Document:

EX-10.4

 Exhibit 10.4 
 REGISTRATION RIGHTS AGREEMENT 
 This Registration Rights Agreement
(as amended from time to time, this “Agreement”) is dated as of September 24, 2012, and is between Ellington Residential Mortgage REIT, a Maryland real estate investment trust (the “Company”), Blackstone
Tactical Opportunities EARN Holdings L.L.C., a Delaware limited liability company (the “Sponsor”) and EMG Holdings, L.P., a Delaware limited partnership (“Ellington” and together with the Sponsor, the
“Investors”). 
 ARTICLE I 
 DEFINITIONS 
 The following terms shall have the following meanings:

 “Affiliates” means, with respect to any Person, an “affiliate” as defined in Rule 405 of the
regulations promulgated under the Securities Act and, with respect to any Sponsor Holder or Ellington Holder, (i) an “affiliate” as defined in Rule 405 of the regulations promulgated under the Securities Act, (ii) an
“affiliate” as defined in Rule 405 of the regulations promulgated under the Securities Act of any Person that is a general partner, manager, managing member, controlling holder or discretionary manager or advisor of any Sponsor Holder or
Ellington Holder and (iii) any investment fund, vehicle or holding company that is directly or indirectly managed or advised by any Affiliate of any Person that is a general partner, manager, managing member, controlling holder or discretionary
manager or advisor of any Sponsor Holder or Ellington Holder; provided, that notwithstanding the foregoing, an Affiliate shall not include any “portfolio company” (as such term is customarily used among institutional investors) of
any Person; and provided further, that at any time after the closing of the acquisition of Common Stock in accordance with the terms of the Investment and Securityholders’ Agreement, no Holder shall be deemed to be an
“Affiliate” of the Company or any of the other Holders or their Affiliates solely by reason of entering into, or the provisions of, this Agreement. 
 “Block Trade Offering” means an underwritten offering demanded by the Sponsor Holders which is a no-roadshow “block trade” take-down off of a shelf where pricing is expected no
later than the fourth business day after the related demand notice. 
 “Business Day” means any day other than
a Saturday, a Sunday or other day on which national banking associations in the State of New York are authorized by Law to be closed. 
 “Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of the shares of capital stock of a corporation, any and all ownership
interests in a Person (other than a corporation), and any and all warrants, options or other rights to purchase or acquire any of the foregoing. 
 “Closing Date” means the date hereof. 
 “Common
Stock” means the common shares of beneficial interest, par value $0.01 per share, of the Company (if the IPO Corporation is not formed) or the IPO Corporation (if IPO Corporation is formed), and any securities issued in respect thereof, or
in substitution therefor, in connection with any stock split, dividend or combination, or any reclassification, recapitalization, merger, consolidation, exchange or other similar reorganization. 

 “Company” has the meaning set forth in the preamble; provided, that
upon the occurrence of the IPO (as defined below), the parties will (if applicable) cause the IPO Corporation to become a party to this Agreement and assume responsibility for the obligations of the Company set forth herein. 

“Ellington Holders” means Ellington and its Permitted Transferees in accordance with the Investment and Security
Holders’ Agreement and Section 6.1 hereof. 
 “Exchange Act” means the Securities Exchange Act
of 1934, as amended, and the rules and regulations promulgated thereunder. 
 “Governmental Authority” means:
(i) any nation, state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any nature; (ii) the United States and other federal, state, local, municipal, foreign or other government or (iii) any
governmental or quasi-governmental authority of any nature (including any governmental division, department, agency, commission, instrumentality, official, organization, unit, body or entity and any court or other tribunal). 

“Holder” means (a) any of the Sponsor Holders and the Ellington Holders, and (b) each other holder of
Registrable Common Stock who becomes a party to this Agreement in accordance with the Investment and Securityholders’ Agreement and Section 6.1 hereof. For purposes of this Agreement, a Person will be deemed to be a holder of
Registrable Common Stock if it has beneficial ownership thereof (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act as in effect on the date of this Agreement). 

“Investment and Securityholders’ Agreement” means the Investment and Securityholders’ Agreement by and among
the Company, Ellington Residential Mortgage Management LLC and the Investors, dated as of September 24, 2012, as the same may be amended from time to time. 
 “IPO” means the first firm commitment underwritten public offering of common equity securities of the IPO Corporation pursuant to an effective registration statement under the Securities
Act (other than a registration statement on Forms S-4 or S-8 or any similar form). 
 “IPO Corporation” means
the Company, as the entity which undertakes the IPO, unless the Board of Directors of the Company otherwise determines that the “IPO Corporation” shall be any Subsidiary of the Company or another trust, corporation, limited liability
company, limited partnership, or any other entity, in which case the IPO Corporation shall be such other Person. 

“Permitted Transferee” means (A) with respect to any Holder other than Ellington or any of its Affiliates,
(i) any Affiliate of such Holder; (ii) any successor entity of such Holder; and (iii) any other Holder, and (B) with respect to any Holder that is Ellington or an Affiliate of Ellington, (i) any entity directly or indirectly
controlled by, or under common control with, Ellington, other than an investment fund or a vehicle of an investment fund (or investment funds) marketed or sold to external investors (or which the direct or indirect parent investment fund of

  
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such vehicle is marketed or sold to external investors) with respect to which Ellington or one of its Affiliates serves as the general partner, manager, managing member, controlling
securityholder or discretionary manager or advisor; and (ii) any individual who works for, or is employed by, Ellington and its subsidiaries, and any estate planning vehicle established for the primary benefit of such individual and/or his or
her spouse or issue. Notwithstanding the foregoing, prior to an IPO each Permitted Transferee must be a QEP. 

“Person” means any natural person, corporation, limited partnership, general partnership, limited liability company,
joint stock company, joint venture, association, company, estate, trust, bank trust company, land trust, business trust, or other organization, whether or not a legal entity, custodian, trustee-executor, administrator, nominee or entity in a
representative capacity and any government or agency or political subdivision thereof and any group consisting of one or more of the foregoing. 
 “QEP” means a “qualified eligible person” as defined in CFTC Regulation 4.7(a), or any successor rule or regulation promulgated by the U.S. Commodity Futures Trading Commission.

 “Register,” “registered” and “registration” means a registration effected
by preparing and filing a registration statement with the SEC in compliance with the Securities Act and applicable rules and regulations thereunder, and the declaration or ordering of effectiveness of such registration statement by the SEC.

 “Registrable Common Stock” means Common Stock and shares of Common Stock issuable upon conversion or
redemption of any Unit. 
 “shares” means shares or other units of Registrable Common Stock. Shares held by a
stockholder the certificate for which does not bear a Securities Act restrictive legend, which shares may be resold freely without registration under the Securities Act, will not be considered shares for purposes of this Agreement. 

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

“Securities Act” means the Securities Act of 1933, as amended, and any successor statute thereto and the rules and
regulations of the SEC promulgated thereunder. 
 “Shelf Registration Statement” means a registration statement
on Form S-3 under the Securities Act (or any successor form thereto) providing for the resale by the Holders from time to time pursuant to Rule 415 of any and all shares. 
 “Sponsor Holders” means the Sponsor and its Permitted Transferees in accordance with the Investment and Security Holders’ Agreement and Section 6.1 hereof. 

“Subsidiary” means with respect to any Person, (i) any corporation or other entity a majority of the Capital Stock
of which having ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions is at the time owned, directly or indirectly, with power to vote, by such initial Person or (ii) a partnership in
which such initial Person or any direct or indirect Subsidiary of such initial Person is a general partner. 

  
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 “underwritten offering” means the registered public offer and sale of
shares pursuant to a written underwriting agreement that by its terms imposes a “lock-up” obligation on the IPO Corporation and any of the Holders. 
 “Unit” means an ownership interest in Ellington Residential Mortgage LP, and any securities issued in respect thereof, or in substitution therefor, in connection with any stock split,
dividend or combination, or any reclassification, recapitalization, merger, consolidation, exchange or other similar reorganization. 
 ARTICLE II 
 DEMAND AND PIGGYBACK RIGHTS 

2.1 Right to Demand a Non-Shelf Registered Offering. Subject to Section 2.6 below, upon the demand of the Sponsor
Holders made at any time from time to time, the Company will facilitate in the manner described in this Agreement a non-shelf registered offering of shares of Registrable Common Stock requested by the Sponsor Holders and, subject to Sections
2.2 and 2.6, all other Holders with respect to which the Company has received written request for inclusion in such offering. In any case, a demand by the Sponsor Holders for a non-shelf registered offering may not be made unless the
shares requested to be sold by the Sponsor Holders in such offering have an aggregate market value (based on the most recent closing price of the Common Stock at the time of the demand) of at least $50 million. Any demanded non-shelf registered
offering may, at the Company’s option, include shares of Common Stock to be sold by the Company for its own account and will also include shares of Registrable Common Stock to be sold by Holders that exercise their related piggyback rights on a
timely basis, subject to the limitations in Sections 2.2 and 2.6. 
 2.2 Right to Piggyback on a Non-Shelf
Registered Offering. Subject to Section 2.6 below, in connection with any registered offering of shares of Registrable Common Stock covered by a non-shelf registration statement (whether pursuant to the exercise of demand rights or
at the initiative of the Company), any Holders that are Holders at the time may exercise piggyback rights in accordance with this Agreement to have included in such offering shares of Registrable Common Stock held by them, subject to the transfer
limitations set forth in the Investment and Securityholders’ Agreement and Section 2.6(e) hereof. The Company will facilitate in the manner described in this Agreement any such non-shelf registered offering. 

2.3 Right to Demand and be Included in a Shelf Registration. Subject to Section 2.6 below, upon the demand of the
Sponsor Holders, made at any time and from time to time when the Company is eligible to utilize Form S-3 or a similar or successor form to register shares in a secondary offering on a delayed or continuous basis in accordance with Rule 415, the
Company will facilitate in the manner described in this Agreement a shelf registration of shares of Registrable Common Stock held by the Sponsor Holders. Any shelf registration filed by the Company covering shares of the Sponsor Holders (whether
pursuant to a Sponsor Holder demand or at the initiative of the Company) will cover shares of Registrable Common Stock held by the other Holders up to the highest common percentage (i.e., the same percentage will apply to the Sponsor Holders and all
other Holders) of (1) their direct purchases of shares of Registrable Common Stock from the Company or (2) the number of shares of Registrable 

  
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Common Stock that their direct purchases of units of partnership interest of Ellington Residential Mortgage LP are convertible into or redeemable for, as applicable, as may be specified by the
Sponsor Holders, and solely to the extent otherwise permitted under this Agreement. 
 2.4 Demand and Piggyback Rights for
Shelf Takedowns. Subject to Section 2.6 below, upon the demand of the Sponsor Holders made in accordance with this Agreement, the Company will facilitate in the manner described in this Agreement a “takedown” of shares of
Registrable Common Stock off of an effective shelf registration statement. In connection with any shelf takedown that will involve an underwritten offering (whether pursuant to the exercise of such demand rights or at the initiative of the Company),
any Holders that are Holders at the time may exercise piggyback rights to have included in such takedown shares of Registrable Common Stock held by them that are registered on such shelf; provided that the transfer of shares of Registrable
Common Stock included in such shelf registration statement shall be subject to the transfer limitations set forth in the Investment and Securityholders’ Agreement and Section 2.6 hereof. Notwithstanding the foregoing, the Sponsor
Holders may not demand a shelf takedown for an underwritten offering unless the shares requested to be sold by the Sponsor Holders in such takedown have an aggregate market value (based on the most recent closing price of the Registrable Common
Stock at the time of the demand) of at least $35 million. 
 2.5 Right to Add Shares to a Shelf. Upon the written
request of the Sponsor Holders made in accordance with this Agreement, the Company will file and seek the effectiveness of a post-effective amendment to an existing shelf in order to register additional shares on such shelf. All Holders will have an
opportunity to include in such “re-upped” shelf any unregistered shares of Common Stock then held by such Holders. Notwithstanding the foregoing, the Company shall not be obligated to file any post-effective amendment pursuant to this
Section 2.5 more than once in any twelve month period. 
 2.6 Limitations on Demand and Piggyback Rights.

