Document:

Exhibit 10.1

 Exhibit 10.1 
 REGISTRATION RIGHTS AGREEMENT 
 BY AND AMONG 

 TWO HARBORS INVESTMENT CORP., 
 CAPITOL ACQUISITION CORP. 
 AND 
 CERTAIN PERSONS LISTED ON SCHEDULE 1 HERETO 
 dated as of 
 October 28, 2009 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
			
	 SECTION 1.
	  	DEFINITIONS.	  	1
			
	 SECTION 2.
	  	SHELF REGISTRATIONS.	  	3
			
	 SECTION 3.
	  	BLACK-OUT PERIODS.	  	4
			
	 SECTION 4.
	  	REGISTRATION PROCEDURES.	  	5
			
	 SECTION 5.
	  	INDEMNIFICATION.	  	7
			
	 SECTION 6.
	  	COVENANTS RELATING TO RULE 144.	  	9
			
	 SECTION 7.
	  	MISCELLANEOUS.	  	9

 REGISTRATION RIGHTS AGREEMENT 
 This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of October 28, 2009, is made and entered into by and
among Two Harbors Investment Corp., a Maryland corporation (the “Company”), Capitol Acquisition Corp., a Delaware corporation (“Capitol”), and certain persons listed on Schedule 1 hereto (such
persons, in their capacity as holders of Registrable Securities (as defined below), the “Holders” and each a “Holder”). Capitalized terms not otherwise defined herein shall have the meanings ascribed
to them in Section 1 hereto. 
 RECITALS: 
 WHEREAS, Pine River Capital Management L.P., a Delaware limited partnership (“Pine River”), the Company, Two
Harbors Merger Corp., a Delaware corporation and a wholly-owned subsidiary of the Company (“Merger Sub”), and Capitol have entered into an Agreement and Plan of Merger, dated as of June 11, 2009, as amended as of
August 17, 2009 and as of September 20, 2009 (the “Merger Agreement”); 
 WHEREAS, the Company
is in the process of registering shares of its common stock, par value $0.01 per share (“Common Stock”), to be issued in connection with the Merger (as defined below), warrants to purchase shares of Common Stock
(“Warrants”) and the shares of Common Stock issuable upon exercise of the Warrants with the Securities and Exchange Commission (the “Commission”) under the Securities Act (as defined below) pursuant to the
registration statement of the Company on Form S-4 (File No. 333-160199) (the “Registration Statement”); and 
 WHEREAS, the officers, directors and stockholders of Capitol set forth on Schedule 1 hereto (each a “Sponsor” and collectively the “Sponsors”) and
Nisswa Acquisition Master Fund Ltd, an investment vehicle managed by Pine River (the “Fund”), own certain warrants (“Capitol Warrants”) to purchase shares of common stock, par value $0.0001 per share,
of Capitol; 
 WHEREAS, in connection with the consummation of the Merger, the Capitol Warrants owned by the Sponsors and the
Fund will become Warrants to purchase Common Stock and, pursuant to the Merger Agreement, the Company has agreed to file, at Capitol’s expense, a registration statement with the Commission registering for resale such Warrants (and the
underlying shares of Common Stock); 
 WHEREAS, the Company and Capitol desire to enter into this Agreement with the Holders in
order to grant the Holders the registration rights contained herein. 
 NOW, THEREFORE, in consideration of the premises and the
mutual promises and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 Section 1. Definitions. As used in this Agreement, the following terms shall have the following meanings: 
 “Affiliate” shall mean, when used with reference to a specified Person, (i) any Person that directly or
indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the specified Person; (ii) any Person who, from time to time, is a member of the immediate family of a specified Person; (iii) any
Person who, from time to time, is an officer or director or manager of a specified Person; or (iv) any Person who, directly or indirectly, is the beneficial owner of

  

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50% or more of any class of equity securities or other ownership interests of the specified Person, or of which the specified Person is directly or indirectly the owner of 50% or more of any
class of equity securities or other ownership interests. 
 “Agreement” shall mean this Registration
Rights Agreement as originally executed and as amended, supplemented or restated from time to time. 
 “Board” shall mean the Board of Directors of the Company. 
 “Business
Day” shall mean each day other than a Saturday, a Sunday or any other day on which banking institutions in the State of New York are authorized or obligated by law or executive order to be closed. 
 “Capitol” shall have the meaning set forth in the introductory paragraph hereof. 
 “Capitol Warrants” shall have the meaning set forth in the Recitals hereof. 
 “Closing Date” shall have the meaning set forth in the Merger Agreement. 
 “Common Stock” shall have the meaning set forth in the Recitals hereof. 
 “Commission” shall have the meaning set forth in the Recitals hereof. 
 “Company” shall have the meaning set forth in the introductory paragraph hereof. 
 “Control” (including the terms “Controlling,” “Controlled by” and
“under common Control with”) shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person through the ownership of Voting Power, by contract or
otherwise. 
 “Effective Time” shall have the meaning set forth in the Merger Agreement. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended (or any corresponding provision of
succeeding law), and the rules and regulations thereunder. 
 “Fund” shall have the meaning set forth in
the Recitals hereof. 
 “Holder” shall mean each holder of the Capitol Warrants, listed in
Schedule 1 hereto, in his, her or its capacity as a holder, on or after the Effective Time, of Registrable Securities. For purposes of this Agreement, the Company may deem and treat the registered holder of a Registrable Security as the
Holder and absolute owner thereof, unless notified to the contrary in writing by the registered Holder thereof. 
 “Merger” shall have the meaning set forth in the Merger Agreement. 
 “Merger
Agreement” shall have the meaning set forth in the Recitals hereof. 
 “Merger Sub” shall
have the meaning set forth in the Recitals hereof. 
 “Person” shall mean any individual, partnership,
corporation, limited liability company, joint venture, association, trust, unincorporated organization or other governmental or legal entity. 
 “Pine River” shall have the meaning set forth in the Recitals hereof. 
  

