Exhibit 10.1



 Exhibit 10.1 
 MANAGEMENT AGREEMENT 
 THIS MANAGEMENT AGREEMENT is made as of
                    , 2009 by and among TWO HARBORS INVESTMENT CORP., a Maryland corporation (the “Company”), TWO HARBORS
OPERATING COMPANY LLC, a Delaware limited liability company (the “Operating Company”) and PRCM ADVISERS LLC, a Delaware limited liability company (together with its permitted assignees, the “Manager”). 

WHEREAS, the Company is a newly organized corporation that intends to elect to be taxed as a REIT for federal income tax purposes; 
 WHEREAS, Pine River Capital (as defined below) is registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the
“Advisers Act”), and the Manager is a wholly-owned subsidiary of Pine River Capital; and 
 WHEREAS, the Company and each of
the Subsidiaries desire to retain the Manager to provide investment advisory services to them on the terms and conditions hereinafter set forth, and the Manager wishes to be retained to provide such services. 
 NOW THEREFORE, in consideration of the mutual agreements herein set forth, the parties hereto agree as follows: 
 Section 1. Definitions. The following terms have the following meanings assigned to them: 
 (a) “Agreement” means this Management Agreement, as amended from time to time. 
 (b) “Bankruptcy” means, with respect to any Person, (a) the filing by such Person of a voluntary petition seeking liquidation,
reorganization, arrangement or readjustment, in any form, of its debts under Title 11 of the United States Code or any other federal, state or foreign insolvency law, or such Person’s filing an answer consenting to or acquiescing in any such
petition, (b) the making by such Person of any assignment for the benefit of its creditors, (c) the expiration of 60 days after the filing of an involuntary petition under Title 11 of the Unites States Code, an application for the
appointment of a receiver for a material portion of the assets of such Person, or an involuntary petition seeking liquidation, reorganization, arrangement or readjustment of its debts under any other federal, state or foreign insolvency law,
provided that the same shall not have been vacated, set aside or stayed within such 60-day period or (d) the entry against it of a final and non-appealable order for relief under any bankruptcy, insolvency or similar law now or
hereinafter in effect. 
 (c) “Base Management Fee” means a base management fee equal to 1.5% per annum, calculated and
paid (in cash) quarterly in arrears, of the Stockholders’ Equity. The Base Management Fee will be reduced, but not below zero, by the Company’s proportionate share of any securitization base management fees that Pine River receives in
connection with any securitizations in which the Company invests, based on the percentage of equity the Company holds in such securitizations. 
 (d) “Board of Directors” means the Board of Directors of the Company. 
 (e) “CLA Founders LLC”
means CLA Founders LLC, a Delaware limited liability company. 
 (f) “Code” means the Internal Revenue Code of 1986, as
amended. 







 (g) “Company” has the meaning set forth in the first paragraph of this Agreement.

 (h) “Company Account” has the meaning set forth in Section 5 of this Agreement. 
 (i) “Company Indemnified Party” has the meaning set forth in Section 11(b) of this Agreement. 
 (j) “Effective Termination Date” has the meaning set forth in Section 13(a) of this Agreement. 
 (k) “Excess Funds” has the meaning set forth in Section 2(m) of this Agreement. 
 (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (m) “Expenses” has the meaning set forth in Section 9 of this Agreement. 
 (n) “GAAP” means generally accepted accounting principles, as applied in the United States. 
 (o) “Governing Instruments” means, with regard to any entity, the articles or certificate of incorporation and bylaws in the case of a
corporation, certificate of limited partnership (if applicable) and the partnership agreement in the case of a general or limited partnership, the articles or certificate of formation and the operating agreement in the case of a limited liability
company, the trust instrument in the case of a trust, or similar governing documents, in each case as amended from time to time. 
 (p)
“Guidelines” has the meaning set forth in Section 2(b)(i) of this Agreement. 
 (q) “Indemnitee” has
the meaning set forth in Section 11(b) of this Agreement. 
 (r) “Indemnitor” has the meaning set forth in
Section 11(c) of this Agreement. 
 (s) “Independent Directors” means the members of the Board of Directors who are not
officers or employees of the Manager or any Person directly or indirectly controlling or controlled by the Manager, and who are otherwise “independent” in accordance with the Company’s Governing Instruments and policies and, if
applicable, the rules of any national securities exchange on which the Company’s common stock is listed. 
 (t) “Initial
Term” has the meaning set forth in Section 13(a) of this Agreement. 
 (u) “Investment Company Act” means the
Investment Company Act of 1940, as amended. 
 (v) “Investments” means the investments of the Company and the Subsidiaries.

 (w) “Manager” has the meaning set forth in the first paragraph of this Agreement. 
 (x) “Manager Indemnified Party” has the meaning set forth in Section 11(a) of this Agreement. 
 (y) “MBS” means mortgage-backed securities. 
  

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 (z) “Monitoring Services” has the meaning set forth in Section 2(b) of this
Agreement. 
 (aa) “Notice of Proposal to Negotiate” has the meaning set forth in Section 13(a) of this Agreement.

 (bb) “NYSE” means the New York Stock Exchange, Inc. 
 (cc) “Operating Company” has the meaning set forth in the first paragraph of this Agreement. 
 (dd) “Person” means any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated
association, any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such capacity on behalf of any of the foregoing. 
 (ee) “Pine River” means, separately and collectively, Pine River Capital and its direct and indirect subsidiaries; provided,
however, that the term “Pine River” shall not include the Company or any of the Subsidiaries. 
 (ff) “Pine River
Capital” means Pine River Capital Management L.P., a Delaware limited partnership. 
 (gg) “Portfolio Management
Services” has the meaning set forth in Section 2(b) of this Agreement. 
 (hh) “REIT” means a “real
estate investment trust” as defined under the Code. 
 (ii) “Renewal Term” has the meaning set forth in
Section 13(a) of this Agreement. 
 (jj) “Securities Act” means the Securities Act of 1933, as amended. 
 (kk) “Shared Services Agreement” means the Shared Facilities and Services Agreement, dated the date hereof, between the Manager and Pine
River Capital. 
 (ll) “Stockholders’ Equity” means: 
 (i) the sum of the net proceeds from any issuances of the Company’s equity securities since inception (allocated on a pro rata daily basis
for such issuances during the fiscal quarter of any such issuance), plus 
 (ii) the Company’s retained earnings at the end of the most
recently completed quarter (without taking into account any non-cash equity compensation expense incurred in current or prior periods), less 
 (iii) any amount that the Company pays for repurchases of its common stock since inception, any unrealized gains, losses or other items that do not affect realized net income (regardless of whether such items are included in other
comprehensive income or loss, or in net income), as adjusted to exclude 
  

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 (iv) one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between
the Manager and the Company’s Independent Directors and approved by a majority of the Company’s Independent Directors. 
 For purposes of
calculating Stockholders’ Equity, outstanding limited liability company interests in the Operating Company (other than limited liability company interests held by the Company) shall be treated as outstanding shares of capital stock of the
Company. 
 (mm) “Subsidiary” means any subsidiary of the Company; any partnership, the general partner of which is the
Company or any subsidiary of the Company; any limited liability company, the managing member of which is the Company or any subsidiary of the Company; and any corporation or other entity of which a majority of (i) the voting power of the voting
equity securities or (ii) the outstanding equity interests is owned, directly or indirectly, by the Company or any subsidiary of the Company. 
 (nn) “Sub-Management Agreement” has the meaning set forth in Section 2(e) of this Agreement. 
 (oo)
“Termination Fee” has the meaning set forth in Section 13(b) of this Agreement. 
 (pp) “Termination
Notice” has the meaning set forth in Section 13(a) of this Agreement. 
 (qq) “Treasury Regulations” means the
regulations promulgated under the Code as amended from time to time. 
 Section 2. Appointment and Duties of the Manager.

