	
              Title:
                Portfolio Manager

            

    

     

    
      
        
        

      

      
        18Exhibit
      10.3

     

    ADVISORY
      AGREEMENT

     

    THIS
      ADVISORY AGREEMENT is made as of January 18, 2008
      by and
      between NEW YORK MORTGAGE TRUST, INC., a Maryland corporation (the “Company”),
      NEW
      YORK MORTGAGE FUNDING LLC and HYPOTHECA CAPITAL, LLC (each a “Subsidiary” and,
      together with the Company’s other Subsidiaries, as defined in Section 1(u), the
“Subsidiaries”), and JMP ASSET MANAGEMENT LLC, a Delaware limited liability
      company (together with its permitted assignees, the “Advisor”).

     

    WHEREAS,
      the Company is a corporation that has elected to be taxed as a real estate
      investment trust for federal income tax purposes; and

     

    WHEREAS,
      the Company and Subsidiaries desire to retain the Advisor to provide investment
      advisory services to the Subsidiaries on the terms and conditions hereinafter
      set forth, and the Advisor 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 meanings assigned them:

      

    

     

    (a)  “Agreement”
means
      this Advisory Agreement, as amended from time to time.

     

    (b)  “Base
      Advisory Fee”
means
      the base advisory fee, calculated and paid quarterly in arrears, in an amount
      equal to (i) 1/4 of Equity as of the end of the quarter multiplied by (ii)
      1.50%.

     

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

     

    (d)  “Change
      of Control”
means
      the occurrence of any of the following:

     

    (i)   the
      sale,
      lease or transfer, in one or a series of related transactions, of all or
      substantially all of the assets of the Advisor, taken as a whole, to any Person
      other than JMP Group, Inc. or any of their respective affiliates;
      or

     

    (ii)  the
      acquisition by any Person or group (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), other than
      JMP
      Group, Inc. or any of their respective affiliates, 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
      Advisor.

     

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

     

    (f)  “Common
      Share”
means
      a
      share of stock of the Company now or hereafter authorized as voting common
      stock
      of the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (g)  “Core
      Earnings”
is
      a
      non-GAAP measure and is defined as GAAP net income (loss) excluding non-cash
      equity compensation expense and any unrealized gains, losses or other items
      that
      do not affect realized net income (regardless of whether such items are included
      in other comprehensive income or loss, or in net income); provided,
      however,
      that
      Core Earnings and GAAP net income will be adjusted to exclude one-time events
      pursuant to changes in GAAP and certain non-cash charges after discussions
      between the Manager and the Independent Directors and approved by a majority
      of
      the Independent Directors.

     

    (h)  “Equity”
means,
      for purposes of calculating the Base Advisory Fee, for any quarter, the greater
      of (i) the net asset value of the Investments of the Subsidiaries as of the
      end
      of the quarter or (ii) the sum of $20,000,000 plus 50% of the net proceeds
      to
      the Company or its Subsidiaries of any offering of common or preferred stock,
      after deducting underwriting discounts and commissions, placement fees, offering
      expenses and other fees and expenses incurred by the Company or the Subsidiaries
      in connection with the offering, completed during the term of this Agreement.
      

     

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

     

    (j)  “Excluded
      Assets”
means
      all those U.S. Government agency mortgage-backed securities and any other assets
      that, in each case, have been identified by the Company as having been allocated
      to the Subsidiaries in connection with the Company’s compliance with the
      requirements to maintain its exemption from regulation under the Investment
      Company Act of 1940, as amended.

     

    (k)  “Federal
      Reserve Board”
means
      the Board of Governors of the Federal Reserve System.

     

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

     

    (m)  “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.

     

    (n)  “Guidelines”
shall
      have the meaning set forth in Section 2(b)(i).

     

    (o)  “Incentive
      Compensation”
means
      

     

    (A)  for
      each of the first three fiscal quarters of each fiscal year, an amount, not
      less
      than zero, equal to 25% of the product of: (i) the dollar amount by which (a)
      the Core Earnings of the Subsidiaries for the quarter that are attributable
      to
      the Investments, before incentive compensation, divided by the quarterly average
      capital of the Subsidiaries that is invested in Investments, exceeds (b) the
      greater of (x) 2.00% and (y) 0.50% plus one-fourth of the Ten Year Treasury
      Rate
      for such quarter, and (ii) the average capital of the Subsidiaries invested
      in
      Investments during such quarter; and

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (B)  for
      the fourth fiscal quarter of each fiscal year, an amount, not less
      than zero, equal to the difference between (1) 25% of the product of: (i)
      the dollar amount by which (a) GAAP net income of the Subsidiaries attributable
      to the Investments for the full fiscal year, before incentive compensation,
      divided by the average capital of the Subsidiaries for the year that is invested
      in Investments, exceeds (b) the greater of (x) 8.00% and (z) 2.00% plus the
      Ten
      Year Treasury Rate for such fiscal year, and (ii) the average capital of the
      Subsidiaries invested in Investments for the fiscal year and (2) the amount
      of
      Incentive Compensation paid for the first three fiscal quarters of such fiscal
      year. 

