Document:

bmnm10q11072007ex10-4.htm

    
BIMINI
      CAPITAL MANAGEMENT, INC.

    2004
      PERFORMANCE BONUS PLAN

    

    

    
      	
              1.

            	
              Purpose
                of the Plan

            

    

     

    The
      Plan is intended to advance the
      interests of the Company by providing an opportunity to selected employees
      of
      the Company to earn bonuses, and to encourage and motivate them to achieve
      superior operating results for Bimini Capital Management, Inc.  The
      Plan is effective as of August 13, 2004 and is an amendment and complete
      restatement of a predecessor hereto adopted by the Committee (as defined below)
      on May 4, 2004.

     

    
      	
              2.

            	
              Definitions

            

    

     

    As
      used
      in this Plan, the following definitions apply:

     

    “Annual
      Supplemental Bonus” means the bonus described in Section 4(b).

     

    “Board”
      means the Board of Directors of Bimini Capital Management, Inc.

     

    “Bonus”
      means a Formula Bonus, an Annual Supplemental Bonus or any bonus described
      in
      Section 3(c).

     

    “Committee”
      means the Compensation Committee of the Board.

     

    “Company”
      means Bimini Capital Management, Inc., and its subsidiaries.

     

    “Formula
      Bonus” means the bonus described in Section 4(a).

     

    “Key
      Employee” means an officer or other employee of the Company whose position and
      responsibilities, in the judgment of the Committee, enable the employee to
      have
      a significant impact on the operating results of the Company.

     

    “Performance
      Period” means each applicable fiscal year of the Company.

     

    “Plan”
      means this Bimini Capital Management, Inc. 2004 Performance Bonus Plan, as
      the
      same may be amended from time to time.

     

    “Termination
      of Service” means a Key Employee’s termination of employment or other service,
      as applicable, with the Company.  Cessation of service as an officer,
      employee, director or consultant shall not be treated as a Termination of
      Service if the Key Employee continues without interruption to serve thereafter
      in another one (or more) of such other capacities.

     

    3.           Bonuses
      – In General

     

    (a)  There
      are two types of
      bonuses provided for hereunder: (i) a Formula Bonus and (ii) an Annual
      Supplemental Bonus.

     

    (b)
      Eligibility from among Key Employees shall be determined by the
      Committee.  The Formula Bonus shall be determined based on a formula,
      as described in Section 4(a).  The Committee may determine the Annual
      Supplemental Bonus a Key Employee will receive with regard to a Performance
      Period or other period. Subject to the provisions of the Plan, the Committee
      shall (i) determine and designate from time to time those Key Employees to
      whom
      Bonuses are to be granted; (ii) determine, consistently with the Plan, the
      amount of the Bonus to be granted to any Key Employee for any Performance
      Period; (iii) determine, consistently with the Plan, the terms and conditions
      of
      each Bonus; and (iv) determine, consistently with the Plan, whether the stock
      (or stock-based grants) will vest upon the occurrence of a change in control
      (as
      may be defined for purposes of the applicable grant) and in the case of
      terminations of employment by the Company without cause (as may be defined
      for
      purposes of the applicable grant) or by the Key Employee for such good reason
      as
      may be specified by the Committee. Bonuses may be so awarded by the Committee
      prior to the commencement of any Performance Period or at the end of or after
      such Performance Period.

     

    (c)           The
      Committee may grant discretionary bonuses within the parameters of the Plan
      based on Company performance otherwise than as specified in Section 3(a) on
      account of a registration statement on Form S-11 having been declared effective
      and on account of the completion of a capital raising event.

