Document:

Exhibit 10.2

Exhibit 10.2

Execution Version

THIS MASTER REPURCHASE AND SECURITIES CONTRACT, dated as of March 31, 2010 (this
“Agreement”), is made by and between STARWOOD PROPERTY MORTGAGE SUB-1, L.L.C., a Delaware
limited liability company (as more specifically defined below, “Seller”) and WELLS FARGO
BANK, NATIONAL ASSOCIATION, a national banking association (as more specifically defined below,
“Buyer”). Seller and Buyer (each a “Party”) hereby agree as follows:

ARTICLE 1

APPLICABILITY

Section 1.01 Applicability. Subject to the terms and conditions of the Repurchase
Documents, on the Closing Date and at the request of Seller, the Parties may enter into
transactions in which Seller agrees to sell, transfer and assign to Buyer certain Assets and all
related rights in and interests related to such Assets on a servicing released basis, against the
transfer of funds by Buyer representing the Purchase Price for such Assets, with a simultaneous
agreement by Buyer to transfer to Seller and Seller to repurchase such Assets in a repurchase
transaction at a date not later than the Maturity Date, against the transfer of funds by Seller
representing the Repurchase Price for such Assets.

ARTICLE 2

DEFINITIONS AND INTERPRETATION

“40 Act”: The Investment Company Act of 1940, as amended, restated or modified from
time to time

“Accelerated Repurchase Date”: Defined in Section 10.02.

“Account Control Agreement”: A bank account control agreement in favor of Buyer with
respect to any bank account related to a Purchased Asset, substantially in the form attached as
Exhibit G hereto.

“Actual Knowledge”: With respect to any Person, the actual knowledge of such Person
without further inquiry or investigation; provided, that for the avoidance of doubt, with respect
to Seller, Guarantor, Manager, the Intermediate Starwood Entities and Sub-Servicer, such actual
knowledge shall include the knowledge of all such Persons collectively and each of their respective
employees, officers, directors and agents (and with respect to agents, solely to those agents who
worked on the acquisition of the Assets or this Transaction) of any of them.

“Additional Advance”: Defined in Section 3.03.

“Affiliate”: With respect to any Person, any other Person directly or indirectly
Controlling, Controlled by, or under common Control with, such Person.

 

 

“Alternative Rate”: A per annum rate based on an index approximating the behavior of
LIBOR, as determined by Buyer in its discretion.

“Anti–Terrorism Laws”: Any Requirements of Law relating to money laundering or
terrorism, including Executive Order 13224 signed into law on September 23, 2001, the regulations
promulgated by the Office of Foreign Assets Control of the Treasury Department, and the Patriot
Act.

“Applicable Percentage”: For each Purchased Asset as of any date, the applicable
percentage determined by Buyer for such Purchased Asset on the Closing Date and set forth in the
Confirmation for such Purchased Asset, up to the Maximum Applicable Percentage.

“Asset”: Any Whole Loan or, in the case of the B Note Assets, a Junior Interest, the
Underlying Mortgaged Property for which is included in the categories for Types of Mortgaged
Property.

“B Note Assets”: Shall mean the Purchased Assets set forth on Exhibit H
attached hereto.

“Bankruptcy Code”: Title 11 of the United States Code.

“Blank Assignment Documents”: Defined in Section 6.02(j).

“Book Value”: For any Purchased Asset as of any date, an amount, as certified by
Seller in the related Transaction Request and Confirmation, equal to the lesser of (a) the
outstanding principal amount or par value thereof as of such date, and (b) the price that Seller
initially paid or advanced in respect thereof, minus principal payments received by Seller, and as
further reduced by losses realized and writedowns taken by Seller.

“Business Day”: Any day other than a Saturday or a Sunday (a) on which banks in the
States of New York, California or North Carolina are not authorized or obligated by law or
executive order to be closed, or (b) if the term “Business Day” is used in connection with the
determination of LIBOR, dealings in Dollar deposits are carried on in the London interbank market.

“Buyer”: Wells Fargo Bank, National Association, in its capacity as Buyer under this
Agreement and the other Repurchase Documents.

“Buyer’s Margin Percentage”: For any Purchased Asset as of any date, the percentage
equivalent of the quotient obtained by dividing one (1) by the Applicable Percentage for such
Purchased Asset as of such date.

“Capital Lease Obligations”: With respect to any Person, the amount of all
obligations of such Person to pay rent or other amounts under a lease of property to the extent and
in the amount that such obligations are required to be classified and accounted for as a capital
lease on a balance sheet of such Person.

 

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“Capital Stock”: Any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent equity ownership
interests in a Person which is not a corporation, including, without limitation, any and all member
or other equivalent interests in any limited liability company, and any and all warrants or options
to purchase any of the foregoing.

“Carlson, Bank One and Constellation Purchased Assets”: Each of the Purchased Assets
described on Exhibit I attached hereto.

“Change of Control”: The occurrence of any of the following events: (a) prior to an
internalization of management by Guarantor, if Manager is no longer the manager of Guarantor; (b)
after such time as Guarantor is internally managed, any “person” or “group” (within the meaning of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) shall become, or obtain rights (whether by means of warrants, options or otherwise) to
become, the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act),
directly or indirectly, of a percentage of the total voting power of all classes of Capital Stock
of Guarantor entitled to vote generally in the election of directors, of 20% or more; (c) change in
Control of Manager and/or Starwood Capital Group Global, L.P. from the Person or Persons who are
directly or indirectly Controlling such entities on the date hereof; or (d) each of either
Guarantor or the Intermediate Starwood Entities shall cease to own and control, of record and
beneficially, directly or indirectly 100% of the outstanding Capital Stock of Seller.
Notwithstanding the foregoing, Buyer shall not be deemed to approve or to have approved any
internalization of management by Guarantor as a result of this definition or any other provision
herein, other than to the extent actually approved pursuant to Section 8.14 or Section
10.01(g).

“Class”: With respect to an Asset, such Asset’s classification as one of the
following: Whole Loan or Junior Interest.

“Closing Certificate”: A true and correct certificate in the form of
Exhibit D, executed by a Responsible Officer of Seller.

“Closing Date”: March 31, 2010.

“Code”: The Internal Revenue Code of 1986, as amended.

“Collection Account”: A segregated interest-bearing account established at Collection
Account Bank, in the name of Seller, pledged to Buyer and subject to a Controlled Account
Agreement.

“Collection Account Bank”: Wells Fargo Bank, National Association, or any other bank
requested by Seller and approved by Buyer in its discretion.

“Commitment Fee”: An amount equal to twenty-five basis points (0.25%) multiplied by
the Maximum Amount.

“Compliance Certificate”: A true and correct certificate in the form of
Exhibit E, executed by a Responsible Officer of Seller.

 

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“Confirmation”: A purchase confirmation in the form of Exhibit B, duly
completed, executed and delivered by Seller and Buyer in accordance with Section 3.01.

“Contingent Liabilities”: With respect to any Person as of any date, all of the
following as of such date: (a) liabilities and obligations (including any Guarantee Obligations) of
such Person in respect of “off–balance sheet arrangements” (as defined in the Off–Balance Sheet
Rules defined below), (b) obligations, including Guarantee Obligations, whether or not required to
be disclosed in the footnotes to such Person’s financial statements, guaranteeing in whole or in
part any Non–Recourse Indebtedness, lease, dividend or other obligation, excluding, however, (i)
contractual indemnities (including any indemnity or price–adjustment provision relating to the
purchase or sale of securities or other assets), and (ii) guarantees of non–monetary obligations
which have not yet been called on or quantified, of such Person or any other Person, and
(c) forward commitments or obligations to fund or provide proceeds with respect to any loan or
other financing which is obligatory and non–discretionary on the part of the lender. The amount of
any Contingent Liabilities described in the preceding clause (b) shall be deemed to be (i) with
respect to a guarantee of interest or interest and principal, or operating income guarantee, the
sum of all payments required to be made thereunder (which, in the case of an operating income
guarantee, shall be deemed to be equal to the debt service for the note secured thereby), through
(x) in the case of an interest or interest and principal guarantee, the stated date of maturity of
the obligation (and commencing on the date interest could first be payable thereunder), or (y) in
the case of an operating income guarantee, the date through which such guarantee will remain in
effect, and (ii) with respect to all guarantees not covered by the preceding clause (i), an amount
equal to the stated or determinable amount of the primary obligation in respect of which such
guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability
in respect thereof (assuming such Person is required to perform thereunder) as recorded on the
balance sheet and in the footnotes to the most recent financial statements of such Person.
“Off–Balance Sheet Rules” means the Disclosure in Management’s Discussion and Analysis
About Off–Balance Sheet Arrangements and Aggregate Contractual Obligations, Securities Act Release
Nos. 33–8182; 34–47264; FR–67 International Series Release No. 1266 File No. S7–42–02, 68 Fed. Reg.
5982 (Feb. 5, 2003) (codified at 17 CFR Parts 228, 229 and 249).

“Contractual Obligation”: With respect to any Person, any provision of any securities
issued by such Person or any indenture, mortgage, deed of trust, deed to secure debt, contract,
undertaking, agreement, instrument or other document to which such Person is a party or by which it
or any of its property or assets are bound or are subject.

“Control”: With respect to any Person, the direct or indirect possession of the power
to direct or cause the direction of the management or policies of such Person, whether through the
ability to exercise voting power, by contract or otherwise. “Controlling,” “Controlled” and “under
common Control” have correlative meanings.

“Controlled Account Agreement”: A control agreement with respect to the Collection
Account and the Servicing Agreement Account, each, dated as of the date of this Agreement, each
among Seller, Buyer and Collection Account Bank, each of which agreements shall be substantially in
the form of Exhibit J attached hereto.

 

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“Credit Event”: Defined in the Fee and Pricing Letter, which definition is
incorporated herein by reference.

“Current Mark-to-Market Value”: For any Purchased Asset as of any date, the market
value for such Purchased Asset as of such date as determined by Buyer in its discretion (a) with
reference to the market value of the Underlying Mortgaged Property, and (b) taking into account
such other criteria (other than current interest rates and spreads) as and to the extent that Buyer
deems appropriate in its discretion, including, as appropriate, market conditions, credit quality,
liquidity of position, subordination and delinquency status and aging, which market value, in each
case, may be determined to be zero. The Current Mark-to-Market Value of each Purchased Asset as of
the Closing Date will be set forth in on the Confirmation executed in connection with the related
Transaction, and such Current Mark-to-Market Value will not be adjusted by Buyer for any Purchased
Asset after the Closing Date unless a Credit Event shall occur with respect to the related
Purchased Asset, provided that there shall be no restrictions on Buyer’s ability to recalculate,
solely for internal purposes, the Market Value of any Purchased Asset at any time.

“Custodial Agreement”: The Custodial Agreement, dated as of the date hereof, among
Buyer, Seller and Custodian, substantially in the form of Exhibit K.

“Custodian”: Wells Fargo Bank, National Association, or any successor permitted by
the Custodial Agreement.

“Debt Yield”: With respect to any Purchased Asset(s) and for any relevant calendar
quarter, the percentage equivalent of the quotient obtained by dividing (i) the product of (A) the
underwritten net cash flow for such period from the related Mortgaged Property or Mortgaged
Properties securing the Purchased Asset(s), as determined by Buyer in its sole and absolute
discretion, multiplied by (B) a fraction, (1) the numerator of which shall be 360, and (2) the
denominator of which shall be the number of days in the relevant Test Period, by (ii) the
then-current Purchase Price of such Purchased Asset(s) on the last day of such calendar quarter.

“Debt Yield Test”: (i) The Underlying Mortgaged Property pledged to secure all
Purchased Assets other than the Life Time Purchased Assets must at all times and during all
relevant time periods generate a Debt Yield of at least fifteen percent (15.0%), except that, at
all times when the only Purchased Assets on the Facility are the Carlson, Bank One and
Constellation Purchased Assets, the Purchased Assets must at all times and during all relevant time
periods generate a Debt Yield of at least twelve percent (12%), and (ii) the Debt Yield for the
Underlying Mortgaged Property pledged to secure the Life Time Purchased Assets, must at all times
and during all relevant time periods generate a Debt Yield of at least thirty percent (30%).

“Default”: Any event which, with the giving of notice or the lapse of time, or both,
would become an Event of Default.

“Default Rate”: As of any date, the Pricing Rate in effect on such date plus 400
basis points (4.00%), determined after any Repurchase Date on the basis of periods corresponding to
Pricing Periods.

 

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“Defaulted Asset”: Any Asset or Purchased Asset, as applicable, (a) that is thirty
(30) or more days (or, in the case of payments due at maturity, one (1) day) delinquent in the
payment of principal, interest, fees, distributions or any other amounts payable under the related
Mortgage Loan Documents, (b) for which there is a non–monetary default under the related Mortgage
Loan Documents beyond any applicable notice or cure period, (c) as to whose Underlying Obligor an
Insolvency Event has occurred, or (d) for which Seller, Servicer or Sub-Servicer has received
notice of the foreclosure or proposed foreclosure of any Lien on the related Underlying Mortgaged
Property; provided that with respect to any Junior Interest, in addition to the foregoing such
Junior Interest will also be considered a Defaulted Asset to the extent that the Underlying
Mortgage Loan would be considered a Defaulted Asset as described in this definition.

“Derivatives Contract”: Any rate swap transaction, basis swap, credit derivative
transaction, forward rate transaction, commodity swap, commodity option, forward commodity
contract, equity or equity index swap or option, bond or bond price or bond index swap or option or
forward bond or forward bond price or forward bond index transaction, interest rate option, forward
foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap
transaction, cross–currency rate swap transaction, currency option, spot contract, or any other
similar transaction or any combination of any of the foregoing (including any options to enter into
any of the foregoing), whether or not any such transaction is governed by or subject to any master
agreement, including any obligations or liabilities thereunder.

“Derivatives Termination Value”: With respect to any one or more Derivatives
Contracts, after taking into account the effect of any legally enforceable netting agreement
relating to such Derivatives Contracts, (a) for any date on or after the date such Derivatives
Contracts have been closed out and termination value(s) determined in accordance therewith, such
termination value(s), and (b) for any date prior to the date referenced in the preceding
clause (a), the amount(s) determined as the mark–to–market value(s) for such Derivatives Contracts,
as determined based on one or more mid–market or other readily available quotations provided by any
recognized dealer in such Derivatives Contracts (which may include Buyer).

“Dollars” and “$”: Lawful money of the United States of America.

“Early Repurchase Date”: Defined in Section 3.05.

“EBITDA”: With respect to any Person and any Test Period, an amount equal to the sum
of (a) Net Income (or loss) of such Person (prior to any impact from minority interests or joint
venture net income and before deduction of any dividends on preferred stock of such Person), plus
the following (but only to the extent actually included in determination of such Net Income (or
loss)): (i) depreciation and amortization expense, (ii) Interest Expense, (iii) income tax
expense, and (iv) extraordinary or non-recurring gains and losses, plus (b) such Person’s
proportionate share of Net Income of the joint venture investments and unconsolidated Affiliates of
such Person, all with respect to such Test Period, plus (c) amounts deducted in accordance with
GAAP in respect of other non-cash expenses in determining such Net Income for such Person.

“Eligible Asset”: An Asset:

 

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(a) that is listed on the attached Exhibit L;

(b) with respect to which no Representation Breach exists;

(c) that is not a Defaulted Asset;

(d) with respect to which there are no future funding obligations on the part of
Seller, Buyer or any other Person;

(e) whose Underlying Mortgaged Property is located in the United States, whose
Underlying Obligors are domiciled in the United States, and all obligations thereunder and
under the Underlying Mortgage Documents are denominated and payable in Dollars;

(f) whose Underlying Obligors are not Sanctioned Entities; and

(g) that is secured by a perfected, first priority security interest on a “stabilized”
commercial or multi-family property; provided, that notwithstanding the failure of
an Asset or Purchased Asset to conform to the requirements of this definition, Buyer may, in
its discretion and subject to such terms, conditions and requirements and Applicable
Percentage adjustments as Buyer may require in its discretion, designate in writing any such
non–conforming Asset or Purchased Asset as an Eligible Asset, which designation (1) may
include a temporary or permanent waiver of one or more Eligible Asset requirements, and
(2) shall not be deemed a waiver of the requirement that all other Assets and Purchased
Assets must be Eligible Assets (including any Assets that are similar or identical to the
Asset or Purchased Asset subject to the waiver).

“Eligible Assignee”: Any of the following Persons designated by Buyer for purposes of
Section 18.08(c): (a) a bank, financial institution, pension fund, insurance company or
similar Person, an Affiliate of any of the foregoing, and an Affiliate of Buyer, and (b) any other
Person to which Seller has consented; provided, that such consent of Seller shall not be
unreasonably withheld, delayed or conditioned, and shall not be required at any time when a Event
of Default exists. Such Person shall provide to Seller such duly executed IRS forms as Seller
reasonably requests.

“Environmental Laws”: Any federal, state, foreign or local statute, law, rule,
regulation, ordinance, code, guideline, written policy and rule of common law now or hereafter in
effect, and any judicial or administrative interpretation thereof, including any judicial or
administrative order, consent decree or judgment, relating to the environment, employee health and
safety or hazardous materials, including CERCLA, RCRA, the Federal Water Pollution Control Act, the
Toxic Substances Control Act, the Clean Air Act, the Safe Drinking Water Act, the Oil Pollution Act
of 1990, the Emergency Planning and the Community Right-to-Know Act of 1986, the Hazardous Material
Transportation Act, the Occupational Safety and Health Act, and any state and local or foreign
counterparts or equivalents.

“Equity Interests”: With respect to any Person, (a) any share, interest,
participation and other equivalent (however denominated) of capital stock of (or other ownership,
equity or profit interests in) such Person, (b) any warrant, option or other right for the

 

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purchase or other acquisition from such Person of any of the foregoing, (c) any security
convertible into or exchangeable for any of the foregoing, and (d) any other ownership or profit
interest in such Person (including partnership, member or trust interests therein), whether voting
or nonvoting, and whether or not such share, warrant, option, right or other interest is authorized
or otherwise existing on any date.

“ERISA”: The Employee Retirement Income Security Act of 1974.

“Event of Default”: Defined in Section 10.01.

“Excess Financing Capacity”: For each Purchased Asset, initially the dollar amount,
if any, specified on the related Confirmation, as such dollar amount reduces on a dollar for dollar
basis with each related Additional Advance under Section 3.03.

“Excluded Assets”: Each of the assets previously owned by Seller, and commonly known
as UTC Executive Plaza, Avenue East Cobb and Valley View Mall.

“Fee and Pricing Letter”: The letter agreement, dated as of the date of this
Agreement, by and between Buyer and Seller.

“Fixed Charge Coverage Ratio”: With respect to any Person and for any Test Period at
any time, the EBITDA for such period, divided by the Fixed Charges for the same period.

“Fixed Charges”: With respect to any Person and for any Test Period at any time, the
sum of (a) debt service, (b) all preferred dividends, (c) Capital Lease Obligations paid or accrued
during such period, (d) capital expenditures (if any), and (e) any amounts payable under any Ground
Lease.

“Funding Expiration Date”: The earliest of (a) May 31, 2010, (b) any Accelerated
Repurchase Date, and (c) any date on which the Funding Expiration Date shall otherwise occur in
accordance with the provisions hereof or Requirements of Law.

“Funding Period”: The period from the Closing Date to and including the Funding
Expiration Date.

“GAAP”: Generally accepted accounting principles as in effect from time to time in
the United States, consistently applied.

“Governing Documents”: With respect to any Person, its articles or certificate of
incorporation or formation, by-laws, partnership, limited liability company, operating or trust
agreement and/or other organizational, charter or governing documents.

“Governmental Authority”: Any (a) nation or government, (b) state or local or other
political subdivision thereof, (c) central bank or similar monetary or regulatory authority,
(d) Person, agency, authority, instrumentality, court, regulatory body, central bank or other body
or entity exercising executive, legislative, judicial, taxing, quasi–judicial, quasi–legislative,
regulatory or administrative functions or powers of or pertaining to government, (e) court or

 

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arbitrator having jurisdiction over such Person, its Affiliates or its assets or properties,
(f) stock exchange on which shares of stock of such Person are listed or admitted for trading,
(g) accounting board or authority that is responsible for the establishment or interpretation of
national or international accounting principles, and (h) supra-national body such as the European
Union or the European Central Bank.

“Ground Lease”: A ground lease containing the following terms and conditions: (a) a
remaining term (exclusive of any unexercised extension options) of thirty (30) years or more from
the Purchase Date of the related Asset, (b) the right of the lessee to mortgage and encumber its
interest in the leased property without the consent of the lessor or with such consent given,
(c) the obligation of the lessor to give the holder of any mortgage lien on such leased property
written notice of any defaults on the part of the lessee and agreement of such lessor that such
lease will not be terminated until such holder has had a reasonable opportunity to cure or complete
foreclosures, and fails to do so, (d) reasonable transferability of the lessee’s interest under
such lease, including ability to sublease, and (e) such other rights customarily required by
mortgagees making a loan secured by the interest of the holder of the leasehold estate demised
pursuant to a ground lease.

“Guarantee Agreement”: A Guarantee Agreement, substantially in the form of Exhibit
M, made by Guarantor in favor of Buyer.

“Guarantee Default”: Defined in Section 8.13.

“Guarantee Obligation”: With respect to any Person (the “guaranteeing
person”), any obligation of (a) the guaranteeing person or (b) another Person (including any
bank under any letter of credit) to induce the creation of the obligations for which the
guaranteeing person has issued a reimbursement, counterindemnity or similar obligation, in either
case guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends, Contractual
Obligation, Derivatives Contract or other obligations or indebtedness (the “primary
obligations”) of any other third Person (the “primary obligor”) in any manner, whether
directly or indirectly, including any obligation of the guaranteeing person, whether or not
contingent, (i) to purchase any such primary obligation or any property constituting direct or
indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any
such primary obligation, or (2) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring the owner of any
such primary obligation of the ability of the primary obligor to make payment of such primary
obligation, or (iv) otherwise to assure or hold harmless the owner of any such primary obligation
against loss in respect thereof; provided, that the term Guarantee Obligation shall not
include endorsements of instruments for deposit or collection in the ordinary course of business.
The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the maximum
stated amount of the primary obligation relating to such Guarantee Obligation (or, if less, the
maximum stated liability set forth in the instrument embodying such Guarantee Obligation);
provided, that in the absence of any such stated amount or stated liability, the amount of
such Guarantee Obligation shall be such guaranteeing person’s maximum anticipated liability in
respect thereof as reasonably determined by such Person in good faith.

 

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“Guarantor”: Starwood Property Trust, Inc., a Maryland corporation, together with its
successors and permitted assigns.

“Income”: With respect to any Purchased Asset, all of the following (in each case
with respect to the entire par amount of the Asset represented by such Purchased Asset and not just
with respect to the portion of the par amount represented by the Purchase Price advanced against
such Asset): (a) all Principal Payments, (b) all Interest Payments, and (c) all other income,
distributions, receipts, payments, collections, prepayments, recoveries, proceeds (including
insurance and condemnation proceeds) and other payments or amounts of any kind paid, received,
collected, recovered or distributed on, in connection with or in respect of such Purchased Asset,
including principal payments, interest payments, principal and interest payments, prepayment fees,
extension fees, exit fees, defeasance fees, transfer fees, make whole fees, late charges, late fees
and all other fees or charges of any kind or nature, premiums, yield maintenance charges,
penalties, default interest, dividends, gains, receipts, allocations, rents, interests, profits,
payments in kind, returns or repayment of contributions, net sale, foreclosure, liquidation,
securitization or other disposition proceeds, insurance payments, settlements and proceeds;
provided, that any amounts which under the applicable Mortgage Loan Documents are required
to be deposited into and held in escrow or reserve to be used for a specific purpose, such as taxes
and insurance, shall not be included in the term “Income” unless and until (i) an event of
default exists under such Mortgage Loan Documents, (ii) the holder of the related Purchased Asset
has exercised or is entitled to exercise rights and remedies with respect to such amounts,
(iii) such amounts are no longer required to be held for such purpose under such Mortgage Loan
Documents, or (iv) such amounts may be applied to all or a portion of the outstanding indebtedness
under such Mortgage Loan Documents, and provided, further, that “Income”
from Junior Interests shall include, without limitation, Seller’s share of all amounts payable in
respect of the Junior Interest and the Underlying Mortgage Loan pursuant to the Junior Interest
Documents.

“Indebtedness”: With respect to any Person and any date, all of the following with
respect to such Person as of such date: (a) obligations in respect of money borrowed (including
principal, interest, assumption fees, prepayment fees, yield maintenance charges, penalties, exit
fees, contingent interest and other monetary obligations whether choate or inchoate and whether by
loan, the issuance and sale of debt securities or the sale of property or assets to another Person
subject to an understanding or agreement, contingent or otherwise, to repurchase such property or
assets, or otherwise), (b) obligations, whether or not for money borrowed (i) represented by notes
payable, letters of credit or drafts accepted, in each case representing extensions of credit,
(ii) evidenced by bonds, debentures, notes or similar instruments, (iii) constituting purchase
money indebtedness, conditional sales contracts, title retention debt instruments or other similar
instruments, upon which interest charges are customarily paid or that are issued or assumed as full
or partial payment for property or services rendered, or (iv) in connection with the issuance of
Preferred Equity or trust preferred securities, (c) Capital Lease Obligations, (d) reimbursement
obligations under any letters of credit or acceptances (whether or not the same have been presented
for payment), (e) Off–Balance Sheet Obligations, (f) obligations to purchase, redeem, retire,
defease or otherwise make any payment in respect of any mandatory redeemable stock issued by such
Person or any other Person (inclusive of forward equity contracts), valued at the greater of its
voluntary or involuntary liquidation preference plus accrued and unpaid dividends, (g) as
applicable, all obligations of

 

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such Person (but not the obligation of others) in respect of any keep well arrangements,
credit enhancements, contingent or future funding obligations under any Purchased Asset or any
obligation senior to any Purchased Asset, unfunded interest reserve amount under any Purchased
Asset or any obligation that is senior to any Purchased Asset, purchase obligation, repurchase
obligation, sale/buy–back agreement, takeout commitment or forward equity commitment, in each case
evidenced by a binding agreement (excluding any such obligation to the extent the obligation can be
satisfied by the issuance of Equity Interests (other than mandatory redeemable stock)), (h) net
obligations under any Derivatives Contract not entered into as a hedge against existing
indebtedness, in an amount equal to the Derivatives Termination Value thereof, (i) all Non–Recourse
Indebtedness, recourse indebtedness and all indebtedness of other Persons which such Person has
guaranteed or is otherwise recourse to such Person, (j) all indebtedness of another Person secured
by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to
be secured by) any Lien (other than certain Permitted Liens) on property or assets owned by such
Person, even though such Person has not assumed or become liable for the payment of such
indebtedness or other payment obligation; provided, that if such Person has not assumed or become
liable for the payment of such indebtedness, then for the purposes of this definition the amount of
such indebtedness shall not exceed the market value of the property subject to such Lien, (k) all
Contingent Liabilities, (l) all obligations of such Person incurred in connection with the
acquisition or carrying of fixed assets by such Person or obligations of such Person to pay the
deferred purchase or acquisition price of property or assets, including contracts for the deferred
purchase price of property or assets that include the procurement of services, (m) indebtedness of
general partnerships of which such Person is liable as a general partner (whether secondarily or
contingently liable or otherwise), and (n) obligations to fund capital commitments under any
Governing Document, subscription agreement or otherwise.

“Indemnified Amount”: Defined in Section 13.01.

“Indemnified Person”: Defined in Section 13.01.

“Independent Director” or “Independent Manager”: An individual who has prior
experience as an independent director, independent manager or independent member with at least
three (3) years of employment experience and who is provided by CT Corporation, Corporation Service
Company, National Registered Agents, Inc., Wilmington Trust Company, Stewart Management Company,
Lord Securities Corporation or, if none of those companies is then providing professional
Independent Directors or Independent Managers, another nationally recognized company reasonably
approved by Buyer, in each case that is not an Affiliate of Seller and that provides professional
Independent Directors and Independent Managers and other corporate services in the ordinary course
of its business, and which individual is duly appointed as a member of the board of directors or
board of managers of such corporation or limited liability company and is not, has never been, and
will not while serving as Independent Director or Independent Manager be, any of the following:

(a) a member, partner, equityholder, manager, director, officer or employee of Seller,
any Principal, any of their respective equityholders or Affiliates (other than (a) as an
Independent Director or Independent Manager of Seller or Principal and (b) as an Independent
Director or Independent Manager of an Affiliate of Seller or Principal or any

 

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of their respective single-purpose entity equityholder that is not in the direct chain
of ownership of Seller or Principal and that is required by a creditor to be a single
purpose bankruptcy remote entity, provided that such Independent Director or
Independent Manager is employed by a company that routinely provides professional
Independent Directors or Independent Managers);

(b) a creditor, supplier or service provider (including provider of professional
services) to Seller, any single-purpose entity equityholder, or any of their respective
equityholders or Affiliates (other than a nationally-recognized company that routinely
provides professional Independent Directors or Independent Managers and other corporate
services to Seller, any single-purpose entity equityholder, or any of their respective
equityholders or Affiliates in the ordinary course of business);

(c) a family member of any such member, partner, equityholder, manager, director,
officer, employee, creditor, supplier or service provider; or

(d) a Person that controls (whether directly, indirectly or otherwise) any of the
individuals described in the preceding clauses (a), (b) or (c).

An individual who otherwise satisfies the preceding definition other than clause (a) by reason
of being the Independent Director or Independent Manager of a “special purpose entity” affiliated
with Seller or Principal shall not be disqualified from serving as an Independent Director or
Independent Manager of Seller if the fees that such individual earns from serving as Independent
Directors or Independent Managers of affiliates of Seller or Principal in any given year constitute
in the aggregate less than 5% of such individual’s annual income for that year.

“Ineligible Asset”: Defined in Section 3.03.

“Initial Interest Rate Protection Agreement”: The ISDA Master Agreement, including
the Schedule and Credit Support Annex thereto, and the Confirmation entered into thereunder, each
dated as of March 1, 2010, between Deutsche Bank AG and Guarantor, without giving effect to any
amendment, supplement or modification thereto after the date thereof.

“Insolvency Action”: With respect to any Person, the taking by such Person of any
action resulting in an Insolvency Event, other than solely under clause (g) of the definition
thereof.

“Insolvency Event”: With respect to any Person, (a) the filing of a decree or order
for relief by a court having jurisdiction in the premises with respect to such Person or any
substantial part of its assets or property in an involuntary case under any applicable Insolvency
Law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of its assets or
property, or ordering the winding–up or liquidation of such Person’s affairs, and such decree or
order shall remain unstayed and in effect for a period of thirty (30) days, (b) the commencement by
such Person of a voluntary case under any applicable Insolvency Law now or hereafter in effect,
(c) the consent by such Person to the entry of an order for relief in an involuntary case under any
Insolvency Law, (d) the consent by such Person to the appointment of or taking possession by a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such
Person

 

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or for any substantial part of its assets or property, (e) the making by such Person of any
general assignment for the benefit of creditors, (f) the admission in a legal proceeding of the
inability of such Person to pay its debts generally as they become due, (g) the failure by such
Person generally to pay its debts as they become due, or (h) the taking of action by such Person in
furtherance of any of the foregoing.

“Insolvency Proceeding”: Any case, action or proceeding before any court or other
Governmental Authority relating to any Insolvency Event.

“Insolvency Laws”: The Bankruptcy Code and all other applicable liquidation,
conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization,
suspension of payments and similar debtor relief laws from time to time in effect affecting the
rights of creditors generally.

“Interest Expense”: With respect to any Person and any period, the amount of total
interest expense incurred by such Person, including capitalized or accruing interest (but excluding
interest funded under a construction loan), all with respect to such period.

“Interest Payments”: With respect to any Purchased Asset and any period, all payments
of interest, income, receipts, dividends, and any other collections and distributions received from
time to time in connection with such Purchased Asset.

“Intermediate Starwood Entities”: Individually or collectively, Principal and SPT
Real Estate Sub I, LLC, a Delaware limited liability company.

“Internal Control Event”: Material weakness in, or fraud that involves management or
other employees who have a significant role in, the internal controls of Seller, Manager, any
Intermediate Starwood Entity or Guarantor over financial reporting, in each case as described in
the Securities Laws.

“Investment”: With respect to any Person, any acquisition or investment (whether or
not of a controlling interest) by such Person, whether by means of (a) the purchase or other
acquisition of any Equity Interest in another Person, (b) a loan, advance or extension of credit
to, capital contribution to, guaranty or credit enhancement of Indebtedness of, or purchase or
other acquisition of any Indebtedness of, another Person, including any partnership or joint
venture interest in such other Person, or (c) the purchase or other acquisition (in one transaction
or a series of transactions) of assets of another Person that constitute the business or a division
or operating unit of another Person. Any binding commitment or option to make an Investment in any
other Person shall constitute an Investment. Except as expressly provided otherwise, for purposes
of determining compliance with any covenant contained in this Agreement, the amount of any
Investment shall be the amount actually invested, without adjustment for subsequent increases or
decreases in the value of such Investment.

“Irrevocable Redirection Notice”: A notice in form of acceptable to Buyer in its
discretion, sent by Seller or by Servicer or Sub-Servicer on Seller’s behalf directing the
remittance of Income with respect to a Purchased Asset to the Servicing Agreement Account or
Collection Account, as applicable, and executed by the applicable Underlying Obligor, Servicer,
Sub-Servicer or other Person with respect to such Purchased Asset.

 

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“Junior Interest”: (a) A junior participation interest in a performing commercial
real estate loan, or (b) a “B-note” in an “A/B structure” in a performing commercial real estate
loan.

“Junior Interest Documents”: Shall mean, for any Junior Interest, the Junior Interest
Note together with any co-lender agreements, participation agreements and/or other intercreditor
agreements or other documents governing or otherwise relating to such Junior Interest.

“Junior Interest Note”: The original executed promissory note, participation or other
certificate or other tangible evidence of a Junior Interest.

“Knowledge”: With respect to any Person, means collectively (i) the actual knowledge
of such Person, (ii) notice of any fact, event, condition or circumstance that would cause a
reasonably prudent Person to conduct an inquiry that would give such Person actual knowledge,
whether or not such Person actually undertook such an inquiry, and (iii) all knowledge that is
imputed to a Person under any statute, rule, regulation, ordinance, or official decree or order.

“LIBOR”: For any Pricing Period, the rate (expressed as a percentage per annum and
rounded upward, if necessary, to the next nearest 1/100 of 1%) for deposits in Dollars, for a
one-month period, that appears on Reuters Screen LIBOR01 (or the successor thereto) as the London
interbank offered rate for deposits in Dollars as of 11:00 a.m., London time, on the Pricing Rate
Reset Date for such Pricing Period. If such rate does not appear on Reuters Screen LIBOR01 as of
11:00 a.m., London time, on such Pricing Rate Reset Date, Buyer shall request the principal London
office of any of the Reference Banks in the London interbank market selected by Buyer to provide
such banks’ offered quotation (expressed as a percentage per annum) to leading banks in the
international Eurocurrency market for deposits in Dollars for a one-month period as of 11:00 a.m.,
London time, on such Pricing Rate Reset Date for amounts of not less than the aggregate Repurchase
Price of all Purchased Assets. If at least two such offered quotations are so provided, LIBOR
shall be the arithmetic mean of such quotations. If fewer than two such quotations are so
provided, Buyer shall request any three major banks in New York City selected by Buyer to provide
such banks’ rate (expressed as a percentage per annum) for loans in Dollars to leading banks in the
international Eurocurrency market for a one-month period as of approximately 11:00 a.m., New York
City time on the applicable Pricing Rate Reset Date for amounts of not less than the aggregate
Repurchase Price of all Purchased Assets. If at least two such rates are so provided, LIBOR shall
be the arithmetic mean of such rates.

“LIBO Rate”: For any Pricing Period, the rate (expressed as a percentage per annum
and rounded upward, if necessary, to the next nearest 1/100 of 1%) determined for such Pricing
Period in accordance with the following formula:

LIBOR for such Pricing

Period

     1 – Reserve Requirement     

 

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“Lien”: Any mortgage, statutory or other lien, pledge, charge, right, claim, adverse
claim, attachment, levy, hypothecation, assignment, security interest, UCC financing statement or
encumbrance of any kind on or otherwise relating to any Person’s assets or properties in favor of
any other Person or any preference, priority or other security agreement or preferential
arrangement of any kind.

“Life Time Purchased Assets”: Each of the Purchased Assets described on Exhibit
N attached hereto.

“Liquidity”: With respect to Guarantor and on any relevant date, the amount of cash
or cash equivalents held by Guarantor.

“Manager”: SPT Management, LLC, a Delaware limited liability company.

“Margin Call”: Defined in Section 4.01.

“Margin Deficit”: Defined in Section 4.01.

“Market Value”: Defined in the Fee and Pricing Letter, which definition is
incorporated herein by reference.

“Material Adverse Effect”: A material adverse effect on or material adverse change in
or to (a) the property, assets, business, operations, financial condition, credit quality or
prospects of Seller, any Intermediate Starwood Entity or Guarantor, (b) the ability of Seller to
pay and perform the Repurchase Obligations, (c) the validity, legality, binding effect or
enforceability of any Repurchase Document, Mortgage Loan Document, Purchased Asset or security
interest granted hereunder or thereunder, (d) the rights and remedies of Buyer or any Indemnified
Person under any Repurchase Document, Mortgage Loan Document or Purchased Asset, or (e) the
perfection or priority of any Lien granted under any Repurchase Document or Mortgage Loan Document.

“Material Modification”: Any material extension, amendment, waiver, termination,
rescission, cancellation, release or other modification to the terms of, or any collateral,
guaranty or indemnity for, or the exercise of any material right or remedy of a holder (including
all lending, corporate and voting rights, remedies, consents, approvals and waivers) of, any
Purchased Asset or Mortgage Loan Document.

“Materials of Environmental Concern”: Any hazardous, toxic or harmful substances,
materials, wastes, pollutants or contaminants defined as such in or regulated under any
Environmental Law.

“Maturity Date”: The earliest of (a)  May 31, 2013, (b) any Accelerated Repurchase
Date, and (c) any date on which the Maturity Date shall otherwise occur in accordance with the
Repurchase Documents or Requirements of Law.

“Maximum Amount”: $280,000,000; provided, that on and after the earlier of the
Funding Expiration Date and the Maturity Date, the Maximum Amount on any date shall be the
aggregate Repurchase Price outstanding for all Transactions as of such earlier date, as such

 

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amount declines over time as Purchased Assets are subsequently repurchased and Margin Deficits
are subsequently satisfied.

“Maximum Applicable Percentage”: For each Purchased Asset as of any date, the maximum
applicable percentage determined by Buyer for such Purchased Asset on the Closing Date and set
forth in the Confirmation for such Purchased Asset.

“Moody’s”: Moody’s Investors Service, Inc., or, if Moody’s Investors Service, Inc. is
no longer issuing ratings, another nationally recognized rating agency reasonably acceptable to
Buyer.

“Mortgage”: Any mortgage, deed of trust, assignment of rents, security agreement and
fixture filing, or other instruments creating and evidencing a lien on real property and other
property and rights incidental thereto.

“Mortgage Loan Documents”: With respect to any Purchased Asset, those documents
executed in connection with, evidencing or governing such Purchased Asset and the related
Underlying Mortgaged Property.

“Mortgage Note”: The original executed promissory note or other evidence of the
indebtedness of a Mortgagor with respect to a commercial mortgage loan.

“Mortgaged Property”: The real property (including all improvements, buildings,
fixtures, building equipment and personal property thereon and all additions, alterations and
replacements made at any time with respect to the foregoing) and all other collateral securing
repayment of the debt evidenced by a Mortgage Note and/or a Junior Interest Note.

“Mortgagee”: The record holder of a Mortgage Note secured by a Mortgage.

“Mortgagor”: The obligor on a Mortgage Note, including any Person who has assumed or
guaranteed the obligations of the obligor thereunder.

“Multiemployer Plan”: A Plan that is a multiemployer plan as defined in
Section 4001(a)(3) of ERISA.

“Net Cash Flow”: With respect to any Purchased Asset and for any period, the net cash
flow of such Purchased Asset for such period as underwritten by Buyer in its discretion.

“Net Income”: With respect to any Person for any period, the net income of such
Person for such period as determined in accordance with GAAP.

“Non–Recourse Indebtedness”: With respect to any Person and any date, indebtedness of
such Person as of such date for borrowed money in respect of which recourse for payment (except for
customary exceptions for fraud, misapplication of funds, environmental indemnities, Insolvency
Events, non-approved transfers or other events) is contractually limited to specific assets of such
Person encumbered by a Lien securing such Indebtedness.

 

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“Non-Utilization Fee”: Defined in the Fee and Pricing Letter, which definition is
incorporated herein by reference.

“Off–Balance Sheet Obligations”: With respect to any Person and any date, to the
extent not included as a liability on the balance sheet of such Person, all of the following with
respect to such Person as of such date: (a) monetary obligations under any financing lease or
so–called “synthetic,” tax retention or off–balance sheet lease transaction which, upon the
application of any Insolvency Laws, would be characterized as indebtedness, (b) monetary
obligations under any sale and leaseback transaction which does not create a liability on the
balance sheet of such Person, or (c) any other monetary obligation arising with respect to any
other transaction which (i) is characterized as indebtedness for tax purposes but not for
accounting purposes, or (ii) is the functional equivalent of or takes the place of borrowing but
which does not constitute a liability on the balance sheet of such Person (for purposes of this
clause (c), any transaction structured to provide tax deductibility as interest expense of any
dividend, coupon or other periodic payment will be deemed to be the functional equivalent of a
borrowing).

“Participant”: Defined in Section 18.08(b).

“Patriot Act”: The Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001.

“Permitted Liens”: Any of the following as to which no enforcement, collection,
execution, levy or foreclosure proceeding has been commenced: (a) Liens for state, municipal,
local or other local taxes not yet due and payable, (b) Liens imposed by Requirements of Law, such
as materialmen’s, mechanics’, carriers’, workmen’s, repairmen’s and similar Liens, arising in the
ordinary course of business securing obligations that are not overdue for more than thirty (30)
days, and (c) Liens granted pursuant to or by the Repurchase Documents.

“Person”: An individual, corporation, limited liability company, business trust,
partnership, trust, unincorporated organization, joint stock company, sole proprietorship, joint
venture, Governmental Authority or any other form of entity.

“Plan”: An “employee benefit plan” as defined in Section 3(3) of ERISA, subject to
Title I of ERISA in respect of which, Seller, Guarantor or any Intermediate Starwood Entity is (or,
if such plan were terminated at such time, would under Section 4069 of ERISA, be deemed to be an
“employer” as defined in Section 3(5) of ERISA.

“Pledge Agreement”: A Pledge Agreement from Starwood Property Mortgage, L.L.C. in favor of
Buyer, covering one-hundred percent (100%) of the equity ownership interest of pledgor in Seller.

“Price Differential”: (a) For any Pricing Period or portion thereof and any
Transaction outstanding, the sum of the products, for each day during such Pricing Period or
portion thereof, of (i) 1/360th of the Pricing Rate in effect for such Pricing Period during which
such day occurs, times (ii) the Purchase Price for such Purchased Asset as of such day, and (b) for
any Pricing Period or portion thereof and all Transactions outstanding, the sum of the amounts
calculated in accordance with the preceding clause (a) for all Transactions.

 

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“Pricing Margin”: Defined in the Fee and Pricing Letter, which definition is
incorporated herein by reference.

“Pricing Period”: For any Purchased Asset, (a) in the case of the first Remittance
Date, the period from the Purchase Date for such Purchased Asset to but excluding such Remittance
Date, and (b) in the case of any subsequent Remittance Date, the one-month period commencing on and
including the prior Remittance Date and ending on but excluding such Remittance Date;
provided, that no Pricing Period for a Purchased Asset shall end after the Repurchase Date
for such Purchased Asset.

“Pricing Rate”: For any Pricing Period, the LIBO Rate for such Pricing Period plus
the Pricing Margin, which shall be subject to adjustment and/or conversion as provided in
Sections 12.01 and 12.02; provided, that while an Event of Default exists, the
Pricing Rate shall be the Default Rate.

“Pricing Rate Reset Date”: (a) In the case of the first Pricing Period for any
Purchased Asset, the Purchase Date for such Purchased Asset, and (b) in the case of any subsequent
Pricing Period, two (2) Business Days prior to the Remittance Date on which such Pricing Period
begins.

“Principal”: Starwood Property Mortgage, L.L.C., a Delaware limited liability
company, the entity that is the sole member of Seller.

“Principal Payments”: For any Purchased Asset, all payments and prepayments of
principal received and applied (or which was required to be applied in accordance with the related
Mortgage Loan Documents) as principal toward the Purchase Price for such Purchased Asset, including
insurance and condemnation proceeds and recoveries from liquidation or foreclosure.

“Purchase Agreement”: Any purchase agreement between Seller and any Transferor
pursuant to which Seller purchased or acquired an Asset which is subsequently sold to Buyer
hereunder.

“Purchase Date”: For any Purchased Asset, the date on which such Purchased Asset is
transferred by Seller to Buyer.

“Purchase Price”: For any Purchased Asset, (a) as of the Purchase Date for such
Purchased Asset, an amount equal to the product of the Market Value of such Purchased Asset, times
the Applicable Percentage for such Purchased Asset, and (b) as of any other date, the amount
described in the preceding clause (a), (i) reduced by any amount of Margin Deficit transferred by
Seller to Buyer pursuant to Section 4.01 and applied to the Purchase Price of such
Purchased Asset, (ii) reduced by any Principal Payments remitted to the Collection Account and
which were applied to the Purchase Price of such Purchased Asset by Buyer, (iii) reduced by any
payments made by Seller in reduction of the outstanding Purchase Price, and (iv) increased by any
amount of Excess Financing Capacity transferred to Seller by Buyer pursuant to
Section 3.03, in each case before or as of such determination date with respect to such
Purchased Asset.

 

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“Purchased Assets”: (a) For any Transaction, each Asset sold by Seller to Buyer in
such Transaction, and (b) for the Transactions in general, all Assets sold by Seller to Buyer, in
each case including, to the extent relating to such Asset or Assets, all of Seller’s right, title
and interest in and to (i) Mortgage Loan Documents, (ii) Servicing Rights, (iii) Servicing Files,
(iv) mortgage guaranties and insurance (issued by Governmental Authorities or otherwise) and
claims, payments and proceeds thereunder, (v) insurance policies, certificates of insurance and
claims, payments and proceeds thereunder, (vi) the principal balance of such Assets, not just the
amount advanced, (vii) amounts and property from time to time on deposit in the Collection Account
and the Collection Account itself, (viii) collection, escrow, reserve, collateral or lock–box
accounts and all amounts and property from time to time on deposit therein, to the extent of
Seller’s or the holder’s interest therein, (ix) Income, (x) amounts and property from time to time
on deposit in the Servicer Accounts, together with the Servicer Accounts themselves, (xi) security
interests of Seller in Derivatives Contracts entered into by Underlying Obligors, (xii) rights of
Seller under any letter of credit, guarantee, warranty, indemnity or other credit support or
enhancement, (xviii) all of the “Pledged Collateral”, as such term is defined in the Pledge
Agreement, and (ixx) supporting obligations of any kind; provided, that (A) Purchased Assets shall
not include any obligations of Seller, and (B) for purposes of the grant of security interest by
Seller to Buyer and the other provisions of Article 11, Purchased Assets shall include all
of the following: general intangibles, accounts, chattel paper, deposit accounts, securities
accounts, instruments, securities, financial assets, uncertificated securities, security
entitlements and investment property (as such terms are defined in the UCC) and replacements,
substitutions, conversions, distributions or proceeds relating to or constituting any of the items
described in the preceding clauses (i) through (ixx).

“Rating Agencies”: Each of Fitch, Inc., Moody’s and S&P.

“Reference Banks”: Banks each of which shall (a) be a leading bank in the
international Eurocurrency market, and (b) have an established place of business in London.
Initially, the Reference Banks shall be JPMorgan Chase Bank, Barclays Bank, PLC and Deutsche Bank
AG. If any such Reference Bank should be unwilling or unable to act as such or if Buyer shall
terminate the appointment of any such Reference Bank or if any of the Reference Banks should be
removed from the Reuters Monitor Money Rates Service or in any other way fail to meet the
qualifications of a Reference Bank, Buyer may designate alternative banks meeting the criteria
specified in the preceding clauses (a) and (b).

“Refinanced Loan”: Defined in Section 3.05(d).

“REIT”: A Person satisfying the conditions and limitations set forth in
Section 756(b) and 856(c) of the Code which are necessary to qualify such Person as a “real estate
investment trust,” as defined in Section 756(a) of the Code.

“Release”: Any generation, treatment, use, storage, transportation, manufacture,
refinement, handling, production, removal, remediation, disposal, presence or migration of
Materials of Environmental Concern on, about, under or within all or any portion of any property or
Mortgaged Property.

 

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“Remedial Work”: Any investigation, inspection, site monitoring, containment,
clean–up, removal, response, corrective action, mitigation, restoration or other remedial work of
any kind or nature because of, or in connection with, the current or future presence, suspected
presence, Release or threatened Release in or about the air, soil, ground water, surface water or
soil vapor at, on, about, under or within all or any portion of any property or Mortgaged Property
of any Materials of Environmental Concern, including any action to comply with any applicable
Environmental Laws or directives of any Governmental Authority with regard to any Environmental
Laws.

“Remittance Date”: The fifth (5th) day of each month (or if such day is
not a Business Day, the next following Business Day), or such other day as is mutually agreed to by
Seller and Buyer.

“Reportable Event”: Any event set forth in Section 4043(c) of ERISA, other than an
event as to which the notice period is waived under Pension Benefit Guaranty Commission Reg. §4043.

“Representation Breach”: Any representation, warranty, certification, statement or
affirmation made by Seller or Guarantor in any Repurchase Document (including in Schedule
1(a) or 1(b)) or in any certificate, notice, report or other document prepared and
delivered by or on behalf of Seller, Manager, any Intermediate Starwood Entity or Guarantor
pursuant to any Repurchase Document proves to be incorrect, false or misleading in any material
respect when made, and in the case of the representations and warranties contained in Schedule
1(a) or 1(b) only, without regard to any Knowledge or lack of Knowledge thereof by
Seller or (unless otherwise waived in writing), by Buyer, and without regard to any qualification,
representation or warranty relating to such Knowledge or lack of Knowledge.

“Repurchase Date”: For any Purchased Asset, the earliest of (a) the Maturity Date,
(b) any Early Repurchase Date therefor, and (c) the Business Day on which Seller is to repurchase
such Purchased Asset as specified by Seller and agreed to by Buyer in the related Confirmation.

“Repurchase Documents”: Collectively, this Agreement, the Custodial Agreement, the
Controlled Account Agreements, the Pledge Agreement, the Guarantee Agreement, all Confirmations,
all UCC financing statements, amendments and continuation statements filed pursuant to any other
Repurchase Document, and all additional documents, certificates, agreements or instruments, the
execution of which is required, necessary or incidental to or desirable for performing or carrying
out any other Repurchase Document.

“Repurchase Obligations”: All obligations of Seller to pay the Repurchase Price on
the Repurchase Date and all other obligations and liabilities of Seller to Buyer arising under or
in connection with the Repurchase Documents, whether now existing or hereafter arising, and all
interest and fees that accrue after the commencement by or against Seller, any Intermediate
Starwood Entity or Guarantor of any Insolvency Proceeding naming such Person as the debtor in such
proceeding, regardless of whether such interest and fees are allowed claims in such proceeding (in
each case, whether due or accrued).

 

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“Repurchase Price”: For any Purchased Asset as of any date, an amount equal to the
sum of (a) the outstanding Purchase Price as of such date, (increased as set forth in the
definition of Purchase Price by the amount of all related Additional Advances previously made under
Section 3.03), (b) the accrued and unpaid Price Differential for such Purchased Asset as of
such date, and (c) all other amounts due and payable as of such date by Seller to Buyer under this
Agreement or any Repurchase Document.

“Requirements of Law”: With respect to any Person or property or assets of such
Person and as of any date, all of the following applicable thereto as of such date: all Governing
Documents and existing and future laws, statutes, rules, regulations, treaties, codes, ordinances,
permits, certificates, orders and licenses of and interpretations by any Governmental Authority
(including Environmental Laws, ERISA, regulations of the Board of Governors of the Federal Reserve
System, and laws, rules and regulations relating to usury, licensing, truth in lending, fair credit
billing, fair credit reporting, equal credit opportunity, fair debt collection practices and
privacy), judgments, decrees, injunctions, writs, awards or orders of any court, arbitrator or
other Governmental Authority.

“Reserve Requirement”: For any Pricing Period, the aggregate of the rates (expressed
as a decimal fraction) of reserve requirements (if any) arising from any Requirement of Law enacted
or imposed after the date hereof and in effect during such Pricing Period (including basic,
supplemental, marginal and emergency reserves under any regulations of the Board of Governors of
the Federal Reserve System or other Governmental Authority having jurisdiction with respect
thereto) dealing with reserve requirements prescribed for Eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of such Board of Governors) maintained by
Buyer.

“Responsible Officer”: With respect to any Person, the chief executive officer, the
chief financial officer, the chief accounting officer, the treasurer or the chief operating officer
of such Person.

