Document:

Ex. 10.2 Gnome-FacAgree

Exhibit 10.2
DATED 3 December 2014
GA HC REIT II CH U.K. SENIOR HOUSING PORTFOLIO LIMITED 
(as Original Borrower)
and
THE BORROWER AND CERTAIN OF ITS SUBSIDIARIES 
(as Original Guarantors)
and
NORTHSTAR REALTY HEALTHCARE LLC 
(as Indemnitor)
arranged by
CREDIT SUISSE SECURITIES (EUROPE) LIMITED  
(as Arranger)
with
ELAVON FINANCIAL SERVICES LIMITED  
acting as Agent
and
U.S. BANK TRUSTEES LIMITED  
acting as Security Agent

FACILITY AGREEMENT

    
	
			
	 
	 
	Page 

	DEFINITIONS AND INTERPRETATION
	 
	1

	THE FACILITY
	 
	43

	PURPOSE
	 
	47

	CONDITIONS TO SIGNING
	 
	47

	CONDITIONS TO UTILISATION
	 
	48

	UTILISATION
	 
	52

	REPAYMENT
	 
	52

	PREPAYMENT AND CANCELLATION
	 
	53

	INTEREST
	 
	59

	INTEREST PERIODS
	 
	62

	CHANGES TO THE CALCULATION OF INTEREST
	 
	63

	FEES
	 
	64

	TAX GROSS UP AND INDEMNITIES
	 
	65

	INCREASED COSTS
	 
	76

	OTHER INDEMNITIES
	 
	78

	MITIGATION BY THE LENDERS
	 
	80

	COSTS AND EXPENSES
	 
	81

	BANK ACCOUNTS
	 
	83

	GUARANTEE AND INDEMNITY
	 
	94

	REPRESENTATIONS
	 
	98

	INFORMATION UNDERTAKINGS
	 
	112

	FINANCIAL COVENANTS
	 
	116

	GENERAL UNDERTAKINGS
	 
	121

	PROPERTY UNDERTAKINGS
	 
	134

	EVENTS OF DEFAULT
	 
	148

	CHANGES TO THE LENDERS
	 
	153

	CHANGES TO THE TRANSACTION OBLIGORS
	 
	158

	DISENFRANCHISEMENT ON DEBT PURCHASE TRANSACTIONS ENTERED INTO BY SPONSOR AFFILIATES
	 
	162

	ROLE OF THE AGENT, THE SECURITY AGENT AND THE ARRANGER
	 
	163

	APPLICATION OF PROCEEDS
	 
	181

	CONDUCT OF BUSINESS BY THE FINANCE PARTIES
	 
	183

	SHARING AMONG THE FINANCE PARTIES
	 
	183

	PAYMENT MECHANICS
	 
	184

	SET-OFF
	 
	189

	NOTICES
	 
	189

	CALCULATIONS AND CERTIFICATES
	 
	191

	PARTIAL INVALIDITY
	 
	192

	REMEDIES AND WAIVERS
	 
	192

	AMENDMENTS AND WAIVERS
	 
	192

	CONFIDENTIALITY
	 
	196

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	COUNTERPARTS
	 
	201

	GOVERNING LAW
	 
	201

	ENFORCEMENT
	 
	201

	SCHEDULE 1 THE ORIGINAL PARTIES AND PROPERTIES
	 
	202

	SCHEDULE 2 CONDITIONS PRECEDENT
	 
	208

	SCHEDULE 3 APPROVED VALUERS
	 
	218

	SCHEDULE 4 UTILISATION REQUEST
	 
	219

	SCHEDULE 5 FORM OF TRANSFER CERTIFICATE
	 
	220

	SCHEDULE 6 FORM OF ASSIGNMENT AGREEMENT
	 
	222

	SCHEDULE 7 FORM OF ORIGINAL OBLIGOR ACCESSION DEED
	 
	225

	SCHEDULE 8 FORM OF ACCESSION DEED
	 
	226

	SCHEDULE 9 FORM OF RESIGNATION LETTER
	 
	227

	SCHEDULE 10 FORM OF COMPLIANCE CERTIFICATE
	 
	228

	SCHEDULE 11 FORMS OF NOTIFIABLE DEBT PURCHASE TRANSACTION NOTICE
	 
	229

	SCHEDULE 12 TIMETABLES
	 
	231

	SCHEDULE 13 EXCLUDED TRANSFEREES
	 
	231

	SCHEDULE 14 AGREED SECURITY PRINCIPLES
	 
	233

    
    
        
    
    
    
        

    
    
    
    
    
    
    
    
    
    
    
    
    

Page ii

Page iii

THIS AGREEMENT is dated 3 December 2014 and made between:
		
	(1)
	Upon its accession to this Agreement in accordance with Clause 5.6 (Accession of Original Obligors) GA HC REIT II CH U.K. SENIOR HOUSING PORTFOLIO LIMITED registered in England and Wales (registered number 04258255) (the Original Borrower);

		
	(2)
	Upon their accession to this Agreement in accordance with Clause 5.6 (Accession of Original Obligors) THE COMPANIES listed in Part A of Schedule 1 as guarantors (together with the Borrower, the Original Guarantors);

		
	(3)
	CREDIT SUISSE SECURITIES (EUROPE) LIMITED as arranger (the Arranger);

		
	(4)
	NORTHSTAR REALTY HEALTHCARE, LLC as indemnitor (the Indemnitor);

		
	(5)
	CREDIT SUISSE AG, LONDON BRANCH as lender (the Original Lender);

		
	(6)
	ELAVON FINANCIAL SERVICES LIMITED, a limited liability company registered in Ireland with the Companies Registration Office (registered number 418442), with its registered office at Block E, Cherrywood Business Park, Loughlinstown, Dublin, Ireland acting through its UK Branch (registered number BR009373) from its offices at 5th Floor, 125 Old Broad Street, London EC2N 1AR, United Kingdom as agent of the other Finance Parties (the Agent); and

		
	(7)
	U.S. BANK TRUSTEES LIMITED, a limited liability company incorporated under the laws of England and Wales and with registration number 02379632 with its office at 125 Old Broad Street, London, EC2N 1AR, United Kingdom as security agent for the Secured Parties (the Security Agent).

IT IS AGREED as follows:
		
	1.
	DEFINITIONS AND INTERPRETATION

		
	1.1
	Definitions

In this Agreement:
Above-Ground Storage Tank means any tank, including aboveground and underground piping connected to the tank, that is or has been used to contain Hazardous Materials or petroleum products and the combined volume of which is more than 10 per cent. above the surface of the ground.
Above-Ground Storage Tank Reserve means the sterling equivalent amount of US£3,750.00.
Acceptable Bank means a bank or financial institution which has a rating for its long term unsecured and non credit enhanced debt obligations of A or higher by S&P or Fitch or A3 or higher by Moody’s or a comparable rating; or any other bank or financial institution approved by the Agent.
Accession Deed means a document substantially in the form set out in Schedule 7 (Form of Accession Deed).

Page 1

Account means the General Account or a Controlled Account.
Actual Net Disposal Proceeds means the Net Disposal Proceeds received by an Obligor in respect of any disposal of a Property or the shares in a Subsidiary of an Obligor.
Additional Borrower means a company which becomes an Additional Borrower in accordance with Clause 27 (Changes to the Transaction Obligors).
Additional Guarantor means a company which becomes an Additional Guarantor in accordance with Clause 27 (Changes to the Transaction Obligors).
Additional Obligor means an Additional Borrower or an Additional Guarantor.
Additional Non-Recourse Carveout means any Closing Defect designated as such in accordance with sub-paragraph (c)(i) of Clause 5.3 (Special Reserves).
Affiliate means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company.
Agent's Spot Rate of Exchange means the Agent's spot rate of exchange for the purchase of the relevant currency with sterling in the London foreign exchange market at or about 11:00 a.m. on a particular day.
Agreed Security Principles means the principles set out in Schedule 14 (Agreed Security Principles).
Agreement for Lease means an agreement to grant an Occupational Lease for all or part of a Property including any variation, amendment or supplement to it disclosed in a Property Report or made in accordance with this Agreement.
Allocated Loan Amount means with respect to a Property, the amount set opposite that Property in ‎Part D, Part E or Part F (as applicable) of Schedule 1 (Properties).
Anti-Bribery Law means the US Foreign Corrupt Practices Act, the UK Bribery Act, Turkish Anti-Corruption  legislation and any legislation enacted pursuant to the OECD Convention Combating Bribery of Foreign Public Officials in International Business Transactions, in each case as amended from time to time.
Applicable Release Price Percentage means:
		
	(a)
	subject to paragraph (b) below, the percentage rate set out in the first column of the table below which corresponds to the range of amounts (expressed as percentages of the Original Facility Amount) set out in the second column of the table below into which the aggregate amount (if any) of the Original Facility Amount that has been prepaid from Net Disposal Proceeds under Clause 8.3‎ (Mandatory prepayment) up to and including the point at which any prepayment is made of an amount equal to the Net Disposal Proceeds of the relevant Property falls, provided that if any such prepayment would cause the percentage of the Original Facility Amount that has been prepaid to move into the next Range, only the portion of amount being prepaid which falls within next Range shall be subject to the Applicable Release Price Percentage applicable to that Range, 

Page 2

and the remainder of such prepayment amount shall be subject to the Applicable Release Price Percentage for the previous applicable Range:
	
		
	Percentage
	Range

	110
	Up to 25% of the Original Facility Amount

	115
	Greater than 25% of the Original Facility Amount but up to 50% of the Original Facility Amount

	120
	Greater than 50% of the Original Facility Amount

		
	(b)
	paragraph (a) shall not apply to the following Properties:

		
	(i)
	Galsworthy House, Kingston Hill, Kingston Upon Thames KT2 7LX;

		
	(ii)
	Abbeycrest Nursing Home, Essex Way, Kennylands Road, Sonning Common, Reading RG4 9RG;

		
	(iii)
	Cranmer Court, Farleigh Common, Warlingham CR6 9PE; and

		
	(iv)
	Deer Park View, Sandy Lane, Teddington,

in respect of which the Applicable Release Price Percentage shall be 120 per cent.
Assignation of Rent means a Scots law assignation of rent derived from a Property located in Scotland entered into or to be entered into by an Obligor in favour of the Security Agent in an agreed form.
Assignment Agreement means an agreement substantially in the form set out in Schedule 6 (Form of Assignment Agreement) or any other form agreed between the relevant assignor and assignee.
Assignment Deeds of Variation means:
		
	(a)
	deeds of variation to the alienation provisions of the Existing Leases in England and Scotland (and Tenant’s works provisions in the Existing Leases for the Properties known as Kingsclear and Oaken Holt) dated on or about the date hereof; and

		
	(b)
	deeds of variation to the alienation provisions of the Existing Lease in Jersey required to be delivered in accordance with Clause 23.23 (Conditions Subsequent).

Auditor means Deloitte LLP or any alternative auditor appointed by the Borrower.
Authorisation means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration.
Availability Period means the period from and including the date of this Agreement to and including the earlier of the date of Utilisation of the Facility and 30 January 2015 (or as extended in writing by the Agent acting on the instructions of all the Lenders).

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Available Commitment means a Lender’s Commitment minus:
		
	(a)
	the amount of its participation in any outstanding Loan; and

		
	(b)
	in relation to any proposed Utilisation, the amount of its participation in any Loan that is due to be made on or before the proposed Utilisation Date.

Available Facility means the aggregate for the time being of each Lender’s Available Commitment.
Basel III shall have the meaning given to that term in Clause 14.1 (Increased costs).
Basel Committee shall have the meaning given to that term in Clause 14.1 (Increased costs).
Billets means the billet to be signed and consented to by the relevant Obligor in a form approved by the Security Agent to be presented to the Judicial Greffier of the Royal Court of Jersey and thereafter registered in the Jersey Public Registry in the sum of £6,721,000 and pursuant to which registration the Security Agent shall have a first and sole judicial hypothec secured against each of the Jersey Properties.
Borrower means the Original Borrower and any Additional Borrower.
Borrower Insurance Broker’s Letter means a letter from the Borrower’s insurance brokers addressed to the Finance Parties, confirming that the insurance cover in force in respect of each Property (as arranged by or on behalf of the Borrower) complies with the terms of this Agreement and the necessary premia have been paid.
BOS Intercreditor means the intercreditor agreement between amongst others Griffin-American Healthcare REIT II, Inc. (to be merged into NRF Healthcare Subsidiary, LLC and subsequently converted into Healthcare GA Holdings, General Partnership, in each case on the Closing Date) and Bank of Scotland plc dated 11 September 2013.
Break Costs means the amount (if any) by which:
		
	(a)
	the interest (which, if such Break Costs are payable prior to any Securitisation, shall exclude any Margin or, if such Break Costs are payable following any Securitisation, shall include any Margin) which a Lender should have received for the period from the date of receipt of all or any part of its participation in a Loan or Unpaid Sum to the last day of the current Interest Period in respect of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest Period;

exceeds:
		
	(b)
	the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant Interbank Market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period.

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Budget means the Initial Budget and each annual budget prepared by the Borrower and delivered to the Agent pursuant to Clause 21.4 (Budget).
Business Day means a day (other than a Saturday or Sunday) on which banks are open for general business in London.
Business Transfer Agreement has the meaning given to that term in the Elder Care Co Guarantee.
Care Inspectorate means the Social Care and Social Work Improvement Scotland established under the Public Services Reform (Scotland) Act 2010 having its head office at Compass House, 11 Riverside Drive, Dundee, and/or any successor, transferee or other authority, organisation or body regulating health and social care in Scotland.
Cash Release Conditions means on a Test Date:
		
	(a)
	no Default is continuing; and

		
	(b)
	each of the Cash Trap Covenants is satisfied.

Cash Trap Account means the account designated as such under Clause  18.1 (Designation of Accounts) and includes any replacement of that Account.
Cash Trap Amount means, on any Test Date, the amount standing to the credit of the Cash Trap Account on that Test Date.
Cash Trap Covenants means, on any Test Date, where:
		
	(a)
	the DSCR is greater than or equal 1.79:1;

		
	(b)
	Loan to Value is less than or equal to 78 per cent.; and

		
	(c)
	the Rental Cover Ratio is greater than or equal to 1.08:1. 

CHHGL means Caring Homes Healthcare Group Limited, a private company incorporated in England and Wales with company registered number 06367517 (formerly named Myriad Healthcare Limited).  
Code means the US Internal Revenue Code of 1986.
Closing has the meaning given to that term in the Merger Agreement.
Closing Date means the date on which Closing occurs.
Closing Date Cap means an interest rate cap in respect of not less than 100 per cent. of the Original Facility Amount to be entered into in accordance with and which complies with the terms of Clause 9.3 (Hedging).
Closing Date Cap Agreement means an agreement documenting a Closing Date Cap.
Closing Defect has the meaning given to that term in Clause 5.3 (Special Reserves).
Closing Tax Structure Report means the tax structuring report prepared by Deloitte LLP dated 2 December 2014 setting out details of the Permitted Mezzanine 

Page 5

Reorganisation and the Proposed REIT Reorganisation and addressed to, or otherwise capable of being relied upon by the Finance Parties and delivered as a condition precedent document pursuant to Clause 4 (Conditions to signing).
Closing Valuation means the Valuation dated 27 November 2014 and delivered as a condition precedent document pursuant to Clause 4 (Conditions to signing).
Code means the US Internal Revenue Code of 1986.
Collection Account means the account designated as such under Clause 18.1 (Designation of Accounts) and includes any replacement of that Account.  
Commitment means:
		
	(a)
	in relation to an Original Lender, the amount set opposite its name under the heading “Commitment” in ‎Part B or Part C of ‎Schedule 1 (The Original Parties and Properties) and the amount of any other Commitment transferred to it under this Agreement; and

		
	(b)
	in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this Agreement.
Commitment Letter means the commitment letter dated 20 October 2014 between the Arranger and the Sponsor.
Compensation Prepayment Proceeds means the Net Proceeds of all compensation and damages for the compulsory purchase of, or any blight or disturbance affecting, any Property but excluding any Excluded Proceeds.
Compliance Certificate means a certificate substantially in the form set out in ‎Schedule 10 (Form of Compliance Certificate).
Confidential Information means all information relating to any Obligor, the Group, the Sponsor, the Indemnitor, the Finance Documents, the Facility or the Property of which a Finance Party becomes aware in its capacity as, or for the purpose of becoming, a Finance Party or which is received by a Finance Party in relation to, or for the purpose of becoming a Finance Party under, the Finance Documents or the Facility from either:
		
	(a)
	any member of the Group or any of its advisers; or

		
	(b)
	another Finance Party, if the information was obtained by that Finance Party directly or indirectly from any member of the Group or any of its advisers, in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that:

		
	(i)
	is or becomes public information other than as a direct or indirect result of any breach by that Finance Party of Clause 40 (Confidentiality); or

Page 6

		
	(ii)
	is identified in writing at the time of delivery as non-confidential by any member of the Group or any of its advisers; or

		
	(iii)
	is known by that Finance Party before the date the information is disclosed to it in accordance with paragraphs (a) or (b) above or is lawfully obtained by that Finance Party after that date, from a source which is, as far as that Finance Party is aware, unconnected with the Group and which, in either case, as far as that Finance Party is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality.

Confidentiality Undertaking means a confidentiality undertaking substantially in a recommended form of the LMA or in any other form agreed between the Borrower and the Agent.
Consensus means Consensus Support Services Limited, a company incorporated in England and Wales with company number 04081379.
Constitutional Documents means, in relation to each Transaction Obligor:
		
	(a)
	its memorandum and articles of association;

		
	(b)
	its certificate or deed of incorporation; and

		
	(c)
	any certificates of change of name,

or the equivalent documents for any Transaction Obligor incorporated or formed in a jurisdiction other than England and Wales.
Controlled Accounts means:
		
	(a)
	the Mandatory Prepayment Account;

		
	(b)
	the Cash Trap Account;

		
	(c)
	the Rental Income Account;

		
	(d)
	the Reserves Accounts;

		
	(e)
	the LTV Cure Account;

		
	(f)
	the Special Reserves Account; and

		
	(g)
	the DSCR Cure Account.

Costs means any VAT chargeable in respect of Rental Income.
CTA means the Corporation Tax Act 2009.
Cure Amount means, on any Test Date, the sum of the amounts standing to the credit of the LTV Cure Account and the amount standing to the credit of the DSCR Cure Account on that Test Date.

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Day 1 Hedging Requisite Rating means, the rating of long or short term (as appropriate) unsecured debt instruments in issue by a person (which are neither subordinated nor guaranteed) which meet the following requirements:
		
	(a)
	long term instruments with a rating of AA- (or better) by S&P; and

		
	(b)
	to the extent that that Hedge Counterparty:

		
	(i)
	has a long term instruments rating from Fitch, long term instruments with a rating of AA- (or better) by Fitch; or

		
	(ii)
	does not have a long term instruments rating from Fitch, long term instruments with a rating of Aa3 (or better) by Moody’s.

De Minimis Amount means an amount equal to 10 per cent. of the Original Facility Amount.
Debt Purchase Transaction means, in relation to a person, a transaction where such person:
		
	(a)
	purchases by way of assignment or transfer;

		
	(b)
	enters into any sub-participation in respect of; or

		
	(c)
	enters into any other agreement or arrangement having an economic effect substantially similar to a sub-participation in respect of,

any Commitment or amount outstanding under this Agreement.
Debt Yield means, on any Test Date or any other date contemplated under this Agreement, the ratio of:
		
	(a)
	LTM EBITDAR; to

		
	(b)
	the principal amount outstanding of the Facility on that Relevant Rental Quarter Date.

Default means an Event of Default or any event or circumstance specified in Clause 25 (Events of Default) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default.
Defaulting Lender means any Lender:
		
	(a)
	which has failed to make its participation in the Loan available (or has notified the Agent or the Original Borrower (which has notified the Agent) that it will not make its participation in a Loan available) by the Utilisation Date of that Loan in accordance with Clause 6.4 (Lenders' participation);

		
	(b)
	which has otherwise rescinded or repudiated a Finance Document; or

		
	(c)
	with respect to which an Insolvency Event has occurred and is continuing,

unless, in the case of paragraph (a) above;

Page 8

		
	(i)
	its failure to pay is caused by:

		
	(A)
	administrative or technical error; or 

		
	(B)
	a Disruption Event; and

payment is made within ten Business Days of its due date; or
		
	(ii)
	the Lender is disputing in good faith whether it is contractually obliged to make the payment in question. 

Defective Property Allocation means the value of the Allocated Loan Amounts attributable to Properties subject to Closing Defects.
Deferred Maintenance and Environmental Conditions Reserve means the amount of £859,358.17, being the amount equal to 125.00 per cent. of the cost of:
		
	(a)
	maintenance work required to be performed over the twelve months following Closing; and

		
	(b)
	work associated with compliance and environmental remediation costs.

in respect of a Property or Properties, as determined by reference to the Technical and Engineering Report and the Environmental Report prior to Closing and as required to be paid into the Reserves Account as a condition precedent pursuant to Clause 5.1 (Initial conditions precedent).
Delegate means any delegate, agent, attorney or co-trustee appointed by the Agent or the Security Agent.
Disposal Proceeds Shortfall Amount means, in respect of a proposed disposal by an Obligor of a Property or shares in a Subsidiary, any amount by which the Required Net Disposal Proceeds exceeds the Actual Net Disposal Proceeds.
Disruption Event means either or both of:
		
	(a)
	a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Facility (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or

		
	(b)
	the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing that, or any other Party:

		
	(i)
	from performing its payment obligations under the Finance Documents; or

		
	(ii)
	from communicating with other Parties in accordance with the terms of the Finance Documents,

Page 9

and which (in either such case) is not caused by, and is beyond the control of, the Party whose operations are disrupted.
Dormant Subsidiary means a member of the Group which does not trade (for itself or as agent for any other person) and does not own, legally or beneficially, assets (including indebtedness owed to it) that have an aggregate value of £100,000 or more (or its equivalent in another currency).
Dormant Subsidiary List means the list of Dormant Subsidiaries delivered to the Agent on or before the date of this Agreement.
DSCR has the meaning given to that term in Clause 22.1 (Definitions – Financial Covenants).
DSCR Cure Account means the account designated as such under Clause  18.1 (Designation of Accounts) and includes any replacement of that Account.
EBITDAR has the meaning given to that term in Clause 22.1 (Definitions – Financial Covenants).
Elder Care Co means Caring Home Healthcare Group Limited (formerly known as Myriad Healthcare Limited), a company incorporated in England and Wales with company number 6367517. 
Elder Care Co Debenture means the means the debenture charging the assets of Elder Care Co, and securing the obligations of Elder Care Co under the Elder Care Co Guarantee, dated 11 September 2013.
Elder Care Co Guarantee means the guarantee dated 11 September 2013 from Elder Care Co guaranteeing, among other obligations, the obligations of the Speciality Division under the Occupational Leases, Umbrella Agreement, Business Transfer Agreement and the SPA. 
Environment means humans, animals, plants and all other living organisms including the ecological systems of which they form part and the following media:
		
	(a)
	air (including, without limitation, air within natural or man-made structures, whether above or below ground);

		
	(b)
	water (including, without limitation, territorial, coastal and inland waters, water under or within land and water in drains and sewers); and

		
	(c)
	land (including, without limitation, land under water).

Environmental Claim means any claim, proceeding, formal notice or investigation by any person in respect of any Environmental Law.
Environmental Law means any applicable law or regulation in any Relevant Jurisdiction (excluding paragraph (d) of the definition thereof) which relates to:
		
	(a)
	the pollution or protection of the Environment;

		
	(b)
	the conditions of the workplace; or

Page 10

		
	(c)
	the generation, handling, storage, use, release or spillage of any substance which, alone or in combination with any other, is capable of causing harm to the Environment, including, without limitation, any waste.

Environmental Permits means any permit and other Authorisation and the filing of any notification, report or assessment required under any Environmental Law for the operation of the business of any  Obligor conducted on or from the properties owned or used by any Obligor.
Environmental Professional has the meaning given to that term in Clause 24.13(b) (Radon).
Environmental Report means the various environmental due diligence assessment reports prepared by EMG dated August to October 2014 addressed to or otherwise capable of being relied upon by the Finance Parties, the Agent and the Security Agent and any security trustee and/or note trustee in connection with a Securitisation of the Loan or part of the Loan and delivered as a condition precedent document pursuant to Clause 4 (Conditions to signing).
Escrow Account shall have the meaning given to it in the Escrow Agreement.
Escrow Agreement means the escrow agreement to be dated on or around the date of this Agreement between, among others, First American Title Insurance Company as escrow agent, NorthStar Realty Finance Corp., National Healthcare Income Inc., the Original Lender and the US Lenders (as defined therein).
Event of Default means any event or circumstance specified as such in Clause 25 (Events of Default).
Excluded Proceeds means any proceeds of an insurance claim, claim for compensation or damages or Recovery Claim which the Borrower notifies the Agent are, or are to be, applied:
		
	(a)
	to satisfy (or reimburse an Obligor which has discharged) any liability, charge or claim upon an Obligor by a person which is not an Obligor or an Affiliate of an Obligor; or

		
	(b)
	in the replacement, reinstatement and/or repair of, or rectification of any defect in, any assets of an Obligor which have been lost, destroyed or damaged,

in each case as a result of the events or circumstances giving rise to that claim, if those proceeds are so applied as soon as reasonably practicable (but in any event within 90 days, or such longer period as the Majority Lenders may agree) after receipt.
Excluded Transferee means those entities set out in Schedule 13 (Excluded Transferees).
Existing Lease means each lease and underlease granted by an Obligor (as landlord or sub-landlord, as applicable) in respect of the Properties listed in Part D, Part E or Part F of Schedule 1, in each case as disclosed in the Property Reports and including the Umbrella Agreement (as applicable to such lease or underlease) and any variation, 

Page 11

amendment or supplement to such lease or underlease disclosed in the Property Reports or made in accordance with this Agreement.
Existing Tenant means the tenant of an Existing Lease.
Existing Use means the use to which a Property is put as at the date of this agreement.
Extension means an extension of the tenor of the Loan made pursuant to the First Term Extension Option or the Second Term Extension Option.
Extension Cap means an interest rate cap in respect of the Loan then outstanding under which the Borrower's effective interest rate exposure is capped at a level of no greater than 2.5 per cent per annum, for a period of one year commencing on:
		
	(a)
	the date immediately following the original Termination Date in respect of the First Term Extension; and/or

		
	(b)
	the date immediately following the Termination Date as extended by the First Term Extension in respect of the Second Term Extension.

Extension Cap Agreement means the agreement documenting an Extension Cap. 
Extension Fee means 0.25 per cent. of the Loan then outstanding as calculated on the original Termination Date in respect of the First Term Extension or on the Termination Date as extended by the First Term Extension in respect of the Second Term Extension.
Facility means the term loan facility made available under this Agreement as described in Clause 2.1 (The Facility).
Facility Office means the office or offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five Business Days’ written notice) as the office or offices through which it will perform its obligations under this Agreement.
FATCA means:
		
	(a)
	sections 1471 to 1474 of the Code or any associated regulations;

		
	(b)
	any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the US and any other jurisdiction, which (in either case) facilitates the implementation of any law or regulation referred to in paragraph (a) above; or

		
	(c)
	any agreement pursuant to the implementation of any treaty, law or regulation referred to in paragraphs (a) or (b) above with the US Internal Revenue Service, the US government or any governmental or taxation authority in any other jurisdiction.

FATCA Application Date means:
		
	(a)
	in relation to a “withholdable payment” described in section 1473(1)(A)(i) of the Code (which relates to payments of interest and certain other payments from sources within the US), 1 July 2014;

Page 12

		
	(b)
	in relation to a “withholdable payment” described in section 1473(1)(A)(ii) of the Code (which relates to “gross proceeds” from the disposition of property of a type that can produce interest from sources within the US), 1 January 2017; or

		
	(c)
	in relation to a “passthru payment” described in section 1471(d)(7) of the Code not falling within paragraphs (a) or (b) above, 1 January 2017,

or, in each case, such other date from which such payment may become subject to a deduction or withholding required by FATCA as a result of any change in FATCA after the date of this Agreement.
FATCA Deduction means a deduction or withholding from a payment under a Finance Document required by FATCA.
FATCA Exempt Party means a Party that is entitled to receive payments free from any FATCA Deduction.
Fee Letter means any letter or letters dated on or about the date of this Agreement between any of the Arranger, the Agent or the Security Agent and the Borrower setting out any of the fees referred to in Clause 12 (Fees).
Final REIT Tax Structure Report means a tax structuring report prepared by Deloitte LLP, setting out the steps comprised in the Permitted REIT Reorganisation in sufficient detail as to be capable of implementation and containing a full analysis of the steps based on factual assumptions (verified by the Obligors), capable of being relied upon by the Finance Parties on such terms as are agreed between Deloitte and the Agent (acting on the instructions of the Majority Lenders acting reasonably), and for the avoidance of doubt it is hereby acknowledged that a cap on liability for negligence in respect of the Final REIT Tax Structure Report will not be reasonable unless it is greater than the cap on liability for negligence under the Closing Tax Structure Report.
Finance Document means this Agreement, any Security Document, the Scottish Priority Deed, any Fee Letter, any Subordination Agreement, the Mezzanine Flex Letter, the Indemnitor Guarantee, the Report Proceeds Side Letter, any Resignation Letter or any other document designated as such by the Agent and the Borrower.
Finance Party means the Agent, the Security Agent, the Arranger or a Lender.
Financial Indebtedness means any indebtedness for or in respect of:
		
	(a)
	moneys borrowed;

		
	(b)
	any amount raised by acceptance under any acceptance credit facility or dematerialised equivalent;

		
	(c)
	any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;

		
	(d)
	the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with GAAP, be treated as a finance or capital lease;

Page 13

		
	(e)
	receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis);

		
	(f)
	any amount raised under any other transaction (including any forward sale or purchase agreement) of a type not referred to in any other paragraph of this definition having the commercial effect of a borrowing;

		
	(g)
	any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value (or, if any actual amount is due as a result of the termination or close-out of that derivative transaction, that amount) shall be taken into account);

		
	(h)
	any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution; and

		
	(i)
	(without double-counting) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (h) above.

First Term Extension means the exercise of the First Term Extension Option in accordance with Clause 7.3 (Extension option).
GAAP means UK GAAP or US GAAP.
General Account means the account designated as such under Clause 18.1 (Designation of Accounts) and includes any replacement of that Account.
Glentworth means Glentworth House Limited, a company incorporated in England and Wales with company number 5075900.
Governmental Authority means any governmental or quasi-governmental authority, including any nation, state, local, territorial, county, municipal or other agency, board, authority, bureau, commission, court, department or other instrumentality or political unit or subdivision, or any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, whether domestic or foreign or any self-regulatory or governing body or organisation.
Group means the Borrower and its Subsidiaries for the time being.
Group Structure Chart  means the structure chart setting out the ownership of each Obligor and each Property (assuming that the Closing Date and Utilisation has occurred) delivered in accordance with Clause 5.1 (Initial conditions precedent).
Guarantor means an Original Guarantor or an Additional Guarantor.
Hazardous Materials means, regardless of amount or quantity:
		
	(a)
	any element, compound or chemical that is defined, listed or otherwise classified as a contaminant, pollutant, toxic pollutant, toxic or hazardous substance, extremely hazardous substance or chemical, hazardous waste, special waste, or solid waste under Environmental Laws or that is likely to cause harm to or have 

Page 14

an adverse effect on, the environment or risk to human health or safety, including, without limitation, any pollutant, contaminant, waste, hazardous waste, toxic substance or dangerous good which is defined or identified in any Environmental Law and which is present in the environment in such quantity or state that it contravenes any Environmental Law;
		
	(b)
	petroleum and its refined products;

		
	(c)
	polychlorinated biphenyls;

		
	(d)
	any substance exhibiting a hazardous waste characteristic, including, without limitation, corrosivity, ignitability, toxicity or reactivity as well as any radioactive or explosive materials;

		
	(e)
	any raw materials, building components (including, without limitation, asbestos-containing materials) and manufactured products containing hazardous substances listed or classified as such under Environmental Laws; and

		
	(f)
	any substance or materials that are otherwise regulated under Environmental Law.

Headlease means a lease under which an Obligor holds title to any part of a Property.
Healthcare Licence means any or all licences, permits, qualifications, certifications and other authorisations granted by any Healthcare Regulatory Agency relating to or affecting:
		
	(a)
	the operation, maintenance, management, use or regulation of any Property for the purpose of the provision of healthcare services;

		
	(b)
	the provision of healthcare services on such Property; and/or

		
	(c)
	the reimbursement of healthcare costs relating to such Property.

Healthcare Requirements means:
		
	(a)
	all requirements of each Healthcare Regulatory Agency relating to the provision of healthcare services on the Property;

		
	(b)
	any requirement on a Tenant to obtain and maintain a Healthcare Licence; and

		
	(c)
	all requirements which are set out in clauses 15.3 and 17 of the Existing Leases.

Healthcare Regulatory Agency means the Care Quality Commission, the Care Inspectorate or any and all replacement agencies, boards, authorities, bodies and any Governmental Authority which:
		
	(a)
	grants, issues or regulates any Healthcare Licences; or

		
	(b)
	has jurisdiction over:

		
	(i)
	the ownership, operation, maintenance, management, use or regulation of such Property for the purpose of the provision of healthcare services;

Page 15

		
	(ii)
	the provision of healthcare services on such Property; and/or

		
	(iii)
	the reimbursement of healthcare costs relating to such Property.

Hedge Counterparty means any counterparty to a Closing Date Cap or Extension Cap with an Obligor.
Hedging Reserve means an amount not less than £850,000.00 required to be paid into the Reserves Account as a condition precedent pursuant to Clause 5.1 (Initial conditions precedent).
Historical Documents means the following documents:
		
	(a)
	the BOS Intercreditor;

		
	(b)
	a reorganisation and transfer agreement dated 6 July 2013 entered into between the Borrower and CHHGL for the sale of the business and assets of the Borrower to CHHGL;

		
	(c)
	a reorganisation and transfer agreement dated 6 July 2013 entered into between Jerseyco and  CHHGL for the sale of the business and assets of Jerseyco to CHHGL;

		
	(d)
	a reorganisation and transfer agreement dated 6 July 2013 entered into between GA HC REIT II U.K. Walstead Ltd and CHHGL for the sale of the business and assets of GA HC REIT II CH U.K. Walstead to CHHGL;

		
	(e)
	a sale and purchase agreement dated 6 July 2013 entered into between the Borrower and Non-Core Bidco 1 Limited (company number 08583911) in relation to the sale and purchase of the entire issued share capital of Necton (Norfolk) Limited;

		
	(f)
	a sale and purchase agreement dated 6 July 2013 entered into between the Borrower and Non-Core Bidco 2 Limited (company number 08583920) in relation to the sale and purchase of the entire issued share capital of Kyrano (Thunderbird) Limited (company number 08574530);

		
	(g)
	a sale and purchase agreement dated 6 July 2013 entered into between the Borrower and Non-Core Bidco 3 Limited (company number 08583958) in relation to the sale and purchase of the entire issued share capital of Consensus (2013) Limited (company number 08574447);

		
	(h)
	a property sale agreement dated 6 July 2013 entered into between the Borrower and Home of Compassion (Thames Ditton) Limited (company number 08574549) for transfer by the Borrower of property known as Home of Compassion; and

		
	(i)
	a property sale agreement dated 6 July 2013 entered into between the Borrower and Southlands Court (Bexhill) Limited (company number 08574521) for transfer by the Borrower of property known as Southlands (Bexhill).  

Page 16

HMRC REIT Clearance means a non-statutory business clearance obtained from HMRC confirming the treatment of the Permitted REIT Reorganisation under the UK REIT Regime (including the matters set out in paragraph 5.1.2 of the Closing Tax Structure Report).
Holdco means GA HC REIT II UK SH Acquisition Limited, a limited liability company incorporated in England and Wales with registered number 08573184.
Holding Company means, in relation to person (A), any other person in respect of which (A) is a Subsidiary.
IFRS means international financial reporting standards within the meaning of the IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements.
Impaired Agent means the Agent at any time when:
		
	(a)
	it has failed to make (or has notified a Party that it will not make) a payment required to be made by it under the Finance Documents by the due date for payment; 

		
	(b)
	the Agent otherwise rescinds or repudiates a Finance Document;

		
	(c)
	(if the Agent is also a Lender) it is a Defaulting Lender under paragraph (a) or (b) of the definition of "Defaulting Lender"; or 

		
	(d)
	an Insolvency Event has occurred and is continuing with respect to the Agent; 

unless, in the case of paragraph (a) above: 
		
	(i)
	its failure to pay is caused by:

		
	(A)
	administrative or technical error; or 

		
	(B)
	a Disruption Event; and 

payment is made within ten Business Days of its due date; or 
		
	(ii)
	the Agent is disputing in good faith whether it is contractually obliged to make the payment in question. 

Indemnitor means NorthStar Realty Healthcare, LLC.
Indemnitor Guarantee means the guarantee dated on or about the date of this Agreement between the Indemnitor and the Agent.
Initial Accession means the accession of the Original Obligors to this Agreement in accordance with Clause 5.6 (Accession of Original Obligors).
Initial Budget means the Budget prepared by the Borrower in agreed form on or before the date of this Agreement delivered to the Agent as a condition precedent pursuant to Clause 5.1 (Initial conditions precedent).
Insolvency Event in relation to a Finance Party means that the Finance Party:

Page 17

		
	(a)
	is dissolved (other than pursuant to a consolidation, amalgamation or merger); 

		
	(b)
	becomes insolvent or is unable to pay its debts or fails or admits in writing its inability generally to pay its debts as they become due;

		
	(c)
	makes a general assignment, arrangement or composition with or for the benefit of its creditors; 

		
	(d)
	institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organisation or the jurisdiction of its home or head office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official; 

		
	(e)
	has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition is instituted or presented by a person or entity not described in paragraph (d) above; and 

		
	(i)
	results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation;

		
	(ii)
	is not dismissed, discharged, stayed or restrained in each case within 30 days of the institution or presentation thereof;

		
	(f)
	has a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger);

		
	(g)
	seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all substantially all its assets (other than, for so long as it is required by law or regulation not to be publicly disclosed, any such appointment which is to be made, or is made, by a person or entity described in paragraph (d) above);

		
	(h)
	has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintain possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within 30 days thereafter;

		
	(i)
	causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in paragraphs (a) to (h) above; or 

		
	(j)
	takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts.

Page 18

Insurance Prepayment Proceeds means any Net Proceeds of Insurances required to be paid into the Mandatory Prepayment Account in accordance with paragraph (i) of Clause 24.10 (Insurances) but excluding any Excluded Proceeds.
Insurance Report means the due diligence review of the difference in condition and/or difference in limits insurance dated 26 November 2014 prepared by Harbor addressed to the Finance Parties, the Agent and the Security Agent and capable of being relied upon by the Finance Parties, the Agent and the Security Agent and any security trustee and/or note trustee in connection with a Securitisation of the Loan or part of the Loan and delivered as a condition precedent document pursuant to Clause 4 (Conditions to signing).
Insurances means any contract of insurance under Clause 24.10 (Insurances). 
Interest Payment Date means 20 January, 20 April, 20 July and 20 October in each year and the Termination Date, with the first Interest Payment Date being 20 January 2015.  If, however, any such day is not a Business Day, the Interest Payment Date will instead be the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).
Interest Period means, in relation to a Loan, each period determined in accordance with Clause 10 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 9.4 (Default interest).
Interpolated Screen Rate means, in relation to LIBOR for any Loan, the rate (rounded to the same number of decimal places as the two relevant Screen Rates) which results from interpolating on a linear basis between:
		
	(a)
	the applicable Screen Rate for the longest period (for which that Screen Rate is available) which is less than the Interest Period of that Loan; and

		
	(b)
	the applicable Screen Rate for the shortest period (for which that Screen Rate is available) which exceeds the Interest Period of that Loan,

each as of the Specified Time on the Quotation Day for the currency of that Loan.
ITA means the Income Tax Act 2007.
Jerseyco means GA HC REIT II CH U.K. L'Hermitage Ltd a company incorporated in Jersey with registered number 75107.
Jersey Public Registry means the public registry of the Royal Court of Jersey.
Jersey Property means a property set out in Part F of Schedule 1 (The Original Parties and Properties) and, where the context so requires, includes the buildings on that Jersey Property and Jersey Properties means any number of them.
Joint Venture means any joint venture entity, whether a company, unincorporated firm, undertaking, association, joint venture or partnership or any other entity.

Page 19

Landlord Discretions means any rights (whether explicit or not) which entitle an Obligor in its capacity as a landlord or otherwise under the Umbrella Agreement to exercise its discretion in connection with:
		
	(a)
	giving consent to variations to the form of the Master Lease;

		
	(b)
	other than expressly set out in clause 3.1.2(b) (Master Lease) of the original form of the Umbrella Agreement, giving consent to any adjustments to the terms of any Lease Document (including any adjustment to the rent payable under such Lease Document);

		
	(c)
	entering into an Umbrella Agreement Landlord Discretionary Acquisition;

		
	(d)
	exercising its rights under clause 3.3 (Cross Default) of the original form of the Umbrella Agreement in respect of or in a manner which affects or which might affect any of the Existing Leases;

		
	(e)
	entering into an Umbrella Agreement Landlord Discretionary Disposal;

		
	(f)
	exercising its rights under clause 4 of the Umbrella Agreement;

		
	(g)
	giving consent to any change of control of any Tenant in accordance with clause 3.5.6 of the original form of the Umbrella Agreement; or

		
	(h)
	doing or omitting to do any act or thing or giving or withholding any approval or consent or otherwise permitting any matter relating to any Property except where to do so would be immaterial in its effect.

Lease Document means:
		
	(a)
	an Agreement for Lease;

		
	(b)
	an Occupational Lease; 

		
	(c)
	the Umbrella Agreement; or 

		
	(d)
	any other document designated as such by the Agent and the Borrower.

Lease Prepayment Proceeds means the Net Proceeds of any premium or other amount paid to an Obligor in respect of any agreement to amend, supplement, extend, waive, surrender or release a Lease Document.
Legal Reservations means:
		
	(a)
	the principle that equitable remedies may be granted or refused at the discretion of a court and the limitation of enforcement by laws relating to insolvency, reorganisation and other laws generally affecting the rights of creditors;

		
	(b)
	the time barring of claims under the Limitation Acts, the possibility that an undertaking to assume liability for or indemnify a person against non-payment of stamp duty may be void and defences of set-off or counterclaim;

		
	(c)
	the limitation of the enforcement of the terms of leases of real property by laws of general application to those leases;

Page 20

		
	(d)
	similar principles, rights and remedies under the laws of any Relevant Jurisdiction; and

		
	(e)
	any other matters which are set out as qualifications or reservations as to matters of law of general application in any legal opinions supplied to the Agent as a condition precedent under this Agreement on or before the Utilisation Date.

Lender means:
		
	(a)
	any Original Lender; and

		
	(b)
	any other person which has become a Lender in accordance with Clause 26 (Changes to the Lenders),

which in each case has not ceased to be a Party in accordance with the terms of this Agreement.
LIBOR means, in relation to any Loan or Unpaid Sum on which interest for a given period is to accrue:
		
	(a)
	the applicable Screen Rate;

		
	(b)
	(if no Screen Rate is available for the Interest Period of that Loan) the Interpolated Screen Rate for that Loan; or

		
	(c)
	if:

		
	(i)
	no Screen Rate is available for sterling; or

		
	(ii)
	no Screen Rate is available for the Interest Period of that Loan or Unpaid Sum and it is not possible to calculate an Interpolated Screen Rate for that Loan or Unpaid Sum,

the Reference Bank Rate, as of, in the case of paragraphs (a) and (c) above, the Specified Time on the Quotation Day for sterling and for a period equal in length to the Interest Period of that Loan or Unpaid Sum and, if any such rate is below zero, LIBOR will be deemed to be zero.
Limitation Acts means the Limitation Act 1980, and the Foreign Limitation Periods Act 1984 and the Prescription and Limitation (Scotland) Act 1973.
Loan means a loan made or to be made under the Facility or the principal amount outstanding for the time being of that loan.
Loan to Value has the meaning given to that term in Clause 22.1 (Definitions- Financial Covenants).
LMA means the Loan Market Association.
LTV Cure Account means the account designated as such under Clause  18.1 (Designation of Accounts) and includes any replacement of that Account.

Page 21

Luxembourg Tax Clearances means an ATA and APA (as those terms are defined in the Closing Tax Structure Report), confirming the matters described at paragraphs 4.3.20, 4.3.21 and 8.2.8 of the Closing Tax Structure Report.
Lux Holdco, Lux Midco, Lux Mezzco and LuxPropco shall each have the meaning given to them in the Closing Tax Structure Report.
Majority Lenders means a Lender or Lenders whose Commitments aggregate more than 662⁄3% of the Total Commitments or, if the Total Commitments have been reduced to zero, aggregated more than 662⁄3% of the Total Commitments immediately prior to the reduction.
Mandatory Prepayment Account means the account designated as such under Clause  18.1 (Designation of Accounts) and includes any replacement of that Account.
Managing Agent means a managing agent appointed by an Obligor in respect of a Property in accordance with Clause 24.9 (Managing Agents).
Margin means 4.25 per cent. per annum.
Master Lease shall have the meaning given to such term in the Umbrella Agreement.
Material Adverse Effect means a material adverse effect on:
		
	(a)
	the consolidated business, assets or financial condition of the Obligors;

		
	(b)
	the ability of the Obligors to perform their payment obligations under any of the Finance Documents and/or their obligations under Clause 22 (Financial Covenants) of this Agreement; or

		
	(c)
	subject to the Legal Reservations, the validity or enforceability of any of the Finance Documents or any Security granted or purported to be granted pursuant to any of the Finance Documents. 

Mergers means the business combination through mergers of certain Subsidiaries of North Star Realty Finance Corp. and of Griffin-American Healthcare REIT II, Inc. and Griffin-American Healthcare REIT II Holdings L.P.
Merger Agreement means the agreement and plan of merger dated 5 August 2014 between NorthStar Realty Finance Corp., NRF Healthcare Subsidiary LLC, NRF OP Healthcare Subsidiary LLC, Griffin-American Healthcare REIT II Holdings LP and Griffin-American Healthcare REIT II Inc.
Mezzanine Flex Letter means the letter dated on or about the date of this Agreement between the Arranger and the Sponsor setting out the terms on which the Arranger may require the Borrower to split the Facility in a senior facility and a mezzanine facility and certain matters consequential thereon.  
Month means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

Page 22

		
	(a)
	(subject to paragraph (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day; and

		
	(b)
	if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and

		
	(c)
	if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end.

The above rules will only apply to the last Month of any period.
Net Disposal Proceeds means, in respect of a disposal of a Property or the shares in a Subsidiary permitted under Clause 23.5 (Disposals), the aggregate of the amount of the consideration received by the relevant Obligor from such disposal after deducting:
		
	(a)
	all reasonable costs and expenses properly incurred by the relevant Obligor in connection with such disposal; and

		
	(b)
	Tax (including VAT) incurred or required to be paid in connection with such disposal (as certified by that Obligor and, following a request from the Agent (acting reasonably), on the basis of advice provided to that Obligor by a reputable third party tax adviser and on the basis of existing rates and taking into account (where commercially practicable to do so) any available credit, deduction or allowance).

Net Proceeds means, in respect of the proceeds of any amount paid in respect of a Lease Document or the proceeds of an insurance claim or a claim for compensation or damages, the amount of the relevant proceeds received by the relevant Obligor in respect of such Lease Document or from such insurance claim or claim for compensation or damages after deducting:
		
	(a)
	all reasonable costs and expenses properly incurred by the relevant Obligor in connection with such Lease Document, insurance claim or claim for compensation or damages; and

		
	(b)
	all Taxes (including VAT but excluding income taxes) incurred or required to be paid in connection with such Lease Document, insurance claim or claim for compensation or damages (as certified by that Obligor on the basis of existing rates and taking into account (where commercially practicable to do so) any available credit, deduction or allowance).

Net Rental Income has the meaning given to it in Clause 22.1 (Definitions- Financial Covenants). 
New Lender has the meaning given to that term in Clause 26 (Changes to the Lenders).
Obligor means the Borrower or a Guarantor.

Page 23

Occupational Lease means any lease or licence or other right of occupation or right to receive rent to which a Property may at any time be subject and includes the Existing Leases and any guarantee of a tenant’s obligations under the same including as arising under any Third Party Credit Support.
OFAC means The Office of Foreign Assets Control of the US Department of the Treasury.
Official means any official, employee or representative of, or any other person acting in an official capacity for or on behalf of, any (i) national, federal, state, provincial or local government, including any entity owned or controlled thereby, (ii) political party, party official or political candidate, or (iii) public international organisation.
Ongoing Maintenance Reserve means a sum of £96.25 per quarter per annum for each bed in each Property as identified in the most recent Valuation.
Original Facility Amount means the aggregate principal amount of the Loan utilised pursuant to the Utilisation Request. 
Original Financial Statements means, in relation to each Original Obligor, its audited financial statements for its financial year ended 31 December 2013.
Original Obligor Accession Deed means a document substantially in the form set out in Schedule 7 (Form of Original Obligor Accession Deed).
Original Obligor Board Minutes means the resolutions of the board of directors of an Original Obligor provided to the Agent in accordance with paragraph (a) of Clause 5.1 (Initial Conditions Precedent).
Original Obligors means the Original Borrower and the Original Guarantors.
Overview Report means the report prepared by Lenders’ counsel dated 1 December 2014 in relation to the Property Reports addressed to the Finance Parties, the Agent and the Security Agent and capable of being relied upon by the Finance Parties, the Agent and the Security Agent and any security trustee and/or note trustee in connection with a Securitisation of the Loan or part of the Loan and delivered as a condition precedent document pursuant to Clause 4 (Conditions to signing).
Participating Member State means any member state of the European Union that has the euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.
Party means a party to this Agreement.
Permitted Developments means the Proposed Developments if and to the extent that the Agent has provided its prior written consent to such Proposed Developments in accordance with Clause 24.5(a) (Development).
Permitted Equity Injection means a contribution in cash from a Shareholder of the Borrower (or an Affiliate of a Shareholder of the Borrower) in the form of Subordinated Debt or equity.

Page 24

Permitted Mezzanine Reorganisation means the splitting of the Facility into a senior facility and a mezzanine facility and certain matters consequential thereon as set out in the Mezzanine Flex Letter.  
Permitted Payment means a payment (however structured) by an Obligor to a Shareholder, a Subordinated Creditor or any Affiliate of any Subordinated Creditor or Shareholder:
		
	(a)
	out of moneys standing to the credit of the General Account in circumstances where no Event of Default is continuing and no Event of Default would result from the payment;

		
	(b)
	to the extent expressly contemplated to be made on the Closing Date by the Closing Tax Structure Report; or

		
	(c)
	to enable or facilitate the payments referred to in paragraphs (a) or (b) above.

Permitted REIT Reorganisation means either the Proposed REIT Reorganisation or an alternative reorganisation of the Group (and its Holding Companies) comprising steps which are not materially different to those comprised in the Proposed REIT Reorganisation, in each case as more particularly set out in the Final REIT Tax Structure Report and which is permitted to be made in accordance with Clause 2.5 (Permitted Reorganisations).
Permitted Reorganisation means a Permitted Mezzanine Reorganisation or a Permitted REIT Reorganisation.
Permitted Security has the meaning given to such term in Clause 23.3(c) (Negative pledge).  
Property means a property listed in Part D, Part E or Part F of ‎Schedule 1 (The Original Parties and Properties) as described in a Security Document and, where the context so requires, includes the buildings on that Property but:
		
	(a)
	shall exclude any property that has been (i) disposed of in accordance with the provisions of this Agreement, or (ii) removed from the financing provided under this Agreement as a result of the Borrower having made any election under paragraph (e) of Clause 5.3 (Special Reserves); and

		
	(b)
	shall include any property that has been acquired by an Obligor in accordance with Clause 23.11 (Acquisitions).

Property Report means, in respect of each Property, a certificate of title (or equivalent in respect of non-English Properties) prepared by Irwin Mitchell, Brodies or Ogier (including a review of the Occupational Leases, Umbrella Agreement and any related guarantees to the extent agreed to be provided by the provider of such certificate) addressed to the Finance Parties, the Agent and the Security Agent and capable of being relied upon by the Finance Parties, the Agent and the Security Agent and any security trustee and/or note trustee in connection with a Securitisation of the Loan or part of the Loan and delivered as a condition precedent document pursuant to Clause 4 (Conditions to signing).

Page 25

Property Strategic Capital Expenditure has the meaning given to it in the Umbrella Agreement. 
Property Transfers means the transfer of the Properties by the Borrower and GA HC REIT II CH UK Walstead Ltd as described at paragraph 7.1.2 of the Closing Structure Tax Report.
Proposed Developments means:
		
	(a)
	the proposed demolition and rebuilding of Kingsclear Nursing Home, Park Road, Camberley, GU15 2LN (Kingsclear); and

		
	(b)
	the proposed construction of a new 40 bed dementia care unit at Oaken Holt Home, Eynsham Road, Farmoor, Oxford, OX2 9NL (Oaken Holt).

Proposed REIT Reorganisation means a reorganisation of the Group (and its Holding Companies) comprising the steps set out in sections 5 to 8 (inclusive) of the Closing Tax Structure Report
QC's Opinion means an opinion from a Queen’s Counsel specialising in UK tax law of at least ten years’ call (selected by the Sponsor from a list of three such Queen’s Counsel having experience in UK REITs provided by the Agent, acting on the instructions of the Majority Lenders), confirming (i) that the tax analysis contained in the Final REIT Tax Structure Report is materially correct and (ii) that the HMRC REIT Clearance and Stamp Office Clearance may be relied upon.
Qualifying Lender has the meaning given to it in Clause 13 (Tax gross up and indemnities).
Quarterly Report has the meaning given to that term in Clause 21.5 (Monitoring of Properties).
Quasi-Security has the meaning given to that term in Clause 23.3 (Negative pledge).
Quotation Day means, in relation to any period for which an interest rate is to be determined, the first day of that period unless market practice differs in the Relevant Interbank Market in which case the Quotation Day will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).
Radon Mitigation System has the meaning given to that term in Clause 24.13(b) (Radon).
Radon Reserve Relevant Amount means the sterling equivalent amount of:
		
	(a)
	in respect of the Magna Care Center Property, the sterling equivalent amount of US£62,500.00;

		
	(b)
	in respect of the Rectory House Care Home Property, the sterling equivalent amount of US£56,250.00

Page 26

		
	(c)
	in respect of the Claydon House Nursing Home Property, the sterling equivalent amount of US£62,500.00;

		
	(d)
	in respect of the Sunridge Court Care Home Property, the sterling equivalent amount of US£37,500.00;

		
	(e)
	in respect of the St. George Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(f)
	in respect of the Cramer Court Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(g)
	in respect of the Hillview Court Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(h)
	in respect of the Marchglen Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(i)
	in respect of the Beechwood Park Nursing Home Property, the sterling equivalent amount of US£62,500.00;

		
	(j)
	in respect of the Mill House Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(k)
	in respect of the Hulcott Nursing Home Property, the sterling equivalent amount of US£56,250.00;

		
	(l)
	in respect of the L'Hermitage Care Home Property, the sterling equivalent amount of US£56,250.00;

		
	(m)
	in respect of the Beaumont Villas Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(n)
	in respect of the Scoonie Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(o)
	in respect of the Tall Tree Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(p)
	in respect of the Abbeycrest Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(q)
	in respect of the Huntercombe Hall Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(r)
	in respect of the Coppice Lea Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(s)
	in respect of the Ferfoot Care Home Property, the sterling equivalent amount of US£62,500.00;

		
	(t)
	in respect of the Miranda House Care Home Property, the sterling equivalent amount of £62,500.00; and

Page 27

		
	(u)
	in respect of the Denham Manor Care Home Property, the sterling equivalent amount of £56,250.00.

Radon Reserve means the sterling equivalent amount of US£1,262,500.
Radon Sampling means the long-term radon sampling being conducted by EMG at each Property referred to in the definition of Radon Reserve Relevant Amount.
Receiver means a receiver or receiver and manager or administrative receiver (or equivalent officer in any jurisdiction) of the whole or any part of the Security Assets.
Recovery Prepayment Proceeds means the proceeds of a claim (a Recovery Claim) against the provider of any Report or the provider of any other due diligence report (in its capacity as provider of the same) in connection with the acquisition, development, financing or refinancing of the shares in any Obligor or any Property, except for Excluded Recovery Proceeds, and after deducting:
		
	(a)
	any reasonable expenses properly incurred by an Obligor to a person who is not an Obligor or Affiliate of an Obligor; and

		
	(b)
	any Tax (other than income tax) properly incurred and required to be paid by an Obligor (as reasonably determined by that Obligor on the basis of existing rates and taking into account any available credit, deduction or allowance),

in each case in relation to that Recovery Claim.
Reference Bank Rate means the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent at its request by the Reference Banks in relation to LIBOR, as the rate at which the relevant Reference Bank could borrow funds in the London Interbank Market, in the relevant currency and for the relevant period, were it to do so by asking for and then accepting interbank offers for deposits in reasonable market size in that currency and for that period.
Reference Banks means the principal London offices of BNP Paribas SA, Deutsche Bank AG and HSBC Bank Plc or such other banks as may be appointed by the Agent in consultation with the Borrower.
REITco shall have the meaning given to it in the Closing Tax Structure Report.
Related Fund in relation to a fund (the first fund), means a fund which is managed or advised by the same investment manager or investment adviser as the first fund or, if it is managed by a different investment manager or investment adviser, a fund whose investment manager or investment adviser is an Affiliate of the investment manager or investment adviser of the first fund.
Release Price means in respect of a Property, the Applicable Release Price Percentage of its Allocated Loan Amount.
Releases means any emission, discharge, release, deposit, injection, escape, spill, leak, seepage, migration, dumping, or disposal of an Hazardous Materials (including the abandonment or discarding of barrels, containers, and other closed receptacles) into the 

Page 28

indoor or outdoor environment, including, without limitation the movement of Hazardous Material through or in the ambient air, soil, surface or groundwater.
Relevant Interbank Market means the London interbank market.
Relevant Jurisdiction means, in relation to an Obligor or the Indemnitor:
		
	(a)
	its jurisdiction of incorporation or formation;

		
	(b)
	any jurisdiction where any asset subject to or intended to be subject to the Transaction Security to be created by it is situated; and

		
	(c)
	any jurisdiction where it conducts a material part of its business; and

		
	(d)
	the jurisdiction whose laws govern the perfection of any of the Security Documents entered into by it.

Relevant Rental Quarter Date has the meaning given to that term in Clause 22.1 (Definitions – Financial Covenants).
Rental Cover Ratio has the meaning given to that term in Clause 22.4 (Rental Cover Ratio).
Rental Income means the aggregate of all amounts paid or payable to or for the account of any Obligor in connection with the letting, licence or grant of other rights of use or occupation of any part of a Property, including (without double counting) each of the following amounts:
		
	(a)
	rent, licence fees and equivalent amounts paid or payable;

		
	(b)
	any sum received or receivable from any deposit held as security for performance of a tenant’s obligations;

		
	(c)
	a sum equal to any apportionment of rent allowed in favour of any Obligor;

		
	(d)
	any other moneys paid or payable in respect of occupation and/or usage of that Property and any fixture and fitting on that Property including any fixture or fitting on that Property for display or advertisement, on licence or otherwise;

		
	(e)
	any sum paid or payable under any policy of insurance in respect of loss of rent or interest on rent;

		
	(f)
	any sum paid or payable, or the value of any consideration given, for the grant, surrender, amendment, supplement, waiver, extension or release of any Lease Document;

		
	(g)
	any sum paid or payable in respect of a breach of covenant or dilapidations under any Lease Document;

		
	(h)
	any sum paid or payable by or distribution received or receivable from any guarantor of any Tenant under any Lease Document;

		
	(i)
	any Tenant Contributions;

Page 29

		
	(j)
	any sum paid or payable in respect of a Tenant’s obligations under the Lease Documents and/or the Umbrella Agreement to an Obligor in accordance with any Third Party Credit Support; and

		
	(k)
	any interest paid or payable on, and any damages, compensation or settlement paid or payable in respect of, any sum referred to above less any related fees and expenses incurred (which have not been reimbursed by another person) by any Obligor.

Rental Income Account means the account designated as such under Clause 18.1 (Designation of Accounts) and includes any replacement of that Account.
Rental Quarter means each period of 3 rental months starting on a Rental Quarter Date and ending immediately prior to the next Rental Quarter Date.
Rental Quarter Date means each of on 31 March, 30 June, 30 September and 31 December.
Repayment Instalment has the meaning given to that term in Clause 7.1 (Repayment of Loan).
Repeating Representations means each of the representations set out in Clauses 20.2 (Status) to 20.5 (Power and authority) (inclusive), Clause 20.8 (Validity and admissibility in evidence), Clause 20.9 (Governing law and enforcement), paragraph (b) of Clause 20.10 (Deduction of Tax), Clause 20.12 (Taxation) (other than paragraph (d)), Clause 20.13 (VAT) (other than paragraph (a)), paragraph (b) of Clause 20.14 (No default), Clause 20.28 (Centre of main interests and establishments), Clause 20.31 (Sanctions) and Clause 20.32 (Anti-Corruption law).
Report means:
		
	(a)
	the Technical and Engineering Report;

		
	(b)
	the Closing Tax Structure Report;

		
	(c)
	the Environmental Report;

		
	(d)
	any Property Report;

		
	(e)
	the Valuation Report (including a measurement survey);

		
	(f)
	the Overview Report; and

		
	(g)
	the Insurance Report.

Report Proceeds Side Letter has the meaning given to that term in paragraph (d) of Clause 23.23 (Conditions Subsequent).
Representative means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.
Required Net Disposal Proceeds means, in respect of any disposal by an Obligor of a Property or its shares in a Subsidiary, the aggregate of:

Page 30

		
	(a)
	the Release Price in respect of that Property, or in respect of a disposal of Shares in a Subsidiary, of any Property then owned by that Obligor or Subsidiary (as applicable); and

		
	(b)
	any other amount that is or will become due and payable in accordance with paragraph (b) of Clause 8.10 (Restrictions) as a result of the application of the Net Disposal Proceeds of that disposal and any Disposal Proceeds Shortfall Amount in prepayment of the Loan.

Requisite Rating means, the rating of long or short term (as appropriate) unsecured debt instruments in issue by a person (which are neither subordinated nor guaranteed) which meet the following requirements:
		
	(a)
	in relation to any insurance company or underwriter, long term instruments or, if it is not rated for its long term instruments (if any) then an Insurer Financial Strength Rating, with a rating of A- (or better) by S&P, A- (or better) by Fitch or A3 (or better) by Moody’s; and

		
	(b)
	in relation to a Hedge Counterparty:

		
	(i)
	long term instruments with a rating of A- (or better) by S&P; and

		
	(ii)
	to the extent that that Hedge Counterparty:

		
	(A)
	has a long term instruments rating from Fitch, long term instruments with a rating of A- (or better) by Fitch; or

		
	(B)
	does not have a long term instruments rating from Fitch, long term instruments with a rating of A3 (or better) by Moody’s.

Reserved Matter means either:
		
	(a)
	a Closing Defect in respect of which either:

		
	(iii)
	a Special Reserve; or

		
	(iv)
	an Additional Non-Recourse Carve-out, 

has been established in accordance with Clause 5.3(a) (Special Reserves) as confirmed in writing by the Arranger to the Indemnitor on or about the date of this Agreement; or
		
	(b)
	the circumstances subsisting as at the Closing Date that cause the results of Radon Sampling of any Property to be above the UK action level of 200 Bq/m3 for radon in relation to that Property; or 

		
	(c)
	the circumstances subsisting at the Closing Date that give rise to the obligations under Clause 24.14 (Above-Ground Storage Tanks) and/or Clause 24.15 (Underground Storage Tanks).

Reserves Accounts means the accounts designated as such under Clause 18.1 (Designation of Accounts) and includes any replacement of such Accounts.

Page 31

Resignation Letter means a letter substantially in the form set out in ‎Schedule 9 (Form of Resignation Letter).
Restricted Party means any person that is:
		
	(a)
	listed on, or owned or controlled by a person listed on, a Sanctions List;

		
	(b)
	the government of a Sanctioned Country;

		
	(c)
	located in or incorporated under the laws of any Sanctioned Country; or

		
	(d)
	to the best knowledge of any Obligor (acting with all due care and enquiry), otherwise a target of Sanctions.

RICS means the Royal Institution of Chartered Surveyors.
Sanctions means:
		
	(a)
	economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (i) the US government and administered by OFAC, (ii) the United Nations Security Council, (iii) the European Union; (iv) Her Majesty’s Treasury of the United Kingdom; (v) Switzerland; or (vi) the United Kingdom; and

		
	(b)
	economic or financial sanctions imposed, administered or enforced from time to time by the US State Department, the US Department of Commerce, the US Department of the Treasury or the Swiss State Secretariat for Economic Affairs.

Sanctioned Country means a country or territory which is subject to:
		
	(a)
	general country or territory-wide trade, economic or financial sanctions or trade embargoes imposed, administered or enforced by (i) the US government and administered by OFAC, (ii) the United Nations Security Council, (iii) the European Union or (iv) Her Majesty’s Treasury of the United Kingdom; or

		
	(b)
	general country or territory-wide economic or financial sanctions or trade embargoes imposed by the US government and administered by the US State Department, the US Department of Commerce or the US Department of the Treasury.

Sanctions List means any of the lists of specifically designated nationals or designated persons or entities (or equivalent) held by (a) the US government and administered by OFAC, the US State Department, the US Department of Commerce or the US Department of the Treasury, (b) the United Nations Security Council, (c) the European Union or (d) Her Majesty’s Treasury of the United Kingdom, each as amended, supplemented or substituted from time to time.
Scottish Priority Deed means the ranking agreement dated on or around the date of this Agreement entered into between the Security Agent, CHHGL and the Original Borrower.

Page 32

Scots Tenant Security means:
		
	(a)
	the standard security granted by the Original Borrower in favour of CHHGL in relation to the property at Strathview Care Home, Carswell Wynd, Auchtermuchty, Cupar, KY14 7FG dated 10 September 2013 and registered in the Land Register under Title Number FFE28660 on 12 September 2013;

		
	(b)
	the standard security granted by the Original Borrower in favour of CHHGL in relation to the property at Forth Bay Nursing Home, Walker Street, Kincardine, Alloa, FK10 4NT dated 10 September 2013 and registered in the Land Register under Title Number FFE22826 on 12 September 2013;

		
	(c)
	the standard security granted by the Original Borrower in favour of CHHGL in relation  to the property at Beechwood Park Nursing Home, 136 Main Street, Sauchie, Alloa, FK10 3JZ dated 10 September 2013 and registered in the Land Register under Title Number CLK6107 on 12 September 2013;

		
	(d)
	the standard security granted by the Original Borrower in favour of CHHGL in relation to the property at March Glen Care Centre, Gannel Hill View, Sauchie, Alloa dated 10 September 2013 and registered in the Land Register under Title Number CLK11530 on 12 September 2013;

		
	(e)
	the standard security granted by the Original Borrower in favour of CHHGL in relation to the property at Hillview Court Nursing Home, Sauchie, Alloa dated 10 September 2013 and registered in the Land Register under Title Number CLK7370 on 12 September 2013; and 

		
	(f)
	the standard security granted by the Original Borrower in favour of CHHGL in relation to the property at Scoonie Care Home, Windygates Road, Leven dated 10 September 2013 and registered in the Land Register under Title Numbers FFE72109, FFE40254 and FFE49435 on 12 September 2013. 

Screen Rate means the London interbank offered rate administered by the British Bankers Association (or any other person which takes over the administration of that rate) for the relevant period, displayed on page LIBOR01 of the Reuters screen (or any replacement Reuters page which displays that rate) or on the appropriate page of such other information service which publishes that rate from time to time in place of Reuters.  If such page or service ceases to be available, the Agent may specify another page or service displaying the relevant rate after consultation with the Borrower.
SDLT Amount means the amount of stamp duty land tax that would be payable in respect of the Property Transfers if group relief under paragraph 1 Schedule 7 Finance Act 2003 were not available.
Second Term Extension means the exercise of the Second Term Extension Option in accordance with Clause 7.3 (Extension option).
Secured Liabilities means all present and future obligations and liabilities (whether actual or contingent and whether owed jointly or severally or in any other capacity 

Page 33

whatsoever) of each Transaction Obligor to any Secured Party under each Finance Document.
Secured Party means a Finance Party, a Receiver or any Delegate.
Securitisation means any securitisation or transaction of broadly equivalent economic effect relating to, or using as a reference, the whole or part of the Loan (whether alone or in conjunction with other loans) through the issue of notes on the capital markets.
Security means a mortgage, standard security, hypothec, charge (fixed or floating), assignment or assignation in security, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.
Security Agreement means a Security over the assets of an Obligor entered into or to be entered into by that Obligor in favour of the Security Agent in an agreed form.
Security Asset means all of the assets of the Transaction Obligors which from time to time are, or are expressed to be, the subject of the Transaction Security.
Security Document means:
		
	(a)
	a Security Agreement, a Billet, a Security Interest Agreement, a Shareholder’s Security Agreement, a Standard Security or an Assignation of Rent;

		
	(b)
	any other document evidencing or creating Security over any asset to secure any obligation of any Obligor to a Secured Party under the Finance Documents; or

		
	(c)
	any other document designated as such by the Security Agent and the Borrower.

Security Interest Agreements means the Jersey law security interest agreements in favour of the Security Agent granted by:
		
	(a)
	the Original Borrower over the entire issued share capital of Jerseyco; and

		
	(b)
	Jerseyco over all of its rights and interests in the lease proceeds in respect of the Jersey Properties,

in each case, in the agreed form.
Security Property means:
		
	(a)
	the Transaction Security expressed to be granted in favour of the Security Agent as trustee for the Secured Parties and all proceeds of that Transaction Security;

		
	(b)
	all obligations expressed to be undertaken by a Transaction Obligor to pay amounts in respect of the Secured Liabilities to the Security Agent as trustee for the Secured Parties and secured by the Transaction Security together with all representations and warranties expressed to be given by a Transaction Obligor or any other person in favour of the Security Agent as trustee for the Secured Parties; and

Page 34

		
	(c)
	any other amounts or property, whether rights, entitlements, choses in action or otherwise, actual or contingent, which the Security Agent is required by the terms of the Finance Documents to hold as trustee on trust for the Secured Parties.

Servicer means any servicer or special servicer appointed by a Lender or the Agent or the Security Agent in connection with any Securitisation.
Shareholder means any direct or indirect shareholder of, or holder of any form of ownership interests in, an Obligor or in any Holding Company of an Obligor.
Shareholder’s Security Agreement means a Security over the shares of an Obligor and a Security over the Shareholder’s Subordinated Debt (other than a Security Interest Agreement) entered into or to be entered into by the relevant Shareholder in favour of the Security Agent in an agreed form.
SIR means the security interests register maintained under part 8 of the Security Interests (Jersey) Law 2012.
Speciality Division has the meaning given to the term in the Elder Care Guarantee.
Speciality Division Debenture means the debenture dated 11 September 2013 charging the assets of the Speciality Division (other than MHL Holdco Limited, Consensus Holdco Limited, Consensus Newco Limited and Paul Jeffrey) and securing the obligations of the Speciality Division under the Speciality Division Guarantee.
Speciality Division Guarantee means the guarantee dated 11 September 2013 from the Speciality Division (other than MHL Holdco Limited, Consensus Holdco Limited, Consensus Newco Limited and Paul Jeffrey) guaranteeing, among other obligations, the obligations of Elder Care Co, Consensus and Glentworth under the Portfolio Leases, Umbrella Agreement, Business Transfer Agreement and the SPA.
Special Reserve means the amount required to be deposited in the Special Reserves Account in accordance with Clause 5.3 (Special Reserves).
Special Reserves Account means the account designated as such under Clause  18.1 (Designation of Accounts) and includes any replacement of that Account.
Special Reserves Cap means £10,000,000.
Special Reserves Shortfall has the meaning given to that term in Clause 5.3 (Special Reserves). 
Specified Time means a time determined in accordance with ‎Schedule 12 (Timetables).
Sponsor means NorthStar Realty Finance Corp.
Sponsor Affiliate means an Affiliate or Related Fund of the Sponsor.
Stamp Office Clearance means confirmation from HMRC Stamp Taxes that group relief under paragraph 1 Schedule 7 Finance Act 2003 will be available in respect of the transfer 

Page 35

of Properties by the Borrower and GA HC REIT II CH UK Walstead Ltd as described at paragraph 7.1.2 of the Closing Tax Structure Report.
Standard Security means a first ranking Scots law standard security over a Property located in Scotland entered into or to be entered into by an Obligor in favour of the Security Agent in an agreed form.
Structural Flex has the meaning given to it in the Mezzanine Flex Letter.
Subordinated Creditor means:
		
	(a)
	an Obligor;

		
	(b)
	Holdco;

		
	(c)
	Healthcare GA Holdings, General Partnership (formerly NRF Healthcare Subsidiary, LLC, itself as successor to Griffin-American Healthcare REIT II Inc.); or

		
	(d)
	any other person who becomes a Subordinated Creditor in accordance with the Finance Documents.

