Company: TWO-PC
Filing Date: 2025-11-12
Form Type: POSASR
Source: 0001104659-25-110386
Chunk: 3

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-11-12
Form: POSASR
Chunk 3
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 and (1) was committed in bad faith or (2) was the result of active and deliberate dishonesty; |

| · | the director or officer actually received an improper personal 
 benefit in money, property or services; or                     |

| · | in the case of any criminal proceeding, the director or officer        
 had reasonable cause to believe that the act or omission was unlawful. |

However, under the MGCL, a
Maryland corporation may not indemnify a director or officer in a suit by or in the right of the corporation in which the director or
officer was adjudged liable to the corporation or in a proceeding in which the director or officer was adjudged liable on the basis that
personal benefit was improperly received. A court may order indemnification if it determines that the director or officer is fairly and
reasonably entitled to indemnification, even though the director or officer did not meet the prescribed standard of conduct or was adjudged
liable on the basis that personal benefit was improperly received. However, indemnification for an adverse judgment in a suit by us or
in our right, or for a judgment of liability on the basis that personal benefit was improperly received, is limited to expenses.

In addition, the MGCL permits
a corporation to advance reasonable expenses to a director or officer upon the corporation’s receipt of:

| · | a written affirmation by the director or officer of his or                                                                 
 her good faith belief that he or she has met the standard of conduct necessary for indemnification by the corporation; and |

| · | a written undertaking by the director or officer or on the                                                                   
 director’s or officer’s behalf to repay the amount paid or reimbursed by the corporation if it is ultimately determined that 
 the director or officer did not meet the standard of conduct.                                                                |

Our charter authorizes us
to obligate ourselves and our bylaws obligate us, to the maximum extent permitted by Maryland law in effect from time to time, to indemnify
and, without requiring a preliminary determination of the ultimate entitlement to indemnification, pay or reimburse reasonable expenses
in advance of final disposition of a proceeding to:

| · | any present or former director or officer who is made or                                             
 threatened to be made a party to the proceeding by reason of his or her service in that capacity; or |

| · | any individual who, while a director or officer of our company                                                                              
 and at our request, serves or has served another corporation, real estate investment trust, partnership, joint venture, trust, employee