     

    (p)  “Independent
      Directors”
means
      the members of the Board of Directors who are not officers or employees of
      the
      Company or the Advisor or any Person directly or indirectly controlling or
      controlled by the Advisor, 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 Shares are listed.

     

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

     

    (r)  “Investment
      Allocation Policy”
means
      the Investment Allocation Policy attached as Exhibit
      A
      hereto.

     

    (s)  “Investments”
means
      the investments of the Subsidiaries made or acquired by the Advisor pursuant
      to
      the Guidelines after the date of this Agreement for the benefit of and for
      the
      account of the Subsidiaries, but excluding the Excluded Assets.

     

    (t)  “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. 

     

    (u)  “REIT”
means
      a
“real estate investment trust” as defined under the Code. 

     

    (v)  
      “Subsidiaries”
means
      each direct and indirect subsidiary of the Company that is formed for the
      purpose of holding Investments, including but not limited to Hypotheca Capital,
      LLC and New York Mortgage Funding LLC.

     

    (w)  “Ten
      Year Treasury Rate”
means
      the average of weekly average yield to maturity for U.S. Treasury securities
      (adjusted to a constant maturity of ten (10) years) as published weekly by
      the
      Federal Reserve Board in publication H.15, or any successor publication, during
      a fiscal quarter.

     

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

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      
        SECTION
          2. APPOINTMENT
          AND DUTIES OF THE ADVISOR.

      

    

     

    (a)  The
      Company, for itself and on behalf of the Subsidiaries, hereby appoints the
      Advisor to manage the assets of the Subsidiaries subject to the further terms
      and conditions set forth in this Agreement and the Advisor hereby agrees to
      use
      its commercially reasonable efforts to perform each of the duties set forth
      herein. The appointment of the Advisor shall be exclusive to the Advisor except
      to the extent that the Advisor otherwise agrees, in its sole and absolute
      discretion, and except to the extent that the Advisor elects, pursuant to the
      terms of this Agreement, to cause the duties of the Advisor hereunder to be
      provided by third parties.

     

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

     

    (i)  as
      described in greater detail in clauses (ix) and (x) below, serving as the
      Company’s and the Subsidiaries’ consultant with respect to the development and
      periodic review of the investment criteria and parameters for the Subsidiaries’
Investments, borrowings and operations, any modifications to which shall be
      subject to the approval of a majority of the Independent Directors (such
      guidelines as initially approved and as may be modified with such approval,
      the
“Guidelines”).
      The
      initial approved Guidelines are attached as Exhibit
      A
      to this
      Agreement. 

     

    (ii)  investigating,
      analyzing and selecting possible investment opportunities for the
      Subsidiaries;

     

    (iii)  with
      respect to prospective purchases and sales of Investments, conducting
      negotiations with sellers and purchasers and their respective agents,
      representatives and investment bankers;

     

    (iv)  engaging
      and supervising, on behalf of the Subsidiaries and at the Subsidiaries’ expense,
      independent contractors which provide investment banking, mortgage brokerage,
      securities brokerage and other financial services and such other services as
      may
      be required relating to the Investments; provided, however, that the Advisor
      shall be prohibited from originating residential mortgage loans on behalf of
      the
      Company and the Subsidiaries at any time prior to October 1, 2008;

     

    (v)  negotiating
      on behalf of the Subsidiaries for the sale, exchange or other disposition of
      any
      Investments;

     

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

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

    (xi)  monitoring
      the financial performance of the Investments and providing periodic reports
      with
      respect thereto to the Company and its Board of Directors, including comparative
      information with respect to such performance including any reports necessary
      for
      the Company to meet its requirements under the Exchange Act and the Public
      Subsidiary Accounting Reform and Investor Protection Act of 2002 as
      amended;

     

    (xii)  investing
      and re-investing any moneys and securities of the Subsidiaries;

     

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

     

    (xiv)  performing
      such other services as may be required from time to time for advisory and other
      activities relating to the assets of the Subsidiaries as the Company’s
      management and Board of Directors shall reasonably request.