Subordinated Debt, in relation to a Subordinated Creditor, has the meaning given to it in the Subordination Agreement entered into by that Subordinated Creditor.
Subordination Agreement means a subordination agreement entered into or to be entered into by a Subordinated Creditor, an Obligor and the Security Agent in an agreed form.
Subsidiary means an entity of which a person has direct or indirect control or owns directly or indirectly more than 50 per cent. of the voting capital or similar right of ownership and control for this purpose means the power to direct the management and the policies of the entity whether through the ownership of voting capital, by contract or otherwise.
Tax means any tax, levy, impost, duty or other charge or withholding of a similar nature in any jurisdiction (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same).
Tax Authority means any government, state or municipality, or any local, state, federal or other fiscal, revenue, customs or excise authority, body or official anywhere in the world.
Tax Clearances means the HMRC REIT Clearance, the Stamp Office Clearance and the Luxembourg Tax Clearances.
Technical and Engineering Report means the technical and engineering due diligence report prepared by EMG dated 25 November 2014 addressed to or otherwise capable of being relied upon by the Finance Parties and any security trustee and/or note trustee in connection with a Securitisation of the Loan or part of the Loan and delivered as a condition precedent document pursuant to Clause 4 (Conditions to signing).

Page 36

Tenant means a tenant under a Lease Document.
Tenant Annual Capex Report means an annual report delivered by the Tenant to the Borrower in which the Tenant sets out details of the maintenance works it has carried out in respect of the Properties and the amounts it has expended upon such works during the year to which such report relates.
Tenant Contributions means any amount paid or payable to an Obligor by any tenant under a Lease Document or any other occupier of a Property, by way of:
		
	(a)
	contribution to:

		
	(i)
	ground rent;

		
	(ii)
	insurance premia;

		
	(iii)
	the cost of an insurance valuation;

		
	(iv)
	utilities;

		
	(v)
	a service or other charge in respect of an Obligor’s costs in connection with any management, repair, maintenance or similar obligation or in providing services to a tenant of, or with respect to, a Property; or

		
	(vi)
	a reserve or sinking fund; or

		
	(b)
	VAT.

Tenant’s Insurance Broker’s Letter means a letter from the Tenant's insurance brokers addressed to the Finance Parties, confirming that the insurance cover in force in respect of each Property (as arranged by or on behalf of the Tenant) complies with the terms of this Agreement and the necessary premia have been paid.
Termination Date means the date falling three years after the Utilisation Date, subject to the implementation of the First Term Extension and/or the Second Term Extension in accordance with the terms of this Agreement in which case, it shall mean the date falling (following implementation of the First Term Extension) four years or (following implementation of the Second Term Extension) five years, in each case after the Utilisation Date.
Test Date means:
		
	(a)
	(other than in respect of the Cash Trap Covenants) the Utilisation Date; and

		
	(b)
	each Interest Payment Date.

Third Party Credit Support means:
		
	(a)
	the Speciality Division Guarantee; 

		
	(b)
	the Speciality Division Debenture; 

		
	(c)
	the Elder Care Guarantee;

Page 37

		
	(d)
	the Elder Care Debenture; and

		
	(e)
	guarantees, indemnities or other credit support granted or extended under the Umbrella Agreement. 

Total Commitments means the aggregate of the Commitments being £223,755,000.00 at the date of this Agreement.
Transaction Document means:
		
	(a)
	a Finance Document;

		
	(b)
	a Lease Document;

		
	(c)
	a Headlease;

		
	(d)
	the Umbrella Agreement; 

		
	(e)
	any Third Party Credit Support;

		
	(f)
	any Closing Date Cap Agreement; 

		
	(g)
	any Extension Cap Agreement;

		
	(h)
	the Indemnitor Guarantee; or

		
	(i)
	any other document designated as such by the Agent and the Borrower.

Transaction Obligor means:
		
	(a)
	an Obligor;

		
	(b)
	Holdco; or

		
	(c)
	a Subordinated Creditor.

Transaction Security means the Security created or evidenced or expressed to be created or evidenced under the Security Documents.
Transfer Certificate means a certificate substantially in the form set out in ‎Schedule 5 (Form of Transfer Certificate) or any other form agreed between the Agent and the Borrower.
Transfer Date means, in relation to an assignment or a transfer, the later of:
		
	(a)
	the proposed Transfer Date specified in the relevant Assignment Agreement or Transfer Certificate; and

		
	(b)
	the date on which the Agent executes the relevant Assignment Agreement or Transfer Certificate.

UA Deed of Variation means the deed of variation to the Umbrella Agreement dated on or about the date hereof.
UA Initial Deed of Variation means the deed of variation to the Umbrella Agreement dated 18 September 2013.

Page 38

UK GAAP means generally accepted accounting principles in the United Kingdom from time to time, including IFRS. 
UK REIT Regime has the meaning given to it in the Closing Tax Structure Report.
Umbrella Agreement means the umbrella agreement in respect of the Lease Documents dated 6 July 2013 between among others, the Obligors, Consensus, Myriad Healthcare Limited and Caring Homes Healthcare Limited, as varied by a deed of variation dated 18 September 2013 and further varied by a deed of variation dated 28 November 2014 including any variation, amendment or supplement to it disclosed in the Property Reports or made in accordance with this Agreement.
Umbrella Agreement Landlord Discretionary Acquisition means an acquisition of a property or an agreement to acquire a property by an Obligor pursuant to clauses 5 (PropCo’s Right of First Offer) or 8 (Acquisitions) of the Umbrella Agreement where such Obligor has discretion in whether or not to proceed with such acquisition.
Umbrella Agreement Landlord Discretionary Disposal means a disposal of a Property or an agreement to dispose of a Property by an Obligor pursuant to the Umbrella Agreement where such Obligor has discretion in whether or not to proceed with such disposal.
Umbrella Agreement Landlord Non-Discretionary Acquisition means an acquisition of a property or an agreement to acquire a property by an Obligor (not being an acquisition pursuant to clauses 3.4 (Substitution and Withdrawals) or 7 (Development) of the Umbrella Agreement) or otherwise where the Obligor has no discretion whether or not to proceed with such acquisition.
Umbrella Agreement Landlord Non-Discretionary Disposal means a disposal of a Property or an agreement to dispose of a Property by an Obligor being a “withdrawal” pursuant to clause 3.4 (Substitution and Withdrawal) of the Umbrella Agreement or otherwise pursuant to the Umbrella Agreement where the Obligor has no discretion over whether or not to proceed with such disposal.
Underground Storage Tank means means any tank, including underground piping connected to the tank, that is or has been used to contain Hazardous Materials or petroleum products and the combined volume of which is 10% or more beneath the surface of the ground.
Underground Storage Tank Reserve means the amount of sterling equivalent amount of US£281,250.00, being 125 per cent. of the reasonable worst case estimated costs of US£75,000.00 for each of the Rectory House Care Home Property, the Gildawood Court Care Home Property and the Denham Manor Care Home Property to conduct the Further Investigations and any Closure Work at each of those Properties.
Unpaid Sum means any sum due and payable but unpaid by an Obligor under the Finance Documents.
US means the United States of America.

Page 39

US Facility Agreement means the New York law governed facility agreement dated on or around the date of this Agreement between, among others, Citigroup Global Markets Realty Corp., JPMorgan Chase Bank, National Association, Barclays Bank PLC and Column Financial, Inc. as lenders and each of the entities listed therein as borrowers in the form delivered as a condition precedent to this Agreement.
US GAAP means generally accepted accounting principles in the US from time to time, including IFRS.
US Tax Obligor means:
		
	(a)
	an Obligor which is resident for tax purposes in the US; or

		
	(b)
	an Obligor some or all of whose payments under the Finance Documents are from sources within the US for US federal income tax purposes.

Utilisation means a utilisation of the Facility.
Utilisation Date means the date of Utilisation, being the date on which the Loan is to be made.
Utilisation Request means a notice substantially in the form set out in ‎Schedule 4 (Utilisation Request).
Valuation means a valuation of a Property, or as the context requires, the Properties by the Valuer pursuant to Clause 17.3 (Valuations), in each case which is consistent with the standards set by RICS at the time of the valuation, addressed to the Finance Parties and prepared on the basis of the market value as that term is defined in the then current Statements of Asset Valuation Practice and Guidance Notes issued by RICS and including reliance wording for the benefit of the Finance Parties and any security trustee and/or note trustee in connection with a Securitisation of the Loan or part of the Loan.
Valuer means Knight Frank or any other surveyor or valuer selected and appointed by the Agent (acting on the instructions of the Majority Lenders) from the approved list set out in Schedule 3 (Approved Valuers) of this Agreement.
VAT means:
		
	(a)
	any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and

		
	(b)
	any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred go in paragraph (a) above, or imposed elsewhere including, without limitation, GST as defined in the Goods and Services Tax (Jersey) Law 2007.

		
	1.2
	Construction

		
	(a)
	Unless a contrary indication appears, a reference in this Agreement to:

		
	(i)
	the Agent, the Arranger, any Finance Party, any Lender, any Obligor, any Party, any Secured Party, the Security Agent,  any Transaction 

Page 40

Obligor or any other person shall be construed so as to include its successors in title, permitted assigns and permitted transferees to, or of, its rights and/or obligations under the Finance Documents and, in the case of the Security Agent, any person for the time being appointed as Security Agent or Security Agents in accordance with the Finance Documents;
		
	(ii)
	a document in agreed form is a document which is agreed in writing by or on behalf of the Borrower and the Agent (including by email);

		
	(iii)
	assets includes present and future properties, revenues and rights of every description;

		
	(iv)
	disposal includes a sale, transfer, assignment, assignation, grant, lease, licence, declaration of trust or other disposal, whether voluntary or involuntary, and dispose will be construed accordingly;

		
	(v)
	a Finance Document or Transaction Document or any other agreement or instrument is a reference to that Finance Document or Transaction Document or other agreement or instrument as amended,  novated, supplemented, extended or restated;

		
	(vi)
	including means including without limitation; and include will be construed accordingly;

		
	(vii)
	guarantee means (other than in Clause 19 (Guarantee and indemnity)) any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness;

		
	(viii)
	indebtedness includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent;

		
	(ix)
	original form means the form of a document as delivered as a condition precedent in accordance with Clause 5.1 of this Agreement;

		
	(x)
	a person includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium or partnership or other entity (whether or not having separate legal personality);

		
	(xi)
	a regulation includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or organisation;

Page 41

		
	(xii)
	a provision of law is a reference to that provision as amended or re-enacted; 

		
	(xiii)
	a time of day is a reference to London time;

		
	(xiv)
	where the Agent or the Security Agent is referred to in this Agreement as acting reasonably or in a reasonable manner or as coming to an opinion or determination that is reasonable (or any similar or analogous wording is used), unless they are not required to do so, this shall mean that the Agent or Security Agent, as applicable, shall, where they have in fact sought such instructions, be acting or coming to an opinion or determination on the instructions of the Majority Lenders, or all the Lenders as applicable acting reasonably and the Agent or Security Agent shall be under no obligation to determine the reasonableness of such instructions from the Majority Lenders or all the Lenders as applicable or whether in giving such instructions the Majority Lenders or all the Lenders as applicable are acting in a reasonable manner; and

		
	(xv)
	where agreement or approval, acceptability to or satisfaction with or approval of the Agent and/or the Security Agent is referred to (or any similar or analogous wording is used) in relation to a matter not affecting the personal interests of the Agent and/or the Security Agent (including for the avoidance of doubt, any satisfaction, or determination in relation to any condition precedent) this shall mean the agreement or approval, acceptability to or satisfaction with or approval of, (or similar where similar or analogous wording is used, as applicable) the Majority Lenders as notified by or on behalf of, the Majority Lenders to the Agent and/or the Security Agent,

and in respect of paragraphs (xiv) and (xv) the Agent and/or the Security Agent shall not be responsible for any liability occasioned or by any delay or failure on the part of the Majority Lenders to give, or have given on their behalf, any such notice or instructions or to form any such opinion.
		
	(b)
	Section, Clause and Schedule headings are for ease of reference only.

		
	(c)
	Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement.

		
	(d)
	A Default and an Event of Default is continuing if it has not been remedied or waived.

		
	(e)
	Any entity into which the Agent or Security Agent may be merged or converted or with which the Agent or Security Agent may be consolidated, or which results from any merger, conversion or consolidation to which the Agent or Security Agent shall be a party, or any succeeding entity, including Affiliates of the Agent 

Page 42

or Security Agent, to which the Agent or Security Agent shall sell or otherwise transfer:
		
	(i)
	all or substantially all of its assets; or

		
	(ii)
	all or substantially all of its corporate trust business;

shall, on the date when the merger, conversion, consolidation or transfer becomes effective and to the extent permitted by any applicable laws become the successor Agent or Security Agent under this Agreement without the execution or filing of any paper or any further act or formality on the part of the parties to this Agreement and after the said effective date all references in this Agreement to the Agent or Security Agent shall be deemed to be references to such successor entity.
		
	(f)
	References to the equivalent of an amount specified in a particular currency (the specified currency amount) shall be construed as a reference to the amount of any other relevant currency which can be purchased with the specified currency amount at the Agent's Spot Rate of Exchange on the date on which the calculation falls to be made for spot delivery, as determined by the Agent, provided that no Default or Event of Default in respect of any representation, warranty or undertaking under the Finance Documents shall arise solely as a result of a subsequent change in such currency equivalent of the other relevant currency due to a fluctuations in the relevant Agent's Spot Rate of Exchange.

		
	1.3
	Currency symbols and definitions

£, GBP and sterling denote the lawful currency of the United Kingdom.
		
	1.4
	Third party rights

		
	(a)
	Unless expressly provided to the contrary in a Finance Document a person who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 (the Third Parties Act) to enforce or to enjoy the benefit of any term of this Agreement.

		
	(b)
	Notwithstanding any term of any Finance Document the consent of any person who is not a Party is not required to rescind or vary this Agreement at any time.

		
	(c)
	Any Receiver, Delegate or any person described in paragraph (b) of Clause 29.12 (Exclusion of liability) may, subject to this Clause 1.4 and the Third Parties Act, rely on any Clause of this Agreement which expressly confers rights on it.

		
	2.
	THE FACILITY

		
	2.1
	The Facility

Subject to the terms of this Agreement, the Lenders make available to the Borrowers a sterling term loan facility in an aggregate amount equal to the Total Commitments.

Page 43

		
	2.2
	Finance Parties’ rights and obligations

		
	(a)
	The obligations of each Finance Party under the Finance Documents are several.  Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents.  No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

		
	(b)
	The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from an Obligor shall be a separate and independent debt.

		
	(c)
	A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its rights under the Finance Documents.

		
	2.3
	Obligors’ Agent

		
	(a)
	Each Obligor (other than the Borrower) by its execution of this Agreement irrevocably appoints the Borrower to act on its behalf as its agent in relation to the Finance Documents and irrevocably authorises:

		
	(i)
	the Borrower on its behalf to supply all information concerning itself contemplated by this Agreement to the Finance Parties and to give all notices and instructions (including the Utilisation Request), to make such agreements and to effect the relevant amendments, supplements and variations capable of being given, made or effected by any Obligor notwithstanding that they may affect that Obligor, without further reference to or the consent of that Obligor; and

		
	(ii)
	each Finance Party to give any notice, demand or other communication to that Obligor pursuant to the Finance Documents to the Borrower,

and in each case that Obligor shall be bound as though that Obligor itself had given the notices and instructions (including the Utilisation Request) or executed or made the agreements or effected the amendments, supplements or variations, or received the relevant notice, demand or other communication.
		
	(b)
	Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement, variation, notice or other communication given or made by the Borrower or given to the Borrower under any Finance Document on behalf of an Obligor or in connection with any Finance Document (whether or not known to any Obligor) shall be binding for all purposes on that Obligor as if that Obligor had expressly made, given or concurred with it.  In the event of any conflict between any notices or other communications of the Borrower and any Obligor, those of the Borrower shall prevail.

		
	2.4
	Indemnitor

		
	(a)
	Subject to paragraph (b) below, immediately upon the accession of the Original Obligors to the Finance Documents pursuant to Clause 5.6 (Accession of 

Page 44

Original Obligors), the Indemnitor shall be released from all and any of its all present and future obligations and liabilities (whether actual or contingent and whether owed jointly or severally or in any other capacity whatsoever) under this Agreement other than to the extent any liabilities of the Indemnitor have arisen under this Agreement prior to such accessions, in respect of which liability the Indemnitor shall continue to be liable.
		
	(b)
	Notwithstanding paragraph (a) above, the Indemnitor shall continue to be subject to its obligations under paragraph (b) of Clause 23.17 (Syndication, Securitisation, Bond Issues etc.) and Clause 27.1 (Assignments and transfer by Obligors).

		
	2.5
	Permitted Reorganisations

		
	(a)
	The Parties agree that, if the Arranger exercises the Structural Flex pursuant to the Mezzanine Flex Letter, then subject to paragraph (b) below, a Permitted Mezzanine Reorganisation is to be implemented following the Closing Date in accordance with the Mezzanine Flex Letter.

		
	(b)
	The Permitted Mezzanine Reorganisation shall only be implemented following written confirmation by the Agent (acting on the instructions of the Majority Lenders acting reasonably) that the following have been met:

		
	(i)
	any conditions precedent relating to the Permitted Mezzanine Reorganisation set out in the Mezzanine Flex Letter; and

		
	(iii)
	any further conditions precedent which the Agent (acting on the instructions of the Majority Lenders) may reasonably require as being necessary in connection with the implementation of the Structural Flex (which shall include any stamp duty payable in respect of the Permitted Mezzanine Reorganisation being funded by way of Permitted Equity Injection) and which, insofar as they relate to the entry by a member of the Group (or any of its Affiliates, including Lux Mezzco, Lux Midco and Lux Holdco) into any document intended to be designated as a mezzanine finance document or intercreditor agreement, are in substance equivalent to those applying to the introduction of an Additional Obligor (as referred to in Part C of Schedule 2 (Conditions Precedent).

		
	(c)
	Following the implementation of the Permitted Mezzanine Reorganisation, the Obligors shall, to the extent not already obtained, ensure that the Luxembourg Tax Clearances are obtained.

		
	(d)
	The Parties acknowledge that the Sponsor intends to implement either the Proposed REIT Reorganisation or another Permitted REIT Reorganisation as soon as is practicable following the Closing Date.  

		
	(e)
	Implementation of the Permitted REIT Reorganisation shall only be permitted following written confirmation by the Agent (acting on the instructions of the 

Page 45

Majority Lenders acting reasonably) that the following conditions have been met (or waived):
		
	(i)
	the Tax Clearances have been obtained and copies of the same (together with copies of any related correspondence, including the application for such Tax Clearances) provided to the Agent.  For the avoidance of doubt copies of the Luxembourg Tax Clearances will only be provided in respect of matters that affect the Obligors and their Subsidiaries, the Subordinated Creditors, REITco, Lux Mezzco, Lux Midco, Lux Holdco and the Lux Propcos;

		
	(ii)
	at the request of the Agent, a QC’s Opinion has been obtained and a copy of the same (together with copies of any instructions to counsel, notes of consultation and related correspondence) provided to the Agent;

		
	(iii)
	all amendments, supplements and accessions to the Finance Documents (including as may be necessary to retain or replicate the Transaction Security or ensure that the Finance Parties benefit from equivalent Transaction Security) reasonably requested by the Agent (acting on the instructions of the Majority Lenders, acting reasonably) to implement or facilitate the Permitted REIT Reorganisation (the Supplementary Finance Documents) have been made and entered into by the relevant members of the Group or (as required) their Holding Companies and Affiliates;

		
	(iv)
	any conditions precedent reasonably requested by the Agent (acting on the instructions of the Majority Lenders, acting reasonably) in connection with the entry into of the Supplementary Finance Documents and otherwise in connection with the implementation of the Permitted REIT Reorganisation have been provided in a form and substance satisfactory to the Agent (acting reasonably).

The Obligor’s Agent will consult the Agent (acting on the instructions of the Majority Lenders, acting reasonably) on the form and content of any application for a Tax Clearance, if required, and of any instructions to counsel (and related correspondence), and the Agent (together with its advisers) shall be entitled to attend any consultation with senior tax counsel.
		
	(f)
	Notwithstanding paragraph (e)(i) above, the Obligor may decide at their discretion not to obtain the Stamp Office Clearance on the condition that instead (i) an amount equal to the SDLT Amount is paid into and held in the Reserves Account until such time as it is confirmed (to the reasonable satisfaction of the Finance Parties acting reasonably) that the SDLT Amount is not payable in respect of the Property Transfers or if earlier upon expiry of the period within which HMRC can enquire into the land transaction return provided no such enquiry has been opened in that period or (ii) the Finance Parties are indemnified to their reasonable satisfaction in respect of any loss arising directly or indirectly as a result of the SDLT Amount being payable.

Page 46

		
	(g)
	Any Permitted REIT Reorganisation must be fully implemented by no later than 18 Months from the Closing Date.

		
	(h)
	The Finance Parties acknowledge that notwithstanding any other provision of the Finance Documents, all steps and actions reasonably required for the implementation of a Permitted Mezzanine Reorganisation in accordance with paragraphs (a) and (b) above or a Permitted REIT Reorganisation in accordance with paragraphs (d), (e) and (f) above shall be permitted under the Finance Documents and that no such step or action shall constitute a breach of or default (including a Default) under any of the Finance Documents, provided in each case that the conditions set out in paragraph (b) or in paragraphs (e) and (f) (as the case may be) are complied with.

		
	(i)
	The Parties shall use all reasonable endeavours to implement any steps to be taken in connection with any Permitted Reorganisation in such a way as to ensure that the guarantees granted in favour of the Finance Parties under this Agreement and the Transaction Security are retained or that the Finance Parties benefit from equivalent guarantees and Transaction Security after the completion of any such Permitted Reorganisation.

		
	3.
	PURPOSE

		
	3.1
	Purpose

The Borrower shall apply all amounts borrowed by it under the Facility towards refinancing existing Financial Indebtedness of the Group at Closing and in financing or refinancing fees, costs and expenses (of any kind) in connection therewith (including any fees, costs or expenses payable under any Finance Documents).
		
	3.2
	Monitoring

No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to this Agreement.
		
	4.
	CONDITIONS TO SIGNING

		
	(a)
	Subject to Clause 5.3 (Special Reserves), the Lenders will only be obliged to comply with Clause 6.4 (Lenders’ participation) in relation to the Utilisation if on or before the date of this Agreement, the Agent has received all of the documents and other evidence listed in ‎Part A of Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Agent (acting on the instructions of the Original Lenders, acting reasonably), unless waived by the Agent on such terms as the Agent (acting on the instructions of the Original Lenders) considers fit. The Agent shall notify the Indemnitor and the Lenders promptly upon being so satisfied.

		
	(b)
	Other than to the extent that the Original Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in paragraph (a) above, the Lenders authorise (but do not require) the Agent to give that 

Page 47

notification.  The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.
		
	5.
	CONDITIONS TO UTILISATION

		
	5.1
	Initial conditions precedent

		
	(a)
	Subject to Clause 5.3 (Special Reserves), Lenders will only be obliged to comply with Clause 6.4 (Lenders’ participation) in relation to the Utilisation if on or before Utilisation the Agent has received all of the documents and other evidence listed in Part B of Schedule 2 (Conditions Precedent) in form and substance satisfactory to the Agent (acting on the instructions of the Original Lenders, acting reasonably), unless waived by the Agent on such terms as the Agent (acting on the instructions of the Original Lenders) considers fit.  The Agent shall notify the Borrower and the Lenders promptly upon being so satisfied.

		
	(b)
	Other than to the extent that the Original Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in paragraph (a) above, the Lenders authorise (but do not require) the Agent to give that notification.  The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.

		
	(c)
	The Agent may refuse to accept a Utilisation Request if the Agent believes that the notification described in paragraph (a) above will not be capable of being given on or before Utilisation.

		
	5.2
	Further conditions precedent

The Lenders will only be obliged to comply with Clause 6.4 (Lenders’ participation) if:
		
	(a)
	on the date of the Utilisation Request:

		
	(i)
	no Event of Default is continuing or would result from the proposed Loan; and

		
	(ii)
	the representations to be made by the Indemnitor pursuant to Clause 20.33 (Times when representations made) are true in all material respects;

		
	(b)
	on the proposed Utilisation Date:

		
	(i)
	no Event of Default is continuing or would result from the proposed Loan; and

		
	(ii)
	the representations to be made by each Obligor pursuant to Clause 20.33 (Times when representations made) are true in all material respects; and

		
	(c)
	immediately upon making the Loan:

		
	(i)
	DSCR will be at least 1.96:1;

Page 48

		
	(ii)
	the Loan to Value will not exceed 75 per cent.;

		
	(iii)
	the Rental Cover Ratio is no less than 1.18:1; and

		
	(iv)
	Debt Yield will be at least 11.6 per cent.

		
	5.3
	Special Reserves

		
	(a)
	To the extent that at Closing either:

		
	(i)
	there exists:

		
	(A)
	a material defect;

		
	(B)
	an adverse environmental condition; or

		
	(C)
	a due diligence shortfall (including non-delivery of any Property Report),

in each case which is identified in or arises from any of the Reports (or the non-delivery thereof); or
		
	(ii)
	any damage, destruction or alteration which has occurred from and including the date of the Commitment Letter with respect to improvement works in relation to the Properties or any part of the Properties whether or not covered by insurance and/or any condemnation proceedings that are pending or threatened against any part of the Properties,

in each case, with respect to any Property whereby such Property would not otherwise meet the customary standards for a Securitisation of a large portfolio of properties similar in size and character to the Properties, (each, a Closing Defect) then, subject to the remainder of this Clause 5.3, Clause 4(a) and Clause 5.1(a) (Initial conditions precedent) shall be deemed to be waived to the extent necessary in respect of any document or other evidence listed in Schedule 2 (Conditions Precedent) which would otherwise not be in form and substance satisfactory to the Agent as a result of each such Closing Defect and (to the extent applicable) Clause 5.2(a) and (b) (Further conditions precedent) shall, if and only to the extent that a Default (or Event of Default) would be caused directly as a result of any such Closing Defect with respect to a Property, then that Default (or Event of Default) shall be deemed to be waived, in each case and provided that the other requirements of this Agreement for the making of the Loan are otherwise satisfied or have been waived, the Loan shall still be made.
		
	(b)
	The Borrower and Obligors will use commercially reasonable efforts to remedy any Closing Defect as soon as reasonably practicable following Closing.

		
	(c)
	The Original Lenders may, in their sole discretion:

Page 49

		
	(i)
	designate any Closing Defect as an additional circumstance in which the Indemnitor may have potential liability under the Indemnitor Guarantee as an Additional Non-Recourse Carveout; and/or

		
	(ii)
	require the establishment of one or more Special Reserves in an amount (as reasonably determined by the Agent (acting on the instructions of the Original Lenders) prior to Closing) sufficient to remedy or collateralise any Closing Defect and which is to be paid into the Special Reserves Account as a condition precedent pursuant to Clause 5.1(a) (Initial conditions precedent) provided that the amount of any Special Reserves in respect of a Property or Properties shall not exceed the Allocated Loan Amount for any such Property.

		
	(d)
	If:

		
	(i)
	a Closing Defect is not curable by the payment of money; or

		
	(ii)
	the amount required to cure such Closing Defect is not determinable,

and the Original Lenders wish to establish a Special Reserve in respect of such Closing Defect, the amount of the Special Reserves in respect of that Closing Defect shall be an amount reasonably agreed upon by the Borrower and the Agent (acting on the instructions of the Original Lenders) prior to Closing provided that if, after reasonable consultation between the Parties acting in good faith:
		
	(A)
	the amount of the Special Reserve is not agreed upon prior to Closing; and

		
	(B)
	the Borrower has not elected to remove the relevant Property from the Properties for the Loan with a commensurate reduction in the Original Facility Amount in accordance with paragraph (e) below,

the Original Lenders’ reasonable determination of the amount of the Special Reserves shall be conclusive and binding on the Borrower provided always that the amount of any Special Reserves in respect of a Property shall not exceed the Allocated Loan Amount for any such Property.
		
	(e)
	If a Closing Defect will exist in respect of a Property and Closing has not yet occurred, the Borrower may elect to remove such Property from Part D, Part E and Part F of Schedule 1 to this Agreement (a Property Removal). Upon the occurrence of a Property Removal, no Additional Non-Recourse Carveout or Special Reserve shall apply or be established with respect to that Closing Defect and the Original Facility Amount will be reduced by the Allocated Loan Amount for such Property that has been removed from Schedule 1.

		
	(f)
	Notwithstanding the foregoing provisions of this Clause 5.3, the Special Reserves required to be funded at Closing shall not in aggregate exceed the Special Reserves Cap and shall be funded by way of a Permitted Equity Injection 

Page 50

or, if applicable, proceeds of insurance to the extent received by an Obligor in respect of any Closing Defect.
		
	(g)
	To the extent that the aggregate amount of Special Reserves determined in accordance with paragraph (d) above would, but for the operation of paragraph (f) above, exceed the Special Reserves Cap (the amount of such excess being, the Special Reserves Shortfall), then additional amounts shall be deposited into the Special Reserves Account from the Rental Income Account prior to any amount being swept to the General Account in accordance with Clause 18.3(f)(vii) (Rental Income Account) until the aggregate of such additional amounts deposited into the Special Reserves Account  is not less than the Special Reserves Shortfall.

		
	(h)
	The Obligors and the Indemnitor shall take all reasonable steps that may, in the opinion of the Agent (acting on the instructions of the Majority Lenders acting reasonably), be necessary in connection with the implementation of an Additional Non-Recourse Carveout or a Special Reserve referred to in paragraphs (c) or (g) above.

		
	5.4
	Interest on Reserves Account and Special Reserves Account

Interest earned on the Reserves Account and the Special Reserves Account shall be for the account of the Borrower, and, in the case of interest on the Special Reserves Account, subject to there being no outstanding Special Reserves Shortfall, (in which case such interest shall be applied towards meeting such shortfall by being retained in the Reserves Account as part of the principal balance thereof), may be withdrawn from such account and paid into the General Account at any time prior to the commencement of any action referred to in Clause 25.20 (Acceleration).
		
	5.5
	Maximum number of Loans

Only one Utilisation Request may be delivered in respect of the Facility.
		
	5.6
	Accession of Original Obligors

		
	(a)
	The Indemnitor shall procure that upon Utilisation, those companies listed in this Agreement as Original Obligors have acceded to the Finance Documents as Original Obligors in accordance with Clause 27.2 (Original Obligors).

		
	(b)
	Without affecting Clause 5.1 (Initial conditions precedent), the Indemnitor and each Original Obligor acknowledges unconditionally and irrevocably that the Original Obligors were authorised and intended to utilise the Facility upon the occurrence of Closing and, for the purpose of the Finance Documents, the Original Borrower shall be deemed to have utilised the Facility immediately following the Initial Accession.

		
	(c)
	Immediately following the Initial Accession, each Original Obligor shall provide the Agent with resolutions of its board of directors ratifying the resolutions made in its Original Obligor Board Minutes.

Page 51

		
	6.
	UTILISATION

		
	6.1
	Delivery of a Utilisation Request

The Borrower may utilise the Facility by delivery to the Agent and the Original Lender by the Indemnitor on behalf of the Borrower of a duly completed Utilisation Request not later than the Specified Time.
		
	6.2
	Completion of a Utilisation Request

The Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:
		
	(a)
	it specifies the purpose of the Loan;

		
	(b)
	the proposed Utilisation Date is a Business Day within the Availability Period; and

		
	(c)
	the currency and amount of the Utilisation comply with Clause 6.3 (Currency and amount).

		
	6.3
	Currency and amount

		
	(a)
	The currency specified in the Utilisation Request must be sterling.

		
	(b)
	The amount of the proposed Loan must be the lesser of: (i) the Available Facility; and (ii) the maximum aggregate amount that may be utilised in order to ensure compliance with Clause 5.2(c) (Further conditions precedent).

		
	6.4
	Lenders’ participation

		
	(a)
	If the conditions set out in this Agreement have been met, each Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office.

		
	(b)
	The amount of each Lender’s participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making the Loan.

		
	(c)
	The Agent shall notify each Lender of the amount of each Loan and the amount of its participation in that Loan by the Specified Time.

		
	6.5
	Cancellation of Commitment

The Commitments which, at that time, are unutilised shall be immediately cancelled at the end of the Availability Period.
		
	7.
	REPAYMENT

		
	7.1
	Repayment of Loan

		
	(a)
	The Borrowers shall repay the Loan in instalments on each Interest Payment Date (each a Repayment Instalment).

Page 52

		
	(b)
	Each Repayment Instalment (other than the last) will be in an amount equal to 0.25 per cent. of the Original Facility Amount.

		
	(c)
	The last Repayment Instalment shall be repaid on the Termination Date and will be the balance of the then outstanding Loan.

		
	7.2
	Reborrowing

No Borrower may reborrow any part of the Facility which is repaid.
		
	7.3
	Extension option

		
	(a)
	Subject to paragraph (c) below, the Borrower may elect to extend the Termination Date by an additional 12 Months (the First Term Extension Option).

		
	(b)
	Provided that the First Term Extension has occurred in accordance with this Clause 7.3 and subject to paragraph (c) below, the Borrower may elect to further extend the Termination Date by an additional 12 Months (the Second Term Extension Option).

		
	(c)
	The First Term Extension Option and the Second Term Extension Option (each, an Extension Option) may not be exercised unless each of the following conditions is satisfied or waived by the Agent (acting on the instruction of all of the Lenders):

		
	(i)
	the Extension Fee is paid in full to the Agent (for the account of each Lender) on or before the date of the relevant Extension;

		
	(ii)
	the Borrower has notified the Agent of its irrevocable election to extend the Termination Date no more than 60 and no fewer than 30 days prior to the applicable Termination Date (such notification being, the Extension Notice);

		
	(iii)
	no Event of Default is continuing at the date of the relevant Extension Notice or the date of the relevant Extension or would reasonably be expected to be continuing immediately thereafter; and

		
	(iv)
	the Borrower has purchased an Extension Cap under an Extension Cap Agreement acceptable to the Agent.

		
	(d)
	Upon satisfaction or waiver of the conditions set out in paragraph (c) above, the Termination Date shall be deemed to be extended pursuant to the relevant Extension Option as from the Termination Date applicable immediately prior to the implementation of such Extension Option.

		
	8.
	PREPAYMENT AND CANCELLATION

		
	8.1
	Illegality

If, in any applicable jurisdiction, it becomes unlawful for any Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation 

Page 53

in any Loan or it becomes unlawful for any Affiliate of a Lender for that Lender to do so:
		
	(a)
	that Lender shall promptly notify the Agent upon becoming aware of that event;

		
	(b)
	upon the Agent notifying the Borrower, the Commitment of that Lender will be immediately cancelled; and

		
	(c)
	the Borrower shall repay that Lender’s participation in the Loan made to that Borrower on the last day of the Interest Period for each Loan occurring after the Agent has notified the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period permitted by law).

		
	8.2
	Change of control

		
	(a)
	Subject to paragraph (b) below, if:

		
	(i)
	the Sponsor or any of its Affiliates, or any entities controlled and/or managed by NorthStar Asset Management Group (NASM) or any Affiliates of NASM, ceases to control, directly or indirectly, Holdco; 

		
	(ii)
	any person or Group of persons (other than the Sponsor or any of its Affiliates or any entities controlled and/or managed by NASM or any of its Affiliates) acting in concert gains direct or indirect control of Holdco; or

		
	(iii)
	Holdco ceases to own (directly or indirectly) all of the shares of the Original Borrower,

then:
		
	(x)
	the Borrower shall promptly notify the Agent upon becoming aware of that event;

		
	(y)
	a Lender shall not be obliged to fund the Utilisation; and

		
	(z)
	if the Majority Lenders so require, the Agent shall, by not less than 15 Business Days' notice to the Borrower, cancel the Total Commitments and declare all of the outstanding Loan, together with accrued interest, and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Total Commitments will be cancelled and all such outstandings and amounts will become immediately due and payable.

		
	(b)
	Paragraph (a) above shall not apply following the occurrence of a "Public Company Exit" (as defined in the original form of the US Facility Agreement) by a direct or indirect Holding Company of Holdco in accordance with the provisions of the US Facility Agreement provided that the requisite number of lenders under the US Facility Agreement have confirmed that any applicable conditions to such Public Company Exit under the US Facility Agreement have been satisfied or waived in accordance with the terms of the US Facility 

Page 54

Agreement as evidenced to the reasonable satisfaction of the Agent and provided further that such Public Company Exit does not adversely affect the rights of the Finance Parties under the Finance Documents
For the purpose of this Clause 8.2: 
		
	(i)
	control means:

		
	(A)
	the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

		
	(I)
	cast, or control the casting of, more than 50.0 per cent. of the maximum number of votes that might be cast at a general meeting of Holdco; or

		
	(II)
	appoint or remove all, or the majority, of the directors, managers or other equivalent officers of Holdco; or

		
	(III)
	give directions with respect to the operating and financial policies of Holdco which the directors or other equivalent officers of Holdco are obliged to comply with; or

		
	(B)
	the holding beneficially of more than 50.0 per cent. of the issued share capital of Holdco (excluding any part of the issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital);

		
	(ii)
	acting in concert means a group of persons who, pursuant to an agreement or understanding (whether formal or informal), actively co-operate, through the acquisition directly or indirectly of shares in Holdco by any of them, either directly or indirectly, to obtain or consolidate control of Holdco; and

		
	(iii)
	Sponsor means NASM, NorthStar Realty Finance Corp. and NorthStar Healthcare Income, Inc. whether acting collectively or individually.

		
	8.3
	Mandatory prepayment

		
	(a)
	The Borrower shall, and shall procure that each Obligor which is the recipient of any such amounts shall, apply the following amounts in or towards prepayment of the Loan, and payment of prepayment fees and other amounts referred to in paragraph (b)‎ of Clause 8.10 (Restrictions) at the time and in the order of application contemplated by Clause 8.4 (Application of mandatory prepayments):

		
	(i)
	subject to the provisions of paragraph (a) of Clause 8.4 (Application of mandatory prepayments), the amount of Net Disposal Proceeds (plus, in respect of any disposal of a Property or shares in a Subsidiary of an Obligor, an amount equal to the Disposal Proceeds Shortfall Amount (if any));

Page 55

		
	(ii)
	the amount of Lease Prepayment Proceeds;

		
	(iii)
	the amount of Insurance Prepayment Proceeds;

		
	(iv)
	the amount of Compensation Prepayment Proceeds; and

		
	(v)
	the amount of Recovery Prepayment Proceeds.

		
	(b)
	The Agent must apply the following amounts in prepayment of the Loan, and payment of other amounts referred to in paragraph (b) of Clause 8.10 (Restrictions) promptly and in the order of application contemplated by Clause 8.4 (Application of mandatory prepayments):

		
	(i)
	the amount standing to the credit of the Cash Trap Account, in accordance with paragraph (d) Clause 18.5 (Cash Trap Account); and

		
	(ii)
	the amount standing to the credit of the DSCR Cure Account, in accordance with paragraphs (d) and (e) of Clause 18.7 (DSCR Cure Account); and

		
	(iii)
	the amount standing to the credit of the LTV Cure Account, in accordance with paragraphs (d) and (e) of Clause 18.6 (LTV Cure Account).

		
	8.4
	Application of mandatory prepayments

		
	(a)
	An amount referred to in sub-paragraph (a)(i) of Clause 8.3 (Mandatory prepayment) shall be applied on the date provided for in accordance with paragraph (d) of Clause 18.4 (Mandatory Prepayment Account),  as follows:

		
	(i)
	first:

		
	(A)
	in an amount equal to the Release Price of the Property the subject of, or owned by the Subsidiary the shares of which were the subject of, the relevant disposal in or towards prepayment of the Loan; and

		
	(B)
	in or towards payment of any other amount that has or will become due and payable in accordance with paragraph (b) of Clause 8.10 (Restrictions) as a result of that prepayment; and

		
	(ii)
	second, in payment of any surplus Net Disposal Proceeds over and above the amounts referred to in paragraphs (A) and (B) above either:

		
	(A)
	if at such time all of the Cash Release Conditions are satisfied, into the General Account; or

		
	(B)
	if at such time any of the Cash Release Conditions is not satisfied into the Cash Trap Account.

		
	(b)
	An amount referred to in sub-paragraphs (a)(ii) to (a)(v) or (b) of Clause 8.3 (Mandatory prepayment) shall be applied on the date provided for in accordance 

Page 56

with paragraph (d) of Clause 18.4 (Mandatory Prepayment Account) and shall be applied in each case in or towards:
		
	(i)
	first, prepayment of the Loan; and

		
	(ii)
	second, in or towards payment of any other amount that is or will become due and payable in accordance with paragraph (b) of Clause 8.10 (Restrictions) as a result of that prepayment.

		
	8.5
	Voluntary cancellation

The Borrower may, if it gives the Agent not less than 3 Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being in a minimum of £1,000,000) of the Available Facility.  Any cancellation under this Clause 8.5 shall reduce the Commitments of the Lenders rateably.
		
	8.6
	Voluntary prepayment of Loan

The Borrower may, if it gives the Agent not less than three Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of any Loan (but, if in part being an amount that reduces the amount of the Loan by a minimum amount of £1,000,000 or if less, as provided for in any of Clauses 18.6(d), 18.7(d), 22.2(b) or 22.3(b)).
		
	8.7
	Right of repayment and cancellation in relation to a single Lender

		
	(a)
	If:

		
	(i)
	any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 13.2 (Tax gross-up); or

		
	(ii)
	any Lender claims indemnification from the Borrower under Clause 13.3 (Tax indemnity) or Clause 14.1 (Increased costs),

the Borrower may, whilst the circumstance giving rise to the requirement for that increase or indemnification continues, give the Agent notice of cancellation of the Commitment of that Lender and its intention to procure the repayment of that Lender’s participation in the Loan.
		
	(b)
	On receipt of a notice of cancellation referred to in paragraph (a) above, the Commitment of that Lender shall immediately be reduced to zero.

		
	(c)
	On the last day of each Interest Period which ends after the Borrower has given notice of cancellation under paragraph (a) above (or, if earlier, the date specified by the Borrower in that notice), the Borrower to which a Loan has been made shall repay that Lender’s participation in the Loan.

		
	8.8
	Right of cancellation in relation to a Defaulting Lender

		
	(a)
	If any Lender becomes a Defaulting Lender, the Borrower may, at any time whilst the Lender continues to be a Defaulting Lender, give the Agent 10 

Page 57

Business Days' notice of cancellation of each Available Commitment of that Lender.
		
	(b)
	On the notice referred to in paragraph (a) above becoming effective, the Commitment of the Defaulting Lender shall immediately be reduced to zero.  

		
	(c)
	The Agent shall as soon as practicable after receipt of a notice referred to in paragraph (a) above, notify all the Lenders.

		
	8.9
	Partial prepayment of Loan

If any part of the Loan is prepaid in accordance with Clause 8.1 (Illegality), Clause 8.7 (Right of repayment and cancellation in relation to a single Lender) or Clause 8.3 (Mandatory prepayment) then the amount of the Repayment Instalment falling after that prepayment will reduce pro rata by the amount of the Loan prepaid.
		
	8.10
	Restrictions

		
	(a)
	Any notice of cancellation or prepayment given by any Party under this Clause 8 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

		
	(b)
	Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and subject to any applicable Break Costs, in connection with that prepayment and any prepayment and cancellation fees payable under this Agreement.

		
	(c)
	No Borrower may reborrow any part of the Facility which is prepaid.

		
	(d)
	The Borrowers shall not repay or prepay all or any part of the Loan or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement.

		
	(e)
	No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.

		
	(f)
	If the Agent receives a notice under this Clause 8 it shall promptly forward a copy of that notice to either the Borrower or the affected Lenders.

		
	(g)
	If all or part of any Lender’s participation in a Loan is repaid or prepaid, an amount of that Lender’s Commitment (equal to the amount of the participation which is repaid or prepaid) will be deemed to be cancelled on the date of repayment or prepayment.

		
	(h)
	Any prepayment of a Loan (other than a prepayment to a single Lender pursuant to Clause 8.1 (Illegality) or Clause 8.7 (Right of repayment and cancellation in relation to a single Lender) shall be applied pro rata to each Lender’s participation in that Loan.

Page 58

		
	9.
	INTEREST

		
	9.1
	Calculation of interest

The rate of interest on each Loan for each Interest Period shall be calculated on a daily basis and is the percentage rate per annum which is the aggregate of the applicable:
		
	(a)
	Margin; and

		
	(b)
	LIBOR.

		
	9.2
	Payment of interest

The Borrower to which a Loan has been made shall pay accrued interest on that Loan on each Interest Payment Date.
		
	9.3
	Hedging

		
	(a)
	On or before the earliest to occur of:

		
	(i)
	the date falling 30 days after the Utilisation Date; and 

		
	(ii)
	the date falling two Business Days after the Arranger notifies the Obligors’ Agent that it intends formally to commence: 

		
	(A)
	any Securitisation; or 

		
	(B)
	the primary syndication process in relation to the Facility,

(provided that in respect of paragraph (ii) above, such notification is given by the Arranger no earlier than three Business Days after the Closing Date) the Borrower shall enter into and shall thereafter maintain the Closing Date Cap in accordance with this Clause 9.3.
		
	(b)
	The aggregate notional amount of the transactions in respect of the Closing Date Cap shall be at least 100 per cent. of the aggregate amount of the Loan.

		
	(c)
	The Closing Date Cap throughout its duration shall:

		
	(i)
	be entered into with:

		
	(A)
	the Arranger;

		
	(B)
	an Affiliate of the Arranger; 

		
	(C)
	a bank or financial institution which has a Requisite Rating; or

		
	(D)
	an Affiliate of a bank or financial institution which has a Requisite Rating,

provided that, to the extent entered into with a person under sub-paragraphs (C) or (D) above, such Hedge Counterparty shall have the Day 1 Hedging Requisite Rating on date of entry into such Closing Date Cap Agreement);

Page 59

		
	(ii)
	consist of fully-paid interest rate caps with a 3-month LIBOR strike price not exceeding 2.5 per cent. per annum for the period from and including the Utilisation Date until no earlier than the third anniversary of the Utilisation Date (the Initial Hedging Cap);

		
	(iii)
	be for a term ending not earlier than the date falling three years after the Utilisation Date;

		
	(iv)
	have settlement dates coinciding only with the Interest Payment Dates;

		
	(v)
	be on terms which permit the Obligor to comply with sub-paragraphs (vi) and (vii) below;

		
	(vi)
	be capable of and not contain any restrictions on granting any Security over the relevant Obligor’s rights and interests under the Closing Date Cap Agreement in favour of the Finance Parties;

		
	(vii)
	be based substantially on the form of an ISDA Master Agreement and otherwise in form and substance satisfactory to the Agent (acting on the instructions of the Majority Lenders); and

		
	(viii)
	be payable (and paid) in full by the Borrower up-front no later than the date of the Closing Date Cap Agreement.

		
	(d)
	If any Hedge Counterparty does not have the relevant Requisite Rating at any time (such Hedge Counterparty being an Affected Hedge Counterparty), the Borrower will, upon becoming aware of the same, notify the Agent and procure that, within 30 days of becoming aware of such event, the Affected Hedge Counterparty is replaced with another hedge counterparty which has the Requisite Rating.

		
	(e)
	The rights of each Obligor under the Hedging Agreements shall be charged or assigned by way of security under a Security Agreement.

		
	(f)
	Subject to paragraph (g) below, any Obligor that is party to a Hedging Agreement must comply with the terms of that Hedging Agreement.

		
	(g)
	If at any time the notional principal amount of the transactions in respect of the Closing Date Cap would be less than 100 per cent. of the aggregate outstanding Loan, the Borrower shall as soon as reasonably practicable and in any event within 10 Business Days enter into additional hedging arrangements (which comply with the provisions of this Clause 9.3) to increase the aggregate notional principal amount of the Closing Date Cap by an amount and in a manner acceptable to the Agent (acting reasonably) to reflect a minimum of 100 per cent. of the outstanding Loan.

		
	(h)
	The Borrower may not terminate or close out any Closing Date Cap entered into pursuant to any Hedging Agreement except:

		
	(i)
	in accordance with this Clause 9.3;

Page 60

		
	(ii)
	if it becomes illegal for the Borrower to continue to comply with its obligations under that Hedging Agreement;

		
	(iii)
	if the Secured Liabilities have unconditionally and irrevocably been paid and discharged in full; or

		
	(iv)
	with the prior written consent of the Agent (acting on the instructions of the Majority Lenders, acting reasonably).

		
	(i)
	If at any time:

		
	(i)
	a Hedge Counterparty fails to pay any amount due to an Obligor under a Hedging Agreement and the grace period applying to such failure to pay under the relevant Hedging Agreement has expired; or

		
	(ii)
	any of the events contemplated in the "bankruptcy" section of the relevant ISDA Master Agreement occurs with respect to a Hedge Counterparty,

(each such event being a Hedge Counterparty Default Event) and such event permits the Borrower to terminate the relevant Hedging Agreements, the Agent may require the relevant Borrower by notice in writing to (as soon as reasonably practicable (but in any event within 30 days of receipt of such notice)):
		
	(A)
	terminate the relevant Hedging Agreements (the Existing Hedging Agreements) relating to that Hedge Counterparty; and

		
	(B)
	to enter into a new Hedging Agreement with a Hedge Counterparty which is has a Requisite Rating at that time on substantially the same economic terms as the Existing Hedging Agreements (unless otherwise agreed with the Majority Lenders).

		
	(j)
	Subject to paragraph (k) below, an Obligor may not amend, supplement, extend or waive the terms of any Hedging Agreement without the prior written consent of the Agent (acting on the instructions of the Majority Lenders, acting reasonably).

		
	(k)
	Paragraph (j)‎ above shall not apply to an amendment, supplement or waiver that is administrative and mechanical in nature and does not give rise to a conflict with any other provision of this Agreement.

		
	(l)
	To the extent required by local law to perfect the Security, each Obligor that is party to a Hedging Agreement shall use all reasonable commercial efforts for a period of not less than 20 Business Days to procure that any Hedge Counterparty to such Hedging Agreement acknowledges notices of, the charging or assigning by way of security by each Borrower pursuant to the relevant Security Documents of its rights under the Hedging Agreements to which it is party in favour of the Security Agent.

Page 61

		
	(m)
	Any such charging or assigning by way of Security is without prejudice to, and after giving effect to, the operation of any payment or close-out netting in respect of any amounts owing under any Hedging Agreement.

		
	(n)
	The Security Agent shall not be liable for the performance of any of an Obligor’s obligations under a Hedging Agreement.

		
	9.4
	Default interest

		
	(a)
	If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount on a daily basis  from the due date up to the date of actual payment (both before and after judgment) at a rate which, subject to paragraph (c)‎ below, is 2.00 per cent higher than the rate specified under Clause 9.1 (Calculation of interest).

		
	(b)
	Any interest accruing under this Clause 9.4 shall be immediately payable by the Obligor on demand by the Agent.

		
	(c)
	If any overdue amount consists of all or part of a Loan which became due on a day which was not the last day of an Interest Period relating to that Loan:

		
	(i)
	the first Interest Period for that overdue amount shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and

		
	(ii)
	the rate of interest applying to the overdue amount during that first Interest Period shall be 2.00 per cent. higher than the rate which would have applied if the overdue amount had not become due.

		
	(d)
	Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount at the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable.

		
	9.5
	Notification of rates of interest

The Agent shall promptly notify the Lenders and the relevant Borrower of the determination of a rate of interest under this Agreement.
		
	10.
	INTEREST PERIODS

		
	10.1
	Length of Interest Periods

Each Interest Period for the Loan shall start on the Utilisation Date or (if already made) on the last day of its preceding Interest Period and shall end on the next Interest Payment Date.
		
	10.2
	Non-Business Days

If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).

Page 62

		
	11.
	CHANGES TO THE CALCULATION OF INTEREST

		
	11.1
	Absence of quotations

Subject to Clause 11.2 (Market disruption), if LIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation by the Specified Time on the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.
		
	11.2
	Market disruption

		
	(a)
	If a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the rate of interest on each Lender’s share of that Loan for the Interest Period shall be the percentage rate per annum which is the sum of:

		
	(i)
	the Margin; and

		
	(ii)
	the rate notified to the Agent by that Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Loan from whatever source it may reasonably select.

		
	(b)
	In this Agreement Market Disruption Event means:

		
	(i)
	at or about noon on the Quotation Day for the relevant Interest Period, LIBOR is to be determined by reference to the Reference Banks and none or only one of the Reference Banks supplies a rate to the Agent to determine LIBOR for sterling for the relevant Interest Period; or

		
	(ii)
	before close of business in London on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan exceed 30 per cent. of that Loan) that the cost to it or them of obtaining matching deposits in the Relevant Interbank Market would be in excess of LIBOR.

		
	11.3
	Alternative basis of interest or funding

		
	(a)
	If a Market Disruption Event occurs and the Agent or the Borrower so requires, the Agent and the Borrower shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest.

		
	(b)
	Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the Borrower, be binding on all Parties.

		
	11.4
	Break Costs

		
	(a)
	The Borrower shall, within five Business Days of demand by a Finance Party (such demand to set out the basis of a calculation and total amount of the relevant Break Costs), pay to that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by that Borrower on a day other than 

Page 63

the last day of an Interest Period for that Loan or Unpaid Sum (other than in respect of a prepayment under Clause 8.1 (Illegality)).
		
	(b)
	Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a certificate confirming the calculation and amount of its Break Costs for any Interest Period in which they accrue.

		
	12.
	FEES

		
	12.1
	Commitment fee

		
	(a)
	The Borrower shall pay to the Agent (for the account of each Lender) a fee computed at the rate of 40.0 per cent. of the Margin on that Lender’s Available Commitment for the Availability Period.

		
	(b)
	The accrued commitment fee is payable quarterly in arrears on each Interest Payment Date during the Availability Period, on the last day of the Availability Period and, if cancelled in full, on the cancelled amount of the relevant Lender's Commitment at the time the cancellation is effective.

		
	(c)
	No commitment fee is payable to the Agent (for the account of a Lender) on any Available Commitment of that Lender for any day on which that Lender is a Defaulting Lender.

		
	12.2
	Arrangement fee

The Borrower shall pay to the Arranger an arrangement fee in the amount and at the times agreed in a Fee Letter.
		
	12.3
	Agency fee

		
	(a)
	The Borrower shall pay to the Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter.

		
	(b)
	Notwithstanding the other provisions of this Clause 12.3 or any Fee Letter, if no Utilisation is made under this Agreement, none of the fees referred to in this Clause 12.3 shall be payable.

		
	12.4
	Security Agent fee

		
	(a)
	The Borrower shall pay to the Security Agent (for its own account) a security agency fee in the amount and at the times agreed in a Fee Letter.

		
	(b)
	Notwithstanding the other provisions of this Clause 12.4 or any Fee Letter, if no Utilisation is made under this Agreement, none of the fees referred to in this Clause 12.4 shall be payable.

		
	12.5
	Prepayment and cancellation fee

		
	(a)
	Subject to paragraphs (c) and (d) below, the Borrower must pay to the Agent for each Lender a prepayment fee (the Prepayment Fee) on the date of 

Page 64

prepayment, cancellation,  redemption or discharge (Prepayment Date) of all or any part of the Loan (each a Prepayment).
		
	(b)
	The amount of the Prepayment Fee is:

		
	(i)
	if the Prepayment occurs on or before the fourth Interest Payment Date to occur immediately following the Utilisation Date, 2.00 per cent. of the amount (if any) by which the principal amount prepaid, when aggregated with any other prepayment of the Loan which is potentially subject to the Prepayment Fee under this Clause 12.5 and which has been made prior to the Prepayment Date, exceeds the De Minimis Amount; and

		
	(ii)
	if the Prepayment or cancellation occurs after the fourth Interest Payment Date to occur immediately following the Utilisation Date but on or before the eighth Interest Payment Date to occur immediately following the Utilisation Date, 1.00 per cent. of that amount (if any) by which the principal amount prepaid, when aggregated with any other prepayment of the Loan which is potentially subject to the Prepayment Fee under this Clause 12.5 and which has been made prior to the Prepayment Date, exceeds the De Minimis Amount.

		
	(c)
	No Prepayment Fee shall be payable in respect of any Prepayment made after the eighth Interest Payment Date to occur immediately following the Utilisation Date.

		
	(d)
	No Prepayment Fee shall be payable under this Clause 12.5 and any Prepayment of the Loan shall be disregarded for the purposes of calculating whether the De Minimis Amount has been exceeded if the Prepayment in question is made under Clause 8.1 (Illegality), Clause 8.7 (Right of repayment and cancellation in relation to a single Lender) or sub-paragraphs (a)(ii) to (v) (inclusive) of Clause 8.3 (Mandatory prepayment).

		
	13.
	TAX GROSS UP AND INDEMNITIES

		
	13.1
	Definitions

In this Agreement:
Obligor DTTP Filing means an HM Revenue & Customs Form DTTP2 duly completed and filed by the relevant Obligor, which:
		
	(a)
	where it relates to a Treaty Lender that is an Original Lender, contains the scheme reference number and jurisdiction of tax residence stated opposite that Lender’s name in Part B of Schedule 1 (The Original Parties and Properties), and is filed with HM Revenue and Customs within 30 days of the date of this Agreement; or

		
	(b)
	where it relates to a Treaty Lender that is a New Lender, contains the scheme reference number and jurisdiction of tax residence stated in respect of that 

Page 65

Lender in the relevant Transfer Certificate or Assignment Agreement, and is filed with HM Revenue & Customs within 30 days of that Transfer Date.
Protected Party means a Finance Party which is or will be subject to any liability, or required to make any payment, for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.
Qualifying Lender means:
		
	(a)
	a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document and is:

		
	(i)
	a Lender:

		
	(A)
	which is a bank (as defined for the purpose of section 879 of the ITA) making an advance under a Finance Document and is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance or would be within such charge as respects such payments apart from section 18A of the CTA; or

		
	(B)
	in respect of an advance made under a Finance Document by a person that was a bank (as defined for the purpose of section 879 of the ITA) at the time that that advance was made and within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance; or

		
	(ii)
	a Lender which is:

		
	(A)
	a company resident in the United Kingdom for United Kingdom tax purposes;

		
	(B)
	a partnership each member of which is:

		
	(I)
	a company so resident in the United Kingdom; or

		
	(II)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA;

		
	(C)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits 

Page 66

(within the meaning of section 19 of the CTA) of that company; or
		
	(iii)
	a Treaty Lender; or

		
	(b)
	a Lender which is a building society (as defined for the purpose of section 880 of the ITA) making an advance under a Finance Document.

Tax Confirmation means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is:
		
	(i)
	a company resident in the United Kingdom for United Kingdom tax purposes;

		
	(ii)
	a partnership each member of which is:

		
	(A)
	a company so resident in the United Kingdom; or

		
	(B)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

		
	(iii)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.

Tax Credit means a credit against, relief or remission for, or repayment of any Tax.
Tax Deduction means a deduction or withholding for or on account of Tax from a payment under a Finance Document other than a FATCA Deduction. 
Tax Payment means either the increase in a payment made by an Obligor to a Finance Party under Clause 13.2 (Tax gross-up) or a payment under Clause 13.3 (Tax indemnity).
Treaty Lender means a Lender which:
		
	(i)
	is treated as a resident of a Treaty State for the purposes of the Treaty;

		
	(ii)
	does not carry on a business in the United Kingdom through a permanent establishment with which that Lender’s participation in the Loan is effectively connected; and

		
	(iii)
	fulfils all other conditions in the Treaty for full exemption from Tax imposed by the UK on interest except that for this purpose it shall be assumed that the following are satisfied:

Page 67

		
	(A)
	any condition which relates (expressly or by implication) to there not being a special relationship between the Obligor and a Lender or between both of them and another person, or to the amounts or terms of any Loan or the Finance Documents or to any other matter that is outside the exclusive control of that Lender or to any similar matter that is outside of the control of that Lender and relates to the circumstances of the Obligor; and

		
	(B)
	any necessary procedural formalities. 

Treaty State means a jurisdiction having a double taxation agreement (a Treaty) with the United Kingdom which makes provision for full exemption from tax imposed by the United Kingdom on interest.
UK Non-Bank Lender means:
		
	(i)
	where a Lender becomes a Party on the day on which this Agreement is entered into, a Lender listed in ‎Part C of Schedule 1 (The Original Parties and Properties); and

		
	(ii)
	where a Lender becomes a Party after the day on which this Agreement is entered into, a Lender which gives a Tax Confirmation in the Assignment Agreement or Transfer Certificate which it executes on becoming a Party.

		
	(b)
	Unless a contrary indication appears, in this Clause 13 a reference to determines or determined means a determination made in the absolute discretion of the person making the determination.

		
	(c)
	This Clause 13 shall not apply to any Closing Date Cap Agreement or Extension Cap Agreement.

		
	13.2
	Tax gross-up

		
	(a)
	Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law.

		
	(b)
	The Borrower shall promptly upon becoming aware that an Obligor must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Agent accordingly.  Similarly, a Lender shall promptly notify the Agent on becoming so aware in respect of a payment payable to that Lender.  If the Agent receives such notification from a Lender it shall promptly notify the Borrower and that Obligor.

		
	(c)
	If a Tax Deduction is required by law to be made by an Obligor, the amount of the payment due from that Obligor shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

Page 68

		
	(d)
	A payment shall not be increased under paragraph (c) above by reason of a Tax Deduction on account of Tax imposed by the United Kingdom, if on the date on which the payment falls due:

		
	(i)
	the payment could have been made to the relevant Lender without a Tax Deduction if the Lender had been a Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying Lender other than as a result of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application of) any law or Treaty or any published practice or published concession of any relevant taxing authority; or

		
	(ii)
	the relevant Lender is a Qualifying Lender solely by virtue of paragraph (a)(ii) of the definition of Qualifying Lender; and:

		
	(A)
	an officer of H.M. Revenue & Customs has given (and not revoked) a direction (a Direction) under section 931 of the ITA which relates to the payment and that Lender has received from the Obligor making the payment or from the Borrower a certified copy of that Direction; and

		
	(B)
	the payment could have been made to the Lender without any Tax Deduction if that Direction had not been made; or

		
	(iii)
	the relevant Lender is a Qualifying Lender solely by virtue of paragraph (a)(ii) of the definition of Qualifying Lender and:

		
	(A)
	the relevant Lender has not given a Tax Confirmation to the Borrower; and

		
	(B)
	the payment could have been made to the Lender without any Tax Deduction if the Lender had given a Tax Confirmation to the Borrower, on the basis that the Tax Confirmation would have enabled the Borrower to have formed a reasonable belief that the payment was an “excepted payment” for the purpose of section 930 of the ITA; or

		
	(iv)
	the relevant Lender is a Treaty Lender and the Obligor making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under paragraph (g)‎ below.

		
	(e)
	If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law.

		
	(f)
	Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent for the Finance Party entitled to the payment a statement under section 975 of the ITA or other evidence reasonably satisfactory 

Page 69

to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.
		
	(g)
	(i)    Subject to paragraph (ii) below, a Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is entitled shall use reasonable endeavours to complete any procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction including, without limitation, making or filing an appropriate application for relief under the relevant treaty.

		
	(ii)
	(A)    A Treaty Lender which becomes a Party on the day on which this Agreement is entered into that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence opposite its name in Part B of Schedule 1 (The Original Parties); and

		
	(B)
	a New Lender that is a Treaty Lender that holds a passport under the HMRC DT Treaty Passport scheme, and which wishes that scheme to apply to this Agreement, shall confirm its scheme reference number and its jurisdiction of tax residence in the Transfer Certificate or Assignment Agreement which it executes,

and, having done so, that Lender shall be under no obligation pursuant to paragraph (g)(i) above.
		
	(h)
	If a Lender has confirmed its scheme reference number and its jurisdiction of tax residence in accordance with paragraph (g)(ii) above and:

		
	(i)
	an Obligor making a payment to that Lender has not made a Obligor DTTP Filing in respect of that Lender;

		
	(ii)
	an Obligor making a payment to that Lender has made a Obligor DTTP Filing in respect of that Lender but:

		
	(A)
	that Obligor DTTP Filing has been rejected by HM Revenue & Customs; or

		
	(B)
	HM Revenue & Customs has not given the Obligor authority to make payments to that Lender without a Tax Deduction within 60 days of the date of the Obligor DTTP Filing,

and, in each case, that Obligor has notified that Lender in writing, that Lender and that Obligor shall cooperate in completing any additional procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction.
		
	(iii)
	If a Lender has not confirmed its scheme reference number and jurisdiction of tax residence in accordance with paragraph (g)(ii) above, no Obligor shall make a Obligor DTTP Filing or file any other form 

Page 70

relating to the HMRC DT Treaty Passport Scheme in respect of that Lender’s Commitment or its participation in any Loan unless the Lender otherwise agrees.
		
	(i)
	An Obligor shall, promptly on making a Obligor DTTP Filing, deliver a copy of that Obligor DTTP Filing to the Agent for delivery to the relevant Lender.

		
	(j)
	A UK Non-Bank Lender which becomes a Party on the day on which this Agreement is entered into gives a Tax Confirmation to the Borrower by entering into this Agreement.

		
	(k)
	A UK Non-Bank Lender shall promptly notify the Borrower and the Agent if there is any change in the position from that set out in the Tax Confirmation.

		
	13.3
	Tax indemnity

		
	(a)
	The Borrower shall (within five Business Days of demand by the Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document.

		
	(b)
	Paragraph (a) above shall not apply:

		
	(i)
	with respect to any Tax assessed on a Finance Party:

		
	(A)
	under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as resident for tax purposes; or

		
	(B)
	under the law of the jurisdiction in which that Finance Party’s Facility Office is located in respect of amounts received or receivable in that jurisdiction,

if that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party; or
		
	(ii)
	to the extent a loss, liability or cost:

		
	(A)
	is compensated for by an increased payment under Clause 13.2 (Tax gross‐up);

		
	(B)
	would have been compensated for by an increased payment under Clause 13.2 (Tax gross-up) but was not so compensated solely because one of the exclusions in paragraph (d) of Clause 13.2 (Tax gross-up) applied; or

		
	(C)
	relates to a FATCA Deduction required to be made by a Party.

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	(c)
	A Protected Party making, or intending to make, a claim under paragraph (a)‎ above shall promptly notify the Agent of the event which will give, or has given, rise to the claim, following which the Agent shall notify the Borrower.

		
	(d)
	A Protected Party shall, on receiving a payment from an Obligor under this Clause 13.3, notify the Agent.

		
	13.4
	Tax Credit

If an Obligor makes a Tax Payment and the relevant Finance Party determines that:
		
	(a)
	a Tax Credit is attributable to an increased payment of which that Tax Payment forms part, to that Tax Payment or to a Tax Deduction in consequence of which that Tax Payment was required; and

		
	(b)
	that Finance Party has obtained and utilised that Tax Credit,

the Finance Party shall pay an amount to the Obligor which that Finance Party determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been required to be made by the Obligor.
		
	13.5
	Lender status confirmation

Each Lender which becomes a Party to this Agreement after the date of this Agreement shall indicate, in the Transfer Certificate or Assignment Agreement which it executes on becoming a Party, and for the benefit of the Agent and without liability to any Obligor, which of the following categories it falls in:
		
	(a)
	not a Qualifying Lender;

		
	(b)
	a Qualifying Lender (other than a Treaty Lender); or

		
	(c)
	a Treaty Lender.

If a New Lender fails to indicate its status in accordance with this Clause 13.5 then such New Lender shall be treated for the purposes of this Agreement (including by each Obligor) as if it is not a Qualifying Lender until such time as it notifies the Agent which category applies (and the Agent, upon receipt of such notification, shall inform the Borrower).  For the avoidance of doubt, a Transfer Certificate or Assignment Agreement shall not be invalidated by any failure of a Lender to comply with this Clause ‎13.5.
		
	13.6
	Stamp taxes

The Borrower shall pay and, within five Business Days of demand, indemnify each Secured Party against any cost, loss or liability that Secured Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document (other than in respect of an assignment, transfer or other alienation of any kind by a Finance Party of any of its rights and/or obligations under any Finance Document save where such assignment, transfer or other alienation is at the request of an Obligor).

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	13.7
	VAT

		
	(a)
	All amounts expressed to be payable under a Finance Document by any Party to a Finance Party which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to paragraph (b) below, if VAT is or becomes chargeable on any supply made by any Finance Party to any Party under a Finance Document and such Finance Party is required to account to the relevant Tax Authority for the VAT, that Party must pay to such Finance Party (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of that VAT (and such Finance Party must promptly provide an appropriate VAT invoice to that Party).

		
	(b)
	If VAT is or becomes chargeable on any supply made by any Finance Party (the Supplier) to any other Finance Party (the Recipient) under a Finance Document, and any Party other than the Recipient (the Relevant Party) is required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than being required to reimburse or indemnify the Recipient in respect of that consideration):

		
	(i)
	(where the Supplier is the person required to account to the relevant Tax Authority for the VAT) the Relevant Party must also pay to the Supplier (at the same time as paying that amount) an additional amount equal to the amount of the VAT.  The Recipient must (where this paragraph (i) applies) promptly pay to the Relevant Party an amount equal to any credit or repayment the Recipient receives from the relevant Tax Authority which the Recipient reasonably determines relates to the VAT payable on that supply; and

		
	(vi)
	(where the Recipient is the person required to account to the relevant Tax Authority for the VAT) the Relevant Party must promptly, following demand from the Recipient, pay to the Recipient an amount equal to the VAT chargeable on that supply but only to the extent that the Recipient reasonably determines that it is not entitled to credit or repayment from the relevant Tax Authority in respect of that VAT.

		
	(c)
	Where a Finance Document requires any Party to reimburse or indemnify a Finance Party for any cost or expense, that Party shall reimburse or indemnify (as the case may be) such Finance Party for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that such Finance Party reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant Tax Authority.

		
	(d)
	Any reference in this Clause 13.7 to any Party shall, at any time when such Party is treated as a member of a group for VAT purposes, include (where appropriate and unless the context otherwise requires) a reference to the representative member of such group at such time (the term “representative member” to have the same meaning as in the Value Added Tax Act 1994).

Page 73

		
	(e)
	In relation to any supply made by a Finance Party to any Party under a Finance Document, if reasonably requested by such Finance Party, that Party must promptly provide such Finance Party with details of that Party’s VAT registration and such other information as is reasonably requested in connection with such Finance Party’s VAT reporting requirements in relation to such supply.

		
	13.8
	FATCA Information

		
	(a)
	Subject to paragraph (c) below, each Party shall, within 10 Business Days of a reasonable request by another Party:

		
	(i)
	confirm to that other Party whether it is:

		
	(A)
	a FATCA Exempt Party; or

		
	(B)
	not a FATCA Exempt Party;

		
	(ii)
	supply to that other Party such forms, documentation and other information relating to its status under FATCA as that other Party reasonably requests for the purposes of that other Party’s compliance with FATCA; and

		
	(iii)
	supply to that other Party such forms, documentation and other information relating to its status as that other Party reasonably requests for the purposes of that other Party’s compliance with any other law, regulation, or exchange of information regime.

		
	(b)
	If a Party confirms to another Party pursuant to paragraph 13.8(a)(i) above that it is a FATCA Exempt Party and it subsequently becomes aware that it is not or has ceased to be a FATCA Exempt Party, that Party shall notify that other Party reasonably promptly.

		
	(c)
	Paragraph 13.8(a) above shall not oblige any Finance Party to do anything, and paragraph 13.8(a)(iii) above shall not oblige any other Party to do anything, which would or might in its reasonable opinion constitute a breach of:

		
	(i)
	any law or regulation;

		
	(ii)
	any fiduciary duty; or

		
	(iii)
	any duty of confidentiality.

		
	(d)
	If a Party fails to confirm whether or not it is a FATCA Exempt Party or to supply forms, documentation or other information requested in accordance with paragraph 13.8(a)(i) or (ii) above (including, for the avoidance of doubt, where paragraph (c) above applies), then such Party shall be treated for the purposes of the Finance Documents (and payments under them) as if it is not a FATCA Exempt Party until such time as the Party in question provides the requested confirmation, forms, documentation or other information.

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	(e)
	If an Obligor is a US Tax Obligor or the Agent reasonably believes that its obligations under FATCA or any other applicable law or regulation require it, each Lender shall, within 10 Business Days of:

		
	(i)
	where an Original Obligor is a US Tax Obligor and the relevant Lender is an Original Lender, the date of this Agreement;

		
	(ii)
	where an Obligor is a US Tax Obligor on a Transfer Date and the relevant Lender is a New Lender, the relevant Transfer Date;

		
	(iii)
	the date a new US Tax Obligor accedes as an Obligor; or

		
	(iv)
	where an Obligor is not a US Tax Obligor, the date of a request from the Agent,

supply to the Agent:
		
	(A)
	a withholding certificate on Form W-8, Form W-9 or any other relevant form; or

		
	(B)
	any withholding statement or other document, authorisation or waiver as the Agent may require to certify or establish the status of such Lender under FATCA or that other law or regulation.