 (a) Exercise of Rights. Notwithstanding anything contained herein to the contrary, in no event shall any Holder have
any of the registration, offering or sale rights contained herein (whether demand rights, piggyback rights, non-shelf rights, shelf rights or otherwise) at any time prior to the one year anniversary of the closing of the IPO. 

(b) Lock-up. Any demand for the filing of a registration statement or for a registered offering or takedown will be subject to the
constraints of any applicable lockup arrangements, and such demand must be deferred until such lockup arrangements no longer apply. If a demand has been made for a non-shelf registered offering or for an underwritten offering off of a shelf, no
further demands may be made so long as the related offering is still being pursued. 
 (c) Delay in Filing; Suspension of
Registration. The Company may postpone the filing or initial effectiveness of, or suspend use of, a demanded registration statement or suspend the use or effectiveness of any shelf registration statement for a reasonable “blackout
period” not in excess of 90 days if the board of trustees (or board of directors, managers or similar governing body) of the Company determines that such registration or offering could materially interfere with a bona fide business or financing
transaction of the Company or is 

  
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reasonably likely to require premature disclosure of information, the premature disclosure of which is reasonably likely to adversely affect the Company. The blackout period will end upon the
earlier to occur of, (i) in the case of a bona fide business or financing transaction, a date not later than 90 days from the date such deferral commenced, and (ii) in the case of disclosure of non-public information, the earlier to occur
of (x) the second business day following filing by the Company of its next succeeding Form 10-K or Form 10-Q, or (y) the date upon which such information is otherwise disclosed. The Company shall not be permitted to exercise a demand
suspension pursuant to this Section 2.6(c) more than once during any 12-month period. In the event of any such blackout period, the Sponsor Holders that requested the demand registration that is suspended by the operation of this
Section 2.6(c) shall be entitled to withdraw such request and, if such withdrawal is with respect to a demand registration, such demand registration shall not count as one of the demand registrations permitted hereunder. 

(d) Limitations on Demands and Underwritten Takedowns. The Sponsor Holders shall have the right to request in the aggregate up to
two non-shelf registered offerings and an unlimited number of shelf takedowns; provided that notwithstanding the foregoing, (1) in no event shall the Sponsor Holders be permitted to request more than two shelf takedowns that are
underwritten offerings during any 12-month period and (2) no more than one shelf take down during any 12-month period shall be an underwritten offering other than a Block Trade Offering. 

(e) Limitations. (1) Notwithstanding anything in this Agreement to the contrary, the Holders will not have piggyback or other
registration rights with respect to registered primary offerings by the Company (i) covered by a Form S-4 or S-8 registration statement or a successor form to such Forms, (ii) where the securities are not being sold for cash or
(iii) where the offering is a bona fide offering of securities other than Registrable Common Stock, even if such securities are convertible into or exchangeable or exercisable for Common Stock. 

(2) Notwithstanding anything in this Agreement to the contrary, with respect to any registration or offering hereunder in respect of
which the Holders exercise of piggyback rights or otherwise participate, shares held by the Holders shall not be permitted to be transferred in any respect to the extent that (i) the transfer of such shares would not be in conformity with the
transfer limitations set forth in the Investment and Securityholders’ Agreement or (ii) the securities to be transferred are not being converted into shares of Common Stock in connection with the effective date of such transfer.

 ARTICLE III 
 NOTICES, CUTBACKS AND OTHER MATTERS 
 3.1 Notifications Regarding
Registration Statements. In order for one or more Sponsor Holders to exercise their right to demand that a registration statement be filed, they must so notify the Company in writing indicating the number of shares sought to be registered and
the proposed plan of distribution. The Company will keep the Holders who hold shares contemporaneously apprised of any registration, whether pursuant to a Sponsor Holder demand or otherwise, with respect to which a piggyback opportunity is
available, such that the Holders have notice of a piggyback opportunity no later than forty-eight hours prior to the notification deadlines prescribed in Section 3.2 below. Pending any required public disclosure and subject to applicable
legal requirements, the parties will maintain the confidentiality of these discussions. 

  
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 3.2 Notifications Regarding Registration Piggyback Rights. Any Holder wishing to
exercise its piggyback rights under this Agreement with respect to a non-shelf registration statement must notify the Company and the other Holders who hold shares of the number of shares it seeks to have included in such registration statement.
Such notice must be given as soon as practicable, but in no event later than 5:00 pm, New York City time (subject to Section 3.1), on the second trading day prior to (i) if applicable, the date on which the preliminary prospectus
intended to be used in connection with pre-effective marketing efforts for the relevant offering is expected to be finalized, and (ii) in any case, the date on which the pricing of the relevant offering is expected to occur. 

3.3 Notifications Regarding Demanded Shelf Takedowns that Involve Underwritten Offerings. 

(a) In connection with the Sponsor Holders exercising their demand rights for a shelf takedown, the Company will keep the Holders who
hold shares contemporaneously apprised of all pertinent aspects of any such prospective underwritten offering in order that they may have a reasonable opportunity to exercise their related piggyback rights, to the extent applicable. Without limiting
the Company’s obligation as described in the preceding sentence, having a reasonable opportunity requires that the Holders who hold shares of Registrable Common Stock be notified by the Company of an anticipated shelf takedown involving an
underwritten offering (whether pursuant to a demand made by the Sponsor Holders or made at the Company’s own initiative) with respect to which piggyback rights are available, subject to Section 3.1, no later than 5:00 pm, New York
City time, on (i) if applicable, the second trading day prior to the date on which the preliminary prospectus or prospectus supplement intended to be used in connection with pre-pricing marketing efforts for such takedown is finalized, and
(ii) in all cases, the second trading day prior to the date on which the pricing of the relevant underwritten offering occurs. 
 (b) Any Holder wishing to exercise its piggyback rights with respect to a shelf takedown involving an underwritten offering must notify the Company and the other Holders who hold shares of the number of
shares it seeks to have included in such takedown. Such notice must be given as soon as practicable, but in no event, subject to Section 3.1, later than 5:00 pm, New York City time, on (i) if applicable, the trading day prior to the
date on which the preliminary prospectus or prospectus supplement intended to be used in connection with marketing efforts for the relevant offering is expected to be finalized, and (ii) in all cases, the trading day prior to the date on which
the pricing of the relevant takedown occurs. 
 (c) Pending any required public disclosure and subject to applicable legal
requirements, the parties will maintain appropriate confidentiality of their discussions regarding a prospective underwritten takedown. 
 3.4 Plan of Distribution, Underwriters and Counsel. In the event of an underwritten offering through a non-shelf registration statement or through a shelf, the Company will be entitled to determine
the plan of distribution and select the managing underwriters for such 

  
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offering; provided, however, that if the majority of shares proposed to be sold in any such underwritten offering are to be sold by the Sponsor Holders, the Sponsor Holders holding a majority of
the shares to be included in such offering by all Sponsor Holders will be entitled to determine the plan of distribution and managing underwriters with the approval of the Company, with such approval not to be unreasonably conditioned, withheld or
delayed. In the case of a shelf registration statement, the plan of distribution will provide as much flexibility as is reasonably possible, including with respect to resales by transferee Holders. Notwithstanding the foregoing, in the event of any
Block Trade Offering the Sponsor Holders will have the right to select the underwriters. 
 3.5 Cutbacks. 

(a) If the managing underwriters advise the Company and the selling Holders that, in their opinion, the number of shares of Registrable
Common Stock requested to be included in an underwritten offering exceeds the amount that can be sold in such offering without adversely affecting the distribution of the shares of Registrable Common Stock being offered, such offering will include
only the number of shares of Registrable Common Stock that the underwriters advise can be sold in such offering (the “Cutback Amount”). In the event of an offering initiated by the Company, the Registrable Common Stock to be
included in such underwritten offering will be allocated as follows: (A) 75% of the Cutback Amount to the Company for Registrable Common Stock proposed to be registered by the Company for its own account and (B) 25% of the Cutback Amount
to the Holders requesting to be included in such registration which shall be allocated among all Holders pro rata based on the number of Registrable Common Stock shares proposed to be included in such offering by each such Holder; provided
that if the aggregate number of Registrable Common Stock shares offered for registration by the Company or the Holders is less than 75% or 25%, respectively, of the Cutback Amount, the remainder of the Cutback Amount shall be allocated to the
Company or the Holders, as applicable. In the event of a Demand Registration, and in all other cases where the Company is not initiating the offering but is proposing to register and sell Registrable Common Stock for its own account in such
underwritten offering or is not proposing to register and sell Registrable Common Stock for its own account in such offering, the Registrable Common Stock to be included in such offering will be allocated as follows: (1) in the event that the
Company’s market capitalization is $500,000,000 or less, then (A) up to 50% of the Cutback Amount to the Holders requesting to be included in such registration which shall be allocated among all Holders pro rata based on the number
of Registrable Common Stock shares offered for registration by each such Holder and (B) no less than 50% of the Cutback Amount to the Company for Registrable Common Stock proposed to be registered by the Company for its own account; provided
that if the aggregate number of Registrable Common Stock shares offered for registration by the Company is less than 50% of the Cutback Amount, the remainder of the Cutback Amount shall be allocated to the Holders; and (2) in the event that
the Company’s market capitalization is greater than $500,000,000, then (A) 75% of the Cutback Amount to the Company for Registrable Common Stock proposed to be registered by the Company for its own account and (B) 25% of the Cutback
Amount (or such lesser amount remaining) to the Holders requesting to be included in such registration which shall be allocated among all Holders pro rata based on the number of Registrable Common Stock shares proposed to be included in such
offering by each such Holder; provided that if the aggregate number of Registrable Common Stock shares offered for registration by the Company or the Holders is less than 75% or 25%, respectively, of the Cutback Amount, the remainder of the
Cutback Amount shall be allocated to the Company or the Holders, as applicable. 

  
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 3.6 Withdrawals. Even if shares held by a Holder have been part of a registered
underwritten offering, such Holder may, no later than the time at which the public offering price and underwriters’ discount are determined with the managing underwriter, decline to sell all or any portion of the shares being offered for its
account. 
 3.7 Lockup Agreements. In connection with any underwritten offering of Registrable Common Stock, the Company
and each Holder agrees (in the case of Holders, with respect to Registrable Common Stock respectively held by them) to be bound by the applicable underwriting agreement’s lockup restrictions (which must apply in like manner to all of them) that
are agreed to (a) by the Company, if a majority of the shares of Registrable Common Stock being sold in such offering are being sold for its account, and (b) by Holders holding a majority of shares being sold by all Holders, if a majority
of the shares of Registrable Common Stock being sold in such offering are being sold by Holders. The lockup restrictions will be for a customary period specified by the managing underwriters or underwriters beginning on the date upon which notice of
the prospective underwritten offering is delivered in accordance with this Agreement and continuing for a period not to exceed (i) 180 days following the Initial Public Offering, and (ii) 90 days following any subsequent registered public
sale of Registrable Common Stock by the Company (subject in each case to customary extensions) except, in each case, as otherwise agreed by any Holder. The Company shall cause its executive officers and directors (and managers, if applicable) and
shall use commercially reasonable efforts to cause other holders of Registrable Common Stock who beneficially own (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act as in effect on the date of this Agreement) 5% or more of the
Registrable Common Stock participating in such offering, to enter into lockup agreements that contain restrictions that are no less restrictive than the restrictions contained in the lockup agreements executed by the Holders. 

