Company: TWO-PC
Filing Date: 2025-04-02
Form Type: DEF 14A
Source: 0001465740-25-000090
Chunk: 31

Company: TWO HARBORS INVESTMENT CORP.
Filing Date: 2025-04-02
Form: DEF 14A
Chunk 31
---
  (1) |
| 50%           |     | Absolute TER                                    |     | <1.0%                 |     | 1.0%      |     | 9.0%      |     | >15.0%    |     | 8.9%             |
|               |     | Payout Continuum (% of Target)                  |     | 0%                    |     | 25%       |     | 100%      |     | 200%      |     | 99%              |
| 50%           |     | Relative TER compared to Performance Peer Group |     | < 25th %ile           |     | 25th %ile |     | 50th %ile |     | 80th %ile |     | 17.8th%ile       |
|               |     | Payout Continuum (% of Target)                  |     | 0%                    |     | 50%       |     | 100%      |     | 200%      |     | 0%               |

(1) Peer data used to calculate relative TER is not publicly available until well after the end of the company's December 31st fiscal year end. In light of this, for purposes of the 2024 performance year, the Committee established the relevant performance period for calculating TER as the 12-month period ended September 30, 2024. Actual payout percentages are calculated based on a linear interpolation across the performance continuum.

<div align='center'>30</div>

Strategic and Operational Performance Goals and Objectives . The Compensation Committee believes that strategic and operational performance is integral to the company’s overall performance and success and is, therefore, inextricably linked to the company’s financial results and long-term value creation for stockholders. The contributions of each of our executive officers, members of senior management and their respective teams are critical to ensuring that the company achieves its objective of delivering more stable performance, relative to RMBS portfolios without MSR, for our stockholders across changing market environments. Accordingly, strategic and operational performance comprises 30% of our executive officers’ target annual incentive compensation, with a payout continuum ranging from 0% to 200% based upon achievement of such goals and objectives.

In reviewing the 2024 performance year, the Compensation Committee noted a number of the company’s significant accomplishments during the year that were instrumental in driving strategic and operational achievements that support the company’s financial outlook and position the company to deliver long-term