		
	(f)
	The Agent shall provide any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Lender pursuant to paragraph (e) above to the relevant Obligor.

		
	(g)
	If any withholding certificate, withholding statement, document, authorisation or waiver provided to the Agent by a Lender pursuant to paragraph (e) above is or becomes materially inaccurate or incomplete, that Lender shall promptly update it and provide such updated withholding certificate, withholding statement, document, authorisation or waiver to the Agent unless it is unlawful for the Lender to do so (in which case the Lender shall promptly notify the Agent). The Agent shall provide any such updated withholding certificate, withholding statement, document, authorisation or waiver to the relevant Obligor.

		
	(h)
	The Agent may rely on any withholding certificate, withholding statement, document, authorisation or waiver it receives from a Lender pursuant to paragraph (e) or (g) above without further verification. The Agent shall not be liable for any action taken by it under or in connection with paragraphs (e), (f) or (g) above.

		
	13.9
	FATCA Deduction

		
	(a)
	Each Party may make any FATCA Deduction it is required to make by FATCA, and any payment required in connection with that FATCA Deduction, and no Party shall be required to increase any payment in respect of which it makes such a FATCA Deduction or otherwise compensate the recipient of the payment for that FATCA Deduction.

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	(b)
	Each Party shall promptly, upon becoming aware that it must make a FATCA Deduction (or that there is any change in the rate or the basis of such FATCA Deduction), notify the Party to whom it is making the payment and, in addition, shall notify the Borrower and the Agent and the Agent shall notify the other Finance Parties.

		
	14.
	INCREASED COSTS

		
	14.1
	Increased costs

		
	(a)
	Subject to Clause 14.3 (Exceptions) the Borrower shall, within five Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation or (ii) compliance with any law or regulation, in each case made after the date of this Agreement.

		
	(b)
	In this Agreement:

Increased Costs means:
		
	(i)
	a generally applicable reduction in the rate of return from the Facility or on a Finance Party’s (or its Affiliate’s) overall capital;

		
	(ii)
	a generally applicable additional or increased cost; or

		
	(iii)
	a reduction of any amount due and payable under any Finance Document,

which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to that Finance Party having entered into its Commitment or funding or performing its obligations under any Finance Document.
Basel III means:
		
	(i)
	the agreements on capital requirements, a leverage ratio and liquidity standards contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework for liquidity risk measurement, standards and monitoring” and Guidance for national authorities operating the countercyclical capital buffer” published by the Basel Committee in December 2010, each as amended;

		
	(ii)
	the rules for global systemically important banks contained in “Global systemically important banks: assessment methodology and the additional loss absorbency requirement – Rules test” published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and

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	(iii)
	any further guidance or standards published by the Basel Committee relating to “Basel III”,

and references to Basel III include any other law or regulation which implements Basel III (whether such implementation, application or compliance is by the European Parliament and the Council of the European Union, a government, regulator, Finance Party or any of its Affiliates).
Basel Committee means the Basel Committee on Banking Supervision.
CRD IV means:
		
	(i)
	Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012; and

		
	(ii)
	Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.

		
	14.2
	Increased cost claims

		
	(a)
	A Finance Party intending to make a claim pursuant to Clause 14.1 (Increased costs) shall notify the Agent of the event giving rise to the claim, following which the Agent shall promptly notify the Borrower.

		
	(b)
	Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a certificate confirming the amount of its Increased Costs.

		
	14.3
	Exceptions

		
	(a)
	Clause 14.1 (Increased costs) does not apply to the extent any Increased Cost is:

		
	(i)
	attributable to a Tax Deduction required by law to be made by an Obligor;

		
	(ii)
	attributable to a FATCA Deduction required to be made by a Party;

		
	(iii)
	compensated for by Clause 13.3 (Tax indemnity) (or would have been compensated for under Clause 13.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in paragraph (b)‎ of Clause 13.3 (Tax indemnity) applied); 

		
	(iv)
	attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or regulation; or

		
	(v)
	attributable to any aspect of Basel III or CRD IV which was reasonably capable of calculation as at the date of this Agreement or in the case of 

Page 77

a Lender (other than an Original Lender) the date of its accession as a Lender.
		
	(b)
	In this Clause 14.3, a reference to a Tax Deduction has the same meaning given to the term in Clause 13.1 (Definitions).

		
	15.
	OTHER INDEMNITIES

		
	15.1
	Currency indemnity

		
	(a)
	If any sum due from an Obligor under the Finance Documents (a Sum), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the First Currency) in which that Sum is payable into another currency (the Second Currency) for the purpose of:

		
	(i)
	making or filing a claim or proof against that Obligor; or

		
	(ii)
	obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,

that Obligor shall as an independent obligation, within three Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.
		
	(b)
	Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable.

		
	15.2
	Other indemnities

The Borrower shall (or shall procure that an Obligor will), and in the case of paragraph (c) below (but subject always to the provisions of Clause 2.4), the Indemnitor shall within five Business Days of demand, indemnify each Secured Party against any cost, loss or liability incurred by that Secured Party as a result of:
		
	(a)
	the occurrence of any Event of Default;

		
	(b)
	a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause ‎32 (Sharing among the Finance Parties);

		
	(c)
	funding, or making arrangements to fund, its participation in a Loan requested by the Indemnitor in a Utilisation Request (including for this purpose the funding of the requested Loan into the Escrow Account) but not made by reason of:

		
	(i)
	the Escrow Agreement not coming into full force and effect;

		
	(ii)
	the operation of any one or more of the provisions of the Escrow Agreement;

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	(iii)
	the Original Obligors failing to accede to this Agreement as Original Obligors on the Closing Date; or

		
	(iv)
	the operation of any one or more of the provisions of this Agreement,

in each case, other than by reason of default or negligence by that Secured Party alone; or
		
	(d)
	a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by an Obligor or the Borrower.

		
	15.3
	Indemnity to the Agent

		
	(a)
	Each Obligor jointly and severally shall, and in the case of paragraphs (i)(B) and (ii) below (but subject always to the provisions of Clause 2.4) the Indemnitor shall, within five Business Days of demand, indemnify the Agent against:

		
	(i)
	any cost, loss or liability incurred by the Agent (acting reasonably) as a result of:

		
	(A)
	investigating any event which it reasonably believes is a Default; or

		
	(B)
	acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised; or

		
	(C)
	instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as permitted under this Agreement; and

		
	(ii)
	any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by the Agent (otherwise than by reason of the Agent’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause 33.11 (Disruption to Payment Systems etc.) notwithstanding the Agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent under the Finance Documents.

		
	(b)
	This Clause 15.3 shall survive in full force and effect notwithstanding the termination of this Agreement or the resignation or termination of the Agent.

		
	15.4
	Indemnity to the Security Agent

		
	(a)
	Each Obligor jointly and severally shall promptly, within five Business Days of demand, indemnify the Security Agent and every Receiver and Delegate against any cost, loss or liability incurred by any of them as a result of:

		
	(i)
	any failure by the Borrower to comply with its obligations under Clause 17 (Costs and expenses);

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	(ii)
	acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised;

		
	(iii)
	the taking, holding, protection or enforcement of the Transaction Security;

		
	(iv)
	the exercise of any of the rights, powers, discretions, authorities and remedies vested in the Security Agent and each Receiver and Delegate by the Finance Documents or by law; or

		
	(v)
	any default by any Transaction Obligor in the performance of any of the obligations expressed to be assumed by it in the Finance Documents;

		
	(vi)
	instructing lawyers, accountants, tax advisers, surveyors or other professional advisers or experts as permitted under this Agreement; or

		
	(vii)
	acting as Security Agent, receiver or Delegate under the Finance Documents or which otherwise relates to any of the Security Property (otherwise, in each case,  than by reason of the relevant Security Agent’s, Receiver’s or Delegate’s gross negligence or wilful misconduct).

		
	(b)
	The Security Agent and every Receiver and Delegate may, in priority to any payment to the Secured Parties, indemnify itself out of the Security Assets in respect of, and pay and retain, all sums necessary to give effect to the indemnity in this Clause 15.4 and shall have a lien on the Transaction Security and the proceeds of the enforcement of the Transaction Security for all moneys payable to it.

		
	(c)
	This Clause 15.4 shall survive in full force and effect notwithstanding the termination of this Agreement or the resignation or termination of the Security Agent.

		
	16.
	MITIGATION BY THE LENDERS

		
	16.1
	Mitigation

		
	(a)
	Each Finance Party shall, in consultation with the Borrower, take all reasonable steps to mitigate any circumstances which arise and which would result in the Facility ceasing to be available or any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause ‎8.1 (Illegality), Clause 13‎ (Tax gross up and indemnities) or Clause ‎14 (Increased costs) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.

		
	(b)
	Paragraph (a) above does not in any way limit the obligations of any Obligor under the Finance Documents.

		
	16.2
	Limitation of liability

Page 80

		
	(a)
	The Borrower shall promptly, within five Business Days of demand, indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause ‎16.1 (Mitigation).

		
	(b)
	A Finance Party is not obliged to take any steps under Clause ‎16.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

		
	17.
	COSTS AND EXPENSES

		
	17.1
	Transaction expenses

The Borrower shall promptly within five Business Days of demand, pay each of the Agent, the Arranger and the Security Agent the amount of all costs and expenses (including legal fees) reasonably incurred by any of them (and, in the case of the Security Agent, by any Receiver or Delegate) in connection with the negotiation, preparation, printing, execution and perfection of:
		
	(a)
	this Agreement and any other documents referred to in this Agreement or in a Security Document; and

		
	(b)
	any other Finance Documents executed after the date of this Agreement,

excluding, in each case, any costs, fees and expenses (including legal fees) incurred by the Agent, the Arranger and/or the Security Agent in connection with any of the transactions contemplated under Clause 23.17 (Syndication, Securitisation, Bond Issues etc.), with such costs, fees and expenses being payable by the relevant Finance Party having incurred such costs (or as agreed between the relevant Finance Parties).
		
	17.2
	Amendment costs

		
	(a)
	If:

		
	(i)
	an Obligor requests an amendment, waiver or consent; or

		
	(ii)
	an amendment is required pursuant to Clause ‎33.10 (Change of currency),

subject to paragraph (b) below, the Borrower shall, within three Business Days of demand, reimburse each of the Agent and the Security Agent for the amount of all costs and expenses (including legal fees) reasonably incurred by the Agent or the Security Agent (and, in the case of the Security Agent, by any Receiver or Delegate) in responding to, evaluating, negotiating or complying with that request or requirement.
		
	(b)
	The Borrower shall not be required to reimburse any Finance Party (or any Receiver or Delegate of the Security Agent) for any costs or expenses (including, without limitation, legal fees, transfer costs and taxes) incurred by such Finance Party (or, if applicable, such Receiver or Delegate) pursuant to paragraph (a) above if such costs or expenses have been incurred in connection with any of the transactions contemplated under Clause 23.17 (Syndication, Securitisation, 

Page 81

Bond Issues etc.), with such costs and expenses being payable by the relevant Finance Party (or, if applicable, any Receiver or Delegate) having incurred such costs (or as agreed between the relevant Finance Parties).   
		
	17.3
	Valuations

		
	(a)
	The Borrower shall deliver a Valuation to the Agent (in sufficient copies for all the Lenders):

		
	(i)
	in the case of the first Valuation to be delivered under this paragraph (a) following the Utilisation Date, no later than the date falling 18 months from the Utilisation Date (the First Valuation); and

		
	(ii)
	annually in the case of each other Valuation no later than the anniversary of the date of delivery of the First Valuation. 

		
	(b)
	The Agent (acting on the instructions of the Majority Lenders) may request a Valuation at any time. 

		
	(c)
	The Borrower shall promptly on demand pay to the Agent the costs of:

		
	(i)
	the Closing Valuation;

		
	(ii)
	a Valuation delivered pursuant to paragraph (a) above;

		
	(iii)
	a Valuation obtained by the Agent in connection with the compulsory purchase of all or part of any Property; and

		
	(iv)
	at any time when an Event of Default is continuing or is likely to occur as a result of obtaining Valuation provided that such Valuation shows that an Event of Default has occurred.

		
	(d)
	The Borrower must supply to the Agent a copy of any valuation of any Property an Obligor obtains, promptly upon obtaining it.

		
	(e)
	Any Valuation not referred to in paragraph (c)‎ above will be at the cost of the Lenders.

		
	(f)
	Any Valuation delivered by or on behalf of the Borrower in accordance with this Clause 17.3 shall be dated no more than two months prior to the date of its delivery to the Agent.

		
	17.4
	Enforcement and preservation costs

The Borrower shall, within five Business Days of demand, pay to each Finance Party the amount of all costs and expenses (including but not limited to legal fees) incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document or the Transaction Security and with any proceedings instituted by or against that Finance Party as a consequence of it entering into a Finance Document, taking or holding the Transaction Security, or enforcing those rights.
		
	17.5
	Transaction Obligor/Indemnitor costs

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The Arranger shall promptly, within five Business Day of demand, pay or procure payment to each Transaction Obligor and the Indemnitor the amount of all costs, fees and expenses (including legal fees) reasonably incurred by any of them in connection with their compliance with the provisions of, and any of the transactions contemplated under, Clause 23.17  (Syndication, Securitisation, Bond Issues etc.), including for the avoidance of doubt any costs, fees or expenses incurred in connection with the negotiation, preparation, printing, execution and perfection of any additional Finance Documents required or requested by the Arranger in connection with the Sell-Down.  
		
	18.
	BANK ACCOUNTS

		
	18.1
	Designation of Accounts

		
	(a)
	The Obligors shall maintain the following bank accounts in the name of the Borrower:

		
	(i)
	a rental income account designated the “Rental Income Account”;

		
	(ii)
	a mandatory prepayment account designated the “Mandatory Prepayment Account”;

		
	(iii)
	a cash trap account designated the “Cash Trap Account”;

		
	(iv)
	an LTV cure account designated the “LTV Cure Account”;

		
	(v)
	a DSCR cure account designated the “DSCR Cure Account”;

		
	(vi)
	a reserves account designated the “Reserves Account”;

		
	(vii)
	a special reserves account designated the “Special Reserves Account”; 

		
	(viii)
	a collection account designated the “Collection Account” and 

		
	(ix)
	a current account designated the “General Account”.

		
	(b)
	No Obligor may, without the prior written consent of the Agent (acting on the instructions of the Majority Lenders), maintain any bank account other than those listed in Clause 18.1(a) above.

		
	18.2
	Account bank

		
	(a)
	Subject to paragraphs (b) and (c) below, each Account maintained by the Borrower must be held:

		
	(i)
	in England with an Acceptable Bank; or

		
	(ii)
	at any other bank selected by the relevant Obligor which has a Requisite Rating and which is approved in writing by the Agent, acting reasonably,

and which provides to the Agent customary documentation in relation to the opening and operation of such account as envisaged by the provisions of this Agreement and reasonably acceptable to the Agent. 
		
	(b)
	The Borrower shall:

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	(i)
	promptly notify the Agent upon becoming aware that a bank at which an Account is held fails to be an Acceptable Bank;

		
	(ii)
	take all necessary steps to designate as Account Bank a new bank that satisfies the requirements of paragraph (a)(ii) above and close the previous Account as soon as reasonably practicable and in any event no later than 60 days after it becomes aware that such bank fails to be an Acceptable Bank; and

		
	(iii)
	as soon as reasonably practicable following the receipt by it of the details of the new Account, instruct the tenants under the Lease Agreements to cease making payments or deliveries into the previous Account and to make payments or deliveries into the new Account.

		
	(c)
	The replacement (or opening of) an Account will only become effective when the relevant bank agrees with the Agent and the Borrower to fulfil the role of the bank holding that Account (including agreeing, to the extent required to ensure the effectiveness of any Security granted by the relevant Obligor over the relevant Account, to and acknowledging any Security granted by the relevant Obligor over that Account in favour of the Security Agent).

		
	(d)
	Each Obligor shall do all such things as the Agent reasonably requests in order to facilitate any closure or opening of an Account in accordance with paragraph (c) above (including the execution of appropriate bank mandate forms and the granting of any Security in favour of the Security Agent (which, in relation to the opening of any replacement Account shall be equivalent to the Security granted over the relevant Account which was has been replaced)).

		
	18.3
	Rental Income Account

		
	(a)
	The Agent has sole signing rights in relation to the Rental Income Account.

		
	(b)
	(i)    Each Obligor must ensure that:

		
	(A)
	all Rental Income is; and

		
	(B)
	any amounts payable to it under the Closing Date Cap and any Extension Cap are,

paid into the Rental Income Account.
		
	(ii)
	Paragraph (b)(i) above shall not apply to Lease Prepayment Proceeds.

		
	(c)
	If any payment of any amount referred to above is paid into an Account other than the Rental Income Account, that payment must be paid immediately into the Rental Income Account. 

		
	(d)
	On any day on which an amount is due under a Headlease, the Agent shall and is irrevocably authorised by each Obligor to:

		
	(i)
	withdraw from the Rental Income Account an amount necessary to meet that due amount; and

Page 84

		
	(ii)
	apply that amount in payment of that due amount.

		
	(e)
	To the extent that any Rental Income constituting Tenant Contributions is paid into the Rental Income Account, the Agent shall, and is irrevocably authorised by the Borrower to, withdraw all amounts equal to such Tenant Contribution from the Rental Income Account and promptly pay them into the Collections Account.  

		
	(f)
	Except as provided in Clause ‎33.6 (Partial payments) and paragraph (g) below, on each Interest Payment Date, the Agent shall (and is irrevocably authorised by the Borrower to) withdraw from, and apply amounts then standing to the credit of the Rental Income Account as follows:

		
	(i)
	first, in or towards payment pro rata of any unpaid amounts owing in respect of all remuneration, liabilities, costs, fees and expenses (including any amount representing VAT chargeable in respect of the same) then due and payable to the Agent, the Arranger and/or the Security Agent under the Finance Documents;

		
	(ii)
	second, to pay all costs, fees and expenses (including any amount representing VAT chargeable in respect of the same) then due and payable to the Lenders under the Finance Documents;

		
	(iii)
	third, to pay to the Agent for the account of the Lenders any accrued interest and fees due but unpaid under this Agreement;

		
	(iv)
	fourth, to pay to the Agent for the account of the Lenders any principal due but unpaid under this Agreement;

		
	(v)
	fifth, to pay any other sum due but unpaid to the Finance Parties under the Finance Documents;

		
	(vi)
	sixth, to pay the Ongoing Maintenance Reserve for the quarter expiring on that Interest Payment Date to the Reserves Account;

		
	(vii)
	seventh, to pay any other sum required to be paid to the Special Reserves Account in accordance with Clause 18.8(b) (Special Reserves Account); and

		
	(vii)
	eighth, if:

		
	(A)
	all of the Cash Release Conditions are satisfied, the amount standing to the credit of the Rental Income Account shall be paid into the General Account; or

		
	(B)
	any of the Cash Release Conditions is not satisfied, the amount standing to the credit of the Rental Income Account shall be paid into the Cash Trap Account.

		
	(g)
	The Agent is obliged to make a withdrawal from the Rental Income Account in accordance with:

Page 85

		
	(i)
	paragraphs (d), (e) and (f)(vi) to (viii) (inclusive) above only if no Event of Default is continuing; and

		
	(ii)
	sub-paragraphs (f)(i) to (v) (inclusive) above only if notice has not been given in accordance with Clause 25.20 (Acceleration).

		
	18.4
	Mandatory Prepayment Account

		
	(a)
	The Agent has sole signing rights in relation to the Mandatory Prepayment Account.

		
	(b)
	The Borrower must ensure that all Net Disposal Proceeds (and, if applicable, any Disposal Proceeds Shortfall Amount) are paid directly into the relevant Mandatory Prepayment Account in accordance with Clause 23.5 (Disposals).

		
	(c)
	The Obligors must ensure that the following are promptly upon receipt paid into the Mandatory Prepayment Account:

		
	(i)
	all Lease Prepayment Proceeds;

		
	(ii)
	all Insurance Prepayment Proceeds;

		
	(iii)
	all Compensation Prepayment Proceeds; and

		
	(iv)
	all Recovery Prepayment Proceeds.

		
	(d)
	Except as provided in Clause ‎33.6 (Partial payments) and paragraph (e) below, on each Interest Payment Date, or earlier at the request of the Borrower if it gives the Agent not less than five Business Days’ notice, the Agent must withdraw from, and apply amounts standing to the credit of, the Mandatory Prepayment Account in accordance with Clause 8.3 (Mandatory prepayment).

		
	(e)
	The Agent is obliged to make a withdrawal from the Mandatory Prepayment Account in accordance with paragraph (d) above only if:

		
	(i)
	with respect to any withdrawal from the Mandatory Prepayment Account to be applied in accordance with paragraphs (a)(i) or (b) of Clause 8.4 (Application of mandatory prepayments), not notice has been given under 25.20 (Acceleration); or 

		
	(ii)
	with respect to any withdrawal from the Mandatory Prepayment Account to be applied in accordance with paragraph (a)(ii) of Clause 8.4 (Application of mandatory prepayments), no Event of Default is continuing.

		
	18.5
	Cash Trap Account

		
	(a)
	The Agent has sole signing rights in relation to the Cash Trap Account.

		
	(b)
	The Agent shall pay amounts in to the Cash Trap Account in accordance with:

		
	(i)
	sub-paragraph (a)(ii)(B) of Clause 8.4 (Application of mandatory prepayments); and

Page 86

		
	(ii)
	sub-paragraph (f)(viii) of Clause 18.3 (Rental Income Account).

		
	(c)
	If on two consecutive Interest Payment Dates all of the Cash Release Conditions are satisfied (excluding any Cash Trap Amount in any calculations or determinations made for this purpose), the amount then standing to the credit of the Cash Trap Account shall, following a written request from the Borrower to the Agent, be withdrawn from that Account and paid in to the General Account.

		
	(d)
	If at any time an Event of Default is continuing then the Agent may, and is irrevocably authorised by the Borrower to, withdraw the amounts then standing to the credit of the Cash Trap Account and apply such amounts in prepayment of the Loan in accordance with Clause 8.3 (Mandatory prepayment).

		
	(e)
	The Agent is obliged to make a withdrawal from the Cash Trap Account in accordance with paragraph (c) above only if no Event of Default is continuing.

		
	18.6
	LTV Cure Account

		
	(a)
	The Agent shall have sole signing rights in relation to the LTV Cure Account.

		
	(b)
	The Borrower shall ensure that all amounts paid by way of exercise of cure rights in accordance with paragraph (b)(ii) of Clause 22.3 (Loan to Value) are paid into the LTV Cure Account.

		
	(c)
	If on two consecutive Test Dates (excluding the Test Date in respect of which the cure was made) all of the Cash Release Conditions are satisfied (excluding in any calculations or determinations for this purpose any amount standing to the credit of the LTV Cure Account and any Cash Trap Amount), following written request by the Borrower, the Agent shall withdraw the amounts then standing to the credit of the LTV Cure Account and pay them into the General Account.

		
	(d)
	If on two consecutive Interest Payment Dates any of the covenants set out in Clause 22 (Financial Covenants) is not satisfied (excluding in any calculations or determinations made for this purpose any Cure Amount and any Cash Trap Amount), the Agent shall withdraw the amount then standing to the credit of the LTV Cure Account and apply such amount in prepayment of the Loan in accordance with Clause 8.3 (Mandatory prepayment).

		
	(e)
	If at any time an Event of Default is continuing then the Agent may, and is irrevocably authorised by the Borrower to, withdraw the amounts then standing to the credit of the LTV Cure Account and apply such amounts in prepayment of the Loan in accordance with Clause 8.3 (Mandatory prepayment).

		
	(f)
	The Agent is obliged to make a withdrawal from the LTV Cure Account in accordance with paragraph (c) above only if no Event of Default is continuing.

		
	18.7
	DSCR Cure Account

		
	(a)
	The Agent shall have sole signing rights in relation to the DSCR Cure Account.

Page 87

		
	(b)
	The Borrower shall ensure that all amounts paid by way of exercise of cure rights in accordance with paragraph (b) of Clause 22.2 (Debt Service Coverage Ratio) are paid into the DSCR Cure Account.

		
	(c)
	If on two consecutive Test Dates (excluding the Test Date in respect of which the cure was made) all of the Cash Release Conditions are satisfied (excluding in any calculations or determinations for this purpose any Cure Amount and any Cash Trap Amount), following written request by the Borrower, the Agent shall withdraw the amounts then standing to the credit of the DSCR Cure Account and pay them into the General Account.

		
	(d)
	If on two consecutive Interest Payment Dates any of the covenants set out in Clause 22 (Financial Covenants) is not satisfied (excluding in any calculations or determinations made for this purpose any Cure Amount and any Cash Trap Amount), the Agent shall withdraw the amount then standing to the credit of the DSCR Cure Account and apply such amount in prepayment of the Loan in accordance with Clause 8.3 (Mandatory prepayment).

		
	(e)
	If at any time an Event of Default is continuing then the Agent may, and is irrevocably authorised by the Borrower to, withdraw the amounts then standing to the credit of the DSCR Cure Account and apply such amounts in prepayment of the Loan in accordance with Clause 8.3 (Mandatory prepayment).

		
	(f)
	The Agent is obliged to make a withdrawal from the DSCR Cure Account in accordance with paragraph (c) above only if no Event of Default is continuing.

		
	18.8
	Reserves Account

		
	(a)
	The Agent has sole signing rights in relation to the Reserves Account.

		
	(b)
	The Ongoing Maintenance Reserve shall be paid into the Reserves Account in accordance with sub-paragraph (f)(vi) of Clause 18.3 (Rental Income Account)).

		
	(c)
	The Borrower may request in writing to the Agent to withdraw an amount standing to the credit of the Reserves Account which is attributable to the Deferred Maintenance and Environmental Conditions Reserve in order to finance works in respect of which a Deferred Maintenance and Environmental Conditions Reserve was made.  The Lenders shall approve such request and shall instruct the Agent to withdraw and pay such amount into the General Account provided that the Borrower has supplied to the Agent:

		
	(i)
	a certificate from a relevant party carrying out such works or supplying any materials in respect of such works; or

		
	(ii)
	to the extent that the information set out in sub-paragraph (i) is not available, such other documentation as the Agent (acting on the instructions of the Majority Lenders, acting reasonably) may require in connection with such works,

Page 88

in each case, in form and substance satisfactory to the Agent (acting reasonably) and confirming that the relevant amount is payable in connection with the relevant works.
		
	(d)
	The Borrower may request in writing to the Agent to withdraw the amount standing to the credit of the Reserves Account which is attributable to the Hedging Reserve in order to finance the premium payable in respect of the entry by the Borrower into the Closing Date Cap and the Agent shall pay an amount equal to the Hedging Reserve into the General Account.

		
	(e)
	The Borrower may request in writing to the Agent to withdraw an amount standing to the credit of the Reserves Account which is attributable to the Ongoing Maintenance Reserve in order to finance maintenance works which a Tenant has failed to carry out in accordance with the terms of the relevant Lease Document.  The Lenders shall approve such request and shall instruct the Agent to withdraw and pay such amount into the General Account provided that the amount standing to the credit of the Reserves Account immediately following such withdrawal would not be less than £1,600,000 and the Borrower has supplied to the Agent:

		
	(i)
	a certificate from a relevant party carrying out such works or supplying any materials in respect of such works; or

		
	(ii)
	to the extent that the information set out in sub-paragraph (i) is not available, such other documentation as the Agent (acting on the instructions of the Majority Lenders, acting reasonably) may require in connection with such works,

in each case, in form and substance satisfactory to the Agent (acting reasonably) and confirming that the relevant amount is payable in connection with the relevant works; and
		
	(iii)
	a certificate from the Borrower certifying that the relevant Tenant has failed to carry out the relevant maintenance works in accordance with the terms of the relevant Lease Document.

		
	(f)
	If, at any time, all or any part of the works in respect of which a Deferred Maintenance and Environmental Conditions Reserve was made have been completed to the satisfaction of the Agent (acting reasonably), the Borrower may request in writing to the Agent that all amounts attributable to such works under the Deferred Maintenance and Environmental Conditions Reserve which are standing  to the credit of the Reserves Account be transferred to the General Account and the Agent shall withdraw such amounts from the Reserves Account and pay them into the General Account.

		
	(g)
	The Agent is obliged to make a withdrawal from the Reserves Account in accordance with paragraphs (c), (e) and (f) above only if no Event of Default is continuing.

Page 89

		
	(h)
	The Borrower may request in writing to the Agent to withdraw the Radon Reserve Relevant Amount in respect of a Property standing to the credit of the Reserves Account.  The Lenders shall approve such request and shall instruct the Agent to withdraw that Radon Reserve Relevant Amount and pay such amount into the General Account provided that the Borrower has supplied to the Agent a certificate (in form and substance satisfactory to the Agent (acting reasonably)) confirming that no Event of Default is continuing at such time and:

		
	(i)
	a copy of the Radon Sampling results indicating radon levels below the UK action level of 200 Bq/m^3 in respect of the relevant Property; or

		
	(ii)
	a certificate provided by the Environmental Professional certifying that a Radon Mitigation System has been installed and is operational at the relevant Property.

		
	(i)
	The Borrower may request in writing to the Agent to withdraw the Above-Ground Storage Tank Reserve standing to the credit of the Reserves Account.  The Lenders shall approve such request and shall instruct the agent to withdraw that Above-Ground Storage Tank Reserve and pay such amount into the General Account provided that the Borrower has supplied to the Agent (in form and substance satisfactory to the Agent (acting reasonably)) a certificate confirming that no Event of Default is continuing at such time and the Agent has received evidence satisfactory to it (acting reasonably) that the secondary containment has been installed for the Above-Ground Storage Tanks at the Properties known as Hulcott Nursing Home and Cedar House Care Home in accordance with Clause 24.14 (Above-Ground Storage Tanks).

		
	(j)
	The Borrower may request in writing to the Agent to withdraw the Underground Storage Tank Reserve in respect of any relevant Property standing to the credit of the Reserves Account.  The Lenders shall approve such request and instruct the Agent to withdraw that Underground Storage Tank Reserve in respect of such Property and pay such amount into the General Account provided that the Borrower has supplied to the Agent a certificate confirming that no Event of Default is continuing at such time and the Agent has received each of the following (in form and substance satisfactory to it (acting reasonably)):

		
	(i)
	a copy of the Investigation Report confirming that no Underground Storage Tanks are present in respect of the relevant Property;

		
	(ii)
	a copy of the UST Closure Report and the UST Professional's written certification that the Closure Work has been completed in accordance with all applicable laws and no further investigation or action is required in respect of the relevant Property; or 

		
	(iii)
	in the event Releases associated with an Underground Storage Tank were identified in the UST Closure Report in respect of the relevant Property, the UST Professional's written certification that all of the Remediation Work has been satisfactorily completed and no further investigation, remediation or other action is required under 

Page 90

environmental law or otherwise prudent to protect human health or safety or the environment; and, if reporting to a government agency is required, documentation from the government agency that no further action is required.
		
	(k)
	The Borrower may request, upon five Business Days’ written notice to the Agent, to withdraw an amount standing to the credit of the Reserves Account which is attributable to the Ongoing Maintenance Reserve and the Agent shall withdraw and pay such amount into the General Account provided that:

		
	(i)
	the amount standing to the credit of the Reserves Account which is attributable to the Ongoing Maintenance Reserve immediately following such withdrawal would not be less than £1,600,000; 

		
	(ii)
	such notice is delivered by the Borrower no later than 10 Business Days after receipt by the Borrower of a Tenant Annual Capex Report and a copy of such Tenant Annual Capex Report is attached to such notice;

		
	(iii)
	such Tenant Annual Capex Report sets out reasonable details as to the maintenance works that the Tenant has carried out in respect of the Properties in the calendar year to which the Tenant Annual Capex Report relates and the amounts expended by the Tenant on such works;

		
	(iv)
	the amount requested by the Borrower to be withdrawn from the Reserves Account which is attributable to the Ongoing Maintenance Reserve does not exceed the amount disclosed in the relevant Tenant Annual Capex Report as having been expended by the Tenant in respect of maintenance works in respect of the Properties during the year to which the report relates; and

		
	(v)
	no Event of Default is continuing at the time the relevant amount is requested by the Borrower to be withdrawn from the Reserves Account.

		
	(l)
	At any time when an Event of Default is continuing, the Agent may withdraw from, and apply amounts standing to the credit of, the Reserves Account in or towards any purpose for which moneys in any Account may be applied.

		
	18.9
	Special Reserves Account

		
	(a)
	The Agent has sole signing rights in relation to the Special Reserves Account.

		
	(b)
	The Obligors must ensure that the amounts required to be paid into the Special Reserves Account to fund any Special Reserves Shortfall are paid into the Special Reserves Account in accordance with Clause 5.3 (Special Reserves).

		
	(c)
	The Borrower may request in writing to the Agent to withdraw an amount standing to the credit of the Special Reserves Account in order to remedy a Closing Defect in respect of which a Special Reserve was made.  The Lenders shall approve such request and shall instruct the Agent to withdraw and pay such amount into the General Account if the Borrower has supplied to the Agent:

Page 91

		
	(i)
	a certificate from a relevant party carrying out any works or supplying any materials, in each case to remedy any Closing Defect; or 

		
	(ii)
	to the extent that the information set out in sub-paragraph (i) above is not available, such other documentation as the Agent (acting on the instructions of the Majority Lenders, acting reasonably) may require in connection with such works,

in each case, in form and substance satisfactory to the Agent (acting reasonably) and confirming that the relevant amount is payable in connection with the relevant works.
		
	(d)
	If, at any time, all or any part of the Closing Defects in respect of which a Special Reserve was made have been remedied to the satisfaction of the Agent (acting reasonably), the Borrower may request in writing to the Agent that all amounts attributable to such Closing Defect standing to the credit of the Special Reserves Account be transferred to the General Account and the Agent shall withdraw such amounts from the Special Reserves Account and pay those amounts into the General Account.

		
	(e)
	The Agent is obliged to make a withdrawal from the Special Reserves Account in accordance with paragraphs (c) and (d) above only if no Event of Default is continuing.

		
	(f)
	At any time when an Event of Default is continuing, the Agent may withdraw from, and apply amounts standing to the credit of, the Special Reserves Account in or towards any purpose for which moneys in any Account may be applied.

		
	18.10
	General Account

		
	(a)
	Except as provided in paragraph (e) below, the Borrower has signing rights in relation to the General Account.

		
	(b)
	Subject to any applicable legal restrictions or impediments, each Obligor must ensure that any other amount received or receivable by it, other than any amount specifically required under this Agreement to be paid into any other Account, is paid into the General Account.

		
	(c)
	The Borrower shall promptly apply any amount paid into the General Account:

		
	(i)
	pursuant to Clause 18.8(c) (Reserves Account) in payment to the relevant party carrying out the works or supplying any materials in respect of the works in respect of which the relevant Deferred Maintenance and Environmental Conditions Reserve was made;

		
	(ii)
	pursuant to Clause 18.8(d) (Reserves Account) in payment of the premium payable in respect of the Closing Date Cap to the relevant Hedge Counterparty;

		
	(iii)
	pursuant to Clause 18.8(e) (Reserves Account) in payment to the relevant party carrying out the works or supplying any materials in 

Page 92

respect of the works which the relevant amount was paid into the General Account to fund; and
		
	(iv)
	pursuant to Clause 18.9(c) (Special Reserves Account) in payment to the relevant party carrying out the works or supplying any materials in respect of the works in respect of which the relevant Special Reserve was made.

		
	(d)
	Except as provided in paragraph (e) below and subject to:

		
	(i)
	any restriction in any Subordination Agreement; and

		
	(ii)
	the requirement that amounts paid into a General Account for a particular purpose must be used for that purpose,

the Borrower may withdraw any amount from its General Account and utilise such funds for any purpose and in making payment to any person.
		
	(e)
	At any time when an Event of Default is continuing, the Agent may:

		
	(i)
	operate the General Account;

		
	(ii)
	notify each Obligor that its rights to operate the General Account are suspended, such notice to take effect in accordance with its terms; and

		
	(iii)
	withdraw from, and apply amounts standing to the credit of, the General Account in or towards any purpose for which moneys in any Account may be applied.

		
	18.11
	Collection Account

		
	(a)
	Except as provided in paragraph (d) below, the Borrower has signing rights in relation to the Collection Account.

		
	(b)
	The Borrower must ensure that all Tenant Contributions are paid into the Collection Account or, if they are paid into the Rental Income Account, the Agent shall, and is irrevocably authorised by the Borrower to, withdraw all amounts equal to such Tenant Contributions from the Rental Income Account and promptly pay them into the Collections Account.  

		
	(c)
	Except as provided in paragraph (d) below and subject to:

		
	(i)
	any restriction in any Subordination Agreement; and 

		
	(ii)
	the requirement that amounts paid into a Collection Account for a particular purpose must be used for that purpose,

the Borrower may withdraw any amount from the Collection Account for any purpose for which those Tenant Contributions have been paid, with any surplus to be applied in accordance with the relevant Occupational Lease.
		
	(d)
	At any time when an Event of Default is continuing, the Agent may:

		
	(i)
	operate the Collection Account; 

Page 93

		
	(ii)
	notify the Borrower that its right to operate the Collection Account are suspended, such notice to take effect in accordance with its terms; and 

		
	(iii)
	withdraw from, and apply amounts standing to the credit of, the Collection Account in or towards any purpose for which moneys in any Account may be applied.

		
	18.12
	Miscellaneous Accounts provisions

		
	(a)
	The Borrower must ensure that no Account goes into overdraft.

		
	(b)
	Any amount received or recovered by an Obligor otherwise than by credit to an Account must promptly be paid to the relevant Account or to the Agent in the same funds as received or recovered.

		
	(c)
	If any payment is made into an Account in relation to which the Agent has sole signing rights which should have been paid into another Account, then, unless an Event of Default is continuing, the Agent must, at the request of the Borrower and on receipt of evidence satisfactory to the Agent that the payment should have been made to that other Account, pay that amount to that other Account.

		
	(d)
	Following an Event of Default the moneys standing to the credit of an Account may be applied by the Agent in payment of any amount due but unpaid to a Finance Party under the Finance Documents.

		
	(e)
	No Finance Party is responsible or liable to any Obligor for:

		
	(i)
	any non-payment of any liability of an Obligor which could be paid out of moneys standing to the credit of an Account; or

		
	(ii)
	any withdrawal wrongly made, if made in good faith.

		
	(f)
	The Borrower must, provided such information is available to it pursuant to the terms upon which the relevant Account is operated as required by the Finance Documents, within five Business Days of any request by the Agent, supply the Agent with the following information in relation to any payment received in an Account:

		
	(i)
	the date of payment or receipt;

		
	(ii)
	the payer; and

		
	(iii)
	the purpose of the payment or receipt.

		
	19.
	GUARANTEE AND INDEMNITY

		
	19.1
	Guarantee and indemnity

Each Obligor irrevocably and unconditionally jointly and severally:
		
	(a)
	guarantees to each Finance Party punctual performance by each Obligor of all that Obligor’s obligations under the Finance Documents;

Page 94

		
	(b)
	undertakes with each Finance Party that whenever another Obligor does not pay any amount when due under or in connection with any Finance Document, that Obligor shall promptly on demand pay that amount as if it was the principal obligor; and

		
	(c)
	agrees with each Finance Party that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify that Finance Party promptly on demand against any cost, loss or liability it incurs as a result of an Obligor not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under any Finance Document on the date when it would have been due.  The amount payable by an Obligor under this indemnity will not exceed the amount it would have had to pay under this Clause 19 if the amount claimed had been recoverable on the basis of a guarantee.

		
	19.2
	Continuing guarantee

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Obligor under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part.
		
	19.3
	Reinstatement

If any discharge, release or arrangement (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is made by a Finance Party in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of each Obligor under this Clause 19 will continue or be reinstated as if the discharge, release or arrangement had not occurred.
		
	19.4
	Waiver of defences

The obligations of each Obligor under this Clause 19 will not be affected by an act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under this Clause 19 (without limitation and whether or not known to it or any Finance Party) including:
		
	(a)
	any time, waiver or consent granted to, or composition with, any Obligor or other person;

		
	(b)
	the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group;

		
	(c)
	the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

Page 95

		
	(d)
	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any other person;

		
	(e)
	any amendment, novation, supplement, extension, restatement (however fundamental and whether or not more onerous) or replacement of any Finance Document or any other document or security including without limitation any change in the purpose of, any extension of or any increase in any facility or the addition of any new facility under any Finance Document or other document or security;

		
	(f)
	any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; 

		
	(g)
	any insolvency or similar proceedings; or

		
	(h)
	any other matter as provided for in Clause 19.11 (Jersey law waiver).

		
	19.5
	Guarantor Intent

Without prejudice to the generality of Clause ‎19.4 (Waiver of defences), each Obligor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental) variation, increase, extension or addition of or to any of the Finance Documents and/or any facility or amount made available under any of the Finance Documents for the purposes of or in connection with any of the following: acquisitions of any nature; increasing working capital; enabling distributions to be made; carrying out restructurings; refinancing existing facilities; refinancing any other indebtedness; making facilities available to new borrowers; any other variation or extension of the purposes for which any facility or amount might be made available from time to time; and any fees, costs and/or expenses associated with any of the foregoing.
		
	19.6
	Immediate recourse

Each Obligor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that Obligor under this Clause ‎19.  This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.
		
	19.7
	Appropriations

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may:
		
	(a)
	refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Obligor shall be entitled to the benefit of the same; and

Page 96

		
	(b)
	hold in an interest-bearing suspense account any moneys received from any Obligor or on account of any Obligor’s liability under this Clause ‎19.

		
	19.8
	Deferral of Obligors’ rights

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Agent otherwise directs, no Obligor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause ‎19:
		
	(a)
	to be indemnified by an Obligor;

		
	(b)
	to claim any contribution from any other guarantor of any Obligor’s obligations under the Finance Documents;

		
	(c)
	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party;

		
	(d)
	to bring legal or other proceedings for an order requiring any Obligor to make any payment, or perform any obligation, in respect of which any Obligor has given a guarantee, undertaking or indemnity under Clause ‎19.1 (Guarantee and indemnity);

		
	(e)
	to exercise any right of set-off against any Obligor; and/or

		
	(f)
	to claim or prove as a creditor of any Obligor in competition with any Finance Party.

If an Obligor receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Finance Parties by the Obligors under or in connection with the Finance Documents to be repaid in full on trust for the Finance Parties and shall promptly pay or transfer the same to the Agent or as the Agent may direct for application in accordance with Clause ‎33 (Payment mechanics).
		
	19.9
	Release of Guarantor’s right of contribution

If any Guarantor (a Retiring Guarantor) ceases to be a Guarantor in accordance with the terms of the Finance Documents for the purpose of any sale or other disposal of that Retiring Guarantor then on the date such Retiring Guarantor ceases to be a Guarantor:
		
	(a)
	that Retiring Guarantor is released by each other Obligor from any liability (whether past, present or future and whether actual or contingent) to make a contribution to any other Obligor arising by reason of the performance by any other Obligor of its obligations under the Finance Documents; and

		
	(b)
	each other Obligor waives any rights it may have by reason of the performance of its obligations under the Finance Documents to take the benefit (in whole or 

Page 97

in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under any Finance Document or of any other security taken pursuant to, or in connection with, any Finance Document where such rights or security are granted by or in relation to the assets of the Retiring Guarantor.
		
	19.10
	Additional security

This guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by any Finance Party.
		
	19.11
	Jersey law waiver

Without prejudice to the generality of any waiver granted in any Finance Document, each Obligor irrevocably and unconditionally abandons and waives any right which it may have at any time under the laws of Jersey:
		
	(a)
	whether by virtue of the droit de discussion or otherwise to require that recourse be had to the assets of any other person before any claim is enforced against it in respect of the obligations or liabilities assumed by it under this Agreement or any other Finance Document; and

		
	(b)
	whether by virtue of the droit de division or otherwise to require that any liability under this Agreement or any other Finance Document be divided or apportioned with any other person or reduced in any manner whatsoever.

		
	20.
	REPRESENTATIONS

		
	20.1
	General

Each of the Indemnitor and each Obligor makes the representations and warranties set out in this Clause 20 to each Finance Party to the extent and at the times set out in Clause 20.33 (Times when representations made).
		
	20.2
	Status

		
	(a)
	It is a limited liability corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation.

		
	(b)
	It has the power to own its assets and carry on its business as it is being conducted.

		
	20.3
	Binding obligations

The obligations expressed to be assumed by it in each Transaction Document to which it is a party are, subject to the Legal Reservations, legal, valid, binding and enforceable obligations.
		
	20.4
	Non-conflict with other obligations

The entry into and performance by it of, and the transactions contemplated by, the Transaction Documents and the granting of the Transaction Security pursuant to the Agreed Security Principles do not and will not conflict with:

Page 98

		
	(a)
	any law or regulation applicable to it;

		
	(b)
	its Constitutional Documents; or

		
	(c)
	any agreement or instrument binding upon it or any of its assets or constitute a default or termination event (however described) under any such agreement or instrument, to the extent that such default or termination event has or could reasonably be expected to have a Material Adverse Effect.

		
	20.5
	Power and authority

		
	(a)
	It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Transaction Documents to which it is or will be a party and the transactions contemplated by those Transaction Documents.

		
	(b)
	No limit on its powers will be exceeded as a result of the borrowing, grant of security or giving of guarantees or indemnities contemplated by the Transaction Documents to which it is a party.

		
	20.6
	Holding Company and Dormant Subsidiaries

		
	(a)
	The Borrower is a holding company and it has not carried on any business or incurred any liabilities or made any payments other than by entering into the Transaction Documents and the Merger Agreement and the Historical Documents (and any activities contemplated by, referred or, or consistent with the Transaction Documents, the Historical Documents and/or the Merger Agreement and the documents referred to therein).

		
	(b)
	Each Subsidiary of the Borrower referred to in the Dormant Subsidiary List is a Dormant Subsidiary.

		
	20.7
	Structure chart

The Group Structure Chart is true, complete and accurate in all material respects.
		
	20.8
	Validity and admissibility in evidence

		
	(a)
	All Authorisations required or desirable:

		
	(i)
	to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Transaction Documents to which it is a party; 

		
	(ii)
	to enable each of them to create the security interests which the Security Documents to which they are party purport to create; and

		
	(iii)
	to make the Transaction Documents to which it is a party admissible in evidence in its Relevant Jurisdictions,

have been obtained or effected and are in full force and effect.
		
	(b)
	All Authorisations necessary for the conduct of the business, trade and ordinary activities of the Obligors have been obtained or effected and are in full force 

Page 99

and effect if failure to obtain or effect those Authorisations has or is reasonably likely to have a Material Adverse Effect.
		
	20.9
	Governing law and enforcement

Subject to the Legal Reservations: 
		
	(a)
	the choice of English law as the governing law of the Finance Documents expressed to be governed by English law will be recognised and enforced in its Relevant Jurisdictions.

		
	(b)
	the choice of Jersey law as the governing law of the Finance Documents expressed to be governed by Jersey law will be recognised and enforced in its Relevant Jurisdictions;

		
	(c)
	the choice of Scottish law as the governing law of the Finance Documents expressed to be governed by Scottish law will be recognised and enforced in its Relevant Jurisdictions; and

		
	(d)
	any judgment obtained in England, Jersey or Scotland in relation to a Finance Document in the jurisdiction of the governing law of that Finance Document will be recognised and enforced in its Relevant Jurisdictions.

		
	20.10
	Deduction of Tax

		
	(a)
	It is not required to make any Tax Deduction (as defined in Clause 13.1 (Definitions)) from any payment it may make under any Finance Document to a Lender which is:

		
	(i)
	a Qualifying Lender:

		
	(A)
	falling within paragraph (a)(i) of the definition of “Qualifying Lender”; or

		
	(B)
	except where a Direction has been given under section 931 of the ITA in relation to the payment concerned, falling within paragraph (a)(ii) of the definition of “Qualifying Lender”; or

		
	(C)
	falling within paragraph (b) of the definition of Qualifying Lender; or

		
	(ii)
	a Treaty Lender and the payment is one specified in a direction given by the Commissioners of Revenue & Customs under Regulation 2 of the Double Taxation Relief (Taxes on Income) (General) Regulations 1970 (SI 1970/488).

		
	(b)
	No Rental Income payable to any Obligor is subject to a requirement to make a deduction or withholding for or on account of Tax from that Rental Income.

		
	20.11
	No filing or stamp taxes

		
	(a)
	Under the laws of its Relevant Jurisdictions it is not necessary that the Finance Documents be registered, filed, recorded or enrolled with any court or other 

Page 100

authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents except:
		
	(i)
	registration of particulars of the Security Documents at the Companies Registration Office under the Companies Act 2006 and payment of associated fees; 

		
	(ii)
	registration of the Security Agreements at the Land Registry or Land Charges Registry in England and Wales, the Standard Securities at the Land Register of Scotland and payment of associated fees;

		
	(iii)
	registration of a financing statements in relation to the Security Interests created pursuant to the Security Interest Agreements on the SIR and payment of associated fees; and

		
	(iv)
	the registration of the Billets with the Jersey Public Registry,

which registrations, filings, taxes and fees will be made and paid promptly after the date of the relevant Security Document.
		
	(b)
	Any disclosure required to be made by it to any relevant Taxing Authority in relation to stamp duty land tax payable on any transactions contemplated by or being financed by the Transaction Documents has been made.

		
	20.12
	Taxation

		
	(a)
	It and each of its Subsidiaries has paid all Taxes due and payable by it prior to the accrual of any fine or penalty for late payment, unless (and only to the extent that):

		
	(i)
	payment of those Taxes is being contested in good faith;

		
	(ii)
	adequate reserves are being maintained for those Taxes and the costs required to contest them; and

		
	(iii)
	failure to pay those Taxes is not reasonably likely to have a Material Adverse Effect.

		
	(b)
	No unpaid claims, enquiries, assessments or investigations by a Tax Authority are being, or, to the best of its knowledge, are reasonably likely to be, made or conducted against it or any of its Subsidiaries which are reasonably likely to result in a liability of, or claim against, it or any of its Subsidiaries (as applicable) to pay any material amount of Tax.

		
	(c)
	It and each of its Subsidiaries is not materially overdue in the filing of any Tax returns or filings.

		
	(d)
	It and each of its Subsidiaries is resident for tax purposes only in the jurisdiction of its incorporation or establishment save for Jerseyco which is resident for Tax purposes only in the UK.

Page 101

		
	(e)
	The assumptions, analysis and conclusions in relation to Tax set out in the Closing Tax Structure Report are correct in all material respects.

		
	20.13
	VAT

		
	(a)
	The Original Borrower is not registered (and is not required to be registered) for the purposes of VAT.

		
	(b)
	The Obligors (other than the Original Borrower) are not registered (and are not required to be registered) for the purposes of VAT.

		
	(c)
	None of the Obligors is a member of a VAT group.

		
	(d)
	In the case of each Property owned by an Obligor and located in the UK, neither the Obligor that owns that Property nor a relevant associate (as defined in paragraph 3 of Schedule 10 to the Value Added Tax Act 1994 (Relevant Associate)) of that Obligor has exercised (or been treated as exercising) a valid option to tax in relation to the Property (or part of the Property) which has effect in relation to the Obligor.

		
	20.14
	No default

		
	(a)
	No Event of Default is continuing or might reasonably be expected to result from the making of any Utilisation or the entry into, or the performance of, or any transaction contemplated by, any Transaction Document.

		
	(b)
	No other event or circumstance is outstanding which constitutes (or, with the expiry of a grace period, the giving of notice, the making of any determination or any combination of any of the foregoing, would constitute) a default or a termination event by it (however described) under any other agreement or instrument which is binding on it or to which any of its assets are subject which has or is reasonably likely to have a Material Adverse Effect.

		
	20.15
	Information

		
	(a)
	All written information supplied by it or on its behalf to any Finance Party in connection with the Transaction Documents was (to the best of its knowledge and belief) true and accurate in all material respects as at the date it was provided or as at any date at which it was stated to be given.

		
	(b)
	Any financial projections contained in the information referred to in paragraph (a) above have been prepared as at their date on the basis of recent historical information and on the basis of assumptions believed to be fair and reasonable.

		
	(c)
	It has not knowingly omitted to supply any information which, if disclosed, would make the information referred to in paragraph (a) above untrue or misleading in any material respect.

		
	(d)
	As at the Utilisation Date, nothing has occurred since the date of the information referred to in paragraph (a) above which, if disclosed, would make that information untrue or misleading in any material respect.

Page 102

		
	20.16
	Merger Agreement and other documents

		
	(a)
	The Merger Agreement contains all the material terms of the Mergers.

		
	(b)
	Other than the representations and warranties set forth in sections 4.2(a) (Capitalization) and 4.8(b) (Absence of Certain Changes) in the Merger Agreement, each of the representations and warranties of Parent, Merger Sub and Partnership Merger Sub (each as defined in the Merger Agreement) set forth in the Merger Agreement were true and correct (without giving effect to any qualification as to materiality contained in Article IV therein) as of the date of the Merger Agreement and are true and correct (without giving effect to any qualification as to materiality contained in Article IV therein) as though made on and as of the date hereof (except that representations and warranties that by their terms speak specifically as of the date of the Merger Agreement or another date shall be true and correct as of such date) except where any failures of any such representations and warranties to be true and correct would not reasonably be expected, individually or in the aggregate, to prevent, materially impede or materially delay Closing.

		
	(c)
	The representations and warranties set forth in section 4.8(b) (Absence of Certain Changes) of the Merger Agreement were true and correct in all respects as of the date of the Merger Agreement.

		
	(d)
	The representations and warranties set forth in section 4.2(a) (Capitalization) of the Merger Agreement were true and correct in all material respects as of the date of the Merger Agreement and are true and correct in all material respects as though made on and as of the date hereof (except that representations and warranties that by their terms speak specifically as of the date of the Merger Agreement or another date shall be true and correct as of such date).

		
	(e)
	To the best of its knowledge and in reliance upon the certificate delivered pursuant to section 7.2(a) of the Merger Agreement:

		
	(i)
	other than the representations and warranties set forth in sections 3.1 (Organization and Qualifications; Subsidiaries),  3.2 (Capitalization), 3.3 (Authorization; Validity of Agreement; Company Action), 3.8(b) (Absence of Certain Changes), 3.26 (Brokers; Expenses) and 3.27 (Takeover Statutes) of the Merger Agreement each of the representations and warranties of the Company set forth in the Merger Agreement were true and correct (without in each case giving effect to any qualification as to materiality or Company Material Adverse Effect contained in Article III therein) as of the date of the Merger Agreement and are true and correct (without giving effect to any qualification as to materiality or Company Material Adverse Effect (as contained in Article III of the Merger Agreement) as though made on and as of the date hereof (except that representations and warranties that by their terms speak specifically as of the date of the Merger Agreement or another date shall be true and correct as of such date), except where any failures of any such representations and warranties to be true and correct 

Page 103

would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect;
		
	(ii)
	the representations and warranties set forth in Section 3.2(a) of the Merger Agreement (Capitalization) and Section 3.26 of the Merger Agreement (Brokers; Expenses) were true and correct as of the date of the Merger Agreement and are true and correct as of the date hereof as though made on and as of the date hereof (except that representations and warranties that by their terms speak specifically as of the date of the Merger Agreement or another date shall be true and correct as of such date), except where the failure of such representations and warranties to be true and correct would not increase the Merger Consideration payable by Parent under the Merger Agreement by, or would not otherwise obligate Parent to pay any fees or other expenses to any Person of, more than £2,000,000 in the aggregate;

		
	(iii)
	the representations and warranties set forth in Section 3.1 of the Merger Agreement (Organization and Qualification; Subsidiaries), Section 3.2(b)-(e) of the Merger Agreement (Capitalization); Section 3.3 of the Merger Agreement (Authorization; Validity of Agreement; Company Action) and Section 3.27 of the Merger Agreement (Takeover Statutes) were true and correct in all material respects as of the date of the Merger Agreement and are true and correct as of the date hereof as though made on and as of the date hereof (except that representations and warranties that by their terms speak specifically as of the date of the Merger Agreement or another date shall be true and correct as of such date) and (iv) the representations and warranties set forth in Section 3.8(b) of the Merger Agreement (Absence of Certain Changes) were true and correct in all respects as of the date of the Merger Agreement; and

		
	(iv)
	no representation or warranty given by any party to the Merger Agreement with respect to the Original Obligors, the Properties or the transactions contemplated by the Merger Agreement and the capacity of the parties thereto to consummate those transactions is untrue or misleading in any material respect.

		
	(f)
	The Constitutional Documents contain all material terms of all the agreements and arrangements which constitute the Obligors.

		
	20.17
	Financial statements

		
	(a)
	To the best of its knowledge and belief its Original Financial Statements were prepared in accordance with GAAP consistently applied.

		
	(b)
	Its Original Financial Statements give a true and fair view of its financial condition as at the end of the relevant financial year and results of operations during the relevant financial year (consolidated in the case of the Borrower).

Page 104

		
	(c)
	There has been no material adverse change in its business or financial condition (or the business or consolidated financial condition of the Group, in the case of the Borrower) since the date of the Original Financial Statements.

		
	(d)
	Its most recent financial statements delivered pursuant to Clause 21.1 (Financial statements):

		
	(i)
	have been prepared in accordance with GAAP; and

		
	(ii)
	give a true and fair view of (if audited) or fairly represent (if unaudited) its financial condition as at the end of the relevant financial year and operations during the relevant financial year (consolidated in the case of the Borrower).

		
	20.18
	Pari passu ranking

Its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.
		
	20.19
	No proceedings pending or threatened

No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which are reasonably likely to be adversely determined, could have a Material Adverse Effect have (to the best of its knowledge and belief) been started or threatened against it.
		
	20.20
	Valuation

		
	(a)
	All written factual information supplied by it or on its behalf to the Valuer for the purposes of the most recent Valuation was (to the best of its knowledge and belief (having made due and careful enquiry)) true and accurate in all material respects as at its date or (if appropriate) as at the date (if any) at which it is stated to be given.

		
	(b)
	Any financial projections contained in the information referred to in paragraph (a) above have been prepared as at their date, on the basis of recent historical information and on the basis of reasonable assumptions.

		
	(c)
	It has not omitted to supply any information to the Valuer which, if disclosed, would adversely affect the most recent Valuation.

		
	(d)
	As at the Utilisation Date, nothing has occurred since the date the information referred to in paragraph (a) above was supplied which, if it had occurred prior to the Closing Valuation, would have adversely affected the Closing Valuation.

		
	20.21
	Title to Property

		
	(a)
	The Obligor named as owner of each Property in Part D (UK Properties) and Part E (Scottish Properties) of ‎Schedule 1 (The Original Parties and Properties) will, from the Utilisation Date:

Page 105

		
	(i)
	be the legal and beneficial owner of that Property with the class of title specified in Part D (UK Properties) and Part E (Scottish Properties) of ‎Schedule 1 (The Original Parties and Properties); and

		
	(ii)
	have good and marketable title to that Property,

in each case free from Security (other than those created by or pursuant to the Security Documents and the Scots Tenant Security) and restrictions and onerous covenants (other than those set out in the Property Report in relation to that Property).
		
	(b)
	Jerseyco will, from the Utilisation Date:

		
	(i)
	be the legal and beneficial owner of the Jersey Properties; and

		
	(ii)
	have a good and marketable title to the Jersey Properties,

in each case free from Security (other than those created by a or pursuant to the Billets) and restrictions and onerous covenants (other than those set out in the Property Report in relation to the Jersey Properties).
		
	(c)
	From the Utilisation Date except as disclosed in the Property Reports:

		
	(i)
	no breach of any law, regulation or covenant is outstanding which materially adversely affects or might reasonably be expected to materially adversely affect the value, saleability or use of that Property;

		
	(ii)
	there is no covenant, agreement, stipulation, reservation, condition, interest, right, easement, servitude or other matter whatsoever materially adversely affecting that Property;

		
	(iii)
	nothing has arisen or has been created or is outstanding which would be an overriding interest, or an unregistered interest which overrides first registration or a registered disposition, over that Property;

		
	(iv)
	all facilities necessary for the enjoyment and use of that Property (including those necessary for the carrying on of its business at that Property) are enjoyed by that Property;

		
	(v)
	none of the facilities referred to in paragraph (iv) above are enjoyed on terms:

		
	(A)
	entitling any person to terminate or curtail its use of that Property; or

		
	(B)
	which conflict with or restrict its use of that Property; and

		
	(vi)
	the relevant Obligor has not received any notice of any adverse claim by any person in respect of the ownership of that Property or any interest in it which might reasonably be expected to be determined in favour of that person, nor has any acknowledgement been given to any such person in respect of that Property.

Page 106

		
	(d)
	All deeds and documents necessary to show good and marketable title to an Obligor’s interests in a Property will from the Utilisation Date be:

		
	(i)
	in possession of the Security Agent;

		
	(ii)
	held at the applicable Land Registry (including the Land Register of Scotland, where appropriate) to the order of the Security Agent; 

		
	(iii)
	in respect of the Jersey Properties held at the Jersey Public Registry; or

		
	(iv)
	held to the order of the Security Agent by the Borrower's solicitors or a firm of solicitors approved by the Security Agent for that purpose.

		
	(e)
	Except as disclosed in the Property Report relating to a Property:

		
	(i)
	there is no encroachment onto the Property by improvements on or used with adjoining land or encroachment by improvements on or used with the Property onto adjoining land;

		
	(ii)
	no government agency has provided notice to an Obligor that it proposes to:

		
	(A)
	acquire or purchase compulsorily the whole or any part of the Property or any asset or right associated with the Property; or

		
	(B)
	change the permitted use of a Property;

		
	(iii)
	the Existing Use of a Property is authorised under the relevant planning permission; and

		
	(iv)
	to the best of its knowledge and belief having made all due enquiry, there are no unsatisfied conditions of any planning permission relating to a Property.

		
	20.22
	Headlease

		
	(a)
	Except as disclosed in the Property Report relating to a Property:

		
	(i)
	nothing has occurred which would entitle a person to terminate, repudiate or rescind, or give a notice of termination of, a Headlease;

		
	(ii)
	it is not aware of any material breach or material non-compliance under any Headlease; and

		
	(iii)
	there has been no variation to, or waiver, release, assignment, assignation, novation or transfer of, a Headlease since the date of its execution.

		
	20.23
	Existing Leases

		
	(a)
	Except as disclosed in the Property Report, there is no lease, licence or other arrangement giving rights to occupy any Property or to use any Property other than under the Existing Leases.

Page 107

		
	(b)
	Except as disclosed in the Property Report relating to a Property:

		
	(i)
	nothing has occurred which is an event of default (however described) under any of the Existing Leases;

		
	(ii)
	nothing has occurred which would entitle a person to terminate, repudiate or rescind, or give a notice of termination of, an Existing Lease;

		
	(iii)
	it is not aware of any material breach or material non-compliance under any of the Existing Leases;

		
	(iv)
	there has been no variation to, or waiver, release, assignment, assignation, novation or transfer of, an Existing Lease since the date of its execution (other than under the Assignment Deeds of Variation or the UA Deed of Variation);

		
	(v)
	it is not aware of, and has not received any notice of termination or surrender or an intention to vacate from any Existing Tenant;

		
	(vi)
	it is not aware of any material dispute with the Existing Tenants as to any amount of rent or other moneys required to be paid or any other material obligation under the Existing Leases;

		
	(vii)
	there is no current or pending dispute, arbitration or litigation between it and any Existing Tenant or otherwise in relation to the Property; and

		
	(viii)
	there has been no waiver of any material breach of covenant or other obligation or restriction under any of the Existing Leases.

		
	20.24
	Environmental Compliance

		
	(a)
	Save as disclosed in a Property Report, the Technical and Engineering Report or the Environmental Report, it or the relevant Tenant:

		
	(i)
	has obtained all requisite Environmental Permits required for the carrying on of its business as currently conducted;

		
	(ii)
	has at all times complied with the terms and conditions of such Environmental Permits; and

		
	(iii)
	has at all times complied with all other applicable Environmental Law,

the failure to obtain or comply with which, in each case, is reasonably likely to have a Material Adverse Effect.
		
	(b)
	Save as disclosed in a Property Report, the Technical and Engineering Report or the Environmental Report, there is no Environmental Claim pending or threatened against it or any of its Subsidiaries which is reasonably likely to be adversely determined and, if so determined, is reasonably likely to have a Material Adverse Effect.

		
	20.25
	Information for Property Reports

Page 108

		
	(a)
	The written information supplied by it or on its behalf to the lawyers who prepared any Property Report for the purpose of that Property Report was true and accurate in all material respects as at the date of the Property Report or (if appropriate) as at the date (if any) at which it is stated to be given.

		
	(b)
	The information referred to in paragraph (a) above was at the date it was expressed to be given complete and did not omit any information which, if disclosed would make that information untrue or misleading in any material respect.

		
	(c)
	As at the Utilisation Date, nothing has occurred since the date of any information referred to in paragraph (a) above which, if disclosed, would make that information untrue or misleading in any material respect.

		
	(d)
	It has not omitted to supply any information which, if disclosed, would make any other information referred to in paragraph (a) above untrue or misleading in any material respect.

		
	20.26
	Healthcare Requirements

Except as disclosed in the Property Report relating to a Property, no Tenant is in breach of any Healthcare Requirements to the extent that they are obliged to comply with those Healthcare Requirements under the Lease Documents.
		
	20.27
	No other business

		
	(a)
	No Obligor has traded or carried on any business since the date of its incorporation except for any activities contemplated by, referred to, or consistent with, the Transaction Documents, the Historical Documents and/or the Merger Agreement and the documents referred to therein including but not limited to:

		
	(i)
	in the case of the Borrower, the ownership of the Guarantors; and

		
	(ii)
	in the case of each Obligor, the ownership and management of its interests in the Properties.

		
	(b)
	As at the date of this Agreement, it is not party to any material agreement (other than the Transaction Documents, the Historical Documents and the Merger Agreement) pursuant to which an Obligor has incurred any material obligation or liability.

		
	(c)
	As at the date of this Agreement:

		
	(i)
	the Borrower does not have any Subsidiaries other than the Guarantors and the Dormant Subsidiaries; and

		
	(ii)
	no Guarantor has any Subsidiaries.

		
	(d)
	No Obligor:

		
	(i)
	has, or has had, any employees; and

Page 109

		
	(ii)
	has any obligation in respect of any retirement benefit or occupational pension scheme.

		
	20.28
	Centre of main interests and establishments

For the purposes of The Council of the European Union Regulation No. 1346/2000 on Insolvency Proceedings (the Regulation), its centre of main interest (as that term is used in Article 3(1) of the Regulation) is situated in England and Wales (or in the case of Jerseyco, Jersey) and it has no “establishment” (as that term is used in Article 2(h) of the Regulations) in any other jurisdiction.
		
	20.29
	Ranking of Security

The security conferred by each Security Document constitutes a first priority security interest of the type described, over the assets referred to, in that Security Document and those assets are not subject to any prior or pari passu Security.
		
	20.30
	Ownership

		
	(a)
	The Borrower’s entire issued share capital is legally and beneficially owned and controlled by Holdco.

		
	(b)
	Each Obligor’s entire issued share capital is legally and beneficially owned and controlled by the Borrower.

		
	(c)
	The shares in the capital of each Obligor are fully paid and are not subject to any option to purchase or similar rights.

		
	20.31
	Sanctions

None of the Obligors, their respective officers or directors or agents: 
		
	(a)
	to the best of its knowledge (having made due and careful enquiry) is a Restricted Party;

		
	(b)
	to the best of its knowledge (having made due and careful enquiry) has been engaged in any transaction, activity or conduct that would reasonably be expected to result in it being designated as a Restricted Party; and/or 

		
	(c)
	has received notice of, or to the best of its knowledge (having made due and careful enquiry) is otherwise aware of, any claim, action, suit, proceedings or investigation involving it with respect to Sanctions.

		
	20.32
	Anti-Bribery

		
	(a)
	None of the Obligors, nor any of their respective directors, officers, employees, agents (acting in such capacity), has (i) in order to assist any Obligor in improperly obtaining or retaining business for or with any person, in improperly directing business to any person, or in securing any improper advantage, made, authorised, offered or promised to make any payment, gift or transfer of anything of value, directly, indirectly or through a third party, to or for the use or benefit of any Official, or (ii) made, authorised, offered or promised to make any 

Page 110

unlawful bribe, rebate, payoff, influence payment or kickback or has taken any other action that would violate any Anti-Bribery Law binding on the Obligors or in effect in any jurisdiction in which such action is taken.
		
	(b)
	Each Obligor is subject to policies and procedures designed to promote and achieve compliance with Anti-Bribery Law and is subject to internal procedures to intercept money laundering channels or chains involving the proceeds of terrorist activities, drug trafficking  or organised crime. 

		
	20.33
	Times when representations made

		
	(a)
	The following representations and warranties set out in this Clause 20 are deemed to be made by the Indemnitor on the date of this Agreement:

		
	(i)
	Clauses 20.2 (Status) to 20.5 (Power and authority) (inclusive), Clause 20.8 (Validity and admissibility in evidence), Clause 20.9 (Governing law and enforcement), Clause 20.11 (No filing or stamp taxes), Clause 20.14(a) (No default) and Clause 20.15(a), (c) and (d) (Information) in each case in respect of the Indemnitor only; and 

		
	(ii)
	all the representations and warranties set out in this Clause 20 except for Clause 20.17(d) (Financial statements), in each case on behalf of the Original Obligors only and assuming that Closing has occurred and the Original Obligors have acceded to this Agreement in accordance with Clause 5.6 (Accession of Original Obligors), 

		
	(b)
	All the representations and warranties set out in this Clause 20 (except for Clause 20.17(d) (Financial statements)) are deemed to be made by each Original Obligor on the day on which it becomes an Original Obligor.

		
	(c)
	The Repeating Representations are deemed to be made by each Additional Obligor on the day on which it becomes an Additional Obligor (and only in respect of that Additional Obligor only).

		
	(d)
	The following Repeating Representations are deemed to be made by the Indemnitor on the date of the Utilisation Request:

		
	(i)
	Clauses 20.2 (Status) to 20.5 (Power and authority) (inclusive), Clause 20.8 (Validity and admissibility in evidence), Clause 20.9 (Governing law and enforcement), Clause 20.11 (No filing or stamp taxes), Clause 20.14(a) (No default) and Clause 20.15(a), (c) and (d) (Information) in each case in respect of the Indemnitor only; and

		
	(ii)
	all the Repeating Representations on behalf of the Original Obligors only.

		
	(e)
	The Repeating Representations are deemed to be made by each Obligor by reference to the facts and circumstances then existing on the Utilisation Date and the first day of each Interest Period.

Page 111

		
	(f)
	The representations and warranties set out in Clauses 20.17(d) (Financial Statements) are deemed to be made by each Obligor on the date of delivery of the most recent relevant financial statements.

		
	(g)
	The representations and warranties set out in paragraph (a) of Clause 20.15 (Information) are deemed to be made by each Obligor on the date of delivery of any information under this Agreement (other than any information referred to in Clauses 20.17 (Financial statements), 20.20 (Valuation) and 20.25 (Information for Property Reports).

		
	(h)
	The representations and warranties set out in (a) to (c) (inclusive) of Clause 20.20 (Valuation) are deemed to be made by each Obligor on the date of delivery of the most recent Valuation (and only in respect of that Valuation).

		
	21.
	INFORMATION UNDERTAKINGS

The undertakings in this Clause 21 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.
		
	21.1
	Financial statements

The Borrower shall supply to the Agent in sufficient copies for all the Lenders:
		
	(a)
	as soon as the same become available, but in any event within 180 days after the end of each of its financial years, the audited financial statements (excluding cash flow statements) of each Obligor for that financial year; and

		
	(b)
	as soon as the same become available, but in any event within 45 days after the end of each of its financial quarters, the financial statements (comprising a balance sheet and income statement) of each Obligor for that financial quarter.

		
	21.2
	Compliance Certificate

		
	(a)
	The Borrower shall supply to the Agent, with each Quarterly Report delivered pursuant to Clause 21.5 (Monitoring of Properties), a Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause ‎22 (Financial covenants) as at the Interest Payment Date falling immediately after the date of delivery of that report.

		
	(b)
	Each Compliance Certificate shall be signed by one director of the Borrower.

		
	21.3
	Requirements as to financial statements

		
	(a)
	Each set of financial statements delivered by the Borrower pursuant to Clause ‎21.1 (Financial statements) shall be certified by a director of the relevant company as giving a true and fair view (if audited) or fairly representing (if unaudited) its financial condition as at the date as at which those financial statements were drawn up.

		
	(b)
	The Borrower shall procure that:

Page 112

		
	(i)
	each set of financial statements delivered pursuant to paragraph (a) of Clause 21.1 (Financial statements) is prepared using UK GAAP; and

		
	(ii)
	each set of financial statements delivered pursuant to paragraph (b) of Clause 21.1 (Financial statements) is prepared using US GAAP,

UK GAAP or US GAAP being used for the purpose of sub paragraphs (b)(i) or (b)(ii) above being Relevant GAAP.
		
