Company: CIMO
Filing Date: 2025-04-24
Form Type: DEF 14A
Source: 0001206774-25-000244
Chunk: 75

Company: CHIMERA INVESTMENT CORP
Filing Date: 2025-04-24
Form: DEF 14A
Chunk 75
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 other policies, including our Code of Business Conduct and Ethics, which requires all of
our personnel to be scrupulous in avoiding a conflict of interest regarding our interests. The Code of Business Conduct and Ethics prohibits
us from entering a business relationship with an immediate family member or with a company in which the employee or immediate family member
has a substantial financial interest unless such relationship is disclosed to and approved in advance by our Board of Directors. See “Corporate
Governance, Director Independence, Board Meetings and Committee” for additional information on the Code of Business Conduct and
Ethics.

Approval of Related Person Transactions

On December 2, 2024 (the “Closing Date”), the
Company completed its acquisition of Palisades from Palisades Holdings II, LLC (the “Seller”) for $30,000,000 (the
“Consideration”), and Jack Macdowell commenced his employment with the Company as its Chief Investment Officer. Mr.
Macdowell owns 100% of Palisades Holdings I, LLC, an entity which owns 70% of the Seller. Contingent upon achievement of certain
revenue targets arising from designated contracts of Palisades’ third-party transaction asset and management business (the
“Designated Contracts”), the Consideration may be increased by up to an additional $20,000,000 as part of a series of
earn-out payments (the “Earnout Payments”). The Earnout Payments, if any, will be based on the revenue received by the
Company from the Designated Contracts over five measurement periods beginning on the Closing Date and ending on December 31, 2029,
subject to minimum revenue thresholds. Seller will be paid the maximum amount of the Earnout Payments, $20,000,000, over the five
measurement periods if the total revenue received by the Company from the Designated Contracts during those periods is at least
$100,000,000. At the Company’s election, up to 50% of any Earnout Payment may be satisfied by issuing shares of the
Company’s common stock, calculated using the 30-day volume-weighted average price of the Company’s common stock as
listed on the New York Stock Exchange on the business day immediately preceding the relevant payment date. The Earnout Payment and
related arrangements were approved by our Audit Committee in accordance with our Related Party Transaction Policy and audit
committee charter.

Other than the aforementioned transaction,
we did not have any transactions with a related person as described in Item 404 of Regulation S