exv10w28w4



 






Exhibit 10.28.4




RECORDING REQUESTED BY AND

WHEN RECORDED MAIL TO:




Sidley Austin LLP

One South Dearborn Street

Chicago, Illinois 60603

Attention: Charles E. Schrank




 

FELCOR ESMERALDA (SPE), L.L.C., as trustor

And

FELCOR ESMERALDA LEASING (SPE), L.L.C., as trustor




To




FIRST AMERICAN TITLE INSURANCE COMPANY, as trustee




And



GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.,

as Lender




(Lender)




AMENDED AND RESTATED DEED OF TRUST,

SECURITY AGREEMENT AND FIXTURE FILING




Dated: As of December 14, 2007




	 	 	 	 	 	 	 
	 

	 	Location:
	 	44-400 Indian Wells Lane
	 	 
	 

	 	 	 	Indian Wells, CA	 	 
	 
	 	 	 	 	 	 
	 

	 	County:
	 	Riverside	 	 





 


 









 








AMENDED AND RESTATED DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING




          THIS AMENDED AND RESTATED DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING(this “Security
Instrument”) is made as of this 14th day of December, 2007, by FELCOR ESMERALDA (SPE), L.L.C., a
Delaware limited liability company, having its principal place of business at c/o FelCor Lodging
Trust Incorporated, 545 E. John Carpenter Freeway, Suite 1300, Irving, Texas 75062 (“Hotel Owner”)
and FELCOR ESMERALDA LEASING (SPE), L.L.C., a Delaware limited liability company, having its
principal place of business at c/o FelCor Lodging Trust Incorporated, 545 E. John Carpenter
Freeway, Suite 1300, Irving, Texas 75062 (“Hotel Operator”; Hotel Owner and Hotel Operator,
individually and collectively, as the context requires, with such determination to be made by
Lender in its sole discretion, are referred to herein as “Borrower”) to FIRST AMERICAN TITLE
INSURANCE COMPANY, a California corporation, as trustee, having an address at 1 First American Way,
Santa Ana, CA 92707 (“Trustee”) for the benefit for the benefit of GREENWICH CAPITAL FINANCIAL
PRODUCTS, INC., a Delaware corporation, having an address at 600 Steamboat Road, Greenwich, CT
06830, as mortgagee (“Lender”).




W I T N E S S E T H:




     WHEREAS, the Lender is presently the owner and holder of the following described instruments,
as well as other loan documents executed in connection with a mortgage loan which encumbers certain
personal property and real property situate in Riverside County, California, to wit:



     1. That certain Promissory Note by WSRH Indian Wells, L.L.C., a Delaware limited liability
company (“Prior Owner”) in favor of Lender (the “Original Note") dated April 9, 2007, representing
an indebtedness in the original principal amount of Eighty Seven Million Nine Hundred Seventy Five
Thousand and No/100 Dollars ($87,975,000.00) (the “Loan” ), the current principal balance of which
is $87,975,000.00;



     2. That certain Deed of Trust and Security Agreement by Prior Owner to Lender dated April 9,
2007 and recorded on April 11, 2007 as Instrument #2007-0245109 in the office of the County
Recorder of Riverside County, State of California (the “Original Security Instrument");



     3. That certain Assignment of Leases and Rents by Prior Owner in favor of Lender dated April
9, 2007 and recorded on April 11, 2007 as Instrument #2007-0245110 in the office of the County
Recorder of Riverside County, State of California (the “Original Assignment"); and



     4. Certain other agreements, documents and instruments evidencing or securing the Loan or
delivered in connection therewith (together with the Original Note, the Original Security
Instrument and the Original Assignment, collectively, the “Original Loan Documents”);



     WHEREAS, Hotel Owner has acquired the Property from Prior Owner and Hotel Operator is leasing
the Property from Hotel Owner pursuant to the terms and conditions set forth



 









 




in that certain unrecorded lease dated as of the date hereof between Hotel Owner and Hotel
Operator (as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time, the “Hotel Operating Lease”);




     WHEREAS, pursuant to the terms of that certain Assumption Agreement dated as of the date
hereof, by and among Borrower, Lender and Prior Owner (“Assumption Agreement”), Borrower has agreed
to assume the obligations of Prior Owner under the Original Loan Documents and Lender has agreed to
the assumption of the Loan by Borrower in accordance with the terms and conditions set forth in the
Assumption Agreement;



     WHEREAS, pursuant to the Assumption Agreement, Borrower and Lender have entered into that
certain Amended and Restated Loan Agreement, dated as of the date hereof, between Borrower and
Lender (as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time, the “Loan Agreement”);



     WHEREAS, Borrower has agreed to amend, restate and supersede the Original Note pursuant to
that certain Amended and Restated Promissory Note, dated the date hereof, made by Borrower in favor
of Lender in the original principal amount of Eighty Seven Million Nine Hundred Seventy Five
Thousand and No/100 Dollars ($87,975,000.00) (as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time, the “Note").



     WHEREAS, Borrower has agreed to amend and restate the Original Security Instrument, as well as
to modify and restate the terms and conditions of said document, all as set forth in this Security
Instrument, and has agreed that this Security Instrument is given to secure the Loan assumed by
Borrower pursuant to the Assumption Agreement and the Loan Agreement, and evidenced by the Note;



          WHEREAS, Borrower desires to secure the payment of the Debt (as defined in the Loan Agreement)
and the performance of all of its obligations under the Note, the Loan Agreement and the other Loan
Documents (as herein defined); and




          WHEREAS, this Security Instrument is given pursuant to the Loan Agreement, and payment,
fulfillment, and performance by Borrower of its obligations thereunder and under the other Loan
Documents are secured hereby, and each and every term and provision of the Loan Agreement, the
Note, and that certain Amended and Restated Assignment of Leases and Rents of even date herewith
made by Borrower in favor of Lender delivered in connection with this Security Agreement (as the
same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the
"Assignment of Leases”), including the rights, remedies, obligations, covenants, conditions,
agreements, indemnities, representations and warranties of the parties therein, are hereby
incorporated by reference herein as though set forth in full and shall be considered a part of this
Security Instrument (the Loan Agreement, the Note, this Security Instrument, the Assignment of
Leases and Rents and all other documents evidencing or securing the Debt or executed or delivered
in connection therewith, are hereinafter referred to collectively as the “Loan Documents”).




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          NOW THEREFORE, in consideration of the making of the Loan by Lender, the consenting by Lender
to the assumption of the Loan by Borrower and the covenants, agreements, representations and
warranties set forth in this Security Instrument:



ARTICLE 1 — GRANTS OF SECURITY

          Section 1.1 Property Mortgaged. Borrower does hereby irrevocably mortgage, grant,
bargain, sell, pledge, assign, warrant, transfer and convey to Lender and its successors and
assigns the following property, rights, interests and estates now owned, or hereafter acquired by
Borrower (collectively, the “Property”):




          (a) Land. The real property described in Exhibit A attached hereto and made a
part hereof (the “Land”);




          (b) Additional Land. All additional lands, estates and development rights hereafter
acquired by Borrower for use in connection with the Land and the development of the Land and all
additional lands and estates therein which may, from time to time, by supplemental mortgage or
otherwise, be expressly made subject to the lien of this Security Instrument;




          (c) Hotel Operating Lease. The Hotel Operating Lease and the leasehold estate created
thereby and all of Hotel Operator’s estate, right, title and interest in and under the Hotel
Operating Lease and in and to the leasehold estate created thereby, including but not limited to
(i) all assignments, modifications, extensions and renewals of the Hotel Operating Lease, (ii) all
credits, deposits, options, privileges and rights of Hotel Operator under the Hotel Operating
Lease, (iii) all rights of first refusal, if any, and all rights, if any, to renew or extend the
Hotel Operating Lease for a succeeding term or terms, (iv) all rights or privileges, if any, of
Hotel Operator to terminate, cancel, surrender or merge the Hotel Operating Lease, (v) all right,
title, claim or demand whatsoever of Hotel Operator either in law or in equity, in possession or
expectancy, of, in and to any right, as tenant under the Hotel Operating Lease, to elect under
Section 365(h)(1) of the Bankruptcy Code (as hereinafter defined), to terminate or treat the Hotel
Operating Lease as terminated in the event (A) of the bankruptcy, reorganization or insolvency of
the lessor thereunder, and (B) the rejection of the Hotel Operating Lease by the lessor thereunder,
as debtor in possession, or by a trustee for the lessor thereunder, pursuant to Section 365 of the
Bankruptcy Code;




          (d) Improvements. The buildings, structures, fixtures, additions, enlargements,
extensions, modifications, repairs, replacements and improvements now or hereafter erected or
located on the Land (collectively, the “Improvements”);




          (e) Easements. All easements, rights-of-way or use, rights, strips and gores of land,
streets, ways, alleys, passages, sewer rights, water, water courses, water rights and powers, air
rights and development rights, and all estates, rights, titles, interests, privileges, liberties,
servitudes, tenements, hereditaments and appurtenances of any nature whatsoever, in any way now or
hereafter belonging, relating or pertaining to the Land and the Improvements and the reversions and
remainders, and all land lying in the bed of any street, road or avenue, opened or proposed, in
front of or adjoining the Land, to the center line thereof and all the estates, rights,




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titles, interests, rights of dower, rights of curtesy, property, possession, claim and demand
whatsoever, both at law and in equity, of Borrower of, in and to the Land and the Improvements and
every part and parcel thereof, with the appurtenances thereto;




          (f) Equipment. All “equipment,” as such term is defined in Article 9 of the Uniform
Commercial Code (hereinafter defined), now owned or hereafter acquired by Borrower, which is used
at or in connection with the Improvements or the Land or is located thereon or therein (including,
but not limited to, all machinery, equipment, furnishings, and electronic data-processing and other
office equipment now owned or hereafter acquired by Borrower and any and all additions,
substitutions and replacements of any of the foregoing), together with all attachments, components,
parts, equipment and accessories installed thereon or affixed thereto (collectively, the
“Equipment”). Notwithstanding the foregoing, Equipment shall not include any property belonging to
tenants under Leases (hereinafter defined) or any property manager or any leased equipment except
to the extent that Borrower shall have any right or interest therein;




          (g) Fixtures. All Equipment now owned, or the ownership of which is hereafter
acquired, by Borrower which is so related to the Land and Improvements forming part of the Property
that it is deemed fixtures or real property under the law of the particular state in which the
Equipment is located, including, without limitation, all building or construction materials
intended for construction, reconstruction, alteration or repair of or installation on the Property,
construction equipment, appliances, machinery, plant equipment, fittings, apparatuses, fixtures and
other items now or hereafter attached to, installed in or used in connection with (temporarily or
permanently) any of the Improvements or the Land, including, but not limited to, engines, devices
for the operation of pumps, pipes, plumbing, call and sprinkler systems, fire extinguishing
apparatuses and equipment, heating, ventilating incinerating, electrical, air conditioning and air
cooling equipment and systems, gas and electric machinery, appurtenances and equipment, pollution
control equipment, security systems, disposals, dishwashers, refrigerators and ranges, recreational
equipment and facilities of all kinds, and water, gas, electrical, storm and sanitary sewer
facilities, utility lines and equipment (whether owned individually or jointly with others, and, if
owned jointly, to the extent of Borrower’s interest therein) and all other utilities whether or not
situated in easements, all water tanks, water supply, water power sites, fuel stations, fuel tanks,
fuel supply, and all other structures, together with all accessions, appurtenances, additions,
replacements, betterments and substitutions for any of the foregoing and the proceeds thereof
(collectively, the “Fixtures”). Notwithstanding the foregoing, “Fixtures” shall not include any
property which tenants are entitled to remove pursuant to Leases, except to the extent that
Borrower shall have any right or interest therein;




