Document:

EX-10.4 FORM OF MANAGEMENT AGREEMENT

Exhibit 10.4

FORM OF MANAGEMENT AGREEMENT

     THIS MANAGEMENT AGREEMENT is made as of June ___, 2009 by and among INVESCO MORTGAGE CAPITAL
INC., a Maryland corporation (the “Company”), IAS OPERATING PARTNERSHIP LP, a Delaware
limited partnership (the “Operating Partnership”), IAS ASSET I LLC, a Delaware limited
liability company (“Asset I”), and INVESCO INSTITUTIONAL (N.A.), INC., a Delaware
corporation (together with its permitted assignees, the “Manager”).

     WHEREAS, the Company is a newly organized corporation that intends to elect to be taxed as a
real estate investment trust (“REIT”) for U.S. federal income tax purposes; and

     WHEREAS, the Company and each of the Subsidiaries desire to retain the Manager to provide
investment advisory services to them on the terms and conditions hereinafter set forth, and the
Manager wishes to be retained to provide such services.

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

     Section 1. Definitions. The following terms have the following meanings assigned to
them:

          (a) “Affiliate” means (i) any Person directly or indirectly controlling, controlled
by, or under common control with such other Person, (ii) any executive officer, general partner or
employee of such other Person, (iii) any member of the board of directors or board of managers (or
bodies performing similar functions) of such Person, and (iv) any legal entity for which such
Person acts as an executive officer or general partner.

          (b) “Agreement” means this Management Agreement, as amended, restated or supplemented
from time to time.

          (c) “Bankruptcy” means, with respect to any Person, (a) the filing by such Person of a
voluntary petition seeking liquidation, reorganization, arrangement or readjustment, in any form,
of its debts under Title 11 of the United States Code or any other federal, state or foreign
insolvency law, or such Person’s filing an answer consenting to or acquiescing in any such
petition, (b) the making by such Person of any assignment for the benefit of its creditors, (c) the
expiration of 60 days after the filing of an involuntary petition under Title 11 of the Unites
States Code, an application for the appointment of a receiver for a material portion of the assets
of such Person, or an involuntary petition seeking liquidation, reorganization, arrangement or
readjustment of its debts under any other federal, state or foreign insolvency law, provided that
the same shall not have been vacated, set aside or stayed within such 60-day period or (d) the
entry against it of a final and non-appealable order for relief under any bankruptcy, insolvency or
similar law now or hereinafter in effect.

          (d) “Board of Directors” means the Board of Directors of the Company.

          (e) “Code” means the Internal Revenue Code of 1986, as amended.

          (f) “Company Account” shall have the meaning set forth in Section 5 of this Agreement;

          (g) “Company Indemnified Party” shall have the meaning set forth in Section 11(b) of
this Agreement.

 

 

          (h) “Excess Funds” shall have the meaning set forth in Section 2(1) of this Agreement.

          (i) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (j) “GAAP” means generally accepted accounting principles, as applied in the United
States.

          (k) “Governing Instruments” means, with regard to any entity, the articles of
incorporation and bylaws in the case of a corporation, certificate of limited partnership (if
applicable) and the partnership agreement in the case of a general or limited partnership, the
articles of formation and the operating agreement in the case of a limited liability company, the
trust instrument in the case of a trust, or similar governing documents, in each case as amended
from time to time.

          (l) “Independent Directors” means the members of the Board of Directors who are not
officers or employees of the Manager or any Person directly or indirectly controlling or controlled
by the Manager, and who are otherwise “independent” in accordance with the Company’s Governing
Instruments and, if applicable, the rules of any national securities exchange on which the
Company’s common stock is listed.

          (m) “Indemnitee” shall have the meaning set forth in Section 11(b) of this Agreement.

          (n) “Indemnitor” shall have the meaning set forth in Section 11(c) of this Agreement.

          (o) “Initial Term” shall have the meaning set forth in Section 13(a) of this
Agreement.

          (p) “Invesco” means Invesco Ltd., a Bermuda corporation.

          (q) “Investment Company Act” means the Investment Company Act of 1940, as amended.

          (r) “Investment Committee” means the Manager’s investment committee comprised of the
Manager’s officers, directors and investment professionals that will periodically review the
Company’s investment portfolio and its compliance with the Company’s investment policies and
procedures, including the Company’s investment guidelines.

          (s) “Investments” means the investments of the Company and the Subsidiaries.

          (t) “Legacy Loan PPIF” means a public-private investment fund established under the
PPIP’s Legacy Loan Program.

          (u) “Legacy Securities PPIF” means a public-private investment fund established under
the PPIP’s Legacy Securities Program.

          (v) “LIBOR” means London Interbank Offered Rate.

          (w) “Management Fee” means a management fee equal to 1.50% of our Stockholders’ Equity
per annum and calculated and payable (in cash) quarterly in arrears.

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          (x) “Manager Indemnified Party” shall have the meaning set forth in Section 11(a) of
this Agreement.

          (y) “Monitoring Services” shall have the meaning set forth in Section 2(b) of this
Agreement.

          (z) “Notice of Proposal to Negotiate” shall have the meaning set forth in
Section 13(a) of this Agreement.

          (aa) “NYSE” means the New York Stock Exchange Euronext.

          (bb) “Partnership Agreement” means the agreement of limited partnership of the
Operating Partnership, as amended, restated or supplemented from time to time.

          (cc) “Person” means any individual, corporation, partnership, joint venture, limited
liability company, estate, trust, unincorporated association, any federal, state, county or
municipal government or any bureau, department or agency thereof and any fiduciary acting in such
capacity on behalf of any of the foregoing.

          (dd) “Portfolio Management Services” shall have the meaning set forth in Section 2(b)
of this Agreement.

          (ee) “PPIP” means the U.S. Government’s Public-Private Investment Program.

          (ff) “REIT” means a “real estate investment trust” as defined under the Code.

          (gg) “Renewal Term” shall have the meaning set forth in Section 13(a) of this
Agreement.

          (hh) “Securities Act” means the Securities Act of 1933, as amended.

          (ii) “Stockholders’ Equity” means:

               (i) the sum of the net proceeds from all issuances of the Company’s equity securities since
inception (allocated on a pro rata daily basis for such issuances during the fiscal quarter of any
such issuance), plus

               (ii) the Company’s retained earnings at the end of the most recently completed calendar
quarter (without taking into account any non-cash equity compensation expense incurred in current
or prior periods), less

               (iii) any amount that the Company pays for repurchases of its common stock since inception.

     Stockholders’ Equity shall exclude (a) any unrealized gains, losses or other items that do not
affect realized net income (regardless of whether such items are included in other comprehensive
income or loss, or in net income) and (b) one-time events pursuant to changes in GAAP and certain
non-cash items after discussions between the Manager and the Company’s Independent Directors and
approval by a majority of the Company’s Independent Directors.

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     For purposes of calculating Stockholders’ Equity, outstanding limited partner interests in the
Operating Partnership (other than the limited partner interests held by the Company) shall be
treated as outstanding shares of capital stock of the Company.

          (jj) “Subsidiary” means any subsidiary of the Company; any partnership, the general
partner of which is the Company or any subsidiary of the Company; any limited liability company,
the managing member of which is the Company or any subsidiary of the Company; and any corporation
or other entity of which a majority of (i) the voting power of the voting equity securities or
(ii) the outstanding equity interests is owned, directly or indirectly, by the Company or any
subsidiary of the Company. Initially, the only Subsidiaries shall be the Operating Partnership and
Asset I.

          (kk) “Termination Fee” shall have the meaning set forth in Section 16(b) of this
Agreement.

          (ll) “Termination Notice” shall have the meaning set forth in Section 13(a) of this
Agreement.

          (mm) “Treasury Regulations” means the regulations promulgated under the Code, as
amended from time to time.

     Section 2. Appointment and Duties of the Manager.

          (a) The Company and each of the Subsidiaries hereby appoints the Manager to manage the assets
of the Company and the Subsidiaries subject to the further terms and conditions set forth in this
Agreement and the Manager hereby agrees to use its commercially reasonable efforts to perform each
of the duties set forth herein. The appointment of the Manager shall be exclusive to the Manager
except to the extent that the Manager otherwise agrees, in its sole and absolute discretion, and
except to the extent that the Manager elects, pursuant to the terms of this Agreement, to cause the
duties of the Manager hereunder to be provided by third parties.