     

    4.           Amount
      of Awards

     

    (a)           Unless
      otherwise provided for by the Committee, the Formula Bonus is determined
      pursuant to a formula, determined as follows: if the Company’s funds from
      operations during the applicable quarterly period exceed the product of (i)
      25%
      (except for purposes of the last sentence of this Section 4(a)) of (A) the
      annualized 10-year U.S. Treasury rate for the applicable quarterly period,
      as
      determined by the Committee in accordance with such rules as it may prescribe,
      plus (B) 2.25%, and (ii) the weighted average net book value of the Company
      (any
      such excess, the “Excess FFO”), then the Formula Bonus shall be calculated and
      paid quarterly, as follows:

    

    
      	
              (i)  

            	
              15%
                of the Excess FFO as to the initial $1.0 billion of invested
                assets;

            

    

     

    
      	
              (ii)  

            	
              10%
                of the Excess FFO as to the invested assets over $1 billion, but
                under $2
                billion; and

            

    

     

    
      	
              (iii)  

            	
              5%
                of the Excess FFO as to the invested assets over $2
                billion.

            

    

     

    The
      foregoing pool shall be allocated amongst Key Employees as determined by the
      Committee.  Formula Bonuses shall never cause general and
      administrative (G&A) expenses to exceed 18 basis points
      of  assets, as determined by the Committee.  Notwithstanding
      the foregoing provisions of this Section 4(a), at the end of each fiscal year,
      a
      hypothetical Formula Bonus shall be determined based on the foregoing formula,
      and performance, on a full-year basis (and, for the avoidance of doubt, without
      regard to the 25% reduction in clause (i) of the first sentence of this Section
      4(a)) and the final quarterly Formula Bonus for the year shall be increased
      or
      decreased (but not to below zero) so that the aggregate of the four quarterly
      Formula Bonuses for the year conforms to such hypothetical Formula Bonus, as
      determined by the Committee.

     

    (b)           The
      Committee shall decide whether to grant an Annual Supplemental Bonus, in
      addition to the Formula Bonus, based on the performance of the Company as
      compared with its peer group and other material factors not otherwise taken
      into
      account for purposes of the Formula Bonus, considering, without limitation,
      the
      Key Employee’s aggregate Formula Bonus and other compensation that would be
      payable in the aggregate in the absence of the Annual Supplemental
      Bonus.  Subject to the other terms of the Plan, no Annual Supplemental
      Bonus shall exceed 100% of the Key Employee’s aggregate salary for the
      year.  Notwithstanding the foregoing, for any employee with an
      employment agreement that contemplates bonus payments, the Committee may provide
      in its discretion that Annual Supplemental Bonuses in excess of 100% of the
      Key
      Employee’s aggregate salary for the year may be paid.  Further,
      without limitation by the Plan, any capital-raising bonus expressly provided
      for
      in an employment agreement shall be payable, without duplication, in accordance
      with the applicable employment agreement, in addition to the Bonuses
      hereunder.

     

    (c)           The
      Committee may provide for partial Bonus payments at target and other
      levels.  Any performance hurdles or measures for any Bonuses may be
      adjusted by the Committee in its discretion to reflect (i) dilution from
      corporate acquisitions and share offerings and (ii) changes in applicable
      accounting rules and standards.

     

    (d)           The
      Committee may determine that Bonuses shall be paid in cash or stock (or other
      stock-based grants), or a combination thereof; provided that, unless otherwise
      determined by the Committee, (i) Formula Bonuses shall, at the election of
      the
      Key Employee, be paid in cash, stock (or other equity-based grants) or any
      combination thereof, (ii) Annual Supplemental Bonuses shall be paid 60% in
      cash
      and 40% in stock (or other equity-based grants) and (iii) Bonuses under Section
      3(c) shall be paid in cash.  The Committee may provide that any such
      stock or stock-based grants be made under the Bimini Capital Management, Inc.
      2003 Long Term Incentive Compensation Plan (the “LTIP”) or any other
      equity-based plan or program of the Company and, notwithstanding any provision
      of the Plan to the contrary, in the case of any such grant, the grant shall
      be
      governed in all respects by the LTIP or such other plan or program of the
      Company; provided that, unless otherwise provided by the Committee, Annual
      Supplemental Bonus payments in stock (or other equity-based grants) shall vest
      in equal proportions over three years and Formula Bonus payments in stock (or
      other equity-based grants) shall vest at the time of grant.

     

    (e)           The
      Committee may provide for programs under which the payment of Bonuses may be
      deferred at the election of the Key Employee.