“Retained Interest”: (a) With respect to any Purchased Asset, (i) all duties,
obligations and liabilities of Seller thereunder, including payment and indemnity obligations,
(ii) all obligations of agents, trustees, servicers, administrators or other Persons under the
documentation evidencing such Purchased Asset, and (iii) if any portion of the Indebtedness related
to such Purchased Asset is owned by another lender or is being retained by Seller, the interests,
rights and obligations under such documentation to the extent they relate to such portion, and
(b) with respect to any Purchased Asset with an unfunded commitment on the part of Seller, all
obligations to provide additional funding, contributions, payments or credits.

“S&P”: Standard and Poor’s Ratings Services, a division of The McGraw Hill Companies,
Inc. or, if Standard & Poor’s Ratings Services is no longer issuing ratings, another nationally
recognized rating agency reasonably acceptable to Buyer.

“Sanctioned Entity”: (a) A country or a government of a country, (b) an agency of the
government of a country, (c) an organization directly or indirectly controlled by a country or its
government, (d) a Person resident in or determined to be resident in a country, that in each case
is subject to a country sanctions program administered and enforced by the Office of

 

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Foreign Assets Control, or (e) a Person named on the list of Specially Designated Nationals
maintained by the Office of Foreign Assets Control.

“Securities Laws”: The Securities Act of 1933, the Securities Exchange Act of 1934,
the Sarbanes-Oxley Act of 2002 and the applicable accounting and auditing principles, rules,
standards and practices promulgated, approved or incorporated by the Securities and Exchange
Commission or the Public Company Accounting Oversight Board.

“Seller”: The Seller named in the preamble of this Agreement.

“Servicer”: Wells Fargo Bank, National Association, as servicer of all of the
Purchased Assets.

“Servicing Agreement Account”: The “Servicing Account” under the Sub-Servicing
Agreement, which shall be a segregated interest bearing account established at the Collection
Account Bank, in the name of Seller, pledged to Buyer and subject to a Controlled Account
Agreement.

“Servicer Account”: Any account established by Servicer in connection with the
servicing of any Asset or Purchased Asset including, without limitation, the Servicing Agreement
Account.

“Servicing File”: With respect to any Purchased Asset, the file retained and
maintained by Seller, Servicer and/or Sub-Servicer including the originals or copies of all
Mortgage Loan Documents and other documents and agreements relating to such Purchased Asset,
including to the extent applicable all servicing agreements, files, documents, records, data bases,
computer tapes, insurance policies and certificates, appraisals, other closing documentation,
payment history and other records relating to or evidencing the servicing of such Purchased Asset,
which file shall be held by Seller and/or the Servicer for and on behalf of Buyer.

“Servicing Rights”: All right, title and interest of Seller or any Affiliate of
Seller in and to any and all of the following: (a) rights to service and collect the Purchased
Assets, (b) amounts received by Seller or any other Person for servicing the Purchased Assets,
(c) late fees, penalties or similar payments with respect to the Purchased Assets, (d) agreements
and documents creating or evidencing any such rights to service, documents, files and records
relating to the servicing of the Purchased Assets, and rights of Seller or any other Person
thereunder, (e) escrow, reserve and similar amounts with respect to the Purchased Assets,
(f) rights to appoint, designate and retain any other servicers, sub-servicers, special servicers,
agents, custodians, trustees and liquidators with respect to the Purchased Assets, and (g) accounts
and other rights to payment related to the Purchased Assets.

“Single Employer Plan”: Any Plan that is not a Multiemployer Plan.

“Solvent”: With respect to any Person at any time, having a state of affairs such
that all of the following conditions are met at such time: (a) the fair value of the assets and
property of such Person is greater than the amount of such Person’s liabilities (including
disputed, contingent and unliquidated liabilities) as such value is established and liabilities

 

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evaluated for purposes of Section 91(32) of the Bankruptcy Code, (b) the present fair salable
value of the assets and property of such Person in an orderly liquidation of such Person is not
less than the amount that will be required to pay the probable liability of such Person on its
debts as they become absolute and matured, (c) such Person is able to realize upon its assets and
property and pay its debts and other liabilities (including disputed, contingent and unliquidated
liabilities) as they mature in the normal course of business, (d) such Person does not intend to,
and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay
as such debts and liabilities mature, and (e) such Person is not engaged in a business or a
transaction, and is not about to engage in a business or a transaction, for which such Person’s
assets and property would constitute unreasonably small capital.

“Special Purpose Entity”: A corporation, limited partnership or limited liability
company that, since the date of its formation (unless otherwise indicated in this Agreement) and at
all times on and after the date hereof, has complied with and shall at all times comply with the
provisions of Article 9.

“Sub-Servicer”: Defined in Section 17.01.

“Sub-Servicing Agreement”: Defined in Section 17.01.

“Subsidiary”: With respect to any Person, any corporation, partnership, limited
liability company or other entity (heretofore, now or hereafter established) of which at least a
majority of the securities or other ownership interests having by the terms thereof ordinary voting
power to elect a majority of the board of directors or other persons performing similar functions
of such corporation, partnership, limited liability company or other entity (without regard to the
occurrence of any contingency) is at the time directly or indirectly owned or controlled by such
Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of
such Person, and shall include all Persons the accounts of which are with those of such Person
pursuant to GAAP.

“Tangible Net Worth”: With respect to any Person and any date, all amounts which
would be included under capital or shareholder’s equity (or any like caption) on a balance sheet of
such Person, minus (a) amounts owing to such Person from any Affiliate thereof, or from officers,
employees, partners, members, directors, shareholders or other Persons similarly affiliated with
such Person or any Affiliate thereof, (b) intangible assets (other than the Initial Interest Rate
Protection Agreement), and (c) prepaid taxes and/or expenses, all on or as of such date.

“Term Sheet”: The letter and/or summary of terms and conditions dated February 26,
2010 between and among Buyer, Seller and Guarantor.

“Test Period”: The time period from the first day of each calendar quarter, through
and including the last day of such calendar quarter.

“Total Assets”: With respect to any Person and any date, an amount equal to the
aggregate book value of all assets owned by such Person on a consolidated basis and the
proportionate share of assets owned by non-consolidated Subsidiaries of such Person, less
(a) amounts owing to such Person from any Affiliate thereof, or from officers, employees,

 

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partners, members, directors, shareholders or other Persons similarly affiliated with such
Person or any Affiliate thereof, (b) intangible assets (other than the Initial Interest Rate
Protection Agreement), and (c) prepaid taxes and expenses, all on or as of such date.

“Total Indebtedness”: With respect to any Person and any date, all amounts of
Indebtedness (other than Contingent Liabilities not reflected on such Person’s consolidated balance
sheet), plus the proportionate share of all Indebtedness (other than Contingent Liabilities not
reflected on such Person’s consolidated balance sheet) of all non-consolidated Affiliates of such
Person, on or as of such date.

“Transaction”: With respect to any Asset, the sale and transfer of such Asset from
Seller to Buyer pursuant to the Repurchase Documents against the transfer of funds from Buyer to
Seller representing the Purchase Price or any additional Purchase Price for such Asset.

“Transaction Request”: Defined in Section 3.01(a).

“Transferor”: The seller of an Asset under a Purchase Agreement.

“Type”: With respect to a Mortgaged Property, such Mortgaged Property’s
classification as one of the following: retail, office or health club.

“UCC”: The Uniform Commercial Code as in effect in the State of New York;
provided, that, if, by reason of Requirements of Law, the perfection or priority of the
security interest in any Purchased Asset is governed by the Uniform Commercial Code as in effect in
a jurisdiction other than New York, UCC shall mean the Uniform Commercial Code as in effect in such
other jurisdiction for purposes of the provisions hereof relating to such perfection or priority.

“Underlying Mortgage Loan”: With respect to any Junior Interest, a mortgage loan made
in respect of the related Underlying Mortgaged Property.

“Underlying Mortgaged Property”: In the case of any:

(a) Whole Loan, the Mortgaged Property securing such Whole Loan; and

(b) Junior Interest, the Mortgaged Property securing such Junior Interest (if the
Junior Interest is of the type described in clause (a) of the definition thereof), or the
Mortgaged Property securing the Mortgage Loan in which such Junior Interest represents a
junior participation (if the Junior Interest is of the type described in clause (b) of the
definition thereof).

“Underlying Obligor”: Individually and collectively, as the context may require, the
Mortgagor and other obligor or obligors under an Asset, including (i) any Person that has not
signed the related Mortgage Note but owns an interest in the related Underlying Mortgaged Property,
which interest has been encumbered to secure such Asset, and (ii) any other Person who has assumed
or guaranteed the obligations of such Mortgagor under the Mortgage Loan Documents relating to an
Asset.

 

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“Underwriting Package”: Defined in the Fee and Pricing Letter, which definition is
incorporated herein by reference.

“Whole Loan”: A performing first priority commercial real estate whole loan for which
the Underlying Mortgage Property has stabilized, as determined by Buyer in its discretion.

Section 2.01 Rules of Interpretation. Headings are for convenience only and do not
affect interpretation. The following rules of this Section 2.01 apply unless the context
requires otherwise. The singular includes the plural and conversely. A gender includes all genders.
Where a word or phrase is defined, its other grammatical forms have a corresponding meaning. A
reference to an Article, Section, Subsection, Paragraph, Subparagraph, Clause, Annex, Schedule,
Appendix, Attachment, Rider or Exhibit is, unless otherwise specified, a reference to an Article,
Section, Subsection, Paragraph, Subparagraph or Clause of, or Annex, Schedule, Appendix,
Attachment, Rider or Exhibit to, this Agreement, all of which are hereby incorporated herein by
this reference and made a part hereof. A reference to a party to this Agreement or another
agreement or document includes the party’s permitted successors, substitutes or assigns. A
reference to an agreement or document is to the agreement or document as amended, modified,
novated, supplemented or replaced, except to the extent prohibited by any Repurchase Document. A
reference to legislation or to a provision of legislation includes a modification, codification,
replacement, amendment or re-enactment of it, a legislative provision substituted for it and a
rule, regulation or statutory instrument issued under it. A reference to writing includes a
facsimile or electronic transmission and any means of reproducing words in a tangible and
permanently visible form. A reference to conduct includes an omission, statement or undertaking,
whether or not in writing. An Event of Default exists until it has been cured or waived in writing
by Buyer. The words “hereof,” “herein,” “hereunder” and similar words refer to this Agreement as a
whole and not to any particular provision of this Agreement, unless the context clearly requires or
the language provides otherwise. The word “including” is not limiting and means “including without
limitation.” The word “any” is not limiting and means “any and all” unless the context clearly
requires or the language provides otherwise. In the computation of periods of time from a
specified date to a later specified date, the word “from” means “from and including,” the words
“to” and “until” each mean “to but excluding,” and the word “through” means “to and including.”
The words “will” and “shall” have the same meaning and effect. A reference to day or days without
further qualification means calendar days. A reference to any time means New York time. This
Agreement may use several different limitations, tests or measurements to regulate the same or
similar matters. All such limitations, tests and measurements are cumulative and shall each be
performed in accordance with their respective terms. Unless the context otherwise clearly
requires, all accounting terms not expressly defined herein shall be construed in accordance with
GAAP, and all accounting determinations, financial computations and financial statements required
hereunder shall be made in accordance with GAAP, without duplication of amounts, and on a
consolidated basis with all Subsidiaries. All terms used in Articles 8 and 9 of the UCC, and used
but not specifically defined herein, are used herein as defined in such Articles 8 and 9. A
reference to “fiscal year” and “fiscal quarter” means such fiscal periods of Seller. A reference
to an agreement includes a security interest, guarantee, agreement or legally enforceable
arrangement whether or not in writing. A reference to a document includes an agreement (as so
defined) in writing or a certificate, notice, instrument or document, or any information recorded
in computer disk form. Whenever Seller is required to provide any document to Buyer under the
Repurchase

 

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Documents, the relevant document shall be provided in writing or printed form unless Buyer
requests otherwise. At the request of Buyer, the document shall be provided in computer disk form
or both printed and computer disk form. The Repurchase Documents are the result of negotiations
between the Parties, have been reviewed by counsel to Buyer and counsel to Seller, and are the
product of both Parties. No rule of construction shall apply to disadvantage one Party on the
ground that such Party proposed or was involved in the preparation of any particular provision of
the Repurchase Documents or the Repurchase Documents themselves. Except where otherwise expressly
stated, Buyer may give or withhold, or give conditionally, approvals and consents, and may form
opinions and make determinations, in its sole and absolute discretion. Reference in any Repurchase
Document to Buyer’s discretion shall mean, unless otherwise expressly stated herein or therein,
Buyer’s sole and absolute discretion, and the exercise of such discretion shall be final and
conclusive. In addition, unless otherwise expressly provided in the applicable Repurchase
Document, whenever Buyer has a decision or right of determination, opinion or request, exercises
any right given to it to agree, disagree, accept, consent, grant waivers, take action or no action
or to approve or disapprove, or any arrangement or term is to be satisfactory or acceptable to or
approved by (or any similar language or terms) Buyer, the decision of Buyer with respect thereto
shall be in the sole and absolute discretion of Buyer, and such decision shall be final and
conclusive. Any requirement of good faith, discretion or judgment by Buyer shall not be construed
to require Buyer to request or await receipt of information or documentation not immediately
available from or with respect to Seller or the Purchased Assets.

ARTICLE 3

THE TRANSACTIONS

Section 3.01 Procedures.

(a) Prior to the Closing Date, Seller shall have delivered to Buyer a complete Underwriting
Package for each of the Assets described on Exhibit L. Seller and Buyer hereby enter into
Transactions, as evidenced by Seller sending Buyer a notice substantially in the form of
Exhibit A (“Transaction Request”) describing each Transaction and each proposed
Asset and any related Underlying Mortgaged Property and other security therefor in reasonable
detail. Included therewith is a schedule specifying what (if any) specific exceptions to the
representations and warranties of Seller set forth in this Agreement (including in
Schedules 1(a) and 1(b) applicable to the Class of such Asset) Seller will take
with respect to any Asset. Seller shall promptly deliver to Buyer any supplemental materials
requested at any time by Buyer in its discretion, provided the same are either in Seller’s
possession or are reasonably obtainable by Seller. On the Closing Date, Buyer shall determine in
its discretion whether or not it is willing to purchase any or all of the proposed Assets, and if
so, on what terms and conditions. It is expressly agreed and acknowledged that Buyer is entering
into the Transactions on the basis of all such representations and warranties and on the
completeness and accuracy of the information contained in the applicable Underwriting Package, and
any incompleteness or inaccuracies in the related Underwriting Package will only be acceptable to
Buyer if disclosed in writing to Buyer by Seller in advance of the Closing Date, and then only if
Buyer opts to purchase the related Purchased Asset from Seller notwithstanding such incompleteness
and inaccuracies. In the event

 

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of a Representation Breach, Seller shall immediately repurchase the related Asset or Assets in
accordance with Section 3.05.

(b) The Confirmation for each Transaction shall describe the related Asset, its Purchase Date,
Market Value, Applicable Percentage, Purchase Price and such other terms and conditions as Buyer
may require in its discretion. Upon the execution of a Confirmation by Buyer and Seller, the
related Transaction shall become effective and shall be subject to all of the terms and conditions
of the Repurchase Documents. Buyer’s approval of the purchase of an Asset on such terms and
conditions as Buyer may require in its discretion shall be evidenced only by its execution and
delivery of the related Confirmation. For the avoidance of doubt, Buyer shall not (i) be deemed to
have approved the purchase of an Asset by virtue of the approval or entering into by Buyer of a
rate lock agreement, the Initial Interest Rate Protection Agreement, total return swap or any other
agreement with respect to such Asset, or (ii) be obligated to purchase an Asset notwithstanding a
Confirmation executed by the Parties unless and until all applicable conditions precedent in
Article 6 have been satisfied or waived by Buyer in its discretion.

(c) Each Confirmation, together with this Agreement, shall be conclusive evidence of the terms
of the Transaction covered thereby, and shall be construed to be cumulative to the extent possible.
If terms in a Confirmation are inconsistent with terms in this Agreement with respect to a
particular Transaction, the Confirmation shall prevail. Whenever the Applicable Percentage, Excess
Financing Capacity or any other term of a Transaction (other than the Pricing Rate, Market Value
and outstanding Purchase Price) with respect to an Asset is revised or adjusted in accordance with
this Agreement, an amended and restated Confirmation reflecting such revision or adjustment and
that is otherwise acceptable to the Parties shall be prepared by Seller and executed by the
Parties.

(d) The fact that Buyer has conducted or has failed to conduct any partial or complete
examination or any other due diligence review of any Asset or Purchased Asset shall in no way
affect any rights Buyer may have under the Repurchase Documents or otherwise with respect to any
representations or warranties or other rights or remedies thereunder or otherwise, including the
right to determine at any time that such Asset or Purchased Asset is not an Eligible Asset, if such
Asset or Purchased Asset does not meet the requirements therefor, as set forth in the definition of
“Eligible Asset”.

(e) No Transaction shall be entered into if (i) any Margin Deficit, Default or Event of
Default exists or would exist as a result of such Transaction, (ii) the Repurchase Date for the
Purchased Assets subject to such Transaction would be later than the Maturity Date, or (iii) after
giving effect to such Transaction, the aggregate Repurchase Price of all Purchased Assets subject
to Transactions then outstanding would exceed the Maximum Amount.

Section 3.02 Transfer of Purchased Assets; Servicing Rights. Seller hereby sells,
transfers, conveys and assigns to Buyer on a servicing-released basis all of Seller’s right, title
and interest (but no Retained Interest) in and to such Purchased Asset, together with all related
Servicing Rights. On the Closing Date ownership of and title to all Purchased Assets shall be
transferred to and vest in Buyer or its designee against the simultaneous transfer of the Purchase
Price to the account of Seller specified in Annex 1 (or if not specified therein, in the

 

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related Confirmation or as directed by Seller). After the Closing Date, Seller shall have no
right to sell to Buyer, repurchase from Buyer and/or re-sell Eligible Assets to Buyer, and may not
substitute other Eligible Assets for Purchased Assets. Buyer has the right to designate the
servicer and sub-servicer of the Purchased Assets, and the Servicing Rights and other servicing
provisions under this Agreement are not severable from or to be separated from the Purchased Assets
under this Agreement, and such Servicing Rights and other servicing provisions of this Agreement
constitute (a) “related terms” under this Agreement within the meaning of Section 101(47)(A)(i) of
the Bankruptcy Code and/or (b) a security agreement or other arrangement or other credit
enhancement related to the Repurchase Documents.

Section 3.03 Excess Financing Capacity. If at any time prior to the expiration of the
Funding Period, Excess Financing Capacity exists for any Purchased Asset, Seller may request, but
not more frequently than twice per calendar week, and only upon the delivery of not less than three
(3) business days’ prior written notice to Buyer, that Buyer make additional advances in respect of
the Purchase Price thereof (each, an “Additional Advance”) in an amount up to the then-current
Excess Financing Capacity for such Purchased Asset. With each such request, Seller shall also
deliver to Buyer a description of any material change with respect to the related Purchased Asset
or the related Mortgaged Property, together with copies of any material documents or information
received by Seller to be added to the Underwriting Package in connection therewith as Buyer
requests. Provided that (a) Seller delivers to Buyer a certificate stating that each of the
Purchased Assets continues to be an Eligible Asset as of the date of any request for each
Additional Advance, (b) no uncured Default under Sections 10.01(a) or 10.01(f), or any uncured
Event of Default or Margin Deficit exist, and (c) no material adverse change exists with respect to
Seller, Guarantor, the Purchased Asset or the Mortgaged Property securing the Purchased Asset, then
the proceeds of each Additional Advance shall be paid to Seller by Buyer within one (1) Business
Day of the related request; provided, however, that if any Purchased Asset shall not be an Eligible
Asset (an “Ineligible Asset”), as of the date of request for an Additional Advance Buyer shall have
no further obligation under this Section 3.03 with respect to such Ineligible Asset; provided,
however, that subject to the limitations and condition set forth below, Buyer shall still be
required to fund such request and all subsequent and otherwise contractually compliant requests for
Additional Advances under this Section 3.03 with respect to the other Purchased Assets.
Notwithstanding the foregoing, it is acknowledged and agreed that any Additional Advance shall be
funded to Seller net of all amounts necessary to (a) repurchase any Ineligible Asset for which
Buyer has sent a repurchase notice under Section 3.05(b) and (b) satisfy any then-currently
unsatisfied Margin Calls. For purposes of this Agreement, all Additional Advances will be treated
as delayed disbursements of the Purchase Price of the related Purchased Asset.

Section 3.04 Maximum Amount. The aggregate outstanding Purchase Price for all
Purchased Assets as of any date shall not exceed the Maximum Amount. If such aggregate outstanding
Purchase Price exceeds the Maximum Amount, Seller shall within three (3) Business Days after notice
from Buyer, pay to Buyer an amount necessary to reduce such aggregate outstanding Purchase Price to
an amount equal to or less than the Maximum Amount.

Section 3.05 Early Repurchases; Mandatory Repurchases. (a) The terms and provisions
governing early repurchases and mandatory repurchases under Section 3.05(a) are set forth
in the Fee and Pricing Letter, and are hereby incorporated by reference.

 

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(b) In addition to other rights and remedies of Buyer under any Repurchase Document, Seller
shall repurchase any Purchased Asset that no longer qualifies as an Eligible Asset, as determined
by Buyer in its discretion, within three (3) Business Days of the receipt by Seller of a related
repurchase notice from Buyer.

(c) Notwithstanding the foregoing, at any time during the existence of an uncured Default or
Event of Default, Seller cannot repurchase a Purchased Asset in connection with a full payoff of
the underlying Whole Loan by the Underlying Obligor, unless one-hundred percent (100%) of the net
proceeds due in connection with the payoff in question shall be paid directly to Buyer. The
portion of all such net proceeds in excess of the then-current Repurchase Price of the related
Purchased Asset will be applied in Buyer’s sole and absolute discretion to reduce any other amounts
due and payable to Buyer under the Agreement, and then to reduce the Repurchase Prices of the other
Purchased Assets in such order and in such amounts as Buyer shall determine in its discretion.

(d) Additional terms and provisions governing early repurchases and mandatory repurchases
under Section 3.05(d) are set forth in the Fee and Pricing Letter, and are hereby
incorporated by reference.

Section 3.06 Repurchase. On the Repurchase Date for each Purchased Asset, Seller
shall transfer to Buyer the Repurchase Price for such Purchased Asset as of the Repurchase Date,
and Buyer shall transfer to Seller such Purchased Asset, whereupon the Transaction with respect to
such Purchased Asset shall terminate. Buyer shall be deemed to have simultaneously released its
security interest in such Purchased Asset, shall authorize Custodian to release to Seller the
Mortgage Loan Documents for such Purchased Asset and, to the extent any UCC financing statement
filed against Seller specifically identifies such Purchase Asset, Buyer shall deliver an amendment
thereto or termination thereof evidencing the release of such Purchased Asset from Buyer’s security
interest therein. Any such transfer or release shall be without recourse to Buyer and without
representation or warranty by Buyer, except that Buyer shall represent to Seller, to the extent
that good title was transferred and assigned by Seller to Buyer hereunder on the Closing Date, that
Buyer is the sole owner of the related Purchased Asset, free and clear of any other interests or
Liens created by Buyer. Any Income with respect to such Purchased Asset received by Buyer or
Collection Account Bank after payment of the Repurchase Price therefor shall be remitted to Seller.
Notwithstanding the foregoing, on or before the Maturity Date, Seller shall repurchase all
Purchased Assets by paying to Buyer the outstanding Repurchase Price therefor and all other
outstanding Repurchase Obligations.

Section 3.07 Payment of Price Differential and Fees.

(a) Notwithstanding that Buyer and Seller intend that the Transactions hereunder be sales to
Buyer of the Purchased Assets, Seller shall pay to Buyer the accrued value of the Price
Differential for each Purchased Asset on each Remittance Date. Buyer shall give Seller notice of
the Price Differential and any fees and other amounts due under the Repurchase Documents on or
prior to the second (2nd) Business Day preceding each Remittance Date; provided, that
Buyer’s failure to deliver such notice shall not affect Seller’s obligation to pay such amounts.
If the Price Differential includes any estimated Price Differential, Buyer shall

 

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recalculate such Price Differential after the Remittance Date and, if necessary, make
adjustments to the Price Differential amount due on the following Remittance Date.

(b) Seller shall pay to Buyer all fees and other amounts as and when due as set forth in this
Agreement including, without limitation:

(i) the Non-Utilization Fee, which shall be due and payable on a monthly basis on
each Remittance Date beginning on the first Remittance Date following the end of the
Funding Period, for the time period from the last day of the Funding Period until
such First Remittance Date; and

(ii) a ratable portion of the Commitment Fee shall be due and payable on the
Purchase Date (and on the date of each Additional Advance under Section
3.03) based on either the Purchase Price of each Purchased Asset or the amount
of each related Additional Advance, with the first payment due no earlier than the
Closing Date and the final payment due on the last day of the Funding Period,
whether or not the aggregate Purchase Price for all Purchased Assets is equal to the
Maximum Amount; provided that Buyer shall provide Seller and Guarantor with a
one-time dollar for dollar credit in an amount not to exceed the Commitment Fee, to
be used solely as a credit against the commitment fee and/or any other up-front fees
that would otherwise be due and payable by Seller, Guarantor or any of their
Affiliates in connection with either a subsequent increase in the Maximum Amount or
a new credit facility to Seller, Guarantor or any of their Affiliates, but only if
such an increase or new facility is (a) requested by Seller, (b) approved by Buyer
in its sole and absolute discretion and (c) accepted by Seller.

Section 3.08 Payment, Transfer and Custody.

(a) Unless otherwise expressly provided herein, all amounts required to be paid or deposited
by Seller hereunder shall be paid or deposited in accordance with the terms hereof no later than
3:00 p.m. on the day when due, in immediately available Dollars and without deduction, setoff or
counterclaim, and if not received before such time shall be deemed to be received on the next
Business Day. Whenever any payment hereunder shall be stated to be due on a day other than a
Business Day, such payment shall be made on the next following Business Day, and such extension of
time shall in such case be included in the computation of such payment. If Seller fails to pay all
or part of any Repurchase Price amount by 5:00 p.m., New York City time on any date when due, Buyer
may require Seller to pay (in addition to, and together with, such past-due Repurchase Price) a
late fee equal to one percent (1%) of the total amount of the late payment, plus interest on such
past-due Repurchase Price as provided in Section 18.16, until all such past-due Repurchase
Price is received in full by Buyer. Amounts payable to Buyer and not otherwise required to be
deposited into the Collection Account shall be deposited into an account of Buyer. Seller shall
have no rights in, rights of withdrawal from, or rights to give notices or instructions regarding
Buyer’s account, the Collection Account or the Servicing Agreement Account. Amounts in the
Collection Account and/or the Servicing Agreement Account may be invested at the direction and in
the discretion of Buyer in cash equivalents before they are distributed in accordance with
Article 5.

 

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(b) Any Mortgage Loan Documents not delivered to Buyer or Custodian are and shall be held in
trust by Seller or its agent for the benefit of Buyer as the owner thereof. Seller or its agent
shall maintain a copy of the Mortgage Loan Documents and the originals of the Mortgage Loan
Documents not delivered to Buyer or Custodian. The possession of Mortgage Loan Documents by Seller
or its agent is in a custodial capacity only at the will of Buyer for the sole purpose of assisting
Sub-Servicer with its duties under the Sub-Servicing Agreement. Each Mortgage Loan Document
retained or held by Seller or its agent shall be segregated on Seller’s books and records from the
other assets of Seller or its agent, and the books and records of Seller or its agent shall be
marked to reflect clearly the sale of the related Purchased Asset to Buyer on a servicing-released
basis. Seller or its agent shall release its custody of the Mortgage Loan Document only in
accordance with written instructions from Buyer, unless such release is required as incidental to
the sub-servicing of the Purchased Assets by Sub-Servicer or is in connection with a repurchase of
any Purchased Asset by Seller, in each case in accordance with the Custodial Agreement.

Section 3.09 Repurchase Obligations Absolute. All amounts payable by Seller under the
Repurchase Documents shall be paid without notice (except as expressly required in the Repurchase
Documents), demand, counterclaim, setoff, deduction or defense (as to any Person and for any reason
whatsoever) and without abatement, suspension, deferment, diminution or reduction (as to any Person
and for any reason whatsoever), and the Repurchase Obligations shall not be released, discharged or
otherwise affected, except as expressly provided herein, by reason of: (a) any damage to,
destruction of, taking of, restriction or prevention of the use of, interference with the use of,
title defect in, encumbrance on or eviction from, any Purchased Asset or related Underlying
Mortgaged Property, (b) any Insolvency Proceeding relating to Seller or any Underlying Obligor, or
any action taken with respect to any Repurchase Document or Mortgage Loan Document by any trustee
or receiver of Seller or any Underlying Obligor or by any court in any such proceeding, (c) any
claim that Seller has or might have against Buyer under any Repurchase Document or otherwise,
(d) any default or failure on the part of Buyer to perform or comply with any Repurchase Document
or other agreement with Seller, (e) the invalidity or unenforceability of any Purchased Asset,
Repurchase Document or Mortgage Loan Document, or (f) any other occurrence whatsoever, whether or
not similar to any of the foregoing, and whether or not Seller has notice or Knowledge of any of
the foregoing. The Repurchase Obligations shall be full recourse to Seller. This
Section 3.09 shall survive the termination of the Repurchase Documents and the payment in
full of the Repurchase Obligations.

ARTICLE 4

MARGIN MAINTENANCE

Section 4.01 Margin Deficit.

(a) If on any date (i) the Market Value of a Purchased Asset is less than (ii) the product of
(A) Buyer’s Margin Percentage multiplied by (B) the outstanding Repurchase Price for such Purchased
Asset as of such date (the excess, if any, of (ii) over (i), a “Margin Deficit”), then
Seller shall, within three (3) Business Days after notice from Buyer (a “Margin Call”),
transfer cash to Buyer in an amount at least equal to such Margin Deficit. Buyer shall

 

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apply the funds received in satisfaction of a Margin Deficit to the Repurchase Obligations in
such manner as Buyer determines in its discretion, to amounts due and owing under the Repurchase
Documents on such date. Additional terms and provisions governing Margin Deficits and Margin Calls
under this Section 4.01(a) are set forth in the Fee and Pricing Letter, and are hereby
incorporated by reference.

(b) Buyer’s election in its discretion not to deliver a Margin Call notice at any time there
is a Margin Deficit shall not waive the Margin Deficit or in any way limit or impair Buyer’s right
to deliver a Margin Call notice at any time when the same or any other Margin Deficit exists (and
the conditions to the delivery of such Margin Call notice under Section 4.01(a) above are
satisfied). Buyer’s rights under this Section 4.01 are in addition to and not in lieu of
any other rights of Buyer under the Repurchase Documents or Requirements of Law.

(c) All cash transferred to Buyer pursuant to this Section 4.01 with respect to a
Purchased Asset shall be deposited into the Collection Account, except as directed by Buyer in its
discretion, and notwithstanding any provision in Section 5.02 to the contrary, shall be
applied to reduce the Purchase Price of such Purchased Asset.

(d) Additional terms and provisions concerning the Debt Yield Test are set forth in the Fee
and Pricing Letter, and are hereby incorporated by reference.

ARTICLE 5

APPLICATION OF INCOME

Section 5.01 Collection Account; Servicing Agreement Account. The Collection Account
shall be established at Collection Account Bank and the Servicing Agreement Account shall be
established at the Collection Account Bank. Buyer shall have sole dominion and control (including,
without limitation, “control” within the meaning of Section 9-104(a) of the UCC) over the
Collection Account and the Servicing Agreement Account. Neither Seller nor any Person claiming
through or under Seller shall have any claim to or interest in the Collection Account or the
Servicing Agreement Account. All Income received by Seller, Buyer or Collection Account Bank in
respect of the Purchased Assets, as well as any interest received from the reinvestment of such
Income, (other than amounts of reinvestment income permitted to be retained by Servicer as
additional servicing compensation in accordance with Section 3.03(e) of the Sub-Servicing
Agreement) shall be deposited directly into the Collection Account (in the case of amounts
deposited by Servicer, such deposits to the Collection Account shall occur from the Servicing
Agreement Account in accordance with Sections 3.04 and 3.12 of the Sub-Servicing
Agreement) and shall be applied to and remitted by Collection Account Bank in accordance with this
Article 5. Notwithstanding the foregoing, so long as the Sub-Servicing Agreement is in
full force and effect and the Manager is acting as Sub-Servicer thereunder, all amounts to be paid
or are otherwise received from, or on behalf of, a related Underlying Obligor shall be paid
directly to the Servicing Agreement Account and, thereafter, remitted to the Collection Account in
accordance with the terms of the Sub-Servicing Agreement.

Section 5.02 Before an Event of Default. If no Event of Default exists, all Income
described in Section 5.01 and deposited into the Collection Account during each Pricing

 

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Period shall be applied by Collection Account Bank by no later than the next following
Remittance Date in the following order of priority:

first, to pay all then-currently due and payable servicing fees to Buyer (or its designated
Servicer), and to reimburse Buyer (or its designated Servicer) for any and all costs, expenses,
advances and similar amounts incurred by Buyer (or its designated Servicer) in connection with the
servicing of the Purchased Assets;

second, to the extent such payments are actually remitted by the Underlying Obligor to the
Collection Account, to remit the tax (and insurance, if applicable) escrow portion and any tenant
improvement, capital expenditure or other reserve portion of any payments received from each
Underlying Obligor to the respective escrow agents pursuant to the escrow agreements for the
related Mortgage Loan or Underlying Mortgage Loans, and whether or not any event of default exists
with respect to the related Mortgage Loan or Underlying Mortgage Loan;

third, to pay to Buyer an amount equal to the Price Differential accrued with respect to all
Purchased Assets as of such Remittance Date;

fourth, to pay to Buyer an amount equal to all default interest, late fees, fees, expenses and
Indemnified Amounts then due and payable from Seller and other applicable Persons to Buyer under
the Repurchase Documents;

fifth, to pay to Buyer an amount sufficient to eliminate any outstanding Margin Deficit
(without limiting Seller’s obligation to satisfy a Margin Deficit in a timely manner as required by
Section 4.01);

sixth, to pay any custodial fees and expenses due and payable under the Custodial Agreement;

seventh, to pay the Applicable Percentage of any Principal Payments to Buyer, but only to the
extent that such remittance would not result in the creation of a Margin Deficit, to be applied to
reduce the outstanding Purchase Price of Purchased Assets in such order as Buyer shall determine in
its discretion;

eighth, to pay to Buyer any other amounts due and payable from Seller and other applicable
Persons to Buyer under the Repurchase Documents;

ninth, to pay to Seller any remainder for its own account, subject, however, to the covenants
and other requirements of the Repurchase Documents.

Section 5.03 After an Event of Default. If an Event of Default exists, all Income
deposited into the Collection Account in respect of the Purchased Assets shall be applied by
Collection Account Bank, on the Business Day next following the Business Day on which each amount
of Income is so deposited, in the following order of priority:

first, to pay all then-currently due and payable servicing fees to Buyer (or its designated
Servicer), and to reimburse Buyer (or its designated Servicer) for any and all costs,

 

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expenses, advances and similar amounts incurred by Buyer (or its designated Servicer) in
connection with the servicing of the Purchased Assets;

second, to the extent such payments are actually remitted by the Underlying Obligor to the
Collection Account, to remit the tax (and insurance, if applicable) escrow portion of any payments
received from each Underlying Obligor to the respective escrow agents pursuant to the escrow
agreements for the related Mortgage Loan or Underlying Mortgage Loans, and whether or not any event
of default exists with respect to the related Mortgage Loan or Underlying Mortgage Loan;

third, to pay to Buyer an amount equal to the Price Differential accrued with respect to all
Purchased Assets as of such Remittance Date;

fourth, to pay to Buyer an amount equal to all default interest, late fees, fees, expenses and
Indemnified Amounts then due and payable from Seller and other applicable Persons to Buyer under
the Repurchase Documents;

fifth, to pay any custodial fees and expenses due and payable under the Custodial Agreement;

sixth, to pay to Buyer an amount equal to the aggregate Repurchase Price of all Purchased
Assets (to be applied in such order and in such amounts as determined by Buyer in its discretion,
until such Purchase Price has been reduced to zero) plus all other amounts due to Buyer under the
Repurchase Documents;

seventh, to pay to Buyer all other Repurchase Obligations due to Buyer; and

eighth, to pay to Seller any remainder for its own account.

Section 5.04 Seller to Remain Liable. If the amounts remitted to Buyer as provided in
Sections 5.02 and 5.03 are insufficient to pay all amounts due and payable from
Seller to Buyer under this Agreement or any Repurchase Document on a Remittance Date, a Repurchase
Date, upon the occurrence of an Event of Default or otherwise, Seller shall nevertheless remain
liable for and shall pay to Buyer when due all such amounts.

ARTICLE 6

CONDITIONS PRECEDENT

Section 6.01 Conditions Precedent to Initial Transaction. Buyer shall not be
obligated to enter into any Transaction or purchase any Asset until the following conditions have
been satisfied in the discretion of Buyer, or waived by Buyer in its discretion, on and as of the
Closing Date and the initial Purchase Date:

(a) Buyer has received the following documents, each dated the Closing Date or as of the
Closing Date unless otherwise specified: (i) each Repurchase Document duly executed and delivered
by the parties thereto, (ii) an official good standing certificate dated a

 

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recent date with respect to Seller (including in each jurisdiction where any Underlying
Mortgaged Property is located to the extent necessary for Buyer to enforce its rights and remedies
thereunder), (iii) certificates of the secretary or an assistant secretary of Seller with respect
to attached copies of the Governing Documents and applicable resolutions of Seller, and the
incumbencies and signatures of officers of Seller executing the Repurchase Documents to which it is
a party, evidencing the authority of Seller with respect to the execution, delivery and performance
thereof, (iv) a Closing Certificate, (v) an executed power of attorney of Seller in the form of
Exhibit O, (vi) such opinions from counsel to Seller as Buyer may require in its
discretion, including with respect to corporate matters, perfection of security interests,
Investment Company Act of 1940 matters, and the applicability of Bankruptcy Code safe harbors, and
(vii) all other documents, certificates, information, financial statements, reports, approvals and
opinions of counsel as it may require in its discretion;

(b) (i) UCC financing statements have been filed against Seller in all filing offices required
by Buyer, (ii) Buyer has received such searches of UCC filings, tax liens, judgments, pending
litigation and other matters relating to Seller and the Purchased Assets as Buyer may require in
its discretion, and (iii) the results of such searches are satisfactory to Buyer in its discretion;

(c) Buyer has received payment from Seller of all fees and expenses then payable under this
Agreement and the other Repurchase Documents, as contemplated by Section 13.02; and

(d) Buyer has completed to its satisfaction such due diligence and modeling as it may require
in its discretion.

Section 6.02 Conditions Precedent to All Transactions. Buyer shall not be obligated
to enter into any Transaction, purchase any Asset, or be obligated to take, fulfill or perform any
other action hereunder, until the following additional conditions have been satisfied in the
discretion of Buyer, or waived by Buyer in its discretion, with respect to each Asset on and as of
the Purchase Date therefor:

(a) Buyer has received the following documents: (i) a Transaction Request, (ii) an
Underwriting Package, (iii) a Confirmation, (iv) Irrevocable Redirection Notices, (v) a trust
receipt and other items required to be delivered under the Custodial Agreement, and (vi) all other
documents, certificates, information, financial statements, reports, approvals and opinions of
counsel as Buyer may require in its discretion;

(b) immediately before such Transaction and after giving effect thereto and to the intended
use thereof, no Representation Breach (including with respect to any Purchased Asset), Default,
Event of Default, Margin Deficit or Material Adverse Effect exists;

(c) Buyer has completed its due diligence review of the Underwriting Package, Mortgage Loan
Documents and such other documents, records and information as Buyer in its discretion deems
appropriate, and the results of such reviews are satisfactory to Buyer in its discretion;

 

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(d) Buyer has in its discretion (i) determined that such Asset is an Eligible Asset,
(ii) approved the purchase of such Asset, (iii) obtained all necessary internal credit and other
approvals for such Transaction, and (iv) executed the Confirmation;

(e) the aggregate outstanding Purchase Price of all Transactions does not exceed the Maximum
Amount after giving effect to such Transaction;

(f) the Purchase Date is not later than the Closing Date and the Repurchase Date is not later
than the Maturity Date;

(g) Seller has satisfied all requirements and conditions and have performed all covenants,
duties, obligations and agreements contained in the Repurchase Documents to be performed by Seller
on or before the Purchase Date;

(h) to the extent the related Mortgage Loan Documents or Junior Interest Documents contain
notice, cure and other provisions in favor of a pledgee under a repurchase or warehouse facility,
and without prejudice to the sale treatment of such Asset to Buyer, Buyer has received evidence
that Seller has given notice to the applicable Persons of Buyer’s interest in such Asset and
otherwise satisfied any other applicable requirements under such pledgee provisions so that Buyer
is entitled to the rights and benefits of a pledgee under such pledgee provisions;

(i) (i) Buyer has received a copy of the Initial Interest Rate Protection Agreement and
related documents, and (ii) no termination event, default or event of default (however defined)
exists thereunder; and

(j) Buyer shall have received blank assignments of all Mortgage Loan Documents in appropriate
form for recording in the jurisdiction in which the underlying real estate is located (the
“Blank Assignment Documents”).

Each Confirmation delivered by Seller shall constitute a certification by Seller that all of
the conditions precedent in this Article 6 have been satisfied, unless any such condition
precedent was expressly waived in the related Confirmation.

The failure of Seller to satisfy any of the conditions precedent in this Article 6
with respect to any Transaction or Purchased Asset shall, unless such failure was waived in writing
by Buyer in its discretion on or before the related Purchase Date, give rise to the right of Buyer
at any time to rescind the related Transaction, whereupon Seller shall immediately pay to Buyer the
Repurchase Price of such Purchased Asset.

ARTICLE 7

REPRESENTATIONS AND WARRANTIES OF SELLER

Seller represents and warrants, on and as of the date of this Agreement, each Purchase Date,
and at all times when any Repurchase Document or Transaction is in full force and effect, except as
set forth in Schedule 2, as follows:

 

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Section 7.01 Seller. Seller has been duly organized and validly exists in good
standing as a limited liability company under the laws of the State of Delaware. Seller (a) has
all requisite power, authority, legal right, licenses and franchises, (b) is duly qualified to do
business in all jurisdictions necessary, and (c) has been duly authorized by all necessary action,
to (w) own, lease and operate its properties and assets, (x) conduct its business as presently
conducted, (y) execute, deliver and perform its obligations under the Repurchase Documents to which
it is a party, and (z) acquire, own, sell, assign, pledge and repurchase the Purchased Assets.
Seller’s exact legal name is set forth in the preamble and signature pages of this Agreement.
Seller’s location (within the meaning of Article 9 of the UCC), and the office where Seller keeps
all records (within the meaning of Article 9 of the UCC) relating to the Purchased Assets is at the
address of Seller referred to in Annex 1. Seller has not changed its name or location
within the past twelve (12) months. Seller’s organizational identification number is 4786854 and
its tax identification number is 27-1869666. Seller is a wholly-owned Subsidiary of Guarantor.
The fiscal year of Seller is the calendar year. Seller has no Indebtedness, Contractual
Obligations or investments other than (a) ordinary trade payables, (b) in connection with Assets
acquired or originated for the Transactions, and (c) the Repurchase Documents. Seller has no
Guarantee Obligations.

Section 7.02 Repurchase Documents. Each Repurchase Document to which Seller is a
party has been duly executed and delivered by Seller and constitutes the legal, valid and binding
obligation of Seller enforceable against Seller in accordance with its terms, except as such
enforceability may be limited by Insolvency Laws and general principles of equity. The execution,
delivery and performance by Seller of each Repurchase Document to which it is a party do not and
will not (a) conflict with, result in a breach of, or constitute (with or without notice or lapse
of time or both) a default under, any (i) Governing Document, Indebtedness, Guarantee Obligation or
Contractual Obligation applicable to Seller or any of its properties or assets, (ii) Requirements
of Law, or (iii) approval, consent, judgment, decree, order or demand of any Governmental
Authority, or (b) result in the creation of any Lien (other than Permitted Liens) on any of the
properties or assets of Seller. All approvals, authorizations, consents, orders, filings, notices
or other actions of any Person or Governmental Authority required for the execution, delivery and
performance by Seller of the Repurchase Documents to which it is a party and the sale of and grant
of a security interest in each Purchased Asset to Buyer, have been obtained, effected, waived or
given and are in full force and effect. The execution, delivery and performance of the Repurchase
Documents do not require compliance by Seller with any “bulk sales” or similar law. There is no
material litigation, proceeding or investigation pending or, to Seller’s Knowledge, threatened,
against Seller, Manager, any Intermediate Starwood Entity or Guarantor before any Governmental
Authority (a) asserting the invalidity of any Repurchase Document, (b) seeking to prevent the
consummation of any Transaction, or (c) seeking any determination or ruling that could reasonably
be expected to have a Material Adverse Effect.

Section 7.03 Solvency. None of Seller, Manager, any Intermediate Starwood Entity or
Guarantor is or has ever been the subject of an Insolvency Proceeding. Seller, Manager, each
Intermediate Starwood Entity and Guarantor are Solvent and the Transactions do not and will not
render Seller, Manager, any Intermediate Starwood Entity or Guarantor not Solvent. Seller is not
entering into the Repurchase Documents or any Transaction with the intent to hinder, delay or
defraud any creditor of Seller, Manager, any Intermediate Starwood Entity or Guarantor. Seller has
received or will receive reasonably equivalent value for the Repurchase

 

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Documents and each Transaction. Seller has adequate capital for the normal obligations
reasonably foreseeable in a business of its size and character and in light of its contemplated
business operations. Seller is generally able to pay, and as of the date hereof is paying, its
debts as they come due.

Section 7.04 Taxes. Seller, Manager, each Intermediate Starwood Entity and Guarantor
have filed all required federal income tax returns and all other material tax returns, domestic and
foreign, required to be filed by them and have paid all material taxes (including mortgage
recording taxes), assessments, fees, and other governmental charges payable by them, or with
respect to any of their properties or assets, which have become due, and income or franchise taxes
have been paid or are being contested in good faith by appropriate proceedings diligently conducted
and for which appropriate reserves have been established in accordance with GAAP. Seller, Manager,
each Intermediate Starwood Entity and Guarantor have paid, or have provided adequate reserves for
the payment of, all such taxes for all prior fiscal years and for the current fiscal year to date.
There is no material action, suit, proceeding, investigation, audit or claim relating to any such
taxes now pending or, to Seller’s Knowledge, threatened by any Governmental Authority which is not
being contested in good faith as provided above. None of Seller, Manager, any Intermediate
Starwood Entity or Guarantor has entered into any agreement or waiver or been requested to enter
into any agreement or waiver extending any statute of limitations relating to the payment or
collection of taxes, or is aware of any circumstances that would cause the taxable years or other
taxable periods of Seller, Manager, any Intermediate Starwood Entity or Guarantor not to be subject
to the normally applicable statute of limitations. No tax liens have been filed against any assets
of Seller, Manager, any Intermediate Starwood Entity or Guarantor. Seller does not intend to treat
any Transaction as being a “reportable transaction” as defined in Treasury Regulation
Section 1.6011–4. If Seller determines to take any action inconsistent with such intention, it
will promptly notify Buyer, in which case Buyer may treat each Transaction as subject to Treasury
Regulation Section 301.6112–1 and will maintain the lists and other records required thereunder.

Section 7.05 Financial Condition. The audited balance sheet of Guarantor as at the
fiscal year most recently ended for which such audited balance sheet is available, and the related
audited statements of income and retained earnings and of cash flows for the fiscal year then
ended, setting forth in each case, except for the 2009 calendar year, in comparative form the
figures for the previous year, reported on without a “going concern” or like qualification arising
out of the audit conducted by Guarantor’s independent certified public accountants, copies of which
have been delivered to Buyer, are complete and correct and present fairly the financial condition
of Guarantor as of such date and the results of its operations and cash flows for the fiscal year
then ended. All such financial statements, including related schedules and notes, were prepared in
accordance with GAAP except as disclosed therein. Guarantor does not have any material contingent
liability or liability for taxes or any long term lease or unusual forward or long term commitment,
including any Derivative Contract, which is not reflected in the foregoing statements or notes.
Since the date of the financial statements and other information delivered to Buyer prior to the
Closing Date, neither Seller nor Guarantor has sold, transferred or otherwise disposed of any
material part of its property or assets (except pursuant to the Repurchase Documents) or, except
pursuant to the Purchase Agreement, acquired any property or assets (including Equity Interests of
any other Person) that are material in relation to the financial condition of Seller.

 

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Section 7.06 True and Complete Disclosure. The information, reports, certificates,
documents, financial statements, operating statements, forecasts, books, records, files, exhibits
and schedules furnished by or on behalf of Seller to Buyer in connection with the Repurchase
Documents and the Transactions, when taken as a whole, do not contain any untrue statement of
material fact or omit to state any material fact necessary to make the statements herein or
therein, in light of the circumstances under which they were made, not misleading. All written
information furnished after the date hereof by or on behalf of Seller to Buyer in connection with
the Repurchase Documents and the Transactions will be true, correct and complete in all material
respects, or in the case of projections will be based on reasonable estimates prepared and
presented in good faith, on the date as of which such information is stated or certified.

Section 7.07 Compliance with Laws. Seller has complied in all material respects with
all Requirements of Laws, and, to Seller’s Actual Knowledge, no Purchased Asset contravenes any
Requirements of Laws. Neither Seller nor any Affiliate of Seller (a) is an “enemy” or an “ally of
the enemy” as defined in the Trading with the Enemy Act of 1917, (b) is in violation of any
Anti-Terrorism Laws, (c) is a blocked person described in Section 1 of Executive Order 13224 or to
its Knowledge engages in any dealings or transactions or is otherwise associated with any such
blocked person, (d) is in violation of any country or list based economic and trade sanction
administered and enforced by the Office of Foreign Assets Control, (e) is a Sanctioned Entity,
(f) has more than 10% of its assets located in Sanctioned Entities, or (g) derives more than 10% of
its operating income from investments in or transactions with Sanctioned Entities. The proceeds of
any Transaction have not been and will not be used to fund any operations in, finance any
investments or activities in or make any payments to a Sanctioned Entity. Seller is a “qualified
purchaser” as defined in the Investment Company Act of 1940. None of Seller, Manager, any
Intermediate Starwood Entity or Guarantor (a) is or is controlled by an “investment company” as
defined in such Act or is exempt from the provisions of such Act, (b) is a “broker” or “dealer” as
defined in, or could be subject to a liquidation proceeding under, the Securities Investor
Protection Act of 1970, or (c) is subject to regulation by any Governmental Authority limiting its
ability to incur the Repurchase Obligations. No properties presently or previously owned or leased
by Seller, Manager, any Intermediate Starwood Entity or Guarantor, or any of their respective
predecessors contain or previously contained any Materials of Environmental Concern which
constitute or constituted a violation of Environmental Laws or reasonably could be expected to give
rise to liability of Seller, Manager, any Intermediate Starwood Entity or Guarantor thereunder.
Seller has no Actual Knowledge of any violation, alleged violation, non-compliance, liability or
potential liability of Seller, Manager, any Intermediate Starwood Entity or Guarantor under any
Environmental Law. Materials of Environmental Concern have not been released, transported,
generated, treated, stored or disposed of in violation of Environmental Laws or in a manner which
reasonably could be expected to give rise to liability of Seller, Manager, any Intermediate
Starwood Entity or Guarantor thereunder. Seller and all Affiliates of Seller are in compliance
with the Foreign Corrupt Practices Act of 1977 and any foreign counterpart thereto. Neither Seller
nor any Affiliate of Seller has made, offered, promised or authorized a payment of money or
anything else of value (a) in order to assist in obtaining or retaining business for or with, or
directing business to, any foreign official, foreign political party, party official or candidate
for foreign political office, (b) to any foreign official, foreign political party, party official
or candidate for foreign political office, or (c) with the intent to induce the recipient to misuse
his or her official

 

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position to direct business wrongfully to Seller, any Affiliate of Seller or any other Person,
in violation of the Foreign Corrupt Practices Act.

Section 7.08 Compliance with ERISA. With respect to Guarantor, any Intervening
Starwood Entity or Seller, during the immediately preceding five (5) year period, (a) neither a
Reportable Event nor an “accumulated funding deficiency” as defined in the Code or ERISA has
occurred, (b) each Plan has complied in all material respects with the applicable provisions of the
Code and ERISA, (c) no termination of a Single Employer Plan has occurred resulting in any
liability that has remained underfunded, and (d) no Lien in favor of the Pension Benefit Guaranty
Commission or a Plan has arisen. The present value of all accrued benefits under each Single
Employer Plan (based on the assumptions used to fund such Plan) relating to Guarantor, any
Intervening Starwood Entity or Seller did not, as of the last annual valuation date prior to the
date hereof, exceed the value of the assets of such Plan allocable to such accrued benefits. None
of Guarantor, any Intervening Starwood Entity or Seller is currently subject to any liability for a
complete or partial withdrawal from a Multiemployer Plan.