          (b) The Manager, in its capacity as manager of the assets and the day-to-day operations of the
Company and the Subsidiaries, at all times will be subject to the supervision of the Company’s
Board of Directors and will have only such functions and authority as the Company may delegate to
it including, without limitation, the functions and authority identified herein and delegated to
the Manager hereby, in each case, to the extent agreed to by the Manager. The Manager will be
responsible for the day-to-day operations of the Company and the Subsidiaries and will perform (or
cause to be performed) such services and activities relating to the assets and operations of the
Company and the Subsidiaries as may be appropriate, including, without limitation:

               (i) serving as the Company’s and the Subsidiaries’ consultant with respect to the periodic
review of the investment guidelines and other parameters for the Investments, financing activities
and operations, any modifications to which shall be approved by a majority of the Independent
Directors (such guidelines as initially approved and attached hereto as Exhibit A, as the
same may be modified with such approval, the “Guidelines”);

               (ii) investigating, analyzing and selecting possible investment opportunities and acquiring,
financing, retaining, selling, restructuring or disposing of Investments consistent with the
Guidelines;

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               (iii) with respect to prospective purchases, sales or exchanges of Investments, conducting
negotiations on behalf of the Company and the Subsidiaries with sellers, purchasers, trustees,
primary dealers, custodians and brokers and, if applicable, their respective agents and
representatives;

               (iv) negotiating and entering into, on behalf of the Company and the Subsidiaries, repurchase
agreements, interest rate swap agreements, agreements relating to borrowings under programs
established by the U.S. Government and/or any agencies thereunder and other agreements and
instruments required for the Company and the Subsidiaries to conduct their business;

               (v) engaging and supervising, on behalf of the Company and the Subsidiaries and at the
Company’s expense, independent contractors that provide investment banking, securities brokerage,
mortgage brokerage, other financial services, due diligence services, underwriting review services,
legal and accounting services, and all other services (including transfer agent and registrar
services) as may be required relating to the Company’s and the Subsidiaries’ operations or
Investments (or potential investments);

               (vi) advising on, preparing, negotiating and entering into, on behalf of the Company and the
Subsidiaries, applications and agreements relating to programs established by the U.S. Government
and/or any agencies thereunder;

               (vii) coordinating and managing operations of any joint venture or co-investment interests
held by the Company and the Subsidiaries and conducting all matters with the joint venture or
co-investment partners;

               (viii) providing executive and administrative personnel, office space and office services
required in rendering services to the Company and the Subsidiaries;

               (ix) administering the day-to-day operations and performing and supervising the performance of
such other administrative functions necessary to the management of the Company and the Subsidiaries
as may be agreed upon by the Manager and the Company’s Board of Directors, including, without
limitation, the collection of revenues and the payment of the debts and obligations of the Company
and the Subsidiaries and maintenance of appropriate computer services to perform such
administrative functions;

               (x) communicating on behalf of the Company and the Subsidiaries with the holders of any of
their equity or debt securities as required to satisfy the reporting and other requirements of any
governmental bodies or agencies or trading markets and to maintain effective relations with such
holders;

               (xi) counseling the Company in connection with policy decisions to be made by the Company’s
Board of Directors;

               (xii) evaluating and recommending to the Board of Directors hedging strategies and engaging in
hedging activities on behalf of the Company and the Subsidiaries, consistent with such strategies
as so modified from time to time, with the Company’s qualification as a REIT and with the
Guidelines;

               (xiii) counseling the Company regarding the maintenance of its qualification as a REIT and
monitoring compliance with the various REIT qualification tests and other rules set out in the Code
and Treasury Regulations thereunder and using commercially reasonable efforts to cause the Company
to qualify for taxation as a REIT;

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               (xiv) counseling the Company and the Subsidiaries regarding the maintenance of their
exemptions from the status of an investment company required to register under the Investment
Company Act, monitoring compliance with the requirements for maintaining such exemptions and using
commercially reasonable efforts to cause them to maintain such exemptions from such status;

               (xv) furnishing reports and statistical and economic research to the Company and the
Subsidiaries regarding their activities and services performed for the Company and the Subsidiaries
by the Manager;

               (xvi) monitoring the operating performance of Investments and providing periodic reports with
respect thereto to the Board of Directors, including comparative information with respect to such
operating performance and budgeted or projected operating results;

               (xvii) investing and reinvesting any moneys and securities of the Company and the Subsidiaries
(including investing in short-term Investments pending investment in other Investments, payment of
fees, costs and expenses, or payments of dividends or distributions to stockholders and partners of
the Company and the Subsidiaries) and advising the Company and the Subsidiaries as to their capital
structure and capital raising;

               (xviii) causing the Company and the Subsidiaries to retain qualified accountants and legal
counsel, as applicable, to assist in developing appropriate accounting procedures and systems,
internal controls and other compliance procedures and testing systems with respect to financial
reporting obligations and compliance with the provisions of the Code applicable to REITs and, if
applicable, a domestic taxable REIT subsidiary, to conduct quarterly compliance reviews with
respect thereto;

               (xix) assisting the Company and the Subsidiaries in qualifying to do business in all
applicable jurisdictions and to obtain and maintain all appropriate licenses;

               (xx) assisting the Company and the Subsidiaries in complying with all regulatory requirements
applicable to them in respect of their business activities, including preparing or causing to be
prepared all financial statements required under applicable regulations and contractual
undertakings and all reports and documents, if any, required under the Exchange Act, the Securities
Act, or by the NYSE;

               (xxi) assisting the Company and the Subsidiaries in taking all necessary action to enable them
to make required tax filings and reports, including soliciting stockholders for required
information to the extent required by the provisions of the Code applicable to REITs;

               (xxii) placing, or arranging for the placement of, all orders pursuant to the Manager’s
investment determinations for the Company and the Subsidiaries, either directly with the issuer or
with a broker or dealer (including any affiliated broker or dealer);

               (xxiii) handling and resolving all claims, disputes or controversies (including all
litigation, arbitration, settlement or other proceedings or negotiations) in which the Company
and/or the Subsidiaries may be involved or to which they may be subject arising out of their
day-to-day operations (other than with the Manager or its Affiliates), subject to such limitations
or parameters as may be imposed from time to time by the Board of Directors;

               (xxiv) using commercially reasonable efforts to cause expenses incurred by the Company and the
Subsidiaries or on their behalf to be commercially reasonable or commercially

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customary and within any budgeted parameters or expense guidelines set by the Board of
Directors from time to time;

               (xxv) advising the Company and the Subsidiaries with respect to and structuring long-term
financing vehicles for their portfolio of assets, and offering and selling securities publicly or
privately in connection with any such structured financing;

               (xxvi) forming the Investment Committee, which will propose investment guidelines to be
approved by a majority of the Independent Directors;

               (xxvii) serving as the Company’s and the Subsidiaries’ consultant with respect to decisions
regarding any of the Company’s and the Subsidiaries’ financings, hedging activities or borrowings
undertaken by the Company and/or the Subsidiaries including (1) assisting the Company and/or the
Subsidiaries in developing criteria for debt and equity financing that is specifically tailored to
the Company’s and the Subsidiaries’ investment objectives, and (2) advising the Company and the
Subsidiaries with respect to obtaining appropriate financing for the Company’s and the
Subsidiaries’ Investments;

               (xxviii) providing the Company and the Subsidiaries with portfolio management;

               (xxix) arranging marketing materials, advertising, industry group activities (such as
conference participations and industry organization memberships) and other promotional efforts
designed to promote the Company’s and the Subsidiaries’ business;

               (xxx) performing such other services as may be required from time to time for management and
other activities relating to the assets and business of the Company and the Subsidiaries as the
Board of Directors shall reasonably request or the Manager shall deem appropriate under the
particular circumstances; and

               (xxxi) using commercially reasonable efforts to cause the Company and the Subsidiaries to
comply with all applicable laws.