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 “Registrable Securities” shall mean at any time on or after the
Effective Time (i) Warrants issued in connection with the Merger in exchange for the Capitol Warrants listed in Schedule 1 hereto, (ii) the shares of Common Stock that may be purchased upon exercise of such Warrants and
(iii) any class of equity securities of the Company or of a successor to the entire business of the Company which are issued in exchange for such Warrants or shares of Common Stock; provided, however, such Registrable Securities
shall cease to be Registrable Securities when (A) a registration statement with respect to the sale of such Registrable Securities shall have become effective under the Securities Act and all such Registrable Securities shall have been disposed
of in accordance with such registration statement or (B) such Registrable Securities shall have been sold under circumstances in which all of the applicable conditions of Rule 144 (or any successor provision) under the Securities Act are met.

 “Registration Expenses” shall mean (i) the fees and disbursements of counsel and independent
public accountants for the Company incurred in connection with the Company’s performance of or compliance with this Agreement, including the expenses of any special audits or “comfort” letters required by or incident to such
performance and compliance and (ii) all registration, filing and stock exchange fees, all fees and expenses of complying with securities or “blue sky” laws, all fees and expenses of custodians, transfer agents and registrars, all
printing expenses, messenger and delivery expenses and any fees and disbursements of one common counsel retained by Holders of a majority of the then outstanding Registrable Securities; provided, however, “Registration
Expenses” shall not include any out-of-pocket expenses of the Holders, transfer taxes, underwriting or brokerage commissions or discounts associated with effecting any sales of Registrable Securities that may be offered, which expenses
shall be borne by each Holder of Registrable Securities on a pro rata basis with respect to the Registrable Securities so sold. 
 “Securities Act” shall mean the Securities Act of 1933, as amended (or any successor corresponding provision of succeeding law), and the rules and regulations thereunder. 
 “Shelf Registration Statement” shall have the meaning set forth in Section 2(a) hereof. 
 “Sponsor” shall have the meaning set forth in the Recitals hereof. 
 “Stand-Off Period” shall have the meaning set forth in Section 5(f) hereof. 
 “Voting Power” shall mean voting securities or other voting interests ordinarily (and apart from rights accruing
under special circumstances) having the right to vote in the election of board members or Persons performing substantially equivalent tasks and responsibilities with respect to a particular entity. 
 “Warrants” shall have the meaning set forth in the Recitals hereof. 
 Section 2. Shelf Registrations. 
 (a) Shelf Registration. The Company agrees to use commercially reasonable efforts to file with the Commission a registration statement with respect to the Registrable Securities under the
Securities Act on the appropriate form for the offering to be made on a continuous basis pursuant to Rule 415 under the Securities Act (the “Shelf Registration Statement”), and will use commercially reasonable efforts to
cause such Shelf Registration Statement to be declared effective by the Commission at, or as soon as practicable after, the Closing Date. The Shelf Registration Statement shall be on an appropriate form and the Shelf Registration Statement and any
form of prospectus included therein (or prospectus supplement relating thereto) shall reflect the plan of distribution or method of sale as the Holders may from time to time notify the Company. 
  