          (h) Personal Property. All furniture, furnishings, objects of art, machinery, goods,
tools, supplies, appliances, general intangibles to the extent assignable, contract rights,
accounts, accounts receivable, franchises to the extent assignable, licenses to the extent
assignable, certificates and permits to the extent assignable, and all other personal property of
any kind or character whatsoever as defined in and subject to the provisions of the Uniform
Commercial Code, whether tangible or to the extent assignable intangible, other than Fixtures,
which are now or hereafter owned by Borrower and which are located within or about the Land and the
Improvements, together with all accessories, replacements and substitutions thereto or therefor and
the proceeds thereof (collectively, the “Personal Property”), and the right, title and interest of
Borrower in and to any of the Personal Property which may be subject to any security




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interests, as defined in the Uniform Commercial Code, as adopted and enacted by the state or
states where any of the Property is located (the “Uniform Commercial Code”), superior in lien to
the lien of this Security Instrument and all proceeds and products of the above;




          (i) Leases and Rents. All leases, subleases or subsubleases, lettings, licenses,
concessions or other agreements (whether written or oral) pursuant to which any Person is granted a
possessory interest in, or right to use or occupy all or any portion of the Land and the
Improvements, and every modification, amendment or other agreement relating to such leases,
subleases, subsubleases, or other agreements entered into in connection with such leases,
subleases, subsubleases, or other agreements and every guarantee of the performance and observance
of the covenants, conditions and agreements to be performed and observed by the other party
thereto, heretofore or hereafter entered into (collectively, the “Leases”), whether before or after
the filing by or against Borrower of any petition for relief under 11 U.S.C. § 101 et seq., as the
same may be amended from time to time (the “Bankruptcy Code”) and all right, title and interest of
Borrower, its successors and assigns therein and thereunder, including, without limitation, cash or
securities deposited thereunder to secure the performance by the lessees of their obligations
thereunder to the extent assignable and all rents, additional rents, revenues, issues and profits
(including all oil and gas or other mineral royalties and bonuses) from the Land and the
Improvements whether paid or accruing before or after the filing by or against Borrower of any
petition for relief under the Bankruptcy Code (collectively, the “Rents”) and all proceeds from the
sale or other disposition of the Leases and the right to receive and apply the Rents to the payment
of the Debt;




          (j) Condemnation Awards. All Awards which may heretofore and hereafter be made with
respect to the Property, whether from the exercise of the right of eminent domain (including, but
not limited to, any transfer made in lieu of or in anticipation of the exercise of the right), or
for a change of grade, or for any other injury to or decrease in the value of the Property;




          (k) Insurance Proceeds. All Insurance Proceeds in respect of the Property under any
Policies covering the Property, including, without limitation, the right to receive and apply the
proceeds of any Policies, judgments, or settlements made in lieu thereof, in connection with a
Casualty to the Property;




          (l) Tax Certiorari. All refunds, rebates or credits in connection with reduction in
Taxes or Other Charges charged against the Property;




          (m) Conversion. All proceeds of the conversion, voluntary or involuntary, of any of
the foregoing including, without limitation, Insurance Proceeds and Awards, into cash or
liquidation claims;




          (n) Rights. The right, in the name and on behalf of Borrower in accordance with
Section 7.4 hereof, to appear in and defend any action or proceeding brought with respect
to the Property and to commence any action or proceeding to protect the interest of Lender in the
Property;




          (o) Agreements. To the extent assignable all agreements, contracts, certificates,
instruments, franchises, permits, licenses to the extent assignable, plans,




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specifications and other documents, now or hereafter entered into, and all rights therein and
thereto, respecting or pertaining to the use, occupation, construction, management or operation of
the Land and any part thereof and any Improvements or any business or activity conducted on the
Land and any part thereof and all right, title and interest of Borrower therein and thereunder,
including, without limitation, the right, upon the occurrence and during the continuance of any
Event of Default hereunder, to receive and collect any sums payable to Borrower thereunder;




          (p) Trademarks. To the extent assignable, Borrower’s interest in all tradenames,
trademarks, servicemarks, logos, copyrights, goodwill, books and records and all other general
intangibles relating to or used in connection with the operation of the Property;




          (q) Accounts. Subject to the provisions of the Management Agreement, all reserves,
escrows and deposit accounts maintained by Borrower with respect to the Property, including,
without limitation, all accounts established or maintained pursuant to the Cash Management
Agreement; together with all deposits or wire transfers made to such accounts and all cash, checks,
drafts, certificates, securities, investment property, financial assets, instruments and other
property held therein from time to time and all proceeds, products, distributions or dividends or
substitutions thereon and thereof;




          (r) Interest Rate Cap Agreement. The Interest Rate Cap Agreement, including, but not
limited to, all “accounts”, “chattel paper”, “general intangibles” and “investment property” (as
such terms are defined in the Uniform Commercial Code as from time to time in effect) constituting
or relating to the foregoing; and all products and proceeds of any of the foregoing; and




          (s) Other Rights. Any and all other rights of Borrower in and to the items set forth
in Subsections (a) through (q) above.




          AND without limiting any of the other provisions of this Security Instrument, to the extent
permitted by applicable law, Borrower expressly grants to Lender, as secured party, a security
interest in the portion of the Property which is or may be subject to the provisions of the Uniform
Commercial Code which are applicable to secured transactions; it being understood and agreed that
the Improvements and Fixtures are part and parcel of the Land (the Land, the Improvements and the
Fixtures collectively referred to as the “Real Property”) appropriated to the use thereof and,
whether affixed or annexed to the Real Property or not, shall for the purposes of this Security
Instrument be deemed conclusively to be real estate and mortgaged hereby.




          Section 1.2 Assignment of Rents. Borrower hereby absolutely and unconditionally
assigns to Lender all of Borrower’s right, title and interest in and to all current and future
Leases and Rents; it being intended by Borrower that this assignment constitutes a present,
absolute assignment and not an assignment for additional security only. Nevertheless, subject to
the terms of the Assignment of Leases, the Cash Management Agreement and Section 7.l(h) of
this Security Instrument, Lender grants to Borrower a revocable license to collect, receive, use
and enjoy the Rents and Borrower shall hold the Rents, or a portion thereof sufficient to discharge
all current sums due on the Debt, for use in the payment of such sums.




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          Section 1.3 Security Agreement. This Security Instrument is both a real property
mortgage and a “security agreement” within the meaning of the Uniform Commercial Code. The
Property includes both real and personal property and all other rights and interests, whether
tangible or intangible in nature, of Borrower in the Property. By executing and delivering this
Security Instrument, Borrower hereby grants to Lender, as security for the Obligations (hereinafter
defined), a security interest in the Fixtures, the Equipment and the Personal Property to the full
extent that the Fixtures, the Equipment and the Personal Property may be subject to the Uniform
Commercial Code (said portion of the Property so subject to the Uniform Commercial Code being
called the “Collateral”). If an Event of Default shall occur and be continuing, Lender, in
addition to any other rights and remedies which it may have, shall have and may exercise
immediately and without demand, any and all rights and remedies granted to a secured party upon
default under the Uniform Commercial Code, including, without limiting the generality of the
foregoing, the right to take possession of the Collateral or any part thereof, and to take such
other measures as Lender may deem necessary for the care, protection and preservation of the
Collateral. Upon request or demand of Lender after the occurrence and during the continuance of an
Event of Default, Borrower shall, at its expense, assemble the Collateral and make it available to
Lender at a convenient place (at the Land if tangible property) reasonably acceptable to Lender.
Borrower shall pay to Lender on demand any and all expenses, including reasonable legal expenses
and attorneys’ fees, incurred or paid by Lender in protecting its interest in the Collateral and in
enforcing its rights hereunder with respect to the Collateral after the occurrence and during the
continuance of an Event of Default. Any notice of sale, disposition or other intended action by
Lender with respect to the Collateral sent to Borrower in accordance with the provisions hereof at
least ten (10) business days prior to such action, shall except as otherwise provided by applicable
law, constitute reasonable notice to Borrower. The proceeds of any disposition of the Collateral,
or any part thereof, may, except as otherwise required by applicable law, be applied by Lender to
the payment of the Debt in such priority and proportions as Lender in its discretion shall deem
proper. Borrower’s (debtor’s) principal place of business is as set forth on page one hereof and
the address of Lender (secured party) is as set forth on page one hereof.




          Section 1.4 Fixture Filing. Certain of the Property is or will become “fixtures” (as
that term is defined in the Uniform Commercial Code) on the Land, and this Security Instrument,
upon being filed for record in the real estate records of the city or county wherein such fixtures
are situated, shall operate also as a financing statement filed as a fixture filing in accordance
with the applicable provisions of said Uniform Commercial Code upon such of the Property that is or
may become fixtures.




          Section 1.5 Pledges of Monies Held. Borrower hereby pledges to Lender any and all
monies now or hereafter held by Lender or on behalf of Lender, including, without limitation, any
sums deposited in the Lockbox Account, the Cash Management Account, the Reserve Funds and Net
Proceeds, as additional security for the Obligations until expended or applied as provided in the
Loan Agreement, this Security Instrument or the Cash Management Agreement.




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CONDITIONS TO GRANT




          TO HAVE AND TO HOLD the above granted and described Property unto Trustee for and on behalf of
Lender and to the use and benefit of Lender, Trustee, and for their successors and assigns,
forever;




          IN TRUST, WITH POWER OF SALE, to secure payment to Lender of the Debt at the time and in the
manner provided for its payment in the Loan Agreement, the Note and in this Security Instrument.




          PROVIDED, HOWEVER, these presents are upon the express condition that, if Borrower shall well
and truly pay to Lender the Debt at the time and in the manner provided in the Note, the Loan
Agreement and this Security Instrument, shall well and truly perform the Other Obligations
(hereafter defined) as set forth in this Security Instrument and shall well and truly abide by and
comply with each and every covenant and condition set forth herein and in the Note, the Loan
Agreement and the other Loan Documents, these presents and the estate hereby granted shall cease,
terminate and be void; provided, however, that Borrower’s obligation to indemnify and hold harmless
Lender pursuant to the provisions hereof shall survive any such payment or release.




ARTICLE 2 — DEBT AND OBLIGATIONS SECURED




          Section 2.1 Debt. This Security Instrument and the grants, assignments and transfers
made in Article 1 are given for the purpose of securing the Debt.




          Section 2.2 Other Obligations. This Security Instrument and the grants, assignments
and transfers made in Article 1 are also given for the purpose of securing the following
(collectively, the “Other Obligations”): the performance of all other obligations of Borrower
contained herein; the performance of each obligation of Borrower contained in the Loan Agreement
and any other Loan Document; and the performance of each obligation of Borrower contained in any
renewal, extension, amendment, modification, consolidation, change of, or substitution or
replacement for, all or any part of the Note, the Loan Agreement or any other Loan Document.




          Section 2.3 Debt and Other Obligations. Borrower’s obligations for the payment of the
Debt and the performance of the Other Obligations shall be referred
to collectively herein as the “Obligations.”




ARTICLE 3 — BORROWER COVENANTS




          Borrower covenants and agrees that:




          Section 3.1 Payment of Debt. Borrower will pay the Debt at the time and in the manner
provided in the Loan Agreement, the Note and this Security Instrument.




          Section 3.2 Incorporation by Reference. All the covenants, conditions and agreements
contained in (a) the Loan Agreement, (b) the Note and (c) all and any of the other




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Loan Documents, are hereby made a part of this Security Instrument to the same extent and with
the same force as if fully set forth herein.




          Section 3.3 Insurance. Borrower shall obtain and maintain, or cause to be maintained,
in full force and effect at all times insurance with respect to Borrower and the Property as
required pursuant to the Loan Agreement.