Section 7.09 No Default or Material Adverse Effect. No Event of Default and, to
Seller’s Knowledge, no Default exists. Seller believes that it is and will be able to pay and
perform each agreement, duty, obligation and covenant contained in the Repurchase Documents and
Mortgage Loan Documents to which it is a party, and that it is not subject to any agreement,
obligation, restriction or Requirements of Law which would unduly burden its ability to do so or
could reasonably be expected to have a Material Adverse Effect. Seller has no Knowledge of any
actual or prospective development, event or other fact that could reasonably be expected to have a
Material Adverse Effect. No Internal Control Event has occurred.

Section 7.10 Purchased Assets. Each Purchased Asset is an Eligible Asset. Each
representation and warranty set forth in the Repurchase Documents (including those set forth in
Schedules 1(a) and 1(b) applicable to the Class of such Purchased Asset) with
respect to each Purchased Asset is true and correct. Seller has delivered to Custodian true,
correct and complete copies of the Mortgage Loan Documents and Junior Interest Documents, as
applicable, relating to each Purchased Asset. Seller has no Actual Knowledge of any fact which
could reasonably lead it to expect that any Purchased Asset will not be paid in full. None of the
Mortgage Loan Documents has any marks or notations indicating that it has been sold, assigned,
pledged, encumbered or otherwise conveyed to any Person other than Buyer. If any Mortgage Loan
Document requires the holder or transferee of the related Purchased Asset to be a qualified
transferee, qualified institutional lender or qualified lender (however defined), Seller meets such
requirement. Assuming that Buyer also meets such requirement, the assignment and pledge of such
Purchased Asset to Buyer pursuant to the Repurchase Documents do not violate such Mortgage Loan
Document. Seller and all Affiliates of Seller (a) have sold and transferred all Servicing Rights
with respect to the Purchased Assets to Buyer, and (b) have no retained interests.

Section 7.11 Purchased Assets Acquired from Transferors. With respect to each
Purchased Asset purchased by Seller from a Transferor, (a) such Purchased Asset was acquired and
transferred pursuant to a Purchase Agreement, (b) such Transferor received reasonably equivalent
value in consideration for the transfer of such Purchased Asset, (c) no such transfer was made for
or on account of an antecedent debt owed by such Transferor to Seller or an

 

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Affiliate of Seller, (d) no such transfer is or may be voidable or subject to avoidance under
the Bankruptcy Code, and (e) the representations and warranties made by such Transferor to Seller
or such Affiliate in such Purchase Agreement and set forth on the attached Exhibit Q hereto
are hereby incorporated herein by reference and are hereby remade by Seller to Buyer on each date
as of which they speak in such Purchase Agreement.

Section 7.12 Transfer and Security Interest. The Repurchase Documents constitute a
valid and effective transfer to Buyer of all right, title and interest of Seller in, to and under
all Purchased Assets (together with all related Servicing Rights), free and clear of any Liens
(other than Permitted Liens). With respect to the protective security interest granted by Seller in
Section 11.01, upon the delivery of the Confirmations and the Mortgage Loan Documents to Custodian,
the execution and delivery of the Controlled Account Agreements and the filing of the UCC financing
statements as provided herein, such security interest shall be a valid first priority perfected
security interest to the extent such security interest can be perfected by possession, filing or
control under the UCC, subject only to Permitted Liens. Upon receipt by Custodian of each Mortgage
Loan Document required to be endorsed in blank by Seller and payment by Buyer of the Purchase Price
for the related Purchased Asset, Buyer shall either (a) own such Purchased Asset and the related
Mortgage Loan Documents or (b) have a valid first priority perfected security interest in such
Purchased Asset and the related Mortgage Loan Documents. At Buyer’s election (and at Buyer’s sole
cost and expense, only if completed and recorded by Buyer prior to a Default or Event of Default),
Buyer may complete and record any or all of the Blank Assignment Documents as further evidence of
Buyer’s ownership interest in the related Purchased Assets. Seller has not authorized the filing
of and is not aware of any UCC financing statements filed against Seller as debtor that include the
Purchased Assets, other than any financing statement that has been terminated or filed pursuant to
this Agreement.

Section 7.13 No Broker. Neither Seller nor any Affiliate of Seller has dealt with any
broker, investment banker, agent or other Person, except for Buyer or an Affiliate of Buyer, who
may be entitled to any commission or compensation in connection with any Transaction.

Section 7.14 Initial Interest Rate Protection Agreement. (a) Guarantor has entered
into the Initial Interest Rate Protection Agreement, (b) such Initial Interest Rate Protection
Agreement is in full force and effect, and (c) no termination event, default or event of default
(however defined) exists thereunder.

Section 7.15 Separateness. Seller is in compliance with the requirements of
Article 9.

Section 7.16 REIT Status. Guarantor has not engaged in any material “prohibited
transactions” as defined in Section 857(b)(6)(B)(iii) and (C) of the Code. Guarantor for its
current “tax year” (as defined in the Code) is entitled to a dividends paid deduction under the
requirements of Section 857 of the Code with respect to any dividends paid by it with respect to
each such year for which it claims a deduction in its Form 1120-REIT filed with the United States
Internal Revenue Service for such year.

 

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Section 7.17 Investment Company Act. Neither Seller, any Intermediate Starwood Entity
or Guarantor is an “investment company”, or a company “controlled” by an “investment company”,
within the meaning of the 40 Act.

Section 7.18 Conveyance of Excluded Assets. At the time Seller transferred ownership
of the Excluded Assets, such transfer was accomplished through a dividend of such Excluded Assets
to Principal in accordance with the organizational documents and requirements of Seller and
Principal, and without recourse and without any representation or warranty or continuing obligation
or liability to Seller, Manager, any Intermediate Starwood Entity or Guarantor.

ARTICLE 8

COVENANTS OF SELLER

From the date hereof until the Repurchase Obligations are paid in full and the Repurchase
Documents are terminated, Seller shall perform and observe the following covenants, which shall be
given independent effect.

Section 8.01 Existence; Governing Documents; Conduct of Business. Seller shall
(a) preserve and maintain its legal existence, (b) qualify and remain qualified in good standing in
each jurisdiction where the failure to be so qualified would have a Material Adverse Effect,
(c) comply with its Governing Documents, including all special purpose entity provisions, and
(d) not modify, amend or terminate its Governing Documents in any material respect, without Buyer’s
prior written approval, which approval shall not be unreasonably withheld, conditioned or delayed.
Seller shall (a) continue to engage in the same (and no other) general lines of business as
presently conducted by it, (b) maintain and preserve all of its material rights, privileges,
licenses and franchises necessary for the operation of its business, and (c) maintain Seller’s
status as a qualified transferee, qualified institutional lender or qualified lender (however
defined) if and to the extent required under the Mortgage Loan Documents. Seller shall not
(a) change its name, organizational number, tax identification number, fiscal year, method of
accounting, identity, structure or jurisdiction of organization (or have more than one such
jurisdiction), move the location of its principal place of business and chief executive office, as
defined in the UCC) from the location referred to in Section 7.01, or (b) move, or consent
to Custodian moving, the Mortgage Loan Documents from the location thereof on the Closing Date,
unless in each case Seller has given at least thirty (30) days prior notice to Buyer and has taken
all actions required under the UCC to continue the first priority perfected security interest of
Buyer in the Purchased Assets. Seller shall enter into each Transaction as principal, unless Buyer
in its discretion agrees before a Transaction that Seller may enter into such Transaction as agent
for a principal and under terms and conditions disclosed to Buyer.

Section 8.02 Compliance with Laws, Contractual Obligations and Repurchase Documents.
Seller shall comply in all material respects with all Requirements of Laws, including those
relating to any Purchased Asset and to the reporting and payment of taxes. No part of the proceeds
of any Transaction shall be used for any purpose that violates Regulation T, U or X of the Board of
Governors of the Federal Reserve System. Seller shall conduct the requisite due diligence in
connection with the origination or acquisition of each Asset for

 

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purposes of complying with the Anti–Terrorism Laws, including with respect to the legitimacy
of the applicable Underlying Obligor and the origin of the assets used by such Person to purchase
the Underlying Mortgaged Property, and will maintain sufficient information to identify such Person
for purposes of the Anti–Terrorism Laws. Seller shall maintain the Custodial Agreement and
Controlled Account Agreement in full force and effect. Seller shall not directly or indirectly
enter into any agreement that would be violated or breached by any Transaction or the performance
by Seller of any Repurchase Document.

Section 8.03 Structural Changes. Seller shall not enter into merger or consolidation,
or liquidate, wind up or dissolve, or sell all or substantially all of its assets or properties, or
permit any changes in the ownership of its Equity Interests which results in a Change of Control of
Seller, without the consent of Buyer in its discretion (unless, in any of the foregoing cases, the
Repurchase Obligations are paid in full in connection with any such transaction). Seller shall
ensure that all direct Equity Interests of Seller shall continue to be owned by the owner or owners
thereof as of the date hereof. Seller shall ensure that neither the Equity Interests of Seller nor
any property or assets of Seller shall be pledged to any Person other than Buyer. Seller shall not
enter into any transaction with an Affiliate of Seller unless such transaction is on market and
arm’s-length terms and conditions.

Section 8.04 Protection of Buyer’s Interest in Purchased Assets. With respect to each
Purchased Asset, Seller shall take all action necessary or required by the Repurchase Documents,
Mortgage Loan Documents or Requirements of Law, or reasonably requested by Buyer, to perfect,
protect and more fully evidence Buyer’s ownership of and first priority perfected security interest
in such Purchased Asset and related Mortgage Loan Documents, including executing or causing to be
executed such other instruments or notices as may be necessary or appropriate and filing and
maintaining effective UCC financing statements, continuation statements and assignments and
amendments thereto. Seller shall comply with all requirements of the Custodial Agreement with
respect to each Purchased Asset, including the delivery to Custodian of all required Mortgage Loan
Documents. Seller shall (a) not assign, sell, transfer, pledge, hypothecate, grant, create, incur,
assume or suffer or permit to exist any security interest in or Lien (other than Permitted Liens)
on any Purchased Asset to or in favor of any Person other than Buyer, (b) defend such Purchased
Asset against, and take such action as is necessary to remove, any such Lien, and (c) defend the
right, title and interest of Buyer in and to all Purchased Assets against the claims and demands of
all Persons whomsoever. Notwithstanding the foregoing, if Seller grants a Lien on any Purchased
Asset in violation of this Section 8.04 or any other Repurchase Document, Seller shall be
deemed to have simultaneously granted an equal and ratable Lien on such Purchased Asset in favor of
Buyer to the extent such Lien has not already been granted to Buyer; provided, that such equal and
ratable Lien shall not cure any resulting Default or Event of Default. Seller shall not materially
amend, modify, waive or terminate any provision of the Purchase Agreement or the Sub-Servicing
Agreement. Seller shall mark its computer records and tapes to evidence the interests granted to
Buyer hereunder. Seller shall not take any action to cause any Purchased Asset that is not
evidenced by an instrument or chattel paper (as defined in the UCC) to be so evidenced. If a
Purchased Asset becomes evidenced by an instrument or chattel paper, the same shall be immediately
delivered to Custodian on behalf of Buyer, together with endorsements required by Buyer in its
discretion.

 

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Section 8.05 Actions of Seller Relating to Distributions, Indebtedness, Guarantee
Obligations, Contractual Obligations, Investments and Liens. At any time after the occurrence
and during the continuance of any Default under Sections 10.01(a) or 10.01(f), any
Event of Default or any breach of the Debt Yield Test, Seller shall not declare or make any payment
on account of, or set apart assets for, a sinking or similar fund for the purchase, redemption,
defeasance, retirement or other acquisition of any Equity Interest of Seller, Manager, any
Intermediate Starwood Entity or Guarantor, whether now or hereafter outstanding, or make any other
distribution in respect thereof, either directly or indirectly, whether in cash or property or in
obligations of Seller, Manager, any Intermediate Starwood Entity or Guarantor. Seller shall not
contract, create, incur, assume or permit to exist any Indebtedness, Guarantee Obligations,
Contractual Obligations or Investments, except to the extent (a) arising or existing under the
Repurchase Documents, (b) existing as of the Closing Date, as referenced in the financial
statements delivered to Buyer prior to the Closing Date, and any renewals, refinancings or
extensions thereof in a principal amount not exceeding that outstanding as of the date of such
renewal, refinancing or extension, (c) incurred after the Closing Date to originate or acquire
Assets or to provide funding with respect to Assets, (d) pursuant to the Initial Interest Rate
Protection Agreement entered into in order to manage risks related to Assets, and (e) unsecured
trade payables and personal property leases and financings incurred in the ordinary course of
business, so long as the maximum outstanding amount of all liabilities described in this clause (e)
shall at no time exceed an amount equal to three hundred thousand dollars ($300,000). Seller shall
not (a) contract, create, incur, assume or permit to exist any Lien on or with respect to any of
its property or assets (including the Purchased Assets) of any kind (whether real or personal,
tangible or intangible), whether now owned or hereafter acquired, except for Permitted Liens, or
(b) except as provided in the preceding clause (a), grant, allow or enter into any agreement or
arrangement with any Person that prohibits or restricts or purports to prohibit or restrict the
granting of any Lien on any of the foregoing.

Section 8.06 Maintenance Records. Seller shall keep and maintain all documents,
books, records and other information (including with respect to the Purchased Assets) that are
reasonably necessary or advisable in the conduct of its business.

Section 8.07 Financial Covenants.

(a) Seller shall comply with the Debt Yield Test at all times. Buyer shall have the right, in
its discretion, to test for compliance with the Debt Yield Test for any calendar quarter, which may
be tested at such times as Buyer determines, and any failure of Buyer to do so as of any particular
date shall not constitute a waiver of Buyer’s right to do so at any time thereafter. Buyer agrees
that in the event that it declares a Debt Yield Test compliance breach and Seller pays any and all
amounts payable in full with respect to such compliance breach in accordance with Section
4.01(d), the Buyer shall not declare an additional Debt Yield Test compliance breach with
respect to the calendar quarter that was the subject of the cured compliance breach; provided that
this sentence shall not prevent Buyer from making any declaration of any other Event of Default
hereunder and shall not act to prevent Buyer from declaring a breach of the Debt Yield Test at any
other time.

(b) Seller shall not permit its Net Income during any fiscal year to be less than zero.

 

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Section 8.08 Delivery of Income. Seller shall, and pursuant to Irrevocable
Redirection Notices shall cause the Underlying Obligors under the Purchased Assets and all other
applicable Persons to, deposit all Income in respect of the Purchased Assets into the Servicing
Agreement Account or the Collection Account in accordance with Section 5.01 hereof on the
day the related payments are due. Seller, Servicer and Sub-Servicer (a) shall comply with and
enforce each Irrevocable Redirection Notice, (b) shall not amend, modify, waive, terminate or
revoke any Irrevocable Redirection Notice without Buyer’s consent in its discretion, and (c) shall
take all reasonable steps to enforce each Irrevocable Redirection Notice. In connection with each
principal payment or prepayment under a Purchased Asset, Seller shall provide or cause to be
provided to Buyer and Custodian sufficient detail to enable Buyer and Custodian to identify the
Purchased Asset to which such payment applies. If Seller receives any rights, whether in addition
to, in substitution of, as a conversion of, or in exchange for any Purchased Assets, or otherwise
in respect thereof, Seller shall accept the same as Buyer’s agent, hold the same in trust for Buyer
and immediately deliver the same to Buyer or its designee in the exact form received, together with
duly executed instruments of transfer, stock powers or assignment in blank and such other
documentation as Buyer shall reasonably request. If any Income is received by Seller or any
Affiliate of Seller, Seller shall pay or deliver such Income to Buyer on behalf of Buyer within two
(2) Business Days after receipt, and, until so paid or delivered, hold such Income in trust for
Buyer, segregated from other funds of Seller.

Section 8.09 Delivery of Financial Statements and Other Information. Seller shall
deliver the following to Buyer, as soon as available and in any event within the time periods
specified:

(a) within forty-five (45) days after the end of each fiscal quarter and each fiscal year of
Guarantor, (i) the unaudited balance sheets of Guarantor as at the end of such period, (ii) the
related unaudited statements of income, retained earnings and cash flows for such period and the
portion of the fiscal year through the end of such period, setting forth in each case in
comparative form the figures for the previous year, and (iii) a Compliance Certificate;

(b) within ninety (90) days after the end of each fiscal year of Guarantor, (i) the audited
balance sheets of Guarantor as at the end of such fiscal year, (ii) the related statements of
income, retained earnings and cash flows for such year, setting forth in each case in comparative
form the figures for the previous year, (iii) an opinion thereon of independent certified public
accountants of recognized national standing, which opinion shall not be qualified as to scope of
audit or going concern and shall state that said financial statements fairly present the financial
condition and results of operations of Guarantor as at the end of and for such fiscal year in
accordance with GAAP, (iv) a projections of Guarantor of the operating budget and cash flow budget
of Guarantor for the following fiscal year, to the extent such is prepared and (v) a Compliance
Certificate;

(c) all reports submitted to Guarantor by independent certified public accountants in
connection with each annual, interim or special audit of the books and records of Guarantor made by
such accountants, including any management letter commenting on Guarantor’s internal controls;

 

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(d) with respect to each Purchased Asset and related Underlying Mortgaged Property, on or
before each Remittance Date, all remittance, servicing, securitization, exception and other
reports, if any, and all operating and financial statements and rent rolls of all Underlying
Obligors for all Mortgaged Properties during the prior month, when and as received from
Sub-Servicer, an Underlying Obligor, a third-party servicer or from any other source;

(e) all financial statements, reports, notices and other documents that Guarantor sends to
holders of its Equity Interests or makes to or files with any Governmental Authority, promptly
after the delivery or filing thereof;

(f) any other material agreements, correspondence, documents or other information not included
in the Underwriting Package on the Closing Date, which is related to Seller or the Purchased
Assets, as soon as possible after the discovery thereof by Seller, any Intermediate Starwood Entity
or Guarantor; and

(g) such other information regarding the financial condition, operations or business of
Seller, Guarantor or any Underlying Obligor as Buyer may reasonably request including, without
limitation, any such information which is otherwise necessary to allow Buyer to monitor compliance
with the terms of the Repurchase Documents.

Section 8.10 Delivery of Notices. Seller shall promptly (and in no event later than
one (1) Business Day from the date of each such occurrence) notify Buyer of the occurrence of any
of the following of which Seller has Knowledge, together with a certificate of a Responsible
Officer of Seller setting forth details of such occurrence and any action Seller has taken or
proposes to take with respect thereto:

(a) a Representation Breach;

(b) any of the following: (i) with respect to any Purchased Asset or related Underlying
Mortgaged Property: material change in Market Value, material loss or damage, material licensing or
permit issues, violation of Requirements of Law, discharge of or damage from Material of
Environmental Concern or any other actual or expected event or change in circumstances that could
reasonably be expected to result in a default or material decline in value or cash flow, and
(ii) with respect to Seller: violation of Requirements of Law, material decline in the value of
Seller’s assets or properties, an Internal Control Event or other event or circumstance that could
reasonably be expected to have a Material Adverse Effect;

(c) the existence of any Default, Event of Default or material default under or related to a
Purchased Asset, Mortgage Loan Document, Indebtedness, Guarantee Obligation or Contractual
Obligation of Seller;

(d) the resignation or termination of Sub-Servicer under the Sub-Servicing Agreement;

(e) the establishment of a rating by any Rating Agency applicable to Seller, Guarantor,
Manager or any Intermediate Starwood Entity, and any downgrade in or withdrawal of such rating
once established;

 

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(f) the commencement of, settlement of or material judgment in any litigation, action, suit,
arbitration, investigation or other legal or arbitrable proceedings before any Governmental
Authority that (i) affects Seller, Guarantor, any Purchased Asset or any Underlying Mortgaged
Property, (ii) questions or challenges the validity or enforceability of any Repurchase Document,
Transaction, Purchased Asset or Mortgage Loan Document, or (iii) individually or in the aggregate,
if adversely determined, could reasonably be likely to have a Material Adverse Effect; and

(g) promptly upon Knowledge thereof, notice of any change in Guarantor’s status as a REIT.

Section 8.11 Hedging. The terms and provisions governing Hedging under this
Section 8.11 are set forth in the Fee and Pricing Letter, and are hereby incorporated by
reference.

Section 8.12 Escrow Imbalance. Seller shall, no later than ten (10) Business Days
after learning of any material overdraw, deficit or imbalance in any escrow or reserve account
relating to a Purchased Asset, use reasonable efforts to cause the applicable Underlying Obligor to
correct and eliminate the same, including by depositing funds into such account.

Section 8.13 Guarantee Agreement. If at any time (a) the obligations of any Guarantor
under the Guarantee Agreement shall cease to be in effect, (b) any Insolvency Event has occurred
with respect to Guarantor, or (c) any violation of any provision set forth in Section 9 of
the Guarantee Agreement should occur and be continuing (any of the foregoing events, a
“Guarantee Default”), then, within sixty (60) days after the occurrence of any such
Guarantee Default, Seller shall cause a replacement guarantor acceptable to Buyer in its discretion
to assume in writing all obligations of Guarantor under the Guarantee Agreement or become a
Guarantor, as Buyer deems necessary in its discretion to correct such Guarantee Default.

Section 8.14 Management Internalization. Seller shall not permit Guarantor to
internalize its management without Buyer’s prior written approval, which shall not be unreasonably
withheld.

Section 8.15 REIT Status. Guarantor shall at all times continue to be (i) qualified
as a REIT as defined in Section 856 of the Code without giving any effect to any cure or corrective
periods or allowances, (ii) entitled to a dividends paid deduction under Section 857 of the Code
with respect to dividends paid by it with respect to each taxable year for which it claims a
deduction on its Form 1120 REIT filed with the United States Internal Revenue Service for such
year, or the entering into by it of any material “prohibited transactions” as defined in Sections
857(b) and 856(c) of the Code, and (iii) a publicly traded company listed, quoted or traded on and
in good standing in respect of any Stock Exchange.

Section 8.16 Certain Post-Closing Obligations.Section 8.17 Each of the following
post-closing conditions must be satisfied on or before the dates specified therein, as determined
by Buyer in its sole discretion:

(a) On or before May 31, 2010, for all of the accounts described in Section 17.02
which are maintained in connection with the Purchased Assets described on Exhibit R hereto,
Seller shall use all reasonable, good faith best efforts to cause the Underlying

 

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Obligors to enter into the contractual arrangements with Buyer and Seller that are necessary in
order to create a perfected security interest in favor of Seller (for the joint benefit of both
Seller and Buyer) in all such accounts, including, without limitation, an Account Control Agreement
in form and substance reasonably acceptable to Buyer in its sole discretion.

(b) On or before April 2, 2010, Seller shall provide Buyer with evidence of the delivery of
executed copies of irrevocable direction notices, each in form and substance acceptable to Buyer in
its discretion, to all depository institutions that maintain escrow accounts in connection with
any Purchased Assets. On or before April 30, 2010, Seller shall provide Buyer with copies of all
such irrevocable direction notices, countersigned by the related Mortgagors and the related
depository institutions.

(c) On or before May 2, 2010, Seller shall resolve, to Buyer’s satisfaction determined in its
discretion, all of the open items listed on the Custodian’s exception report, a copy of which is
attached hereto as Exhibit 8.16(c), which evidence shall include, without limitation, (a)
for all unrecorded documents, the delivery to Buyer of either recorded copies or evidence that they
have been delivered for recording, and (b) for all newly filed UCC-1 financing statements, the
delivery to Buyer of recorded copies of the same, together with currently dated and clean copies of
new UCC searches at all related filing locations.

(d) On or before April 30, 2010, Seller shall provide Buyer with evidence reasonably
acceptable to Buyer that insurance coverage reasonably acceptable to Buyer is currently in full
force and effect in connection with the Underlying Mortgage Loan commonly known as Constellation
Place.

(e) On or before April 30, 2010, Seller shall provide Buyer with (i) a re-issued original copy
of the existing $5,000,000 Letter of Credit, originally issued by U.S. Bank, National Association
in connection with the Whole Loans commonly known as the Lifetime Fitness loans, naming Seller
as sole beneficiary and containing a written acknowledgement from the issuing bank of Buyer’s
security interest therein, and (ii) issued original copies of the two (2) existing Letters of
Credit in the aggregate face amount of $2,960,313.66, originally issued by Citibank, N.A., as
re-issued by Wells Fargo Bank, National Association in connection with the Whole Loans commonly
known as the 301 Carlson Parkway Loan and the 401 Carlson Parkway Loan, respectively in the face
amounts of $550,198.57 and $531,384.75, naming Seller as sole beneficiary and containing written
acknowledgements from the issuing bank of Buyer’s security interests therein.

(f) On or before 5:00 PM on April 2, 2010, Seller shall deliver a fully executed, currently
dated and properly completed Compliance Certificate to Buyer.

ARTICLE 9

SINGLE-PURPOSE ENTITY

Section 9.01 Covenants Applicable to Seller. Seller shall (a) own, and, other than
the Excluded Assets, has owned no assets, and shall not engage in any business, other than the
assets and transactions specifically contemplated by this Agreement and any other

 

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Repurchase Document, (b) not incur any Indebtedness or other obligation, secured or unsecured,
direct or indirect, absolute or contingent (including guaranteeing any obligation), other than
(i) with respect to the Mortgage Loan Documents and the Retained Interests, (ii) commitments to
make loans which may become Eligible Assets, and (iii) as otherwise permitted under this Agreement,
(c) not make any loans or advances to any Affiliate or third party and shall not acquire
obligations or securities of its Affiliates, in each case other than in connection with the
origination or acquisition of Assets for purchase under the Repurchase Documents, (d) pay its debts
and liabilities (including, as applicable, shared personnel and overhead expenses) only from its
own assets, (e) comply with the provisions of its Governing Documents, (f) do all things necessary
to observe organizational formalities and to preserve its existence, and shall not amend, modify,
waive provisions of or otherwise change its Governing Documents in any material respect without the
prior written approval of Buyer, (g) maintain all of its books, records, financial statements and
bank accounts separate from those of its Affiliates (except that such financial statements may be
consolidated to the extent consolidation is required under GAAP or as a matter of Requirements of
Law; provided, that (i) appropriate notation shall be made on such financial statements to indicate
the separateness of Seller from such Affiliate and to indicate that Seller’s assets and credit are
not available to satisfy the debts and other obligations of such Affiliate or any other Person and
(ii) such assets shall also be listed on Seller’s own separate balance sheet) and file its own tax
returns (except to the extent consolidation is required or permitted under Requirements of Law),
(h) be, and at all times shall hold itself out to the public as, a legal entity separate and
distinct from any other entity (including any Affiliate), shall correct any known misunderstanding
regarding its status as a separate entity, shall conduct business in its own name, and shall not
identify itself or any of its Affiliates as a division of the other, (i) maintain adequate capital
for the normal obligations reasonably foreseeable in a business of its size and character and in
light of its contemplated business operations and shall remain Solvent, (j) not engage in or suffer
any change of Control, dissolution, winding up, liquidation, consolidation or merger in whole or in
part or convey or transfer all or substantially all of its properties and assets to any Person
(except as contemplated herein), (k) not commingle its funds or other assets with those of any
Affiliate or any other Person and shall maintain its properties and assets in such a manner that it
would not be costly or difficult to identify, segregate or ascertain its properties and assets from
those of others, (l) maintain its properties, assets and accounts separate from those of any
Affiliate or any other Person, (m) not hold itself out to be responsible for the debts or
obligations of any other Person, (n) not, without the prior unanimous written consent of all of its
Independent Directors, take any Insolvency Action, (o) (i) have at all times at least one
Independent Director, or such greater number if necessary to comply with customary industry
standards then-currently applicable to bankruptcy remote entities, and (ii) provide Buyer with
up-to-date contact information for all Independent Director(s) and a copy of the agreement pursuant
to which each Independent Director consents to and serves as an “Independent Director” for
Seller, (p) the Governing Documents for Seller shall provide (i) that Buyer be given at least two
(2) Business Days prior notice of the removal and/or replacement of the Independent Director,
together with the name and contact information of the replacement Independent Director and evidence
of the replacement’s satisfaction of the definition of Independent Director and (ii) that the
Independent Director of Seller shall not have any fiduciary duty to anyone including the holders of
the Equity Interest in Seller and any Affiliates of Seller except Seller and the creditors of
Seller with respect to taking of, or otherwise voting on, the Insolvency Action; provided,
that the foregoing shall not

 

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eliminate the implied contractual covenant of good faith and fair dealing, (q) not enter into
any transaction with an Affiliate of Seller except on commercially reasonable terms similar to
those available to unaffiliated parties in an arm’s-length transaction, (r) maintain a sufficient
number of employees in light of contemplated business operations, (s) use separate stationary,
invoices and checks bearing its own name, and (t) allocate fairly and reasonably any overhead for
shared office space and for services performed by an employee of an affiliate, and (u) not pledge
its assets to secure the obligations of any other Person, and (v) not form, acquire or hold any
Subsidiary or own any Equity Interest in any other entity.

Section 9.02
Additional Covenants Applicable to Seller. (a) Seller (i) shall be a
Delaware limited liability company, (ii) shall have at least one Independent Director or
Independent Manager serving as manager of such company, (iii) shall not take any Insolvency Action
and shall not cause or permit the members or managers of such entity to take any Insolvency Action,
either with respect to itself or, if the company is a Principal, with respect to Seller, in each
case unless all of its Independent Directors or Independent Managers then serving as managers of
the company shall have consented in writing to such action, and (iv) shall have either (A) a member
which owns no economic interest in the company, has signed the company’s limited liability company
agreement and has no obligation to make capital contributions to the company, or (B) two natural
persons or one entity that is not a member of the company, that has signed its limited liability
company agreement and that, under the terms of such limited liability company agreement becomes a
member of the company immediately prior to the resignation or dissolution of the last remaining
member of the company.

ARTICLE 10

EVENTS OF DEFAULT AND REMEDIES

Section 10.01 Events of Default. Each of the following events shall be an “Event
of Default”:

(a) Seller fails to make a payment of (i) Repurchase Price (other than Price Differential)
when due, whether by acceleration or otherwise, (ii) Price Differential when due, or (iii) any
other amount (including all unpaid Margin Deficits) when due, in each case under the Repurchase
Documents;

(b) Seller fails to observe or perform in any material respect any other Repurchase Obligation
of Seller under the Repurchase Documents or the Mortgage Loan Documents to which Seller is a party,
and (except in the case of a failure to perform or observe the Repurchase Obligations of Seller
under Section 8.04 and 18.08(a)) such failure continues unremedied for five (5)
Business Days after the earlier of receipt of notice thereof from Buyer or the discovery of such
failure by Seller (or such longer period as agreed to by Buyer in its discretion, not to exceed
fifteen (15) days from the date of the underlying breach, but only if such underlying breach is
capable of being cured and so long as Seller diligently and continuously takes all actions
necessary to cure such underlying breach);

(c) any Representation Breach (other than a breach of any of the representations and
warranties set forth on Schedules 1(a) and 1(b) hereto, which will not, in and

 

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of themselves, be Events of Default) exists and continues unremedied for ten (10) Business
Days after the earlier of receipt of notice thereof from Buyer or the discovery of such
Representation Breach by Seller;

(d) Seller or Guarantor defaults beyond any applicable grace period in paying any amount or
performing any obligation under any Indebtedness, Guarantee Obligation or Contractual Obligation
with an outstanding amount of at least $100,000 with respect to Seller, or $25,000,000 with respect
to Guarantor, and the effect of such default is to permit the acceleration thereof (regardless of
whether such default is waived or such acceleration occurs);

(e) Seller or Guarantor defaults beyond any applicable grace period in paying any amount or
performing any obligation due to Buyer or any Affiliate of Buyer under any other financing,
hedging, security or other agreement between Seller or Guarantor and Buyer or any Affiliate of
Buyer;

(f) an Insolvency Event occurs with respect to Seller, any Intermediate Starwood Entity or
Guarantor;

(g) a Change of Control occurs with respect to Seller, Manager, any Intermediate Starwood
Entity or Guarantor, without the prior written consent of Buyer, not to be unreasonably withheld;

(h) a final judgment or judgments for the payment of money in excess of $100,000 with respect
to Seller, or $25,000,000 with respect to Guarantor, in each case in the aggregate and in each case
that is not insured against is entered against Seller or Guarantor by one or more Governmental
Authorities and the same is not satisfied, discharged (or provision has not been made for such
discharge) or bonded, or a stay of execution thereof has not been procured, within thirty (30) days
from the date of entry thereof;

(i) a Governmental Authority takes any action to (i) condemn, seize or appropriate, or assume
custody or control of, all or any substantial part of the property of Seller, (ii) displace the
management of Seller or curtail its authority in the conduct of the business of Seller, or
(iii) terminate the activities of Seller as contemplated by the Repurchase Documents;

(j) Seller, any Intermediate Starwood Entity or Guarantor admits in writing that it is not
Solvent or is not able to perform any of its Repurchase Obligations, Contractual Obligations,
Guarantee Obligations, Capital Lease Obligations or Off-Balance Sheet Obligations;

(k) any provision of the Repurchase Documents, any right or remedy of Buyer or obligation,
covenant, agreement or duty of Seller thereunder, or any Lien, security interest or control granted
under or in connection with the Repurchase Documents or Purchased Assets terminates, is declared
null and void, ceases to be valid and effective, ceases to be the legal, valid, binding and
enforceable obligation of Seller or any other Person, or the validity, effectiveness, binding
nature or enforceability thereof is contested, challenged, denied or repudiated by Seller or any
other Person, in each case directly, indirectly, in whole or in part, except that, Seller have a
period of three (3) Business Days from the date of each such violation

 

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to either repurchase the related Purchased Asset from Buyer pursuant to Section 3.05
or cure the related breach, as such cure is determined by Buyer in its discretion;

(l) Buyer ceases for any reason to have a valid and perfected first priority security interest
in any Purchased Asset except that, Seller have a period of three (3) Business Days from the date
of each such violation to cure the related breach, as such cure is determined by Buyer in its
discretion;

(m) Seller, any Intermediate Starwood Entity or Guarantor is required to register as an
“investment company” (as defined in the 40 Act) or the arrangements contemplated by the Repurchase
Documents shall require registration of Seller, Manager, any Intermediate Starwood Entity or
Guarantor as an “investment company”;

(n) Seller engages in any conduct or action where Buyer’s prior consent is required by any
Repurchase Document and Seller fails to obtain such consent;

(o) Seller, Sub-Servicer, Guarantor, Manager, any Intermediate Starwood Entity or any other
Person or, due to the action or inaction of any of the foregoing, (but not merely as a result of
the unprompted failure by any Underlying Obligor to make a payment under a Purchased Asset) any
Underlying Obligor or any other Person fails to deposit to the Servicing Agreement Account or the
Collection Account all Income and other amounts as required by Section 5.01 and other
provisions of this Agreement within two (2) Business Days of when due;

(p) Guarantor’s audited annual financial statements or the notes thereto or other opinions or
conclusions stated therein are qualified or limited by reference to the status of Guarantor as a
“going concern” or a reference of similar import, other than a qualification or limitation
expressly related to Buyer’s rights in the Purchased Assets;

(q) Guarantor fails (i) to qualify as a REIT (without giving any effect to any cure or
corrective periods or allowances), or (ii) to continue to be entitled to a dividend paid deduction
under Section 857 of the Code with respect to dividends paid by it with respect to each taxable
year for which it claims a deduction on its Form 1120- REIT filed with the United States Internal
Revenue Service for such year, or the entering into by Guarantor of “prohibited transactions” as
defined in Sections 857(b)(6)(B)(iii) of the Code (taking into account Sections 857(b)(6)(C),
857(b)(6)(D) and 857(b)(6)(E) of the Code) or (iii) to satisfy any of the income or asset tests
required to be satisfied by a REIT;

(r) Guarantor breaches any of the obligations, terms or conditions set forth in the Guarantee
Agreement and such breach remains uncured for at least three (3) Business Days; or

(s) Any Material Modification is made to any Purchased Asset or any Mortgage Loan Document
without the prior written consent of Buyer.

Section 10.02 Remedies of Buyer as Owner of the Purchased Assets. If an Event of
Default exists, at the option of Buyer, exercised by notice to Seller (which option shall be deemed
to be exercised, even if no notice is given, automatically and immediately upon the occurrence of
an Event of Default under Section 10.01(f)), the Repurchase Date for all Purchased

 

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Assets shall be deemed automatically and immediately to occur (the date on which such option
is exercised or deemed to be exercised, the “Accelerated Repurchase Date”). If Buyer
exercises or is deemed to have exercised the foregoing option:

(a) All Repurchase Obligations shall become immediately due and payable on and as of the
Accelerated Repurchase Date.

(b) All amounts in the Collection Account and/or the Servicing Agreement Account and all
Income paid after the Accelerated Repurchase Date shall be retained by Buyer and applied in
accordance with Article 5.

(c) Buyer may complete any assignments, allonges, endorsements, powers or other documents or
instruments executed in blank and otherwise obtain physical possession of all Mortgage Loan
Documents and other instruments, certificates and documents then held by Custodian under the
Custodial Agreement. Buyer may obtain physical possession of all Servicing Files, Servicing
Agreements and other files and records of Seller, Servicer or Sub-Servicer. Seller shall deliver
to Buyer such assignments and other documents with respect thereto as Buyer shall request.

(d) Buyer may in its discretion immediately, at any time and from time to time, exercise
either of the following remedies with respect to any or all of the Purchased Assets: (i)  sell
such Purchased Assets on a servicing-released basis in a recognized market and by means of a public
or private sale at such price or prices as Buyer accepts in its discretion, and apply the net
proceeds thereof in accordance with Article 5, or (ii) retain such Purchased Assets and
give Seller credit against the Repurchase Price for such Purchased Assets (or if the amount of such
credit exceeds the Repurchase Price for such Purchased Assets, to other Repurchase Obligations due
and any other amounts then owing to Buyer by any other Person pursuant to any Repurchase Document,
in such order and in such amounts as determined by Buyer in its discretion), in an amount equal to
the market value of such Purchased Assets. Until such time as Buyer exercises either such remedy
with respect to a Purchased Asset, Buyer may hold such Purchased Asset for its own account and
retain all Income with respect thereto.

(e) The Parties agree that the Purchased Assets are of such a nature that they may decline
rapidly in value, and may not have a ready or liquid market. Accordingly, Buyer shall not be
required to sell more than one Purchased Asset on a particular Business Day, to the same purchaser
or in the same manner. Buyer may determine in its discretion whether, when and in what manner a
Purchased Asset shall be sold, it being agreed that both a good faith public and a good faith
private sale shall be deemed to be commercially reasonable. Except as expressly required herein or
in the other Repurchase Documents, Buyer shall not be required to give notice to Seller or any
other Person prior to exercising any remedy in respect of an Event of Default. If no prior notice
is given, Buyer shall give notice to Seller of the remedies exercised by Buyer promptly thereafter.
Buyer shall act in good faith in exercising its rights and remedies under this Article 10.

(f) Seller shall be liable to Buyer for (i) any amount by which the Repurchase Obligations due
to Buyer exceed the aggregate of the net proceeds and credits referred to in the preceding
clause (d), (ii) the amount of all actual out-of-pocket expenses, including reasonable

 

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legal fees and expenses, actually incurred by Buyer in connection with or as a consequence of
an Event of Default, (iii) any costs and losses payable under Section 12.03, and (iv) any
other actual loss, damage, cost or expense resulting from the occurrence of an Event of Default.

(g) Buyer shall be entitled to an injunction, an order of specific performance or other
equitable relief to compel Seller to fulfill any of its obligations as set forth in the Repurchase
Documents, including this Article 10, if Seller fails or refuses to perform its obligations
as set forth herein or therein.

(h) Seller hereby appoints Buyer as attorney-in-fact of Seller for purposes of carrying out
the Repurchase Documents, including executing, endorsing and recording any instruments or documents
and taking any other actions that Buyer deems necessary or advisable to accomplish such purposes,
which appointment is coupled with an interest and is irrevocable.

(i) Buyer may, without prior notice to Seller, exercise any or all of its set-off rights
including those set forth in Section 18.17. This Section 10.02(i) shall be without
prejudice and in addition to any right of set-off, combination of accounts, Lien or other rights to
which any Party is at any time otherwise entitled.

(j) All rights and remedies of Buyer under the Repurchase Documents, including those set forth
in Section 18.17, are cumulative and not exclusive of any other rights or remedies which
Buyer may have and may be exercised at any time when an Event of Default exists. Such rights and
remedies may be enforced without prior judicial process or hearing. Seller agrees that nonjudicial
remedies are consistent with the usages of the trade, are responsive to commercial necessity and
are the result of a bargain at arm’s-length. Seller hereby expressly waives any defenses Seller
might have to require Buyer to enforce its rights by judicial process or otherwise arising from the
use of nonjudicial process, disposition of any or all of the Purchased Assets, or any other
election of remedies.

ARTICLE 11

SECURITY INTEREST

Section 11.01 Grant. Buyer and Seller intend that all Transactions shall be sales to
Buyer of the Purchased Assets and not loans from Buyer to Seller secured by the Purchased Assets.
However, to preserve and protect Buyer’s rights with respect to the Purchased Assets and under the
Repurchase Documents in the event that any Governmental Authority recharacterizes the Transactions
as other than sales, and as security for Seller’s performance of the Repurchase Obligations, Seller
hereby grants to Buyer a Lien on and security interest in all of the right, title and interest of
Seller in, to and under the Purchased Assets (which for this purpose shall be deemed to include the
items described in the proviso in the definition thereof), and the transfers of the
Purchased Assets to Buyer shall be deemed to constitute and confirm such grant, to secure the
payment and performance of the Repurchase Obligations (including the obligation of Seller to pay
the Repurchase Price, or if the Transactions are recharacterized as loans, to repay such loans for
the Repurchase Price).

 

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Section 11.02 Effect of Grant. If any circumstance described in Section 11.01
occurs, (a) this Agreement shall also be deemed to be a security agreement as defined in the UCC,
(b) Buyer shall have all of the rights and remedies provided to a secured party by Requirements of
Law (including the rights and remedies of a secured party under the UCC and the right to set off
any mutual debt and claim) and under any other agreement between Buyer and Seller, (c) without
limiting the generality of the foregoing, Buyer shall be entitled to set off the proceeds of the
liquidation of the Purchased Assets against all of the Repurchase Obligations, without prejudice to
Buyer’s right to recover any deficiency, (d) the possession by Buyer or any of its agents,
including Custodian, of the Mortgage Loan Documents, the Purchased Assets and such other items of
property as constitute instruments, money, negotiable documents, securities or chattel paper shall
be deemed to be possession by the secured party for purposes of perfecting such security interest
under the UCC and Requirements of Law, and (e) notifications to Persons (other than Buyer) holding
such property, and acknowledgments, receipts or confirmations from Persons (other than Buyer)
holding such property, shall be deemed notifications to, or acknowledgments, receipts or
confirmations from, securities intermediaries, bailees or agents (as applicable) of the secured
party for the purpose of perfecting such security interest under the UCC and Requirements of Law.
The security interest of Buyer granted herein shall be, and Seller hereby represents and warrants
to Buyer that it is, a first priority perfected security interest. For the avoidance of doubt,
(i) each Purchased Asset secures the Repurchase Obligations of Seller with respect to all other
Transactions and all other Purchased Assets, including any Purchased Assets that are junior in
priority to the Purchased Asset in question, and (B) if an Event of Default exists, no Purchased
Asset will be released from Buyer’s Lien or transferred to Seller until the Repurchase Obligations
are indefeasibly paid in full provided, however, notwithstanding the foregoing,
Buyer shall be required to release its Lien on any Purchased Asset in the event of a repayment in
full by the underlying borrower of any Mortgage Loan or Junior Interest and Seller’s payment of the
Repurchase Price with respect to such Purchased Asset in accordance with Section 3.05.
Notwithstanding the foregoing, the Repurchase Obligations shall be full recourse to Seller.

Section 11.03 Seller to Remain Liable. The parties agree that the grant of a security
interest under this Article 11 shall not constitute or result in the creation or assumption by
Buyer of any Retained Interest or other obligation of Seller or any other Person in connection with
any Purchased Asset, whether or not Buyer exercises any right with respect thereto. Seller shall
remain liable under the Purchased Assets and Mortgage Loan Documents to perform all of Seller’s
duties and obligations thereunder to the same extent as if the Repurchase Documents had not been
executed.

Section 11.04 Waiver of Certain Laws. Seller agrees, to the extent permitted by
Requirements of Law, that neither it nor anyone claiming through or under it will set up, claim or
seek to take advantage of any appraisement, valuation, stay, extension or redemption law now or
hereafter in force in any locality where any Purchased Assets may be situated in order to prevent,
hinder or delay the enforcement or foreclosure of this Agreement, or the absolute sale of any of
the Purchased Assets, or the final and absolute putting into possession thereof, immediately after
such sale, of the purchasers thereof, and Seller, for itself and all who may at any time claim
through or under it, hereby waives, to the full extent that it may be lawful so to do, the benefit
of all such laws and any and all right to have any of the properties or assets constituting the
Purchased Assets marshaled upon any such sale, and agrees that Buyer or any court having

 

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jurisdiction to foreclose the security interests granted in this Agreement may sell the
Purchased Assets as an entirety or in such parcels as Buyer or such court may determine.

ARTICLE 12

INCREASED COSTS; CAPITAL ADEQUACY

Section 12.01 Market Disruption. If prior to any Pricing Period, Buyer determines
that, by reason of circumstances affecting the relevant market, adequate and reasonable means do
not exist for ascertaining the LIBO Rate for such Pricing Period, Buyer shall give prompt notice
thereof to Seller, whereupon the Pricing Rate for such Pricing Period, and for all subsequent
Pricing Periods until such notice has been withdrawn by Buyer, shall be the Alternative Rate.

Section 12.02 Illegality. If the adoption of or any change in any Requirements of Law
or in the interpretation or application thereof after the date hereof shall make it unlawful for
Buyer to effect or continue Transactions as contemplated by the Repurchase Documents, (a) any
commitment of Buyer hereunder to enter into new Transactions shall be terminated and the Funding
Expiration Date shall be deemed to have occurred, (b) the Pricing Rate shall be converted
automatically to the Alternative Rate on the last day of the then current Pricing Period or within
such earlier period as may be required by Requirements of Law, and (c) if required by such adoption
or change, the Maturity Date shall be deemed to have occurred.

Section 12.03 Breakfunding. Seller shall indemnify Buyer and hold Buyer harmless from
any loss, cost or expense (including legal fees and expenses) which Buyer may sustain or incur
arising from (a) the failure by Seller to terminate any Transaction after Seller has given a notice
of termination pursuant to Section 3.05, (b) any payment to Buyer on account of the
outstanding Repurchase Price, including a payment made pursuant to Section 3.05 but
excluding a payment made pursuant to Section 5.02, on any day other than a Remittance Date
(based on the assumption that Buyer funded its commitment with respect to the Transaction in the
London Interbank Eurodollar market and using any reasonable attribution or averaging methods which
Buyer deems appropriate and practical) (upon request, Buyer shall provide Seller with notice of the
underlying calculation methodology), (c) any failure by Seller to sell Eligible Assets to Buyer
after Seller has notified Buyer of a proposed Transaction and Buyer has agreed to purchase such
Eligible Assets in accordance with this Agreement, or (d) any conversion of the Pricing Rate to the
Alternative Rate because the LIBO Rate is not available for any reason on a day which is not the
last day of the then current Pricing Period. Notwithstanding the foregoing, in no event shall any
amounts be payable under this Section 12.03 in connection with any voluntary and
contractually permissible repurchase by Seller of a Purchased Asset from Buyer.

Section 12.04 Increased Costs. If the adoption of or any change in any Requirements
of Law or in the interpretation or application thereof by any Governmental Authority or compliance
by Buyer with any request or directive (whether or not having the force of law) from any central
bank or other Governmental Authority having jurisdiction over Buyer made after the date of this
Agreement (a) shall subject Buyer to any tax of any kind whatsoever with respect to the Repurchase
Documents, any Purchased Asset or any Transaction, or change the basis of taxation of payments to
Buyer in respect thereof (except for income taxes and any

 

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changes in the rate of tax on Buyer’s overall net income), (b) shall impose, modify or hold
applicable any reserve, special deposit, compulsory loan or similar requirement against assets held
by, deposits or other liabilities in or for the account of, advances, loans or other extensions of
credit by, or any other acquisition of funds by, any office of Buyer, or (c) shall impose on Buyer
any other condition; and the result of any of the preceding clauses (a), (b) and (c) is to increase
the cost to Buyer, by an amount which Buyer deems to be material, of entering into, continuing or
maintaining Transactions, or to reduce any amount receivable under the Repurchase Documents in
respect thereof, then, in any such case, Seller shall pay to Buyer such additional amount or
amounts as reasonably necessary to fully compensate Buyer for such increased cost or reduced amount
receivable.

Section 12.05 Capital Adequacy. If Buyer determines that the adoption of or any
change in any Requirements of Law regarding capital adequacy or in the interpretation or
application thereof or compliance by Buyer or any corporation Controlling Buyer with any request or
directive regarding capital adequacy (whether or not having the force of law) from any Governmental
Authority made after the date of this Agreement has or shall have the effect of reducing the rate
of return on Buyer’s or such corporation’s capital as a consequence of its obligations hereunder to
a level below that which Buyer or such corporation could have achieved but for such adoption,
change or compliance (taking into consideration Buyer’s or such corporation’s policies with respect
to capital adequacy) by an amount deemed by Buyer in its discretion to be material, then, in any
such case, Seller shall pay to Buyer such additional amount or amounts as reasonably necessary to
fully compensate Buyer for such reduction.

Section 12.06 Withholding Taxes. (a) All payments made by Seller to Buyer or any
other Indemnified Person under the Repurchase Documents and by Underlying Obligors with respect to
the Purchased Assets shall be made free and clear of and without deduction or withholding for or on
account of any taxes. If any taxes are required to be withheld from any amounts payable to Buyer
and/or any other Indemnified Person, then the amount payable to such Person will be increased (such
increase, the “Additional Amount”) such that every net payment made under this Agreement
after withholding for or on account of any taxes (including any taxes on such increase) is not less
than the amount that would have been paid absent such deduction or withholding provided,
however, that Seller shall not be required to pay any Additional Amount to Buyer, any
Eligible Assignee or any other Person that is not organized under the laws of the United States or
any state thereof if Buyer or such Person fails to comply with Section 12.06(b). The
foregoing obligation to pay Additional Amounts, however, will not apply with respect to net income
or franchise taxes imposed on Buyer and/or any other Indemnified Person, with respect to payments
required to be made by Seller under the Repurchase Documents, by a taxing jurisdiction in which
Buyer and/or any other Indemnified Person is organized, conducts business or is paying taxes (as
the case may be). Promptly after Seller pays any taxes referred to in this Section 12.06,
Seller will send Buyer appropriate evidence of such payment.

(b) If a Person acquires any of the rights and obligations of Buyer as an Eligible Assignee
under this Agreement, and such Person is not organized under the laws of the United States, any
state thereof or the District of Columbia (a “Non-U.S. Person”), such Non-U.S. Person shall
deliver to Seller on or before the date on which such Person becomes a party to this Agreement, two
duly completed and executed copies of, as applicable, IRS Form W-8BEN or IRS Form W-8ECI or any
successor forms thereto designated as such by the IRS. If the Non-

 

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U.S. Person is eligible for and wishes to claim exemption from or reduction in U.S. federal
withholding tax through benefit of a treaty, such Person shall deliver a Form W-8ECI. If the
Non-U.S. Person is eligible for and wishes to claim exemption from U.S. federal withholding tax
under Section 871(h) or Section 881(c) of the Code with respect to payments of “portfolio
interest,” such Person shall deliver both the Form W-8BEN and a statement certifying that such
Person is not a bank, a “10 percent shareholder” or a “controlled foreign corporation” within the
meaning of Section 881(c)(3) of the Code. If any previously delivered form or statement becomes
inaccurate with respect to the Non-U.S. Person that delivered it, the Non-U.S. Person shall
promptly notify Seller of this fact.

Section 12.07 Payment and Survival of Obligations. Buyer may at any time send Seller
a notice showing the calculation of any amounts payable pursuant to this Article 12, and
Seller shall pay such amounts to Buyer within ten (10) Business Days after Seller receives such
notice. The obligations of Seller under this Article 12 shall apply to Eligible Assignees
and Participants and survive the termination of the Repurchase Documents.

ARTICLE 13

INDEMNITY AND EXPENSES

Section 13.01 Indemnity.