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 (b) Effectiveness. Subject to the following sentences of this
Section 2(b) and to Section 3 hereof, the Company shall use commercially reasonable efforts to keep the Shelf Registration Statement continuously effective for the period beginning on the date on which the Shelf Registration
Statement is declared effective and ending on the second anniversary thereof. During the period that the Shelf Registration Statement is effective, the Company shall supplement or make amendments to the Shelf Registration Statement, if required by
the Securities Act (including to include any prospectus required by Section 10(a)(3) of the Securities Act) or if reasonably requested by the Holders (whether or not required by the form on which the Registrable Securities are being
registered), including to reflect any specific plan of distribution or method of sale, and shall use its commercially reasonable efforts to have such supplements and amendments declared effective, if required, as soon as practicable after filing. In
addition, if the Shelf Registration Statement is not on Form S-3 (or any similar or successor form) and during the period that the Shelf Registration Statement is effective the Company becomes eligible to use Form S-3 (or any similar or successor
form), the Company shall be entitled to amend the Shelf Registration Statement so that it becomes a registration statement on Form S-3 (or any similar or successor form), provided, however, that the Company shall use its best efforts
to have such amendment declared effective as soon as practicable after filing. Each Holder agrees that, in connection with any amendment filed pursuant to this Section 2(b) that is required to be declared effective by the Commission,
upon the filing of such amendment, such Holder will forthwith discontinue its disposition of Registrable Securities pursuant to the Shelf Registration Statement until such amendment is declared effective. 
 Section 3. Black-Out Periods. 
 Notwithstanding anything herein to the contrary, the Company shall have the right, exercisable from time to time by delivery of a notice authorized by the Board, on not more than four occasions during the
period of effectiveness of the Shelf Registration Statement, to require the Holders not to sell pursuant to the Shelf Registration Statement or similar document under the Securities Act filed pursuant to Section 2 hereof or to suspend
the effectiveness thereof if at the time of the delivery of such notice, (i) the Board has considered a plan to engage no later than 90 days following the date of such notice in a firm commitment underwritten public offering or (ii) a
majority of the independent directors of the Company has reasonably and in good faith determined that such registration and offering, continued effectiveness or sale would materially interfere with any material transaction involving the Company. If
the consummation of any business combination by the Company has occurred or is probable for purposes of Rule 3-05 or Article 11 of Regulation S-X under the Securities Act, the rights of the Holders to offer, sell or distribute any
Registrable Securities pursuant to the Shelf Registration Statement shall be suspended until the date on which the Company has filed the financial information required by Rule 3-05 or Article 11 of Regulation S-X to be included or
incorporated by reference, as applicable, in the Shelf Registration Statement. The Company, as soon as practicable, shall (i) give the Holders prompt written notice in the event that the Company has suspended sales of Registrable Securities
pursuant to this Section 3, (ii) give the Holders prompt written notice of the completion of such offering, the completion or disclosure of the material transaction, the filing of the required financial information with the
Commission, as the case may be, and (iii) promptly file any amendment or supplement necessary for the Shelf Registration Statement or the form of prospectus included therein in connection with the completion of such event. 
 Each Holder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in this
Section 3, such Holder will forthwith discontinue its disposition of Registrable Securities pursuant to the Shelf Registration Statement until such Holder’s receipt of the notice of completion of such event. 
  

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 Section 4. Registration Procedures. 
 (a) In connection with the filing of the Shelf Registration Statement as provided in this Agreement, the Company shall use commercially
reasonable efforts to, as expeditiously as reasonably practicable: 
 (i) prepare and file with the Commission
the Shelf Registration Statement (including the prospectus included therein and any amendment or supplement thereto) to effect such registration and use its commercially reasonable efforts to cause the Shelf Registration Statement to become and
remain effective for the period set forth in Section 2(b); provided, however, that before filing the Shelf Registration Statement or any amendments or supplements thereto, the Company will furnish copies of all such
documents proposed to be filed to counsel for the sellers of Registrable Securities covered by the Shelf Registration Statement and provide reasonable time for such sellers and their counsel to comment upon such documents if so requested by a
Holder; 
 (ii) prepare and file with the Commission such amendments and supplements to the Shelf Registration
Statement and the prospectus used in connection therewith as may be necessary to maintain the effectiveness of such registration and to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by the
Shelf Registration Statement during the period in which the Shelf Registration Statement is required to be kept effective; 
 (iii) furnish to each Holder of the securities being registered, without charge, such number of conformed copies of the Shelf Registration Statement and of each such amendment and supplement thereto (in
each case including all exhibits) other than those which are being incorporated into the Shelf Registration Statement by reference, such number of copies of the prospectus contained in the Shelf Registration Statement (including each complete
prospectus and any summary prospectus) and any other prospectus filed under Rule 424 under the Securities Act in conformity with the requirements of the Securities Act, and such other documents, including documents incorporated by reference, as the
Holders may reasonably request; 
 (iv) register or qualify all Registrable Securities under such other
securities or “blue sky” laws of such jurisdictions as the Holders and the underwriters of the Registrable Securities, if any, shall reasonably request, to keep such registration or qualification in effect for so long as the Shelf
Registration Statement remains in effect, and take any other action which may be reasonably necessary or advisable to enable the Holders to consummate the disposition in such jurisdiction of the Registrable Securities owned by the Holders, except
that the Company shall not for any such purpose be required to qualify generally to do business as a foreign company or to register as a broker or dealer in any jurisdiction where it would not otherwise be required to qualify but for this
Section 4(a)(iv), or to consent to general service of process in any such jurisdiction, or to be subject to any material tax obligation in any such jurisdiction where it is not then so subject; 
 (v) immediately notify the Holders if the Company becomes aware of the happening of any event as a result of which the
prospectus included in the Shelf Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances under which they were made, and, at the request of the Holders, promptly prepare and furnish to the Holders a reasonable number of copies of a

  