	(c)
	The Borrower shall procure that each set of financial statements of an Obligor delivered pursuant to paragraph (a) of Clause 21.1 (Financial statements) is prepared using UK GAAP and each set of financial statements delivered pursuant to paragraph (b) of Clause 21.1 (Financial statements) is prepared using US GAAP, unless, in relation to any set of financial statements, it notifies the Agent that there has been a change in the preparation of the relevant financial statements from UK GAAP to US GAAP (or vice versa) and its auditors (or, if appropriate, the auditors of the Obligor) deliver to the Agent:

		
	(i)
	a description of any change necessary for those financial statements to reflect the Relevant GAAP; and

		
	(ii)
	sufficient information, in form and substance as may be reasonably required by the Agent, to enable the Lenders to make an accurate comparison between the financial position indicated in those financial statements and that with the required Relevant GAAP.

		
	21.4
	Budget

The Borrower must supply to the Agent in sufficient copies for all the Lenders prior to the start of each of its financial years, an updated Budget for that financial year, in a substantially similar form to the Initial Budget.
		
	21.5
	Monitoring of Properties

On or before the date five Business Days before each Interest Payment Date, the Borrower must supply to the Agent a report (Quarterly Report) containing the following information to the best of the Borrower’s knowledge, in form and substance reasonably satisfactory to the Agent, in respect of (except in the case of proposed or required capital expenditure or repairs under paragraphs (g) and (h) below) the Rental Quarter ending on the Rental Quarter Date immediately preceding that Interest Payment Date:
		
	(a)
	a schedule of each existing Tenant of each Property, showing for each Tenant the rent, service charge, value added tax and any other amounts payable during each calendar month within that period by that Tenant;

		
	(b)
	details of:

		
	(i)
	any arrears of rents or service charges under any Lease Document;

		
	(ii)
	any other breaches of covenant or obligation under any Lease Document (including in relation to any Healthcare Requirements) except to the extent such breach is immaterial in its effect, and

Page 113

and any step being taken to recover or remedy them;
		
	(iii)
	the amount (if any) required to be deducted from the Rental Income Account under paragraphs (d) and (e) of Clause 18.3 (Rental Income Account) for the period from and including that Interest Payment Date to the next Interest Payment Date;

		
	(c)
	details of any insolvency or similar proceedings affecting any Tenant of a Property or any guarantor of that Tenant;

		
	(d)
	details of any rent reviews with respect to any Lease Document in progress or agreed;

		
	(e)
	details of any Lease Document which has expired or been determined or surrendered and any new letting proposed;

		
	(f)
	copies of all material correspondence between the Tenant and the insurance brokers handling the insurance of any Property in each case to the extent received by the Obligors from the Tenant;

		
	(g)
	details of any actual or proposed material capital expenditure with respect to each Property (which, to the extent that such capital expenditure or repairs (as applicable) is to be undertaken by a Tenant, shall consist of such information as is actually received by the Obligors from the Tenants under the Lease Documents);

		
	(h)
	details of any actual or required material repairs to each Property (which, to the extent that repairs are to be undertaken by a Tenant, shall consist of such information as is actually received by the Obligors from the Tenants under the Lease Documents); and

		
	(i)
	any other information in relation to a Property reasonably requested by the Agent.

		
	21.6
	Tenant Information

		
	(a)
	The Borrower shall (and shall procure that each Obligor shall) supply to the Agent all scheduled financial information for the Tenant required to be delivered under the Umbrella Agreement to the extent that such information has been received from the Tenant (and the Borrower shall use all reasonable endeavours to enforce any covenants on the part of the Tenant to provide the same) with the next Quarterly Report scheduled to be provided after the delivery of such financial information.

		
	(b)
	In accordance with the terms of the Lease Documents and the Umbrella Agreement, the Borrower shall (and shall procure that each Obligor shall, to the extent entitled to do so) request from the Tenant and/or MHL Holdco Limited any further information that the Agent (acting on the instructions of the Majority Lenders) may reasonably require and shall supply the same to the Agent promptly following its receipt thereof.

Page 114

		
	21.7
	Information: miscellaneous

The Borrower shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests):
		
	(a)
	all documents dispatched by the Borrower to its shareholders (or any class of them) pursuant to any general statutory requirement or to its creditors generally as soon as reasonably practicable after the time at which they are dispatched;

		
	(b)
	promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings or investigations which are current, threatened or pending against any member of the Group, and which are reasonably likely to be adversely determined, and if so determined, would have a Material Adverse Effect; 

		
	(c)
	promptly, such further information regarding the financial condition, business and operations of any member of the Group as any Finance Party (through the Agent) may reasonably request; and

		
	(d)
	promptly upon becoming aware of the relevant claim, the details of any claim which is current, threatened or pending against any Transaction Obligor or any other person in respect of the Merger Agreement (which in each case is, or could reasonably be expected to be, materially adverse to the Finance Parties under the Finance Documents) and details of any insurance claim which will require a prepayment under Clause 24.10 (Insurances).

		
	21.8
	Notification of default

		
	(a)
	Each Obligor shall notify the Agent of any Event of Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence (unless that Obligor is aware that a notification has already been provided by another Obligor).

		
	(b)
	Promptly upon a request by the Agent (where the Agent (acting on the instructions of the Majority Lenders, acting reasonably) forms the view that an Event of Default is continuing), the Borrower shall supply to the Agent a certificate signed by one of its directors or senior officers on its behalf certifying that no Event of Default is continuing (or if an Event of Default is continuing, specifying the Event of Default and the steps, if any, being taken to remedy it).

		
	21.9
	“Know your customer” checks

		
	(a)
	If:

		
	(i)
	the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement;

		
	(ii)
	any change in the status of an Obligor, or any change in the composition of the shareholders of an Obligor, after the date of this Agreement; or

Page 115

		
	(iii)
	a proposed assignment or transfer by a Lender of any of its rights and obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer,

obliges the Agent or any Lender (or, in the case of paragraph (iii) above, any prospective new Lender) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, each Obligor shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in the case of the event described in paragraph (iii) above, on behalf of any prospective new Lender) in order for the Agent, such Lender or, in the case of the event described in paragraph (iii) above, any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.
		
	(b)
	Each Lender shall promptly upon the request of the Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself) in order for the Agent to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

		
	(c)
	The Borrower shall, by not less than 5 Business Days’ prior written notice to the Agent, notify the Agent (which shall promptly notify the Lenders) of its intention to request that one of its Subsidiaries becomes an Additional Guarantor pursuant to Clause 27 (Changes to the Transaction Obligors).

		
	(d)
	Following the giving of any notice pursuant to paragraph (c) above, if the accession of such Additional Guarantor obliges the Agent or any Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Borrower shall promptly upon the request of the Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Agent or such Lender or any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the accession of such Subsidiary to this Agreement as an Additional Obligor.

		
	22.
	FINANCIAL COVENANTS

		
	22.1
	Definitions – Financial covenants

In this Agreement,

Page 116

DSCR means, on any Test Date, the ratio of:
		
	(a)
	DSCR EBITDAR; to

		
	(b)
	the total amount of all interest (after deducting any amount payable to any member of the Group under the Closing Date Cap Agreement or the Extension Cap Agreement) and scheduled payments of principal paid or payable to the Finance Parties under the Finance Documents in respect of:

		
	(i)
	the nine Month period ending on the Relevant Rental Quarter Date; and

		
	(ii)
	the three Month period beginning on that Relevant Rental Quarter Date.

DSCR EBITDAR means the aggregate of Look-back EBITDAR and Projected EBITDAR.
EBITDAR means, on any Test Date, in respect of all of the Properties the aggregate without duplication of the net profit after taxes (determined in conformity with UK GAAP), plus:
		
	(a)
	interest expense (including attributable to capital leases in accordance with UK GAAP), fees with respect to all outstanding indebtedness including capitalised interest but excluding commissions, discounts and other fees owed with respect to letters of credit and bankers’ acceptance financing and net costs under any interest rate swap, cap or collar agreement or other similar agreement or arrangement designed to hedge the position with regards to interest rates (determined in conformity with UK GAAP);

		
	(b)
	taxes on income, whether paid, payable or accrued (determined in conformity with UK GAAP);

		
	(c)
	depreciation expense (determined in conformity with UK GAAP);

		
	(d)
	amortisation expense (determined in conformity with UK GAAP);

		
	(e)
	the amount of rent payable pursuant to said lease or leases (determined in conformity with UK GAAP); and

		
	(f)
	non-cash-related losses (or reversal of such losses) associated with the impairment of long lived assets,

minus:
		
	(y)
	gains from any sale of assets, other than sales in the ordinary course of business; and

(z)    other extraordinary or non-recurring gains.
Loan to Value means, on any Test Date or any other date contemplated under this Agreement, the ratio of:
		
	(a)
	the principal amount outstanding of the Facility on that Test Date or other date (as applicable); to

Page 117

		
	(b)
	the aggregate of the then most recent Valuation in respect of the Properties (being for the purpose of the testing of the Loan to Value on the Utilisation Date, the Closing Valuation).

LTM EBITDAR means, in respect of a Test Date, EBITDAR in respect of the 12 month period ending on the Relevant Rental Quarter Date, determined by reference to the monthly property income statements for each Property delivered by the Tenants in accordance with clause 11.1.1 of the Umbrella Agreement.
Look-back EBITDAR means, in respect of a Test Date, EBITDAR in respect of the nine month period ending on the Relevant Rental Quarter Date, determined by reference to the monthly property income statements for each Property delivered by the Tenants in accordance with clause 11.1.1 of the Umbrella Agreement.
Net Rental Income means all Rental Income from the Properties to the extent paid to an Obligor net of any Costs paid by an Obligor.
Projected EBITDAR means, in respect of a Test Date, EBITDAR in respect of the three Month period beginning on the Relevant Rental Quarter Date, determined by reference to the corresponding three month calendar period as set out in the most recent annual operating budget of each Property delivered by the Tenants in accordance with clause 11.1.7 of the Umbrella Agreement.
Relevant Rental Quarter Date means, in respect of a Test Date or any other date contemplated under this Agreement, the Rental Quarter Date falling immediately prior to that Test Date or that other date (as applicable) which in the case of EBITDAR shall be the most recent Rental Quarter Date in respect of which the Tenant has provided its most recent monthly property income statements under the Lease Documents.
		
	22.2
	Debt service coverage ratio

		
	(a)
	The Borrower must ensure that the DSCR on each Test Date is greater than or equal to 1.66:1.

		
	(b)
	If the DSCR is not greater than or equal to 1.66:1 on any Test Date, then (subject to Clause 22.5 (Limit on cure rights)) the Borrower may, no later than the date falling 20 days following such Test Date (the Relevant DSCR Test Date), carry out either of the following or a combination thereof:

		
	(i)
	prepay the Loan in accordance with Clause 8.6 (Voluntary prepayment of Loan) in an amount sufficient to ensure that if the DSCR were recalculated on the Relevant DSCR Test Date assuming that such amount had been prepaid on the first day of the nine Month period ending immediately before the Relevant DSCR Test Date, then the DSCR would have been greater than or equal to 1.66:1; or

		
	(ii)
	deposit into the DSCR Cure Account, an amount sufficient to ensure that, if the DSCR were recalculated on the Relevant DSCR Test Date assuming that:

		
	(A)
	if such amount when aggregated with any Cash Trap Amount,

Page 118

was added to:
		
	(B)
	DSCR EBITDAR for the purpose of calculating DSCR on that Test Date, then

the DSCR would have been greater than or equal to 1.66:1.
		
	(c)
	No Default shall be deemed to arise as a result of a breach of paragraph (a) above if that breach is cured in accordance with paragraph (b) above and if so cured, paragraph (a) shall be deemed to have been satisfied as at the Test Date on which the breach that was cured originally occurred.

		
	22.3
	Loan to Value

		
	(a)
	The Borrower must ensure that the Loan to Value on each Test Date is less than or equal to 82 per cent.

		
	(b)
	If the Loan to Value is not less than or equal to 82 per cent. on any Test Date then (subject to Clause 22.5 (Limit on cure rights)) the Borrower may no later than the date falling 20 days following such Test Date (the Relevant LTV Test Date), either:

		
	(i)
	prepay the Loan in accordance with Clause 8.6 (Voluntary prepayment of Loan) in an amount sufficient to ensure that if that amount had been prepaid on the day before the Relevant LTV Test Date for the purpose of calculating Loan to Value on the Relevant LTV Test Date, then the Loan to Value would have been greater than or equal to 82 per cent.; or

		
	(ii)
	deposit into the LTV Cure Account, an amount sufficient to ensure that if the Loan to Value were recalculated on the Relevant LTV Test Date assuming that:

		
	(A)
	if such amount when aggregated with any Cash Trap Amount,

was added to:
		
	(B)
	the aggregate of the then most recent Valuation in respect of the Properties for the purpose of calculating Loan to Value on the Relevant LTV Test Date, then

the Loan to Value would have been greater than or equal to 82 per cent.
		
	(c)
	No Default shall be deemed to arise as a result of a breach of paragraph (a) above if that breach is cured in accordance with paragraph (b) above and if so cured, paragraph (a) shall be deemed to have been satisfied as at the Test Date on which the breach that was cured originally occurred.

		
	22.4
	Rental Cover Ratio

Page 119

The Borrower must ensure that, on each Test Date, the ratio of LTM EBITDAR to Net Rental Income in respect of the 12 Month period ending on the Relevant Rental Quarter Date (the Rental Cover Ratio) is greater than or equal to 1.00:1.
		
	22.5
	Limit on cure rights

The Borrower's right to cure a breach of Clause 22.2(a) (Debt service coverage ratio) or Clause 22.3(a) (Loan to Value) under Clause 22.2(b) (Debt service coverage ratio) or Clause 22.3(b) (Loan to Value) (as the case may be) may not be exercised in respect of consecutive Test Dates and may not be exercised in aggregate in respect of all such financial covenants more than three times in total until the Termination Date.
		
	22.6
	Financial testing: stub periods

For any Test Date in respect of which the Relevant Rental Quarter Date falls on a date which is less than 12 Months after Utilisation (including the Test Date Falling on the Utilisation Date), being an Early Test Date:
		
	(a)
	Look-back EBITDAR (for the purpose of Clause 22.2 (Debt service coverage ratio)) shall be calculated on the basis of the actual Look-back EBITDAR for the previous 9 Month period ending immediately before the most recent Relevant Rental Quarter Date prior to such Early Test Date;

		
	(b)
	LTM EBITDAR (for the purpose of Clause 22.4 (Rental Cover Ratio)) shall be calculated on the basis of the actual LTM EBITDAR for the previous 12 Month period ending on the most recent Relevant Rental Quarter Date prior to such Early Test Date;

		
	(c)
	Net Rental Income (for the purpose of Clauses 22.2 (Debt service coverage ratio) and 22.4 (Rental Cover Ratio)) shall be calculated on the basis of actual Net Rental Income for the 12 Month period ending immediately before the recent Relevant Rental Quarter Date prior to such Early Test Date (as if the Obligors had already been "Obligors" during such period); and

		
	(d)
	in respect of the calculation of interest and scheduled principal payments under the Finance Documents (for the purpose of limb (b) for the definition of "DSCR" and Clause 22.2 (Debt service coverage ratio)), the Utilisation Date shall be deemed to have occurred on the date falling 9 Months immediately before the Relevant Rental Quarter Date.

		
	22.7
	Financial testing

		
	(a)
	The financial covenants set out in Clauses 22.2 (Debt Service Cover Ratio) to 22.4 (Rental Cover Ratio) (inclusive) shall be calculated by reference to;

		
	(i)
	in the case of the financial covenants set out in Clauses 22.2 (Debt Service Cover Ratio) and 22.4 (Rental Cover Ratio), the most recent monthly property income statements for each Property required to be delivered by the Tenant in accordance with clause 11.1.1 of the Umbrella Agreement and delivered in the Quarterly Report prior to that Test Date;

Page 120

		
	(ii)
	in the case of the financial covenant set out in Clause 22.4 (Rental Cover Ratio), the most recent quarterly or audited annual financial statements (as applicable) of the Tenant required to be delivered pursuant to Clause 21.6(a) (Tenant Information);

		
	(iii)
	in the case of the financial covenant set out in Clause 22.3 (Loan to Value), the most recent Valuation required to be delivered pursuant to Clause 17.3 (Valuations); and

		
	(iv)
	in the case of each of the financial covenants set out in Clauses 22.2 (Debt Service Cover Ratio) to 22.4 (Rental Cover Ratio), each Compliance Certificate required to be delivered pursuant to Clause 21.2 (Compliance Certificate) in respect of the Interest Payment Date coinciding with that Test Date.

		
	23.
	GENERAL UNDERTAKINGS

The undertakings in this Clause ‎23 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.
		
	23.1
	Authorisations

Each Obligor shall promptly:
		
	(a)
	obtain, comply with and do all that is necessary to maintain in full force and effect; and

		
	(b)
	supply upon written request from the Agent certified copies to the Agent of,

any Authorisation required under any law or regulation of its jurisdiction of incorporation to:
		
	(i)
	enable it to perform its obligations under the Transaction Documents and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any Transaction Document; or

		
	(ii)
	own its assets and carry on its business as it is being conducted.

		
	23.2
	Compliance with laws

Each Obligor shall comply in all respects with all laws to which it may be subject, if failure so to comply has or is reasonably likely to have a Material Adverse Effect.
		
	23.3
	Negative pledge

In this Clause ‎23.3, Quasi-Security means an arrangement or transaction described in paragraph (b) below.
		
	(a)
	No Obligor shall create or permit to subsist any Security over any of its assets.

Page 121

		
	(b)
	No Obligor shall:

		
	(i)
	sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by an Obligor;

		
	(ii)
	sell, transfer or otherwise dispose of any of its receivables on recourse terms;

		
	(iii)
	enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or

		
	(iv)
	enter into any other preferential arrangement having a similar effect,

in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset.
		
	(c)
	Paragraphs (a) and (b) above do not apply to any Security or (as the case may be) Quasi-Security, listed below (together the Permitted Security):

		
	(i)
	the Transaction Security;

		
	(ii)
	the Scots Tenant Security;

		
	(iii)
	any Security or Quasi-Security arising under any Transaction Document;

		
	(iv)
	any cash pooling, netting or set-off arrangement entered into in the ordinary course of its banking arrangements (as permitted under the Finance Documents) for the purpose of netting debit and credit balances of any members of the Group;

		
	(v)
	any Security or Quasi-Security arising over any bank accounts or custody accounts held with any bank or financial institution under the standard terms and conditions of such bank or financial institution or any documentation establishing the Accounts or the transactions set out in Clause 18 (Bank Accounts);

		
	(vi)
	any lien or Quasi-Security arising by operation of law and in the ordinary course of trading; or

		
	(vii)
	any Security or Quasi-Security that is released on or prior to the Utilisation.

		
	23.4
	Pari passu ranking

Each Obligor must ensure that its unsecured, unsubordinated payment obligations under the Finance Documents at all times rank at least pari passu with all its other present and future unsecured payment obligations, except for obligations mandatorily preferred by law applying to companies generally.
		
	23.5
	Disposals

Page 122

		
	(a)
	No Obligor shall enter into a single transaction or a series of transactions (whether related or not and whether voluntary or involuntary) to dispose of all or any part of any asset.

		
	(b)
	Paragraph (a) above does not apply to any disposal:

		
	(i)
	being a matter to which the Majority Lenders have granted their consent pursuant to Clause 24.2(a)(ii) or (iii) (Lease Documents);

		
	(ii)
	which is an Umbrella Agreement Landlord Discretionary Disposal which the Agent has approved in accordance with Clause 24.11 (Landlord Discretions) which is made in accordance with paragraph (c) below (other than sub-paragraphs (c)(i), (c)(iii), (c)(iv) and (c)(v));

		
	(iii)
	which is an Umbrella Agreement Landlord Non-Discretionary Disposal which is made in accordance with paragraph (c) below (other than sub-paragraphs (c)(i), (c)(iii), (c)(iv) and (c)(v));

		
	(iv)
	subject to paragraphs (ii) and (iii) above, of a Property or the shares in a Subsidiary, in each case in accordance with paragraph (c) below;

		
	(v)
	of cash by way of a payment out of an Account in accordance with this Agreement;

		
	(vi)
	made in the course of the day-to-day business of any asset subject to the floating charge created under a Security Agreement;

		
	(vii)
	of obsolete assets (other than any right, interest or title in any Property) which have outlasted their useful life and which are no longer required for the efficient operation of the business; or

		
	(viii)
	which is the disposal of equipment, furnishing, machinery or plant and equipment (other than any right, interest or title in any Property) in exchange for other assets of equivalent or better type or quality. 

		
	(c)
	For the purposes of sub-paragraphs (b)(ii), (b)(iii) and (b)(iv) above, an Obligor may dispose of an individual Property or its shares in a Subsidiary (other than any Dormant Subsidiary) to a third party, provided that the following conditions are satisfied:

		
	(i)
	the disposal is at arm’s length and, subject to sub-paragraph (ii) below, is not made to an Affiliate or Related Fund of the Sponsor or an Affiliate of the Borrower; or

		
	(ii)
	in respect of any Property which is the subject of a Proposed Development which has not been consented to by the Agent in accordance with Clause 24.5(a) (Development) within 20 Business Days of the delivery of a written request for such consent by an Obligor to the Agent provided that such disposal is not made to Holdco or an Obligor;

Page 123

		
	(iii)
	the aggregate of the Net Disposal Proceeds are not or will not be less than the Required Net Disposal Proceeds provided that if the Actual Net Disposal Proceeds are less than the Required Net Disposal Proceeds, the relevant Obligor may make such disposal (subject to the other conditions set out in this Clause 23.5) if:

		
	(A)
	it pays an amount not less than the Disposal Proceeds Shortfall Amount into the Mandatory Prepayment Account no later than the closing date of such disposal in accordance with paragraph (d) below and provided that such amount is funded either (i) from amounts standing to the credit of the General Account or (ii) from a Permitted Equity Injection; and

		
	(B)
	each of the other conditions under this paragraph (c) are satisfied;

		
	(iv)
	evidence satisfactory to the Agent (acting on the instructions of the Majority Lenders, acting reasonably) is delivered no later than 5 Business Days prior to the time of the disposal by certifying that:

		
	(A)
	no Event of Default is continuing on the date of agreement to dispose of the relevant Property or shares or the date of that disposal, or would result from and immediately after that disposal;

		
	(B)
	Debt Yield with respect to the remaining Properties owned by the Obligors, if tested immediately following that disposal (but assuming, for this purpose, that any prepayment of the Loan in accordance with Clause 8.3(a)(i) (Mandatory prepayment) as a result of such disposal has been made) is equal to or greater than the greater of:

		
	(I)
	Debt Yield on the Test Date immediately preceding the date of the disposal; and

		
	(II)
	11.6 per cent.; and

		
	(C)
	the Loan to Value tested on the date of disposal of the relevant Property or shares is less than or equal to 82 per cent., 

		
	(I)
	excluding for this purpose, the Valuation of the Property which is either being disposed of (or is owned by the Subsidiary whose shares are being disposed of); and

		
	(II)
	assuming for this purpose, that any prepayment of the Loan in accordance with Clause 8.3(a)(i) (Mandatory prepayment) as result of such disposal has already been made;

		
	(v)
	the Borrower is in compliance with Clause 23.10 (Change of Business);

Page 124

		
	(vi)
	the Borrower shall pay all of the Finance Parties' reasonable costs, fees, filing fees, charges, Taxes and other expenses incurred in connection with any disposal made under this paragraph (c); and

		
	(vii)
	the Borrower provides the Agent with 10 Business Days’ notice (or such shorter period as the Agent (acing on the instructions of the Majority Lenders) may reasonably permit) of the date of the proposed disposal.

		
	(d)
	The Obligors must ensure that the Net Disposal Proceeds, any  amount required to be paid into the Mandatory Prepayment Account in accordance with the proviso to sub-paragraph (c)(iii) and an amount equal to any Disposal Proceeds Shortfall Amount in respect of any disposal referred to in paragraphs (b)(ii) or (b)(iii) above are promptly paid into the Mandatory Prepayment Account for application in accordance with Clause 8.3 (Mandatory Prepayment).

		
	(e)
	A Property disposed of, or a Property owned by a Subsidiary the shares of which are disposed of, in accordance with paragraph (c) above will cease to be a Property.

		
	(f)
	Notwithstanding the remainder of this Clause 23.5, the shares in the Borrower may not be disposed of without the prior written consent of the Agent (acting on the instructions of all of the Lenders).

		
	23.6
	Financial Indebtedness

		
	(a)
	No Obligor may incur or permit to be outstanding any Financial Indebtedness.

		
	(b)
	Paragraph (a) does not apply to any Financial Indebtedness:

		
	(i)
	incurred under the Transaction Documents;

		
	(ii)
	subsisting at Closing under a Historical Document but not  incurred or the principal amount increased (other than by reason of the accrual of interest) or its maturity date extended in contemplation of, or since, Closing and outstanding only for 3 months following the Closing Date and in any event not exceeding in aggregate £500,000;

		
	(iii)
	repaid prior to the Utilisation Date;

		
	(iv)
	constituting Subordinated Debt;

		
	(v)
	owing by a member of the Group to another member of the Group; or

		
	(vi)
	that arises as a normal trade credit in the ordinary course of any Obligor's trading and is not outstanding for more than 30 days.

		
	23.7
	Lending and guarantees

		
	(a)
	No Obligor may be the creditor in respect of any loan or any form of credit to any person other than:

		
	(i)
	to another Obligor by way of Subordinated Debt;

Page 125

		
	(ii)
	in respect of the Development Facility Loan Agreement, and only to the extent funded entirely from a Permitted Equity Injection or from funds standing to the credit of the General Account; or

		
	(iii)
	as part of an enforcement or workout scenario in respect of the Loan. 

		
	(b)
	No Obligor may give or allow to be outstanding any guarantee or indemnity to or for the benefit of any person in respect of any obligation of any other person or enter into any document under which that Obligor assumes any liability of any other person other than any guarantee or indemnity:

		
	(i)
	given under the Transaction Documents or the Merger Agreement;

		
	(ii)
	subsisting at Closing under a Historical Document but not extended or the principal amount increased (other than by reason of the accrual of interest) or its maturity date extended in contemplation of, or since, Closing and outstanding only for 3 months following the Closing Date and in any event not exceeding in aggregate £500,000;

		
	(iii)
	arising under customary indemnities extended by Obligors to contractual counterparties under reorganisation and transfer, and sale and purchase agreements (as the case may be) in connection with the relevant transaction and not in respect of Tax or Financial Indebtedness;

		
	(iv)
	granted by any Obligor in respect of the obligations of another member of the Group;

		
	(v)
	given in respect of the netting or set-off arrangements permitted pursuant to Clause 23.3(c)(iv) (Negative Pledge); or

		
	(vi)
	customary indemnities granted to the relevant account bank in respect of the Accounts under that account bank’s standard terms and conditions and any documentation establishing the Accounts or the transactions set out in Clause 18 (Bank Accounts).

		
	23.8
	Third Party Credit Support

Each Obligor shall comply with its obligations in all material respects and take all commercially reasonable steps to preserve and enforce its rights and pursue any claims and remedies arising in respect of any Third Party Credit Support.
		
	23.9
	Merger

		
	(a)
	No Obligor shall enter into any amalgamation, demerger, merger or corporate reconstruction.

		
	(b)
	Paragraph (a) does not apply to any amalgamation, demerger, merger or corporate reconstruction on the Closing Date as contemplated by the Closing Tax Structure Report or (for the avoidance of doubt) the Mergers.

		
	23.10
	Change of business

Page 126

		
	(a)
	No Obligor may trade or carry on any business other than any activities contemplated by, referred or, or consistent with the Transaction Documents, the Historical Documents, the Merger Agreement, the Closing Tax Structure Report and the documents referred to therein, including but not limited to:

		
	(i)
	the ownership and management of its interests in the Property or Properties in which it has an interest;

		
	(ii)
	intra Group debit and credit balances, other credit balances in bank accounts and cash, but only if those credit balances and cash are subject to the Transaction Security;

		
	(iii)
	incurring any liabilities under the Transaction Documents, (to the extent permitted under this Agreement) the Historical Documents and/or the Merger Agreement (in each case to which it is a party) and professional fees and administration costs in the ordinary course of business; and

		
	(iv)
	in the case of any Obligor which is a holding company, the ownership of its Subsidiaries.

		
	(b)
	The Borrower must not have any Subsidiary other than the Guarantors and the Dormant Subsidiaries.

		
	(c)
	No Guarantor may have any Subsidiary other than other Guarantors or Dormant Subsidiaries.

		
	23.11
	Acquisitions

No Obligor may make any acquisition of or investment into any property, shares, ownership interest, business or undertaking or incorporate a company other than:
		
	(a)
	on the Closing Date as expressly contemplated in the Closing Tax Structure Report;

		
	(b)
	an Umbrella Agreement Landlord Discretionary Acquisition which the Agent has approved in accordance with Clause 24.11 (Landlord Discretions); or

		
	(c)
	an Umbrella Agreement Landlord Non-Discretionary Acquisition.

		
	23.12
	Shares, dividends and share redemption

		
	(a)
	No Obligor shall issue any further shares or amend any rights attaching to its issued shares unless:

		
	(i)
	to its immediate Holding Company and subject to Transaction Security on the same basis as then current shares; or

		
	(ii)
	on the Closing Date as expressly contemplated by the Closing Tax Structure Report.

		
	(b)
	Except as permitted under paragraph (c) below, no Obligor shall:

Page 127

		
	(i)
	declare, make or pay any dividend, charge, fee or other distribution (or interest on any unpaid dividend, charge, fee or other distribution) (whether in cash or in kind) on or in respect of its share capital (or any class of its share capital);

		
	(ii)
	repay or distribute any dividend or share premium reserve;

		
	(iii)
	pay any management, advisory or other fee to or to the order of any of the Shareholders of an Obligor; or

		
	(iv)
	redeem, repurchase, defease, retire or repay any of its share capital or resolve to do so.

		
	(c)
	Paragraph (b) above does not apply to a Permitted Payment.

		
	23.13
	VAT group

		
	(a)
	The Obligors (other than the Original Borrower) shall not become registered (or required to be registered) for the purposes of VAT.

		
	(b)
	None of the Obligors shall become a member of a VAT group.

		
	(c)
	In the case of each Property owned by an Obligor and located in the UK, neither the Obligor that owns that Property nor a Relevant Associate of that Obligor shall exercise a valid option to tax in relation to the Property (or part of the Property) which has effect in relation to the Obligor.

		
	23.14
	Taxes

		
	(a)
	Each Obligor shall pay all Taxes due and payable by it prior to the accrual of any fine or penalty for late payment, unless (and only to the extent that):

		
	(i)
	payment of those Taxes is being contested in good faith;

		
	(ii)
	adequate reserves are being maintained for those Taxes and the costs required to contest them; and

		
	(iii)
	failure to pay those Taxes is not reasonably likely to have a Material Adverse Effect.

		
	(b)
	Each Obligor shall make all returns and filings required by law to be made in relation to Tax prior to the accrual of any fine or penalty for their being made late where failure to make such returns and filings is reasonably likely to have a Material Adverse Effect.

		
	(c)
	Each Obligor (other than Jerseyco) shall ensure that its residence for Tax purposes is only in the jurisdiction of its incorporation.

		
	(d)
	Jerseyco shall ensure that its residence for tax purposes is only in the UK.

		
	23.15
	Treasury Transactions

Page 128

No Obligor shall enter into any derivative transaction in connection with protection against or benefits from fluctuation in any rate or price other than the hedging transactions documented by the Closing Date Cap and any Extension Cap entered into in accordance with Clause 7.3(c) (Extension Option) or Clause 9.3 (Hedging).
		
	23.16
	Joint Ventures

No Obligor may:
		
	(a)
	enter into, invest in or acquire (or agree to acquire) any shares, stocks, securities or other interest in any Joint Venture; or

		
	(b)
	transfer any assets or lend to or guarantee or give an indemnity for or grant any Security for the obligations of a Joint Venture or maintain the solvency of or provide working capital to any Joint Venture (or agree to do any of the foregoing).

		
	23.17
	Syndication, Securitisation, Bond issues etc.

		
	(a)
	Subject always to the terms of this Agreement, the Indemnitor and the Borrower agree that all or part of each Loan or Commitment, or any Lender's interest therein or under any Finance Document may be syndicated and/or securitised and/or offered for security for the issue of public or private offers of securities and/or repackaging and derivative instruments referencing the Loan (whether alone or in conjunction with any other loan or loans) (together, the Sell-Down).

		
	(b)
	The Indemnitor and the Borrower shall, and the Borrower shall procure that each other Obligor shall, provide reasonable assistance to the Arranger and the Lenders in connection with the Sell-Down, including:

		
	(i)
	obtaining ratings from two or more recognised rating agencies selected by the Lenders;

		
	(ii)
	delivering information in relation to each Obligor, the Indemnitor, the Sponsor and each Property where such information is reasonably requested by the Lenders in order to:

		
	(A)
	comply with any disclosure requirements required by law, regulation or by the rules of any recognised stock exchange or requested by any judicial, governmental, administrative, supervisory or regulatory body;

		
	(B)
	satisfy any inquiries made by any recognised rating agency including providing access to the financial information and to its management on reasonable notice and at reasonable times;

		
	(C)
	provide such information (which would not breach any duty of confidentiality provided that the Indemnitor and the Borrower shall use reasonable endeavours to procure that any such confidentiality restrictions are removed or waived to facilitate any such disclosure to the extent commercially practicable) as any Finance Party may reasonably require in connection with 

Page 129

any Securitisation or syndication or issue of public or private offers of securities and/or repackagings and derivative instruments refinancing the Loan of or in respect of all or any part of the Facility, including any information that needs to be disclosed in any offering circular or prospectuses and/or to any internationally recognised ratings agencies and their respective professional advisers;
		
	(D)
	satisfy reasonable requests from potential syndicate members or other transferees of exposure arising from the Facility in connection with the Sell-Down or any other interested party, including any subordinated lender; and/or

		
	(E)
	satisfy the market standards to which the Lenders customarily adhere for the purpose of the relevant Sell-Down; and

		
	(iii)
	without affecting either paragraph (c) or paragraph (d) below, agreeing to any amendments to the Finance Documents or the acquisition structure which are not adverse to the Obligors in any material respect.

		
	(c)
	Subject always to the terms of this Agreement, the Indemnitor and the Borrower agree that in the Lenders’ sole discretion, before or after Closing upon 5 Business Days’ written notice to the Indemnitor and, following the accession of the Original Obligors to this Agreement in accordance with Clause 5.6 (Accession of Original Obligors), to the Borrower:

		
	(i)
	the Facility may be bifurcated into a mortgage facility and a mezzanine facility secured by direct and/or indirect equity interests in each Obligor; and/or

		
	(ii)
	the Facility or any portion thereof may be assigned, transferred, subdivided, split, severed or modified so as to cause all or any part of any Loan to be split into one or more different and separate tranches (whether or not being of equal principal amounts and whether, as between themselves, ranking in priority, on a pari passu basis or otherwise), including into senior and subordinate components, which may be represented by separate notes,

(each such change being a Loan Structure Change).
		
	(d)
	The Indemnitor shall and, following the accession of the Original Obligors to this Agreement in accordance with Clause 5.6 (Accession of Original Obligors), the Borrower shall, and shall procure that each other Obligor shall, provide its consent to any amendments, waivers or modifications to the Finance Documents and/or changes to the acquisition structure requested or required by the Lenders in their sole discretion in relation to any Loan Structure Change, provided that (unless the prior consent of the Indemnitor or, following the accession of the Original Obligors to this Agreement in accordance with Clause 5.6 (Accession of Original Obligors), the Borrower is obtained):

Page 130

		
	(i)
	any amendments, waivers or modifications made to the Finance Documents or to the acquisition structure are not adverse to the Obligors in any material respect; and

		
	(ii)
	the aggregate principal amount of the Facility and the Margin remain unchanged.

		
	23.18
	Access

Each Obligor shall, if and for so long as a Default is continuing under Clauses 25.1 (Non-payment), 25.2 (Financial Covenants and other obligations) or Clauses 25.6 (Insolvency) to 25.8 (Creditors process) (inclusive):
		
	(a)
	permit the Agent and/or the Security Agent and/or accountants or other professional advisers or delegates and contractors of the Agent or Security Agent free access at all reasonable times and on reasonable notice at the risk and cost of the Obligors (i) to the premises, assets, books, accounts and records of each member of the Group and (ii) to meet and discuss matters with senior management; and

		
	(b)
	exercise all of its available rights against the Tenants under the Lease Documents to provide the Agent and/or the Security Agent and/or accountants or other professional advisers or delegates and contractors of the Agent or Security Agent free access to the Properties at all reasonable times and on reasonable notice at the risk and cost of the Obligors, in each case to the extent permitted under the relevant Lease Document.

		
	23.19
	Arm’s length basis

No Obligor shall, and each Obligor shall procure that Holdco shall not, enter into any transaction with any person except on arm’s length terms and for market value, except to the extent that such transaction constitutes a Permitted Payment.
		
	23.20
	Debt Purchase Transactions

No Obligor shall directly or indirectly enter into any Debt Purchase Transaction or be a Lender or a party to a Debt Purchase Transaction.
		
	23.21
	Ownership

The Borrower must ensure that at all times it legally and beneficially owns and controls the entire share capital of each other Obligor.
		
	23.22
	Economic sanctions, anti-terrorism and anti-bribery

		
	(a)
	No Obligor shall:

		
	(i)
	contribute or otherwise make available all or any part of the proceeds of any Loan, directly or knowingly indirectly, to, or for the benefit of, any person or entity (whether or not related to an Obligor) for the purpose of financing the activities of, or business or transactions with, any Restricted Party, to the extent such action or status is prohibited by, 

Page 131

or would cause any Finance Party or any Obligor to be in breach of, any Sanctions; or
		
	(ii)
	directly or knowingly indirectly fund all or part of any repayment or prepayment of the Loans out of proceeds derived from any: (i) transaction with or action involving a Restricted Party; or (ii) action or status which is prohibited by, or would cause any Finance Party or any Obligor to be in breach of, any Sanctions.

		
	(b)
	Each Borrower agrees that it will not use the proceeds of the Loans for any illegal purposes, and will not repay the Loans with the proceeds of any illegal activity or take any other action that would violate any Anti-Bribery Law binding on it in any jurisdiction in which such action is taken.

		
	(c)
	Each Obligor shall conduct its business in compliance with all applicable Anti-Bribery Laws and ensure that it is subject to policies and procedures designed to promote and achieve compliance with all applicable Anti-Bribery Laws.

		
	23.23
	Conditions Subsequent

		
	(a)
	As soon as reasonably practicable, and in any event no later than the date falling 10 Business Days after the Closing Date:

		
	(i)
	the Borrower shall provide to the Agent copies of the bank mandates for the Accounts, including those evidencing signing rights in favour of the Agent and/or Security Agent (as applicable) in respect of each Controlled Account; and

		
	(ii)
	the Borrower shall use its reasonable endeavours to ensure that:

		
	(A)
	the Special Reserve funded on the Utilisation Date is paid into the Special Reserves Account;

		
	(B)
	the Deferred Maintenance and Environmental Conditions Reserve  funded on the Utilisation Date is paid into the Reserves Account;

		
	(C)
	the Hedging Reserve funded on the Utilisation Date is paid into the Reserves Account;

		
	(D)
	the Radon Reserve funded on the Utilisation Date is paid into the Reserves Account;

		
	(E)
	the Above-Ground Storage Tank Reserve funded on the Utilisation Date is paid into the Reserves Account; and

		
	(F)
	the Underground Storage Tank Reserve funded on the Utilisation Date is paid into the Reserves Account.

		
	(b)
	On or before Friday 5 December 2014, the Borrower shall provide to the Agent (or its legal counsel on its behalf):

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	(i)
	Carey Olsen (or any other representative of the Finance Parties) having used all reasonable endeavours to complete such registration:

		
	(A)
	confirmation that the Billet (duly executed on behalf of the relevant Obligor) has been presented to the Judicial Greffier of the Royal Court of Jersey and thereafter registered in the Jersey Public Registry, thereby creating a judicial hypothec over each Jersey Property; and

		
	(B)
	evidence that financing statements in relation to each Jersey Security Interest Agreement have been filed on the SIR;

		
	(ii)
	a copy of the Assignment Deed of Variation in relation to the Jersey Properties as was passed before the Jersey Royal Court on 28 November 2014;

		
	(iii)
	a treasury receipt in respect of stamp duty in connection with the Billet (to the extent that the sum(s) provided in accordance with paragraph 4(b) of Part B of Schedule 2 (Conditions Precedent) are not sufficient to complete the registration envisaged above);

		
	(iv)
	a 'wet-ink' original of the Billet in relation to the charging of the Properties located in Jersey, duly completed and executed by Jerseyco;

		
	(v)
	a 'wet-ink' original of the letter(s) of authority in the form approved by the Security Agent to register and/or re-register the Billet given by Jerseyco and addressed to the Security Agent;

		
	(vi)
	at least one original of each Standard Security (together with all relevant intimation letters) executed by each Obligor that owns a Property in Scotland;

		
	(vii)
	at least one original of an Assignation of Rent (together with all relevant intimation letters) executed by each Obligor that owns a Property in Scotland;

		
	(viii)
	one original of the Scottish Priority Deed executed by all parties thereto (together with all registration forms and registration dues required in respect thereof); 

		
	(ix)
	a legal opinion of Harper Macleod, legal advisers to the Arranger in Scotland addressed to the Finance Parties, substantially in the form distributed to the Original Lenders prior to signing this Agreement; 

		
	(x)
	the 'wet-ink' originals of the relevant Obligor's signatures to each of: 

		
	(A)
	the Assignment Deeds of Variation which relate to each Property in England and Scotland;

		
	(B)
	the guarantor consents to the UA Deed of Variation; and

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	(C)
	the guarantor consents and restatement to the UA Initial Deed of Variation,

in each case to the extent that Berwin Leighton Paisner LLP or Irwin Mitchell have not received these on or before the Closing Date; and
		
	(xi)
	with respect to the Properties located in Scotland:

		
	(A)
	the requisite registration forms under the Land Registration etc. (Scotland) Act 2012 for registration of the Ranking Agrement on behalf of the Borrower; and

		
	(B)
	confirmation of approval of the requisite registration forms under the Land Registration etc. (Scotland) Act 2012 for registration of the Standard Security.

		
	(c)
	On or before 5 December 2014,  the Borrower shall procure delivery to the Agent of a letter from Ogier in a form acceptable to the Agent confirming the continuing accuracy (and providing information on any changes if necessary) of the Property Report relating to the Properties in Jersey as at 5 December 2014.

		
	(d)
	On or before the date falling 10 Business Days after the Closing Date, to the extent the Reports are addressed to with a person other than an Obligor or a Finance Party, the Borrower shall provide to the Agent a copy of an appropriate due diligence report proceeds side letter (Report Proceeds Side Letter) duly executed by all parties to it.

		
	(e)
	The Borrower shall use its commercially reasonable endeavours to provide the Agent with: 

		
	(iii)
	the Tenant’s Insurance Broker Letter; and

		
	(iv)
	an executed copy of each "control agreement" with respect to each Account, 

in each case on or before the date falling 10 Business Days after the Closing Date.
		
	(f)
	As soon as reasonably practicable, the Borrower shall provide to the Agent a copy of the policies for the difference in conditions and/or difference in limits insurances referred to in paragraph 3(c) of Part B of Schedule 2 (Conditions Precedent).

		
	24.
	PROPERTY UNDERTAKINGS

		
	24.1
	Title

		
	(a)
	Each Obligor must exercise its rights and comply in all material respects with any covenant, stipulation or obligation (restrictive or otherwise) at any time affecting its Property.

Page 134

		
	(b)
	No Obligor may agree to any amendment, supplement, waiver, surrender or release of any covenant, stipulation or obligation (restrictive or otherwise) at any time affecting its Property without the prior written consent of the Majority Lenders (such consent not to be unreasonably withheld or delayed where such matters will be beneficial to the Obligors’ and the Lenders’ interest in the Property).

		
	(c)
	Each Obligor must promptly take all such steps as may be necessary or desirable to enable the Security created by the Security Documents to be registered, where appropriate, at the Land Registry or Land Register of Scotland (as appropriate).

		
	(d)
	Each Obligor must perform (or procure the performance of) all of its obligations under any law or regulation in any way related to or affecting the Property.

		
	24.2
	Lease Documents

		
	(a)
	No Obligor may without the consent of the Majority Lenders:

		
	(i)
	enter into any Agreement for Lease;

		
	(ii)
	(other than under an Agreement for Lease existing as at the date of this Agreement) grant or agree to grant any new Occupational Lease;

		
	(iii)
	grant, or enter into, any renewal Occupational Lease, except if an Obligor is required to grant such renewal lease in accordance with the terms of the relevant Existing Lease;

		
	(iv)
	agree to any amendment, supplement, extension, waiver, surrender or release in respect of any Lease Document or do, permit or omit to do anything that might have such effect;

		
	(v)
	exercise any right to break, determine or extend any Lease Document;

		
	(vi)
	forfeit or irritate or commence any forfeiture or irritancy proceedings in respect of any Lease Document;

		
	(vii)
	grant any licence or right to use or occupy any part of a Property, in each case except as permitted by the Existing Leases;

		
	(viii)
	consent to any sublease or assignment or assignation of any tenant’s interest under any Lease Document provided that the consent of the Majority Lenders is not to be withheld or delayed to the extent that to do so would require any Obligor unlawfully to withhold or delay the giving of any consent;

		
	(ix)
	consent to the grant of any licence or right to use or occupy any part of a Property by the tenant under a Lease Document, in each case except as permitted by the Existing Leases;

		
	(x)
	agree to any change of use under, or (except where required to do so under the terms of the relevant Lease Document) rent review in respect of, any Lease Document; or

Page 135

		
	(xi)
	serve any notice on any former tenant under any Lease Document (or on any guarantor of that former tenant) which would entitle it to a new lease or tenancy;

		
	(xii)
	serve any notice on any former tenant under any Lease Document under section 17(2) of the Landlord and Tenant (Covenants) Act 1995 or on any guarantor of any such former tenant under section 17(3) of that Act;

		
	(xiii)
	undertake (whether by itself or through contractors) any alterations (whether structural or non-structural), redevelopment, refurbishment or any other works in respect of any part of a Property, except such works (other than the Proposed Developments) that an Obligor or a Tenant is obligated to undertake under a Lease Document, in which case an Obligor must give prior written notice to the Agent; 

		
	(xiv)
	consent to a Tenant (whether by itself or through contractors) undertaking any alterations (whether structural or non-structural), redevelopment, refurbishment or any other works in respect of any part of a Property provided that (except in the case of the Proposed Developments) the consent of the Majority Lenders is not to be withheld or delayed to the extent that to do so would require any Obligor unlawfully to withhold or delay the giving of any consent; or

		
	(xv)
	commence, or enter into, any dispute resolution proceeding in respect of any Lease Document (except for any such proceeding existing as at the date of this agreement). 

		
	(b)
	Each Obligor must:

		
	(i)
	diligently collect or procure to be collected all Rental Income; 

		
	(ii)
	exercise its rights in relation to the Properties (including in relation to Healthcare Requirements) and comply with its obligations under each Lease Document (including in relation to Healthcare Requirements) except where such rights or obligations are immaterial or are subject in the case of any Landlord Discretions to obtaining consent pursuant to Clause 24.11 (Landlord Discretions); and

		
	(iii)
	use its reasonable endeavours to ensure that each Tenant complies with its obligations under each Lease Document (excluding in relation to Healthcare Requirements but without prejudice to paragraph (ii) above) (in each case, having regard to the availability of any amounts reserved pursuant to the terms of this Agreement for the remedy of any non-compliance with such obligations), except where such obligations are immaterial, 

in a proper and timely manner.
		
	(c)
	Any Lease Prepayment Proceeds must be paid into the Rental Income Account for application in accordance with Clause ‎18.3 (Rental Income Account).

Page 136

		
	(d)
	Each Obligor must supply to the Agent each Lease Document a true copy of each amendment, supplement or extension to a Lease Document and a true copy of each document recording any rent review in respect of a Lease Document promptly upon entering into the same.

		
	(e)
	Each Obligor must as soon as reasonably practicable (and in any event no more than 3 Business Days) after the receipt by each Obligor of any correspondence or notices:

		
	(i)
	of a claim by a tenant under any Lease Document;

		
	(ii)
	taking steps or threatening to take steps to terminate any Lease Document; or

		
	(iii)
	in respect of any material breach of any Lease Document,

deliver a copy to the Agent.
		
	24.3
	Headleases

		
	(a)
	Each Obligor must:

		
	(i)
	not do or fail to do or allow to be done any act as a result of which any Headlease or agreement for lease may become liable to forfeiture or otherwise be terminated;

		
	(ii)
	use its reasonable endeavours to ensure that each landlord complies with its material obligations under each Headlease; and

		
	(iii)
	if so required by the Security Agent, apply for relief against forfeiture or irritancy of any Headlease.

in a proper and timely manner.
		
	(b)
	No Obligor may:

		
	(i)
	agree to any amendment, supplement, waiver, surrender or release of any Headlease;

		
	(ii)
	exercise any right to break, determine or extend any Headlease; or

		
	(iii)
	agree to any rent review in respect of any Headlease.

		
	(c)
	Each Obligor must as soon as reasonably practicable (and in any event no more than 3 Business Days) after the receipt by such Obligor of any correspondence or notice:

		
	(i)
	taking steps or threatening to take steps to forfeit any Headlease; or

		
	(ii)
	in respect of any material breach of any Headlease,

deliver a copy to the Agent.
		
	24.4
	Maintenance

Page 137

Each Obligor shall exercise its rights against each Tenant under the Lease Documents to ensure that all buildings, plant, machinery, fixtures and fittings on such Obligor’s Property are in, and maintained by the Tenant in:
		
	(a)
	good and substantial repair and condition and, as appropriate, in good working order; and

		
	(b)
	such repair, condition and order as to enable them to be let in accordance with all applicable laws and regulations; for this purpose, a law or regulation will be regarded as applicable if it is either:

		
	(i)
	in force; or

		
	(ii)
	it is expected to come into force and a prudent property owner in the same business as the Obligor would ensure that its buildings, plant, machinery, fixtures and fittings were in such condition, repair and order in anticipation of that law or regulation coming into force,

but in each case only to the extent that the relevant Tenant is obliged to undertake such maintenance under the applicable Lease Document.
		
	24.5
	Development

		
	(a)
	No Obligor may without the prior written consent of the Agent:

		
	(i)
	make or allow to be made any application for planning permission in respect of any part of its Property; or

		
	(ii)
	carry out, enter into any agreement in respect of the carrying out of or allow to be carried out, any demolition, construction, structural alterations or additions, development or other similar operations in respect of any part of its Property including the Proposed Developments.

		
	(b)
	Paragraph (a) above shall not apply to:

		
	(i)
	any works (other than the Proposed Developments) carried out by the Tenant pursuant to clause 3.8 of the Umbrella Agreement or any Property Strategic Capital Expenditure that an Obligor is required to provide in respect of such works provided that the consent of the Majority Lenders is first obtained on the basis that the consent of the Majority Lenders is not to be withheld or delayed to the extent that to do so would require any Obligor unlawfully to withhold or delay the giving of any consent;

		
	(ii)
	the maintenance of the buildings, plant, machinery, fixtures and fittings in accordance with the Transaction Documents; or

		
	(iii)
	any Permitted Development.

		
	(c)
	Each Obligor must comply in all material respects with all planning laws, permissions, agreements and conditions to which its Property may be subject.

Page 138

		
	(d)
	The Finance Parties acknowledge that notwithstanding any other provision of the Finance Documents, all steps and actions reasonably required for the implementation of a Permitted Development shall be permitted under the Finance Documents and that no such step or action shall constitute a breach of or default (including a Default) under any of the Finance Documents.

		
	24.6
	Notices

Each Obligor must:
		
	(a)
	within 14 days after the receipt by the Obligor of any material application, requirement, order or notice served or given by any public or local or any other authority or any landlord with respect to its Property (or any part of it); and

		
	(b)
	within five days after receipt by the Obligor of:

		
	(i)
	any material demand made against an Obligor in respect of an indemnity relating to environmental or other matters; or

		
	(ii)
	any other matter which might reasonably be expected to have a material and adverse effect on the value of the relevant Property,

in each case:
		
	(x)
	deliver a copy to the Security Agent; and

		
	(y)
	inform the Security Agent of the steps taken or proposed to be taken to comply with the relevant requirement, order or notice.

		
	24.7
	Investigation of title

		
	(a)
	Each Obligor must grant the Security Agent or its lawyers on request all reasonable facilities within the reasonable power of the Obligor to enable the Security Agent or its lawyers to:

		
	(i)
	carry out investigations of title to any Property; and

		
	(ii)
	make such enquiries in relation to any part of any Property as a prudent mortgagee might carry out.

		
	(b)
	Each Obligor must deposit with the Security Agent (or such other person as the Security Agent may direct or agree) all deeds and documents of title relating to the Property and all local land charges, land charges and Land Registry search certificates and similar documents received by or on behalf of the Obligor or, in each case, the equivalent documentation in the relevant jurisdiction in which the Property is situated (or provide an undertaking in the agreed form to the Security Agent to do the same).

		
	24.8
	Power to remedy

		
	(a)
	If an Obligor fails to perform any obligations under the Finance Documents affecting its Property, the Obligor must allow the Security Agent or its agents and contractors:

Page 139

		
	(i)
	to enter any part of its Property;

		
	(ii)
	to comply with or object to any notice served on the Obligor in respect of its Property; and

		
	(iii)
	to take any action that the Security Agent may reasonably consider necessary or desirable to prevent or remedy any breach of any such term or to comply with or object to any such notice.

		
	(b)
	An Obligor must promptly on request by the Security Agent pay the third party out of pocket costs and expenses of the Security Agent or its agents and contractors incurred in connection with any action taken by it under this Clause.

		
	(c)
	No Finance Party shall be obliged to account as mortgagee in possession as a result of any action taken under this Clause.

		
	24.9
	Managing Agents

No Obligor may appoint any Managing Agent without the prior consent of, and on terms approved by, the Agent (acting on the instructions of the Majority Lenders).
		
	24.10
	Insurances

		
	(a)
	The Borrower must take all reasonable steps to ensure that at all times from the Utilisation Date Insurances are maintained in full force and effect subject to any normal insurance excess and market exclusions, which:

		
	(i)
	insure each Obligor in respect of its interests in each Property and the plant and machinery on each Property (including fixtures and improvements) for their full replacement value (being the total cost of entirely rebuilding, reinstating or replacing the relevant asset if it is completely destroyed, together with all related fees and demolition costs) and to:

		
	(A)
	provide (so long as cover is available with reputable insurance offices in the United Kingdom or through underwriters at Lloyds on reasonable commercial terms) cover against loss or damage, public authorities cover, equipment breakdown, by fire, storm, tempest, flood, earthquake, lightning, explosion, impact, aircraft and other aerial devices and articles dropped from them, riot, civil commotion and malicious damage, bursting or overflowing of water tanks, apparatus or pipes, acts of terrorism and all other normally insurable risks of loss or damage;

		
	(B)
	provide cover for site clearance, shoring or propping up, professional fees and value added tax together with adequate allowance for inflation; and

		
	(C)
	provide cover against acts of terrorism; and

Page 140

		
	(D)
	provide cover for loss of rent (in respect of a period of not less than three years or, if longer, the minimum period required under the Lease Documents) including provision for any increases in rent during the period of insurance; and

		
	(ii)
	include property owners’ public liability and third party liability insurance, including terrorism, in an amount not less than £1,000,000 per occurrence and £2,000,000 in the aggregate plus excess/umbrella liability in an amount not less than £10,000,000 (or in each case the sterling equivalent thereof);

		
	(iii)
	insure such other risks as a prudent company in the same business as the Obligors would insure or as the Agent may require (acting reasonably) in amounts acceptable to the Agent; and

		
	(iv)
	in each case are in an amount, and in form (including deductibles), and with an insurance company or underwriters, acceptable at all times to the Agent.

		
	(b)
	The Borrower must procure that the Security Agent (as agent and trustee for the Finance Parties) and its successors and/or assigns is named as mortgagee as its interest may appear, pursuant to a standard non-contributory mortgagee clause, under each of the Insurances (other than public liability and third party liability insurances, under which the Security Agent (as agent and trustee for the Finance Parties) and its successors and/or assigns shall be an additional insured as its interests may appear) but without liability on the part of the Security Agent or any other Finance Party for any premium or any other matter in relation to those Insurances.

		
	(c)
	The Borrower must procure that the Insurances comply with the following requirements:

		
	(i)
	each of the Insurances taken in the name of an Obligor must contain:

		
	(A)
	a non-invalidation and non-vitiation clause under which the Insurances will not be vitiated or avoided as against any insured party as a result of any circumstances beyond the control of that insured party or any misrepresentation, non-disclosure, or breach of any policy term or condition, on the part of any insured party or any agent of any insured party;

		
	(B)
	a waiver of the rights of subrogation of the insurer as against each Obligor, the Finance Parties and the tenants of each Property; and

		
	(C)
	a mortgagee/loss payee clause (other than public liability and third party liability insurances) in such terms as the Security Agent may reasonably require in respect of insurance claim payments otherwise payable to any Obligor;

Page 141

		
	(ii)
	the insurers must give at least 30 days’ notice (except 10 days’ notice for non-payment of premium) to the Security Agent if any insurer proposes to repudiate, rescind or cancel any Insurance, to treat it as avoided in whole or in part, to treat it as expired due to non-payment of premium or otherwise decline any valid claim under it by or on behalf of any insured party and must give the opportunity to rectify any such non-payment of premium within the notice period; and

		
	(iii)
	the relevant Obligor must be free to assign all amounts payable to it under each of its Insurances (subject to the Security Agent’s interests) and all its rights in connection with those amounts in favour of the Security Agent.

		
	(iv)
	all Insurances shall be issued by internationally recognised insurers with a rating of at least “A: X” or better by A.M. Best, and a financial strength rating of “A” or better by S&P and such other ratings as may be required by Moody’s, if Moody’s rates the Securities (each such insurance company shall be referred to as a “Qualified Insurer”).

		
	(v)
	no Insurance Policy shall cover other real property other than the Properties (blanket coverage) unless, in each case, such blanket coverage is approved in advance in writing by the Agent, the Security Agent’s interests are included therein as provided in this Agreement, such blanket coverage issued by a Qualified Insurer and such blanket coverage includes such changes to the coverages and requirements set forth herein as may be required by the Agent (including, without limitation, increases to the amount of coverages required herein).   

		
	(d)
	The Borrower must ensure that the Agent receives copies of the Insurances, receipts for the payment of premiums for insurance and any other information in connection with the insurances and claims under them which the Agent may reasonably require.

		
	(e)
	The Borrower must promptly notify the Agent of:

		
	(i)
	any material change in the terms and conditions of the policies or the risks covered within fifteen Business Days of a request from the Security Agent (but not more than twice a year);

		
	(ii)
	any amendment, supplement, extension, termination, avoidance or cancellation of any of the Insurances made or, to its knowledge, pending;

		
	(iii)
	any claim, and any actual refusal of any claim, under any of the Insurances; and

		
	(iv)
	any event or circumstance which has led or may lead to a breach by any Obligor of any term of this Clause.

		
	(f)
	Following receipt of any notice or other document referred to in paragraph (e)(i), the Agent may engage an insurance adviser for the purpose of confirming 

Page 142

that the terms of any renewed Insurance complies with the terms of this Clause. If the Agent's insurance adviser determines that any term of this Clause would be breached by the Insurances as renewed on the proposed terms, the Agent shall promptly notify the Lenders providing details of such non-compliance.
		
	(g)
	Each Obligor must:

		
	(i)
	comply with the terms of the Insurances;

		
	(ii)
	not do or permit anything to be done which may make void or voidable any of the Insurances; and

		
	(iii)
	comply with all reasonable risk improvement requirements of its insurers.

		
	(h)
	The Borrower must ensure that:

		
	(i)
	each premium for the Insurances is paid promptly and in any event prior to the commencement of the period of insurance for which that premium is payable; and

		
	(ii)
	all other things necessary are done so as to keep each of the Insurances in force.

		
	(i)
	Notwithstanding the foregoing, to the extent: 

		
	(i)
	the Existing Lease in effect at a particular Property on the date hereof is in full force and effect;

		
	(ii)
	no default beyond any applicable notice and cure period has occurred and is continuing under the Existing Lease; 

		
	(iii)
	the Tenant maintains the insurance required to be maintained pursuant to the terms of this Clause 24.10 with respect to such Individual Property, including but not limited to naming the Security Agent and its successors and/or assigns, as its interest may appear, on the Insurances as required herein; and 

		
	(iv)
	the relevant Obligor shall have provided to the Agent with evidence, satisfactory to the Agent, that the Tenant under such Existing Lease maintains in full force and effect the insurances described in clause (iii) above (the Required Insurances), which evidence shall be provided to the Agent five days prior to the date any of the Required Insurances would lapse, cancel or expire,

((i), (ii), (iii) and (iv) collectively the Tenant Insurance Requirements),
then each Obligor shall to be deemed in compliance with the requirements herein under this Clause 24.10 with respect to that Property and will not be required to maintain separate coverage required under this Clause 24.10 with respect to such Property.  However if Tenant fails to meet the Tenant Insurance Requirements (in whole or in part), then each relevant Obligor at its sole cost 

Page 143

and expense shall obtain and/or procure all insurance (or such additional or difference in conditions or difference in limits insurance in addition to the primary insurance maintained by the Tenant) to ensure that the requirements of this Clause 24.10 are complied with so as to provide coverage that will pay proceeds in an amount sufficient to restore the Property to the extent such proceeds are not paid or otherwise made available under the insurance policies carried by the Tenant.  
		
	(j)
	If an Obligor fails to comply with any term of this Clause, the Agent may, at the expense of the Obligors, effect any insurance and generally do such things and take such other action as the Agent may reasonably consider necessary or desirable to prevent or remedy any breach of this Clause.

		
	(k)
	Except as provided below, the Net Proceeds of any Insurances must, if the Agent so requires, be paid into the Deposit Account for application in accordance with Clause 18.5 (Cash Trap Account).

		
	(l)
	To the extent required by the basis of settlement under any Insurances or under any Lease Document, each Obligor must apply moneys received under any Insurances in respect of a Property towards replacing, restoring or reinstating that Property.

		
	(m)
	The proceeds of any loss of rent insurance will be treated as Rental Income and applied in such manner as the Agent (acting reasonably) requires to have effect as if it were Rental Income received over the period of the loss of rent.

		
	(n)
	Moneys received under liability policies held by an Obligor which are required by that Obligor to satisfy established liabilities of the Obligor to third parties must be used to satisfy these liabilities.

		
	24.11
	Landlord Discretions

		
	(a)
	No Obligor shall exercise any Landlord Discretions without the prior written consent of the Agent (acting on the instructions of the Majority Lenders) provided that where a Landlord Discretion involves a consent which is required of the relevant Obligor under the relevant Lease Document, the consent of the Agent is not to be withheld or delayed to the extent that to do so would require such Obligor unlawfully to withhold or delay the giving of such consent.

		
	(b)
	Any action or inaction to which the Agent has given its consent in accordance with paragraph (a) above shall be permitted under the Finance Documents and shall not constitute a breach of or default (including a Default) under any of the Finance Documents. 

		
	(c)
	If the Agent fails to give its consent in accordance with paragraph (a) above, then any resulting default or breach by an Obligor under any of the Lease Documents due to a consent having been unlawfully withheld or delayed shall not constitute a breach of or default (including a Default) under any of the Finance Documents. 

Page 144

		
	(d)
	The provisions of this Clause 24.11 shall not apply in relation to the Proposed Developments.

		
	24.12
	Environmental matters

		
	(a)
	Each Obligor must:

		
	(i)
	comply and ensure that any relevant third party complies with all Environmental Law;

		
	(ii)
	obtain, maintain and ensure compliance with all requisite Environmental Permits applicable to it or to a Property; and

		
	(iii)
	implement procedures to monitor compliance with and to prevent liability under any Environmental Law applicable to it or a Property,

where failure to do so has or is reasonably likely to have a Material Adverse Effect or result in any liability for a Finance Party.
		
	(b)
	Each Obligor must, promptly upon becoming aware, notify the Agent of:

		
	(i)
	any Environmental Claim started, or to its knowledge, threatened;

		
	(ii)
	any circumstances reasonably likely to result in an Environmental Claim; or

		
	(iii)
	any suspension, revocation or notification of any Environmental Permit.

		
	(c)
	Each Obligor must indemnify each Finance Party against any loss or liability which:

		
	(i)
	that Finance Party incurs as a result of any actual or alleged breach of any Environmental Law by any person; and

		
	(ii)
	would not have arisen if a Finance Document had not been entered into,

unless it is caused by that Finance Party’s gross negligence or wilful misconduct.
		
	24.13
	Radon

		
	(a)
	The Borrower shall deliver copies of the Radon Sampling results in respect of each relevant Property to the Agent within five Business Days of  receipt of such results.  

		
	(b)
	If the Radon Sampling results in respect of any Property is above the UK action level of 200 Bq/m^3 for radon (a Radon Mitigation Property), the Borrower shall, at its sole cost and expense, retain a qualified environmental professional acceptable to Agent (acting on the instructions of the Majority Lenders each acting reasonably) (the Environmental Professional) to implement a radon mitigation system (Radon Mitigation System) at that Property  to reduce indoor radiation levels in respect of that Radon Mitigation Property below 200 Bq/m^3.

Page 145

		
	(c)
	Unless otherwise agree to in writing by the Agent, a  Radon Mitigation System shall be installed in each Radon Mitigation Property within 12 months of approval by the Agent of the Environmental Professional in respect of the relevant Radon Mitigation Property.

		
	(d)
	At the Agent’s request, the Borrower shall promptly provide reasonable details as to the progress and results of the Radon Sampling and the implementation of any Radon Mitigation Systems.

		
	24.14
	Above-Ground Storage Tanks

The Borrower shall, at its sole cost and expense, install secondary containment for the on-site Above-Ground Storage Tank at each of the Properties known as Hulcott Nursing Home and Cedar House Care Home which complies with all applicable laws and which:
		
	(a)
	is located within an impervious liner or containment area with a capacity of at least 110 per cent. of the volume of the tank; or 

		
	(b)
	if more than one Above-Ground Storage Tank is installed at the relevant Property within the same secondary containment structure, is located within an impervious liner or containment area with a capacity of at least 110 per cent. of the largest Above-Ground Storage Tank installed at that Property.

		
	24.15
	Underground Storage Tanks

		
	(a)
	The Borrower, shall, at its sole cost and expense, retain a qualified environmental professional acceptable to the Agent (acting on the instructions of the Majority Lenders acting reasonably) (the UST Professional) to complete further investigations to determine the presence of Underground Storage Tanks at the Rectory House Care Home Property; the Gildawood Court Care Home Property and the Denham Manor Care Home Property (the UST Further Investigations).

		
	(b)
	The Borrower shall ensure that:

		
	(i)
	the UST Further Investigations are implemented in accordance with a scope of work prepared by the UST Professional to determine the presence of Underground Storage Tanks at each Property referred to in paragraph (a) above approved by the Agent (acting on the instructions of the Majority Lenders each acting reasonably);

		
	(ii)
	within 90 days of Closing (or such other date agreed in writing by the Agent (acting on the instructions of the Majority Lenders acting reasonably):

		
	(A)
	the UST Professional completes the UST Further Investigations; and

		
	(B)
	it delivers to the Agent final reports prepared by the UST Professional in respect of the Further Investigations including recommendations for the closure in accordance with all applicable environmental laws of any Underground Storage 

Page 146

Tanks identified in respect of any relevant Property in connection with the UST Further Investigations (the Investigation Reports). 
		
	(c)
	If any Underground Storage Tank is identified in respect of any relevant Property in connection with the UST Further Investigations, the Obligors shall procure that the UST Professional prepares a scope of work satisfactory to the Agent (acting on the instructions of the Majority Lenders each acting reasonably) (UST Closure Scope of Work) for the implementation of all works necessary in order to close the relevant Underground Storage Tanks including any such works necessary to comply with all applicable environmental laws (UST Closure Work).

		
	(d)
	The Obligors shall procure that the UST Closure Work is completed by the UST Professional in accordance with the UST Closure Scope of Work within 12 months of Closing (or such other period agreed in writing by the Agent (acting on the instructions of the Majority Lenders each acting reasonably).  

		
	(e)
	The Obligors shall, and shall procure that the UST Professional will, promptly provide to the Agent reasonable details as to the progress and completion of the UST Closure Work.  

		
	(f)
	The Obligors shall, promptly following completion of the UST Closure Work in respect of any relevant Property, deliver to the Agent final reports prepared by the UST Professional in respect of the UST Closure Work relating to that Property including the UST Professional’s findings with respect to any Releases associated with any Underground Storage Tanks identified in respect of the relevant Property in connection with the UST Closure Work and recommendations for any additional investigation or required remediation (the UST Closure Reports).  

		
	(g)
	The Obligors shall procure that the UST Professional prepares a scope of work satisfactory to the Agent (acting on the instructions of the Majority Lenders each acting reasonably) for the implementation of all necessary investigation and required remediation works to address any Releases associated with any Underground Storage Tanks identified in a UST Closure Report  (the Remediation Work).  

		
	(h)
	The Obligors shall procure that all Remediation Work is completed within one year of Closing.  Borrower and the Environmental Professional shall promptly provide to the Agent reasonable details as to the progress and completion of the Remediation Work.

		
	(i)
	The Obligors shall, and shall procure that the UST Professional will, keep the Agent promptly informed with reasonable details as to the progress and completion of any Remediation Work.

Page 147

		
	25.
	EVENTS OF DEFAULT

Each of the events or circumstances set out in Clause 25 is an Event of Default (save for Clause 25.20‎ (Acceleration)).
		
	25.1
	Non-payment

An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the place and in the currency in which it is expressed to be payable unless:
		
	(a)
	its failure to pay is caused by:

		
	(i)
	administrative or technical error; or

		
	(ii)
	a Disruption Event; and

payment is made within 3 Business Days of its due date.
		
	25.2
	Financial covenants and other obligations

Any requirement of Clause 22 (Financial covenants) is not satisfied or the Borrower does not comply with Clause 21.2 (Compliance Certificate) or Clause 21.5 (Monitoring of Properties).
		
	25.3
	Other obligations

		
	(a)
	An Obligor does not comply with any term of:

		
	(i)
	Clause 18  (Bank Accounts);

		
	(ii)
	Clause ‎21.8 (Notification of default);

		
	(iii)
	Clause 24.2 (Lease Documents) or Clause 24.3 (Headleases); or

		
	(iv)
	Clause 23.23 (Conditions subsequent).

		
	(b)
	An Obligor or the Indemnitor does not comply with any provision of the Finance Documents (other than those referred to in Clause ‎25.1 (Non-payment), Clause ‎25.2 (Financial covenants) and paragraph (a) above).

		
	(c)
	No Event of Default under paragraph (b) above will occur if the failure to comply is capable of remedy and is remedied within 15 Business Days of the earlier of (i) the Agent giving notice to the Borrower and (ii) any Obligor or the Indemnitor becoming aware of the failure to comply.

		
	25.4
	Misrepresentation

		
	(a)
	Any representation or statement made or deemed to be made by a Transaction Obligor in the Finance Documents or any other document delivered by or on behalf of any Transaction Obligor under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made.

Page 148

		
	(b)
	No Event of Default under paragraph (a) above will occur if the misrepresentation or misstatement is capable of remedy in the opinion of the Agent (acting reasonably) and is remedied within 15 Business Days of the earlier of (i) the Agent giving notice to the Borrower and (ii) the Borrower becoming aware of such misrepresentation or misstatement.

		
	25.5
	Cross default

		
	(a)
	Any Financial Indebtedness of any Obligor is not paid when due nor within any originally applicable grace period.

		
	(b)
	Any Financial Indebtedness of any Obligor is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described).

		
	(c)
	Any commitment for any Financial Indebtedness of any Obligor is cancelled or suspended by a creditor of any Obligor as a result of an event of default (however described).

		
	(d)
	Any creditor of any Obligor becomes entitled to declare any Financial Indebtedness of any Obligor due and payable prior to its specified maturity as a result of an event of default (however described).

		
	(e)
	No Event of Default will occur under this Clause 25.5 if:

		
	(i)
	the relevant Financial Indebtedness is owed by an Obligor to another member of the Group or constitutes Subordinated Debt; or

		
	(ii)
	the aggregate amount of Financial Indebtedness falling within paragraphs (a) to (e) above is less than or equal to GBP 100,000.

		
	25.6
	Insolvency

		
	(a)
	An Obligor:

		
	(i)
	is unable or admits inability to pay its debts as they fall due under applicable law;

		
	(ii)
	is declared to, be unable to pay its debts under applicable law;

		
	(iii)
	suspends or threatens to suspend making payments on any of its debts; or

		
	(iv)
	by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors (excluding any Finance Party in its capacity as such) with a view to rescheduling any of its indebtedness.