(a) Seller shall release, defend, indemnify and hold harmless Buyer, Affiliates of Buyer and
its and their respective officers, directors, shareholders, partners, members, owners, employees,
agents, attorneys, Affiliates and advisors (each an “Indemnified Person” and collectively
the “Indemnified Persons”), on a net after-tax basis, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, taxes (other than
income taxes of Buyer), fees, costs, expenses (including legal fees and expenses), penalties or
fines of any kind that may be imposed on, incurred by or asserted against such Indemnified Person
(collectively, the “Indemnified Amounts”) in any way relating to, arising out of or
resulting from or in connection with (i) the Repurchase Documents, the Mortgage Loan Documents, the
Purchased Assets, the Transactions, any Underlying Mortgaged Property or related property, or any
action taken or omitted to be taken by any Indemnified Person in connection with or under any of
the foregoing, or any transaction contemplated hereby or thereby, or any amendment, supplement or
modification of, or any waiver or consent under or in respect of any Repurchase Document or
Transaction, (ii) any claims, actions or damages by an Underlying Obligor or lessee with respect to
a Purchased Asset, (iii) any violation or alleged violation of, non–compliance with or liability
under any Requirements of Law, (iv) ownership of, Liens on, security interests in or the exercise
of rights or remedies under any of the items referred to in the preceding clause (i), (v) any
accident, injury to or death of any person or loss of or damage to property occurring in, on or
about any Underlying Mortgaged Property or on the adjoining sidewalks, curbs, parking areas,
streets or ways, (vi) any use, nonuse or condition in, on or about, or possession, alteration,
repair, operation, maintenance or management of, any Underlying Mortgaged Property or on the
adjoining sidewalks, curbs, parking areas, streets or ways, (vii) any failure by Seller to perform
or comply with any Repurchase Document, Mortgage Loan Document or Purchased Asset,
(viii) performance of any labor or services or the furnishing of any materials or other property in
respect of any Underlying Mortgaged Property or Purchased

 

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Asset, (ix) any claim by brokers, finders or similar Persons claiming to be entitled to a
commission in connection with any lease or other transaction involving any Repurchase Document,
Purchased Asset or Underlying Mortgaged Property, (x) any taxes attributable to the execution,
delivery, filing or recording of any Repurchase Document, Mortgage Loan Document or any memorandum
of any of the foregoing, (xi) any Lien or claim arising on or against any Purchased Asset or
related Underlying Mortgaged Property under any Requirements of Law or any liability asserted
against Buyer or any Indemnified Person with respect thereto, (xii) (1) a past, present or future
violation or alleged violation of any Environmental Laws in connection with any property or
Mortgaged Property by any Person or other source, whether related or unrelated to Seller or any
Underlying Obligor, (2) any presence of any Materials of Environmental Concern in, on, within,
above, under, near, affecting or emanating from any Underlying Mortgaged Property, (3) the failure
to timely perform any Remedial Work, (4) any past, present or future activity by any Person or
other source, whether related or unrelated to Seller or any Underlying Obligor in connection with
any actual, proposed or threatened use, treatment, storage, holding, existence, disposition or
other release, generation, production, manufacturing, processing, refining, control, management,
abatement, removal, handling, transfer or transportation to or from any Underlying Mortgaged
Property of any Materials of Environmental Concern at any time located in, under, on, above or
affecting any Underlying Mortgaged Property, (5) any past, present or future actual Release
(whether intentional or unintentional, direct or indirect, foreseeable or unforeseeable) to, from,
on, within, in, under, near or affecting any Underlying Mortgaged Property by any Person or other
source, whether related or unrelated to Seller or any Underlying Obligor, (6) the imposition,
recording or filing or the threatened imposition, recording or filing of any Lien on any Underlying
Mortgaged Property with regard to, or as a result of, any Materials of Environmental Concern or
pursuant to any Environmental Law, or (7) any misrepresentation or failure to perform any
obligations pursuant to any Repurchase Document or Mortgage Loan Document relating to environmental
matters in any way, (xiii) the Term Sheet or any business communications or dealings between the
Parties relating thereto, or (xiv) Seller’s conduct, activities, actions and/or inactions in
connection with, relating to or arising out of any of the foregoing clauses of this
Section 13.01, that, in each case, results from anything whatsoever other than any
Indemnified Person’s gross negligence or willful misconduct, as determined by a court of competent
jurisdiction pursuant to a final, non–appealable judgment. In any suit, proceeding or action
brought by an Indemnified Person in connection with any Purchased Asset for any sum owing
thereunder, or to enforce any provisions of any Purchased Asset, Seller shall defend, indemnify and
hold such Indemnified Person harmless from and against all expense, loss or damage suffered by
reason of any defense, setoff, counterclaim, recoupment or reduction of liability whatsoever of the
account debtor or Underlying Obligor arising out of a breach by Seller of any obligation thereunder
or arising out of any other agreement, indebtedness or liability at any time owing to or in favor
of such account debtor or Underlying Obligor from Seller. In the case of an investigation,
litigation or other proceeding to which the indemnity in this Section 13.01 applies, such
indemnity shall be effective whether or not such investigation, litigation or proceeding is brought
by Seller, an Indemnified Person or any other Person or any Indemnified Person is otherwise a party
thereto and whether or not any Transaction is entered into.

(b) If for any reason the indemnification provided in this Section 13.01 is
unavailable to the Indemnified Person or is insufficient to hold an Indemnified Person harmless,
even though such Indemnified Person is entitled to indemnification under the express terms

 

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thereof, then Seller shall contribute to the amount paid or payable by such Indemnified Person
as a result of such loss, claim, damage or liability in such proportion as is appropriate to
reflect the relative benefits received by such Indemnified Person on the one hand and Seller on the
other hand, the relative fault of such Indemnified Person, and any other relevant equitable
considerations.

(c) An Indemnified Person may at any time send Seller a notice showing the calculation of
Indemnified Amounts, and Seller shall pay such Indemnified Amounts to such Indemnified Person
within ten (10) Business Days after Seller receives such notice. The obligations of Seller under
this Section 13.01 shall apply to Eligible Assignees and Participants and survive the
termination of this Agreement.

Section 13.02 Expenses. Seller shall promptly on demand pay to or as directed by
Buyer all third-party out-of-pocket costs and expenses (including legal, accounting and advisory
fees and expenses) incurred by Buyer in connection with (a) the development, evaluation,
preparation, negotiation, execution, consummation, delivery and administration of, and any
amendment, supplement or modification to, or extension, renewal or waiver of, the Repurchase
Documents and the Transactions, (b) any Asset or Purchased Asset, including due diligence,
inspection, testing, review, recording, registration, travel custody, care, insurance or
preservation, with the total amount of all such reimbursable costs and expenses otherwise due under
this clause (b) not to exceed $50,000 per calendar year, (c) the enforcement of the Repurchase
Documents or the payment or performance by Seller of any Repurchase Obligations, and (d) any actual
or attempted sale, exchange, enforcement, collection, compromise or settlement relating to the
Purchased Assets.

ARTICLE 14

INTENT

Section 14.01 The Parties intend (a) for each Transaction to qualify for the safe harbor
treatment provided by the Bankruptcy Code and for Buyer to be entitled to all of the rights,
benefits and protections afforded to Persons under the Bankruptcy Code with respect to a
“repurchase agreement” as defined in Section 91(47) of the Bankruptcy Code and a “securities
contract” as defined in Section 741(7) of the Bankruptcy Code and that payments under this
Agreement are deemed “margin payments” or “settlement payments,” as defined in Section 91 of the
Bankruptcy Code, (b) for the grant of a security interest set forth in Article 11 to also
be a “securities contract” as defined in Section 741(7)(A)(xi) of the Bankruptcy Code and a
“repurchase agreement” as that term is defined in Section 91(47)(A)(v) of the Bankruptcy Code, and
(c) that Buyer (for so long as Buyer is a “financial institution,” “financial participant” or other
entity listed in Section 555, 559 or 362(b)(6) of the Bankruptcy Code) shall be entitled to the
“safe harbor” benefits and protections afforded under the Bankruptcy Code with respect to a
“repurchase agreement” and a “securities contract,” including (x) the rights, set forth in
Article 10 and in Section 555, 559 and 561 of the Bankruptcy Code, to liquidate the
Purchased Assets and terminate this Agreement, and (y) the right to offset or net out as set forth
in Article 10 and Section 18.17 and in Section 362(b)(6) of the Bankruptcy Code.

 

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Section 14.02 The Parties acknowledge and agree that (a) Buyer’s right to liquidate Purchased
Assets delivered to it in connection with Transactions hereunder or to exercise any other remedies
pursuant to Articles 10 and 11 and as otherwise provided in the Repurchase
Documents is a contractual right to liquidate such Transactions as described in Section 555, 559
and 561 of the Bankruptcy Code.

Section 14.03 The Parties acknowledge and agree that if a Party is an “insured depository
institution,” as such term is defined in the Federal Deposit Insurance Act, as amended (“FDIA”),
then each Transaction hereunder is a “qualified financial contract,” as that term is defined in
FDIA and any rules, orders or policy statements thereunder (except insofar as the type of assets
subject to such Transaction would render such definition inapplicable).

Section 14.04 The Parties acknowledge and agree that this Agreement constitutes a “netting
contract” as defined in and subject to Title IV of the Federal Deposit Insurance Corporation
Improvement Act of 1991 (“FDICIA”) and each payment entitlement and payment obligation
under any Transaction shall constitute a “covered contractual payment entitlement” or “covered
contractual payment obligation,” respectively, as defined in and subject to FDICIA (except insofar
as one or both of the parties is not a “financial institution” as that term is defined in FDICIA).

Section 14.05 The Parties expressly represent, warrant, acknowledge and agree that this
Agreement constitutes a “master netting agreement” as defined in Section 91(38A) of the Bankruptcy
Code.

ARTICLE 15

DISCLOSURE RELATING TO CERTAIN FEDERAL PROTECTIONS

The Parties acknowledge that they have been advised and understand that:

(a) in the case of Transactions in which one of the Parties is a broker or dealer registered
with the Securities and Exchange Commission under Section 14 of the Securities Exchange Act of
1934, the Securities Investor Protection Corporation has taken the position that the provisions of
the Securities Investor Protection Act of 1970 do not protect the other Party with respect to any
Transaction;

(b) in the case of Transactions in which one of the Parties is a government securities broker
or a government securities dealer registered with the Securities and Exchange Commission under
Section 14C of the Securities Exchange Act of 1934, the Securities Investor Protection Act of 1970
will not provide protection to the other Party with respect to any Transaction;

(c) in the case of Transactions in which one of the Parties is a financial institution, funds
held by the financial institution pursuant to a Transaction are not a deposit and therefore are not
insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance
Fund, as applicable; and

 

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(d) in the case of Transactions in which one of the Parties is an “insured depository
institution” as that term is defined in Section 1813(c)(2) of Title 12 of the United States Code,
funds held by the financial institution pursuant to a Transaction are not a deposit and therefore
are not insured by the Federal Deposit Insurance Corporation, the Savings Association Insurance
Fund or the Bank Insurance Fund, as applicable.

ARTICLE 16

NO RELIANCE

Each Party acknowledges, represents and warrants to the other Party that, in connection with
the negotiation of, entering into, and performance under, the Repurchase Documents and each
Transaction:

(a) It is not relying (for purposes of making any investment decision or otherwise) on any
advice, counsel or representations (whether written or oral) of the other Party, other than the
representations expressly set forth in the Repurchase Documents;

(b) It has consulted with its own legal, regulatory, tax, business, investment, financial and
accounting advisors to the extent that it has deemed necessary, and it has made its own investment,
hedging and trading decisions (including decisions regarding the suitability of any Transaction)
based on its own judgment and on any advice from such advisors as it has deemed necessary and not
on any view expressed by the other Party;

(c) It is a sophisticated and informed Person that has a full understanding of all the terms,
conditions and risks (economic and otherwise) of the Repurchase Documents and each Transaction and
is capable of assuming and willing to assume (financially and otherwise) those risks;

(d) It is entering into the Repurchase Documents and each Transaction for the purposes of
managing its borrowings or investments or hedging its underlying assets or liabilities and not for
purposes of speculation;

(e) It is not acting as a fiduciary or financial, investment or commodity trading advisor for
the other Party and has not given the other Party (directly or indirectly through any other Person)
any assurance, guaranty or representation whatsoever as to the merits (either legal, regulatory,
tax, business, investment, financial accounting or otherwise) of the Repurchase Documents or any
Transaction; and

(f) No partnership or joint venture exists or will exist as a result of the Transactions or
entering into and performing the Repurchase Documents.

ARTICLE 17

SERVICING

This Article 17 shall apply to all Purchased Assets.

 

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Section 17.01 Servicing Rights. The terms and provisions governing Servicing Rights
under Section 17.01 are set forth in the Fee and Pricing Letter, and are hereby
incorporated by reference.

Section 17.02 Accounts Related to Purchased Assets. All accounts directly related to
the Purchased Assets shall be maintained at institutions in accordance with and pursuant to the
terms and conditions of the existing agreements including, without limitation, this Agreement;
provided, however, that if any institution in which such accounts are currently held is not
reasonably acceptable to Buyer, then at Buyer’s request, Seller shall cause the Underlying Obligor
to enter into the contractual arrangements with Buyer and Seller that are necessary in order to
create a perfected security interest in favor of Buyer in all such accounts, including, without
limitation, an Account Control Agreement in form and substance reasonably acceptable to Buyer in
its sole discretion. Section 17.03 Servicing Reports. Seller shall deliver and cause
Sub-Servicer to deliver to Buyer and Custodian a monthly remittance report on or before the 15th
day of each month containing servicing information, including those fields reasonably requested by
Buyer from time to time, on an asset-by-asset and in the aggregate, with respect to the Purchased
Assets for the month (or any portion thereof) before the date of such report.

ARTICLE 18

MISCELLANEOUS

Section 18.01 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

Section 18.02 Submission to Jurisdiction; Service of Process. Each Party irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the
courts of the State of New York sitting in the Borough of Manhattan and of the United States
District Court of the Southern District of New York, and any appellate court from any thereof, in
any action or proceeding arising out of or relating to the Repurchase Documents, or for recognition
or enforcement of any judgment, and each Party irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such State court
or, to the fullest extent permitted by applicable law, in such Federal court. Each Party agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in
this Agreement or the other Repurchase Documents shall affect any right that Buyer may otherwise
have to bring any action or proceeding arising out of or relating to the Repurchase Documents
against Seller or its properties in the courts of any jurisdiction. Each Party irrevocably and
unconditionally waives, to the fullest extent permitted by Requirements of Law, any objection that
it may now or hereafter have to the laying of venue of any action or proceeding arising out of or
relating to the Repurchase Documents in any court referred to above, and the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court. Each Party
irrevocably consents to service of process in the manner provided for notices in Section 18.12.
Nothing in this Agreement will affect the right of any party hereto to serve process in any other
manner permitted by applicable law.

 

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Section 18.03 IMPORTANT WAIVERS.

(a) SELLER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT TO ASSERT A
COUNTERCLAIM, OTHER THAN A COMPULSORY COUNTERCLAIM, IN ANY ACTION OR PROCEEDING BROUGHT AGAINST IT
BY BUYER OR ANY INDEMNIFIED PERSON.

(b) TO THE EXTENT PERMITTED BY REQUIREMENTS OF LAW, EACH PARTY HEREBY KNOWINGLY, VOLUNTARILY
AND INTENTIONALLY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE BETWEEN
THEM, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, CONNECTED WITH OR RELATED TO
THE REPURCHASE DOCUMENTS, THE PURCHASED ASSETS, THE TRANSACTIONS, ANY DEALINGS OR COURSE OF CONDUCT
BETWEEN THEM, OR ANY STATEMENTS (WRITTEN OR ORAL) OR OTHER ACTIONS OF EITHER PARTY. NEITHER PARTY
WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR
HAS NOT BEEN WAIVED. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL
WITHOUT A JURY.

(c) TO THE EXTENT PERMITTED BY REQUIREMENTS OF LAW, SELLER HEREBY WAIVES ANY RIGHT TO CLAIM OR
RECOVER IN ANY LITIGATION WHATSOEVER INVOLVING ANY INDEMNIFIED PERSON, ANY SPECIAL, EXEMPLARY,
PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND OR NATURE WHATSOEVER OR ANY
DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES, WHETHER SUCH WAIVED DAMAGES ARE BASED ON
STATUTE, CONTRACT, TORT, COMMON LAW OR ANY OTHER LEGAL THEORY, WHETHER THE LIKELIHOOD OF SUCH
DAMAGES WAS KNOWN AND REGARDLESS OF THE FORM OF THE CLAIM OF ACTION, INCLUDING ANY CLAIM OR ACTION
ALLEGING GROSS NEGLIGENCE, RECKLESS DISREGARD, WILLFUL OR WONTON MISCONDUCT, FAILURE TO EXERCISE
REASONABLE CARE OR FAILURE TO ACT IN GOOD FAITH. NO INDEMNIFIED PERSON SHALL BE LIABLE FOR ANY
DAMAGES ARISING FROM THE USE BY UNINTENDED RECIPIENTS OF ANY INFORMATION OR OTHER MATERIALS
DISTRIBUTED BY IT THROUGH TELECOMMUNICATIONS, ELECTRONIC OR OTHER INFORMATION TRANSMISSION SYSTEMS
IN CONNECTION WITH ANY REPURCHASE DOCUMENT OR THE TRANSACTIONS.

(d) SELLER CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF BUYER OR AN INDEMNIFIED
PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT BUYER OR AN INDEMNIFIED PERSON WOULD NOT SEEK
TO ENFORCE ANY OF THE WAIVERS IN THIS SECTION 18.03 IN THE EVENT OF LITIGATION OR OTHER
CIRCUMSTANCES. THE SCOPE OF SUCH WAIVERS IS INTENDED TO BE ALL–ENCOMPASSING OF ANY AND ALL
DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THE REPURCHASE
DOCUMENTS, REGARDLESS OF THEIR LEGAL THEORY.

 

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(e) EACH PARTY ACKNOWLEDGES THAT THE WAIVERS IN THIS SECTION 18.03 ARE A MATERIAL INDUCEMENT
TO ENTER INTO A BUSINESS RELATIONSHIP, THAT SUCH PARTY HAS ALREADY RELIED ON SUCH WAIVERS IN
ENTERING INTO THE REPURCHASE DOCUMENTS, AND THAT SUCH PARTY WILL CONTINUE TO RELY ON SUCH WAIVERS
IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER REPRESENTS AND WARRANTS THAT IT HAS REVIEWED
SUCH WAIVERS WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL AND
OTHER RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

(f) THE WAIVERS IN THIS SECTION 18.03 ARE IRREVOCABLE, MEANING THAT THEY MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING, AND SHALL APPLY TO ANY AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO ANY OF THE REPURCHASE DOCUMENTS. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY
BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

(g) THE PROVISIONS OF THIS SECTION 18.03 SHALL SURVIVE TERMINATION OF THE REPURCHASE
DOCUMENTS AND THE PAYMENT IN FULL OF THE OBLIGATIONS.

Section 18.04 Integration. The Repurchase Documents supersede and integrate all
previous negotiations, contracts, agreements and understandings (whether written or oral) between
the Parties relating to a sale and repurchase of Purchased Assets and the other matters addressed
by the Repurchase Documents, and contain the entire final agreement of the Parties relating to the
subject matter thereof.

Section 18.05 Single Agreement. Seller agrees that (a) each Transaction is in
consideration of and in reliance on the fact that all Transactions constitute a single business and
contractual relationship, and that each Transaction has been entered into in consideration of the
other Transactions, (b) a default by it in the payment or performance of any its obligations under
a Transaction shall constitute a default by it with respect to all Transactions, (c) Buyer may set
off claims and apply properties and assets held by or on behalf of Buyer with respect to any
Transaction against the Repurchase Obligations owing to Buyer with respect to other Transactions,
and (d) payments, deliveries and other transfers made by or on behalf of Seller with respect to any
Transaction shall be deemed to have been made in consideration of payments, deliveries and other
transfers with respect to all Transactions, and the obligations of Seller to make any such
payments, deliveries and other transfers may be applied against each other and netted.

Section 18.06 Use of Employee Plan Assets. No assets of an employee benefit plan
subject to any provision of ERISA shall be used by either Party in a Transaction.

Section 18.07 Survival and Benefit of Seller’s Agreements. The Repurchase Documents
and all Transactions shall be binding on and shall inure to the benefit of the Parties and their
successors and permitted assigns. All of Seller’s representations, warranties, agreements and
indemnities in the Repurchase Documents shall survive the termination of the

 

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Repurchase Documents and the payment in full of the Repurchase Obligations, and shall apply to
and benefit Eligible Assignees and Participants. No other Person shall be entitled to any benefit,
right, power, remedy or claim under the Repurchase Documents.

Section 18.08 Assignments and Participations.

(a) Seller shall not sell, assign or transfer any of its rights or the Repurchase Obligations
under this Agreement without the prior written consent of Buyer in its discretion, and any attempt
by Seller to do so without such consent shall be null and void.

(b) Buyer may at any time, without the consent of or notice to Seller, sell participations to
any Person (other than a natural person or Seller or any Affiliate of Seller) (a
“Participant”) in up to forty-nine percent (49%) (in the aggregate, in one or more
transactions, including any assignments under Section 18.08(c)) of Buyer’s rights and/or
obligations under the Repurchase Documents; provided, that (i) Buyer’s obligations and
Seller’s rights and obligations under the Repurchase Documents shall remain unchanged, (ii) Buyer
shall remain solely responsible to Seller for the performance of such obligations, and (iii) Seller
shall continue to deal solely and directly with Buyer in connection with Buyer’s rights and
obligations under the Repurchase Documents. No Participant shall have any right to approve any
amendment, waiver or consent with respect to any Repurchase Document, except to the extent that the
Repurchase Price or Price Differential of any Purchased Asset would be reduced or the Repurchase
Date of any Purchased Asset would be postponed. Each Participant shall be entitled to the benefits
of Article 12 to the same extent as if it had acquired its interest by assignment pursuant
to Section 18.08(c), but shall not be entitled to receive any greater payment thereunder
than Buyer would have been entitled to receive with respect to the participation sold to such
Participant. To the extent permitted by Requirements of Law, each Participant shall be entitled to
the benefits of Sections 10.02(j) and 18.17 to the same extent as if it had
acquired its interest by assignment pursuant to Section 18.08(c).

(c) Buyer may at any time, upon notice to Seller, sell and assign to any Eligible Assignee up
to forty-nine percent (49%) (in the aggregate, in one or more transactions, and including any
participations under Section 18.08(b)) of the rights and obligations of Buyer under the
Repurchase Documents. Each such assignment shall be made pursuant to an Assignment and Acceptance
substantially in the form of Exhibit F (an “Assignment and Acceptance”). From and
after the effective date of such Assignment and Acceptance, (i) such Eligible Assignee shall be a
Party and, to the extent provided therein, have the rights and obligations of Buyer under the
Repurchase Documents with respect to the percentage and amount of the Repurchase Price allocated to
it; provided that Buyer shall remain solely responsible to Seller for the performance of Buyer’s
obligations under the Repurchase Documents, (ii) Seller shall continue to deal solely and directly
with Buyer in connection with Buyer’s rights and obligations under the Repurchase Documents, and
(iii) Buyer will give prompt written notice thereof (including identification of the Eligible
Assignee and the amount of Repurchase Price allocated to it) to each Party (but Buyer shall not
have any liability for any failure to timely provide such notice). Any sale or assignment by Buyer
of rights or obligations under the Repurchase Documents that does not comply with this
Section 18.08(c) shall be treated for purposes of the Repurchase Documents as a sale by
such Buyer of a participation in such rights and obligations in accordance with
Section 18.08(b).

 

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(d) Seller shall cooperate with Buyer in connection with any such sale and assignment of
participations or assignments and shall enter into such restatements of, and amendments,
supplements and other modifications to, the Repurchase Documents to give effect to any such sale or
assignment; provided, that none of the foregoing shall change any economic or other
material term of the Repurchase Documents in a manner adverse to Seller without the consent of
Seller in its discretion.

Section 18.09 Ownership and Hypothecation of Purchased Assets. Title to all Purchased
Assets shall pass to and vest in Buyer on the applicable Purchase Dates and, subject to the terms
of the Repurchase Documents, Buyer or its designee shall have free and unrestricted use of all
Purchased Assets and be entitled to exercise all rights, privileges and options relating to the
Purchased Assets as the owner thereof, including rights of subscription, conversion, exchange,
substitution, voting, consent and approval, and to direct any servicer or trustee. Buyer or its
designee may engage in repurchase transactions with the Purchased Assets or otherwise sell, pledge,
repledge, transfer, hypothecate, or rehypothecate the Purchased Assets, all on terms that Buyer may
determine in its discretion; provided, that no such transaction shall affect the
obligations of Buyer to transfer the Purchased Assets to Seller on the applicable Repurchase Dates
free and clear of any pledge, Lien, security interest, encumbrance, charge or other adverse claim.

Section 18.10 Confidentiality. All information regarding the terms set forth in any
of the Repurchase Documents or the Transactions shall be kept confidential and shall not be
disclosed by either Party to any Person except (a) to the Affiliates of such Party or its or their
respective directors, officers, employees, agents, advisors and other representatives who are
informed of the confidential nature of such information and instructed to keep it confidential,
(b) to the extent requested by any regulatory authority or required by Requirements of Law, (c) to
the extent required to be included in the financial statements of either Party or an Affiliate
thereof, (d) to the extent required to exercise any rights or remedies under the Repurchase
Documents, Purchased Assets or Underlying Mortgaged Properties, (e) to the extent required to
consummate and administer a Transaction, (f) to any actual or prospective Participant or Eligible
Assignee which agrees to comply with this Section 18.10; provided, that no such
disclosure made with respect to any Repurchase Document shall include a copy of such Repurchase
Document to the extent that a summary would suffice, but if it is necessary for a copy of any
Repurchase Document to be disclosed, all pricing and other economic terms set forth therein shall
be redacted before disclosure.

Section 18.11 No Implied Waivers. No failure on the part of Buyer to exercise, or
delay in exercising, any right or remedy under the Repurchase Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any right or remedy thereunder preclude any
further exercise thereof or the exercise of any other right. The rights and remedies in the
Repurchase Documents are cumulative and not exclusive of any rights and remedies provided by law.
Application of the Default Rate after an Event of Default shall not be deemed to constitute a
waiver of any Event of Default or Buyer’s rights and remedies with respect thereto, or a consent to
any extension of time for the payment or performance of any obligation with respect to which the
Default Rate is applied. Except as otherwise expressly provided in the Repurchase Documents, no
amendment, waiver or other modification of any provision of the Repurchase Documents shall be
effective without the signed agreement of Seller and Buyer.

 

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Any waiver or consent under the Repurchase Documents shall be effective only if it is in
writing and only in the specific instance and for the specific purpose for which given.

Section 18.12 Notices and Other Communications. Unless otherwise provided in this
Agreement, all notices, consents, approvals, requests and other communications required or
permitted to be given to a Party hereunder shall be in writing and sent prepaid by hand delivery,
by certified or registered mail, by expedited commercial or postal delivery service, or by
facsimile or email if also sent by one of the foregoing, to the address for such Party specified in
Annex I or such other address as such Party shall specify from time to time in a notice to
the other Party. Any of the foregoing communications shall be effective when delivered or upon the
first attempted delivery on a Business Day. A Party receiving a notice that does not comply with
the technical requirements of this Section 18.12 may elect to waive any deficiencies and
treat the notice as having been properly given.

Section 18.13 Counterparts; Electronic Transmission. Any Repurchase Document may be
executed in counterparts, each of which shall be deemed to be an original, but all of which shall
together constitute but one and the same instrument.

Section 18.14 No Personal Liability. No administrator, incorporator, Affiliate,
owner, member, partner, stockholder, officer, director, employee, agent or attorney of Buyer, any
Indemnified Person, Seller, any Intermediate Starwood Entity or Guarantor, as such, shall be
subject to any recourse or personal liability under or with respect to any obligation of Buyer,
Seller, any Intermediate Starwood Entity or Guarantor under the Repurchase Documents, whether by
the enforcement of any assessment, by any legal or equitable proceeding, by virtue of any statute
or otherwise; it being expressly agreed that the obligations of Buyer, Seller and Guarantor under
the Repurchase Documents are solely their respective corporate, limited liability company or
partnership obligations, as applicable, and that any such recourse or personal liability is hereby
expressly waived. This Section 18.14 shall survive the termination of the Repurchase
Documents.

Section 18.15 Protection of Buyer’s Interests in the Purchased Assets; Further
Assurances.

(a) Seller shall cause the Repurchase Documents and/or all financing statements and
continuation statements and any other necessary documents covering the right, title and interest of
Buyer to the Purchased Assets to be promptly recorded, registered and filed, and at all times to be
kept recorded, registered and filed, all in such manner and in such places as may be required by
law fully to preserve and protect such right, title and interest. Seller shall deliver to Buyer
file–stamped copies of, or filing receipts for, any document recorded, registered or filed as
provided above, as soon as available following such recording, registration or filing. Seller
shall execute any and all documents reasonably required to fulfill the intent of this
Section 18.15.

(b) Seller will promptly at its expense execute and deliver such instruments and documents and
take such other actions as Buyer may reasonably request from time to time in order to perfect,
protect, evidence, exercise and enforce Buyer’s rights and remedies under and with respect to the
Repurchase Documents, the Transactions and the Purchased Assets.

 

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(c) If Seller fails to perform any of its Repurchase Obligations promptly after written
request from Buyer, Buyer may (but shall not be required to) perform or cause to be performed such
Repurchase Obligation, and the costs and expenses incurred by Buyer in connection therewith shall
be payable by Seller. Without limiting the generality of the foregoing, if Seller shall fail to do
so promptly after written request from Buyer, Seller authorizes Buyer, at the option of Buyer and
the expense of Seller, at any time and from time to time, to take all actions and pay all amounts
that Buyer deems necessary or appropriate to protect, enforce, preserve, insure, service,
administer, manage, perform, maintain, safeguard, collect or realize on the Purchased Assets and
Buyer’s Liens and interests therein or thereon and to give effect to the intent of the Repurchase
Documents. No Default or Event of Default shall be cured by the payment or performance of any
Repurchase Obligation by Buyer on behalf of Seller. Buyer may make any such payment in accordance
with any bill, statement or estimate procured from the appropriate public office or holder of the
claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or
into the validity of any tax assessment, sale, forfeiture, tax Lien, title or claim except to the
extent such payment is being contested in good faith by Seller in appropriate proceedings and
against which adequate reserves are being maintained in accordance with GAAP.

(d) Without limiting the generality of the foregoing, Seller will no earlier than six (6) or
later than three (3) months before the fifth (5th) anniversary of the date of filing of each UCC
financing statement filed in connection with any Repurchase Document or any Transaction,
(i) deliver and file or cause to be filed an appropriate continuation statement with respect to
such financing statement, and (ii) deliver or cause to be delivered to Buyer an opinion of counsel,
in form and substance reasonably satisfactory to Buyer, confirming and updating the opinion
delivered pursuant to Section 6.01(a) with respect to perfection and otherwise to the
effect that the security interests hereunder continue to be enforceable and perfected security
interests, subject to no other Liens of record except as provided herein or otherwise permitted
hereunder, which opinion may contain usual and customary assumptions, limitations and exceptions.

(e) Except as provided in the Repurchase Documents, the sole duty of Buyer, Custodian or any
other designee or agent of Buyer with respect to the Purchased Assets shall be to use reasonable
care in the custody, use, operation and preservation of the Purchased Assets in its possession or
control. Buyer shall incur no liability to Seller or any other Person for any act of Governmental
Authority, act of God or other destruction in whole or in part or negligence or wrongful act of
custodians or agents selected by and supervised by Buyer with reasonable care, or Buyer’s failure
to provide adequate protection or insurance for the Purchased Assets. Buyer shall have no
obligation to take any action to preserve any rights of Seller in any Purchased Asset against prior
parties, and Seller hereby agrees to take such action. Buyer shall have no obligation to realize
upon any Purchased Asset except through proper application of any distributions with respect to the
Purchased Assets made directly to Buyer or its agent(s). So long as Buyer and Custodian shall act
in good faith in their handling of the Purchased Assets, Seller waives or is deemed to have waived
the defense of impairment of the Purchased Assets by Buyer and Custodian.

Section 18.16 Default Rate. To the extent permitted by Requirements of Law, Seller
shall pay interest at the Default Rate on the amount of all Repurchase Obligations not paid

 

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when due under the Repurchase Documents until such Repurchase Obligations are paid or
satisfied in full.

Section 18.17 Set-off. In addition to any rights now or hereafter granted under the
Repurchase Documents, Requirements of Law or otherwise, Seller, on behalf of itself and Guarantor,
hereby grants to Buyer and each Indemnified Person, to secure repayment of the Repurchase
Obligations, a right of set-off upon any and all of the following: monies, securities, collateral
or other property of Seller and Guarantor and any proceeds from the foregoing, now or hereafter
held or received by Buyer, any Affiliate of Buyer or any Indemnified Person, for the account of
Seller or Guarantor, whether for safekeeping, custody, pledge, transmission, collection or
otherwise, and also upon any and all deposits (general, specified, special, time, demand,
provisional or final) and credits, claims or Indebtedness of Seller or Guarantor at any time
existing, and any obligation owed by Buyer or any Affiliate of Buyer to Seller or Guarantor and to
set–off against any Repurchase Obligations or Indebtedness owed by Seller or Guarantor and any
Indebtedness owed by Buyer or any Affiliate of Buyer to Seller or Guarantor, in each case whether
direct or indirect, absolute or contingent, matured or unmatured, whether or not arising under the
Repurchase Documents and irrespective of the currency, place of payment or booking office of the
amount or obligation and in each case at any time held or owing by Buyer, any Affiliate of Buyer or
any Indemnified Person to or for the credit of any Seller or Guarantor, without prejudice to
Buyer’s right to recover any deficiency. Each of Buyer, each Affiliate of Buyer and each
Indemnified Person is hereby authorized upon any amount becoming due and payable by Seller or
Guarantor to Buyer or any Indemnified Person under the Repurchase Documents, the Repurchase
Obligations or otherwise or upon the occurrence of an Event of Default, without notice to Seller or
Guarantor, any such notice being expressly waived by Seller and Guarantor to the extent permitted
by any Requirements of Law, to set–off, appropriate, apply and enforce such right of set–off
against any and all items hereinabove referred to against any amounts owing to Buyer or any
Indemnified Person by Seller or Guarantor under the Repurchase Documents and the Repurchase
Obligations, irrespective of whether Buyer, any Affiliate of Buyer or any Indemnified Person shall
have made any demand under the Repurchase Documents and regardless of any other collateral securing
such amounts, and in all cases without waiver or prejudice of Buyer’s rights to recover a
deficiency. Seller and Guarantor shall be deemed directly indebted to Buyer and the other
Indemnified Persons in the full amount of all amounts owing to Buyer and the other Indemnified
Parties by Seller and Guarantor under the Repurchase Documents and the Repurchase Obligations, and
Buyer and the other Indemnified Persons shall be entitled to exercise the rights of set–off
provided for above. ANY AND ALL RIGHTS TO REQUIRE BUYER OR OTHER INDEMNIFIED PERSONS TO EXERCISE
THEIR RIGHTS OR REMEDIES WITH RESPECT TO THE PURCHASED ASSETS OR OTHER INDEMNIFIED PERSONS UNDER
THE REPURCHASE DOCUMENTS, PRIOR TO EXERCISING THE FOREGOING RIGHT OF SET–OFF, ARE HEREBY KNOWINGLY,
VOLUNTARILY AND IRREVOCABLY WAIVED BY SELLER AND GUARANTOR.

Buyer or any Indemnified Person shall promptly notify the affected Seller or Guarantor after
any such set–off and application made by Buyer or such Indemnified Person, provided that the
failure to give such notice shall not affect the validity of such set–off and application. If an
amount or obligation is unascertained, Buyer may in good faith estimate that obligation and set-off
in respect of the estimate, subject to the relevant Party accounting to the other Party when the
amount or obligation is ascertained. Nothing in this Section 18.17 shall be

 

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effective to create a charge or other security interest. This Section 18.17 shall be
without prejudice and in addition to any right of set-off, combination of accounts, Lien or other
rights to which any Party is at any time otherwise entitled.

Section 18.18 Seller’s Waiver of Setoff. Seller hereby waives any right of setoff it
may have or to which it may be or become entitled under the Repurchase Documents or otherwise
against Buyer, any Affiliate of Buyer, any Indemnified Person or their respective assets or
properties.

Section 18.19 Periodic Due Diligence Review. Buyer may perform continuing due
diligence reviews with respect to the Purchased Assets, Seller and Affiliates of Seller, including
ordering new third party reports, for purposes of, among other things, verifying compliance with
the representations, warranties, covenants, agreements, duties, obligations and specifications made
under the Repurchase Documents or otherwise. Upon reasonable prior notice to Seller, unless a
Default or Event of Default exists, in which case no notice is required, Buyer or its
representatives may during normal business hours inspect any properties and examine, inspect and
make copies of the books and records of Seller and Affiliates of Seller, the Mortgage Loan
Documents and the Servicing Files. Seller shall make available to Buyer one or more knowledgeable
financial or accounting officers and representatives of the independent certified public
accountants of Seller for the purpose of answering questions of Buyer concerning any of the
foregoing. Seller shall cause Servicer and Sub-Servicer to cooperate with Buyer by permitting
Buyer to conduct due diligence reviews of the Servicing Files. Buyer may purchase Purchased Assets
from Seller based solely on the information provided by Seller to Buyer in the Underwriting
Materials and the representations, warranties, duties, obligations and covenants contained herein,
and Buyer may at any time conduct a partial or complete due diligence review on some or all of the
Purchased Assets, including ordering new credit reports and new appraisals on the Underlying
Mortgaged Properties and otherwise re-generating the information used to originate and underwrite
such Purchased Assets. Buyer may underwrite such Purchased Assets itself or engage a mutually
acceptable third-party underwriter to do so.

Section 18.20 Time of the Essence. Time is of the essence with respect to all
obligations, duties, covenants, agreements, notices or actions or inactions of Seller under the
Repurchase Documents.

Section 18.21 Patriot Act Notice. Buyer hereby notifies Seller that Buyer is required
by the Patriot Act to obtain, verify and record information that identifies Seller.

Section 18.22 Successors and Assigns; No Third Party Beneficiaries. Subject to the
foregoing, the Repurchase Documents and any Transactions shall be binding upon and shall inure to
the benefit of the Parties and their successors and permitted assigns. Nothing in the Repurchase
Documents, express or implied, shall give to any Person other than the Parties any benefit or any
legal or equitable right, power, remedy or claim under the Repurchase Documents.

Section 18.23 Right of First Offer: Guarantor shall provide Buyer with a right of
first offer, which will expire by its terms on the first anniversary of the Closing Date, with
respect to any refinancing of the Facility or the initial secured credit or master repurchase
facility of Guarantor (a “Qualified Financing”). If Seller or Guarantor wishes to obtain a
Qualified

 

-71-

 

Financing, Guarantor shall send written notice thereof to Buyer describing the general
parameters of the Qualified Financing that it is seeking. If Buyer wishes to offer to provide such
Qualified Financing, Buyer shall deliver a term sheet setting forth all of the material terms for
such Qualified Financing it would be willing to provide within ten (10) Business Days after receipt
of Guarantor’s notice. If Buyer does not deliver a term sheet within such ten (10) Business Day
period or, if Buyer delivers such term sheet, but Buyer and Guarantor are unable to agree on such
terms, each in its sole discretion, within ten (10) Business Days after delivery of such term sheet
by Buyer, then Seller, Guarantor and/or its Affiliates may obtain such Qualified Financing from
another lender at any time thereafter and neither Buyer nor its Affiliates shall have any right to
provide such Qualified Financing, so long as the terms for such Qualified Financing provided by the
third party lender are not materially less favorable to Seller, Guarantor and/or its Affiliates
than those offered by Buyer in its term sheet.

[ONE OR MORE UNNUMBERED SIGNATURE PAGES FOLLOW]

 

-72-

 

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

	 	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 
	 	 	 	 	 	 
	 	 	STARWOOD PROPERTY MORTGAGE	 	 
	 

	 	 	 	SUB-1, L.L.C., a Delaware limited liability
company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Its:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	BUYER:	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL	 	 
	 

	 	 	 	ASSOCIATION, a
national banking association	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Its:
	 	 
	 

	 	 	 	Title:exv10w1

Exhibit 10.1

ARRANGEMENT AGREEMENT

Among

GAMEHOST INCOME FUND

and

ONCOTHYREON INC., ONCOTHYREON CANADA INC. and 0811769 B.C. ULC

February 17, 2010

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE 1 INTERPRETATION
	 	 	1	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	1	 
	1.2 Interpretation Not Affected by Headings, etc.
	 	 	11	 
	1.3 Number, etc.
	 	 	11	 
	1.4 Date for Any Action
	 	 	11	 
	1.5 Entire Agreement
	 	 	11	 
	1.6 Currency
	 	 	11	 
	1.7 Accounting Matters
	 	 	11	 
	1.8 Disclosure in Writing
	 	 	11	 
	1.9 Interpretation Not Affected by Party Drafting
	 	 	11	 
	1.10 Trust Power and Authority
	 	 	12	 
	1.11 Exhibits
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 2 THE ARRANGEMENT
	 	 	12	 
	 
	 	 	 	 
	2.1 Plan of Arrangement
	 	 	12	 
	2.2 Interim Order
	 	 	12	 
	2.3 Information Circulars and Meetings
	 	 	13	 
	2.4 Effective Date
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 3 COVENANTS
	 	 	13	 
	 
	 	 	 	 
	3.1 Covenants of Gamehost
	 	 	13	 
	3.2 Covenants of Onco US
	 	 	15	 
	3.3 Mutual Covenants Regarding the Arrangement
	 	 	19	 
	3.4 Mutual Covenants Regarding Non-Solicitation
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES
	 	 	22	 
	 
	 	 	 	 
	4.1 Representations and Warranties of Gamehost
	 	 	22	 
	4.2 Representations and Warranties of Onco US
	 	 	24	 
	4.3 Limitations on Claims for Losses
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 5 CONDITIONS PRECEDENT
	 	 	29	 
	 
	 	 	 	 
	5.1 Mutual Conditions Precedent
	 	 	29	 
	5.2 Additional Conditions to Obligations of Gamehost
	 	 	30	 
	5.3 Additional Conditions to Obligations of Onco US
	 	 	33	 
	5.4 Notice and Effect of Failure to Comply with Conditions
	 	 	34	 
	5.5 Satisfaction of Conditions
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 6 AMENDMENT
	 	 	34	 
	 
	 	 	 	 
	6.1 Amendment
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 7 TERMINATION
	 	 	35	 
	 
	 	 	 	 
	7.1 Termination
	 	 	35	 
	7.2 Notice and Cure Provisions
	 	 	36	 
	7.3 Termination Fee
	 	 	36	 
	7.4 Damages and Remedies
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 8 CONFIDENTIALITY
	 	 	38	 
	 
	 	 	 	 
	8.1 Confidentiality
	 	 	38	 

i

 

	 	 	 	 	 

	ARTICLE 9 NOTICES
	 	 	39	 
	 
	 	 	 	 
	9.1 Notices
	 	 	39	 
	 
	 	 	 	 
	ARTICLE 10 GENERAL
	 	 	40	 
	 
	 	 	 	 
	10.1 Binding Effect
	 	 	40	 
	10.2 Assignment
	 	 	40	 
	10.3 Disclosure
	 	 	40	 
	10.4 Costs
	 	 	41	 
	10.5 Severability
	 	 	41	 
	10.6 Further Assurances
	 	 	41	 
	10.7 Time of Essence
	 	 	41	 
	10.8 Governing Law
	 	 	41	 
	10.9 Waiver
	 	 	41	 
	10.10 Obligations
	 	 	42	 
	10.11 Counterparts
	 	 	43	 
	 
	 	 	 	 
	EXHIBIT A — PLAN OF ARRANGEMENT
	 	 	A-1	 
	EXHIBIT B — FORM OF INDEMNITY AGREEMENT
	 	 	B-1	 
	EXHIBIT C — REQUIRED APPROVALS
	 	 	C-1	 
	EXHIBIT D — FORM OF GAMEHOST RESOLUTION
	 	 	D-1	 
	EXHIBIT E — FORM OF DIVESTITURE AGREEMENT
	 	 	E-1	 
	EXHIBIT F – PRE-ARRANGEMENT TRANSACTIONS
	 	 	F-1	 

ii

 

ARRANGEMENT AGREEMENT

THIS ARRANGEMENT AGREEMENT is dated as of the 17th day of February, 2010,

AMONG:

GAMEHOST INCOME FUND, a trust created under the Laws of the Province of Alberta (hereinafter
referred to as “Gamehost”)

AND:

ONCOTHYREON INC., a corporation subsisting under the Laws of the State of Delaware
(hereinafter referred to as “Onco US”);

ONCOTHYREON CANADA INC., a corporation subsisting under the Laws of Canada (hereinafter
referred to as “Onco Alberta”); and

0811769 B.C. ULC, an unlimited liability corporation subsisting under the Laws of the
Province of British Columbia (hereinafter referred to as “Onco BC”)

WHEREAS:

	 	1.	 	Onco Alberta and Onco BC are indirect wholly-owned subsidiaries of Onco US and Onco
Alberta is a direct wholly-owned subsidiary of Onco BC;
	 
	 	2.	 	Onco BC and Onco Alberta each desire to reorganize their capital structure, including
the continuation of their existing businesses by a new corporation;
	 
	 	3.	 	Gamehost desires to convert its capital structure from an income trust to a
corporation;
	 
	 	4.	 	The Parties intend to carry out the transactions contemplated herein by way of an
arrangement under the provisions of the ABCA; and
	 
	 	5.	 	The Parties have entered into this Agreement to provide for the matters referred to in
the foregoing recitals and for other matters relating to such arrangement.

NOW THEREFORE, in consideration of the covenants and agreements herein contained and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Parties
hereto do hereby covenant and agree as follows:

ARTICLE 1

INTERPRETATION

1.1 Definitions

In this Agreement, unless there is something in the context or subject matter inconsistent
therewith, the following defined terms have the meanings hereinafter set forth:

“ABCA” means the Business Corporations Act (Alberta), as amended, including the regulations
promulgated thereunder;

 

 

“ACTA” means the Alberta Corporate Tax Act, as amended, including the regulations promulgated
thereunder;

“Acquisition Proposal” means any inquiry or the making of any proposal to Onco Alberta, Onco BC or
Gamehost or any of their respective security holders, as the case may be, from any Person which
constitutes, or may reasonably be expected to lead to (in either case whether in one transaction or
a series of transactions):

	 	(i)	 	an acquisition from Onco Alberta, Onco BC or Gamehost or any of their
respective security holders, as the case may be, or issuance of, any equity or debt
securities of such Party or its Subsidiaries;
	 
	 	(ii)	 	any acquisition of any of the assets of Onco Alberta, Onco BC or
Gamehost;
	 
	 	(iii)	 	an acquisition, merger, amalgamation, reorganization, arrangement or
similar transaction involving Onco Alberta, Onco BC or Gamehost or any of their
respective Subsidiaries; or
	 
	 	(iv)	 	any take-over bid, issuer bid, exchange offer, recapitalization,
liquidation, dissolution or reorganization in respect of Onco Alberta, Onco BC or
Gamehost or any of their respective security holders;

except for:

	 	(A)	 	any such transaction which does not preclude, delay or have an
adverse effect on, the Arrangement or the benefits thereof to the Other Party
hereto including, without limitation, the Pre-Arrangement Transactions and the
Gamehost Proposed Transactions; and
	 
	 	(B)	 	a Gamehost Secondary Arrangement;

“Agreement”, “herein”, “hereof”, “hereto”, “hereunder” and similar expressions mean and refer to
this arrangement agreement (including the schedules hereto) as supplemented, modified or amended,
and not to any particular article, section, schedule or other portion hereof;

“Alternative Proposal” has the meaning ascribed thereto in Section 3.4(b)(v);

“Applicable Laws”, in the context that refers to one or more Persons, means the Laws that apply to
such Person or Persons or its or their business activities, undertaking, property, assets or
securities and emanate from a Person having jurisdiction over the Person or Persons or its or their
business, activities, undertaking, property, assets or securities;

“Arrangement” means the arrangement pursuant to Section 193 of the ABCA set forth in the Plan of
Arrangement;

“Articles of Arrangement” means one or more articles of arrangement in respect of the Arrangement
required under Subsection 193(10) of the ABCA to be sent to the Registrar after the Final Order has
been granted so as to give effect to the Arrangement, which shall be in form and content
satisfactory to each of Gamehost and Onco US, acting reasonably;

“Assessment” has the meaning ascribed thereto in Section 3.2(p);

2

 

“Business Day” means a day other than a Saturday, Sunday or other than a day when banks in the
Cities of Calgary, Alberta and Edmonton, Alberta are not generally open for business;

“Canadian Securities Laws” means, collectively, and as the context may require, the securities
legislation of each of the provinces and territories of Canada, and the rules, regulations and
policies published and/or promulgated thereunder, as such may be amended from time to time prior to
the Effective Date;

“Certificate” means the certificate or certificates or confirmation of filing which may be issued
by the Registrar pursuant to Subsection 193(11) of the ABCA in respect of the Arrangement;

“Claim” means any claim, action, demand, cause of action, suit, complaint, proceeding, arbitration,
judgment, settlement, award, assessment, re-assessment, order, investigation, enquiry or hearing
made or threatened;

“Closing Time” means 12:00 noon (Calgary time) on the Effective Date, unless otherwise agreed to by
Gamehost and Onco US;

“Confidential Information” has the meaning ascribed thereto in Section 8.1;

“Court” means the Court of Queen’s Bench of Alberta;

“Deadline” means April 30, 2010;

“Divestiture Agreement” means the divestiture agreement to be entered into among Onco BC, Onco
Alberta and Onco Alberta Subco, and to be intervened by Gamehost (or an affiliate thereof) and New
Onco, which provides for the assignment of the assets and assumption of the liabilities from Onco
BC and Onco Alberta to Onco Alberta Subco (other than the shares of Onco Alberta owned by Onco BC
or as otherwise specified therein) as part of the Plan of Arrangement, in the form set out in
Exhibit E hereto;

“Effective Date” means the date the Arrangement becomes effective under the ABCA;

“Effective Time” means 12:01 a.m. (Calgary time) on the Effective Date;

“Environmental Laws” means all federal, municipal or local Laws of any Governmental Entity or of
any court, tribunal or other similar body, relating to environmental or health matters, including
legislation governing the use and storage of Hazardous Substances;

“Final Order” means the order of the Court approving the Plan of Arrangement pursuant to Subsection
193(9) of the ABCA, as such order may be affirmed, amended or modified by any court of competent
jurisdiction;

“GAAP” has the meaning ascribed thereto in Section 1.7;

“Gamehost” means Gamehost Income Fund, an open-ended unincorporated investment trust established
under the laws of the Province of Alberta pursuant to the Gamehost Trust Agreement;

“Gamehost Administrator” means Gamehost Management Inc., a corporation subsisting under the laws of
the Province of Alberta which acts as administrator of Gamehost;

“Gamehost Board of Trustees” means the board of trustees of Gamehost as it may be comprised from
time to time;

3

 

“Gamehost Disclosure Letter” means the letter dated as of the date hereof and delivered by Gamehost
to Onco US on or prior to the date hereof;

“Gamehost Financial Statements” means, collectively, the audited comparative consolidated financial
statements of Gamehost as at and for the years ended December 31, 2008 and 2007, together with the
notes thereto and the auditors’ report thereon and the unaudited comparative consolidated financial
statements of Gamehost as at and for the nine month periods ended September 31, 2009 and 2008,
together with the notes thereto;

“Gamehost Information Circular” means the information circular of Gamehost to be sent by Gamehost
to the Gamehost Security Holders in connection with the Gamehost Meeting;

“Gamehost LP” means Gamehost Limited Partnership, a limited partnership established pursuant to the
Laws of the Province of Alberta;

“Gamehost Meeting” means the special meeting of the Gamehost Security Holders to be held to
consider the Gamehost Resolution and related matters, and any adjournment(s) thereof;

“Gamehost Proposed Transactions” means the transactions described as such in the Gamehost
Disclosure Letter;

“Gamehost Public Record” means all information filed by Gamehost after December 31, 2008 with any
securities commission or similar regulatory authority in compliance, or intended compliance, with
Canadian Securities Laws;

“Gamehost Resolution” means the special resolution of the Gamehost Security Holders to be
considered at the Gamehost Meeting approving the Plan of Arrangement and the Gamehost Secondary
Arrangement, and further providing that the Gamehost Secondary Arrangement will only be proceeded
with if this Arrangement Agreement is terminated in accordance with its terms;

“Gamehost Required Approvals” means, the third party and Governmental Entity approvals and consents
listed in Schedule C hereof which are required by Gamehost to be received on or prior to the
Effective Time in order to complete the Arrangement;

“Gamehost Trust Indenture” means the trust agreement dated April 9, 2003 between the original
trustees of Gamehost and the initial unitholder of Gamehost, as amended from time to time or as may
be amended from time to time;

“Gamehost Secondary Arrangement” means any internal reorganization of Gamehost and its Subsidiaries
that Gamehost may consider and pursue to convert its capital structure from an income trust to a
corporation, as an alternative to the Arrangement contemplated hereby should the Arrangement
contemplated hereby not be capable of being completed due to a termination of this Agreement on its
terms;

“Gamehost Security Holders” means the holders of:

	 	(i)	 	issued and outstanding Gamehost Units; and
	 
	 	(ii)	 	issued and outstanding Gamehost Subsidiary LP Exchangeable Units;

4

 

“Gamehost Subsidiary LP Exchangeable Units” means the class B limited partnership units of Gamehost
LP;

“Gamehost Units” means the trust units of Gamehost;

“Governmental Entity” means any:

