Common use of Retraction Rights Clause in Contracts

Retraction Rights. The Investor acknowledges that the Shares are retractable by the Investor after a period of 12 months following the last day of the fiscal quarter of the Company in which the Shares being exercised for retraction (the “Retraction Shares”) were issued. Such retraction shall be effective (the "Effective Date") as follows: (a) for Retraction Shares for which a notice of retraction (a Retraction Notice) is received by the Company on or before January 31st, the Effective Date shall be the following March 31st; (b) for Retraction Shares for which a Retraction Notice is received by the Company on or before April 30th, the Effective Date shall be the following June 30th; (c) for Retraction Shares for which a Retraction Notice is received by the Company on or before July 31st, the Effective Date shall be the following September 30th; and (d) for Retraction Shares for which a Retraction Notice is received by the Company on or before October 31st, the Effective Date shall be the following December 31st. The Shares are retractable during any one year period after the issue date of the Share by delivering a Retraction Notice to the Company within 60 days before the 1st and any succeeding one year anniversary (each an “Anniversary”) of the last day of the calendar quarter (the “Determination Date’) in which fell the issue date of the Share. If the Investor does not deliver a Retraction Notice to the Company within 60 days before the applicable Anniversary, then the right of retraction by the Investor shall lapse and the Share shall not be retractable by the Investor except in connection with the next following Anniversary. A Retraction Notice must specify the share certificate number(s) representing the Retraction Shares and number of Shares the holder wishes to retract. The Company will redeem Shares for which it properly receives a Retraction Notice for an amount equal to the Retraction Price (as defined below) within 30 days from the Effective Date (the Initial Retraction Date) unless (the Retraction Limits): (a) as a result of any of the Retractions the Company would cease to qualify as a mortgage investment corporation; (b) the Company receives, during any one fiscal year, Retraction Notices for more than 20% of any one class of Retractable Shares outstanding as at the last day of the Company’s most recently completed fiscal year end prior to the Effective Date, and the directors of the Company determine in their sole discretion that sufficient funds are not available to the Company for the purposes of retraction; or (c) the Company receives, during any fiscal quarter, Retraction Notices for more than 5% of any one class of Retractable Shares outstanding as at the last day of the Company’s most recently completed fiscal year end prior to the Effective Date, and the directors of the Company determine in their sole discretion that sufficient funds are not available to the Company for the purposes of retraction, in which case the Company will redeem the Shares for which Retraction Notices have been received pro rata on the Initial Retraction Date up to the Retraction Limits. Shares for which Retraction Notices have been received and which have not been redeemed on the Initial Retraction Date shall be redeemed in the Company’s next fiscal quarter which Retraction Notices received equal less than the Retraction Limits and will be redeemed in priority to subsequent retraction requests. The amount paid by the Company in respect of each Share for which it properly receives a Retraction Notice (the Retraction Price) shall be the amount equal to the paid up capital of the Share plus any dividends then declared and payable but not yet paid on such share less the Share’s pro-rata proportion of any deficit in the Company at the Effective Date.

Retraction Rights. The Investor acknowledges that the Shares are retractable by the Investor after a period of 12 months following the last day of the fiscal quarter of the Company in which the Shares being exercised for retraction (the “Retraction Shares”) were issued. . Such retraction shall be effective (the "Effective Date") as follows: (a) for Retraction Shares for which a notice of retraction (a Retraction Notice) is received by the Company on or before January 31st, the Effective Date shall be the following March 31st; (b) for Retraction Shares for which a Retraction Notice is received by the Company on or before April 30th, the Effective Date shall be the following June 30th; (c) for Retraction Shares for which a Retraction Notice is received by the Company on or before July 31st, the Effective Date shall be the following September 30th; and (d) for Retraction Shares for which a Retraction Notice is received by the Company on or before October 31st, the Effective Date shall be the following December 31st. The Shares are retractable during any one year period after the issue date of the Share by delivering a Retraction Notice to the Company within 60 days before the 1st and any succeeding one year anniversary (each an “Anniversary”) of the last day of the calendar quarter (the “Determination Date’) in which fell the issue date of the Share. If the Investor does not deliver a Retraction Notice to the Company within 60 days before the applicable Anniversary, then the right of retraction by the Investor shall lapse and the Share shall not be retractable by the Investor except in connection with the next following Anniversary. A Retraction Notice must specify the share certificate number(s) representing the Retraction Shares and number of Shares the holder wishes to retract. The Company will redeem Shares for which it properly receives a Retraction Notice for an amount equal to the Retraction Price (as defined below) within 30 days from the Effective Date (the Initial Retraction Date) unless (the Retraction Limits): (a) as a result of any of the Retractions the Company would cease to qualify as a mortgage investment corporation; (b) the Company receives, during any one fiscal year, Retraction Notices for more than 20% of any one class of Retractable Shares outstanding as at the last day of the Company’s most recently completed fiscal year end prior to the Effective Date, and the directors of the Company determine in their sole discretion that sufficient funds are not available to the Company for the purposes of retraction; or (c) the Company receives, during any fiscal quarter, Retraction Notices for more than 5% of any one class of Retractable Shares outstanding as at the last day of the Company’s most recently completed fiscal year end prior to the Effective Date, and the directors of the Company determine in their sole discretion that sufficient funds are not available to the Company for the purposes of retraction, in which case the Company will redeem the Shares for which Retraction Notices have been received pro rata on the Initial Retraction Date up to the Retraction Limits. Shares for which Retraction Notices have been received and which have not been redeemed on the Initial Retraction Date shall be redeemed in the Company’s next fiscal quarter which Retraction Notices received equal less than the Retraction Limits and will be redeemed in priority to subsequent retraction requests. The amount paid by the Company in respect of each Share for which it properly receives a Retraction Notice (the Retraction Price) shall be the amount equal to the paid up capital of the Share plus any dividends then declared and payable but not yet paid on such share less the Share’s pro-rata proportion of any deficit in the Company at the Effective Date.