     Without limiting the foregoing, the Manager will perform portfolio management services (the
“Portfolio Management Services”) on behalf of the Company and the Subsidiaries with respect
to the Investments. Such services will include, but not be limited to, consulting with the Company
and the Subsidiaries on the purchase and sale of, and other investment opportunities in connection
with, the Company’s portfolio of assets; the collection of information and the submission of
reports pertaining to the Company’s assets, interest rates and general economic conditions;
periodic review and evaluation of the performance of the Company’s portfolio of assets; acting as a
liaison between the Company and the Subsidiaries and banking, mortgage banking, investment banking
and other parties with respect to the purchase, financing and disposition of assets; and other
customary functions related to portfolio management. Additionally, the Manager will perform
monitoring services (the “Monitoring Services”) on behalf of the Company and the
Subsidiaries with respect to any activities provided by third parties. Such Monitoring Services
will include, but not be limited to, negotiating servicing agreements; acting as a liaison between
servicer providers of the assets and the Company and the Subsidiaries; reviewing servicers’
delinquency, foreclosure and other reports on assets; supervising claims filed under any insurance
policies; and enforcing the obligation of any servicer to repurchase assets.

          (c) For the period and on the terms and conditions set forth in this Agreement, the Company
and each of the Subsidiaries hereby constitutes, appoints and authorizes the Manager as its true
and lawful agent and attorney-in-fact, in its name, place and stead, to negotiate, execute, deliver
and enter

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into such finance agreements and arrangements and securities repurchase and reverse repurchase
agreements and arrangements, brokerage agreements, interest rate swap agreements, “to be announced”
forward contracts, agreements relating to borrowings under programs established by the U.S.
Government and/or any agencies thereunder and such other agreements, instruments and authorizations
on their behalf, on such terms and conditions as the Manager, acting in its sole and absolute
discretion, deems necessary or appropriate. This power of attorney is deemed to be coupled with an
interest.

          (d) The Manager may enter into agreements with other parties, including its Affiliates, for
the purpose of engaging one or more parties for and on behalf, and, except as otherwise agreed, at
the sole cost and expense, of the Company and the Subsidiaries, to provide credit analysis, risk
management services, asset management and/or other services to the Company and the Subsidiaries
(including, without limitation, Portfolio Management Services and Monitoring Services) pursuant to
agreement(s) with terms which are then customary for agreements regarding the provision of services
to companies that have assets similar in type, quality and value to the assets of the Company and
the Subsidiaries; provided that (i) any such agreements entered into with Affiliates of the Manager
shall be (A) on terms no more favorable to such Affiliate than would be obtained from a third party
institutional investor on an arm’s-length basis and (B) to the extent the same do not fall within
the parameters of this Agreement or within the provisions of the Guidelines, approved by a majority
of the Independent Directors, (ii) with respect to Portfolio Management Services, the Manager shall
remain liable for the performance of such Portfolio Management Services, and (iii) with respect to
Monitoring Services, any such agreements shall be subject to the Company’s prior written approval.

          (e) To the extent that the Manager deems necessary or advisable, the Manager may, from time to
time, and at the sole cost and expense of the Company and the Subsidiaries, propose to retain one
or more additional entities for the provision of sub-advisory services to the Manager in order to
enable the Manager to provide the services to the Company and the Subsidiaries specified by this
Agreement; provided that any such agreement shall be approved by the Independent Directors of the
Company.

          (f) The Manager may retain, for and on behalf and, at the sole cost and expense of the Company
and the Subsidiaries, such services of accountants, legal counsel, appraisers, insurers, brokers,
transfer agents, registrars, investment banks, financial advisors, due diligence firms, banks and
other lenders and others as the Manager deems necessary or advisable in connection with the
management and operations of the Company and the Subsidiaries. Notwithstanding anything contained
herein to the contrary, the Manager shall have the right to cause any such services to be rendered
by its employees or Affiliates. The Company and the Subsidiaries shall pay or reimburse the
Manager or its Affiliates performing such services for the cost thereof; provided that such costs
and reimbursements are no greater than those which would be payable to outside professionals or
consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length
basis.

          (g) As frequently as the Manager may deem necessary or advisable, or at the direction of the
Board of Directors, the Manager shall, at the sole cost and expense of the Company and the
Subsidiaries, prepare, or cause to be prepared, with respect to any Investment, reports and other
information with respect to such Investment as may be reasonably requested by the Company.

          (h) The Manager shall prepare, or cause to be prepared, at the sole cost and expense of the
Company and the Subsidiaries, all reports, financial or otherwise, with respect to the Company and
the Subsidiaries reasonably required by the Board of Directors in order for the Company and the
Subsidiaries to comply with their Governing Instruments or any other materials required to be filed
with any governmental body or agency, and shall prepare, or cause to be prepared, all materials and
data necessary to complete such reports and other materials including, without limitation, an
annual audit of

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the Company’s and the Subsidiaries’ books of account by a nationally recognized registered
independent public accounting firm.

          (i) The Manager shall prepare regular reports for the Board to enable the Board of Directors
to review the Company’s and the Subsidiaries’ acquisitions, portfolio composition and
characteristics, credit quality, performance and compliance with the Guidelines and policies
approved by the Board of Directors.

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

          (k) In performing its duties under this Section 2, the Manager shall be entitled to
rely reasonably on qualified experts and professionals (including, without limitation, accountants,
legal counsel and other service providers) hired by the Manager at the Company’s and the
Subsidiaries’ sole cost and expense.

     Section 3. Devotion of Time; Additional Activities.

          (a) The Manager and its Affiliates will provide the Company and the Subsidiaries with a
management team, including a Chief Executive Officer, Chief Financial Officer, Chief Investment
officer, Chief Accounting Officer, Head of Research and Portfolio Manager, along with appropriate
support personnel, to provide the management services to be provided by the Manager to the Company
and the Subsidiaries hereunder, the members of which team shall devote such portion of their time
to the management of the Company and the Subsidiaries as is necessary and appropriate to enable the
Company and the Subsidiaries to operate their business from time to time. None of the officers or
employees of the Manager will be dedicated exclusively to the Company and the Subsidiaries.

          (b) The Manager agrees to offer the Company and the Subsidiaries the right to participate in
all investment and financing opportunities that the Manager determines are appropriate for the
Company and the Subsidiaries in view of their investment objectives, policies and strategies, and
other relevant factors, subject to the exception that the Company and the Subsidiaries might not
participate in each such opportunity but will on an overall basis equitably participate with the
Manager’s other clients in relevant investment opportunities in accordance with the Manager’s then
prevailing allocation policy. Nothing in this Agreement shall (i) prevent the Manager, Invesco or
any of their Affiliates, officers, directors, employees or personnel, from engaging in other
businesses or from rendering services of any kind to any other Person, including, without
limitation, investing in, or rendering advisory services to others investing in, any type of
business (including, without limitation, investments that meet the principal investment objectives
of the Company), whether or not the investment objectives or policies of any such other Person or
entity are similar to those of the Company or (ii) in any way bind or restrict the Manager, Invesco
or any of their Affiliates, officers, directors, employees or personnel from buying, selling or
trading any securities or investments for their own accounts or for the account of others for whom
the Manager, Invesco or any of their Affiliates, officers, directors, employees

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or personnel may be acting. When making decisions where a conflict of interest may arise, the
Manager will endeavor to allocate investment and financing opportunities in a fair and equitable
manner over time as between the Company and the Subsidiaries and the Manager’s other clients, in
each case in accordance with the Manager’s then prevailing allocation policy. While information
and recommendations supplied to the Company and the Subsidiaries shall, in the Manager’s reasonable
and good faith judgment, be appropriate under the circumstances and in light of the investment
objectives, policies and strategies of the Company and the Subsidiaries, they may be different from
the information and recommendations supplied by the Manager or any Affiliate of the Manager to
other clients of the Manager.

          (c) Managers, partners, officers, employees, personnel and agents of the Manager or Affiliates
of the Manager may serve as directors, officers, employees, partners, personnel, agents, nominees
or signatories for the Company and/or any Subsidiary, to the extent permitted by their Governing
Instruments or by any resolutions duly adopted by the Board of Directors pursuant to the Company’s
Governing Instruments. When executing documents or otherwise acting in such capacities for the
Company or the Subsidiaries, such persons shall use their respective titles in the Company or the
Subsidiaries.

          (d) Subject to Section 2(d), the Manager is authorized, for and on behalf, and at the
sole cost and expense of the Company and the Subsidiaries, to employ securities dealers for the
purchase and sale of Investments as the Manager deems necessary or appropriate, in its sole
discretion. All trades will be executed with established securities dealers which are approved by
the Manager selected in a manner consistent with best execution. No concessions on prices will be
made to any dealer by reason of services or goods provided or offered to be provided. In addition
to the gross dealing price, the Manager will take into account the level of charges, mark up or
mark down made by the counterparty and the creditworthiness of the counterparty.

