Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.32    
    

FORM OF CASH MANAGEMENT AGREEMENT

(SEVENTH MEZZANINE LOAN)  

        THIS CASH MANAGEMENT AGREEMENT (SEVENTH MEZZANINE LOAN) (as may be amended, replaced, restated, supplemented or
otherwise modified from time to time, this "Agreement") is made as of the 21st day of December, 2007, by  HCR VII PROPERTIES, LLC, a Delaware limited liability company ("Borrower") having an address at
333 N. Summit Street, Toledo, Ohio, 43604, and JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the United States of
America, having an address at 270 Park Avenue, New York, New York 10017 (in its capacity as collateral agent for itself and any other Noteholder (as hereinafter defined) and together with its
successors and assigns, the "Lender"). 

        WHEREAS, pursuant to that certain Loan Agreement (Seventh Mezzanine Loan), dated as of the date hereof, by and among Lender and Borrower
(as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the "Loan Agreement"), JPMorgan Chase Bank, N.A.,
Column Financial, Inc. and Bank of America, N.A. (collectively, the "Noteholders") have made a mezzanine loan in the aggregate principal amount
of $250,000,000.00 (the "Loan") to Borrower, evidenced by, among other things, that certain Promissory Note (Seventh Mezzanine Loan), dated as of the
date hereof, and in favor of the Noteholders (as the same may be amended, severed, split, extended, consolidated, replaced, restated, supplemented or otherwise modified from time to time,
collectively, the "Note"); 

        WHEREAS, pursuant to that certain Loan Agreement, dated as of the date hereof, by and among each of the entities set forth on  Schedule I attached thereto
(collectively, "Mortgage Borrower"), HCR ManorCare Maryland
Properties, LLC, a Delaware limited liability company ("Maryland Owner"), and JPMorgan Chase Bank, N.A., in its capacity as collateral agent for
itself and any other Mortgage Noteholders (as defined below) (together with its successors and assigns, "Mortgage Lender") (as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time, the "Mortgage Loan Agreement"), JPMorgan Chase Bank, N.A., Column
Financial, Inc., and Bank of America, N.A. (collectively, the "Mortgage Noteholders") have made a mortgage loan to Mortgage Borrower in the
aggregate principal amount of $3,000,000,000.00 (the "Mortgage Loan"), which Mortgage Loan is evidenced by, among other things,
that certain Promissory Note, dated as of the date hereof, and in favor of the Mortgage Noteholders; 

        WHEREAS, pursuant to that certain Loan Agreement (First Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank,
N.A., in its capacity as collateral agent for itself and any other Noteholder (as defined in the First Mezzanine Loan Agreement (as defined below)) (together with its successors and assigns,
"First Mezzanine Lender") and HCR I-A Properties, LLC, a Delaware limited liability company ("IA
Borrower"), and HCR I-B Properties, LLC, a Delaware limited liability company ("IB Borrower", and together
with IA Borrower, individually, collectively, jointly and severally, "First Mezzanine Borrower") (as may be amended, replaced, restated or otherwise
modified from time to time, the "First Mezzanine Loan Agreement"), JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A.
made a mezzanine loan to First Mezzanine Borrower in the aggregate principal amount of $100,000,000.00 (the "First Mezzanine Loan"); 

        WHEREAS, pursuant to that certain Loan Agreement (Second Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank,
N.A., in its capacity as collateral agent for itself and any other Noteholder (as defined in the Second Mezzanine Loan Agreement (as defined below)) (together with its successors and assigns,
"Second Mezzanine Lender") and HCR II PROPERTIES, LLC, a Delaware limited liability company
("Second Mezzanine Borrower") (as may be amended, replaced, restated or otherwise modified from time to time, the "Second
Mezzanine Loan Agreement"), JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. made a mezzanine loan to Second Mezzanine Borrower in the
aggregate principal amount of $250,000,000.00 (the "Second Mezzanine Loan"); 

 

        WHEREAS, pursuant to that certain Loan Agreement (Third Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank,
N.A., in its capacity as collateral agent for itself and any other Noteholder (as defined in the Third Mezzanine Loan Agreement (as defined below)) (together with its successors and assigns,
"Third Mezzanine Lender") and HCR III PROPERTIES, LLC, a Delaware limited liability company
("Third Mezzanine Borrower") (as may be amended, replaced, restated or otherwise modified from time to time, the "Third
Mezzanine Loan Agreement"), JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. made a mezzanine loan to Third Mezzanine Borrower in the
aggregate principal amount of $250,000,000.00 (the "Third Mezzanine Loan"); 

        WHEREAS, pursuant to that certain Loan Agreement (Fourth Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank,
N.A., in its capacity as collateral agent for itself and any other Noteholder (as defined in the Fourth Mezzanine Loan Agreement (as defined below)) (together with its successors and assigns,
"Fourth Mezzanine Lender") and HCR IV PROPERTIES, LLC,
a Delaware limited liability company ("Fourth Mezzanine Borrower") (as may be amended, replaced, restated or otherwise modified from time to time, the
"Fourth Mezzanine Loan Agreement"), JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. made a mezzanine loan to Fourth
Mezzanine Borrower in the aggregate principal amount of $250,000,000.00 (the "Fourth Mezzanine Loan"); 

        WHEREAS, pursuant to that certain Loan Agreement (Fifth Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank,
N.A., in its capacity as collateral agent for itself and any other Noteholder (as defined in the Fifth Mezzanine Loan Agreement (as defined below)) (together with its successors and assigns,
"Fifth Mezzanine Lender") and HCR V PROPERTIES, LLC, a Delaware limited liability company
("Fifth Mezzanine Borrower") (as may be amended, replaced, restated or otherwise modified from time to time, the "Fifth
Mezzanine Loan Agreement"), JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. made a mezzanine loan to Fifth Mezzanine Borrower in the
aggregate principal amount of $250,000,000.00 (the "Fifth Mezzanine Loan"); and 

        WHEREAS, pursuant to that certain Loan Agreement (Sixth Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank,
N.A., in its capacity as collateral agent for itself and any other Noteholder (as defined in the Sixth Mezzanine Loan Agreement (as defined below)) (together with its successors and assigns,
"Sixth Mezzanine Lender") and HCR VI PROPERTIES, LLC, a Delaware limited liability company
("Sixth Mezzanine Borrower") (as may be amended, replaced, restated or otherwise modified from time to time, the "Sixth
Mezzanine Loan Agreement"), JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. made a mezzanine loan to Sixth Mezzanine Borrower in the
aggregate principal amount of $250,000,000.00 (the "Sixth Mezzanine Loan"); 

        NOW THEREFORE, in consideration of the mutual promises contained herein and for other good and valuable consideration the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

        Section 1.    Defined Terms.    (a) As used herein the following capitalized
terms shall have the respective meanings set forth below: 

        "IA Borrower" shall have the meaning ascribed to such term in the Recitals hereof. 

        "IB Borrower" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Accounts" shall mean, individually and collectively as the context requires, (a) the Seventh Mezzanine Deposit Account and
(b) the Seventh Mezzanine Sub-accounts. 

        "Agreement" shall have the meaning ascribed to such term in the introductory paragraph hereof. 

2

 

        "Borrower" shall have the meaning ascribed to such term in the introductory paragraph hereof. 

        "Borrower Distributions" shall have the meaning set forth in Section 5(b) hereof. 

        "Business Day" shall mean any day other than a Saturday, Sunday or any other day on which national banks in New York, New York are not
open for business. 

        "Collateral" shall have the meaning set forth in Section 5(c) hereof. 

        "Eligible Account" shall mean an account separate and identifiable from all other funds held by the holding institution that is either
(a) an account or accounts maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution or (b) a
segregated trust account or accounts maintained with a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered
depository institution or trust company, is subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000
and subject to supervision or examination by federal and state authority. An Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument. 

        "Eligible Institution" shall mean a depository institution or trust company, the short-term unsecured debt obligations or
commercial paper of which are rated at least "A-1+" by S&P, "P-1" by Moody's and "F-1+" by Fitch in the case of accounts in which funds are held for thirty
(30) days or less (or, in the case of Letters of Credit or accounts in which funds are held for more than thirty (30) days, the long-term unsecured debt obligations of which
are rated at least "AA" by Fitch and S&P and "Aa2" by Moody's). 

        "Fifth Mezzanine Borrower" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Fifth Mezzanine Loan Agreement" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Fifth Mezzanine Lender" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Fifth Mezzanine Loan" shall have the meaning ascribed to such term in the Recitals hereof. 

        "First Mezzanine Borrower" shall have the meaning ascribed to such term in the Recitals hereof. 

        "First Mezzanine Lender" shall have the meaning ascribed to such term in the Recitals hereof. 

        "First Mezzanine Loan" shall have the meaning ascribed to such term in the Recitals hereof. 

        "First Mezzanine Loan Agreement" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Fitch" shall mean Fitch, Inc. 

        "Fourth Mezzanine Borrower" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Fourth Mezzanine Loan Agreement" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Fourth Mezzanine Lender" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Fourth Mezzanine Loan" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Interest Rate Floor" shall mean those certain interest rate hedge instruments sold by HCR Healthcare, LLC in the notional amount
of the aggregate principal amount of the Mortgage Loan and the Mezzanine Loans, having a LIBOR floor of 4%. 

        "Lender" shall have the meaning ascribed to such term in the introductory paragraph hereof. 

3

 

        "Loan" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Loan Agreement" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Low DSCR General Reserve Funds" shall have the meaning ascribed to such term in  Section 3(c)(vi) hereof. 

        "Low DSCR General Reserve Sub-account" shall have the meaning ascribed to such term in  Section 2(a)(iv) hereof. 

        "Low DSCR Interest Floor Reserve Funds" shall have the meaning ascribed to such term in  Section 3(c)(v) hereof. 

        "Low DSCR Interest Floor Reserve Sub-account" shall have the meaning ascribed to such term in  Section 2(a)(iii) hereof. 

        "Maryland Owner" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Monthly Debt Service Payment Amount" shall mean, with respect to any Payment Date, a sum equal to the amount of interest due and payable
under the Loan on such Payment Date. 

        "Moody's" shall mean Moody's Investors Service, Inc. 

        "Mortgage Borrower" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Mortgage Cash Management Account" shall mean the "Cash Management Account" as defined in the Mortgage Cash Management Agreement. 

        "Mortgage Cash Management Agreement" shall mean that certain Cash Management Agreement, dated as of the date hereof, by and among Mortgage
Borrower, Maryland Owner and Mortgage Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

        "Mortgage Lender" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Mortgage Loan" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Mortgage Loan Agreement" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Note" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Noteholders" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Obligations" shall mean any and all debt, liabilities and obligations of Borrower to Lender pursuant to or in connection with the Loan,
whether now or hereafter existing, including, without limiting the generality of the foregoing, the indebtedness evidenced by the Note, all interest accruing thereon, and any and all debt, liabilities
and obligations of Borrower under the Loan Documents. 

        "Payment Date" shall mean the ninth (9th) day of each calendar month during the term of the Loan. 