	 	(i)	 	multinational, federal, provincial, state, regional, municipal, local
or other government or any governmental or public department, court, tribunal,
arbitral body, commission, board, bureau or agency,
	 
	 	(ii)	 	any subdivision, agent, commission, board or authority of any of the
foregoing, or
	 
	 	(iii)	 	any quasi-governmental or private body exercising any regulatory,
expropriation or taxing authority under or for the account of any of the foregoing;

“Hazardous Substances” means any pollutant, contaminant, waste of any nature, hazardous substance,
hazardous material, toxic substance, dangerous substance or dangerous good as defined, judicially
interpreted or identified in any Environmental Laws;

“Indemnity Agreement” means the indemnity agreement, in the form set out in Exhibit E hereto, to be
entered into by the parties contemplated thereby on the Effective Date;

“Intellectual Property” or “Intellectual Property Rights” means:

	 	(i)	 	any and all proprietary rights provided under:

	 	(A)	 	patent law;
	 
	 	(B)	 	copyright law (including moral rights);
	 
	 	(C)	 	trade-mark law;
	 
	 	(D)	 	design patent or industrial design law;
	 
	 	(E)	 	semi-conductor chip or mask work or integrated circuit
topography law; or
	 
	 	(F)	 	any other statutory provision or common law principle
applicable to this Agreement, including trade secret law, which may provide a
right in either hardware, software, information (including Confidential
Information), trademarks, ideas, formulae, algorithms, concepts, inventions,
processes or know-how generally, or the expression or use of the same;

	 	(ii)	 	any and all applications, registrations, licenses, sub-licenses,
franchises, agreements or any other evidence of a right in any of the foregoing;
and
	 
	 	(iii)	 	all licenses and waivers and benefits of waivers of the intellectual
property rights set out in (i) and (ii) above, all future income and proceeds from
the intellectual property rights set out in (i) and (ii) above, and all rights to
damages and profits by reason of the infringement or violation of any of the
intellectual property rights set out in (i) and (ii) above;

5

 

“Initial Court Order” means the order of the Court approving certain amendments to the plan of
arrangement involving Onco Alberta, Onco BC and Onco US that was effective December 10, 2007, in
the form agreed to by Gamehost and Onco US prior to the entering into of this Agreement, or as
otherwise directed by the Court and acceptable to Gamehost in its sole discretion, acting
reasonably;

“Interim Order” means an interim order of the Court concerning the Plan of Arrangement under
subsection 193(4) of the ABCA, containing declarations and directions with respect to the
Arrangement and the holding of the Gamehost Meeting, as such order may be affirmed, amended or
modified by any court of competent jurisdiction;

“ITA” means the Income Tax Act (Canada), including the regulations thereunder, as amended;

“Laws” means all laws, statutes, regulations, by-laws, statutory rules, orders, ordinances,
protocols, codes, guidelines, notices, directions (including all Canadian Securities Laws, U.S.
Securities Laws and Environmental Laws), and terms and conditions of any grant of approval,
permission, authority or license of any court, Governmental Entity, statutory body or
self-regulatory authority (including the TSX);

“Mailing Deadline” has the meaning ascribed thereto in Section 3.3(g);

“Material Acquisition Proposal” means any inquiry or the making of any proposal to such Party or
its security holders, as the case may be, from any Person which constitutes, or may reasonably be
expected to lead to (in either case in one transaction or a series of transactions):

	 	(i)	 	an acquisition from such Party or its security holders, as the case may
be, or the issuance of, equity securities representing more than 20% of the
outstanding securities of such Party or debt securities with a principal amount
more than 20% of the book value of the assets of such Party;
	 
	 	(ii)	 	any acquisition of assets representing more than 20% of the book value
of the assets of such Party; or
	 
	 	(iii)	 	an acquisition, merger, amalgamation, reorganization, arrangement or
other similar transaction involving such Party which results in the security
holders of such Party holding less than 80% of the equity securities of such Party
or the resulting entity on completion of the transaction;

except for any such transaction which does not preclude, delay or have an adverse effect on, the
Arrangement or the benefits thereof to the Other Party hereto including, without limitation, the
Pre-Arrangement Transactions and the Gamehost Proposed Transactions. Calculations for this
definition shall be based on the values and numbers in the most recent financial information of the
applicable Party which is available;

“Material Adverse Change” or “Material Adverse Effect” means, with respect to Onco Alberta, Onco BC
or Gamehost and their respective Subsidiaries taken as a whole, any fact or state of facts,
circumstance, change, effect, occurrence or event which, either individually or in the aggregate,
is material and adverse to the business, operations, results of operations, properties, assets,
liabilities, obligations (whether absolute, accrued, conditional or otherwise) or condition
(financial or otherwise) of such Party and its Subsidiaries (taken as a whole), except to the
extent of any fact or state of facts, circumstance, change, effect, occurrence or event resulting
from or arising in connection with:

6

 

	 	(i)	 	any change in general economic, business, regulatory, market or
political conditions, in each case whether regional, domestic or international,
including changes or disruptions in international capital, financial, currency
exchange or commodities markets;
	 
	 	(ii)	 	natural disasters, acts of God, any outbreak or escalation of
hostilities, declared or undeclared acts of war or terrorism or civil unrest;
	 
	 	(iii)	 	subject to Section 5.2(e), any change in Applicable Laws of any
Governmental Entity or interpretations thereof by any Governmental Entity or in
GAAP (as defined below);
	 
	 	(iv)	 	any change generally affecting the industries in which a Party conducts
its business;
	 
	 	(v)	 	the execution, announcement or performance of this Agreement or
consummation of the transactions contemplated hereby, including any loss or
threatened loss of, or adverse change or threatened adverse change in, the
relationship of a Party with any of its customers, employees, shareholders,
financing sources, vendors, distributors, partners or suppliers as a direct result
thereof or in connection therewith;
	 
	 	(vi)	 	in respect of Gamehost, any change in the market price or trading
volume of the securities of Gamehost;
	 
	 	(vii)	 	the failure of a Party in and of itself to meet any internal or public
projections, forecasts or estimates of revenues or earnings (but it being
understood that the causes underlying such failure may be taken into account in
determining whether a Material Adverse Effect has occurred);
	 
	 	(viii)	 	in respect of Onco Alberta or Onco BC, any actions taken (or omitted to be taken)
by them or their Subsidiaries or by Onco US at the written request of Gamehost;
	 
	 	(ix)	 	in respect of Gamehost, any actions taken (or omitted to be taken) by
Gamehost or its Subsidiaries at the written request of Onco US or its Subsidiaries;
	 
	 	(x)	 	in respect of Onco Alberta or Onco BC, any actions taken by them or
their Subsidiaries or Onco US pursuant to the Pre-Arrangement Transactions provided
they are on the terms and in the order set out in the Pre-Arrangement Transactions
and are not otherwise inconsistent with their obligations to Gamehost under this
Agreement;
	 
	 	(xi)	 	in respect of Gamehost, any actions taken by it or its Subsidiaries
pursuant to the Gamehost Proposed Transactions provided they are not otherwise
inconsistent with Gamehost’s obligations to Onco US under this Agreement;
	 
	 	(xii)	 	any action taken by any Party that is required pursuant to this
Agreement; or
	 
	 	(xiii)	 	any of the matters specifically disclosed in the Onco Disclosure Letter;

	 	 	provided, however, any fact or state of facts, circumstance, change, effect, occurrence or
event:

	 	(A)	 	which, either individually or in the aggregate, is material and
adverse to the business, operations, results of operations, properties, assets,
liabilities, obligations (whether absolute, accrued, conditional or otherwise)
or condition (financial or otherwise) of such Party and its Subsidiaries (taken
as a whole) that

7

 

	 	 	 	has an adverse effect on the ability of Onco Alberta, or would reasonably be
expected to preclude or adversely affect the ability of Onco Alberta, to
transfer its assets and liabilities to Onco Alberta Subco so that, at the
Effective Time, Onco Alberta has no assets or liabilities that have not been
transferred to or assumed by Onco Alberta Subco (other than assets or
liabilities that will continue to be held by Onco Alberta after the
Effective Time under the terms of the Divestiture Agreement); or
	 
	 	(B)	 	with respect to subclause (x) above, that results in any
material impairment of, or materially adversely affects:

	 	(I)	 	the benefit to Gamehost of, or the
completion of, the Arrangement, or
	 
	 	(II)	 	the ability of Onco Alberta to utilize
the Tax Pools referred to in the Onco Disclosure Letter after the
Effective Date;

	 	 	 	shall be a Material Adverse Change or Material Adverse Effect;

“New Onco” means 1517680 Alberta ULC, an unlimited liability corporation existing under the laws of
the Province of Alberta and a direct wholly-owned subsidiary of 1517678 Alberta ULC.;

“Onco Alberta” means Oncothyreon Canada Inc., a corporation subsisting under the laws of Canada,
and where the context requires includes any successor corporation;

“Onco Alberta Board of Directors” means the board of directors of Onco Alberta as it may be
comprised from time to time;

“Onco Alberta Public Record” means all information filed by Onco Alberta prior to the date of this
Agreement with any securities commission or similar regulatory authority in compliance, or intended
compliance, with Canadian Securities Laws or U.S. Securities Laws;

“Onco Alberta Shares” means the Class A shares of Onco Alberta;

“Onco Alberta Subco” means 1518025 Alberta ULC, an unlimited liability corporation existing under
the laws of the Province of Alberta as a Subsidiary of Onco Alberta which will acquire all of the
assets and assume all of the liabilities of Onco BC and Onco Alberta pursuant to the Divestiture
Agreement;

“Onco BC” means 0811769 B.C. ULC, an unlimited liability corporation subsisting under the laws of
the Province of British Columbia, and where the context requires includes any successor
corporation;

“Onco BC Board of Directors” means the board of directors of Onco BC as it may be comprised from
time to time;

“Onco BC Class A Shares” means the Class A voting common shares of Onco BC;

“Onco BC Class B Shares” means the Class B preferred shares of Onco BC;

“Onco Books and Records” means all current and historical books, records and data of Onco Alberta
and Onco BC, and all of their respective subsidiaries, or within the control of Onco US, prior to
completion of the Arrangement, including without limitation contracts, agreements, accounting
records, books, technical reports, financial statements, accounts, records, minute books, Tax
Returns, tax

8

 

assessments, contemporaneous transfer pricing documentation, filings, documents, files and all
other information (and including all such books and records stored in electronic format or any
other media form) which books, records and data will be transferred to and become the property of
New Onco on completion of the Arrangement;

“Onco Disclosure Letter” means the letter dated as of the date hereof and delivered by Onco US to
Gamehost on or prior to the date hereof;

“Onco Financial Information” means, collectively, the financial information provided by Onco US and
its Subsidiaries to Gamehost and its advisors with respect to Subsidiaries of Onco US, including
but not limited to Onco BC and Onco Alberta, in order to allow Gamehost and its advisors to conduct
due diligence with respect to the financial position of each of Onco BC and Onco Alberta as well as
with respect to the Tax Pools;

“Onco Information” means the information about Onco US, Onco Alberta and Onco BC and their
respective businesses, operations and affairs (including their Subsidiaries) which must be included
in the Gamehost Information Circular under Applicable Laws;

“Onco Required Approvals” means, the third party and Governmental Entity approvals and consents
listed in Schedule C hereof which are required by Onco US, Onco Alberta and Onco BC to be received
on or prior to the Effective Time in order to complete the Arrangement;

“Onco US” means Oncothyreon Inc., a corporation subsisting under the laws of the State of Delaware;

“Onco US Board of Directors” means the board of directors of Onco US as it may be comprised from
time to time;

“Other Party” means:

	 	(i)	 	with respect to Gamehost, each of Onco US, Onco Alberta and Onco BC
provided that any notice to be provided to any one of them will be deemed to have
been provided if it has been provided to Onco US; and
	 
	 	(ii)	 	with respect to each Onco US, Onco Alberta and Onco BC, Gamehost;

“Parties” means, collectively, the parties to this Agreement, and “Party” means any one of them;

“Person” means any individual, firm, partnership, joint venture, venture capital fund, association,
trust, trustee, executor, administrator, legal personal representative, estate group, body
corporate, corporation, unincorporated association or organization, Governmental Entity, syndicate
or other entity, whether or not having legal status;

“Personal Information” means information about an identifiable individual as defined by Applicable
Law that is collected, used, disclosed, stored or transferred by one Party to the Other Party in
accordance with this Agreement and/or as a condition of the Arrangement;

“Plan of Arrangement” means the plan of arrangement in the form set out in Exhibit A hereto, as
amended or supplemented from time to time in accordance with Article 4 thereof and Article 6
hereof;

“Pre-Arrangement Transactions” means the transactions described as such in Exhibit F hereto;

9

 

“Receiving Party” has the meaning ascribed thereto in Section 3.4(c);

“Registrar” means the “registrar of corporations” or a “deputy registrar of corporations” duly
appointed under Section 263 of the ABCA;

“Responding Party” has the meaning ascribed thereto in Section 3.4(c);

“Subsidiary” has the meaning ascribed thereto in the Securities Act (Alberta) (and, for greater
certainty, includes all partnerships (general or limited) and trusts directly or indirectly owned
by Gamehost, Onco US, Onco Alberta or Onco BC, as the case may be);

“Tax” or “Taxes” means all taxes, however denominated, including any interest, penalties or other
additions that may become payable in respect thereof, imposed by any federal, territorial, state,
local or foreign government or any agency or political subdivision of any such government, which
taxes shall include, without limiting the generality of the foregoing, all income or profits taxes
(including, but not limited to, federal income taxes and provincial income taxes), payroll and
employee withholding taxes, unemployment insurance, social insurance taxes, sales and use taxes, ad
valorem taxes, excise taxes, franchise taxes, gross receipts taxes, business license taxes,
occupation taxes, real and personal property taxes, stamp taxes, environmental taxes, transfer
taxes, capital taxes, workers compensation and other governmental charges, and other obligations of
the same or of a similar nature to any of the foregoing, which Gamehost or Onco Alberta (or any of
their respective Subsidiaries), as the case may be, is required to pay, withhold, remit or collect;

“Tax Pools” means, at the relevant time as used in this Agreement, Onco Alberta’s non-capital
losses, scientific research and experimental development expenditures and investment tax credits,
as those terms are used for the purposes of the ITA and the ACTA, as applicable, in the amounts as
set out as of the date of this Agreement in the Onco Disclosure Letter and, for greater certainty,
does not include Onco Alberta’s capital losses, as that term is used for the purposes of the ITA;

“Tax Returns” means all reports, estimates, elections, designations, forms, declarations of
estimated tax, information statements and returns relating to, or required to be filed with any tax
authority, in connection with, any Taxes, including any amendments or supplements of the foregoing;

“Termination Fee” means the amount equal to

	 	(i)	 	$250,000; plus
	 
	 	(ii)	 	the amount to be reimbursed to the applicable Party for its documented
third party transaction costs (including legal (on a solicitor and his own client
basis)and accounting fees), with such third party transaction costs not to exceed
$500,000;

“TSX” means the Toronto Stock Exchange;

“U.S. Exchange Act” means the United States Securities Exchange Act of 1934, as amended; and

“U.S. Securities Laws” means the federal and state securities legislation of the United States
including the U.S. Exchange Act and the United States Securities Act of 1933, as amended, and all
rules, regulations and orders promulgated thereunder, as amended from time to time.

10

 

1.2 Interpretation Not Affected by Headings, etc.

The division of this Agreement into articles, sections and subsections is for convenience of
reference only and does not affect the construction or interpretation of this Agreement. The terms
“this Agreement”, “hereof”, “herein” and “hereunder” and similar expressions refer to this
Agreement (including the schedules attached hereto) and not to any particular article, section or
other portion hereof and include any agreement or instrument supplementary or ancillary hereto.

1.3 Number, etc.

Words importing the singular number include the plural and vice versa, words importing the use of
any gender include all genders, and words importing persons include firms and corporations and vice
versa.

1.4 Date for Any Action

If any date on which any action is required to be taken hereunder by any of the Parties is not a
Business Day and a business day in the place where an action is required to be taken, such action
is required to be taken on the next succeeding day which is a Business Day and a business day, as
applicable, in such place.

1.5 Entire Agreement

This Agreement together with the agreements and documents herein and therein referred to,
constitute the entire agreement among the Parties pertaining to the subject matter hereof and
supersede all prior agreements, understandings, negotiations and discussions, whether oral or
written, among the Parties with respect to the subject matter hereof.

1.6 Currency

All sums of money that are referred to in this Agreement are expressed in lawful money of Canada
unless otherwise noted.

1.7 Accounting Matters

Unless otherwise stated, all accounting terms used in this Agreement shall have the meanings
attributable thereto under Canadian generally accepted accounting principles (“GAAP”) and all
determinations of an accounting nature are required to be made shall be made in a manner consistent
with GAAP.

1.8 Disclosure in Writing

Reference to disclosure in writing herein shall, in the case of disclosure to Gamehost, include
written disclosure made to Gamehost’s representatives, or in the case of disclosure to Onco US,
include written disclosure made to Onco US’s representatives.

1.9 Interpretation Not Affected by Party Drafting

The Parties hereto acknowledge that their respective legal counsel have reviewed and participated
in settling the terms of this Agreement, and the Parties agree that any rule of construction to the
effect that any ambiguity is to be resolved against the drafting party will not be applicable in
the interpretation of this Agreement.

11

 

1.10 Trust Power and Authority

In this Agreement references to the power and authority of Gamehost are deemed to be references to
that of the Gamehost Board of Trustees, or its duly authorized delegates or agents, pursuant to the
power and capacity of trustees generally under the Laws of the Province of Alberta and pursuant to
the powers of the trustees specified in Gamehost Trust Indenture.

1.11 Exhibits

The following exhibits attached hereto are incorporated into and from an integral part of this
Agreement:

A – Form of Plan of Arrangement

B – Form of Indemnity Agreement

C – Required Approvals

D – Form of Gamehost Resolution

E – Form of Divestiture Agreement

F – Pre-Arrangement Transactions

ARTICLE 2

THE ARRANGEMENT

	2.1	 	Plan of Arrangement

	(a)	 	Gamehost and Onco US will jointly file, proceed with and diligently prosecute an application
for an Interim Order providing for, among other things, the calling and holding of the
Gamehost Meeting for the purpose of considering and, if deemed advisable, approving the
Gamehost Resolution.
	 
	(b)	 	Provided all necessary approvals for the Gamehost Resolution are obtained from the Gamehost
Security Holders, and the other conditions herein are satisfied or waived as the case may be,
each of Gamehost and Onco US will submit the Arrangement to the Court and jointly apply for
the Final Order.
	 
	(c)	 	Upon issuance of the Final Order and subject to the conditions precedent in Article 5, each
of Gamehost and Onco US will execute and deliver such closing documents and instruments and
forthwith proceed at the Closing Time to file the Articles of Arrangement, the Final Order and
such other documents as may be required to give effect to the Arrangement with the Registrar
pursuant to Subsection 193(10) of the ABCA.

2.2 Interim Order

The Interim Order shall provide that:

	 	(i)	 	the securities of Gamehost and its Subsidiaries for which holders shall
be entitled to vote on the Gamehost Resolution at the Gamehost Meeting shall be the
Gamehost Units and the Gamehost Subsidiary LP Exchangeable Units;
	 
	 	(ii)	 	each Gamehost Security Holder shall be entitled to:

	 	(A)	 	one vote for each Gamehost Unit held by such holder; and

12

 

	 	(B)	 	one vote for each Gamehost Subsidiary LP Exchangeable Unit held
by such holder;

	 	(iii)	 	the requisite majority for the approval of the Gamehost Resolution
shall be two-thirds of the votes cast by Gamehost Security Holders present in
person or represented by proxy at the Gamehost Meeting; and
	 
	 	(iv)	 	if the Court provides Gamehost Security Holders with a right of
dissent, such rights shall be provided on terms similar to those found in
Section 191 of the ABCA provided that such rights must be exercised not less than
48 hours prior to the Gamehost Meeting.

2.3 Information Circulars and Meetings

As promptly as practical following the execution of this Agreement and in compliance with the
Interim Order and Applicable Laws, Gamehost shall:

	 	(i)	 	prepare the Gamehost Information Circular and cause such circular to be
mailed to the Gamehost Security Holders and filed with applicable regulatory
authorities and other governmental authorities in all jurisdictions where the same
are required to be mailed and filed; and
	 
	 	(ii)	 	convene the Gamehost Meeting.

2.4 Effective Date

The Arrangement shall become effective at the Effective Time on the Effective Date. The Parties
shall use their reasonable best efforts to cause the Effective Date to occur on or about April 23,
2010 or as soon thereafter prior to or by the Deadline as is reasonably practical.

ARTICLE 3

COVENANTS

3.1 Covenants of Gamehost

Gamehost hereby covenants that, from the date hereof until the earlier of the Effective Date and
the date of the termination of this Agreement, except with the prior written consent of Onco US
(such consent not to be unreasonably withheld or delayed), and except with respect to the Gamehost
Proposed Transactions or as otherwise expressly permitted or specifically contemplated by this
Agreement (including the Plan of Arrangement) or required by Applicable Laws:

	(a)	 	Gamehost will not take any action that could reasonably be expected to preclude, delay or
have an adverse effect on the Arrangement or would render, or may reasonably be expected to
render, any representation or warranty made by it in this Agreement untrue in any material
respect;
	 
	(b)	 	Gamehost will promptly disclose in writing to Onco US any material change (actual,
anticipated, contemplated or, to the knowledge of Gamehost threatened, financial or otherwise)
in its business, operations, affairs, assets, capitalization, financial condition, prospects,
licenses, permits, rights, privileges or liabilities, whether contractual or otherwise which
may reasonably be expected to preclude, delay or have an adverse effect on the Arrangement, or
of any change in any representation or warranty provided by Gamehost in this Agreement which
change is or may be of such a nature to render any representation or warranty misleading or
untrue in any material

13

 

	 	 	respect and Gamehost shall in good faith discuss with Onco Alberta any change in
circumstances (actual, anticipated, contemplated, or to the knowledge of Gamehost,
threatened) which is of such a nature that there may be a reasonable question as to whether
disclosure in writing need to be given to Onco US pursuant to this provision;
	 
	(c)	 	Gamehost will ensure that it has available funds under its lines of credit or other bank
facilities to permit the payment of the maximum amount which may be required by Section 7.3
having regard to its other liabilities and obligations, and shall take all such actions as may
be necessary to ensure that it maintains such availability to ensure that it is able to pay
such amount if required;
	 
	(d)	 	Gamehost will not:

	 	(i)	 	amend the Gamehost Indenture;
	 
	 	(ii)	 	split, combine or reclassify any of the Gamehost Units;
	 
	 	(iii)	 	adopt a plan of liquidation or resolutions providing for the
liquidation, dissolution, merger, consolidation or reorganization of Gamehost;
	 
	 	(iv)	 	reorganize, amalgamate, merge or otherwise combine Gamehost with any
other Person;
	 
	 	(v)	 	enter into an arrangement or other transaction with any other Person
under which the Gamehost Units are exchanged for securities of any other Person; or
	 
	 	(vi)	 	enter into or modify any contract, agreement, commitment or arrangement
to do any of the foregoing;

	 	 	with Gamehost acknowledging that Onco US will only provide its written consent if
appropriate adjustments are made, if necessary, to the number of Gamehost Units to be
received by New Onco under the Arrangement;
	 
	(e)	 	Gamehost will not declare, set aside or pay any distribution or payment (whether in cash,
 shares or property) in respect of the outstanding Gamehost Units other than distributions that
are declared and paid in the ordinary course of business consistent with past practice;
	 
	(f)	 	Gamehost will use its reasonable commercial efforts to satisfy or cause satisfaction of the
conditions set forth in Sections 5.1, 5.2 and 5.3 as soon as reasonably possible following
execution of this Agreement to the extent that the satisfaction of the same is within the
control of Gamehost;
	 
	(g)	 	Gamehost will provide notice to Onco US of the Gamehost Meeting and allow Onco US’s
representatives to attend such meeting;
	 
	(h)	 	subject to compliance by Onco US with Section 3.2(m), as modified by any exemptive relief
granted by securities regulatory authorities, Gamehost will ensure that the Gamehost
Information Circular provides Gamehost Security Holders with information required by
Applicable Law, and will set out the Onco Information in the Gamehost Information Circular in
the form approved by Onco US and shall include or incorporate by reference, without
limitation, the unanimous determination of the Gamehost Board of Trustees that the Arrangement
is fair to the Gamehost Security Holders and is in the best interests of Gamehost and the
Gamehost Security Holders, and include the unanimous recommendation of the Gamehost Board of
Trustees that the Gamehost

14

 

	 	 	Security Holders vote in favour of the Gamehost Resolution; provided that, for greater
certainty, the Gamehost Board of Trustees shall only be entitled to withdraw, modify or
change the recommendation regarding the Arrangement in response to an Alternative Proposal
where Gamehost has complied with the provisions of Section 3.4 and 7.3;
	 
	(i)	 	except for proxies and other non-substantive communications with security holders, Gamehost
will furnish promptly to Onco US or Onco US’s counsel, a copy of each notice, report, schedule
or other document delivered, filed or received by Gamehost in connection with:

	 	(i)	 	the Arrangement;
	 
	 	(ii)	 	the Gamehost Meeting;
	 
	 	(iii)	 	any filings under Applicable Laws in connection with the transactions
contemplated hereby; and
	 
	 	(iv)	 	any dealings with Governmental Entities in connection with the
transactions contemplated hereby;

	(j)	 	Gamehost will solicit proxies to be voted at the Gamehost Meeting in favour of matters to be
considered at the Gamehost Meeting, including the Gamehost Resolution;
	 
	(k)	 	Gamehost will conduct the Gamehost Meeting in accordance with the Gamehost Trust Indenture
and any instrument governing the Gamehost Meeting (including, without limitation, the Interim
Order) as applicable, and as otherwise required by Applicable Laws;
	 
	(l)	 	Gamehost will make all necessary filings and applications under Applicable Laws required to
be made on the part of Gamehost in connection with the transactions contemplated herein and
shall take all reasonable action necessary to be in compliance with such Applicable Laws;
	 
	(m)	 	Gamehost will promptly advise Onco US of the number of Gamehost Units for which Gamehost
receives notices of dissent or written objections to the Arrangement and provide Onco US with
copies of such notices and written objections; and
	 
	(n)	 	Gamehost shall use its commercially reasonable efforts to apply for and obtain from the
applicable Canadian securities regulatory authorities an exemption from the requirement to
include in the Gamehost Information Circular financial statements for Onco BC, Onco Alberta or
any other applicable Onco US Subsidiary as prescribed by Item 14 of Form 51-102F5 to National
Instrument 51-102 — Continuous Disclosure Obligations.

3.2 Covenants of Onco US

Onco US hereby covenants that, from the date hereof until the earlier of the Effective Date and the
date of the termination of this Agreement, except with the prior written consent of Gamehost (such
consent not to be unreasonably withheld or delayed), and except with respect to the Pre-Arrangement
Transactions or as otherwise expressly permitted or specifically contemplated by this Agreement
(including the Plan of Arrangement) or as required by Applicable Laws:

	(a)	 	each of Onco BC and Onco Alberta will not:

	 	(i)	 	amend its constating documents;

15

 

	 	(ii)	 	split, combine or reclassify any of its common shares;
	 
	 	(iii)	 	adopt a plan of liquidation or resolutions providing for its
liquidation, dissolution, merger, consolidation or reorganization;
	 
	 	(iv)	 	reorganize, amalgamate, merge or otherwise combine with any other
Person; or
	 
	 	(v)	 	enter into or modify any contract, agreement, commitment or arrangement
to do any of the foregoing;

	(b)	 	each of Onco BC and Onco Alberta will not:

	 	(i)	 	declare, set aside or pay any dividend or other distribution or payment
(whether in cash, shares or property) in respect of its outstanding securities;
	 
	 	(ii)	 	issue, grant, sell or pledge any of its securities, including, without
limitation, securities convertible into or exchangeable or exercisable for, or
otherwise evidencing a right to acquire, any of its shares;
	 
	 	(iii)	 	redeem, purchase or otherwise acquire any of its outstanding
securities; or
	 
	 	(iv)	 	enter into or modify any contract, agreement, commitment or arrangement
to do any of the foregoing;

	 	 	except, in each case, to the extent that such action or matter would not preclude, delay or
have an adverse effect on, the Arrangement (including the benefit thereof to Gamehost);

	(c)	 	each of Onco BC and Onco Alberta will not:

	 	(i)	 	acquire (by consolidation or acquisition of shares or assets) any
corporation, trust, partnership or other business organization or division thereof,
or make any investment therein either by purchase of shares or securities,
contributions of capital or property transfer;
	 
	 	(ii)	 	incur any indebtedness for borrowed money that is not repaid prior to
the Effective Time or incur any other material liability or obligation;
	 
	 	(iii)	 	issue any debt securities or assume, guarantee, endorse or otherwise
become responsible for, the obligations of any other individual or entity;
	 
	 	(iv)	 	enter into any hedges, swaps or other financial instruments or like
transactions;
	 
	 	(v)	 	enter into any material contract; or
	 
	 	(vi)	 	authorize or propose any of the foregoing, or enter into or modify any
contract, agreement, commitment or arrangement to do any of the foregoing;
	 
	 	except:
	 
	 	(vii)	 	in the ordinary course of business consistent with past practice in
respect of matters for which the approval of its board of directors is not
required;

16

 

	 	(viii)	 	with the consent of Gamehost, not to be unreasonably withheld; or
	 
	 	(ix)	 	if in connection with any such action or matter it obtains contractual
covenants by the counterparty or counterparties which allow it to assign any and
all rights and obligations it acquires or assumes as a result of such transaction
to New Onco without consent of the counterparty or counterparties and which
provides that there is no further recourse to it in respect of any such obligations
after such assignment (and such rights and obligations are assigned to Onco Alberta
Subco at the Effective Time under the Divestiture Agreement);

	 	 	provided that in each case with respect to subsections (vii), (viii) and (ix) above, such
action or matter would not preclude, delay or have an adverse effect on, the Arrangement
(including the benefit thereof to Gamehost);
	 
	(d)	 	each of Onco BC and Onco Alberta, and each of their Subsidiaries, will not take any action
that could reasonably be expected to preclude, delay or have an adverse effect on the
Arrangement (including the benefit thereof to Gamehost) or would render, or may reasonably be
expected to render, any representation or warranty made by it in this Agreement untrue in any
material respect;
	 
	(e)	 	Onco US will promptly disclose in writing to Gamehost any Material Adverse Change, or of any
change in any representation or warranty provided by Onco US in this Agreement which change is
or may be of such a nature to render any representation or warranty misleading or untrue in
any material respect and Onco US shall in good faith discuss with Gamehost any change in
circumstances (actual, anticipated, contemplated, or to the knowledge of Onco US, threatened)
which is of such a nature that there may be a reasonable question as to whether disclosure in
writing need to be given to Gamehost pursuant to this provision;
	 
	(f)	 	Onco US will ensure that it has available funds under its lines of credit or other bank
facilities to permit the payment of the maximum amount which may be required by Section 7.3
having regard to its other liabilities and obligations, and shall take all such actions as may
be necessary to ensure that it maintains such availability to ensure that it is able to pay
such amount if required;
	 
	(g)	 	Onco US will use its reasonable commercial efforts to satisfy or cause satisfaction of the
conditions set forth in Sections 5.1, 5.2 and 5.3 as soon as reasonably possible following
execution of this Agreement to the extent that the satisfaction of the same is within the
control of Onco US or any of its Subsidiaries;
	 
	(h)	 	Onco US and its Subsidiaries, as applicable, will complete the Pre-Arrangement Transactions
prior to the Effective Time;
	 
	(i)	 	prior to the date on which Gamehost and Onco US shall seek the Final Order as contemplated by
Section 2.1(c) of this Agreement, Onco BC shall be continued under the Laws of the Province of
Alberta such that it is a corporation governed by the ABCA and is not an unlimited liability
corporation under the ABCA;
	 
	(j)	 	prior to the date on which Gamehost and Onco US shall seek the Final Order as contemplated by
Section 2.1(c) of this Agreement, Onco Alberta shall be continued under the Laws of the
Province of Alberta such that it is a corporation governed by the ABCA;
	 
	(k)	 	prior to the date on which Gamehost and Onco US shall seek the Interim Order as contemplated
by Section 2.1(a) of this Agreement, Onco US shall file, proceed with and diligently prosecute
an

17

 

	 	 	application for the Initial Court Order (with notice of the application for the Initial
Court Order provided to the parties agreed to by Gamehost and Onco US prior to the entering
into of this Agreement at the times agreed to by Gamehost and Onco US or as otherwise
directed by the Court);
	 
	(l)	 	in seeking any consents to complete the transactions contemplated by the Divestiture
Agreement, Onco US and its Subsidiaries, as applicable, will use its reasonable commercial
efforts to obtain a release from such counterparties of any of Onco BC’s and Onco Alberta’s
obligations and liabilities which are to be assigned to or assumed by Onco Alberta Subco from
such counterparties at the Effective Time under the Divestiture Agreement, such release to be
effective at the Effective Time.
	 
	(m)	 	Onco US will assist Gamehost in the preparation of the Gamehost Information Circular and
provide to Gamehost, in a timely and expeditious manner, all Onco Information for inclusion in
the Gamehost Information Circular and any amendments or supplements thereto, in each case
complying in all material respects with all applicable legal requirements on the date of issue
thereof and, in particular, to enable Gamehost to meet the standard in Item 14 of Form
51-102F5 to National Instrument 51-102 — Continuous Disclosure Obligations, including without
limitation, unless Gamehost obtains an exemption from the applicable securities regulatory
authorities of such requirements, required financial statements and any associated audit
reports, review engagement reports and auditor consents;
	 
	(n)	 	Onco US and its Subsidiaries will furnish promptly to Gamehost or Gamehost’s counsel, a copy
of each notice, report, schedule or other document delivered, filed or received by them in
connection with:

	 	(i)	 	the Arrangement;
	 
	 	(ii)	 	any filings under Applicable Laws in connection with the transactions
contemplated hereby; and
	 
	 	(iii)	 	any dealings with Governmental Entities in connection with the
transactions contemplated hereby;

	(o)	 	Onco US and each of its Subsidiaries will make all necessary filings and applications under
Applicable Laws, required to be made on its part in connection with the transactions
contemplated herein and shall take all reasonable action necessary to be in compliance with
such Applicable Laws;
	 
	(p)	 	Onco US and each of its Subsidiaries will, within three Business Days of it receiving from a
taxing authority any audit inquiry, assessment, reassessment, confirmation or variation of an
assessment, indication that a tax assessment or reassessment is being considered or is
pending, request for filing of a waiver or extension of time or any other notice in writing
related to taxes, interest penalties, income, losses, or tax pools (an “Assessment”), insofar
as such Assessment may have an impact on the Tax Pools or otherwise affect Onco BC and/or Onco
Alberta, deliver to Gamehost a copy thereof together with a statement setting out, to the
extent then determinable, an estimate of the obligations, if any, of Onco BC and/or Onco
Alberta on the assumption that the Assessment is valid; and
	 
	(q)	 	Onco US and its Subsidiaries will not exercise any dissent rights under the ABCA with respect
to the Arrangement and the transactions contemplated thereby.

18

 

3.3 Mutual Covenants Regarding the Arrangement

From the date hereof until the Effective Date, each of the Parties hereto will use its reasonable
commercial efforts to satisfy (or cause the satisfaction of) the conditions precedent to its
obligations hereunder and to take, or cause to be taken, all other action and to do, or cause to be
done, all other things necessary, proper or advisable under Applicable Laws to complete the
Arrangement, including using reasonable commercial efforts:

	(a)	 	to obtain all necessary waivers, consents and approvals required to be obtained by it from
other parties to loan agreements, leases and other contracts;
	 
	(b)	 	to obtain all necessary consents, assignments, waivers and amendments to or terminations of
any instruments and take such measures as may be appropriate to fulfill its obligations
hereunder and to carry out the transactions contemplated hereby;
	 
	(c)	 	to prepare and deliver all documents and take all actions required to implement the
Arrangement at the Effective Time including, the transfer by Onco BC and Onco Alberta of all
of their assets and liabilities to Onco Alberta Subco (except the shares of Onco Alberta owned
by Onco BC) at the Effective Time under the Divestiture Agreement;
	 
	(d)	 	to effect all necessary registrations and filings and submissions of information requested by
Governmental Entities required to be effected by it in connection with the Arrangement, and
each of the Parties hereto will use its reasonable commercial efforts to cooperate with the
other in connection with the performance by the other of their obligations under this
Section 3.3 including, without limitation, continuing to provide reasonable access to
information and to maintain ongoing communications as between representatives of Gamehost and
Onco US;
	 
	(e)	 	[intentionally deleted.]
	 
	(f)	 	reasonably cooperate and consult with the Other Party and its tax advisors on the preparation
of the information for the Tax Return of Onco BC and Onco Alberta for the year ended
December 31, 2009 (including, in respect of Onco BC and Onco Alberta, providing the Other
Party with access to the Onco Books and Records);
	 
	(g)	 	use their reasonable commercial efforts to cause the mailing of the Gamehost Information
Circular to the Gamehost Security Holders to occur as soon as reasonably practicable
following the date hereof and in any event by March 31, 2010 (the “Mailing Deadline”); and
	 
	(h)	 	to obtain and maintain the Onco Required Approvals and the Gamehost Required Approvals which
must be obtained from Governmental Entities, including making as promptly as practicable all
filings and submissions that are required or are otherwise advisable in order to obtain such
approvals and will reasonably cooperate with each other in the preparation of such filings and
submissions and the provision of any supplemental information that may be requested or
required by Governmental Entities including:

	 	(i)	 	providing each other with drafts of documentation for review and
reasonable comment prior to submission with Governmental Entities; and
	 
	 	(ii)	 	keeping each other informed as to developments regarding the obtaining
of such regulatory approvals.

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3.4 Mutual Covenants Regarding Non-Solicitation

	(a)	 	Each Party shall immediately cease and cause to be terminated all existing discussions and
negotiations (including, without limitation, through any advisors or other parties on its
behalf), if any, with any parties conducted before the date of this Agreement with respect to
any Acquisition Proposal and shall immediately request the return or destruction of all
information provided to any third parties who have entered into a confidentiality agreement
with such Party relating to an Acquisition Proposal and shall use all reasonable commercial
efforts to ensure that such requests are honoured.
	 
	(b)	 	Neither Party shall, directly or indirectly, do or authorize or permit any of its officers,
directors or employees or any financial advisor, expert or other representative retained by it
to do, any of the following:

	 	(i)	 	solicit, facilitate, initiate or encourage any Acquisition Proposal;
	 
	 	(ii)	 	enter into or participate in any discussions or negotiations regarding
an Acquisition Proposal, or furnish to any other Person any information with
respect to its business, properties, operations, prospects or conditions (financial
or otherwise) in connection with an Acquisition Proposal or otherwise cooperate in
any way with, or assist or participate in, facilitate or encourage, any effort or
attempt of any other Person to do or seek to do any of the foregoing;
	 
	 	(iii)	 	waive, or otherwise forbear in the enforcement of, or enter into or
participate in any discussions, negotiations or agreements to waive or otherwise
forbear in respect of, any rights or other benefits under confidential information
agreements executed in connection with an Acquisition Proposal, including, without
limitation, any “standstill provisions” thereunder; or
	 
	 	(iv)	 	accept, recommend, approve or enter into an agreement to implement an
Acquisition Proposal;

	 	 	provided, however, that notwithstanding any other provision of this Agreement, each Party
and its officers, directors and advisers may:

	 	(v)	 	enter into or participate in any discussions or negotiations with a
third party who (without any solicitation, initiation or encouragement, directly or
indirectly, after the date of this Agreement, by such Party or any of its officers,
directors or employees or any financial advisor, expert or other representative
retained by it, whether or not such solicitation, initiation or encouragement was
in relation to an Acquisition Proposal or a transaction that would constitute an
Acquisition Proposal but for the fact that such transaction does not preclude,
delay or have an adverse effect on, the Arrangement) has made a written bona fide
Material Acquisition Proposal which the Onco Alberta Board of Directors, the Onco
BC Board or the Gamehost Board of Trustees, as the case may be, determines in good
faith that the funds or other consideration necessary for the Material Acquisition
Proposal are likely to be available (an “Alternative Proposal”) and, subject to
execution of a confidentiality agreement with a standstill covenant that prevents
such third party from making an Acquisition Proposal without the written consent of
the Onco Alberta Board of Directors, the Onco BC Board or the Gamehost Board of
Trustees, as the case may be, (provided that such confidentiality agreement shall
provide for disclosure thereof (along with all information provided thereunder) to
the Other Party as set out below),

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	 	 	may furnish to such third party information concerning such Party and its business,
properties and assets if:

	 	(A)	 	the Onco Alberta Board of Directors, the Onco BC Board or the
Gamehost Board of Trustees, as the case may be, has received the advice of
outside counsel that it is necessary to do so in order to properly discharge
its fiduciary duties under Applicable Laws or the constating documents of such
Party; and
	 
	 	(B)	 	prior to furnishing such information to or entering into or
participating in any such discussions or negotiations with such third party,
such Party provides prompt notice to the Other Party to the effect that it is
furnishing information to or entering into or participating in discussions or
negotiations with such third party together with a copy of the confidentiality
agreement referenced above and if not previously provided to the Other Party,
copies of all information provided to such third party that is relevant to the
Arrangement concurrently with the provision of such information to such third
party, and provided further that such Party shall notify the Other Party orally
of, and disclose in writing, any inquiries, offers or proposals with respect to
an Alternative Proposal (which written disclosure shall include, without
limitation, a copy of any such proposal (and any amendments or supplements
thereto), the identity of the third party making it, if not previously provided
to the Other Party, copies of all information provided to such third party and
all other information reasonably requested by the Other Party), within 24 hours
of the receipt thereof, shall keep the Other Party informed of the status and
details of any such inquiry, offer or proposal and answer the Other Party’s
questions with respect thereto; or

	 	(vi)	 	accept, recommend, approve or enter into an agreement to implement an
Alternative Proposal, if the Onco Alberta Board of Directors, the Onco BC Board or
the Gamehost Board of Trustees, as the case may be, determines the Alternative
Proposal to be in the best interests of its security holders, as the case may be,
and such Party complies with its obligations set forth in Section 3.4(c) and Onco
US or Gamehost, as the case may be, terminates this Agreement in accordance with
Section 7.1(b)(iv) and concurrently therewith pays the amount required by
Section 7.3 to the Other Party.

	(c)	 	Each Party in receipt of an Alternative Proposal (a “Receiving Party”) shall give the Other
Party (the “Responding Party”), orally and disclose in writing, at least three Business Days
advance notice of any decision by the Onco Alberta Board of Directors, the Onco BC Board or
the Gamehost Board of Trustees, as the case may be, to accept, recommend, approve or enter
into an agreement to implement an Alternative Proposal, which notice shall confirm that the
Onco Alberta Board of Directors, the Onco BC Board or the Gamehost Board of Trustees, as the
case may be, of the Receiving Party has determined that such Acquisition Proposal constitutes
an Alternative Proposal, shall identify the third party making the Alternative Proposal and
shall provide a true and complete copy thereof and any amendments thereto. During such three
Business Day period, the Receiving Party agrees not to accept, recommend, approve or enter
into any agreement to implement such Alternative Proposal and not to release the third party
making the Alternative Proposal from any standstill provisions and shall not withdraw,
redefine, modify or change its recommendation in respect of the Arrangement.
	 
	(d)	 	Each Party agrees that all information that may be provided to it by the Other Party with
respect to any Alternative Proposal pursuant to this Section 3.4 shall be confidential and
shall not be disclosed or used except in order to enforce its rights under this Agreement in
legal proceedings.

21

 

	(e)	 	Each Party shall ensure that its and its Subsidiaries officers, directors and employees and
any investment bankers or other advisers or representatives retained by it or its Subsidiaries
are aware of the provisions of this Section 3.4. Gamehost shall be responsible for any breach
of this Section 3.4 by its or its Subsidiaries officers, directors, trustees, employees,
investment bankers, advisers or representatives, and Onco US shall be responsible for any
breach of this Section 3.4 by its or its Subsidiaries officers, directors, employees,
investment bankers, advisers or representatives.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

4.1 Representations and Warranties of Gamehost

Gamehost hereby makes the representations and warranties set forth in this Section 4.1 to and in
favour of Onco US and acknowledges that Onco US is relying upon such representations and warranties
in connection with the matters contemplated by this Agreement.

	(a)	 	Organization and Qualification. Gamehost is a trust duly created and validly existing
under the Laws of the Province of Alberta and has the requisite trust power and authority to
own its assets and to conduct its affairs as now conducted.
	 
	(b)	 	Authority Relative to this Agreement.

	 	(i)	 	Gamehost has the requisite trust power and authority to execute this
Agreement and to carry out its obligations hereunder.
	 
	 	(ii)	 	The execution and delivery of this Agreement has been duly authorized
by the Gamehost Board of Trustees and no other proceedings on the part of Gamehost
are necessary to authorize this Agreement.
	 
	 	(iii)	 	This Agreement has been duly executed and delivered by Gamehost and
constitutes a legal, valid and binding obligation of Gamehost enforceable against
it in accordance with its terms, subject to the qualification that such
enforceability may be limited by bankruptcy, insolvency, reorganization or other
Laws of general application relating to or affecting rights of creditors and that
equitable remedies, including specific performance, are discretionary and may not
be ordered.

	(c)	 	No Violations. Except as contemplated by this Agreement, other than in connection
with or in compliance with the provisions of Applicable Laws or which are required to be filed
post Arrangement:

	 	(i)	 	there is no legal impediment to Gamehost’s consummation of the
Arrangement; and
	 
	 	(ii)	 	no filing or registration with, or authorization, consent or approval
of, any domestic or foreign public body or authority is required of Gamehost in
connection with the consummation of the Arrangement, except for such filings or
registrations which, if not made, or for such authorizations, consents or approvals
which, if not received, would not have an adverse effect on the ability of Gamehost
to consummate the Arrangement.

	(d)	 	Board Approval. The Gamehost Board of Trustees has unanimously approved the
Arrangement and approved this Agreement, has unanimously determined that the Arrangement and
this

22

 

	 	 	Agreement are in the best interests of Gamehost and the Gamehost Security Holders and has
unanimously determined that the Arrangement is fair to Gamehost Security Holders and has
resolved to unanimously recommend approval of the Gamehost Resolution by the Gamehost
Security Holders.
	 
	(e)	 	Litigation. There are no actions, suits or proceedings in existence or pending or, to
the knowledge of Gamehost, threatened or for which there is a reasonable basis, affecting or
that would affect Gamehost at law or in equity or before or by any court or Governmental
Entity which action, suit or proceeding involves a possibility of any judgment against or
liability of Gamehost which, if successful would have a Material Adverse Effect on Gamehost or
which may reasonably be expected to preclude, delay or have an adverse effect on the
Arrangement or on the ability of Gamehost to consummate the Arrangement.
	 
	(f)	 	Capitalization. As of the date hereof, there are 11,773,153 Gamehost Units (as such
term is defined in the Plan of Arrangement) issued and outstanding in the capital of Gamehost
and there are no options, warrants or other rights, agreements or commitments of any character
whatsoever requiring the issuance, sale or transfer by Gamehost of any securities of Gamehost
or any securities convertible into, or exchangeable or exercisable for, or otherwise
evidencing a right to acquire, any securities of Gamehost, other than the 9,334,400 Gamehost
Subsidiary LP Exchangeable Units which are exchangeable, at any time at the option of the
holders thereof for no additional consideration, for Gamehost Units on a one for one basis.
All outstanding Gamehost Units have been duly authorized and validly issued, are fully paid
and non-assessable and are not subject to, nor were they issued in violation of, any
pre-emptive rights.
	 
	(g)	 	Status of Gamehost Inc. New Common Shares. The Gamehost Inc. New Common Shares (as
such term is defined in the Plan of Arrangement) which will be owned by New Onco (as such term
is defined in the Plan of Arrangement) on the Effective Date immediately following the
completion of the Arrangement will, on such date, be freely transferable shares with no
restrictions on trading or hold periods under applicable Canadian Securities Laws.
	 
	(h)	 	Reporting Issuer Status and Canadian Securities Laws Matters. Gamehost is, and
Gamehost Inc. (created in accordance with Section 2.2(h) of the Plan of Arrangement) will be,
a “reporting issuer” and not on the list of reporting issuers in default under applicable
Canadian Securities Laws in British Columbia, Alberta and Ontario. No delisting, suspension of
trading in or cease trading order with respect to any securities of Gamehost and, to the
knowledge of Gamehost, no inquiry or investigation (formal or informal) of any Governmental
Entity, is in effect or ongoing or, to the knowledge of Gamehost, expected to be implemented
or undertaken.
	 
	(i)	 	Public Filings. Gamehost has filed in the Gamehost Public Record all documents
required to be filed by it in accordance with applicable Canadian Securities Laws. All such
documents and information comprising the Gamehost Public Record, as of their respective dates
(and the dates of any amendments thereto), (i) did not contain any 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, in light of the circumstances in which they were made, not
misleading, and (ii) complied in all material respects with the requirements of applicable
Canadian Securities Laws, and any amendments to the Gamehost Public Record required to be made
have been filed as required. Gamehost has not filed any confidential material change report
with any securities authorities that at the  date of this Agreement remains
confidential.
	 
	(j)	 	Funds Available. The aggregate cash to be loaned by Gamehost to Onco US or one of its
Subsidiaries pursuant to the Arrangement is available to Gamehost and will be available at the

23

 

	 	 	Effective Time so that Gamehost will be able to make such loan in accordance with the terms
of the Plan of Arrangement.
	 
	(k)	 	Financial Statements. As of their respective dates, the Gamehost Financial Statements
did not contain any 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, in light of the
circumstances in which they were made, not misleading and complied in all material respects
with all Applicable Laws. The Gamehost Financial Statements were prepared in accordance with
GAAP (except (x) as otherwise indicated in such financial statements and the notes thereto or,
in the case of audited statements, in the related report of Gamehost’s independent auditors or
(y) in the case of unaudited interim statements, to the extent they may not include footnotes,
are subject to normal year end adjustments or may be condensed or summary statements), and
present fairly in all material respects in accordance with GAAP the consolidated financial
position, results of operations and changes in financial position of Gamehost on a
consolidated basis as of the dates thereof and for the periods indicated therein (subject, in
the case of any unaudited interim financial statements, to normal year-end audit adjustments)
and reflect appropriate and adequate reserves in all material respects in respect of
contingent liabilities, if any, of Gamehost on a consolidated basis.
	 
	(l)	 	No Material Adverse Change. Since September 30, 2009, other than as disclosed in the
Gamehost Public Record, there has not been any Material Adverse Change in respect of Gamehost.
	 
	(m)	 	Disclosure. To the knowledge of Gamehost, Gamehost has not withheld from Onco US any
material information that would reasonably be expected to disclose that Gamehost is unable to
complete all or any material part of the transactions contemplated as part of the Arrangement.
No representation or warranty of Gamehost contained herein contains or will contain any untrue
statement of a material fact or omits to state a material fact which is necessary in order to
make the statements herein not misleading.

4.2 Representations and Warranties of Onco US

Onco US hereby makes the representations and warranties set forth in this Section 4.2 to and in
favour of Gamehost and acknowledges that Gamehost is relying upon such representations and
warranties in connection with the matters contemplated by this Agreement.

	(a)	 	Organization and Qualification.

	 	(i)	 	Each of Onco US, Onco Alberta and Onco BC are, and each of Onco Alberta
Subco and New Onco will be, corporations duly incorporated or amalgamated and
validly existing under the Laws of their respective jurisdictions of incorporation,
amalgamation or continuance;
	 
	 	(ii)	 	Each of Onco US, Onco Alberta and Onco BC has, and each of Onco Alberta
Subco and New Onco will have, the requisite corporate power and authority to own
their assets as now owned, or to be owned, and to carry on their business as now
conducted, or as to be conducted.
	 
	 	(iii)	 	Copies of the constating documents of Onco Alberta and Onco BC and any
material contracts of either them provided to Gamehost, together with all
amendments to date, are accurate and complete as of the date hereof and have not
been amended or superseded.

24

 

	(b)	 	Authority Relative to this Agreement.

	 	(i)	 	Each of Onco US, Onco Alberta and Onco BC has the requisite corporate
power and authority to execute this Agreement and/or any agreements contemplated
hereby, as applicable, and to carry out its obligations hereunder and thereunder,
as applicable.
	 
	 	(ii)	 	The execution and delivery of this Agreement has been duly authorized
by each of the Onco US Board of Directors, the Onco Alberta Board of Directors and
the Onco BC Board of Directors and no other proceedings on the part of any of Onco
US, Onco Alberta or Onco BC are necessary to authorize this Agreement.
	 
	 	(iii)	 	This Agreement has been duly executed and delivered by each of Onco
US, Onco Alberta and Onco BC and constitutes a legal, valid and binding obligation
of each of them enforceable against each of them in accordance with its terms,
subject to the qualification that such enforceability may be limited by bankruptcy,
insolvency, reorganization or other Laws of general application relating to or
affecting rights of creditors and that equitable remedies, including specific
performance, are discretionary and may not be ordered.