 (a) The Company and each of the Subsidiaries hereby appoints the Manager to manage the assets of the Company and the Subsidiaries subject
to the further terms and conditions set forth in this Agreement and the Manager hereby agrees to use its commercially reasonable efforts to perform each of the duties set forth herein. The appointment of the Manager shall be exclusive to the Manager
except to the extent that the Manager otherwise agrees, in its sole and absolute discretion, and except to the extent that the Manager elects, pursuant to the terms of this Agreement, to cause the duties of the Manager hereunder to be provided by
third parties. 
 (b) The Manager, in its capacity as manager of the assets and the day-to-day operations of the Company and the
Subsidiaries, at all times will be subject to the supervision of the Company’s Board of Directors and will have only such functions and authority as the Company may delegate to it including the functions and authority identified herein and
delegated to the Manager hereby. The Manager will be responsible for the day-to-day operations of the Company and the Subsidiaries and will perform (or cause to be performed) such services and activities relating to the assets and operations of the
Company and the Subsidiaries as may be appropriate, including: 
 (i) serving as the Company’s and the Subsidiaries’ consultant
with respect to the periodic review of the investment guidelines and other parameters for the Investments, financing activities and operations, any modifications to which shall be approved by a majority of the Independent Directors (such guidelines
as initially approved and attached hereto as Exhibit A, as the same may be modified with such approval, the “Guidelines”), and other policies for approval by the Board of Directors; 
  

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 (ii) investigating, analyzing and selecting possible investment opportunities and acquiring, financing,
retaining, selling, restructuring or disposing of Investments consistent with the Guidelines; 
 (iii) with respect to prospective
purchases, sales or exchanges of Investments, conducting negotiations on behalf of the Company and the Subsidiaries with sellers, purchasers and brokers and, if applicable, their respective agents and representatives; 
 (iv) negotiating and entering into, on behalf of the Company and the Subsidiaries, repurchase agreements, credit finance agreements, securitizations,
agreements relating to borrowings under programs established by the U.S. government, commercial papers, interest rate swap agreements and other hedging instruments, custodial agreements, warehouse facilities and all other agreements and engagements
required for the Company and the Subsidiaries to conduct their business; 
 (v) engaging and supervising, on behalf of the Company and the
Subsidiaries and at the Company’s expense, independent contractors which provide investment banking, securities brokerage, mortgage brokerage, other financial services, due diligence services, underwriting review services, legal and accounting
services, and all other services as may be required relating to Investments; 
 (vi) coordinating and managing operations of any joint
venture or co-investment interests held by the Company and the Subsidiaries and conducting all matters with the joint venture or co-investment partners; 
 (vii) providing executive and administrative personnel, office space and office services required in rendering services to the Company and the Subsidiaries; 
 (viii) administering the day-to-day operations and performing and supervising the performance of such other administrative functions necessary to the
management of the Company and the Subsidiaries as may be agreed upon by the Manager and the Board of Directors, including the collection of revenues and the payment of the debts and obligations of the Company and the Subsidiaries and maintenance of
appropriate computer and technological services to perform such administrative functions; 
 (ix) communicating on behalf of the Company and
the Subsidiaries with the holders of any of their equity or debt securities as required to satisfy the reporting and other requirements of any governmental bodies or agencies or trading markets and to maintain effective relations with such holders;

 (x) counseling the Company in connection with policy decisions to be made by the Board of Directors; 
 (xi) evaluating and recommending to the Board of Directors hedging strategies and engaging in hedging activities on behalf of the Company and the
Subsidiaries, consistent with such strategies as so modified from time to time, with the Company’s qualification as a REIT and with the Guidelines; 
 (xii) counseling the Company regarding the maintenance of its qualification as a REIT and monitoring compliance with the various REIT qualification tests and other rules set out in the Code and Treasury Regulations
thereunder and using commercially reasonable efforts to cause the Company to qualify for taxation as a REIT; 
  

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 (xiii) counseling the Company and the Subsidiaries regarding the maintenance of their exemptions from
the status of an investment company required to register under the Investment Company Act, monitoring compliance with the requirements for maintaining such exemptions and using commercially reasonable efforts to cause them to maintain such
exemptions from such status; 
 (xiv) assisting the Company and the Subsidiaries in developing criteria for asset purchase commitments that
are specifically tailored to the Company’s investment objectives and making available to the Company and the Subsidiaries its knowledge and experience with respect to MBS, mortgage loans, real estate, real estate-related securities, other real
estate-related assets and non-real estate-related assets; 
 (xv) furnishing reports and statistical and economic research to the Company
and the Subsidiaries regarding their activities and services performed for the Company and the Subsidiaries by the Manager; 
 (xvi)
monitoring the operating performance of Investments and providing periodic reports with respect thereto to the Board of Directors, including comparative information with respect to such operating performance and budgeted or projected operating
results; 
 (xvii) investing and reinvesting any moneys and securities of the Company and the Subsidiaries (including investing in
short-term Investments pending investment in other Investments, payment of fees, costs and expenses, or payments of dividends or distributions to stockholders and partners of the Company and the Subsidiaries) and advising the Company and the
Subsidiaries as to their capital structure and capital raising; 
 (xviii) causing the Company and the Subsidiaries to retain qualified
accountants, auditors and legal counsel, as applicable, to assist in developing appropriate accounting procedures and systems, internal controls and other compliance procedures and testing systems with respect to financial reporting obligations and
compliance with the provisions of the Code applicable to REITs and to conduct quarterly compliance reviews with respect thereto; 
 (xix)
assisting the Company and the Subsidiaries in qualifying to do business in all applicable jurisdictions and to obtain and maintain all appropriate licenses; 
 (xx) assisting the Company and the Subsidiaries in complying with all regulatory requirements applicable to them in respect of their business activities, including preparing or causing to be prepared all financial
statements required under applicable regulations and contractual undertakings and all reports and documents, if any, required under the Exchange Act, the Securities Act, or by the NYSE; 
 (xxi) assisting the Company and the Subsidiaries in taking all necessary action to enable them to make required tax filings and reports, including
soliciting stockholders and partners for required information to the extent required by the provisions of the Code applicable to REITs; 
 (xxii) placing, or arranging for the placement of, all orders pursuant to the Manager’s investment determinations for the Company and the Subsidiaries, either directly with the issuer or with a broker or dealer (including any
affiliated broker or dealer); 
 (xxiii) handling and resolving all claims, disputes or controversies (including all litigation,
arbitration, settlement or other proceedings or negotiations) in which the Company and/or the Subsidiaries may be involved or to which they may be subject arising out of their day-to-day operations (other than with the Manager or its affiliates),
subject to such limitations or parameters as may be imposed from time to time by the Board of Directors; 
  