3.8 Expenses. (a) All expenses incurred in connection with any registration statement or registered offering covering shares
held by Holders, including, without limitation, all registration and filing fees, printing expenses, fees and disbursements of counsel (excluding, for the avoidance of doubt, all costs and expenses of the Sponsor Holders) to the Company and of the
independent certified public accountants, and the expense of qualifying such shares under state blue sky laws (all such expenses being herein called “Registration Expenses”), will be borne by the Company. However,
underwriters’, brokers’ and dealers’ discounts, selling commissions and stock transfer taxes applicable to shares sold for the account of a Holder will be borne by such Holder. 

(b) The obligation of the Company to bear expenses described in Section 3.8(a) shall apply irrespective of whether a
registration or offering, once properly demanded, is withdrawn or suspended or is converted to another form of registration or offering, irrespective of when any of the foregoing shall occur; provided, however, that Registration Expenses for any
(x) Registration Statement or offering withdrawn at the request of a Holder (unless withdrawn following the postponement of a filing or offering by the Company in accordance with Section 2.6(c)) or (y) any supplements or
amendments to a Registration Statement or Prospectus resulting from a misstatement furnished to the Company by a Holder shall be borne by such Holder. 

  
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 ARTICLE IV 
 FACILITATING REGISTRATIONS AND OFFERINGS 
 4.1 General. If the
Company becomes obligated under this Agreement to facilitate a registration and offering of shares on behalf of Holders, the Company will do so with the same degree of care and dispatch as would reasonably be expected in the case of a registration
and offering by the Company of Common Stock for its own account. Without limiting this general obligation, the Company will fulfill its specific obligations as described in this Article IV. 

4.2 Registration Statements. In connection with each registration statement that is demanded by the Sponsor Holders or as to which
piggyback rights otherwise apply, the Company will: 
 (a) As promptly as reasonably practicable (but in no event later than 60
days after a request for a demand registration on Form S-11 (or similar or successor registration statement) or 30 days after a request for a demand registration on Form S-3 (or similar or successor registration statement)) prepare and file with the
SEC a registration statement covering the applicable shares, (ii) file supplements and amendments thereto as warranted, (iii) seek the effectiveness thereof, and (iv) file with the SEC prospectuses and prospectus supplements as may be
required, all in consultation with the selling Holders and as reasonably necessary in order to permit the offer and sale of the such shares in accordance with the applicable plan of distribution; 

(b) (1) within a reasonable time prior to the filing of any registration statement, any prospectus, any amendment to a registration
statement, amendment or supplement to a prospectus, provide copies of such documents to the selling Holders and to the underwriter or underwriters of an underwritten offering, if applicable, and to their respective counsel as the underwriters may
reasonably request; fairly consider such reasonable changes in any such documents prior to or after the filing thereof as the counsel to the selling Holders or the underwriter or the underwriters may request; and make such of the representatives of
the Company as shall be reasonably requested by the selling Holders or any underwriter available for discussion of such documents; 
 (2) within a reasonable time prior to the filing of any document which is to be incorporated by reference into a registration statement or a prospectus, provide copies of such document to counsel for the
selling Holders and underwriters; fairly consider such reasonable changes in such document prior to or after the filing thereof as counsel for such Holders or such underwriter shall request; and make such of the representatives of the Company as
shall be reasonably requested by such counsel available for discussion of such document; 
 (c) use all reasonable efforts to
cause each registration statement and the related prospectus and any amendment or supplement thereto, as of the effective date of such registration statement, amendment or supplement and during the distribution of the registered shares (x) to
comply in all material respects with the requirements of the Securities Act and the 

  
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rules and regulations of the SEC and (y) not to 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 not misleading; 
 (d) notify each selling Holder promptly, and, if requested by such Holder, confirm such
advice in writing, (i) when a registration statement has become effective and when any post-effective amendments and supplements thereto become effective if such registration statement or post-effective amendment is not automatically effective
upon filing pursuant to Rule 462, (ii) of any request by the SEC or any other federal or state securities authority for amendments or supplements to a registration statement, related prospectus or for additional information (other than
information that is clerical in nature or otherwise minor); (iii) of the issuance by the SEC or any other federal or state securities authority of any stop order, injunction or other order or requirement suspending the effectiveness of a
registration statement or the initiation or threatening of any proceedings for that purpose, (iv) if, between the effective date of a registration statement and the closing of any sale of securities covered thereby pursuant to any agreement to
which the Company is a party, the representations and warranties of the Company contained in such agreement cease to be true and correct in all material respects or if the Company receives any notification with respect to the suspension of the
qualification of the shares for sale in any jurisdiction or the initiation of any proceeding for such purpose, (v) of the existence of any fact or the happening of any event during the period a prospectus is required to be delivered with
respect to any offering by such selling Holder as a result of which such prospectus 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, and (vi) of the determination by counsel of the Company that a post-effective amendment to a registration statement is required; 
 (e) furnish counsel for each underwriter, if any, and for the selling Holders copies of any correspondence with the SEC or any state securities authority relating to the registration statement or
prospectus; 
 (f) otherwise use all reasonable efforts to comply with all applicable rules and regulations of the SEC,
including making available to its security holders an earnings statement covering at least 12 months which shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder (or any similar provision then in force);

 (g) use all reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a registration statement
at the earliest possible time; 
 (h) within the deadlines specified by the Securities Act, make all required filing fees in
respect of any registration statement or prospectus under this Agreement (and any offering covered thereby). 

  
 11 

 4.3 Non-Shelf Registered Offerings and Shelf Takedowns. In connection with any
non-shelf registered offering, filing of a shelf registration or shelf takedown that is demanded by the Sponsor Holders or as to which piggyback rights otherwise apply, the Company will, as applicable: 

(a) cooperate with the selling Holders and the lead underwriter or managing underwriter of an underwritten offering of shares, if any, to
facilitate the timely preparation and delivery of certificates representing the shares to be sold and not bearing any restrictive legends; and enable such shares to be in such denominations (consistent with the provisions of the governing documents
thereof) and registered in such names as the selling Holders or the sole underwriter or managing underwriter of an underwritten offering of shares, if any, may reasonably request at least three days prior to any sale of such shares; 

(b) furnish to each selling Holder and to each underwriter, if any, participating in the relevant offering, without charge, as many
copies of the applicable prospectus, including each preliminary prospectus, and any amendment or supplement thereto and such other documents as such Holder or underwriter may reasonably request in order to facilitate the public sale or other
disposition of the shares; the Company hereby consents to the use of such prospectus, including each preliminary prospectus, by each such Holder and underwriter in connection with the offering and sale of the shares covered by the prospectus or the
preliminary prospectus; 
 (c) (i) use all reasonable efforts to register or qualify the shares being offered and sold, no later
than the time the applicable registration statement becomes effective, under all applicable state securities or “blue sky” laws of such jurisdictions as each underwriter, if any, or any Holder holding shares covered by a registration
statement, shall reasonably request; (ii) use all reasonable efforts to keep each such registration or qualification effective during the period such registration statement is required to be kept effective; and (iii) do any and all other
acts and things which may be reasonably necessary or advisable to enable each such underwriter, if any, and selling Holder to consummate the disposition in each such jurisdiction of such shares sought to be sold by such Holder; provided,
however, that the Company shall not be obligated to (A) qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified, (B) consent to be subject to general service of process
(other than service of process in connection with such registration or qualification or any sale of shares in connection therewith) in any such jurisdiction, or (C) subject itself to taxation in any such jurisdiction; 

(d) cause all shares being sold to be qualified for inclusion in or listed on The New York Stock Exchange, the NASDAQ National Market or
any other securities exchange on which Common Stock issued by the Company are then so qualified or listed if so requested by the Holders, or if so requested by the underwriter or underwriters of an underwritten offering of shares, if any;

 (e) cooperate and assist in any filings required to be made with the Financial Industry Regulatory Authority and in the
performance of any due diligence investigation by any underwriter in an underwritten offering; 

  
 12 

 (f) use all reasonable efforts to facilitate the distribution and sale of any shares to be
offered pursuant to this Agreement, including without limitation by making road show presentations, holding meetings with and making calls to potential investors and taking such other actions as shall be reasonably requested by the selling Holders
or the lead managing underwriter of an underwritten offering; and 
 (g) enter into customary agreements (including, in the case
of an underwritten offering, underwriting agreements in customary form, and including provisions with respect to indemnification and contribution in customary form and consistent with the provisions relating to indemnification and contribution
contained herein) and take all other customary and appropriate actions in order to expedite or facilitate the disposition of such shares and in connection therewith: 

1. make such representations and warranties to the selling Holders and the underwriters, if any, in form, substance and
scope as are customarily made by issuers to underwriters in similar underwritten offerings; 
 2. use all
reasonable efforts to obtain opinions of counsel to the Company and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the lead managing underwriter, if any) addressed to each selling
Holder and the underwriters, if any, covering the matters customarily covered in opinions requested in sales of securities or underwritten offerings and such other matters as may be reasonably requested by such Holders and underwriters; 

3. use all reasonable efforts to obtain “cold comfort” letters and updates thereof from the Company’s
independent certified public accountants addressed to the selling Holders, if permissible, and the underwriters, if any, which letters shall be customary in form and shall cover matters of the type customarily covered in “cold comfort”
letters to underwriters in connection with primary underwritten offerings; and 
 4. to the extent requested and
customary for the relevant transaction, enter into a securities sales agreement with the Holders providing for, among other things, the appointment of such representative as agent for the selling Holders for the purpose of soliciting purchases of
shares, which agreement shall be customary in form, substance and scope and shall contain customary representations, warranties and covenants. 
 The above shall be done at such times as customarily occur in similar registered offerings or shelf takedowns. 
 4.4 Due Diligence. In connection with each registration and offering of shares to be sold by Holders, the Company will, in accordance with customary practice, make available for inspection by
representatives of the selling Holders and underwriters and any counsel or accountant retained by such Holder or underwriters all relevant financial and other records, pertinent corporate documents and properties of the Company and cause appropriate
officers, managers and employees of the Company to supply with alacrity all information reasonably requested by any such representative, underwriter, counsel or accountant in connection with their due diligence exercise. 