          (e) The Company (including the Board of Directors) agrees to take, or cause to be taken, all
actions reasonably required to permit and enable the Manager to carry out its duties and
obligations under this Agreement, including, without limitation, all steps reasonably necessary to
allow the Manager to file any registration statement on behalf of the Company in a timely manner or
to deliver any financial statements or other reports with respect to the Company or any Subsidiary.
If the Manager is not able to provide a service, or in the reasonable judgment of the Manager it
is not prudent to provide a service, without the approval of the Board of Directors or the
Independent Directors, as applicable, then the Manager shall use good faith reasonable efforts to
promptly obtain such approval and shall be excused from providing such service (and shall not be in
breach of this Agreement) until the applicable approval has been obtained.

     Section 4. Agency. The Manager shall act as agent of the Company and the Subsidiaries
in making, acquiring, financing and disposing of Investments, disbursing and collecting the funds
of the Company and the Subsidiaries, paying the debts and fulfilling the obligations of the Company
and the Subsidiaries, supervising the performance of professionals engaged by or on behalf of the
Company and the Subsidiaries and handling, prosecuting and settling any claims of or against the
Company and the Subsidiaries, the Board of Directors, holders of the Company’s securities or
representatives or assets of the Company and the Subsidiaries.

     Section 5. Bank Accounts. At the direction of the Board of Directors, the Manager may
establish and maintain one or more bank accounts in the name of the Company or any Subsidiary (any
such account, a “Company Account”), and may collect and deposit funds into any such Company
Account or Company Accounts, and disburse funds from any such Company Account, under such terms and
conditions as the Board of Directors may approve; and the Manager shall from time to time render

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appropriate accountings of such collections and payments to the Board of Directors and, upon
request, to the auditors of the Company or any Subsidiary.

     Section 6. Records; Confidentiality. The Manager shall maintain appropriate books of
accounts and records relating to services performed under this Agreement, and such books of account
and records shall be accessible for inspection by representatives of the Company or any Subsidiary
at any time during normal business hours upon reasonable advance notice. The Manager shall keep
confidential any and all information obtained in connection with the services rendered under this
Agreement and shall not disclose any such information (or use the same except in furtherance of its
duties under this Agreement) to unaffiliated third parties except (i) with the prior written
consent of the Board of Directors; (ii) to legal counsel, accountants and other professional
advisors; (iii) to appraisers, financing sources and others in the ordinary course of the Company’s
and the Subsidiaries’ business; (iv) to governmental officials having jurisdiction over the Company
or any Subsidiary; (v) in connection with any governmental or regulatory filings of the Company or
any Subsidiary, or disclosure or presentations to Company investors; (vi) as required by law or
legal process to which the Manager or any Person to whom disclosure is permitted hereunder is a
party; or (vii) to the extent such information is otherwise publicly available through the actions
of a Person other than the Manager not resulting from the Manager’s violation of this
Section 6. The provisions of this Section 6 shall survive the expiration or
earlier termination of this Agreement for a period of one year.

     Section 7. Obligations of Manager; Restrictions.

          (a) The Manager shall require each seller or transferor of investment assets to the Company
and the Subsidiaries to make such representations and warranties regarding such assets as may, in
the judgment of the Manager, be necessary and appropriate. In addition, the Manager shall take
such other action as it deems necessary or appropriate with regard to the protection of the
Investments.

          (b) The Manager shall refrain from any action that, in its sole judgment made in good faith,
(i) is not in compliance with the Guidelines, (ii) would adversely and materially affect the status
of the Company as a REIT under the Code, (iii) would adversely and materially affect the Company’s
or any Subsidiary’s status as an entity intended to be exempted or excluded from investment company
status under the Investment Company Act or (iv) would violate any law, rule or regulation of any
governmental body or agency having jurisdiction over the Company or any Subsidiary or that would
otherwise not be permitted by the Company’s Governing Instruments. If the Manager is ordered to
take any such action by the Board of Directors, the Manager shall promptly notify the Board of
Directors of the Manager’s judgment that such action would adversely and materially affect such
status or violate any such law, rule or regulation or the Governing Instruments. Notwithstanding
the foregoing, the Manager, its directors, members, officers, stockholders, managers, personnel,
employees and any Person controlling or controlled by the Manager and any Person providing
sub-advisory services to the Manager shall not be liable to the Company or any Subsidiary, the
Board of Directors, or the Company’s or any Subsidiary’s stockholders, partners or members, for any
act or omission by the Manager, its directors, officers, stockholders or employees except as
provided in Section 11 of this Agreement.

          (c) The Board of Directors shall periodically review the Guidelines and the Company’s
portfolio of Investments but will not review each proposed investment, except as otherwise provided
herein. If a majority of the Independent Directors determine in their periodic review of
transactions that a particular transaction does not comply with the Guidelines, then a majority of
the Independent Directors will consider what corrective action, if any, can be taken. The Manager
shall be permitted to rely upon the direction of the Secretary of the Company to evidence the
approval of the Board of Directors or the Independent Directors with respect to a proposed
investment.

- 11 -

 

          (d) The Manager shall at all times during the term of this Agreement maintain “errors and
omissions” insurance coverage and other insurance coverage which is customarily carried by asset
and investment managers performing functions similar to those of the Manager under this Agreement
with respect to assets similar to the assets of the Company and the Subsidiaries, in an amount
which is comparable to that customarily maintained by other managers or servicers of similar
assets.

     Section 8. Compensation.

          (a) During the Initial Term and any Renewal Term, the Company shall pay the Manager the
Management Fee quarterly in arrears commencing with the quarter in which this Agreement was
executed (with such initial payment pro-rated based on the number of days during such quarter that
this Agreement was in effect). The Management Fee is payable independent of the performance of the
Company’s Investments.

          (b) The Manager shall compute each installment of the Management Fee within 30 days after the
end of the fiscal quarter with respect to which such installment is payable. A copy of the
computations made by the Manager to calculate such installment shall thereafter, for informational
purposes only and subject in any event to Section 13(a) of this Agreement, promptly be
delivered to the Board of Directors and, upon such delivery, payment of such installment of the
Management Fee shown therein shall be due and payable in cash no later than the date which is five
business days after the date of delivery to the Board of Directors of such computations.

          (c) As a component of the Manager’s compensation, the Company may in the future issue to
personnel of the Manager stock-based compensation under the Company’s equity incentive plan.

          (d) The Management Fee is subject to adjustment pursuant to and in accordance with the
provisions of Section 13(a) of this Agreement.

          (e) The Manager agrees to reduce the Management Fee (but not below zero) in respect of any
equity investment the Company may decide to make in any Legacy Securities PPIF or Legacy Loan PPFIF
managed by the Manager or any of its Affiliates by the amount of the fees payable to the Manager or
its Affiliates under the Legacy Securities PPIF or Legacy Loan PPFIF with regard to the Company’s
equity investment. However, the Manager’s Management Fee shall not be reduced in respect of any
equity investment the Company may decide to make in a Legacy Securities PPIF or Legacy Loan PPIF
managed by an entity other than the Manager or any of its Affiliates.

     Section 9. Expenses of the Company.

          (a) The Company shall pay all of its expenses and shall reimburse the Manager for documented
expenses of the Manager incurred on its behalf (collectively, the “Expenses”) excepting
only those expenses that are specifically the responsibility of the Manager pursuant to Section
2 of this Agreement. Without limiting the generality of the foregoing, it is specifically
agreed that the following costs and expenses of the Company or any Subsidiary shall be paid by the
Company and shall not be paid by the Manager or Affiliates of the Manager:

               (i) costs and expenses associated with the issuance and transaction costs incident to the
acquisition, disposition and financing of Investments;

               (ii) costs of legal, tax, accounting, consulting, auditing, administrative and other similar
services rendered for the Company and the Subsidiaries by providers retained by the Manager or, if
provided by the Manager’s personnel, in amounts which are no greater than those which

- 12 -

 

would be payable to outside professionals or consultants engaged to perform such services
pursuant to agreements negotiated on an arm’s-length basis;

               (iii) the compensation and expenses of the Company’s directors and the cost of liability
insurance to indemnify the Company’s directors and officers;

               (iv) costs associated with the establishment and maintenance of any of the Company’s or any
Subsidiary’s credit or other indebtedness of the Company or any Subsidiary (including commitment
fees, accounting fees, legal fees, closing and other similar costs) or any of the Company’s or any
Subsidiary’s securities offerings;