          Section 3.4 Maintenance of Property. Borrower shall cause the Property to be
maintained in a good and safe condition and repair in accordance with the terms of the Loan
Agreement. The Improvements, the Fixtures, the Equipment and the Personal Property shall not be
removed, demolished or materially altered (except for normal replacement of the Fixtures, the
Equipment or the Personal Property, tenant finish and refurbishment of the Improvements) without
the consent of Lender (which consent shall not be unreasonably withheld, conditioned or delayed) or
as otherwise permitted pursuant to the Loan Agreement. Subject to the terms of the Loan Agreement,
Borrower shall promptly repair, replace or rebuild any part of the Property which may be destroyed
by any Casualty or become damaged, worn or dilapidated or which may be affected by any
Condemnation, and shall complete and pay for any structure at any time in the process of
construction or repair on the Land.




          Section 3.5 Waste. Borrower shall not commit or knowingly suffer any physical waste
of the Property or make any change in the use of the Property which will in any way materially
increase the risk of fire or other hazard arising out of the operation of the Property, or take any
action that might invalidate or allow the cancellation of any Policy, or do or knowingly permit to
be done thereon anything that may in any way materially adversely impair the value of the Property
or the security of this Security Instrument. Borrower will not, without the prior written consent
of Lender, permit any drilling or exploration for or extraction, removal, or production of any
minerals from the surface or the subsurface of the Land, regardless of the depth thereof or the
method of mining or extraction thereof.




          Section 3.6 Payment for Labor and Materials. (a) Subject to Section 3.6(b) hereof,
Borrower will promptly pay when due all bills and costs for labor, materials, and specifically
fabricated materials (“Labor and Material Costs") incurred in connection with the Property and
never permit to exist beyond the due date thereof in respect of the Property or any part thereof
any lien or security interest, even though inferior to the liens and the security interests hereof,
and in any event never permit to be created or exist in respect of the Property or any part thereof
any other or additional lien or security interest other than the liens or security interests hereof
except for the Permitted Encumbrances.




          (b) After prior written notice to Lender, Borrower, at its own expense, may contest by
appropriate legal proceeding, promptly initiated and conducted in good faith and with due
diligence, the amount or validity or application in whole or in part of any of the Labor and
Material Costs, provided that (i) no Event of Default has occurred and is continuing under the Loan
Agreement, the Note, this Security Instrument or any of the other Loan Documents, (ii) Borrower is
permitted to do so under the provisions of any other mortgage, deed of trust or deed to secure debt
affecting the Property, (iii) such proceeding shall suspend the collection of the Labor and
Material Costs from Borrower and from the Property or Borrower shall have paid all of the Labor and
Material Costs under protest, (iv) such proceeding shall be permitted under and




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be conducted in accordance with the provisions of any other instrument to which Borrower is
subject and shall not constitute a default thereunder, (v) neither the Property nor any part
thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or
lost, and (vi) Borrower shall have furnished the security as may be required in the proceeding, or
as may be reasonably requested by Lender, to insure the payment of any contested Labor and Material
Costs, together with all interest and penalties thereon.




          Section 3.7 Performance of Other Agreements. Borrower shall observe and perform each
and every term, covenant and provision to be observed or performed by Borrower pursuant to the Loan
Agreement, any other Loan Document and any other material agreement or recorded instrument
affecting or pertaining to the Property and any amendments, modifications or changes thereto.




          Section 3.8 Change of Name, Identity or Structure. Except as expressly permitted
under the Loan Agreement, Borrower shall not change Borrower’s name, identity (including its trade
name or names) or, if not an individual, Borrower’s corporate, partnership or other structure
without notifying Lender of such change in writing at least thirty (30) days prior to the effective
date of such change and, in the case of a change in Borrower’s structure, without first obtaining
the prior written consent of Lender, except as otherwise permitted pursuant to Section 5.2.10 of
the Loan Agreement. Borrower shall execute and deliver to Lender, prior to or contemporaneously
with the effective date of any such change, any financing statement or financing statement change
required by Lender to establish or maintain the validity, perfection and priority of the security
interest granted herein. At the request of Lender, Borrower shall execute a certificate in form
satisfactory to Lender listing the trade names under which Borrower intends to operate the
Property, and representing and warranting that Borrower does business under no other trade name
with respect to the Property.




          Section 3.9 Title. Borrower has good, marketable and insurable fee simple title to
the real property comprising part of the Property and good title to the balance of the Property,
free and clear of all Liens whatsoever except the Permitted Encumbrances, such other Liens as are
permitted pursuant to the Loan Documents and the Liens created by the Loan Documents. To the best
of Borrower’s knowledge, the Permitted Encumbrances in the aggregate do not materially and
adversely affect the operation or use of the Property (as currently used) or Borrower’s ability to
repay the Loan. This Security Instrument, when properly recorded in the appropriate records,
together with any Uniform Commercial Code financing statements required to be filed in connection
therewith, will create (a) a valid, perfected first priority lien on the real property portion of
the Property, subject only to Permitted Encumbrances and the Liens created by the Loan Documents
and (b) perfected security interests in and to, and perfected collateral assignments of, all
personalty (including the Leases), all in accordance with the terms thereof, in each case subject
only to any applicable Permitted Encumbrances, such other Liens as are permitted pursuant to the
Loan Documents and the Liens created by the Loan Documents. To Borrower’s knowledge after due
inquiry, there are no claims for payment for work, labor or materials affecting the Property which
are or may become a Lien prior to, or of equal priority with, the Liens created by the Loan
Documents.




ARTICLE 4 — OBLIGATIONS AND RELIANCES




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          Section 4.1 Relationship of Borrower and Lender. The relationship between Borrower
and Lender is solely that of debtor and creditor, and Lender has no fiduciary or other special
relationship with Borrower, and no term or condition of the Loan Agreement, the Note, this Security
Instrument and the other Loan Documents shall be construed so as to deem the relationship between
Borrower and Lender to be other than that of debtor and creditor.




          Section 4.2 No Reliance on Lender. The general partners, members, principals and (if
Borrower is a trust) beneficial owners of Borrower are experienced in the ownership and operation
of properties similar to the Property, and Borrower and Lender are relying solely upon such
expertise and business plan in connection with the ownership and operation of the Property.
Borrower is not relying on Lender’s expertise, business acumen or advice in connection with the
Property.




          Section 4.3 No Lender Obligations. (a) Notwithstanding the provisions of
Subsections 1.1(h) and (n) or Section 1.2, Lender is not undertaking the
performance of (i) any obligations under the Leases; or (ii) any obligations with respect to such
agreements, contracts, certificates, instruments, franchises, permits, trademarks, licenses and
other documents.




          (b) By accepting or approving anything required to be observed, performed or fulfilled or to
be given to Lender pursuant to this Security Instrument, the Loan Agreement, the Note or the other
Loan Documents, including, without limitation, any Officer’s Certificate, balance sheet, statement
of profit and loss or other financial statement, survey, appraisal, or Policy, Lender shall not be
deemed to have warranted or affirmed the sufficiency, the legality or effectiveness of same, and
such acceptance or approval thereof shall not constitute any warranty or affirmation with respect
thereto by Lender.




          Section 4.4 Reliance. Borrower recognizes and acknowledges that in accepting the Loan
Agreement, the Note, this Security Instrument and the other Loan Documents, Lender is expressly and
primarily relying on the truth and accuracy of the warranties and representations set forth in
Section 4.1 of the Loan Agreement without any obligation to investigate the Property and
notwithstanding any investigation of the Property by Lender; that such reliance existed on the part
of Lender prior to the date hereof, that the warranties and representations are a material
inducement to Lender in making the Loan; and that Lender would not be willing to make the Loan and
accept this Security Instrument in the absence of the warranties and representations as set forth
in Section 4.1 of the Loan Agreement.




ARTICLE 5 — FURTHER ASSURANCES




          Section 5.1 Recording of Security Instrument, etc. Borrower forthwith upon the
execution and delivery of this Security Instrument and thereafter, from time to time, will cause
this Security Instrument and any of the other Loan Documents creating a Lien or security interest
or evidencing the Lien hereof upon the Property and each instrument of further assurance to be
filed, registered or recorded in such manner and in such places as may be required by any present
or future law in order to publish notice of and fully to protect and perfect the Lien or security
interest hereof upon, and the interest of Lender in, the Property. Except as expressly




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provided in the Loan Agreement, Borrower will pay all taxes, filing, registration or recording
fees, and all reasonable expenses incident to the preparation, execution, acknowledgment and/or
recording of the Note, this Security Instrument, the other Loan Documents, any note, deed of trust
or mortgage supplemental hereto, any security instrument with respect to the Property and any
instrument of further assurance, and any modification or amendment of the foregoing documents, and
all federal, state, county and municipal taxes, duties, imposts, assessments and charges arising
out of or in connection with the execution and delivery of this Security Instrument, any deed of
trust or mortgage supplemental hereto, any security instrument with respect to the Property or any
instrument of further assurance, and any modification or amendment of the foregoing documents,
except where prohibited by law so to do.




          Section 5.2 Further Acts, etc. Borrower will, at the reasonable cost of Borrower, and
without expense to Lender, do, execute, acknowledge and deliver all further acts, deeds,
conveyances, deeds of trust, mortgages, assignments, notices of assignments, transfers and
assurances as Lender shall, from time to time, reasonably require, for the better assuring,
conveying, assigning, transferring, and confirming unto Lender the property and rights hereby
mortgaged, deeded, granted, bargained, sold, conveyed, confirmed, pledged, assigned, warranted and
transferred or intended now or hereafter so to be, or which Borrower may be or may hereafter become
bound to convey or assign to Lender, or for carrying out the intention or facilitating the
performance of the terms of this Security Instrument or for filing, registering or recording this
Security Instrument, or for complying with all Legal Requirements. Borrower, on demand, will
execute and deliver, and in the event it shall fail to so execute and deliver following five (5)
Business Days’ notice to Borrower, hereby authorizes Lender to execute in the name of Borrower or
without the signature of Borrower to the extent Lender may lawfully do so, one or more financing
statements to evidence more effectively the security interest of Lender in the Property. In (i)
such case set forth in the immediately preceding sentence or (ii) upon the occurrence and during an
Event of Default, Borrower grants to Lender an irrevocable power of attorney coupled with an
interest for the purpose of exercising and perfecting any and all rights and remedies available to
Lender at law and in equity, including without limitation, such rights and remedies available to
Lender pursuant to this Section 5.2.




          Section 5.3 Changes in Tax, Debt, Credit and Documentary Stamp Laws. (a) If any law
is enacted or adopted or amended after the date of this Security Instrument which deducts the Debt
from the value of the Property for the purpose of taxation or which imposes a tax, either directly
or indirectly, on the Debt or Lender’s interest in the Property, Borrower will pay the tax, with
interest and penalties thereon, if any. If Lender is advised by counsel chosen by it that the
payment of tax by Borrower would be unlawful or taxable to Lender or unenforceable or provide the
basis for a defense of usury then Lender shall have the option by written notice of not less than
one hundred twenty (120) days to declare the Debt immediately due and payable, provided that the
Debt shall not be subject to any prepayment fee, premium or penalty in connection with any payment
under this Section 5.3(a) but shall be otherwise due and payable in accordance with the provisions
of the Loan Agreement.




          (b) Borrower will not claim or demand or be entitled to any credit or credits on account of
the Debt for any part of the Taxes or Other Charges assessed against the Property, or any part
thereof, and no deduction shall otherwise be made or claimed from the assessed value of the
Property, or any part thereof, for real estate tax purposes by reason of this Security




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Instrument or the Debt. If such claim, credit or deduction shall be required by law, Lender
shall have the option, by written notice of not less than one hundred twenty (120) days, to declare
the Debt immediately due and payable provided that the Debt shall not be subject to any prepayment
fee, premium or penalty in connection with any payment under this Section 5.3(b) but shall be
otherwise due and payable in accordance with the provisions of the Loan Agreement.