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 (xxiv) using commercially reasonable efforts to cause expenses incurred by the Company and the
Subsidiaries or on their behalf to be commercially reasonable or commercially customary and within any budgeted parameters or expense guidelines set by the Board of Directors from time to time; 
 (xxv) representing and making recommendations to the Company and the Subsidiaries in connection with the purchase and financing of, and commitment to
purchase and finance, MBS, mortgage loans (including on a portfolio basis), real estate, real estate-related securities and loans, other real estate-related assets and non-real estate-related assets, and the sale and commitment to sell such assets;

 (xxvi) advising the Company and the Subsidiaries with respect to obtaining appropriate repurchase agreements, warehouse facilities or
other secured and unsecured forms of borrowing for their assets; 
 (xxvii) advising the Company on preparing, negotiating and entering
into, on the Company’s behalf, applications and agreements relating to programs established by the U.S. government; 
 (xxviii)
advising the Company and the Subsidiaries with respect to and structuring long-term financing vehicles for their portfolio of assets, and offering and selling securities publicly or privately in connection with any such structured financing;

 (xxix) performing such other services as may be required from time to time for management and other activities relating to the assets and
business of the Company and the Subsidiaries as the Board of Directors shall reasonably request or the Manager shall deem appropriate under the particular circumstances; and 
 (xxx) using commercially reasonable efforts to cause the Company and the Subsidiaries to comply with all applicable laws. 
 Without limiting the foregoing, the Manager will perform portfolio management services (the “Portfolio Management Services”) on behalf of the Company
and the Subsidiaries with respect to the Investments. Such services will include consulting with the Company and the Subsidiaries on the purchase and sale of, and other investment opportunities in connection with, the Company’s portfolio of
assets; the collection of information and the submission of reports pertaining to the Company’s assets, interest rates and general economic conditions; periodic review and evaluation of the performance of the Company’s portfolio of assets;
acting as liaison between the Company and the Subsidiaries and banking, mortgage banking, investment banking and other parties with respect to the purchase, financing and disposition of assets; and other customary functions related to portfolio
management. Additionally, the Manager will perform monitoring services (the “Monitoring Services”) on behalf of the Company and the Subsidiaries with respect to any loan servicing activities provided by third parties. Such
Monitoring Services will include negotiating servicing agreements; acting as a liaison between the servicers of the assets and the Company and the Subsidiaries; review of servicers’ delinquency, foreclosure and other reports on assets;
supervising claims filed under any insurance policies; and enforcing the obligation of any servicer to repurchase assets. 
 (c) For the
period and on the terms and conditions set forth in this Agreement, the Company and each of the Subsidiaries hereby constitutes, appoints and authorizes the Manager as its true 
  

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 and lawful agent and attorney-in-fact, in its name, place and stead, to negotiate, execute, deliver and enter into such
credit finance agreements and arrangements and securities repurchase and reverse repurchase agreements and arrangements, brokerage agreements, interest rate swap agreements, custodial agreements and such other agreements, instruments and
authorizations on their behalf, on such terms and conditions as the Manager, acting in its sole and absolute discretion, deems necessary or appropriate. This power of attorney is deemed to be coupled with an interest. 
 (d) The Manager may enter into agreements with other parties, including its affiliates, for the purpose of engaging one or more parties for and on
behalf, and at the sole cost and expense, of the Company and the Subsidiaries to provide property management, asset management, leasing, development and/or other services to the Company and the Subsidiaries (including Portfolio Management Services
and Monitoring Services) pursuant to agreement(s) with terms which are then customary for agreements regarding the provision of services to companies that have assets similar in type, quality and value to the assets of the Company and the
Subsidiaries; provided that (i) any such agreements entered into with affiliates of the Manager shall be (A) on terms no more favorable to such affiliate than would be obtained from a third party on an arm’s-length basis and
(B) to the extent the same do not fall within the provisions of the Guidelines, approved by a majority of the Independent Directors, (ii) with respect to Portfolio Management Services, (A) any such agreements shall be subject to the
Company’s prior written approval and (B) the Manager shall remain liable for the performance of such Portfolio Management Services, and (iii) with respect to Monitoring Services, any such agreements shall be subject to the
Company’s prior written approval. Notwithstanding the foregoing, the Shared Services Agreement shall not be subject to further review or approval by the Independent Directors prior to the expiration of its initial term, unless such agreement
shall be amended, in which case such amendment shall be subject to the foregoing limitations on agreements between the Manager and its affiliates. 
 (e) The Company and the Operating Company expressly acknowledge and agree that the Manager and Pine River Capital are, concurrent with this Agreement, entering into the Sub-Management Agreement, dated as of even date herewith, by and among
the Manager, Pine River Capital and CLA Founders LLC (the “Sub-Management Agreement”), and nothing herein shall limit the ability of the Manager or Pine River Capital to enter into and perform their respective obligations under such
Sub-Management Agreement or otherwise limit the effectiveness of such agreement. The Company represents and warrants that the Sub-Management Agreement has been duly authorized and approved by all necessary action of the Company. After the date of
this Agreement, to the extent that the Manager deems necessary or advisable, the Manager may, from time to time, propose to retain one or more additional entities for the provision of sub-advisory services to the Manager in order to enable the
Manager to provide the services to the Company and the Subsidiaries specified by this Agreement; provided that any such agreement (i) shall be on terms and conditions substantially identical to the terms and conditions of this Agreement
or otherwise not adverse to the Company and the Subsidiaries, and (ii) shall be approved by the Independent Directors of the Company. 
 (f) The Manager may retain, for and on behalf and at the sole cost and expense of the Company and the Subsidiaries, such services of accountants, legal counsel, appraisers, insurers, brokers, transfer agents, registrars, developers,
investment banks, financial advisors, due diligence firms, underwriting review firms, banks and other lenders and others as the Manager deems necessary or advisable in connection with the management and operations of the Company and the
Subsidiaries. Notwithstanding anything contained herein to the contrary, the Manager shall have the right to cause any such services to be rendered by its employees or affiliates. Except as otherwise provided herein, the Company and the Subsidiaries
shall pay or reimburse the Manager or its affiliates performing such services for the cost thereof; provided that such costs and reimbursements are no greater than those which would be payable to outside professionals or consultants engaged
to perform such services pursuant to agreements negotiated on an arm’s-length basis. 
  