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supplement to or an amendment of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of Registrable Securities, such prospectus shall not include an untrue
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances under which they were made; 
 (vi) comply or continue to comply in all material respects with the Securities Act and the Exchange Act and with all
applicable rules and regulations of the Commission thereunder so as to enable any Holder to sell its Registrable Securities pursuant to Rule 144 promulgated under the Securities Act, as further agreed to in Section 6 hereof; 

(vii) make available to its security holders, as soon as reasonably practicable, an earnings statement covering the period
of at least 12 months, but not more than 18 months, beginning with the first calendar month after the effective date of the Shelf Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities
Act; 
 (viii) provide a transfer agent and registrar for all Registrable Securities covered by the Shelf
Registration Statement not later than the effective date of the Shelf Registration Statement; 
 (ix) in
connection with any sale, transfer or other disposition by any Holder of any Registrable Securities pursuant to the Shelf Registration Statement, cooperate with the Holders to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any Securities Act legend, and enable certificates for such Registrable Securities to be issued for such number of shares or warrants and registered in such names as the Holders may
reasonably request in writing at least two Business Days prior to any sale of Registrable Securities; 
 (x) list
all Registrable Securities covered by the Shelf Registration Statement on any securities exchange or national quotation system on which any such class of securities is then listed or quoted and cause to be satisfied all requirements and conditions
of such securities exchange or national quotation system to the listing or quoting of such securities that are reasonably within the control of the Company, including registering the applicable class of Registrable Securities under the Exchange Act,
if appropriate, and using commercially reasonable efforts to cause such registration to become effective pursuant to the rules of the Commission; 
 (xi) in connection with any sale, transfer or other disposition by any Holder of any Registrable Securities pursuant to Rule 144 promulgated under the Securities Act, cooperate with such Holder to
facilitate the timely preparation and delivery of certificates representing the Registrable Securities to be sold and not bearing any Securities Act legend, and enable certificates for such Registrable Securities to be for such number of shares or
warrants and registered in such name as the Holders may reasonably request in writing at least three Business Days prior to any sale of Registrable Securities; 
 (xii) notify each Holder, promptly after it shall receive notice thereof, of the time when the Shelf Registration Statement,
or any post-effective amendments to the Shelf Registration Statement, shall have become effective, or a supplement to any prospectus forming part of the Shelf Registration Statement has been filed or when any document is filed with the Commission
which would be incorporated by reference into the prospectus; 
  

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 (xiii) notify each Holder of any request by the Commission for the amendment
or supplement of the Shelf Registration Statement or prospectus for additional information; and 
 (xiv) advise
each Holder, promptly after it shall receive notice or obtain knowledge thereof, of (A) the issuance of any stop order, injunction or other order or requirement by the Commission suspending the effectiveness of the Shelf Registration Statement
or the initiation or threatening of any proceeding for such purpose and use all commercially reasonable efforts to prevent the issuance of any stop order, injunction or other order or requirement or to obtain its withdrawal if such stop order,
injunction or other order or requirement should be issued, (B) the suspension of the registration of the Registrable Securities in any state jurisdiction and (C) the removal of any such stop order, injunction or other order or requirement
or proceeding or the lifting of any such suspension. 
 (b) In connection with the filing of the Shelf Registration Statement,
each Holder shall furnish in writing to the Company such information regarding such Holder (and any of its Affiliates), the Registrable Securities to be sold, the intended method of distribution of such Registrable Securities and such other
information requested by the Company as is necessary or it deems advisable for inclusion in the Shelf Registration Statement pursuant to the Securities Act. Such writing shall expressly state that it is being furnished to the Company for use in the
preparation of a registration statement, preliminary prospectus, supplementary prospectus, final prospectus or amendment or supplement thereto, as the case may be. 
 Each Holder agrees that (i) upon receipt of any notice from the Company of the happening of any event of the kind described in Section 4(a)(v), such Holder will forthwith discontinue its
disposition of Registrable Securities pursuant to the Shelf Registration Statement until such Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 4(a)(v); (ii) upon receipt of any
notice from the Company of the happening of any event of the kind described in clause (A) of Section 4(a)(xiv), such Holder will discontinue its disposition of Registrable Securities pursuant to the Shelf Registration Statement
until such Holder’s receipt of the notice described in clause (C) of Section 4(a)(xiv); and (iii) upon receipt of any notice from the Company of the happening of any event of the kind described in clause (B) of
Section 4(a)(xiv), such Holder will discontinue its disposition of Registrable Securities pursuant to the Shelf Registration Statement in the applicable state jurisdiction(s) until such Holder’s receipt of the notice described in
clause (C) of Section 4(a)(xiv). 
 Section 5. Indemnification. 
 (a) Indemnification by the Company. The Company agrees to indemnify and hold harmless each Holder and each Person, if any, who
Controls such Holder against any losses, claims, damages, and expenses (including reasonable attorneys’ fees), joint or several, to which the Holders or any such indemnitees may become subject under the Securities Act or otherwise, insofar as
such losses, claims, damages, liabilities and expenses (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in
the Shelf Registration Statement, any preliminary prospectus, final prospectus or summary prospectus contained therein, or any amendment or supplement thereto, or arising out of or based upon any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading or any violation of the Securities Act or state securities laws or rules thereunder by
the Company relating to any action or inaction by the Company in connection with such registration, and the Company will reimburse each Holder for any reasonable legal or any other expenses reasonably incurred by it in connection with investigating
or defending any such loss, claim, liability, action or proceedings; provided, however, that the Company shall not be liable in any such case to the extent that any such loss,