     

    5.           Termination
      of Employment

    

    (a)           Unless
      otherwise determined by the Committee, no Bonus payments shall be made to any
      Key Employee who is not employed on the date payment is to be made; provided
      that no Bonuses shall be made in any event to a Key Employee who is terminated
      for “Cause.”  For these purposes, Cause shall mean, unless otherwise
      provided in the grantee’s award agreement, (i) engaging in (A) willful or
      gross misconduct or (B) willful or gross neglect; (ii) repeatedly failing
      to adhere to the directions of superiors or the Board or the written policies
      and practices of the Company or its affiliates; (iii) the commission of a felony
      or a crime of moral turpitude, dishonesty, breach of trust or unethical business
      conduct, or any crime involving the Company, or any affiliate thereof; (iv)
      fraud, misappropriation or embezzlement; (v) a material breach of the Key
      Employee’s employment agreement (if any) with the Company or its affiliates;
      (vi) acts or omissions constituting a material failure to perform substantially
      and adequately the duties assigned to the Key Employee; (vii) any illegal act
      detrimental to the Company or its affiliates; or (viii) repeated failure to
      devote substantially all of the Key Employee’s business time and efforts to the
      Company if required by the Key Employee’s employment agreement; provided,
      however, that, if at any particular time the Key Employee is subject to an
      effective employment agreement with the Company, then, in lieu of the foregoing
      definition, “Cause” shall at that time have such meaning as may be specified in
      such employment agreement.

     

    (b)           Unless
      otherwise provided by the Committee, no portion of the 40% Annual Supplemental
      Bonus awarded in stock (in accordance with Section 4(d)) shall be transferred
      to
      the Key Employee if the Key Employee has a Termination of Service before three
      years from the date of the grant and such Shares shall be forfeited upon such
      termination.

     

    6.           Administration
      of the Plan; Amendment and Termination

     

    (a)           The
      Plan shall be administered by the Committee.

     

    (b)           The
      Committee will have full power to construe, interpret and administer the Plan
      and to amend and rescind the rules and regulations for its administration,
      with
      such interpretations to be conclusive and binding on all persons and otherwise
      accorded the maximum deference permitted by law.  In the event of any
      dispute or disagreement as to the interpretation of the Plan or of any rule,
      regulation or procedure, or as to any question, right or obligation arising
      from
      or related to the Plan, the decision of the Committee shall be final and binding
      upon all persons.

     

    (c)           The
      Committee will have discretion to determine whether a Bonus is established
      for
      particular Key Employees.  The Committee’s decisions and
      determinations under the Plan need not be uniform and may be made selectively
      among Key Employees, whether or not such Key Employees are similarly
      situated.

     

    (d)           No
      Key Employee shall have any claim to a bonus until it is actually granted under
      the Plan.  To the extent that any person acquires a right to receive
      payments from the Company under the Plan, such right shall be no greater than
      the right of an unsecured general creditor of the Company.  All
      payments provided for under the Plan shall be paid in cash from the general
      funds of the Company. The Plan does not create a fiduciary relationship between
      the Board or Committee on one hand, and employees, their beneficiaries or any
      other persons on the other.

     

    (e)           The
      Board or the Committee may at any time amend or terminate the
      Plan.  No amendment to or termination of the Plan may affect any Key
      Employee’s right to receive a Bonus which, before the amendment or termination,
      has been earned by the Key Employee and is payable without any contingency
      or
      other further action, unless the Key Employee consents to the
      change.

     

    7.           Beneficiaries

    

    Each
      Key
      Employee shall designate a beneficiary to receive such Key Employee’s Bonus, if
      any, in the event of death.  In the event of a failure to designate a
      beneficiary, amounts, if any, so payable to a Key Employee in the event of
      death
      shall be payable to the estate of such Key Employee.  The last
      designation received by the Company shall be controlling; provided, however,
      that no designation, or change or revocation thereof, shall be effective unless
      received by the Company prior to the Key Employee’s death, and in no event shall
      it be effective as of a date prior to such receipt.  If no such
      beneficiary designation is in effect at the time of a Key Employee’s death, or
      if no designated beneficiary survives the Key Employee or if such designation
      conflicts with law, the Key Employee’s estate shall be entitled to receive the
      amounts, if any, payable under the Plan upon his or her death.  If the
      Company is in doubt as to the right of any person to receive such amounts,
      the
      Company may retain such amounts, without liability for any interest thereon,
      until the Company determines the rights thereto, or the Company may pay such
      amounts into any court of appropriate jurisdiction and such payment shall be
      a
      complete discharge of the liability of the Company therefor.  No
      rights to Bonuses granted hereunder shall be transferable by a Key Employee
      otherwise than by will or the laws of descent and distribution.