               (v) expenses connected with communications to holders of the Company’s or any Subsidiary’s
securities and other bookkeeping and clerical work necessary in maintaining relations with holders
of such securities and in complying with the continuous reporting and other requirements of
governmental bodies or agencies, including, without limitation, all costs of preparing and filing
required reports with the Securities and Exchange Commission, the costs payable by the Company to
any transfer agent and registrar in connection with the listing and/or trading of the Company’s
stock on any exchange, the fees payable by the Company to any such exchange in connection with its
listing, costs of preparing, printing and mailing the Company’s annual report to its stockholders
and proxy materials with respect to any meeting of the Company’s stockholders;

               (vi) costs associated with any computer software or hardware, electronic equipment or
purchased information technology services from third party vendors that is used by the Company
and/or the Subsidiaries;

               (vii) expenses incurred by managers, officers, personnel and agents of the Manager for travel
on the Company’s behalf and other out-of-pocket expenses incurred by managers, officers, personnel
and agents of the Manager in connection with the purchase, financing, refinancing, sale or other
disposition of an Investment or establishment and maintenance of any of the Company’s or any
Subsidiary’s repurchase agreements or any of their securities offerings;

               (viii) costs and expenses incurred with respect to market information systems and
publications, research publications and materials, and settlement, clearing and custodial fees and
expenses;

               (ix) compensation and expenses of the Company’s custodian and transfer agent, if any;

               (x) the costs of maintaining compliance with all U.S. federal, state and local rules and
regulations or those of any other regulatory agency;

               (xi) all taxes and license fees;

               (xii) all insurance costs incurred in connection with the operation of the Company’s and the
Subsidiaries’ business, except for the costs attributable to the insurance that the Manager elects
to carry for itself and its personnel;

               (xiii) costs and expenses incurred in contracting with third parties, including Affiliates of
the Manager, for the servicing and special servicing of the assets of the Company and the
Subsidiaries;

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               (xiv) all other costs and expenses relating to the Company’s and the Subsidiaries’ business
and investment operations, including, without limitation, the costs and expenses of acquiring,
owning, protecting, maintaining, developing and disposing of investments, including appraisal,
reporting, audit and legal fees;

               (xv) expenses relating to any office(s) or office facilities, including, but not limited to
disaster backup recovery sites and facilities, maintained for the Company and the Subsidiaries or
Investments separate from the office or offices of the Manager;

               (xvi) expenses connected with the payments of interest, dividends or distributions in cash or
any other form authorized or caused to be made by the Board of Directors to or on account of
holders of the Company’s or any Subsidiary’s securities, including, without limitation, in
connection with any dividend reinvestment plan;

               (xvii) any judgment or settlement of pending or threatened proceedings (whether civil,
criminal or otherwise) against the Company or any Subsidiary, or against any trustee, director,
partner, member or officer of the Company or of any Subsidiary in his, her or its capacity as such
for which the Company or any Subsidiary is required to indemnify such Person by any court or
governmental agency; and

               (xviii) all other expenses actually incurred by the Manager (except as described below) which
are reasonably necessary for the performance by the Manager of its duties and functions under this
Agreement.

          (b) The Company shall have no obligation to reimburse the Manager for the salaries and other
compensation costs of the Manager’s personnel who provide services to the Company under this
Agreement, except that, the Company shall reimburse the Manager for the Company’s allocable share
of the compensation paid by the Manager to its personnel serving as the Company’s Chief Financial
Officer. The Company’s share of such costs shall be based upon the percentage of working time
devoted by such personnel of the Manager to the Company’s affairs as compared to working time spent
on other matters for the Manager. The Manager shall provide the Company with such written detail
as the Company may reasonably request to support the determination of the Company’s share of such
costs. The Manager shall be responsible for the compensation paid by the Manager to its personnel
serving as the Company’s Chief Executive Officer, Chief Investment Officer and Executive Vice
President, Chief Portfolio Manager and Senior Vice President and the Manager’s investment
professionals.

          (c) The Company will be required to pay the Company’s pro rata portion of rent, telephone,
utilities, office furniture, equipment, machinery and other office, internal and overhead expenses
of the Manager and its Affiliates required for the operations of the Company and the Subsidiaries.
These expenses will be allocated between the Manager and the Company based on the ratio of the
Company’s proportion of gross assets compared to all remaining gross assets managed or held by
Invesco or managed or held by the Manager as calculated at each quarter end. The Manager and the
Company will modify this allocation methodology, subject to the Independent Directors’ approval if
the allocation becomes inequitable (i.e., if the Company becomes highly leveraged compared to
Invesco or the Manager’s or Invesco’s other funds and accounts).

          (d) The Manager may, at its option, elect not to seek reimbursement for certain expenses
during a given quarterly period, which determination shall not be deemed to construe a waiver of
reimbursement for similar expenses in future periods. In the event that the Company’s initial
public offering is consummated, the Company will reimburse the Manager and its Affiliates for all
organizational, formation and offering costs it has incurred on behalf of the Company.

- 14 -

 

          (e) The provisions of this Section 9 shall survive the expiration or earlier
termination of this Agreement to the extent such expenses have previously been incurred or are
incurred in connection with such expiration or termination.

     Section 10. Calculations of Expenses. The Manager shall prepare a statement
documenting the Expenses during each fiscal quarter, and shall deliver such statement to the
Company within 30 days after the end of each fiscal quarter. Expenses shall be reimbursed by the
Company to the Manager no later than the fifth business day immediately following the date of
delivery of such statement; provided, however, that such reimbursements may be offset by the
Manager against amounts due to the Company and the Subsidiaries. The provisions of this
Section 10 shall survive the expiration or earlier termination of this Agreement.

     Section 11. Limits of the Manager’s Responsibility; Indemnification.

          (a) The Manager assumes no responsibility under this Agreement other than to render the
services called for under this Agreement in good faith and shall not be responsible for any action
of the Board of Directors in following or declining to follow any advice or recommendations of the
Manager, including as set forth in Section 7(b) of this Agreement. The Manager, its
officers, stockholders, members, managers, partners, personnel, directors, any Person controlling
or controlled by the Manager and any Person providing sub-advisory services to the Manager and the
officers, directors, managers, partners and personnel of the Manager, its officers, directors,
managers, partners and personnel will not be liable to the Company or any Subsidiary, to the Board
of Directors, or the Company’s or any Subsidiary’s stockholders or partners for any acts or
omissions by any such Person (including, without limitation, trade errors that may result from
ordinary negligence, such as errors in the investment decision making process or in the trade
process), performed pursuant to or in accordance with this Agreement, except by reason of acts
constituting bad faith, willful misconduct, gross negligence or reckless disregard of the Manager’s
duties under this Agreement, as determined by a final non-appealable order of a court of competent
jurisdiction. The Company and the Operating Partnership shall, to the full extent lawful,
reimburse, indemnify and hold the Manager, its officers, stockholders, members, managers,
directors, personnel, any Person controlling or controlled by the Manager and any Person providing
sub-advisory services to the Manager, together with the managers, officers, directors and personnel
of the Manager, its officers, members, directors, managers and personnel (each a “Manager
Indemnified Party”), harmless of and from any and all expenses, losses, damages, liabilities,
demands, charges and claims of any nature whatsoever (including attorneys’ fees) in respect of or
arising from any acts or omissions of such Manager Indemnified Party made in good faith in the
performance of the Manager’s duties under this Agreement and not constituting the Manager
Indemnified Party’s bad faith, willful misconduct, gross negligence or reckless disregard of the
Manager’s duties under this Agreement.

          (b) The Manager shall, to the full extent lawful, reimburse, indemnify and hold the Company
(or any Subsidiary), its and their directors and officers, personnel, agents and each other Person,
if any, controlling or controlled by the Company (each, a “Company Indemnified Party” and
together with a Manager Indemnified Party, an “Indemnitee”), harmless of and from any and
all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever
(including attorneys’ fees) in respect of or arising from acts of the Manager constituting bad
faith, willful misconduct, gross negligence or reckless disregard of its duties under this
Agreement or any claims by the Manager’s personnel relating to the terms and conditions of their
employment by the Manager.

