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  Exhibit 10.1    
    

 
    EXECUTION VERSION    
    

 
    FOURTH AMENDMENT TO MANAGEMENT AGREEMENT    
    

        This FOURTH AMENDMENT TO MANAGEMENT AGREEMENT (this "Fourth Amendment") is made as of
April 25, 2018 (the "Effective Date") by and among TWO HARBORS INVESTMENT CORP., a Maryland corporation, on behalf of itself and its Subsidiaries
(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 parties executed a Management Agreement, dated as of October 28, 2009, which was amended pursuant to (1) an Amendment to Management Agreement dated as of
December 19, 2012, (2) a Second Amendment to Management Agreement dated as of November 3, 2014, and (3) a Third
Amendment to Management Agreement dated as of June 28, 2017 (as amended, the "Management Agreement"), and wish to further amend its terms as set
forth herein; and 

        WHEREAS,
the Company has entered into an Agreement and Plan of Merger, dated as of April 25, 2018, executed by the Company, Eiger Merger Subsidiary LLC, and CYS
Investments, Inc. (the "Target") (the "Merger Agreement"), pursuant to which the Company will
acquire Target (the "Transaction"); 

        NOW
THEREFORE, in consideration of the mutual agreements herein set forth, the parties hereto agree as follows: 

        Section 1.    Amendment of Base Management Fee.    Contingent upon the closing of the transaction as
contemplated by the Merger Agreement, the Base Management Fee otherwise payable pursuant to Section 8 of the Management Agreement is hereby adjusted as follows: 

        (a)   from
the Effective Time until the first anniversary of the Effective Time, the Base Management Fee will be reduced to 0.75% per annum with respect to that portion of
Stockholders' Equity equal to the amount of the stockholders' equity of the Target as of the close of business on the business day on which the Effective Time occurs (to the extent not reflected in
the books and records of Target as of such date, the Stockholders' Equity with respect to Target shall be reduced by the expenses incurred by Target in connection with the transactions contemplated by
the Merger Agreement), and such amount shall not be subject to any adjustments provided in the Management Agreement or otherwise; 

        (b)   with
respect to the fiscal quarter in which the Effective Time occurs, in addition to any reduction resulting from Section 1(a) hereof, the Base Management Fee
shall be reduced by an additional $15,000,000; provided, however, that if such quarterly payment pursuant to the Management Agreement is less than
$15,000,000, the Manager shall pay to the Company in immediately available funds the difference between (i) $15,000,000 and (ii) the Base Management Fee payable to Manager with respect
to such quarter pursuant to the Management Agreement; and 

        (c)   with
respect to the fiscal quarter in which the Effective Time occurs, in addition to any reduction resulting from Sections 1(a) and (b) hereof, the Base
Management Fee shall be further reduced, up to an aggregate maximum amount of $3,300,000, by an additional amount equal to the sum of certain transaction-related expenses expected to be incurred by
the Company in connect with the Transaction, as set forth on Schedule 1(c) hereto (each individually an "Expense" and, collectively, the "Expenses");  provided, however, that if, after taking into
account the reductions resulting from Sections 1(a) and (b), such quarterly payment pursuant to the
Management Agreement is less than the aggregate amount of such Expenses, the Manager shall pay to the Company in immediately available funds the difference between (i) such Expenses and
(ii) the Base Management Fee payable to Manager, if any after taking into account the reductions 

resulting
from Sections 1(a) and (b), with respect to such quarter pursuant to the Management Agreement. 

For
purposes of the foregoing, "Effective Time" shall have the meaning specified in the Merger Agreement. "Base Management
Fee" and "Stockholders' Equity" shall have the meanings specified in the Management Agreement. 

        Section 2.    Third Party Beneficiaries.    Nothing in this Fourth Amendment, express or implied, is intended
to or shall confer upon any person other than the parties hereto any right, remedy or benefit of any nature whatsoever under or by reason of this Fourth Amendment, except that (1) the Target is
an intended third-party beneficiary of this Fourth Amendment and (2) the terms of this Fourth Amendment shall not be terminated, waived, amended or modified without the prior written consent of
the Target. 

        Section 3.    No Other Amendments.    Except as expressly set forth herein, the Management Agreement has not
been amended, revised or modified, and it remains in full force and effect. 