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 (g) The Manager may effect transactions by or through the agency of another person with it or its
affiliates which have an arrangement under which that party or its affiliates will from time to time provide to or procure for the Manager and/or its affiliates goods, services or other benefits (including research and advisory services; economic
and political analysis, including valuation and performance measurement; market analysis, data and quotation services; computer hardware and software incidental to the above goods and services; clearing and custodian services and investment related
publications), the nature of which is such that provision can reasonably be expected to benefit the Company and the Subsidiaries as a whole and may contribute to an improvement in the performance of the Company and the Subsidiaries or the Manager or
its affiliates in providing services to the Company and the Subsidiaries on terms that no direct payment is made but instead the Manager and/or its affiliates undertake to place business with that party. 
 (h) In executing portfolio transactions and selecting brokers or dealers, the Manager will use its best efforts to seek on behalf of the Company and the
Subsidiaries the best overall terms available. In assessing the best overall terms available for any transaction, the Manager shall consider all factors that it deems relevant, including the breadth of the market in the security, the price of the
security, the financial condition and execution capability of the broker or dealer, and the reasonableness of the commission, if any, both for the specific transaction and on a continuing basis. In evaluating the best overall terms available, and in
selecting the broker or dealer to execute a particular transaction, the Manager may also consider whether such broker or dealer furnishes research and other information or services to the Manager. 
 (i) The Manager has no duty or obligation to seek in advance competitive bidding for the most favorable commission rate applicable to any particular
purchase, sale or other transaction, or to select any broker-dealer on the basis of its purported or “posted” commission rate, but will endeavor to be aware of the current level of charges of eligible broker-dealers and to minimize the
expense incurred for effecting purchases, sales and other transactions to the extent consistent with the interests and policies of the Company and the Subsidiaries. Although the Manager will generally seek competitive commission rates, it is not
required to pay the lowest commission or commission equivalent, provided that such decision is made to promote the best interests of the Company and the Subsidiaries. 
 (j) As frequently as the Manager may deem necessary or advisable, or at the direction of the Board of Directors, the Manager shall, at the sole cost and
expense of the Company and the Subsidiaries, prepare, or cause to be prepared, with respect to any Investment, reports and other information with respect to such Investment as may be reasonably requested by the Company. 
 (k) The Manager shall prepare, or cause to be prepared, at the sole cost and expense of the Company and the Subsidiaries, all reports, financial or
otherwise, with respect to the Company and the Subsidiaries reasonably required by the Board of Directors in order for the Company and the Subsidiaries to comply with their Governing Instruments or any other materials required to be filed with any
governmental body or agency, and shall prepare, or cause to be prepared, all materials and data necessary to complete such reports and other materials including an annual audit of the Company’s and the Subsidiaries’ books of account by a
nationally recognized registered independent public accounting firm. 
 (l) The Manager shall prepare regular reports for the Board of
Directors to enable the Board of Directors to review the Company’s and the Subsidiaries’ acquisitions, portfolio composition and characteristics, credit quality, performance and compliance with the Guidelines and policies approved by the
Board of Directors. 
  

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 (m) Notwithstanding anything contained in this Agreement to the contrary, except to the extent that the
payment of additional moneys is proven by the Company to have been required as a direct result of the Manager’s acts or omissions which result in the right of the Company and the Subsidiaries to terminate this Agreement pursuant to
Section 15 of this Agreement, the Manager shall not be required to expend money (“Excess Funds”) in connection with any expenses that are required to be paid for or reimbursed by the Company and the Subsidiaries pursuant to
Section 9 in excess of that contained in any applicable Company Account (as herein defined) or otherwise made available by the Company and the Subsidiaries to be expended by the Manager hereunder. Failure of the Manager to expend Excess Funds
out-of-pocket shall not give rise or be a contributing factor to the right of the Company and the Subsidiaries under Section 13(a) of this Agreement to terminate this Agreement due to the Manager’s unsatisfactory performance. 

(n) In performing its duties under this Section 2, the Manager shall be entitled to rely reasonably on qualified experts and professionals
(including accountants, legal counsel and other service providers) hired by the Manager at the Company’s and the Subsidiaries’ sole cost and expense. 
 Section 3. Devotion of Time; Additional Activities. 
 (a) The Manager and its affiliates will
provide the Company and the Subsidiaries with a management team, including a Chief Executive Officer, President, Chief Financial Officer, Chief Investment Officer, and other support personnel, to provide the management services to be provided by the
Manager to the Company and the Subsidiaries hereunder, the members of which team shall devote such portion of their time to the management of the Company and the Subsidiaries as is necessary to enable the Company and the Subsidiaries to operate
their business. 
 (b) The Manager agrees to offer the Company and the Subsidiaries the right to participate in all investment opportunities
that the Manager determines are appropriate for the Company and the Subsidiaries in view of their investment objectives, policies and strategies, and other relevant factors, subject to the exception that the Company and the Subsidiaries might not
participate in each such opportunity but will on an overall basis equitably participate with the Manager’s other clients in relevant investment opportunities in accordance with the Manager’s then prevailing investment allocation policy.
Nothing in this Agreement shall (i) prevent the Manager, Pine River or any of their affiliates, officers, directors, employees or personnel, from engaging in other businesses or from rendering services of any kind to any other Person, including
investing in, or rendering advisory services to others investing in, any type of business (including investments that meet the principal investment objectives of the Company), whether or not the investment objectives or policies of any such other
Person or entity are similar to those of the Company or (ii) in any way bind or restrict the Manager, Pine River or any of their affiliates, officers, directors, employees or personnel from buying, selling or trading any securities or
investments for their own accounts or for the account of others for whom the Manager, Pine River or any of their affiliates, officers, directors, employees or personnel may be acting. When making decisions where a conflict of interest may arise, the
Manager will endeavor to allocate investment and financing opportunities in a fair and equitable manner over time as between the Company and the Subsidiaries and the Manager’s other clients, in each case in accordance with the Manager’s
then prevailing allocation policy. 
 (c) Managers, partners, officers, employees, personnel and agents of the Manager or affiliates of the
Manager may serve as directors, officers, employees, personnel, agents, nominees or signatories for the Company and/or any Subsidiary, to the extent permitted by their Governing Instruments or by any resolutions duly adopted by the Board of
Directors pursuant to the Company’s Governing Instruments. When executing documents or otherwise acting in such capacities for the Company or the Subsidiaries, such persons shall use their respective titles in the Company or the Subsidiaries.

  

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 Section 4. Agency. The Manager shall act as agent of the Company and the Subsidiaries in
making, acquiring, financing and disposing of Investments, disbursing and collecting the funds of the Company and the Subsidiaries, paying the debts and fulfilling the obligations of the Company and the Subsidiaries, supervising the performance of
professionals engaged by or on behalf of the Company and the Subsidiaries and handling, prosecuting and settling any claims of or against the Company and the Subsidiaries, the Board of Directors, holders of the Company’s securities or
representatives or properties of the Company and the Subsidiaries. 
 Section 5. Bank Accounts. At the direction of the Board of
Directors, the Manager may establish and maintain one or more bank accounts in the name of the Company or any Subsidiary (any such account, a “Company Account”), and may collect and deposit funds into any such Company Account or
Company Accounts, and disburse funds from any such Company Account or Company Accounts, under such terms and conditions as the Board of Directors may approve; and the Manager shall from time to time render appropriate accountings of such collections
and payments to the Board of Directors and, upon request, to the auditors of the Company or any Subsidiary. 
 Section 6. Records;
Confidentiality. The Manager shall maintain appropriate books of accounts and records relating to services performed under this Agreement, and such books of account and records shall be accessible for inspection by representatives of the Company
or any Subsidiary at any time during normal business hours upon reasonable advance notice. The Manager shall keep confidential any and all information obtained in connection with the services rendered under this Agreement and shall not disclose any
such information (or use the same except in furtherance of its duties under this Agreement) to unaffiliated third parties except (i) with the prior written consent of the Board of Directors; (ii) to legal counsel, accountants and other
professional advisors; (iii) to appraisers, financing sources and others in the ordinary course of the Company’s business; (iv) to governmental officials having jurisdiction over the Company or any Subsidiary; (v) in connection
with any governmental or regulatory filings of the Company or any Subsidiary or disclosure or presentations to Company investors; or (vi) as required by law or legal process to which the Manager or any Person to whom disclosure is permitted
hereunder is a party. The foregoing shall not apply to information which has previously become publicly available through the actions of a Person other than the Manager not resulting from the Manager’s violation of this Section 6. The
provisions of this Section 6 shall survive the expiration or earlier termination of this Agreement for a period of one year. 
 Section 7. Obligations of Manager; Restrictions. 
 (a) The Manager shall require each seller or transferor of investment
assets to the Company and the Subsidiaries to make such representations and warranties regarding such assets as may, in the judgment of the Manager, be necessary and appropriate. In addition, the Manager shall take such other action as it deems
necessary or appropriate with regard to the protection of the Investments. 
 (b) The Manager shall refrain from any action that, in its sole
judgment, (i) is not in compliance with the Guidelines, (ii) would adversely and materially affect the status of the Company as a REIT under the Code, (iii) would adversely and materially affect the Company’s or any
Subsidiary’s status as an entity intended to be exempted or excluded from investment company status under the Investment Company Act or (iv) would violate any law, rule or regulation of any governmental body or agency having jurisdiction
over the Company or any Subsidiary or that would otherwise not be permitted by the Company’s Governing Instruments. If the Manager is ordered to take any such action by the Board of Directors, the Manager shall promptly notify the Board of
Directors of the Manager’s judgment 
  