		
	(b)
	A moratorium is declared in respect of any indebtedness of any Obligor.  If a moratorium occurs, the ending of the moratorium will not remedy any Event of Default caused by that moratorium.

Page 149

		
	25.7
	Insolvency proceedings

		
	(a)
	Any corporate action, legal proceedings or other procedure or step is taken in relation to:

		
	(i)
	the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any Obligor including (without limitation) in relation to becoming "bankrupt" within the meaning of Article 8 of the Interpretation (Jersey) Law 1954;

		
	(ii)
	a composition, compromise, assignment, assignation or arrangement with any creditor of any Obligor including (without limitation) any procedure or proceedings referred to in Article 125 of the Companies (Jersey) Law 1991;

		
	(iii)
	the appointment (whether by vesting of the property or otherwise) of a liquidator, receiver, administrative receiver, administrator, compulsory manager, the Viscount of the Royal Court of Jersey or other similar officer in respect of any Obligor or any of its assets including (without limitation) pursuant to Part 21 of the Companies (Jersey) Law 1991;

		
	(iv)
	any application for a declaration of en désastre in respect of any property of any Obligor in the Courts of Jersey; or

		
	(v)
	enforcement of any Security over any assets of any Obligor,

or any analogous procedure or step is taken in any jurisdiction.
		
	(b)
	Paragraph (a) shall not apply to any of the above proceedings which is discharged, stayed or dismissed within 30 days of commencement.

		
	25.8
	Creditors’ process

Any expropriation, attachment, sequestration, distress or execution (or equivalent in any jurisdiction) affects any asset or assets of an Obligor having an aggregate value of at least GBP 250,000  and is not discharged within 30 days.
		
	25.9
	Cessation of business

An Obligor ceases, to carry on all or a material part of its business except as a result of any disposal allowed under this Agreement.
		
	25.10
	Proceedings

Any litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency (including Environmental Claims) are (to the best of its knowledge and belief) started against any Obligor which are reasonably likely to be adversely determined and, if so determined, have a Material Adverse Effect.

Page 150

		
	25.11
	Unlawfulness and invalidity

		
	(a)
	It is or becomes unlawful for a Transaction Obligor to perform any of its material obligations under the Finance Documents or any Transaction Security created or expressed to be created or evidenced by the Security Documents ceases to be effective or any subordination created under a Subordination Agreement is or becomes unlawful.

		
	(b)
	Any material obligation or obligations of any Transaction Obligor under any Finance Documents are not (subject to the Legal Reservations) or cease to be legal, valid, binding or enforceable and the cessation individually or cumulatively materially and adversely affects the interests of the Finance Parties under the Finance Documents.

		
	25.12
	Repudiation and rescission of agreements

A Transaction Obligor (or any other relevant party) rescinds or purports to rescind or repudiates or purports to repudiate a Finance Document or any of the Transaction Security or evidences an intention to rescind or repudiate a Finance Document or any Transaction Security.
		
	25.13
	Audit qualification

The Auditor qualifies its report on any audited consolidated financial statements of any Obligor in circumstances where the matters in respect of which such qualification was made are, or could reasonably be expected to be, materially adverse to the interests of the Lenders.
		
	25.14
	Compulsory purchase

		
	(a)
	Any part of any Property is compulsorily purchased or the applicable local authority makes an order for the compulsory purchase of all or any part of any Property; and

		
	(b)
	in the opinion of the Majority Lenders, taking into account the amount and timing of any compensation payable, the compulsory purchase has or will have a Material Adverse Effect.

		
	25.15
	Major damage

Any part of any Property is destroyed or damaged and in the opinion of the Majority Lenders, taking into account the amount and timing of receipt of the proceeds of insurance effected in accordance with the terms of this Agreement, the destruction or damage has or will have a Material Adverse Effect.
		
	25.16
	Headlease

Forfeiture or irritancy proceedings with respect to a Headlease are commenced or a Headlease is forfeited or irritated.

Page 151

		
	25.17
	Ownership of the Obligors

An Obligor is not or ceases to be a legally and beneficially wholly owned Subsidiary of the Borrower, other than in accordance with Clause 23.5 (Disposals).
		
	25.18
	Indemnitor Guarantee

The Indemnitor fails to comply with a material provision of the Indemnitor Guarantee and such non-compliance (if remediable) continues after the expiration of applicable grace periods (if any) or if no grace period is specified, after 15 Business Days.
		
	25.19
	Material adverse change

Any event or circumstance occurs which has a Material Adverse Effect.
		
	25.20
	Acceleration

		
	(a)
	On and at any time after the occurrence of an Event of Default which is continuing, the Agent may, and shall if so directed by the Majority Lenders, by notice to the Borrower:

		
	(i)
	cancel the Total Commitments whereupon they shall immediately be cancelled;

		
	(ii)
	declare that all or part of the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable;

		
	(iii)
	declare that all or part of the Loan be payable on demand, whereupon they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders; and/or

		
	(iv)
	exercise or direct the Security Agent to exercise any or all of its rights, remedies, powers or discretions under the Finance Documents.

		
	25.21
	Reserved Matters

		
	(a)
	Subject to paragraph (b) below, if and only to the extent that a Default or Event of Default would be caused directly as a result of or constituted by any Reserved Matter then that Default or Event of Default shall be deemed to be waived.

		
	(b)
	Nothing in paragraph (a) above shall affect or constitute a waiver of:

		
	(i)
	Clauses 24.13 (Radon), 24.14 (Above-Ground Storage Tanks) or 24.15 (Underground Storage Tanks); or

		
	(ii)
	any requirement in any Finance Document to take remedial or similar action in respect of any Reserved Matter or to fund the reserves required in connection with any Reserved Matter.

Page 152

		
	26.
	CHANGES TO THE LENDERS

		
	26.1
	Assignments and transfers by the Lenders

		
	(a)
	Subject to this Clause ‎26, a Lender (the Existing Lender) may:

		
	(i)
	assign any of its rights; or

		
	(ii)
	transfer by novation any of its rights and obligations,

to another bank or financial institution or trust, fund or other entity established for or which is regularly engaged in investing in loans, bonds, securities or other financial assets or to an ABCP conduit (the New Lender).
		
	(b)
	A Lender may not assign or transfer any of its rights and/or obligations to an Excluded Transferee unless an Event of Default is continuing.

		
	26.2
	Conditions of assignment or transfer

		
	(a)
	An assignment will only be effective on:

		
	(i)
	receipt by the Agent (whether in the Assignment Agreement or otherwise) of written confirmation from the New Lender (in form and substance satisfactory to the Agent) that the New Lender will assume the same obligations to the other Finance Parties as it would have been under if it was an Original Lender; and

		
	(ii)
	performance by the Agent of all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to such assignment to a New Lender, the completion of which the Agent shall promptly notify to the Existing Lender and the New Lender.

		
	(b)
	A transfer will only be effective if the procedure set out in Clause 26.5 (Procedure for transfer) is complied with.

		
	(c)
	If:

		
	(i)
	a Lender assigns, transfers or sub-participates any of its rights or obligations under the Finance Documents or changes its Facility Office; and

		
	(ii)
	as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause ‎13 (Tax gross up and indemnities) or Clause 14 (Increased costs),  

then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer, sub-participation or change had not occurred.  This paragraph (c) shall not apply in relation to Clause ‎13.2 (Tax gross-up), to a Treaty Lender that has included a confirmation of its scheme reference number 

Page 153

and its jurisdiction of tax residence in accordance with paragraph (g)(ii)(B) of Clause ‎13.2 (Tax gross-up) if the Obligor making the payment has not made a Obligor DTTP Filing in respect of that Treaty Lender.
		
	(d)
	Each New Lender, by executing the relevant Transfer Certificate or Assignment Agreement, confirms, for the avoidance of doubt, that the Agent has authority to execute on its behalf any amendment or waiver that has been approved by or on behalf of the requisite Lender or Lenders in accordance with this Agreement on or prior to the date on which the transfer or assignment becomes effective in accordance with this Agreement and that it is bound by that decision to the same extent as the Existing Lender would have been had it remained a Lender.

		
	26.3
	Assignment or transfer fee

The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of £1,500.
		
	26.4
	Limitation of responsibility of Existing Lenders

		
	(a)
	Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

		
	(i)
	the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents;

		
	(ii)
	the financial condition of any Obligor;

		
	(iii)
	the performance and observance by any Obligor of its obligations under the Finance Documents or any other documents; or

		
	(iv)
	the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document,

and any representations or warranties implied by law are excluded.
		
	(b)
	Each New Lender confirms to the Existing Lender and the other Finance Parties that it:

		
	(i)
	has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any Finance Document; and

		
	(ii)
	will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force.

		
	(c)
	Nothing in any Finance Document obliges an Existing Lender to:

Page 154

		
	(i)
	accept a re-transfer or re-assignment from a New Lender of any of the rights and obligations assigned or transferred under this Clause 26; or

		
	(ii)
	support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Finance Documents or otherwise.

		
	26.5
	Procedure for transfer

		
	(a)
	Subject to the conditions set out in Clause 26.2 (Conditions of assignment or transfer) a transfer is effected in accordance with paragraph (c) below when the Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate.

		
	(b)
	The Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender.

		
	(c)
	Subject to Clause ‎26.9 (Pro rata interest settlement), on the Transfer Date:

		
	(i)
	to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each of the Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall be cancelled (being the Discharged Rights and Obligations);

		
	(ii)
	each of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as that Obligor and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender;

		
	(iii)
	the Agent, the Security Agent, the Arranger, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Security Agent, the Arranger and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and

		
	(iv)
	the New Lender shall become a Party as a Lender.

Page 155

		
	26.6
	Procedure for assignment

		
	(a)
	Subject to the conditions set out in Clause ‎26.2 (Conditions of assignment or transfer) an assignment may be effected in accordance with paragraph (c) below when the Agent executes an otherwise duly completed Assignment Agreement delivered to it by the Existing Lender and the New Lender.  The Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Assignment Agreement appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Assignment Agreement.

		
	(b)
	The Agent shall only be obliged to execute an Assignment Agreement delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the assignment to such New Lender.

		
	(c)
	Subject to Clause ‎26.9 (Pro rata interest settlement), on the Transfer Date:

		
	(i)
	the Existing Lender will assign absolutely to the New Lender the rights under the Finance Documents expressed to be the subject of the assignment in the Assignment Agreement;

		
	(ii)
	the Existing Lender will be released by each Obligor and the other Finance Parties from the obligations owed by it (the Relevant Obligations) and expressed to be the subject of the release in the Assignment Agreement; and

		
	(iii)
	the New Lender shall become a Party as a Lender and will be bound by obligations equivalent to the Relevant Obligations.

		
	(d)
	Lenders may utilise procedures other than those set out in this Clause ‎26.6 to assign their rights under the Finance Documents (but not, without the consent of the relevant Obligor or unless in accordance with Clause ‎26.5 (Procedure for transfer), to obtain a release by that Obligor from the obligations owed to that Obligor by the Lenders nor the assumption of equivalent obligations by a New Lender) provided that they comply with the conditions set out in Clause ‎26.2 (Conditions of assignment or transfer).

		
	26.7
	Copy of Transfer Certificate or Assignment Agreement to Borrower

The Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate or an Assignment Agreement, send to the Borrower a copy of that Transfer Certificate or Assignment Agreement.
		
	26.8
	Security over Lenders’ rights

In addition to the other rights provided to Lenders under this Clause 26‎, each Lender may without consulting with or obtaining consent from any Obligor, at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) 

Page 156

all or any of its rights under any Finance Document to secure obligations of that Lender including, without limitation:
		
	(a)
	any charge, assignment or other Security to secure obligations to a federal reserve or central bank; and

		
	(b)
	in the case of any Lender which is a fund, any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as security for those obligations or securities,

except that no such charge, assignment or Security shall:
		
	(i)
	release a Lender from any of its obligations under the Finance Documents or substitute the beneficiary of the relevant charge, assignment or Security for the Lender as a party to any of the Finance Documents; or

		
	(ii)
	require any payments to be made by an Obligor other than or in excess of, or grant to any person any more extensive rights than, those required to be made or granted to the relevant Lender under the Finance Documents.

		
	26.9
	Pro rata interest settlement

		
	(a)
	If the Agent has notified the Lenders that it is able to distribute interest payments on a “pro rata basis” to Existing Lenders and New Lenders then (in respect of any transfer pursuant to Clause ‎26.5 (Procedure for transfer) or any assignment pursuant to Clause 26.6‎ (Procedure for assignment) the Transfer Date of which, in each case, is after the date of such notification and is not on the last day of an Interest Period):

		
	(i)
	any interest or fees in respect of the relevant participation which are expressed to accrue by reference to the lapse of time shall continue to accrue in favour of the Existing Lender up to but excluding the Transfer Date (Accrued Amounts) and shall become due and payable to the Existing Lender (without further interest accruing on them) on the last day of the current Interest Period (or, if the Interest Period is longer than six Months, on the next of the dates which falls at six Monthly intervals after the first day of that Interest Period); and

		
	(ii)
	the rights assigned or transferred by the Existing Lender will not include the right to the Accrued Amounts, so that, for the avoidance of doubt:

		
	(A)
	when the Accrued Amounts become payable, those Accrued Amounts will be payable to the Existing Lender; and

		
	(B)
	the amount payable to the New Lender on that date will be the amount which would, but for the application of this Clause ‎26.9, 

Page 157

have been payable to it on that date, but after deduction of the Accrued Amounts.
		
	(b)
	In this Clause 26 references to “Interest Period” shall be construed to include a reference to any other period for accrual of fees.

		
	27.
	CHANGES TO THE TRANSACTION OBLIGORS

		
	27.1
	Assignments and transfer by Obligors

No Obligor nor the Indemnitor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.
		
	27.2
	Original Obligors

		
	(a)
	Pursuant to Clause 5.6 (Accession of Original Obligors), the Original Borrower shall accede to the Finance Documents as a Borrower and a Guarantor by delivering to the Agent a duly completed and executed Original Obligor Accession Deed.

		
	(b)
	Pursuant to Clause 5.6 (Accession of Original Obligors), immediately following Utilisation, the Original Guarantors shall accede to the Finance Documents as Guarantors by delivering to the Agent a duly completed and executed Original Obligor Accession Deed.

		
	27.3
	Additional Borrowers

		
	(a)
	Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 21.9 (“Know your customer” checks) and only in connection with a Permitted REIT Reorganisation, the Borrower may request that one or more of its Affiliates becomes an Additional Borrower and any such company (the Relevant Company) shall become a Borrower if:

		
	(i)
	it is incorporated in the same jurisdiction as an existing Borrower or a jurisdiction specified in the Final REIT Tax Structure Report;

		
	(ii)
	the Borrower and the Relevant Company deliver to the Agent a duly completed and executed Accession Deed;

		
	(iii)
	the Relevant Company is (or becomes) a Guarantor prior to becoming a Borrower;

		
	(iv)
	the Borrower confirms that no Default is continuing or would occur as a result of the Relevant Company becoming an Additional Borrower; and

		
	(v)
	the Agent has received all of the documents and other evidence listed in Part C and, if applicable, Part D of Schedule 2 (Conditions precedent) in relation to that Additional Guarantor, each in form and substance satisfactory to the Agent (acting on the instructions of the Majority Lenders).

Page 158

		
	(b)
	The Agent shall notify the Original Borrower and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it (acting on the instructions of the Majority Lenders)) all the documents and other evidence listed in Part C and, if applicable, Part D of Schedule 2 (Conditions precedent).

		
	(c)
	Other than to the extent that the Majority Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in paragraph (b) above, the Lenders authorise (but do not require) the Agent to give that notification.  The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.

		
	27.4
	Resignation of a Borrower

		
	(a)
	In connection with a Permitted REIT Reorganisation, the Original Borrower may request that a Borrower ceases to be a Borrower by delivering to the Agent a Resignation Letter.

		
	(b)
	The Agent shall accept a Resignation Letter and notify the Original Borrower and the Lenders of its acceptance if:

		
	(i)
	no Default is continuing or would result from the acceptance of the Resignation Letter (and the Borrower has confirmed this is the case);

		
	(ii)
	the Borrower is under no actual or contingent obligations as a Borrower under any Finance Documents; and

		
	(iii)
	the Borrower has ceased to have an interest in any Property and all the Lenders have consented to the Borrower's request.

		
	(c)
	On acceptance by the Agent of a Resignation Letter the relevant Borrower shall cease to be a Borrower and shall have no further rights or obligations under the Finance Documents.

		
	27.5
	Additional Guarantors

		
	(a)
	Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 21.9 (“Know your customer” checks), the Borrower may request that any of its wholly owned Subsidiaries which is not a Dormant Subsidiary becomes an Additional Guarantor.  That Subsidiary shall become an Additional Guarantor if:

		
	(i)
	it is incorporated in the same jurisdiction as an existing Guarantor and the Majority Lenders approve the addition of that Subsidiary or otherwise if all the Lenders approve the addition of that Subsidiary;

		
	(ii)
	the Borrower and that Subsidiary deliver to the Agent a duly completed and executed Accession Deed;

		
	(iii)
	the Borrower confirms that no Default is continuing or would occur as a result of that Subsidiary becoming an Additional Guarantor; and

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	(iv)
	the Agent has received all of the documents and other evidence listed in Part C and, if applicable, Part D of Schedule 2 (Conditions precedent) in relation to that Additional Guarantor, each in form and substance satisfactory to the Agent (acting on the instructions of the Majority Lenders).

		
	(b)
	The Agent shall notify the Borrower and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it (acting on the instructions of the Majority Lenders)) all the documents and other evidence listed in Part C and, if applicable, Part D of Schedule 2 (Conditions precedent).

		
	(c)
	Other than to the extent that the Majority Lenders notify the Agent in writing to the contrary before the Agent gives the notification described in paragraph (b) above, the Lenders authorise (but do not require) the Agent to give that notification.  The Agent shall not be liable for any damages, costs or losses whatsoever as a result of giving any such notification.

		
	27.6
	Resignation of a Guarantor

		
	(a)
	In connection with a Permitted REIT Reorganisation, the Borrower may request that a Guarantor ceases to be a Guarantor by delivering to the Agent a Resignation Letter.

		
	(b)
	The Agent shall accept a Resignation Letter and notify the Borrower and the Lenders of its acceptance if:

		
	(i)
	no Default is continuing or would result from the acceptance of the Resignation Letter (and the Borrower has confirmed this is the case);

		
	(ii)
	no payment is due from the Guarantor under Clause 19.1 (Guarantee and Indemnity);

		
	(iii)
	where the Guarantor is also a Borrower, it is under no actual or contingent obligations as a Borrower under any Finance Documents and has resigned and ceased to be a Borrower under Clause 27.4 (Resignation of a Borrower); and

		
	(iv)
	either:

		
	(A)
	the Guarantor has ceased to have an interest in any Property and all the Lenders have consented to the Borrower's request; or

		
	(B)
	the Borrower is disposing of its shares in the Guarantor in accordance with Clause ‎ 23.5 (Disposals).

		
	(c)
	On acceptance by the Agent of a Resignation Letter the relevant Guarantor shall cease to be a Guarantor and shall have no further rights or obligations under the Finance Documents.

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	27.7
	Release of security

		
	(a)
	If an Obligor has ceased to be an Obligor in a manner allowed by this Agreement and has no further rights or obligations under the Finance Documents, any security created by that Obligor over its assets under the Security Documents will be released.

		
	(b)
	If a disposal of any asset subject to security created by a Security Document is made in the following circumstances:

		
	(i)
	the disposal is permitted by the terms of this Agreement;

		
	(ii)
	all the Lenders agree to the disposal;

		
	(iii)
	the disposal is being made at the request of the Security Agent in circumstances where any Security created by the Security Documents has become enforceable; or

		
	(iv)
	the disposal is being effected by enforcement of a Security Document,

the Security Agent shall release the asset(s) being disposed of (and, in the case of a disposal of shares in an Obligor which results in it or any of its Subsidiaries ceasing to be a member of the Group, all the assets of that Obligor and those Subsidiaries) from any security over those assets created by a Security Document, in each case (in the circumstances set out in sub-paragraphs (i) and (ii) above) without the requirement for any further consent, sanction, authority or further confirmation from any person. 
		
	(c)
	If the Security Agent is satisfied that a release is allowed under this Clause, (at the request and expense of the Borrower) each Finance Party must enter into any document and do all such other things which are reasonably required to achieve that release. Each other Finance Party irrevocably authorises the Security Agent to enter into any such document.  Any release will not affect the obligations of any other Obligor under the Finance Documents.

		
	27.8
	Additional Subordinated Creditors

		
	(a)
	The Borrower may request that any person becomes a Subordinated Creditor, with the prior approval of the Agent (acting on the instructions of the Majority Lenders), by delivering to the Agent:

		
	(i)
	a duly executed Subordination Agreement; and

		
	(ii)
	such Constitutional Documents, corporate authorisations and other documents and matters as the Agent may reasonably require, in form and substance satisfactory to the Agent (acting on the instructions of the Majority Lenders), to verify that the person’s obligations are legally binding, valid and enforceable and to satisfy any applicable legal and regulatory requirements.

Page 161

		
	(b)
	A person referred to in paragraph (a) above will become a Subordinated Creditor on the date the Agent enters into the Subordination Agreement delivered under paragraph (a) above.

		
	28.
	DISENFRANCHISEMENT ON DEBT PURCHASE TRANSACTIONS ENTERED INTO BY SPONSOR AFFILIATES

		
	(a)
	For so long as a Sponsor Affiliate:

		
	(i)
	beneficially owns a Commitment; or

		
	(ii)
	has entered into a sub-participation agreement relating to a Commitment or other agreement or arrangement having a substantially similar economic effect and such agreement or arrangement has not been terminated,

in ascertaining:
		
	(A)
	the Majority Lenders; or

		
	(B)
	whether:

		
	(I)
	any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments; or

		
	(II)
	the agreement of any specified group of Lenders,

has been obtained to approve any request for a consent, waiver, amendment or other vote under the Finance Documents such Commitment shall be deemed to be zero and such Sponsor Affiliate or the person with whom it has entered into such subparticipation, other agreement or arrangement shall be deemed not to be a Lender for the purposes of paragraphs (A) and (B) above (unless in the case of a person not being a Sponsor Affiliate it is a Lender by virtue otherwise than by beneficially owning the relevant Commitment).
		
	(b)
	Each Lender shall, unless such Debt Purchase Transaction is an assignment or transfer, promptly notify the Agent in writing if it knowingly enters into a Debt Purchase Transaction with a Sponsor Affiliate (a Notifiable Debt Purchase Transaction), such notification to be substantially in the form set out in Schedule 11 (Forms of Notifiable Debt Purchase Transaction Notice).

		
	(c)
	A Lender shall promptly notify the Agent if a Notifiable Debt Purchase Transaction to which it is a party:

		
	(i)
	is terminated; or

		
	(ii)
	ceases to be with a Sponsor Affiliate,

such notification to be substantially in the form set out in Schedule 11 (Forms of Notifiable Debt Purchase Transaction Notice).
		
	(d)
	Each Sponsor Affiliate that is a Lender agrees that:

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	(i)
	in relation to any meeting or conference call to which all the Lenders are invited to attend or participate, it shall not attend or participate in the same if so requested by the Agent or, unless the Agent otherwise agrees, be entitled to receive the agenda or any minutes of the same; and

		
	(ii)
	in its capacity as Lender, unless the Agent otherwise agrees, it shall not be entitled to receive any report or other document prepared at the behest of, or on the instructions of, the Agent or one or more of the Lenders.

		
	28.2
	Sponsor Affiliates’ notification to other Lenders of Debt Purchase Transactions

Any Sponsor Affiliate which is or becomes a Lender and which enters into a Debt Purchase Transaction as a purchaser or a participant shall, by 5.00 pm on the Business Day following the day on which it entered into that Debt Purchase Transaction, notify the Agent of the extent of the Commitment(s) or amount outstanding to which that Debt Purchase Transaction relates. The Agent shall promptly disclose such information to the Lenders.
		
	29.
	ROLE OF THE AGENT, THE SECURITY AGENT AND THE ARRANGER

		
	29.1
	The Agent and the Security Agent

		
	(a)
	Each of the Arranger and the Lenders appoints the Agent to act as its agent under and in connection with the Finance Documents.

		
	(b)
	The Security Agent declares that it holds the Security Property on trust for the Secured Parties on the terms contained in this Agreement.

		
	(c)
	Each of the Finance Parties authorises the Agent and the Security Agent to perform the duties, obligations and responsibilities and to exercise the rights, powers, authorities and discretions specifically given to the Agent and the Security Agent (as applicable) under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

		
	29.2
	Enforcement through Security Agent only

The Secured Parties shall not have any independent power to enforce, or have recourse to, any of the Transaction Security or to exercise any right, power, authority or discretion arising under the Security Documents except through the Security Agent.
		
	29.3
	Instructions

		
	(a)
	Each of the Agent and the Security Agent shall:

		
	(i)
	unless a contrary indication appears in a Finance Document, exercise or refrain from exercising any right, power, authority or discretion vested in it as Agent or Security Agent (as applicable) in accordance with any instructions given to it by:

Page 163

		
	(A)
	all Lenders if the relevant Finance Document stipulates the matter is an all Lender decision; and

		
	(B)
	in all other cases, the Majority Lenders; and

		
	(ii)
	not be liable for any act (or omission) if it acts (or refrains from acting) in accordance with paragraph (i) above (or, if this Agreement stipulates the matter is a decision for any other Finance Party or group of Finance Parties, in accordance with instructions given to it from that Finance Party or group of Finance Parties).

		
	(b)
	Each of the Agent and the Security Agent shall be entitled to request instructions, confirmation or clarification of any instruction, from the Majority Lenders (or, if the relevant Finance Document stipulates the matter is a decision for any other Finance Party or group of Finance Parties, from that Finance Party or group of Finance Parties) as to whether, and in what manner, it should exercise or refrain from exercising any right, power, determination, authority or discretion and the Agent or Security Agent (as applicable) may refrain from acting unless and until it receives any such instructions or clarification that it has requested.  For the avoidance of doubt, the Agent and the Security Agent shall also be entitled to request instructions, confirmation or clarification from the Borrower or any other Party under the Finance Documents to assist it in exercising any rights, power, determination (including, but not limited to, instances where the Agent or the Security Agent is expected to undertake calculations and make final determinations), authority or discretion and the Agent and the Security Agent may refrain from acting unless it receives those instructions, confirmations or clarifications.

		
	(c)
	Save in the case of decisions stipulated to be a matter for any other Finance Party or group of Finance Parties under the relevant Finance Document and unless a contrary indication appears in a Finance Document, any instructions given to the Agent or Security Agent (as applicable) by the Majority Lenders shall override any conflicting instructions given by any other Parties and will be binding on all Finance Parties.

		
	(d)
	Paragraph (a) above shall not apply:

		
	(i)
	where a contrary indication appears in a Finance Document;

		
	(ii)
	where a Finance Document requires the Agent or the Security Agent (as applicable) to act in a specified manner or to take a specified action;

		
	(iii)
	in respect of any provision which protects the Agent’s or Security Agent’s own position in its personal capacity as opposed to its role of Agent or Security Agent for the relevant Finance Parties or Secured Parties (as applicable) including, without limitation, Clause 29.7 (No fiduciary duties) to Clause 29.11 (Exclusion of liability), Clause 29.15‎ (Confidentiality) to Clause 29.24 (Custodians and nominees) and 

Page 164

Clause 29.27 (Acceptance of title) to Clause 29.30 (Disapplication of Trustee Acts);
		
	(iv)
	in respect of the exercise of the Security Agent’s discretion to exercise a right, power or authority under any of:

		
	(A)
	Clause 30.1 (Order of application);

		
	(B)
	Clause 30.2 (Prospective liabilities); and

		
	(C)
	Clause 30.5 (Permitted Deductions).

		
	(e)
	If giving effect to instructions given by the Majority Lenders would (in the Agent’s or (as applicable) the Security Agent’s opinion) have an effect equivalent to an amendment or waiver referred to in Clause 39 (Amendments and waivers), the Agent or (as applicable) Security Agent shall not act in accordance with those instructions unless consent to it so acting is obtained from each Party (other than the Agent or Security Agent) whose consent would have been required in respect of that amendment or waiver.

		
	(f)
	In exercising any discretion to exercise a right, power or authority under the Finance Documents where either:

		
	(i)
	it has not received any instructions as to the exercise of that discretion; or

		
	(ii)
	the exercise of that discretion is subject to paragraph (d)(iv) above,

the Agent or Security Agent shall do so having regard to the interests of (in the case of the Agent) all the Finance Parties and (in the case of the Security Agent) all the Secured Parties.
		
	(g)
	The Agent or the Security Agent (as applicable) may refrain from acting in accordance with any instructions of any Finance Party or group of Finance Parties until it has received any indemnification and/or security and/or pre-funding that it may in its discretion require (which may be greater in extent than that contained in the Finance Documents and which may include payment in advance) for any cost, loss or liability (together with any applicable VAT) which it may incur in complying with those instructions.

		
	(h)
	Without prejudice to the remainder of this Clause 29.3, in the absence of instructions, each of the Agent and the Security Agent may act (or refrain from acting) as it considers to be in the best interest of (in the case of the Agent) the Finance Parties and (in the case of the Security Agent) the Secured Parties.

		
	(i)
	Neither the Agent nor the Security Agent is authorised to act on behalf of a Finance Party (without first obtaining that Finance Party’s consent) in any legal or arbitration proceedings relating to any Finance Document.  This paragraph (i) shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the Security Documents or enforcement of the Transaction Security or Security Documents.

Page 165

		
	(j)
	If the Agent or the Security Agent is requested to act by the Majority Lenders (or, if appropriate, the Lenders) on instructions or directions delivered by fax, email or other unsecured method of communication, the Agent and the Security Agent shall have:

		
	(i)
	no duty or obligation to verify or confirm that the person who sent such instruction or directions is, in fact a person authorised to give instructions or directions on behalf of the Majority Lenders (or, if appropriate, the Lenders); and

		
	(ii)
	no liability for any losses, liabilities, costs or expenses incurred or sustained by the Majority Lenders (or, if appropriate, the Lenders), as a result of such reliance upon compliance with such instructions or directions.

		
	29.4
	Duties of the Agent and Security Agent

		
	(a)
	The duties of the Agent and the Security Agent under the Finance Documents are solely mechanical and administrative in nature.

		
	(b)
	Subject to paragraph (c) below, each of the Agent and Security Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent or Security Agent (as applicable) for that Party by any other Party.

		
	(c)
	Without prejudice to Clause ‎26.7 (Copy of Transfer Certificate or Assignment Agreement to Borrower), paragraph (b) above shall not apply to any Transfer Certificate or to any Assignment Agreement.

		
	(d)
	Neither the Agent nor the Security Agent is obliged to review or check the adequacy, accuracy, validity or completeness of any document it forwards to another Party.

		
	(e)
	If the Agent or the Security Agent receives notice from a Party referring to any Finance Document, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties.

		
	(f)
	If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Agent, the Arranger or the Security Agent) under this Agreement it shall promptly notify the other Finance Parties.

		
	(g)
	The Agent shall provide to the Borrower, within five Business Days of the last Business Day of each calendar month, a list (which may be in electronic form) setting out the names of the Lenders as at that Business Day, their respective Commitments, the address and fax number (and the department or officer, if any, for whose attention any communication is to be made) of each Lender for any communication to be made or document to be delivered under or in connection with the Finance Documents, the electronic mail address and/or any other information required to enable the sending and receipt of information by 

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electronic mail or other electronic means to and by each Lender to whom any communication under or in connection with the Finance Documents may be made by that means and the account details of each Lender for any payment to be distributed by the Agent to that Lender under the Finance Documents.
		
	(h)
	Each of the Agent and the Security Agent shall have only those duties, obligations and responsibilities expressly specified in the Finance Documents to which it is expressed to be a party (and no others shall be implied).

		
	29.5
	Role of the Arranger

Except as specifically provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document.
		
	29.6
	Appointment of a loan servicer

		
	(a)
	Any Finance Party may appoint a Servicer to act on its behalf as its representative in connection with the Finance Documents and to exercise the power and authority specifically given to it under or in connection with the Finance Documents.

		
	(b)
	The relevant Finance Party shall, or shall procure that, notice of the appointment of the Servicer is given to the Original Borrower.

		
	(c)
	The Obligors shall be entitled to act on any instruction or notice issued by a Servicer as if issued by the Finance Party on whose behalf that Servicer acts.

		
	29.7
	No fiduciary duties

		
	(a)
	Nothing in any Finance Document constitutes:

		
	(i)
	the Agent or the Arranger as a trustee or fiduciary of any other person; or

		
	(ii)
	the Security Agent as an agent, trustee or fiduciary of any Transaction Obligor.

		
	(b)
	None of the Agent, the Security Agent or the Arranger shall be bound to account to any other Finance Party or (in the case of the Security Agent) any Secured Party for any sum or the profit element of any sum received by it for its own account.

		
	29.8
	Business with the Group

The Agent, the Security Agent and the Arranger may accept deposits from, lend money to and generally engage in any kind of banking or other business with any Transaction Obligor or Affiliate of a Transaction Obligor.
		
	29.9
	Rights and discretions

		
	(a)
	Each of the Agent and the Security Agent may:

Page 167

		
	(i)
	rely on any representation, communication, notice or document believed by it to be genuine, correct and appropriately authorised and shall have no duty or obligation to verify or confirm that the person who, as applicable, gave such representation or sent such communication, notice or document is in fact authorised to do so;

		
	(ii)
	assume that:

		
	(A)
	any instructions received by it from the Majority Lenders, any Finance Parties or any group of Finance Parties are duly given in accordance with the terms of the Finance Documents and the Security Agent may further assume that if it receives any instructions to act in relation to the Transaction Security, that all applicable conditions under the Finance Documents for so acting have been satisfied; and

		
	(B)
	unless it has received notice of revocation, that those instructions have not been revoked and no revocation of any such instructions shall affect any action taken by the Agent or the Security Agent (as applicable) in reliance upon such instructions prior to actual receipt of a written notice of revocation; and

		
	(iii)
	rely on a certificate from any person:

		
	(A)
	as to any matter of fact or circumstance which might reasonably be expected to be within the knowledge of that person; or

		
	(B)
	to the effect that such person approves of any particular dealing, transaction, step, action or thing,

as sufficient evidence that this is the case and, in the case of paragraph (A) above, may assume the truth and accuracy of that certificate.
		
	(b)
	Each of the Agent and the Security Agent may assume (unless it has received written notice to the contrary in its capacity as agent or Security Agent for the Finance Parties or Secured Parties (as applicable)) that:

		
	(i)
	no Default has occurred (unless, in the case of the Agent, it has actual knowledge of a Default arising under Clause ‎25.1 (Non-payment));

		
	(ii)
	any right, power, authority or discretion vested in any Party or any group of Finance Parties has not been exercised; and

		
	(iii)
	any notice or request made by the Borrower (other than a Utilisation Request) is made on behalf of and with the consent and knowledge of all the Transaction Obligors.

		
	(c)
	Each of the Agent and the Security Agent may engage and pay for the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts.

Page 168

		
	(d)
	Without prejudice to the generality of paragraph (c) above or paragraph (e) below, each of the Agent and the Security Agent may at any time engage and pay for the services of any lawyers to act as independent counsel to the Agent or Security Agent (as applicable), (and so separate from any lawyers instructed by the Lenders or any other Finance Parties) if the Agent or Security Agent (as applicable), in its reasonable opinion deems this to be desirable.

		
	(e)
	Each of the Agent and the Security Agent may rely on the advice or services of any lawyers, accountants, tax advisers, surveyors or other professional advisers or experts (whether obtained by the Agent or by the Security Agent or by any other Party) and shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of its so relying.

		
	(f)
	Each of the Agent and the Security Agent may act in relation to the Finance Documents and the Security Property through its officers, employees, delegates and agents and shall not:

		
	(i)
	be liable for any error of judgment made by any such person; or

		
	(ii)
	be bound to supervise, or be in any way responsible for any loss incurred by reason of misconduct, omission or default on the part, of any such person,

unless such error or such loss was directly caused by the Agent’s or the Security Agent’s (as applicable) gross negligence or wilful misconduct.
		
	(g)
	Unless a Finance Document expressly provides otherwise each of the Agent and the Security Agent may disclose to any other Party any information it reasonably believes it has received as agent or Security Agent under the Finance Documents.

		
	(h)
	Without prejudice to the generality of paragraph (g) above, the Agent:

		
	(i)
	may disclose; and

		
	(ii)
	on the written request of the Original Borrower or the Majority Lenders shall, as soon as reasonably practicable, disclose,

the identity of a Defaulting Lender to the Original Borrower and to the other Finance Parties.
		
	(i)
	Notwithstanding any other provision of any Finance Document to the contrary, none of the Agent, the Security Agent or the Arranger is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

		
	(j)
	The Agent is not obliged to disclose to any Finance Party any details of the rate notified to the Agent by any Lender or the identity of any such Lender for the purpose of paragraph (a)(i) of Clause ‎11.2 (Market disruption).

Page 169

		
	(k)
	Notwithstanding any provision of any Finance Document to the contrary, neither the Agent nor the Security Agent is obliged to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties, obligations or responsibilities or the exercise of any right, power, authority or discretion if it has grounds for believing the repayment of such funds or adequate indemnity against, or security and/or pre-funding for, such risk or liability is not reasonably assured to it.

		
	29.10
	Responsibility for documentation

None of the Agent, the Security Agent or the Arranger is responsible or liable for:
		
	(a)
	the adequacy, accuracy or completeness of any information (whether oral or written) supplied by the Agent, the Security Agent, the Arranger, a Transaction Obligor or any other person in or in connection with any Finance Document or the Property Reports or the transactions contemplated in the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Transaction Security;

		
	(b)
	the legality, validity, effectiveness, adequacy, completeness or enforceability of any Finance Document or the Security Property or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Security Property; or

		
	(c)
	any determination as to whether any information provided or to be provided to any Finance Party or Secured Party is non-public information the use of which may be regulated or prohibited by applicable law or regulation relating to insider dealing or otherwise.

		
	29.11
	No duty to monitor

Neither the Agent nor the Security Agent shall be bound to enquire:
		
	(a)
	whether or not any Default has occurred;

		
	(b)
	as to the performance, default or any breach by any Party of its obligations under any Finance Document; or

		
	(c)
	whether any other event specified in any Finance Document has occurred.

		
	29.12
	Exclusion of liability

		
	(a)
	Without limiting paragraph (b) below (and without prejudice to any other provision of any Finance Document excluding or limiting the liability of the Agent, the Security Agent or any Receiver or Delegate), none of the Agent, the Security Agent nor any Receiver or Delegate will be liable (including, without limitation, for negligence or any other category of liability whatsoever) for:

Page 170

		
	(i)
	any damages, costs or losses to any person, any diminution in value, or any liability whatsoever arising as a result of taking or not taking any action under or in connection with any Finance Document or the Security Property, unless directly caused by its gross negligence or wilful misconduct;

		
	(ii)
	exercising, or not exercising, any right, power, authority or discretion given to it by, or in connection with, any Finance Document, the Security Property or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with, any Finance Document or the Security Property;

		
	(iii)
	any shortfall which arises on the enforcement or realisation of the Security Property; or

		
	(iv)
	without prejudice to the generality of paragraphs (i) to (iii) above, any damages, costs or losses to any person, any diminution in value or any liability whatsoever arising as a result of:

		
	(A)
	any act, event or circumstance not reasonably within its control; or

		
	(B)
	the general risks of investment in, or the holding of assets in, any jurisdiction,

including (in each case and without limitation) such damages, costs,  losses, diminution in value or liability arising as a result of: nationalisation, expropriation or other governmental actions; any regulation, currency restriction, devaluation or fluctuation; market conditions affecting the execution or settlement of transactions or the value of assets (including any Disruption Event); breakdown, failure or malfunction of any third party transport, telecommunications, computer services or systems; natural disasters or acts of God; war, terrorism, insurrection or revolution; or strikes or industrial action.
		
	(b)
	No Party (other than the Agent, the Security Agent, that Receiver or that Delegate (as applicable)) may take any proceedings against any officer, employee or agent of the Agent, the Security Agent, a Receiver or a Delegate, in respect of any claim it might have against the Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document or any Security Property and any officer, employee or agent of the Agent, the Security Agent, a Receiver or a Delegate may rely on this Clause subject to Clause 1.4‎ (Third party rights) and the provisions of the Third Parties Act.

		
	(c)
	Neither the Agent nor the Security Agent will be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Agent or the Security Agent (as applicable) if the Agent or Security Agent (as applicable) has taken all necessary steps as soon as reasonably practicable to comply with the regulations or 

Page 171

operating procedures of any recognised clearing or settlement system used by the Agent or the Security Agent (as applicable) for that purpose.
		
	(d)
	Nothing in this Agreement shall oblige the Agent, the Security Agent or the Arranger to carry out:

		
	(i)
	any “know your customer” or other checks in relation to any person; or

		
	(ii)
	any check on the extent to which any transaction contemplated by this Agreement might be unlawful for any Finance Party,

on behalf of any Finance Party and each Finance Party confirms to the Agent, the Security Agent and the Arranger that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Agent, the Security Agent or the Arranger.
		
	(e)
	Without prejudice to any provision of any Finance Document excluding or limiting the liability of the Agent, the Security Agent, any Receiver or Delegate, any liability of the Agent, the Security Agent, any Receiver or Delegate arising under or in connection with any Finance Document or the Security Property shall be limited to the amount of actual loss which has been finally judicially determined to have been suffered (as determined by reference to the date of default of the Agent, the Security Agent, Receiver or Delegate or, if later, the date on which the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Agent, the Security Agent, any Receiver or Delegate at any time which increase the amount of that loss.  In no event shall the Agent, the Security Agent, any Receiver or Delegate be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated saving, or for special, punitive, indirect or consequential damages, whether or not foreseeable and whether or not the Agent, the Security Agent, the Receiver or Delegate has been advised of the possibility of such loss or damages and regardless of whether the claim for loss or damage is made in negligence, for breach of contract, duty or otherwise.

		
	29.13
	Lenders’ indemnity to the Agent and the Security Agent

		
	(a)
	Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Agent, the Security Agent and every Receiver and every Delegate, within three Business Days of demand, against any cost, loss or liability (including, without limitation, for negligence or any other category of liability whatsoever) incurred by any of them (otherwise than by reason of the Agent’s, Security Agent’s, Receiver’s or Delegate’s gross negligence or wilful misconduct) (or, in the case of any cost, loss or liability pursuant to Clause ‎33.11 (Disruption to Payment Systems etc.), notwithstanding the Agent’s negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) in acting as Agent, Security Agent, Receiver or delegate under, or 

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exercising any authority conferred under, the Finance Documents (unless the relevant Agent, Security Agent, Receiver or Delegate has been reimbursed by an Obligor pursuant to a Finance Document).
		
	(b)
	Subject to paragraph (c) below, the Borrower shall promptly on demand reimburse any Lender for any payment that Lender makes to the Agent or the Security Agent pursuant to paragraph (a) above.

		
	(c)
	Paragraph (b) above shall not apply to the extent that the indemnity payment in respect of which the Lender claims reimbursement relates to a liability for any cost, loss or liability which the Obligors would otherwise be required to pay to or indemnify the Agent or the Security Agent for under the Finance Documents.

		
	(d)
	This Clause 29.13 shall survive in full force and effect notwithstanding the termination of this Agreement or the retirement or termination of the Agent or the Security Agent.

		
	29.14
	Resignation of the Agent and the Security Agent

		
	(a)
	Each of the Agent and the Security Agent may, by giving notice to the other Finance Parties and the Borrower, resign and appoint as successor Agent or Security Agent (as applicable):

		
	(i)
	one of its Affiliates; or

		
	(ii)
	if any of the rights of a Lender under this Agreement are the subject of a Securitisation, the servicer or any similar person appointed in relation to that Securitisation.

The Agent or the Security Agent shall not be obliged to provide any reason for such resignation and will not be responsible for any liabilities incurred by reason of such resignation.  The Agent or the Security Agent is not bound to supervise or be responsible in any way for any loss incurred by reason of misconduct or default on the part of the successor Agent or the successor Security Agent.
The Agent or the Security Agent shall not be obliged to provide any reason for such resignation and will not be responsible for any liabilities incurred by reason of such resignation.  The Agent or Security Agent is not bound to supervise or be responsible in any way for any loss incurred by reason of misconduct or default on the part of the successor Agent or successor Security Agent.
		
	(b)
	Alternatively the Agent or the Security Agent may resign by giving 30 days’ notice to the other Finance Parties and the Borrower, in which case the Majority Lenders (after consultation with other Finance Parties and the Borrower) may appoint a successor Agent  or Security Agent (as applicable). The Agent or the Security Agent shall not be obliged to provide any reason for such resignation and will not be responsible for any liabilities incurred by reason of such resignation.  The Agent or Security Agent is not bound to supervise or be responsible in any way for any loss incurred by reason of misconduct or default on the part of the successor Agent or successor Security Agent.

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	(c)
	If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b) above within 20 days after notice of resignation was given, the retiring Agent (after consultation with the Borrower) may appoint a successor Agent or Security Agent (as applicable).  The Agent or the Security Agent is not bound to supervise or be responsible in any way for any loss incurred by reason of misconduct or default on the part of the successor Agent or the successor Security Agent.

		
	(d)
	If the Agent wishes to resign because (acting reasonably) it has concluded that it is no longer appropriate for it to remain as agent and the Agent is entitled to appoint a successor Agent under paragraph (c) above, the Agent may (if it concludes (acting reasonably) that it is necessary to do so in order to persuade the proposed successor Agent to become a party to this Agreement as Agent) agree with the proposed successor Agent amendments to this Clause 29 consistent with then current market practice for the appointment and protection of corporate trustees together with any reasonable amendments to the agency fee payable under this Agreement which are consistent with the successor Agent’s normal fee rates and those amendments will bind the Parties.

		
	(e)
	The retiring Agent or Security Agent (as applicable) shall, make available to the successor Agent or Security Agent (as applicable) such documents and records and provide such assistance as the successor Agent or Security Agent may reasonably request for the purposes of performing its functions as Agent or Security Agent (as applicable) under the Finance Documents.  The Borrower shall, within five Business Days of demand, reimburse the retiring Agent or Security Agent (as applicable) for the amount of all costs and expenses (including legal fees) properly incurred by it in making available such documents and records and providing such assistance.

		
	(f)
	The resignation notice of the Agent or Security Agent (as applicable) shall only take effect upon:

		
	(i)
	the appointment of a successor; and

		
	(ii)
	(in the case of the Security Agent) the transfer of the Security Property to that successor.

		
	(g)
	Upon the appointment of a successor, the retiring Agent or Security Agent (as applicable), shall be discharged from any further obligation in respect of the Finance Documents (other than its obligations under paragraph (b) of Clause 29.28 (Winding up of trust), and (e) above) but shall remain entitled to the benefit of Clause 15.3 (Indemnity to the Agent), Clause 15.4 (Indemnity to the Security Agent) and this Clause 29 (and any fees for the account of the retiring Agent or Security Agent (as applicable) shall cease to accrue from (and shall be payable on) that date).  Any successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

Page 174

		
	(h)
	After consultation with the Borrower, the Majority Lenders may, by giving 30 days’ notice to the Agent or Security Agent (as applicable) (or, at any time when the Agent is an Impaired Agent, by giving any shorter notice determined by the Majority Lenders)  require the Agent or Security Agent (as applicable) to resign in accordance with paragraph (b) above.  In this event, the Agent or Security Agent (as applicable) shall resign in accordance with paragraph (b) above.

		
	(i)
	The Agent shall resign in accordance with paragraph (b) above (and, to the extent applicable, shall use reasonable endeavours to appoint a successor Agent pursuant to paragraph (c)) if on or after the date which is three Months before the earliest FATCA Application Date relating to any payment to the Agent under the Finance Documents, either:

		
	(i)
	the Agent fails to respond to a request under Clause 13.8 (FATCA Information) and the Borrower or a Lender reasonably believes that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

		
	(ii)
	the information supplied by the Agent pursuant to Clause 13.8 (FATCA Information) indicates that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date; or

		
	(iii)
	the Agent notifies the Borrower and the Lenders that the Agent will not be (or will have ceased to be) a FATCA Exempt Party on or after that FATCA Application Date;

and (in each case) the Borrower or a Lender reasonably believes that a Party will be required to make a FATCA Deduction that would not be required if the Agent were a FATCA Exempt Party, and the Borrower or that Lender, by notice to the Agent, requires it to resign.
		
	29.15
	Confidentiality

		
	(a)
	In acting as agent or trustee for the Finance Parties, the Agent or Security Agent (as applicable) shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its divisions or departments.

		
	(b)
	If information is received by another division or department of the Agent or Security Agent, it may be treated as confidential to that division or department and the Agent or Security Agent (as applicable) shall not be deemed to have notice of it.

		
	29.16
	Relationship with the other Finance Parties

		
	(a)
	Subject to Clause 26.9 (Pro rata interest settlement), the Agent may treat the person shown in its records as Lender at the opening of business (in the place of the Agent’s principal office as notified to the Finance Parties from time to time) as the Lender acting through its Facility Office:

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	(i)
	entitled to or liable for any payment due under any Finance Document on that day; and

		
	(ii)
	entitled to receive and act upon any notice, request, document or communication or make any decision or determination under any Finance Document made or delivered on that day,

unless it has received not less than five Business Days’ prior notice from that Lender to the contrary in accordance with the terms of this Agreement.
		
	(b)
	Any Lender may by notice to the Agent appoint a person to receive on its behalf all notices, communications, information and documents to be made or despatched to that Lender under the Finance Documents.  Such notice shall contain the address, fax number and (where communication by electronic mail or other electronic means is permitted under Clause 35.6‎ (Electronic communication)) electronic mail address and/or any other information required to enable the sending and receipt of information by that means (and, in each case, the department or officer, if any, for whose attention communication is to be made) and be treated as a notification of a substitute address, fax number, electronic mail address, department and officer by that Lender for the purposes of Clause 35.2 (Addresses) and paragraph (a)(i) of Clause 35.5 (Electronic communication) and the Agent shall be entitled to treat such person as the person entitled to receive all such notices, communications, information and documents as though that person were that Lender.

		
	(c)
	Each Finance Party shall supply the Security Agent with any information that the Security Agent may reasonably specify as being necessary or desirable to enable the Security Agent to perform its functions as Security Agent.

		
	29.17
	Credit appraisal by the Lenders 

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Agent, the Security Agent and the Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:
		
	(a)
	the financial condition, status and nature of each member of the Group;

		
	(b)
	the legality, validity, effectiveness, adequacy or enforceability of any Finance Document, the Security Property and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Security Property;

		
	(c)
	whether that Finance Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the Security Property, the transactions contemplated by the Finance Documents or any other agreement, arrangement 

Page 176

or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Security Property;
		
	(d)
	the adequacy, accuracy or completeness of the Property Reports and any other information provided by the Agent, the Security Agent, any Party or by any other person under or in connection with any Finance Document, the transactions contemplated by any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

		
	(e)
	the right or title of any person in or to, or the value or sufficiency of any part of the Security Assets, the priority of any of the Transaction Security or the existence of any Security affecting the Security Assets.

		
	29.18
	Reference Banks

The Agent shall (if so instructed by the Majority Lenders and in consultation with the Borrower) replace a Reference Bank with another bank or financial institution.
		
	29.19
	Agent’s and Security Agent’s management time

		
	(a)
	Any amount payable to the Agent or Security Agent under Clause ‎15.3 (Indemnity to the Agent), Clause 15.4 (Indemnity to the Security Agent), Clause ‎17 (Costs and expenses) and Clause 29.13‎ (Lenders’ indemnity to the Agent and Security Agent) shall include the cost of utilising the management time or other resources of the Agent or Security Agent (as applicable) and will be calculated on the basis of such reasonable daily or hourly rates as the Agent or Security Agent may notify to the Borrower and the other Finance Parties, and is in addition to any fee paid or payable to the Agent or Security Agent under Clause ‎12 (Fees).

		
	(b)
	Without prejudice to paragraph (a) above, in the event of:

		
	(i)
	a Default;

		
	(ii)
	the Security Agent being requested by a Transaction Obligor or the Majority Lenders to undertake duties which the Security Agent and the Borrower agree to be of an exceptional nature or outside the scope of the normal duties of the Security Agent under the Finance Documents; or

		
	(iii)
	the Security Agent and the Borrower agreeing that it is otherwise appropriate in the circumstances,

the Borrower shall pay to the Security Agent any additional remuneration that may be agreed between them or determined pursuant to paragraph (c) below.
		
	(c)
	If the Security Agent and the Borrower fail to agree upon the nature of the duties, or upon the additional remuneration referred to in paragraph (b) above or whether additional remuneration is appropriate in the circumstances, any dispute shall be determined by an investment bank (acting as an expert and not as an arbitrator) selected by the Security Agent and approved by the Borrower or, 

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failing approval, nominated (on the application of the Security Agent) by the President for the time being of the Law Society of England and Wales (the costs of the nomination and of the investment bank being payable by the Borrower) and the determination of any investment bank shall be final and binding upon the Parties.
		
	29.20
	Deduction from amounts payable by the Agent

If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.
		
	29.21
	Reliance and engagement letters

Each Finance Party and Secured Party confirms that each of the Arranger, the Agent and the Security Agent has authority to accept on its behalf (and ratifies the acceptance on its behalf of any letters or reports already accepted by the Arranger, the Agent or the Security Agent) the terms of any reliance letter or engagement letters relating to the Property Reports or any reports or letters provided by accountants, auditors or providers of due diligence reports in connection with the Finance Documents or the transactions contemplated in the Finance Documents and to bind it in respect of those Property Reports, reports or letters and to sign such letters on its behalf and further confirms that it accepts the terms and qualifications set out in such letters.
		
	29.22
	No responsibility to perfect Transaction Security

The Security Agent shall not be liable for any failure to:
		
	(a)
	require the deposit with it of any deed or document certifying, representing or constituting the title of any Transaction Obligor to any of the Security Assets;

		
	(b)
	obtain any licence, consent or other authority for the execution, delivery, legality, validity, enforceability or admissibility in evidence of any Finance Document or the Transaction Security;

		
	(c)
	register, file or record or otherwise protect any of the Transaction Security (or the priority of any of the Transaction Security) under any law or regulation or to give notice to any person of the execution of any Finance Document or of the Transaction Security;

		
	(d)
	take, or to require any Transaction Obligor to take, any step to perfect its title to any of the Security Assets or to render the Transaction Security effective or to secure the creation of any ancillary Security under any law or regulation; or

		
	(e)
	require any further assurance in relation to any Security Document.

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	29.23
	Insurance by Security Agent

		
	(a)
	The Security Agent shall not be obliged:

		
	(i)
	to insure any of the Security Assets;

		
	(ii)
	to require any other person to maintain any insurance; or

		
	(iii)
	to verify any obligation to arrange or maintain insurance contained in any Finance Document,

and the Security Agent shall not be liable for any damages, costs or losses to any person as a result of the lack of or inadequacy of, any such insurance.
		
	(b)
	Where the Security Agent is named on any insurance policy as an insured party, it shall not be liable for any damages, costs or losses to any person as a result of its failure to notify the insurers of any material fact relating to the risk assumed by such insurers or any other information of any kind, unless the Majority Lenders request it to do so in writing and the Security Agent fails to do so within fourteen days after receipt of that request.

		
	29.24
	Custodians and nominees

The Security Agent may appoint and pay any person to act as a custodian or nominee on any terms in relation to any assets of the trust as the Security Agent may determine, including for the purpose of depositing with a custodian this Agreement or any document relating to the trust created under this Agreement and the Security Agent shall not be responsible for any loss, liability, expense, demand, cost, claim or proceedings incurred by reason of the misconduct, omission or default on the part of any person appointed by it under this Agreement or be bound to supervise the proceedings or acts of any person.
		
	29.25
	Delegation by the Security Agent

		
	(a)
	Each of the Security Agent, any Receiver and any Delegate may, at any time, delegate by power of attorney or otherwise to any person for any period, all or any right, power, authority or discretion vested in it in its capacity as such.

		
	(b)
	That delegation may be made upon any terms and conditions (including the power to sub-delegate) and subject to any restrictions that the Security Agent, that Receiver or that Delegate (as the case may be) may, in its discretion, think fit in the interests of the Secured Parties.

		
	(c)
	No Security Agent, Receiver or Delegate shall be bound to supervise, or be in any way responsible for any damages, costs or losses incurred by reason of any misconduct, omission or default on the part of, any such delegate or sub-delegate.

		
	29.26
	Additional Security Agents

		
	(a)
	The Security Agent may at any time appoint (and subsequently remove) any person to act as a separate trustee or as a co-trustee jointly with it:

Page 179

		
	(i)
	if it considers that appointment to be in the interests of the Secured Parties;

		
	(ii)
	for the purposes of conforming to any legal requirement, restriction or condition which the Security Agent deems to be relevant; or

		
	(iii)
	for obtaining or enforcing any judgment in any jurisdiction,

and the Security Agent shall give prior notice to the Borrower and the Finance Parties of that appointment.
		
	(b)
	Any person so appointed shall have the rights, powers, authorities and discretions (not exceeding those given to the Security Agent under or in connection with the Finance Documents) and the duties, obligations and responsibilities that are given or imposed by the instrument of appointment.

		
	(c)
	The remuneration that the Security Agent may pay to that person, and any costs and expenses (together with any applicable VAT) incurred by that person in performing its functions pursuant to that appointment shall, for the purposes of this Agreement, be treated as costs and expenses incurred by the Security Agent.

		
	29.27
	Acceptance of title

The Security Agent shall be entitled to accept without enquiry, and shall not be obliged to investigate, any right and title that any Transaction Obligor may have to any of the Security Assets and shall not be liable for or bound to require any Transaction Obligor to remedy any defect in its right or title.
		
	29.28
	Winding up of trust

If the Security Agent, with the approval of the Agent, determines that:
		
	(a)
	all of the Secured Liabilities and all other obligations secured by the Security Documents have been fully and finally discharged; and

		
	(b)
	no Secured Party is under any commitment, obligation or liability (actual or contingent) to make advances or provide other financial accommodation to any

Page 180

 Obligor pursuant to the Finance Documents,
then:
		
	(i)
	the trusts set out in this Agreement shall be wound up and the Security Agent shall release, without recourse or warranty, all of the Transaction Security and the rights of the Security Agent under each of the Security Documents; and

		
	(ii)
	any Security Agent which has resigned pursuant to Clause 29.14 (Resignation of the Agent and the Security Agent) shall release, without recourse or warranty, all of its rights under each Security Document.

		
	29.29
	Powers supplemental to Trustee Acts

The rights, powers, authorities and discretions given to the Security Agent under or in connection with the Finance Documents shall be supplemental to the Trustee Act 1925 and the Trustee Act 2000 and in addition to any which may be vested in the Security Agent by law or regulation or otherwise.
		
	29.30
	Disapplication of Trustee Acts

Section 1 of the Trustee Act 2000 shall not apply to the duties of the Security Agent in relation to the trusts constituted by this Agreement.  Where there are any inconsistencies between the Trustee Act 1925 or the Trustee Act 2000 and the provisions of this Agreement, the provisions of this Agreement shall, to the extent permitted by law and regulation, prevail and, in the case of any inconsistency with the Trustee Act 2000, the provisions of this Agreement shall constitute a restriction or exclusion for the purposes of that Act.
		
	30.
	APPLICATION OF PROCEEDS

		
	30.1
	Order of application

Subject to Clause 30.2 (Prospective liabilities), all amounts from time to time received or recovered by the Security Agent pursuant to the terms of any Finance Document or in connection with the realisation or enforcement of all or any part of the Transaction Security (for the purposes of this Clause 30, the Recoveries) shall be held by the Security Agent on trust to apply them at any time as the Security Agent (in its discretion) sees fit, to the extent permitted by applicable law (and subject to the provisions of this Clause ‎30, in the following order:
		
	(a)
	in discharging any sums owing to the Security Agent, any Receiver or any Delegate;

		
	(b)
	in payment of all costs and expenses incurred by the Agent or any Secured Party in connection with any realisation or enforcement of the Transaction Security taken in accordance with the terms of this Agreement; and

		
	(c)
	in payment to the Agent for application in accordance with Clause ‎33.6 (Partial payments).

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	30.2
	Prospective liabilities

Following acceleration of the Facility the Security Agent may, in its discretion, hold any amount of the Recoveries in an interest bearing suspense or impersonal account(s) in the name of the Security Agent with such financial institution (including itself) and for so long as the Security Agent shall think fit (the interest being credited to the relevant account) for later application under Clause 30.1 (Order of Application) in respect of:
		
	(a)
	any sum to the Security Agent, any Receiver or any Delegate; and

		
	(b)
	any part of the Secured Liabilities,

that the Security Agent reasonably considers, in each case, might become due or owing at any time in the future.
		
	30.3
	Investment of proceeds

Prior to the application of the proceeds of the Recoveries in accordance with Clause 30.1 (Order of Application) the Security Agent may, in its discretion, hold all or part of those proceeds in an interest bearing suspense or impersonal account(s) in the name of the Security Agent with such financial institution (including itself) and for so long as the Security Agent shall think fit (the interest being credited to the relevant account) pending the application from time to time of those moneys in the Security Agent’s discretion in accordance with the provisions of this Clause ‎30.3.
		
	30.4
	Currency Conversion

		
	(a)
	For the purpose of, or pending the discharge of, any of the Secured Liabilities the Security Agent may convert any moneys received or recovered by the Security Agent from one currency to another, at a market rate of exchange.

		
	(b)
	The obligations of any Transaction Obligor to pay in the due currency shall only be satisfied to the extent of the amount of the due currency purchased after deducting the costs of conversion.

		
	30.5
	Permitted Deductions

The Security Agent shall be entitled, in its discretion:
		
	(a)
	to set aside by way of reserve amounts required to meet, and to make and pay, any deductions and withholdings (on account of taxes or otherwise) which it is or may be required by any applicable law to make from any distribution or payment made by it under this Agreement; and

		
	(b)
	to pay all Taxes which may be assessed against it in respect of any of the Security Assets, or as a consequence of performing its duties, or by virtue of its capacity as Security Agent under any of the Finance Documents or otherwise (other than in connection with its remuneration for performing its duties under this Agreement).

		
	30.6
	Good Discharge

Page 182

		
	(a)
	Any payment to be made in respect of the Secured Liabilities by the Security Agent may be made to the Agent on behalf of the Finance Parties and any payment made in that way shall be a good discharge, to the extent of that payment, by the Security Agent.

		
	(b)
	The Security Agent is under no obligation to make the payments to the Agent under paragraph (a) above in the same currency as that in which the obligations and liabilities owing to the relevant Finance Party are denominated.

		
	31.
	CONDUCT OF BUSINESS BY THE FINANCE PARTIES

No provision of this Agreement will:
		
	(a)
	interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

		
	(b)
	oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

		
	(c)
	oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.

		
	32.
	SHARING AMONG THE FINANCE PARTIES

		
	32.1
	Payments to Finance Parties

If a Finance Party (a Recovering Finance Party) receives or recovers any amount from an Obligor other than in accordance with Clause ‎33 (Payment mechanics) (a Recovered Amount) and applies that amount to a payment due under the Finance Documents then:
		
	(a)
	the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Agent;

		
	(b)
	the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Agent and distributed in accordance with Clause ‎33 (Payment mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and

		
	(c)
	the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the Sharing Payment) equal to such receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause ‎33.6 (Partial payments).

		
	32.2
	Redistribution of payments

The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) (the Sharing Finance Parties) in accordance with Clause ‎33.6 (Partial payments) towards the obligations of that Obligor to the Sharing Finance Parties.

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	32.3
	Recovering Finance Party’s rights

On a distribution by the Agent under Clause 32.2‎ (Redistribution of payments) of a payment received by a Recovering Finance Party from an Obligor, as between the relevant Obligor and the Recovering Finance Party, an amount of the Recovered Amount equal to the Sharing Payment will be treated as not having been paid by that Obligor.
		
	32.4
	Reversal of redistribution

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:
		
	(a)
	each Sharing Finance Party shall, upon request of the Agent, pay to the Agent for the account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay) (the Redistributed Amount); and

		
	(b)
	as between the relevant Obligor and each relevant Sharing Finance Party, an amount equal to the relevant Redistributed Amount will be treated as not having been paid by that Obligor.

		
	32.5
	Exceptions

		
	(a)
	This Clause 32 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Obligor.

		
	(b)
	A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

		
	(i)
	it notified that other Finance Party of the legal or arbitration proceedings; and

		
	(ii)
	that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings.

		
	33.
	PAYMENT MECHANICS

		
	33.1
	Payments to the Agent

		
	(a)
	On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

Page 184

		
	(b)
	Payment shall be made to such account in the principal financial centre of the country of that currency (or, in relation to euro, in a principal financial centre in such Participating Member State or London, as specified by the Agent) and with such bank as the Agent, in each case, specifies.

		
	33.2
	Distributions by the Agent

Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 33.3‎ (Distributions to an Obligor) and Clause ‎33.4 (Clawback and pre-funding) be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Agent by not less than five Business Days’ notice with a bank specified by that Party in the principal financial centre of the country of that currency (or, in relation to euro, in the principal financial centre of a Participating Member State or London, as specified by that Party).
		
	33.3
	Distributions to an Obligor

The Agent may (with the consent of the Obligor or in accordance with Clause ‎34 (Set-off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.
		
	33.4
	Clawback and pre-funding

		
	(a)
	Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

		
	(b)
	Unless paragraph (c) below applies, if the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

		
	(c)
	If the Agent has notified the Lenders that it is willing to make available amounts for the account of a Borrower before receiving funds from the Lenders then if and to the extent that the Agent does so but it proves to be the case that it does not then receive funds from a Lender in respect of a sum which it paid to a Borrower:

		
	(i)
	the Agent shall notify the Borrower of that Lender’s identity and the Borrower to whom that sum was made available shall on demand refund it to the Agent; and

Page 185

		
	(ii)
	the Lender by whom those funds should have been made available or, if that Lender fails to do so, the Borrower to whom that sum was made available, shall on demand pay to the Agent the amount (as certified by the Agent) which will indemnify the Agent against any funding cost incurred by it as a result of paying out that sum before receiving those funds from that Lender.

		
	33.5
	Impaired Agent

		
	(a)
	If, at any time, the Agent becomes an Impaired Agent, an Obligor or a Lender which is required to make a payment under the Finance Documents to the Agent in accordance with Clause ‎33.1 (Payments to the Agent) may instead either:

		
	(i)
	pay that amount direct to the required recipient(s); or 

		
	(ii)
	if in its absolute discretion it considers that it is not reasonably practicable to pay that amount direct to the required recipient(s), pay that amount or the relevant part of that amount to an interest-bearing account held with an Acceptable Bank and in relation to which no Insolvency Event has occurred and is continuing, in the name of the Obligor or the Lender making the payment (the Paying Party) and designated as a trust account for the benefit of the Party or Parties beneficially entitled to that payment under the Finance Documents (the Recipient Party or Recipient Parties).

In each case such payments must be made on the due date for payment under the Finance Documents.
		
	(b)
	All interest accrued on the amount standing to the credit of the trust account shall be for the benefit of the Recipient Party or the Recipient Parties pro rata to their respective entitlements.

		
	(c)
	A Party which has made a payment in accordance with this Clause 33.5 shall be discharged of the relevant payment obligation under the Finance Documents and shall not take any credit risk with respect to the amounts standing to the credit of the trust account.

		
	(d)
	Promptly upon the appointment of a successor Agent in accordance with Clause ‎29.13 (Resignation of the Agent and the Security Agent), each Paying Party shall (other than to the extent that that Party has given an instruction pursuant to paragraph (e) below) give all requisite instructions to the bank with whom the trust account is held to transfer the amount (together with any accrued interest) to the successor Agent for distribution to the relevant Recipient Party or Recipient Parties in accordance with Clause 33.2 ‎(Distributions by the Agent).

		
	(e)
	A Paying Party shall, promptly upon request by a Recipient Party and to the extent:

		
	(i)
	that it has not given an instruction pursuant to paragraph (d) above; and

Page 186

		
	(ii)
	that it has been provided with the necessary information by that Recipient Party,

give all requisite instructions to the bank with whom the trust account is held to transfer the relevant amount (together with any accrued interest) to that Recipient Party. 
		
	33.6
	Partial payments

		
	(a)
	If the Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents, the Agent shall apply that payment towards the obligations of that Obligor under the Finance Documents in the following order:

		
	(i)
	first, in or towards payment pro rata of any unpaid amount owing to the Agent, the Security Agent, any Receiver or any Delegate under the Finance Documents;

		
	(ii)
	secondly, in or towards payment pro rata of any accrued interest and fees due but unpaid to the Lenders under this Agreement;

		
	(iii)
	thirdly, in or towards payment pro rata of any principal due but unpaid to the Lenders under this Agreement; and

		
	(iv)
	fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.

		
	(b)
	The Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above.  Any such variation may include the re-ordering of obligations set out in such paragraph.

		
	(c)
	Paragraphs (a) and (b) above will override any appropriation made by an Obligor.

		
	33.7
	No set-off by Obligors

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.
		
	33.8
	Business Days

		
	(a)
	Any payment under the Finance Documents which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

		
	(b)
	During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date.

		
	33.9
	Currency of account

		
	(a)
	Subject to paragraphs (b) and (c) below, sterling is the currency of account and payment for any sum due from an Obligor under any Finance Document.

Page 187

		
	(b)
	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

		
	(c)
	Any amount expressed to be payable in a currency other than sterling shall be paid in that other currency.

		
	33.10
	Change of currency

		
	(a)
	Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:

		
	(i)
	any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Agent (after consultation with the Borrower); and

		
	(ii)
	any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Agent (acting reasonably).

		
	(b)
	If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting reasonably and after consultation with the Borrower) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.

		
	33.11
	Disruption to Payment Systems etc.

If either the Agent determines (in its discretion) that a Disruption Event has occurred or the Agent is notified by the Borrower that a Disruption Event has occurred:
		
	(a)
	the Agent may, and shall if requested to do so by the Borrower, consult with the Borrower with a view to agreeing with the Borrower such changes to the operation or administration of the Facilities as the Agent may deem necessary in the circumstances;

		
	(b)
	the Agent shall not be obliged to consult with the Borrower in relation to any changes mentioned in paragraph (a) above if, in its opinion, it is not practicable to do so in the circumstances and, in any event, shall have no obligation to agree to such changes;

		
	(c)
	the Agent may consult with the Finance Parties in relation to any changes mentioned in paragraph (a) above but shall not be obliged to do so if, in its opinion, it is not practicable to do so in the circumstances;

		
	(d)
	any such changes agreed upon by the Agent and the Borrower shall (whether or not it is finally determined that a Disruption Event has occurred) be binding upon the Parties as an amendment to (or, as the case may be, waiver of) the 

Page 188

terms of the Finance Documents notwithstanding the provisions of Clause ‎39 (Amendments and waivers);
		
	(e)
	the Agent shall not be liable for any damages, costs or losses to any person, any diminution in value or any liability whatsoever (including, without limitation for negligence, gross negligence or any other category of liability whatsoever but not including any claim based on the fraud of the Agent) arising as a result of its taking, or failing to take, any actions pursuant to or in connection with this Clause 33.11‎; and

		
	(f)
	the Agent shall notify the Finance Parties of all changes agreed pursuant to paragraph (d) above.

		
	33.12
	Closing Date Utilisation

Notwithstanding the other provisions of this Agreement, the Parties acknowledge and agree that any Utilisation to be made on the Closing Date (subject to the satisfaction of the conditions precedent under and in accordance with Clause 5 (Conditions to Utilisation)) shall be funded directly by the Original Lender to or on behalf of the Original Borrower in accordance with the Utilisation Request for that Utilisation.
		
	34.
	SET-OFF

A Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.
		
	35.
	NOTICES

		
	35.1
	Communications in writing

Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter.
		
	35.2
	Addresses

The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:
		
	(a)
	in the case of the Borrower, that identified with its name below;

		
	(b)
	in the case of each Lender or any other Obligor, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and

		
	(c)
	in the case of the Agent and the Security Agent, that identified with its name below,

Page 189

or any substitute address or fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a change is made by the Agent) by not less than five Business Days’ notice.
		
	35.3
	Delivery

		
	(a)
	Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

		
	(i)
	if by way of fax, when received in legible form; or

		
	(ii)
	if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address;

and, if a particular department or officer is specified as part of its address details provided under Clause ‎35.2 (Addresses), if addressed to that department or officer.
		
	(a)
	Any communication or document to be made or delivered to the Agent or the Security Agent will be effective only when actually received by the Agent or the Security Agent and then only if it is expressly marked for the attention of the department or officer identified with the Agent’s or the Security Agent’s signature below (or any substitute department or officer as the Agent or Security Agent shall specify for this purpose).

		
	(b)
	All notices from or to an Obligor shall be sent through the Agent.

