Related Party Transactions

6 Months Ended

Jun. 30, 2013

Related Party Transactions Disclosure [Abstract]

Related Party Transactions

NOTE 13. RELATED PARTY TRANSACTIONS

Frank E. Jaumot is a shareholder in an accounting firm from which the Company receives accounting and tax services. Mr. Jaumot is both a director and a shareholder of Bimini Capital. Professional fees incurred with this firm were $67,000 and $84,000 for the six months ended June 30, 2013and 2012, respectively.

Management Agreement

Orchid entered into a management agreement with Bimini Capital, which provided for an initial term through December 31, 2011 with automatic one-year extension options. The agreement was extended under the option to December 31, 2013, but was terminated at the completion of Orchid's IPO. At the completion of the IPO, Orchid entered into a management agreement with Bimini Advisors, LLC which provides for an initial term through February 20, 2016 with automatic one-year extensions and is subject to certain termination rights. Under the terms of the management agreement, Bimini Advisors will be responsible for administering the business activities and day-to-day operations of Orchid. Bimini Advisors will receive a monthly management fee in the amount of:

• One-twelfth of 1.5% of the first $250 million of Orchid's equity, as defined in the management agreement,
• One-twelfth of 1.25% of Orchid's equity that is greater than $250 million and less than or equal to $500 million, and
• One-twelfth of 1.00% Orchid's equity that is greater than $500 million.

Should Orchid terminate the management agreement without cause, it shall pay to Bimini Advisors a termination fee equal to three times the average annual management fee, as defined in the management agreement, before or on the last day of the initial term or automatic renewal term.Orchid is obligated to reimburse Bimini Advisors for any direct expenses incurred on its behalf. In addition, once Orchid's equity, as defined, equals $100 million, Bimini Advisors will begin allocating to Orchid it's pro rata portion of certain overhead costs as defined in the management agreement.