        "Permitted Investments" shall mean any one or more of the following obligations or securities acquired at a purchase price of not greater
than par, including those issued by the Servicer, the trustee under any Securitization or any of their respective Affiliates (to the extent satisfying the applicable requirements of this definition),
payable on demand or having a scheduled maturity date not later than the Business Day immediately prior to the first Payment Date following the date of acquiring such investment (or, if earlier, the
date on which the proceeds of such Permitted Investments are necessary to fulfill the purposes of the applicable Account), having a scheduled maturity date not later than 

4

 

365 days
after the date of origination thereof, and meeting one of the appropriate standards set forth below: 

        (a)   obligations
of, or obligations fully guaranteed as to payment of principal and interest by, the United States or any agency or instrumentality thereof provided such
obligations are backed by the full faith and credit of the United States of America including, without limitation, obligations of: the U.S. Treasury (all direct or fully guaranteed obligations), the
Farmers Home Administration (certificate of beneficial ownership), the General Services Administration (participation certificates), the U.S. Maritime Administration (guaranteed Title XI financing),
the Small Business Administration (guaranteed participation certificates and guaranteed pool certificates), the U.S. Department of Housing and Urban Development (local authority bonds) and the
Washington Metropolitan Area Transit Authority (guaranteed transit bonds); provided, however, that the
investments described in this clause (a) (A) must have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an
"r" highlighter affixed to such rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any)
and must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 

        (b)   Federal
Housing Administration debentures; 

        (c)   obligations
of the following United States government sponsored agencies: Federal Home Loan Mortgage Corp. (debt obligations), the Farm Credit System (consolidated
systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt obligations), the Federal National Mortgage Association (debt obligations), the Financing Corp. (debt obligations), and the
Resolution Funding Corp. (debt obligations); provided, however, that the investments described in this
clause (c) (A) must have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an "r" highlighter affixed to
such rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately
with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 

        (d)   federal
funds, unsecured certificates of deposit, time deposits, bankers' acceptances and repurchase agreements with maturities of not more than 365 days of any
bank, the short term obligations of which at all times are rated A-1+ by S&P, F1 by Fitch and P-1 by Moody's (or, if not rated by all Rating Agencies, by all Rating Agencies by
which it is rated); provided, however, that
the investments described in this clause (d) (A) must have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have
an "r" highlighter affixed to such rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any)
and must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 

        (e)   fully
Federal Deposit Insurance Corporation-insured demand and time deposits in, or certificates of deposit of, or bankers' acceptances issued by, any bank or trust
company, savings and loan association or savings bank, the short term obligations of which at all times are rated in the highest short term rating category by each Rating Agency (or, if not rated by
all Rating Agencies, by all Rating Agencies by which it is rated); provided, however, that the
investments described in this clause (e) (A) must have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an
"r" highlighter affixed to such rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any)
and must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 

5

 

        (f)    debt
obligations with maturities of not more than 365 days and at all times rated AA-or higher by S&P and Fitch and Aa3 by Moody's (or, if not rated
by all Rating Agencies, by all Rating Agencies by which it is rated); provided, however, that the
investments described in this clause (f) (A) must have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an
"r" highlighter affixed to such rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any)
and must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 

        (g)   commercial
paper (including both non-interest-bearing discount obligations and interest-bearing obligations payable on demand or on a specified date not more
than one year after the date of issuance thereof) with maturities of not more than 365 days and that at all times is rated A-1+ by S&P, F1+ by Fitch and P-1 by Moody's
(or, if not rated by all Rating Agencies, by all Rating Agencies by which it is rated); provided,  however, that the investments described in this
clause (g) (A) must have a predetermined fixed dollar of principal due at maturity that
cannot vary or change, (B) if rated by S&P, must not have an "r" highlighter affixed to such rating, (C) if such investments have a variable rate of interest, such interest rate must be
tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their
maturity; 

        (h)   units
of taxable money market funds, which funds are regulated investment companies, seek to maintain a constant net asset value per share, which funds are rated AAAm or
AAAm-G by S&P and have the highest rating available from each other Rating Agency
(or, if not rated by all Rating Agencies, rated by at least S&P as aforesaid and otherwise acceptable to each other Rating Agency which rates it) for money market funds; and 

        (i)    any
other security, obligation or investment which has been approved as a Permitted Investment in writing by Lender, unless a Securitization shall have occurred, in
which case Lender's consent shall not be required but Borrower shall have obtained and delivered to Lender such approval from each Rating Agency, as evidenced by confirmation in writing that such
investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the then current ratings assigned to the Securities. 

        Notwithstanding
the foregoing clause (i), such security or obligation shall not constitute a "Permitted Investment" (A) to the extent the ownership of such security or
obligation would cause all (otherwise) Permitted Investments in the aggregate to constitute more than nine percent (9%) of the total voting power or value of the outstanding securities of the issuer
of such security or obligation, or (B) if the issuer is an entity treated as a partnership or other pass-through for federal income tax purposes. 

        "Person" shall mean any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated
association, any federal, state, county or municipal government or any bureau, department or agency thereof or any fiduciary acting in such capacity on behalf of any of the foregoing. 

        "Rating Agencies" shall mean each of S&P, Moody's and Fitch, or any other nationally-recognized statistical rating agency which has been
approved by Lender. 

        "S&P" shall mean Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. 

        "Satisfaction Event" shall mean the satisfaction in full of the Obligations. 

        "Second Mezzanine Borrower" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Second Mezzanine Lender" shall have the meaning ascribed to such term in the Recitals hereof. 

6

 

        "Second Mezzanine Loan" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Second Mezzanine Loan Agreement" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Servicer" shall have the meaning set forth in Section 9.4 of the Loan Agreement. 

        "Seventh Mezzanine Debt Service Sub-account" shall have the meaning ascribed to such term in  Section 2(a)(ii) hereof. 

        "Seventh Mezzanine Deposit Account" shall have the meaning ascribed to such term in  Section 2(a)(i) hereof. 

        "Seventh Mezzanine Sub-accounts" shall mean, collectively, (i) the Seventh Mezzanine Debt Service
Sub-account, (ii) the Low DSCR Interest Floor Reserve Sub-account and (iii) the Low DSCR General Reserve Sub-account. 

        "Sixth Mezzanine Borrower" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Sixth Mezzanine Loan Agreement" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Sixth Mezzanine Lender" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Sixth Mezzanine Loan" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Third Mezzanine Borrower" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Third Mezzanine Loan Agreement" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Third Mezzanine Lender" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Third Mezzanine Loan" shall have the meaning ascribed to such term in the Recitals hereof. 

        "Trigger Period" shall have the meaning ascribed thereto in Section 1.1 of the Loan Agreement. 

        "UCC" or "Uniform Commercial Code" shall mean the Uniform Commercial Code as in effect from time to time in the State of New York. 

        (b)   Capitalized
terms used and not defined herein shall have the respective meanings given to such terms in the Loan Agreement. 

        (c)   The
meanings given to capitalized terms defined herein shall be equally applicable in both singular and plural forms of such terms. 

        Section 2.    Establishment of the Seventh Mezzanine Deposit Account and Seventh Mezzanine Sub-accounts;
Eligible Account; Permitted Investments.    (a) On or prior to the date hereof, Lender has established, and will maintain while the Loan is outstanding, the
following Accounts with an Eligible Institution selected by Lender in its sole discretion: 

          (i)  An
account or sub-account of the Seventh Mezzanine Deposit Account into which Borrower shall deposit, or cause to be deposited, all amounts remaining in the
Sixth Mezzanine Deposit Account on each Payment Date in accordance with the terms and provisions of Section 3(c) of the Sixth Mezzanine Cash Management Agreement, which account shall be
entitled "HCR VII Properties, LLC for the benefit of JPMorgan Chase Bank, N.A., as Lender, pursuant to Loan Agreement dated as of December 21, 2007—Seventh Mezzanine Deposit
Account" (the "Seventh Mezzanine Deposit Account"); and 

         (ii)  An
account or sub-account of the Seventh Mezzanine Deposit Account into which Borrower shall deposit, or cause to be deposited, the Monthly Debt Service
Payment Amount, 

7

 

which
account shall be entitled "HCR VII Properties, LLC for the benefit of JPMorgan Chase Bank, N.A., as Lender, pursuant to Loan Agreement dated as of December 21,
2007—Seventh Mezzanine Debt Service Reserve Sub-account" (the "Seventh Mezzanine Debt Service Sub-account"). 

        (iii)  An
account or sub-account of the Seventh Mezzanine Deposit Account into which Borrower shall deposit, or cause to be deposited, the Low DSCR Interest Floor
Reserve Funds, which account shall be entitled "HCR VII Properties, LLC for the benefit of JPMorgan Chase Bank, N.A., as Lender, pursuant to Loan Agreement dated as of December 21,
2007—Low DSCR Interest Floor Reserve Sub-account" (the "Low DSCR Interest Floor Reserve Sub-account"); and 

        (iv)  An
account or sub-account of the Seventh Mezzanine Deposit Account into which Borrower shall deposit, or cause to be deposited, the Low DSCR General Reserve
Funds, which account shall be entitled "HCR VII Properties, LLC for the benefit of JPMorgan Chase Bank, N.A., as Lender, pursuant to Loan Agreement dated as of December 21,
2007—Low DSCR General Reserve Sub-account" (the "Low DSCR General Reserve Sub-account") 

        (b)   Amounts
deposited in the Seventh Mezzanine Sub-accounts shall be disbursed in accordance with the terms of this Agreement and the Loan Agreement. 

        (c)   Lender
shall have the right to entitle the Accounts with such other designations as Lender may select in its reasonable discretion in order to reflect an assignment or
transfer of the Loan effectuated in accordance with the terms of the Loan Agreement. Lender shall have the right from time to time to change the Eligible Institution with which the Accounts are
maintained; provided, however, that Borrower shall have no obligation to make payments to the Seventh
Mezzanine Deposit Account at such new Eligible Institution until Lender shall have given Borrower at least two (2) days' notice thereof together with wiring instructions for such new Seventh
Mezzanine Deposit Account. The Eligible Institution, account number and other information with respect to the Seventh Mezzanine Deposit Account as of the date hereof is set forth on  Schedule I.

        (d)   The
Accounts described in clauses (a)(ii) through (iv) may be
maintained by Lender, in its discretion, as separate accounts or as subaccounts of the Seventh Mezzanine Deposit Account, whereupon (1) all provisions of this Agreement referring to any Account
shall be interpreted to apply instead to the corresponding sub-account of the Seventh Mezzanine Deposit Account and (2) all provisions of this Agreement referring generally to the
Accounts shall be interpreted to apply instead to the Seventh Mezzanine Deposit Account. 

        (e)   The
Accounts shall be interest-bearing accounts. The interest rate with respect to funds held in the Accounts shall be the rate for such deposits as is customarily paid
by Servicer or commercial banks holding such deposits. All interest income remaining in the Accounts (other than income with respect to the Low DSCR Interest Floor Reserve Sub-account or
the Low DSCR General Reserve Sub-account) shall be for the benefit of Lender; all interest income in the Low DSCR Interest Floor Reserve Sub-account and the Low DSCR General
Reserve Sub-Account shall be for the benefit of the Borrower and credited to the Low DSCR Interest Floor Sub-account or the Low DSCR General Reserve Sub-account, as
applicable. The Accounts shall be assigned the federal tax identification number of Borrower, which number is 26-1290343. Borrower shall provide Lender, at any time within twenty
(20) days after request of Lender, with a Form W-8 or W-9 to evidence that Borrower is not subject to any back-up withholding under the United States
Internal Revenue Code. Prior to application in accordance with the terms hereof, all amounts in the Accounts shall remain an asset of Borrower, subject to the lien and security interest granted Lender
hereunder, and subject to all of the terms and conditions of this Agreement and the other Loan Documents. 

        (f)    Each
Account shall be maintained as an Eligible Account. Each Account is and shall be treated either as a "securities account" as such term is defined in
Section 8-501(a) of the UCC or a "deposit account" as defined in Section 9-102(a)(29) of the UCC. The Seventh Mezzanine Deposit Account is intended to be a
deposit account and the Seventh Mezzanine Sub-accounts are intended to be securities accounts. 

8

 

  
        (g)   Lender or Servicer may (but shall not be obligated to) invest amounts deposited in the respective Accounts in Permitted Investments selected by Lender or Servicer, as
applicable. Borrower may (but shall not be obligated to) direct Lender or Servicer to invest the amounts deposited in the Low DSCR Interest Floor Reserve Sub-account and the Low DSCR
General Reserve Sub-account in Permitted Investments selected by Borrower. All such investments shall be subject to and in accordance with all of the terms and conditions of this
Agreement, including, without limitation, Section 2(e) hereof. Without limiting the generality of the preceding sentence, all funds in the
Accounts that are invested in Permitted Investments (including such funds as are transferred, with the prior written consent of Lender, to another Eligible Account satisfying the requirements of this
Agreement (including the preservation of the security interest granted by Borrower in favor of Lender hereunder)) shall be deemed to be held in the respective Accounts for all purposes of the Loan
Agreement and the other Loan Documents. All earnings on such Permitted Investments shall be for the benefit of and paid to the Lender; provided,  however,
that all earnings on any sums in the Low DSCR Interest Floor Reserve Sub-account and the Low DSCR General Reserve
Sub-account shall be deposited in the Low DSCR Interest Floor Reserve Sub-account or the Low DSCR General Reserve Sub-account, as applicable, for the benefit of
Borrower. If Lender or Servicer, or Borrower, as applicable, elects to invest funds in such Accounts in Permitted Investments, then Borrower shall have liability for any loss in investments of funds
that are invested in Permitted Investments. Borrower shall be responsible for payment of any federal, state or local income or other tax applicable to the interest or income earned on the Accounts. 