  
 13 

 4.5 Information from Holders. Each Holder that holds shares of Registrable Common
Stock covered by any registration statement will furnish to the Company such information regarding itself as is required to be included in the registration statement, the ownership of shares of Registrable Common Stock by such Holder and the
proposed distribution by such Holder of such shares as the Company may from time to time reasonably request in writing. 
 4.6
Notice to Discontinue. Each Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 4.2(d)(v), such Holder shall forthwith discontinue disposition of shares
until such Holder’s receipt of the copies of the supplemented or amended prospectus and, if so directed by the Company, such Holder shall deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then
in such Holder’s possession, of the prospectus covering such shares which is current at the time of receipt of such notice. If the Company shall give any such notice, the Company shall extend the period during which such registration statement
shall be maintained effective pursuant to this Agreement by the number of days during the period from and including the date of the giving of such notice to and including the date when sellers of such shares under such registration statement shall
have received copies of the supplemented or amended prospectus. 
 ARTICLE V 

INDEMNIFICATION 
 5.1 Indemnification by the Company. In the event of any registration under the Securities Act by any registration statement pursuant to rights granted in this Agreement of shares held by Holders,
the Company will hold harmless each such Holder whose shares shall be registered thereby, and each of their respective partners (general and limited), managers, directors, officers, Affiliates, employees, fiduciaries and agents, each underwriter of
such securities and each other Person, if any, who controls any such Holder or such underwriter (each such indemnified party being a third party beneficiary of the rights provided by this Article V) within the meaning of the Securities Act,
against any losses, claims, damages, or liabilities (including reasonable legal fees and costs of court), joint or several, to which such Holders or such underwriter or controlling Person may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages, or liabilities (or any actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact (i) contained, on its effective date, in any
registration statement under which such securities were registered under the Securities Act or any amendment or supplement to any of the foregoing, or which arise out of or are based upon the omission or alleged omission to state a material fact
required to be stated therein or necessary to make the statements therein not misleading or (ii) contained in any preliminary prospectus, if used prior to the effective date of such registration statement, in the final prospectus (as amended or
supplemented if the Company shall have filed with the SEC any amendment or supplement to the final prospectus) or which arise out of or are based upon the omission or alleged omission (if so used) to state a material fact required to be stated in
such prospectus or necessary to make the statements in such prospectus, in the light of the circumstances under which they were made, not misleading; and 

  
 14 

 
will reimburse such Holders and each such underwriter and each such controlling Person for any legal or any other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, or liability; provided, however, that the Company shall not be liable to any Holder or its underwriters or controlling Persons in any such case to the extent that any such loss, claim, damage, or
liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in such registration statement or such amendment or supplement, in reliance upon and in conformity with information
furnished in writing to the Company by such Holders or such underwriter expressly for use therein or caused by such Holder’s failure to deliver to such Holder’s immediate purchaser a copy of the prospectus or any amendment or supplement
thereto (if the same was required by applicable law to be so delivered) after the Company furnished such Holder with a sufficient number of copies of the same. 
 5.2 Indemnification by Holders. In connection with any offering in which a Holder is participating pursuant to this Agreement, such Holder will indemnify and hold harmless (in the same manner and
to the same extent as set forth in Section 5.1) the Company, each director, trustee, employee, Affiliate, agent, officer or manager of the Company, and any Person who controls the Company within the meaning of the Securities Act,
(i) with respect to any statement or omission from such registration statement, prospectus, or any amendment or supplement thereto, to the extent such statement or omission was made in reliance upon and in conformity with information furnished
in writing to the Company by such Holders or such underwriter expressly for use therein and (ii) with respect to compliance by Holders with applicable laws in effecting the sale or other disposition of the securities covered by such
registration statement. 
 5.3 Indemnification Procedures. Promptly after receipt by an indemnified party of notice of
the commencement of any action involving a claim referred to in the preceding Sections of this Article V, the indemnified party will, if a resulting claim is to be made or may be made against and indemnifying party, give written notice to the
indemnifying party of the commencement of the action. The failure of any indemnified party to give notice shall not relieve the indemnifying party of its obligations in this Article V, except to the extent that the indemnifying party is
actually materially prejudiced by the failure to give notice. If any such action is brought against an indemnified party, the indemnifying party will be entitled to participate in and to assume the defense of the action with counsel reasonably
satisfactory to the indemnified party, and after notice from the indemnifying party to such indemnified party of its election to assume the defense of the action, the indemnifying party will not be liable to such indemnified party for any legal or
other expenses incurred by the latter in connection with the action’s defense. An indemnified party shall have the right to employ separate counsel in any action or proceeding and participate in the defense thereof, but the fees and expenses of
such counsel shall be at such indemnified party’s expense unless (a) the employment of such counsel has been specifically authorized in writing by the indemnifying party, (ii) the indemnifying party has not assumed the defense and
employed counsel reasonably satisfactory to the indemnified party within 30 days after notice of any such action or proceeding, or (iii) the named parties to any such action or proceeding (including any impleaded parties) include the
indemnified party and the indemnifying party and the indemnified party shall have been advised by such counsel that there may be one or more legal defenses available to the indemnified party that are not available to the indemnifying party or which
may conflict with those available to another indemnified party (in which case the indemnifying party shall not have the right to assume the 

  
 15 

 
defense of such action or proceeding on behalf of the 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 reasonable fees and expenses of more than one separate firm of attorneys (in addition to all local
counsel which is necessary, in the good faith opinion of both counsel for the indemnifying party and counsel for the indemnified party in order to adequately represent the indemnified parties) for the indemnified party and that all such fees and
expenses shall be reimbursed as they are incurred upon written request and presentation of invoices. Whether or not a defense is assumed by the indemnifying party, the indemnifying party will not be subject to any liability for any settlement made
without its consent. No indemnifying party will consent to entry of any judgment or enter into any settlement which (i) does not include as an unconditional term the giving by the claimant or plaintiff, to the indemnified party, of a release
from all liability in respect of such claim or litigation or (ii) involves the imposition of equitable remedies or the imposition of any non-financial obligations on the indemnified party. 

5.4 Contribution. If the indemnification required by this Article V from the indemnifying party is unavailable to or
insufficient to hold harmless an indemnified party in respect of any indemnifiable losses, claims, damages, liabilities, or expenses (other than by reason of the terms of this Agreement), then the indemnifying party shall contribute to the amount
paid or payable by the indemnified party as a result of such losses, claims, damages, liabilities, or expenses in such proportion as is appropriate to reflect (i) the relative benefit of the indemnifying and indemnified parties and (ii) if
the allocation in clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect the relative benefit referred to in clause (i) and also the relative fault of the indemnified and indemnifying parties, in
connection with the actions which resulted in such losses, claims, damages, liabilities, or expenses, as well as any other relevant equitable considerations. The relative fault of the indemnifying party and the indemnified party shall be determined
by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact, has been made by, or relates to information supplied by, such indemnifying party or parties, and the
parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such action. The amount paid or payable by a party as a result of the losses, claims, damage, liabilities, and expenses referred to above shall be
deemed to include any legal or other fees or expenses reasonably incurred by such party in connection with any investigation or proceeding. The Company and Holders agree that it would not be just and equitable if contribution pursuant to this
Section 5.4 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to in the prior provisions of this Section 5.4. 

Notwithstanding the provisions of this Section 5.4, no indemnifying party shall be required to contribute any amount in
excess of the amount by which the net proceeds received by the indemnifying party exceeds the amount of any damages which the indemnifying party has otherwise been required to pay by reason of an untrue statement or omission. 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 a fraudulent misrepresentation. 

  
 16 

 ARTICLE VI 
 OTHER AGREEMENTS 
 6.1 Transfer of Rights. 

(a) Any Holder may transfer all or any portion of its rights under this Agreement to any transferee of shares held by such Holder so long
as such transfer is in compliance with the Investment and Securityholders’ Agreement. Any such transfer of registration rights will be effective upon receipt by the Company of (i) written notice from such Holder stating the name and
address of any transferee and identifying the number of shares with respect to which rights under this Agreement are being transferred and the nature of the rights so transferred, and (ii) a written agreement from such transferee to be bound by
the terms of this Agreement. However, if such transferees are receiving shares through an in-kind distribution, no such written agreement is required, and such in-kind transferees will, as transferee Holders, be entitled as third party beneficiaries
to the rights under this Agreement so transferred and subject to the obligations of Holders hereunder as a condition to receiving such in-kind distribution. The Company and the transferring Holder will notify the other Holders as to who the
transferees are and the nature of the rights so transferred. 
 (b) In the event the Company engages in a merger or
consolidation in which the shares are converted into securities of another company, appropriate arrangements will be made so that the registration rights provided under this Agreement continue to be provided to Holders by the issuer of such
securities. To the extent such new issuer, or any other company acquired by the Company in a merger or consolidation, was bound by registration rights obligations that would conflict with the provisions of this Agreement, the Company will use its
best efforts to modify any such “inherited” registration rights obligations so as not to interfere in any material respects with the rights provided under this Agreement. 

6.2 Limited Liability. Notwithstanding any other provision of this Agreement, neither the Holders or any of their respective
Affiliates, general partners, managers, limited partners, members or managing directors, or any directors or officers of any Holders or any of their respective Affiliates, general or limited partner, advisory director, nor any future Holders of any
of their respective Affiliates, general partners, managers, limited partners, members, managers, advisory directors, or managing directors, if any, of any Holder or any of their respective Affiliates shall have any personal liability for performance
of any obligation of such Holder under this Agreement in excess of the respective capital contributions of such Holders, general partners, limited partners, advisory directors or managing directors to such Holder. 

6.3 Rule 144. If the Company is subject to the requirements of Section 13, 14 or 15(d) of the Exchange Act, the Company
covenants that it will file any reports required to be filed by it under the Securities Act and the Exchange Act (or, if the Company is subject to the requirements of Section 13, 14 or 15(d) of the Exchange Act but is not required to file such
reports, it will, upon the request of any Holder, make publicly available such information) and it will take such further action as any Holder may reasonably request, so as to enable such Holder to sell shares of Common Stock without registration
under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as such Rule 

  
 17 

 
may be amended from time to time, or (b) any similar rule or regulation hereafter adopted by the SEC. Upon the request of any Holder, the Company will deliver to such Holder a written
statement as to whether it has complied with such requirements. 
 6.4 In-Kind Distributions. If any Sponsor Holder seeks
to effectuate an in-kind distribution of all or part of its shares to its direct or indirect equityholders, partners or members, the Company will, subject to applicable lockups, work with such Sponsor Holder and the Company’s transfer agent to
facilitate such in-kind distribution in the manner reasonably requested by such Sponsor Holder. In the event that, either immediately prior to, subsequent to, or in connection with, any registration or offering, pursuant to this Agreement any
Sponsor Holder or any affiliate of a Sponsor Holder shall distribute in-kind all or a portion of its shares to its direct or indirect equityholders, partners or members (i) such equityholders, partners and member shall be permitted to sell such
shares in connection with such registration or offering, (ii) such Sponsor Holder shall so advise the Company and provide it such customary information as is necessary to permit the inclusion in, or an amendment to, the applicable registration
statement, to provide information with respect to such equityholders, partners or members, as selling security holders and (iii) promptly following receipt of such information, the Company shall include in, or file an appropriate amendment to,
such registration statement reflecting the information so provided in order to permit the resale by such equityholders, partners or members of such shares. 
 6.5 No Inconsistent Agreements. The Company represents and warrants it has not granted to any Person the right to request or require the Company to register any securities issued by the Company,
other than the rights granted to the Holders herein. The Company shall not enter into any agreement with respect to its securities that is inconsistent with the rights granted to the Holders in this Agreement or grant any additional rights to any
Person or with respect to any securities that are not shares that are prior in right or inconsistent with the rights granted in this Agreement. 
 ARTICLE VII 
 MISCELLANEOUS 

7.1 Notices. All notices, requests, demands and other communications required or permitted hereunder shall be made in writing by
hand-delivery, registered first-class mail, telex, fax or air courier guaranteeing delivery: 
  

	 	(a)	If to the Company, to: 

Ellington Residential Mortgage REIT 
 53 Forest Avenue 
 Old Greenwich, Connecticut 06870 

Attn: Daniel Margolis 
 Fax: (203) 698-0306 
 Email: dmargolis@ellington.com 

  
 18 

 with a copy (which shall not constitute notice) to: 

Simpson Thacher & Bartlett LLP 
 425 Lexington Avenue 
 New York, NY 10017 

Attn: Wilson S. Neely 
 Fax: (212) 455-2502 
 Email: wneely@stblaw.com 

and 

Hunton & Williams LLP 
 Riverfront Plaza, East Tower 
 951 East Byrd Street 

Richmond, Virginia 23219 
 Attn: Daniel M. LeBey 
 Fax: (804) 788-8218 

Email: dlebey@hunton.com 
 or to such other person or address as the Company shall furnish to the Holders in writing; 
 If to the Sponsor Holders, to: 
 c/o The Blackstone Group, L.P. 