Retraction Rights. The Investor acknowledges that the Shares are retractable by the Investor after a period of 12 months following the last day of the fiscal quarter of the Company in which the Shares being exercised for retraction Investor. The effective date (the “Retraction Shares”Effective Date) were issued. Such of each retraction shall be effective (the "Effective Date") as followsbe: (a) for Retraction Shares for which a notice of retraction (a Retraction Notice) is received by the Company on or before January 31st, the Effective Date shall be the following March 31st; (b) for Retraction Shares for which a Retraction Notice is received by the Company on or before April 30th, the Effective Date shall be the following June 30th; (c) for Retraction Shares for which a Retraction Notice is received by the Company on or before July 31st, the Effective Date shall be the following September 30th; and (d) for Retraction Shares for which a Retraction Notice is received by the Company on or before October 31st, the Effective Date shall be the following December 31st. The specific retraction rights applicable to each class of Shares are as follows: (a) the Class A Shares are retractable during any one 5-year period after the issue date of the Class A Share by delivering a Retraction Notice to the Company within 60 days before the 1st and any 5th, 10th, 15th or succeeding one five year anniversary (each an “Anniversary”) of the last day of the calendar quarter (the “Determination Date’”) in which fell the issue date of the Share. If the Investor does not deliver a Retraction Notice to the Company within 60 days before the applicable Anniversary, then the right of retraction by the Investor shall lapse and the Share shall not be retractable by the Investor except in connection with the next following Anniversary. A ; (b) the Class B Shares are retractable during any 4-year period after the issue date of the Class B Share by delivering a Retraction Notice must specify to the share certificate number(sCompany within 60 days before the 4th, 8th, 12th or succeeding 4-year anniversary (each an “Anniversary”) representing of the last day of the calendar quarter (the “Determination Date”) in which fell the issue date of the Share. If the Investor does not deliver a Retraction Notice to the Company within 60 days before the applicable Anniversary, then the right of retraction by the Investor shall lapse and the Share shall not be retractable by the Investor except in connection with the next following Anniversary; (c) the Class C Shares are retractable during any 3-year period after the issue date of the Class C Share by delivering a Retraction Notice to the Company within 60 days before the 3rd, 6th, 9th or succeeding 3-year anniversary (each an “Anniversary”) of the last day of the calendar quarter (the “Determination Date”) in which fell the issue date of the Share. If the Investor does not deliver a Retraction Notice to the Company within 60 days before the applicable Anniversary, then the right of retraction by the Investor shall lapse and number the Share shall not be retractable by the Investor except in connection with the next following Anniversary; and (d) the Class D Shares are retractable during any 2-year period after the issue date of Shares the holder wishes Class D Share by delivering a Retraction Notice to retractthe Company within 60 days before the 2nd, 4th, 6th or succeeding 2-year anniversary (each an “Anniversary”) of the last day of the calendar quarter (the “Determination Date”) in which fell the issue date of the Share. If the Investor does not deliver a Retraction Notice to the Company within 60 days before the applicable Anniversary, then the right of retraction by the Investor shall lapse and the Share shall not be retractable by the Investor except in connection with the next following Anniversary. The Company will redeem Shares for which it properly receives a Retraction Notice for an amount equal to the Retraction Price (as defined below) within 30 days from the Effective Date (the Initial Retraction Date) unless (the Retraction Limits): (a) as a result of any of the Retractions the Company would cease to qualify as a mortgage investment corporation; (b) the Company receives, during any one fiscal year, Retraction Notices for more than 20% of any one class of Retractable Shares outstanding as at the last day of the Company’s most recently completed fiscal year end prior to the Effective Date, and the directors of the Company determine in their sole discretion that sufficient funds are not available to the Company for the purposes of retraction; or (c) the Company receives, during any fiscal quarter, Retraction Notices for more than 5% of any one class of Retractable Shares outstanding as at the last day of the Company’s most recently completed fiscal year end prior to the Effective Date, and the directors of the Company determine in their sole discretion that sufficient funds are not available to the Company for the purposes of retraction, in which case the Company will redeem the Shares for which Retraction Notices have been received pro rata on the Initial Retraction Date up to the Retraction Limits. Shares for which Retraction Notices have been received and which have not been redeemed on the Initial Retraction Date shall be redeemed in the Company’s next fiscal quarter which Retraction Notices received equal less than the Retraction Limits and will be redeemed in priority to subsequent retraction requests. A Retraction Notice must specify the Share Certificate ID # and number and class of Shares the Investor wishes to retract. The amount paid by the Company in respect of each Share for which it properly receives a Retraction Notice (the Retraction Price) shall be the amount equal to the paid up capital of the Share plus any dividends then declared and payable but not yet paid on such share less the Share’s pro-rata proportion of any deficit in the Company at the Effective Date.