        (h)   In
order to further secure the performance by Borrower of the Obligations and as a material inducement for Lender to make the Loan in accordance with the terms of the
Loan Documents, Borrower hereby (i) requests that the Seventh Mezzanine Deposit Account and the Seventh Mezzanine Sub-accounts be established on its behalf as set forth above and
(ii) acknowledges that (A) the Seventh Mezzanine Deposit Account and the Seventh Mezzanine Sub-accounts will be subject to the sole dominion, control and discretion of Lender
(which may be exercised through the Servicer or other authorized agent or designee of Lender), subject to the terms, covenants and conditions of this Agreement and the Loan Agreement,
(B) Lender shall have the sole right to make withdrawals or transfers of funds from the Seventh Mezzanine Deposit Account and the Seventh Mezzanine Sub-accounts in accordance with
the terms and provisions hereof and of the Loan Agreement and the other Loan Documents, and, (C) without limiting Lender's obligations under  Section 3(c)(vii) hereof or Article VII of the
Loan Agreement, neither Borrower nor any other Person claiming on behalf of or through
Borrower shall have any right or authority, whether express or implied, to make use of, or withdraw any funds, investments or other properties from, the Seventh Mezzanine Deposit Account or the
Seventh Mezzanine Sub-accounts, or to give any instructions with respect to the Seventh Mezzanine Deposit Account or the Seventh Mezzanine Sub-accounts until the Debt is repaid
in full. 

        Section 3.    Seventh Mezzanine Deposit Account, Seventh Mezzanine
Sub-accounts.    

        (a)    Intentionally Omitted.    

        (b)    Additional Deposits into Seventh Mezzanine Deposit Account and Seventh Mezzanine
Sub-accounts.    Borrower shall make or cause to be made such additional periodic deposits into the Seventh Mezzanine Deposit Account and the Seventh
Mezzanine Sub-accounts as are required by the terms of the Loan Agreement. 

        (c)    Allocation and Disbursement of Funds in the Seventh Mezzanine Deposit Account and Seventh Mezzanine
Sub-accounts.    On each Payment Date, until the occurrence of a Satisfaction Event, Lender or Servicer shall withdraw all available funds on deposit in
the Seventh Mezzanine Deposit Account, and disburse such funds in the following amounts and order of priority: 

          (i)  First, funds sufficient to pay the Monthly Debt Service Payment Amount for such Payment Date shall be transferred to the
Seventh Mezzanine Debt Service Sub-account; 

9

 

         (ii)  Second, funds sufficient to pay any interest accruing at the Default Rate and late payment charges, if any, shall be
transferred to the Seventh Mezzanine Debt Service Sub-account; 

        (iii)  Third, funds sufficient to pay any and all payments of interest or principal on the Loan or portions thereof with
respect to prior Payment Dates that have not been paid previously, if any, shall be transferred to the Seventh Mezzanine Debt Service Sub-account; 

        (iv)  Fourth, funds sufficient to pay any and all other amounts then due and payable under the Loan, if any, shall be
transferred to the Seventh Mezzanine Debt Service Sub-account; 

         (v)  Fifth, during the continuance of a Trigger Period, and so long as no Event of Default shall then be continuing, if LIBOR
is less than four percent (4%) then, solely to the extent of any amounts remaining in the Seventh Mezzanine Deposit Account (and without any other recourse to, or obligations of, Borrower or Lender
hereunder to any other party) an amount (the "Low DSCR Interest Floor Reserve Funds") equal to the product of: (A) four percent (4%)  minus LIBOR as
actually in
effect during such Interest Period, times (B) the then outstanding principal amount of the Loan and the Mezzanine Loans,  times (C) the number of
actual days in such Interest Period divided by 360; which Low DSCR Interest Floor Reserve Funds shall be paid to Borrower
solely for distribution (which shall be a distribution through each intermediate parent) to Manor Care, Inc. in order that a capital contribution can be made to HCR Healthcare, LLC to
pay any liability for the comparable then current Interest Period with respect to the Interest Rate Floor. Distributions made pursuant to this  Section 3(c)(v) shall constitute distributions to or
at the direction of the applicable member of the Borrower. 

        (vi)  Sixth, during the continuance of a Trigger Period and further provided that no Event of Default shall then be
continuing, all amounts remaining in the Seventh Mezzanine Deposit Account after deposits for items (i) through (iv) above (the "Low DSCR General Reserve
Funds") shall be transferred to the Low DSCR General Reserve Sub-account; and 

       (vii)  Seventh, provided that no Trigger Period is then continuing, all amounts remaining in the Seventh Mezzanine Deposit
Account after deposits for items (i) through (iv) above shall have been effectuated shall be transferred by wire transfer to Borrower, or as Borrower shall otherwise direct. 

        (d)   Notwithstanding
anything contained in Section 3(c) to the contrary, if an Event of Default shall have occurred and
be continuing, Lender or Servicer shall disburse all available funds in the Seventh Mezzanine Deposit Account and the Seventh Mezzanine Sub-accounts as directed by Lender in its sole and
absolute discretion. 

        Section 4.    Termination.    Lender shall terminate this Agreement upon the occurrence
of a Satisfaction Event and disburse all monies then held in the Seventh Mezzanine Deposit Account and the Seventh Mezzanine Sub-accounts after liquidating all Permitted Investments, to
the Borrower, or as the Borrower shall otherwise direct.. 

        Section 5.    Matters Concerning Borrower.    

        (a)   Simultaneously
with the execution hereof, and as a condition to the funding of the Loan, and hereafter during the term of the Loan, Borrower shall cause each of the
following to occur: 

          (i)  Pursuant
to the Collateral Assignment of Interest Rate Cap Agreement (Seventh Mezzanine Loan), Borrower has directed that all payments to be made under the Interest
Rate Cap Agreement be deposited in the Seventh Mezzanine Deposit Account. 

         (ii)  If
Borrower receives distributions in violation of the Loan Agreement or this Agreement, then (x) Borrower shall be deemed to hold such distributions in trust
for Lender and (y) Borrower shall deposit such funds in the Seventh Mezzanine Deposit Account within one (1) Business Day of receipt all such distributions received by it. 

10

 

        (iii)  Upon
the occurrence of a Liquidation Event on any day other than a Payment Date, the related Net Liquidation Proceeds After Debt Service shall be deposited into the
Seventh Mezzanine Deposit Account and shall be disbursed to Lender within three (3) Business Days of its receipt thereof in accordance with the provisions of Section 2.4.2 of the Loan
Agreement. 

        (b)   All
amounts deposited into the Seventh Mezzanine Deposit Account pursuant to the terms of the Sixth Cash Management Agreement shall be deemed to be distributions to
Borrower ("Borrower Distributions"). Borrower intends to make payment on the Obligations from the Borrower Distributions. Nothing contained herein shall
impair or otherwise limit Borrower's obligations to timely make the payments (including, without limitation, interest and principal) required by the Note, the Loan Agreement and the other Loan
Documents, it being understood that such payments shall be so timely made in accordance with the Loan Documents regardless of the amounts on deposit in the Seventh Mezzanine Deposit Account. 

        (c)   Borrower
hereby grants to Lender, as additional security for the payment and performance of the Obligations, a continuing perfected first priority security interest in
and to, and a first lien upon the following (collectively, the "Collateral"): (A) the Seventh Mezzanine Deposit Account and the Seventh Mezzanine
Sub-accounts and all of Borrower's right, title and interest in and to all cash, property or rights transferred to or deposited therein from time to time, (B) all earnings,
investments and securities (including, without limitation, Permitted Investments) held in the Seventh Mezzanine Deposit Account and the Seventh Mezzanine Sub-accounts in accordance with
this Agreement and (C) any and all proceeds of the foregoing. This Agreement and the grant of security interest made hereby shall secure (i) payment of all amounts payable by Borrower to
Lender under the Note and (ii) the other Obligations. Borrower acknowledges that Servicer is acting as the agent of, and at the direction of, Lender in connection with the subject matter of
this Agreement. Borrower further agrees to execute, acknowledge, deliver, file or do, at its sole cost and expense, all other acts, assignments, notices, agreements or other instruments as Lender may
reasonably require in order to evidence, effectuate, assure, convey, secure, assign, transfer and convey unto Lender any of the rights granted pursuant to this Agreement and to more fully perfect and
protect any lien or security interest granted pursuant to this Agreement. 

        (d)   In
its sole discretion, Borrower may, from time to time deposit amounts into the Seventh Mezzanine Deposit Account in respect of any Seventh Mezzanine
Sub-account from sources of Borrower other than the Accounts under (and as defined in) the Sixth Cash Management Agreement; provided, that
if Borrower deposits such amounts, the amounts deposited shall be subject to all of the terms hereof as if they had not been separately so deposited by Borrower, shall be subject to a first priority
lien and security interest in favor of Lender and may not be withdrawn except as otherwise provided for in this Agreement and the Loan Agreement. Nothing contained herein shall impair or otherwise
limit Borrower's obligations to timely make the payments (including, without limitation, interest and principal) required by the Note, the Loan Agreement and the other Loan Documents, it being
understood that such payments shall be so timely made in accordance with the Loan Documents regardless of the amounts on deposit in the Seventh Mezzanine Deposit Account and/or the Seventh Mezzanine
Sub-accounts. 

        Section 6.    Certain Matters Regarding Lender.    (a) If Lender gives notice,
in writing, signed by Lender or an authorized agent thereof, that an Event of Default under the Loan Agreement has occurred and is continuing, the parties hereto agree that Lender may liquidate or
transfer all amounts deposited in any Account maintained hereunder on demand, without notice to Borrower. Notwithstanding the foregoing, Borrower shall not be deemed to have waived any rights Borrower
may have against Lender if it is determined that Lender was grossly negligent or engaged in willful misconduct. 

11

 

        (b)   Lender
may exercise in respect of the Collateral all rights and remedies available to Lender hereunder or under the other Loan Documents or otherwise available at law or
in equity. Without limiting the generality of the foregoing or the provisions of clause (a) above, upon the occurrence and during the continuance
of an Event of Default, Borrower acknowledges and agrees that it will have no further right to request or otherwise require Lender to disburse funds from the Seventh Mezzanine Deposit Account or the
Seventh Mezzanine Sub-accounts in accordance with the terms of this Agreement, it being agreed that Lender may, at its option, upon the occurrence and during the continuance of an Event of
Default, (i) continue to hold the funds in the Seventh Mezzanine Deposit Account and the Seventh Mezzanine Sub-accounts and/or (ii) continue from time to time to apply all or
any portion of the funds held in the Seventh Mezzanine Deposit Account and/or the Seventh Mezzanine Sub-accounts to the payment of any obligations for which such funds could have been
applied to prior to such Event of Default, to the extent and in such order and manner as Lender in its sole and absolute discretion may determine, and/or (iii) disburse all or any portion of
the funds held in the Seventh Mezzanine Deposit Account or the Seventh Mezzanine Sub-accounts or other Collateral to Lender, in which event Lender may apply the funds held in the Seventh
Mezzanine Deposit Account, the Seventh Mezzanine Sub-accounts or other Collateral to the Obligations in any order and in such manner as Lender may determine in its sole and absolute
discretion. 

        (c)   Upon
the occurrence and during the continuance of an Event of Default, Lender may, at any time or from time to time, collect, appropriate, redeem, realize upon or
otherwise enforce its rights with respect to the Collateral, without notice to Borrower (unless required by law) and without the need to institute any legal action, make demand, exhaust any other
remedies or otherwise proceed to enforce its rights. 

        (d)   No
failure on the part of Lender to exercise, and no delay in exercising, any right under this Agreement shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right under this Agreement or the other Loan Documents. To the extent not prohibited by
applicable law, the remedies provided in this Agreement, the Note, the Loan Agreement and the other Loan Documents are cumulative and not exclusive of any remedies provided at law or in equity. 

        Section 7.    Intentionally Omitted.    

        Section 8.    Successors and Assigns; Assignments; Agents.    (a) This Agreement
shall bind and inure to the benefit of and be enforceable by Borrower and Lender their respective successors and/or permitted assigns. 

        (b)   Lender
shall have the right to assign or transfer rights and obligations under this Agreement in accordance with the terms of the Loan Agreement. Any assignee or
transferee shall be entitled to all the benefits afforded Lender under this Agreement; provided, that such assignee or transferee shall upon written
request deliver to the other parties hereto written confirmation that such assignee or transferee agrees to be bound by the terms of this Agreement and is also the assignee or transferee of the Note
and the other Loan Documents. 