          (c) If at any time the United States of America, any State thereof or any subdivision of any
such State shall require revenue or other stamps to be affixed to the Note, this Security
Instrument, or any of the other Loan Documents or impose any other tax or charge on the same,
Borrower will pay for the same, with interest and penalties thereon, if any.




          Section 5.4 Severing of Mortgage. Subject to the terms of the Loan Agreement, this
Security Instrument and the Note shall, at any time until the same shall be fully paid and
satisfied, at the sole election of Lender be severed into two or more notes and two or more
security instruments in such denominations as Lender shall determine in its sole discretion, each
of which shall cover all or a portion of the Property to be more particularly described therein.
To that end, subject to the terms of the Loan Agreement, Borrower, upon written request of Lender,
shall execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered by the
then owner of the Property to Lender and/or its designee or designees, substitute notes and
security instruments in such principal amounts, aggregating not more than the then unpaid principal
amount of this Security Instrument, and containing terms, provisions and clauses similar to those
contained herein and in the Note, and such other documents and instruments as may be required by
Lender at no additional cost, expense or liability to Borrower.




          Section 5.5 Replacement Documents. Upon receipt of an affidavit of an officer of
Lender as to the loss, theft, destruction or mutilation of the Note or any other Loan Document
which is not of public record, and, in the case of any such mutilation, upon surrender and
cancellation of such Note or other Loan Document, Borrower will issue, in lieu thereof, a
replacement Note or other Loan Document, dated the date of such lost, stolen, destroyed or
mutilated Note or other Loan Document in the same principal amount thereof and otherwise of like
tenor.




ARTICLE 6 — DUE ON SALE/ENCUMBRANCE




          Section 6.1 Lender Reliance. Borrower acknowledges that Lender has examined and
relied on the experience of Borrower and its general partners, members, principals and (if Borrower
is a trust) beneficial owners in owning and operating properties such as the Property in agreeing
to make the Loan, and, subject to the terms of the Loan Agreement, will continue to rely on
Borrower’s ownership of the Property as a means of maintaining the value of the Property as
security for repayment of the Debt and the performance of the Other Obligations. Borrower
acknowledges that Lender has a valid interest in maintaining the value of the Property so as to
ensure that, should Borrower default in the repayment of the Debt or the performance of the Other
Obligations, Lender can recover the Debt by a sale of the Property.




          Section 6.2 No Sale/Encumbrance. Neither Borrower nor any Restricted Party shall
Transfer the Property or any part thereof or any interest therein or permit or suffer the
Property or any part thereof or any interest therein to be Transferred other than as expressly
permitted pursuant to the terms of the Loan Agreement.





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ARTICLE 7 — RIGHTS AND REMEDIES UPON DEFAULT




          Section 7.1 Remedies. Upon the occurrence and during the continuance of any Event of
Default, Borrower agrees that Lender may take such action, without notice or demand, as it deems
advisable to protect and enforce its rights against Borrower and in and to the Property, including,
but not limited to, the following actions, each of which may be pursued concurrently or otherwise,
at such time and in such order as Lender may determine, in its sole discretion, without impairing
or otherwise affecting the other rights and remedies of Lender:




          (a) declare the entire unpaid Debt to be immediately due and payable;




          (b) institute proceedings, judicial or otherwise, for the complete foreclosure of this
Security Instrument under any applicable provision of law, in which case the Property or any
interest therein may be sold for cash or upon credit in one or more parcels or in several interests
or portions and in any order or manner;




          (c) with or without entry, to the extent permitted and pursuant to the procedures provided by
applicable law, institute proceedings for the partial foreclosure of this Security Instrument for
the portion of the Debt then due and payable, subject to the continuing Lien and security interest
of this Security Instrument for the balance of the Debt not then due, unimpaired and without loss
of priority;




          (d) sell for cash or upon credit the Property or any part thereof and all estate, claim,
demand, right, title and interest of Borrower therein and rights of redemption thereof, pursuant to
power of sale or otherwise, at one or more sales, as an entirety or in parcels, at such time and
place, upon such terms and after such notice thereof as may be required or permitted by law;




          (e) institute an action, suit or proceeding in equity for the specific performance of any
covenant, condition or agreement contained herein, in the Note, the Loan Agreement or in the other
Loan Documents;




          (f) subject to Section 9.4 of the Loan Agreement, recover judgment on the Note either before,
during or after any proceedings for the enforcement of this Security Instrument or the other Loan
Documents;




          (g) apply for the appointment of a receiver, trustee, liquidator or conservator of the
Property, without notice and without regard for the adequacy of the security for the Debt and
without regard for the solvency of Borrower, any guarantor, indemnitor with respect to the Loan or
of any Person liable for the payment of the Debt;




          (h) the license granted to Borrower under Section 1.2 hereof shall automatically be
revoked and Lender may enter into or upon the Property, either personally or by its agents,
nominees or attorneys and dispossess Borrower and its agents and servants therefrom, without
liability for trespass, damages or otherwise and exclude Borrower and its agents or
servants wholly therefrom, and subject to the provisions of the Management Agreement, take
possession of all books, records and accounts relating thereto and Borrower agrees to surrender
possession of the Property and of such books, records and accounts to Lender upon demand, and





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thereupon subject to the provisions of the Management Agreement, Lender may (i) use, operate,
manage, control, insure, maintain, repair, restore and otherwise deal with all and every part of
the Property and conduct the business thereat; (ii) complete any construction on the Property in
such manner and form as Lender deems reasonably advisable; (iii) make alterations, additions,
renewals, replacements and improvements to or on the Property; (iv) exercise all rights and powers
of Borrower with respect to the Property, whether in the name of Borrower or otherwise, including,
without limitation, the right to make, cancel, enforce or modify Leases, obtain and evict tenants,
and demand, sue for, collect and receive all Rents; (v) require Borrower to pay monthly in advance
to Lender, or any receiver appointed to collect the Rents, the fair and reasonable rental value for
the use and occupation of such part of the Property as may be occupied by Borrower; (vi) require
Borrower to vacate and surrender possession of the Property to Lender or to such receiver and, in
default thereof, Borrower may be evicted by summary proceedings or otherwise; and (vii) apply the
receipts from the Property to the payment of the Debt, in such order, priority and proportions as
Lender shall deem appropriate in its sole discretion after deducting therefrom all expenses
(including reasonable attorneys’ fees) incurred in connection with the aforesaid operations and all
amounts necessary to pay the Taxes, Other Charges, Insurance Premium and other expenses in
connection with the Property, as well as just and reasonable compensation for the services of
Lender, its counsel, agents and employees;




          (i) exercise any and all rights and remedies granted to a secured party upon default under the
Uniform Commercial Code, including, without limiting the generality of the foregoing: (i) the right
to take possession of the Fixtures, the Equipment, the Personal Property or any part thereof, and
to take such other measures as Lender may deem necessary for the care, protection and preservation
of the Fixtures, the Equipment, the Personal Property, and (ii) request Borrower at its expense to
assemble the Fixtures, the Equipment, the Personal Property and make it available to Lender at a
convenient place acceptable to Lender. Any notice of sale, disposition or other intended action by
Lender with respect to the Fixtures, the Equipment, the Personal Property sent to Borrower in
accordance with the provisions hereof at least ten (10) Business Days prior to such action, shall
constitute commercially reasonable notice to Borrower;




          (j) apply any sums then deposited or held in escrow or otherwise by or on behalf of Lender in
accordance with the terms of the Loan Agreement, this Security Instrument or any other Loan
Document to the payment of the following items in any order in its sole discretion:





     (i) Taxes and Other Charges;




     (ii) Insurance Premiums;




     (iii) Interest on the unpaid principal balance of the Note;




     (iv) Intentionally omitted;




     (v) All other sums payable pursuant to the Note, the Loan Agreement, this Security
Instrument and the other Loan Documents, including, without limitation, advances made by
Lender pursuant to the terms of this Security Instrument;




     (k) pursue such other remedies as Lender may have under applicable law; or



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          (l) apply the undisbursed balance of any Net Proceeds Deficiency deposit, together with
interest thereon, to the payment of the Debt in such order, priority and proportions as Lender
shall deem to be appropriate in its discretion.



In the event of a sale, by foreclosure, power of sale or otherwise, of less than all of Property,
this Security Instrument shall continue as a lien and security interest on the remaining portion of
the Property unimpaired and without loss of priority.




          Section 7.2 Application of Proceeds. Upon the occurrence and during the continuance
of an Event of Default, the purchase money, proceeds and avails of any disposition of the Property,
and or any part thereof, or any other sums collected by Lender pursuant to the Note, this Security
Instrument or the other Loan Documents, may be applied by Lender to the payment of the Debt in such
priority and proportions as Lender in its discretion shall deem proper.




          Section 7.3 Right to Cure Defaults. Upon the occurrence and during the continuance of
any Event of Default, Lender may, but without any obligation to do so and without notice to or
demand on Borrower and without releasing Borrower from any obligation hereunder, make any payment
or do any act required of Borrower hereunder in such manner and to such extent as Lender may deem
necessary to protect the security hereof. Lender is authorized to enter upon the Property for
such purposes, or appear in, defend, or bring any action or proceeding to protect its interest in
the Property or to foreclose this Security Instrument or collect the Debt, and the out-of-pocket
cost and expense thereof (including reasonable attorneys’ fees to the extent permitted by law),
with interest as provided in this Section 7.3, shall constitute a portion of the Debt and shall be
due and payable to Lender upon demand. All such costs and expenses incurred by Lender in remedying
such Event of Default or such failed payment or act or in appearing in, defending, or bringing any
such action or proceeding shall bear interest at the Default Rate, for the period after notice from
Lender that such cost or expense was incurred to the date of payment to Lender. All such costs and
expenses incurred by Lender together with interest thereon calculated at the Default Rate shall be
deemed to constitute a portion of the Debt and be secured by this Security Instrument and the other
Loan Documents and shall be immediately due and payable upon demand by Lender therefor.




          Section 7.4 Actions and Proceedings. Upon the occurrence and during the continuance
of an Event of Default, Lender has the right to appear in and defend any action or proceeding
brought with respect to the Property and to bring any action or proceeding, in the name and on
behalf of Borrower, which Lender, in its discretion, decides should be brought to protect its
interest in the Property.




          Section 7.5 Recovery of Sums Required to Be Paid. Subject to Section 9.4 of the Loan
Agreement, Lender shall have the right from time to time to take action to recover
any sum or sums which constitute a part of the Debt as the same become due, without regard to
whether or not the balance of the Debt shall be due, and without prejudice to the right of Lender
thereafter to bring an action of foreclosure, or any other action, for a default or defaults by
Borrower existing at the time such earlier action was commenced.




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          Section 7.6 Examination of Books and Records. Subject to the provisions of the
Management Agreement, at reasonable times and upon reasonable notice, Lender and at Lender’s
expense (unless an Event of Default has occurred and is continuing), its agents, accountants and
attorneys shall have the right to examine the records, books, management and other papers of
Borrower which reflect upon their financial condition, at the Property or at any office regularly
maintained by Borrower where the books and records are located such right to be exercised not more
frequently than once per year unless an Event of Default exists. Lender and its agents shall have
the right to make copies and extracts from the foregoing records and other papers.




          Section 7.7 Other Rights, etc. (a) The failure of Lender to insist upon strict
performance of any term hereof shall not be deemed to be a waiver of any term of this Security
Instrument. Borrower shall not be relieved of Borrower’s obligations hereunder by reason of (i)
the failure of Lender to comply with any request of Borrower or any guarantor or indemnitor with
respect to the Loan to take any action to foreclose this Security Instrument or otherwise enforce
any of the provisions hereof or of the Note or the other Loan Documents, (ii) the release,
regardless of consideration, of the whole or any part of the Property, or of any person liable for
the Debt or any portion thereof (except upon repayment in full of the Debt), or (iii) any agreement
or stipulation by Lender extending the time of payment or otherwise modifying or supplementing the
terms of the Note, this Security Instrument or the other Loan Documents.