	(c)	 	No Violations. Except as contemplated by this Agreement, other than in connection
with or in compliance with the provisions of Applicable Laws or which are required to be filed
post Arrangement:

	(i)	 	there is no legal impediment to any of Onco US’s, Onco Alberta’s or
Onco BC’s consummation of the Arrangement; and
	 
	(ii)	 	no filing or registration with, or authorization, consent or approval
of, any domestic or foreign public body or authority is required of any of Onco US,
Onco Alberta or Onco BC in connection with the consummation of the Arrangement,
except for such filings or registrations which, if not made, or for such
authorizations, consents or approvals which, if not received, would not have an
adverse effect on the ability of Onco US, Onco Alberta or Onco BC to consummate the
Arrangement.

	(d)	 	Board Approval. The Onco Alberta Board of Directors and the Onco BC Board of
Directors have each unanimously approved the Arrangement and approved this Agreement. The
Onco US Board of Directors has unanimously approved the delegation of authority with respect
to the subject matter of this Agreement to the officers of Onco US, including without
limitation the approval of the Arrangement and this Agreement.
	 
	(e)	 	Litigation. There are no actions, suits or proceedings in existence or pending or, to
the knowledge of Onco US, threatened or for which there is a reasonable basis, affecting or
that would affect Onco US, Onco Alberta or Onco BC at law or in equity or before or by any
court or Governmental Entity which action, suit or proceeding involves a possibility of any
judgment against or liability of Onco US, Onco Alberta or Onco BC which, if successful, would
have a Material Adverse Effect on Onco Alberta or Onco BC or which may reasonably be expected
to preclude, delay or have an adverse effect on the Arrangement or on the ability of Onco US
and its Subsidiaries to consummate the Arrangement.
	 
	(f)	 	Reporting Issuer Status. Neither Onco BC nor Onco Alberta is a reporting issuer
(where such concept exists), or the equivalent thereof, under the securities legislation of
any jurisdiction including, but not limited to, Canadian Securities Laws and US Securities
Laws.

25

 

	(g)	 	Capitalization.

	 	(i)	 	The authorized capital of Onco Alberta consists of an unlimited number
of Onco Alberta Shares and an unlimited number of each of
Class B shares, Class C shares, Class D shares, Class E shares and Class F shares. As of the date hereof,
there were issued and outstanding 100 Onco Alberta Shares, all of which are owned
by Onco BC, and there are no other shares or options, warrants or other rights,
agreements or commitments of any character whatsoever requiring the issuance, sale
or transfer by Onco Alberta of any securities of Onco Alberta (including Onco
Alberta Shares) or any securities convertible into, or exchangeable or exercisable
for, or otherwise evidencing a right to acquire, any securities of Onco Alberta
(including Onco Alberta Shares). All outstanding Onco Alberta Shares have been duly
authorized and validly issued, are fully paid and non-assessable and are not
subject to, nor were they issued in violation of, any preemptive rights.
	 
	 	(ii)	 	The authorized capital of Onco BC consists of an unlimited number of
Onco BC Class A Shares and an unlimited number of Onco BC Class B Shares. As of the
date hereof, there were issued and outstanding 100 Onco BC Class A Shares, all of
which are owned by a Subsidiary of Onco US and 124,616,611 Onco BC Class B Shares,
all of which are owned by Onco US, and there are no options, warrants or other
rights, agreements or commitments of any character whatsoever requiring the
issuance, sale or transfer by Onco BC of any securities of Onco BC (including Onco
BC Class A Shares or Onco BC Class B Shares) or any securities convertible into, or
exchangeable or exercisable for, or otherwise evidencing a right to acquire, any
securities of Onco BC Class A Shares or Onco BC Class B Shares (including Onco BC
Class A Shares or Onco BC Class B Shares). All outstanding Onco BC Class A Shares
or Onco BC Class B Shares have been duly authorized and validly issued, are fully
paid and non-assessable and are not subject to, nor were they issued in violation
of, any preemptive rights.

	(h)	 	Financial Information. As of the respective dates indicated therein, the Onco
Financial Information did not contain any 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, in
light of the circumstances in which they were made, not misleading. The Onco Financial
Information presents fairly in all material respects the financial position, results of
operations and changes in financial position reflected therein as of the dates thereof and for
the periods indicated therein (subject, in the case of any unaudited interim financial
statements, to normal year-end audit adjustments) and reflects appropriate and adequate
reserves in all material respects in respect of contingent liabilities, if any, where
necessary.

	(i)	 	Absence of Liabilities. Each of Onco BC and Onco Alberta, and any successor
corporations thereto, will, after the Effective Time, not have any debts, liabilities,
commitments or obligations of any nature (whether matured or unmatured, accrued, fixed,
contingent or otherwise) of any kind whatsoever resulting from any matters, actions, events,
facts or circumstances related to the activities, affairs or business of any of them which
occurred prior to the Effective Time, including without limitation, as a result of:

	 	(i)	 	Claims relating to the Intellectual Property of any of them or the
activity of any of them and/or of their Subsidiaries in relation to the
Intellectual Property, including without limitation the development, reproduction,
use, and sale or distribution, of all or any part thereof, which infringes upon, or
misappropriates, the Intellectual Property Rights of any third Person;

26

 

	 	(ii)	 	Claims relating to Taxes of any of them for any period of time prior to
the Effective Time;
	 
	 	(iii)	 	Claims related to any public disclosure of Onco Alberta, including
without limitation the Onco Alberta Public Record and any disclosure relating to
Onco US, Onco BC, Onco Alberta or any of their Subsidiaries included in Gamehost
Information Circular (based on information provided by or approved by Onco US), for
any period of time prior to the Effective Time;
	 
	 	(iv)	 	any violation of Applicable Laws, including without limitation
applicable Canadian Securities Laws or US Securities Laws, that occurred prior to
the Effective Time;
	 
	 	(v)	 	any failure to comply with the terms of any agreements, contracts,
indentures, licenses, permits, approvals to which it is or was party or which it is
or was subject to, or which has been entered into on its behalf or its constating
documents;
	 
	 	(vi)	 	Claims relating to the operation, performance, warranty, maintenance,
service, malfunction or liability of its products prior to the Effective Time;
	 
	 	(vii)	 	Claims relating to workers’ compensation, including without
limitation, premiums in Canada or the United States;
	 
	 	(viii)	 	Claims relating to personal injuries or property damage; or
	 
	 	(ix)	 	Claims relating to violations of Environmental Laws or the release of
Hazardous Substances;

	 	 	except, in each case;

	 	(A)	 	as has been assumed by Onco Alberta Subco and is the subject of
the trust conditions of the Divestiture Agreement; or
	 
	 	(B)	 	any liabilities or obligations of Onco BC or Onco Alberta
resulting from completion of the Arrangement, including the obligation to repay
the amounts loaned to it by Gamehost under the Plan of Arrangement or to
satisfy the dissent rights granted to Gamehost Security Holders pursuant to the
Interim Order;

	(j)	 	Disclosure. To the knowledge of Onco US, Onco US and its Subsidiaries have not
withheld from Gamehost any material information or documents concerning the Subsidiaries of
Onco US that would reasonably be expected to disclose that a Material Adverse Change had
occurred in respect of Onco BC or Onco Alberta after December 10, 2007. No representation or
warranty of Onco US contained herein contains or will contain any untrue statement of a
material fact or omits to state a material fact which is necessary in order to make the
statements herein not misleading.
	 
	(k)	 	Tax Representations:

	 	(i)	 	Place of Principal Offices. Neither the principal office of
Onco BC or Onco Alberta is located within the United States;
	 
	 	(ii)	 	Investment Company. Neither Onco BC nor Onco Alberta is an
“investment company” within the meaning of the United States Investment Company Act
of 1940, as amended;

27

 

	(iii)	 	Tax Returns. Each of Onco BC and Onco Alberta, and each of
their respective Subsidiaries, has duly and timely filed in the prescribed manner
and within the prescribed time with all appropriate Governmental Entities all Tax
Returns that it is required to file in respect of any Taxes in respect of any
provision in applicable tax legislation, for all fiscal and other reporting periods
ending prior to the date hereof, and all of which are, to the best of Onco US’s
knowledge, true, correct and complete in all material respects;
	 
	(iv)	 	Sales Tax. Each of Onco BC and Onco Alberta, and each of their
respective Subsidiaries, has complied with all registration, reporting, collection
and remittance requirements in respect of all federal and provincial sales tax
legislation including but not limited to the Excise Tax Act (Canada);
	 
	(v)	 	Tax Information. Onco US has provided to Gamehost copies of all
tax related materials requested by Gamehost insofar as they relates to Onco BC or
Onco Alberta and/or the Tax Pools, including Tax Returns, electronic copies of the
general ledger and copies of legal entity financial statements, elections,
designations, audit undertakings, notices of determination of loss, all working
papers, calculations and schedules relating thereto, together with all
communications relating thereto from any Governmental Entities and the response, if
any, from Onco US or any of its Subsidiaries to such communications;
	 
	(vi)	 	Assessments or Reassessments. Insofar as the following relates
to Onco BC or Onco Alberta and/or the Tax Pools:

	 	(A)	 	There are no assessments or reassessments of any Taxes that
have been issued and are outstanding pursuant to which there are any amounts
owing;
	 
	 	(B)	 	None of Onco US or any of its Subsidiaries is negotiating any
draft assessment or reassessment with any Governmental Entity;
	 
	 	(C)	 	None of Onco US or any of its Subsidiaries is aware of any
contingent liabilities for Taxes or any grounds for an assessment or
reassessment including, without limitation, aggressive treatment of income,
expenses, deductions, credits or other claims for deduction or credit under any
Tax Returns;
	 
	 	(D)	 	None of Onco US or any of its Subsidiaries has received any
indication from any Governmental Entity that an assessment or reassessment is
proposed in respect of any Taxes, regardless of its merits;
	 
	 	(E)	 	None of Onco US or any of its Subsidiaries has executed or
filed with any Governmental Entity any agreement extending the period for the
filing of any Tax Returns or for the assessment, reassessment or collection of
any Taxes; and
	 
	 	(F)	 	No Governmental Entity has challenged or disputed the federal
tax account balances set forth in the Onco Disclosure Letter;

	(vii)	 	Acquisition of Control. Based on the generally accepted
interpretation of the ITA as of the date hereof, during the period commencing
January 1, 1994 and ending immediately prior to the date hereof, there has not been
any “acquisition of control” of either Onco BC or Onco Alberta, as that term is
used for purposes of the ITA. Notwithstanding the foregoing or anything else in
this Agreement to the contrary, (i) it is hereby acknowledged and agreed that this
representation and warranty is not provided at the time

28

 

	 	 	 	of execution of this
Agreement as contemplated in the introductory sentence and (ii) Onco US hereby
covenants and agrees with Gamehost that it will provide this representation and
warranty to Gamehost prior to the closing of the transaction contemplated by this
Agreement which representation and warranty will then be governed by the provisions
of section 5.2(a) as if it had been provided at the time of execution of this
Agreement;

	 	(viii)	 	Residency. Each of Onco BC and Onco Alberta is and has been since its
inception, resident in Canada and a “taxable Canadian corporation”, both for
purposes of the ITA; and
	 
	 	(ix)	 	Income. Neither Onco BC nor Onco Alberta have had any taxable
income since December 31, 2008, and will not have had any taxable income between
the date hereof and the Effective Time, in each case to the extent that such
taxable income could be expected to result in any material impairment of, or
materially adversely affect reduce or otherwise have any material adverse effect on
the Tax Pools.

4.3 Limitations on Claims for Losses

Any claim for Losses (as such term is defined in the Indemnity Agreement) that may be brought by a
Party after the Effective Time in respect of a breach of the representations and warranties
contained in Sections 4.1 or 4.2 or any of the covenants or obligations contained herein shall be
subject to the provisions of the Indemnity Agreement and no claim for Losses in respect of a breach
of such representations and warranties, covenants or obligations may be brought under this
Agreement by a Party after the Effective Time. For greater certainty, a Party may make any claim
against another Party or Parties in respect of a breach of the representations and warranties
contained in Sections 4.1 or 4.2 or any of the covenants or obligations contained herein before the
Effective Time and may seek to enforce the covenants and obligations of another Party contained
herein after the Effective Time. Any such claims shall be subject to the limits on liability as set
forth in the Indemnity Agreement, which limits on liability are adopted herein whether or not the
Indemnity Agreement is executed.

ARTICLE 5

CONDITIONS PRECEDENT

5.1 Mutual Conditions Precedent

The respective obligations of the Parties to consummate the transactions contemplated hereby, and
in particular the Arrangement, are subject to the satisfaction, on or before the Effective Date or
such other time specified, of the following conditions, any of which may be waived by the mutual
consent of such Parties without prejudice to their right to rely on any other of such conditions:

	(a)	 	the Interim Order:

	 	(i)	 	shall have been granted in form and substance satisfactory to each of
Gamehost and Onco US, acting reasonably; and
	 
	 	(ii)	 	shall not have been set aside or modified in a manner unacceptable to
either Gamehost or Onco US, acting reasonably, on appeal or otherwise;

29

 

	(b)	 	the Gamehost Resolution shall have been passed by the requisite majority of Gamehost Security
Holders specified in the Interim Order and in form and substance satisfactory to each of
Gamehost and Onco US, acting reasonably;
	 
	(c)	 	the Final Order shall have been granted in form and substance satisfactory to each of
Gamehost and Onco US, acting reasonably, and shall not have been set aside or modified in any
manner unacceptable to either Gamehost or Onco US, acting reasonably, on appeal or otherwise;
	 
	(d)	 	the Articles of Arrangement to be filed with the Registrar in accordance with the Arrangement
shall be in form and substance satisfactory to each of Gamehost and Onco US, acting reasonably
and be capable of being filed in sufficient time to ensure that the Arrangement may become
effective on or prior to the Deadline; and
	 
	(e)	 	there shall be no action taken under any existing Applicable Law, nor any statute, rule,
regulation or order which is enacted, enforced, promulgated or issued by any Governmental
Entity, that:

	 	(i)	 	makes illegal or otherwise directly or indirectly restrains, enjoins or
prohibits the Arrangement or any other transactions contemplated herein; or
	 
	 	(ii)	 	results in a judgment or assessment of material damages directly or
indirectly relating to the transactions contemplated herein.

The foregoing conditions are for the mutual benefit of Onco US and Gamehost and may be asserted by
each of Onco US and Gamehost regardless of the circumstances and may be waived by each of Onco US
and Gamehost (with respect to such Party) in their sole discretion, in whole or in part, at any
time and from time to time without prejudice to any other rights which Onco US or Gamehost may
have.

5.2 Additional Conditions to Obligations of Gamehost

The obligations of Gamehost to consummate the transactions contemplated hereby, and in particular
the Arrangement, is subject to the satisfaction, on or before the Effective Date or such other time
specified, of the following conditions:

	(a)	 	except as affected by the transactions contemplated by this Agreement, the representations
and warranties of Onco US contained in Section 4.2 shall be true in all material respects
(provided that those representations which are subject to qualifications or limitations as to
materiality or Material Adverse Effect or Material Adverse Change shall be true in all
respects) as at the Effective Date, or as at the date specified in such representation or
warranty, where applicable, with the same effect as though such representations and warranties
had been made at and as of such time and Onco US shall have complied in all material respects
with its covenants in this Agreement and Gamehost shall have received a certificate to that
effect dated the Effective Date from the Chief Executive Officer and Chief Financial Officer
of Onco US acting solely on behalf of Onco US and not in their personal capacity, to the best
of their respective information and belief having made reasonable inquiry and Gamehost will
have no knowledge to the contrary;
	 
	(b)	 	in the event the Interim Order provides Gamehost Security Holders with dissent rights,
holders of not more than 5% of the outstanding Gamehost Units and Gamehost Subsidiary LP
Exchangeable Units, collectively, shall have exercised rights of dissent in respect of the
Arrangement that have not been withdrawn as of the Effective Date;

30

 

	(c)	 	immediately prior to the Effective Time, but after completion of the Pre-Arrangement
Transactions, the aggregate amount of the actual tax account balances in respect of the Tax
Pools described in lines 1, 2, 3 and 4 less line 5 of the Onco Disclosure Letter shall not be
less than 95% of the aggregate amount of the tax account balances set out in lines 1, 2, 3 and
4 less line 5 of the Onco Disclosure Letter, and the applicable expiry horizons of the actual
tax account balances in respect of the Tax Pools described in lines 1, 2, 3 and 4 will not be
materially different than as set out in the Onco Disclosure Letter;
	 
	(d)	 	at the Effective Time:

	 	(i)	 	Onco BC, or its successor corporation, shall have no Subsidiaries other
than Onco Alberta and Onco Alberta shall have no Subsidiaries other than those
being transferred to Onco Alberta Subco or New Onco, whether pursuant to the
Arrangement or the Divestiture Agreement or otherwise at the Effective Time and
neither shall have agreements of any nature to acquire any Subsidiary, or to
acquire or lease any other business, assets or operations;
	 
	 	(ii)	 	Neither Onco BC nor Onco Alberta shall have in effect any bonus plan,
commission plan, profit sharing plan, pension plan, royalty plan or arrangement or
employee benefit plan for the benefit of any of its employees, officers, directors
or shareholders that will not be terminated or transferred to Onco Alberta Subco or
New Onco, whether pursuant to the Arrangement or the Divestiture Agreement or
otherwise at the Effective Time;
	 
	 	(iii)	 	Neither Onco BC nor Onco Alberta will have any officers, employees or
consultants other than those being terminated or transferred to Onco Alberta Subco
or New Onco, whether pursuant to the Arrangement or the Divestiture Agreement or
otherwise at the Effective Time; and
	 
	 	(iv)	 	There shall be no amounts payable by Onco BC or Onco Alberta under any
obligations or liabilities of either of them to pay any amount to their officers,
directors, employees or consultants or any other person not dealing at arm’s length
with either of them or any associate or affiliate of any such persons including all
severance, termination, change of control arrangements, pay to stay or retention
arrangements and salaries and bonuses (other than those to be transferred to Onco
Alberta Subco or New Onco, whether pursuant to the Arrangement or the Divestiture
Agreement or otherwise at the Effective Time) except for any benefits under run off
directors’ and officers’ liability insurance maintained by Onco US for the current
and former directors and officers of Onco BC and/or Onco Alberta on terms and
conditions that the current Onco US Board of directors reasonably determines;

	(e)	 	there shall not have been on or after the date hereof and prior to the Effective Time any
legislative enactment, promulgation, or public statement of any change or proposed change in
law (including, but not limited to, a proposal to amend the ITA publicly announced by the
Department of Finance of Canada) or applicable case law or written and published
interpretative guidance or policy of the Canada Revenue Agency or provincial equivalent, that,
in the opinion
of Gamehost acting reasonably, could be expected to result in any material impairment of, or
materially adversely affect:

	 	(i)	 	the benefit to Gamehost, or the completion, of the Arrangement; or

31

 

	 	(ii)	 	the ability of Onco Alberta to utilize the Tax Pools referred to in the
Disclosure Letter after the Effective Date;

	(f)	 	during the period commencing immediately prior to the date hereof and ending immediately
prior to the Effective Time, there will not have been any “acquisition of control” of either
Onco BC or Onco Alberta, as that term is used for purposes of the ITA with the exception of
any “acquisition of control” that may occur on or after the date hereof as a result of the
execution of this Agreement or the completion of the transactions contemplated herein,
including the Plan of Arrangement;
	 
	(g)	 	the shares of Onco BC to be issued to the Gamehost Security Holders pursuant to the
Arrangement shall be conditionally approved for listing so as to be listed and posted for
trading on the TSX on the first trading day following the Effective Date;
	 
	(h)	 	Gamehost shall have received resignations and releases, in the form settled between Onco US
and Gamehost, each acting reasonably, prior to the Effective Date, from the directors and
officers of Onco Alberta and Onco BC;
	 
	(i)	 	between the date hereof and the Effective Time, there shall not have occurred any Material
Adverse Change in respect of Onco BC or Onco Alberta;
	 
	(j)	 	Onco Alberta and Onco BC shall each have:

	 	(i)	 	been added as an additional insured to the general insurance policies;
and
	 
	 	(ii)	 	as a named insured to the directors’ and officers’ liability insurance
policy of Onco US or shall have secured “run off” directors’ and officers’
liability insurance;

	 	 	which policies shall have a scope and coverage no less advantageous in scope and coverage to
that provided pursuant to Onco US’s insurance policies immediately prior to the date of this
Agreement and, in the case of the “run off” directors’ and officers’ liability insurance
policy shall cover claims made prior to or within six years after the Effective Time;

	(k)	 	there shall be no security registrations against either Onco BC, or any successor
corporation, or Onco Alberta under the Personal Property Security Act (British Columbia), the
Personal Property Security Act (Alberta) or other security registration legislation in other
jurisdictions, with the exception of registrations relating to specific goods which, for
greater certainty, excludes registrations relating to equipment or other categories of
personal property where no specific good is listed, or such other arrangements shall have been
made with respect to the discharge of such security registrations as are satisfactory to
Gamehost;
	 
	(l)	 	Onco US and New Onco shall have entered into an indemnity agreement indemnifying Onco BC in
the form attached hereto as Schedule “B”;
	 
	(m)	 	Onco BC, Onco Alberta, Onco Alberta Subco and New Onco shall have entered into the
Divestiture Agreement in the form attached hereto as Schedule “E”;
	 
	(n)	 	The Gamehost Required Approvals shall have been received by Gamehost on a basis acceptable to
Gamehost, acting reasonably;

32

 

	(o)	 	the Tax Returns of Onco BC and Onco Alberta for the year ended December 31, 2009 shall have
been filed on or before the Effective Date in form and content acceptable to Gamehost, acting
reasonably;
	 
	(p)	 	prior to the date on which Gamehost and Onco US shall seek the Interim Order as contemplated
by Section 2.1(a) of this Agreement, the Initial Court Order shall have been granted in form
and substance satisfactory to each of Gamehost and Onco US, acting reasonably, and shall not
have been set aside or modified in any manner unacceptable to either Gamehost or Onco US,
acting reasonably, on appeal or otherwise; and
	 
	(q)	 	On or before the Effective Time, Onco US shall have provided Gamehost with the representation
and warranty referred to in section 4.2(i)(vii).

The conditions in this Section 5.2 are for the exclusive benefit of Gamehost and may be asserted by
Gamehost regardless of the circumstances or may be waived by Gamehost in its sole discretion, in
whole or in part, at any time and from time to time without prejudice to any other rights which
Gamehost may have.

5.3 Additional Conditions to Obligations of Onco US

The obligations of Onco US to consummate the transactions contemplated hereby, and in particular
the Arrangement, is subject to the satisfaction, on or before the Effective Date or such other time
specified, of the following conditions:

	(a)	 	except as affected by the transactions contemplated by this Agreement, the representations
and warranties of Gamehost contained in Section 4.1 shall be true in all material respects
(provided that those representations which are subject to qualifications or limitations as to
materiality or Material Adverse Effect or Material Adverse Change shall be true in all
respects) as at the Effective Date, or as at the date specified in such representation or
warranty, where applicable, with the same effect as though such representations and warranties
had been made at and as of such time and Gamehost shall have complied in all material respects
with its covenants in this Agreement and Onco US shall have received a certificate to that
effect dated the Effective Date from the Chief Executive Officer and Chief Financial Officer
of the Gamehost Administrator acting solely on behalf of the Gamehost Administrator and not in
their personal capacity, to the best of their respective information and belief having made
reasonable inquiry and Onco US will have no knowledge to the contrary;
	 
	(b)	 	Onco BC shall have entered into an indemnity agreement indemnifying Onco US and New Onco in
the form attached hereto as Schedule “B”;
	 
	(c)	 	the Onco Required Approvals shall have been received by Onco US on a basis acceptable to Onco
US, acting reasonably; and
	 
	(d)	 	prior to the date on which Gamehost and Onco US shall seek the Interim Order as contemplated
by Section 2.1(a) of this Agreement, the Initial Court Order shall have been granted in form
and substance satisfactory to each of Gamehost and Onco US, acting reasonably, and shall not
have been set aside or modified in any manner unacceptable to either Gamehost or Onco US,
acting reasonably, on appeal or otherwise.

33

 

The conditions in this Section 5.3 are for the exclusive benefit of Onco US and may be asserted by
Onco US regardless of the circumstances or may be waived by Onco US in its sole discretion, in
whole or in part, at any time and from time to time without prejudice to any other rights which
Onco US may have.

5.4 Notice and Effect of Failure to Comply with Conditions

	(a)	 	Each of Gamehost and Onco US shall give prompt notice to the other of the occurrence, or
failure to occur, at any time from the date hereof to the Effective Date of any event or state
of facts which occurrence or failure would, or would be likely to:

	 	(i)	 	cause any of the representations or warranties of any Party contained
herein to be untrue or inaccurate in any material respect, or
	 
	 	(ii)	 	result in the failure to comply with or satisfy any covenant, condition
or agreement to be complied with or satisfied by any Party hereunder;

	 	 	provided, however, that no such notification will affect the representations or warranties
of the Parties or the conditions to the obligations of the Parties hereunder.

	(b)	 	Subject to the provisions of Sections 7.2 and 7.3, if any of the conditions precedents set
forth in Sections 5.1, 5.2 or 5.3 hereof shall not be complied with or waived by the Party or
Parties for whose benefit such conditions are provided on or before the date required for the
performance thereof, then a Party for whose benefit the condition precedent is provided may
terminate this Agreement as provided in Section 7.1 hereof; provided that, prior to the filing
of the Articles of Arrangement for the purpose of giving effect to the Arrangement, the Party
intending to rely thereon has delivered a written notice to the Other Party, specifying in
reasonable detail all breaches of covenants, representations and warranties or other matters
which the Party delivering such notice is asserting as the basis for the non-fulfillment of
the applicable conditions precedent. More than one such notice may be delivered by a Party.

5.5 Satisfaction of Conditions

The conditions set out in this Article 5 are conclusively deemed to have been satisfied, waived or
released when, with the agreement of the Parties, Articles of Arrangement are filed under the ABCA
to give effect to the Arrangement.

ARTICLE 6

AMENDMENT

6.1 Amendment

This Agreement (including the Plan of Arrangement) may at any time and from time to time before or
after the holding of the Gamehost Meeting be amended by written agreement of the Parties without,
subject to Applicable Law, further notice to or authorization on the part of the Gamehost Security
Holders and any such amendment may, without limitation:

	(a)	 	change the time for performance of any of the obligations or acts of the Parties;
	 
	(b)	 	waive any inaccuracies or modify any representation or warranty contained herein or in any
document delivered pursuant hereto;

34

 

	(c)	 	waive compliance with or modify any of the covenants herein contained and waive or modify
performance of any of the obligations of the Parties; or
	 
	(d)	 	waive compliance with or modify any other conditions precedent contained herein;
	 
	(e)	 	provided that no such amendment which is agreed to after the Parties are granted the Interim
Order by the Court may reduce or materially adversely affect the consideration to be received
by Gamehost Security Holders without approval by the affected security holders given in the
same manner as required for the approval of the Arrangement or as may be ordered by the Court.

ARTICLE 7

TERMINATION

7.1 Termination

	(a)	 	This Agreement may be terminated at any time prior to the Effective Time by mutual written
consent of Gamehost and Onco US.
	 
	(b)	 	This Agreement may be terminated by either Gamehost or Onco US at any time prior to the
Effective Time:

	 	(i)	 	if the Effective Time has not occurred on or prior to the Deadline,
except that the right to terminate this Agreement under this Section 7.1(b)(i)
shall not be available to any Party to this Agreement whose failure to fulfill any
of its obligations (including those of its Subsidiaries) has been a principal cause
of, or resulted in, the failure of the Effective Time to occur by such date;
	 
	 	(ii)	 	if the Gamehost Meeting is held and the required Gamehost Resolution is
not passed at the Gamehost Meeting (or any adjournment or postponement thereof);
	 
	 	(iii)	 	if any Law makes the consummation of the Arrangement or the
transactions contemplated by this Agreement illegal or otherwise prohibited, and
such Law has become final and non-appealable; or
	 
	 	(iv)	 	in order for a Party to enter into an Alternative Proposal in
accordance with Section 3.4(b), provided that such Party has complied with its
obligations set forth in Section 3.4(c) and concurrently therewith pays the Other
Party the Termination Fee contemplated by Section 7.3.

	(c)	 	This Agreement may be terminated by Onco US at any time prior to the Effective Time if Onco
US (including its Subsidiaries) is not in material breach of its obligations under this
Agreement and Gamehost breaches or fails to perform any of its representations, warranties,
covenants or agreements contained in this Agreement which breach or failure to perform
(i) would cause a default under Section 3.1 or the failure of the one of the conditions
precedent in Section 5.1 or 5.3 to be satisfied and (ii) is incapable of being cured or, if
curable, is not cured in accordance with Section 7.2.
	 
	(d)	 	This Agreement may be terminated by Gamehost at any time prior to the Effective Time if
Gamehost is not in material breach of its obligations under this Agreement and Onco US (or any
of its Subsidiaries) breaches or fails to perform any of its representations, warranties,
covenants or agreements contained in this Agreement which breach or failure to perform
(i) would cause a

35

 

	 	 	default under Section 3.2 or the failure of the one
of the conditions precedent in Section 5.1 or 5.2
to be satisfied and (ii) is incapable of being
cured or, if curable, is not cured in accordance
with Section 7.2.

7.2 Notice and Cure Provisions

	(a)	 	Each Party will give prompt notice to the other of the occurrence, or failure to occur, at
any time prior to the Effective Time of any event or state of facts which occurrence or
failure would, or would be likely to:

	 	(i)	 	cause any of the representations or warranties of any Party contained
herein to be untrue or inaccurate in any material respect on the date hereof or at
the Effective Time; or
	 
	 	(ii)	 	result in the failure to comply with or satisfy any covenant, condition
or agreement to be complied with or satisfied by any Party hereunder prior to the
Effective Time.

	(b)	 	Gamehost may not exercise its right to terminate this Agreement pursuant to Section 7.1(d)
and Onco US may not exercise its right to terminate this Agreement pursuant to Section 7.1(c)
unless the Party seeking to terminate the Agreement shall have delivered a written notice to
the Other Party specifying in reasonable detail all breaches of covenants, representations and
warranties or other matters which the Party delivering such notice is asserting as the basis
for the termination right. If any such notice is delivered, provided that the Other Party is
proceeding diligently to cure such matter and such matter is capable of being cured on or
prior to the Deadline, no Party may exercise such termination right until the earlier of
(i) the Deadline, and (ii) the date that is fifteen (15) Business Days following receipt of
such notice by the Other Party to whom the notice was delivered, if such matter has not been
cured by such date. If such notice has been delivered prior to the date of the Gamehost
Meeting, such meeting shall, unless the Parties agree otherwise, be postponed or adjourned
until the expiry of such period (without causing any breach of any other provision contained
herein). If such notice has been delivered prior to the filing of the Articles of Arrangement,
such filing shall be postponed until two (2) Business Days after the expiry of such period.
	 
	(c)	 	Each Party shall promptly notify the Other Party of (i) any communication from any person
alleging that the consent of such person (or another person) is or may be required in
connection with the transactions contemplated by this Agreement (and the response thereto from
such Party, its Subsidiaries or its representatives), (ii) any material communication from any
Government Entity in connection with the transactions contemplated by this Agreement (and the
response thereto from such Party, its Subsidiaries or its representatives), and (iii) any
material Claim threatened or commenced against or otherwise affecting such Party or any of its
Subsidiaries that are related to the transaction contemplated by the Agreement.

7.3 Termination Fee

Notwithstanding any other provision relating to the payment of fees or expenses, in the event of
termination of this Agreement under the various circumstances set forth below, either Onco US or
Gamehost shall pay, or cause to be paid, the Other Party the Termination Fee and/or reimbursement
of expenses, if any, as follows:

36

 

	(a)	 	if Onco US terminates this Agreement pursuant to:

	 	(i)	 	Section 7.1(b)(ii) (i.e. Gamehost Resolution not approved) or
Section 7.1(c) (i.e. breach of Agreement by Gamehost), Gamehost will pay, or cause
to be paid, to Onco US by wire transfer of immediately available funds an amount
equal to the Termination Fee; or
	 
	 	(ii)	 	Section 7.1(b)(iv) (i.e. Alternative Proposal), Onco US will pay, or
cause to be paid, to Gamehost by wire transfer of immediately available funds an
amount equal to the Termination Fee;

	(b)	 	If Gamehost terminates this Agreement pursuant to:

	 	(i)	 	Section 7.1(d) (i.e. breach of Agreement by Onco US or its
Subsidiaries), Onco US will pay, or cause to be paid, to Gamehost by wire transfer
of immediately available funds an amount equal to the Termination Fee; or
	 
	 	(ii)	 	Section 7.1(b)(ii) (i.e. Gamehost Resolution not approved) or
Section 7.1(b)(iv) (i.e. Alternative Proposal), Gamehost will pay, or cause to be
paid, to Onco US by wire transfer of immediately available funds an amount equal to
the applicable Termination Fee.

	(c)	 	For greater certainty and clarity, and notwithstanding anything herein to the contrary, if
Gamehost is obligated to pay a Termination Fee pursuant to this Agreement, such Termination
Fee shall only be payable to Onco US and shall not be payable to Onco BC or Onco Alberta.

The Parties acknowledge that the agreements contained in this Section 7.3 are an integral part of
the transactions contemplated by this Agreement, and that, without these agreements, neither Onco
US nor Gamehost would have entered into this Agreement; accordingly, if Onco US or Gamehost fails
to timely pay any amount due pursuant to this Section 7.3 and, in order to obtain the payment, the
Party who is owed such payment commences a suit which results in a judgment against the Other Party
for the payment set forth in this Section 7.3, the defaulting Party shall pay to the Other Party
its reasonable costs and expenses (including reasonable attorneys’ fees) in connection with such
suit, together with interest on the amount due from each day for which payment is due until the
date of the payment at the prime rate of the Bank of Canada in effect on the date such payment was
required to be made.

7.4 Damages and Remedies

Each Party acknowledges that the payment of the Termination Fee in the circumstances contemplated
in Section 7.3 is the sole remedy to which a Party is entitled on the termination of this Agreement
and that such amount is not a penalty, but intended to reimburse a Party for its time, efforts and
costs in implementing the transactions contemplated herein. Each Party irrevocably waives any right
it may have to raise as a defense that any such fee is excessive or punitive.

Each Party acknowledges that, other than in respect of the termination of this Agreement in
circumstances contemplated in Section 7.3, nothing restricts the ability of a Party to pursue any
and all legal remedies with respect to any breach by the Other Party of its covenants,
representations or warranties contained herein, including without limitation the ability to sue for
damages, seek injunctive relief or specific performance. Nothing herein shall preclude a Party from
seeking injunctive relief to restrain any breach or threatened breach of the covenants or
agreements set forth in this Agreement or otherwise to obtain specific performance of any of such
act, covenants or agreements, without the necessity of posting bond or security in connection
therewith.

37

 

ARTICLE 8

CONFIDENTIALITY

8.1 Confidentiality

	(a)	 	Each Party will, and will cause its Subsidiaries and its and their directors, officers,
employees and agents to, keep all information provided to it hereunder or in connection with
the Arrangement (collectively, the “Confidential Information”) confidential and will not use
or disclose such Confidential Information to any Person except to the extent:

	 	(i)	 	such use or disclosure is expressly permitted or contemplated pursuant
to this Agreement or any agreement contemplated herein;
	 
	 	(ii)	 	such use or disclosure is strictly necessary to enable the recipient of
such Confidential Information to exercise its rights and perform its obligations
under this Agreement or any agreement contemplated in this Agreement;
	 
	 	(iii)	 	such use or disclosure is required by Applicable Laws;
	 
	 	(iv)	 	such information is in the public domain other than as a result of a
breach of this Agreement or any agreement contemplated in this Agreement; or
	 
	 	(v)	 	such use or disclosure is required pursuant to a final order or
judgment of a court of competent jurisdiction and in such case the Parties will
cooperate with one another to obtain an appropriate protective order or other
reliable assurance that the confidentiality of such Confidential Information will
be maintained.

	(b)	 	Each Party acknowledges that the Confidential Information of the other Party consists in part
of information vital to the business and commercial prospects of those other Party and that
such information is the special, valuable and unique property of those other Party and would
not normally be disclosed to it. Accordingly, each Party agrees to use all commercially
reasonable efforts to protect such Confidential Information and keep it confidential using a
standard of care no less than the degree of care that such Party would be reasonably expected
to employ for its own similar Confidential Information. In particular, each Party has
instructed and shall continue to instruct those employees or advisors responsible for
processing Personal Information to protect the confidentiality of such information in a manner
consistent with the Parties’ obligations hereunder and has ensured and shall continue to
ensure that access to the Personal Information shall be restricted to those employees or
advisors of the respective Party who have a bona fide need to access to such information in
order to complete the Arrangement.
	 
	(c)	 	Neither Party has or hereafter shall use any Personal Information for any purposes other than
those related to the performance of this Agreement and the completion of the Arrangement and
each Party acknowledges and confirms that the disclosure of Personal Information is necessary
for the purposes of determining if the Parties shall proceed with the Arrangement, and that
any disclosure of Personal Information relates solely to the carrying on of the business and
the completion of the Arrangement.
	 
	(d)	 	Each Party acknowledges and confirms that it has and shall continue to employ appropriate
technology and procedures in accordance with Applicable Laws to prevent accidental loss or
corruption of the Personal Information, unauthorized input or access to the Personal
Information, or unauthorized or unlawful collection, storage, disclosure, recording, copying,
alteration, removal, deletion, use or other processing of such Personal Information.

38

 

	(e)	 	Subject to Applicable Laws, each Party shall promptly notify the other Party to this
Agreement of all inquiries, complaints, requests for access, and claims of which the Party is
made aware in connection with the Personal Information. The Parties shall fully co-operate
with one another, with the persons to whom the Personal Information relates, and any
authorized authority charged with enforcement of applicable privacy laws, in responding to
such inquiries, complaints, requests for access, and claims.
	 
	(f)	 	Upon the expiry or termination of this Agreement, or otherwise upon the reasonable request of
either Party, the other Party shall forthwith cease all use of the Personal Information
acquired by it in connection with this Agreement and will return to Other Party or, at the
Other Party’s request, destroy in a secure manner, the Personal Information (and any copies).
	 
	(g)	 	Each Party acknowledges and confirms that it and its representatives are aware that US and
Canadian Securities Laws prohibit any person who has material non-public information about a
company from purchasing or selling, directly or indirectly, securities of such company
(including entering into hedge transactions involving such securities), or from communicating
such information to any other person under circumstances in which it is reasonably foreseeable
that such person is likely to purchase or sell such securities. Each Party agrees that it
will not use, and that it will use its reasonable efforts to assure that none of its
representatives use, any of the Confidential Information in contravention of the US or
Canadian Securities Laws and as a result, each Party will cease trading in each other Party’s
securities as applicable.
	 
	(h)	 	Without prejudice to any other rights or remedies, in the event of litigation relating to a
breach of the provisions of this Article 8, if a court of competent jurisdiction determines in
a final, non-appealable order that any of such provisions has been breached, the Party in
breach will reimburse the other Party for its costs and expenses (including reasonable legal
fees and expenses) incurred in connection with all such litigation.

No failure or delay by a Party or any of such Party’s representatives in exercising any right,
power or privilege under this Article 8 will operate as a waiver thereof nor will any single or
partial exercise thereof preclude any other or further exercise of any right, power or privilege
hereunder. No provision of this Article 8 may be waived or amended nor any consent given except in
writing signed by a duly authorized officer of each Party so waiving or consenting.

ARTICLE 9

NOTICES

9.1 Notices

All notices that may or are required to be given pursuant to any provision of this Agreement are to
be given or made in writing and served personally or sent by telecopy by e-mail:

	(a)	 	in the case of Gamehost, to:
	 
	 	 	Gamehost Income Fund

400, 4406 – 50th Avenue

Red Deer, AB T4N 3Z5

Facsimile: (403) 340-0683

E-mail: djwill@gamehost.ca

Attention: Vice President

39

 

	 	 	with a copy to:
	 
	 	 	Shea Nerland Calnan LLP

2800, 715-5th Avenue SW

Calgary, Alberta T2P 2X6

Facsimile: (403) 299-9601

E-mail: jbrennan@snclaw.com

Attention: Joe Brennan
	 
	(b)	 	in the case of Onco US, Onco BC and/ or Onco Alberta, to:
	 
	 	 	c/o Oncothyreon Inc.

2601 Fourth Avenue, Suite 500

Seattle, Washington 98121

Facsimile: (206) 801-2111

E-mail: RKirkman@oncothyreon.com

Attention: President and CEO
	 
	 	 	with a copy to:
	 
	 	 	Fraser Milner Casgrain LLP

2900 Manulife Place

10180 — 101 Street

Edmonton, AB T5J 3V5

Facsimile: (780) 423-7276

E-mail: michael.obert@fmc-law.com

Attention: Michael Obert

or such other address as the Parties may, from time to time, advise to the other Parties hereto by
notice in writing. The date or time of receipt of any such notice will be deemed to be the date of
delivery or the time such telecopy or e-mail is received.

ARTICLE 10

GENERAL

10.1 Binding Effect

This Agreement shall be binding upon and enure to the benefit of the Parties hereto.

10.2 Assignment

No Party to this Agreement may assign any of its rights or obligations under this Agreement without
prior written consent of the Other Party.

10.3 Disclosure

The Parties agree to consult with each other, and to provide each other with a reasonable prior
opportunity to review and comment on, any press release, public statement or filing with any
regulatory body or stock exchange with respect to this Agreement or any of the transactions
contemplated herein. The Parties also agree to use commercially reasonable efforts to exclude, to
the extent legally permitted, all Confidential Information from any voluntary or other disclosure
required under applicable securities or similar

40

 

legislation in connection with this Agreement, including redacting Confidential Information from
any copy of this Agreement required to be filed under such legislation.

10.4 Costs

Except as contemplated herein (including Section 7.3 hereof), each Party shall be responsible for
its own fees and expenses in connection with the negotiation of this Agreement and the
implementation of the transactions contemplated hereby, provided that Gamehost shall be solely
responsible for all costs and expenses associated with any and all information circulars and
related documentation provided to the Gamehost Security Holders (including any required audits
and/or the seeking of exemption therefrom, except that for any required audit in respect of Onco BC
and/or Onco Alberta, Gamehost shall only be responsible for the costs and expenses of such audit up
to $75,000), the listing and posting for trading on the TSX of the new common shares of Onco BC
Shares to be issued pursuant to the Arrangement, the making of such shares freely tradable, the
preparation and approval of the Plan of Arrangement, and any and all related acts, procedures
and/or documentation..

10.5 Severability

If any one or more of the provisions or parts thereof contained in this Agreement should be or
become invalid, illegal or unenforceable in any respect in any jurisdiction, the remaining
provisions or parts thereof contained herein shall be and shall be conclusively deemed to be, as to
such jurisdiction, severable therefrom and:

	(a)	 	the validity, legality or enforceability of such remaining provisions or parts thereof shall
not in any way be affected or impaired by the severance of the provisions or parts thereof
severed; and
	 
	(b)	 	the invalidity, illegality or unenforceability of any provision or part thereof contained in
this Agreement in any jurisdiction shall not affect or impair such provision or part thereof
or any other provisions of this Agreement in any other jurisdiction.

10.6 Further Assurances

Each Party hereto shall, from time to time and at all times hereafter, at the request of the Other
Party hereto, but without further consideration, do all such further acts, and execute and deliver
all such further documents and instruments as may be reasonably required in order to fully perform
and carry out the terms and intent hereof.

10.7 Time of Essence

Time shall be of the essence of this Agreement.

10.8 Governing Law

This Agreement shall be governed by and construed in accordance with the Laws of the Province of
Alberta. The Parties hereto irrevocably attorn to the jurisdiction of the courts of the Province of
Alberta and, with respect to the Plan of Arrangement, the Court.

10.9 Waiver

No waiver by any Party shall be effective unless in writing and any waiver shall affect only the
matter, and the occurrence thereof, specifically identified and shall not extend to any other
matter or occurrence.

41

 

10.10 Obligations

The Parties acknowledge that, with respect to Gamehost being a party to this Agreement, the
obligations of Gamehost hereunder shall not be personally binding upon Gamehost, or any of its
trustees, or any of the Gamehost Unitholders and that any recourse against Gamehost, or any of its
trustees, or any of the Gamehost Unitholders in any manner in respect of any indebtedness,
obligation or liability of Gamehost arising hereunder or arising in connection herewith or from the
matters to which this Agreement relates, if any, including, without limitation, based on negligence
or otherwise tortious behaviour, shall be limited to, and satisfied only out of, the assets of
Gamehost and not the assets of any trustee of Gamehost or any Gamehost Unitholder.

The remainder of this page is left blank intentionally.

42

 

10.11 Counterparts

This Agreement may be executed by facsimile or other electronic signature and in counterparts, each
of which shall be deemed an original, and all of which together constitute one and the same
instrument.

IN WITNESS WHEREOF the Parties have executed this Agreement as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 

	GAMEHOST INCOME FUND, by its	 	 	 	ONCOTHYREON INC.	 	 
	Administrator, Gamehost Management, Inc.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Per:

	 	/s/ Darcy J. Will
 

	 	 
	 	Per:
	 	/s/ Robert L. Kirkman
 

	 	 
	 

	 	Darcy J. Will
	 	 	 	 	 	Robert L. Kirkman, MD	 	 
	 

	 	Vice President
	 	 	 	 	 	President and CEO	 	 

	 	 	 	 	 
	 	ONCOTHYREON CANADA INC.

 	 
	 	Per: 	              /s/ Robert L. Kirkman
 	 
	 	 	Robert L. Kirkman, MD 	 
	 	 	President 	 
	 

	 	 	 	 	 
	 	0811769 B.C. ULC

 	 
	 	Per: 	   /s/ Robert L. Kirkman
 	 
	 	 	Robert L. Kirkman, MD 	 
	 	 	CEO 	 
	 

43

 

EXHIBIT A

PLAN OF ARRANGEMENT

A-1

 

PLAN OF ARRANGEMENT

PLAN OF ARRANGEMENT UNDER SECTION 193

OF THE BUSINESS CORPORATIONS ACT (ALBERTA)

ARTICLE 1

INTERPRETATION

Section 1.1 Definitions

     Unless indicated otherwise, where used in this Plan of Arrangement, capitalized terms used but
not defined shall have the meanings ascribed thereto in the Arrangement Agreement and the following
terms shall have the following meanings and grammatical variations of such terms shall have
corresponding meanings:

“ABCA” means the Business Corporations Act (Alberta), as amended, including the regulations
promulgated thereunder.

“Amalco” means the limited corporation formed by the amalgamation of Onco BC and Onco Alberta
pursuant to this Plan of Arrangement.

“Amalco Common Shares” means the common shares in the capital of Amalco.

“Amalco Preference Shares” means the preference shares in the capital of Amalco, issuable in
series.

“Amalgamation” has the meaning set out in Section 2.2(t) of this Plan of Arrangement.

“Arrangement” means an arrangement under Section 193 of the ABCA on the terms and subject to the
conditions set out in this Plan of Arrangement, subject to any amendments or variations hereto made
in accordance with Section 6.1 of the Arrangement Agreement and in accordance with this Plan of
Arrangement or made at the direction of the Court in the Final Order.

“Arrangement Agreement” means the arrangement agreement made as of February 12, 2010 among
Gamehost, Onco US, Onco Alberta and Onco BC (including the schedules thereto) as it may be amended,
modified or supplemented from time to time in accordance with its terms.

“Assumption” has the meaning set out in Section 2.2 (b) of this Plan of Arrangement.

“Certificate of Arrangement” means the certificate or certificates or confirmation of filing which
may be issued by the Registrar pursuant to Subsection 193(11) of the ABCA giving effect to the
Arrangement.

“Court” means the Court of Queen’s Bench of Alberta.

“Divested Assets” means the Assets as such term is defined in the Divestiture Agreement.

“Divestiture Agreement” means the divestiture agreement between Onco BC, Onco Alberta and Onco
Alberta Subco and intervened to by New Onco and Gamehost, made as of the Effective Date providing
for the transfer of the Divested Assets to Onco Alberta Subco and the assumption by Onco Alberta
Subco of the Transferred Liabilities, the form of which is attached to the Gamehost Arrangement
Agreement.

“Effective Date” means the date shown on the Certificate of Arrangement giving effect to the
Arrangement.

“Effective Time” means 12:01 a.m. (Calgary time), or such other time on the Effective Date as may
be agreed in writing by Onco US and Gamehost, each acting reasonably.

A-2

 

“Final Order” means the final order of the Court approving the Arrangement, as such order may be
amended by the Court at any time prior to the Effective Date or, if appealed, then, unless such
appeal is withdrawn, as affirmed or as amended on appeal.

“Gamehost” means Gamehost Income Fund, an open-ended unincorporated investment trust established
under the laws of the Province of Alberta pursuant to the Gamehost Trust Agreement.

“Gamehost Circular” means the management information circular sent to Gamehost Security Holders in
connection with the applicable meeting of such security holders to approve of the Arrangement, as
amended, supplemented or otherwise modified.

“Gamehost Depositary” means Computershare Trust Company of Canada, as depositary, or such other
person appointed to act as depositary by Gamehost for the purposes of the Arrangement.

“Gamehost Inc. New Common Shares” means the new class of common shares in the capital of Onco BC to
be created pursuant to Section 2.2 (h) of this Plan of Arrangement.

“Gamehost Inc. New Common Shareholder” means a holder of Gamehost Inc. New Common Shares.

“Gamehost Loan Amount” means the aggregate amount payable pursuant to the Gamehost Loan Promissory
Note, which amount shall be equal to $8,425,000.

“Gamehost Loan Promissory Note” means the promissory note of Onco BC, in an aggregate principal
amount equal to the Gamehost Loan Amount, to be issued in favour of Gamehost pursuant to Section
2.2 (f) of this Plan of Arrangement in consideration of the loan to Onco BC by Gamehost of an
amount equal to the Gamehost Loan Amount.

“Gamehost LP” means Gamehost Limited Partnership, a limited partnership established pursuant to the
Laws of the Province of Alberta and an indirect subsidiary of Gamehost;

“Gamehost LP Agreement” means the limited partnership agreement governing Gamehost LP dated May 23,
2003, as amended from time to time or as may be amended from time to time.

“Gamehost Resolution” means the special resolution of the Gamehost Security Holders approving the
Plan of Arrangement and considered at the Gamehost Meeting and any amendments or variations thereto
made in accordance with the provisions of the Arrangement Agreement or made at the direction of the
Court in the Interim Order, at the Gamehost Meeting or otherwise.

“Gamehost Security Holders” means collectively:

     (i) the Gamehost Unitholders; and

     (ii) the Gamehost Subsidiary LP Exchangeable Unitholders.

“Gamehost Subsidiary LP Exchangeable Unitholders” means the holders of the Gamehost Subsidiary LP
Exchangeable Units.

“Gamehost Subsidiary LP Exchangeable Units” means the class B limited partnership units of Gamehost
LP.

“Gamehost Trust Indenture” means the trust agreement dated April 9, 2003 between the original
trustees of Gamehost and the initial unitholder of Gamehost, as amended from time to time or as may
be amended from time to time.

“Gamehost Meeting” means the special meeting of Gamehost Security Holders, including any
adjournment or postponement thereof, called and held in accordance with the Interim Order to
consider the Gamehost Resolution.

A-3

 

“Gamehost Units” means the trust units of Gamehost.

“Gamehost Unitholders” means the holders of the Gamehost Units.

“Governmental Entity” means any (a) multinational, federal, national, provincial, state, regional,
municipal, local or other government, governmental or public department, central bank, court,
tribunal, arbitral body, commission, board, bureau, ministry or agency, domestic or foreign; (b)
any subdivision, agent, commission, board, or authority of any of the foregoing; (c) any
quasi-governmental or private body exercising any regulatory, self regulatory, expropriation or
taxing authority under or for the account of any of the foregoing; (d) any stock exchange; or (e)
any Governmental Authority.

“Interim Order” means the interim order of the Court, as contemplated by 2.1 of the Arrangement
Agreement, as applicable.

“Law” or “Laws” means all laws (including common law), by-laws, statutes, rules, regulations,
principles of law and equity, orders, rulings, ordinances, judgments, injunctions, determinations,
awards, decrees or other requirements, whether domestic or foreign, and the terms and conditions of
any grant of approval, permission, authority or license of any Governmental Entity or self
regulatory authority (including the Exchange), and the term “applicable” with respect to such Laws
(including Environmental Laws) and in a context that refers to one or more Parties, means such Laws
as are applicable to such Party or its business, undertaking, property or securities and emanate
from a person having jurisdiction over the Party or Parties or its or their business, undertaking,
property or securities.

“Letter of Transmittal” means the letter of transmittal sent to Gamehost Security Holders for use
in connection with the Arrangement.

“Liens” means (a) any mortgage, charge, pledge, hypothecation, security interest, assignment by way
of security, lien (statutory or otherwise), conditional sale agreement, deposit arrangement or
title retention agreement; (b) any trust arrangement; (c) any arrangement which creates a right of
set-off out of the ordinary course of business; (d) any option, warrant, right or privilege capable
of becoming a transfer; (e) any other encumbrance of any nature which, in substance, secures
payment or performance of an obligation; or (f) any agreement to grant any such rights or
interests.