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 that such action would adversely and materially affect such status or violate any such law, rule or regulation or the
Governing Instruments. Notwithstanding the foregoing, the Manager, its officers, stockholders, members, managers, personnel, directors, any Person controlling or controlled by the Manager and any Person providing sub-advisory services to the Manager
shall not be liable to the Company or any Subsidiary, the Board of Directors, or the Company’s or any Subsidiary’s stockholders, members or partners, for any act or omission by any such Person except as provided in Section 11 of this
Agreement. 
 (c) The Board of Directors shall periodically review the Guidelines and the Company’s portfolio of Investments but will
not review each proposed investment, except as otherwise provided herein. If a majority of the Independent Directors determine in their periodic review of transactions that a particular transaction does not comply with the Guidelines, then a
majority of the Independent Directors will consider what corrective action, if any, can be taken. The Manager shall be permitted to rely upon the direction of the Secretary of the Company to evidence the approval of the Board of Directors or the
Independent Directors with respect to a proposed investment. 
 (d) Neither the Company nor the Subsidiaries shall invest in any security
structured or issued by an entity managed by the Manager or any affiliate thereof, unless (i) the Investment is made in accordance with the Guidelines; (ii) such Investment is approved in advance by at least one of the Independent
Directors; and (iii) the Investment is made in accordance with applicable laws. 
 (e) The Manager shall use its best efforts to at all
times during the term of this Agreement maintain “errors and omissions” insurance coverage and other insurance coverage which is customarily carried by property, asset and investment managers performing functions similar to those of the
Manager under this Agreement with respect to assets similar to the assets of the Company and the Subsidiaries, in an amount which is comparable to that customarily maintained by other managers or servicers of similar assets. 
 Section 8. Compensation. 
 (a)
During the Initial Term and any Renewal Term (each as defined below), the Company shall pay the Manager the Base Management Fee quarterly in arrears commencing with the quarter in which this Agreement was executed (with such initial payment
pro-rated based on the number of days during such quarter that this Agreement was in effect). 
 (b) The Manager shall compute each
installment of the Base Management Fee within 30 days after the end of the fiscal quarter with respect to which such installment is payable. A copy of the computations made by the Manager to calculate such installment shall thereafter, for
informational purposes only and subject in any event to Section 13(a) of this Agreement, promptly be delivered to the Board of Directors and, upon such delivery, payment of such installment of the Base Management Fee shown therein shall be due
and payable in cash no later than the date which is five business days after the date of delivery to the Board of Directors of such computations. 
 (c) The Base Management Fee is subject to adjustment pursuant to and in accordance with the provisions of Section 13(a) of this Agreement. 
 Section 9. Expenses of the Company. The Company shall pay all of its expenses and shall reimburse the Manager for documented expenses of the Manager incurred on its behalf (collectively, the
“Expenses”) excepting those expenses that are specifically the responsibility of the Manager as set forth herein. Such costs and reimbursements shall be in amounts which are no greater than those which would be payable to outside
professionals or consultants engaged to perform such services pursuant to 
  

 - 12 - 








 agreements negotiated on an arm’s-length basis. Expenses include all costs and expenses which are expressly
designated elsewhere in this Agreement as the Company’s, together with the following: 
 (i) expenses in connection with the issuance
and transaction costs incident to the acquisition, disposition and financing of Investments; 
 (ii) costs of legal, tax, accounting,
consulting, auditing, administrative, and other similar services rendered for the Company and the Subsidiaries by providers retained by the Manager or, if provided by the Manager’s personnel, in amounts which are no greater than those which
would be payable to outside professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis; 
 (iii) the compensation and expenses of the Company’s directors and the cost of liability insurance to indemnify the Company’s directors and officers; 
 (iv) costs associated with the establishment and maintenance of any of the Company’s or any Subsidiary’s repurchase agreements, warehouse
facilities and other secured and unsecured forms of borrowings (including commitment fees, accounting fees, legal fees, closing and other similar costs) or any of the Company’s or any Subsidiary’s securities offerings; 
 (v) expenses in connection with the application for, and participation in, programs established by the U.S. government; 
 (vi) expenses connected with communications to holders of the Company’s or any Subsidiary’s securities and other bookkeeping and clerical work
necessary in maintaining relations with holders of such securities and in complying with the continuous reporting and other requirements of governmental bodies or agencies, including all costs of preparing and filing required reports with the
Securities and Exchange Commission, the costs payable by the Company to any transfer agent and registrar in connection with the listing and/or trading of the Company’s stock on any exchange, the fees payable by the Company to any such exchange
in connection with its listing, and costs of preparing, printing and mailing the Company’s annual report to its stockholders and proxy materials with respect to any meeting of the Company’s stockholders; 
 (vii) costs associated with any computer software or hardware, electronic equipment or purchased information technology services from third party
vendors that is used for the Company and the Subsidiaries; 
 (viii) expenses incurred by managers, officers, personnel and agents of the
Manager for travel or entertainment on the Company’s behalf and other out-of-pocket expenses incurred by managers, officers, personnel and agents of the Manager in connection with the purchase, financing, refinancing, sale or other disposition
of an Investment or establishment and maintenance of any repurchase agreements, warehouse facilities, borrowings under programs established by the U.S. government, other secured and unsecured forms of borrowings or any of the Company’s or any
Subsidiary’s securities offerings; 
 (ix) costs and expenses incurred with respect to market information systems and publications,
research publications and materials, including financial analytics and market data, and settlement, clearing and custodial fees and expenses; 
 (x) compensation and expenses of the Company’s custodian and transfer agent, if any; 
  