  

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claim, damage, liability (or action or proceeding in respect thereof) or expense arises out of or is based upon an untrue statement or alleged statement or omission or alleged omission made in
the Shelf Registration Statement or any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement in reliance upon and in conformity with written information furnished to the Company by any Holder specifically
stating that it is for use in the preparation thereof. 
 (b) Indemnification by the Holders. Each Holder agrees to
indemnify and hold harmless (in the same manner and to the same extent as set forth in Section 5(a)) the Company, each member of the Board, each officer of the Company and each Person, if any, who Controls the Company, with respect to
any untrue statement or alleged untrue statement of a material fact in or omission or alleged omission to state a material fact from the Shelf Registration Statement, any preliminary prospectus, final prospectus or summary prospectus contained
therein, or any amendment or supplement thereto, if such untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by such Holder
specifically stating that it is for use in the preparation of the Shelf Registration Statement or any such preliminary prospectus, final prospectus, summary prospectus, amendment or supplement. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Company or any such Board member, officer or Controlling Person and shall survive the transfer of Registrable Securities by any Holder. The obligation of a Holder to indemnify will be
several and not joint among the Holders of Registrable Securities and the liability of each such Holder of Registrable Securities will be in proportion to and limited in all events to the net amount received by such Holder from the sale of
Registrable Securities pursuant to the Shelf Registration Statement. 
 (c) Notices of Claims, etc. Promptly after
receipt by an indemnified party of notice of the commencement of any action or proceeding involving a claim referred to in the preceding paragraphs of this Section 5, such indemnified party will, if a claim in respect thereof is to be
made against an indemnifying party, give written notice to the latter of the commencement of such action; provided, however, that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying
party of its obligations under the preceding paragraphs of this Section 5, except to the extent that the indemnifying party is actually prejudiced by such failure to give notice. In case any such action is brought against a Holder or a
Person who Controls a Holder, the Company shall be entitled to assume the defense thereof, and after notice from the Company to such indemnified party of its election so to assume the defense thereof, the Company shall not be liable to such
indemnified party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof. To the extent that the Company does not assume the defense of an action brought against a Holder or a Person who Controls a
Holder as provided in this Section 5(c), such indemnified party (or parties if there is more than one) shall be entitled to the reasonable legal expenses of common counsel for such indemnified party (or parties). In no event, shall the
Company be liable for any settlement effected without its written consent, which consent shall not be unreasonably withheld. 
 (d) Indemnification Payments. The indemnification required by this Section 5 shall be made by periodic payments of the amount thereof during the course of an investigation or defense, as and when bills are received or
expense, loss, damage or liability is incurred. The indemnifying party shall not settle any claim without the consent of the indemnified party unless such settlement involves a complete release of such indemnified party without any admission of
liability by the indemnified party. 
 (e) Contribution. If, for any reason, the foregoing indemnity is unavailable, or
is insufficient to hold harmless an indemnified party, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of the expense, loss, damage or liability, (i) in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one hand and the indemnified party on the other (determined by reference to, among other things, whether the untrue or

  

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alleged untrue statement of a material fact or omission relates to information supplied by the indemnifying party or the indemnified party and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such untrue statement or omission) or (ii) if the allocation provided by subclause (i) above is not permitted by applicable law in the proportion as is appropriate to reflect not only
the relative fault of the indemnifying party and the indemnified party, but also the relative benefits received by the indemnifying party on the one hand and the indemnified party on the other, as well as any other relevant equitable considerations.
No indemnified party guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any indemnifying party who was not guilty of such fraudulent misrepresentation, and
the liability for contribution of each Holder of Registrable Securities will be in proportion to and limited in all events to the net amount received by such Holder from the sale of Registrable Securities pursuant to the Shelf Registration
Statement. 
 (f) Market Stand-Off Agreement. Each Holder hereby agrees that it shall not, to the extent requested by the
Company or an underwriter of securities of the Company, directly or indirectly sell, offer, pledge, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell (including any short sale), grant any option,
right or warrant for the sale of or otherwise transfer or dispose of any Registrable Securities (other than to donees or partners of the Holder who agree to be similarly bound) within seven days prior to and for up to 60 days following the effective
date of a registration statement of the Company filed under the Securities Act or the date of an underwriting agreement with respect to an underwritten public offering of the Company’s securities (the “Stand-Off
Period”). 
 In order to enforce the foregoing covenant, the Company shall have the right to place restrictive
legends on the certificates representing the Registrable Securities subject to this Section 5 and to impose stop transfer instructions with respect to the Registrable Securities and such other Common Stock and Warrants of each Holder
(and the Common Stock, Warrants or securities of every other person subject to the foregoing restriction) until the end of such period. 
 Section 6. Covenants Relating To Rule 144. At such times as the Company becomes obligated to file reports in compliance with either Section 13 or 15(d) of the Exchange Act, the Company
covenants that it will file any reports required to be filed by it under the Securities Act and the Exchange Act and that it will take such further action as any Holder may reasonably request, all to the extent required from time to time to enable
Holders to sell Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by (a) Rule 144 under the Securities Act, as such rule may be amended from time to time or (b) any
similar rule or regulation hereafter adopted by the Commission. Upon the request of any Holder, the Company will deliver to such Holder a written statement as to whether it has complied with such requirements. 
 Section 7. Miscellaneous. 
 (a) Termination; Survival. The rights of each Holder under this Agreement shall terminate upon the date that all of the Registrable Securities held by such Holder may be sold during any three-month
period in a single transaction or series of transactions without volume limitations under Rule 144 (or any successor provision) under the Securities Act. Notwithstanding the foregoing, the obligations of the parties under Section 5
and paragraphs (d), (e) and (g) of this Section 7 shall survive the termination of this Agreement. 
 (b)
Expenses. All Registration Expenses incurred in connection with the Shelf Registration Statement under Section 2 shall be borne by Capitol, whether or not the Shelf Registration Statement becomes effective. 
  