     

    Without
      limiting the foregoing, the Advisor will perform portfolio management services
      (the “Portfolio
      Management Services”)
      on
      behalf of the Subsidiaries with respect to the Investments. Such services will
      include, but not be limited to, consulting with the Company on the purchase
      and
      sale of, and other investment opportunities in connection with, the
      Subsidiaries’ portfolio of assets; the collection of information and the
      submission of reports pertaining to the Subsidiaries’ assets, interest rates and
      general economic conditions; periodic review and evaluation of the performance
      of the Subsidiaries’ portfolio of assets; acting as liaison between the
      Subsidiaries and banking, mortgage banking, investment banking and other parties
      with respect to the purchase, financing and disposition of assets; and other
      customary functions related to portfolio management. Additionally, the Advisor
      will perform monitoring services (the “Monitoring
      Services”)
      on
      behalf of the Subsidiaries with respect to any loan servicing activities
      provided by third parties. Such Monitoring Services will include, but not be
      limited to, negotiating servicing agreements; acting as a liaison between the
      servicers of the assets and the Subsidiaries; review of servicers’ delinquency,
      foreclosure and other reports on assets; supervising claims filed under any
      insurance policies; and enforcing the obligation of any servicer to repurchase
      assets. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (c)  The
      Advisor may enter into agreements with other parties, including its affiliates,
      to provide such services to the Subsidiaries (including, without limitation,
      Portfolio Management Services and Monitoring Services) as the Advisor shall
      deem
      necessary or advisable in connection with the Advisor’s performance of its
      duties and obligations hereunder pursuant to agreements with terms which are
      then customary for agreements regarding the provision of such services to
      companies that have assets similar in type, quality and value to the assets
      of
      the Subsidiaries; provided
      that (i)
      any such agreements entered into with affiliates of the Advisor shall be (A)
      on
      terms no more favorable to such affiliate then would be obtained from a third
      party on an arm’s-length basis and (B) to the extent the same do not fall within
      the provisions of the Guidelines, approved by a majority of the Independent
      Directors, (ii) with respect to Portfolio Management Services, (A) any such
      agreements shall be subject to the Company’s prior written approval and (B) the
      Advisor shall remain liable for the performance of such Portfolio Management
      Services, (iii) with respect to Monitoring Services, any such agreements shall
      be subject to the Company’s prior written approval and (iv) the Base Advisory
      Fee payable to the Advisor shall be reduced by the amount of any fees payable
      to
      such other parties, although any out-of-pocket expenses incurred by such other
      parties that are reimbursable shall be reimbursed by the Company.

     

    (d)  To
      the
      extent that the Advisor deems necessary or advisable, the Advisor may, from
      time
      to time, propose to retain one or more additional entities for the provision
      of
      sub-advisory services to the Advisor in order to enable the Advisor to perform
      its services hereunder; provided
      that any
      such agreement (i) shall be on terms and conditions substantially identical
      to
      or more favorable than the terms and conditions of this Agreement, and (ii)
      shall not result in an increased Base Advisory Fee or expenses to the Company
      or
      the Subsidiaries.

     

    (e)  As
      frequently as the Advisor may deem necessary or advisable, or at the direction
      of the Company, the Advisor shall, at the sole cost and expense of the Company
      and/or the Subsidiaries, as applicable, 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.

     

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

     

    (g)  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 Advisor’s acts or omissions which result in the right
      of the Company to terminate this Agreement pursuant to Section 15 of this
      Agreement, the Advisor 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
      Subsidiary Account (as herein defined) or otherwise made available by the
      Company to be expended by the Advisor hereunder. Failure of the Advisor 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 Advisor’s unsatisfactory
      performance.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

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

     

    (i)  Notwithstanding
      anything to the contrary contained herein, to the extent any action by the
      Advisor requires the approval or consent of the Company or the Board of
      Directors, or is to be taken at the direction of the Company or the Board of
      Directors, such approval, consent or direction shall be given only by officers
      or directors of the Company that are not affiliated with the Advisor or its
      affiliates. 

     

    (j)  Any
      reference to the assets, operations, moneys, securities, investments, investment
      opportunities, investment objectives or similar terminology, of the Subsidiaries
      contained in this Section 2 shall refer to the assets, operations, moneys,
      securities, investments, investment opportunities or investment objectives
      of
      the Subsidiaries, excluding the Excluded Assets.

     

    
      
        SECTION
          3. DEVOTION
          OF TIME; ADDITIONAL ACTIVITIES.