345 Park Avenue, 43rd Floor 
 New York, New York 10154 
 Attention: Menes Chee 

Fax: 646-253-8917 
 Email: Menes.Chee@Blackstone.com 
 with a copy (which shall not constitute notice)
to: 
 Simpson Thacher & Bartlett LLP 
 425 Lexington Avenue 
 New York, NY 10017 

Attn: Wilson S. Neely 
 Fax: (212) 455-2502 
 Email: wneely@stblaw.com 

or to such other person or address as the Sponsor Holders shall furnish to the Company and the other Holders in writing; 

  
 19 

 If to the Ellington Holders, to: 

EMG Holdings, L.P. 
 53 Forest Avenue 
 Old Greenwich, Connecticut 06870 

Attn: Daniel Margolis 
 Fax: (203) 698-0306 
 Email: dmargolis@ellington.com 

with a copy (which shall not constitute notice) to: 
 Hunton & Williams LLP 
 Riverfront Plaza, East Tower 

951 East Byrd Street 
 Richmond, Virginia 23219 
 Attn: Daniel M. LeBey 

Fax: (804) 788-8218 
 Email: dlebey@hunton.com 
 or to such other person or address as the Ellington Holders shall
furnish to the Company and the other Holders in writing. 
 All such notices, requests, demands and other communications shall
be deemed to have been duly given: at the time of delivery by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed domestically in the United States (and seven Business Days if mailed
internationally); when receipt acknowledged, if telecopied or mailed electronically; and on the Business Day for which delivery is guaranteed, if timely delivered to an air courier guaranteeing such delivery. 

7.2 Section Headings. The article and section headings in this Agreement are for reference purposes only and shall not affect the
meaning or interpretation of this Agreement. References in this Agreement to a designated “Article” or “Section” refer to an Article or Section of this Agreement unless otherwise specifically indicated. 

7.3 Governing Law. This Agreement shall be construed, interpreted and the rights of the parties hereto determined in accordance
with the internal laws of the State of New York (including Sections 5-1401 and 5-1402 of the New York General Obligations Law), without giving effect to any choice or conflict of law provision or rule that would cause the application of laws of any
jurisdiction other than those of the State of New York. 
 7.4 Consent to Jurisdiction and Service of Process. EACH PARTY
TO THIS AGREEMENT HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE (UNLESS THE FEDERAL COURTS HAVE EXCLUSIVE JURISDICTION OVER THE MATTER, IN WHICH CASE EACH PARTY CONSENTS TO THE JURISDICTION OF THE
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE) AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS 

  
 20 

 
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER SUCH ACTIONS OR PROCEEDINGS ARE BASED IN STATUTE, TORT, CONTRACT OR OTHERWISE), SHALL BE LITIGATED IN SUCH COURT. EACH PARTY HERETO
(i) CONSENTS TO SUBMIT ITSELF TO THE PERSONAL JURISDICTION OF SUCH COURT FOR SUCH ACTIONS OR PROCEEDINGS, (ii) AGREES THAT IT WILL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE FROM ANY SUCH
COURT, AND (iii) AGREES THAT IT WILL NOT BRING ANY SUCH ACTION OR PROCEEDING IN ANY COURT OTHER THAN SUCH COURT. EACH PARTY HERETO ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE AND
IRREVOCABLE JURISDICTION AND VENUE OF THE AFORESAID COURT AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY NON-APPEALABLE JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH ACTIONS OR PROCEEDINGS. A COPY OF
ANY SERVICE OF PROCESS SERVED UPON THE PARTIES HERETO SHALL BE MAILED BY REGISTERED MAIL TO THE RESPECTIVE PARTY EXCEPT THAT, UNLESS OTHERWISE PROVIDED BY APPLICABLE LAW, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF SERVICE OF
PROCESS. IF ANY AGENT APPOINTED BY A PARTY HERETO REFUSES TO ACCEPT SERVICE, EACH PARTY HERETO AGREES THAT SERVICE UPON THE APPROPRIATE PARTY BY REGISTERED MAIL SHALL CONSTITUTE SUFFICIENT SERVICE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY
HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW. 
 7.5 Waiver of Jury Trial. EACH PARTY ACKNOWLEDGES THAT
ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY ACKNOWLEDGES, AGREES AND CERTIFIES THAT: (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PARTY WOULD, IN THE EVENT OF LITIGATION, SEEK TO PREVENT OR DELAY ENFORCEMENT OF SUCH WAIVER; (II) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER; (III) IT MAKES SUCH WAIVER VOLUNTARILY; AND (IV) IT HAS BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.5. 
 7.6
Amendments. This Agreement may be amended only by an instrument in writing executed by the (i) Company, (ii) Holders holding a majority of the shares collectively held by them, and (iii) the Sponsor Holders holding a majority
of the shares collectively held by them. Any amendment to this Agreement that has a disproportionate adverse effect on any Holder (other than by virtue of a difference in the number of shares held, and other than an amendment that is clerical in
nature or otherwise minor) relative to all other Holders shall not be binding upon such Holder who did not approve in writing such amendment. This Agreement will terminate as to any Holder when it no longer holds any shares. 

  
 21 

 7.7 Entire Agreement. This Agreement constitutes the entire agreement and
understanding of the parties with respect to the transactions contemplated hereby and thereby. The registration rights granted under this Agreement supersede any registration, qualification or similar rights with respect to any of the shares granted
under any other agreement, and any of such preexisting registration rights are hereby terminated. 
 7.8 Specific
Performance. Each of the parties acknowledges that the obligations undertaken by it pursuant to this Agreement are unique and that the other parties will not have an adequate remedy at law if it shall fail to perform any of its obligations
hereunder, and each party therefore confirms that the right of each other party hereto to specific performance of the terms of this Agreement is essential to protect the rights and interests of such parties. Accordingly, in addition to any other
remedies that the parties may have at law or in equity, each party shall have the right to have all obligations, covenants, agreements and other provisions of this Agreement specifically performed by each other party, and shall have the right to
obtain preliminary and permanent injunctive relief to secure specific performance and to prevent a breach or contemplated breach of this Agreement by each other party. 
 7.9 Severability. The invalidity or unenforceability of any specific provision of this Agreement shall not invalidate or render unenforceable any of its other provisions. Any provision of this
Agreement held invalid or unenforceable shall be deemed reformed, if practicable, to the extent necessary to render it valid and enforceable and to the extent permitted by law and consistent with the intent of the parties to this Agreement.

 7.10 Counterparts. This Agreement may be executed in multiple counterparts, including by means of facsimile, each of
which shall be deemed an original, but all of which together shall constitute the same instrument. 
 [Signature Page
Follows] 

  
 22 

 IN WITNESS WHEREOF, the undersigned have executed, or have caused to be executed, this
Agreement on the date first written above. 
  

							
	ELLINGTON RESIDENTIAL MORTGAGE REIT
		
	By:	 	 /s/ Laurence E. Penn

		 	Name:	 	Laurence E. Penn
		 	Title:	 	Executive Vice President
	
	BLACKSTONE TACTICAL OPPORTUNITIES EARN HOLDINGS L.L.C.
		
	By:	 	Blackstone Tactical Opportunities Advisors L.L.C., its Managing Member
			
		 	By:	 	 /s/ David S. Blitzer

		 		 	Name:	 	David S. Blitzer
		 		 	Title:	 	Authorized Person
	
	EMG HOLDINGS, L.P.
		
	By:	 	 VC Investments L.L.C.
 as its general partner

			
		 	By:	 	 /s/ Michael W. Vranos

		 		 	Name:	 	Michael W. Vranos
		 		 	Title:	 	Managing Member

 [Signature Page to Registration Rights Agreement]EX-10.5

 Exhibit 10.5 
 SHAREHOLDERS’ AGREEMENT 
 AMONG 

ELLINGTON RESIDENTIAL MORTGAGE REIT, 
 THE SECURITYHOLDERS 
 FROM TIME TO TIME PARTY HERETO 

AND 
 ELLINGTON
RESIDENTIAL MORTGAGE MANAGEMENT LLC 
 Dated as of             , 2013

  
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
		
	ARTICLE I DEFINITIONS	  	 	2	  
	 Section 1.1.
	  	Certain Defined Terms	  	 	2	  
	 Section 1.2.
	  	Construction	  	 	5	  
		
	ARTICLE II CONDITION PRECEDENT; EFFECTIVENESS	  	 	6	  
		
	ARTICLE III CORPORATE GOVERNANCE	  	 	6	  
	 Section 3.1.
	  	Board Representation following the IPO	  	 	6	  
	 Section 3.2.
	  	Other Board Matters	  	 	7	  
		
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	  	 	8	  
	 Section 4.1.
	  	Representations and Warranties of the Company	  	 	8	  
	 Section 4.2.
	  	Representations and Warranties of each Securityholder	  	 	9	  
		
	ARTICLE V OTHER COVENANTS	  	 	9	  
		
	ARTICLE VI MISCELLANEOUS	  	 	10	  
	 Section 6.1.
	  	Termination	  	 	10	  
	 Section 6.2.
	  	Amendments and Waivers	  	 	10	  
	 Section 6.3.
	  	Successors, Assigns and Transferees	  	 	10	  
	 Section 6.4.
	  	Notices	  	 	10	  
	 Section 6.5.
	  	Entire Agreement	  	 	12	  
	 Section 6.6.
	  	Delays or Omissions	  	 	12	  
	 Section 6.7.
	  	Governing Law; Severability; Limitation of Liability; Judicial Proceedings	  	 	12	  
	 Section 6.8.
	  	Equitable Relief	  	 	14	  
	 Section 6.9.
	  	Aggregation of Shares	  	 	14	  
	 Section 6.10.
	  	Table of Contents, Headings and Captions	  	 	14	  
	 Section 6.11.
	  	No Recourse	  	 	14	  
	 Section 6.12.
	  	Counterparts	  	 	15	  

  
 - i -

 SHAREHOLDERS’ AGREEMENT 

This Shareholders’ Agreement (as amended, modified or supplemented in accordance with the terms hereof, this
“Agreement”) is entered into as of              , 2013, by and among Ellington Residential Mortgage REIT, a Maryland real estate investment trust (the
“Company”), Blackstone Tactical Opportunities EARN Holdings L.L.C., a Delaware limited liability company (the “Sponsor”), EMG Holdings, L.P., a Delaware limited partnership (“Ellington” and together
with the Sponsor, the “Investors”), any other securityholders of the Company or Unit holders of the Operating Partnership who become party to this Agreement from time to time pursuant to the terms hereof (together with the
Investors, the “Securityholders”) and Ellington Residential Mortgage Management LLC, a Delaware limited liability company (“ERM”). Except as otherwise provided herein, this Agreement replaces and supersedes that
certain Investment and Securityholders’ Agreement, dated as of September 24, 2012, by and among the Company, the Investors and ERM, as amended by that certain First Amendment to Investment and Securityholders’ Agreement, dated as of
April 19, 2013, by and among the Company, the Investors and ERM (collectively, the “Prior Agreement”). 

