RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

Related Party Transactions

NOTE 13. RELATED PARTY TRANSACTIONS

Management Agreement

The Company is externally managed and advised by the “Manager” pursuant to the terms of a management agreement. The

management agreement has been renewed through

February 20, 2023

 and provides for automatic

one-year

 extension options

thereafter and is subject to certain termination rights. Under the terms of the management agreement, the Manager is responsible for

administering the business activities and day-to-day operations of the Company. The Manager receives a monthly management fee in

the amount of:

●

One-twelfth of 1.5% of the first $250 million of the Company’s month-end equity, as defined in the management agreement,

●

One-twelfth of 1.25% of the Company’s month-end equity that is greater than $250 million and less than or equal to $500

million, and

●

One-twelfth of 1.00% of the Company’s month-end equity that is greater than $500 million.

The Company is obligated to reimburse the Manager for any direct expenses incurred on its behalf and to pay the Manager the

Company’s pro rata portion of certain overhead costs set forth in the management agreement. Should the Company terminate the

management agreement without cause, it will pay the Manager 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 term of the agreement.

Total expenses recorded for the management fee and allocated overhead incurred were approximately $

9.8

 million, $

6.8

 million

and $

6.9

 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Other Relationships with Bimini

Robert Cauley, our Chief Executive Officer and Chairman of our Board of Directors, also serves as Chief Executive Officer and

Chairman of the Board of Directors of Bimini and owns shares of common stock of Bimini. George H. Haas, our Chief Financial Officer,

Chief Investment Officer, Secretary and a member of our Board of Directors, also serves as the Chief Financial Officer, Chief

Investment Officer and Treasurer of Bimini and owns shares of common stock of Bimini. In addition, as of December 31, 2021, Bimini

owned

2,595,357

 shares, or

1.5

%, of the Company’s common stock.