SEC Contract Filing

Filing Date: 2015-08-05

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>bmnm10q20150630x101.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
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<div style="TEXT-ALIGN: right"><font style="FONT-WEIGHT: bold">EXHIBIT 10.1<br>
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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">SETTLEMENT AGREEMENT AND RELEASE</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE (the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Agreement</font>&#8221;), dated as of May 15, 2015, is entered into by and between HILDENE CAPITAL MANAGEMENT, LLC (&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Hildene Capital</font>&#8221;), HILDENE OPPORTUNITIES MASTER FUND, LTD., individually and derivatively (&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Hildene Master</font>&#8221; and, together with Hildene Capital, &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Hildene</font>&#8221;), PREFERRED TERM SECURITIES XX, LTD&#160;&#160;(&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">PreTSL XX</font>&#8221;), and BIMINI CAPITAL MANAGEMENT, INC. (&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Bimini</font>,&#8221; and together with Hildene and PreTSL XX, the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Settling Parties</font>&#8221;).</font></div>

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline">RECITALS</font></font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">WHEREAS</font>, on July 16, 2010, Hildene commenced an action by filing a complaint (the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Hildene Complaint</font>&#8221;) against defendants Bimini, the Bank of New York Mellon (&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">BNYM</font>&#8221;) and Hexagon Securities LLC (&#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Hexagon</font>&#8221;) and nominal defendants BNYM and PreTSL XX in the Supreme Court of the State of New York, County of New York, captioned <font style="FONT-STYLE: italic; DISPLAY: inline">Hildene Capital Management, LLC, et al. v. The Bank of New York Mellon, et. al., </font>Index No. 650980/2010 (Sherwood, J.) (the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Action</font>&#8221;);</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">WHEREAS</font>, the Action alleged<font style="FONT-SIZE: 70%; VERTICAL-ALIGN: text-top"><a href="#ref.ID0EUH">1</a></font> causes of action for breach of contract, breach of the covenant of good faith and fair dealing, tortious interference with contract, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, unjust enrichment and rescission/illegality in connection with the offer by Bimini to repurchase the capital securities of Bimini Capital Trust II (the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">TruPS</font>&#8221;) from the PreTSL XX collateral pool (the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Bimini TruPS Repurchase</font>&#8221;);</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">WHEREAS</font>, the PreTSL XX notes were issued pursuant to an Indenture, dated December 15, 2005 (the &#8220;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Indenture</font>&#8221;), by and between PreTSL XX, Preferred Term Securities XX, Inc., and BNYM, as Indenture Trustee;</font></div>

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<div style="TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: b