NEW YORK MORTGAGE TRUST INC - 10-K filing on 2014-03-10

Note 18 - Related Party Transactions	12 Months Ended
Dec. 31, 2013
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	18. Related Party Transactions Management Agreement On April 5, 2011, the Company entered into a management agreement with RiverBanc LLC (“RiverBanc”), pursuant to which RiverBanc provides investment management services to the Company. On March 13, 2013, the Company entered into an amended and restated management agreement with RiverBanc (as amended, the “RiverBanc Management Agreement”). The RiverBanc Management Agreement replaces the prior management agreement between RiverBanc and the Company, dated as of April 5, 2011. The amended and restated agreement has an effective date of January 1, 2013 and has a term that will expire on December 31, 2014, subject to automatic annual one-year renewals thereof. As of December 31, 2013 and December 31, 2012, the Company owned a 20% and 15% membership interest, respectively, in RiverBanc. For the year ended December 31, 2013, the Company recognized $0.3 million in income related to its investment in RiverBanc. For the years ended December 31, 2013, 2012 and 2011, the Company expensed $3.4 million, $0.9 million and $0.1 million in fees to RiverBanc, respectively. As of December 31, 2013 and December 31, 2012, the Company had management fees payable to RiverBanc of $1.0 million and $0.1 million, respectively, included in accrued expenses and other liabilities. Accounting Outsourcing Agreement The Company entered into an outsourcing agreement with Real Estate Systems Implementation Group, LLC (“RESIG”) effective May 1, 2010, pursuant to which RESIG, among other things, (a) performs day-to-day accounting services for the Company and (b) effective October 4, 2010, provided a Chief Financial Officer to the Company. During the years ended December 31, 2013, 2012 and 2011, respectively, RESIG earned $0.7 million, $0.7 million and $0.5 million in fees. As of December 31, 2013 and 2012, the Company had fees payable to RESIG in the amount of approximately $0.1 million and $0.1 million, respectively, included in accrued expenses and other liabilities. Termination of Advisory Agreement On December 30, 2011, the Company and Harvest Capital Strategies LLC (“HCS”) agreed to terminate the HCS Advisory Agreement effective on December 31, 2011, with HCS agreeing to waive the 180-day advance notice requirement provided in the HCS Advisory Agreement. In addition, the Company and HCS agreed that, in consideration of the termination of the HCS Advisory Agreement, the Company would pay to HCS a termination fee equal to $2,235,000 (the “Agreed Fee”), which fee is the sum of (a) the termination fee provided in the HCS Advisory Agreement and (b) $500,000, which represents the fees that otherwise would have been payable through the end of the term of the HCS Advisory Agreement. The Agreed Fee was paid to HCS by the Company in three separate installments with the first installment of $1,735,000 paid on December 30, 2011, and the final two installments of $250,000 was paid on May 9, 2012. Pursuant to the terms of the HCS Advisory Agreement, following the termination date of December 31, 2011, the Company will continue to pay incentive compensation to HCS with respect to all assets of the Company that were, as of the effective termination date, managed pursuant to the HCS Advisory Agreement (the “Incentive Tail Assets”) until such time as such Incentive Tail Assets are disposed of by the Company or mature. The Company expensed $40,000 and $2.2 million in 2012 and 2011, respectively, relating to the termination of the HCS Advisory Agreement.

Note 18 - Related Party Transactions

12 Months Ended

Dec. 31, 2013

18. Related Party Transactions

Management Agreement

On April 5, 2011, the Company entered into a management agreement with RiverBanc LLC (“RiverBanc”), pursuant to which RiverBanc provides investment management services to the Company. On March 13, 2013, the Company entered into an amended and restated management agreement with RiverBanc (as amended, the “RiverBanc Management Agreement”). The RiverBanc Management Agreement replaces the prior management agreement between RiverBanc and the Company, dated as of April 5, 2011. The amended and restated agreement has an effective date of January 1, 2013 and has a term that will expire on December 31, 2014, subject to automatic annual one-year renewals thereof.

As of December 31, 2013 and December 31, 2012, the Company owned a 20% and 15% membership interest, respectively, in RiverBanc. For the year ended December 31, 2013, the Company recognized $0.3 million in income related to its investment in RiverBanc.

For the years ended December 31, 2013, 2012 and 2011, the Company expensed $3.4 million, $0.9 million and $0.1 million in fees to RiverBanc, respectively. As of December 31, 2013 and December 31, 2012, the Company had management fees payable to RiverBanc of $1.0 million and $0.1 million, respectively, included in accrued expenses and other liabilities.

Accounting Outsourcing Agreement

The Company entered into an outsourcing agreement with Real Estate Systems Implementation Group, LLC (“RESIG”) effective May 1, 2010, pursuant to which RESIG, among other things, (a) performs day-to-day accounting services for the Company and (b) effective October 4, 2010, provided a Chief Financial Officer to the Company. During the years ended December 31, 2013, 2012 and 2011, respectively, RESIG earned $0.7 million, $0.7 million and $0.5 million in fees. As of December 31, 2013 and 2012, the Company had fees payable to RESIG in the amount of approximately $0.1 million and $0.1 million, respectively, included in accrued expenses and other liabilities.

Termination of Advisory Agreement

On December 30, 2011, the Company and Harvest Capital Strategies LLC (“HCS”) agreed to terminate the HCS Advisory Agreement effective on December 31, 2011, with HCS agreeing to waive the 180-day advance notice requirement provided in the HCS Advisory Agreement. In addition, the Company and HCS agreed that, in consideration of the termination of the HCS Advisory Agreement, the Company would pay to HCS a termination fee equal to $2,235,000 (the “Agreed Fee”), which fee is the sum of (a) the termination fee provided in the HCS Advisory Agreement and (b) $500,000, which represents the fees that otherwise would have been payable through the end of the term of the HCS Advisory Agreement. The Agreed Fee was paid to HCS by the Company in three separate installments with the first installment of $1,735,000 paid on December 30, 2011, and the final two installments of $250,000 was paid on May 9, 2012.

Pursuant to the terms of the HCS Advisory Agreement, following the termination date of December 31, 2011, the Company will continue to pay incentive compensation to HCS with respect to all assets of the Company that were, as of the effective termination date, managed pursuant to the HCS Advisory Agreement (the “Incentive Tail Assets”) until such time as such Incentive Tail Assets are disposed of by the Company or mature. The Company expensed $40,000 and $2.2 million in 2012 and 2011, respectively, relating to the termination of the HCS Advisory Agreement.