          (b) It is agreed that the risk of loss or damage to the Property is on Borrower, and Lender
shall have no liability whatsoever for decline in value of the Property, for failure to maintain
the Policies, or for failure to determine whether insurance in force is adequate as to the amount
of risks insured. Possession by Lender shall not be deemed an election of judicial relief if any
such possession is requested or obtained with respect to any Property or collateral not in Lender’s
possession.




          (c) Upon the occurrence and during the continuance of an Event of Default, Lender may resort
for the payment of the Debt to any other security held by Lender in such order and manner as
Lender, in its discretion, may elect. Lender may take action to recover the Debt, or any portion
thereof, or to enforce any covenant hereof without prejudice to the right of Lender thereafter to
foreclose this Security Instrument. The rights of Lender under this Security Instrument shall be
separate, distinct and cumulative and none shall be given effect to the exclusion of the others.
No act of Lender shall be construed as an election to proceed under any one provision herein to the
exclusion of any other provision. Lender shall not be limited exclusively to the rights and
remedies herein stated but shall be entitled to every right and remedy now or hereafter afforded at
law or in equity.




          Section 7.8 Right to Release Any Portion of the Property. Lender may release any
portion of the Property for such consideration as Lender may require without, as to the remainder
of the Property, in any way impairing or affecting the lien or priority of this
Security Instrument, or improving the position of any subordinate lienholder with respect
thereto, except to the extent that the obligations hereunder shall have been reduced by the actual
monetary consideration, if any, received by Lender for such release, and may accept by assignment,
pledge or otherwise any other property in place thereof as Lender may require




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without being
accountable for so doing to any other lienholder. This Security Instrument shall continue as a
lien and security interest in the remaining portion of the Property.




          Section 7.9 Violation of Laws. Subject to the terms of the Loan Agreement, if the
Property is not in material compliance with Legal Requirements, Lender may impose reasonable
additional requirements upon Borrower in connection herewith including, without limitation,
monetary reserves or financial equivalents.




          Section 7.10 Intentionally Omitted.




          Section 7.11 Right of Entry. Subject to the terms of the Loan Agreement and the
Management Agreement, upon reasonable notice to Borrower, Lender and its agents shall have the
right to enter and inspect the Property at all reasonable times.




ARTICLE 8 — INDEMNIFICATION




          Section 8.1 General Indemnification. Borrower shall, at its sole cost and expense,
protect, defend, indemnify, release and hold harmless the Indemnified Parties (hereinafter defined)
from and against any and all third party claims, suits, liabilities (including, without limitation,
strict liabilities), actions, proceedings, obligations, debts, actual losses, reasonable costs,
reasonable expenses, fines, penalties, charges, fees, judgments, awards, amounts paid in
settlement, damages (but not lost revenues, diminution in value and other consequential and
punitive damages) of whatever kind or nature (including, but not limited, to reasonable attorneys’
fees and other costs of defense) (collectively, the “Losses”) imposed upon or incurred by or
asserted against any Indemnified Parties (other than claims against Lender by banking regulatory
authorities or shareholders of Lender) and arising out of or in any way relating to any one or more
of the following: (a) ownership of this Security Instrument, the Property or any interest therein
or receipt of any Rents; (b) any amendment to, or restructuring of, the Debt, the Note, the Loan
Agreement, this Security Instrument, or any other Loan Documents requested by Borrower; (c) any and
all lawful action that may be taken by Lender in connection with the enforcement of the provisions
of this Security Instrument, the Loan Agreement, the Note or any of the other Loan Documents,
whether or not suit is filed in connection with same, or in connection with Borrower, any guarantor
or indemnitor and/or any partner, member, joint venturer or shareholder thereof becoming a party to
a voluntary or involuntary federal or state bankruptcy, insolvency or similar proceeding; (d) any
accident, injury to, or death of, persons or loss of or damage to property occurring in, on or
about the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or
adjacent parking areas, streets or ways; (e) any use, nonuse or condition in, on or about the
Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent
parking areas, streets or ways; (f) any failure on the part of Borrower to perform or be in
compliance with any of the terms of this Security Instrument, the Note, the Loan Agreement or any
of the other Loan Documents; (g) performance of any labor or services or the furnishing of any
materials or other property in respect of the Property or any part thereof; (h) the failure of
Borrower to file
timely with the Internal Revenue Service an accurate Form 1099-B, Statement for Recipients of
Proceeds from Real Estate, Broker and Barter Exchange Transactions, if required in connection with
this Security Instrument, or to supply a copy thereof in a timely fashion to the recipient of the
proceeds of the transaction in connection with which this Security Instrument is made; (i) any





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failure of the Property to be in compliance with any Legal Requirements; (j) the enforcement by any
Indemnified Party of the provisions of this Article 8; (k) any and all claims and demands
whatsoever which may be asserted against Lender by reason of any alleged obligations or
undertakings on its part to perform or discharge any of the terms, covenants, or agreements
contained in any Lease; or (l) the payment of any commission, charge or brokerage fee to anyone
claiming through Borrower which may be payable in connection with the funding of the Loan. Any
amounts payable to Lender by reason of the application of this Section 8.1 shall become due
and payable within ten (10) Business Days of notice from Lender and, if not paid within such ten
(10) Business Day period, shall bear interest at the Default Rate from the date loss or damage is
sustained by Lender until paid. For purposes of this Article 8, the term “Indemnified Parties”
means Lender and any Person who is or will have been involved in the origination of the Loan, any
Person who is or will have been involved in the servicing of the Loan, any Person in whose name the
encumbrance created by this Security Instrument is or will have been recorded, Persons who may hold
or acquire or will have held a full or partial interest in the Loan (including, but not limited to,
investors or prospective investors in the Securities, as well as custodians, trustees and other
fiduciaries who hold or have held a full or partial interest in the Loan for the benefit of third
parties) as well as the respective directors, officers, shareholders, partners, employees, agents,
servants, representatives, contractors, subcontractors, affiliates, subsidiaries, participants,
successors and assigns of any and all of the foregoing (including, but not limited to, any other
Person who holds or acquires or will have held a participation or other full or partial interest in
the Loan, whether during the term of the Loan or as a part of or following a foreclosure of the
Loan and any successors by merger, consolidation or acquisition of all or a substantial portion of
Lender’s assets and business). Notwithstanding the provisions of this Section 8.1, (A)
Borrower shall have no liability to Lender or any other Indemnified Party for any Losses caused by
the gross negligence, willful misconduct or fraud of Lender or such other Indemnified Party, and
(B) the obligations of Borrower under this Section 8.1 shall exclude Losses arising solely
from a state of facts that first came into existence after Lender, its nominee or designee, or a
bona fide third party acquired title to the Property through foreclosure, exercise of a power of
sale or deed in lieu of foreclosure. For the purpose of this Section 8.1 only, successors
and assigns shall not include any bona fide third party who purchases title to the Property through
foreclosure, deed in lieu of foreclosure or the exercise of any other remedies available to Lender
hereunder, under the Note or under any of the other Loan Documents, or who purchased title to the
Property at a foreclosure sale.




          Section 8.2 Mortgage and/or Intangible Tax. Borrower shall, at its sole cost and
expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from and
against any and all Losses imposed upon or incurred by or asserted against any Indemnified Parties
and arising out of or in any way relating to any tax on the making and/or recording of this
Security Instrument, the Note or any of the other Loan Documents, but excluding any income,
franchise or other similar taxes.




          Section 8.3 ERISA Indemnification. Borrower shall, at its sole cost and expense,
protect, defend, indemnify, release and hold harmless the Indemnified Parties from and
against any and all Losses (including, without limitation, reasonable attorneys’ fees and
costs incurred in the investigation, defense, and settlement of Losses incurred in correcting any
prohibited transaction or in the sale of a prohibited loan, and in obtaining any individual
prohibited transaction exemption under ERISA that may be required by any applicable federal,






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state,
county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances,
judgments, decrees and injunctions of Governmental Authorities) that Lender may incur, as a result
of a default under Sections 4.1.9 or 5.2.9 of the Loan Agreement.




          Section 8.4 Duty to Defend; Attorneys’ Fees and Other Fees and Expenses. Upon written
request by any Indemnified Party, Borrower shall defend such Indemnified Party (if requested by any
Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals
reasonably approved by the Indemnified Parties. Notwithstanding the foregoing, if the defendants
in any such claim or proceeding include both Borrower and any Indemnified Party and Borrower and
such Indemnified Party shall have reasonably concluded that there are any legal defenses available
to it and/or other Indemnified Parties that are different from or additional to those available to
Borrower, such Indemnified Party shall have the right to select separate counsel to assert such
legal defenses and to otherwise participate in the defense of such action on behalf of such
Indemnified Party, provided that no compromise or settlement shall be entered without Borrower’s
consent, which consent shall not be unreasonably withheld. Within ten (10) days of written demand,
Borrower shall pay or, in the sole and absolute discretion of the Indemnified Parties, reimburse,
the Indemnified Parties for the payment of reasonable fees and disbursements of attorneys,
engineers, environmental consultants, laboratories and other professionals in connection therewith.




ARTICLE 9 — WAIVERS




          Section 9.1 Waiver of Counterclaim. To the extent permitted by applicable law,
Borrower hereby waives the right to assert a counterclaim, other than a mandatory or compulsory
counterclaim, in any action or proceeding brought against it by Lender arising out of or in any way
connected with this Security Instrument, the Loan Agreement, the Note, any of the other Loan
Documents, or the Obligations.




          Section 9.2 Marshalling and Other Matters. To the extent permitted by applicable law,
Borrower hereby waives the benefit of all appraisement, valuation, stay, extension, reinstatement
and redemption laws now or hereafter in force and all rights of marshalling in the event of any
sale hereunder of the Property or any part thereof or any interest therein. Further, Borrower
hereby expressly waives any and all rights of redemption from sale under any order or decree of
foreclosure of this Security Instrument on behalf of Borrower, and on behalf of each and every
person acquiring any interest in or title to the Property subsequent to the date of this Security
Instrument and on behalf of all persons to the extent permitted by applicable law.




          Section 9.3 Waiver of Notice. To the extent permitted by applicable law, Borrower
shall not be entitled to any notices of any nature whatsoever from Lender except with respect to
matters for which this Security Instrument specifically and expressly provides for the giving of
notice by Lender to Borrower and except with respect to matters for which Lender is required by
applicable law to give notice, and Borrower hereby expressly waives the right to
receive any notice from Lender with respect to any matter for which this Security Instrument
does not specifically and expressly provide for the giving of notice by Lender to Borrower.





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          Section 9.4 Waiver of Statute of Limitations. To the extent permitted by applicable
law, Borrower hereby expressly waives and releases to the fullest extent permitted by law, the
pleading of any statute of limitations as a defense to payment of the Debt or performance of its
Other Obligations.




          Section 9.5 Survival. The indemnifications made pursuant to Section 8.3
herein shall continue indefinitely in full force and effect and shall survive and shall in no way
be impaired by any of the following: any satisfaction or other termination of this Security
Instrument, any assignment or other transfer of all or any portion of this Security Instrument or
Lender’s interest in the Property (but, in such case, shall benefit both Indemnified Parties and
any assignee or transferee), any exercise of Lender’s rights and remedies pursuant hereto
including, but not limited to, foreclosure or acceptance of a deed in lieu of foreclosure, any
exercise of any rights and remedies pursuant to the Loan Agreement, the Note or any of the other
Loan Documents, any transfer of all or any portion of the Property (whether by Borrower or by
Lender following foreclosure or acceptance of a deed in lieu of foreclosure or at any other time),
any amendment to this Security Instrument, the Loan Agreement, the Note or the other Loan
Documents, and any act or omission that might otherwise be construed as a release or discharge of
Borrower from the obligations pursuant hereto.