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 (c) Counterparts. This Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement, and shall become effective when one or more such counterparts have been signed by each of the parties and delivered to each of the other parties. 
 (d) Applicable Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of New
York without regard to the choice of law provisions thereof. The parties consent to the exclusive jurisdiction of the United States District Court for the Southern District of New York in connection with any civil action concerning any controversy,
dispute or claim arising out of or relating to this Agreement, or any other agreement contemplated by, or otherwise with respect to, this Agreement or the breach hereof, unless such court would not have subject matter jurisdiction thereof, in which
event the parties consent to the jurisdiction of the State of New York. The parties hereby waive and agree not to assert in any litigation concerning this Agreement the doctrine of forum non conveniens. 
 (e) Waiver Of Jury Trial. THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN. 
 (f) Prior Agreement; Construction; Entire
Agreement. This Agreement, including the schedules hereto, constitutes the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior agreements and understandings between the parties, and all such prior
agreements and understandings are merged herein and shall not survive the execution and delivery hereof. 
 (g) Notices.
All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand or sent, postage prepaid, by registered, certified or express mail or reputable overnight courier service or be
telecopier and shall be deemed given when so delivered by hand or, if mailed, three days after mailing (one Business Day in the case of express mail or overnight courier service), addressed as follows: 
  

			
	    If to the Holder:	  	To the address indicated for such Holder in Schedule 1 hereto.
		
	    If to the Company:	  	 Two Harbors Investment Corp.
 601 Carlson Parkway, Suite 330
 Minnetonka, MN 55305
 Attention: Tim O’Brien
 Facsimile: (612) 238-3301

		
		  	with a copy to:
		
		  	 Clifford Chance US LLP
 31
West 52nd Street
 New York, New York 10019
 Attention: Jay L.
Bernstein
 Facsimile: 212-878-8375

 (h) Successors and Assigns. This Agreement shall inure to the benefit of and
be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may assign its rights or obligations hereunder to any successor to the Company’s business or with the prior
written consent of Holders of a majority of the then outstanding

  

 10 

 
Registrable Securities. Notwithstanding the foregoing, no assignee of the Company shall have any of the rights granted under this Agreement until such assignee shall acknowledge its rights and
obligations hereunder by a signed written agreement pursuant to which such assignee accepts such rights and obligations. 
 (i)
Headings. Headings are included solely for convenience of reference and if there is any conflict between headings and the text of this Agreement, the text shall control. 
 (j) Amendments And Waivers. The provisions of this Agreement may be amended or waived at any time only by the written agreement of
the Company and the Holders of a majority of the then outstanding Registrable Securities. Any waiver, permit, consent or approval of any kind or character on the part of any such Holders of any provision or condition of this Agreement must be made
in writing and shall be effective only to the extent specifically set forth in writing. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each Holder of Registrable Securities and the Company. 
 (k) Interpretation; Absence Of Presumption. For the purposes hereof, (i) words in the singular shall be held to include the
plural and vice versa and words of one gender shall be held to include the other gender as the context requires, (ii) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, paragraph or other references are to the Sections, paragraphs, or other references to this Agreement unless otherwise
specified, (iii) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires or unless otherwise specified, (iv) the
word “or” shall not be exclusive and (v) provisions shall apply, when appropriate, to successive events and transactions. 
 This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting or causing any instruments to be drafted. 
 (l) Severability. If any provision of this Agreement shall be or shall be held or deemed by a final order by a competent authority to
be invalid, inoperative or unenforceable, such circumstance shall not have the effect of rendering any other provision or provisions herein contained invalid, inoperative or unenforceable, but this Agreement shall be construed as if such invalid,
inoperative or unenforceable provision had never been contained herein so as to give full force and effect to the remaining such terms and provisions. 
 (m) Specific Performance; Other Rights. The parties recognize that various other rights rendered under this Agreement are unique and, accordingly, the parties shall, in addition to such other
remedies as may be available to them at law or in equity, have the right to enforce the rights under this Agreement by actions for injunctive relief and specific performance. 
 (n) Further Assurances. In connection with this Agreement, as well as all transactions and covenants contemplated by this Agreement,
each party hereto agrees to execute and deliver or cause to be executed and delivered such additional documents and instruments and to perform or cause to be performed such additional acts as may be necessary or appropriate to effectuate, carry out
and perform all of the terms, provisions and conditions of this Agreement and all such transactions and covenants contemplated by this Agreement. 
 (o) No Waiver. The waiver of any breach of any term or condition of this Agreement shall not operate as a waiver of any other breach of such term or condition or of any other term or condition, nor
shall any failure to enforce any provision hereof operate as a waiver of such provision or of any other provision hereof. 
 [SIGNATURE PAGE FOLLOWS] 
  