      

    

     

    (a)  During
      the term of this Agreement, the Advisor will designate a qualified individual
      to
      serve as the Chief Investment Officer of each of the Subsidiaries. Subject
      to
      compliance with the suitability standards of the Nominating and Corporate
      Governance Committee of the Company’s Board of Directors, the Board of Directors
      shall appoint such designated representative of the Advisor to serve on the
      Company’s Board of Directors as its Chairman and to serve as the Chief
      Investment Officer of each of the Subsidiaries effective as of the date of
      this
      Agreement and shall recommend such designated representative for election to
      the
      Company’s Board of Directors at each annual or special meeting of the Company’s
      stockholders at which directors are to be elected during the term of this
      Agreement. 

     

    (b)  The
      Company hereby agrees that the Advisor or any entity controlled by or under
      common control with the Advisor shall be permitted to raise, advise or sponsor
      other REITs and other funds that invest primarily in domestic mortgage-backed
      securities; provided
      that the
      Advisor will not disadvantage the Company and the Subsidiaries with respect
      to
      its services provided to such other REITs or funds. The Company and the
      Subsidiaries shall have the benefit of the Advisor’s best judgment and efforts
      in rendering services and, in furtherance of the foregoing, the Advisor shall
      not undertake activities which, in its judgment, will substantially and
      adversely affect the performance of its obligations under this Agreement. When
      making investment allocation decisions between the Subsidiaries, on the one
      hand, and any other REIT, fund or account managed by the Advisor or any of
      its
      affiliates, on the other hand, the Advisor shall adhere to the Investment
      Allocation Policy attached as Exhibit
      B
      hereto.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (c)  Except
      to
      the extent set forth in clauses (a) and (b) above, nothing herein shall prevent
      the Advisor or any of its affiliates or any of the officers and employees of
      any
      of the foregoing from engaging in other businesses or from rendering services
      of
      any kind to any other person or entity, including investment in, or advisory
      service to others investing in, any type of investment, including investments
      which meet the principal investment objectives of the Company and its
      Subsidiaries.

     

    (d)  Officers
      and employees of the Advisor or its affiliates may serve as officers, employees,
      agents, nominees or signatories for any Subsidiary, to the extent permitted
      by
      such Subsidiary’s Governing Instruments, subject to approval by the Board of
      Directors of the Company. When executing documents or otherwise acting in such
      capacities for the Subsidiaries, such persons shall use their respective titles
      in the Subsidiaries.

     

    SECTION
      4. AGENCY.
      The
      Advisor shall act as agent of the Company and its Subsidiaries in making,
      acquiring, financing and disposing of Investments.

     

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

     

    SECTION
      6. RECORDS;
      CONFIDENTIALITY.
      The
      Advisor 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 one (1) business day’s
      advance written notice. The Advisor 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 nonaffiliated third parties
      except (i) with the prior written consent of the Company, (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 the Subsidiaries’
business; (iv) to governmental officials having jurisdiction over the Company
      and the Subsidiaries; (v) in connection with any governmental or regulatory
      filings of the Company and the Subsidiaries or disclosure or presentations
      to
      Company investors; or (vi) as required by law or legal process to which the
      Advisor 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 Advisor not resulting
      from the Advisor’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 year.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    SECTION
      7. OBLIGATIONS
      OF ADVISOR; RESTRICTIONS.

     

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

     

    (b)  The
      Advisor shall refrain from any action that, in its sole judgment made in good
      faith, (i) is not in compliance with the Guidelines, (ii) would cause the
      Company’s status as a REIT under the Code to be lost or terminated or (iii)
      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 Advisor is
      ordered to take any such action by the Company or the Board of Directors, the
      Advisor shall promptly notify the Company and Board of Directors of the
      Advisor’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, the Advisor, 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 Advisor, its directors, officers,
      stockholders or employees except as provided in Section 11 of this
      Agreement.

     

    (c)  The
      Advisor shall not (i) consummate any transaction which would involve the
      acquisition by the Subsidiaries of an asset in which the Advisor or any
      affiliate thereof has an ownership interest or the sale by the Subsidiaries
      of
      an asset to the Advisor or any affiliate thereof, or (ii) under circumstances
      where the Advisor is subject to an actual or potential conflict of interest,
      in
      the reasonable judgment of the Advisor, because it advises both the Subsidiaries
      and another Person (not an affiliate of the Company) with which the Company
      has
      a contractual relationship, take any action constituting the granting to such
      Person of a waiver, forbearance or other relief, or the enforcement against
      such
      Person of remedies, under or with respect to the applicable contract, unless
      such transaction or action, as the case may be and in each case, is approved
      by
      a majority of the Independent Directors.