        (c)   Borrower
shall have the right to assign and transfer its rights and obligations hereunder only with the prior written consent of Lender. 

        (d)   Any
duties or actions of Lender hereunder may be performed by Lender or its agent(s), including, without limitation, any Servicer or trustee in a Securitization, which
includes the Loan. 

        Section 9.    Amendment.    This Agreement may be amended from time to time in writing
by all parties hereto. All amendments to this Agreement shall be in writing. 

        Section 10.    Notices.    All notices, consents, approvals and requests required or
permitted hereunder or under any other Loan Document shall be given in writing and shall be effective for all 

12

 

purposes
if hand delivered or sent by (a) certified or registered United States mail, postage prepaid, return receipt requested or (b) expedited prepaid delivery service, either
commercial or United States Postal Service, with proof of attempted delivery, addressed as follows (or at such other address and Person as shall be designated from time to time by any party hereto, as
the case may be, in a notice to the other parties hereto in the manner provided for in this Section 11): 

	If to Lender:	 	JPMorgan Chase Bank, N.A.

c/o Centerline Servicing Inc.

5221 N. O'Connor Blvd., Suite 600

Irving, Texas 75039

Attention: John Roach, Senior Vice President, Asset Management
	

with a copy to:	
 	

Cadwalader, Wickersham & Taft LLP

One World Financial Center

New York, New York 10281

Attention: Fredric L. Altschuler, Esq. and Steven M. Herman, Esq.
	

If to Borrower:	
 	

HCR VII Properties, LLC

333 N. Summit Street

Toledo, Ohio 43604

Attention: Chief Legal Officer
	

With a copy to:	
 	

HCR VII Properties, LLC

333 N. Summit Street

Toledo, Ohio 43604

Attention: Chief Financial Officer
	

With a copy to:	
 	

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022

Attention: James I. Hisiger, Esq.

        A
notice shall be deemed to have been given: (i) in the case of hand delivery, at the time of delivery; (ii) in the case of registered or certified mail, three
(3) Business Days after transmittal; or (iii) in the case of expedited prepaid delivery and telecopy, upon the first Business Day subsequent to transmittal. 

        Section 11.    Limitation on Liability.    Lender shall not be liable for any acts,
omissions, errors in judgment or mistakes of fact or law and in good faith, including, without limitation, acts, omissions, errors or mistakes with respect to the Collateral, except for those arising
as a result of Lender's gross negligence or willful misconduct. Without limiting the generality of the foregoing, except as otherwise expressly provided for herein or as required by applicable law,
Lender shall not have any duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral,
whether or not Lender has or is deemed to have knowledge of such matters, or as to the taking of any steps necessary to preserve rights against any parties or any other right pertaining to any
Collateral. Lender is hereby authorized by Borrower to act on any written instruction believed by it in good faith to be genuine. 

        Section 12.    Governing Law.    THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).  

13

 

        Section 13.    Conflicts.    In the event of any conflicts
between the terms of this Agreement and the terms or the Loan Agreement, the terms of the Loan Agreement shall govern. 

        Section 14.    Exculpation.    Borrower's obligations under this Agreement are subject
to the provisions of Section 9.3 of the Loan Agreement and such provisions are incorporated herein by reference. 

        Section 15.    Headings.    The Section headings in this Agreement are included herein
for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 

        Section 16.    Severability.    Wherever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 

        Section 17.    Counterparts.    This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument. 

        Section 18.    Inconsistencies.    In the event of any inconsistencies between the
terms and conditions hereof and the terms and conditions of the Loan Agreement, the terms and conditions of the Loan Agreement shall control. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

14

  
        IN WITNESS WHEREOF, the parties hereto have executed this Agreement in several counterparts (each of which shall be deemed an original) as
of the date first above written. 

	 	 	BORROWER:
	

 	
 	

HCR VII PROPERTIES, LLC,
 a Delaware limited liability company
	

 	
 	

 	

 
	

 	
 	

By:	

    
 Name:

Title:

[SIGNATURES CONTINUED ON FOLLOWING PAGE]  

	 	 	LENDER:
	

 	
 	

JPMORGAN CHASE BANK, N.A.,

a banking association chartered under the laws of the United States of America
	

 	
 	

 	

 
	

 	
 	

By:	

    
 Name:

Title:

 

 

 
 

SCHEDULE I    
    
    SEVENTH MEZZANINE DEPOSIT ACCOUNT    
    

	Deposit Bank:	 	 
	

Deposit Account:	
 	

 
	

Attention:	
 	

 
	

Account of:	
 	

 
	

Account #	
 	

 
	

Reference:	
 	

HCR VII Properties, LLC

1

QuickLinks

Exhibit 10.32

SCHEDULE I SEVENTH MEZZANINE DEPOSIT ACCOUNTQuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.33    
    

FORM OF PLEDGE AND SECURITY AGREEMENT

(SEVENTH MEZZANINE LOAN)  

        THIS PLEDGE AND SECURITY AGREEMENT (SEVENTH MEZZANINE LOAN) (as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time, this "Agreement"), dated as of December 21, 2007, made by HCR VII
PROPERTIES, LLC, a Delaware limited liability company ("Borrower", or
"Pledgor"), in favor of JPMORGAN CHASE BANK, N.A., a banking association chartered under the laws of the
United States of America, having an address at 270 Park Avenue, New York, New York 10017 (together with its successors and assigns, "Lender"), as
collateral agent for itself and the other Noteholders (as defined below). 

RECITALS  

        WHEREAS, JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. (collectively, the
"Mortgage Noteholders") are making a loan in the aggregate principal amount of $3,000,000,000.00 (the "Mortgage
Loan"), which Mortgage Loan is evidenced by that certain Promissory Note, dated as of the date hereof (as the same may be amended, severed, split, extended, consolidated,
restated, replaced, supplemented or otherwise modified from time to time, the "Mortgage Note"), made by each of the parties set forth on  Schedule I
attached thereto (each, a "Mortgage Borrower" and collectively, the
"Mortgage Borrowers") in favor of the Mortgage Noteholders pursuant to that certain Loan Agreement, dated as of the date hereof, by and among JPMorgan
Chase Bank, N.A., a banking association chartered under the laws of the United States of America, as collateral agent for itself and the other Mortgage Noteholders (together with its successors and
assigns, the "Mortgage Lender"), the Mortgage Borrowers and HCR ManorCare Maryland Properties, LLC a Delaware limited liability company
("Maryland Owner") (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the
"Mortgage Loan Agreement"), and the Mortgage Borrowers (other than Maryland Borrower (as defined in the Mortgage Loan Agreement)) and Maryland Owner
have granted Mortgage Lender first priority mortgages, deeds of trust and deeds to secure debt, as the case may be (collectively, the "Mortgage") on,
among other things, the real property as more fully described in the Mortgage; 

        WHEREAS, JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. (collectively, the
"First Mezzanine Noteholders") are making a loan in the aggregate principal amount of $100,000,000.00 (the "First Mezzanine
Loan"), which First Mezzanine Loan is evidenced by that certain Promissory Note (First Mezzanine Loan), dated as of the date hereof (as the same may be amended, severed, split,
extended, consolidated, restated, replaced, supplemented or otherwise modified from time to time, the "First Mezzanine Note"), made by HCR
I-A Properties, LLC, a Delaware limited liability company ("I-A Borrower"), and HCR I-B
Properties, LLC, a Delaware limited liability company ("I-B Borrower", and together with I-A Borrower, each, a
"First Mezzanine Borrower" and collectively, the "First Mezzanine Borrowers"), in favor of the First
Mezzanine Noteholders pursuant to that certain Loan Agreement (First Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank, N.A., a banking association chartered under the
laws of the United States of America, as collateral agent for itself and the other First Mezzanine Noteholders (together with its successors and assigns, the "First Mezzanine
Lender"), and the First Mezzanine Borrowers (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the
"First Mezzanine Loan Agreement"), and secured by, among other things, a pledge of all of I-A Borrower's interest in the Mortgage Borrowers
(other than Maryland Borrower (as defined in the Mortgage Loan Agreement)) and Maryland Owner and I-B Borrower's interest in I-A Borrower; 

        WHEREAS, JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. (collectively, the
"Second Mezzanine Noteholders") are making a loan in the aggregate principal amount of $250,000,000.00 (the "Second Mezzanine
Loan"), which Second Mezzanine Loan is evidenced by that certain Promissory Note (Second Mezzanine Loan), dated as of the date hereof (as the same may be amended, severed,
split, extended, consolidated, restated, replaced, supplemented or 

 

otherwise
modified from time to time, the "Second Mezzanine Note"), made by HCR II Properties, LLC, a Delaware limited liability company
("Second Mezzanine Borrower"), in favor of the Second Mezzanine Noteholders pursuant to that certain Loan Agreement (Second Mezzanine Loan), dated as of
the date hereof, by and between JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, as collateral agent for itself and the other Second Mezzanine
Noteholders (together with its successors and assigns, the "Second Mezzanine Lender"), and the Second Mezzanine Borrowers (as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time, the "Second Mezzanine Loan Agreement"), and secured by, among other things, a
pledge of all of Second Mezzanine Borrower's interest in I-B Borrower; 

        WHEREAS, JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. (collectively, the
"Third Mezzanine Noteholders") are making a loan in the aggregate principal amount of $250,000,000.00 (the "Third Mezzanine
Loan"), which Third Mezzanine Loan is evidenced by that certain Promissory Note (Third Mezzanine Loan), dated as of the date hereof (as the same may be
amended, severed, split, extended, consolidated, restated, replaced, supplemented or otherwise modified from time to time, the "Third Mezzanine Note"),
made by HCR III Properties, LLC, a Delaware limited liability company ("Third Mezzanine Borrower"), in favor of the Third Mezzanine Noteholders
pursuant to that certain Loan Agreement (Third Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United
States of America, as collateral agent for itself and the other Third Mezzanine Noteholders (together with its successors and assigns, the "Third Mezzanine
Lender"), and the Third Mezzanine Borrowers (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the
"Third Mezzanine Loan Agreement"), and secured by, among other things, a pledge of all of Third Mezzanine Borrower's interest in Second Mezzanine
Borrower; 

        WHEREAS, JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. (collectively, the
"Fourth Mezzanine Noteholders") are making a loan in the aggregate principal amount of $250,000,000.00 (the "Fourth Mezzanine
Loan"), which Fourth Mezzanine Loan is evidenced by that certain Promissory Note (Fourth Mezzanine Loan), dated as of the date hereof (as the same may be amended, severed,
split, extended, consolidated, restated, replaced, supplemented or otherwise modified from time to time, the "Fourth Mezzanine Note"), made by HCR IV
Properties, LLC, a Delaware limited liability company ("Fourth Mezzanine Borrower"), in favor of the Fourth Mezzanine Noteholders pursuant to
that certain Loan Agreement (Fourth Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of
America, as collateral agent for itself and the other Fourth Mezzanine Noteholders (together with its successors and assigns, the "Fourth Mezzanine
Lender"), and the Fourth Mezzanine Borrowers (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the
"Fourth Mezzanine Loan Agreement"), and secured by, among other things, a pledge of all of Fourth Mezzanine Borrower's interest in Third Mezzanine
Borrower; 

        WHEREAS, JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. (collectively, the
"Fifth Mezzanine Noteholders") are making a loan in the aggregate principal amount of $250,000,000.00 (the "Fifth Mezzanine
Loan"), which Fifth Mezzanine Loan is evidenced by that certain Promissory Note (Fifth Mezzanine Loan), dated as of the date hereof (as the same may be amended, severed, split,
extended, consolidated, restated, replaced, supplemented or otherwise modified from time to time, the "Fifth Mezzanine Note"), made by HCR V
Properties, LLC, a Delaware limited liability company ("Fifth Mezzanine Borrower"), in favor of the Fifth Mezzanine Noteholders pursuant to that
certain Loan Agreement (Fifth Mezzanine Loan), dated as of the date hereof, by and between JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, as
collateral agent for itself and the other Fifth Mezzanine Noteholders (together with its successors and assigns, the "Fifth Mezzanine Lender"), and the
Fifth Mezzanine Borrowers (as the 

2

 

same
may be amended, restated, replaced, supplemented or otherwise modified from time to time, the "Fifth Mezzanine Loan Agreement"), and secured by,
among other things, a pledge of all of Fifth Mezzanine Borrower's interest in Fourth Mezzanine Borrower; 