          (c) The Indemnitee will promptly notify the party against whom indemnity is claimed (the
“Indemnitor”) of any claim for which it seeks indemnification; provided, however, that the
failure to so notify the Indemnitor will not relieve the Indemnitor from any liability which it may
have hereunder. The Indemnitor shall have the right to assume the defense and settlement of such
claim;

- 15 -

 

provided, that the Indemnitor notifies the Indemnitee of its election to assume such defense
and settlement within 30 days after the Indemnitee gives the Indemnitor notice of the claim. In
such case, the Indemnitee will not settle or compromise such claim, and the Indemnitor will not be
liable for any such settlement made without its prior written consent. If the Indemnitor is
entitled to, and does, assume such defense by delivering the aforementioned notice to the
Indemnitee, the Indemnitee will (i) have the right to approve the Indemnitor’s counsel (which
approval will not be unreasonably withheld, delayed or conditioned), (ii) be obligated to cooperate
in furnishing evidence and testimony and in any other manner in which the Indemnitor may reasonably
request and (iii) be entitled to participate in (but not control) the defense of any such action,
with its own counsel and at its own expense.

          (d) The provisions of this Section 11 shall survive the expiration or earlier
termination of this Agreement.

     Section 12. No Joint Venture. Nothing in this Agreement shall be construed to make
the Company or any Subsidiary, on the one hand, and the Manager or Affiliate of the Manager, on the
other hand, partners or joint venturers or impose any liability as such on either of them.

     Section 13. Term; Termination.

          (a) Until this Agreement is terminated in accordance with its terms, this Agreement shall be
in effect until           , 2011 (the “Initial Term”) and shall be automatically renewed
for a one-year term each anniversary date thereafter (a “Renewal Term”) unless at least
two-thirds of the Independent Directors agree that (i) there has been unsatisfactory performance by
the Manager that is materially detrimental to the Company and the Subsidiaries or (ii) the
compensation payable to the Manager hereunder is unfair; provided that the Company shall not have
the right to terminate this Agreement under clause (ii) above if the Manager agrees to continue to
provide the services under this Agreement at a reduced fee that at least two-thirds of the
Independent Directors determines to be fair pursuant to the procedure set forth below. The Company
may elect not to renew this agreement upon the expiration of the Initial Term or any Renewal Term
and upon 180 days’ prior written notice to the Manager (the “Termination Notice”). If the
Company issues the Termination Notice, the Company shall be obligated to (i) specify the reason for
nonrenewal in the Termination Notice and (ii) pay the Manager the Termination Fee before or on the
last day of the Initial Term or Renewal Term (the “Effective Termination Date”); provided,
however, that in the event that such Termination Notice is given in connection with a determination
that the compensation payable to the Manager is unfair, the Manager shall have the right to
renegotiate such compensation by delivering to the Company, no fewer than 60 days prior to the
prospective Effective Termination Date, written notice (any such notice, a “Notice of Proposal
to Negotiate”) of its intention to renegotiate its compensation under this Agreement.
Thereupon, the Company (represented by the Independent Directors) and the Manager shall endeavor to
negotiate in good faith the revised compensation payable to the Manager under this Agreement.
Provided that the Manager and at least two-thirds of the Independent Directors agree to the terms
of the revised compensation to be payable to the Manager within 60 days following the receipt of
the Notice of Proposal to Negotiate, the Termination Notice shall be deemed of no force and effect
and this Agreement shall continue in full force and effect on the terms stated in this Agreement,
except that the compensation payable to the Manager hereunder shall be the revised compensation
then agreed upon by the parties to this Agreement. The Company and the Manager agree to execute
and deliver an amendment to this Agreement setting forth such revised compensation promptly upon
reaching an agreement regarding the same. In the event that the Company and the Manager are unable
to agree to the terms of the revised compensation to be payable to the Manager during such 60-day
period, this Agreement shall terminate, such termination to be effective on the date which is the
later of (A) 10 days following the end of such 60-day period and (B) the Effective Termination Date
originally set forth in the Termination Notice.

- 16 -

 

          (b) In recognition of the level of the upfront effort required by the Manager to structure and
acquire the assets of the Company and the Subsidiaries and the commitment of resources by the
Manager, in the event that this Agreement is terminated in accordance with the provisions of
Section 13(a) of this Agreement, unless terminated for cause the Company shall pay to the
Manager, on the date on which such termination is effective, a termination fee (the
“Termination Fee”) equal to three times the sum of the average annual Management Fee earned
by the Manager during the 24-month period immediately preceding the date of such termination,
calculated as of the end of the most recently completed fiscal quarter prior to the date of
termination. The obligation of the Company to pay the Termination Fee shall survive the
termination of this Agreement.

          (c) No later than 180 days prior to the expiration of the Initial Term or Renewal Term, the
Manager may deliver written notice to the Company informing it of the Manager’s intention to
decline to renew this Agreement, whereupon this Agreement shall not be renewed and extended and
this Agreement shall terminate effective on the anniversary date of this Agreement next following
the delivery of such notice. The Company is not required to pay to the Manager the Termination Fee
if the Manager terminates this Agreement pursuant to this 

Section 13(c).

          (d) If this Agreement is terminated pursuant to Section 13, such termination shall be
without any further liability or obligation of either party to the other, except as provided in
Sections 6, 9, 10, 13(b), 15(b), and 16 of this
Agreement. In addition, Sections 11 and 23 of this Agreement shall survive
termination of this Agreement.

     Section 14. Assignment.

          (a) Except as set forth in Section 14(b) of this Agreement, this Agreement shall
terminate automatically in the event of its assignment, in whole or in part, by the Manager, unless
such assignment is consented to in writing by the Company with the consent of a majority of the
Independent Directors; provided, however, that no such consent shall be required in the case of an
assignment by the Manager to an Affiliate of Invesco. Any such permitted assignment shall bind the
assignee under this Agreement in the same manner as the Manager is bound, and the Manager shall be
liable to the Company for all errors or omissions of the assignee under any such assignment. In
addition, the assignee shall execute and deliver to the Company a counterpart of this Agreement
naming such assignee as Manager. This Agreement shall not be assigned by the Company without the
prior written consent of the Manager, except in the case of assignment by the Company to another
REIT or other organization which is a successor (by merger, consolidation, purchase of assets, or
other transaction) to the Company, in which case such successor organization shall be bound under
this Agreement and by the terms of such assignment in the same manner as the Company is bound under
this Agreement.

          (b) Notwithstanding any provision of this Agreement, the Manager may subcontract and assign
any or all of its responsibilities under Sections 2(b), 2(c) and 2(d) of
this Agreement to any of its Affiliates in accordance with the terms of this Agreement applicable
to any such subcontract or assignment, and the Company hereby consents to any such assignment and
subcontracting. In addition, provided that the Manager provides prior written notice to the
Company for informational purposes only, nothing contained in this Agreement shall preclude any
pledge, hypothecation or other transfer of any amounts payable to the Manager under this Agreement.
In addition, the Manager may assign this Agreement to any of its Affiliates without the approval
of the Company’s Independent Directors if such assignment does not require the Company’s approval
under the Investment Company Act.

- 17 -

 

     Section 15. Termination for Cause.

          (a) The Company may terminate this Agreement effective upon 30 days’ prior written notice of
termination from the Company to the Manager, without payment of any Termination Fee, if (i) the
Manager, its agents or its assignees materially breaches any provision of this Agreement and such
breach shall continue for a period of 30 days after written notice thereof specifying such breach
and requesting that the same be remedied in such 30-day period (or 45 days after written notice of
such breach if the Manager takes steps to cure such breach within 30 days of the written notice),
(ii) the Manager engages in any act of fraud, misappropriation of funds, or embezzlement against
the Company or any Subsidiary, (iii) there is an event of any gross negligence on the part of the
Manager in the performance of its duties under this Agreement, (iv) there is a commencement of any
proceeding relating to the Manager’s Bankruptcy or insolvency, including an order for relief in an
involuntary bankruptcy case or the Manager authorizing or filing a voluntary bankruptcy petition,
(v) there is a dissolution of the Manager or (vi) the Manager is convicted of (including a plea of
nolo contendere) a felony.

          (b) The Manager may terminate this Agreement effective upon 60 days’ prior written notice of
termination to the Company in the event that the Company shall default in the performance or
observance of any material term, condition or covenant contained in this Agreement and such default
shall continue for a period of 30 days after written notice thereof specifying such default and
requesting that the same be remedied in such 30-day period. The Company is required to pay to the
Manager the Termination Fee if the termination of this Agreement is made pursuant to this
Section 15(b).