ARTICLE 10 — EXCULPATION




          The provisions of Section 9.4 of the Loan Agreement are hereby incorporated by reference into
this Security Instrument to the same extent and with the same force as if fully set forth herein.




ARTICLE 11 — NOTICES




          All notices or other written communications hereunder shall be delivered in accordance with
Section 10.6 of the Loan Agreement.




ARTICLE 12 — APPLICABLE LAW




          Section 12.1 Governing Law. (a) THE PARTIES HEREBY AGREE AND IRREVOCABLY ELECT THAT,
IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS SECURITY INSTRUMENT AND THE OBLIGATIONS ARISING
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE
PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS
CREATED PURSUANT HERETO SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN
WHICH THE PROPERTY IS LOCATED, IT BEING
UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE
STATE OF NEW YORK SHALL GOVERN THE




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CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL OF THE
OBLIGATIONS ARISING HEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY
UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION
GOVERNS THIS SECURITY INSTRUMENT, AND THIS SECURITY INSTRUMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK
GENERAL OBLIGATIONS LAW.




          (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING
TO THIS SECURITY INSTRUMENT MAY AT LENDER’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN
THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW AND BORROWER WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON
VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING.
BORROWER DOES HEREBY DESIGNATE AND APPOINT:



CT CORPORATION SYSTEM

111 EIGHTH AVENUE, 13th FLOOR

NEW YORK, NEW YORK 10011



AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS
WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW
YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND NOTICE OF
SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY
RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE
STATE OF NEW YORK. BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS
AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE
AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE
DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE
SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS
DISSOLVED WITHOUT LEAVING A SUCCESSOR.




          Section 12.2 Usury Laws. Notwithstanding anything to the contrary, (a) all agreements
and communications between Borrower and Lender are hereby and shall
automatically be limited so that, after taking into account all amounts deemed interest, the
interest contracted for, charged or received by Lender shall never exceed the Maximum Legal




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Rate or
amount, (b) in calculating whether any interest exceeds the Maximum Legal Rate, all such interest
shall be amortized, prorated, allocated and spread over the full amount and term of all principal
indebtedness of Borrower to Lender, and (c) if through any contingency or event, Lender receives or
is deemed to receive interest in excess of the Maximum Legal Rate, any such excess shall be deemed
to have been applied toward payment of the principal of any and all then outstanding indebtedness
of Borrower to Lender, or if there is no such indebtedness, shall immediately be returned to
Borrower.




          Section 12.3 Provisions Subject to Applicable Law. All rights, powers and remedies
provided in this Security Instrument may be exercised only to the extent that the exercise thereof
does not violate any applicable provisions of law and are intended to be limited to the extent
necessary so that they will not render this Security Instrument invalid, unenforceable or not
entitled to be recorded, registered or filed under the provisions of any applicable law. If any
term of this Security Instrument or any application thereof shall be invalid or unenforceable, the
remainder of this Security Instrument and any other application of the term shall not be affected
thereby.




ARTICLE 13 — DEFINITIONS




          All capitalized terms not defined herein shall have the respective meanings set forth in the
Loan Agreement. Unless the context clearly indicates a contrary intent or unless otherwise
specifically provided herein, words used in this Security Instrument may be used interchangeably in
singular or plural form and the word “Borrower” shall mean “each Borrower and any subsequent owner
or owners of the Property or any part thereof or any interest therein,” the word “Lender” shall
mean “Lender and any subsequent holder of the Note,” the word “Note” shall mean “the Note and any
other evidence of indebtedness secured by this Security Instrument,” the word “Property” shall
include any portion of the Property and any interest therein, and subject to the provisions of the
Loan Documents, the phrases “attorneys’ fees”, “legal fees” and “counsel fees” shall include any
and all attorneys’, paralegal and law clerk fees and disbursements, including, but not limited to,
fees and disbursements at the pre-trial, trial and appellate levels incurred or paid by Lender in
protecting its interest in the Property, the Leases and the Rents and enforcing its rights
hereunder.




ARTICLE 14 — MISCELLANEOUS PROVISIONS




          Section 14.1 No Oral Change. This Security Instrument, and any provisions hereof, may
not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act
or failure to act on the part of Borrower or Lender, but only by an agreement in writing signed by
the party against whom enforcement of any modification, amendment, waiver, extension, change,
discharge or termination is sought.




          Section 14.2 Successors and Assigns. This Security Instrument shall be binding upon
and inure to the benefit of Borrower and Lender and their respective successors and assigns
forever.




          Section 14.3 Inapplicable Provisions. If any term, covenant or condition of the Loan
Agreement, the Note or this Security Instrument is held to be invalid, illegal or




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unenforceable in
any respect, the Loan Agreement, the Note and this Security Instrument shall be construed without
such provision.




          Section 14.4 Headings, etc. The headings and captions of various Sections of this
Security Instrument are for convenience of reference only and are not to be construed as defining
or limiting, in any way, the scope or intent of the provisions hereof.




          Section 14.5 Number and Gender. Whenever the context may require, any pronouns used
herein shall include the corresponding masculine, feminine or neuter forms, and the singular form
of nouns and pronouns shall include the plural and vice versa.




          Section 14.6 Subrogation. If any or all of the proceeds of the Note have been used to
extinguish, extend or renew any indebtedness heretofore existing against the Property, then, to the
extent of the funds so used, Lender shall be subrogated to all of the rights, claims, liens,
titles, and interests existing against the Property heretofore held by, or in favor of, the holder
of such indebtedness and such former rights, claims, liens, titles, and interests, if any, are not
waived but rather are continued in full force and effect in favor of Lender and are merged with the
lien and security interest created herein as cumulative security for the repayment of the Debt, the
performance and discharge of Borrower’s obligations hereunder, under the Loan Agreement, the Note
and the other Loan Documents and the performance and discharge of the Other Obligations.




          Section 14.7 Entire Agreement. The Note, the Loan Agreement, this Security Instrument
and the other Loan Documents constitute the entire understanding and agreement between Borrower and
Lender with respect to the transactions arising in connection with the Debt and supersede all prior
written or oral understandings and agreements between Borrower and Lender with respect thereto.
Borrower hereby acknowledges that, except as incorporated in writing in the Note, the Loan
Agreement, this Security Instrument and the other Loan Documents, there are not, and were not, and
no Persons are or were authorized by Lender to make, any representations, understandings,
stipulations, agreements or promises, oral or written, with respect to the transaction which is the
subject of the Note, the Loan Agreement, this Security Instrument and the other Loan Documents.




          Section 14.8 Limitation on Lender’s Responsibility. No provision of this Security
Instrument shall operate to place any obligation or liability for the control, care, management or
repair of the Property upon Lender, nor shall it operate to make Lender responsible or liable for
any waste committed on the Property by the tenants or any other Person, or for any dangerous or
defective condition of the Property, or for any negligence in the management, upkeep, repair or
control of the Property resulting in loss or injury or death to any tenant, licensee, employee or
stranger unless such loss or damage is caused by fraud, willful misconduct, gross negligence or bad
faith of Lender or its agents. Nothing herein contained shall be construed as constituting Lender
a “mortgagee in possession.”




          Section 14.9 Conflict. In the event of any inconsistencies between the terms and
conditions hereof and the terms and conditions of the Loan Agreement, the terms of the Loan
Agreement shall control and be binding.




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ARTICLE 15 — DEED OF TRUST PROVISIONS




          Section 15.1 Concerning the Trustee. If directed by Lender to foreclose the lien and
security interest of this Security Instrument, Trustee will either personally or by agent give
notice of the foreclosure sale as required by the California Civil Code of Procedure § 725a et.
seq. as then in effect and sell and convey all or part of the Property “AS IS” to the highest
bidder for cash, without any covenant or warranty, expressed or implied, subject to all matters of
record and without representation or warranty, express or implied by Trustee. Trustee shall pay
from the proceeds of the sale, in this order: (a) expenses of foreclosure, including, a reasonable
commission to Trustee; (b) to Lender, the full amount of principal, interest, attorney’s fees, and
other charges due and unpaid; (c) any amounts required by law to be paid before payment to
Borrower; and (d) to Borrower, any balance. Trustee shall be under no duty to take any action
hereunder except as expressly required hereunder or by law, or to perform any act which would
involve Trustee in any expense or liability or to institute or defend any suit in respect hereof,
unless properly indemnified to Trustee’s reasonable satisfaction. Trustee, by acceptance of this
Security Instrument, covenants to perform and fulfill the trusts herein created, being liable,
however, only for gross negligence or willful misconduct, and hereby waives any statutory fee and
agrees to accept reasonable compensation, in lieu thereof, for any services rendered by Trustee in
accordance with the terms hereof. Trustee may resign at any time upon giving thirty (30) days’
notice to Borrower and to Lender. Lender may remove Trustee at any time or from time to time and
select a successor trustee. In the event of the death, removal, resignation, refusal to act, or
inability to act of Trustee, or in its sole discretion for any reason whatsoever Lender may,
without notice and without specifying any reason therefor and without applying to any court, select
and appoint a successor trustee, by an instrument recorded wherever this Security Instrument is
recorded and all powers, rights, duties and authority of Trustee, as aforesaid, shall thereupon
become vested in such successor. Such substitute trustee shall not be required to give bond for
the faithful performance of the duties of Trustee hereunder unless required by Lender. The
procedure provided for in this paragraph for substitution of Trustee shall be in addition to and
not in exclusion of any other provisions for substitution, by law or otherwise.




          Section 15.2 Trustee’s Fees. Borrower shall pay all reasonable out-of-pocket costs,
fees and expenses incurred by Trustee and Trustee’s agents and counsel in connection with the
performance by Trustee of Trustee’s duties hereunder and all such costs, fees and expenses shall be
secured by this Security Instrument.




          Section 15.3 Certain Rights. During the existence of an Event of Default, with the
approval of Lender, Trustee shall have the right to take any and all of the following actions: (a)
to select, employ, and advise with counsel (who may be, but need not be, counsel for Lender) upon
any matters arising hereunder, and shall be fully protected in relying as to legal matters on the
advice of counsel, (b) to execute any of the trusts and powers hereof and to perform any duty
hereunder either directly or through his/her agents or attorneys and (c) any and all other lawful
action as Lender may instruct Trustee to take to protect or enforce Lender’s rights hereunder.
Trustee shall not be personally liable in case of entry by Trustee, or anyone entering by
virtue of the powers herein granted to Trustee, upon the Property for debts contracted for or
liability or damages incurred in the management or operation of the Property. Trustee shall have
the right to rely on any instrument, document, or signature authorizing or supporting an action
taken or





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proposed to be taken by Trustee hereunder, believed by Trustee in good faith to be
genuine. Trustee shall be entitled to reimbursement for actual reasonable expenses incurred by
Trustee in the performance of Trustee’s duties hereunder and to reasonable compensation for such of
Trustee’s services hereunder as shall be rendered.




          Section 15.4 Retention of Money. All moneys received by Trustee shall, until used or
applied as herein provided, be held in trust for the purposes for which they were received, but
need not be segregated in any manner from any other moneys (except to the extent required by
applicable law) and Trustee shall be under no liability for interest on any moneys received by
Trustee hereunder.