        WHEREAS, JPMorgan Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. (collectively, the
"Sixth Mezzanine Noteholders") are making a loan in the aggregate principal amount of $250,000,000.00 (the "Sixth Mezzanine
Loan"), which Sixth Mezzanine Loan is evidenced by that
certain Promissory Note (Sixth Mezzanine Loan), dated as of the date hereof (as the same may be amended, severed, split, extended, consolidated, restated, replaced, supplemented or otherwise modified
from time to time, the "Sixth Mezzanine Note"), made by HCR VI Properties, LLC, a Delaware limited liability company
("Sixth Mezzanine Borrower"), in favor of the Sixth Mezzanine Noteholders pursuant to that certain Loan Agreement (Sixth Mezzanine Loan), dated as of
the date hereof, by and between JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, as collateral agent for itself and the other Sixth Mezzanine
Noteholders (together with its successors and assigns, the "Sixth Mezzanine Lender"), and the Sixth Mezzanine Borrowers (as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time, the "Sixth Mezzanine Loan Agreement"), and secured by, among other things, a
pledge of all of Sixth Mezzanine Borrower's interest in Fifth Mezzanine Borrower; 

        WHEREAS, Borrower is the legal and beneficial owner of one hundred percent (100%) of the issued and outstanding limited liability company
interests in Sixth Mezzanine Borrower; 

        WHEREAS, Borrower has requested that Lender make a loan to Borrower in the aggregate principal amount of $250,000,000.00 (the
"Loan") evidenced by that certain Promissory Note (Seventh Mezzanine Loan), dated as of the date hereof (as the same may be amended, severed, split,
extended, consolidated, restated, replaced, supplemented or otherwise modified from time to time, the "Note") made by Borrower in favor of JPMorgan
Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A. (collectively, the "Noteholders"); and 

        WHEREAS, it is a condition precedent to the obligation of the Noteholders to make the Loan to Borrower, as borrower under the Loan
Agreement, that Pledgor shall have executed and delivered this Agreement to Lender; 

        NOW, THEREFORE, for ten dollars ($10) and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, in consideration of the premises and to induce Lender to make its loan under the Loan Agreement (as defined below), Pledgor hereby agrees with Lender as follows: 

        1.    Defined Terms.    As used in this Agreement, the following terms
have the meanings set forth in or incorporated by reference below: 

        "I-A Borrower" has the meaning ascribed to such term in the Recitals hereof. 

        "I-B Borrower" has the meaning ascribed to such term in the Recitals hereof. 

        "Agreement" has the meaning ascribed to such term in the introductory paragraph hereof. 

        "Article 8 Matter" has the meaning ascribed to such term in Section 18(l)
hereof. 

        "Borrower" has the meaning ascribed to such term in the introductory paragraph hereof. 

        "Code" means the Uniform Commercial Code from time to time in effect in the State of New York and/or the State of Delaware, as the context
may require. 

        "Collateral" has the meaning ascribed to such term in Section 2 hereof. 

        "Fifth Mezzanine Borrower" has the meaning ascribed to such term in the Recitals hereof. 

3

 

        "Fifth Mezzanine Lender" has the meaning ascribed to such term in the Recitals hereof. 

        "Fifth Mezzanine Loan" has the meaning ascribed to such term in the Recitals hereof. 

        "Fifth Mezzanine Loan Agreement" has the meaning ascribed to such term in the Recitals hereof. 

        "Fifth Mezzanine Loan Documents" shall have the meaning ascribed to the term "Loan Documents" in the Fifth Mezzanine Loan Agreement. 

        "Fifth Mezzanine Note" has the meaning ascribed to such term in the Recitals hereof. 

        "Fifth Mezzanine Noteholder" has the meaning ascribed to such term in the Recitals hereof. 

        "First Mezzanine Borrower" has the meaning ascribed to such term in the Recitals hereof. 

        "First Mezzanine Lender" has the meaning ascribed to such term in the Recitals hereof. 

        "First Mezzanine Loan" has the meaning ascribed to such term in the Recitals hereof. 

        "First Mezzanine Loan Agreement" has the meaning ascribed to such term in the Recitals hereof. 

        "First Mezzanine Loan Documents" shall have the meaning ascribed to the term "Loan Documents" in the First Mezzanine Loan Agreement. 

        "First Mezzanine Note" has the meaning ascribed to such term in the Recitals hereof. 

        "First Mezzanine Noteholder" has the meaning ascribed to such term in the Recitals hereof. 

        "Fourth Mezzanine Borrower" has the meaning ascribed to such term in the Recitals hereof. 

        "Fourth Mezzanine Lender" has the meaning ascribed to such term in the Recitals hereof. 

        "Fourth Mezzanine Loan" has the meaning ascribed to such term in the Recitals hereof. 

        "Fourth Mezzanine Loan Agreement" has the meaning ascribed to such term in the Recitals hereof. 

        "Fourth Mezzanine Loan Documents" shall have the meaning ascribed to the term "Loan Documents" in the Fourth Mezzanine Loan Agreement. 

        "Fourth Mezzanine Note" has the meaning ascribed to such term in the Recitals hereof. 

        "Fourth Mezzanine Noteholder" has the meaning ascribed to such term in the Recitals hereof. 

        "Lender" has the meaning ascribed to such term in the introductory paragraph hereof. 

        "Lien" shall mean any mortgage, deed of trust, lien, pledge, hypothecation, assignment, security interest or any other encumbrance or
charge, including any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, the filing of any financing
statement and any mechanic's, materialmen's and other similar liens and encumbrances. 

        "Loan" has the meaning ascribed to such term in the Recitals hereof. 

        "Loan Agreement" means the Loan Agreement (Seventh Mezzanine Loan), dated as of the date hereof, by and between Borrower and Lender, as
the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

        "Loan Documents" means the Note, the Loan Agreement, this Agreement, the Mezzanine Cash Management Agreement, the UCC-1
Financing Statements and the other documents, agreements, and instruments entered into in connection with the Loan. 

4

 

        "Maryland Owner" has the meaning ascribed to such term in the Recitals hereof. 

        "Mezzanine Cash Management Agreement" means the Cash Management Agreement (Seventh Mezzanine Loan), dated as of the date hereof, by and
between Borrower and Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

        "Mortgage" has the meaning ascribed to such term in the Recitals hereof. 

        "Mortgage Borrower" has the meaning ascribed to such term in the Recitals hereof. 

        "Mortgage Lender" has the meaning ascribed to such term in the Recitals hereof. 

        "Mortgage Loan" has the meaning ascribed to such term in the Recitals hereof. 

        "Mortgage Loan Agreement" has the meaning ascribed to such term in the Recitals hereof. 

        "Mortgage Note" has the meaning ascribed to such term in the Recitals hereof. 

        "Mortgage Noteholder" has the meaning ascribed to such term in the Recitals hereof. 

        "Note" has the meaning ascribed to such term in the Recitals hereof. 

        "Pledged Securities" means the limited liability company interests of Pledgor in Sixth Mezzanine Borrower, together with all limited
liability company certificates, options or rights of any nature whatsoever which may be issued or granted to Pledgor by Sixth Mezzanine Borrower, as the case may be, while this Agreement is in effect. 

        "Pledgor" has the meaning ascribed to such term in the introductory paragraph hereof. 

        "Proceeds" means all "proceeds" as such term is defined in Section 9-102(a)(64) of the Uniform Commercial Code in
effect in the State of Delaware on the date hereof and, in any event, shall include, without limitation, all dividends or other income from the Pledged Securities, collections thereon or distributions
with respect thereto. 

        "Property" has the meaning ascribed to such term in the Recitals hereof. 

        "Second Mezzanine Borrower" has the meaning ascribed to such term in the Recitals hereof. 

        "Second Mezzanine Lender" has the meaning ascribed to such term in the Recitals hereof. 

        "Second Mezzanine Loan" has the meaning ascribed to such term in the Recitals hereof. 

        "Second Mezzanine Loan Agreement" has the meaning ascribed to such term in the Recitals hereof. 

        "Second Mezzanine Loan Documents" shall have the meaning ascribed to the term "Loan Documents" in the Second Mezzanine Loan Agreement. 

        "Second Mezzanine Note" has the meaning ascribed to such term in the Recitals hereof. 

        "Second Mezzanine Noteholder" has the meaning ascribed to such term in the Recitals hereof. 

        "Sixth Mezzanine Borrower" has the meaning ascribed to such term in the Recitals hereof. 

        "Sixth Mezzanine Lender" has the meaning ascribed to such term in the Recitals hereof. 

        "Sixth Mezzanine Loan" has the meaning ascribed to such term in the Recitals hereof. 

        "Sixth Mezzanine Loan Agreement" has the meaning ascribed to such term in the Recitals hereof. 

5

 

        "Sixth Mezzanine Loan Documents" shall have the meaning ascribed to the term "Loan Documents" in the Sixth Mezzanine Loan Agreement. 

        "Sixth Mezzanine Note" has the meaning ascribed to such term in the Recitals hereof. 

        "Sixth Mezzanine Noteholder" has the meaning ascribed to such term in the Recitals hereof. 

        "Special Damages" shall have the meaning ascribed to such term in Section 18(k)
hereof. 

        "Third Mezzanine Borrower" has the meaning ascribed to such term in the Recitals hereof. 

        "Third Mezzanine Lender" has the meaning ascribed to such term in the Recitals hereof. 

        "Third Mezzanine Loan" has the meaning ascribed to such term in the Recitals hereof. 

        "Third Mezzanine Loan Agreement" has the meaning ascribed to such term in the Recitals hereof. 

        "Third Mezzanine Loan Documents" shall have the meaning ascribed to the term "Loan Documents" in the Third Mezzanine Loan Agreement. 

        "Third Mezzanine Note" has the meaning ascribed to such term in the Recitals hereof. 

        "Third Mezzanine Noteholder" has the meaning ascribed to such term in the Recitals hereof. 

        Capitalized
terms used herein but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Loan Agreement. 

          (i)  The
words "hereof", "herein" and "hereunder" and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any
particular provision of this Agreement. Section, subsection, schedule and exhibit references are to this Agreement, unless otherwise specified. 

         (ii)  The
word "including", when used in this Agreement, shall be deemed to be followed by the words "but not limited to." 

        (iii)  Unless
otherwise specified herein, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so
defined. 

        2.    Pledge; Grant of Security Interest.    Pledgor hereby pledges
and grants to Lender, as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Debt, a first priority
security interest in all of Pledgor's right, title and interest to the following (collectively, the "Collateral"): 

          (i)  all
Pledged Securities; 

         (ii)  all
securities, moneys or property representing dividends or interest on any of the Pledged Securities, or representing a distribution in respect of the Pledged
Securities, or resulting from a split-up, revision, reclassification or other like change of the Pledged Securities or otherwise received in exchange therefor, and any subscription
warrants, rights or options issued to the holders of, or otherwise in respect of, the Pledged Securities; 

        (iii)  all
right, title and interest of Pledgor in, to and under any policy of insurance payable by reason of loss or damage to the Pledged Securities and any other
Collateral; 

        (iv)  all
"accounts", "general intangibles", "instruments" and "investment property" (in each case as defined in the Code) constituting or evidencing the foregoing; and 

         (v)  all
Proceeds of any of the foregoing property of Pledgor (including, without limitation, any proceeds of insurance thereon, all "accounts", "general intangibles",
"instruments" and 

6

 

"investment
property", in each case as defined in the Code, constituting or evidencing the foregoing). 

        3.    Powers.    Concurrently with the delivery to Lender of each
certificate representing Pledged Securities, Pledgor shall deliver undated limited liability company powers (or their equivalent) covering each such certificate, duly executed in blank with, if Lender
so reasonably requests, signature guaranteed. 

