Exhibit 10.17
Loan No. 101340
LOAN AGREEMENT
by and among
HH LC PORTFOLIO LLC,
HH TEXAS HOTEL ASSOCIATES, L.P.,
THE LENDERS PARTY HERETO
and
WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent for the Lenders
and
PNC BANK, NATIONAL ASSOCIATION,
as Documentation Agent
Executed as of December 22, 2004
Table of Contents
ARTICLE 1. DEFINITIONS
2
1.1
DEFINED TERMS
2
1.2
EXHIBITS AND SCHEDULES INCORPORATED
17
ARTICLE 2. LOAN
17
2.1
LOAN
17
2.2
LOAN FEES
19
2.3
LOAN DOCUMENTS
19
2.4
EFFECTIVE DATE
19
2.5
MATURITY DATE
19
2.6
INTEREST ON THE LOAN
19
2.7
PAYMENTS
23
2.8
AMORTIZATION PAYMENTS
23
2.9
MINIMUM DSC HURDLE
23
2.10
INCREASE OF LOAN AMOUNT
24
2.11
FULL REPAYMENT AND RECONVEYANCE
25
2.12
LENDERS' ACCOUNTING
25
2.13
OPTION TO EXTEND
25
2.14
PARTIAL RELEASE
27
2.15
MAXIMUM INTEREST RATE
28
ARTICLE 3. DISBURSEMENT OF LOAN
29
3.1
CONDITIONS PRECEDENT TO INITIAL ADVANCE
29
3.2
CONDITIONS PRECEDENT TO ALL DISBURSEMENTS
30
3.3
CONDITIONS PRECEDENT TO DISBURSEMENT OF ANY LOAN INCREASE
30
3.4
FUNDS TRANSFER DISBURSEMENTS
32
ARTICLE 4. INSURANCE
33
4.1
TITLE INSURANCE
33
4.2
PROPERTY INSURANCE
33
4.3
FLOOD HAZARD INSURANCE
33
4.4
LIABILITY INSURANCE
33
4.5
GENERAL
33
ARTICLE 5. REPRESENTATIONS AND WARRANTIES
34
5.1
AUTHORITY/ENFORCEABILITY
34
5.2
BINDING OBLIGATIONS
34
5.3
FORMATION AND ORGANIZATIONAL DOCUMENTS
34
i
5.4
NO LEGAL BAR; NO CONSENT
34
5.5
PERMITS
35
5.6
LITIGATION
35
5.7
FINANCIAL CONDITION
35
5.8
NO MATERIAL ADVERSE CHANGE
35
5.9
ACCURACY
35
5.10
NO DEFAULTS
35
5.11
MAJOR AGREEMENTS
35
5.12
TITLE TO PROPERTIES
36
5.13
TAX LIABILITY
36
5.14
REIT STATUS
36
5.15
PROPERTY LEASES
36
5.16
AMERICANS WITH DISABILITIES ACT COMPLIANCE
36
5.17
BUSINESS LOAN
36
5.18
TAX SHELTER REGULATIONS
36
ARTICLE 6. HAZARDOUS MATERIALS
37
6.1
SPECIAL REPRESENTATIONS AND WARRANTIES
37
6.2
HAZARDOUS MATERIALS COVENANTS
38
6.3
INSPECTION BY ADMINISTRATIVE AGENT
38
6.4
HAZARDOUS MATERIALS INDEMNITY
38
6.5
LEGAL EFFECT OF SECTION
39
ARTICLE 7. COVENANTS OF BORROWER
39
7.1
EXPENSES
39
7.2
ERISA COMPLIANCE
40
7.3
LIENS
40
7.4
REPLACEMENT RESERVE ACCOUNTS.
41
7.5
OPERATING ACCOUNTS
42
7.6
MANAGEMENT AGREEMENTS AND LICENSE AGREEMENTS.
42
7.7
NO OTHER AGREEMENTS
43
7.8
USE OF THE PROPERTIES; LEASES
44
7.9
CASUALTY; CONDEMNATION
44
7.10
REQUIRED NOTICES
45
7.11
PERFORMANCE BY THIRD PARTIES
46
7.12
BANK ACCOUNTS
46
7.13
OPERATING LEASES
46
7.14
FURTHER ASSURANCES
46
7.15
ASSIGNMENT
46
7.16
REQUIREMENTS OF LAW
46
7.17
SPECIAL COVENANTS; SINGLE PURPOSE ENTITY
47
7.18
LIMITATIONS ON DISTRIBUTIONS, ETC
47
7.19
COVENANTS WITH RESPECT TO GUARANTOR AND REIT
47
7.20
RENOVATIONS
48
ii
7.21
PROPERTY LEASES
49
7.22
SAVANNAH PROPERTY
49
ARTICLE 8. REPORTING COVENANTS
49
8.1
FINANCIAL INFORMATION
49
8.2
BUDGETS
50
8.3
BOOKS AND RECORDS
51
8.4
KNOWLEDGE OF DEFAULT; ETC
51
8.5
LITIGATION, ARBITRATION OR GOVERNMENT INVESTIGATION
51
8.6
ENVIRONMENTAL NOTICES
51
8.7
CERTIFICATE OF BORROWER
51
ARTICLE 9. DEFAULTS AND REMEDIES
52
9.1
DEFAULT
52
9.2
ACCELERATION UPON DEFAULT; REMEDIES
54
9.3
DISBURSEMENTS TO THIRD PARTIES
54
9.4
REPAYMENT OF FUNDS ADVANCED
54
9.5
RIGHTS CUMULATIVE,