     

    8.           Miscellaneous

    

    (a)           The
      Company may cause to be made, as a condition precedent to the payment of any
      Bonus, or otherwise, appropriate arrangements with the Key Employee or his
      or
      her beneficiary for the withholding of any federal, state, local or foreign
      taxes.

     

    (b)           Nothing
      in the Plan and no award of any Bonus which is payable immediately or in the
      future (whether or not future payments may be forfeited), will give any Key
      Employee a right to continue to be an employee of the Company or in any other
      way affect the right of the Company to terminate the employment of any Key
      Employee at any time.

     

    (c)           All
      elections, designations, requests, notices, instructions and other
      communications from a Key Employee, beneficiary or other person, required or
      permitted under the Plan, shall be in such form as is prescribed from time
      to
      time by the Committee.

     

    (d)           In
      the event that the Company’s fiscal year is changed, the Committee may make such
      adjustments to the Plan, as he or she may deem necessary or appropriate to
      effectuate the intent of the Plan.  All such adjustments, without the
      need for Plan amendment, shall be effective and binding for all Bonuses and
      otherwise for all purposes of the Plan.

     

    (e)           The
      use of captions in this Plan is for convenience.  The captions are not
      intended to provide substantive rights.

     

    
      	
              NYA
                675398.4bmnm10q11072007ex10-5.htm

    BIMINI
      CAPITAL MANAGEMENT, INC.

     

    (FORMERLY
      OPTEUM INC. AND

     

    FORMERLY
      BIMINI MORTGAGE MANAGEMENT, INC.)

     

    2003
      LONG
      TERM INCENTIVE COMPENSATION PLAN

     

    PHANTOM
      SHARE AWARD AGREEMENT

     

    AGREEMENT
      by and between Bimini Capital Management, Inc., a Maryland corporation (the
      “Company”) and (the “Grantee”), dated as of the ___ day of
      ___________, 200_.

     

    WHEREAS,
      the Company maintains the Bimini Capital Management, Inc. (formerly Opteum
      Inc.
      and formerly Bimini Mortgage Management, Inc.) 2003 Long Term Incentive
      Compensation Plan, as it may be amended from time to time (the “Plan”)
      (capitalized terms used but not defined herein shall have the respective
      meanings ascribed thereto by the Plan);

     

    WHEREAS,
      the Grantee is an employee of the Company or one of its
      Subsidiaries;

     

    WHEREAS,
      the Committee has determined that it is in the best interests of the Company
      and
      its shareholders to grant Phantom Shares to the Grantee subject to the terms
      and
      conditions set forth below.

     

    NOW,
      THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     

    1.           Grant
      of Phantom Shares. The Company hereby grants the Grantee _____________
      Phantom Shares.  The Phantom Shares are subject to the terms and
      conditions of this Agreement, and are also subject to the provisions of the
      Plan.  The Plan is hereby incorporated herein by reference as though
      set forth herein in its entirety.

     

    2.           Vesting.

     

    The
      Phantom Shares shall be subject to
      the following:

     

    
      	
               

            	
              (a)

            	
              The
                Phantom Shares shall vest, except as provided herein, if and as employment
                continues, pursuant to the following
                schedule:

            

    

     

    
      	
              Number
                of Phantom Shares

            	
              Vesting
                Date

            
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

    

     

    
      	
               

            	
              (b)

            	
              Upon
                Termination of Service, all Phantom Shares which have not vested
                prior to
                or concurrently with such Termination of Service shall thereupon,
                and with
                no further action, be forfeited by the
                Grantee.