        4.    Representations and Warranties.    Pledgor represents and
warrants as of the date hereof that: 

        (a)   no
authorization, consent of or notice to any other Person (including, without limitation, any member or creditor of Pledgor or Sixth Mezzanine Borrower) that has not
been obtained, is required in connection with the execution, delivery, performance, validity or enforceability of this Agreement including, without limitation, the assignment and transfer by Borrower
of any of the Collateral to Lender or the subsequent transfer thereof by Lender pursuant to the terms hereof; 

        (b)   the
Pledged Securities constitute all of the issued and outstanding limited liability company interests in the Sixth Mezzanine Borrower; 

        (c)   Pledgor
is the record and beneficial owner of, and has good title to, the Pledged Securities, in each case free of any and all Liens or options in favor of, or claims
of, any other Person, except the Lien created by this Agreement, and the Pledged Securities have not previously been assigned, sold, transferred, pledged or encumbered (except pursuant to this
Agreement); 

        (d)   upon
delivery to Lender of the limited liability membership certificates evidencing the Pledged Securities, the Liens granted pursuant to this Agreement will constitute
valid, perfected first priority Liens on the Pledged Securities and related Proceeds, enforceable as such against all creditors of Pledgor and any Persons purporting to purchase any Pledged Securities
and related Proceeds from Pledgor; 

        (e)   the
exact name of Pledgor is HCR VII Properties, LLC; and 

        (f)    Pledgor
is organized under the laws of the State of Delaware. 

        5.    Covenants.    Pledgor covenants and agrees with Lender that,
from and after the date of this Agreement until the Debt (exclusive of any indemnification or other obligations which are expressly stated in any of the Loan Documents to survive satisfaction of the
Note) is paid in full: 

        (a)    Acknowledgements of Parties.    If Pledgor shall, as a result of its ownership of the Pledged Securities,
become entitled to receive or shall receive any limited liability company certificate (including, without limitation, any certificate representing a dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in connection with any reorganization), option or rights, whether in addition to, in substitution of, as a conversion of,
or in exchange for any certificates or shares representing the Pledged Securities, or otherwise in respect thereof, Pledgor shall hold the same in trust for Lender and deliver the same forthwith to
Lender in the exact form received, duly endorsed by Pledgor to Lender, if required, together with an undated limited liability company power covering such certificate duly executed in blank and with,
if Lender so reasonably requests, signature guaranteed, to be held by Lender hereunder as additional security for the Debt. Any sums paid upon or in respect of the Pledged Securities upon the
liquidation or dissolution of Sixth Mezzanine Borrower shall be paid over to Lender to be held by it hereunder as additional security for the Debt in accordance with the applicable terms of the Loan
Agreement, and in case any distribution of capital shall be made on or in respect of any of the Pledged Securities or any property shall be distributed upon or with respect to any of the Pledged
Securities pursuant to the recapitalization or reclassification of the capital of Sixth Mezzanine Borrower or pursuant to the reorganization thereof, the property so distributed shall be delivered to
Lender to be held by it, subject to the terms hereof, as additional security for the Debt. If any sums of money or property so paid or 

7

 

distributed
in respect of the Pledged Securities shall be received by Pledgor, Pledgor shall, until such money or property is paid or delivered to Lender, hold such money or property in trust for
Lender, segregated from other funds of Pledgor, as additional security for the Debt. 

        (b)    Voting.    Subject to the terms of the Loan Agreement and the Sixth Mezzanine Loan Agreement, without the prior
written consent of Lender, Pledgor shall not, directly or indirectly (i) vote to enable, or take any other action to permit, Sixth Mezzanine Borrower to issue any limited liability company
interests or to issue any other securities convertible into or granting the right to purchase or exchange for any limited liability company interests in Sixth Mezzanine Borrower or, (ii) except
as permitted by the Loan Agreement, sell, assign, transfer, exchange or otherwise dispose of, or grant any option with respect to, the Collateral, or (iii) create, incur, authorize or permit to
exist any Lien or option in favor of, or any claim of any Person with respect to, any of the Collateral, or any interest therein, except for the Liens created pursuant to this Agreement. Pledgor shall
defend the right, title and interest of Lender in and to the Collateral against the claims and demands of all Persons whomsoever. 

        (c)    Further Actions.    At any time and from time to time, upon the written request of Lender, and at the sole cost
and expense of Pledgor, Pledgor shall promptly and duly give, execute, deliver, authorize to file and/or record such further instruments and documents and take such further actions as Lender may
reasonably request for the purposes of obtaining, creating, perfecting, validating or preserving the full benefits of this Agreement and of the rights and powers herein granted including, without
limitation, authorizing the filing of UCC financing or continuation statements indicating that the Collateral covered by such financing statements is "all assets in which Borrower now or hereafter has
rights"; provided, that the amount of the Debt shall not be increased thereby. Pledgor hereby authorizes Lender, upon prior notice to Pledgor, to file
any such financing statements or continuation statements without the signature of Pledgor to the extent permitted by law. If any amount payable under or in connection with any of the Collateral shall
be or become evidenced by any promissory note, other instrument or chattel paper, such note, instrument or chattel paper shall be promptly delivered to
Lender, duly endorsed in a manner reasonably satisfactory to Lender, to be held as Collateral pursuant to this Agreement. 

        (d)    Limitation on Liens.    Pledgor will not create, incur or permit to exist, will defend the Pledged Securities
against, and will take all such other action as is reasonably necessary to remove, any Lien or claim on or to any of the Pledged Securities, other than the Liens created under this Agreement, and will
defend the right, title and interest of Lender in, to and under the Pledged Securities against the claims and demands of all Persons whomsoever. 

        (e)    Changes in Location, Name, etc.    Pledgor will not, unless (i) it shall have given thirty
(30) days' prior written notice to such effect to Lender and (ii) all action reasonably necessary or reasonably advisable, in Lender's opinion, to protect and perfect the Liens and
security interests intended to be created hereunder with respect to the Pledged Securities shall have been taken, change its name, identity or structure, or (C) reorganize or reincorporate
under the laws of another jurisdiction. 

        (f)    Pledgor
shall pay, and save Lender harmless from, any and all liabilities with respect to, or resulting from, any delay in paying any and all stamp, excise, sales or
other taxes which may be payable or which are determined to be payable with respect to any of the Collateral or in connection with any of the transactions contemplated by this Agreement. 

        (g)    Future Certificates.    If in the future there exist any certificates or instruments representing the Pledged
Securities that have not been delivered to Lender pursuant hereto, Pledgor shall promptly deliver all such certificates or instruments to Lender. 

8

 

        6.    Certain Understandings of Parties.    The parties acknowledge
and agree that all of the Pledged Securities have been "certificated", are "securities" governed by Article 8 of the Code and, during the term of this Agreement, the Pledged Securities are and
will be deemed securities under Article 8 and Article 9 of the Code, including without limitation, Section 8-103(c) of the Code. 

        7.    Cash Dividends; Voting Rights.    Subject to  Section 15 hereof (relating to the
application of distributions to pay the Loan) and the provisions of the Mezzanine Cash Management Agreement,
and unless an Event of Default shall have occurred and is then continuing, Pledgor shall be permitted to receive all limited liability company distributions or cash dividends paid in the normal course
of business of Sixth Mezzanine Borrower, and, unless Pledgor shall have received from Lender a notice of the existence of an Event of Default or a Voting Rights Notice (as defined below), to exercise
all voting and limited liability company interests with respect to the Pledged Securities. Lender shall execute and deliver to
Pledgor, or cause to be executed and delivered to Pledgor, all such proxies, powers of attorney and other instruments as Pledgor may reasonably request for the purpose of enabling Pledgor to exercise
the voting and consensual and other rights and powers it is entitled to exercise pursuant to this Section 7. 

        8.    Rights of Lender.    

        (a)   If
an Event of Default shall occur and be continuing, Lender shall have the right, to the extent not prohibited by applicable law, to receive any and all income, cash
dividends, distributions, proceeds or other property received or paid in respect of the Pledged Securities and make application thereof to the Debt, in such order as Lender, in its sole discretion,
may elect, in accordance with the Loan Documents. If an Event of Default shall occur and be continuing, then all such Pledged Securities at Lender's option, shall be registered in the name of Lender
or its nominee (if not already so registered), and upon either (x) prior written notice of the existence of an Event of Default or alternatively (y) two (2) Business Days' prior
written notice from the Lender to Pledgor of the Lender's intention to exercise such rights (a "Voting Rights Notice"), Lender or its nominee may
thereafter exercise (i) all voting and all limited liability company membership and other rights pertaining to the Pledged Securities, and (ii) any and all rights of conversion,
exchange, and subscription and any other rights, privileges or options pertaining to such Pledged Securities as if it were the absolute owner thereof (including, without limitation, the right to
exchange at its discretion any and all of the Pledged Securities upon the merger, consolidation, reorganization, recapitalization or other fundamental change in the organizational structure of Sixth
Mezzanine Borrower, or upon the exercise by Pledgor or Lender of any right, privilege or option pertaining to such Pledged Securities, and in connection therewith, the right to deposit and deliver any
and all of the Pledged Securities with any committee, depositary, transfer agent, registrar or other designated agency upon such terms and conditions as it may determine), all without liability except
to account for property actually received by it, but Lender shall have no duty to exercise any such right, privilege or option and shall not be responsible for any failure to do so or delay in so
doing. 

        (b)   The
rights of Lender under this Agreement shall not be conditioned or contingent upon the pursuit by Lender of any right or remedy against Pledgor or against any other
Person which may be or become liable in respect of all or any part of the Debt or against any other security therefor, guarantee thereof or right of offset with respect thereto. Lender shall not be
liable for any failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so (except to the extent of Lender's gross negligence or willful misconduct), nor
shall it be under any obligation to sell or otherwise dispose of any Collateral upon the request of Pledgor or any other Person or to take any other action whatsoever with regard to the Collateral or
any part thereof. 

        (c)   Upon
satisfaction in full of the Debt (other than contingent obligations or liabilities) including the payment of all amounts owed on the Note, Lender's rights under
this Agreement shall terminate and Lender shall, at Pledgor's sole cost and expense (including reasonable attorneys' fees and 

9

 

disbursements),
execute and deliver to Pledgor, or authorize Pledgor or its authorized representatives to file, UCC-3 termination statements or similar documents and agreements required to
terminate all of Lender's rights under this Agreement and all other Loan Documents and deliver to the applicable Pledgor all certificates representing the Pledged Securities and all other possessory
Collateral delivered to Lender in connection with the Loan. 

        (d)   After
the occurrence and during the continuance of an Event of Default, Pledgor also authorizes Lender, at any time and from time to time, to execute, in connection with
the sale provided for in Sections 9 or 10 hereof, any endorsements, assignments or other
instruments of conveyance or transfer with respect to the Collateral. 

        (e)   The
powers conferred on Lender hereunder are solely to protect Lender's interest in the Collateral and may not impose any duty upon Lender to exercise any such powers.
Lender shall be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither it nor any of its officers, directors, or employees shall be responsible
to Pledgor for any act or failure to act hereunder, except for its or their gross negligence or willful misconduct. 

        (f)    After
the occurrence and during the continuance of an Event of Default, if Pledgor fails to perform or comply with any of its agreements contained herein and Lender, as
provided for by the terms of this Agreement, may itself perform or comply, or otherwise cause performance or compliance, with such agreement, the reasonable and customary expenses of Lender incurred
in connection with such performance or compliance, together with interest at the Default Rate if such expenses are not paid within three (3) Business Days after demand, shall be payable by
Pledgor to Lender on demand and shall constitute obligations secured hereby. 

        9.    Remedies.    (a) If an Event of Default shall occur and
be continuing, to the extent not prohibited by applicable law, Lender may exercise, in addition to all other rights and remedies granted in this Agreement and in any other instrument or agreement
securing, evidencing or relating to the Debt: 

          (i)  all
rights and remedies of a secured party under the Code (whether or not said Code is in effect in the jurisdiction where the rights and remedies are asserted) and
such additional rights and remedies to which a secured party is entitled under the laws in effect in any jurisdiction where any rights and remedies hereunder may be asserted, including, without
limitation, the right, to the maximum extent permitted by law, to exercise all voting, consensual and other powers of ownership pertaining to the Collateral as if Lender were the sole and absolute
owner thereof (and each Pledgor agrees to take all such action as may be necessary to give effect to such right); 

         (ii)  Lender
may make any reasonable compromise or settlement deemed desirable with respect to any of the Collateral and may extend the time of payment, arrange for payment
in installments, or otherwise modify the terms of, any of the Collateral; and 

        (iii)  Lender
in its discretion may, in its name or in the name of any Pledgor or otherwise, demand, sue for, collect, direct payment of or receive any money or property at
any time payable or receivable on account of or in exchange for any of the Collateral, but shall be under no obligation to do so. 