RECITALS 

WHEREAS, each of the Company, the Investors and ERM entered into the Prior Agreement for the purpose of, among other things, establishing
(i) the terms and conditions of (A) the purchase and sale by the Investors of Common Shares (as defined below) in September 2012 (the “Initial Purchased Shares”) and (B) such Investors’ commitment to acquire
additional Common Shares as set forth therein (the “Additional Purchased Shares”), and (ii) certain arrangements with respect to the Common Shares held by the Securityholders following the consummation of the acquisition of the
Initial Purchased Shares, as well as restrictions on certain activities in respect of the Common Shares, corporate governance and other related corporate matters with respect to the Company and its Subsidiaries (as defined below); and 

WHEREAS, as of the Effective Time (as defined below), which shall occur concurrent with the closing (the “IPO Closing”)
of the Company’s proposed IPO (as defined below) of its Common Shares, the Investors will have completed the acquisition of the Additional Purchased Shares (the “Additional Purchased Shares Closing”); and 

WHEREAS, each of the parties hereto desires to enter into this Agreement to establish certain arrangements with respect to the Common
Shares to be held by the Securityholders following the completion of the acquisition of the Additional Purchased Shares Closing, as well as corporate governance and other related corporate matters with respect to the Company and its Subsidiaries.

 NOW, THEREFORE, in consideration of the premises and of the covenants and obligations hereinafter set forth, the parties
hereby agree as follows: 

 ARTICLE I 
 DEFINITIONS 
 Section 1.1. Certain Defined Terms. As used herein,
the following terms shall have the following meanings: 
 “Additional Purchased Shares” has the meaning set
forth in the recitals. 
 “Additional Purchased Shares Closing” has the meaning set forth in the recitals.

 “Affiliate” means, with respect to any Person, an “affiliate” as defined in Rule 405 of the
regulations promulgated under the Securities Act; provided, however, that notwithstanding the foregoing, an Affiliate shall not include any “portfolio company” (as such term is customarily used among institutional investors)
of any Person; provided further, that at any time after the IPO Closing, no Securityholder shall be deemed to be an “Affiliate” of the Company or any of the other Securityholders or their Affiliates solely by reason of purchasing
Shares or Units or entering into, or the provisions of, this Agreement. 
 “Agreement” has the meaning set
forth in the preamble. 
 “Beneficial Ownership” of any securities means ownership by a Person who, directly or
indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares (i) voting power which includes the power to vote, or to direct the voting of, such security; and/or (ii) investment power which
includes the power to dispose, or to direct the disposition, of such security. The terms “Beneficially Own” and “Beneficial Owner” shall have a correlative meaning. For the avoidance of doubt, no Securityholder
shall be deemed to Beneficially Own any securities of the Company or any of its Subsidiaries held by any other holder of such securities solely by reason of entering into, or the provisions of, this Agreement (other than this definition).

 “Board” means the board of trustees of the Company. 

“Business Day” means any day other than a Saturday, a Sunday or other day on which national banking associations in the
State of New York are authorized by Law to be closed. 
 “Bylaws” has the meaning set forth in
Section 3.1(a). 
 “Capital Stock” means any and all shares, interests, participations or other
equivalents (however designated) of the shares of capital stock of a corporation, any and all ownership interests in a Person (other than a corporation), and any and all warrants, options or other rights to purchase or acquire any of the foregoing.

 “Common Shares” means the common shares of beneficial interest, par value $0.01 per share, of the Company
and any securities issued in respect thereof, or in substitution therefor, in connection with any stock split, dividend or combination, or any reclassification, recapitalization, merger, consolidation, exchange or other similar reorganization.

  
 2 

 “Company” has the meaning set forth in the preamble. 

“control” (including the terms “controlling”, “controlled by” and “under
common control with”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly, of the power to direct or cause the direction of the affairs or management of a Person, whether
through the ownership of voting securities, as trustee or executor, by contract or otherwise. 
 “Creditors’
Rights” means applicable bankruptcy, insolvency or other similar laws relating to or affecting the enforcement of creditors’ rights generally and to general principles of equity. 

“Declaration of Trust” means the declaration of trust of the Company, as the same may be amended, corrected or
supplemented from time to time 
 “Effective Time” has the meaning set forth in Article II. 

“Ellington” has the meaning set forth in the preamble. 

“Ellington Designated Trustee” and “Ellington Designated Trustees” have the meanings set forth in
Section 3.1(a). 
 “Ellington Rights Expiration Date” has the meaning set forth in
Section 6.1. 
 “Equity Securities” means the Shares or Units, as the case may be, held from time
to time by the Securityholders, as relevant in the particular context. 
 “ERM” has the meaning set forth in
the preamble. 
 “Governmental Authority” means: (i) any nation, state, commonwealth, province, territory,
county, municipality, district or other jurisdiction of any nature; (ii) the United States and other federal, state, local, municipal, foreign or other government or (iii) any governmental or quasi-governmental authority of any nature
(including any governmental division, department, agency, commission, instrumentality, official, organization, unit, body or entity and any court or other tribunal). 
 “Group” has the meaning ascribed thereto in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended. 

“Independent Trustee” means a Trustee who would be considered to be an “independent director” of the Company
within the meaning of such term under applicable securities laws and the rules of the stock exchange on which the Company lists or intends to list its shares. 
 “Initial Purchased Shares” has the meaning set forth in the recitals. 
 “Investors” has the meaning set forth in the preamble. 

  
 3 

 “IPO” means the first firm commitment underwritten public offering of
common equity securities of the Company pursuant to an effective registration statement on Form S-11 under the Securities Act. 

“IPO Closing” has the meaning set forth in the recitals. 

“Law” means any applicable constitutional provision, statute, act, code, law, regulation, rule, ordinance, order,
decree, ruling, proclamation, resolution, judgment, decision, declaration, or interpretative or advisory opinion or letter of a Governmental Authority. 
 “Manager” means, initially, ERM, and thereafter any substitute manager of the Company appointed as the manager by the Board. 

“Maryland Code” means Titles 1 through 3 and 8 of the Corporations and Associations Article of the Annotated Code of
Maryland. 
 “Operating Partnership” means Ellington Residential Mortgage LP, a Delaware limited partnership.

 “Permitted Transferee” means (A) with respect to any Securityholder that is the Sponsor
or any of its Affiliates, (i) any Affiliate of such Securityholder and (ii) any successor entity of such Securityholder, and (B) with respect to any Securityholder that is Ellington or an Affiliate of Ellington, (i) any entity
directly or indirectly controlled by, or under common control with, EMG Holdings, L.P., other than an investment fund or a vehicle of an investment fund (or investment funds) marketed or sold to external investors (or which the direct or indirect
parent investment fund of such vehicle is marketed or sold to external investors) with respect to which Ellington or one of its Affiliates serves as the general partner, manager, managing member, controlling securityholder or discretionary manager
or advisor; and (ii) any individual who works for, or is employed by, EMG Holdings, L.P. and its Subsidiaries, and any estate planning vehicle established for the primary benefit of such individual and/or his or her spouse or issue. 

 “Person” means any natural person, corporation, limited partnership, general partnership, limited
liability company, joint stock company, joint venture, association, company, estate, trust, bank trust company, land trust, business trust, or other organization, whether or not a legal entity, custodian, trustee-executor, administrator, nominee or
entity in a representative capacity and any government or agency or political subdivision thereof and any Group consisting of one or more of the foregoing. 
 “Prior Agreement” has the meaning set forth in the preamble. 

“Purchased Shares” means the sum of (i) the Initial Purchased Shares, (ii) any Shares distributed to the
Investors before the IPO Closing in connection with a share dividend and (iii) the Additional Purchased Shares Beneficially Owned by the Investors immediately following the Additional Purchased Shares Closing. 

“Purchased Shares Threshold” has the meaning set forth in Section 3.1(a). 

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

  
 4 

 “Securities Act” means the Securities Act of 1933, as amended, and any
successor statute thereto and the rules and regulations of the SEC promulgated thereunder. 
 “Securityholder”
has the meaning set forth in the Preamble. 
 “Shares” means shares of the Capital Stock of the Company.

 “Special Unit Transfer” means the sale, disposition, assignment or other direct or indirect transfer by
Tactical Opportunities NQ of any of its special units of ownership interest in Ellington RMM Holdings LLC to any Person other than a Permitted Transferee. 
 “Sponsor” has the meaning set forth in the preamble. 

“Sponsor Designated Trustee” has the meaning set forth in Section 3.1(a). 

“Sponsor Entities” means the Sponsor and its Permitted Transferees. 

“Sponsor Rights Expiration Date” has the meaning set forth in Section 3.1(a). 

“Subsidiary” means with respect to any Person, (i) any corporation or other entity a majority of the Capital Stock
of which having ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions is at the time owned, directly or indirectly, with power to vote, by such initial Person or (ii) a partnership in
which such initial Person or any direct or indirect Subsidiary of such initial Person is a general partner. 
 “Tactical
Opportunities NQ” means Blackstone Tactical Opportunities EARN Holdings - NQ L.L.C. 
 “Trustee” means
any member of the Board. 
 “Unit” means the ownership interest in the Operating Partnership, and any
securities issued in respect thereof, or in substitution therefor, in connection with any stock split, dividend or combination, or any reclassification, recapitalization, merger, consolidation, exchange or other similar reorganization. 

Section 1.2. Construction. Unless the context requires otherwise, the gender of all words used in this Agreement includes the
masculine, feminine and neuter forms and the singular form of words shall include the plural and vice versa. All references to Articles and Sections refer to articles and sections of this Agreement, and all references to Schedules and Exhibits are
to Schedules and Exhibits attached hereto, each of which is made a part hereof for all purposes. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by
the words “without limitation” (except to the extent the context otherwise provides). This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or
causing any instrument to be drafted. 