          Section 15.5 Perfection of Appointment. Should any deed, conveyance, or instrument of
any nature be required from Borrower by any Trustee or substitute trustee to more fully and
certainly vest in and confirm to the Trustee or substitute trustee such estates rights, powers, and
duties, then, upon request by the Trustee or substitute trustee, any and all such deeds,
conveyances and instruments shall be made, executed, acknowledged, and delivered and shall be
caused to be recorded and/or filed by Borrower.




          Section 15.6 Succession Instruments. Any substitute trustee appointed pursuant to any
of the provisions hereof shall, without any further act, deed, or conveyance, become vested with
all the estates, properties, rights, powers, and trusts of its or his/her predecessor in the rights
hereunder with like effect as if originally named as Trustee herein; but nevertheless, upon the
written request of Lender or of the substitute trustee, the Trustee ceasing to act shall execute
and deliver any instrument transferring to such substitute trustee, upon the trusts herein
expressed, all the estates, properties, rights, powers, and trusts of the Trustee so ceasing to
act, and shall duly assign, transfer and deliver any of the property and moneys held by such
Trustee to the substitute trustee so appointed in the Trustee’s place.




ARTICLE 16 — HOTEL OPERATING LEASE PROVISIONS




          Section 16.1 No Merger of Fee and Leasehold Estates; Releases. So long as any portion
of the Debt shall remain unpaid, unless Lender shall otherwise consent, the fee title to the Land
and the leasehold estate therein created under the Hotel Operating Lease shall not merge but shall
always be kept separate and distinct, notwithstanding the union of such estates in Hotel Owner, the
lessor thereunder, or in any other Person by purchase, operation of law or otherwise. Lender
reserves the right, at any time, to release portions of the Property, including, but not limited
to, the leasehold estate created by the Hotel Operating Lease, with or without consideration, at
Lender’s election, without waiving or affecting any of its rights hereunder or under the Note or
the other Loan Documents and any such release shall not affect Lender’s rights in connection with
the portion of the Property not so released.




ARTICLE 17 — STATE-SPECIFIC PROVISIONS




     Section 17.1 Principles of Construction. In the event of any inconsistencies between
the terms and conditions of this Article 17 and the terms and conditions of this Security
Instrument, the terms and conditions of this Article 17 shall control and be binding.



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          Section 17.2 Remedies Not Exclusive; Waiver. Trustee and Lender shall have all
powers, rights and remedies under applicable law whether or not specifically or generally granted
or described in this Security Instrument. Nothing contained herein shall be construed to impair or
to restrict such powers, rights and remedies or to preclude any procedures or process otherwise
available to trustees or beneficiaries under deeds of trust in the State of California. Trustee
and Lender, and each of them, shall be entitled to enforce the payment and performance of any
indebtedness or obligations secured hereby and to exercise all rights and powers under this
Security Instrument or under any other Loan Document or other agreement or any laws now or
hereafter in force, notwithstanding the fact that some or all of the indebtedness and obligations
secured hereby may now or hereafter be otherwise secured, whether by mortgage, deed of trust,
pledge, lien, assignment or otherwise. Neither the acceptance of this Security Instrument nor its
enforcement, whether by court action or pursuant to the power of sale or other powers contained
herein, shall prejudice or in any manner affect Trustee’s or Lender’s right to realize upon or
enforce any other rights or security now or hereafter held by Trustee or Lender. Trustee and
Lender, and each of them, shall be entitled to enforce this Security Instrument and any other
rights or security now or hereafter held by Lender or Trustee in such order and manner as they or
either of them may in their absolute discretion determine. No remedy herein conferred upon or
reserved to Trustee or Lender is intended to be exclusive of any other remedy contained herein or
by law provided or permitted, but each shall be cumulative and in addition to every other remedy
given hereunder or now or hereafter existing at law or in equity. Every power or remedy given by
any of the Loan Documents to Trustee or Lender, or to which either of them may be otherwise
entitled, may be exercised, concurrently or independently, from time to time and as often as may be
deemed expedient by Trustee or Lender, and either of them may pursue inconsistent remedies. By
exercising or by failing to exercise any right, option or election hereunder, Lender shall not be
deemed to have waived any provision hereof or to have released Borrower from any of the obligations
secured hereby unless such waiver or release is in writing and signed by Lender. The waiver by
Lender of Borrower’s failure to perform or observe any term, covenant or condition referred to or
contained herein to be performed or observed by Borrower shall not be deemed to be a waiver of such
term, covenant or condition or of any subsequent failure of Borrower to perform or observe the same
or any other such term, covenant or condition referred to or contained herein, and no custom or
practice which may develop between Borrower and Lender during the term hereof shall be deemed a
waiver of or in any way affect the right of Lender to insist upon the performance by Borrower of
the obligations secured hereby in strict accordance with the terms hereof or of any other Loan
Document




          Section 17.3 Power of Sale. (i) Should Lender elect to foreclose by exercise of the
power of sale contained herein, Lender shall notify Trustee and shall, if required, deposit with
Trustee the Note, the original or a certified copy of this Security Instrument, and such other
documents, receipts and evidences of expenditures made and secured hereby as Trustee may require.
Upon receipt of such notice from Lender, Trustee shall cause to be recorded and delivered to
Borrower such notice as may then be required by law and by this Security Instrument. Trustee
shall, without demand on Borrower, after lapse of such time as may then be required by law and
after recordation of such notice of default and after notice of sale has been
given as required by law, sell the Collateral at the time and place of sale fixed by it in
said notice of sale, either as a whole or in separate lots or parcels or items as Trustee shall
deem expedient, and in such order as it may determine, at public auction to the highest bidder for
cash in lawful money of the United States payable at the time of sale. Trustee shall deliver to
the purchaser or





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purchasers at such sale its good and sufficient deed or deeds conveying the
property so sold, but without any covenant or warranty, express or implied. The recitals in such
deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person,
including, without limitation, Borrower, Trustee or Lender, may purchase at such sale, and Borrower
hereby covenants to warrant and defend the title of such purchaser or purchasers.




     (ii) After deducting all costs, fees and expenses of Trustee and of this Security Instrument,
including, without limitation, costs of evidence of title and actual and customary attorneys’ fees
of Trustee or Lender in connection with a sale as provided in subparagraph (i) above, Trustee shall
apply the proceeds of such sale (a) first, to the payment of all sums expended by Lender under the
terms of any of the Loan Documents and not yet repaid, together with interest on such sums at the
Default Rate as set forth in the Loan Agreement, (b) second, to the payment of all sums expended
under the terms hereof not then repaid, with accrued interest at the rate of interest equal to the
rate then in effect under the Note, or if the Note has been repaid, the rate that would have been
in effect under the Note, (c) third, to the payment of all other sums then secured hereby, and (d)
fourth, the remainder, if any, to the person or persons legally entitled thereto.



          Section 17.4 Right of Rescission. Lender may from time to time rescind any notice of
default or notice of sale before any Trustee’s sale in accordance with the laws of the State of
California. The exercise by Lender of such right of rescission shall not constitute a waiver of
any breach or default then existing or subsequently occurring, or impair the right of Lender to
execute and deliver to Trustee, as above provided, other declarations or notices of default to
satisfy the obligations of this Security Instrument or secured hereby, nor otherwise affect any
provision, covenant or condition of any Loan Document or any of the rights, obligations or remedies
of Trustee or Lender hereunder or thereunder.




          Section 17.5 Full Reconveyance. Upon written request of Lender stating that all sums
secured hereby have been paid, upon surrender to Trustee of the Note and the original or a
certified copy of this Security Instrument for cancellation and retention, and upon payment of its
fees, Trustee shall fully reconvey, without warranty, the entire remaining Collateral then held
hereunder. The recitals in such reconveyance of any matters of facts shall be conclusive proof of
the truthfulness thereof. The grantee in such reconveyance may be described as “the person or
persons legally entitled thereto.”




          Section 17.6 Fixture Filing. This Security Instrument constitutes a fixture filing
under the fixture filing provisions of the UCC, Sections 9334 and 9502(c) as enacted and under the
equivalent statutes in the State of California, as amended or recodified from time to time.




          Section 17.7 Border Zone Property. Borrower represents and warrants that to
Borrower’s actual knowledge, the Land has not been designated as Border Zone Property under the
provisions of California Health and Safety Code, Sections 25220 et. seq. or any
regulation
adopted in accordance therewith, and to Borrower’s actual knowledge, there has been no
occurrence or condition on any real property adjoining or in the vicinity of the Land that is
reasonably likely to cause the Property or any part thereof to be designated as Border Zone
Property.





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          Section 17.8 Additional Security Agreement Provisions.





     (a) With respect to fixtures, Lender or Trustee may elect to treat same as either real
property or personal property and proceed to exercise such rights and remedies applicable to
the categorization so chosen. Lender may proceed against the items of real property and any
items of Collateral separately or together in any order whatsoever, without in any way
affecting or waiving Lender’s rights and remedies under the Uniform Commercial Code, this
Security Instrument or the Note. Borrower acknowledges and agrees that Lender’s rights and
remedies under this Security Instrument and the Note shall be cumulative and shall be in
addition to every other right and remedy now or hereafter existing at law, in equity, by
statute or by agreement of the parties.




     (b) Borrower agrees that this Security Instrument constitutes a financing statement
filed as a fixture filing in the Official Records of Riverside County with respect to any
and all fixtures included within the term “Land” or “Collateral” as used herein and with
respect to any goods and other personal property that may now be or hereafter become
fixtures. The names and mailing addresses of the debtor (Borrower) and the secured party
(Lender) are set forth on the first page of this Security Instrument. Borrower is the
record owner of the Collateral. The personal property described above is the collateral
covered by this financing statement. Any reproduction of this Security Instrument or any
other security agreement or financing statement shall be sufficient as a financing
statement.



          Section 17.9 Additional Waivers.





     (a) Borrower has read and hereby approves the Note, this Security Instrument, the other
Loan Documents and all other agreements and documents relating thereto executed by Borrower.
Borrower acknowledges that it has been represented by counsel of its choice to review this
Security Instrument, the Note, the other Loan Documents and all other documents relating
thereto and said counsel has explained and Borrower understands the provisions thereof, or
that Borrower has voluntarily declined to retain such counsel.




     (b) Borrower hereby expressly waives diligence, demand, presentment, protest and notice
of every kind and nature whatsoever (unless as otherwise required under this Security
Instrument or the other Loan Documents) and waives any right to require Lender to enforce
any remedy against any guarantor, endorser or other person whatsoever prior to the exercise
of its rights and remedies hereunder or otherwise. Borrower waives any right to require
Lender to: (i) proceed or exhaust any collateral security given or held by Lender in
connection with the Obligations; (ii) give notice of the terms, time and place of any public
or private sale of any real or personal property security for the Obligations or other
guaranty of the Obligations except as otherwise
required herein or by applicable law; or (iii) pursue any other remedy in Lender’s
power whatsoever.



          (c) Until all Obligations shall have been paid in full, except as otherwise permitted under
the Loan Documents, Borrower: (i) shall not have any right of subrogation to





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any of the rights of
Lender against any guarantor, maker or endorser; (ii) waives any right to enforce any remedy which
Lender now has or may hereafter have against any other guarantor, maker or endorser; and (iii)
waives any benefit of and any other right to participate in, any collateral security for the
Obligations or any guaranty of the Obligations now or hereafter held by Lender.




          Section 17.10 Additional Environmental Provisions. The following statutes are hereby
deemed to be included in the Environmental Laws as described in the Environmental Indemnity: the
Porter-Cologne Water Control Act; the Waste Management Act of 1980; the Toxic Pit Cleanup Act; the
Underground Tank Act of 1984; the California Water Quality Improvement Act; and California Health
and Safety Codes §§ 25117 and 25316.




          Section 17.11 Request for Notices. Pursuant to California Government Code Section
27321.5(b), Borrower requests that a copy of any notice of sale hereunder be mailed to it at the
address set forth in the first paragraph of this Security Instrument.