“New Onco” means 1517680 Alberta ULC, an unlimited liability corporation existing under the laws of
the Province of Alberta and a direct wholly-owned subsidiary of 1517678 Alberta ULC as contemplated
in the Pre-Arrangement Transactions (as defined in the Arrangement Agreement).

“New Onco Shares” means the common shares in the capital of New Onco.

“Onco Alberta” means [insert name], the unlimited liability corporation subsisting under the laws
of the Province of Alberta and formerly named Oncothyreon Canada Inc. prior to its continuance
under the ABCA as unlimited liability corporation under the laws of the Province of Alberta as
contemplated in the Pre-Arrangement Transactions (as defined in the Arrangement Agreement), and
where the context requires includes any successor corporation;

“Onco Alberta Subco” means 1518025 Alberta ULC, an unlimited liability corporation incorporated
under the laws of Province of Alberta and a direct wholly-owned subsidiary of Onco Alberta;

“Onco Alberta Subco Shares” means the common shares in the capital of Onco Alberta Subco.

“Onco BC” means [insert name], the corporation subsisting under the laws of the Province of
Alberta and formerly named 0811769 B.C. ULC prior to its continuance under the ABCA as a limited
corporation as contemplated in the Pre-Arrangement Transactions (as defined in the Arrangement
Agreement) and where the context requires includes any successor corporation;

“Onco BC Class A Shares” means the Class A voting common shares in the capital of Onco BC;

A-4

 

“Onco BC Class B Shares” means the Class B preferred shares in the capital of Onco BC;

“Onco BC Redeemable Shares” means the redeemable shares in the capital of Onco BC created pursuant
to Section 2.2 (h) of this Plan of Arrangement.

“Onco BC Shares” means, collectively, the Class A Shares and the Class B Shares in the capital of
Onco BC.

“Onco BC Shareholders” means the holders of Onco BC Shares prior to the Effective Time.

“Onco US” means Oncothyreon Inc., a corporation subsisting under the laws of the State of Delaware;

“Person” includes any individual, firm, partnership, limited partnership, limited liability
partnership, joint venture, venture capital fund, limited liability company, unlimited liability
company, association, trust, trustee, executor, administrator, legal personal representative,
estate, body corporate, corporation, company, unincorporated association or organization,
Governmental Entity, syndicate or other entity, whether or not having legal status.

“Plan of Arrangement” means this plan of arrangement proposed under Section 193 of the ABCA, and
any amendments or variations thereto made in accordance with Section 6.1 of the Arrangement
Agreement or this Plan of Arrangement or made at the direction of the Court in the Final Order.

“Tax Act” means the Income Tax Act (Canada) and the regulations made thereunder, as now in effect
and as may be promulgated or amended from time to time.

“Transfer” has the meaning set out in Section 2.2 (b) of this Plan of Arrangement.

“Transferred Liabilities” means the Assumed Liabilities as such term is defined in the Divestiture
Agreement.

Section 1.2 Interpretation Not Affected by Headings, etc.

     The division of this Plan of Arrangement into Articles, sections, and other portions and the
insertion of headings are for convenience of reference only and shall not affect the construction
or interpretation hereof. Unless otherwise indicated, all references to an “Article” or “section”
followed by a number and/or a letter refer to the specified Article or section of this Plan of
Arrangement. The terms “hereof, “herein” and “hereunder” and similar expressions refer to this
Plan of Arrangement and not to any particular Article, section or other portion hereof.

Section 1.3 Rules of Construction

     In this Plan of Arrangement, unless the context otherwise requires, (i) words importing the
singular number include the plural and vice versa, (ii) words importing any gender include all
genders, and (iii) “include”, “includes” and “including” shall be deemed to be followed by the
words “without limitation”.

Section 1.4 Currency

     Unless otherwise stated, all references in this Plan of Arrangement to sums of money are
expressed in lawful money of Canada.

Section 1.5 Date for Any Action

     If the date on which any action is required or permitted to be taken hereunder by a Person is
not a Business Day, such action shall be required or permitted to be taken on the next succeeding
day which is a Business Day.

Section 1.6 References to Dates, Statutes, etc.

     In this Plan of Arrangement, references from or through any date mean, unless otherwise
specified, from and including that date and/or through and including that date, respectively.

A-5

 

     In this Plan of Arrangement, unless something in the subject matter or context is inconsistent
therewith or unless otherwise herein provided, a reference to any statute, regulation, direction or
instrument is to that statute, regulation, direction or instrument as now enacted or as the same
may from time to time be amended, re-enacted or replaced, and in the case of a reference to a
statute, includes any regulations, rules, policies or directions made thereunder. Any reference in
this Plan of Arrangement to a Person includes its heirs, administrators, executors, legal personal
representatives, predecessors, successors and permitted assigns. References to any contract are to
that agreement or contract as amended, modified or supplemented from time to time in accordance
with its terms.

Section 1.7 Time

     Time shall be of the essence in every matter or action contemplated hereunder. All times
expressed herein are local time in Calgary, Alberta, unless otherwise expressly stipulated herein.

ARTICLE 2

THE ARRANGEMENT

     This Plan of Arrangement is made pursuant to the Arrangement Agreement.

Section 2.1 Binding Effect

     This Plan of Arrangement and the Arrangement, upon the filing of the Articles of Arrangement
and the issuance of the Certificate of Arrangement, will become effective, and be binding on:

	 	(i)	 	Gamehost, Onco US, Onco BC, Onco Alberta, Onco Alberta
Subco and New Onco; and
	 
	 	(ii)	 	all holders and beneficial owners of each of the
Gamehost Units, Gamehost Subsidiary LP Exchangeable Units, Onco BC Shares,
Onco Alberta Shares, Onco Alberta Subco Shares, New Onco Shares, Onco BC
Redeemable Shares and Gamehost Inc. New Common Shares;

at and after, the Effective Time without any further act or formality required on the part of any
Person, except as expressly provided herein.

Section 2.2 Effective Time

     Commencing at the Effective Time and in the order set out below, subject to the terms and
conditions of the Arrangement Agreement, the following events or transactions shall occur and shall
be deemed to occur in the following sequence without any further act or formality:

     Amendments to the Gamehost and Gamehost LP Constating Documents

	 	(a)	 	one minute following the Effective Time, each of the Gamehost Trust Agreement
and the Gamehost LP Agreement shall be deemed to be amended to the extent necessary to
facilitate the Arrangement and the implementation of the steps and transactions
described herein, whether or not such amendments are reflected in a further amended and
restated Gamehost Trust Agreement and/or amended and restated Gamehost LP Agreement, as
applicable;

     Transfer of Onco BC and Onco Alberta Assets and Liabilities

	 	(b)	 	two minutes following the Effective Time, each of Onco BC and Onco Alberta
shall transfer, assign and convey (the “Transfer”) the Divested Assets to Onco Alberta
Subco and, in consideration thereof, Onco Alberta Subco shall assume (the “Assumption”)
the Transferred Liabilities as well as issue to Onco Alberta 99 fully paid and
non-assessable Onco Alberta Subco Shares and to Onco BC 1 fully paid and non-assessable
Onco Alberta Subco Share, all on terms

A-6

 

	 	 	 	and conditions set forth in the Divestiture Agreement. The Transfer and the
Assumption shall be deemed to:

	 	(i)	 	operate as a novation by substitution of each of Onco
BC and Onco Alberta by Onco Alberta Subco with respect to all Transferred
Liabilities such that each of Onco BC and Onco Alberta shall be fully and
irrevocably released and forever discharged by all Persons with respect to
all Transferred Liabilities by the effect of such novation;
	 
	 	(ii)	 	transfer, assign and convey to Onco Alberta Subco all
rights, defences and counterclaims, of any kind whatsoever, that each of
Onco BC and Onco Alberta ever had, now has or may have in the future or
prior to the Effective Time in connection with the Transferred Liabilities;
and
	 
	 	(iii)	 	operate as a novation by substitution of each of Onco
BC and Onco Alberta by Onco Alberta Subco as a creditor of all rights,
benefits and interests in connection with the Divested Assets that each of
Onco BC and Onco Alberta ever had, now has or may have in the future or
prior to the Effective Time;

     Exchange of Onco BC Shares for New Onco Shares

	 	(c)	 	[intentionally deleted]
	 
	 	(d)	 	four minutes following the Effective Time, each Onco BC Share issued and
outstanding immediately prior to the Effective Time shall be transferred to New Onco
free and clear of all Liens in exchange for the issuance of one New Onco Share;
	 
	 	(e)	 	upon the exchange of Onco BC Shares for New Onco Shares in Section 2.2(d)of
this Plan of Arrangement:

	 	(i)	 	each former Onco BC Shareholder shall cease to be a
Onco BC Shareholder and the name of each such former Onco BC Shareholder
shall be removed from the registers of Onco BC Shareholder;
	 
	 	(ii)	 	each former Onco BC Shareholder shall become a New Onco
Shareholder and shall be added to the register of New Onco Shareholders;
and
	 
	 	(iii)	 	New Onco shall become the holder of the Onco BC Shares
so exchanged and shall be added to the register of Onco BC Shareholders in
respect thereof;

     Loan to Onco BC

	 	(f)	 	five minutes following the Effective Time, Gamehost shall loan to Onco BC the
Gamehost Loan Amount and Onco BC will issue and deliver to Gamehost the Gamehost Loan
Promissory Note;

     Subscription for Onco Alberta Subco Shares

	 	(g)	 	six minutes following the Effective Time, Onco BC will subscribe for 7,825,000
Onco Alberta Subco Shares in consideration for the Gamehost Loan Amount less $600,000;

     Amendments to Onco BC Articles

	 	(h)	 	seven minutes following the Effective Time, the articles of Onco BC will be
amended to:

	 	(i)	 	change the name of Onco BC to “Gamehost Inc.”;

A-7

 

	 	(ii)	 	amend the Onco BC Shares to become “Onco BC Redeemable
Shares” and designated as ‘Class A Redeemable Preferred Shares’ with the
rights, privileges, restrictions and conditions attached thereto as set
forth on Schedule “A” to this Plan of Arrangement;
	 
	 	(iii)	 	create an unlimited number of “Gamehost Inc. New
Common Shares”, being a new class of common shares of Onco BC designated as
the ‘Common Shares’ with the rights, privileges, conditions and
restrictions attached thereto as set forth on Schedule “A” to this Plan of
Arrangement;
	 
	 	(iv)	 	create an unlimited number of “Preferred Shares”, being
a new class of preferred shares of Onco BC, issuable in series designated
as the ‘Preferred Shares’ with the rights, privileges, conditions and
restrictions attached thereto as set forth on Schedule “A” to this Plan of
Arrangement;
	 
	 	(v)	 	eliminate the restrictions on share transfers, if any;

     Subscription by Onco BC for Gamehost Units

	 	(i)	 	eight minutes following the Effective Time, Onco BC will subscribe for $600,000
worth of Gamehost Units at a deemed subscription price per Unit equal to the volume
weighted average trading price of the Gamehost Units as traded on the Toronto Stock
Exchange for the 20 day period ending on the date that is 5 trading days prior to the
Effective Date, such subscription price payable in cash at the Effective Time;

     Dividend Payment by Onco BC to Newco Onco

	 	(j)	 	nine minutes following the Effective Time, Onco BC will declare and pay a
dividend to New Onco on the shares of Onco BC held by New Onco, such dividend to be
satisfied by Onco BC distributing all of the Gamehost Units held by it to New Onco;

     Exchange of Gamehost Securities

	 	(k)	 	ten minutes following the Effective Time, all of the Gamehost Units issued and
outstanding immediately prior to the Effective Time shall be sold, assigned and
transferred to Onco BC (free and clear of any Liens) solely in exchange for Gamehost
Inc. New Common Shares issued on the basis of one Gamehost Inc. New Common Share for
each one Gamehost Unit so sold, assigned and transferred;
	 
	 	(l)	 	upon the exchange of Gamehost Units for Gamehost Inc. New Common Shares in
Section 2.2 (k) of this Plan of Arrangement:

	 	(i)	 	each former Gamehost Unitholder shall cease to be a
Gamehost Unitholder and the name of each such former Gamehost Unitholder
shall be removed from the registers of Gamehost Unitholders;
	 
	 	(ii)	 	each former Gamehost Unitholder shall become a Gamehost
Inc. New Common Shareholder and shall be added to the register of Gamehost
Inc. New Common Shareholders; and
	 
	 	(iii)	 	Onco BC shall become the holder of the Gamehost Units
so exchanged and shall be added to the register of Gamehost Unitholders in
respect thereof;

	 	(m)	 	also ten minutes following the Effective Time, all of the Gamehost Subsidiary
LP Exchangeable Units issued and outstanding immediately prior to the Effective Time
shall be sold, assigned and transferred to Onco BC (free and clear of any Liens) solely
in exchange for Gamehost Inc. New

A-8

 

	 	 	 	Common Shares issued on the basis of one Gamehost Inc. New Common Share for each one
Gamehost Subsidiary LP Exchangeable Unit so sold, assigned and transferred;
	 
	 	(n)	 	upon the exchange of Gamehost Subsidiary LP Exchangeable Units for Gamehost
Inc. New Common Shares in Section 2.2(m) of this Plan of Arrangement:

	 	(i)	 	each former Gamehost Subsidiary LP Exchangeable
Unitholder shall cease to be a Gamehost Subsidiary LP Exchangeable
Unitholder and the name of each such former Gamehost Subsidiary LP
Exchangeable Unitholder shall be removed from the registers of Gamehost
Subsidiary LP Exchangeable Unitholder;
	 
	 	(ii)	 	each former Gamehost Subsidiary LP Exchangeable
Unitholder shall become a Gamehost Inc. New Common Shareholder and shall be
added to the register of Gamehost Inc. New Common Shareholders; and
	 
	 	(iii)	 	Onco BC shall become the holder of the Gamehost
Subsidiary LP Exchangeable Units so exchanged and shall be added to the
register of Gamehost Subsidiary LP Exchangeable Unitholders in respect
thereof;

     Replacement of Directors

	 	(o)	 	eleven minutes after the Effective Time, the incumbent directors of Onco BC
will, and will be deemed to, have resigned and be replaced, as directors by the
trustees of Gamehost in office as of the Effective Time;

     Dividend Payment by Onco Alberta to Onco BC

	 	(p)	 	twelve minutes following the Effective Time, Onco Alberta will declare and pay
a dividend to Onco BC on the shares of Onco Alberta held by Onco BC, such dividend to
be satisfied by Onco Alberta distributing all of the Onco Alberta Subco Shares held by
it to Onco BC;

     Redemption of Onco BC Redeemable Shares

	 	(q)	 	thirteen minutes following the Effective Time, Onco BC will redeem the Onco BC
Redeemable Shares and the redemption price of the Onco BC Redeemable Shares will be
satisfied by Onco BC distributing all of the issued and outstanding Onco Alberta Subco
Shares on a pro rata basis;

     Dissolution of Onco Alberta Subco

	 	(r)	 	fourteen minutes following the Effective Time, Onco Alberta Subco shall be and
will be deemed to have been wound-up and shall transfer, assign and convey to New Onco
all of the property, liabilities and assets of Onco Alberta Subco;
	 
	 	(s)	 	fifteen minutes following the Effective Time, Onco Alberta Subco will be
dissolved;

     Amalgamation

	 	(t)	 	sixteen minutes after the Effective Time Onco BC and Onco Alberta shall be
amalgamated (the “Amalgamation”) with the same effect as provided in Sections 15.6, 181
and 186 of the ABCA and, as such, shall continue in existence as one and the same
company, being “Amalco”, under the ABCA on the following terms and conditions:

	 	(i)	 	the name of Amalco shall be “Gamehost Inc.”;
	 
	 	(ii)	 	Amalco shall be a “limited corporation” as defined in
section 15.1 of the ABCA;

A-9

 

	 	(iii)	 	the capital of Amalco will consist of (i) an unlimited
number common shares designated as the ‘Amalco Common Shares’ with the
rights, privileges, conditions and restrictions attached thereto as set
forth on Schedule “B” to this Plan of Arrangement, and (ii) an unlimited
number of preference shares, issuable in series and designated as the
‘Amalco Preference Shares’ with the rights, privileges, conditions and
restrictions attached thereto as set forth on Schedule “B” to this Plan of
Arrangement;
	 
	 	(iv)	 	there shall be no restrictions on the activities that
Amalco is authorized to carry on, nor any restrictions on the transfer of
Amalco Common Shares or the Amalco Preference Shares;
	 
	 	(v)	 	the board of directors of Amalco will consist of not
less than three and not more than ten directors, the exact number of which
shall be determined by the directors from time to time;
	 
	 	(vi)	 	the directors of Amalco shall have the right to appoint
one or more additional directors, who shall hold office for a term expiring
no later than the close of the next annual meeting of holders of the Amalco
Common Shares, but the total number of directors so appointed shall not
exceed one-third of the number of directors elected at the previous annual
meeting of the holders of the Amalco Common Shares;
	 
	 	(vii)	 	the first directors of Amalco who shall hold office
until the next annual meeting of holders of the Amalco Common Shares or
until their successors are elected or appointed, shall be the persons who
were the directors of Onco BC immediately preceding the Amalgamation and
in each case their address will be care of Amalco at the address of its
registered office;
	 
	 	(viii)	 	the by-laws of Amalco shall be the by-laws proposed by Gamehost in the
Gamehost Circular as being the by-laws for Amalco, subject to any
amendments or revisions thereto as the board of directors of Amalco may
consider prudent and in the best interest of Amalco and its shareholders;
	 
	 	(ix)	 	all of the rights and properties of Onco BC and Onco
Alberta immediately before the Amalgamation become the rights and
properties of Amalco by virtue of the Amalgamation;
	 
	 	(x)	 	all of the liabilities of Onco BC and Onco Alberta
immediately before the Amalgamation become the liabilities of Amalco by
virtue of the Amalgamation;
	 
	 	(xi)	 	on the Amalgamation:

	 	(A)	 	each Gamehost Inc. New Common Share issued and
outstanding immediately prior to the Amalgamation shall become one
Amalco Common Share;
	 
	 	(B)	 	all of the shares of Onco Alberta issued and
outstanding immediately prior to the Amalgamation shall be cancelled
without any repayment of capital in respect of those shares; and
	 
	 	(C)	 	the financial year-end of Amalco shall be
December 31, with the first such year end being December 31, 2010; and

A-10

 

     Auditors

	 	(u)	 	the auditors of Amalco will be Heywood Holmes & Partners LLP, who shall
continue in the office until the close of business of the next annual meeting of the
holders of shareholders of Amalco, and the directors of Amalco are authorized to fix
the remuneration of such auditors.

ARTICLE 3

CERTIFICATES AND PAYMENTS

Section 3.1 Payment of Consideration in respect of Onco BC

	 	(a)	 	As soon as practicable following the Effective Date, Onco BC shall cause to be
delivered for the benefit of the former holders of Gamehost Units, Gamehost Subsidiary
LP Exchangeable Units and Onco BC Shares, certificates representing, in the aggregate,
the Gamehost Inc. New Common Shares to which such holders are entitled to pursuant to
Section 2.2 of this Plan of Arrangement. Onco BC will, as soon as practicable
following the later of the Effective Date and the date of deposit (by a former holder
of Gamehost Units, Gamehost Subsidiary LP Exchangeable Units or Onco BC Shares
exchanged under the Arrangement) of a duly completed Letter of Transmittal and the
certificates representing such Gamehost Units, Gamehost Subsidiary LP Exchangeable
Units or Onco BC Shares, as applicable, either:

	 	(i)	 	forward or cause to be forwarded by first class mail
(postage prepaid) or, in the case of postal disruption, by such other means
as the Gamehost Depositary may deem prudent, to such former holder of
Gamehost Units, Gamehost Subsidiary LP Exchangeable Units or Onco BC
Shares, as applicable, at the address specified in the letter of
transmittal; or
	 
	 	(ii)	 	if requested by such holders in the Letter of
Transmittal, make available or cause to be made available at the Gamehost
Depositary for pickup by such holder;

	 	 	 	certificates representing the number of Gamehost Inc. New Common Shares issued to
such holder under the Arrangement.
	 
	 	(b)	 	Where a certificate formerly representing Gamehost Units, Gamehost Subsidiary
LP Exchangeable Units or Onco BC Shares is not deposited with all other documents as
provided for in Section 3.1 (a) of this Plan of Arrangement on or prior to the sixth
anniversary date of the Effective Time, it will cease to represent a right or claim of
any kind or nature against or in Onco BC and shall be deemed to have been surrendered
to Onco BC together with all distributions and sale proceeds thereon held for such
holder. All such certificates surrendered to Onco BC shall be cancelled.
	 
	 	(c)	 	No holder of Gamehost Units, Gamehost Subsidiary LP Exchangeable Units or Onco
BC Shares shall be entitled to receive any consideration with respect to such Gamehost
Units, Gamehost Subsidiary LP Exchangeable Units or Onco BC Shares other than the
consideration to which such holder is entitled to receive in accordance with Section
2.2 and Section 3.1 of this Plan of Arrangement and, for greater certainty, no such
holder with be entitled to receive any interest, dividends, premium or other payment in
connection therewith, other than any declared but unpaid dividends.

Section 3.2 Lost Certificates in respect of Gamehost, Gamehost LP or Onco BC

     In the event any certificate which immediately prior to the Effective Time represented one or
more outstanding Gamehost Units, Gamehost Subsidiary LP Exchangeable Units or Onco BC Shares that
were exchanged pursuant to Section 2.2 of this Plan of Arrangement shall have been lost, stolen or
destroyed, upon the making of an affidavit of that fact by the Person claiming such certificate to
be lost, stolen or destroyed, the Gamehost Depositary will issue in exchange for such lost, stolen
or destroyed certificate, Gamehost Inc. New

A-11

 

Common Shares deliverable in accordance with such holder’s Letter of Transmittal. When
authorizing such delivery in exchange for any lost, stolen or destroyed certificate, the Person to
whom such certificate is to be delivered shall as a condition precedent to such delivery, give a
bond satisfactory to Onco BC and the Gamehost Depositary (each acting reasonably) in such sum as
Onco BC may direct, or otherwise indemnify Onco BC in a manner satisfactory to Onco BC acting
reasonably, against any claim that may be made against Onco BC with respect to the certificate
alleged to have been lost, stolen or destroyed.

Section 3.3 Withholding Rights

     Gamehost Inc. and the Gamehost Depositary shall be entitled to deduct and withhold from any
amount payable to any Person under the Plan of Arrangement, such amounts as Gamehost or the
Gamehost Depositary determines, acting reasonably, are required or permitted to be deducted and
withheld with respect to such payment under the Tax Act, the United States Internal Revenue Code of
1986 or any provision of any other applicable Law, in each case, as amended or succeeded and
subject to the provisions of any applicable income tax treaty between Canada and the country where
the holder is resident. To the extent that amounts are so withheld, such withheld amounts shall be
treated for all purposes hereof as having been paid to the Person in respect of which such
withholding was made, provided that such amounts are actually remitted to the appropriate taxing
authority.

ARTICLE 4

AMENDMENTS

Section 4.1 Amendments to Plan of Arrangement

	 	(a)	 	Onco US and Gamehost may amend, modify and/or supplement this Plan of
Arrangement at any time and from time to time prior to the Effective Time, provided
that each such amendment, modification and/or supplement must:

	 	(i)	 	comply with the terms of the Arrangement Agreement;
	 
	 	(ii)	 	be set out in writing;
	 
	 	(iii)	 	be filed with the Court and, if made following the
Gamehost Meeting, be approved by the Court; and
	 
	 	(iv)	 	be communicated to holders of Onco BC Shares, Onco
Alberta Shares, Gamehost Units and Gamehost Subsidiary LP Exchangeable
Units, if and as required by the Court.

	 	(b)	 	Any amendment, modification or supplement to this Plan of Arrangement may be
proposed by Onco US or Gamehost, with the consent of the other, at any time prior to
the Gamehost Meeting with or without any other prior notice or communication, and if so
proposed and accepted by the Persons voting at the Gamehost Meeting (as may be required
under the Interim Order), shall become part of this Plan of Arrangement for all
purposes.
	 
	 	(c)	 	Any amendment, modification or supplement to this Plan of Arrangement that is
approved or directed by the Court following the Gamehost Meeting shall be effective
only if:

	 	(i)	 	such amendment, modification or supplement is made in
accordance with the terms and conditions of the Arrangement Agreement; and
	 
	 	(ii)	 	if required by the Court, it is consented to by the
requisite number of holders of Gamehost Units and Gamehost Subsidiary LP
Exchangeable Units, voting in the manner directed by the Court.

	 	(d)	 	Any amendment, modification or supplement to this Plan of Arrangement may be
made following the Effective Date unilaterally by Onco BC, provided that it concerns a
matter which, in the

A-12

 

	 	 	 	reasonable opinion of Onco BC, is of an administrative nature required to better
give effect to the implementation of this Plan of Arrangement and is not adverse to
the economic interest of any former holder of Onco BC Shares.
	 
	 	(e)	 	This Plan of Arrangement or portions thereof may be withdrawn prior to the
Effective Time in accordance with the terms of the Arrangement Agreement.

ARTICLE 5

FURTHER ASSURANCES

Section 5.1 Further Assurances

     Notwithstanding that the transactions and events set out herein shall occur and shall be
deemed to occur in the order set out in this Plan of Arrangement within the meaning of Section 193
of the ABCA and shall become effective without any further act or formality, each of the parties to
the Arrangement Agreement shall make, do and execute, or cause to be made, done and executed, all
such further acts, deeds, agreements, transfers, assurances, instruments or documents as may
reasonably be required by either of them in order further to document or evidence any of the
transactions or events set out herein.

A-13

 

Schedule “A” — Gamehost Inc. Share Terms

Common Shares

The rights, privileges, restrictions and conditions attaching to the Common Shares are as follows:

	 	(i)	 	Payment of Dividends: The holders of the Common Shares will be entitled to receive
dividends if, as and when declared by the board of directors of the Corporation out of the
assets of the Corporation properly applicable to the payment of dividends in such amounts
and payable in such manner as the board of directors may from time to time determine.
Subject to the rights of the holders of any other class of shares of the Corporation
entitled to receive dividends in priority to or concurrently with the holders of the Common
Shares, the board of directors may in its sole discretion declare dividends on the Common
Shares to the exclusion of any other class of shares of the Corporation.
	 
	 	(ii)	 	Participation upon Liquidation, Dissolution or Winding Up: In the event of the
liquidation, dissolution or winding up of the Corporation or other distribution of assets
of the Corporation among its shareholders for the purpose of winding up its affairs, the
holders of the Common Shares will, subject to the rights of the holders of any other class
of shares of the Corporation entitled to receive assets of the Corporation upon such a
distribution in priority to or concurrently with the holders of the Common Shares, be
entitled to participate in the distribution. Such distribution will be made in equal
amounts per share on all the Common Shares at the time outstanding without preference or
distinction.
	 
	 	(iii)	 	Voting Rights: The holders of the Common Shares will be entitled to receive notice of
and to attend all annual and special meetings of the shareholders of the Corporation and to
one vote in respect of each Common Share held at all such meetings.

Preferred Shares 

The rights, privileges, restrictions and conditions attaching to the Preferred Shares, exclusive of
the Class A Redeemable Preferred Shares which shall be a separate class of shares in the capital of
the Corporation, are as follows:

	 	(a)	 	the Preferred Shares may from time to time be issued in one or more series, and
the board of directors of the Corporation may fix from time to time before such issue
the number of Preferred Shares which is to comprise each series and the designation,
rights, privileges, restrictions and conditions attaching to each series of Preferred
Shares including, without limiting the generality of the foregoing, any voting rights,
the rate or amount of dividends or the method of calculating dividends, the dates of
payment thereof, the terms and conditions of redemption, purchase and conversion, if
any, and any sinking fund or other provisions;
	 
	 	(b)	 	the Preferred Shares of each series shall, with respect to the payment of
dividends and the distribution of assets or return of capital in the event of
liquidation, dissolution or winding-up of the Corporation, whether voluntary or
involuntary, or any other return of capital or distribution of assets of the
Corporation among its shareholders for the purpose of winding-up its affairs, be
entitled to preference over the Common Shares, and over any other shares of the
Corporation ranking by their terms junior to the Preferred Shares. The Preferred
Shares of any series may also be given such other preferences, not inconsistent with
the articles of the Corporation, over the Common Shares, and any other shares of the
Corporation ranking by their terms junior to the Preferred Shares as may be fixed in
accordance with subclause (a) above; and
	 
	 	(c)	 	if any cumulative dividends or amounts payable on the return of capital in
respect of a series of Preferred Shares are not paid in full, all series of Preferred
Shares shall participate rateably in respect of accumulated dividends and return of
capital.

A-14

 

Class A Redeemable Preferred Shares 

The rights, privileges, restrictions and conditions attaching to the Class A Redeemable Preferred
Shares are as follows:

	 	(i)	 	Payment of Dividends: The holders of the Class A Redeemable Preferred Shares will not
be entitled to receive any dividends thereon.
	 
	 	(ii)	 	Participation upon Liquidation, Dissolution or Winding Up: In the event of the
liquidation, dissolution or winding up of the Corporation or other distribution of assets
of the Corporation among its shareholders for the purpose of winding up its affairs, the
holders of the Class A Redeemable Preferred Shares will be entitled to receive from the
assets of the Corporation the Redemption Amount (as defined below) before any amount is
paid or any assets of the Corporation are distributed to the holders of any Common Shares,
Preferred Shares or shares of any other class ranking junior to the Class A Redeemable
Preferred Shares. After payment to the holders of the Class A Redeemable Preferred Shares
of the amount so payable to them as above the holders of the Class A Redeemable Preferred
Shares will not be entitled to receive any further assets of the Corporation in any further
distribution of assets of the Corporation among its shareholders for the purpose of winding
up its affairs.
	 
	 	(iii)	 	Redemption by Corporation: The Corporation shall, subject to the requirements of the
Business Corporations Act (Alberta), at the time specified in articles of arrangement of
the Corporation in respect of which this Schedule “A” is incorporated, redeem each Class A
Redeemable Preferred Share in accordance with the plan of arrangement forming part of such
articles of arrangement and distribute to the holder of the Class A Redeemable Preferred
Shares the assets of the Corporation specified therein in such plan of arrangement (the
“Redemption Amount”). No notice of redemption or other act or formality on the part of the
Corporation shall be required to call the Class A Redeemable Preferred Shares for
redemption.
	 
	 	(iv)	 	Voting Rights: The holders of the Class A Redeemable Preferred Shares will be entitled
to receive notice of and to attend any annual or special meetings of the shareholders of
the Corporation and will be entitled to vote in respect of any Class A Redeemable Preferred
Share held as at any such meetings.

A-15

 

Schedule “B” — Amalco Share Terms

1. COMMON SHARES

Subject to the rights of any class of shares that are expressed to rank prior to them, the Common
Shares shall have the following rights, privileges, restrictions and conditions:

(a) Payment of Dividends

The holders of the Common Shares shall be entitled to receive dividends if, as and when declared by
the Board of Directors of the Corporation out of the assets of the Corporation properly applicable
to the payment of dividends in such amounts and payable in such manner as the Board of Directors
may from time to time determine. Subject to the rights of the holders of any other class of shares
of the Corporation entitled to receive dividends in priority to or rateably with the holders of the
Common Shares, the Board of Directors may in their sole discretion declare dividends on the Common
Shares to the exclusion of any other class of shares of the Corporation.

(b) Participation upon Liquidation, Dissolution or Winding-Up

In the event of the liquidation, dissolution or winding-up of the Corporation or other distribution
of assets of the Corporation among its shareholders for the purpose of winding-up its affairs, the
holders of the Common Shares shall, subject to the rights of the holders of any other class of
shares of the Corporation entitled to receive the assets of the Corporation upon such a
distribution in priority to or rateably with the holders of the Common Shares, be entitled to
participate rateably in any distribution of the assets of the Corporation.

(c) Voting Rights

The holders of the Common Shares shall be entitled to receive notice of and to attend all annual
and special meetings of the shareholders of the Corporation and to one (1) vote in respect of each
Common Share held at all such meetings.

2. PREFERENCE SHARES

Subject to the rights of any class of shares that are expressed to rank prior to them, the
Preference Shares shall have the following rights, privileges, restrictions and conditions:

(a) Directors’ Rights to Issue in One or More Series

The Preference Shares may at any time or from time to time be issued in one or more series, each
series to consist of such number of shares as may, before the issue thereof, be determined by
resolution of the Board of Directors of the Corporation.

(b) Directors to Fix Terms of Each Series

The Board of Directors of the Corporation shall (subject as hereinafter provided) by resolution
fix, from time to time, before the issue thereof, the rights, privileges, restrictions and
conditions attaching to the Preference Shares of each series including, without limiting the
generality of the foregoing, the rate or amount of dividends or the method of calculating
dividends, the dates of payment thereof, the redemption and/or purchase prices and terms and
conditions of redemption and/or purchase, any conversion rights and any sinking fund or other
provisions, the whole to be subject to the issue of a certificate of amendment setting forth the
rights, privileges, restrictions and conditions attaching to the Preference Shares of such series.

A-16

 

(c) Ranking of Preference Shares.

The Preference Shares of each series shall, with respect to the payment of dividends and the
distribution of assets in the event of liquidation, dissolution or winding-up of the Corporation,
whether voluntary or involuntary, or any other distribution of the assets of the Corporation among
its shareholders for the purpose of winding up its affairs, rank on a parity with the Preference
Shares of every other series and be entitled to priority over the Common Shares and over any other
shares of the Corporation ranking junior to the Preference Shares. The Preference Shares of any
series may also be given such other preferences, not inconsistent with provisions hereof, over the
Common Shares and over any other shares of the Corporation ranking junior to the Preference Shares
as may be fixed in accordance with paragraph 2(a) hereof.

(d) Liquidation, Dissolution and Winding-Up Rights

In the event of the liquidation, dissolution, winding-up or other distribution of assets of the
Corporation, the holders of the Preference Shares will be entitled to receive the amount paid up
thereon together with all accrued and unpaid dividends, whether or not earned or declared, the
whole before any amount shall be paid to holders of the Common Shares and any other shares of the
Corporation ranking junior to the Preference Shares.

(e) Voting Rights

Except as required by law, the holders of the Preference Shares shall not be entitled to receive
notice of nor to attend any meetings of the shareholders of the Corporation and shall not be
entitled to vote thereat.

A-17

 

EXHIBIT B

FORM OF INDEMNITY AGREEMENT

THIS INDEMNITY AGREEMENT is dated as of the • day of •, 2010,

AMONG:

	 	 	 	GAMEHOST INC. (hereinafter referred to as “Old Onco”), a corporation subsisting
under the Laws of the Province of Alberta and successor to the business of Gamehost
Income Fund (“Gamehost”)

AND:

	 	 	 	ONCOTHYREON INC., a corporation subsisting under the Laws of the State of Delaware
(hereinafter referred to as “Onco US”); and
	 
	 	 	 	1517680 ALBERTA ULC (hereinafter referred to as “New Onco”), an unlimited liability
corporation subsisting under the Laws of the Province of Alberta and successor to
the business of each of Oncothyreon Canada Inc. (“Onco Alberta”) and 0811769 B.C.
ULC (“Onco BC”)

WHEREAS:

	A.	 	Gamehost, Onco US, Onco Alberta and Onco BC are parties to an arrangement agreement (the
“Arrangement Agreement”) dated February 17, 2010 pursuant to which the Parties (defined below)
to this agreement (the “Agreement”) will engage in an arrangement of Onco Alberta and Onco BC
(the “Arrangement”) under the provisions of the Business Corporations Act (Alberta);
	 
	B.	 	It was a condition of the Arrangement Agreement that the Parties enter into this Agreement in
connection with the Arrangement; and
	 
	C.	 	The Parties have entered into this Agreement in connection with, and as one of the steps of,
the Arrangement.

NOW THEREFORE, in consideration of the covenants and agreements herein contained and other good and
valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Parties
do hereby covenant and agree as follows:

ARTICLE 1

DEFINITIONS

1.1 Definitions

Capitalized terms used but not defined herein have the meaning ascribed thereto in the Arrangement
Agreement. In this Agreement, unless there is something in the context or subject matter
inconsistent therewith, the following defined terms have the meanings hereinafter set forth:

“20 Day Period” has the meaning ascribed thereto in Section 3.2(b)(i);

“Arrangement Agreement” has the meaning ascribed to in the first recital above;

B-1

 

“Assessment” has the meaning ascribed thereto in Section 3.1(c);

“CRA” means the Canada Revenue Agency;

“Indemnified Party” has the meaning ascribed thereto in Section 3.2(a);

“Indemnifying Party” has the meaning ascribed thereto in Section 3.2(a);

“Losses” means, in respect of any and all matters, all losses, liabilities, claims, costs, damages,
expenses, charges, fines, penalties, interest charges, assessments or other liabilities whatsoever
(including legal fees and disbursements on a solicitor and client basis and fees and disbursements
of experts) arising out of, resulting from, attributable to or connected with such matter;

“Materiality Representations and Warranties” means the representations and warranties in Sections
4.1 and 4.2 of the Arrangement Agreement that are subject to “materiality”, “material”, “Material
Adverse Effect” or “Material Adverse Change” or similar qualifications, if any;

“New Onco Surviving Agreement Default” has the meaning ascribed thereto in Section 2.1;

“Notice of Claim” means a notice in writing by a Party of a claim for Losses pursuant to this
Agreement;

“Old Onco Surviving Agreement Default” has the meaning ascribed thereto in Section 2.2;

“Other Claim” has the meaning ascribed thereto in Section 3.2(i);

“Parties” means, collectively, the parties to this Agreement, and “Party” means any one of them;

“Statement” has the meaning ascribed thereto in Section 3.1(c);

“Surviving Agreement Default” means an Old Onco Surviving Agreement Default or a New Onco Surviving
Agreement Default, as the case may be;

“Tax Default Indemnity Amount” means the amount of indemnity to which Old Onco is entitled under
this Agreement as a result of a Tax Loss;

“Tax Indemnity Issue” means any issue in respect of which there may be Tax Losses;

“Tax Losses” means Taxes, the liability for which constitutes a New Onco Surviving Agreement
Default;

“Third Party” has the meaning ascribed thereto in Section 3.2(f); and

“Third Party (Non-Tax) Claim” has the meaning ascribed thereto in Section 3.2(a).

B-2

 

ARTICLE 2

LIABILITY AND INDEMNITY

2.1 General Indemnity of New Onco

Subject to the limitations set out in this Agreement, Onco US and New Onco will be jointly and
severally liable to Old Onco for all Losses which it may suffer, sustain, pay or incur, and will
indemnify and hold Old Onco harmless from and against all Losses which may be brought against or
suffered by Old Onco or which Old Onco may suffer, sustain, pay or incur arising out of, resulting
from, attributable to or connected with:

	(a)	 	any debts, liabilities, commitments or obligations of any nature (whether matured or
unmatured, accrued, fixed, contingent or otherwise) of any kind whatsoever resulting from any
matters, actions, events, facts or circumstances related to the activities, affairs or
business of Onco Alberta or Onco BC, or any of their Subsidiaries, which occurred prior to
Effective Time, including without limitation, as a result of:

	 	(i)	 	Claims relating to the Intellectual Property of any of them or the activity of
any of them and/or of their Subsidiaries in relation to the Intellectual Property,
including without limitation the development, reproduction, use, and sale or
distribution, of all or any part thereof, which infringes upon, or misappropriates, the
Intellectual Property Rights of any third Person;
	 
	 	(ii)	 	Claims relating to Taxes of any of them for any period of time prior to
Effective Time;
	 
	 	(iii)	 	Claims related to any public disclosure of Onco Alberta, including without
limitation the Onco Alberta Public Record and any disclosure relating to Onco US, Onco
BC, Onco Alberta or any of their Subsidiaries included in Gamehost Information Circular
(based on information provided by or approved by Onco US), for any period of time prior
to Effective Time;
	 
	 	(iv)	 	any violation of Applicable Laws, including without limitation applicable
Canadian Securities Laws or US Securities Laws, that occurred prior to Effective Time;
	 
	 	(v)	 	any failure to materially comply with the terms of any agreements, contracts,
indentures, licenses, permits, approvals to which it is or was party or which it is or
was subject to, or which has been entered into on its behalf or its constating
documents;
	 
	 	(vi)	 	Claims relating to the operation, performance, warranty, maintenance, service,
malfunction or liability of its products prior to Effective Time;
	 
	 	(vii)	 	Claims relating to workers’ compensation, including without limitation,
premiums in Canada or the United States;
	 
	 	(viii)	 	Claims relating to personal injuries or property damage; or
	 
	 	(ix)	 	Claims relating to violations of Environmental Laws or the release of Hazardous
Substances;

	(b)	 	any debts, liabilities, commitments or obligations of any nature (whether matured or
unmatured, accrued, fixed, contingent or otherwise) of any kind whatsoever resulting from any
matters, actions, events, facts or circumstances related to the activities, affairs or
business of Onco US or New Onco which occur on or after the Effective Time; and
	 
	(c)	 	any breach (including any failure or inaccuracy) of any of the representations and warranties
of Onco US, Onco Alberta or Onco BC contemplated under the Arrangement Agreement (including
the representation and warranty contemplated by Section 4.2(i)(vii) of the Arrangement
Agreement), or any failure of Onco US, Onco Alberta or Onco BC to perform or observe any
covenant or agreement to be performed by it under the Arrangement Agreement (excluding any

B-3

 

post-closing obligations relating to the transactions contemplated in the
Divestiture Agreement executed on closing of the Arrangement) as though such
representations, warranties, covenants and agreements survived the closing of
the Arrangement; provided, however, that for such purposes, the Materiality
Representations and Warranties shall be read and construed without reference to
the “materiality”, “material”, “Material Adverse Effect” or “Material Adverse
Change” and similar qualifications used therein;

(any of such circumstances referred to herein as a “New Onco Surviving Agreement Default”).

	2.2	 	Liability and Indemnity of Old Onco

Old Onco will be liable to Onco US and New Onco for all Losses which they may suffer, sustain, pay
or incur and will indemnify and hold Onco US and New Onco harmless from and against all Losses
which may be brought against or suffered by Onco US or New Onco or which they may suffer, sustain
or incur arising out of, resulting from, attributable to or connected with:

	(a)	 	any breach (including any failure or inaccuracy) of any of the representations and warranties
of Gamehost under the Arrangement Agreement or any failure of Gamehost to perform or observe
any covenant or agreement to be performed by it under the Arrangement Agreement as though such
representations, warranties, covenants and agreements survived the closing of the Arrangement;
provided, however, that for such purposes, the Materiality Representations and Warranties
shall be read and construed without reference to the “materiality”, “material”, “Material
Adverse Effect” or “Material Adverse Change” and similar qualifications used therein; and
	 
	(b)	 	any failure of Old Onco to perform or observe any post-closing covenant or agreement to be
performed by it under the Divestiture Agreement,

(any of such circumstances referred to herein as an “Old Onco Surviving Agreement Default”).

	2.3	 	Limitations

	(a)	 	No Party shall have any liability in connection with a Surviving Agreement Default unless the
Party or Parties claiming against such Party shall have delivered to such first-mentioned
Party a Notice of Claim respecting such Surviving Agreement Default within two years from the
date hereof. For greater certainty, a claim for Losses made under this Agreement for which a
Notice of Claim has been given shall continue for the purpose of giving effect to the
liability and indemnity provisions of this Agreement relating to such claim and shall be
subject to limitations of action laws as provided for in Section 3.3.
	 
	(b)	 	Losses or compensation for which any Party is entitled to claim for under this Agreement
shall be reduced by: (i) any net tax benefit received or receivable or available to such
Party, where such net tax benefit is related to or arises as a consequence of such Losses or
compensation or the payment thereof; and (ii) the amount of such Losses that are actually
reimbursed by insurance proceeds, net of any co-payments and increased premiums resulting from
such Losses or compensation; provided, however, that the possibility of receipt of any such
insurance proceeds shall not delay or reduce any Party’s obligations to pay in full such
Party’s liability and indemnity obligations under this Agreement when due (subject to
appropriate reimbursement to such Party if and when applicable insurance proceeds are actually
received as above contemplated). Upon making a full indemnity payment, a Party shall, to the
extent of the indemnity payment, be

B-4

 

	 	 	subrogated to all rights of the other Party against any third party in respect of such Claim
to which the indemnity payment relates.
	 
	(c)	 	No claims may be made by Old Onco relating to Taxes for any period prior to the Effective
Time if such Taxes arise or occur as a consequence of actions of Old Onco taken after the
Closing, including without limitation, the re-filing of any Tax return, making any election,
or making a different choice under GAAP.
	 
	(d)	 	The maximum aggregate liability of Onco US and New Onco, collectively, for a breach by Onco
US of the representation and warranty contemplated by Section 4.2(i)(vii) of the Arrangment
Agreement shall be $3,912,500.

ARTICLE 3

INDEMNITY PROCEDURES

	3.1	 	Procedure Regarding Tax Matters
	 
	(a)	 	Without the written consent of Onco US, Old Onco shall not allow or permit any person to:

	 	(i)	 	waive any time limitation, statutory or otherwise, for any matter in respect of
which there may be a Tax Indemnity Issue; or
	 
	 	(ii)	 	request or initiate in any manner a review, ruling or opinion of any Tax
Indemnity Issue by a tax authority;

	 	 	in respect of any taxation year of Old Onco, or any of its predecessors, ending on or before
the Effective Time.
	 
	(b)	 	Old Onco shall use all reasonable efforts to inform Onco US promptly of any audit or other
inquiry from any tax authority relating to a Tax Indemnity Issue. Onco US shall have the
exclusive right at its own expense and employing counsel of their own choice to communicate
with the tax authorities on all matters relating to Tax Indemnity Issues.
	 
	(c)	 	Old Onco will, within 30 days after receiving an assessment, reassessment, confirmation or
appeal or other notice in writing with respect to any matter that relates to or may reasonably
be expected to relate to a Tax Indemnity Issue (each of which is hereinafter referred to as an
“Assessment”), deliver to Onco US a copy of the Assessment together with a statement (the
“Statement”) setting out an estimate of the Tax Default Indemnity Amount arising therefrom.
	 
	(d)	 	Onco US shall have the exclusive right, at its own expense and employing counsel of its own
choice to contest any Assessment to the extent that it relates to one or more Tax Indemnity
Issues (but only to such extent), provided that Onco US gives written notice to Old Onco
acknowledging liability under this Agreement with respect to such Assessment to the extent it
relates to such Tax Indemnity Issues and stating its intention to dispute or otherwise deal
with the Tax Indemnity Issues within 15 days of Onco US’s receipt of a copy of the Assessment
and the Statement in respect thereof and further provided that Onco US remits to the
appropriate tax authority on behalf of Old Onco the amount of Taxes in respect of Indemnity
Issues required to be remitted by virtue of the Assessment having regard to the challenge
thereof.
	 
	(e)	 	If Onco US elects to contest or otherwise deal with an Assessment to the extent that it
relates to a Tax Indemnity Issue and remits the required amount of Taxes as aforesaid, Old
Onco shall not

B-5

 

	 	 	take any action or agree to any settlement with a tax authority which pertains to such Tax
Indemnity Issue without the written consent of Onco US except as hereinafter provided.

	(f)	 	If Onco US elects to contest or otherwise deal with an Assessment insofar as it pertains to a
Tax Indemnity Issue and thereafter Old Onco, acting reasonably, determines that Onco US has
failed to settle or diligently prosecute such contest, Old Onco shall be entitled to take
carriage and control of the contest commencing on the fifth day after it has provided written
notice to Onco US of its intention to do so, unless, within that five day period, Onco US
settles or resumes the diligent prosecution of the challenge and, if Old Onco takes carriage
and control of the contest in accordance with this paragraph 3.1(f), Onco US shall be bound by
the results including any settlement obtained by Old Onco with respect to such Assessment as
it relates to the Tax Indemnity Issue.
	 
	(g)	 	If Onco US elects to contest or otherwise deal with an Assessment as it relates to one or
more Tax Indemnity Issues, Onco US shall be entitled to settle any Assessment as it relates to
such Tax Indemnity Issues upon obtaining the written consent of Old Onco which consent shall
not be unreasonably withheld or delayed, and making payment arrangements satisfactory to Old
Onco, acting reasonably, for the payment of Taxes that arise therefrom and remain outstanding.
	 
	(h)	 	If Onco US does not elect to contest or otherwise deal with an Assessment as it relates to
one or more Tax Indemnity Issues in the manner aforesaid or, having so elected, thereafter
fails to pursue diligently the settlement or prosecution of such contest, Onco US shall be
liable for the payment of all costs and expenses of the contest and for the reimbursement of
Old Onco for all such costs and expenses reasonably incurred by Old Onco.
	 
	(i)	 	If an Assessment relates to one or more Tax Indemnity Issues and to other issues, Old Onco
shall, at its own expense and employing counsel of its own choice, have full carriage and
control of the dispute of the portion of the Assessment relating to such other issues.
	 
	(j)	 	Old Onco and Onco US shall co-operate with each other with respect to all Tax Indemnity
Issues and shall keep each other reasonably informed of the status or conduct related to all
Tax Indemnity Issues.
	 
	(k)	 	If Onco US has provided security to a tax authority in respect of one or more Tax Indemnity
Issues and the tax authority subsequently surrenders the security to Old Onco, Old Onco shall
receive such security as a trustee for the benefit of Onco US and shall forthwith deliver such
security to Onco US.
	 
	3.2	 	Non-Tax Matters Procedure
	 
	(a)	 	A Party making a claim for Losses which it is entitled to claim for under this Agreement
(such Party is referred to in this Section 3.2 as the “Indemnified Party” and the Party liable
for such claim for Losses is referred to in this Section 3.2 as the “Indemnifying Party”) and
which relates to any claim of any third party other than a claim of a tax authority for Tax
Losses (a “Third Party (Non-Tax) Claim”) shall promptly provide a Notice of Claim relating to
such Third Party (Non-Tax) Claim to the Indemnifying Party, provided that any failure to so
notify the Indemnifying Party shall relieve the Indemnifying Party from liability hereunder
only to the extent that such failure shall have resulted in liability to the Indemnifying
Party that could have been avoided had such notice been provided within such time period.

B-6

 

	(b)	 	With respect to any Third Party (Non-Tax) Claim, the Indemnifying Party shall have the right,
at its expense, to assume carriage and control of the defence of the Third Party (Non-Tax)
Claim provided that:

	 	(i)	 	the Indemnifying Party gives written notice to the Indemnified Party within 20
days of receipt by the Indemnifying Party of the Notice of Claim with respect to such
Third Party (Non-Tax) Claim (the “20-Day Period”) acknowledging its obligation to
indemnify under this Agreement with respect to such Third Party (Non-Tax) Claim and
electing to assume such carriage and control; and
	 
	 	(ii)	 	the Indemnifying Party provides security satisfactory to the Indemnified Party,
acting reasonably, to sufficiently cover expected Losses relating to such Third Party
(Non- Tax) Claim.

	(c)	 	If within the 20-Day Period the Indemnifying Party advises the Indemnified Party that the
Indemnifying Party is unable, without further inquiry, to determine whether the Third Party
(Non-Tax) Claim is one in respect of which the Indemnifying Party is obligated to indemnify
under this Agreement, the Indemnifying Party shall have a further 20 days from the end of the
20-Day Period to elect to assume carriage and control of the defence of the Third Party
(Non-Tax) Claim by giving the written notice required by Section 3.2(b)(i) within such
additional 20-day period and complying with the requirements of Section 3.2(b)(i) with respect
to the Third Party (Non-Tax) Claim. Until such time as the Indemnifying Party assumes carriage
and control of the defence of the Third Party (Non-Tax) Claim as permitted in this
Section 3.2(c), the Indemnified Party shall have the right to assume carriage and control of
the defence of the Third Party (Non-Tax) Claim but shall not settle or pay the Claim without
the written consent of the Indemnifying Party. If the Indemnifying Party does not assume
control of a Claim as permitted in this Section 3.2(c), the obligation of the Indemnifying
Party to indemnify the Indemnified Party in respect of such Claim shall terminate if the
Indemnified Party settles such Claim without the consent of the Indemnifying Party.
	 
	(d)	 	If the Indemnifying Party elects to assume such carriage and control in the manner aforesaid,
the Indemnified Party shall have the right to participate in the negotiation, settlement or
defence of such Third Party (Non-Tax) Claim and to retain counsel to act on its behalf,
provided that the fees and disbursements of such counsel shall be paid by the Indemnified
Party unless the Indemnifying Party consents to the retention of such counsel or unless the
named parties to any action or proceeding include both the Indemnifying Party and the
Indemnified Party and a representation of both the Indemnifying Party and the Indemnified
Party by the same counsel would be inappropriate due to the actual or potential differing
interests between them (such as the availability of different defences).
	 