     

    (d)  The
      Board
      of Directors periodically reviews the Guidelines and the Subsidiaries’
portfolios of Investments 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 (including as a result of violation of
      the
      provisions of Section 7(c) above), then a majority of the Independent Directors
      will consider what corrective action, if any, can be taken. The Advisor 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.

     

    (e)  The
      Advisor 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 Advisors performing
      functions similar to those of the Advisor under this Agreement with respect
      to
      assets similar to the assets of the Subsidiaries, in an amount which is
      comparable to that customarily maintained by other Advisors or servicers of
      similar assets.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    SECTION
      8. COMPENSATION.

     

    (a)  During
      the Initial Term (as defined below) of this Agreement, as the same may be
      extended from time to time, the Company shall pay the Advisor the Base Advisory
      Fee quarterly in arrears commencing with the quarter in which this Agreement
      was
      executed (with such initial payment pro-rated based on the number of days during
      such quarter that this Agreement was in effect).

     

    (b)  The
      Advisor shall compute each installment of the Base Advisory Fee for each quarter
      with respect to which such installment is payable within two (2) business days
      after completion by the Company’s registered independent public accountants of
      (i) with respect to the first three fiscal quarters of each fiscal year, a
      SAS
      100 review of the Company’s consolidated financial statements for each such
      quarter and (ii) with respect to the fourth fiscal quarter of each fiscal year,
      an audit of the Company’s consolidated financial statements for such fiscal
      year. The Advisor shall deliver promptly to the Company a copy of the
      computations made by the Advisor to calculate such installment and, subject
      to
      Section 13(a) of this Agreement, the Company shall deliver payment of such
      installment of the Base Advisory Fee shown therein to the Advisor within five
      (5) business days thereafter.

     

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

     

    (d)  In
      addition to the Base Advisory Fee, the Company shall pay the Advisor quarterly
      Incentive Compensation. The Incentive Compensation calculation and payment
      shall
      be made for each fiscal quarter in arrears following the same schedule set
      forth
      in Section 8(b) above.

     

    (e)  Any
      portion of the Incentive Compensation payable for the fourth fiscal quarter
      of a
      fiscal year that is attributable to net unrealized gains of the Company with
      respect to the invested capital of the Subsidiaries will be payable in Common
      Shares, valued based on the
      average closing price of the Common Shares during the fourth quarter with
      respect to which such Incentive Compensation payment is payable as quoted or
      reported on the national securities exchange on which such Common Shares are
      then listed or, if the Common Shares are not then listed on a national
      securities exchange, as quoted on the OTC Bulletin Board.

     

    SECTION
      9. EXPENSES
      OF THE COMPANY AND SUBSIDIARIES.
      The
      Company and Subsidiaries shall pay all of their expenses and shall reimburse
      the
      Advisor for reasonable documented expenses of the Advisor incurred on their
      behalf (collectively, the “Expenses”).
      At
      all times the Advisor shall use due care in expending funds on behalf of the
      Subsidiaries. Expenses include all costs and expenses which are expressly
      designated elsewhere in this Agreement as the Company’s and Subsidiaries,
      together with the following:

     

    (a)  expenses
      in connection with issuance and transaction costs incident to the acquisitions,
      disposition and financing of Investments;

     

    (b)  costs
      of
      legal, tax, accounting, consulting, auditing, administrative and other similar
      services rendered for the Subsidiaries by providers retained by the Advisor
      or,
      if provided by the Advisor’s employees, in amounts which are no greater than
      those which would be payable to outside professionals or consultants engaged
      to
      perform such services pursuant to agreements negotiated on an arm’s-length
      basis;

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

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

     

    (d)  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 Subsidiaries and acquired at the direction of the
      Company;

     

    (e)  expenses
      incurred by officers, employees and agents of the Advisor for travel on the
      Subsidiaries’ behalf and other out-of-pocket expenses incurred by officers,
      employees and agents of the Advisor in connection with the purchase, financing,
      refinancing, sale or other disposition of an Investment or establishment and
      maintenance of any credit facilities and other indebtedness or any securities
      offerings of the Subsidiaries;

     

    (f)  costs
      and
      expenses incurred with respect to settlement, clearing and custodial fees and
      expenses;

     

    (g)  the
      costs
      of maintaining compliance with all federal, state and local rules and
      regulations or any other regulatory agency applicable to the Subsidiaries or
      the
      Company;

     

    (h)  costs
      and
      expenses incurred in contracting with third parties, including affiliates of
      the
      Advisor, for the servicing and special servicing of assets of the
      Subsidiaries;

     

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

     

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

     

    The
      Advisor may, at its option, elect not to seek reimbursement for certain expenses
      during a given period, which determination shall not be deemed to construe
      a
      waiver of reimbursement for similar expenses in future periods. Except as noted
      above, the Advisor is responsible for all costs incident to the performance
      of
      its duties under this Advisory Agreement, including compensation of the
      Advisor’s officers and employees and other related expenses.