        (b)   If
an Event of Default shall have occurred and be continuing, without limiting the generality of the foregoing, Lender, without demand of performance or other demand,
presentment, protest, advertisement or notice (except any notice required by law or otherwise required by the Loan Documents) of any kind (except any notice required by law referred to below or
otherwise required hereby) to or upon Pledgor, Sixth Mezzanine Borrower or any other Person (all and each of which demands, presentments, protests, advertisements and notices, or other defenses, are
hereby waived by Pledgor to the extent permitted under applicable law), may in such circumstances forthwith collect, receive, appropriate and realize upon the Collateral, or any part thereof, and/or
may forthwith sell, 

10

 

assign,
give option or options to purchase or otherwise dispose of and deliver the Collateral or any part thereof (or contract to do any of the foregoing), in one or more parcels at public or private
sale or sales, in the over-the-counter market, at any exchange, broker's board or office of Lender or elsewhere upon such terms and conditions as it may deem advisable and at
such prices as it may deem best in its sole discretion, for cash or on credit or for future delivery without assumption of any credit risk. Lender shall have the right, without notice or publication,
to adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for such sale, and any such sale may be made at any time or place
to which the same may be adjourned without further notice. Lender shall have the right upon any such public sale or sales, and, to the extent permitted by law, upon any such private sale or sales, to
purchase the whole or any part of the Collateral so sold, free of any right or equity of redemption of Pledgor, which right or equity of redemption is hereby waived or released. Lender shall apply any
Proceeds from time to time held by it and the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale, after deducting all reasonable costs and expenses of every
kind incurred therein or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of Lender hereunder, including, without limitation,
reasonable attorneys' fees and disbursements, to the payment in whole or in part of the Debt, in such order as Lender may elect, and only after such application and after the payment by Lender of any
other amount required by any provision of law, including, without limitation, Sections 9-610 and 9-615 of the Code, need Lender account for the surplus, if any, to
Pledgor. To the extent permitted by applicable law, Pledgor waives all claims, damages and demands it may acquire against Lender arising out of the exercise by Lender of any of its rights hereunder,
except for any claims, damages and demands it may have against Lender arising from the willful misconduct or gross negligence of Lender or its affiliates, or any agents or employees of the foregoing.
If any notice of a proposed sale or other disposition of Collateral shall be required by law, such notice shall be deemed reasonable and proper if given at least ten (10) days prior to such
sale or other disposition (which each Pledgor agrees is reasonable notice within the meaning of Section 9-611 of the Code or its equivalent in other jurisdictions), which notice, in
the case of a public sale, shall state the time and place for such sale and, in the case of a sale at a broker's board or on a securities exchange, shall state the board or exchange at which such sale
is to be made and the day on which the Collateral will first be offered for sale at such board or exchange. 

        (c)   To
the extent not prohibited by applicable law, the rights, powers, privileges and remedies of Lender under this Agreement are cumulative and shall be in addition to all
rights, powers, privileges and remedies available to Lender at law or in equity. All such rights, powers and remedies shall be cumulative and may be exercised successively or concurrently without
impairing the rights of Lender hereunder. 

        10.    Private Sales.    (a) Pledgor recognizes that Lender may
be unable to effect a public sale of any or all of the Pledged Securities, by reason of certain prohibitions contained in the Securities Act of 1933, as amended, and applicable state securities laws
or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among other things, to acquire such securities for
their own account for investment and not with a view to the distribution or resale thereof. Pledgor acknowledges and agrees that any such private sale may result in prices and other terms less
favorable to Lender than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall not be deemed to have been made in a commercially unreasonable
manner solely by virtue of being a private sale. Lender shall be under no obligation to delay a sale of any of the Pledged Securities for the period of time necessary to permit Pledgor or Sixth
Mezzanine Borrower to register such securities for public sale under the Securities Act of 1933, as amended, or under applicable state securities laws, even if Pledgor or Sixth Mezzanine Borrower
would agree to do so. 

11

 

        (b)   Pledgor
further shall use its commercially resonable efforts to do or cause to be done all such other acts as may be reasonably necessary to make any sale or sales of
all or any portion of the Pledged Securities pursuant to this Section 10 valid and binding and in compliance with any and all other requirements
of applicable law. Pledgor further agrees that a breach of any of the covenants contained in this Section 10 will cause irreparable injury to
Lender, that Lender has no adequate remedy at law in respect of such breach and, as a consequence, that each and every covenant contained in this  Section 10 shall be specifically enforceable
against Pledgor, and Pledgor hereby waives and agrees not to assert any defenses against an action
for specific performance of such covenants except for a defense that (x) no Event of Default has occurred under the Loan Agreement or (y) the Debt has been satisfied. Notwithstanding
anything to the contrary contained in this clause (b), neither Pledgor nor Sixth Mezzanine Borrower shall be required to register any of its membership interests under the Securities Act of
1933. 

        (c)   Lender
shall not incur any liability as a result of the sale of any Collateral, or any part thereof, at any private sale conducted in a commercially reasonable manner,
it being agreed that some or all of the Collateral is or may be of one or more types that threaten to decline speedily in value and that are not customarily sold in a recognized market. To the extent
not prohibited by applicable law, Borrower hereby waives any claims against Lender arising by reason of the fact that the price at which any of the Collateral may have been sold at such a private sale
was less than the price which might have been obtained at a public sale or was less than the aggregate amount of the Debt, even if Lender accepts the first offer received and does not offer any
Collateral to more than one offeree, provided that Lender has acted in a commercially reasonable manner in conducting such private sale and shall have given at least ten (10) days prior written
notice to Borrower of such sale. 

        (d)   The
Code states that Lender is able to purchase the Pledged Securities only if they are sold at a public sale. Lender has advised Pledgor that SEC staff personnel have
issued various No-Action Letters describing procedures which, in the view of the SEC staff, permit a foreclosure sale of securities to occur in a manner that is public for purposes of
Article 9 of the Code, yet not public for purposes of Section 4(2) of the Securities Act of 1933. The Code permits Pledgor to agree on the standards for determining whether Lender has
complied with its obligations under Article 9 of the Code. Pursuant to the Code, Pledgor specifically agrees (x) that it shall not raise any objection to Lender's purchase of the Pledged
Securities (through bidding on the obligations or otherwise) and (y) that a foreclosure sale conducted in conformity with the principles set forth in the No-Action Letters
(i) shall be considered to be a "public" sale for purposes of the Code; (ii) will be considered commercially reasonable notwithstanding that the Lender has not registered or sought to
register the Pledged Securities under any securities law applicable to the Pledged Securities, even if Pledgor or Sixth Mezzanine Borrower agrees to pay all costs of the registration process; and
(iii) shall be considered to be commercially reasonable notwithstanding that Lender purchases the Pledged Securities at such a sale. 

        (e)   Pledgor
agrees that Lender shall not have any general duty or obligation to make any effort to obtain or pay any particular price for any Pledged Securities sold by
Lender pursuant to this Agreement. Lender, may, in its sole discretion, among other things, accept the first offer received, or decide to approach or not to approach any potential purchasers. Without
in any way limiting Lender's right to conduct a foreclosure sale in any manner which is considered commercially reasonable, Pledgor hereby agrees that any foreclosure sale conducted in accordance with
the following provisions shall be considered a commercially reasonable sale and hereby irrevocably waives, to the extent not prohibited by applicable law, any right to contest any such sale: 

          (i)  Lender
conducts the foreclosure sale in the State of New York; 

         (ii)  The
foreclosure sale is conducted in accordance with the laws of the State of New York; 

        (iii)  Not
less than ten (10) days prior to the foreclosure sale, Lender notifies Pledgor at the address set forth herein of the time and place of such foreclosure
sale; 

12

 

        (iv)  The
foreclosure sale is conducted by an auctioneer licensed in the State of New York and is conducted in front of the New York Supreme Court located in New York City or
such other New York State Court having jurisdiction over the Collateral on any Business Day between the hours of 9 a.m and 5 p.m.; 

         (v)  The
notice of the date, time and location of the foreclosure sale is published in the New York Times or The Wall Street Journal (or such other newspaper widely
circulated in New York, New York) for seven (7) consecutive days prior to the date of the foreclosure sale; and 

        (vi)  Lender
sends notification of the foreclosure sale to all secured parties identified as a result of a search of the UCC financings statements in the filing offices
located in the State of Delaware conducted not later than twenty (20) days and not earlier than thirty (30) days before such notification date. 

        11.    Limitation on Duties Regarding Collateral.    Lender's sole
duty with respect to the custody, safekeeping and physical preservation of the Collateral in its possession, under Section 9-207 of the Code or otherwise, shall be to deal with it
in the same manner as Lender deals with similar securities and property for its own account. Neither Lender nor any of its directors, officers, employees or agents shall be liable (except to the
extent of Lender's, its directors', officers' and employees' gross negligence or willful misconduct) for failure to demand, collect or realize upon any of the Collateral or for any delay in doing so
or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of Pledgor or otherwise. 

        12.    Financing Statements; Other Documents.    On the date hereof,
Pledgor shall deliver to Lender the certificates for the Pledged Securities, together with powers in blank for each such certificate, and hereby authorizes Lender to file UCC-1 financing
statements with respect to the Collateral in such jurisdictions as Lender shall deem necessary. Pledgor agrees to deliver any other document or instrument which Lender may reasonably request with
respect to the Collateral for the purposes of obtaining or preserving the full benefits of this Agreement and of the rights and powers herein granted. 

        13.    Attorney-in-Fact.    Following the
occurrence and during the continuance of an Event of Default, without limiting any rights or powers granted by this Agreement to Lender, Lender is hereby appointed, which appointment as
attorney-in-fact is irrevocable and coupled with an interest, the attorney-in-fact of each Pledgor for the purpose of carrying out the provisions of
this Agreement and taking any action and executing any instruments which Lender may deem reasonably necessary or advisable to accomplish the purposes hereof including, without limitation (to the
extent not prohibited by applicable law): 

        (a)   to
ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and unpaid and to become due under or in respect of any
of the Collateral; 

        (b)   to
receive, endorse and collect any drafts or other instruments, documents and chattel paper in connection with clause (a) above; 

        (c)   to
file any claims or take any action or institute any proceedings that the Agent may deem reasonably necessary or desirable for the collection of any of the Collateral
or otherwise to enforce the rights of Lender, with respect to any of the Collateral; and 

13

 

  
        (d)   to execute, in connection with the sale provided for in Section 9 or  10 hereof,
any endorsement, assignments, or other instruments of conveyance or transfer with respect to the Collateral. 

        If
so requested by Lender, each Pledgor shall ratify and confirm any such sale or transfer by executing and delivering to Lender at Pledgor's expense all proper deeds, bills of sale,
instruments of assignment, conveyance of transfer and releases as may be reasonably designated in any such request. 

        14.    Additional Covenants of Pledgor Relating to Affirmative Covenants of Sixth Mezzanine
Borrower.    Pledgor covenants and agrees with Lender that, from and after the date of this Agreement until the Debt (exclusive of any
indemnification or other obligations which are expressly stated in any of the Loan Documents to survive satisfaction of the Note) is paid in full, Pledgor shall, and shall cause Sixth Mezzanine
Borrower to, (a) take any and all actions either necessary or reasonably requested by Lender to ensure material compliance with Section 5.1 of the Sixth Mezzanine Loan Agreement,
(b) take such actions as are required by or to materially comply with the terms and provisions of the Sixth Mezzanine Loan Documents applicable to it, and shall not permit to be taken any
actions that violate the terms and provisions of the Sixth Mezzanine Loan Documents and (c) not to apply amounts disbursed to any Sixth Mezzanine Borrower pursuant to the requirements of the
Sixth Mezzanine Loan Documents in a manner contrary to the requirements of the Sixth Mezzanine Loan Documents. 

        15.    Additional Covenants of Pledgor Relating to Negative Covenants of Sixth Mezzanine
Borrower.    Pledgor covenants and agrees with Lender that, from and after the date of this Agreement until the Debt (exclusive of any
indemnification or other obligations which are expressly stated in any of the Loan Documents to survive satisfaction of the Note) is paid in full, Pledgor shall cause Sixth Mezzanine Borrower to take,
any action to ensure compliance by the Sixth Mezzanine Borrower with Section 5.2 of the Sixth Mezzanine Loan Agreement. 

        16.    Non-Recourse.    The
provisions of Section 9.3 of the Loan Agreement are hereby incorporated by reference into this Agreement as to the liability of Borrower hereunder to the same extent and with the same force as
if fully set forth herein. 