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 (xi) the costs of maintaining compliance with all federal, state and local rules and regulations or any
other regulatory agency; 
 (xii) all taxes and license fees; 
 (xiii) all insurance costs incurred in connection with the operation of the Company’s business, except for the costs attributable to the insurance
that the Manager elects to carry for itself and its personnel; provided, however, that the Company will be responsible for its pro rata portion of the premiums related to the Manager’s “errors and omissions”
insurance coverage, as provided below; 
 (xiv) costs and expenses incurred in contracting with third parties, including affiliates of the
Manager, for the servicing and special servicing of the assets of the Company and the Subsidiaries; 
 (xv) all other costs and expenses
relating to the business of the Company and the Subsidiaries and investment operations, including the costs and expenses of acquiring, owning, protecting, maintaining, developing and disposing of Investments, including appraisal, valuation,
reporting, audit and legal fees; 
 (xvi) expenses relating to any office(s) or office facilities, including disaster backup recovery sites
and facilities, maintained for the Company and the Subsidiaries or Investments separate from the office or offices of the Manager; 
 (xvii)
expenses connected with the payments of interest, dividends or distributions in cash or any other form authorized or caused to be made by the Board of Directors to or on account of holders of the Company’s or any Subsidiary’s securities,
including in connection with any dividend reinvestment plan; 
 (xviii) any judgment or settlement of pending or threatened proceedings
(whether civil, criminal or otherwise) against the Company or any Subsidiary, or against any trustee, director or officer of the Company or of any Subsidiary in his capacity as such for which the Company or any Subsidiary is required to indemnify
such trustee, director or officer by any court or governmental agency; 
 (xix) all other expenses actually incurred by the Manager (except
as described below) which are reasonably necessary for the performance by the Manager of its duties and functions under this Agreement; and 
 (xx) any costs and expenses (including those described above) incurred by a sub-adviser engaged by the Manager pursuant to Section 2(e) in connection with the provision of sub-advisory services in respect of the Manager, including such
costs and expenses of CLA Founders LLC; provided, however, that the reimbursement of any such costs and expenses shall be subject to the same limitations set forth in this Agreement on the reimbursement of the costs and expenses of the
Manager. 
 The Company shall have no obligation to reimburse the Manager for the salary, bonus, benefit and other compensation costs of the
Manager’s personnel who provide services to the Company under this Agreement, except that, the Company shall reimburse the Manager for the Company’s allocable share of the compensation paid by the Manager to its personnel serving as the
Company’s principal financial officer and general counsel and personnel hired by the Manager as in-house legal, tax, accounting, consulting, auditing, administrative, information technology, valuation, computer programming and development and
back-office resources to the Company. The Company’s share of such out of pocket 
  

 - 14 - 








 costs shall be based upon commercially reasonable estimates of the percentage of time devoted by such personnel of the
Manager to the Company’s affairs. The Manager shall provide the Company with such information as the Company may reasonably request to support the determination of the Company’s share of such costs. The Manager shall be responsible for the
compensation paid by the Manager to its personnel serving as the Company’s Chief Executive Officer, President, and Chief Investment Officer and the Manager’s investment professionals. 
 In addition, the Company will be required to pay the Company’s pro rata portion of (i) rent, telephone, utilities, office furniture,
equipment, machinery and other office, internal and overhead expenses of the Manager and its affiliates required for the operations of the Company and the Subsidiaries and (ii) premiums related to the “errors and omissions” insurance
coverage referred to in Section 7(e). These expenses will be allocated between the Manager and the Company based on the ratio of the Company’s proportion of net assets compared to all remaining net assets managed or held by Pine River or
managed or held by the Manager as calculated at each quarter end. The Manager and the Company will modify this allocation methodology, subject to the Independent Directors’ approval, if the allocation becomes inequitable. 
 The Manager may, at its option, elect not to seek reimbursement for certain expenses during a given quarterly period, which determination shall not be
deemed to construe a waiver of reimbursement for similar expenses in future periods. In the event that the Company’s business combination transaction (the “Business Combination Transaction”) with Capitol Acquisition Corp., a
Delaware corporation, is consummated, the Company will reimburse the Manager for all organizational, formation and transaction costs it has incurred on behalf of the Company, but the Company shall not be responsible for such costs in the event the
Business Combination Transaction is not consummated. 
 The provisions of this Section 9 shall survive the expiration or earlier
termination of this Agreement to the extent such expenses have previously been incurred or are incurred in connection with such expiration or termination. 
 Section 10. Calculations of Expenses. The Manager shall prepare a statement documenting the Expenses of the Company and the Subsidiaries and the Expenses incurred by the Manager on behalf of the Company
and the Subsidiaries during each fiscal quarter, and shall deliver such statement to the Company within 30 days after the end of each fiscal quarter. Expenses incurred by the Manager on behalf of the Company and the Subsidiaries shall be reimbursed
by the Company to the Manager on the fifth business day immediately following the date of delivery of such statement; provided, however, that such reimbursements may be offset by the Manager against amounts due to the Company and the
Subsidiaries. The provisions of this Section 10 shall survive the expiration or earlier termination of this Agreement. 
 Section 11. Limits of Manager Responsibility; Indemnification. 
 (a) The Manager assumes no responsibility under this
Agreement other than to render the services called for under this Agreement and shall not be responsible for any action of the Board of Directors in following or declining to follow any advice or recommendations of the Manager, including as set
forth in Section 7(b) of this Agreement. The Manager, CLA Founders LLC, their respective officers, stockholders, members, managers, personnel and directors, any Person controlling or controlled by the Manager or CLA Founders LLC and any Person
providing sub-advisory services to the Manager and the managers, officers, directors and personnel of the Manager, CLA Founders LLC and their respective officers, members, directors, managers and personnel will not be liable to the Company or any
Subsidiary, to the Board of Directors, or the Company’s or any Subsidiary’s stockholders, members or partners for any acts or omissions by any such Person (including trade errors that may result from ordinary negligence, such as errors in
the investment decision making process or in the trade process), 
  