 11 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the
date first written above. 
  

					
	 TWO HARBORS INVESTMENT CORP.,
 a Maryland corporation

		
	By:	 	 /s/ Jeff Stolt

		 	  Name:	 	Jeff Stolt
		 	  Title:	 	Chief Financial Officer
	
	 CAPITOL ACQUISITION CORP.,
 a Delaware corporation

		
	By:	 	 /s/ Mark Ein

		 	  Name:	 	Mark Ein
		 	  Title:	 	CEO
	
	HOLDERS:
		
	By:	 	 /s/ Lawrence Calcano

		 	  Lawrence Calcano
		
	By:	 	 /s/ Brooke B. Coburn

		 	  Brooke B. Coburn
		
	By:	 	 /s/ Amanda Eilan

		 	  Amanda Eilan
		
	By:	 	 /s/ Mark D. Ein

		 	  Mark D. Ein
		
	By:	 	 /s/ Richard C. Donaldson

		 	  Richard C. Donaldson
		
	By:	 	 /s/ Raul J. Fernandez

		 	  Raul J. Fernandez

  

 12 

							
	By:	 	 /s/ Dr. Jeong H. Kim

		 	  Dr. Jeong H. Kim
		
	By:	 	 /s/ Ted Leonsis

		 	  Ted Leonsis
		
	By:	 	 /s/ Hugh Panero

		 	  Hugh Panero
		
	By:	 	 /s/ Arno Penzias

		 	  Arno Penzias
		
	By:	 	 /s/ Piyush Sodha

		 	  Piyush Sodha
		
	By:	 	 /s/ Thomas E. Wheeler

		 	  Thomas E. Wheeler
	
	ZG VENTURES LLC
		
	By:	 	 /s/ Miles Gilburne

		 	   Name:
	 	Miles Gilburne
		 	   Title:
	 	Managing Member
	
	 NISSWA ACQUISITION MASTER FUND LTD

		
	 By:
	 	 /s/ Jeff Stolt

		 	   Name:
	 	Jeff Stolt
		 	   Title:
	 	CFO-Pine River Capital Management, LP
		 		 	Its:	 	Investment Manager

  

 13 

 Schedule 1 
 THE HOLDERS 
 Sponsors: 
  

					
	 Name of the Holder
	  	 Number of
 Capitol Warrants Held
	  	 Address of the Holder

	 Lawrence Calcano
	  	250,000	  	[Address]
	 Brooke B. Coburn
	  	100,000	  	[Address]
	 Amanda Eilian
	  	160,000	  	[Address]
	 Mark D. Ein
	  	3,040,000	  	[Address]
	 Richard C. Donaldson
	  	200,000	  	[Address]
	 Raul J. Fernandez
	  	750,000	  	[Address]
	 Dr. Jeong H. Kim
	  	750,000	  	[Address]
	 Ted Leonsis
	  	100,000	  	[Address]
	 Hugh Panero
	  	100,000	  	[Address]
	 Arno Penzias
	  	200,000	  	[Address]
	 Piyush Sodha
	  	1,000,000	  	[Address]
	 Thomas E. Wheeler
	  	100,000	  	[Address]
	 ZG Ventures LLC
	  	250,000	  	[Address]
		  	 	  	
			
	 The Fund:
	  		  	
			
	 Name of the Holder
	  	Number of
Capitol Warrants Held	  	 Address of the Holder

	 Nisswa Acquisition Master Fund Ltd
	  	2,906,918	  	 601 Carlson Parkway, Suite 330
 Minnetonka, MN 55305

  

 14Exhibit 10.2

 Exhibit 10.2 
 AGREEMENT REGARDING WAIVER OF OWNERSHIP LIMIT 
 Two Harbors Investment Corp. 
 601 Carlson Parkway, Suite 330 
 Minnetonka, MN 55305 
 October 28, 2009 
 Integrated Holding Group LP 
 c/o Millennium Management LLC 
 666 Fifth Avenue, 8th Floor 
 New York, NY 10103 
  