[NO FURTHER TEXT ON THIS PAGE]




-30-









 








          IN WITNESS WHEREOF, this Security Instrument has been executed by Borrower as of the day and
year first above written.




BORROWER:




FELCOR ESMERALDA (SPE), L.L.C.,

a Delaware limited liability company




	 	 	 	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Charles N. Nye              
 

   Charles N. Nye                   
	 	 
	Title:

	 	Vice President                       	 	 






FELCOR ESMERALDA LEASING (SPE), L.L.C.,

a Delaware limited liability company




	 	 	 	 	 
	 
	 	 	 	 
	By: 

Name:

	 	/s/ Charles N. Nye              
 

   Charles N. Nye                   
	 	 
	Title:

	 	Vice President                       	 	 






 









 






	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	STATE OF TEXAS

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss
	COUNTY OF DALLAS

	 	 	)	 	 	 






          I, the undersigned, a Notary Public in and for said county in the state aforesaid, do hereby
certify that Charles N. Nye, the Vice President of FelCor Esmeralda (SPE), L.L.C., a Delaware
limited liability company, who is personally known to me to be the same person whose name is
subscribed to the foregoing instrument, appeared before me this day in person and acknowledged that
s/he signed and delivered the said instrument as such Officer as his/her own free
and voluntary act and as the free and voluntary act of said company, for the uses and purposes set
forth therein.




          WITNESS my hand and official seal




	 	 	 	 	 
	 	Signature
	 
	 	/s/ Dana K. Drake
 	 
	 	Dana K. Drake 	 
	 	 	 
	 



	 	 	 	 	 
	 
	 	 	 	 
	Official Seal of
	 	 	 	 
	 
	 	 	 
	Notary Public State of   

	 	       TX                 	 	 
	My Commission Expires    

	 	     April 13, 2008	 	 






 









 






	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	STATE OF TEXAS

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss
	COUNTY OF DALLAS

	 	 	)	 	 	 






          I, the undersigned, a Notary Public in and for said county in the state aforesaid, do hereby
certify that Charles N. Nye, the Vice President of FelCor Esmeralda Leasing (SPE), L.L.C., a
Delaware limited liability company, who is personally known to me to be the same person whose name
is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged
that s/he signed and delivered the said instrument as such Officer as his/her own
free and voluntary act and as the free and voluntary act of said Company, for the uses and purposes
set forth therein.




          WITNESS my hand and official seal




	 	 	 	 	 
	 	Signature	 
	 	/s/ Dana K. Drake
 	 
	 	Dana K. Drake 	 
	 	 	 
	 



	 	 	 	 	 
	 
	 	 	 	 
	Official Seal of
	 	 	 	 
	 
	 	 	 
	Notary Public State of   

	 	      TX                 	 	 
	My Commission Expires  

	 	      April 13, 2008	 	 






 









 






	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ACKNOWLEDGED AND CONSENTED TO BY:	 	 
	 
	 	 	 	 	 	 
	 	 	GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Print Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 






	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	ACKNOWLEDGMENTS	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	STATE OF
	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	s.s.:
	 	 
	 

	 	COUNTY OF
	 	 	)	 	 	 	 	 






          On December                     , 2007, before me,                                          , personally appeared
                                        , personally known to me (or proved to me on the basis of satisfactory
evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),
and that by his/her/their signature(s) on the instrument the person(s), or the entity(ies) upon
behalf of which the person(s) acted, executed the instrument.




          Witness my hand and official seal.




 





 









 





 EXHIBIT A




(Legal Description)



REAL PROPERTY IN THE CITY OF INDIAN WELLS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED AS
FOLLOWS:




PARCEL 1:



THAT PORTION OF THE NORTHEAST QUARTER OF SECTION 23, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO
BASE AND MERIDIAN, DESCRIBED AS FOLLOWS:



BEGINNING AT THE SOUTHWEST CORNER OF THE NORTHEAST QUARTER OF SAID SECTION 23, BEING THE SOUTHWEST
CORNER OF PARCEL 1 AS DESCRIBED IN DEED RECORDED MAY 31, 1985 AS INSTRUMENT NO. 117221 OF OFFICIAL
RECORDS OF RIVERSIDE COUNTY, CALIFORNIA;



THENCE ALONG THE BOUNDARY OF SAID PARCEL 1 AND ALONG THE NORTHERLY LINE OF THAT CERTAIN PARCEL
ACQUIRED BY THE STATE OF CALIFORNIA BY DECREE OF CONDEMNATION RECORDED JULY 12, 1937 IN BOOK 332
PAGE 302 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, THE FOLLOWING COURSES:



THENCE, NORTH 86 DEGREES 14’ 13” EAST, 344.37 FEET;



THENCE, NORTH 89 DEGREES 35’ 24” EAST, 1142.49 FEET TO THE BEGINNING OF A CURVE, CONCAVE SOUTHERLY,
HAVING A RADIUS OF 5066 FEET (RECORDED 5055 FEET);



THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 5 DEGREES 38’ 22”, AN ARC DISTANCE
OF 498.62 FEET TO A POINT; SAID POINT BEING ON THE SOUTHERLY LINE OF THE AFORESAID NORTHEAST
QUARTER OF SECTION 23; A RADIAL BEARING PASSING THROUGH SAID POINT BEARS NORTH 5 DEGREES 13’ 46”
EAST;



THENCE, LEAVING SAID NORTHERLY LINE OF THE STATE OF CALIFORNIA PARCEL, NORTH 89 DEGREES 42’ 59”
EAST, ALONG SAID SOUTHERLY LINE, A DISTANCE OF 315.91 FEET;



THENCE NORTH 0 DEGREES 00’ 25” EAST, PARALLEL WITH THE WESTERLY LINE OF SAID NORTHEAST QUARTER OF
SECTION 23, A DISTANCE OF 533.74 FEET;



THENCE NORTH 76 DEGREES 26’ 51” WEST, A DISTANCE OF 1304.17 FEET TO THE




 









 







BEGINNING OF A TANGENT CURVE, CONCAVE NORTHEASTERLY HAVING A RADIUS OF 20,500.00 FEET;



THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE, THROUGH A CENTRAL ANGLE OF 2 DEGREES 59’ 14”, AN
ARC DISTANCE OF 1068.81 FEET TO A POINT ON THE WESTERLY LINE OF THE AFORESAID NORTHEAST QUARTER OF
SECTION 23; A RADIAL BEARING PASSING THROUGH SAID POINT BEARS SOUTH 16 DEGREES 32’ 23” WEST;



THENCE SOUTH 0 DEGREES 00’ 25” WEST, ALONG THE WESTERLY LINE OF SAID NORTHEAST QUARTER, A DISTANCE
OF 1128.16 FEET TO THE POINT OF BEGINNING.




PARCEL 2:



THAT PORTION OF THE NORTHEAST QUARTER OF SECTION 23, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO
BASE AND MERIDIAN, DESCRIBED AS FOLLOWS:



COMMENCING AT THE NORTHWEST CORNER OF SAID NORTHEAST QUARTER OF SECTION 23;



THENCE SOUTH 0 DEGREES 00’ 25” WEST, ALONG THE WESTERLY LINE OF SAID NORTHEAST QUARTER, A DISTANCE
OF 1002.79 FEET TO THE TRUE POINT OF BEGINNING; SAID POINT ALSO BEING ON THE ARC OF A NON-TANGENT
CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 20,000.00 FEET; A RADIAL BEARING PASSING THROUGH
SAID POINT BEARS SOUTH 16 DEGREES 57’ 55” WEST; AND SAID POINT ALSO BEING THE NORTHWEST CORNER OF
PARCEL 2 AS DESCRIBED IN DEED RECORDED MAY 31, 1985 AS INSTRUMENT NO. 117221 OF OFFICIAL RECORDS OF
RIVERSIDE COUNTY, CALIFORNIA;



THENCE ALONG THE BOUNDARY OF SAID PARCEL 2, THE FOLLOWING COURSES:



THENCE SOUTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 3 DEGREES 24’ 46”, AN
ARC DISTANCE OF 1191.32 FEET;



THENCE SOUTH 76 DEGREES 26’ 51” EAST, TANGENT TO LAST MENTIONED CURVE, A DISTANCE OF 457.49 FEET TO
A POINT LYING 1429.85 FEET (RECORDED 1430.37 FEET) SOUTHERLY OF THE NORTHERLY LINE OF THE AFORESAID
NORTHEAST QUARTER OF SECTION 23, MEASURED PARALLEL WITH THE WESTERLY LINE OF SAID NORTHEAST
QUARTER;



THENCE SOUTH 0 DEGREES 00’ 25” WEST, PARALLEL WITH SAID WESTERLY LINE OF THE NORTHEAST QUARTER, A
DISTANCE OF 39.63 FEET;




 









 







THENCE SOUTH 54 DEGREES 13’ 47” EAST, A DISTANCE OF 870.08 FEET;



THENCE SOUTH 0 DEGREES 00’ 25” WEST, PARALLEL WITH THE AFOREMENTIONED WESTERLY LINE OF THE
NORTHEAST QUARTER, A DISTANCE OF 136.26 FEET TO A POINT; SAID POINT BEING 533.74 NORTHERLY OF THE
SOUTHERLY LINE OF THE AFOREMENTIONED NORTHEAST QUARTER, AS MEASURED PARALLEL WITH THE WESTERLY LINE
OF SAID NORTHEAST QUARTER;



THENCE NORTH 76 DEGREES 26’ 51” WEST, A DISTANCE OF 1304.17 FEET TO THE BEGINNING OF A TANGENT
CURVE, CONCAVE NORTHEASTERLY, HAVING A RADIUS OF 20,500.00 FEET;



THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 2 DEGREES 59’ 14”, AN
ARC DISTANCE OF 1068.81 FEET TO A POINT ON THE WESTERLY LINE OF AFORESAID NORTHEAST QUARTER OF
SECTION 23, A RADIAL BEARING PASSING THROUGH SAID POINT BEARS SOUTH 16 DEGREES 32’ 23” WEST;



THENCE NORTH 0 DEGREES 00’ 25” EAST, ALONG SAID WESTERLY LINE OF THE NORTHEAST QUARTER, A DISTANCE
OF 522.14 FEET TO THE TRUE POINT OF BEGINNING.




PARCEL 3:



A PERPETUAL, NON-EXCLUSIVE EASEMENT AS DESCRIBED IN THAT CERTAIN EASEMENT AGREEMENT DATED APRIL 8,
1985 AND RECORDED MAY 31, 1985 AS INSTRUMENT NO. 117222 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY,
CALIFORNIA.



AS AMENDED BY DOCUMENT ENTITLED “EASEMENT AGREEMENT AMENDMENT”, RECORDED APRIL 23, 1997 AS
INSTRUMENT NO. 137528 OF OFFICIAL RECORDS.



AS FURTHER AMENDED BY DOCUMENT ENTITLED “SECOND AMENDMENT TO EASEMENT AGREEMENT”, RECORDED JUNE 11,
2002 AS INSTRUMENT NO. 317300 OF OFFICIAL RECORDS.



AS FURTHER AMENDED BY DOCUMENT ENTITLED “PARTIAL TERMINATION OF EASEMENT AGREEMENT, COMPLIMENTARY
GOLF AGREEMENT AND G.C.E. MAP REFERENCES — AND CONSENT TO TRAVEL EASEMENT, RECORDED OCTOBER 10,
2007, AS INSTRUMENT NO. 0648079 OF OFFICIAL RECORDS.



SAID EASEMENT IS SUBJECT TO THE TERMS AND CONDITIONS AS SET FORTH THEREIN, AS AMENDED. 



APN: 633-150-028-6; 633-150-044 and 633-150-071-4