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 pursuant to or in accordance with this Agreement, except by reason of acts constituting reckless disregard of the
Manager’s duties under this Agreement which has a material adverse effect on the Company and the Subsidiaries, willful misconduct or gross negligence, as determined by a final non-appealable order of a court of competent jurisdiction. The
Company and the Operating Company shall, to the full extent lawful, reimburse, indemnify and hold the Manager, CLA Founders LLC, their respective officers, stockholders, directors, members and personnel, any Person controlling or controlled by the
Manager or CLA Founders LLC and any Person providing sub-advisory services to the Manager, together with the managers, officers, directors and personnel of the Manager, CLA Founders LLC and their respective officers, members, directors, managers and
personnel (each a “Manager Indemnified Party”), harmless of and from any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including attorneys’ fees) in respect of or arising
from any acts or omissions of such Manager Indemnified Party not constituting such Manager Indemnified Party’s reckless disregard of the Manager’s duties under this Agreement which has a material adverse effect on the Company and the
Subsidiaries, willful misconduct or gross negligence. 
 (b) The Manager shall, to the full extent lawful, reimburse, indemnify and hold the
Company (or any Subsidiary) and its directors and officers (each, a “Company Indemnified Party” and together with a Manager Indemnified Party, the “Indemnitee”), harmless of and from any and all expenses, losses,
damages, liabilities, demands, charges and claims of any nature whatsoever (including attorneys’ fees) in respect of or arising from the Manager’s reckless disregard of the Manager’s duties under this Agreement which has a material
adverse effect on the Company and the Subsidiaries, willful misconduct or gross negligence. 
 (c) The Indemnitee will promptly notify the
party against whom indemnity is claimed (the “Indemnitor”) of any claim for which it seeks indemnification; provided, however, that the failure to so notify the Indemnitor will not relieve the Indemnitor from any
liability which it may have hereunder, except to the extent such failure actually prejudices the Indemnitor. The Indemnitor shall have the right to assume the defense and settlement of such claim; provided, that the Indemnitor notifies the
Indemnitee of its election to assume such defense and settlement within 30 days after the Indemnitee gives the Indemnitor notice of the claim. In such case, the Indemnitee will not settle or compromise such claim, and the Indemnitor will not be
liable for any such settlement made without its prior written consent. If the Indemnitor is entitled to, and does, assume such defense by delivering the aforementioned notice to the Indemnitee, the Indemnitee will (i) have the right to approve
the Indemnitor’s counsel (which approval will not be unreasonably withheld, delayed or conditioned), (ii) be obligated to cooperate in furnishing evidence and testimony and in any other manner in which the Indemnitor may reasonably request
and (iii) be entitled to participate in (but not control) the defense of any such action, with its own counsel and at its own expense. 
 Section 12. No Joint Venture. Nothing in this Agreement shall be construed to make the Company (or any Subsidiary) and the Manager partners or joint venturers or impose any liability as such on either of them. 
 Section 13. Term; Termination. 
 (a) Until this Agreement is terminated in accordance with its terms, this Agreement shall be in effect until [            ], 2012 (the “Initial Term”) and shall be
automatically renewed for a one-year term (a “Renewal Term”) upon the expiration of the Initial Term and on each anniversary date thereafter unless at least two-thirds of all of the Independent Directors or the holders of a majority
of the outstanding shares of common stock (other than those shares held by Pine River or its affiliates) agree that (i) there has been unsatisfactory performance by the Manager that is materially detrimental to the Company and the Subsidiaries
or (ii) the compensation payable to the Manager hereunder is unfair; 
  

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 provided that the Company shall not have the right to terminate this Agreement under clause (ii) above if the
Manager agrees to continue to provide the services under this Agreement at a reduced fee that at least two-thirds of all of the Independent Directors determines to be fair pursuant to the procedure set forth below. If the Company elects not to renew
this Agreement at the expiration of the Initial Term or any Renewal Term as set forth above, the Company shall deliver to the Manager prior written notice (the “Termination Notice”) of the Company’s intention not to renew this
Agreement based upon the terms set forth in this Section 13(a) not less than 180 days prior to the expiration of the then existing term. If the Company so elects not to renew this Agreement, the Company shall designate the date (the
“Effective Termination Date”), not less than 180 days from the date of the notice, on which the Manager shall cease to provide services under this Agreement, and this Agreement shall terminate on such date; provided,
however, that in the event that such Termination Notice is given in connection with a determination that the compensation payable to the Manager is unfair, the Manager shall have the right to renegotiate such compensation by delivering to the
Company, no fewer than 45 days prior to the prospective Effective Termination Date, written notice (any such notice, a “Notice of Proposal to Negotiate”) of its intention to renegotiate its compensation under this Agreement.
Thereupon, the Company (represented by the Independent Directors) and the Manager shall endeavor to negotiate the revised compensation payable to the Manager under this Agreement. In the event that the Manager and at least two-thirds of all of the
Independent Directors agree to the terms of the revised compensation to be payable to the Manager within 45 days following the receipt of the Notice of Proposal to Negotiate, the Termination Notice shall be deemed of no force and effect and this
Agreement shall continue in full force and effect on the terms stated in this Agreement, except that the compensation payable to the Manager hereunder shall be the revised compensation then agreed upon by the parties to this Agreement. The Company
and the Manager agree to execute and deliver an amendment to this Agreement setting forth such revised compensation promptly upon reaching an agreement regarding same. In the event that the Company and the Manager are unable to agree to the terms of
the revised compensation to be payable to the Manager during such 45-day period, this Agreement shall terminate, such termination to be effective on the date which is the later of (A) 10 days following the end of such 45-day period and
(B) the Effective Termination Date originally set forth in the Termination Notice. 
 (b) In recognition of the level of the upfront
effort required by the Manager to structure and acquire the assets of the Company and the Subsidiaries and the commitment of resources by the Manager, in the event that this Agreement is terminated in accordance with the provisions of
Section 13(a) or Section 15(b) of this Agreement, the Company shall pay to the Manager, on the date on which such termination is effective, a termination fee (the “Termination Fee”) equal to three times the sum of the
average annual Base Management Fee earned by the Manager during the 24-month period immediately preceding the date of such termination, calculated as of the end of the most recently completed fiscal quarter prior to the date of termination. The
obligation of the Company to pay the Termination Fee shall survive the termination of this Agreement. 
 (c) No later than 180 days prior to
the anniversary date of this Agreement of any year during the Initial Term or Renewal Term, the Manager may deliver written notice to the Company informing it of the Manager’s intention to decline to renew this Agreement, whereupon this
Agreement shall not be renewed and extended and this Agreement shall terminate effective on the anniversary date of this Agreement next following the delivery of such notice. The Company is not required to pay to the Manager the Termination Fee if
the Manager terminates this Agreement pursuant to this Section 13(c). 
 (d) If this Agreement is terminated pursuant to Section 13
or Section 15 of this Agreement, such termination shall be without any further liability or obligation of either party to the other, except as provided in Sections 6, 9, 10, 13(b), 15(b), and 16 of this Agreement. In addition, Sections 11,
13(d) and 21 of this Agreement shall survive termination of this Agreement. 
  

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 Section 14. Assignment. 
 (a) Except as set forth in Section 14(b) of this Agreement, this Agreement shall terminate automatically in the event of its “assignment”
(as defined under the Advisers Act), in whole or in part, by the Manager, unless such assignment is consented to in writing by the Company with the consent of a majority of the Independent Directors; provided, however, that no such consent shall be
required in the case of an assignment by the Manager to Pine River or any of its affiliates. Any such permitted assignment to an affiliate shall bind the assignee under this Agreement in the same manner as the Manager is bound, and the Manager shall
be liable to the Company for all errors or omissions of the assignee under any such assignment. In addition, the assignee shall execute and deliver to the Company a counterpart of this Agreement naming such assignee as Manager. This Agreement shall
not be assigned by the Company without the prior written consent of the Manager, except in the case of assignment by the Company to another REIT or other organization which is a successor (by merger, consolidation, purchase of assets, or similar
transaction) to the Company, in which case such successor organization shall be bound under this Agreement and by the terms of such assignment in the same manner as the Company is bound under this Agreement. 
 (b) Notwithstanding any provision of this Agreement, the Manager may subcontract and assign any or all of its responsibilities under Sections 2(b),
2(c) and 2(d) of this Agreement to any of its affiliates in accordance with the terms of this Agreement applicable to any such subcontract or assignment, and the Company hereby consents to any such assignment and subcontracting. In addition,
provided that the Manager provides prior written notice to the Company for informational purposes only, nothing contained in this Agreement shall preclude any pledge, hypothecation or other transfer of any amounts payable to the Manager under
this Agreement. In addition, the Manager may assign this Agreement to any of its affiliates without the approval of the Independent Directors. 
 Section 15. Termination for Cause. 
 (a) The Company may terminate this Agreement effective upon 30 days’ prior
written notice of termination from the Company to the Manager, without payment of any Termination Fee, if (i) the Manager, its agents or its assignees materially breaches any provision of this Agreement and such breach shall continue for a
period of 30 days after written notice thereof specifying such breach and requesting that the same be remedied in such 30-day period (or 90 days after written notice of such breach if the Manager takes steps to cure such breach within 30 days of the
written notice), (ii) the Manager engages in any act of fraud, misappropriation of funds, or embezzlement against the Company or any Subsidiary, (iii) there is an event of any gross negligence on the part of the Manager in the performance
of its duties under this Agreement, (iv) there is a commencement of any proceeding relating to the Manager’s Bankruptcy or insolvency, including an order for relief in an involuntary bankruptcy case or the Manager authorizing or filing a
voluntary bankruptcy petition, (v) there is a dissolution of the Manager or (vi) the Manager is convicted of (including a plea of nolo contendere) a felony. 
 (b) The Manager may terminate this Agreement effective upon 60 days’ prior written notice of termination to the Company in the event that the
Company shall default in the performance or observance of any material term, condition or covenant contained in this Agreement and such default shall continue for a period of 30 days after written notice thereof specifying such default and
requesting that the same be remedied in such 30-day period. The Company is required to pay to the Manager the Termination Fee if the termination of this Agreement is made pursuant to this Section 15(b). 
 (c) The Manager may terminate this Agreement, without payment of any Termination Fee, in the event the Company becomes regulated as an “investment
company” under the Investment Company Act, with such termination deemed to have occurred immediately prior to such event. 
  