            

    

     

    
      	
               

            	
              (c)

            	
              The
                Phantom Shares shall fully vest upon (i) Termination of Service by
                the
                Company without Cause or for Disability, (ii) Termination of Service
                by
                the Grantee for “Good Reason” (as defined below), within 30 days of the
                occurrence (or initial occurrence, in the case of a continuing condition)
                thereof, (iii) the Grantee's death while employed or (iv) the occurrence
                of a Change of Control while employed.  For these purposes,
                “Good Reason” shall mean, without the Grantee's prior consent, a
                material diminution by the Company in the Grantee's title, duties
                or
                responsibilities; provided that (i) if the Grantee wishes to terminate
                for
                Good Reason, the Grantee shall give notice to the Company, and (ii)
                Good
                Reason shall not be deemed to exist if the Company cures any such
                diminution within a reasonable period (which shall be at least 15
                days)
                after receipt of such notice.

            

    

     

    
      	
               

            	
              3.

            	
              Distributions

            

    

     

    Distributions
      to the Grantee attributable to the Grantee’s receipt of Phantom Shares hereunder
      will be distributed as soon as practicable after the first day of the month
      following the date on which the Phantom Shares vest.  Other than in
      accordance with an election permitted by the Committee, distributions made
      to
      the Grantee will be made as a single delivery of Common Stock.

     

    
      	
               

            	
              4.

            	
              Dividend
                Equivalent Rights.

            

    

     

    A
      Dividend Equivalent Right is hereby granted to the Grantee, consisting of the
      right to receive, with respect to each Phantom Share, cash in an amount equal
      to
      the cash dividend distributions paid in the ordinary course on a Share to the
      Company's common shareholders (each, a "Dividend Payment"), as set forth
      below.  For each Phantom Share then outstanding, whether or not then
      vested, if a cash dividend is payable in the ordinary course on a Share, the
      Company shall make a payment to the Grantee in an amount equal to the applicable
      Dividend Payment, on or about the date of the Dividend Payment; provided that
      the Grantee may elect, in accordance with such procedures as may be prescribed
      by the Committee, to receive, in lieu of such Dividend Payment, a number of
      additional Phantom Shares equal to (x) the otherwise payable Dividend Payment,
      divided by (y) the Fair Market Value of a Share on the date of the Dividend
      Payment.

     

    5.           Tax
      Withholding.

     

    Upon
      the
      making of a distribution in respect of Phantom Shares or Dividend Equivalent
      Rights, the Grantee may, in accordance with procedures set forth by the
      Committee, make a written election to have amounts (which may include Shares)
      withheld by the Company from the distribution otherwise to be made, or to
      deliver previously owned Shares (not subject to restrictions hereunder), in
      order to satisfy the liability for such withholding taxes.  In the
      event that the Grantee makes, and the Committee permits, such an election,
      any
      Shares so withheld or delivered shall have an aggregate Fair Market Value on
      the
      date of exercise sufficient to satisfy the applicable withholding
      taxes.

     

    6.           Miscellaneous.

     

    
      	
               

            	
              (a)

            	
              The
                value of a Phantom Share may decrease depending upon the performance
                of a
                Share from time to time.  Neither the Company nor the Committee,
                nor any other party associated with the Plan, shall be held liable
                for any
                decrease in the value of my Phantom Shares.  If the value of my
                Phantom Shares decreases, there will be a decrease in the value of
                what is
                distributed to the Grantee under the Plan and this
                Agreement.

            

    

     

    
      	
               

            	
              (b)

            	
              With
                respect to this Agreement, (i) the Phantom Shares are mere bookkeeping
                entries, (ii) the obligations of the Company under the Plan are unsecured
                and constitute a mere promise by the Company to make benefit payments
                in
                the future, (iii) to the extent that any person acquires a right
                to
                receive payments from the Company under the Plan, such right shall
                be no
                greater than the right of any general unsecured creditor of the Company,
                (iv) all payments under the Plan (including distributions of Shares)
                shall
                be paid from the general funds of the Company and (v) no special
                or
                separate fund shall be established or other segregation of assets
                made to
                assure such payments (except that the Company may in its discretion
                establish a mere bookkeeping reserve to meet its obligations under
                the
                Plan).  The Plan is intended to be an arrangement that is
                unfunded for tax purposes and for purposes of Title I of the Employee
                Retirement Income Security Act of 1974, as
                amended.