          (c) The Manager may terminate this Agreement, without payment of any Termination Fee, in the
event the Company becomes regulated as an “investment company” under the Investment Company Act,
with such termination deemed to have occurred immediately prior to such event.

     Section 16. Action Upon Termination. From and after the effective date of termination
of this Agreement, pursuant to Sections 13 or 15 of this Agreement, the Manager
shall not be entitled to compensation for further services under this Agreement, but shall be paid
all compensation accruing to the date of termination and, if terminated pursuant to
Section 13(a) or 15(b), the applicable Termination Fee. Upon such termination, the
Manager shall forthwith:

               (i) after deducting any accrued compensation and reimbursement for Expenses to which it is
then entitled, pay over to the Company or a Subsidiary all money collected and held for the account
of the Company or a Subsidiary pursuant to this Agreement;

               (ii) deliver to the Board of Directors a full accounting, including a statement showing all
payments collected by it and a statement of all money held by it, covering the period following the
date of the last accounting furnished to the Board of Directors with respect to the Company or a
Subsidiary; and

               (iii) deliver to the Board of Directors all property and documents of the Company or any
Subsidiary then in the custody of the Manager.

     Section 17. Release of Money or Other Property Upon Written Request. The Manager
agrees that any money or other property of the Company or any Subsidiary held by the Manager under
this Agreement shall be held by the Manager as custodian for the Company or Subsidiary, and the
Manager’s records shall be appropriately marked clearly to reflect the ownership of such money or
other property by the Company or such Subsidiary. Upon the receipt by the Manager of a written
request signed by a duly authorized officer of the Company requesting the Manager to release to the
Company or

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any Subsidiary any money or other property then held by the Manager for the account of the
Company or any Subsidiary under this Agreement, the Manager shall release such money or other
property to the Company or any Subsidiary within a reasonable period of time, but in no event later
than 30 days following such request. The Manager shall not be liable to the Company, any
Subsidiary, the Independent Directors, or the Company’s or a Subsidiary’s stockholders or partners
for any acts performed or omissions to act by the Company or any Subsidiary in connection with the
money or other property released to the Company or any Subsidiary in accordance with the second
sentence of this Section 17. The Company and any Subsidiary shall indemnify the Manager
and its officers, directors, personnel, managers, and officers against any and all expenses,
losses, damages, liabilities, demands, charges and claims of any nature whatsoever, which arise in
connection with the Manager’s release of such money or other property to the Company or any
Subsidiary in accordance with the terms of this Section 17. Indemnification pursuant to
this provision shall be in addition to any right of the Manager to indemnification under
Section 11 of this Agreement.

     Section 18. Representations and Warranties.

          (a) The Company hereby represents and warrants to the Manager as follows:

               (i) The Company is duly organized, validly existing and in good standing under the laws of the
State of Maryland, has the corporate power and authority and the legal right to own and operate its
assets, to lease any property it may operate as lessee and to conduct the business in which it is
now engaged and is duly qualified as a foreign corporation and in good standing under the laws of
each jurisdiction where its ownership or lease of property or the conduct of its business requires
such qualification, except for failures to be so qualified, authorized or licensed that could not
in the aggregate have a material adverse effect on the business operations, assets or financial
condition of the Company.

               (ii) The Company has the corporate power and authority and the legal right to make, deliver
and perform this Agreement and all obligations required hereunder and has taken all necessary
corporate action to authorize this Agreement on the terms and conditions hereof and the execution,
delivery and performance of this Agreement and all obligations required hereunder. No consent of
any other Person, including stockholders and creditors of the Company, and no license, permit,
approval or authorization of, exemption by, notice or report to, or registration, filing or
declaration with, any governmental authority is required by the Company in connection with this
Agreement or the execution, delivery, performance, validity or enforceability of this Agreement and
all obligations required hereunder. This Agreement has been, and each instrument or document
required hereunder will be, executed and delivered by a duly authorized officer of the Company, and
this Agreement constitutes, and each instrument or document required hereunder when executed and
delivered hereunder will constitute, the legally valid and binding obligation of the Company
enforceable against the Company in accordance with its terms.

               (iii) The execution, delivery and performance of this Agreement and the documents or
instruments required hereunder will not violate any provision of any existing law or regulation
binding on the Company, or any order, judgment, award or decree of any court, arbitrator or
governmental authority binding on the Company, or the Governing Instruments of, or any securities
issued by the Company or of any mortgage, indenture, lease, contract or other agreement, instrument
or undertaking to which the Company is a party or by which the Company or any of its assets may be
bound, the violation of which would have a material adverse effect on the business operations,
assets or financial condition of the Company and its Subsidiaries, if any, taken as a whole, and
will not result in, or require, the creation or imposition of any lien or any of its property,
assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or
other agreement, instrument or undertaking.

- 19 -

 

          (b) The Manager hereby represents and warrants to the Company as follows:

               (i) The Manager is duly organized, validly existing and in good standing under the laws of the
State of Delaware, has the limited liability company power and authority and the legal right to own
and operate its assets, to lease the property it operates as lessee and to conduct the business in
which it is now engaged and is duly qualified as a foreign corporation and in good standing under
the laws of each jurisdiction where its ownership or lease of property or the conduct of its
business requires such qualification, except for failures to be so qualified, authorized or
licensed that could not in the aggregate have a material adverse effect on the business operations,
assets or financial condition of the Manager.

               (ii) The Manager has the corporate power and authority and the legal right to make, deliver
and perform this Agreement and all obligations required hereunder and has taken all necessary
corporate action to authorize this Agreement on the terms and conditions hereof and the execution,
delivery and performance of this Agreement and all obligations required hereunder. No consent of
any other Person, including members and creditors of the Manager, and no license, permit, approval
or authorization of, exemption by, notice or report to, or registration, filing or declaration
with, any governmental authority is required by the Manager in connection with this Agreement or
the execution, delivery, performance, validity or enforceability of this Agreement and all
obligations required hereunder. This Agreement has been, and each instrument or document required
hereunder will be, executed and delivered by a duly authorized officer of the Manager, and this
Agreement constitutes, and each instrument or document required hereunder when executed and
delivered hereunder will constitute, the legally valid and binding obligation of the Manager
enforceable against the Manager in accordance with its terms.

               (iii) The execution, delivery and performance of this Agreement and the documents or
instruments required hereunder will not violate any provision of any existing law or regulation
binding on the Manager, or any order, judgment, award or decree of any court, arbitrator or
governmental authority binding on the Manager, or the Governing Instruments of, or any securities
issued by the Manager or of any mortgage, indenture, lease, contract or other agreement, instrument
or undertaking to which the Manager is a party or by which the Manager or any of its assets may be
bound, the violation of which would have a material adverse effect on the business operations,
assets or financial condition of the Manager, and will not result in, or require, the creation or
imposition of any lien or any of its property, assets or revenues pursuant to the provisions of any
such mortgage, indenture, lease, contract or other agreement, instrument or undertaking.

     Section 19. Notices. Unless expressly provided otherwise in this Agreement, all
notices, requests, demands and other communications required or permitted under this Agreement
shall be in writing and shall be deemed to have been duly given, made and received when delivered
against receipt or upon actual receipt of (i) personal delivery, (ii) delivery by reputable
overnight courier, (iii) delivery by facsimile transmission with telephonic confirmation or
(iv) delivery by registered or certified mail, postage prepaid, return receipt requested, addressed
as set forth below:

	 	(a)	 	If to the Company:
	 
	 	 	 	Invesco Mortgage Capital Inc.

1555 Peachtree Street, NE

Suite 1800

Atlanta, Georgia 30309

Attention: Robert H. Rigsby, Esq.

- 20- 

 

	 	 	 	with a copy to:
	 
	 	 	 	Clifford Chance US LLP

31 W 52nd Street

New York, NY 10019

Attention: Jay L. Bernstein, Esq.
	 
	 	(b)	 	If to the Manager:
	 
	 	 	 	Invesco Institutional (N.A.), Inc.

1555 Peachtree Street, NE

Suite 1800

Atlanta, Georgia 30309

Attention: Jeffrey H. Kupor, Esq.
	 
	 	 	 	with a copy to:
	 
	 	 	 	Clifford Chance US LLP

31 W 52nd Street

New York, NY 10019

Attention: Jay L. Bernstein, Esq.

     Either party may alter the address to which communications or copies are to be sent by giving
notice of such change of address in conformity with the provisions of this Section 19 for
the giving of notice.