	(e)	 	If the Indemnifying Party does not elect to assume carriage and control of the defence of the
Third Party (Non-Tax) Claim in the manner aforesaid, the Indemnified Party shall be entitled
to assume such carriage and control of the Third Party (Non-Tax) Claim. If the Indemnifying
Party, having elected to assume such carriage and control, thereafter fails to defend the
Third Party (Non-Tax) Claim within a reasonable time or fails to diligently prosecute such
defence, the Indemnified Party shall be entitled to assume such carriage and control of the
defence of the Third Party (Non-Tax) Claim commencing on the fifth (5th) day following the
provision of written notice to the Indemnifying Party if such failure is then continuing. If
the Indemnified Party assumes carriage and control of the defence of the Third Party (Non-Tax)
Claim as permitted in this Section 3.2 (including as contemplated by Section 3.2(c), this
Section 3.2(e) or Section 3.2(f), the Indemnifying Party shall be bound by the results
obtained by the Indemnified

B-7

 

	 	 	Party with respect to such Third Party (Non-Tax) Claim, and the Indemnifying Party shall be
jointly and severally liable for the payment of all costs and expenses of the defence of
such Third Party (Non-Tax) Claim and shall reimburse the Indemnified Party for all such
costs and expenses subject to the limitations set out in this Agreement.

	(f)	 	If any Third Party (Non-Tax) Claim is of a nature such that the Indemnified Party is required
by Applicable Law to make a payment to any person (a “Third Party”) with respect to the Third
Party (Non-Tax) Claim before the completion of settlement negotiations or related legal
proceedings or in order to continue or preserve any defence, objection or legal proceeding
relating to the Third Party (Non-Tax) Claim, the Indemnifying Party shall make such payment.
If the Indemnifying Party fails to make such payment, (i) the Indemnified Party may make such
payment and the Indemnifying Party shall, forthwith after demand by the Indemnified Party,
reimburse the Indemnified Party for such payment subject to the limitations set out in this
Agreement, and (ii) if the Indemnifying Party has carriage and control of the defence of the
Third Party (Non-Tax) Claim, the Indemnified Party shall be entitled to assume such carriage
and control. If the amount of any liability of the Indemnified Party under the Third Party
(Non-Tax) Claim in respect of which such a payment was made, as finally determined, is less
than the amount that was paid by the Indemnifying Party to the Indemnified Party, the
Indemnified Party shall, forthwith after receipt of the difference from the Third Party, pay
the amount of such difference to the Indemnifying Party subject to the limitations set out in
this Agreement.
	 
	(g)	 	Except for a full and complete settlement of a Third Party (Non-Tax) Claim that involves the
payment of money only and is paid in full by the Indemnifying Party and where there is no
finding or admission of wrongdoing or violation of law by the Indemnified Party and no adverse
effect on any other claims that may be made against the Indemnified Party or on the defence of
any Third Party (Non-Tax) Claim, the Indemnifying Party shall not settle any Third Party
(Non-Tax) Claim without the written consent of the Indemnified Party, which consent shall not
be unreasonably withheld or delayed.
	 
	(h)	 	The Indemnified Party and the Indemnifying Party shall co-operate fully with each other with
respect to Third Party (Non-Tax) Claims, and shall keep each other fully advised with respect
thereto (including supplying copies of all relevant documentation promptly as it becomes
available).
	 
	(i)	 	With respect to any claim for Losses by an Indemnified Party (referred to herein as an “Other
Claim”) under this Agreement which is not related to either a Third Party (Non-Tax) Claim or a
claim by a tax authority for Tax Losses, the Indemnified Party shall give written notice of
such Other Claim to the Indemnifying Party promptly after the Indemnified Party has reasonably
determined the existence of such Other Claim. The Indemnifying Party shall have 20 days from
receipt of such notice to either acknowledge an obligation to indemnify for such Other Claim
or dispute liability for such Other Claim by notice in writing to the Indemnified Party, such
dispute shall be resolved by a court of competent jurisdiction.
	 
	3.3	 	Extension — Limitations Act

It is expressly agreed by the Parties, as permitted by the Limitations Act (Alberta) and all other
applicable limitations legislation, to extend the limitation period in respect of any liability and
indemnity obligations under this Agreement for a Surviving Agreement Default for two years after
the date on which the Notice of Claim was given with respect to such liability and indemnity
obligations in respect of a Surviving Agreement Default.

B-8

 

	3.4	 	Access to Books and Records and Cooperation

If the Tax Returns referred to below have not been filed prior to the closing of the Arrangement as
contemplated in the Arrangement Agreement, as soon as reasonably practicable after the closing of
the Arrangement and in any event no later than 60 days after closing of the Arrangement, Onco US
shall, at its expense but with the commercially reasonable assistance and cooperation of Old Onco,
prepare the Tax Returns for Onco BC and Onco Alberta for the year ended December 31, 2009. Onco US
shall diligently prepare such Tax Returns in accordance with applicable Laws and consistent with
past practice, and, if prudent to do so, seek professional assistance and advice from an accounting
firm in order to prepare such returns. Onco US and New Onco shall provide Old Onco with full access
(during normal business hours and upon reasonable notice) to the Onco Books and Records and the
then current employees of Onco US, and will fully cooperate and assist Old Onco so that the
employees of Old Onco understand the basis on which such return was prepared and they are able to
responsibly execute and file such return, including without limitation, providing copies or
originals of any information in the Onco Books and Records which are required to prepare such Tax
Returns. Old Onco shall be responsible for reviewing the returns and, if acceptable, filing such
returns as required under applicable Laws.

Onco US and New Onco agree to provide access and support in respect of Onco Books and Records and
to the then current employees of Onco US and New Onco and will fully cooperate and assist Old Onco
so that Old Onco can reasonably defend any litigation, claim or dispute or respond to any
assessment, reassessment, confirmation, appeal or other inquiry in respect of Taxes of Old Onco or
file any required Tax Returns or make any other filings which reasonably require access to, or an
understanding of, the Onco Books and Records. Onco US agrees that such Onco Books and Records will
be maintained and kept available for retrieval until the destruction of such data by such Party in
accordance with its standard data retention policies as applicable from time to time, provided that
such destruction shall not take place for a period of at least ten (10) years or such longer period
as may be required by applicable legislation.

	3.5	 	Copies of Books and Records

Within 5 Business Days of the date of a written request by Old Onco, Onco US and New Onco will
provide Old Onco with copies of any of the Onco Books and Records reasonably requested by Old Onco.

	3.6	 	Mitigation

Nothing in this Agreement shall in any way restrict or limit the general obligation at law of a
Party to mitigate any Loss or other amount which it may suffer or incur by reason of a Surviving
Agreement Default under this Agreement. If any Claim or amount to be compensated can be reduced by
any recovery, settlement or otherwise under or pursuant to any insurance coverage, or pursuant to
any claim, recovery, settlement or payment by or against any other Person, a Party shall take all
appropriate steps to enforce such recovery, settlement or payment. If the Party entitled to claim
under this Agreement fails to make all commercially reasonable efforts to mitigate any Loss or
other amount to be compensated then the other Party shall not be required to indemnify or
compensate such Party for the Loss or other amount that could have been avoided if the Party had
made such efforts.

B-9

 

ARTICLE 4

NOTICES

	4.1	 	Notices

All notices that may or are required to be given pursuant to any provision of this Agreement are to
be given or made in writing and served personally or sent by telecopy or e-mail:

	(a)	 	in the case of Old Onco, to:

Gamehost Inc.

400, 4406 – 50th Avenue

Red Deer, AB T4N 3Z5

Facsimile: (403) 340-0683

E-mail: djwill@gamehost.ca

Attention: Vice President

with a copy to:

Shea Nerland Calnan LLP

2800, 715-5th Avenue SW

Calgary, Alberta T2P 2X6

Facsimile: (403) 299-9601

E-mail: jbrennan@snclaw.com

Attention: Joe Brennan

	(b)	 	in the case of Onco US or New Onco, to:

c/o Oncothyreon Inc.

2601 Fourth Avenue, Suite 500

Seattle, WA 98121

Facsimile: (206) 801-2111

E-mail: rkirkman@oncothyreon.com

Attention: Dr. Robert L. Kirkman President and CEO

with a copy to:

Fraser Milner Casgrain LLP

2900, 10180-101 Street

Edmonton, AB, T5J 3V5

Facsimile: (780) 423-7276

E-mail: michael.obert@fmc-law.com

Attention: Michael Obert

or such other address as the Parties may, from time to time, advise to the other Parties hereto by
notice in writing. The date or time of receipt of any such notice will be deemed to be the date of
delivery or the time such telecopy or e-mail is received.

B-10

 

ARTICLE 5

GENERAL

	5.1	 	Binding Effect

This Agreement shall be binding upon and enure to the benefit of the Parties.

	5.2	 	Assignment

No Party to this Agreement may assign any of its rights or obligations under this Agreement without
prior written consent of the Other Party.

	5.3	 	Severability

If any one or more of the provisions or parts thereof contained in this Agreement should be or
become invalid, illegal or unenforceable in any respect in any jurisdiction, the remaining
provisions or parts thereof contained herein shall be and shall be conclusively deemed to be, as to
such jurisdiction, severable therefrom and:

	(a)	 	the validity, legality or enforceability of such remaining provisions or parts thereof shall
not in any way be affected or impaired by the severance of the provisions or parts thereof
severed; and
	 
	(b)	 	the invalidity, illegality or unenforceability of any provision or part thereof contained in
this Agreement in any jurisdiction shall not affect or impair such provision or part thereof
or any other provisions of this Agreement in any other jurisdiction.

	5.4	 	Further Assurances

Each Party hereto shall, from time to time and at all times hereafter, at the request of the Other
Party hereto, but without further consideration, do all such further acts, and execute and deliver
all such further documents and instruments as may be reasonably required in order to fully perform
and carry out the terms and intent hereof.

	5.5	 	Time of Essence

Time shall be of the essence of this Agreement.

	5.6	 	Governing Law

This Agreement shall be governed by and construed in accordance with the Laws of the Province of
Alberta and the Parties hereto irrevocably attorn to the jurisdiction of the courts of the Province
of Alberta.

	5.7	 	Waiver

No waiver by any Party shall be effective unless in writing and any waiver shall affect only the
matter, and the occurrence thereof, specifically identified and shall not extend to any other
matter or occurrence.

B-11

 

	5.8	 	Counterparts

This Agreement may be executed by facsimile or other electronic signature and in counterparts, each
of which shall be deemed an original, and all of which together constitute one and the same
instrument.

IN WITNESS WHEREOF the Parties have executed this Agreement as of the date first above written.

	 	 	 	 	 	 	 
	GAMEHOST INC.	 	ONCOTHYREON INC.
	 
	 	 	 	 	 	 
	Per:

	 	 	 	Per:	 	 
	 

	 	 
	 	 	 	 
	 

	 	David J. Will
	 	 	 	 Robert L. Kirkman, MD
	 

	 	President and CEO
	 	 	 	President and CEO
	 
	 	 	 	 	 	 
	Per:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Darcy J. Will	 	 	 	 
	 

	 	Vice President	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	1517680 ALBERTA ULC
	 
	 	 	 	 	 	 
	 

	 	 	 	Per:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 Robert L. Kirkman, MD
	 

	 	 	 	 	 	 President

B-12

 

EXHIBIT C

REQUIRED APPROVALS

	1.	 	Onco Required Approvals
	 
	 	 	Nil
	 
	2.	 	Gamehost Required Approvals

	(a)	 	Consents of Regulatory Authorities To The Arrangement and the Transactions Contemplated
Thereby:
	 
	 	 	Consent of the Alberta Liquor and Gaming Commission to the Arrangement
	 
	(b)	 	Consents of Third Parties Under Material Contracts To The Arrangement and the Transactions
Contemplated Thereby:

	 	•	 	Consent of the various landlords under lease agreements for the material properties of
Gamehost and its Subsidiaries (other than those owned by Gamehost and its Subsidiaries)
including:

	 	a.	 	Head Office (located in Red Deer, Alberta); and
	 
	 	b.	 	Boomtown Casino (located in Fort McMurray, Alberta)

	 	•	 	Consent of the equipment providers under various equipment rental agreements for the
material equipment located at the material properties of Gamehost and its Subsidiaries
including:

	 	a.	 	Equipment Rental Agreement (Boomtown);
	 
	 	b.	 	Equipment Rental Agreement (Deerfoot JV); and
	 
	 	c.	 	Equipment Rental Agreement (Great Northern).

	(c)	 	Consent of Lenders To The Arrangement and the Transactions Contemplated Thereby:
	 
	 	 	Consent of the primary lender to Gamehost (and its Subsidiaries), being Canadian Western
Bank, under its credit facilities with such lender.

C-1

 

EXHIBIT D

FORM OF GAMEHOST RESOLUTION

	 	 	BE IT RESOLVED AS A SPECIAL RESOLUTION THAT:
	 
	1.	 	With respect to the proposed arrangement (the “Arrangement #1”) under Section 193 of the
Business Corporations Act (Alberta) (the “ABCA”) involving Gamehost Income Fund (“Gamehost”),
Oncothyreon Inc., Oncothyreon Canada Inc. and 0811769 B.C. ULC, among others:

	 	(a)	 	The Arrangement #1, as more particularly described and set forth in the
management information circular (the “Circular”) of Gamehost accompanying the notice of
this meeting (as the Arrangement #1 may be modified or amended), is hereby authorized,
approved and adopted;
	 
	 	(b)	 	The plan of arrangement as it may be or has been amended (the “Arrangement #1
Plan of Arrangement”), involving Gamehost, Oncothyreon Inc., Oncothyreon Canada Inc.
and 0811769 B.C. ULC, among others, the full text of which is set out in Exhibit “A” to
the arrangement agreement dated February 17, 2010 among Gamehost, Oncothyreon Inc.,
Oncothyreon Canada Inc. and 0811769 B.C. ULC (the “Arrangement Agreement #1”), is
hereby approved and adopted;
	 
	 	(c)	 	The Arrangement Agreement #1, the actions of the trustees of Gamehost in
approving the Arrangement #1 and the Arrangement Agreement #1, and the actions of the
directors and officers of Gamehost Management Inc. (“GMI”) in its capacity as
administrator of Gamehost in executing and delivering the Arrangement Agreement #1 and
any amendments thereto, are hereby ratified and approved;
	 
	 	(d)	 	Notwithstanding that this resolution has been passed (and the Arrangement #1
adopted) by the security holders of Gamehost (including the holders of exchangeable
securities) or that the Arrangement #1 has been approved by the Court of Queen’s Bench
of Alberta, the trustees of Gamehost, or the directors of GMI, in GMI’s capacity as
administrator of Gamehost, are hereby authorized and empowered, at their discretion,
without further notice to or approval of the security holders of Gamehost (including
the holders of exchangeable securities): (i) to amend the Arrangement Agreement #1
and/or the Arrangement Agreement #1 Plan of Arrangement, to the extent permitted by the
terms of the Arrangement Agreement #1, as applicable, and (ii) subject to the terms of
the Arrangement Agreement #1 to not proceed with the Arrangement #1 or any portion
thereof.
	 
	 	(e)	 	Any trustee or officer of Gamehost, or any officer or director of GMI, in GMI’s
capacity as administrator of Gamehost, is hereby authorized and directed for and on
behalf of Gamehost or GMI, as applicable, to execute and deliver articles of
arrangement and such other documents as are necessary or desirable to: (i) the
Registrar under the ABCA, (ii) any applicable securities regulatory authority,
(iii) any stock exchange or market, or (iv) other third party, in accordance with the
Arrangement Agreement #1, as applicable, and any transaction or agreement contemplated
therein.

	2.	 	Should the Arrangement #1 contemplated above not be capable of being completed due to a
termination of Arrangement Agreement #1 on its terms, with respect to the proposed arrangement

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	 	 	(the “Arrangement #2”) under Section 193 of the Business Corporations Act (Alberta) (the
“ABCA”) involving Gamehost and [insert name of the corporation to be incorporated by Gamehost
prior to the date of the Circular for the purpose of completing Arrangement #2], among others:

	 	(a)	 	The Arrangement #2, as more particularly described and set forth in the
Circular of Gamehost accompanying the notice of this meeting (as the Arrangement #2 may
be modified or amended), is hereby authorized, approved and adopted;
	 
	 	(b)	 	The plan of arrangement as it may be or has been amended (the “Arrangement #2
Plan of Arrangement”), involving Gamehost and [insert name of the corporation to be
incorporated by Gamehost prior to the implementation of Arrangement #2 for the purpose
of completing Arrangement #2], among others, the full text of which is set out in
Exhibit “A” to the arrangement agreement dated [insert date of agreement which will be
prior to the date of the Circular] among Gamehost and [insert name of the corporation
to be incorporated by Gamehost prior to the implementation of Arrangement #2 for the
purpose of completing Arrangement #2] (the “Arrangement Agreement #2”), is hereby
approved and adopted;
	 
	 	(c)	 	The Arrangement Agreement #2, the actions of the trustees of Gamehost in
approving the Arrangement #2 and the Arrangement Agreement #2, and the actions of the
directors and officers of GMI in its capacity as administrator of Gamehost in executing
and delivering the Arrangement Agreement #2 and any amendments thereto, are hereby
ratified and approved;
	 
	 	(d)	 	Notwithstanding that this resolution has been passed (and the Arrangement #2
adopted) by the security holders of Gamehost (including the holders of exchangeable
securities) or that the Arrangement #2 has been approved by the Court of Queen’s Bench
of Alberta, the trustees of Gamehost, or the directors of GMI, in GMI’s capacity as
administrator of Gamehost, are hereby authorized and empowered, at their discretion,
without further notice to or approval of the security holders of Gamehost (including
the holders of exchangeable securities): (i) to amend the Arrangement Agreement #2
and/or the Arrangement Agreement #2 Plan of Arrangement, to the extent permitted by the
terms of the Arrangement Agreement #2, as applicable, and (ii) subject to the terms of
the Arrangement Agreement #2 to not proceed with the Arrangement #2 or any portion
thereof.
	 
	 	(e)	 	The trustees of Gamehost, or any officer or director of GMI, in GMI’s capacity
as administrator of Gamehost, is hereby authorized and directed for and on behalf of
Gamehost or GMI, as applicable, to execute and deliver articles of arrangement and such
other documents as are necessary or desirable to: (i) the Registrar under the ABCA,
(ii) any applicable securities regulatory authority, (iii) any stock exchange or
market, or (iv) other third party, in accordance with the Arrangement Agreement #2, as
applicable, and any transaction or agreement contemplated therein.

	3.	 	Any trustee or officer of Gamehost, or any officer or director of GMI, in GMI’s capacity as
administrator of Gamehost, is hereby authorized and directed for and on behalf of Gamehost or
GMI, as applicable, to execute or cause to be executed and to deliver or cause to be
delivered, all such other documents and instruments and to perform or cause to be performed
all such other acts and things as in such person’s opinion may be necessary or desirable to give full effect to
the foregoing as contemplated in this resolution and the matters authorized hereby, such
determination to be conclusively evidenced by the execution and delivery of such document,
agreement or instrument or the doing of any such act or thing.

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EXHIBIT E

FORM OF DIVESTITURE AGREEMENT

DIVESTITURE AGREEMENT AND INSTRUMENT OF CONVEYANCE

among

[ONCO ALBERTA] and [ONCO BC]

and

1518025 ALBERTA ULC

intervened to by

GAMEHOST INCOME FUND

and

1517680 ALBERTA ULC

 

Made as of •, 2010

 

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DIVESTITURE AGREEMENT AND INSTRUMENT OF CONVEYANCE

	 	 	THIS AGREEMENT is made as of •, 2010,

AMONG:

	 	 	[ONCO ALBERTA], an unlimited liability corporation subsisting under the Laws of the Province
of Alberta (hereinafter referred to as “Onco Alberta”)

and

	 	 	[ONCO BC], a corporation subsisting under the Laws of the Province of Alberta (hereinafter
referred to as “Onco BC” and, collectively with Onco Alberta, the “Vendors”)

AND

		 	1518025 ALBERTA ULC, an unlimited liability corporation subsisting under the Laws of the
Province of Alberta (hereinafter referred to as the “Purchaser”)

INTERVENED TO BY:

	 	 	GAMEHOST INCOME FUND, a trust created under the Laws of the Province of Alberta (hereinafter
referred to as “Gamehost”)

and

	 	 	1517680 ALBERTA ULC, an unlimited liability corporation subsisting under the Laws of the
Province of Alberta (hereinafter referred to as “New Onco”)

WHEREAS:

	 	1.	 	Onco Alberta is a biotechnology company;
	 
	 	2.	 	Onco BC is a holding company that owns all of the issued and outstanding shares
of Onco Alberta;
	 
	 	3.	 	it was a term of the Arrangement Agreement (as defined below) that the Parties
enter into this Agreement;
	 
	 	4.	 	the Vendors desires to sell to the Purchaser, and the Purchaser desires to
purchase from the Vendors, all of the Assets (as defined below); and
	 
	 	5.	 	the Purchaser desires to assume and thereafter be bound by all of the Assumed
Liabilities (as defined below) on the terms and conditions set forth herein;

NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the respective covenants and
agreements herein contained and for other good and valuable consideration (the receipt and
sufficiency of which are hereby acknowledged), the Parties agree as follows:

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SECTION 1

DEFINITIONS AND INTERPRETATION

1.1 Definitions

In this Agreement, including the recitals hereto, unless there is something in the subject matter
or context inconsistent therewith, the following terms shall have the following meanings,
respectively:

	 	1.1.1	 	“ABCA” means the Business Corporations Act (Alberta), as amended, including
the regulations promulgated thereunder;
	 
	 	1.1.2	 	“Agreement” means this divestiture agreement and instrument of conveyance,
including its recitals and schedules, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with the terms hereof;
	 
	 	1.1.3	 	“Applicable Laws” means, with respect to any Person, any domestic or foreign
federal, national, state, provincial, municipal or local law (statutory, common or
otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, order,
injunction, judgment, decree, ruling or other similar requirement enacted, adopted,
promulgated or applied by a Governmental Authority, as amended unless expressly
specified otherwise, that is binding upon or applicable to such Person;
	 
	 	1.1.4	 	“Arrangement” means an arrangement under Section 193 of the ABCA on the terms
and subject to the conditions set out in the Plan of Arrangement, subject to any
amendments or variations thereto made in accordance with Section 6.1 of the Arrangement
Agreement or Section 4.1 of the Plan of Arrangement or made at the direction of the
Court in the Final Order in accordance with the terms of the Arrangement Agreement;
	 
	 	1.1.5	 	“Arrangement Agreement” means the arrangement agreement entered into among
Gamehost, Onco US, Onco Alberta and Onco BC dated February 17, 2010 as the same may be
amended, supplemented or otherwise modified from time to time in accordance with its
terms, wherein the Vendors agreed to reorganize their business in accordance with the
terms set forth therein;
	 
	 	1.1.6	 	“Assets” means all of the properties, rights and other assets owned by the
Vendors immediately prior to the Effective Time whether real or personal, tangible or
intangible of every kind and description whatsoever and wherever situated and
including, for greater certainty, the following:

	 	(a)	 	all cash on hand and investment, and all proceeds received or
receivable thereon prior to the Effective Date;
	 
	 	(b)	 	all accounts receivable and the benefit of all security,
guarantees and other collateral held by the Vendors;
	 
	 	(c)	 	all rights to amounts payable to or receivable by the Vendors
in respect of refunds, reimbursements, overpayment of Tax (“Tax Receivables”),
including input tax credits under the Excise Tax Act (Canada) accruing on or
prior to the Effective Date. For greater certainty, the Purchaser shall be
entitled to the proceeds from all deemed payments on account of Tax payable
(scientific

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	 	 	 	research and experimental development refundable Tax credit) for the year
ending December 31, 2009 and all such deemed payments on account of Tax
payable (scientific research and experimental development refundable Tax
credit) earned or accrued on or before the Effective Time or as a
consequence of eligible expenses incurred prior to the Effective Time
whether or not the Vendors are in a position to use such credits against its
Taxes otherwise payable for its taxation year that includes the Effective
Date;

	 	(d)	 	all deposits and prepaid expenses;
	 
	 	(e)	 	all long term deposits;
	 
	 	(f)	 	all licenses, permits and other governmental registrations and
authorizations;
	 
	 	(g)	 	all inventory, machinery, tools, equipment, furniture,
furnishings, fixtures, parts, and all other miscellaneous tangible items;
	 
	 	(h)	 	all computer hardware and software, including all rights under
licenses and other agreements or instruments relating thereto;
	 
	 	(i)	 	all rights under leases of personal property, orders or
Contracts for the provision of goods or services (whether as buyer or seller),
distribution and agency agreements, employment, non-compete, confidentiality
and other Contracts;
	 
	 	(j)	 	all Assumed Contracts;
	 
	 	(k)	 	all Intellectual Property, including, the whole right, title
and interest, all rights of action resulting from prior infringement or other
unauthorized use and all rights as a party in opposition or similar
proceedings;
	 
	 	(l)	 	all books and records (other than those required by law to be
retained by the Vendors, copies of which shall be made available to the
Purchaser), including those that relate to any of the Assets, sales history,
production records, Vendors/supplier history, customer information and records
and any records pertaining to warranty claims, customer returns and how those
matters have been resolved;
	 
	 	(m)	 	all benefits under all insurance policies in respect of claims
based on occurrences on or prior to the Effective Time;
	 
	 	(n)	 	the full benefit of all warranties and warranty rights (express
or implied) against manufacturers or sellers;
	 
	 	(o)	 	all interests in any and all subsidiaries of the Vendors
(except as noted in the Excluded Assets), including but not limited to, shares,
rights to Intellectual Property, debt and claims;
	 
	 	(p)	 	all goodwill of the Business together with the exclusive right
for the Purchaser, as and from the Effective Time, to represent itself as
carrying on the Business in continuation of and in succession to the Vendors
and the right to use any words indicating that the said Business is so carried
on, including the Vendors’ rights to

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	 	 	 	use the name “Oncothyreon” or any variation thereof as part of the name or
style under which the Business is carried on by the Purchaser; and

	 	(q)	 	all shares of other corporations or interest in any partnership
owned by the Vendors (except as noted in the Excluded Assets) immediately prior
to the Effective Time;

	 	 	but specifically excluding the Excluded Assets.

	 	1.1.7	 	“Assumed Contracts” means all Contracts to which the Vendors are a party
immediately prior to the Effective Time;
	 
	 	1.1.8	 	“Assumed Liabilities” means all Liabilities of the Vendors accrued prior to
the Effective Time;
	 
	 	1.1.9	 	“Business” means the business of the Vendors immediately prior to the
Effective Time;
	 
	 	1.1.10	 	“Business Day” means a day, other than a Saturday, Sunday or other day on which
commercial banks in Calgary, Alberta or Edmonton, Alberta are closed;
	 
	 	1.1.11	 	“Gamehost” has the meaning set out on the first page of this Agreement;
	 
	 	1.1.12	 	“Claim” means any claim, action, demand, cause of action, suit, complaint,
proceeding, arbitration, judgment, settlement, award, assessment, re-assessment, order,
investigation, enquiry or hearing made or threatened;
	 
	 	1.1.13	 	“Closing Time” means the time specified in the Arrangement Agreement;
	 
	 	1.1.14	 	“Contract” means any agreement, indenture, contract, lease, trust agreement, license,
option, instrument or other commitment, whether written or oral;
	 
	 	1.1.15	 	“Court” means the Court of Queen’s Bench of Alberta;
	 
	 	1.1.16	 	“Disclosure Documents” has the meaning set out in Section 5.4;
	 
	 	1.1.17	 	“Effective Date” has the meaning ascribed thereto in the Plan of Arrangement;
	 
	 	1.1.18	 	“Effective Time” has the meaning ascribed thereto in the Plan of Arrangement;
	 
	 	1.1.19	 	“Excluded Assets” means the (i) benefit of the Tax Pools; (ii) any and all shares of
Onco Alberta owned by Onco BC; (iii) any and all shares New Onco owned by Onco BC
(which shall be dealt with in accordance of the terms of the Plan of Arrangement); and
(iii) any and all shares Onco Alberta Subco (as defined in the Arrangement Agreement)
owned by Onco Alberta (which shall be dealt with in accordance of the terms of the Plan
of Arrangement);
	 
	 	1.1.20	 	“Excluded Liabilities” means all the Liabilities of the Vendors incurred after the
Effective Time which, for greater certainty, includes all Liabilities of the Vendors in
respect of Tax that were, are or may become payable resulting from the Arrangement, the
obligation to repay the amounts loaned to the Vendors by Gamehost under the Plan of
Arrangement or to satisfy the dissent rights granted to Gamehost Security Holders (as

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	 	 	 	such term is defined in the Arrangement Agreement) pursuant to the Interim Order (as
such term is defined in the Arrangement Agreement);

	 	1.1.21	 	“Final Order” means the final order of the Court approving the Arrangement as such
order may be amended by the Court (in accordance with the terms of the Arrangement
Agreement) at any time prior to the Effective Date or, if appealed, then unless such
appeal is withdrawn or denied, as affirmed or as amended (provided that any such
amendment is acceptable to both the Vendors and Gamehost, each acting reasonably) on
appeal;
	 
	 	1.1.22	 	“GAAP” means Canadian generally accepted accounting principles, as in effect from
time to time;
	 
	 	1.1.23	 	“Governmental Authority” means any (i) multinational, domestic, foreign, federal,
national, provincial, state, regional, municipal, local or other government,
governmental or public department, central bank, court, tribunal, arbitral body,
commission, board, bureau, ministry or agency, domestic or foreign, (ii) any
subdivision, agent, commission, board, or authority of any of the foregoing, (iii) any
quasi-governmental or private body exercising any regulatory, expropriation or taxing
authority under or for the account of any of the foregoing, or (iv) any stock exchange,
including the Toronto Stock Exchange, The TSX Venture Exchange, the Over-The-Counter
Bulletin Board and the NASDAQ Capital Market.;
	 
	 	1.1.24	 	“Indemnity Agreement” means the indemnity agreement entered into concurrently with
the Arrangement between the Vendors (or their successor corporation), Onco US and New
Onco;
	 
	 	1.1.25	 	“Intellectual Property” means:

	 	(a)	 	any and all proprietary rights provided under:

	 	(i)	 	patent law;
	 
	 	(ii)	 	copyright law (including moral rights);
	 
	 	(iii)	 	trade-mark law;
	 
	 	(iv)	 	design patent or industrial design law;
	 
	 	(v)	 	semi-conductor chip or mask work or integrated
circuit topography law; or
	 
	 	(vi)	 	any other statutory provision or common law
principle applicable to this Agreement, including trade secret law,
which may provide a right in either hardware, software, information
(including confidential information), trademarks, ideas, formulae,
algorithms, concepts, inventions, processes or know-how generally, or
the expression or use of the same;

	 	(b)	 	any and all applications, registrations, licences,
sub-licences, franchises, agreements or any other evidence of a right in any of
the foregoing; and
	 
	 	(c)	 	all licences and waivers and benefits of waivers of the
intellectual property rights set out in (a) and (b) above, all future income
and proceeds from the intellectual property rights set out in (a) and (b)
above, and all rights to damages and profits

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	 	 	 	by reason of the infringement or violation of any of the intellectual
property rights set out in (a) and (b) above;

	 	1.1.26	 	“Liabilities” means all debts, liabilities, commitments or obligations (whether
matured or unmatured, accrued, fixed, contingent or otherwise) of any kind or nature
whatsoever resulting from any matters, actions, events, facts or circumstances related
to the activities, affairs or business of the Vendors;
	 
	 	1.1.27	 	“Losses” means, in respect of any and all matters, all losses, costs, damages,
expenses, charges, fines, penalties, interest charges, assessments or other liabilities
whatsoever (including legal fees and disbursements on a solicitor and client basis and
fees and disbursements of experts);
	 
	 	1.1.28	 	“New Onco” has the meaning set out on the first page of this Agreement;
	 
	 	1.1.29	 	“Onco Alberta” has the meaning set out on the first page of this Agreement;
	 
	 	1.1.30	 	“Onco BC” has the meaning set out on the first page of this Agreement;
	 
	 	1.1.31	 	“Onco US” means Oncothyreon Inc., a corporation subsisting under the laws of the
State of Delaware;
	 
	 	1.1.32	 	“Parties” means, collectively, the Vendors and the Purchaser and “Party” means any
one of them;
	 
	 	1.1.33	 	“Person” includes any individual, firm, partnership, limited partnership, limited
liability partnership, joint venture, venture capital fund, limited liability company,
unlimited liability company, association, trust, trustee, executor, administrator,
legal personal representative, estate, body corporate, corporation, company,
unincorporated association or organization, Governmental Authority, syndicate or other
entity, whether or not having legal status;
	 
	 	1.1.34	 	“Plan of Arrangement” means the plan of arrangement, substantially in the form of
Exhibit “A” to the Arrangement Agreement, and any amendments or variations thereto made
in accordance with Section 6.1 of the Arrangement Agreement or the Plan of Arrangement
or made at the direction of the Court in the Final Order in accordance with the terms
of the Arrangement Agreement;
	 
	 	1.1.35	 	“Purchase Price” has the meaning set out in Section 3.1;
	 
	 	1.1.36	 	“Purchaser” as the meaning set out on the first page of this Agreement;
	 
	 	1.1.37	 	“Tax Act” means the Income Tax Act (Canada) and the regulations made thereunder, as
now in effect and as may be promulgated or amended from time to time;
	 
	 	1.1.38	 	“Tax” or “Taxes” means all taxes, however denominated, including any interest,
penalties or other additions that may become payable in respect thereof, imposed by any
federal, territorial, state, local or foreign government or any agency or political
subdivision of any such government, which taxes shall include, without limiting the
generality of the foregoing, all income or profits taxes (including, but not limited
to, federal income taxes and provincial income taxes), payroll and employee withholding

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	 	 	 	taxes, unemployment insurance, social insurance taxes, sales and use taxes, ad
valorem taxes, excise taxes, franchise taxes, gross receipts taxes, business license
taxes, occupation taxes, real and personal property taxes, stamp taxes,
environmental taxes, transfer taxes, capital taxes, workers compensation and other
governmental charges, and other obligations of the same or of a similar nature to
any of the foregoing, which Gamehost or either of the Vendors, as the case may be,
is required to pay, withhold, remit or collect;
	 
	 	1.1.39	 	“Tax Pools” means Onco Alberta’s non-capital losses, scientific research and
experimental development expenditures and investment tax credits, as those terms are
used for the purposes of the Income Tax Act (Canada) in the amounts as set out in the
Disclosure Letter (as defined in the Arrangement Agreement);
	 
	 	1.1.40	 	“Tax Receivables” has the meaning set out in Section 1.1.6(c);
	 
	 	1.1.41	 	“Vendors” has the meaning set out on the first page of this Agreement.

1.2 Number and Gender

In this Agreement, unless the contrary intention appears, (i) words importing the singular include
the plural and vice versa and (ii) words importing gender shall include all genders.

1.3 Currency

Unless otherwise stated, all references in this Agreement to sums of money are expressed in lawful
money of Canada and “$” refers to Canadian dollars.

1.4 Headings

The division of this Agreement into Sections and the insertion of a table of contents and headings
are for convenience of reference only and do not affect the construction or interpretation of this
Agreement. The terms “hereof”, “hereunder” and similar expressions refer to this Agreement and not
to any particular Section or other portion hereof. Unless something in the subject matter or
context is inconsistent therewith, references herein to Sections and Schedules are to Sections of
and Schedules to this Agreement.

1.5 Including

Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be
deemed to be followed by the words “without limitation”, whether or not they are in fact followed
by those words or words of like import.

1.6 Governing Law

This Agreement shall be governed by and interpreted in accordance with the laws of the Province of
Alberta and the laws of Canada applicable therein. Each Party hereby irrevocably attorns to the
non-exclusive jurisdiction of the courts of the Province of Alberta in respect of all matters
related to, arising out of or resulting from this Agreement and the transactions contemplated
herein.

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1.7 Accounting Principles

Unless otherwise stated, all accounting terms used in this Agreement shall have the meanings
attributable thereto under GAAP, and all determinations of an accounting nature required to be made
shall be made in a manner consistent with GAAP.

1.8 Statutory References

A reference to a statute includes all regulations and rules made pursuant to such statute and,
unless otherwise specified, the provisions of any statute, regulation or rule which amends,
supplements or supersedes any such statute, regulation or rule.

1.9 Incorporation of Schedules

The following schedules annexed to this Agreement are hereby incorporated by reference into the
Agreement and form part hereof:

Schedule 3.1 Purchase Price

Schedule 3.2 Principals for Allocation of Purchase Price

SECTION 2

CONVEYANCE OF ASSETS; ASSUMPTION OF ASSUMED LIABILITIES

2.1 The Vendors hereby sell assign, grant and transfer to the Purchaser, and the Purchaser hereby
purchases from the Vendors, all of the right, title, benefit and interest of the Vendors in and to
the Assets, effective as of the Effective Time. The Parties each acknowledge that the Excluded
Assets are not being transferred pursuant to this Agreement.

2.2 The Purchaser hereby acknowledges that it is purchasing the Assets on an “as is, where is”
basis. The Purchaser further acknowledges that there are no collateral agreements, conditions,
representations or warranties of any nature whatsoever made by the Vendors, express or implied,
arising at law, by statute or in equity or otherwise, with respect to the Assets or the Business
and in particular, without limiting the generality of the foregoing, there are no collateral
agreements, conditions, representations or warranties made by the Vendors, express or implied,
arising at law, by statute or in equity or otherwise, as to title, state of title, description,
fitness, suitability for any particular purpose, merchantability, operating condition, the value of
the Assets or the future cash flows from the Assets or Business. The Purchaser acknowledges that
it is relying entirely on its own judgement and investigation with respect to the purchase of the
Assets, and is satisfied in all respects with the due diligence and investigations it has
conducted.

2.3 The Purchaser shall:

	 	2.3.1	 	be entitled to all of the benefits accruing to the Vendors under the
provisions contained in each of the Assumed Contracts; and
	 
	 	2.3.2	 	be entitled to possession of all the Assets and any premise occupied by the
Vendors as lessee.

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2.4 The Purchaser assumes and agrees to fulfil and perform and to indemnify and save harmless the
Vendors in respect of the obligations of the Vendors accruing after the Effective Time in respect
of the Assumed Liabilities.

2.5 The Purchaser does not assume and will not be liable for any obligations or liabilities of the
Vendors whatsoever resulting from or arising as a consequence of the Excluded Liabilities.

The conveyance of the Assets onto the Purchaser, its successors and assigns, hereunder is with full
rights of substitution and subrogation of the Purchaser, its successors or assigns, to the extent
possible, in and to all covenants and warranties by other heretofore given or made in respect of
the Assets or any part thereof.

SECTION 3

PURCHASE PRICE AND PAYMENT OF PURCHASE PRICE

3.1 The purchase price (the “Purchase Price”) for the transfer of the Assets is equal to the fair
market value of the Assets at the Effective Time (as determined in Schedule 3.1) and is
satisfied by (i) the assumption of the Assumed Liabilities (to the same extent and with the same
force and effect as though the Purchaser had been subject to the Assumed Liabilities as of the
Effective Time in the place and stead of the Vendors) and (ii) the delivery to Onco Alberta of 99
fully paid and non-assessable Onco Alberta Subco Shares (as defined in the Arrangement Agreement)
and to Onco BC of 1 fully paid and non-assessable Onco Alberta Subco Share (as defined in the
Arrangement Agreement).

3.2 The Vendors and the Purchaser agree that the Purchase Price shall be allocated among the Assets
as set-out in Schedule 3.2. The Vendors and the Purchaser shall complete all Tax returns,
designations and elections in a manner consistent with the allocation set-out in Schedule
3.2 and otherwise follow such allocation for all Tax purposes and not take any position
inconsistent with such allocation. If such allocation is disputed by any Governmental Authority,
the Party receiving notice of such dispute shall promptly notify the other Party and the Parties
shall use their reasonable best efforts to sustain the allocation. The Parties shall share
information and cooperate to the extent reasonably necessary to permit the transactions
contemplated by this Agreement to be properly, timely and consistently reported.

SECTION 4

TAX MATTERS

4.1 Concurrently with the execution of this Agreement, the Vendors and the Purchaser shall jointly
execute an election, in the prescribed form and containing the prescribed information, to have
subsection 167(1.1) of the Excise Tax Act (Canada) apply to the sale and purchase of the Assets so
that no tax is payable in respect of such sale and purchase under Part IX of the Excise Tax Act
(Canada). The Purchaser shall file such election with the appropriate Governmental Authority within
the time prescribed by the Excise Tax Act (Canada).

4.2 To the extent required by the Purchaser, the Vendors and the Purchaser shall on a timely basis
jointly execute elections under section 22 of the Tax Act as to the sale of the accounts receivable
sold and purchased pursuant to this Agreement, shall designate therein the applicable portion of
the Purchase Price allocated to the accounts receivables in accordance with Section 3.2 as the
consideration paid by the Purchaser therefore, and shall each file such elections with the Canada
Revenue Agency with their respective Tax returns for their respective taxation years that include
the date hereof.

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4.3 If required by the Vendors, the Vendors and the Purchaser shall jointly elect, in the
prescribed manner and form and within the prescribed time, to have the provisions of subsection
85(1) of the Tax Act, and any equivalent provision under applicable provincial tax legislation,
apply to the purchase and sale of the Assets under this Agreement. The agreed amount for the
purposes of paragraph 85(1)(a) of the Tax Act in respect of each of the Assets shall be such amount
as is determined by the Vendors, not to exceed: (i) where the property is eligible capital property
in respect of the business of the Vendors, the elected amount in respect of such property shall not
under any circumstances exceed 4/3 of the Vendors’ cumulative eligible capital in respect of the
business immediately before the disposition (provided that the aggregate of elected amounts for
eligible capital properties shall not exceed 4/3 of the cumulative eligible capital of the
Vendors), and (ii) where the property is depreciable property of a prescribed class of the Vendors,
the elected amount in respect of such property shall not under any circumstances exceed the
undepreciated capital cost to the Vendors of all property of that class immediately before the
disposition (provided that the aggregate of elected amounts for properties of the same prescribed
class shall not exceed the undepreciated capital cost of such prescribed class). For greater
certainty, each agreed amount determined by the Vendors shall, to the extent permitted under the
Tax Act, not result in any liability for Taxes for the Vendors.

SECTION 5

COVENANTS OF THE VENDORS

5.1 To the extent not already delivered, the Vendors shall deliver to the Purchaser, at the cost
and expense of the Purchaser, all necessary deeds, conveyances, bills of sale, assurances,
transfers, assignments and any other documentation necessary or reasonably required by the
Purchaser from time to time to transfer title to the Assets (including registering all assignments
related to Intellectual Property and the assignment of the Assumed Contracts) to the Purchaser.

5.2 To the extent not already obtained by the Purchaser, the Vendors shall, at the cost and expense
of the Purchaser, use commercially reasonable efforts to assist the Purchaser in obtaining all
third party consents, approvals and assurances as reasonably requested by the Purchaser that are
necessary to permit the Vendors to validly and effectually convey the Assets to the Purchaser or to
operate the Business. Until such consents, approvals and assurances have been obtained:

	 	5.2.1	 	the Vendors shall continue to hold any interest in any such Assets in trust
for the benefit of the Purchaser and shall cooperate with the Purchaser, at the cost
and expense of the Purchaser, in any reasonable and lawful arrangements designed to
provide the benefit of such Assets to the Purchaser;
	 
	 	5.2.2	 	the Vendors shall enforce any rights of the Vendors arising from such Assets,
at the cost and expense of the Purchaser, against the issuer thereof or the other party
or parties thereto for the benefit of the Purchaser; and
	 
	 	5.2.3	 	the Vendors shall take all such actions and do, or cause to be done, all such
things at the request of the Purchaser, but at the cost and expense of the Purchaser,
as shall reasonably be necessary in order that the value of such Assets shall be
preserved and shall enure to the benefit of the Purchaser.

The Purchaser shall use its best efforts to expeditiously seek and obtain such consents, approvals
and assurances.

5.3 To the extent that any Tax Receivable is an Asset that is not assignable or is paid to the
Vendors despite the assignment, the Vendors shall pay to the Purchaser an amount equal to the
amount of the Tax

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Receivable received by the Vendors within 10 days of the date of receipt. Upon request from the
Purchaser, the Vendors shall duly authorize a representative of the Purchaser to contact the
relevant Governmental Authority to obtain information on the status of the Tax Receivables.

5.4 The Vendors consent to disclosure by the Purchaser (and any affiliate thereof or successor
thereto) in any offering memorandum, information circular, prospectus, take-over bid circular,
press release, material change report or other document, the form and content of which are subject
to or prescribed by Applicable Laws (collectively, the “Disclosure Documents”), of a description of
the assets held, and businesses conducted, by the Vendors prior to the Effective Time and such
historical financial and operational information for the Vendors in respect of any period prior to
Effective Time as may be required by Applicable Laws to be included in any Disclosure Documents.
The Vendors shall use reasonable commercial efforts to obtain the co-operation of its auditors or
accounting advisors with the Purchaser and/or its agents, including the Purchaser’s auditors, in
connection with the review and audit of the financial information respecting the Vendors to be
contained in any Disclosure Document. The provisions of this Section 5.4 shall survive the
Effective Time for a period of three years; provided, however, that all costs
associated with such audits or reviews shall be borne by the Purchaser.

5.5 The Vendors may not proceed with any procedure of dissolution or cancellation of its articles
without first obtaining the written consent of the Purchaser. The Purchaser shall not withhold its
consent if all Tax Receivables have been received by the Purchaser. If the Purchaser’s consent has
not been received, the Vendors will indemnify or cause to be indemnified the Purchaser for any Tax
Receivables not yet received at the time of the dissolution or cancellation of its articles and
upon provision of such indemnity, the Vendors shall be entitled to proceed with the dissolution or
cancellation of its articles.

SECTION 6

COVENANTS OF THE PURCHASER

6.1 The Purchaser shall assume, duly and punctually pay, satisfy, discharge perform or fulfill to
the complete exoneration of the Vendors the Assumed Liabilities.

6.2 The Purchaser shall assume, perform and observe all terms, conditions, covenants, obligations
and agreements contained in the Assumed Contracts and other obligations assigned to it hereunder.

SECTION 7

GENERAL PROVISIONS

7.1 Notices

Any notice, request, consent, waiver, direction or other communication required or permitted to be
given under this Agreement shall be in writing and may be given by delivering same or sending same
by facsimile or e-mail transmission or by delivery addressed to the Party to which the notice is to
be given at its address for service herein. Any such notice, request, consent, waiver, direction or
other communication shall, if delivered, be deemed to have been given and received on the day on
which it was delivered to the address provided herein (if that day is a Business Day, and if it is
not, then on the next succeeding Business Day), and if sent by facsimile or e-mail transmission
shall be deemed to have been given and received at the time of receipt unless actually received
after 4:00 p.m. at the point of delivery, in which case it shall be deemed to have been given and
received on the next Business Day.

E-12

 

(a) if to the Purchaser:

c/o Oncothyreon Inc.

2601 Fourth Avenue, Suite 500

Seattle, Washington 98121

Facsimile: (206) 801-2111

E-mail: RKirkman@oncothyreon.com

Attention: President and CEO

with a copy to :

Fraser Milner Casgrain LLP

2900 Manulife Place

10180 — 101 Street

Edmonton, AB T5J 3V5

Facsimile: (780) 423-7276

E-mail: colleen.cebuliak@fmc-law.com

Attention: Colleen Cebuliak

(b) if to the Vendors:

c/o Gamehost Income Fund

400, 4406 — 50th Avenue

Red Deer, AB T4N 3Z5

Facsimile: (403) 340-0683

E-mail: djwill@gamehost.ca

Attention: Vice President

with a copy to:

Shea Nerland Calnan LLP

2800, 715-5th Avenue SW

Calgary, Alberta T2P 2X6

Facsimile: (403) 299-9601

E-mail: jbrennan@snclaw.com

Attention: Joe Brennan

7.2 Time of Essence

Time shall be of the essence in this Agreement.

7.3 Entire Agreement

Except for the various collateral agreements entered into pursuant to the Arrangement Agreement and
in contemplation of the Arrangement, this Agreement, constitutes the entire agreement between the
Parties in respect of the subject matters herein and cancels and supersedes all prior agreements
and understandings between the Parties in respect of the subject matter hereof.

E-13

 

7.4 Assignment

This Agreement may not be assigned by either Party without the express written consent of the other
Party.

7.5 Injunctive Relief

The Parties hereto agree that irreparable harm could occur for which money damages would not be an
adequate remedy at law in the event that any of the provisions of this Agreement were not performed
by the Parties in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the Parties shall be entitled to seek an injunction or injunctions and
other equitable relief to prevent breaches or threatened breaches of the provisions of this
Agreement or to otherwise obtain specific performance of any such provisions.

7.6 Claims

All Claims for Losses for a breach of any covenant hereunder shall exclusively be dealt with in
accordance with the terms and conditions of the Indemnity Agreement.

7.7 Binding Effect

This Agreement shall be binding upon and shall enure to the benefit of the Parties and their
respective successors and permitted assigns.

7.8 Further Assurances

Each Party shall, from time to time and at all times hereafter, at the request of the other
Parties, but without further consideration, do all such further acts and execute and deliver all
such further documents and instruments as shall be reasonably required in order to fully perform
and carry out the terms and intent hereof.

7.9 Severability

If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced
by any rule of law or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal substance of the
transactions contemplated hereby is not affected in any manner materially adverse to any Party.
Upon such determination that any term or other provision is invalid, illegal or incapable of being
enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the Parties as closely as possible in an acceptable manner to the end that a
transactions contemplated hereby are fulfilled to the extent possible.

7.10 Amendment

No amendment, supplement, modification or waiver or termination of this Agreement and, unless
otherwise specified, no consent or approval by any Party, shall be binding unless executed in
writing by the Party to be bound thereby.

E-14

 

7.11 Counterpart Execution

This Agreement may be executed in any number of counterparts and each such counterpart shall be
deemed to be an original instrument but all such counterparts together shall constitute one
agreement.

[Signature page follows]

E-15

 

IN WITNESS WHEREOF, the Purchaser and the Vendors have caused this Agreement to be executed as of
the date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 
	 	[ONCO ALBERTA]

 	 
	 	Per:  	 	 
	 	 	Robert L. Kirkman 	 
	 	 	President 	 
	 
	 	[ONCO BC]

 	 
	 	Per:  	 	 
	 	 	Robert L. Kirkman 	 
	 	 	CEO 	 
	 
	 	1518025 ALBERTA ULC

 	 
	 	Per:  	 	 
	 	 	Robert L. Kirkman 	 
	 	 	President 	 
	 

INTERVENTION

Gamehost hereby confirms it is aware of the terms and conditions of the Agreement and agrees for
the benefit of the Purchaser to be jointly and severally bound by all of the covenants, obligations
and undertakings of the Vendors set out in this Agreement.

	 	 	 	 	 
	 	GAMEHOST INCOME FUND, by its Administrator,

Gamehost Management Inc.

 	 
	 	Per:  	 	 
	 	 	Darcy J. Will 	 
	 	 	Vice President 	 
	 

1517680 Alberta ULC hereby confirms that it is aware of the terms and conditions of the Agreement
and agrees for the benefit of the Vendors to be jointly and severally bound by all of the
covenants, obligations and undertakings of the Purchaser set out in this Agreement.

	 	 	 	 	 
	 	1517680 ALBERTA ULC

 	 
	 	Per:  	 	 
	 	 	Robert L. Kirkman 	 
	 	 	President 	 

E-16

 

	 	 	 	 	 

SCHEDULE 3.1

PURCHASE PRICE

The Purchase Price shall be $100.

E-17

 

SCHEDULE 3.2

PURCHASE PRICE ALLOCATION

The Purchase Price shall be allocated as follows:

Cash and cash equivalents      $100

E-18

 

EXHIBIT F

PRE-ARRANGEMENT TRANSACTIONS

The transactions defined as the “Pre-Arrangement Transactions” in section 1.1 of the Arrangement
Agreement are the following transactions:

	1a. 	 	Oncothyreon Luxemburg S.à r.l. (“Onco Lux”) distributes to Oncothyreon Inc. (“Onco US”) the
100 issued and outstanding Class A voting common shares in the share capital of 0811769 B.C.
ULC (“Onco BC”) which are currently held by Onco Lux.
	 
	1b.  	 	Oncothyreon Canada Inc. (“Onco Alberta”), which is currently governed by the Canada Business
Corporations Act, is continued as an unlimited liability corporation under the Business
Corporations Act (Alberta) (the “ABCA”) and is renamed “Oncothyreon Canada ULC”.
	 
	2a.  	 	Onco Alberta reduces the stated capital account maintained for its common shares by an amount
equal to the fair market value of the issued and outstanding shares held by Onco Alberta in
the share capital of ProlX Pharmaceuticals Corp., Biomira Research Inc., Biomira B.V. and
Oncodigm Biopharma Inc. (the “Subsidiary Shares”) and any other asset of Onco Alberta other
than $99 cash which will remain with Onco Alberta, and, in conjunction therewith, distributes
the Subsidiary Shares to Onco BC. For greater certainty, the Tax Pools reside with Onco
Alberta after the completion of this step.
	 
	2b.  	 	Onco BC reduces the stated capital account maintained for its Class B preferred shares by an
amount equal to the fair market value of the Subsidiary Shares and any other asset of Onco
Alberta less $100 and, in conjunction therewith, distributes the Subsidiary Shares to Onco US.
	 
	3.	 	Onco US arranges for the incorporation of a new Canadian subsidiary (“Newco”) with nominal
share capital.
	 
	4.	 	Onco US contributes the issued and outstanding shares held by Onco US in the share capital of
Onco BC to Newco, in exchange for which Newco issues additional shares in its share capital to
Onco US.
	 
	5.	 	Onco BC continues as a limited corporation under the ABCA.

F-1

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