From Earlier: New York Mortgage Trust Notice of Termination and Letter Agreement with Harvest Capital Strategies

On December 30, 2011, New York Mortgage Trust, Inc. NYMT, together with two of its wholly-owned subsidiaries, Hypotheca Capital, LLC and New York Mortgage Funding, LLC, entered into a Notice of Termination and Letter Agreement with Harvest Capital Strategies LLC. Pursuant to the Termination Agreement, the NYMT Companies and HCS agreed that the Amended and Restated Advisory Agreement, dated as of July 26, 2010, between the NYMT Companies and HCS will terminate on December 31, 2011, with HCS agreeing to waive the 180-day advance notice requirement provided in the Advisory Agreement. In addition, the NYMT Companies and HCS agree that, in consideration of the termination of the Advisory Agreement, the NYMT Companies will collectively pay to HCS a termination fee equal to $2,235,000, which fee is the sum of (a) the termination fee provided in Section 13(b) of the Advisory Agreement and (b) $500,000, which represents the fees that otherwise would have been payable through the end of the term of the Advisory Agreement. The Agreed Fee will be paid to HCS by the NYMT Companies in three separate installments with the first installment of $1,735,000 payable on December 30, 2011, and the final two installments of $250,000 payable on March 31, 2012 and on the date the transitional consulting services referred to below are terminated by the Company.