		
	(c)
	Any communication or document made or delivered to the Borrower in accordance with this Clause will be deemed to have been made or delivered to each of the Obligors.

		
	(d)
	Any communication or document which becomes effective, in accordance with paragraphs (a) to (d) above, after 5:00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

		
	35.4
	Notification of address and fax number

Promptly upon changing its address or fax number, the Agent shall notify the other Parties.
		
	35.5
	Communication when Agent is Impaired Agent

If the Agent is an Impaired Agent the Parties may, instead of communicating with each other through the Agent, communicate with each other directly and (while the Agent is an Impaired Agent) all the provisions of the Finance Documents which require communications to be made or notices to be given to or by the Agent shall be varied so that communications may be made and notices given to or by the relevant Parties directly.  This provision shall not operate after a replacement Agent has been appointed.
		
	35.6
	Electronic communication

Page 190

		
	(a)
	Any communication to be made between any two Parties under or in connection with the Finance Documents may be made by electronic mail or other electronic means to the extent that those two Parties agree that, unless and until notified to the contrary, this is to be an accepted form of communication and if those two Parties:

		
	(i)
	notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

		
	(ii)
	notify each other of any change to their address or any other such information supplied by them by not less than five Business Days’ notice.

		
	(b)
	Any electronic communication made between those two Parties will be effective only when actually received in readable form and in the case of any electronic communication made by a Party to the Agent or the Security Agent only if it is addressed in such a manner as the Agent or the Security Agent shall specify for this purpose.

		
	(c)
	Any electronic communication which becomes effective, in accordance with paragraph (b) above, after 5.00 p.m. in the place of receipt shall be deemed only to become effective on the following day.

		
	35.7
	English language

		
	(a)
	Any notice given under or in connection with any Finance Document must be in English.

		
	(b)
	All other documents provided under or in connection with any Finance Document must be:

		
	(i)
	in English; or

		
	(ii)
	if not in English, and if so required by the Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

		
	36.
	CALCULATIONS AND CERTIFICATES

		
	36.1
	Accounts

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.
		
	36.2
	Certificates and Determinations

Page 191

Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.
		
	36.3
	Day count convention

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 365 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.
		
	37.
	PARTIAL INVALIDITY

If, at any time, any provision of a Finance Document is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.
		
	38.
	REMEDIES AND WAIVERS

No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under a Finance Document shall operate as a waiver of any such right or remedy or constitute an election to affirm any Finance Document.  No election to affirm any of the Finance Documents on the part of any Finance Party shall be effective unless it is in writing.  No single or partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy.  The rights and remedies provided in each Finance Document are cumulative and not exclusive of any rights or remedies provided by law.
		
	39.
	AMENDMENTS AND WAIVERS

		
	39.1
	Required consents

		
	(a)
	Subject to Clause 39.2 (All Lender matters) and Clause 39.3 (Other exceptions), any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Borrower and any such amendment or waiver will be binding on all Parties.

		
	(b)
	The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause ‎39.

		
	(c)
	Without prejudice to the generality of paragraphs (c), (d) and (e) of Clause 29.9 (Rights and discretions), the Agent may engage, pay for and rely on the services of lawyers in determining the consent level required for and effecting any amendment, waiver or consent under this Agreement. 

		
	(d)
	Each Obligor agrees to any such amendment or waiver permitted by this Clause ‎39 which is agreed to by the Borrower.  This includes any amendment or waiver which would, but for this paragraph (d), require the consent of all of the Obligors.

Page 192

		
	39.2
	All Lender matters

An amendment, waiver or (in the case of a Security Document) a consent of, or in relation to, any term of a Finance Document that has the effect of changing or which relates to:
		
	(a)
	the definition of Majority Lenders in Clause 1.1 (Definitions);

		
	(b)
	an extension to the date of payment of any amount under the Finance Documents (other than in relation to Clause 8.3 (Mandatory prepayment) and Clause 8.4 (Application of mandatory prepayments));

		
	(c)
	a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;

		
	(d)
	a change in currency of payment or any amount under the Finance Documents;

		
	(e)
	an increase in any Commitment or the Total Commitments, an extension of any Availability Period or any requirement that a cancellation of Commitments reduces the Commitments rateably under the Facility;

		
	(f)
	a change to the Borrower or the Borrowers or the Guarantors other than in accordance with Clause 27‎ (Changes to the Transaction Obligors);

		
	(g)
	any provision which expressly requires the consent of all the Lenders;

		
	(h)
	Clause ‎2.2 (Finance Parties’ rights and obligations), Clause ‎26 (Changes to the Lenders), Clause 32 (Sharing among the Finance Parties), this Clause 39, Clause 42 (Governing Law) or Clause 43.1 (Jurisdiction);

		
	(i)
	(other than as expressly permitted by the provisions of any Finance Document) the nature or scope of:

		
	(i)
	the guarantee and indemnity granted under Clause ‎19 (Guarantee and indemnity);

		
	(ii)
	the Security Assets; or

		
	(iii)
	the manner in which the proceeds of enforcement of the Transaction Security are distributed,

(except on the case of paragraphs (ii) and (iii) above, insofar as it relates to a sale or disposal of an asset which is the subject of the Transaction Security where such sale or disposal is expressly permitted under this Agreement or any other Finance Document); or
		
	(j)
	the release of any guarantee and indemnity granted under Clause 19 (Guarantee and indemnity) or of any Transaction Security unless:

		
	(i)
	permitted under this Agreement or any other Finance Document; or

		
	(ii)
	relating to a sale or disposal of an asset which is the subject of the Transaction Security where such sale or disposal is expressly permitted under this Agreement or any other Finance Document,

Page 193

shall not be made, or given, without the prior consent of all the Lenders.
		
	39.3
	Other exceptions

An amendment or waiver which relates to the rights or obligations of the Agent, the Security Agent or the Arranger (each in their capacity as such) may not be effected without the consent of the Agent, the Security Agent or, as the case may be, the Arranger.
		
	39.4
	Excluded commitments

If any Lender (including for the avoidance of doubt a Defaulting Lender) fails to respond to a request for a consent, waiver, amendment of or in relation to any term of any Finance Document or any other vote of Lenders under the terms of this Agreement within 15 Business Days of that request being made (or 21 Business Days following any Securitisation) (unless, in each case, the Borrower and the Agent agree to a longer time period in relation to any request):
		
	(a)
	its Commitments(s) shall not be included for the purpose of calculating the Total Commitments under the Facility when ascertaining whether any relevant percentage (including, for the avoidance of doubt, unanimity) of Total Commitments has been obtained to approve that request;

		
	(b)
	its status as a Lender shall be disregarded for the purpose of ascertaining whether the agreement of any specified group of Lenders has been obtained to approve that request; and

		
	(c)
	to the extent that such Lender is the sole Lender in respect of this Agreement, such consent, waiver or amendment (if requested by or on behalf of an Obligor) shall be deemed to have been obtained or approved (as applicable).

		
	39.5
	Replacement of Lender

		
	(a)
	If:

		
	(i)
	any Lender becomes a Non-Consenting Lender (as defined in paragraph (d) below) or a Defaulting Lender; or

		
	(ii)
	an Obligor becomes obliged to repay any amount in accordance with Clause 8.1 (Illegality) or to pay additional amounts pursuant to Clause 14.1 ‎(Increased costs), Clause 13.2 (Tax gross-up) or Clause ‎13.3 (Tax Indemnity) to any Lender,

then the Borrower may, on 10 Business Days' prior written notice to the Agent and such Lender, replace such Lender by requiring such Lender to (and, to the extent permitted by law, such Lender shall) transfer pursuant to Clause 26 (Changes to the Lenders) all (and not part only) of its rights and obligations under this Agreement to a Lender or other bank, financial institution, trust, fund or other entity (a "Replacement Lender") selected by the Borrower, which confirms its willingness to assume and does assume all the obligations of the transferring Lender in accordance with Clause 26 (Changes to the Lenders) for a purchase price in cash payable at the time of transfer in an amount equal to 

Page 194

the outstanding principal amount of such Lender's participation in the outstanding Utilisations and all accrued interest, Break Costs and other amounts payable in relation thereto under the Finance Documents.
		
	(b)
	The replacement of a Lender pursuant to this Clause ‎39.5 shall be subject to the following conditions:

		
	(i)
	the Borrower shall have no right to replace the Agent or Security Agent;

		
	(ii)
	neither the Agent nor the Lender shall have any obligation to the Borrower to find a Replacement Lender;

		
	(iii)
	in the event of a replacement of a Non-Consenting Lender such replacement must take place no later than 10 Business Days  after the date on which that Lender is deemed a Non-Consenting Lender;

		
	(iv)
	in no event shall the Lender replaced under paragraph (a) above be required to pay or surrender to such Replacement Lender any of the fees received by such Lender pursuant to the Finance Documents; and

		
	(v)
	the Lender shall only be obliged to transfer its rights and obligations pursuant to paragraph (a) above once it is satisfied that it has complied with all necessary "know your customer" or other similar checks under all applicable laws and regulations in relation to that transfer.

		
	(c)
	A Lender shall perform the checks described in paragraph (b)(v) above as soon as reasonably practicable following delivery of a notice referred to in paragraph (a) above and shall notify the Agent and the Borrower when it is satisfied that it has complied with those checks.

		
	(d)
	In the event that:

		
	(i)
	the Borrower or the Agent (at the request of the Borrower) has requested the Lenders to give a consent in relation to, or to agree to a waiver or amendment of, any provisions of the Finance Documents;

		
	(ii)
	the consent, waiver or amendment in question requires the approval of all the Lenders; and

		
	(iii)
	Lenders whose Commitments aggregate more than 66.67 per cent. of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 66.67 per cent. of the Total Commitments prior to that reduction) have consented or agreed to such waiver or amendment,

then any Lender who does not and continues not to consent or agree to such waiver or amendment shall be deemed a Non-Consenting Lender.
		
	39.6
	Disenfranchisement of Defaulting Lenders

		
	(a)
	For so long as a Defaulting Lender has any Available Commitment, in ascertaining:

Page 195

		
	(i)
	the Majority Lenders; or 

		
	(ii)
	whether:

		
	(A)
	any given percentage (including, for the avoidance of doubt, unanimity) of the Total Commitments under the Facility; or 

		
	(B)
	the agreement of any specified group of Lenders,

has been obtained to approve any request for a consent, waiver, amendment or other vote of Lenders under the Finance Documents, that Defaulting Lender's Commitments under the Facility will be reduced by the amount of its Available Commitments under the relevant Facility and, to the extent that that reduction results in that Defaulting Lender's Total Commitments being zero, that Defaulting Lender shall be deemed not to be a Lender for the purposes of paragraphs (i) and (ii) above.
		
	(b)
	For the purposes of this Clause 39.6, the Agent may assume that the following Lenders are Defaulting Lenders:

		
	(i)
	any Lender which has notified the Agent that it has become a Defaulting Lender;

		
	(ii)
	any Lender in relation to which it is aware that any of the events or circumstances referred to in paragraphs (a), (b), (c) or (d)  of the definition of "Defaulting Lender" has occurred,

unless it has received notice to the contrary from the Lender concerned (together with any supporting evidence reasonably requested by the Agent) or the Agent is otherwise aware that the Lender has ceased to be a Defaulting Lender.
		
	40.
	CONFIDENTIALITY

		
	40.1
	Confidential Information

Each Finance Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause ‎40.2 (Disclosure of Confidential Information) and Clause 40.3 (Disclosure to numbering service providers), and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.
		
	40.2
	Disclosure of Confidential Information

Any Finance Party may disclose:
		
	(a)
	to any of its Affiliates and Related Funds and any of its or their officers, directors, employees, professional advisers, auditors, partners and Representatives such Confidential Information as that Finance Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this Clause 40.2 is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except 

Page 196

that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;
		
	(b)
	to any person:

		
	(i)
	to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents or which succeeds (or which may potentially succeed) it as Agent or Security Agent and, in each case, to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

		
	(ii)
	with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and/or one or more Obligors and to any of that person’s Affiliates, Related Funds, Representatives and professional advisers;

		
	(iii)
	appointed by any Finance Party or by a person to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf (including, without limitation, any person appointed under paragraph (b) of Clause ‎29.16 (Relationship with the other Finance Parties));

		
	(iv)
	who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or (ii) above;

		
	(v)
	to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation;

		
	(vi)
	to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes;

		
	(vii)
	to whom or for whose benefit that Finance Party charges, assigns or otherwise creates Security (or may do so) pursuant to Clause ‎26.8 (Security over Lenders’ rights);

		
	(viii)
	who is a Party, a member of the Group or any related entity of an Obligor;

		
	(ix)
	any note trustee in connection with or in contemplation of a Securitisation or a covered bond issuance; or

		
	(x)
	with the consent of the Borrower,

Page 197

in each case, such Confidential Information as that Finance Party shall consider appropriate:
		
	(A)
	in relation to paragraphs paragraph (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information;

		
	(B)
	in relation to paragraph (b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information;

		
	(C)
	in relation to paragraphs (b)(v), (b)(vi) and (b)(vii)‎ above, the person to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of that Finance Party, it is not practicable so to do in the circumstances;

		
	(c)
	to any person appointed by that Finance Party or by a person to whom paragraph (b)(i) or (ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Borrower and the relevant Finance Party;

		
	(d)
	to any potential investor in commercial mortgage backed securities in connection with or in contemplation of a Securitisation or a covered bond issuance, such Confidential Information as may be required to be disclosed;

		
	(e)
	to any rating agency (including its professional advisers) such Confidential Information as may be required to be disclosed to enable such rating agency to carry out its normal rating activities in relation to the Finance Documents and/or the Obligors if the rating agency to whom the Confidential Information is to be given is informed of its confidential nature and that some or all of such Confidential Information may be price-sensitive information.

Page 198

		
	40.3
	Disclosure to numbering service providers

		
	(a)
	Any Finance Party may disclose to any national or international numbering service provider appointed by that Finance Party to provide identification numbering services in respect of this Agreement, the Facility and/or one or more Obligors the following information:

		
	(i)
	names of Obligors;

		
	(ii)
	country of domicile of Obligors;

		
	(iii)
	place of incorporation of Obligors;

		
	(iv)
	date of this Agreement;

		
	(v)
	Clause 41 (Governing law);

		
	(vi)
	the names of the Agent and the Arranger;

		
	(vii)
	date of each amendment of this Agreement;

		
	(viii)
	amount of Total Commitments;

		
	(ix)
	currency of the Facility;

		
	(x)
	type of Facility;

		
	(xi)
	ranking of Facility;

		
	(xii)
	Termination Date for Facility;

		
	(xiii)
	changes to any of the information previously supplied pursuant to paragraphs (i) to (xii) above; and

		
	(xiv)
	such other information agreed between such Finance Party and the Borrower,

to enable such numbering service provider to provide its usual syndicated loan numbering identification services.
		
	(b)
	The Parties acknowledge and agree that each identification number assigned to this Agreement, the Facility and/or one or more Obligors by a numbering service provider and the information associated with each such number may be disclosed to users of its services in accordance with the standard terms and conditions of that numbering service provider.

		
	(c)
	The Borrower represents that none of the information set out in paragraphs (a)(i) to (xiv) of paragraph (a) above is, nor will at any time be, unpublished price-sensitive information.

		
	(d)
	The Agent shall notify the Borrower and the other Finance Parties of:

Page 199

		
	(i)
	the name of any numbering service provider appointed by the Agent in respect of this Agreement, the Facility and/or one or more Obligors; and

		
	(ii)
	the number or, as the case may be, numbers assigned to this Agreement, the Facility and/or one or more Obligors by such numbering service provider.

		
	40.4
	Entire agreement

This Clause 40‎ constitutes the entire agreement between the Parties in relation to the obligations of the Finance Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.
		
	40.5
	Inside information

Each of the Finance Parties acknowledges that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or prohibited by applicable legislation including securities law relating to insider dealing and market abuse and each of the Finance Parties undertakes not to use any Confidential Information for any unlawful purpose.
		
	40.6
	Notification of disclosure

Each of the Finance Parties agrees (to the extent permitted by law and regulation) to inform the Borrower:
		
	(a)
	of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (b)(v) of Clause ‎40.2 (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and

		
	(b)
	upon becoming aware that Confidential Information has been disclosed in breach of this Clause 40.

		
	40.7
	Continuing obligations

The obligations in this Clause ‎40 are continuing and, in particular, shall survive and remain binding on each Finance Party for a period of twelve Months from the earlier of:
		
	(a)
	the date on which all amounts payable by the Obligors under or in connection with the Finance Documents have been paid in full and all Commitments have been cancelled or otherwise cease to be available; and

		
	(b)
	the date on which such Finance Party otherwise ceases to be a Finance Party.

Page 200

		
	41.
	COUNTERPARTS

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.
		
	42.
	GOVERNING LAW

This Agreement and any non-contractual obligation arising out of or in connection with it is governed by English law.
		
	43.
	ENFORCEMENT

		
	43.1
	Jurisdiction

		
	(a)
	The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with this Agreement) (a Dispute).

		
	(b)
	The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

		
	(c)
	This Clause 43.1‎ is for the benefit of the Finance Parties only.  As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions.

		
	43.2
	Service of process

		
	(a)
	Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other than an Obligor incorporated in England and Wales):

		
	(i)
	irrevocably appoints the Borrower as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document; and

		
	(ii)
	agrees that failure by a process agent to notify the relevant Obligor of the process will not invalidate the proceedings concerned.

		
	(b)
	If any person appointed as an agent for service of process is unable for any reason to act as agent for service of process, the Borrower (on behalf of all the Obligors) must promptly (and in any event within 10 days of such event taking place) appoint another agent on terms acceptable to the Agent.  Failing this, the Agent may appoint another agent for this purpose.

This Agreement has been entered into on the date stated at the beginning of this Agreement.

Page 201

Schedule 1
THE ORIGINAL PARTIES AND PROPERTIES
Part A The Original Guarantors
	
		
	Name of Obligor
	Registration number (or equivalent, if any)

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	4258255

	GA HC REIT II CH U.K. L'Hermitage Limited
	75107

	GA HC REIT II CH U.K. Walstead Limited
	2144545

Part B The Original Lenders - other than UK Non-Bank Lenders
	
			
	Name of Original Lender
	Commitment
	Treaty Passport Scheme reference number and jurisdiction of tax residence (if applicable)

	Credit Suisse AG, London Branch
	£
	 

Part C The Original Lenders - UK Non-Bank Lenders
	
		
	Name of Original Lender
	Commitment

	 
	 

Page 202

Part D UK Properties
	
				
	Owner
	Title Numbers
	Address of Property
	Allocated Loan Amount

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	ON91174
	Abbeycrest Nursing Home, Essex Way, Kennylands Road, Sonning Common, Reading, RG4 9RG
	£14,490,000

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	EX647090
	Bradbury House, New Street, Braintree, CM7 1ES
	£1,269,517

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	NK183340
	Cedar House, Church Road, Yelverton, Norwich, NR14 7PB
	£741,209

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	ESX57608
	Claydon House Nursing Home, 8 Wallands Crescent, Lewes, BN7 2QT
	£2,745,000

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	SY550857 SY584960 and SY550984
	Coppice Lea, Bletchingley Road, Merstham, Redhill, RH1 3QN
	£6,923,207

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	SY190554
	Coxhill Manor Nursing Home, Station Road, Chobham, Woking, GU24 8AU
	£9,793,420

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	SY214508 and SY322104
	Cranmer Court, Farleigh Common, Warlingham, CR6 9PE
	£12,330,000

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	TGL309650
	Deer Park View, Sandy Lane, Teddington
	£12,270,000

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	BM86417
	Denham Manor Nursing Home, Halings Lane, Denham, Uxbridge, UB9 5DQ
	£4,082,650

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	BK299384
	Dormy House, Ridgemount Road, Ascot, SL5 9RL
	£10,296,000

Page 203

	
				
	GA HC REIT II CH UK Senior Housing Portfolio Limited
	SH9934 
SH9935 
SH9936 
SH9937 
SH9938 
SH9939 
HP470886 
HP368651 
HP382289 
HP477705 
HP571428 
HP475598
	East Hill House (at various addresses)1
	£3,043,688

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	WT147273
	Ferfoot Care Home, Old Hardenhuish Lane, Chippenham, SN14 6HH
	£3,562,500

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	K28024
	Fir Tree House, 30 St James Road, Tunbridge Wells, Kent TN1 2JZ
	£3,414,292

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	ST203951
	Frethey House Nursing Home, Bishops Hull, Taunton, Somerset, TA4 1AB
	£3,352,500

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	SGL237240
	Galsworthy House, Kingston Hill, Kingston Upon Thames, KT2 7LX
	£18,712,500

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	SY577382
	Garth Nursing Home, Tower Hill Road, Dorking, RH4 2AY
	£4,171,272

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	WK383188
	Gildawood, Land lying on the south side of Park Avenue, Nuneaton, Warwickshire
	£3,256,588

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	ESX235202
	Heffle Court, Station Road, Heathfield, TN21 8DR
	£4,880,940

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	BM244758 
BM142174 
and BM314841
	Hulcott Nursing Home, Hulcott, Aylesbury, HP22 5AX
	£2,523,264

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	ON124921
	Huntercombe Hall Nursing Home, Huntercombe Place, Nuffield, Henley-on-Thames, RG9 5SE
	£3,167,450

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	SY204727
	Kingsclear Nursing Home, Park Road, Camberley, GU15 2LN
	£2,345,200

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	K714055
	Kippington Grange, Grange Road, Sevenoaks, TN13 2PG
	£3,780,000

Page 204

	
				
	GA HC REIT II CH UK Senior Housing Portfolio Limited
	SY565264 
and SY663360
	Knowle Park Nursing Home, Knowle Lane, Cranleigh, GU6 8JL
	£5,827,250

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	DT59283
	The Magna Care Centre, Arrowsmith Road, Wimborne, BH21 3BQ
	£5,691,400

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	GR291645
	Mill House Care Home, Sheep Street, Chipping Campden, GL55 6DR
	£6,899,750

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	WT139689 
WT131191
	Miranda House, 91-93 High Street, Royal Wootton Bassett, Swindon, Wiltshire, SN4 7HA
	£3,660,000

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	SY562850
	Moorlands Nursing Home, MacDonald Road, Lightwater, GU18 5US
	£2,202,200

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	DY231958
	Mount Pleasant Nursing Home, Hollow Lane, Burton on Trent, DE15 0DR
	£4,825,743

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	NK354632
	Oak Manor Care Home, Dereham Road, Scarning, NR19 2PG
	£3,510,650

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	ON89188 
ON161949 
ON89187
	OakenHolt Home, Eynsham Road, Farmoor, Oxford, OX2 9NL
	£8,799,885

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	WSX119857
	Rectory House, West Street, Sompting, Lancing, BN15 0DA
	£2,400,000

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	SK269053
	Rendlesham Care Centre, Suffolk Drive, Rendlesham, Woodbridge, IP12 2TP
	£5,905,900

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	AV219115
	St Georges Nursing Home, Kenn Road, St Georges, Bristol, BS5 7PD
	£3,467,750

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	SGL563638
	Sundridge Court, 19 Edward Road, Bromley, BR1 3NG
	£2,317,500

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	ON138668 
ON204428
	Tall Tress Care Centre, Tall Trees, Burford Road, Shipton Under Wychwood, Chipping Norton, OX7 6DB
	£8,182,500

Page 205

	
				
	GA HC REIT II CH UK Walstead Ltd.
	SX147321
	Walstead Place, Scaynes Hill Road, Walstead, Haywards Heath, RH16 2QG
	£6,292,391

_________
19A East Hill Drive, Liss, GU33 7RR; East Hill House, 9 East Hill Drive, Liss, GU33 7RR; Laurel Cottage, 2 East Hill Drive, Liss, GU33 7RR; 26 East Hill Drive, Liss, GU33 7RR; Rose Cottage, East Hill Drive, Liss, GU33 7RR; Land on North side of East Hill Drive, Hill Brow Road, Liss, GU33 7RR; The Old Forge, 24 East Hill Drive, Liss, GU33 7RR; 15B East Hill Drive, Liss, GU33 7RR; Land lying to the North of East Hill Drive, Liss; 11 East Hill Drive, Liss, GU33 7RR; 15A East Hill Drive, Liss, GU33 7RR; Land lying to the north of East Hill Drive, Brow Hill, Liss

Part E Scottish Properties
	
				
	Owner
	Title Numbers
	Address of Property
	Allocated Loan Amount

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	CLK6107
	Beechwood Park Nursing Home, 136 Main Street, New Sauchie, Alloa, 
Scotland, FK10 3JZ
	£3,232,933

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	FFE22826
	Forth Bay Nursing Home, Walker Street, Kincardine, Alloa, FK10 4NT
	£2,257,500

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	CLK7370
	Hillview Court, Whiteyetts, Sauchie, Clackmannashire, Scotland, FK10 3AQ
	£2,610,002

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	CLK11530
	Marchglen Nursing Home, 2 Gannel Hill View, Fishcross, Alloa, Clackmannanshire, FK10 3GN
	£3,796,650

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	FFE72109 
FFE49435 
FFE40254
	Scoonie Care Home, Scoone House, Windygates Road, Leven, Fife, KY14 4DP
	£2,272,500

	GA HC REIT II CH UK Senior Housing Portfolio Limited
	FFE28660
	Strathview Care Home, Carswell Wynd, Auchtermuchty, Cupar, Fife, KY14 7FG
	£1,730,300

Page 206

Part F Jersey Properties
	
				
	Owner
	Unique Property Reference Numbers
	Address of Property
	Allocated Loan Amount

	GA HC REIT II CH U.K. L'HERMITAGE LTD
	69047514 
69407516 
69407518
	Beaumont Villas, La Route de Beaumont, St. Peter, Jersey, JE3 7HH
	£6,721,000

	GA HC REIT II CH U.K. L'HERMITAGE LTD
	69407513
	L’Hermitage, L’Hermitage Gardens, La Route de Beaumont, St. Peter, Jersey, JE3 7HH
	2 

     

_________
2  The Allocated Loan Amounts for L’Hermitage and Beaumont Villas have been amalgamated to equal £6,722,294.

Page 207

Schedule 2
CONDITIONS PRECEDENT
Part A 
		
	1.
	A copy of a resolution of the board of directors of the Indemnitor:

		
	(a)
	approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute, deliver and perform the Finance Documents to which it is a party;

		
	(b)
	authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and

		
	(c)
	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request) to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party.

		
	2.
	Reports

		
	(a)
	A copy of the Closing Valuation.

		
	(b)
	The Technical and Engineering Report.

		
	(c)
	The Closing Tax Structure Report.

		
	(d)
	The Environmental Report.

		
	(e)
	A Property Report in respect of each Property.

		
	(f)
	The Overview Report.

		
	(g)
	The Insurance Report.

		
	(h)
	Reliance letters addressed to the Finance Parties, the Agent and the Security Agent in respect of each of the reports referred to in (a) to (g) above, capable of being relied upon by the Finance Parties, the Agent and the Security Agent and any security trustee and note trustee in connection with a Securitisation of the Loan or part of the Loan.

		
	(i)
	Group Structure Chart.

		
	3.
	Security and other Transaction Documents

		
	(a)
	This Agreement duly executed by each party to it (other than the Original Obligors).

		
	(b)
	A copy of the Merger Agreement duly executed by each party to it.

		
	(c)
	The Indemnitor Guarantee duly executed by each party to it.

Page 208

		
	(d)
	The Escrow Agreement duly signed by each party to it.

		
	(e)
	The Mezzanine Flex Letter duly signed by all parties to it.

		
	4.
	Legal opinions

		
	(a)
	A legal opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP as to the capacity of the Indemnitor to enter into the Finance Documents to which it is a party addressed to the Agent and the Security Agent and substantially in the form distributed to the Original Lenders prior to signing this Agreement.

		
	(b)
	A legal opinion of Freshfields Bruckhaus Deringer LLP, legal advisers to the Arranger in England, substantially in the form distributed to the Original Lenders prior to signing this Agreement and addressed to the Arranger, the Agent, the Security Agent and the Original Lenders.

Part B Conditions to Utilisation

1.    Obligors
		
	(a)
	A copy of the Constitutional Documents of each Obligor including, in respect of those companies incorporated in Jersey, the consent issued to that company pursuant to the Control of Borrowing (Jersey) Order 1958, as amended.

		
	(b)
	A copy of a resolution of the board of directors of each Obligor:

		
	(i)
	approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute, deliver and perform the Finance Documents to which it is a party;

		
	(ii)
	authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and

		
	(iii)
	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request) to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party.

		
	(c)
	A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above.

		
	(d)
	A copy of a resolution signed by all the holders of the issued shares in each Obligor, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Obligor is a party.

		
	(e)
	If applicable, a certificate of each Obligor (signed by a director) confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, security or similar limit binding on any Obligor to be exceeded.

Page 209

		
	(f)
	A certificate of an authorised signatory of the relevant Obligor certifying that each copy document relating to it specified in this ‎Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

		
	(g)
	Evidence reasonably required by each Lender and the Agent for the purpose of any “know your customer” or similar identification procedures (as notified to the Borrower not less than 5 Business Days prior to the date of this Agreement).

		
	2.
	Financial Information

		
	(a)
	The Original Financial Statements.

		
	(b)
	The Initial Budget.

		
	3.
	Insurance

		
	(a)
	The Borrower’s Insurance Broker’s Letter.

		
	(b)
	Copies of all insurance policies held in relation to the Properties (other than in relation to the insurances referred to in paragraph (c) below) in respect of:

		
	(i)
	title defects;

		
	(ii)
	chancel repair liability,

		
	(iii)
	access indemnity; and

		
	(iv)
	restrictive covenants.

		
	(c)
	Evidence that the Borrower has taken out the difference in conditions and/or difference in limits insurance, such evidence to comprise of (i) a “Certificate of Liability Insurance” and (ii) “Evidence of Commercial Property Insurance” in each case dated 26 November 2014 and issued by Marsh USA, Inc.

		
	4.
	Property

In this section an “acceptable undertaking” means a solicitor’s undertaking or undertakings from a firm or firm of solicitors regulated by the Law Society of England and Wales (or where relevant, regulated by the Law of Society of Jersey or the Law Society of Scotland) and approved for this purpose by the Agent and in form and substance satisfactory to the Agent in the agreed form.
		
	(a)
	Evidence that all Security (other than under a Security Document or Scots Tenant Security) affecting the relevant Obligor’s interests in the relevant Properties has been, or will be, discharged by the Utilisation Date.

Page 210

		
	(b)
	Preparation of all necessary Land Registry and Land Register of Scotland and Jersey Land Registry application forms (including a form to note the obligation to make further advances, a form to register the restriction contained in the Security Agreement and a form for disclosable overriding interests) (or applicable documentation in the relevant jurisdiction in which such Property is situated) in relation to the charging of such Property in favour of the Security Agent and an executed copy of the Jersey Billet in relation to the charging of each Property located in Jersey accompanied by payment of the applicable Land Registry or Land Register of Scotland fee or, in Jersey, stamp duty or an acceptable undertaking in relation to the same.

		
	(c)
	Executed but undated notice to the Existing Tenant, requiring it to serve copies of notices on the Security Agent in accordance with clause 27.1 or 28.1 (as applicable) of the Existing Leases, together with an undertaking from Berwin Leighton Paisner LLP to date and send such notice to the Existing Tenant within 5 Business Days of the Closing Date.

		
	(d)
	An acceptable undertaking from each of (i) Irwin Mitchell LLP in relation to the Properties in England to register the charge and the deeds of variation and (ii) Brodies LLP in relation to the Properties in Scotland to register the deeds of variation.

		
	(e)
	Executed copies of the Assignment Deeds of Variation (other than in respect of each Property located in Jersey).

		
	(f)
	Notices of charge for three leasehold titles at the East Hill Property.

		
	(g)
	An acceptable undertaking from Berwin Leighton Paisner LLP (BLP) to hold (where relevant) following receipt the title deeds in the Properties in England and Scotland to the order of the Security Agent.

		
	(h)
	Deed of covenant between the Security Agent and Eric Stanley Jennings relating to the Abbey Crest Property.

		
	(i)
	A consent signed by Eric Stanley Jennings or his solicitors addressed to the Land Registry in a form which satisfies the restriction at the Abbey Crest Property.

		
	(j)
	The consents signed by BLP as solicitors to the registered proprietors on behalf of the Existing Tenants to the registration of the charge and confirming that schedule 3 to the Existing Leases does not apply in a form which satisfies the relevant restrictions on the titles to the Properties in England.

		
	(k)
	Executed copies of the guarantor consents and restatement to the UA Initial Deed of Variation and guarantor consents to the UA Deed of Variation.

		
	(l)
	For each of the Properties located in Scotland, a letter of obligation from the Borrower’s solicitors in favour of the Security Agent’s solicitors of the relevant Finance Parties.

Page 211

		
	5.
	Security and other Transaction Documents

		
	(a)
	An Accession Deed dated the date of Closing and duly executed by each of the Original Obligors.

		
	(b)
	Confirmation that the Escrow Agent has received the Escrowed Funds (each as defined in the Escrow Agreement).

		
	(c)
	Confirmation that each of the US Lenders and the NorthStar Parties (each as defined in the Escrow Agreement) have authorised the release by the Escrow Agent of their portion of the Escrowed Funds (as defined in the Escrow Agreement) (which shall be provided by the participation of the Original Lender in the “closing call” envisaged in the Closing Memorandum (as referenced in the Escrow Agreement).

		
	(d)
	A certificate from the Sponsor (signed by a director) certifying that:

		
	(i)
	each of the matters specified in Article VII of the Merger Agreement have been satisfied;

		
	(ii)
	the Merger Agreement has not been amended, varied, novated, supplemented, superseded, waived or terminated in any way which affects one or more of the Properties and is materially adverse to the Finance Parties  without the Agent’s consent and any documents effecting or evidencing any such amendment, variation, novation, supplement, succession, waiver or termination has been delivered to the Agent; and

		
	(iii)
	it is not aware of any breach of any warranty or any claim under the Merger Agreement which relates to any of the Properties or the Obligors.

		
	(e)
	At least two originals of the English law Security Agreement duly executed by each party to it.

		
	(f)
	At least two originals of each Jersey law Security Interest Agreement duly executed by each party to it.

		
	(g)
	An executed copy of letter(s) of authority in the form approved by the Security Agent to register and/or re-register the Billets given by the relevant Obligor and addressed to the Security Agent.

		
	(h)
	The Subordination Agreement duly executed by each party to it.

		
	(i)
	Share certificates, duly executed stock transfer forms and the updated register of members (with a note of the Security Agent's security interests in respect of the shares in Jerseyco) of each Obligor.

		
	(j)
	Copies of notices to each Tenant and each bank operating an Account substantially in the relevant form set out in the Security Agreement.

		
	(k)
	Copies of all notices to insurers as required to be delivered on or before the Closing Date under the English law Security Agreement.

Page 212

		
	(l)
	All notices and confirmations required to be given or executed under the Jersey law Security Interest Agreements in each case substantially in the relevant forms set out in the relevant Jersey law Security Interest Agreement and other documents to be delivered thereunder.

		
	(m)
	A duly completed consent form, which is required so that the Security Agent may register a financing statement on the SIR against each relevant Obligor in respect of the Security Interest to be created pursuant to any Jersey Security Document to which it is a party, signed by (i) each applicable Obligor; and (ii) the individual named therein as the contact for service for that Obligor consenting to the inclusion of his or her name and contact details in a financing statement to be registered on the SIR and delivered to the legal advisers of the relevant Finance Parties in Jersey on or before the date of this Agreement.

		
	(n)
	A search of the SIR made against each Obligor on the Utilisation Date showing that no financing statements have been registered against it (other than in favour of the Security Agent).

		
	(o)
	Evidence of the discharge of any existing Security over the Properties to the extent such Security is not permitted to subsist under this Agreement.

		
	(p)
	Evidence of repayment and discharge in full or subordination to the Facility of any existing Financial Indebtedness that is not permitted to subsist under this Agreement.

		
	(q)
	The Fee Letter in respect of the fees payable to the Agent and Security Agent duly executed by each party to it.

		
	(r)
	An acceptable undertaking from Clifford Chance LLP relating the holding and release of certain condition precedent documents.

		
	6.
	Legal opinions

		
	(a)
	A legal opinion of Freshfields Bruckhaus Deringer LLP, legal advisers to the Arranger in England, substantially in the form distributed to the Original Lenders prior to signing this Agreement, and addressed to the Arranger, the Agent, the Security Agent and the Lenders .

		
	(b)
	A legal opinion of Carey Olsen, legal advisers to the Arranger in Jersey, substantially in the form distributed to the Original Lenders prior to signing this Agreement, and addressed to the Arranger, the Agent, the Security Agent and the Lenders.

		
	7.
	Other documents and evidence

		
	(a)
	A funds flow statement (the Funds Flow Statement) setting out the funding and application of funds in relation to the transactions contemplated in this Agreement.

Page 213

		
	(b)
	Evidence that any process agent referred to in Clause ‎43.2 (Service of process), if not an Original Obligor, has accepted its appointment.

		
	(c)
	Evidence of the payment of all outstanding arrangement fees and outstanding fees of lawyers and the Valuer (as evidenced by the Funds Flow Statement and/or the Utilisation Request).

		
	(d)
	Evidence that any other fees, and the costs and expenses then due from the Borrower pursuant to Clause ‎12 (Fees) and Clause ‎17 (Costs and expenses) have been paid or will be paid by the Utilisation Date (as evidenced by the Funds Flow Statement and/or the Utilisation Request). 

		
	(e)
	Evidence of the funding of Special Reserves required to be funded at Closing under Clause 5.3 (Special Reserves) (as evidenced by the Funds Flow Statement and/or the Utilisation Request).

		
	(f)
	Evidence that the Deferred Maintenance and Environmental Conditions Reserve  has been funded or will be funded on the Utilisation Date to the extent required by the Agent (acting on the instructions of the Original Lenders acting reasonably) (as evidenced by the Funds Flow Statement and/or the Utilisation Request).

		
	(g)
	Evidence that the Hedging Reserve has been funded or will be funded on the Utilisation Date (as evidenced by the Funds Flow Statement and/or the Utilisation Request).

		
	(h)
	Evidence that the Radon Reserve has been funded or will be funded on the Utilisation Date (as evidenced by the Funds Flow Statement and/or the Utilisation Request).

		
	(i)
	Evidence that the Above-Ground Storage Tank Reserve has been funded or will be funded on the Utilisation Date (as evidenced by the Funds Flow Statement and/or the Utilisation Request).

		
	(j)
	Evidence that the Underground Storage Tank Reserve has been funded or will be funded on the Utilisation Date (as evidenced by the Funds Flow Statement and/or the Utilisation Request).

		
	(k)
	The Dormant Subsidiaries List and a certificate signed by an authorised signatory of the Borrower confirming that each member of the Group which is a Dormant Subsidiary as at the Closing Date is included in the Dormant Subsidiaries List.

		
	(l)
	A copy of the Umbrella Agreement.

		
	(m)
	A copy of each of the agreements evidencing any intra-Group debt or Subordinated Debt.

		
	(n)
	Evidence that all guarantees and Security granted in connection with the Subordinated Debt has been or will be released at Closing.

		
	(o)
	The US Facility Agreement duly executed by all parties to it.

Page 214

		
	Part C
	Conditions precedent required to be delivered by an Additional Obligor

		
	1.
	An Accession Deed executed by the Additional Obligor and the Borrower.

		
	2.
	A copy of the constitutional documents of the Additional Obligor.

		
	3.
	A copy of a resolution of the board of directors of the Additional Obligor:

		
	(a)
	approving the terms of, and the transactions contemplated by, the Accession Deed and the Finance Documents and resolving that it execute, deliver and perform the Accession Deed and any other Finance Document to which it is party;

		
	(b)
	authorising a specified person or persons to execute the Accession Deed and other Finance Documents on its behalf;

		
	(c)
	authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party; and

		
	(d)
	authorising the Borrower to act as its agent in connection with the Finance Documents

		
	4.
	A specimen of the signature of each person authorised by the resolution referred to in paragraph 3 above.

		
	5.
	If required by law or to the extent customary for the issue of the legal opinions referred to in paragraph 10 below in the relevant jurisdiction, a copy of a resolution signed by all the holders of the issued shares of the Additional Obligor, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Additional Obligor is a party.

		
	6.
	A certificate of the Additional Obligor (signed by a director) confirming that borrowing, guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, security or similar limit binding on it to be exceeded.

		
	7.
	A certificate of an authorised signatory of the Additional Obligor certifying that each copy document listed in this Part C of Schedule 2 is correct, complete and in full force and effect and has not been amended or superseded as at a date no earlier than the date of the Accession Deed.

		
	8.
	A copy of any other Authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable in connection with the entry into and performance of the transactions contemplated by the Accession Letter or for the validity and enforceability of any Finance Document.

		
	9.
	If available, the latest audited financial statements of the Additional Obligor.

		
	10.
	The following legal opinions, each addressed to the Agent, the Security Agent and the Lenders:

Page 215

		
	(a)
	A legal opinion of the legal advisers to the Lenders in England, as to English law in the form distributed to the Lenders prior to signing the Accession Deed.

		
	(b)
	If the Additional Guarantor is incorporated in or has its “centre of main interest” or “establishment” (as referred to in Clause 20.26 (Centre of main interests and establishments)) in a jurisdiction other than England and Wales or is executing a Finance Document which is governed by a law other than English law, a legal opinion of the legal advisers to the Lenders in the jurisdiction of its incorporation, “centre of main interest” or “establishment” (as applicable) or, as the case may be, the jurisdiction of the governing law of that Finance Document (the Applicable Jurisdiction) as to the law of the Applicable Jurisdiction and in the form distributed to the Lenders prior to signing the Accession Deed.

		
	11.
	If the proposed Additional Guarantor is incorporated in a jurisdiction other than England and Wales, evidence that the process agent specified in Clause 43.2 (Service of process), if not an Obligor, has accepted its appointment in relation to the proposed Additional Guarantor.

		
	12.
	Any security documents which are required by the Agent to be executed by the proposed Additional Guarantor in accordance with the Agreed Security Principles.

		
	13.
	Any notices or documents required to be given or executed under the terms of those security documents.

		
	14.
	If the Additional Guarantor is incorporated in England and Wales, Scotland or Northern Ireland, evidence (to the extent applicable) that the Additional Guarantor has done all that is necessary (including, without limitation, by re-registering as a private company) to comply with sections 677 to 683 of the Companies Act 2006 in order to enable that Additional Guarantor to enter into the Finance Documents and perform its obligations under the Finance Documents.

		
	15.
	If the Additional Guarantor is not incorporated in England and Wales, Scotland or Northern Ireland, such documentary evidence as legal counsel to the Lenders may reasonably require, that such Additional Guarantor has complied with any law in its jurisdiction relating to financial assistance or analogous process.

Page 216

		
	Part D
	Transaction Security Documents and security related documents to be delivered by Additional Guarantors

	
					
	Name of Additional Guarantor
	Date by which must become Additional Guarantor
	Description of Transaction Security Document and Transaction Security
	Date by which Transaction Security Document to be executed and delivered to Agent
	Description of Security related documents and other action to be taken by Additional Guarantor to protect or perfect or give priority to Transaction Security and date by which action is to be completed

	[insert name]
	[Closing Date]
	[insert description]
	[Closing Date]
	 

Page 217

Schedule 3
APPROVED VALUERS
Savills
Knight Frank
Colliers International
Cushman & Wakefield
Jones Lang LaSalle
DTZ
CBRE
JLL

Page 218

Schedule 4
 
UTILISATION REQUEST

From:    GA HC REIT CH UK Senior Housing Portfolio Limited
To:    [Agent]
Dated:
Dear Sirs
GA HC REIT CH UK Senior Housing Portfolio Limited – £[            ] Facility Agreement dated [     ] December 2014 (the Agreement)
		
	1.
	We refer to the Agreement.  This is a Utilisation Request.  Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.

		
	2.
	We wish to borrow a Loan on the following terms:

	
		
	Proposed Utilisation Date:
	[      ] (or, if that is not a Business Day, the next Business Day)

	Amount:
	[       ] or, if less, the Available Facility

		
	3.
	We confirm that each condition specified in Clause 5.2‎ (Further conditions precedent) is satisfied on the date of this Utilisation Request.

		
	4.
	The proceeds of this Loan should be credited to [account].

		
	5.
	The purpose of the Loan is [        ].

		
	6.
	[We confirm that you may [disburse the Loan through [LAWYERS] and] deduct from the Loan (although the amount of the Loan will remain the amount requested above):

		
	(a)
	the outstanding balance of the arrangement fee being £[        ];

		
	(b)
	any commitment fee due and payable at the Utilisation Date;

		
	(c)
	[    ] fees;

		
	(d)
	The fees of the Valuer and [    ];

		
	(e)
	Land Registry fees; and

		
	(f)
	Stamp duty land tax.]

		
	2.
	This Utilisation Request is irrevocable.

Yours faithfully
.......................................
authorised signatory for 
[name of relevant Borrower]

Page 219

Schedule 5
 
FORM OF TRANSFER CERTIFICATE
To:    [          ] as Agent
		
	From:
	[The Existing Lender] (the Existing Lender) and [The New Lender] (the New Lender)

Dated:
[Borrower] – [          ] Facility Agreement dated [       ] (the Agreement)
		
	1.
	We refer to the Agreement.  This is a Transfer Certificate.  Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate.

		
	2.
	We refer to Clause ‎26.5 (Procedure for transfer):

		
	(a)
	The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation and in accordance with Clause ‎26.5 (Procedure for transfer) all of the Existing Lender’s rights and obligations under the Agreement and the other Finance Documents which relate to that portion of the Existing Lender’s Commitment and participation in Loan under the Agreement as specified in the Schedule.

		
	(b)
	The proposed Transfer Date is [         ].

		
	(c)
	The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause ‎35.2 (Addresses) are set out in the Schedule.

		
	3.
	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause ‎26.4 (Limitation of responsibility of Existing Lenders).

		
	4.
	The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

		
	(a)
	[a Qualifying Lender (other than a Treaty Lender);]

		
	(b)
	[a Treaty Lender;]

		
	(c)
	[not a Qualifying Lender].

		
	5.
	[The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

		
	(a)
	a company resident in the United Kingdom for United Kingdom tax purposes;

		
	(b)
	a partnership each member of which is:

		
	(i)
	a company so resident in the United Kingdom; or

		
	(ii)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and 

Page 220

which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or
		
	(iii)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]

		
	6.
	[The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [    ]) and is tax resident in [        ], so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax, and requests that the Original Borrower notify each Obligor that it wishes that scheme to apply to this Agreement.]

[6/7].    This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Transfer Certificate.
[7/8].    This Transfer Certificate [and any non-contractual obligations arising out of or in connection with it] [is/are] governed by English law.
[8/9].    This Transfer Certificate has been entered into on the date stated at the beginning of this Transfer Certificate.
		
	Note:
	The execution of this Transfer Certificate may not transfer a proportionate share of the Existing Lender’s interest in the Transaction Security in all jurisdictions.  It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in the Existing Lender’s Transaction Security in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

THE SCHEDULE
Commitment/rights and obligations to be transferred
[insert relevant details] 
[Facility Office address, fax number and attention details for notices and account details for payments,]
	
		
	[Existing Lender]
	[New Lender]

	By:
	By:

This Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as [     ].
[Agent]
By:

Page 221

 
Schedule 6
FORM OF ASSIGNMENT AGREEMENT

To:    [   ] as Agent and [        ] as Borrower, for and on behalf of each Obligor
		
	From:
	[the Existing Lender] (the Existing Lender) and [the New Lender] (the New Lender)

Dated:

[Borrower] - [    ] Facility Agreement dated [      ] (the Agreement)
		
	1.
	We refer to the Agreement. This is an Assignment Agreement.  Terms defined in the Agreement have the same meaning in this Assignment Agreement unless given a different meaning in this Assignment Agreement.

		
	2.
	We refer to Clause 26.6‎ (Procedure for assignment):

		
	(a)
	The Existing Lender assigns absolutely to the New Lender all the rights of the Existing Lender under the Agreement and the other Finance Documents which relate to that portion of the Existing Lender’s Commitment and participations in the Loan under the Agreement as specified in the Schedule.

		
	(b)
	The Existing Lender is released from all the obligations of the Existing Lender which correspond to that portion of the Existing Lender’s Commitment and participations in the Loan under the Agreement specified in the Schedule.

		
	(c)
	The New Lender becomes a Party as a Lender and is bound by obligations equivalent to those from which the Existing Lender is released under paragraph (b) above.

		
	3.
	The proposed Transfer Date is [      ].

		
	4.
	On the Transfer Date the New Lender becomes Party to the Finance Documents as a Lender.

		
	5.
	The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause ‎35.2 (Addresses) are set out in the Schedule.

		
	6.
	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause ‎26.4 (Limitation of responsibility of Existing Lenders).

		
	7.
	The New Lender confirms, for the benefit of the Agent and without liability to any Obligor, that it is:

		
	(a)
	[a Qualifying Lender falling (other than a Treaty Lender);]

		
	(b)
	[a Treaty Lender;]

		
	(c)
	[not a Qualifying Lender].

Page 222

		
	8.
	[The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

		
	(a)
	a company resident in the United Kingdom for United Kingdom tax purposes;

		
	(b)
	a partnership each member of which is:

		
	(i)
	a company so resident in the United Kingdom; or

		
	(ii)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account in computing its chargeable profits (within the meaning of section 19 of the CTA) the whole of any share of interest payable in respect of that advance that falls to it by reason of Part 17 of the CTA; or

		
	(c)
	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a permanent establishment and which brings into account interest payable in respect of that advance in computing the chargeable profits (within the meaning of section 19 of the CTA) of that company.]

		
	9.
	[The New Lender confirms that it holds a passport under the HMRC DT Treaty Passport scheme (reference number [    ]) and is tax resident in [        ], so that interest payable to it by borrowers is generally subject to full exemption from UK withholding tax, and requests that the Original Borrower notify each Obligor that it wishes that scheme to apply to this Agreement.].

[9/10].    This Assignment Agreement acts as notice to the Agent (on behalf of each Finance Party) and, upon delivery in accordance with Clause 26.7‎ (Copy of Transfer Certificate or Assignment Agreement to Borrower), to the Borrower (on behalf of each Obligor) of the assignment referred to in this Assignment Agreement.
[10/11].    This Assignment Agreement may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Assignment Agreement.
[11/12]    This Assignment Agreement [and any non-contractual obligations arising out of or in connection with it] [is/are] governed by English law.
[12/13]    This Assignment Agreement has been entered into on the date stated at the beginning of this Assignment Agreement.

Page 223

THE SCHEDULE
Rights to be assigned and obligations to be released and undertaken
[insert relevant details]
[Facility office address, fax number and attention details for notices and account details for payments]
	
		
	[Existing Lender]
	[New Lender]

	By:
	By:

This Assignment Agreement is accepted by the Agent and the Transfer Date is confirmed as [      ].
Signature of this Assignment Agreement by the Agent constitutes confirmation by the Agent of receipt of notice of the assignment referred to herein, which notice the Agent receives on behalf of each Finance Party.
[Agent]
By:
Note: The execution of this Assignment Agreement may not transfer a proportionate share of the Existing Lender’s interest in the Security in all jurisdictions.  It is the responsibility of the New Lender to ascertain whether any other documents or other formalities are required to perfect a transfer of such a share in the Existing Lender’s Security in any jurisdiction and, if so, to arrange for execution of those documents and completion of those formalities.

Page 224

 
Schedule 7
FORM OF ORIGINAL OBLIGOR ACCESSION DEED

To:    [●] as Agent and [●] as Security Agent for itself and each of the other parties to the Intercreditor Agreement referred to below
From:    [Original Obligor] and [Indemnitor]
Dated:
Dear Sirs
[Original Borrower] – [●] Senior Facilities Agreement dated [●] (the Facilities Agreement)
1.We refer to the Facilities Agreement[ and to the Intercreditor Agreement].  This deed (the Accession Deed) shall take effect as an Accession Deed for the purposes of the Facilities Agreement[ and as a Debtor Accession Deed for the purposes of the Intercreditor Agreement (and as defined in the Intercreditor Agreement)].  Terms defined in the Facilities Agreement have the same meaning in paragraphs 1-[3]/[4] of this Accession Deed unless given a different meaning in this Accession Deed.
2.    [Original Obligor] agrees to become an Original [Borrower]/[Guarantor] and to be bound by the terms of the Facilities Agreement and the other Finance Documents [(other than the Intercreditor Agreement)] as an Original [Borrower]/[Guarantor] pursuant to Clause 27.2 (Original Obligors) of the Facilities Agreement.  [Original Obligor] is a company duly incorporated under the laws of [name of relevant jurisdiction] and is a limited liability company and registered number [●].
3.    [The Indemnitor confirms that no Default is continuing or would occur as a result of [Original Obligor] becoming an Original Borrower].
4.    [Original Obligor’s] administrative details for the purposes of the Facilities Agreement[ and the Intercreditor Agreement] are as follows:
Address:
Fax No.:
Attention:
5.    [Original Obligor] (for the purposes of this paragraph [4]/[5] the Original Debtor) intends to [incur Liabilities under the following documents]/[give a guarantee, indemnity or other assurance against loss in respect of Liabilities under the following documents]:
[Insert details (date, parties and description) of relevant documents]
the Relevant Documents.

_________
3 Include in the case of an Original Borrower.

Page 225

Schedule 8
FORM OF ACCESSION DEED
To:    [●] as Agent and [●] as Security Agent for itself and each of the other parties to the [Facilities Agreement][Intercreditor Agreement] referred to below
From:    [Subsidiary] and [Borrower]
Dated:
Dear Sirs
[Original Borrower] – [●] Senior Facilities Agreement dated [●] (the Facilities Agreement)
1.    We refer to the Facilities Agreement[ and to the Intercreditor Agreement].  This deed (the Accession Deed) shall take effect as an Accession Deed for the purposes of the Facilities Agreement[ and as a Debtor Accession Deed for the purposes of the Intercreditor Agreement (and as defined in the Intercreditor Agreement)].  Terms defined in the Facilities Agreement have the same meaning in paragraphs 1-[3]/[4] of this Accession Deed unless given a different meaning in this Accession Deed.
2.    [Subsidiary] agrees to become an Additional [Borrower]/[Guarantor] and to be bound by the terms of the Facilities Agreement and the other Finance Documents (other than the Intercreditor Agreement) as an Additional [Borrower]/[Guarantor] pursuant to [Clause 27.3 (Additional Borrowers)]/[Clause 27.5 (Additional Guarantors)] of the Facilities Agreement.  [● ]/[Subsidiary] is a company duly incorporated under the laws of [name of relevant jurisdiction] and is a limited liability company and registered number [●].
3.    [The Indemnitor confirms that no Default is continuing or would occur as a result of [●] becoming an Additional Borrower].
4.    [●]/[Subsidiary’s] administrative details for the purposes of the Facilities Agreement[ and the Intercreditor Agreement] are as follows:
Address:
Fax No.:
Attention:
5.    [●]/ [Subsidiary] (for the purposes of this paragraph [4]/[5] the Acceding Debtor) intends to [incur Liabilities under the following documents]/[give a guarantee, indemnity or other assurance against loss in respect of Liabilities under the following documents]:
[Insert details (date, parties and description) of relevant documents]
the Relevant Documents.

_________
4 Include in the case of an Additional Borrower.

Page 226

Schedule 9
FORM OF RESIGNATION LETTER
To:    [      ] as Agent
From:    [resigning Guarantor] and [Borrower]
Dated:
Dear Sirs
[Borrower] – [       ] Facility Agreement dated [       ] (the Agreement)
		
	1.
	We refer to the Agreement.  This is a Resignation Letter.  Terms defined in the Agreement have the same meaning in this Resignation Letter unless given a different meaning in this Resignation Letter.

		
	2.
	Pursuant to [Clause 27.2‎ (Resignation of a Guarantor), we request that [resigning Guarantor] be released from its obligations as a Guarantor under the Agreement.

		
	3.
	We confirm that:

		
	(a)
	no Default is continuing or would result from the acceptance of this request; and

		
	(b)
	[                     ]

		
	4.
	This Resignation Letter [and any non-contractual obligations arising out of or in connection with it] [is/are] governed by English law.

	
		
	[Borrower]
	[Guarantor]

	By:
	By:

Page 227

 
Schedule 10
FORM OF COMPLIANCE CERTIFICATE
To:      [      ] as Agent
From:    [Borrower]
Dated:
Dear Sirs
[Borrower] – [         ] Facility Agreement dated [           ] (the Agreement)
		
	1.
	We refer to the Agreement.  This is a Compliance Certificate.  Terms defined in the Agreement have the same meaning when used in this Compliance Certificate unless given a different meaning in this Compliance Certificate.

		
	2.
	We confirm that:

		
	(a)
	Loan to Value is [      ] per cent.;

		
	(b)
	DSCR is [    ] :1; and

		
	(c)
	Rental Cover Ratio is [ ]:1.

		
	3.
	We set out below calculations establishing the figures in paragraph 2:

[      ].
		
	4.
	[We confirm that no Default is continuing.]

	
		
	Signed   ...............
 
   Director
 
   of
 
   [Borrower]
	...............
 
Director
 
of
 
[Borrower]

[insert applicable certification language
..................... 
for and on behalf of 
[name of auditors of the Borrower]

Page 228

 
Schedule 11
FORMS OF NOTIFIABLE DEBT PURCHASE TRANSACTION NOTICE

		
	Part A
	Form of Notice on Entering into Notifiable Debt Purchase Transaction

To:    [●] as Agent
From:    [The Lender]
Dated:
[Parent] – [●] Senior Facilities Agreement dated [●] (the Facilities Agreement)
		
	1.
	We refer to paragraph 28(c) of Clause 28 (Disenfranchisement on Debt Purchase Transactions entered into by Sponsor Affiliates) of the Facilities Agreement.  Terms defined in the Facilities Agreement have the same meaning in this notice unless given a different meaning in this notice.

		
	2.
	We have entered into a Notifiable Debt Purchase Transaction.

		
	3.
	The Notifiable Debt Purchase Transaction referred to in paragraph 2 above relates to the amount of our Commitment(s) as set out below.

	
		
	Commitment
	Amount of our Commitment to which Notifiable Debt Purchase Transaction relates (Base Currency)

	Commitment
	[insert amount (of that Commitment) to which the relevant Debt Purchase Transaction applies]

	 
	 

	 
	 

[Lender]
By:

Page 229

		
	Part B
	Form of Notice on Termination of Notifiable Debt Purchase Transaction/Notifiable Debt Purchase Transaction ceasing to be with Sponsor Affiliate

To:    [●] as Agent
From:    [The Lender]
Dated:
[Parent] – [●] Senior Facilities Agreement dated [●] (the Facilities Agreement)
		
	1.
	We refer to paragraph 28(c) of Clause 28 (Disenfranchisement on Debt Purchase Transactions entered into by Sponsor Affiliates) of the Facilities Agreement.  Terms defined in the Facilities Agreement have the same meaning in this notice unless given a different meaning in this notice.

		
	2.
	A Notifiable Debt Purchase Transaction which we entered into and which we notified you of in a notice dated [ ] has [terminated]/[ceased to be with a Sponsor Affiliate]. *

		
	3.
	The Notifiable Debt Purchase Transaction referred to in paragraph 2 above relates to the amount of our Commitment(s) as set out below.

	
		
	Commitment
	Amount of our Commitment to which Notifiable Debt Purchase Transaction relates (Base Currency)

	Commitment
	[insert amount (of that Commitment) to which the relevant Debt Purchase Transaction applies]

	 
	 

	 
	 

[Lender]
By:

_________
5  Delete as applicable. 

Page 230

Schedule 12
TIMETABLES
	
							
	Delivery of a duly completed Utilisation Request (Clause 6.1 (Delivery of a Utilisation Request)
	 
	Quotation Day 09:30 a.m.
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 

	LIBOR is fixed
	 
	Quotation Day 10:30 a.m.
	 
	 
	 
	 

            

Page 231

Schedule 13
EXCLUDED TRANSFEREES
		
	1.
	American Healthcare Investors LLC (and its Affiliates)

		
	2.
	Griffin Capital Corporation (and its Affiliates)

Page 232

Schedule 14
AGREED SECURITY PRINCIPLES
		
	(A)
	Scope of Transaction Security

The Transaction Security will consist of the following:
		
	(i)
	first ranking mortgages over each Property (other than any Property located in Scotland);

		
	(ii)
	first ranking security over the shares of the Obligors provided that in any event first ranking security shall be provided over the shares of Obligor which owns any Properties;

		
	(iii)
	first ranking Scots law standard securities over each Property located in Scotland;

		
	(iv)
	Scots law assignations in security of rent derived from each Property located in Scotland;

		
	(v)
	first ranking assignment of rights under the Lease Documents (if permitted under the terms and subject to paragraph 1(b)(iii) above);

		
	(vi)
	first ranking security over each Account; 

(vii)    first ranking assignment of rights under the Insurances; and
 (ix)    first ranking assignment of rights under the Third Party Credit Support.
In relation to any share security, the relevant surety shall be permitted to exercise voting rights in relation to the shares prior to an Acceleration Event (as defined below), however in a manner that would not be prejudicial to the validity of the security created by the share security or the value of the shares secured.  Each surety shall be entitled to retain all dividends and distributions (if made in compliance with the Finance Documents) made prior to an Acceleration Event (as defined below).
		
	(B)
	Considerations

In determining what Security will be provided in support of the Facility  the following matters will be taken into account.  Security shall not be created or perfected to the extent that it would:
		
	(a)
	result in any breach of corporate benefit, financial assistance, fraudulent preference or thin capitalisation laws or regulations (or analogous restrictions) of any applicable jurisdiction;

		
	(b)
	result in a significant risk to the officers of the relevant grantor of Security of contravention of their fiduciary duties and/or of civil or criminal liability; or

Page 233

		
	(c)
	result in costs that, in the opinion of the Agent (acting on the instructions of the Majority Lenders), are disproportionate to the benefit to be obtained by the beneficiaries of that Security.

For the avoidance of doubt, in these Agreed Security Principles, cost includes, but is not limited to, income tax cost, registration taxes payable on the creation or enforcement or for the continuance of any Security, stamp duties, out-of-pocket expenses, and other fees and expenses directly incurred by the relevant grantor of Security or any of its direct or indirect owners, subsidiaries or Affiliates.
		
	(C)
	Obligations to be Secured

		
	1.
	Subject to (B) (Considerations) and to paragraph 2 below, the obligations to be secured are the Secured Liabilities.  The Security is to be granted in favour of the Security Agent on behalf of each Lender from time to time, and the Agent and the Arrangers.

		
	2.
	The Secured Liabilities will be limited in accordance with applicable market practice:

		
	2.1
	to avoid any breach of corporate benefit, financial assistance, fraudulent preference, thin capitalisation rules or the laws or regulations (or analogous restrictions) of any applicable jurisdiction; and

		
	2.2
	to avoid any risk to officers of the relevant member of the Group that is granting Transaction Security of contravention of their fiduciary duties and/or civil or criminal or personal liability.

		
	(D)
	General

Where appropriate, defined terms in the Security Documents should mirror those in this Agreement.  The parties to this Agreement agree to negotiate the form of each Security Document in good faith.  
The Security shall, to the extent possible under local law, be enforceable on the occurrence of an Event of Default in respect of which notice has been served to the Borrower in accordance with Clause 24.19 (Acceleration) (an Acceleration Event).
		
	(E)
	Perfection of Security

If required by local law to perfect the Security and if possible without disrupting operation of any accounts (in respect of Security over Accounts) or existing commercial relationships, notice of the Security will be served on the relevant account bank (or counterparty or insurance provider, as applicable) within five Business Days of the Security being granted and the relevant Guarantor shall use its reasonable endeavours to obtain an acknowledgement of that notice within 20 Business Days of service.  If the Guarantor has used its reasonable endeavours but has not been able to obtain acknowledgement its obligation to obtain acknowledgement shall cease on the expiry of that 20 Business Day period.

Page 234

		
	(F)
	Other terms of Security Documents

		
	(a)
	Representations and undertakings shall only be included in each Security Document to the extent necessary under local law to confirm any registration or perfection of the Security and shall not be repeated.

		
	(b)
	The provisions of each Security Document will not be unduly burdensome on the Guarantor or interfere unreasonably with the operation of its business or have a material adverse effect on the commercial reputation of the Guarantor and will be limited to those required to create effective Security and not impose additional commercial obligations.  Disposals of assets and the existence and creation of Security over assets will be permitted to the extent permitted under this Agreement.  The Security Agent shall release any guarantees or Security in the event that such release is required to permit a disposal which is permitted under this Agreement or to which the Majority Lenders have consented in accordance with this Agreement.

		
	(c)
	Information, such as lists of assets, will be provided if and, only to the extent, required by local law to be provided to perfect or register the security and, that this information can be provided without breaching confidentiality requirements or damaging business relationships or commercial reputation and, unless required to be provided by local law more frequently, will be provided annually.

		
	(d)
	The Lenders shall only be able to exercise a power of attorney following the occurrence of an Acceleration Event or if the relevant Guarantor has failed to comply with a further assurance or perfection obligation within 10 Business Days of being notified of that failure (with a copy of that notice being sent to the Borrower) and being requested to comply.

		
	(e)
	Subject to the other provisions of these Agreed Security Principles, security will where possible and practical automatically create Security over future assets of the same type as those already secured.

		
	(f)
	In the Security Documents there will be no repetition or extension of clauses set out in this Agreement such as those relating to notices, cost and expenses, indemnities, tax gross up, distribution of proceeds and release of Security other than if expressly required by local law to perfect the security or make it enforceable or to facilitate the admissibility of a Security Document in court.

		
	(g)
	Nothing in this Part F shall prohibit any provision of any new Security Document which is equivalent to, or on substantially the same terms as, any term of any existing Security Document.