  
 5 

 ARTICLE II 
 CONDITION PRECEDENT; EFFECTIVENESS 
 It shall be a condition precedent to the
effectiveness of this Agreement that each of the Additional Purchased Shares Closing and the IPO Closing shall have been consummated and this Agreement shall become effective upon the later to occur of (i) such Additional Purchased Shares
Closing and (ii) the IPO Closing (the “Effective Time”). For the avoidance of doubt, unless and until each of the Additional Purchased Shares Closing and the IPO Closing occurs, this Agreement shall not become effective and the
Prior Agreement shall remain in full force and effect. 
 At the Effective Time, this Agreement shall automatically amend and
restate the Prior Agreement in its entirety, without further action being required by any of the parties thereto, and this Agreement shall constitute the entire agreement and supersede the Prior Agreement, such that the Prior Agreement shall
terminate at such time. 
 ARTICLE III 
 CORPORATE GOVERNANCE 
 Section 3.1. Board Representation following the
IPO. From the date hereof until termination of this Agreement in accordance with Section 6.1 hereof: 
 (a) As
of the Effective Time, the Trustees shall be Menes Chee (who shall be deemed the Sponsor Designated Trustee), Laurence E. Penn and Michael W. Vranos (who shall each be deemed an Ellington Designated Trustee), and Robert B. Allardice, III, David J.
Miller, Thomas F. Robards and Ronald I. Simon, Ph.D. (who each shall be deemed an Independent Trustee). Thereafter, (i) until the earlier to occur of (A) the Sponsor and its Permitted Transferees Beneficially Own, in the aggregate, seventy
percent (70%) (the “Purchased Shares Threshold”) or less of the Purchased Shares held by it immediately after the Effective Time, (B) Tactical Opportunities NQ completes a Special Unit Transfer or (C) the mutual
written agreement of the Investors that the Sponsor shall have no further rights under this Agreement to designate a Sponsor Designated Trustee (the “Sponsor Rights Expiration Date”), subject to the terms and conditions in this
Agreement, the Sponsor shall have the right, but not the obligation, to designate one nominee for election as a Trustee (the “Sponsor Designated Trustee”), (ii) until the Ellington Rights Expiration Date, subject to the terms
and conditions in this Agreement, Ellington shall have the right, but not the obligation, to designate up to two nominees for election as Trustees (each an “Ellington Designated Trustee” and collectively, the “Ellington
Designated Trustees”), and (iii) all remaining individuals nominated for election as Trustee(s) shall be nominated in accordance with the Bylaws of the Company in effect from time to time (the “Bylaws”); provided,
however, that the composition of the Board and each committee thereof shall satisfy all listing requirements of the New York Stock Exchange or such other national exchange on which the Common Shares are then listed. The Company agrees, to the
fullest extent permitted by applicable law (including with respect to any fiduciary duties under Maryland law), to include in the slate of nominees recommended by the Board for election at any meeting of shareholders called for the purpose of
electing trustees the persons designated 

  
 6 

 
pursuant to this Section 3.1(a) and to nominate and recommend each such individual to be elected as a Trustee as provided herein, and to use its best efforts to solicit proxies or
consents in favor thereof 
 (b) Except as provided above in Section 3.1(a), during the term of this Agreement,
(A) the Sponsor Entities shall have the exclusive right to designate a nominee to fill any and all vacancies created by reason of the death, removal or resignation of any Sponsor Designated Trustee and (B) Ellington shall have the
exclusive right to designate a nominee to fill any and all vacancies created by reason of the death, removal or resignation of any Ellington Designated Trustee, and the Securityholders and the Company shall take all necessary action to cause the
Board to be so constituted. 
 (c) Sponsor agrees that, promptly after the Sponsor becomes aware that its Beneficial Ownership
of Purchased Shares equals or falls below the Purchased Shares Threshold, the Sponsor will (1) provide written notice to the Company of such event and (2) use its best efforts to cause the Sponsor Designated Trustee to submit his or her
resignation to the Board, with such resignation to become effective upon the Board’s acceptance thereof. 
 (d) On the
Ellington Rights Expiration Date, Ellington agrees to use its best efforts to cause each of the Ellington Designated Trustees to submit his or her resignation to the Board, with such resignations to become effective upon the Board’s acceptance
thereof. 
 (e) Each of the Sponsor and Ellington and their Permitted Transferees further agree to deliver to the Company a
written notice identifying the Sponsor Designated Trustee or Ellington Designated Trustees, as applicable, in a manner reasonably calculated to allow the Company to prepare, file and furnish its proxy materials on a timely basis. No written notice
shall be required to be delivered under this Section 3.1(e) for so long as, in the case of the Sponsor Designated Trustee, Menes O. Chee is a Trustee, and, in the case of the Ellington Designated Trustees, Laurence E. Penn and Michael W.
Vranos are Trustees. 
 Section 3.2. Other Board Matters. 

(a) The Company shall reimburse each Trustee (or the Person that designated (or nominated) such Trustee) for all reasonable and
documented out-of-pocket expenses incurred by such Trustee (or the Person that designated (or nominated) such Trustee, on his or her behalf) in connection with his or her attendance at meetings of the Board, and any committees thereof, including
travel, lodging and meal expenses. The Board shall determine any annual fees or other compensation payable to any Trustee in connection with such person’s service on the Board. 

(b) The Company shall obtain and maintain customary director and officer indemnity insurance on commercially reasonable terms as
determined by the Board. 

  
 7 

 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES 
 Section 4.1. Representations and
Warranties of the Company. The Company hereby represents and warrants to, and agrees with, each of the Securityholders that, as of the date hereof: 
 (a) the Company is a Maryland real estate investment trust, duly organized, validly existing and in good standing under the Laws of the jurisdiction of its formation with all requisite, real estate
investment trust, corporate or other power and authority to own, lease and operate its properties and assets and to carry on its business as currently conducted in all material respects. The Company is duly qualified to do business and in good
standing as a foreign entity in the jurisdictions where the nature of the property owned or leased by it, or the nature of the business conducted by it, makes such qualification necessary, in all material respects. True and complete copies of the
Declaration of Trust and the Bylaws, each as amended to date, have heretofore been made available to the Securityholders; 
 (b)
the Company has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and the execution, delivery, and performance by the Company of this Agreement have been duly authorized by all necessary action;

 (c) this Agreement has been duly and validly executed and delivered by the Company and constitutes the binding obligation of
the Company enforceable against the Company in accordance with its terms, subject to Creditors’ Rights; 
 (d) the
execution, delivery, and performance by the Company of this Agreement will not, with or without the giving of notice or the lapse of time, or both, (i) violate any provision of Law to which the Company is subject, (ii) violate any order,
judgment, or decree applicable to the Company or (iii) conflict with, or result in a breach or default under, any agreement or instrument to which the Company is a party or any term or condition of the Declaration of Trust or the Bylaws, except
where such conflict, breach or default would not reasonably be expected to, individually or in the aggregate, have an adverse effect on the Company’s ability to satisfy its obligations hereunder; 

(e) no consent, approval, permit, license, order or authorization of, filing with, or notice or other action to, with or by any
Governmental Authority or any other Person, is necessary, on the part of the Company to perform its obligations hereunder or to authorize the execution, delivery and performance by the Company of its obligations hereunder, except where such consent,
approval, permit, license, order, authorization, filing or notice would not reasonably be expected to, individually or in the aggregate, have an adverse effect on the Company’s ability to satisfy its obligations hereunder or under any agreement
or other instrument to which the Company is a party; and 

  
 8 

 Section 4.2. Representations and Warranties of each Securityholder. Each
Securityholder (severally and not jointly, as to itself) hereby represents and warrants to, an agrees with, the Company and the other Securityholders that, as of the date hereof: 

(a) such Securityholder has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder, and
the execution, delivery, and performance by such Securityholder of this Agreement have been duly authorized by all necessary action; 
 (b) this Agreement has been duly and validly executed and delivered by such Securityholder and constitutes the binding obligation of such Securityholder enforceable against such Securityholder in
accordance with its terms, subject to Creditors’ Rights; 
 (c) the execution, delivery, and performance by such
Securityholder of this Agreement will not, with or without the giving of notice or the lapse of time, or both, (i) violate any provision of Law to which such Securityholder is subject, (ii) violate any order, judgment, or decree applicable
to such Securityholder or (iii) conflict with, or result in a breach or default under, any agreement or instrument to which such Securityholder is a party or any term or condition of its certificate of incorporation or bylaws, certificate of
limited partnership or partnership agreement, or certificate of formation or limited liability company agreement, as applicable, except where such conflict, breach or default would not reasonably be expected to, individually or in the aggregate,
have an adverse effect on such Securityholder’s ability to satisfy its obligations hereunder; 
 (d) no consent, approval,
permit, license, order or authorization of, filing with, or notice or other action to, with or by any Governmental Authority or any other Person, is necessary, on the part of such Securityholder to perform its obligations hereunder or to authorize
the execution, delivery and performance by such Securityholder of its obligations hereunder, except where such consent, approval, permit, license, order, authorization, filing or notice would not reasonably be expected to, individually or in the
aggregate, have an adverse effect on such Securityholder’s ability to satisfy its obligations hereunder or under any agreement or other instrument to which such Securityholder is a party; 

ARTICLE V 
 OTHER
COVENANTS 
 In connection with this Agreement and the transactions contemplated hereby, the Company and each Securityholder
shall execute and deliver all such future instruments and take such other and further action as may be reasonably necessary or appropriate to carry out the provisions of this Agreement and the intention of the parties as expressed herein;
provided that any such instrument or action does not increase a Securityholder’s obligations or have an adverse effect upon such Securityholder’s rights under this Agreement without such Securityholder’s written consent.

  
 9 

 ARTICLE VI 
 MISCELLANEOUS 
 Section 6.1. Termination. This Agreement shall
terminate (i) only with respect to the rights of Sponsor (and its Permitted Transferees) hereunder, on the Sponsor Rights Expiration Date, (ii) only with respect to the rights of Ellington (and its Permitted Transferees) hereunder, at the
effective time of ERM’s (or any of its Affiliates) termination as Manager of the Company (the “Ellington Rights Expiration Date”), (iii) upon the later to occur of (x) the Sponsor Rights Expiration Date and
(y) the Ellington Rights Expiration Dare, (iv) by written consent of each party that is at the time of such consent still a party to this Agreement and (v) upon the termination of the Company, automatically without any action by any
party hereto. Termination of this Agreement shall not relieve any party for the breach of any obligations under this Agreement prior to such termination. Notwithstanding any such termination of this Agreement, this Article VI shall
survive any termination of this Agreement. 
 Section 6.2. Amendments and Waivers. Except as otherwise provided
herein and subject to the approval of a majority of the Independent Trustees, this Agreement may not be amended except by an instrument in writing signed by each party that is at the time of such amendment still a party to this Agreement;
provided, that any Securityholder may waive (in writing) the benefit of any provision of this Agreement with respect to itself for any purpose. No waiver of any breach of any of the terms of this Agreement shall be effective unless such
waiver is expressly in writing and executed and delivered by the party against whom such waiver is claimed. A waiver or consent, express or implied, to or of any breach or default by any Person in the performance by that Person of its obligations
with respect to this Agreement is not a consent or waiver to or of any other breach or default in the performance by that Person of the same or any other obligations of that Person with respect to this Agreement. Failure on the part of a Person to
complain of any act of any Person or to declare any Person in default, irrespective of how long that failure continues, does not constitute a waiver by that Person of its rights with respect to that default until the applicable
statute-of-limitations period has run. 
 Section 6.3. Successors, Assigns and Transferees. This Agreement
shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors and any Permitted Transferees to which the rights of the respective party hereto are assigned; and by their signatures hereto,
each party intends to and does hereby become bound. Any assignment of rights or obligations in violation of this Section 6.3 shall be null and void. Nothing expressed or mentioned in this Agreement is intended or shall be construed to
give any Person any legal or equitable right, remedy or claim under, in or in respect of this Agreement or any provision herein contained other than the parties hereto and their respective permitted successors and assigns, all of whom are intended
to be third party beneficiaries thereof. 
 Section 6.4. Notices. 