     

    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
      or
      are incurred in connection with such expiration or termination.

     

    SECTION
      10. CALCULATIONS
      OF EXPENSES.
      

     

    The
      Advisor shall prepare a statement documenting the Expenses incurred by the
      Advisor on behalf of the Subsidiaries during each calendar month, and shall
      deliver such statement to the Company within 20 days after the end of each
      calendar month. Expenses incurred by the Advisor on behalf of the Subsidiaries
      shall be reimbursed by the Company to the Advisor not later than the first
      business day of the month immediately following the date of delivery of such
      statement; provided,
      however, that such reimbursements may be offset by the Advisor against amounts
      due to the Company. The provisions of this Section 10 shall survive the
      expiration or earlier termination of this Agreement.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    SECTION
      11. LIMITS
      OF ADVISOR RESPONSIBILITY; INDEMNIFICATION.
      

     

    (a)  The
      Advisor assumes no responsibility under this Agreement other than to render
      the
      services called for and perform the other obligations required to be performed
      by the Advisor under this Agreement in good faith and shall not be responsible
      for any action of the Company or the Board of Directors in following or
      declining to follow any advice or recommendations of the Advisor, including
      as
      set forth in Section 7(b) of this Agreement. The Advisor, each
      Person
      controlling,
      controlled by or under common control with the Advisor, any entity providing
      sub-advisory services to the Advisor, and the officers, directors, employees,
      members, partners and other representatives of any such Person
      (each an
“Indemnified
      Party”
and,
      collectively, the Indemnified
      Parties”)
      will
      not be liable to the Company or any Subsidiary, to the Board of Directors,
      or
      the Company’s or any Subsidiary’s stockholders, members 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 Advisor’s duties under this
      Agreement or acts constituting a material breach or violation by the Advisor
      of
      its obligations under this Agreement. The Company shall, to the full extent
      lawful, reimburse, indemnify and hold the each 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 Indemnified Party made in good faith
      in the performance of the Advisor’s duties under this Agreement and not
      constituting such Indemnified Party’s bad faith, willful misconduct, gross
      negligence or reckless disregard of the Advisor’s duties under this Agreement or
      a material breach or violation by the Advisor of its obligations under this
      Agreement.

     

    (b)  The
      Advisor shall, to the full extent lawful, reimburse, indemnify and hold the
      Company, its stockholders, directors, officers and employees and each other
      Person, if any, controlling, controlled by or under common control with the
      Company (each, a “Company
      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 the Advisor’s bad faith, willful misconduct, gross
      negligence or reckless disregard of its duties under this Agreement or material
      breach or violation by the Advisor of its obligations under this
      Agreement.

     

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

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      
        SECTION
          13. TERM;
          TERMINATION.

      

    

     