Page 235

SIGNATURES PAGES TO FACILITY AGREEMENT

THE AGENT
ELAVON FINANCIAL SERVICES LIMITED
By: _/s/ Nancy Sun_Nancy Sun, Authorised Signatory     /s/ Christopher Eastlake   
Christopher Eastlake
Authorised Signatory
Address: 125 Old Broad Street, London, EC2N 1AR
Fax: +44 20 7365 2577
Attention: Loan Agency (loan.agency.london@usbank.com)

THE SECURITY AGENT
U.S. BANK TRUSTEES LIMITED
By: _/s/ Nancy Sun_Nancy Sun, Authorised Signatory     /s/ Christopher Eastlake   
Christopher Eastlake
Authorised Signatory
Address: 125 Old Broad Street, London, EC2N 1AR
Fax:  +44 20 7365 2577
Attention: Loan Agency (loan.agency.london@usbank.com) 

SIGNATURES PAGES TO FACILITY AGREEMENT

THE ARRANGER
CREDIT SUISSE SECURITIES (EUROPE) LIMITED
By: __/s/ Arun Sharma_____     Arun Sharma        /s/ Masashi Washida
Director        Masashi Washida
Fixed Income        Director
Address: One Cabot Square, London, E14 4QJ
Fax: +44 20 7888 4342
Attention: rohit.srivastava@credit-suisse.com
   masashi.washida@credit-suisse.com
THE ORIGINAL LENDER
CREDIT SUISSE AG, LONDON BRANCH
By: __/s/ Arun Sharma_____     Arun Sharma        /s/ Masashi Washida
Director        Masashi Washida
Fixed Income        Director
Address: One Cabot Square, London, E14 4QJ
Fax: +44 20 7888 4342
Attention: rohit.srivastava@credit-suisse.com
   masashi.washida@credit-suisse.com

SIGNATURES PAGES TO FACILITY AGREEMENT

THE INDEMNITOR
NORTHSTAR REALTY HEALTHCARE, LLC
By: ___/s/ Jon Farkas________________
Address:  399 Park Ave, 18th Floor, NY, NY 10022
Fax:  212-547-2700
Attention:  General Counsel

SIGNATURES PAGES TO FACILITY AGREEMENTEx. 10.3    BUSMezz ALoanAgree

    

Exhibit 10.3
Loan No: 7873    
________________________________________________________
MEZZANINE A LOAN AGREEMENT
________________________________________________________
Dated as of December 3, 2014
Between
EACH OF THE ENTITIES LISTED ON SCHEDULE I ATTACHED HERETO, 
individually and/or collectively, as the context may require, as Borrower
and
CITIGROUP GLOBAL MARKETS REALTY CORP.,
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,
BARCLAYS BANK PLC and
COLUMN FINANCIAL, INC., 
collectively, as Lender

TABLE OF CONTENTS
Page

	
			
	ARTICLE 1.
	DEFINITIONS; PRINCIPLES OF CONSTRUCTION
	2

	Section 1.1.
	Definitions
	2

	Section 1.2.
	Principles of Construction
	40

	ARTICLE 2.
	GENERAL TERMS
	41

	Section 2.1.
	Loan Commitment; Disbursement to Borrower
	41

	Section 2.2.
	The Loan
	41

	Section 2.3.
	Disbursement to Borrower
	41

	Section 2.4.
	The Note and the Other Loan Documents
	41

	Section 2.5.
	Interest Rate
	41

	Section 2.6.
	Loan Payments
	45

	Section 2.7.
	Prepayments
	46

	Section 2.8.
	Interest Rate Cap Agreement
	49

	Section 2.9.
	Extension of the Floating Rate Component Maturity Date
	51

	Section 2.10.
	Release of Individual Property and Collateral
	52

	Section 2.11.
	Intentionally Omitted
	55

	Section 2.12.
	Defeasance
	55

	Section 2.13.
	Withholding and Indemnified Taxes
	61

	ARTICLE 3.
	REPRESENTATIONS AND WARRANTIES
	65

	Section 3.1.
	Legal Status and Authority
	65

	Section 3.2.
	Validity of Documents
	65

	Section 3.3.
	Litigation
	65

	Section 3.4.
	Agreements
	66

	Section 3.5.
	Financial Condition
	66

	Section 3.6.
	Disclosure
	66

	Section 3.7.
	No Plan Assets
	66

	Section 3.8.
	Not a Foreign Person
	67

	Section 3.9.
	Warranty of Title
	67

	Section 3.10.
	Business Purposes
	67

	Section 3.11.
	Borrower’s Principal Place of Business
	67

	Section 3.12.
	Status of Property
	67

	Section 3.13.
	Financial Information
	69

	Section 3.14.
	Condemnation
	69

	Section 3.15.
	Separate Lots
	69

	Section 3.16.
	Insurance
	70

	Section 3.17.
	Use of Property
	70

	Section 3.18.
	Leases and Rent Roll
	70

	Section 3.19.
	Filing and Recording Taxes
	71

	Section 3.20.
	Management Agreement
	71

	Section 3.21.
	Illegal Activity/Forfeiture
	71

	Section 3.22.
	Taxes
	71

	Section 3.23.
	Permitted Encumbrances
	72

	Section 3.24.
	Third Party Representations
	72

	Section 3.25.
	Non-Consolidation Opinion Assumptions
	72

	Section 3.26.
	Federal Reserve Regulations
	72

	Section 3.27.
	Investment Company Act
	72

	Section 3.28.
	Fraudulent Conveyance
	72

    
i

TABLE OF CONTENTS
(continued)
Page

	
			
	Section 3.29.
	Embargoed Person
	73

	Section 3.30.
	Intentionally Omitted
	73

	Section 3.31.
	Organizational Chart
	73

	Section 3.32.
	Bank Holding Company
	73

	Section 3.33.
	Purchase Options
	73

	Section 3.34.
	Property Document Representations
	73

	Section 3.35.
	No Change in Facts or Circumstances; Disclosure
	74

	Section 3.36.
	Operating Lease Representations
	74

	Section 3.37.
	Ground Lease Representations
	74

	Section 3.38.
	Health Care Representations
	75

	Section 3.39.
	Contractual Obligations
	78

	Section 3.40.
	Mortgage Loan Representations and Warranties
	78

	Section 3.41.
	Affiliates
	78

	Section 3.42.
	Additional Representations
	78

	Section 3.43.
	Master Lease and Sublease Representations
	79

	Section 3.44.
	Affiliates
	79

	ARTICLE 4.
	BORROWER COVENANTS
	79

	Section 4.1.
	Existence
	79

	Section 4.2.
	Legal Requirements
	80

	Section 4.3.
	Maintenance and Use of Property
	81

	Section 4.4.
	Waste
	82

	Section 4.5.
	Taxes and Other Charges
	82

	Section 4.6.
	Litigation
	84

	Section 4.7.
	Access to Property
	84

	Section 4.8.
	Notice of Default
	84

	Section 4.9.
	Cooperate in Legal Proceedings
	84

	Section 4.10.
	Performance by Borrower
	84

	Section 4.11.
	Awards
	84

	Section 4.12.
	Books and Records
	84

	Section 4.13.
	Estoppel Certificates
	87

	Section 4.14.
	Leases and Rents
	87

	Section 4.15.
	Management Agreement
	88

	Section 4.16.
	Payment for Labor and Materials
	91

	Section 4.17.
	Performance of Other Agreements
	92

	Section 4.18.
	Debt Cancellation
	92

	Section 4.19.
	ERISA
	92

	Section 4.20.
	No Joint Assessment
	93

	Section 4.21.
	Alterations
	93

	Section 4.22.
	Property Document Covenants
	94

	Section 4.23.
	Ground Lease Covenants
	95

	Section 4.24.
	Operating Lease Covenants
	96

	Section 4.25.
	Health Care Covenants
	99

	Section 4.26.
	Master Tenant and Subtenant Indebtedness
	102

	Section 4.27.
	Affiliates
	102

	Section 4.28.
	Material Agreements and Affiliate Agreements
	102

	Section 4.29.
	Limitation on Securities Issuances
	102

    
ii

TABLE OF CONTENTS
(continued)
Page

	
			
	Section 4.30.
	Mortgage Borrower Covenants
	102

	Section 4.31.
	Curing
	102

	Section 4.32.
	Special Distributions
	103

	Section 4.33.
	Embargoed Person
	103

	ARTICLE 5.
	ENTITY COVENANTS
	103

	Section 5.1.
	Single Purpose Entity/Separateness
	103

	Section 5.2.
	Independent Director
	109

	Section 5.3.
	Change of Name, Identity or Structure
	110

	Section 5.4.
	Business and Operations
	110

	ARTICLE 6.
	NO SALE OR ENCUMBRANCE
	110

	Section 6.1.
	Transfer Definitions
	110

	Section 6.2.
	No Sale/Encumbrance
	111

	Section 6.3.
	Permitted Equity Transfers
	112

	Section 6.4.
	Permitted Property Transfer (Assumption)
	116

	Section 6.5.
	Lender’s Rights
	119

	Section 6.6.
	Economic Sanctions, Anti-Money Laundering and Transfers
	119

	ARTICLE 7.
	INSURANCE; CASUALTY; CONDEMNATION; RESTORATION
	119

	Section 7.1.
	Insurance
	119

	Section 7.2.
	Casualty
	120

	Section 7.3.
	Condemnation
	120

	Section 7.4.
	Restoration
	121

	Section 7.5.
	Securitization Provision
	121

	ARTICLE 8.
	RESERVE FUNDS
	121

	Section 8.1.
	Reserve Funds
	121

	Section 8.2.
	Reserve Funds Upon Payment In Full
	123

	Section 8.3.
	The Accounts Generally
	123

	Section 8.4.
	Letters of Credit
	125

	Section 8.5.
	Interest Rate Cap Funds
	126

	ARTICLE 9.
	CASH MANAGEMENT
	127

	Section 9.1.
	Establishment of Certain Accounts
	127

	ARTICLE 10.
	EVENTS OF DEFAULT; REMEDIES
	128

	Section 10.1.
	Event of Default
	128

	Section 10.2.
	Remedies
	133

	ARTICLE 11.
	SECONDARY MARKET
	136

	Section 11.1.
	Securitization
	136

	Section 11.2.
	Disclosure
	139

	Section 11.3.
	Reserves/Escrows
	143

	Section 11.4.
	Servicer
	143

	Section 11.5.
	Rating Agency Costs
	144

	Section 11.6.
	Mezzanine Option
	144

	Section 11.7.
	Conversion to Registered Form
	144

	Section 11.8.
	Syndication
	145

	Section 11.9.
	Intentionally Omitted
	149

	Section 11.10.
	Intercreditor Agreement
	149

	ARTICLE 12.
	INDEMNIFICATIONS
	149

    
iii

TABLE OF CONTENTS
(continued)
Page

	
			
	Section 12.1.
	General Indemnification
	149

	Section 12.2.
	Mortgage and Intangible Tax Indemnification
	150

	Section 12.3.
	ERISA Indemnification
	150

	Section 12.4.
	Duty to Defend, Legal Fees and Other Fees and Expenses
	150

	Section 12.5.
	Survival
	150

	Section 12.6.
	Environmental Indemnity
	151

	ARTICLE 13.
	EXCULPATION
	151

	Section 13.1.
	Exculpation
	151

	ARTICLE 14.
	NOTICES
	154

	Section 14.1.
	Notices
	154

	ARTICLE 15.
	FURTHER ASSURANCES
	156

	Section 15.1.
	Replacement Documents
	156

	Section 15.2.
	Execution of Pledge Agreement
	156

	Section 15.3.
	Further Acts, etc
	156

	Section 15.4.
	Changes in Tax, Debt, Credit and Documentary Stamp Laws
	157

	ARTICLE 16.
	WAIVERS
	157

	Section 16.1.
	Remedies Cumulative; Waivers
	157

	Section 16.2.
	Modification, Waiver in Writing
	158

	Section 16.3.
	Delay Not a Waiver
	158

	Section 16.4.
	Waiver of Trial by Jury
	158

	Section 16.5.
	Waiver of Notice
	158

	Section 16.6.
	Remedies of Borrower
	158

	Section 16.7.
	Marshalling and Other Matters
	159

	Section 16.8.
	Waiver of Statute of Limitations
	159

	Section 16.9.
	Waiver of Counterclaim
	159

	Section 16.10.
	Sole Discretion of Lender
	159

	ARTICLE 17.
	MISCELLANEOUS
	159

	Section 17.1.
	Survival
	159

	Section 17.2.
	Governing Law
	160

	Section 17.3.
	Headings
	161

	Section 17.4.
	Severability
	161

	Section 17.5.
	Preferences
	161

	Section 17.6.
	Expenses
	161

	Section 17.7.
	Cost of Enforcement
	163

	Section 17.8.
	Schedules Incorporated
	163

	Section 17.9.
	Offsets, Counterclaims and Defenses
	163

	Section 17.10.
	No Joint Venture or Partnership; No Third Party Beneficiaries
	163

	Section 17.11.
	Publicity
	164

	Section 17.12.
	Limitation of Liability
	165

	Section 17.13.
	Conflict; Construction of Documents; Reliance
	165

	Section 17.14.
	Entire Agreement
	165

	Section 17.15.
	Liability
	165

	Section 17.16.
	Duplicate Originals; Counterparts
	165

	Section 17.17.
	Brokers
	166

	Section 17.18.
	Set-Off
	166

	Section 17.19.
	Contributions and Waivers
	167

    
iv

TABLE OF CONTENTS
(continued)
Page

	
			
	Section 17.20.
	Cross-Default; Cross-Collateralization
	169

	Section 17.21.
	Waiver of Rights, Defenses and Claims
	170

	Section 17.22.
	Borrower Affiliate Lender
	170

	Section 17.23.
	Additional Provisions
	170

	Section 17.24.
	Further Additional Provisions
	172

    
    

    
v

MEZZANINE A LOAN AGREEMENT
THIS MEZZANINE A LOAN AGREEMENT, dated as of December 3, 2014 (as amended, restated, replaced, supplemented or otherwise modified from time to time, this “Agreement”), among CITIGROUP GLOBAL MARKETS REALTY CORP., having an address at 390 Greenwich Street, 7th Floor, New York, New York 10013 (together with its successors and/or assigns, “Citi”), JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, having an address at 383 Madison Avenue, New York, New York 10179 (together with its successors and/or assigns, “JPMorgan”), BARCLAYS BANK PLC, having an address at 745 Seventh Avenue, New York, New York 10019 (“Barclays”) and COLUMN FINANCIAL, INC., having an address at 11 Madison Avenue, New York, New York 10010 (“CF”; together with Citi, JPMorgan, Barclays and each of their respective successors and/or assigns, collectively, “Lender”)  and EACH OF THE ENTITIES LISTED ON SCHEDULE I ATTACHED HERETO, each having its principal place of business at c/o NorthStar Realty Finance Corp., 399 Park Avenue, 18th Floor, New York, New York 10022 (individually and/or collectively, as the context may require, together with their respective successors and/or assigns, “Borrower”).
RECITALS:
Citi, JP Morgan, Barclays and CF, collectively, in their capacity as a mortgage lender (together with each of their respective successors and assigns, each in their capacity as a mortgage lender, collectively, “Mortgage Lender”), are making a certain mortgage loan in the original principal amount of $1,878,000,000 (the “Mortgage Loan”) to each of the Persons listed on Schedule II hereto (individually and/or collectively, as the context may require, “Mortgage Borrower”) pursuant to that certain Loan Agreement, dated as of the date hereof, by and among Mortgage Borrower and Mortgage Lender (as amended, supplemented or otherwise modified from time to time, the “Mortgage Loan Agreement”).
Borrower is the legal and beneficial owner of all of the direct or indirect interests in each Mortgage Borrower.  
Borrower desires to obtain the Loan (defined below) from Lender.
As a condition precedent to the obligation of Lender to make the Loan to Borrower, Borrower has entered into that certain Pledge and Security Agreement (Mezzanine A Loan) dated as of the date hereof, in favor of Lender (as amended, supplemented or otherwise modified from time to time, the “Pledge Agreement”), pursuant to which Borrower has granted to Lender a first priority security interest in the Collateral (as hereinafter defined) as collateral security for the Debt (as hereinafter defined).
Lender is willing to make the Loan to Borrower, subject to and in accordance with the terms of this Agreement and the other Loan Documents (defined below).
In consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, the parties hereto hereby covenant, agree, represent and warrant as follows:

ARTICLE 1. 
 
DEFINITIONS; PRINCIPLES OF CONSTRUCTION
Section 1.1.    Definitions.
For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent:
“Acceptable LLC” shall mean a limited liability company formed under Delaware law which has at least one springing member, which, upon the dissolution of all of the members or the withdrawal or the disassociation of all of the members from such limited liability company, shall immediately become the sole member of such limited liability company.
“Account Collateral” shall mean (i) the Accounts, and all cash, checks, drafts, certificates and instruments, if any, deposited or held in the Accounts from time to time; (ii) any and all amounts in the Accounts invested in Permitted Investments; (iii) all interest, dividends, cash, instruments and other property from time to time received, receivable or otherwise payable in respect of, or in exchange for, any or all of the foregoing; and (iv) to the extent not covered by clauses (i) - (iii) above, all “proceeds” (as defined under the UCC as in effect in the State in which the Accounts are located) of any or all of the foregoing.
“Accounts” shall mean any account established by this Agreement or the other Loan Documents.  The “Accounts” (as defined in the Mortgage Loan Agreement) are not Accounts as of the date hereof.
“Act” shall have the meaning set forth in Section 5.1 hereof.
“Adjusted LIBOR Rate” shall mean, with respect to the applicable Interest Accrual Period, the quotient of (i) LIBOR applicable to such Interest Accrual Period, divided by (ii) one (1) minus the Reserve Percentage:
Adjusted LIBOR Rate     =        LIBOR___       _
(1 – Reserve Percentage)
“Affiliate” shall mean, as to any Person, any other Person that (a) directly or indirectly, is in Control of, is Controlled by or is under common Control with such Person and/or (b) is a director or officer of such Person or of an Affiliate of such Person.
“Affiliate Agreement” shall mean each contract and agreement relating to the ownership, management, development, use, operation, leasing, maintenance, repair or improvements of the Properties or any Individual Property, including Management Agreements and Sub-Management Agreements, if the other party to the contract or agreement is an Affiliate of Mortgage Borrower or Guarantor.

    
-2-

“Affiliated Manager” shall mean any managing agent of any Individual Property that is an Affiliate of Borrower, Mortgage Borrower, Guarantor, Sponsor or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement).
“Agent” shall have the meaning set forth in Section 11.8(a)(iv) hereof.
“Allocated Loan Amount” shall mean the portion of the principal amount of the Loan allocated to the applicable portion of the equity Collateral associated with any applicable Individual Property as set forth on Schedule V hereof, as such amounts may be adjusted from time to time as hereinafter set forth.
“Alteration Threshold” shall mean (i) with respect to each Individual Property, an amount equal to the greater of (A) 10% of the outstanding principal amount of the Allocated Loan Amount (as defined in the Mortgage Loan Agreement) attributable to such Individual Property and (B) $500,000 and (ii) with respect to the Properties in the aggregate, an amount equal to $50,000,000.
“Applicable Contribution” shall have the meaning set forth in Section 17.19 hereof.
“Approved Accounting Method” shall mean GAAP, federal tax basis accounting (consistently applied) or such other method of accounting, consistently applied, as may be reasonably acceptable to Lender.
“Approved Annual Budget” shall have the meaning set forth in Section 4.12 hereof.
“Approved Bank” means (a) a bank or other financial institution which has the Required Rating, (b) if a Securitization has not occurred, a bank or other financial institution reasonably acceptable to Lender or (c) if a Securitization has occurred, a bank or other financial institution with respect to which Lender shall have received a Rating Agency Confirmation.
“Approved ID Provider” shall mean each of CT Corporation, Corporation Service Company, National Registered Agents, Inc., Wilmington Trust Company, Stewart Management Company and Lord Securities Corporation; provided, that, (A) the foregoing shall only be deemed Approved ID Providers unless and until disapproved by the Rating Agencies and (B) additional national providers of Independent Directors may be deemed added to the foregoing hereunder to the extent reasonably approved in writing by Lender and approved by the Rating Agencies.
“Assignment and Assumption” shall have the meaning set forth in Section 11.8(a)(i) hereof.
“Assisted Living Facility” shall mean a residential facility (including an “assisted living” or “independent living” facility but excluding a Skilled Nursing Facility) that provides services which may include supervision or assistance with activities of daily living, coordination of services by health care providers and monitoring of resident activities to help ensure health, safety and well-being.
“Available Beds” shall mean, with respect to any Non-MOB Facility, the number of resident beds the Non-MOB Facility is actually operating from time to time, regardless of whether such bed is occupied as of the Closing Date.

    
-3-

“Award” shall mean any compensation paid by any Governmental Authority in connection with a Condemnation in respect of all or any part of any Individual Property.
“Bank” shall be deemed to refer to the bank or other institution maintaining the Restricted Account pursuant to the Restricted Account Agreement.
“Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or creditors’ rights.
“Bankruptcy Event” shall mean the occurrence of any one or more of the following:  (i) Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement) shall commence any case, proceeding or other action (A) under the Bankruptcy Code and/or any Creditors Rights Laws seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, liquidation or dissolution or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets unless required to do so by Lender; (ii) Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement) shall make a general assignment or other similar assignment for the benefit of its creditors; (iii) any Restricted Party or Affiliated Manager (or any Affiliate of any of them, or any direct or indirect owner of any of them other than passive, minority owners not acting at the direction of any Restricted Party or any Affiliate thereof) files, or joins or colludes in the filing of, (A) an involuntary petition against Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement) under the Bankruptcy Code or any other Creditors Rights Laws, or solicits or causes to be solicited or colludes with petitioning creditors for any involuntary petition under the Bankruptcy Code or any other Creditors Rights Laws against Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement) or (B) any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of Borrower’s, Mortgage Borrower’s or any SPE Component Entity’s (as defined herein or in the Mortgage Loan Agreement) assets; (iv) Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement) files an answer consenting to or otherwise acquiescing in or joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code or any other Creditors Rights Laws, or solicits or causes to be solicited or colludes with petitioning creditors for any involuntary petition from any Person; (v) any Restricted Party or Affiliated Manager (or any Affiliate of any of them, or any direct or indirect owner of any of them other than passive, minority owners not acting at the direction of any Restricted Party or any Affiliate thereof) consents to or acquiesces in or joins in an application for the appointment of a custodian, receiver, trustee, or examiner for Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement) or any portion of any Collateral or any Individual Property unless required to do so by Lender; and (vi) Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement) admits, in writing or in any legal proceeding, its insolvency or inability to pay its debts as they become due; provided, that, Borrower shall have no liability under this clause (vi) pursuant to Section 13.1(b)(i) hereof in 

    
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connection with the delivery of a financial statement or any other filing required to be delivered pursuant to a subpoena or any order entered in a bankruptcy proceeding or required under applicable Legal Requirements (other than in connection with such application made by any Person which is an Affiliate of Borrower, Mortgage Borrower and/or any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement)).
“Barclays” shall have the meaning set forth in the preamble hereof.
“Benefit Amount” shall have the meaning set forth in Section 17.19 hereof.
“Borrower’s knowledge” shall mean the actual knowledge of David Fallick, Robert Gatenio and Ronald Lieberman as of the Closing Date after conducting such due diligence as each of them, as senior executives and/or employees of experienced investors in commercial properties and/or operators of commercial properties similar to the Properties and after consultation with their agents and advisors, as applicable, have reasonably deemed appropriate in connection with the acquisition and ownership of the Properties and the borrowing of the Loan; provided, however, in all cases where such a qualification is used, there are no unknown breaches or violations of the so qualified representations or warranties that would in the aggregate have a Portfolio Material Adverse Effect.  Lender acknowledges and agrees that the foregoing individuals are identified solely for the purpose of defining the scope of knowledge and not for the purpose of imposing any liability upon any such individual or creating any duties running from any such individual to Borrower, Mortgage Borrower, any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement), Lender or any other party.  All references in this Agreement to the “knowledge of Borrower” or similar construction shall be deemed to be qualified to the extent provided in this definition.
“Borrower Party” and “Borrower Parties” shall mean each of Borrower, Mortgage Borrower, any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement), Sponsor and Guarantor.
“Breakage Costs” shall have the meaning set forth in Section 2.5(b)(viii) hereof.
“Business Day” shall mean any day other than a Saturday, Sunday or any other day on which commercial banks in New York, New York or the place of business of the trustee under a Securitization (or, if no Securitization has occurred, Lender) or the Servicer or the financial institution that maintains any collection account for or on behalf of the Servicer or any Reserve Funds or the New York Stock Exchange or the Federal Reserve Bank of New York is not open for business.
“Cash Management Account” shall have the meaning set forth in the Mortgage Loan Agreement.  
“Cash Management Agreement” shall have the meaning set forth in the Mortgage Loan Agreement.
“Cash Management Bank” shall have the meaning set forth in the Mortgage Loan Agreement.

    
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“Casualty” shall have the meaning set forth in Section 7.2 hereof.
“CF” shall have the meaning set forth in the preamble hereof.
“Citi” shall have the meaning set forth in the preamble hereof.
“Closing Date” shall mean the date of the funding of the Loan.
“Closing Date Debt Yield” shall have the meaning set forth in the Mortgage Loan Agreement.
“Closing Date Interest Rate Caps” shall have the meaning set forth in the Mortgage Loan Agreement.
“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time or any successor statute.
“Collateral” shall mean the “Collateral” as such term is defined in the Pledge Agreement and shall also include all amounts on deposit in any Account and any and all other property or collateral in which Lender is granted a security interest under any of the Loan Documents, in each case whether existing on the date hereof or hereafter pledged or assigned to Lender.
“Co-Lender” shall have the meaning set forth in Section 11.8(a)(i) hereof.
“Co-Lending Agreement” shall mean any co-lending agreement entered into between each Lender, individually as a Co-Lender and Citi, as Agent, and the other Co-Lenders in the event of a Syndication, as the same may be further supplemented modified, amended or restated or the rights thereunder assigned.
“Collateral Assignment of Interest Rate Cap Agreement” shall mean that certain Collateral Assignment of Interest Rate Cap Agreement, to be dated on or before the Rate Cap Purchase Date and to be executed by Borrower in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.  Borrower shall deliver to Lender a new Collateral Assignment of Interest Rate Cap Agreement in substantially the same form as the prior Collateral Assignment of Interest Rate Cap Agreement and otherwise reasonably acceptable to Lender in connection with each Replacement Interest Rate Cap Agreement.
“Concentration Account” shall have the meaning set forth in the Mortgage Loan Agreement.
“Condemnation” shall mean a temporary or permanent taking by any Governmental Authority as the result, in lieu or in anticipation, of the exercise of the right of condemnation or eminent domain, of all or any part of any Individual Property, or any interest therein or right accruing thereto, including any right of access thereto or any change of grade affecting any Individual Property or any part thereof.

    
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“Connection Income Taxes” shall mean Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Section 2.13 Taxes or branch profits Section 2.13 Taxes.
“Contractual Obligation” shall mean as to any Person, any provision of any security issued by such Person or of any agreement, instrument or undertaking to which such Person is a party or by which it or any of its property is bound, or any provision of the foregoing.
“Contribution” shall have the meaning set forth in Section 17.19 hereof.
“Control” shall mean the power to direct the management and policies of an entity, directly or indirectly, whether through the ownership of voting securities or other beneficial interests, by contract or otherwise; provided, that, control shall not be deemed absent solely because a non-managing member, partner or shareholder shall have veto rights with respect to major decisions.  The terms “Controlled” and “Controlling” shall have correlative meanings.
“Counterparty” shall mean the counterparty under any Interest Rate Cap Agreement or Replacement Interest Rate Cap Agreement (or, if applicable, the guarantor of such counterparty’s obligations thereunder), which counterparty (or guarantor, if applicable) shall satisfy the Minimum Counterparty Rating and otherwise be reasonably acceptable to Lender.
“Covered Rating Agency Information” shall mean any Provided Information furnished to the Rating Agencies in connection with issuing, monitoring and/or maintaining the Securities.
“Creditors Rights Laws” shall mean any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency or creditors’ rights.
“Debt” shall mean the outstanding principal amount set forth in, and evidenced by, this Agreement and the Note together with all interest accrued and unpaid thereon and all other sums due to Lender in respect of the Loan under the Note, this Agreement or the other Loan Documents (including, without limitation, all costs and expenses payable to Lender thereunder).
“Debt Service” shall mean, with respect to any particular period of time, scheduled principal (if applicable) and interest payments hereunder.
“Debt Service Coverage Ratio” shall have the meaning set forth in the Mortgage Loan Agreement.
“Debt Yield” shall have the meaning set forth in the Mortgage Loan Agreement.
“Default” shall mean the occurrence of any event hereunder or under the Note or the other Loan Documents which, but for the giving of notice or passage of time, or both, would be an Event of Default.
“Default Rate” shall mean, with respect to the Loan, a rate per annum equal to the lesser of (i) the Maximum Legal Rate, or (ii) four percent (4%) above the Interest Rate.

    
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“Default Yield Maintenance Premium” shall mean an amount equal to the Yield Maintenance Premium except that when calculating the Yield Maintenance Premium, the reference to “Fixed Interest Rate” in the definition of “Calculated Payments” shall be deemed to mean and refer to the “Default Rate”.
“Defeasance Approval Item” shall have the meaning set forth in Section 2.12 hereof.
“Defeasance Collateral Account” shall have the meaning set forth in Section 2.12 hereof.
“Defeased Note” shall have the meaning set forth in Section 2.12 hereof.
“Determination Date” shall mean, with respect to any Interest Accrual Period, the date that is two (2) London Business Days prior to the first day of such Interest Accrual Period.
“Directing Mezzanine B Lender” shall mean a Mezzanine B Lender which is appointed by the Mezzanine B Lenders as administrative agent with respect to the Mezzanine B Loan pursuant to any co-lender agreement with respect to the Mezzanine B Loan.
“Directing Mezzanine C Lender” shall mean a Mezzanine C Lender which is appointed by the Mezzanine C Lenders as administrative agent with respect to the Mezzanine C Loan pursuant to any co-lender agreement with respect to the Mezzanine C Loan.
“Directing Mortgage Lender” shall mean a Mortgage Lender which is appointed by the Mortgage Lenders as administrative agent or servicer with respect to the Mortgage Lenders pursuant to any co-lender or pooling and servicing agreement with respect to the Mortgage Loan.
“Disclosure Documents” shall mean, collectively and as applicable, any offering circular, free writing prospectus, prospectus, prospectus supplement, private placement memorandum, term sheet or other offering document, in each case, provided to prospective investors and the Rating Agencies in connection with a Securitization.
“Eligibility Requirements” means, with respect to any Person, that such Person (i) has total assets (in name or under management or advisement) in excess of $1,000,000,000 and (except with respect to a pension advisory firm, asset manager or similar fiduciary) capital/statutory surplus or shareholder’s equity of at least $500,000,000 and (ii) is regularly engaged in the business of making or owning (or, in the case of a pension advisory firm or similar fiduciary, regularly engaged in managing investments in) commercial real estate loans (including mezzanine loans to direct or indirect owners of commercial properties, which loans are secured by pledges of direct or indirect ownership interests in the owners of such commercial properties) or corporate credit loans, or operating commercial properties.
“Eligible Account” shall mean a separate and identifiable account from all other funds held by the holding institution that is an account or accounts maintained with a federal or state-chartered depository institution or trust company which (a) complies with the definition of Eligible Institution, (b) has a combined capital and surplus of at least $50,000,000 and (c) has corporate trust powers 

    
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and is acting in its fiduciary capacity.  An Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument.
“Eligible Institution” shall have the meaning set forth in the Mortgage Loan Agreement.
“Embargoed Person” shall have the meaning set forth in Section 3.29 hereof.
“Environmental Indemnity” shall mean that certain Environmental Indemnity Agreement (Mezzanine A Loan), dated as of the date hereof, executed by Borrower and Guarantor in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Environmental Laws” shall have the meaning set forth in the Environmental Indemnity.
“Environmental Reports” shall mean those certain Phase I environmental site assessments with respect to the Properties delivered to Lender in connection with the closing of the Loan.
“Equity Collateral” shall have the meaning set forth in Section 11.6 hereof.
“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as the same may heretofore have been or shall be amended, restated, replaced or otherwise modified.
“Event of Default” shall have the meaning set forth in Section 10.1 hereof.
“Exchange Act” shall mean the Securities and Exchange Act of 1934, as amended.
“Exchange Act Filing” shall have the meaning set forth in Section 11.1 hereof.
“Excluded Entity” shall mean American Healthcare Investors LLC and Griffin Capital Corporation (and any Affiliate of either).
“Excluded Taxes” shall mean any of the following Section 2.13 Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Section 2.13 Taxes imposed on or measured by net income (however denominated), franchise Section 2.13 Taxes, and branch profits Section 2.13 Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Section 2.13 Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, withholding taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.13, amounts with respect to such Section 2.13 Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Section 2.13 Taxes attributable to such Recipient’s failure to comply with Section 2.13(f) and (d) any U.S. federal withholding taxes imposed under FATCA.

    
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“Exculpated Parties” shall have the meaning set forth in Section 13.1 hereof.
“Facility” shall mean, with respect to each Individual Property, the “Facility” as defined in the Security Instrument related to each such Individual Property.
“Facility Survey” shall mean an on-site inspection of a Non-MOB Facility by a Health Care Authority with jurisdiction over the Non-MOB Facility to determine if the Operating Lessee, each Master Tenant and each Subtenant are meeting minimum quality and performance standards, including meeting licensing requirements and conditions of participation in Programs.
“FATCA” shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code.
“Fee Estate” shall mean the fee interest of the lessor under a Ground Lease in the Land and the Improvements demised under such Ground Lease.
“Fee Owner” shall mean the owner of the lessor’s interest in a Ground Lease and the related Fee Estate.
“First Monthly Payment Date” shall mean the Monthly Payment Date occurring in January, 2015.
“Fitch” shall mean Fitch, Inc.
“Fixed Interest Rate” shall mean with respect to the Fixed Rate Component, a rate of 6.750000% per annum.
“Fixed Rate Component” shall mean the Fixed Rate Note.
“Fixed Rate Note” shall mean, individually and/or collectively, as the context may require, Note A-2, Note A-4, Note A-6 and Note A-8.
“Floating Interest Rate” shall mean the sum of (i) the Adjusted LIBOR Rate and (ii) the LIBOR Spread.
“Floating Rate Component” shall mean the Floating Rate Note.
“Floating Rate Component Extended Maturity Date” shall have the meaning set forth in Section 2.9 hereof.
“Floating Rate Component Extension Option” shall have the meaning set forth in Section 2.9 hereof.

    
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“Floating Rate Component Extension Period” shall have the meaning set forth in Section 2.9 hereof.
“Floating Rate Component Initial Maturity Date” shall mean the Monthly Payment Date occurring in December, 2016 or such other date on which the final payment of the principal amount of the Loan becomes due and payable as herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise.
“Floating Rate Component Maturity Date” shall mean the Floating Rate Component Initial Maturity Date, as such date may be extended in accordance with Section 2.9 hereof or such other date on which the final payment of the principal amount of the Loan becomes due and payable as herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise.
“Floating Rate Note” shall mean, individually and/or collectively, as the context may require, Note A-1, Note A-3, Note A-5 and Note A-7.
“Flood Insurance Acts” shall have the meaning set forth in Section 7.1 hereof.
“Foreign Lender” shall mean a Lender that is not a U.S. Person.
“Funding Borrower” shall have the meaning set forth in Section 17.19 hereof.
“GAAP” shall mean generally accepted accounting principles in the United States of America as of the date of the applicable financial report.
“Government Payor” shall mean the Centers for Medicare and Medicaid Services, any state Medicaid program and any other federal or state Governmental Authority which presently or in the future maintains a Government Payor Program.
“Government Payor Program” shall mean any plan or program that provides health care benefits, through insurance or otherwise, which is funded directly, in whole or in part, by a Government Payor, including Medicare, Medicaid and TRICARE.
“Government Securities” shall mean “government securities” as defined in Section 2(a)(16) of the Investment Company Act of 1940 and within the meaning of Treasury Regulation Section 1.860G-2(a)(8); provided, that, (i) such “government securities” are not subject to prepayment, call or early redemption, (ii) to the extent (prior to the applicable Partial Defeasance Event or Total Defeasance Event) that any REMIC Requirements require a revised and/or alternate definition of “government securities” in connection with any defeasance hereunder, the foregoing shall be deemed amended in a manner commensurate therewith and (iii) the aforesaid laws and regulations shall be deemed to refer to the same as may be and/or may hereafter be amended, restated, replaced or otherwise modified (prior to the applicable Partial Defeasance Event or Total Defeasance Event).
“Governmental Authority” shall mean any court, board, agency, commission, office or other authority of any nature whatsoever for any governmental unit (federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence.

    
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“Gross Expenses” shall have the meaning set forth in the Mortgage Loan Agreement.
“Gross Revenues” shall have the meaning set forth in the Mortgage Loan Agreement.
“Ground Lease” shall have the meaning set forth in the Mortgage Loan Agreement.
“Ground Rent” shall have the meaning set forth in the Mortgage Loan Agreement.
“Guarantor” shall mean Northstar Realty Healthcare, LLC, a Delaware limited liability company and its successors or any replacement Guarantor in accordance with the provisions hereof or of the Guaranty.
“Guarantor Replacement Conditions” shall mean satisfaction by Borrower of each of the following: (i) Sponsor, a Qualified Transferee or a Qualified Public Company shall (I) own at least a 51% direct or indirect equity ownership interest in each of such Qualified Replacement Guarantor, each Borrower, Mortgage Borrower and each SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) and (II) Control such Qualified Replacement Guarantor, each Borrower, Mortgage Borrower and each SPE Component Entity (as defined herein and in the Mortgage Loan Agreement), (ii) Borrower shall deliver to Lender organizational documents and consents or authorizations reasonably acceptable to Lender with respect to such Qualified Replacement Guarantor, (iii) such Qualified Replacement Guarantor shall execute a recourse guaranty and an environmental indemnity in form and substance substantially identical to the Guaranty and Environmental Indemnity, (iv) Borrower shall deliver to Lender an opinion of counsel reasonably acceptable to Lender with respect to the authorization and enforceability of each of such Qualified Replacement Guarantor and such replacement recourse guaranty and environmental indemnity, (v) Borrower shall deliver to Lender a New Non-Consolidation Opinion with respect to such Qualified Replacement Guarantor and such replacement recourse guaranty and environmental indemnity, (vi) Borrower shall deliver to Lender entity searches with respect to such Qualified Replacement Guarantor and any direct or indirect owners thereof as reasonably required by Lender, the results of which searches shall be reasonably satisfactory to Lender and (vii) Borrower shall pay all reasonable third-party costs and expenses, including reasonable out of pocket attorneys’ fees and disbursements in connection with such replacement recourse guaranty and environmental indemnity.
“Guaranty” shall mean that certain Mezzanine A Limited Recourse Guaranty executed by Guarantor and dated as of the date hereof, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Health Care Authority” shall mean any Governmental Authority or quasi‐Governmental Authority with regulatory jurisdiction over the ownership, operation, use or occupancy of any Individual Property as a Skilled Nursing Facility, Assisted Living Facility, Long-Term Acute Care Hospital or Medical Office Building.
“Health Care License” shall have the meaning set forth in Section 3.38 hereof.
“Health Care Requirements” shall mean, with respect to each Facility, all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, 

    
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judgments, decrees and injunctions or agreements, in each case, pertaining to the ownership, operation, use or occupancy of such Facility or any portion thereof in accordance with its applicable Health Care Licenses and Government Payor Program participation.
“HIPAA” shall have the meaning set forth in Section 3.38 hereof.
“Improvements” shall mean, individually and/or collectively (as the context requires), the “Improvements” as defined in each applicable Security Instrument.
“Indebtedness” shall mean, for any Person, any indebtedness or other similar obligation for which such Person is obligated (directly or indirectly, by contract, operation of law or otherwise), including, without limitation, (i) all indebtedness of such Person for borrowed money, for amounts drawn under a letter of credit, or for the deferred purchase price of property for which such Person or its assets is liable, (ii) all unfunded amounts under a loan agreement, letter of credit, or other credit facility for which such Person would be liable if such amounts were advanced thereunder, (iii) all amounts required to be paid by such Person by contract and/or as a guaranteed payment (including, without limitation, any such amounts required to be paid to partners and/or as a preferred or special dividend, including any mandatory redemption of shares or interests), (iv) all indebtedness incurred and/or guaranteed by such Person, directly or indirectly, (v) all obligations under leases that constitute capital leases for which such Person is liable, and (vi) all obligations of such Person under interest rate swaps, caps, floors, collars and other interest hedge agreements, in each case whether such Person is liable contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations such Person otherwise assures a creditor against loss.
“Indemnified Person” shall mean Lender, any Affiliate of Lender and its designee (whether or not it is the Lender), that has filed any registration statement relating to the Securitization or has acted as the sponsor or depositor in connection with the Securitization, any Affiliate of Lender that acts as an underwriter, placement agent or initial purchaser of Securities issued in the Securitization, any other co-underwriters, co-placement agents or co-initial purchasers of Securities issued in the Securitization, and each of their respective officers, directors, partners, employees, representatives, agents and Affiliates and each Person or entity who Controls any such Person within the meaning of Section 15 of the Securities Act of 1933 as amended or Section 20 of the Security Exchange Act of 1934 as amended, any Person who is or will have been involved in the origination of the Loan on behalf of Lender, any Person who is or will have been involved in the servicing of the Loan secured hereby, any Person in whose name the encumbrance created by the Security Instruments is or will have been recorded, any Person who may hold or acquire or will have held a full or partial interest in the Loan secured hereby (including, but not limited to, investors or prospective investors in the Securities, as well as custodians, trustees and other fiduciaries who hold or have held a full or partial interest in the Loan secured hereby for the benefit of third parties) as well as the respective directors, officers, shareholders, partners, employees, agents, servants, representatives, contractors, subcontractors, affiliates, subsidiaries, participants, successors and assigns of any and all of the foregoing (including, but not limited to, any other Person who holds or acquires or will have held a participation or other full or partial interest in the Loan, whether during the term of the Loan or as a part of or following a foreclosure of the Loan and including, but not limited to any successors by merger, consolidation or acquisition of all or a substantial portion of Lender’s assets and business) 

    
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and any receiver or other fiduciary appointed in a foreclosure or other Creditors Rights Laws proceeding.
“Indemnified Taxes” shall mean (a) Section 2.13 Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of Borrower under any Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.
“Indemnifying Person” shall mean Borrower and Guarantor.
“Independent Director” shall have the meaning set forth in Section 5.2 hereof.
“Individual Property” shall have the meaning set forth in the Mortgage Loan Agreement.
“Information” shall have the meaning set forth in Section 11.8(b)(ii) hereof.
“Insurance Account” shall have the meaning set forth in the Mortgage Loan Agreement.
“Insurance Payor” shall mean any private insurance carrier or other Person responsible for making payment of any private program of health insurance.
“Insurance Premiums” shall have the meaning set forth in the Mortgage Loan Agreement.
“Intercreditor Agreement” shall have the meaning set forth in Section 11.10 hereof.
“Interest Accrual Period” shall mean the period beginning on (and including) the fifteenth (15th) day of each calendar month during the term of the Loan and ending on (and including) the fourteenth (14th) day of the next succeeding calendar month.  No Interest Accrual Period shall be shortened by reason of any payment of the Loan prior to the expiration of such Interest Accrual Period.
“Interest Bearing Accounts” shall have the meaning set forth in the Mortgage Loan Agreement.
“Interest Rate” shall mean, with respect to the Fixed Rate Component, the Fixed Interest Rate and with respect to the Floating Rate Component, the Floating Interest Rate (as determined in accordance with the provisions of Section 2.5 hereof).
“Interest Rate Cap Agreement” shall mean, as applicable, any interest rate cap agreement (together with the confirmation and schedules relating thereto) in form and substance satisfactory to Lender between Borrower and Counterparty or any Replacement Interest Rate Cap Agreement, in each case which also satisfies the requirements set forth in Section 2.8.
“Interest Shortfall” shall mean, (i) with respect to any repayment or prepayment of the Loan made on a date that is not a Monthly Payment Date, the interest which would have accrued on the Loan (absent such repayment or prepayment) through and including the last day of the Interest Accrual Period related to the next succeeding Monthly Payment Date following the date of such repayment or prepayment, and (ii) with respect to any repayment or prepayment of the Loan 

    
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(including a repayment on the Maturity Date) made on a date that is a Monthly Payment Date, the interest which would have accrued on the Loan (absent such repayment or prepayment) through and including the last day of the Interest Accrual Period related to such Monthly Payment Date.
“Investor” shall mean any investor or potential investor in the Loan (or any portion thereof or interest therein) in connection with any Secondary Market Transaction.
“IRS” shall mean the United States Internal Revenue Service.
“JPMorgan” shall have the meaning set forth in the preamble hereof.
“Land” shall have the meaning set forth in the Mortgage Loan Agreement.
“Landlord Alterations” shall have the meaning set forth in Section 4.21 hereof.
“Lease” shall have the meaning set forth in the Mortgage Loan Agreement.
“Legal Requirements” shall mean all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities and/or Health Care Requirements affecting Borrower, Mortgage Borrower, any Collateral, or any Individual Property or any part thereof, or the construction, use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force, including, without limitation, the Americans with Disabilities Act of 1990, and all Permits, authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or known to Borrower or Mortgage Borrower, at any time in force affecting Borrower, Mortgage Borrower, any Collateral or any Individual Property or any part thereof, including, without limitation, any which may (i) require repairs, modifications or alterations in or to any Individual Property or any part thereof, or (ii) in any way limit the use and enjoyment of any Individual Property or any Collateral.
“Lender Affiliate” shall have the meaning set forth in Section 11.2 hereof.
“Lender Documents” shall mean any agreement among Lender, Mortgage Lender, any Mezzanine Lender and/or any participant or any fractional owner of a beneficial interest in the Loan or any Mezzanine Loan relating to the administration of the Loan, the Mortgage Loan, the Mezzanine Loans, the Loan Documents, the Mortgage Loan Documents or the Mezzanine Loan Documents, including without limitation any intercreditor agreements, co-lender agreements and participation agreements.
“Lender Group” shall have the meaning set forth in Section 11.2 hereof.
“Letter of Credit” shall mean an irrevocable, auto-renewing, unconditional, transferable, clean sight draft standby letter of credit having an initial term of not less than one (1) year and with automatic renewals for one (1) year periods (unless the obligation being secured by, or otherwise requiring the delivery of, such letter of credit is required to be performed at least thirty (30) days prior to the initial expiry date of such letter of credit), for which Borrower shall have no reimbursement obligation and which reimbursement obligation is not secured by the Collateral or 

    
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any other property pledged to secure the Note, or all or any portion of any Individual Property, in favor of Lender and entitling Lender to draw thereon in New York, New York, based solely on a statement that Lender has the right to draw thereon executed by an officer or authorized signatory of Lender.  A Letter of Credit must be issued by an Approved Bank.  Borrower’s delivery of any Letter of Credit hereunder in an aggregate amount (together with all other Letters of Credit delivered by Borrower to Lender) equal to or greater than $10,000,000 shall, at Lender’s option, be conditioned upon Lender’s receipt of a New Non-Consolidation Opinion relating to such Letter of Credit.
“Liabilities” shall have the meaning set forth in Section 11.2 hereof.
“LIBOR” shall mean, with respect to each Interest Accrual Period, the rate (expressed as a percentage per annum and rounded upward, as necessary, to the next nearest 1/1000 of 1%) equal to the rate reported for deposits in U.S. dollars, for a one-month period, that appears on Reuters Screen LIBOR01 Page (or the successor thereto) as of 11:00 a.m., London time, on the related Determination Date; provided that, (i) if such rate does not appear on Reuters Screen LIBOR01 Page as of 11:00 a.m., London time, on such Determination Date, Lender shall request the principal London office of any four major reference banks in the London interbank market selected by Lender to provide such bank’s offered quotation (expressed as a percentage per annum) to prime banks in the London interbank market for deposits in U.S. dollars for a one-month period as of 11:00 a.m., London time, on such Determination Date for the amounts for a comparable loan at the time of such calculation and, if at least two such offered quotations are so provided, LIBOR shall be the arithmetic mean of such quotations; and (ii) if fewer than two such quotations in clause (i) are so provided, Lender shall request any three major banks in New York City selected by Lender to provide such bank’s rate (expressed as a percentage per annum) for loans in U.S. dollars to leading European banks for a one-month period as of approximately 11:00 a.m., New York City time on the applicable Determination Date for the amounts for a comparable loan at the time of such calculation and, if at least two such rates are so provided, LIBOR shall be the arithmetic mean of such rates.  Lender’s computation of LIBOR shall be conclusive and binding on Borrower for all purposes, absent manifest error.  
“LIBOR Loan” shall mean the Floating Rate Component at such time as interest thereon accrues at a rate of interest based upon LIBOR.
“LIBOR Spread” shall mean 6.250000%, as such amount may be increased pursuant to Section 2.9(d) hereof.  The LIBOR Spread shall be increased by one-quarter percent (0.25%) upon the commencement of the second Floating Rate Component Extension Period.
“Licensed Bed Capacity” shall mean, with respect to any Non-MOB Facility, the maximum number of resident beds the Non-MOB Facility has been approved to operate by the applicable Health Care Authority.
“Liquidation Event” shall have the meaning set forth in Section 2.7 hereof.
“Loan” shall mean the loan made by Lender to Borrower pursuant to this Agreement.
“Loan Bifurcation” shall have the meaning set forth in Section 11.1 hereof.

    
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“Loan Documents” shall mean, collectively, this Agreement, the Note, the Pledge Agreement, the Environmental Indemnity, the Subordination of Management Agreement, the Collateral Assignment of Interest Rate Cap Agreement, the Guaranty, the Post-Closing Agreement and all other documents executed and/or delivered in connection with the Loan (including, without limitation, assignments of owner’s title insurance policies (including assignments that take the form of ALTA 16 endorsements to owners title policies)), as each of the same may be amended, restated, replaced, extended, renewed, supplemented or otherwise modified from time to time.
“Loan-to-Value Ratio” shall mean, as of the date of its calculation, the ratio of (a) the outstanding principal amount of the Loan and the Mortgage Loan as of the date of such calculation to (b) the fair market value of the Properties (for purposes of the REMIC provisions, counting only real property and excluding any personal property or going concern value), as determined, in Lender’s reasonable discretion, by any commercially reasonable method permitted to a REMIC Trust.  
“London Business Day” shall mean any day other than a Saturday, Sunday or any other day on which commercial banks in London, England are not open for business.
“Long-Term Acute Care Hospital” shall mean a general or specialty hospital that provides long-term acute care.
“Losses” shall mean any and all losses, damages, costs, fees, expenses, claims, suits, judgments, awards, liabilities (including but not limited to strict liabilities), obligations, debts, diminutions in value (to the extent such diminutions in value result in an Indemnified Person actually receiving less than the full amount of the Debt due to such Indemnified Person under the Loan Documents), fines, penalties, charges, amounts paid in settlement, litigation costs and reasonable attorneys’ fees, in the case of each of the foregoing, of whatever kind or nature and whether or not incurred in connection with any judicial or administrative proceedings, actions, claims, suits, judgments or awards; provided, however, that in no event shall Losses include a loss of opportunity or special or punitive damages or (except as expressly set forth above with respect to diminutions in value) consequential damages.
“Major Lease” shall have the meaning set forth in the Mortgage Loan Agreement.
“Management Agreement” shall mean, individually and/or collectively (as the context may require), each management agreement entered into by and between Mortgage Borrower and Manager, pursuant to which Manager is to provide management and other services with respect to the Properties, as the same may be amended, restated, replaced, extended, renewed, supplemented or otherwise modified from time to time.
“Manager” shall mean (i) with respect to each Individual Property, the Person as set forth on Schedule VI hereto or (ii) such other Person selected as the manager of any applicable Individual Property pursuant to a Management Agreement in accordance with the terms of this Agreement or the other Loan Documents.
“Master Lease” shall have the meaning set forth in the Mortgage Loan Agreement.

    
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“Master Tenant” shall have the meaning set forth in the Mortgage Loan Agreement.
“Material Action” shall mean with respect to any Person, any action to consolidate or merge any Borrower with or into any Person which is not a Borrower, any action to consolidate or merge any Mortgage Borrower with or into any Person which is not a Mortgage Borrower, or sell all or substantially all of the assets of such Person, or to institute proceedings to have such Person be adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy or insolvency proceedings against such Person or file a petition seeking, or consent to, reorganization or relief with respect to such Person under any applicable federal or state law relating to bankruptcy, or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of such Person or a substantial part of its property, or make any assignment for the benefit of creditors of such Person, or admit in writing such Person’s inability to pay its debts generally as they become due, or take action in furtherance of any such action, or, to the fullest extent permitted by law, any action to dissolve or liquidate such Person.
“Material Adverse Effect” shall mean a material adverse effect on (i) any Individual Property or any portion thereof or the Collateral or any portion thereof, (ii) the business, profits, prospects, management, operations or financial condition of Borrower, Mortgage Borrower, Guarantor or any Individual Property or any portion thereof, (iii) the enforceability, validity, perfection or priority of the Pledge Agreement or the other Loan Documents, or (iv) the ability of Borrower and/or Guarantor to perform its obligations under the Pledge Agreement or the other Loan Documents to which it is a party.
“Material Agreements” shall mean each contract and agreement relating to the ownership, management, development, use, operation, leasing, maintenance, repair or improvements of the Properties or any Individual Property under which there is an obligation of Mortgage Borrower to pay more than $1,000,000 per annum and which is neither expressly contemplated under any Approved Annual Budget nor terminable upon not more than 60 days’ notice; provided, however, that none of the following shall constitute Material Agreements (i) Management Agreements and Leases, (ii) Permitted Equipment Leases entered into in accordance with this Agreement; (iii) contracts and agreements for the performance of alterations of any Individual Properties that are permitted under this Agreement without consent or to which Lender has consented; and (iv) contracts and agreements entered into by any Manager which is not subject to Mortgage Borrower’s approval under a Management Agreement.
“Maturity Date” shall mean (a) with respect to the Floating Rate Component, the Floating Rate Component Maturity Date and (b) with respect to the Fixed Rate Component, the earlier of (x) the Floating Rate Component Maturity Date and (y) the Monthly Payment Date occurring in December, 2019 or such other date on which the final payment of the principal amount of the Loan becomes due and payable as herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise.
“Maximum Legal Rate” shall mean the maximum non-usurious interest rate, if any, that at any time or from time to time may be contracted for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan Documents, under 

    
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the laws of such state or states whose laws are held by any court of competent jurisdiction to govern the interest rate provisions of the Loan.
“Medicaid” shall mean any state program of medical assistance administered under Title XIX of the Social Security Act.
“Medicare” shall mean the federal program for medical assistance administered under Title XVIII of the Social Security Act.
“Medical Office Building” shall mean a facility that leases space for use in the processing and/or provision of office-based outpatient or other medical related services.
“Member” is defined in Section 5.1 hereof.
“Mezzanine B Borrower” shall mean individually and/or collectively, as the context may require, each of the Persons listed on Schedule VIII hereto, together with their respective successors and permitted assigns.
“Mezzanine B Debt Service” shall have the meaning ascribed to the term “Debt Service” in the Mezzanine B Loan Agreement as of the Closing Date.
“Mezzanine B Extension Option” shall have the meaning ascribed to the term “Extension Option” in the Mezzanine B Loan Agreement.
“Mezzanine B Lender” shall mean, collectively, Citi, in its capacity as a lender under the Mezzanine B Loan, JPMorgan in its capacity as a lender under the Mezzanine B Loan, Barclays in its capacity as a lender under the Mezzanine B Loan and CF, in its capacity as a lender under the Mezzanine B Loan, together with their respective successors and assigns.
“Mezzanine B Loan” shall mean that certain mezzanine loan made as of the date hereof by Mezzanine B Lender to Mezzanine B Borrower in the original principal amount of $1,000,000.00, and evidenced by the Mezzanine B Note and evidenced and secured by the other Mezzanine B Loan Documents.
“Mezzanine B Loan Agreement” shall mean that certain Mezzanine B Loan Agreement, dated as of the date hereof, by and between Mezzanine B Borrower and Mezzanine B Lender, as the same may be amended, restated, replaced or otherwise modified from time to time.
“Mezzanine B Loan Documents” shall have the meaning ascribed to the term “Loan Documents” in the Mezzanine B Loan Agreement.
“Mezzanine B Note” shall have the meaning ascribed to the term “Note” in the Mezzanine B Loan Agreement.
“Mezzanine Borrower” shall mean, individually and/or collectively, as the context may require, Mezzanine B Borrower and Mezzanine C Borrower.

    
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“Mezzanine C Borrower” shall mean individually and/or collectively, as the context may require, each of the Persons listed on Schedule IX hereto, together with their respective successors and permitted assigns.
“Mezzanine C Debt Service” shall have the meaning ascribed to the term “Debt Service” in the Mezzanine C Loan Agreement as of the Closing Date.
“Mezzanine C Extension Option” shall have the meaning ascribed to the term “Extension Option” in the Mezzanine C Loan Agreement.
“Mezzanine C Lender” shall mean, collectively, Citi, in its capacity as a lender under the Mezzanine C Loan, JPMorgan in its capacity as a lender under the Mezzanine C Loan, Barclays in its capacity as a lender under the Mezzanine C Loan and CF, in its capacity as a lender under the Mezzanine C Loan, together with their respective successors and assigns.
“Mezzanine C Loan” shall mean that certain mezzanine loan made as of the date hereof by Mezzanine C Lender to Mezzanine C Borrower in the original principal amount of $425,000,000.00, and evidenced by the Mezzanine C Note and evidenced and secured by the other Mezzanine C Loan Documents.
“Mezzanine C Loan Agreement” shall mean that certain Mezzanine C Loan Agreement, dated as of the date hereof, by and between Mezzanine C Borrower and Mezzanine C Lender, as the same may be amended, restated, replaced or otherwise modified from time to time.
“Mezzanine C Loan Documents” shall have the meaning ascribed to the term “Loan Documents” in the Mezzanine C Loan Agreement.
“Mezzanine C Note” shall have the meaning ascribed to the term “Note” in the Mezzanine C Loan Agreement.
“Mezzanine Lender” shall mean, individually and/or collectively, as the context may require, Mezzanine B Lender and Mezzanine C Lender.
“Mezzanine Loan Agreement” shall mean, individually and/or collectively, as the context may require, the Mezzanine B Loan Agreement and the Mezzanine C Loan Agreement.
“Mezzanine Loan Documents” shall mean, individually and/or collectively, as the context may require, the Mezzanine B Loan Documents and the Mezzanine C Loan Documents.
“Mezzanine Loans” shall mean, individually and/or collectively, as the context may require, the Mezzanine B Loan and the Mezzanine C Loan.
“Mezzanine Option” shall have the meaning set forth in Section 11.6 hereof.
“Minimum Counterparty Rating” shall mean (a) a long-term unsecured debt rating of “A+” or higher by S&P, which rating shall not include a “t” or otherwise reflect a termination risk or otherwise be qualified (or if S&P no longer rates any Counterparties the equivalent from DBRS (if 

    
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rated by DBRS)); (b) either (i) a long-term senior unsecured debt rating of at least “A2” from Moody’s and a short-term unsecured debt rating of at least “P-1” from Moody’s which rating shall not include a “t” or otherwise reflect a termination risk or otherwise be qualified or (ii) if no short-term senior unsecured debt rating exists, a long-term unsecured debt rating of not less than “A1” by Moody’s which rating shall not include a “t” or otherwise reflect a termination risk or otherwise be qualified; and (c) a long-term unsecured debt rating of “A” (and not on Rating Watch Negative) or higher by Fitch and a short-term unsecured debt rating of not less than “F-1” (and not on Rating Watch Negative) from Fitch (and, after a Securitization, the equivalent of the foregoing by the other Rating Agencies).  After a Securitization of the Loan, only the ratings of those Rating Agencies rating the Securities shall apply.  In the event that no Counterparty meets the foregoing Minimum Counterparty Rating, such Counterparty shall be required to meet such Counterparty criteria as is reasonably acceptable to Lender (and after a Securitization, acceptable to the Rating Agencies).
“Monthly Debt Service Payment Amount” shall mean for the First Monthly Payment Date and for each Monthly Payment Date occurring thereafter up to and including the Maturity Date, a payment equal to the amount of interest which will accrue on the Notes during the Interest Accrual Period in which such Monthly Payment Date occurs computed at the Interest Rate.
“Monthly Payment Date” shall mean the First Monthly Payment Date and the ninth (9th) day of every calendar month occurring thereafter during the term of the Loan.
“Moody’s” shall mean Moody’s Investor Service, Inc.
“Mortgage Borrower” shall have the meaning set forth in the Recitals hereto.
“Mortgage Borrower Company Agreement” shall mean, collectively, the limited liability company agreements of each Mortgage Borrower, as the same may be amended from time to time to the extent permitted under the Mortgage Loan Agreement and this Agreement.
“Mortgage Event of Default” shall have the meaning ascribed to the term “Event of Default” in the Mortgage Loan Agreement.
“Mortgage Extension Option” shall have the meaning ascribed to the term “Extension Option” in the Mortgage Loan Agreement.
“Mortgage Lender” shall mean, collectively, Citi, in its capacity as a lender under the Mortgage Loan, JPMorgan in its capacity as a lender under the Mortgage Loan, Barclays in its capacity as a lender under the Mortgage Loan and CF, in its capacity as a lender under the Mortgage Loan, together with their respective successors and assigns.
“Mortgage Loan” shall mean that certain mortgage loan made as of the date hereof by Mortgage Lender to Mortgage Borrower in the original principal amount of $1,878,000,000, and evidenced by the Mortgage Note and evidenced and secured by the other Mortgage Loan Documents.

    
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“Mortgage Loan Agreement” shall mean that certain Loan Agreement, dated as of the date hereof, by and between Mortgage Borrower and Mortgage Lender, as the same may be amended, restated, replaced or otherwise modified from time to time.
“Mortgage Loan Cash Management Accounts” shall mean, collectively, the Restricted Account, the Concentration Account and the Cash Management Account (as each such term is defined in the Mortgage Loan Agreement).
“Mortgage Loan Cash Management Provisions” shall mean the terms and conditions of the Mortgage Loan Documents relating to cash management (including, without limitation, those relating to the Restricted Account, the Concentration Account and Restricted Account Agreement (as each such term is defined in the Mortgage Loan Agreement)).
“Mortgage Loan Documents” shall have the meaning ascribed to the term “Loan Documents” in the Mortgage Loan Agreement.
“Mortgage Loan Reserve Funds” shall have the meaning ascribed to the term “Reserve Funds” in the Mortgage Loan Agreement.
“Mortgage Note” shall have the meaning ascribed to the term “Note” in the Mortgage Loan Agreement.
“Net Liquidation Proceeds After Debt Service” shall mean, with respect to any Liquidation Event, all amounts paid to or received by or on behalf of Mortgage Borrower in connection with such Liquidation Event, including, without limitation, proceeds of any sale, refinancing or other disposition or liquidation, less (i) Lender’s and/or Mortgage Lender’s reasonable costs incurred in connection with the recovery thereof, (ii) in the case of a casualty or condemnation, (a) the costs incurred by Mortgage Borrower in connection with collecting any proceeds related to a Casualty or Condemnation or a Restoration of all or any portion of a Property made in accordance with the Mortgage Loan Documents and (b) amounts required to be turned over to or used by a third-party, unaffiliated Tenant pursuant to the terms of any applicable Lease or other unaffiliated third party pursuant to a Property Document, (iii) amounts required or permitted to be deducted therefrom, and amounts paid, pursuant to the Mortgage Loan Documents to Mortgage Lender, (iv) in the case of a foreclosure sale, disposition or transfer of a Property in connection with realization thereon following a Mortgage Event of Default, such reasonable and customary costs and expenses of sale or other disposition (including reasonable attorneys’ fees and brokerage commissions), (v) in the case of a foreclosure sale, such costs and expenses incurred by Mortgage Lender under the Mortgage Loan Documents as Mortgage Lender shall be entitled to receive reimbursement for under the terms of the Mortgage Loan Documents, (vi) in the case of a refinancing of the Mortgage Loan, such costs and expenses (including reasonable attorneys’ fees) of such refinancing as shall be reasonably approved by Mortgage Lender, and (vii) the amount of any prepayments required pursuant to the Mortgage Loan Documents and/or the Loan Documents, in connection with any such Liquidation Event.
“Net Operating Income” shall have the meaning set forth in the Mortgage Loan Agreement.

    
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“Net Proceeds” shall have the meaning set forth in the Mortgage Loan Agreement.
“New Manager” shall mean any Person replacing or becoming the assignee of the then current Manager, in each case, in accordance with the applicable terms and conditions hereof.
“New Non-Consolidation Opinion” shall mean a substantive non-consolidation opinion hereafter provided to Lender by the outside counsel that provided the Non-Consolidation Opinion (provided that such outside counsel has the same or similar reputation to that of such outside counsel as of the Closing Date) or by other outside counsel reasonably acceptable to Lender and acceptable to the Rating Agencies and otherwise in form and substance reasonably acceptable to Lender and acceptable to the Rating Agencies.
“Non-Consolidation Opinion” shall mean that certain substantive non-consolidation opinion delivered to Lender by Berger Harris LLP in connection with the closing of the Loan.
“Non-MOB Facility” shall mean, individually and/or collectively, any Facility other than a Medical Office Building.
“Non-RIDEA Facility” shall mean, individually and/or collectively, any Non-MOB Facility other than a RIDEA Facility.
“Note” shall mean, individually and/or collectively, as the context may require (i) that certain Promissory Note A-1 of even date herewith in the principal amount of $34,234,973.50 made by Borrower in favor of Citi (“Note A-1”), (ii) that certain Promissory Note A-2 of even date herewith in the principal amount of $67,165,026.50 made by Borrower in favor of Citi (“Note A-2”), (iii) that certain Promissory Note A-3 of even date herewith in the principal amount of $34,234,973.51 made by Borrower in favor of JPM (“Note A-3”), (iv) that certain Promissory Note A-4 of even date herewith in the principal amount of $67,165,026.49 made by Borrower in favor of JPM (“Note A-4”), (v) that certain Promissory Note A-5 of even date herewith in the principal amount of $22,823,315.67 made by Borrower in favor of Barclays (“Note A-5”), (vi) that certain Promissory Note A-6 of even date herewith in the principal amount of $44,776,684.33 made by Borrower in favor of Barclays (“Note A-6”), (vii) that certain Promissory Note A-7 of even date herewith in the principal amount of $22,823,315.67 made by Borrower in favor of CF (“Note A-7”) and (viii) that certain Promissory Note A-8 of even date herewith in the principal amount of $44,776,684.33 made by Borrower in favor of CF (“Note A-8”), as each of the same may be amended, restated, replaced, extended, renewed, supplemented, severed, split, or otherwise modified from time to time (including, without limitation, any Defeased Note(s) and Undefeased Note(s) that may exist from time to time).
“Note A-1” shall have the meaning set forth in the definition of “Note” in Section 1.1 hereof, as the same may be amended, restated, replaced, extended, renewed, supplemented, severed, split, or otherwise modified from time to time.
“Note A-2” shall have the meaning set forth in the definition of “Note” in Section 1.1 hereof, as the same may be amended, restated, replaced, extended, renewed, supplemented, severed, split, 

    
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or otherwise modified from time to time (including, without limitation, any Defeased Note(s) and Undefeased Note(s) that may exist from time to time).
“Note A-3” shall have the meaning set forth in the definition of “Note” in Section 1.1 hereof, as the same may be amended, restated, replaced, extended, renewed, supplemented, severed, split, or otherwise modified from time to time.
“Note A-4” shall have the meaning set forth in the definition of “Note” in Section 1.1 hereof, as the same may be amended, restated, replaced, extended, renewed, supplemented, severed, split, or otherwise modified from time to time (including, without limitation, any Defeased Note(s) and Undefeased Note(s) that may exist from time to time).
“Note A-5” shall have the meaning set forth in the definition of “Note” in Section 1.1 hereof, as the same may be amended, restated, replaced, extended, renewed, supplemented, severed, split, or otherwise modified from time to time.
“Note A-6” shall have the meaning set forth in the definition of “Note” in Section 1.1 hereof, as the same may be amended, restated, replaced, extended, renewed, supplemented, severed, split, or otherwise modified from time to time (including, without limitation, any Defeased Note(s) and Undefeased Note(s) that may exist from time to time).
“Note A-7” shall have the meaning set forth in the definition of “Note” in Section 1.1 hereof, as the same may be amended, restated, replaced, extended, renewed, supplemented, severed, split, or otherwise modified from time to time.
“Note A-8” shall have the meaning set forth in the definition of “Note” in Section 1.1 hereof, as the same may be amended, restated, replaced, extended, renewed, supplemented, severed, split, or otherwise modified from time to time (including, without limitation, any Defeased Note(s) and Undefeased Note(s) that may exist from time to time).
“Obligations” shall have the meaning set forth in Section 17.19 hereof.
“Occupancy Report” shall have the meaning set forth in the Mortgage Loan Agreement.
“Officer’s Certificate” shall mean a certificate delivered to Lender by Borrower which is signed by a Responsible Officer of Borrower.
“Operating Lease” shall have the meaning set forth in the Mortgage Loan Agreement.
“Operating Lessee” shall have the meaning set forth in the Mortgage Loan Agreement.
“Operating Lessee Pledgor” shall have the meaning set forth in the Mortgage Loan Agreement.
“Organizational Chart” shall have the meaning set forth in Section 3.31 hereof.
“Other Charges” shall have the meaning set forth in the Mortgage Loan Agreement.

    
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“Other Connection Taxes” shall mean, with respect to any Recipient, Section 2.13 Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Section 2.13 Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).
“Other Taxes” shall mean all present or future stamp, court or documentary, intangible, recording, filing or similar Section 2.13 Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Section 2.13 Taxes that are Other Connection Taxes imposed with respect to an assignment.
“PACE Loan” shall mean any Property-Assessed Clean Energy loan or any similar financing.
“Partial Defeasance Collateral” shall mean Government Securities, which provide payments (i) on or prior to, but as close as possible to, the Business Day immediately preceding all Monthly Payment Dates and other scheduled payment dates, if any, under the Defeased Note after the Partial Defeasance Date and up to and including the Prepayment Release Date (assuming the Defeased Note is required to be prepaid in full as of such Prepayment Release Date), and (ii) in amounts equal to or greater than the Scheduled Defeasance Payments relating to such Monthly Payment Dates and other scheduled payment dates.
“Partial Defeasance Date” shall have the meaning set forth in Section 2.12 hereof.
“Partial Defeasance Event” shall have the meaning set forth in Section 2.12 hereof.
“Partial Defeasance Notice Date” shall have the meaning set forth in Section 2.12 hereof.
“Participant” shall have the meaning set forth in Section 11.8(a)(ix) hereof.
“Participant Register” shall have the meaning set forth in Section 11.8(a)(ix) hereof.
“Permits” shall mean all necessary certificates, licenses, permits, franchises, trade names, certificates of occupancy, consents, and other approvals (governmental and otherwise) required under applicable Legal Requirements and applicable Health Care Requirements for the operation of each Individual Property and the conduct of Borrower’s and Mortgage Borrower’s business (including, without limitation, all required zoning, building code, land use, environmental, public assembly and other similar permits or approvals).
“Permitted Encumbrances” shall mean collectively, (a) the lien and security interests created by this Agreement and the other Loan Documents, (b) all liens, encumbrances and other matters disclosed in the applicable Title Insurance Policy, (c) liens, if any, for Section 2.13 Taxes, Taxes and Other Charges imposed by any Governmental Authority not yet due or delinquent or which are contested in good faith by appropriate proceedings and for which Borrower, any 

    
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Mezzanine Borrower or Mortgage Borrower has set aside adequate reserves on its books, (d) existing Leases and new Leases entered into in accordance with this Agreement, (e) any Permitted Equipment Leases, (f) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s sole discretion, (g) the liens and security interests created by the Mortgage Loan Documents and the Mezzanine Loan Documents, (h) any inchoate liens or any involuntary liens on an Individual Property or any part thereof so long as (in the case of any involuntary lien) such involuntary lien is bonded or discharged within thirty (30) days of the filing of such lien or is being contested in accordance with this Agreement and the Mortgage Loan Agreement and (i) immaterial easements, rights-of-way, restrictions or similar non-monetary encumbrances recorded against and affecting such Individual Property that do not materially adversely affect (1) the ability of Borrower to pay its obligations to any Person as and when due, (2) the marketability of title to such Individual Property or of the Collateral, (3) the fair market value of such Individual Property or the Collateral, or (4) the use or operation of such Individual Property.
“Permitted Equipment Leases” shall have the meaning set forth in the Mortgage Loan Agreement.
“Permitted Fund Manager” means any Person that on the date of determination is not subject to a case under the Bankruptcy Code or other Creditors Rights Laws and is either (i) a nationally-recognized manager of investment funds investing in debt or equity interests, or (ii) an entity that is a Qualified Lender pursuant to clauses (ix)(A), (B), (C) or (D) of the definition thereof.
“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 Servicer, or any trustee under any Securitization or any of their respective Affiliates, payable on demand or having a maturity date not later than the Business Day immediately prior to the first Monthly Payment Date following the date of acquiring such investment and meeting one of the appropriate standards set forth below:
(a)    obligations of, or obligations directly and unconditionally guaranteed as to principal and interest by, the U.S. government or any agency or instrumentality thereof, when such obligations are backed by the full faith and credit of the United States of America and have maturities not in excess of one year, provided that with respect to any such obligation guaranteed by any agency or instrumentality of the U.S. government, such agency or instrumentality must be either (i) rated by S&P and have a rating equal to at least the minimum eligible rating by S&P or (ii) are specifically approved by S&P as having the creditworthiness of the senior obligations equal to that of the U.S. government;
(b)    federal funds, unsecured certificates of deposit, time deposits, banker’s acceptances, and repurchase agreements having maturities of not more than 90 days of any commercial bank organized under the laws of the United States of America or any state thereof or the District of Columbia, the short-term debt obligations of which are rated (a) “A-1+” (or the equivalent) by S&P and, if it has a term in excess of three months, the long-term debt obligations of which are rated “AAA” (or the equivalent) by S&P, and that (1) is at least “adequately capitalized” (as defined in the regulations of its primary Federal banking regulator) and (2) has Tier 1 capital (as defined in such regulations) of not less than $1,000,000,000, (b) in one of the following 

    
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Moody’s rating categories:  (1) for maturities less than one month, a long-term rating of “A2” or a short-term rating of “P-1”, (2) for maturities between one and three months, a long-term rating of “A1” and a short-term rating of “P-1”, (3) for maturities between three months to six months, a long-term rating of “Aa3” and a short-term rating of “P-1” and (4) for maturities over six months, a long-term rating of “Aaa” and a short-term rating of “P-1”, or such other ratings as confirmed in a Rating Agency Confirmation and (c) in one of the following Fitch rating categories:  (1) for maturities less than three months, a long term rating of “A” and a short term rating of “F-1” and (2) for maturities greater than three months, a long-term rating of “AA-” and a short term rating of “F-1+”;
(c)    deposits that are fully insured by the Federal Deposit Insurance Corp.;
(d)    commercial paper rated (a) “A–1+” (or the equivalent) by S&P and having a maturity of not more than 90 days, (b) in one of the following Moody’s rating categories:  (i) for maturities less than one month, a long-term rating of “A2” or a short-term rating of “P-1”, (ii) for maturities between one and three months, a long-term rating of “A1” and a short-term rating of “P-1”, (iii) for maturities between three months to six months, a long-term rating of “Aa3” and a short-term rating of “P-1” and (iv) for maturities over six months, a long-term rating of “Aaa” and a short-term rating of “P-1” and (c) in one of the following Fitch rating categories:  (1) for maturities less than three months, a long term rating of “A” and a short term rating of “F-1” and (2) for maturities greater than three months, a long-term rating of “AA-” and a short term rating of “F-1+”;
(e)    any money market funds that (a) has substantially all of its assets invested continuously in the types of investments referred to in clause (i) above, (b) has net assets of not less than $5,000,000,000, and (c) has an S&P rating of “AAAm” or better and the highest rating obtainable from Moody’s; and
(f)    such other investments as to which each Rating Agency shall have delivered a Rating Agency Confirmation.
Notwithstanding the foregoing, “Permitted Investments” (i) shall exclude any security with a qualified rating symbol (or any other Rating Agency’s corresponding symbol) attached to the rating, as well as any mortgage-backed securities and any security of the type commonly known as “strips”; (ii) shall be limited to those instruments that have a predetermined fixed dollar of principal due at maturity that cannot vary or change; (iii) shall only include instruments that qualify as “cash flow investments” (within the meaning of Section 860G(a)(6) of the Code); and (iv) shall exclude any investment where the right to receive principal and interest derived from the underlying investment provides a yield to maturity in excess of 120% of the yield to maturity at par of such underlying investment.  Interest may either be fixed or variable, and any variable interest must be tied to a single interest rate index plus a single fixed spread (if any), and move proportionately with that index.  No investment shall be made which requires a payment above par for an obligation if the obligation may be prepaid at the option of the issuer thereof prior to its maturity.  All investments shall mature or be redeemable upon the option of the holder thereof on or prior to the earlier of (x) three months from the date of their purchase and (y) the Business Day preceding the day before the date such amounts are required to be applied hereunder.

