Exhibit 10.8
THIS DOCUMENT
PREPARED BY AND UPON
RECORDING, RETURN TO:
Alan J. Robin, Esq.
Shartsis Friese LLP
One Maritime Plaza, 18th Floor
San Francisco, CA 94111
MORTGAGE, SECURITY AGREEMENT AND
FIXTURE FILING
BY
SHC Columbus Drive, LLC
a Delaware limited liability company,
as Borrower
TO
METROPOLITAN LIFE INSURANCE COMPANY,
a New York corporation,
as Lender
March 9, 2007
TABLE OF CONTENTS
Page
ARTICLE I
GRANT OF SECURITY
3
Section 1.1
REAL PROPERTY GRANT
3
Section 1.2
PERSONAL PROPERTY GRANT
5
Section 1.3
CONDITIONS TO GRANT
6
ARTICLE II
BORROWER COVENANTS
7
Section 2.1
DUE AUTHORIZATION, EXECUTION, AND DELIVERY
7
Section 2.2
PERFORMANCE BY BORROWER; HOTEL LICENSES AND PERMITS
7
Section 2.3
WARRANTY OF TITLE TO REAL PROPERTY AND FF&E
7
Section 2.4
TAXES, LIENS AND OTHER CHARGES
8
Section 2.5
ESCROW DEPOSITS
8
Section 2.6
CARE AND USE OF THE PROPERTY
10
Section 2.7
COLLATERAL SECURITY INSTRUMENTS
11
Section 2.8
MANAGEMENT AGREEMENT
11
Section 2.9
INTEREST RATE CAP AGREEMENT
13
Section 2.10
FF&E
14
Section 2.11
SUITS AND OTHER ACTS TO PROTECT THE PROPERTY
14
Section 2.12
LIENS AND ENCUMBRANCES
14
ARTICLE III
INSURANCE
15
Section 3.1
REQUIRED INSURANCE AND TERMS OF INSURANCE POLICIES
15
Section 3.2
ADJUSTMENT OF CLAIMS
18
Section 3.3
ASSIGNMENT TO LENDER
18
ARTICLE IV
BOOKS, RECORDS AND ACCOUNTS
19
Section 4.1
BOOKS AND RECORDS
19
Section 4.2
PROPERTY REPORTS
19
Section 4.3
ADDITIONAL MATTERS
20
ARTICLE V
LEASES AND OTHER AGREEMENTS AFFECTING THE PROPERTY
20
Section 5.1
BORROWER'S REPRESENTATIONS AND WARRANTIES
20
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TABLE OF CONTENTS
(continued)
Page
Section 5.2
REPRESENTATIONS AND COVENANTS WITH RESPECT TO THE OPERATING LEASE
21
Section 5.3
ASSIGNMENT OF LEASES
21
Section 5.4
PERFORMANCE OF OBLIGATIONS
21
Section 5.5
SUBORDINATE LEASES
22
Section 5.6
LEASING COMMISSIONS
22
Section 5.7
REPRESENTATIONS AND COVENANTS WITH RESPECT TO THE OWNER AGREEMENT
22
ARTICLE VI
ENVIRONMENTAL HAZARDS
23
Section 6.1
REPRESENTATIONS AND WARRANTIES
23
Section 6.2
REMEDIAL WORK
23
Section 6.3
ENVIRONMENTAL SITE ASSESSMENT
24
Section 6.4
UNSECURED OBLIGATIONS
24
Section 6.5
HAZARDOUS MATERIALS
24
Section 6.6
REQUIREMENTS OF ENVIRONMENTAL LAWS
25
ARTICLE VII
CASUALTY, CONDEMNATION AND RESTORATION
26
Section 7.1
BORROWER'S REPRESENTATIONS
26
Section 7.2
RESTORATION
26
Section 7.3
CONDEMNATION
27
Section 7.4
CASUALTY AND CONDEMNATION RESTORATION PURSUANT TO MANAGEMENT AGREEMENT
28
Section 7.5
REQUIREMENTS FOR RESTORATION
29
ARTICLE VIII
REPRESENTATIONS, WARRANTIES AND COVENANTS OF BORROWER
30
Section 8.1
ERISA
30
Section 8.2
NON-RELATIONSHIP
31
Section 8.3
NO ADVERSE CHANGE
31
Section 8.4
BORROWERS'S REPRESENTATIONS AND WARRANTIES
31
Section 8.5
COVENANTS AND AGREEMENTS WITH RESPECT TO LIABLE PARTY AND STRATEGIC HOTELS &
RESORTS, INC.
32
Section 8.6
FOREIGN INVESTOR
32
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TABLE OF CONTENTS
(continued)
Page
Section 8.7
US PATRIOT ACT
32
ARTICLE IX
EXCULPATION AND LIABILITY
32
Section 9.1
LIABILITY OF BORROWER
32
Section 9.2
RECOURSE LOAN
34
ARTICLE X
SINGLE PURPOSE ENTITY; CHANGE IN OWNERSHIP, CONVEYANCE OF
PROPERTY'
PROHIBITIONS ON FINANCING AND DEBT
35
Section 10.1
SINGLE PURPOSE ENTITY
35
Section 10.2
CONVEYANCE OF PROPERTY, CHANGE IN OWNERSHIP AND COMPOSITION
35
Section 10.3
ONE TIME TRANSFER RIGHT