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 Section 16. Action Upon Termination. From and after the effective date of termination of this
Agreement, pursuant to Sections 13 or 15 of this Agreement, the Manager shall not be entitled to compensation for further services under this Agreement, but shall be paid all compensation accruing to the date of termination and, if terminated
pursuant to Section 13(a) or Section 15(b), the applicable Termination Fee. Upon such termination, the Manager shall forthwith: 
 (i) after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled, pay over to the Company or a Subsidiary all money collected and held for the account of the Company or a Subsidiary pursuant to
this Agreement; 
 (ii) deliver to the Board of Directors a full accounting, including a statement showing all payments collected by it and
a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board of Directors with respect to the Company or a Subsidiary; and 
 (iii) deliver to the Board of Directors all property and documents of the Company or any Subsidiary then in the custody of the Manager. 
 Section 17. Release of Money or Other Property Upon Written Request. The Manager agrees that any money or other property of the Company or
any Subsidiary held by the Manager under this Agreement shall be held by the Manager as custodian for the Company or Subsidiary, and the Manager’s records shall be appropriately marked clearly to reflect the ownership of such money or other
property by the Company or such Subsidiary. Upon the receipt by the Manager of a written request signed by a duly authorized officer of the Company requesting the Manager to release to the Company or any Subsidiary any money or other property then
held by the Manager for the account of the Company or any Subsidiary under this Agreement, the Manager shall release such money or other property to the Company or any Subsidiary within a reasonable period of time, but in no event later than 30 days
following such request. The Manager shall not be liable to the Company, any Subsidiary, the Independent Directors, or the Company’s or a Subsidiary’s stockholders, members or partners for any acts performed or omissions to act by the
Company or any Subsidiary in connection with the money or other property released to the Company or any Subsidiary in accordance with the second sentence of this Section 17. The Company and any Subsidiary shall indemnify the Manager and the
other Manager Indemnified Parties against any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever, which arise in connection with the Manager’s release of such money or other property to the
Company or any Subsidiary in accordance with the terms of this Section 17. Indemnification pursuant to this provision shall be in addition to any right of the Manager or any such other Manager Indemnified Party to indemnification under
Section 11 of this Agreement. 
 Section 18. Notices. Unless expressly provided otherwise in this Agreement, all notices,
requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given, made and received when delivered against receipt or upon actual receipt of (i) personal
delivery, (ii) delivery by reputable overnight courier, (iii) delivery by facsimile transmission with telephonic confirmation or (iv) delivery by registered or certified mail, postage prepaid, return receipt requested, addressed as
set forth below: 
  

	 	(a)	If to the Company: 

 Two Harbors Investment Corp.

 601 Carlson Parkway 
 Suite
330 
 Minnetonka, MN 55305 
 Attention: [            ] 
  

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	 	(b)	If to the Manager: 

 PRCM Advisers LLC 
 601 Carlson Parkway 
 Suite 330 

Minnetonka, MN 55305 
 Attention:
[            ] 
 Either party may alter the address to which communications or copies are to be
sent by giving notice of such change of address in conformity with the provisions of this Section 18 for the giving of notice. 
 Section 19. Binding Nature of Agreement; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and permitted
assigns as provided in this Agreement. 
 Section 20. Entire Agreement. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter of this Agreement, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature
whatsoever with respect to the subject matter of this Agreement. The express terms of this Agreement control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms of this Agreement. This Agreement may
not be modified or amended other than by an agreement in writing signed by the parties hereto. 
 Section 21. GOVERNING LAW. THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES TO THE CONTRARY.

 Section 22. No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of any party
hereto, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of
any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. No waiver of any provision hereunder shall be
effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
 Section 23. Headings. The
headings of the sections of this Agreement have been inserted for convenience of reference only and shall not be deemed part of this Agreement. 
 Section 24. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together
constitute one and the same instrument. This Agreement shall become binding when one or more counterparts of this Agreement, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

  

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 Section 25. Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction. 
 Section 26. Gender. Words used herein regardless
of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 
 [SIGNATURE PAGE FOLLOWS] 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

  

			
	 TWO HARBORS INVESTMENT CORP.

		
	 By:
	 	  

	Name:	 	
	 Title:
	 	


  

			
	 TWO HARBORS OPERATING COMPANY LLC

		
	 By:
	 	  

	Name:	 	
	Title:	 	


  

			
	 PRCM ADVISERS LLC

		
	 By:
	 	  

	Name:	 	
	Title:	 	









 Exhibit A 
  

	•	 	 No investment shall be made that would cause the Company to fail to qualify as a REIT for U.S. federal income tax purposes; and 


  

	•	 	 No investment shall be made that would cause the Company to be required to register as an investment company under the Investment Company Act.



  

	•	 	 The Company’s assets will be invested within the Company’s target assets, consisting primarily of Agency RMBS and non-Agency RMBS that will generate
attractive returns while having a moderate risk profile; not more than 10% of the Company’s investment portfolio may be invested in assets other than Agency RMBS, non-Agency RMBS, and investments related thereto. 



 

	•	 	 Until appropriate investments can be identified, the Company may invest available cash in interest-bearing, short-term investments, including money market accounts
and/or funds, that are consistent with (i) the Company’s intention to qualify as a REIT, and (ii) the Company’s and each Subsidiary’s exemption from “investment company” status under the Investment Company Act.



 For purposes of the above, “Agency RMBS” means residential mortgage-backed securities (“RMBS”) for
which a U.S. government agency (including the Government National Mortgage Association) or a federally chartered corporation (including the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation) guarantees payments of
principal and interest on the securities and “non-Agency RMBS” means RMBS that are not issued or guaranteed by a U.S. government agency or a federally chartered corporation. 
  

 Exh. A-1