SEC Contract Filing

Filing Date: 2023-04-28

Document Content:
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>ex_505492.htm
<DESCRIPTION>EXHIBIT 10.1
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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:right;margin:0pt;"><b>Exhibit</b>&nbsp;<b>10.1</b></p>

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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt 0pt 0pt 8pt;"><b>ORCHID ISLAND CAPITAL, INC.</b></p>

<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:center;margin:0pt 0pt 0pt 8pt;"><b>2023 LONG-TERM EQUITY INCENTIVE COMPENSATION PLAN</b></p>

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<p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-indent: 18pt;">This 2023 Long-Term Equity Incentive Compensation Plan (the &#8220;2023 Plan&#8221;) sets forth terms and conditions on which equity awards may be made by Orchid Island Capital, Inc. (the &#8220;Company&#8221;).</p>

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<p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-indent: 18pt;">All employees of Bimini Advisors, LLC, which is the Company&#8217;s external manager (the &#8220;Manager&#8221;), and employees of entities affiliated with the Manager (collectively, the &#8220;Employees&#8221;) are eligible to participate in the 2023 Plan. Members of our Manager&#8217;s and its affiliates&#8217; senior management team also serve as the Company&#8217;s executive officers, including the Company&#8217;s Chief Executive Officer and Chief Financial Officer. All of the Employees are referred to as &#8220;Participants.&#8221; Being a Participant does not entitle the individual to an award under the 2023 Plan. The Compensation Committee of the Board of Directors of the Company (the &#8220;Committee&#8221;) will have absolute sole discretion over all aspects of the 2023 Plan, including but not limited to the ability to reduce the amount of any bonus award or the size of the bonus pool even if the performance objectives and other terms of the 2023 Plan are satisfied and to adjust the Company&#8217;s book value for purposes of the 2023 Plan due to dilutive issuances of the Company&#8217;s common stock.</p>

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<p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-indent: 18pt;">Participants will be eligible to earn awards under the 2023 Plan for performance over the next one-year, three-year and five-year periods. A bonus pool will be established under the 2023 Plan for each of the one-, three- and five-year measurement periods. The amount credited to the bonus pool will be based on the Company&#8217;s performance under each of the three performance criteria (which are described below) of the 2023 Plan for each of the three measurement periods. The Committee, in its discretion, will determine each Participant&#8217;s award (<i>i.e.</i>, the percentage of the bonus pool paid to each Participant).</p>

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<p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-indent: 18pt;">The maximum amount that may be credited to the bonus pool for each measurement period will equal the average management fees paid by the Company to the Manager (pursuant to the terms of the management agreement between the Company and the Manager) for such period multiplied by the applicable percentage described in the table below. Under the 2023 Plan, the maximum bonus pool for awards to be issued for performance during (i)&nbsp;the one-year measurement period will equal 20% of the average monthly management fee earned during 2023 multiplied by 12, (ii)&nbsp;the three-year measurement period will equal 35% of the average annual management fee paid for 2023 through 2025 and (iii)&nbsp;for the five-year measurement period will equal 45% of the average annual management fee paid for 2023 through 2027.&nbsp;</p>

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<p style="font-family: &quot;Times New Roman&quot;; font-size: 10pt; font-variant: normal; margin: 0pt; text-indent: 18pt;">As noted above, the amount credited to the bonus pool for each measurement period will reflect the Company&#8217;s performance measured against the three performance criteria described below. The table below illustrates the maximum amount that may be credited to the bonus pool for each measurement period (as a percentage of the average management fees for the applicable period). The table also shows the amount that may be credited to the bonus pool for each measurement period (also as a percentage of the average management fees for the applicable period) for achievement of objectives with respect to each of the performance criteria. For example, the maximum amount that may be credited to the bonus pool for the three-year measurement period based on the Agency RMBS rate (as defined below) relative performance is 10.50% of the average management fees paid for 2023 through 2025.</p>

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