[SIGNATURE PAGE FOLLOWS]

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

 

 
 

							
	 	 	 TWO HARBORS INVESTMENT CORP.
	

 	
 	
  By:	
 	
/s/ THOMAS E. SIERING

 
	 	 	 	 	Name:	 	Thomas E. Siering
	 	 	 	 	Title:	 	Chief Executive Officer
	

 	
 	
 TWO HARBORS OPERATING COMPANY LLC

By: Two Harbors Investment Corp

Its: Managing Member
	

 	
 	
  By:	
 	
/s/ THOMAS E. SIERING

 
	 	 	 	 	Name:	 	Thomas E. Siering
	 	 	 	 	Title:	 	Chief Executive Officer
	

 	
 	
 PRCM ADVISERS LLC
	

 	
 	
  By:	
 	
/s/ NICK NUSBAUM

 
	 	 	 	 	Name:	 	Nick Nusbaum
	 	 	 	 	Title:	 	Chief Financial Officer

 

 

 
 

  Schedule 1(c)
  
    Transaction-Related Expenses    
    

        1.    Description of Expenses.    As a result of the Transaction, the Company expects to incur
certain expenses as follows (each an "Expense" and collectively the "Expenses"): 

	a.
	Sublease of Target Lease:    Target is party to a certain long term lease of the premises located at 10
CityPoint, Waltham, Massachusetts ("Target Lease"), which will no longer be required to operate the pro forma company following the Effective Time. The Company will obtain an independent valuation
(from an independent valuation agent mutually agreeable to the Company and Manager) to assess the projected expenses associated with the Target Lease and the expected revenue associated with a
sublease of the premises. If a sublease is not in place at the time of the independent valuation, then the independent valuation agent will project sublease income based on a reasonable forecast
taking into account the time required to obtain a sublease tenant and market terms for similar transactions. The Expense amount ascribed to the Target Lease will be determined by the net present value
of the aforementioned expense and revenue amounts.

	b.
	Write-off of Certain Target Assets:    The Company expects to write off certain leasehold improvements,
furniture and fixtures associated with the Target Lease described above. The Expense amount ascribed to such write-offs will be determined using the trial balance value under GAAP for such items,
which will include both the asset and accumulated depreciation of the asset.

	c.
	Termination of Target Contracts.    The parties will work in good faith to identify all of the Target's
obligations under contracts that are not expected to be needed following the Effective Time but which cannot be terminated at closing or were prepaid prior to the Effective Time and for which no
refund or rebate of the prepaid amount is available. The Expense amount ascribed to each such Target contract will be (i) for contracts that have not been prepaid, the lesser of (a) the
amount due and owing under the remaining term of such contract from and after the Effective Time and (b) the amount of any early termination, buy-out or similar fee or payment (inclusive of any
applicable penalty associated with such provision) under such contract and (ii) for prepaid contracts, the amount of the prepaid expense attributable to the period between the Effective Time
and the expiration of such contract. 

        2.    Determination of Expense Amounts.    The parties agree to work in good faith to
determine the amount of all Expenses prior to the Effective Time. 

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Exhibit 10.1

EXECUTION VERSION

FOURTH AMENDMENT TO MANAGEMENT AGREEMENT

Schedule 1(c) Transaction-Related ExpensesExhibit

Exhibit 10.1

RESTRICTED CASH AGREEMENT

AGREEMENT (the “Agreement”), dated as of February 21, 2018 (the “Grant Date”), between GNC Holdings, Inc., a Delaware corporation (the “Company”), and ________ (the “Participant”).  

1.    Grant of Restricted Cash.  Subject to the terms and conditions set forth in this Agreement, on the Grant Date the Company grants to the Participant an opportunity to receive a cash amount equal to $______ (the “Notional Amount”).  During the period prior to the applicable vest date(s), the Notional Amount shall not accrue any interest.  

2.    Vesting and Payment of Notional Amount.

(a)    Vesting.