	Re:	Share Ownership Limits 

 Two Harbors Investment
Corp. (the “Company”) has received your letter, dated as of the date hereof (the “Representation Letter”), requesting that the Company grant to Integrated Holding Group LP, a Delaware limited partnership (“Delaware LP”
and together with Integrated Core Strategies (US) LLC, a Delaware limited liability company that is wholly-owned by Delaware LP (“LLC”), (the “Holder”), an exception to the Common Stock Ownership Limit, as such term is defined in
the Articles of Amendment and Restatement (the “Charter”) of the Company, such that the Holder may acquire 632,974 shares of the Common Stock and Warrants exercisable into 5,146,600 shares of Common Stock (the “Millennium
Shares”) of the Company (the “Millennium Shares Exception”). Terms used but not otherwise defined herein have the meanings ascribed to them in the Charter. 
 Based upon the Representation Letter, the Company hereby advises you that, as of October 28, 2009, the Millennium Share Exception has been established. 
 The Millennium Share Exception is expressly conditioned on compliance by the Holder and any direct and indirect owners of an interest in Delaware LP
representing 20% or more of the capital or profits of Delaware LP (together with Delaware LP and LLC, an “Affiliate”) with each of the following agreements and conditions (collectively, the “Common Stock Ownership Limit Waiver
Conditions”) during the period (the “Waiver Period”) that the Holder is the direct or indirect Beneficial or Constructive Owner of Common Shares in excess of the Common Stock Ownership Limit: 
 (1) The information contained in the Representation Letter is as of the date hereof and shall remain during the Waiver Period true, compete
and correct, and the Holder has complied with all obligations of the Holder provided in the Representation Letter; 
 (2) The
Holder shall provide to the Company a bring-down representation letter within ten days after a request therefor has been made by the Company; 
 (3) The Holder and each Affiliate shall refrain, directly or indirectly, from actually acquiring, purchasing or intentionally becoming the Beneficial or Constructive Owners of any stock of the Company,
including any Common Shares, in excess of the Millennium Share Exception; 
 (4) In any private disposition of any of the
Holder’s or any Affiliate’s Common Shares by the Holder or any Affiliate (including a private disposition of ownership interests in an entity holding Common Shares), the Holder and the Affiliates agree that they will not dispose of such
shares in a

 
transaction in which the Holder or any Affiliate knows or has reason to believe after due investigation that such shares will be sold to any person who, prior to, or upon completion of, such
transaction, will be or become the direct or indirect Beneficial or Constructive Owner of more than 9.8% of the outstanding shares of Common Stock. 
 The Company hereby agrees to provide, upon request, an exception to the Common Stock Ownership Limit identical to the Millennium Share Exception (a “Subsequent Holder Exception”) to an affiliate of the Holder (a “Subsequent
Holder”) whose ownership structure is substantially identical to the ownership structure of the Holder as described in the Representation Letter, provided that (1) the Subsequent Holder provides the Company with a representation letter
that is identical to the Representation Letter in all material respects, (2) the Subsequent Holder Exception shall provide that the aggregate number of shares of Common Stock that may be held by the Subsequent Holder under the Subsequent Holder
Exception and the Holder under the Millennium Share Exception, in the aggregate, shall not exceed the number of the Millennium Shares set forth above, and (3) the Millennium Share Exception shall be modified to reflect the preceding
clause (2). 
 Notwithstanding the foregoing, the ownership by the Holder and each Affiliate of Common Stock shall remain subject to the
Ownership Limits imposed by the Charter to the extent that such ownership results in any “individual” (within the meaning of Section 542(a)(2) of the Internal Revenue Code of 1986, as amended (the “Code”)) Beneficially or
Constructively Owning shares of the Company in excess of the Common Stock Ownership Limit and Aggregate Stock Ownership Limit or would otherwise cause the Company to fail to qualify as a real estate investment trust under the Code. 
 In addition, if there is a failure to comply with any of the Common Stock Ownership Limit Waiver Conditions during the Waiver Period, the ownership of the
Millennium Shares by the Holder and any Affiliate shall, as of the date of such failure, become automatically subject to the Common Stock Ownership Limit imposed by the Charter and may result in the application of the remedies set forth in
paragraphs 7.2.1 and 7.2.2 of Article VII of the Charter with respect to any Common Shares Beneficially Owned or Constructively Owned by the Holder or any Affiliate in excess of the Common Stock Ownership Limit or Aggregate Stock Ownership
Limit. Nothing in this letter shall be deemed to grant any person (including the successors and assigns of the holders of the Millennium Shares, other than as expressly set forth herein) permission to own securities of the Company in excess of the
Company’s otherwise applicable Common Stock Ownership Limit or Aggregate Stock Ownership Limit. 

			
	Very truly yours,
	
	Two Harbors Investment Corp.
		
	By:	 	 /s/ Jeff Stolt

	Name:	 	Jeff Stolt
	Title:	 	Chief Financial Officer

 Accepted and Agreed to as of the date above: 
  

			
	Integrated Holding Group LP
	By:	 	Millennium Management LLC, its General Partner
		
	By:	 	 /s/ Larry Statsky

	Name:	 	Larry Statsky
	Title:	 	Chief Administrative Officer

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