    (a)  Until
      this Agreement is terminated in accordance with its terms, this Agreement shall
      be in effect until December 31, 2010 (the “Initial
      Term”)
      and
      shall be automatically renewed for a one-year term each anniversary date
      thereafter (a “Renewal
      Term”)
      unless
      at least two-thirds of the Independent Directors agree that (i) there has been
      unsatisfactory performance by the Advisor that is materially detrimental to
      the
      Company and its Subsidiaries or (ii) the compensation payable to the Advisor
      hereunder is unfair; provided
      that the
      Company shall not have the right to terminate this Agreement under clause (ii)
      above if the Advisor agrees to continue to provide the services under this
      Agreement at a fee that at least two-thirds of the Independent Directors
      determines to be fair pursuant to the procedure set forth below. If the Company
      elects not to renew this Agreement at the expiration of the Initial Term or
      any
      such one-year extension term as set forth above, the Company shall deliver
      to
      the Advisor prior written notice (the “Termination
      Notice”)
      of the
      Company’s intention not to renew this Agreement based upon the terms set forth
      in this Section 13(a) not less than 180 days prior to the expiration of the
      then
      existing term. If the Company so elects not to renew this Agreement, the Company
      shall designate the date (the “Effective
      Termination Date”),
      not
      less than 180 days from the date of the notice, on which the Advisor shall
      cease
      to provide services under this Agreement and this Agreement shall terminate
      on
      such date; provided,
      however, that in the event that such Termination Notice is given in connection
      with a determination that the compensation payable to the Advisor is unfair,
      the
      Advisor shall have the right to renegotiate such compensation by delivering
      to
      the Company, no fewer than forty-five (45) days prior to the prospective
      Effective Termination Date, written notice (any such notice, a “Notice
      of Proposal to Negotiate”)
      of its
      intention to renegotiate its compensation under this Agreement. Thereupon,
      the
      Company (represented by the Independent Directors) and the Advisor shall
      endeavor to negotiate in good faith the revised compensation payable to the
      Advisor under this Agreement. Provided that the Advisor and at least two-thirds
      of the Independent Directors agree to the terms of the revised compensation
      to
      be payable to the Advisor within 45 days following the receipt of the Notice
      of
      Proposal to Negotiate, the Termination Notice shall be deemed of no force and
      effect and this Agreement shall continue in full force and effect on the terms
      stated in this Agreement, except that the compensation payable to the Advisor
      hereunder shall be the revised compensation then agreed upon by the parties
      to
      this Agreement. The Company and the Advisor agree to execute and deliver an
      amendment to this Agreement setting forth such revised compensation promptly
      upon reaching an agreement regarding same. In the event that the Company and
      the
      Advisor are unable to agree to the terms of the revised compensation to be
      payable to the Advisor during such 45 day period, this Agreement shall
      terminate, such termination to be effective on the date which is the later
      of
      (A) ten (10) days following the end of such 45 day period and (B) the Effective
      Termination Date originally set forth in the Termination Notice. The
      Company may elect to terminate this agreement under the provisions of this
      Section 13(a) prior to the expiration of the Initial Term if the Advisor has
      failed to earn Incentive Compensation for four (4) consecutive
      quarters.

     

    (b)  In
      the
      event that this Agreement is terminated in accordance with the provisions of
      Section 13(a) of this Agreement, the Company shall pay to the Advisor, on the
      date on which such termination is effective, a termination fee (the
“Termination
      Fee”)
      equal
      to the sum of (a) the average annual Base Advisory Fee and (b) the average
      annual Incentive Compensation earned by the Advisor during the 24-month period
      immediately preceding the date of such termination, calculated as of the end
      of
      the most recently completed fiscal quarter prior to the date of termination.
      The
      obligation of the Company to pay the Termination Fee shall survive the
      termination of this Agreement.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (c)  No
      later
      than 180 days prior to the anniversary date of this Agreement of any year during
      the Initial Term or Renewal Term, the Advisor may deliver written notice to
      the
      Company informing it of the Advisor’s intention to decline to renew this
      Agreement, whereupon this Agreement shall not be renewed and extended and this
      Agreement shall terminate effective on the anniversary date of this Agreement
      next following the delivery of such notice.

     

    (d)  If
      this
      Agreement is terminated pursuant to this 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, 13(b) and 16 of this Agreement. In addition,
      Sections 8(f) and 11 of this Agreement shall survive termination of this
      Agreement.

     

    
      
        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, in whole or in part, by the
      Advisor, unless such assignment is consented to in writing by the Company with
      the consent of a majority of the Independent Directors; provided,
      however, that no such consent shall be required in the case of an assignment
      by
      the Advisor to an affiliate of the Advisor. Any such permitted assignment shall
      bind the assignee under this Agreement in the same manner as the Advisor is
      bound, and the Advisor 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 Advisor. This Agreement shall not be assigned by the Company
      without the prior written consent of the Advisor, except in the case of
      assignment by the Company to another REIT or other organization which is a
      successor (by merger, consolidation or purchase of assets) 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 Advisor may subcontract and assign any
      or
      all of its responsibilities under Sections 2(b), 2(c) and 2(d) of this Agreement
      to any of its affiliates in accordance with the terms of this Agreement
      applicable to any such subcontract or assignment, and the Company hereby
      consents to any such assignment and subcontracting. In addition, provided that
      the Advisor 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 Advisor under
      this
      Agreement.

     

    
      
        SECTION
          15. TERMINATION
          FOR CAUSE.