(a) Except as expressly set forth to the contrary in this Agreement, all notices, requests or consents provided for or required to be
given hereunder shall be in writing and shall be deemed to be duly given if personally delivered, sent via facsimile and confirmed, or mailed by certified mail, return receipt requested, or sent by nationally recognized overnight delivery service
with proof of receipt maintained, at the following addresses (or any other address that any such party may designate by written notice to the other parties): 
 if to the Company, to: 
 Ellington Residential Mortgage REIT 

c/o Ellington Management Group, L.L.C. 
 53 Forest Avenue 
 Old Greenwich, Connecticut 06870 

Attn: Daniel Margolis 
 Fax: (203) 698-0306 
 Email: dmargolis@ellington.com 

  
 10 

 with a copy (which shall not constitute notice) to: 

Hunton & Williams LLP 
 Riverfront Plaza, East Tower 
 951 East Byrd Street 

Richmond, Virginia 23219 
 Attn: Daniel M. LeBey 
 Fax: (804) 788-8218 

Email: dlebey@hunton.com 
 if to the Sponsor, to: 
 Blackstone Tactical Opportunities EARN Holdings L.L.C.

 345 Park Avenue, 43rd Floor 
 New York, New York 10154 
 Attention: Menes Chee 

Facsimile: 646-253-8917 
 Email: Menes.Chee@Blackstone.com 
 with copies (which shall not constitute notice)
to: 
 Simpson Thacher & Bartlett LLP 
 425 Lexington Avenue 
 New York, New York 10017 

Attention: Wilson S. Neely 
 Facsimile: (212) 455-2502 
 Email: wneely@stblaw.com 

if to Ellington or ERM, to: 
 Ellington Management Group, L.L.C. 
 53 Forest Avenue - Suite 301 

Old Greenwich, CT 06870 

			
	Attention:	  	Peter Green
	Facsimile:	  	203-698-0869
	Email:	  	green@ellington.com

  
 11 

 with a copy (which shall not constitute notice) to: 

Ellington Management Group, L.L.C. 
 53 Forest Avenue - Suite 301 
 Old Greenwich, CT 06870 

			
	Attention:	  	Legal Department
	Facsimile:	  	203-698-0869
	Email:	  	dmargolis@ellington.com

 (b) Any such notice shall, if delivered personally, be deemed received upon delivery; shall, if delivered
by facsimile, be deemed received on the first Business Day following confirmation; shall, if delivered by nationally recognized overnight delivery service, be deemed received the first Business Day after being sent; and shall, if delivered by mail,
be deemed received upon the earlier of actual receipt thereof or 5 Business Days after the date of deposit in the mail. 
 (c)
To the extent permitted by Law, whenever any notice is required to be given by Law or this Agreement, a written waiver thereof, signed by the Person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to
the giving of such notice. 
 Section 6.5. Entire Agreement. Except as otherwise expressly set forth herein,
this Agreement embodies the complete agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or among the parties, written
or oral, that may have related to the subject matter hereof in any way. 
 Section 6.6. Delays or Omissions. It
is agreed that no delay or omission to exercise any right, power or remedy accruing to any party, upon any breach, default or noncompliance by another party under this Agreement, shall impair any such right, power or remedy, nor shall it be
construed to be a waiver of any such breach, default or noncompliance, or any acquiescence therein, or of or in any similar breach, default or noncompliance thereafter occurring. It is further agreed that any waiver, permit, consent or approval of
any kind or character on the part of any party hereto of any breach, default or noncompliance under this Agreement or any waiver on such party’s part of any provisions or conditions of this Agreement, must be in writing and shall be effective
only to the extent specifically set forth in such writing. All remedies, either under this Agreement, by law, or otherwise afforded to any party, shall be cumulative and not alternative. 

Section 6.7. Governing Law; Severability; Limitation of Liability; Judicial Proceedings. 

(a) This Agreement shall be governed by and construed in accordance with, the Laws of the state of New York (except to the extent that
man1adatory provisions of the Maryland Code apply), without giving effect to any principles of conflicts of laws that would result in the application of laws of a different jurisdiction. 

  
 12 

 (b) In the event of a direct conflict between the provisions of this Agreement and any
mandatory, non-waivable provision of the Maryland Code, such provision of the Maryland Code shall control. In the event of a direct conflict between the provisions of this Agreement and the Declaration of Trust or the Bylaws, this Agreement shall
control as between the parties hereto and the parties hereto furthermore undertake to exercise their powers as Securityholders to amend the declaration of trust or bylaws, as applicable, so as to be consistent with and give effect to the terms of
this Agreement. If any provision of the Maryland Code provides that it may be varied or superseded in the Declaration of Trust or the Bylaws or other organizational documents of a corporation, such provision shall be deemed superseded and waived in
its entirety if this Agreement contains a provision addressing the same issue or subject matter. 
 (c) If any provision of this
Agreement is held to be illegal, invalid or unenforceable under present or future Laws effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid,
or unenforceable provision had never comprised a part of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its
severance from this Agreement. Furthermore, in lieu of each such illegal, invalid or unenforceable provision, there shall be added automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable
provision as may be possible and be legal, valid and enforceable. 
 (d) To the fullest extent permitted by Law, neither the
Company nor any Securityholder shall be liable to any of the other such Persons for punitive, special, exemplary or consequential damages, including damages for loss of profits, loss of use or revenue or losses by reason of cost of capital, arising
out of or relating to this Agreement or the transactions contemplated hereby, regardless of whether based on contract, tort (including negligence), strict liability, violation of any applicable deceptive trade practices act or similar Law or any
other legal or equitable principle, and the Company and each Securityholder releases each of the other such Persons from liability for any such damages. 
 (e) In any judicial proceeding involving any dispute, controversy or claim arising out of or relating to this Agreement, each of the Securityholders unconditionally accepts the exclusive jurisdiction and
venue of any court of the State of New York located in the borough of Manhattan or the United States District Court located in the Southern District of New York, and the appellate courts to which orders and judgments thereof may be appealed. In any
such judicial proceeding, the Securityholders agree that in addition to any method for the service of process permitted or required by such courts, to the fullest extent permitted by Law, service of process may be made by delivery provided pursuant
to the directions in Section 6.4. EACH OF THE SECURITYHOLDERS HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING ANY DISPUTE, CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 

  
 13 

 (f) To the fullest extent permitted by Law, the Securityholders hereby irrevocably waive any
objection which they may now or hereafter have to the laying of venue of any claim, controversy or dispute arising out of or relating to this Agreement or any of the transactions contemplated hereby brought in such courts or any defense of
inconvenient forum for the maintenance of such claim, controversy or dispute. Each of the Securityholders agrees that a final and unappealable judgment in any such claim, controversy or dispute shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment, a certified copy of which shall be conclusive evidence of the fact and amount of such judgment, or in any other manner provided by Law. 
 Section 6.8. Equitable Relief. The Securityholders hereby confirm that damages at Law would be an inadequate remedy for a breach or threatened breach of this Agreement and agree that, in
the event of a breach or threatened breach of any provision hereof, the respective rights and obligations hereunder shall be enforceable by specific performance, injunction or other equitable remedy, but, nothing herein contained is intended to, nor
shall it, limit or affect any right or rights at Law or by statute or otherwise of a Securityholder aggrieved as against another Securityholder for a breach or threatened breach of any provision hereof, it being the intention by this Section to make
clear the agreement of the Securityholders that the respective rights and obligations of the Securityholders hereunder shall be enforceable in equity as well as at Law or otherwise and that the mention herein of any particular remedy shall not
preclude a Securityholder from any other remedy it or he might have, either in Law or in equity. 
 Section 6.9.
Aggregation of Shares. Notwithstanding anything to the contrary herein, all Equity Securities held or acquired by a Securityholder and its Affiliates shall be aggregated together for purposes of determining the rights or obligations of a
Securityholder, or application of any restrictions to a Securityholder, or reference to its Equity Securities under this Agreement, in each instance in which such right, obligation or restriction is determined by any ownership threshold (including
the Purchased Shares Threshold). Within a group of Securityholders that are Affiliates, the members of such group of Securityholders may allocate the ability to exercise any rights of such group of Securityholders under this Agreement in any manner
that such group of Securityholders (by approval of the holders of a majority of Equity Securities held by such group) sees fit, subject to the other terms of this Agreement. 
 Section 6.10. Table of Contents, Headings and Captions. The table of contents, headings, subheadings and captions contained in this Agreement are included for convenience of reference
only, and in no way define, limit or describe the scope of this Agreement or the intent of any provision hereof. 

Section 6.11. No Recourse. Notwithstanding anything that may be expressed or implied in this Agreement or any document
or instrument delivered contemporaneously herewith, and notwithstanding the fact that any party hereto may be a partnership or limited liability company, each party hereto, by its acceptance of the benefits of this Agreement, covenants, agrees and
acknowledges that no Persons other than the named parties hereto shall have any obligation hereunder and that it has no rights of recovery hereunder against, and no recourse hereunder or under any documents or instruments delivered contemporaneously
herewith or in respect of any oral representations made or alleged to be made in connection herewith or therewith shall be had against, any former, current or future director, officer, agent, Affiliate, manager, assignee,

  
 14 

 
incorporator, controlling Person, fiduciary, representative or employee of any other party (or any of their successor or permitted assignees), against any former, current, or future general or
limited partner, manager, securityholder or member of the Investor (or any of their successors or permitted assignees) or any Affiliate thereof or against any former, current or future director, officer, agent, employee, Affiliate, manager,
assignee, incorporator, controlling Person, fiduciary, representative, general or limited partner, securityholder, manager or member of any of the foregoing, but in each case not including the named parties hereto (each, but excluding for the
avoidance of doubt, the named parties hereto, an “Investor Affiliate”), whether by or through attempted piercing of the corporate veil, by or through a claim (whether in tort, contract or otherwise) by or on behalf of such party
against the Investor Affiliates, by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable law, or otherwise; it being expressly agreed and acknowledged that no personal
liability whatsoever shall attach to, be imposed on, or otherwise be incurred by any Investor Affiliate, as such, for any obligations of the applicable party under this Agreement or the transactions contemplated hereby, under any documents or
instruments delivered contemporaneously herewith, in respect of any oral representations made or alleged to be made in connection herewith or therewith, or for any claim (whether in tort, contract or otherwise) based on, in respect of, or by reason
of, such obligations or their creation. 
 Section 6.12. Counterparts. This Agreement and any amendment hereto
may be signed in any number of separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one agreement (or amendment, as applicable). This Agreement may be validly executed and delivered by
facsimile or other electronic transmission. 
 [Signature Pages Follow] 

  
 15 

 IN WITNESS WHEREOF, each of the undersigned duly executed this Agreement (or caused this
Agreement to be executed on its behalf by its officer or representative thereto duly authorized) as of the day and year first written above. 
  

					
	ELLINGTON RESIDENTIAL MORTGAGE REIT
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 [Signature Page to Shareholders’ Agreement] 

 
					
	BLACKSTONE TACTICAL OPPORTUNITIES EARN HOLDINGS L.L.C.
		
	By:	 	BTO EARN Manager L.L.C., its Managing Member
		
		 	By: BTOA L.L.C., its Sole Member
			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	

 [Signature Page to Shareholders’ Agreement] 

 
							
	EMG HOLDINGS, L.P.
		
	By:	 	VC Investments L.L.C.
		 	as its general partner
			
		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	

 [Signature Page to Shareholders’ Agreement] 

 
					
	ELLINGTON RESIDENTIAL MORTGAGE MANAGEMENT LLC
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

 [Signature Page to Shareholders’ Agreement]

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