            

    

     

    
      	
               

            	
              (c)

            	
              The
                Grantee shall take whatever additional actions and execute whatever
                additional documents the Company may in its reasonable judgment deem
                necessary or advisable in order to carry out or effect one or more
                of the
                obligations or restrictions imposed on the Grantee pursuant to the
                express
                provisions of the Plan.  The issuance of shares of Common Stock,
                if applicable, and delivery of the certificate or certificates therefor,
                shall be subject to any delay necessary to complete (i) the listing
                of
                such Shares on any stock exchange upon which shares of the same class
                are
                then listed, (ii) such registration or other qualification of such
                Phantom
                Shares under any state or federal law, rule, or regulation as the
                Company
                may determine to be necessary or advisable, and (iii) the making
                of
                provision for the payment or withholding of any taxes required to
                be
                withheld pursuant to any applicable law, in respect of the receipt
                of such
                Common Stock.

            

    

     

    
      	
               

            	
              (d)

            	
              THIS
                AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
                FLORIDA, WITHOUT REFERENCE TO PRINCIPLES
                OF CONFLICT OF LAWS. The
                captions of this Agreement are not part of the provisions hereof
                and shall
                have no force or effect.  This Agreement may not be amended or
                modified except by a written agreement executed by the parties hereto
                or
                their respective successors and legal representatives.  The
                invalidity or unenforceability of any provision of this Agreement
                shall
                not affect the validity or enforceability of any other provision
                of this
                Agreement.

            

    

     

    
      	
               

            	
              (e)

            	
              The
                Committee may make such rules and regulations and establish such
                procedures for the administration of this Agreement as it deems
                appropriate.  Without limiting the generality of the foregoing,
                the Committee may interpret this Agreement, with such interpretations
                to
                be conclusive and binding on all persons and otherwise accorded the
                maximum deference permitted by law.   In the event of any
                dispute or disagreement as to the interpretation of this Agreement
                or of
                any rule, regulation or procedure, or as to any question, right or
                obligation arising from or related to this Agreement, the decision
                of the
                Committee shall be final and binding upon all
                persons.

            

    

     

    
      	
               

            	
              (f)

            	
              All
                notices hereunder shall be in writing, and if to the Company, shall
                be
                delivered to the Board or mailed to its principal office, addressed
                to the
                attention of the Board; and if to the Grantee, shall be delivered
                personally, sent by facsimile transmission or mailed to the Grantee
                at the
                address appearing in the records of the Company.  Such addresses
                may be changed at any time by written notice to the other party given
                in
                accordance with this paragraph
                6(f).

            

    

     

    
      	
               

            	
              (g)

            	
              The
                failure of the Grantee or the Company to insist upon strict compliance
                with any provision of this Agreement or the Plan, or to assert any
                right
                the Grantee or the Company, respectively, may have under this Agreement
                or
                the Plan, shall not be deemed to be a waiver of such provision or
                right or
                any other provision or right of this Agreement or the
                Plan.

            

    

     

    
      	
               

            	
              (h)

            	
              Nothing
                in this Agreement shall confer on the Grantee any right to continue
                in the
                employ or other service of the Company or its Subsidiaries or interfere
                in
                any way with the right of the Company or its Subsidiaries and its
                shareholders to terminate the Grantee’s employment or other service at any
                time.

            

    

     

    
      	
               

            	
              (i)

            	
              This
                Agreement contains the entire agreement between the parties with
                respect
                to the subject matter hereof and supersedes all prior agreements,
                written
                or oral, with respect thereto.

            

    

     

    IN
      WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as
      of
      the day and year first above written.

     

    BIMINI
      CAPITAL MANAGEMENT, INC.

     

    

     

    By:                                                                

    Name:

    Title:

    

    
 

     

    _______________________________________

     

    [Grantee]

     

    NYA
      764218.2

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