      

    

     

    (a)  The
      Company may terminate this Agreement effective upon thirty (30) days’ prior
      written notice of termination from the Company to the Advisor, without payment
      of any Termination Fee, if (i) the Advisor materially breaches any provision
      of
      this Agreement and such breach shall continue for a period of 30 days after
      written notice thereof specifying such breach and requesting that the same
      be
      remedied in such 30 day period, (ii) the Advisor engages in any act of fraud,
      misappropriation of funds, or embezzlement against the Company, (iii) there
      is
      an event of any gross negligence on the part of the Advisor in the performance
      of its duties under this Agreement, (iv) there is a commencement of any
      proceeding relating to the Advisor’s bankruptcy or insolvency, (v) there is a
      dissolution of the Advisor, or (vi) there is a Change of Control of the
      Advisor.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (b)  The
      Advisor may terminate this Agreement effective upon sixty (60) days’ prior
      written notice of termination to the Company, without payment of any Termination
      Fee, 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 continue for a period of 30 days after written
      notice thereof specifying such default and requesting that the same be remedied
      in such 30 day period.

     

    (c)  The
      Advisor may terminate this Agreement, without payment of any Termination Fee,
      in
      the event the Company becomes regulated 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, 14 or 15 of this Agreement, the Advisor shall not be entitled
      to
      compensation for further services under this Agreement, but shall be paid all
      compensation accruing to the date of termination and, if terminated pursuant
      to
      Section 13 or Section 15(b), the applicable Termination Fee. Upon such
      termination, the Advisor shall forthwith:

     

    (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 Company 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 Company with respect
      to the Subsidiaries; and

     

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

     

    SECTION
      17. RELEASE
      OF MONEY OR OTHER PROPERTY UPON WRITTEN REQUEST.
      The
      Advisor agrees that any money or other property of the Company or Subsidiary
      held by the Advisor under this Agreement shall be held by the Advisor as
      custodian for the Company or Subsidiary, and the Advisor’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 Advisor
      of a
      written request signed by a duly authorized officer of the Company requesting
      the Advisor to release to the Company or any Subsidiary any money or other
      property then held by the Advisor for the account of the Company or any
      Subsidiary under this Agreement, the Advisor 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 sixty (60) days following such request. The Advisor
      shall not be liable to the Company, any Subsidiary, the Independent Directors,
      or the Company’s or a Subsidiary’s stockholders, partners or members 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 Advisor and its members,
      sub-advisors, 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 Advisor’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 Advisor to indemnification under Section 11 of this
      Agreement.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    SECTION
      18. 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 or any Subsidiary:

     

    New
      York
      Mortgage Trust, Inc.

    1301
      Avenue of the Americas, 7th
      Floor

    New
      York,
      New York 10019

    Attention:
      President

    Facsimile:
      

     

    (b)  If
      to the
      Advisor:

     

    JMP
      Asset
      Management LLC

    600
      Montgomery Street, Suite 1100

    San
      Francisco, California 94111

    Attention:
      Janet L. Tarkoff

    Facsimile:
      

     

    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 18 for the giving of notice.

     

    SECTION
      19. 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.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

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

     

    SECTION
      21. 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.

     

    SECTION
      22. 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
      23. 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
      24. 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
      25. 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
      26. 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.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

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

     

    
      	 	 	 
	 	NEW
              YORK MORTGAGE
              TRUST, INC.
	 
 	 
 	 
 
	 	By:  	/s/ 
Steven
              R. Mumma
	 	
              
Name:
              Steven R. Mumma
	 	Title:
              Co-CEO, President, CFO 

    

     

    
      	 	 	 
	 	NEW YORK MORTGAGE FUNDING LLC 
	 	
               

            
	 	By: 	
              NEW YORK MORTGAGE TRUST, INC.,

              
                its
                  sole member

              

            
	 
 	 
 	 
 
	 	By:  	/s/ Steven
              R.
              Mumma
	 	
              
Name:
              Steven R. Mumma
	 	Title:
              Co-CEO, President, CFO

    

     

    
      
        	 	 	 
	 	HYPOTHECA CAPITAL, LLC 
	 	
                 

              
	 	By: 	
                NEW YORK MORTGAGE TRUST, INC.,

                
                  its
                    sole member

                

              
	 
 	 
 	 
 
	 	By:  	/s/ Steven
                R.
                Mumma
	 	
                
Name:
                Steven R. Mumma
	 	Title:
                Co-CEO, President, CFO

      

       

      
        
          	 	 	 
	 	JMP
                  ASSET
                  MANAGEMENT LLC
	 
 	 
 	 
 
	 	By:  	/s/ 
Joseph
                  A. Jolson
	 	
                  
Name:

	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}]]