     Section 20. Binding Nature of Agreement; Successors and Assigns. This Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal
representatives, successors and permitted assigns as provided in this Agreement.

     Section 21. Entire Agreement. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter of this Agreement, and
supersedes all prior and contemporaneous agreements, understandings, inducements and conditions,
express or implied, oral or written, of any nature whatsoever with respect to the subject matter of
this Agreement. The express terms of this Agreement control and supersede any course of
performance and/or usage of the trade inconsistent with any of the terms of this Agreement.

     Section 22. Amendments. This Agreement, nor the terms hereof, may not be modified,
amended or supplemented other than by an agreement in writing signed by the parties hereto.

     Section 23. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES TO THE
CONTRARY. EACH OF THE PARTIES HERETO IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR ANY DISTRICT WITHIN SUCH
STATE FOR THE PURPOSE OF ANY ACTION OR JUDGMENT RELATING TO OR ARISING OUT OF THIS AGREEMENT OR ANY
OF THE TRANSACTIONS CONTEMPLATED HEREBY AND TO THE LAYING OF VENUE IN SUCH COURT.

- 21- 

 

     Section 24. No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of any party hereto, any right, remedy, power or privilege hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. No
waiver of any provision hereunder shall be effective unless it is in writing and is signed by the
party asserted to have granted such waiver.

     Section 25. Headings. The headings of the sections of this Agreement have been
inserted for convenience of reference only and shall not be deemed part of this Agreement.

     Section 26. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same instrument. This
Agreement shall become binding when one or more counterparts of this Agreement, individually or
taken together, shall bear the signatures of all of the parties reflected hereon as the
signatories.

     Section 27. Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     Section 28. Gender. Words used herein regardless of the number and gender
specifically used, shall be deemed and construed to include any other number, singular or plural,
and any other gender, masculine, feminine or neuter, as the context requires.

     Section 29. Survival of Representations and Warranties. All representations and
warranties made hereunder, and in any document, certificate or statement delivered pursuant hereto
or in connection herewith, shall survive the execution and delivery of this Agreement.

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

	 	 	 	 	 	 	 	 	 
	 	 	INVESCO MORTGAGE CAPITAL INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	IAS OPERATING PARTNERSHIP LP	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	INVESCO MORTGAGE CAPITAL INC.,

Its General Partner	 	 
	 
	 

	 		 	By:	 	 	 	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	IAS ASSET I LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	INVESCO INSTITUTIONAL (N.A.), INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 

 

 

Exhibit A

	•	 	No investment shall be made that would cause the Company to fail to qualify as a REIT for
U.S. federal income tax purposes;
	 
	•	 	No investment shall be made that would cause the Company to be regulated as an investment
company under the Investment Company Act;
	 
	•	 	The Company’s investments will be in Agency RMBS, non-Agency RMBS, CMBS and residential and
commercial mortgage loans; and
	 
	•	 	Until appropriate investments can be identified, the Manager may invest the proceeds of any
offering in interest-bearing, short-term investments, including money market accounts and/or
funds, that are consistent with the Company’s intention to qualify as a REIT.

Exh. A-1EX-10.7 FORM OF RESTRICTED COMMON STOCK AWARE AGRM

EXHIBIT 10.7

INVESCO
MORTGAGE CAPITAL INC.

2009 EQUITY INCENTIVE PLAN

Form of Restricted Common Stock Award Agreement

     THIS AGREEMENT is made by and between Invesco Mortgage Capital Inc., a Maryland corporation
(the “Company”), and
_________ (the
“Grantee”), dated as of the ______ day of
____________,
______ (the “Effective Date”).

     WHEREAS, the Company maintains the 2009 Equity Incentive Plan (the “Plan”) (capitalized terms
used but not otherwise defined herein shall have the respective meanings ascribed thereto by the
Plan);

     WHEREAS,
the Grantee is ____________ of a Participating Company; and

     WHEREAS, in accordance with the Plan, the Committee has determined that it is in the best
interests of the Company and its stockholders to grant Restricted Stock to the Grantee subject to
the terms and conditions set forth below.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1.      Grant of Restricted Stock.

     The Company hereby grants the Grantee ___Shares of Restricted Stock of the Company,
subject to the following terms and conditions and subject to the provisions of the Plan. The Plan
is incorporated herein by reference as though set forth herein in its entirety. To the extent such
terms or conditions conflict with any provision of the Plan, the terms and conditions set forth
herein shall govern.

     2.      Restrictions and Conditions.

     The Restricted Stock awarded pursuant to this Agreement and the Plan shall be subject to the
following restrictions and conditions:

	 	(i)	 	Subject to clauses (iii) and (iv) below, the period of
restriction with respect to Shares granted hereunder (the “Restriction Period”)
shall begin on the Effective Date and lapse on the following schedule:

 

__________________

 

__________________

 

__________________

	 	 	 	For purposes of the Plan and this Agreement, Shares with respect to which the
Restriction Period has lapsed shall be vested. Notwithstanding the foregoing, the
Restriction Period with respect to such Shares shall only lapse as to whole Shares.
Subject to the provisions of the Plan and this Agreement, during the Restriction
Period, the Grantee shall not be permitted voluntarily or involuntarily to sell,
transfer, pledge, hypothecate, alienate, encumber or assign Shares of Restricted
Stock awarded under the Plan (or have such Shares attached or garnished).

 

 

	 	(ii)	 	Except as provided in the foregoing clause (i), below in this
clause (ii) or in the Plan, the Grantee shall have, in respect of the Shares of
Restricted Stock, all of the rights of a stockholder of the Company, including
the right to vote the Shares. Unless otherwise provided by the Committee, the
Grantee shall be entitled to receive any cash dividends on any shares of
Restricted Stock (whether or not then subject to restriction) which have not
been forfeited. Shares (not subject to restrictions) shall be delivered (or
otherwise be deliverable) to the Grantee promptly after, and only after, such
Shares have vested (i.e., at such time as the Restriction Period shall lapse
with respect thereto) without forfeiture in respect of such Shares.
	 
	 	(iii)	 	Subject to clause (iv) below, upon the Grantee’s Termination
of Service by the Company for Cause or by the Grantee’s termination for any
reason, during the Restriction Period, then all Shares still subject to
restriction shall thereupon, and with no further action, be forfeited by the
Grantee.
	 
	 	(iv)	 	In the event the Grantee has a Termination of Service on
account of death, Disability or Retirement or on account of Termination of
Service by the Company for any reason other than for Cause, during the
Restriction Period, then restrictions under the Plan will immediately lapse on
all Restricted Stock.

     3.      Miscellaneous.

	 	(a)	 	THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAW WHICH
COULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW
YORK. The captions of this Agreement are not part of the provisions hereof and shall
have no force or effect. This Agreement may not be amended or modified except by a
written agreement executed by the parties hereto or their respective successors and
legal representatives. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of
this Agreement.
	 
	 	(b)	 	All notices hereunder shall be in writing and, if to the Company or the
Committee, shall be delivered to the Board or mailed to its principal office, addressed
to the attention of the Board; and if to the Grantee, shall be delivered personally or
mailed to the Grantee at the address appearing in the records of the Company. Such
addresses may be changed at any time by written notice to the other party given in
accordance with this paragraph 3(b).
	 
	 	(c)	 	The failure of the Grantee or the Company to insist upon strict compliance with
any provision of this Agreement or the Plan, or to assert any right the Grantee or the
Company, respectively, may have under this Agreement or the Plan, shall not be deemed
to be a waiver of such provision or right or any other provision or right of this
Agreement or the Plan.
	 
	 	(d)	 	The Company shall be entitled to withhold from any payments or deemed payments
any amount of tax withholding it determines to be required by law.
	 
	 	(e)	 	Nothing in this Agreement shall confer on the Grantee any right to continue in
the employ or other service of the Company or any of its Subsidiaries (if applicable)
or

2

 

	 	 	 	interfere in any way with the right of the Company and its stockholders to terminate
the Grantee’s employment or other service at any time.
	 
	 	(f)	 	This Agreement (together with the Plan) contains the entire agreement between
the parties with respect to the subject matter hereof and supersedes all prior
agreements, written or oral, with respect thereto.

     IN WITNESS WHEREOF, the Company and the Grantee have executed this Agreement as of the day and
year first above written.

	 	 	 	 	 
	 

	 	INVESCO MORTGAGE CAPITAL INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Grantee:

3

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