(i)    Subject to Section 2.2(c), if the Participant remains continuously employed by the Company through the close of business on the applicable vesting date, the Notional Amount will vest in accordance with the following schedule:
 
	
				
	Vesting Date
	 
	Percent Vested
	 

	 
	 
	 
	 

	1st Anniversary of Grant Date
	 
	33 1/3%
	 

	 
	 
	 
	 

	2nd Anniversary of Grant Date
	 
	66 2/3%
	 

	 
	 
	 
	 

	3rd Anniversary of Grant Date
	 
	100%
	 

 
(ii)    There shall be no proportionate or partial vesting in the periods between the vesting dates and vesting shall occur only on each vesting date, provided that the Participant has not separated from service prior to such date.
(iii)    Notwithstanding the foregoing, a vesting may be delayed if, at the vesting date, the Participant is the subject of ongoing disciplinary or performance management investigations or proceedings concerning the circumstances under which forfeiture or clawback of this award could apply.  In such cases, the applicable portion of the award, if any, will vest following the completion of such investigations and proceedings to the extent the Corporation determines that forfeiture and/or clawback does not apply.

(b)    Payment.  On the next administratively practicable pay date following vesting of the applicable portion of the Notional Amount, the Participant will receive a cash payment equal to the vested portion of the Notional Amount, less any tax withholdings pursuant to Section 2(d) of this Agreement.  

(c)    Forfeiture.  The Participant shall forfeit to the Company, without compensation, any and all of the unpaid Notional Amount upon the Participant’s separation from service for any reason.  Additionally, in the event the Participant engages in Detrimental Activity, as defined in the Company’s 2015 Stock and Incentive Plan, prior to, or during the one year period after, any vesting of any portion of the Notional Amount, the unpaid Notional Amount shall be immediately forfeited to the Company and the Participant shall pay to the Company any Notional Amount(s) which had vested in the periods referred to above.

(d)    Withholding.  The Company may withhold from the Notional Amount an amount equal to the amount of all applicable foreign, federal, state, provincial and local taxes that the Company is required to withhold at any time.  

3.    No Obligation to Continue Employment.  This Agreement is not an agreement of employment.  This Agreement does not guarantee that the Company or its Affiliates will employ or retain, or continue to, employ or retain the Participant for any period of time, nor does it modify in any respect the Company’s (or any affiliate’s) right to terminate or modify the Participant’s employment or compensation.

4.    Transferability.  The Participant is prohibited to sell, transfer, pledge, hypothecate, assign or otherwise dispose of any rights to the Notional Amount.  Any attempted sale, transfer, pledge, hypothecation, assignment or other disposition of the Notional Amount in violation of this Agreement shall be void and of no effect and the Company shall have the right to disregard the same on its books and records.

5.    Amendment.  No amendment of any of the provisions of this Agreement shall adversely impair the rights of the Participant without the Participant’s consent, provided, however, the Board or the Committee may at any time and from time to time amend, in whole or in part, any or all of the provisions of this Agreement to comply with Section 409A of the Code and the regulations thereunder or any other applicable law and may also amend, suspend or terminate this Agreement as otherwise provided in the Plan.  This Agreement is intended to comply with the applicable requirements of Section 409A of the Code relating to “short-term deferrals” thereunder, and shall be limited, construed and interpreted in a manner so as to comply therewith.

6.    Notices.  Any notice or communication given hereunder shall be in writing and shall be deemed to have been duly given when delivered in person, or by regular United States mail, first class and prepaid, to the appropriate party at the address set forth below (or such other address as the party shall from time to time specify):

If to the Company, to:

GNC Holdings, Inc.
300 Sixth Avenue
Pittsburgh, Pennsylvania 15222
Attention: Chief Legal Officer

If to the Participant, to the address on file with the Company.

7.    Miscellaneous.

(a)    This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, legal representatives, successors and assigns.

(b)    This Agreement shall be governed and construed in accordance with the laws of Delaware (regardless of the law that might otherwise govern under applicable Delaware principles of conflict of laws).

(c)    This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one contract.

(d)    The failure of any party hereto at any time to require performance by another party of any provision of this Agreement shall not affect the right of such party to require performance of that provision, and any waiver by any party of any breach of any provision of this Agreement shall not be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any right under this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written.
 
	
					
	 
	GNC HOLDINGS, INC.

	 
	 

	 
	 

	 
	By:
	 

	 
	 

	 
	Name: Kevin G. Nowe

	 
	Title:   Senior Vice President, Chief Legal Officer and Chief Compliance Officer

	 
	 

	 
	 

	PARTICIPANT
	 

	 
	 

	 
	 

	By:
	 
	 
	 

	Name:

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