        17.    Indemnity.    Pledgor agrees that the
terms and provisions of Section 10.13 of the Loan Agreement are hereby incorporated by reference into this Agreement to the same extent and with the same force as if fully set forth herein. 

        18.    Miscellaneous.    

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

        (b)    Headings.    The headings used in this Agreement are for convenience of reference only and are not to affect
the construction hereof or be taken into consideration in the interpretation hereof. 

        (c)    No Waiver; Cumulative Remedies.    Lender shall not by any act (except by a written instrument pursuant to  Section 18(d) hereof), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in
any default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor any delay in exercising (except to the extent of Lender's gross negligence or willful misconduct),
on the part of Lender, any right, power or privilege hereunder shall operate as a waiver thereof, to the extent not prohibited by applicable law. No single or partial exercise of any right, power or
privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by Lender of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which 

14

 

Lender
would otherwise have on any future occasion. The rights, remedies, powers and privileges herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any
rights, remedies, powers or privileges provided by law. 

        (d)    Waivers and Amendments; Successors and Assigns.    None of the terms or provisions of this Agreement may be
waived, amended, or otherwise modified except by a written instrument executed by the party against which enforcement of such waiver, amendment, or modification is sought. This Agreement shall be
binding upon and shall inure to the benefit of Pledgor and the respective successors and assigns of Pledgor and shall inure to the benefit of Lender and its respective successors and assigns;  provided,
however, except to the extent permitted pursuant to the Loan Agreement, no Pledgor shall have any right to assign its rights hereunder. The
rights of Lender under this Agreement shall automatically be transferred to any permitted transferee to which Lender transfers the Note and Loan Agreement. 

        (e)    Notices.    Notices by Lender to Pledgor or Sixth Mezzanine Borrower, to be effective, shall be in writing,
addressed or transmitted to Pledgor or Sixth Mezzanine Borrower, as the case may be, at the address of Borrower set forth in the Loan Agreement, and shall be deemed to have been duly given or made if
given or made in accordance with the terms and provisions of Section 10.6 of the Loan Agreement. 

        (f)    Governing Law.    

        (i)    THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY PLEDGOR AND ACCEPTED BY LENDER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF
THE NOTE SECURED HEREBY WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN
ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT 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 CONFLICT LAWS, OTHER THAN
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF PLEDGOR AND LENDER
HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE NOTE, AND THIS AGREEMENT AND THE NOTE 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.

15

 

        (ii)   ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR PLEDGOR ARISING OUT OF OR RELATING TO THIS AGREEMENT MAY AT LENDER'S OR PLEDGOR'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, TO THE EXTENT NOT
PROHIBITED BY APPLICABLE LAW, PLEDGOR AND LENDER EACH 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
PLEDGOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. PLEDGOR DOES HEREBY DESIGNATE AND APPOINT:

CT CORPORATION

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 WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO PLEDGOR IN THE MANNER PROVIDED IN
SECTION 10.6 OF THE LOAN AGREEMENT SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON PLEDGOR IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. PLEDGOR
(A) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (B) 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 (C) 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.

        (g)    Agents.    Lender may employ agents and attorneys-in-fact in connection herewith and
shall not be responsible for their actions except for the gross negligence or willful misconduct of any such agents or attorneys-in-fact selected by it in good faith. 

        (h)    Irrevocable Authorization and Instruction to Sixth Mezzanine Borrower.    Pledgor hereby authorizes and
instructs Sixth Mezzanine Borrower and any servicer of the Loan to comply with any instruction received by it from Lender in writing that (i) states that an Event of Default has occurred and is
continuing and (ii) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from Pledgor, and Pledgor agrees that Sixth Mezzanine Borrower and any
servicer shall be fully protected in so complying. 

        (i)    Counterparts.    This Agreement may be executed in any number of counterparts and all the counterparts taken
together shall be deemed to constitute one and the same instrument. 

        (j)    WAIVER OF JURY TRIAL, DAMAGES,
JURISDICTION.    PLEDGOR AND LENDER EACH HEREBY AGREES TO WAIVE ITS RIGHTS TO A JURY TRIAL ON ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, OR ANY DEALINGS BETWEEN PLEDGOR AND LENDER. THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND  

16

 

 STATUTORY CLAIMS. PLEDGOR AND LENDER EACH ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO LENDER TO ENTER INTO A BUSINESS RELATIONSHIP WITH PLEDGOR. PLEDGOR AND LENDER EACH REPRESENTS AND
WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH WAIVER IS KNOWINGLY AND VOLUNTARILY GIVEN FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING
THAT IT MAY NOT BE MODIFIED, EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, REPLACEMENTS, REAFFIRMATIONS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT, OR ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY
THE COURT.

        WITH RESPECT TO ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, EACH OF PLEDGOR AND LENDER SHALL AND HEREBY DOES SUBMIT TO THE NON-EXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN THE STATE OF NEW YORK (AND ANY APPELLATE COURTS TAKING APPEALS THEREFROM). EACH OF
PLEDGOR AND LENDER HEREBY WAIVES, TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW, AND AGREES NOT TO ASSERT, AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT,
(A) THAT IT IS NOT SUBJECT TO SUCH JURISDICTION OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN THOSE COURTS OR THAT THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS MAY NOT BE ENFORCED IN OR BY THOSE COURTS OR THAT IT IS EXEMPT OR IMMUNE FROM EXECUTION, (B) THAT THE ACTION, SUIT OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR (C) THAT
THE VENUE OF THE ACTION, SUIT OR PROCEEDING IS IMPROPER. IN THE EVENT ANY SUCH ACTION, SUIT, PROCEEDING OR LITIGATION IS COMMENCED, PLEDGOR AGREES THAT SERVICE OF PROCESS MAY BE MADE, AND PERSONAL
JURISDICTION OVER PLEDGOR OBTAINED, BY SERVICE OF A COPY OF THE SUMMONS, COMPLAINT AND OTHER PLEADINGS REQUIRED TO COMMENCE SUCH LITIGATION UPON PLEDGOR AT THE ADDRESS OF PLEDGOR AND TO THE ATTENTION
OF SUCH PERSON AS SET FORTH IN THIS SECTION 18.

        (k)   No
claim may be made by Pledgor against Lender, its affiliates and its respective directors, officers, employees, or attorneys for any special, indirect or consequential
damages ("Special Damages") in respect of any breach or wrongful conduct (whether the claim therefor is based on contract, tort or duty imposed by law),
but excluding gross negligence or willful misconduct by Lender, its Affiliates and its directors, officers, employees and attorneys, in connection with, arising out of, or in any way related to the
transactions contemplated or relationship established by this Agreement, or any act, omission or event occurring in connection herewith or therewith; and to the fullest extent not prohibited by law
Pledgor hereby waives, releases and agrees not to sue upon any such claim for Special Damages, whether or not accrued and whether or not known or suspected to exist in its favor. 

        (l)    Irrevocable Proxy.    Solely with respect to Article 8 Matters (as hereinafter defined), Pledgor hereby
irrevocably grants and appoints Lender, from the date of this Agreement until the termination of this Agreement in accordance with its terms, as Pledgor's true and lawful proxy, for and in Pledgor's
name, place and stead to vote the Pledged Securities, whether directly or indirectly, beneficially or of record, now owned or hereafter acquired, with respect to such Article 8 Matters. The
proxy granted and appointed in this Section 18(l) shall include the right to sign Pledgor's name (as the direct owner of Sixth Mezzanine
Borrower) to any consent, certificate or other document relating to an Article 8 Matter and the Pledged Securities that applicable law may permit or require, to cause the Pledged 

17

 

Securities
to be voted in accordance with the preceding sentence. Pledgor hereby represents and warrants that there are no other proxies and powers of attorney with respect to an Article 8
Matter that Pledgor may have granted or appointed. Pledgor will not give a subsequent proxy or power of attorney or enter into any other voting agreement with respect to the Pledged Securities with
respect to any Article 8 Matter and any attempt to do so with respect to an Article 8 Matter shall be void and of no effect. The proxies and powers granted by the Pledgor pursuant to
this Agreement are coupled with an interest and are given to secure the performance of the Pledgor's obligations. As used herein, "Article 8
Matter" means any action, decision, determination or election by Borrower or its member(s) or partner(s) that its membership interests, partnership interests or other equity
interests, or any of them, be, or cease to be, a "security" as defined in and governed by Article 8 of the Uniform Commercial Code, and all other matters related to any such action, decision,
determination or election. 

        (m)    Acknowledgment and Consent.    Pledgor shall cause Sixth Mezzanine Borrower to execute and deliver to Lender an
Acknowledgment and Consent with respect to this Agreement in the form of Exhibit A attached hereto in connection with the execution and delivery
of this Agreement. 

        (n)    Joint and Several Liability.    If Pledgor consists of more than one person or party, the obligations and
liabilities of each such person or party hereunder shall be joint and several. 

        (o)    Inconsistency.    In the event of any conflicts or inconsistencies between the terms and conditions hereof and
the terms and conditions of the Loan Agreement, the terms and conditions of the Loan Agreement shall govern. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

18

 

  
        IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized officers as of the date set forth
above. 

	 	 	PLEDGOR:
	

 	
 	
HCR VII PROPERTIES, LLC, a Delaware limited

    liability company
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	

 	
 	
LENDER:
	

 	
 	
JPMORGAN CHASE BANK, N.A., a banking

    association chartered under the laws of the United

    States of America
	

 	
 	

By:	
 	

 

	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 

19

  EXHIBIT A

 FORM OF ACKNOWLEDGMENT AND CONSENT  

        The undersigned (collectively, the "Issuer") hereby acknowledges receipt of a copy of that certain Pledge and
Security Agreement (Seventh Mezzanine Loan), dated as of the date hereof (as amended, supplemented, replaced, restated or otherwise modified from time to time, the "Pledge
Agreement"), and agrees that the Pledgor (as defined in the Pledge Agreement) is bound thereby. The Issuer agrees to notify Lender promptly in writing of the occurrence of any
of the events described in Section 5(a) of the Pledge Agreement. Capitalized terms used herein and not defined herein shall have the meanings given such terms in the Pledge Agreement, of even
date herewith, by and between Pledgor and JPMorgan Chase Bank, N.A., a banking association chartered under the laws of the United States of America, as Lender. 

        For
purposes of perfecting the security interest of Lender therein, the Issuer agrees as follows: 

        On
the date hereof, the registered owner of each entity making up Issuer is as reflected on Schedule 1 of the Pledge Agreement. 

        The
registered pledgee of the Pledged Securities is: 

JPMORGAN
CHASE BANK, N.A.,

its successors and assigns, as collateral agent for itself and the other Noteholders 

        There
are no liens of the Issuer on the Pledged Securities or any adverse claims thereto for which the Issuer has a duty under Section 8-403 of the Uniform Commercial
Code (the "Code"). The Issuer has by book-entry registered the Pledged Securities in the name of the registered pledgee on or prior to the
date hereof. No other pledge is currently registered on the books and records of the Issuer with respect to the Pledged Securities. 

        Until
the Debt is paid in full (exclusive of provisions which the Loan Documents expressly state shall survive satisfaction of the Note), Issuer agrees to: (i) comply with the
instructions of Lender, without any further consent from Pledgor or any other Person, in respect of the Pledged Securities; and
(ii) disregard any request made by Pledgor or any other person which contravenes the instructions of Lender with respect to the Pledged Securities. Notwithstanding anything in this
Acknowledgment and Consent to the contrary, this confirmation statement shall not be construed as expanding the rights of Lender to give instructions with respect to the Pledged Securities beyond such
rights set forth in the Pledge Agreement or permitted under any limited liability company agreement of the Issuer or the Loan Documents. 

	Dated: as of December 21, 2007	 	 	 	 	 	 
	

 	
 	

 	
 	
ISSUER:
	

 	
 	

 	
 	
HCR VI PROPERTIES, LLC, a Delaware limited liability company
	

 	
 	

 	
 	

By:	
 	

 

	 	 	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	Title:	 	 
	
AGREED TO AND ACKNOWLEDGED BY:	
 	

 	
 	

 	
 	

 
	
PLEDGOR:	
 	

 	
 	

 	
 	

 
	
HCR VII PROPERTIES, LLC,

a Delaware limited liability company	
 	

 	
 	

 	
 	

 
	

By:	
 	

 
	
 	

 	
 	

 	
 	

 
	Name:	 	 	 	 	 	 	 	 
	Title:	 	 	 	 	 	 	 	 

QuickLinks

Exhibit 10.33

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]