    
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“Permitted Prepayment Threshold” shall mean an aggregate amount equal to 15% of the original principal amount of the Loan (after giving effect to the paydown of the Loan pursuant to Section 8.10 of the Mortgage Loan Agreement) prepaid in connection with the release of Individual Properties and Released Collateral in accordance with the terms and conditions of Section 2.10 hereof.
“Permitted Self-Management Property” shall mean, for so long as Borrower is controlled by Sponsor, any Individual Property which is subject to a triple-net lease with a Tenant.
“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 and any other entity and, in each case, any fiduciary acting in such capacity on behalf of any of the foregoing.
“Personal Property” shall mean, individually and/or collectively (as the context requires), the “Personal Property” as defined in each applicable Security Instrument.
“Pledge Agreement” shall have the meaning set forth in the Recitals to this Agreement.
“Policies” shall have the meaning specified in the Mortgage Loan Agreement.
“Portfolio Material Adverse Effect” shall mean a material adverse effect on (i) the Properties (taken as a whole), (ii) the Collateral (taken as a whole), (iii) the business, profits, prospects, management, operations or financial condition of Borrower or Mortgage Borrower (taken as a whole), Guarantor, the Collateral or the Properties (taken as a whole), (iv) the enforceability, validity, perfection or priority of the liens of the Pledge Agreement and the other Loan Documents, or (v) the ability of Borrower and/or Guarantor to perform its obligations under the Pledge Agreement or the other Loan Documents to which it is a party.
“Post Closing Agreement” shall mean that certain Post-Closing Obligations Agreement, dated of even date herewith, by and between Borrower and Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.
“Prepaid Mezzanine Loan” shall have the meaning specified in Section 2.7 hereof.
“Prepaying Mezzanine Borrower” shall have the meaning specified in Section 2.7 hereof.
“Prepayment Notice” shall have the meaning specified in Section 2.7(b) hereof.
“Prepayment Premium” shall mean with respect to any repayment or prepayment of the Floating Rate Component made (i) on or prior to the Monthly Payment Date occurring in January, 2017, an amount equal to the sum of the present values, as of the date of such repayment of each future installment of interest that would be payable under the Floating Rate Component on the outstanding principal amount of the Floating Rate Component being prepaid from the date of such prepayment (or such later date through which interest shall have been paid as of such date of prepayment) through and including the last day of the Interest Accrual Period related to the Monthly Payment Date occurring in January, 2017, assuming an interest rate equal to the LIBOR Spread in 

    
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effect as of the date of such prepayment or repayment, and (ii) after the Monthly Payment Date occurring in January, 2017, an amount equal to zero dollars ($0.00).  Lender’s computation of the Prepayment Premium shall be conclusive and binding on Borrower for all purposes, absent manifest error.
“Prepayment Release Date” shall mean, with respect to the Fixed Rate Component, the Monthly Payment Date occurring in June, 2019.
“Prime Rate” shall mean rate of interest published in The Wall Street Journal from time to time as the “Prime Rate.”  If more than one “Prime Rate” is published in The Wall Street Journal for a day, the average of such “Prime Rates” shall be used, and such average shall be rounded up to the nearest 1/100th of one percent (0.01%).  If The Wall Street Journal ceases to publish the “Prime Rate,” Lender shall select an equivalent publication that publishes such “Prime Rate,” and if such “Prime Rates” are no longer generally published or are limited, regulated or administered by a governmental or quasigovernmental body, then Lender shall select a comparable interest rate index.
“Prime Rate Loan” shall mean Floating Rate Component at such time as interest thereon accrues at a rate of interest based upon the Prime Rate.
“Prime Rate Spread” shall mean the difference (expressed as the number of basis points) between (a) the sum of (i) the Adjusted LIBOR Rate and (ii) the LIBOR Spread, in each case, on the Determination Date that LIBOR was last applicable to the Floating Rate Component and (b) the Prime Rate on the Determination Date that LIBOR was last applicable to Floating Rate Component; provided, however, in no event shall such difference be a negative number.
“Program” shall mean any and all third party payor programs and health plans, whether private, commercial or governmental, including, but not limited to, any federal or state health programs, including Medicare, Medicaid, Medicaid waiver programs and TRICARE programs.
“Prohibited Transfer” shall have the meaning set forth in Section 6.2 hereof.
“Projections” shall have the meaning set forth in Section 11.8(b)(ii) hereof.
“Property” and “Properties” shall have the meaning set forth in the Mortgage Loan Agreement.
“Property Condition Report” shall mean, individually and/or collectively, as the context may require, those certain property condition reports delivered to Lender by Borrower in connection with the origination of the Loan or otherwise obtained by Lender in connection with the origination of the Loan and delivered to Borrower prior to the Closing Date.
“Property Document” shall have the meaning set forth in the Mortgage Loan Agreement.
“Property Document Event” shall mean any event which would, directly or indirectly, cause a termination right, cause any material termination fees to be due, cause any right of first refusal, first offer or any other similar right with respect to any Individual Property or any material 

    
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portion thereof to be implemented or would cause a Material Adverse Effect to occur under any Property Document (in each case, beyond any applicable notice and cure periods under the applicable Property Document); provided, however, any of the foregoing shall not be deemed a Property Document Event to the extent Lender’s prior written consent is obtained with respect to the same or to the extent the same shall not have a Material Adverse Effect.
“Provided Information” shall mean any information provided by or on behalf of any Borrower Party in connection with the Loan, the Mortgage Loan, each Individual Property, the Collateral, such Borrower Party, any Affiliated Manager and/or any related matter or Person.
“Prudent Lender Standard” shall, with respect to any matter, be deemed to have been met if the matter in question (i) prior to a Securitization, is reasonably acceptable to Lender and (ii) after a Securitization, (A) if permitted by REMIC Requirements applicable to such matter, would be reasonably acceptable to Lender or (B) if the Lender discretion in the foregoing subsection (A) is not permitted under such applicable REMIC Requirements, would be acceptable to a prudent lender of securitized commercial mortgage loans.
“Public Company Exit” shall mean (i) Guarantor becoming a Qualified Public Company or (ii) (A) Guarantor merging with or into a Qualified Public Company or (B) at least seventy-five percent (75%) of the indirect interests in Borrower and each Mezzanine Borrower being sold or transferred to, or otherwise becoming held by, a Qualified Public Company, in each instance upon the closing of the initial listing of such Qualified Public Company on a nationally recognized securities exchange.
“Qualified Lender” means (i) Citi, (ii) any Affiliate of Citi, (iii) JPMorgan, (iv) any Affiliate of JPMorgan, (v) Barclays, (vi) any Affiliate of Barclays, (vii) CF, (viii) any Affiliate of CF, or (ix) one or more of the following (in each of clauses (i) through (ix), either acting (1) for itself or (2) as agent for itself and other lenders, provided that at least fifty percent (50%) of such  lenders pursuant to this clause (2) are Qualified Lenders):
(A)    a real estate investment trust, bank, saving and loan association, investment bank, insurance company, trust company, commercial credit corporation, pension plan, pension fund or pension advisory firm, mutual fund, government entity or plan, provided that any such Person referred to in this clause (A) satisfies the Eligibility Requirements;
(B)    an investment company, money management firm or “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act or an institutional “accredited investor” within the meaning of Regulation D under the Securities Act, provided that any such Person referred to in this clause (B) satisfies the Eligibility Requirements;
(C)    an institution substantially similar to any of the foregoing entities described in clause (ix)(A), (ix)(B) or (ix)(E), or any other Person which is subject to supervision and regulation by the insurance or banking department of any state or of the United States, the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance 

    
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Corporation or by any successor hereafter exercising similar functions, in each case, that satisfies the Eligibility Requirements;
(D)    any entity Controlled by, Controlling or under common Control with any of the entities described in clause (ix)(A), (ix)(B) or (ix)(C) above or clause (ix)(E) below;
(E)    an investment fund, limited liability company, limited partnership or general partnership (a “Permitted Investment Fund”) where a Permitted Fund Manager or Qualified Lender (other than pursuant to this clause (ix)(E)) acts as general partner, managing member or fund manager and at least fifty percent (50%) of the equity interests in such investment vehicle are owned, directly or indirectly, by one or more of the following:  a Qualified Lender under (A), (B), (C) or (D) above or (F) below, an institutional “accredited investor”, within the meaning of Regulation D promulgated under the Securities Act, and/or a “qualified institutional buyer” or both within the meaning of Rule 144A promulgated under the Exchange Act, provided such institutional “accredited investors” or “qualified institutional buyers” that are used to satisfy the fifty percent (50%) test set forth above in this clause (E) satisfy the financial tests in clause (i) of the definition of Eligibility Requirements; or
(F)    following a Securitization, any Person for which the Rating Agencies have issued a Rating Agency Confirmation.
“Qualified Management Agreement” shall mean a management agreement with a Qualified Manager with respect to the applicable Individual Property which is approved by Lender in writing (such approval not to be unreasonably withheld, conditioned or delayed and which approval may be conditioned upon Lender's receipt of a Rating Agency Confirmation with respect to such management agreement).
“Qualified Manager” shall mean (a) AHI Newco, LLC or subsidiary of AHI Newco, LLC that is one hundred percent (100%) owned and Controlled by AHI Newco, LLC, (b) any Sub-Manager as of the Closing Date with respect to the Individual Property (or Properties) sub-managed by such Sub-Manager as of the Closing Date, (c) an Unaffiliated Qualified Manager, (d) an Affiliated Manager that satisfies clauses (A) through (C) of the definition of Unaffiliated Qualified Manager or (e) a Person reasonably approved by Lender in writing (which approval may be conditioned upon Lender's receipt of a Rating Agency Confirmation with respect to such Person).
“Qualified Public Company” shall mean an entity whose securities are listed and traded on a nationally recognized securities exchange and which, upon the closing of the initial listing of such entity on such exchange, (i) has total capitalization (taking into account (a) the total equity of such entity (the “Equity”), calculated to be the greater of (1) the market capitalization of such equity and (2) the undepreciated book value of the total equity of such entity and (b) the debt of such entity and its subsidiaries (including Borrower and Mezzanine Borrowers) on a consolidated basis, inclusive of underlying property level debt (“Total Debt”)) of not less than $3,000,000,000 and (ii) has leverage (i.e., the ratio of (A) Total Debt to (B) the sum of Total Debt and Equity) of not greater than seventy-five percent (75%).

    
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“Qualified Replacement Guarantor” shall mean a Person who (i) has a net worth of $400,000,000 (exclusive of the Properties) and (ii) is delivering to Lender a replacement limited recourse guaranty in form and substance substantially identical to the Guaranty and a replacement environmental indemnity substantially identical to the Environmental Indemnity, in each instance, in accordance with the terms and conditions hereof.
“Qualified Transferee” shall mean a Person who (i) has net worth of at least $450,000,000 (exclusive of the Properties), (ii) directly or indirectly owns and operates assisted living facilities, independent living facilities, medical office buildings and Long-Term Acute Care Hospitals worth at least $2,000,000,000 (exclusive of the Properties), provided that this clause (ii) shall not apply if such Person engages one or more Unaffiliated Qualified Managers in accordance with the terms and conditions hereof to manage the Properties and (iii) has not been convicted of, or been indicted for a felony criminal offense, has not been adjudicated guilty of fraud, racketeering or moral turpitude in connection with a governmental investigation and has not been subject to a bankruptcy or insolvency action against it.
“Rate Cap Purchase Date” shall mean a date not later than four (4) Business Days following the Closing Date (but in all instances prior to a Securitization (as defined in the Mortgage Loan Agreement)).
“Rating Agency” shall mean S&P, Moody’s, Fitch, Kroll Bond Rating Agency, Inc., Morningstar Credit Ratings, LLC, DBRS, Inc. or any other nationally-recognized statistical rating agency which has assigned a rating to the Securities (and any successor to any of the foregoing) in connection with and/or in anticipation of any Securitization.
“Rating Agency Condition” shall be deemed to exist if (i) any Rating Agency fails to respond to any request for a Rating Agency Confirmation with respect to any applicable matter or otherwise elects in writing not to consider any applicable matter or (ii) Lender (or its Servicer) is not required to and/or elects not to obtain (or cause to be obtained) a Rating Agency Confirmation with respect to any applicable matter, in each case, pursuant to and in compliance with any pooling and servicing agreement(s) or similar agreement(s), in each case, relating to the servicing and/or administration of the Loan.
“Rating Agency Confirmation” shall mean (i) prior to a Securitization or if the Rating Agency Condition exists, that Lender has (in consultation with the Rating Agencies (if required by Lender)) approved the matter in question in writing based upon Lender’s commercially reasonable determination of applicable Rating Agency standards and criteria and (ii) from and after a Securitization (to the extent the Rating Agency Condition does not exist), a written affirmation from each of the Rating Agencies (obtained at Borrower’s sole cost and expense) that the credit rating of the Securities by such Rating Agency immediately prior to the occurrence of the event with respect to which such Rating Agency Confirmation is sought will not be qualified, downgraded or withdrawn as a result of the occurrence of such event, which affirmation may be granted or withheld in such Rating Agency’s sole and absolute discretion.  Notwithstanding the foregoing or any other provision hereof, if Lender has determined that there will not be, or that it is likely that there will not be, a Securitization, then all references to Rating Agency Confirmation shall mean that such 

    
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matter that requires such Rating Agency Confirmation shall be subject to Lender’s consent (such consent not to be unreasonably withheld, conditioned or delayed).
“Recipient” shall mean any Lender and after a Syndication, Agent, as applicable.
“Register” shall have the meaning set forth in Section 11.8(a)(viii) hereof.
“Registrar” shall have the meaning set forth in Section 11.7 hereof.
“Registration Statement” shall have the meaning set forth in Section 11.2 hereof.
“Regulation AB” shall mean Regulation AB under the Securities Act and the Exchange Act, as such Regulation may be amended from time to time.
“Reimbursement Contribution” shall have the meaning set forth in Section 17.19 hereof.
“Related Loan” shall mean a loan to an Affiliate of Borrower or secured by a Related Property, that is included in a Securitization with the Loan (or any portion thereof or interest therein).
“Related Party” shall have the meaning set forth in Section 13.1 hereof.
“Related Property” shall mean a parcel of real property, together with improvements thereon and personal property related thereto, that is “related” within the meaning of the definition of Significant Obligor, to any Individual Property.
“Release” shall have the meaning set forth in Section 2.10 hereof.
“Release Date” shall mean the earlier to occur of (i) the third anniversary of the Closing Date and (ii) the date that is two (2) years from the “startup day” (within the meaning of Section 860G(a)(9) of the Code) of the REMIC Trust established in connection with the last Securitization involving any portion of or interest in the Mortgage Loan.
“Release Notice Date” shall have the meaning set forth in Section 2.10 hereof.
“Release Price” shall mean, with respect to any Individual Property or the applicable Collateral related thereto, an amount equal to 115% of the Allocated Loan Amount with respect to such Individual Property or such Collateral; provided, that, with respect to the sale of the Individual Property owned by G&E HC REIT II Charlottesville SNF, LLC and located in Charlottesville, Virginia in accordance with the terms and conditions of this Agreement to the extent that the applicable Tenant at such Individual Property exercises its purchase option with respect to such Individual Property, the Release Price solely with respect to such Individual Property shall mean an amount equal to 100% of such Individual Property’s Allocated Loan Amount.
“Released Collateral” shall have the meaning set forth in Section 2.10 hereof.
“Released Property” shall have the meaning set forth in the Mortgage Loan Agreement.

    
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“REMIC Opinion” shall mean, as to any matter, an opinion as to the compliance of such matter with applicable REMIC Requirements, if any (which such opinion shall be, in form and substance and from a provider, in each case, reasonably acceptable to Lender and acceptable to the Rating Agencies).
“REMIC Requirements” shall mean any applicable legal requirements relating to any REMIC Trust (including, without limitation, those relating to the continued treatment of the Loan (or the applicable portion thereof and/or interest therein) as a “qualified mortgage” held by such REMIC Trust, the continued qualification of such REMIC Trust as such under the Code, the non-imposition of any tax on such REMIC Trust under the Code (including, without limitation, taxes on “prohibited transactions and “contributions”) and any other constraints, rules and/or other regulations and/or requirements relating to the servicing, modification and/or other similar matters with respect to the Loan (or any portion thereof and/or interest therein) that may now or hereafter exist under applicable legal requirements (including, without limitation under the Code)).
“REMIC Trust” shall mean (i) any “real estate mortgage investment conduit” within the meaning of Section 860D of the Code, or (ii) any similar trust or Person (including, without limitation, any grantor trust), in each case that holds any interest in all or any portion of the Loan.
“Rent Roll” shall have the meaning set forth in Section 3.18 hereof.
“Rents” shall have the meaning set forth in the Security Instrument.
“Replacement Interest Rate Cap Agreement” shall have the meaning set forth in Section 2.8(c) hereof.
“Reporting Failure” shall have the meaning set forth in Section 4.12 hereof.
“Required Financial Item” shall have the meaning set forth in Section 4.12 hereof.
“Required Rating” means (i) a rating of not less than “A-1” (or its equivalent) from each of the Rating Agencies if the term of the applicable Letter of Credit is no longer than three (3) months or if the term of the applicable Letter of Credit is in excess of three (3) months, a rating of not less than “AA-” (or its equivalent) from each of the Rating Agencies or (ii) such other rating with respect to which Lender shall have received a Rating Agency Confirmation.
“Reserve Accounts” shall mean any reserve or escrow account established by this Agreement or the other Loan Documents (but specifically excluding the Cash Management Account, the Restricted Account, the Debt Service Account and the Reserve Accounts (each as defined in the Mortgage Loan Agreement).
“Reserve Funds” shall mean any reserve or escrow funds established by this Agreement or the other Loan Documents.
“Reserve Percentage” shall mean the rates (expressed as a decimal) of reserve requirements applicable to Lender in respect of the Loan on the date two (2) London Business Days prior to the beginning of the applicable Interest Accrual Period (including, without limitation, basic, 

    
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supplemental, marginal and emergency reserves) under any regulations of any Governmental Authority as now and from time to time hereafter in effect, dealing with reserve requirements prescribed for Eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board of Governors of the Federal Reserve System) (or against any other category of liabilities which includes deposits by reference to which LIBOR is determined or against any category of extensions of credit or other assets which includes loans by a non United States office of a depository institution to United States residents or loans which charge interest at a rate determined by reference to such deposits).  The determination of the Reserve Percentage shall be based on the assumption that Lender funded 100% of the Loan in the interbank Eurodollar market.  In the event of any change in the rate of such Reserve Percentage during an Interest Accrual Period, or any variation in such requirements based upon amounts or kinds of assets or liabilities, or other factors, including, without limitation, the imposition of Reserve Percentages, or differing Reserve Percentages, on one or more but not all of the holders of the Loan or any participation therein, Lender may use any reasonable averaging and/or attribution methods which it deems appropriate and practical for determining the rate of such Reserve Percentage which shall be used in the computation of the Reserve Percentage.  Lender’s computation of the Reserve Percentage shall be conclusive and binding on Borrower for all purposes, absent manifest error.
“Resident Account” shall mean any account payable by any Resident Payor in respect of any Lease.
“Resident Payor” shall mean any resident or other Person occupying any Non-MOB Facility pursuant to an admission agreement, services agreement or residency agreement and responsible for making payment of any Resident Account.
“Responsible Officer” means with respect to a Person, the chairman of the board, president, chief operating officer, chief legal officer, chief financial officer, secretary, treasurer, executive vice president or vice president of such Person or such other officer of such Person reasonably acceptable to Lender.
“Restoration” shall mean, following the occurrence of a Casualty or a Condemnation, the repair and restoration of any Individual Property (or applicable portion thereof) as nearly as possible to the condition such Individual Property (or applicable portion thereof) was in immediately prior to such Casualty or Condemnation, with such alterations as may be reasonably approved by Lender.
“Restricted Account” shall have the meaning set forth in the Mortgage Loan Agreement.
“Restricted Account Agreement” shall have the meaning set forth in the Mortgage Loan Agreement.
“Restricted Party” shall have the meaning set forth in Section 6.1 hereof.
“RIDEA Facility” shall mean, individually and/or collectively, any Non-MOB Facility leased to and operated by an Operating Lessee and set forth on Schedule XIII.
“Sale or Pledge” shall have the meaning set forth in Section 6.1 hereof.

    
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“Satisfactory Search Results” shall mean the results of Lender’s customary “know your customer”, credit history check, litigation, lien, bankruptcy, judgment and other similar searches with respect to the applicable transferee and its applicable affiliates that control the applicable transferee and/or have a twenty percent (20%) or greater direct or indirect interest in such transferee, in each case, (i) revealing no matters which would have a Material Adverse Effect and (ii) yielding results which are otherwise acceptable to Lender in its reasonable discretion.  Borrower shall pay all of Lender’s out of pocket costs, fees and expenses in connection with the foregoing and, notwithstanding the foregoing, no such search results shall constitute “Satisfactory Search Results” until such costs, fees and expenses are paid in full.
“Scheduled Defeasance Payments” shall mean scheduled payments of interest and principal hereunder (with respect to a Total Defeasance) and under the Defeased Note (with respect to a Partial Defeasance), in each case, for all Monthly Payment Dates occurring after the Total Defeasance Date or Partial Defeasance Date (as applicable) and up to and including the end of the Interest Accrual Period related to the Prepayment Release Date (assuming the Fixed Rate Component in the aggregate or the Defeased Note (as applicable) is prepaid in full as of such Prepayment Release Date and including the outstanding principal balance and accrued interest on the aggregate amount of the Fixed Rate Component or Defeased Note (as applicable) as of such Prepayment Release Date), and all payments required after the Total Defeasance Date or Partial Defeasance Date (as applicable), if any, under the Loan Documents for servicing fees, rating surveillance charges (to the extent applicable) and other similar charges.
“Secondary Market Transaction” shall have the meaning set forth in Section 11.1 hereof.
“Section 2.13 Taxes” shall mean all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
“Securities” shall have the meaning set forth in Section 11.1 hereof.
“Securities Act” shall mean the Securities Act of 1933, as amended.
“Securitization” shall have the meaning set forth in Section 11.1 hereof.
“Security Agreement” shall mean a pledge and security agreement in form and substance satisfying the Prudent Lender Standard pursuant to which Borrower grants Lender a perfected, first priority security interest in the Defeasance Collateral Account and the Total Defeasance Collateral or the Partial Defeasance Collateral (as applicable).
“Security Instrument” and “Security Instruments” shall have the meaning set forth in the Mortgage Loan Agreement.
“Self-Management Conditions” shall have the meaning set forth in the Mortgage Loan Agreement.

    
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“Servicer” shall have the meaning set forth in Section 11.4 hereof.
“Severed Loan Documents” shall have the meaning set forth in Article 10 hereof.
“Significant Obligor” shall have the meaning set forth in Item 1101(k) of Regulation AB under the Securities Act.
“Single Purpose Entity” shall mean an entity which has (unless it has received prior consent to do otherwise from Lender, and if a Securitization has occurred, unless it has obtained a Rating Agency Confirmation) at all times complied with the provisions of Article 5 hereof.
“Skilled Nursing Facility” shall mean a residential facility that provides short-term and long-term custodial care, skilled nursing and rehabilitation services.
“Social Security Act” shall mean 42 U.S.C. 401 et seq. as enacted in 1935, and amended, restated or otherwise supplemented thereafter from time to time and all rules and regulations promulgated thereunder.
“Special Member” is defined in Section 5.1 hereof.
“SPE Component Entity” shall have the meaning set forth in Section 5.1 hereof.
“Sponsor” shall mean Northstar Realty Finance Corp., a Delaware corporation.
“S&P” shall mean Standard & Poor’s Ratings Services.
“State” shall mean the applicable state in which the applicable Individual Property or the Collateral, as applicable, or any part of either of the foregoing is located.
“Strike Rate” shall mean (i) with respect to the period from the Closing Date through the Floating Rate Component Initial Maturity Date, a percentage rate equal to four and three-quarters percent (4.75%) and (ii) with respect to any Floating Rate Component Extension Period, the lower of (a) a percentage rate equal to five and one-quarters percent (5.25%) and (b) a percentage rate equal to a percentage rate per annum which, when added to the LIBOR Spread, would yield a Debt Service Coverage Ratio of at least 1.20:1.00.
“Sublease” shall have the meaning set forth in the Mortgage Loan Agreement.
“Subordination of Management Agreement” shall mean, individually and/or collectively, as the context may require, those certain Subordinations of Management Agreement (Mezzanine A) dated as of the date hereof by Mortgage Borrower and Borrower to Lender and acknowledged and consented to by Manager, as the same may be amended, restated, replaced, extended, renewed, supplemented or otherwise modified from time to time and any subordination of management agreement by Mortgage Borrower and Borrower to Lender and acknowledged and consented to by any New Manager entered into in accordance with the terms and conditions of the Loan Documents and in substantially the same form as such Subordination of Management Agreement (with such changes thereto requested by New Manager and reasonably satisfactory to Lender), as the same 

    
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may be amended, restated, replaced, extended, renewed, supplemented or otherwise modified from time to time.
“Sub-Management Agreement” shall mean, individually and/or collectively, as the context may require, each sub-management agreement entered into by and between Manager and the applicable Sub-Manager, pursuant to which Sub-Manager is to provide sub-management and other services with respect to the Properties or any portion thereof, as the same may be amended, restated, replaced, extended, renewed, supplemented or otherwise modified from time to time.
“Sub-Manager” shall have the meaning set forth in the Mortgage Loan Agreement.
“Substitute Cash Management Accounts” shall have the meaning set forth in Section 9.1 hereof.
“Substitute Reserves” shall have the meaning set forth in Section 8.1 hereof.
“Subtenant” shall have the meaning set forth in the Mortgage Loan Agreement.
“Successor Borrower” shall have the meaning set forth in Section 2.12 hereof.
“Survey” shall mean, individually and/or collectively (as the context may require), each survey of each Individual Property certified and delivered to Lender in connection with the closing of the Loan.
“Syndication” shall have the meaning set forth in Section 11.8(a)(i) hereof.
“Taxes” shall mean all taxes, assessments, water rates, sewer rents, and other governmental impositions, including, without limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Land, now or hereafter levied or assessed or imposed against the Property or any part thereof.
“Tenant” shall mean any Person (other than any Mortgage Borrower and other than a Resident Payor) leasing, subleasing or otherwise occupying any portion of the Property under a Lease.
“Termination Fee” shall have the meaning set forth in Section 4.14 hereof.
“Title Insurance Policy” shall have the meaning set forth in the Mortgage Loan Agreement.
“Total Defeasance Collateral” shall mean Government Securities, which provide payments (i) on or prior to, but as close as possible to, the Business Day immediately preceding all Monthly Payment Dates and other scheduled payment dates, if any, hereunder after the Total Defeasance Date and up to and including the Prepayment Release Date (assuming the Fixed Rate Component in the aggregate is required to be prepaid in full as of such Prepayment Release Date), and (ii) in amounts equal to or greater than the Scheduled Defeasance Payments relating to such Monthly Payment Dates and other scheduled payment dates.

    
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“Total Defeasance Date” shall have the meaning set forth in Section 2.12 hereof.
“Total Defeasance Event” shall have the meaning set forth in Section 2.12 hereof.
“Trigger Period” shall have the meaning set forth in the Mortgage Loan Agreement.
“Triple Net Leased Property” shall mean an Individual Property that is subject to a Lease with a single Tenant, which lease provides that such Tenant is obligated to pay all Taxes and Other Charges, insurance and maintenance with respect to such Individual Property in addition to all other sums payable by such Tenant thereunder.
“UCC” or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State.
“Unaffiliated Qualified Manager” shall have the meaning set forth in the Mortgage Loan Agreement.
“Undefeased Note” shall have the meaning set forth in Section 2.12 hereof.
“Underwriter Group” shall have the meaning set forth in Section 11.2 hereof.
“Updated Information” shall have the meaning set forth in Section 11.1 hereof.
“U.S. Obligations” shall mean direct full faith and credit obligations of the United States of America that are not subject to prepayment, call or early redemption.
“U.S. Person” shall mean any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.
“U.S. Tax Compliance Certificate” shall have the meaning set forth in Section 2.13(g) hereof.
“Waived Cash Management Accounts” shall have the meaning set forth in Section 9.1 hereof.
“Waived Cash Management Provisions” shall have the meaning set forth in Section 9.1 hereof.
“Waived Reserve Funds” shall have the meaning set forth in Section 8.1 hereof.
“Withholding Agent” shall mean Borrower and, in the event of Syndication, Agent.
“Yield Maintenance Premium” shall mean an amount equal to the greater of (a) an amount equal to 1% of the amount prepaid; or (b) an amount equal to the present value as of the date on which the prepayment is made of the Calculated Payments (as defined below) from the date on which the prepayment is made through the Maturity Date determined by discounting such payments at the Discount Rate (as defined below).  As used in this definition, the term “Calculated Payments” 

    
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shall mean the monthly payments of interest only which would be due based on the principal amount of the Fixed Rate Component being prepaid on the date on which prepayment is made and assuming an interest rate per annum equal to the difference (if such difference is greater than zero) between (y) the Fixed Interest Rate and (z) the Yield Maintenance Treasury Rate (as defined below).  As used in this definition, the term “Discount Rate” shall mean the rate which, when compounded semi-annually, is equivalent to the Yield Maintenance Treasury Rate (as defined below), when compounded semi-annually.  As used in this definition, the term “Yield Maintenance Treasury Rate” shall mean the yield calculated by Lender by the linear interpolation of the yields, as reported in the Federal Reserve Statistical Release H.15-Selected Interest Rates under the heading “U.S. Government Securities/Treasury Constant Maturities” for the week ending prior to the date on which prepayment is made, of U.S. Treasury Constant Maturities with maturity dates (one longer or one shorter) most nearly approximating the Maturity Date.  In the event Release H.15 is no longer published, Lender shall select a comparable publication to determine the Yield Maintenance Treasury Rate.  In no event, however, shall Lender be required to reinvest any prepayment proceeds in U.S. Treasury obligations or otherwise.  Lender shall notify Borrower of the amount and the basis of determination of the required prepayment consideration.  Lender’s calculation of the Yield Maintenance Premium shall be conclusive absent manifest error.
"Zoning Reports" shall mean those certain planning and zoning reports provided to Lender in connection with the closing of the Loan.
Section 1.2.    Principles of Construction.
All references to sections and schedules are to sections and schedules in or to this Agreement unless otherwise specified.  All uses of the word “including” shall mean “including, without limitation” unless the context shall indicate otherwise.  Unless otherwise specified, 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.  Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and plural forms of the terms so defined.  References herein to “the Property or any portion thereof” and words of similar import shall be deemed to refer, as applicable, to any portion of the Property taken as a whole (including any Individual Property) and any portion of any Individual Property.  Capitalized terms used but not defined in this Agreement shall have the meaning set forth for such terms in the Mortgage Loan Agreement.
With respect to references to the Mortgage Loan Documents (including without limitation terms defined by cross-reference to the Mortgage Loan Documents), such references shall refer to the Mortgage Loan Documents as in effect on the Closing Date (and any such defined terms shall have the definitions set forth in the Mortgage Loan Documents as of the Closing Date) and no amendments, restatements, replacements, supplements, waivers or other modifications to or of the Mortgage Loan Documents shall have the effect of changing such references (including without limitation any such definitions) for the purposes of this Agreement.
Notwithstanding anything stated herein to the contrary, any provisions in this Agreement cross-referencing or incorporating by reference provisions of the Mortgage Loan Documents shall 

    
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be effective notwithstanding the termination of the Mortgage Loan Documents by payment in full of the Mortgage Loan or otherwise.
To the extent that any terms, provisions or definitions of any Mortgage Loan Documents that are incorporated herein by reference are incorporated into the Mortgage Loan Documents by reference to any other document or instrument, such terms, provisions or definitions that are incorporated herein by reference shall at all times be deemed to incorporate each such term, provision and definition of the applicable other document or instrument as the same is set forth in such other document or instrument as of the Closing Date, without regard to any amendments, restatements, replacements, supplements, waivers or other modifications to or of such other document or instrument occurring after the Closing Date.
The words “Borrower shall cause” or “Borrower shall not permit” (or words of similar meaning) shall mean “Borrower shall cause Mortgage Borrower to” or “Borrower shall not permit Mortgage Borrower to”, as the case may be, to so act or not to so act, as applicable.
ARTICLE 2. 
 
GENERAL TERMS
Section 2.1.    Loan Commitment; Disbursement to Borrower.  Except as expressly and specifically set forth herein, Lender has no obligation or other commitment to loan any funds to Borrower or otherwise make disbursements to Borrower.  Borrower hereby waives any right Borrower may have to make any claim to the contrary.
Section 2.2.    The Loan.  Subject to and upon the terms and conditions set forth herein, Lender hereby agrees to make and Borrower hereby agrees to accept the Loan on the Closing Date.
Section 2.3.    Disbursement to Borrower.  Borrower may request and receive only one borrowing hereunder in respect of the Loan and any amount borrowed and repaid hereunder in respect of the Loan may not be re-borrowed.
Section 2.4.    The Note and the Other Loan Documents.  The Loan shall be evidenced by the Note and this Agreement and secured by this Agreement and the other Loan Documents.
Section 2.5.    Interest Rate.
(a)    Generally.  Interest on the outstanding principal balance of each Note shall accrue from the Closing Date at the Interest Rate until repaid in accordance with the applicable terms and conditions hereof.
(b)    Determination of Interest Rate.
(i)    The Interest Rate with respect to the Floating Rate Component shall be: (A) the Adjusted LIBOR Rate plus the LIBOR Spread with respect to the applicable Interest Accrual Period for a LIBOR Loan or (B) the Prime Rate plus the Prime Rate Spread for a Prime Rate Loan if the Floating Rate Component is converted to a Prime Rate Loan pursuant 

    
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to the provisions hereof.  Notwithstanding any provision of this Agreement to the contrary, in no event shall Borrower have the right to convert a LIBOR Loan to a Prime Rate Loan.
(ii)    Subject to the terms and conditions hereof, the Floating Rate Component shall be a LIBOR Loan and Borrower shall pay interest on the outstanding principal amount of the Floating Rate Component at the Interest Rate specified in Section 2.5(b)(i) for the applicable Interest Accrual Period.  Any change in the rate of interest hereunder due to a change in the Interest Rate shall become effective as of the opening of business on the first day on which such change in the Interest Rate shall become effective.  Each determination by Lender of the Interest Rate shall be conclusive and binding for all purposes, absent manifest error.
(iii)    In the event that Lender shall have determined that by reason of circumstances affecting the interbank Eurodollar market, adequate and reasonable means do not exist for ascertaining LIBOR, then Lender shall forthwith give notice by telephone of such determination, confirmed in writing, to Borrower at least one (1) day prior to the last day of the related Interest Accrual Period.  If such notice is given, the related outstanding LIBOR Loan shall be converted, on the last day of the then current Interest Accrual Period, to a Prime Rate Loan.  From and after a Securitization, Lender shall only convert the Loan from a LIBOR Loan to a Prime Rate Loan if the first sentence of this clause (iii) applies and if the Servicer with respect to the Loan has converted floating rate loans serviced by Servicer and substantially similar to the Loan from loans bearing interest at a LIBOR rate to loans bearing interest at the Prime Rate.
(iv)    If, pursuant to the terms hereof, any portion of the Floating Rate Component has been converted to a Prime Rate Loan and Lender shall determine (which determination shall be conclusive and binding upon Borrower absent manifest error) that the event(s) or circumstance(s) which resulted in such conversion shall no longer be applicable, Lender shall give notice by telephone of such determination, confirmed in writing, to Borrower at least one (1) day prior to the last day of the related Interest Accrual Period.  If such notice is given, the related outstanding Prime Rate Loan shall be converted to a LIBOR Loan on the last day of the then current Interest Accrual Period.
(v)    Intentionally Omitted.
(vi)    If any requirement of law or any change therein or in the interpretation or application thereof, in each case, effected after the date hereof, shall hereafter make it unlawful for Lender to make or maintain a LIBOR Loan as contemplated hereunder then (A) the obligation of Lender hereunder to make a LIBOR Loan or to convert a Prime Rate Loan to a LIBOR Loan shall be canceled forthwith and (B) any outstanding LIBOR Loan shall be converted automatically to a Prime Rate Loan on the last day of the then current Interest Accrual Period or within such earlier period as required by law.  Borrower hereby agrees to promptly pay to Lender, upon demand, any additional amounts necessary to compensate Lender for any reasonable costs incurred by Lender in making any conversion in accordance with this Agreement, including, without limitation, any interest or fees payable by Lender to lenders of funds obtained by it in order to make or maintain the LIBOR Loan 

    
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hereunder in each case if applicable and without duplication of any other amount payable by Borrower hereunder.  Lender’s notice of such costs, as certified to Borrower, shall be conclusive absent manifest error.
(vii)    In the event that any change in any requirement of law or in the interpretation or application thereof, or compliance by Lender with any request or directive (whether or not having the force of law) hereafter issued from any central bank or other Governmental Authority:
(A)    shall hereafter impose, modify or hold applicable any reserve, capital adequacy, special deposit, compulsory loan or similar requirement against assets held by, or deposits or other liabilities in or for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of Lender which is not otherwise included in the determination of LIBOR hereunder;
(B)    shall hereafter have the effect of reducing the rate of return on Lender’s capital as a consequence of its obligations hereunder to a level below that which Lender could have achieved but for such adoption, change or compliance (taking into consideration Lender’s policies with respect to capital adequacy) by any amount deemed by Lender to be material; 
(C)    shall hereafter impose on Lender any other condition and the result of any of the foregoing is to increase the cost to Lender of making, renewing or maintaining loans or extensions of credit or to reduce any amount receivable hereunder;
(D)    shall hereafter subject Lender to any Section 2.13 Taxes (other than (i) Indemnified Taxes, (ii) Section 2.13 Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (iii) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or
(E)    shall hereafter impose on Lender any other condition;
and the result of any of the foregoing is to increase the cost to Lender of making, renewing or maintaining loans or extensions of credit or to reduce any amount receivable hereunder, then, in any such case, Borrower shall, without duplication of any other amounts payable by Borrower hereunder, promptly pay Lender, upon demand, any additional amounts necessary to compensate Lender for such additional cost or reduced amount receivable (in each case to the extent relating to the Loan) as determined by Lender in its reasonable discretion.  If Lender becomes entitled to claim any additional amounts pursuant to this subsection, Lender shall provide Borrower with not less than thirty (30) days notice specifying in reasonable detail the event by reason of which it has become so entitled and the additional amount required to fully compensate Lender for such additional cost or reduced amount; provided that Borrower shall not be required to compensate Lender pursuant to this subsection for any increased costs or reductions incurred more than one 

    
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hundred eighty (180) days prior to the date that Lender notifies Borrower of the event giving rise to thereto and Lender’s intention to claim compensation therefor.  A certificate as to any additional costs or amounts payable pursuant to the foregoing sentence submitted by Lender to Borrower shall be conclusive in the absence of manifest error.  This provision shall survive payment of the Note and the satisfaction of all other obligations of Borrower under this Agreement and the other Loan Documents.
(viii)    Borrower agrees to indemnify Lender and to hold Lender harmless from any actual loss or expense (but excluding lost profits, loss of opportunity or special, punitive or consequential damages) which Lender sustains or incurs as a consequence of (A) any default by Borrower in payment of the principal of or interest on a LIBOR Loan, including, without limitation, any such loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain a LIBOR Loan hereunder, (B) any prepayment (whether voluntary or mandatory) of the LIBOR Loan on a day that is not a Monthly Payment Date, including, without limitation, such loss or expense arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain the LIBOR Loan hereunder and (C) the conversion (for any reason whatsoever, whether voluntary or involuntary) of the Interest Rate with respect to the Floating Rate Component from the Interest Rate specified in Section 2.5(b)(i) for the Floating Rate Component to the Prime Rate plus the Prime Rate Spread with respect to any portion of the outstanding principal amount of the Loan then bearing interest based on the Adjusted LIBOR Rate on a date other than a Monthly Payment Date, including, without limitation, such loss or expenses arising from interest or fees payable by Lender to lenders of funds obtained by it in order to maintain a LIBOR Loan hereunder (the amounts referred to in clauses (A), (B) and (C) are herein referred to collectively as the “Breakage Costs”); provided, however, Borrower shall not indemnify Lender from any loss or expense arising from Lender’s willful misconduct or gross negligence.  This provision shall survive payment of the Note in full and the satisfaction of all other obligations of Borrower under this Agreement and the other Loan Documents.
If Lender requests compensation under subsection (vii) above, or if Borrower is required to pay any additional amount to Lender or any Governmental Authority for the account of any Lender pursuant to subsection (v) above, then Lender shall use reasonable efforts to designate a different lending office for funding or booking the Loan hereunder or to assign its rights and obligations hereunder to another of its offices or branches, if, in the reasonable judgment of Lender, such designation or assignment (i) would eliminate or reduce amounts payable in the future and (ii) would not subject Lender to any material unreimbursed cost or expense and would not otherwise be disadvantageous to Lender in any material respect.  
(c)    Default Rate.  In the event that, and for so long as, any Event of Default shall have occurred and be continuing, (i) the then outstanding principal balance of the Loan and, to the extent permitted by applicable law, overdue interest in respect of the Loan, shall each accrue interest at the Default Rate, calculated from the date the Event of Default occurred, (ii) without limitation of any rights or remedies contained herein and/or in any other Loan Document, any interest accrued at the Default Rate in excess of the interest component of the Monthly Debt Service Payment Amount shall, to the extent not already paid and/or due and payable hereunder, be due and payable on each 

    
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Monthly Payment Date and (iii) all references herein and/or in any other Loan Document to the “Interest Rate”, the “Fixed Interest Rate” and/or the “Floating Interest Rate” shall be deemed to refer to the Default Rate.
(d)    Interest Calculation.  Interest on the outstanding principal balance of each Note shall be calculated by multiplying (a) the actual number of days elapsed in the period for which the calculation is being made by (b) a daily rate based on a three hundred sixty (360) day year (that is, the Interest Rate or the Default Rate, as then applicable, expressed as an annual rate divided by 360) by (c) the outstanding principal balance of each such Note.  The accrual period for calculating interest due on each Monthly Payment Date shall be the Interest Accrual Period in which the related Monthly Payment Date occurs.  Borrower understands and acknowledges that such interest accrual requirement results in more interest accruing on the Loan than if either a thirty (30) day month and a three hundred sixty (360) day year or the actual number of days and a three hundred sixty-five (365) day year were used to compute the accrual of interest on the Loan.
(e)    Usury Savings.  This Agreement and the other Loan Documents are subject to the express condition that at no time shall Borrower be required to pay interest on the principal balance of the Loan at a rate which could subject Lender to either civil or criminal liability as a result of being in excess of the Maximum Legal Rate.  If by the terms of this Agreement or the other Loan Documents, Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of the Maximum Legal Rate, the Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to the Maximum Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been payments in reduction of principal and not on account of the interest due hereunder.  All sums paid or agreed to be paid to Lender for the use, forbearance, or detention of the sums due under the Loan, shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal Rate from time to time in effect and applicable to the Loan for so long as the Loan is outstanding.
Section 2.6.    Loan Payments.
(a)    Borrower shall make a payment to Lender of interest only on each Note on the Closing Date for the period from (and including) the Closing Date through (and including) the fourteenth (14th) day of either (i) the month in which the Closing Date occurs (if the Closing Date occurs on or before the fourteenth (14th) day of such month, or (ii) the month following the month in which the Closing Date occurs (if the Closing Date occurs on or after the fifteenth (15th) day of the then current calendar month; provided, however, if the Closing Date is the fourteenth (14th) day of a calendar month, no such separate payment of interest shall be due.  Borrower shall make a payment to Lender of interest in the amount of the Monthly Debt Service Payment Amount on the First Monthly Payment Date and on each Monthly Payment Date occurring thereafter to and including the Maturity Date.  
(b)    Reserved.

    
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(c)    Borrower shall pay to Lender on the Maturity Date the outstanding principal balance of the Loan, all accrued and unpaid interest and all other amounts due hereunder and under the Note, the Pledge Agreement and the other Loan Documents.
(d)    If any principal, interest or any other sum due under the Loan Documents, other than the payment of principal due on the Maturity Date, is not paid by Borrower on the date on which it is due, Borrower shall pay to Lender upon demand an amount equal to the lesser of five percent (5%) of such unpaid sum or the maximum amount permitted by applicable law in order to defray the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent payment.  Any such amount shall be secured by the Pledge Agreement and the other Loan Documents.
(e)    
(i)    Except as otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender not later than 3:00 P.M., New York City time, on the date when due and shall be made in lawful money of the United States of America in immediately available funds at Lender’s office, and any funds received by Lender after such time shall, for all purposes hereof, be deemed to have been paid on the next succeeding Business Day.
(ii)    Whenever any payment to be made hereunder or under any other Loan Document shall be stated to be due on a day which is not a Business Day, the due date thereof shall be deemed to be the immediately preceding Business Day.
(iii)    All payments required to be made by Borrower hereunder or under the Note or the other Loan Documents shall be made irrespective of, and without deduction for, any setoff, claim or counterclaim and shall be made irrespective of any defense thereto.
Section 2.7.    Prepayments.
(a)    Voluntary Prepayment.  Except as provided in this Section 2.7, Section 2.10 hereof and Section 8.10 of the Mortgage Loan Agreement, Borrower shall not have the right to voluntarily prepay the Loan in whole or in part.
(b)    Borrower may, provided no Event of Default has occurred and is continuing, at its option and upon prior notice to Lender as set forth herein, prepay (I) the Floating Rate Component in whole or in part on any Business Day or (II) on and after the Prepayment Release Date (and so long as the Floating Rate Component has been prepaid in full), the Fixed Rate Component in whole or in part on any Business Day; provided that (i) the Mortgage Loan and each Mezzanine Loan shall be simultaneously prepaid on a pro-rata basis with the Loan in connection with such prepayment in accordance with the terms and conditions of Section 2.7(b) of the Mortgage Loan Agreement and each respective Mezzanine Loan Agreement and (ii) such prepayment is accompanied by payment of the Breakage Costs (if any), the Prepayment Premium and the applicable Interest Shortfall.  Lender shall not be obligated to accept any prepayment pursuant to this Section 2.7(b) unless it is accompanied by payment of the Breakage Costs, the Prepayment Premium and the 

    
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applicable Interest Shortfall (if any) due in connection therewith.  In the event that Borrower shall prepay the Floating Rate Component or the Fixed Rate Component in accordance with the terms and conditions of this Section 2.7(b) on a date from (and including) the tenth (10th) day of a calendar month through (and including) the fourteenth (14th) day of a calendar month, Borrower shall pay to Lender (together with all other amounts owed to Lender pursuant to this Section 2.7(b)) the Interest Shortfall estimated by Lender to be due in connection with such prepayment; provided, that, once the Interest Rate for the next occurring Interest Accrual Period can be determined, Lender shall calculate the actual Interest Shortfall required to be paid by Borrower for such prepayment and (x) if the Interest Shortfall paid to Lender is in excess of the amount required to be paid pursuant to this Section 2.7(b), Lender shall promptly return to Borrower such excess amount and (y) if the Interest Shortfall is less than the amount required to be paid to Lender pursuant to this Section 2.7(b), Borrower shall pay to Lender the amount of such deficiency within three (3) Business Days of notice to Borrower from Lender.  As a condition to any voluntary prepayment pursuant to this Section 2.7(b), Borrower shall give Lender written notice (a “Prepayment Notice”) of its intent to prepay, which notice must be given at least thirty (30) days prior to the Business Day upon which prepayment is to be made and must specify the Business Day on which such prepayment is to be made.  Borrower hereby agrees that, in the event Borrower delivers a Prepayment Notice and fails to prepay the Floating Rate Component and/or the Fixed Rate Component, as applicable, in accordance with the Prepayment Notice and the terms of this Section 2.7(b), Borrower shall pay Lender all reasonable out-of-pocket costs and expenses incurred by Lender, including, without limitation, any Breakage Costs or similar expenses, as a result of such failure to prepay the Loan.
(c)    In addition to prepayments pursuant to Section 2.7(b), Borrower may, provided no Event of Default has occurred and is continuing, at its option and upon prior notice to Lender as set forth herein, prepay the Floating Rate Component in whole or in part on any Business Day in connection with the release of an Individual Property in accordance with the terms and conditions of Section 2.10 hereof in an amount not to exceed, in the aggregate with all other prepayments of the Floating Rate Component pursuant to this Section 2.7(c) and Section 2.10 hereof, the Permitted Prepayment Threshold without the payment of any Prepayment Premium; provided that (i) the Mortgage Loan and each Mezzanine Loan shall be simultaneously prepaid in connection with the release of such Individual Property with the Loan in accordance with the terms and conditions of Section 2.7(c) and Section 2.10 of the Mortgage Loan Agreement and each respective Mezzanine Loan Agreement and (ii) such prepayment is accompanied by payment of the Breakage Costs (if any) and the applicable Interest Shortfall.  Lender shall not be obligated to accept any prepayment pursuant to this Section 2.7(c) unless it is accompanied by payment of the Breakage Costs and the applicable Interest Shortfall due in connection therewith.  In the event that Borrower shall prepay the Floating Rate Component in accordance with the terms and conditions of this Section 2.7(c) on a date from (and including) the tenth (10th) day of a calendar month through (and including) the fourteenth (14th) day of a calendar month, Borrower shall pay to Lender (together with all other amounts owed to Lender pursuant to this Section 2.7(c)) the Interest Shortfall estimated by Lender to be due in connection with such prepayment; provided, that, once the Interest Rate for the next occurring Interest Accrual Period can be determined, Lender shall calculate the actual Interest Shortfall required to be paid by Borrower for such prepayment and (x) if the Interest Shortfall paid to Lender is in excess of the amount required to be paid pursuant to this Section 2.7(c), Lender shall promptly return to Borrower such excess amount and (y) if the Interest Shortfall is less than the 

    
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amount required to be paid to Lender pursuant to this Section 2.7(c), Borrower shall pay to Lender the amount of such deficiency within three (3) Business Days of notice to Borrower from Lender.  As a condition to any voluntary prepayment, Borrower shall give Lender a Prepayment Notice at least thirty (30) days prior to the Business Day upon which prepayment is to be made and must specify the Business Day on which such prepayment is to be made.  Borrower hereby agrees that, in the event Borrower delivers a Prepayment Notice and fails to prepay the Floating Rate Component in accordance with the Prepayment Notice and the terms of this Section 2.7(c), Borrower shall pay Lender all reasonable out-of-pocket costs and expenses incurred by Lender, including, without limitation, any Breakage Costs or similar expenses, as a result of such failure to prepay the Loan.
(d)    Liquidation Events; Mandatory Prepayment.  In the event of (i) any Casualty to all or any portion of a Property, (ii) any Condemnation of all or any portion of a Property, (iii) a Sale or Pledge of all or any portion of a Property in connection with, or as a result of, a foreclosure proceeding, (iv) any refinancing of a Property or the Mortgage Loan, or (v) the receipt by Mortgage Borrower of any excess proceeds realized under its owner’s title insurance policy after application of such proceeds by Mortgage Borrower to cure any title defect (each, a “Liquidation Event”), Borrower shall cause the related Net Liquidation Proceeds After Debt Service to be paid directly to Lender.  On each date on which Lender actually receives a distribution of Net Liquidation Proceeds After Debt Service, Lender shall apply such Net Liquidation Proceeds After Debt Service to the outstanding principal balance of the Loan in an amount up to the applicable Release Price relating to a Property or Properties subject to the Liquidation Event together with payment of any applicable Breakage Costs, Prepayment Premium (except in connection with a Casualty or Condemnation) and Interest Shortfall.  Any amounts of Net Liquidation Proceeds After Debt Service in excess of the applicable Release Price relating to a Property or Properties subject to the Liquidation Event shall be paid by Lender to Mezzanine B Lender.  Once Borrower has knowledge that a Liquidation Event has occurred, Borrower shall, or shall cause Mortgage Borrower to, promptly deliver written notice of such Liquidation Event to Lender.  Borrower shall be deemed to have knowledge of (i) a foreclosure sale on the date notice of such foreclosure sale is given and (ii) a refinancing of all or any portion of a Property, on the date on which a commitment for such refinancing has been entered into.  The provisions of this Section 2.7(d) shall not be construed to contravene in any manner the restrictions and other provisions regarding refinancing of the Mortgage Loan or the Sale or Pledge of the Properties (or any portion thereof) set forth in this Agreement (including, without limitation, in Section 2.10), the other Loan Documents and the Mortgage Loan Documents.  The Release Price with respect to any Individual Property subject to a prepayment in accordance with this Section 2.7(d) shall be reduced in an amount equal to the principal portion of such prepayment applied to the Loan. Notwithstanding the foregoing to the contrary, provided that no Event of Default has occurred and is continuing, there shall be no obligation to pay to Lender amounts that Mortgage Borrower is entitled to retain pursuant to Section 7.4(b)(vii) of the Mortgage Loan Agreement.
(e)    Prepayments After Default.  If concurrently with or after the occurrence and during the continuance of an Event of Default, payment of all or any part of the principal of the Loan is tendered by Borrower, a purchaser at foreclosure or any other Person, (i) such tender shall be deemed an attempt to circumvent the prohibition against prepayment set forth herein, and (ii) Borrower, such purchaser at foreclosure or other Person shall pay the Prepayment Premium with respect to the Floating Rate Component, the Default Yield Maintenance Premium with respect to the Fixed 

    
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Rate Component, the Breakage Costs and the Interest Shortfall, in addition to the outstanding principal balance, all accrued and unpaid interest and other amounts payable under the Loan Documents.  Notwithstanding anything to the contrary contained herein or in any other Loan Document, any prepayment of the Debt (after the occurrence and during the continuance of an Event of Default) shall be applied to the Debt in such order and priority as may be determined by Lender in its sole discretion.
(f)    Intentionally Omitted
(g)    Prepaying Mezzanine Borrower.  Provided no Event of Default shall then exist, Borrower and each Mezzanine Borrower (such Mezzanine Borrower, a “Prepaying Mezzanine Borrower”) may at its sole discretion, subject to the terms and conditions of the Loan Documents and the applicable Mezzanine Loan Documents, voluntarily prepay all or any portion of the Loan and the Mezzanine Loans (as applicable) that is not in connection with the release of an Individual Property or Properties (the “Prepaid Mezzanine Loan”) without a prepayment of the Mortgage Loan, provided that concurrently with such voluntary prepayment of the Prepaid Mezzanine Loan, Borrower and each other Mezzanine Borrower shall make a prepayment of the Loan and Mezzanine Loans, as applicable, in an amount determined by multiplying the outstanding principal balance of each such Loan and Mezzanine Loan, as applicable, by a fraction (1) the numerator of which is the portion of the Prepaid Mezzanine Loan being prepaid pursuant to the Loan Documents and applicable Mezzanine Loan Documents and (2) the denominator of which is the outstanding principal balance of the Prepaid Mezzanine Loan.
Section 2.8.    Interest Rate Cap Agreement.
(a)    Prior to or contemporaneously with the Rate Cap Purchase Date, Borrower shall enter into an Interest Rate Cap Agreement with a LIBOR strike rate equal to the Strike Rate.  The Interest Rate Cap Agreement (i) shall at all times be in a form and substance acceptable to Lender, (ii) shall at all times be with a Counterparty, (iii) shall at all times be for a period that ends on the last day of the Interest Accrual Period related to the then current Floating Rate Component Maturity Date, and (iv) shall at all times have a notional amount equal to or greater than the principal balance of the Floating Rate Component and shall at all times provide for the applicable LIBOR strike rate to be equal to the Strike Rate.  Borrower shall direct such Counterparty to deposit directly into the Cash Management Account any amounts due Borrower under such Interest Rate Cap Agreement so long as any portion of the Debt is outstanding, provided that the Debt shall be deemed to be outstanding if the Collateral is transferred by judicial or non-judicial foreclosure or assignment-in-lieu thereof.  Additionally, Borrower shall collaterally assign to Lender, pursuant to the Collateral Assignment of Interest Rate Cap Agreement, all of its right, title and interest in and to the Interest Rate Cap Agreement (and any replacements thereof), including, without limitation, its right to receive any and all payments under the Interest Rate Cap Agreement (and any replacements thereof), and Borrower shall, and shall cause Counterparty to, deliver to Lender a fully executed Interest Rate Cap Agreement (which shall, by its terms, authorize the assignment to Lender and require that payments be deposited directly into the Cash Management Account).
(b)    Borrower shall comply with all of its obligations under the terms and provisions of the Interest Rate Cap Agreement.  All amounts paid by the Counterparty under the Interest Rate 

    
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Cap Agreement to Borrower or Lender shall be deposited immediately into the Cash Management Account.  Borrower shall take all actions reasonably requested by Lender to enforce Lender’s rights under the Interest Rate Cap Agreement in the event of a default by the Counterparty and shall not waive, amend or otherwise modify any of its rights thereunder.
(c)    In the event of any downgrade, withdrawal or qualification of the rating of the Counterparty by any Rating Agency below the Minimum Counterparty Rating, Borrower shall (either pursuant to Section 2.8(e) below or otherwise) replace (or cause to be replaced) the Interest Rate Protection Agreement not later than ten (10) Business Days following receipt of notice of such downgrade, withdrawal or qualification with an Interest Rate Protection Agreement in form and substance reasonably satisfactory to Lender (and meeting the requirements set forth in this Section 2.8) (a “Replacement Interest Rate Cap Agreement”) from a Counterparty having a Minimum Counterparty Rating.
(d)    In the event that Borrower fails to purchase and deliver to Lender the Interest Rate Cap Agreement or fails to maintain the Interest Rate Cap Agreement in accordance with the terms and provisions of this Agreement, Lender may purchase the Interest Rate Cap Agreement and the cost incurred by Lender in purchasing such Interest Rate Cap Agreement shall be paid by Borrower to Lender with interest thereon at the Default Rate from the date such cost was incurred by Lender until such cost is reimbursed by Borrower to Lender.
(e)    Each Interest Rate Cap Agreement shall contain the following language or its equivalent: “In the event of any downgrade, withdrawal or qualification of the rating of the Counterparty below (a) a long-term unsecured debt rating of “A+” by S&P, which rating shall not include a “t” or otherwise reflect a termination risk or otherwise be qualified (or if S&P no longer rates any Counterparties the equivalent from DBRS (if rated by DBRS)); (b) either (i) a long-term senior unsecured debt rating of at least “A2” from Moody’s and a short-term unsecured debt rating of at least “P-1” from Moody’s which rating shall not include a “t” or otherwise reflect a termination risk or otherwise be qualified or (ii) if no short-term senior unsecured debt rating exists, a long-term unsecured debt rating of not less than “A1” by Moody’s which rating shall not include a “t” or otherwise reflect a termination risk or otherwise be qualified; and/or (c) a long-term unsecured debt rating of “A” (and not on Rating Watch Negative) by Fitch and a short-term unsecured debt rating of not less than “F-1” (and not on Rating Watch Negative) from Fitch, the Counterparty must, within ten (10) business days find a replacement Counterparty, at the Counterparty’s sole cost and expense, acceptable to each Rating Agency and Borrower; provided that, notwithstanding such a downgrade, withdrawal or qualification, unless and until the Counterparty transfers the Interest Rate Cap Agreement to a replacement Counterparty pursuant to the foregoing, the Counterparty will continue to perform its obligations under the Interest Rate Cap Agreement.  Failure to satisfy the foregoing shall constitute an “Additional Termination Event” as defined by Section 5(b)(v) of the ISDA Master Agreement, with the Counterparty as the “Affected Party.”
(f)    Borrower shall obtain and deliver to Lender an opinion from counsel (which counsel may be in house counsel for the Counterparty) for the Counterparty (upon which Lender and its successors and assigns may rely) which shall provide, in relevant part and subject to customary and other reasonably satisfactory qualifications, exceptions and assumptions, that:

    
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(i)    the Counterparty is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation and has the organizational power and authority to execute and deliver, and to perform its obligations under, the Interest Rate Cap Agreement;
(ii)    the execution and delivery of the Interest Rate Cap Agreement by the Counterparty, and any other agreement which the Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been and remain duly authorized by all necessary action and do not contravene any provision of its certificate of incorporation or by-laws (or equivalent organizational documents) or any law, regulation or contractual restriction binding on or affecting it or its property;
(iii)    all consents, authorizations and approvals required for the execution and delivery by the Counterparty of the Interest Rate Cap Agreement, and any other agreement which the Counterparty has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been obtained and remain in full force and effect, all conditions thereof have been duly complied with, and no other action by, and no notice to or filing with any governmental authority or regulatory body is required for such execution, delivery or performance; and
(iv)    the Interest Rate Cap Agreement, and any other agreement which the Counterparty has executed and delivered pursuant thereto, has been duly executed and delivered by the Counterparty and constitutes the legal, valid and binding obligation of the Counterparty, enforceable against the Counterparty in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law).
Section 2.9.    Extension of the Floating Rate Component Maturity Date.  Borrower shall have the option to extend the term of the Floating Rate Component beyond the Floating Rate Component Initial Maturity Date for three (3) successive terms (the “Floating Rate Component Extension Option”) of one (1) year each (each, a “Floating Rate Component Extension Period”) to (i) the Monthly Payment Date occurring in December, 2017 if the first Floating Rate Component Extension Option is exercised, (ii) the Monthly Payment Date occurring in December, 2018 if the second Floating Rate Component Extension Option is exercised, and (iii) the Monthly Payment Date occurring in December, 2019 if the third Floating Rate Component Extension Option is exercised (each such date, the “Floating Rate Component Extended Maturity Date”) upon satisfaction of the following terms and conditions (in each case as determined by Lender):
(a)    no Event of Default shall have occurred and be continuing on the date that the applicable Floating Rate Component Extension Period is commenced; 
(b)    Borrower shall notify Lender of its irrevocable election to extend the Floating Rate Component Maturity Date as aforesaid not earlier than sixty (60) days and no later than thirty (30) days prior to the applicable Floating Rate Component Maturity Date and on the date such notice is given no Event of Default shall have occurred and be continuing;

    
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(c)    Borrower shall obtain and deliver to Lender on or prior to the commencement of such Floating Rate Component Extension Period, a Replacement Interest Rate Cap Agreement, which Replacement Interest Rate Cap Agreement shall be effective commencing on the first day of the related Floating Rate Component Extension Period and shall have a maturity date not earlier than the last day of the Interest Accrual Period related to the applicable Floating Rate Component Extended Maturity Date;
(d)    Solely with respect to Borrower’s exercise of the second Floating Rate Component Extension Option, the LIBOR Spread shall be increased by one-quarter of one percent (0.25%);
(e)    in connection with the second Floating Rate Component Extension Option, the Debt Yield shall not be less than 8.5% at the time such Floating Rate Component Extension Period commences and in connection with the third Floating Rate Component Extension Option, the Debt Yield shall not be less than 9.0% at the time such Floating Rate Component Extension Period commences; provided, that, Borrower shall be permitted to make a prepayment of the Loan in accordance with the terms and conditions of Section 2.7(b) hereof in an amount which shall satisfy such Debt Yield requirement;
(f)    the Mortgage Extension Option corresponding to the applicable Floating Rate Component Extension Period shall have been exercised in accordance with the terms of the Mortgage Loan Agreement; 
(g)    the Mezzanine B Extension Option corresponding to the applicable Floating Rate Component Extension Period shall have been exercised in accordance with the terms of the Mezzanine B Loan Agreement; and
(h)    the Mezzanine C Extension Option corresponding to the applicable Floating Rate Component Extension Period shall have been exercised in accordance with the terms of the Mezzanine C Loan Agreement.
All references in this Agreement and in the other Loan Documents to the Floating Rate Component Maturity Date shall mean the Floating Rate Component Extended Maturity Date in the event the applicable Floating Rate Component Extension Option is exercised.  
Section 2.10.    Release of Individual Property and Collateral.  Except as set forth in this Section 2.10, Section 2.12 hereof and Section 8.10 of the Mortgage Loan Agreement, no repayment or prepayment of all or any portion of the Loan shall cause, or give rise to a right to require, or otherwise result in, the release of any lien on the Collateral or any portion thereof.
Provided no Event of Default shall have occurred and be continuing, Borrower shall have the right (i) at any time with respect to the Floating Rate Component and (ii) at any time after the Release Date and prior to the Maturity Date with respect to the Fixed Rate Component to obtain the release (the “Release”), in connection with the release of an Individual Property, of the Lender’s lien with respect to the portion of the Collateral related to such Individual Property (such portion of the Collateral, the “Released Collateral”) from the lien of the Pledge Agreement (and the related Loan Documents) and the release of Borrower’s obligations under the Loan Documents with respect 

    
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to such Released Collateral (other than those expressly stated to survive), upon the satisfaction of the following conditions precedent:
(a)    Borrower shall provide Lender with fifteen (15) Business Days (or a shorter period of time if permitted by Lender in its sole discretion) prior written notice of the proposed Release (the date of Lender’s receipt of such notice shall be referred to herein as the “Release Notice Date”);
(b)    Borrower shall submit to Lender, not less than ten (10) Business Days prior to the date of such Release, a release of lien (and related Loan Documents) for the Released Collateral for execution by Lender.  Such release shall be in a form appropriate in each jurisdiction in which the Released Collateral is located and shall contain standard provisions, if any, protecting the rights of Lender.  In addition, Borrower shall provide to Lender all other documentation of a ministerial or administrative nature that Lender reasonably requires to be delivered by Borrower in connection with such release, together with an Officer’s Certificate certifying that such documentation (i) is in compliance with all applicable Legal Requirements, (ii) will effect such release in accordance with the terms of this Agreement, and (iii) will not impair or otherwise adversely affect the liens, security interests and other rights of Lender under the Loan Documents not being released (or as to the parties to the Loan Documents and Collateral subject to the Loan Documents not being released);
(c)    The Released Property related to such Released Collateral shall either (i) be conveyed to a Person other than Borrower, Guarantor or their respective Affiliates pursuant to a sale of the Individual Property related to such Released Collateral in an arm’s length transaction or (ii) be conveyed to an Affiliate of Borrower (other than another Borrower) provided that Lender receives a New Non-Consolidation Opinion with respect to such Release;
(d)    As of the date of consummation of the Release, after giving effect to the release of the lien of the Pledge Agreement encumbering the Released Collateral (and the release of the related Security Instrument(s) encumbering the related Released Property associated therewith), the Debt Yield with respect to the remaining Individual Properties shall be equal to or greater than the greater of (1) the Closing Date Debt Yield and (2) the Debt Yield of all Individual Properties encumbered by the Security Instruments immediately prior to the consummation of the Release;
(e)    Each Borrower shall continue to be in compliance with the terms and conditions of Article 5 hereof after giving effect to such Release;
(f)    With respect to the Floating Rate Component, Borrower shall (A) partially prepay the Debt in accordance with Section 2.7(b) or Section 2.7(c) hereof, as applicable, in an amount equal to the Release Price for the Released Collateral, (B) pay the Breakage Costs (if applicable) and any applicable Interest Shortfall due hereunder in connection therewith and (C) pay any Prepayment Premium due in connection therewith (unless the first sentence of Section 2.7(c) applies to such prepayment);
(g)    With respect to the Fixed Rate Component, (i) prior to the Prepayment Release Date, Borrower shall comply with the terms of Section 2.12 hereof with respect to the Release and (ii) on or after the Prepayment Release Date, Borrower shall (A) partially prepay the Debt in accordance 

    
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with Section 2.7(b) hereof in an amount equal to the Release Price for the Released Property and (B) pay any applicable Interest Shortfall due hereunder in connection therewith;
(h)    Notwithstanding anything to the contrary contained herein or in any other Loan Document, if the Loan is included in a REMIC Trust and the Loan-to-Value Ratio (as Borrower shall have established to Lender’s reasonable satisfaction based upon valuations obtained by Borrower at its sole cost and expense using any commercially reasonable valuation method permitted to a REMIC Trust (which may include an existing or updated appraisal or other written determination of value using a commercially reasonable valuation method reasonably satisfactory to Lender)) (expressed as a percentage) (which for the avoidance of doubt shall not include the Mezzanine B Loan or Mezzanine C Loan) exceeds or would exceed 125% immediately after giving effect to the release of the applicable Individual Property and/or Collateral as applicable, no release under any provision of this Agreement will be permitted unless the principal balance of the Loan is prepaid by an amount not less than the greater of (i) the Release Price or (ii) the least of the following amounts:  (A) only if the released Individual Property is sold to an unrelated Person, the net proceeds of an arm’s length sale of the released Individual Property to an unrelated Person, (B) the fair market value of the released Individual Property at the time of the Release and (C) an amount such that the Loan-to-Value Ratio (as so determined by Lender in accordance with the provisions of this clause (h)) after giving effect to the Release of the applicable Individual Property is not greater than the Loan-to-Value Ratio immediately prior to such Release, unless Lender receives a REMIC Opinion with respect to the Release (provided, however, that any such prepayment shall be deemed a voluntary prepayment but shall not be subject to the Prepayment Premium or to any other premium or penalty);
(i)    Borrower shall pay all of Lender’s reasonable costs and expenses and the costs and expenses of the Rating Agencies in connection with the Release and the current market fee being assessed by Servicer with respect to such Release, including, without limitation, counsel fees, recording charges, filing fees and taxes and any other expenses payable in connection therewith; and
(j)    Borrower shall have delivered to Lender evidence reasonably satisfactory to Lender that Mortgage Borrower and each Mezzanine Borrower has complied in all material respects with all of the terms and conditions set forth in the Mortgage Loan Agreement and/or the applicable Mezzanine Loan Agreement with respect to a release of the security interest corresponding to the Release requested pursuant to this Section 2.10.
Notwithstanding the foregoing requirement of this Section 2.10 that no Event of Default be continuing, if there is an Event of Default due to a non-monetary Default with respect to any Individual Property or the Collateral associated therewith for which the cure period set forth herein has expired or Borrower has determined in the exercise of its reasonable, good-faith judgment that it would not be commercially reasonable to cure such non-monetary Default, provided that no other Event of Default then exists, Borrower shall have the right to Release the portion of the Collateral associated with such Individual Property pursuant to the terms and conditions of this Section 2.10 if (i) such release is being effectuated in order to cure such Event of Default or non-monetary Default related solely to such Individual Property or the Collateral associated therewith, (ii) such Event of 

    
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Default or non-monetary Default is not the result of the willful misconduct or bad faith actions of Borrower, Mortgage Borrower or any Affiliate thereof, as determined by Lender in its reasonable discretion and (iii) all other conditions of this Section 2.10 are satisfied with regard to such Release; provided, that, such Release shall not be deemed to cure any Event of Default, any non-monetary Default and/or any other Default not related to such Individual Property or the Collateral associated therewith.  In addition to payment of the reasonable costs and expense of Lender and Servicer in connection with such Release in accordance with this Section 2.10, Borrower shall also pay to Lender all reasonable costs and expenses incurred by Lender and Servicer in connection with such Default or Event of Default in accordance with the terms and conditions of this Agreement.  
Notwithstanding anything to the contrary in this Section 2.10 or Section 2.12, in no event shall any Collateral be released under those sections or any Borrower be released from any obligations under the Loan unless the Borrower that indirectly owns the Individual Property (or directly or indirectly owns the Collateral intended to be released) no longer indirectly owns any Properties (after giving effect to the release).  If no Collateral is released in connection with the foregoing, then Lender shall have a right to determine in its reasonable discretion that the conditions set forth in Section 2.10 or 2.12, as applicable (as if all or a portion of the Collateral were being released), have been satisfied.
In addition, notwithstanding anything to the contrary contained in this Agreement and/or the other Loan Documents, in no instance shall HC Mezz 1-T, LLC be released by Lender from the obligations of the Loan Documents for so long as the Debt is outstanding.
Section 2.11.    Intentionally Omitted.  
Section 2.12.    Defeasance.
(a)    Total Defeasance.
(i)    Provided no Event of Default shall have occurred and remain uncured and provided that Floating Rate Component is being simultaneously prepaid in full in accordance with the terms and conditions of this Agreement (or has been prepaid in full in accordance with the terms and conditions of this Agreement), Borrower shall have the right at any time after the Release Date and prior to the Prepayment Release Date to voluntarily defease the entire aggregate amount of the Fixed Rate Component and obtain a release of the lien of the Pledge Agreement by providing Lender with the Total Defeasance Collateral (hereinafter, a “Total Defeasance Event”), subject to the satisfaction of the following conditions precedent:
(A)    Borrower shall provide Lender not less than thirty (30) days notice (or such shorter period of time if permitted by Lender in its sole discretion) but not more than ninety (90) days notice specifying a date (the “Total Defeasance Date”) on which the Total Defeasance Event is to occur;
(B)    Unless otherwise agreed to in writing by Lender, Borrower shall pay to Lender (1) all payments of principal and interest due and payable on the Fixed 

    
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Rate Component to and including the end of the Interest Accrual Period related to the Total Defeasance Date (provided, that, if such Total Defeasance Date is not a Monthly Payment Date, Borrower shall also pay to Lender all payments of principal and interest due on the Fixed Rate Component to and including the end of the Interest Accrual Period related to the next occurring Monthly Payment Date); (2) all other sums, if any, due and payable under the Note, this Agreement, the Pledge Agreement and the other Loan Documents; (3) all escrow, closing, recording, legal, Rating Agency and other fees, costs and expenses paid or incurred by Lender or its agents in connection with the Total Defeasance Event, the release of the lien of Pledge Agreement on the applicable Collateral, the review of the proposed Defeasance Collateral and the preparation of the Security Agreement, the Defeasance Collateral Account Agreement and related documentation; and (4) any revenue, documentary stamp, intangible or other taxes, charges or fees due in connection with the transfer or assumption of the portion of the Note related to the Fixed Rate Note or the Total Defeasance Event;
(C)    Borrower shall deposit the Total Defeasance Collateral into the Defeasance Collateral Account and otherwise comply with the provisions of Section 2.12(c) hereof;
(D)    Borrower shall execute and deliver to Lender a Security Agreement in respect of the Defeasance Collateral Account and the Total Defeasance Collateral;
(E)    Borrower shall deliver to Lender (1) an opinion of counsel for Borrower that is standard in commercial lending transactions and subject only to customary and other reasonably satisfactory qualifications, assumptions and exceptions opining, among other things, that (I) Lender has a legal and valid perfected first priority security interest in the Defeasance Collateral Account and the Total Defeasance Collateral; (II) the Total Defeasance Event will not result in a deemed exchange for purposes of the Code and will not adversely affect the status of the Note as indebtedness for federal income tax purposes; and (III) delivery of the Total Defeasance Collateral and the grant of a security interest therein to Lender shall not constitute an avoidable preference under Section 547 of the Bankruptcy Code or applicable state law; (2) a REMIC Opinion with respect to the Total Defeasance Event; and (3) a New Non-Consolidation Opinion with respect to Successor Borrower;
(F)    If a Securitization has occurred, Borrower shall deliver to Lender a Rating Agency Confirmation as to the Total Defeasance Event;
(G)    Borrower shall deliver an Officer’s Certificate certifying that the requirements set forth in this Section 2.12 have been satisfied;
(H)    Borrower shall deliver a certificate of a nationally recognized public accounting firm acceptable to Lender certifying that the Total Defeasance Collateral 

    
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will generate monthly amounts equal to or greater than the Scheduled Defeasance Payments; 
(I)    Borrower shall deliver such other certificates, opinions, documents and instruments as Lender may reasonably request; and
(J)    Mortgage Borrower shall have defeased the fixed rate portion of the Mortgage Loan in full and paid down the floating rate portion of the Mortgage Loan in full, in each case, in accordance with the Mortgage Loan Agreement.
(ii)    If the Floating Rate Component is being simultaneously prepaid in full in accordance with the terms and conditions of this Agreement (or has been prepaid in full in accordance with the terms and conditions of this Agreement) and Borrower has elected to defease the entire aggregate amount of the Fixed Rate Component and the requirements of this Section 2.12 have been satisfied, the Collateral shall be released from the lien of the Pledge Agreement and the Total Defeasance Collateral pledged pursuant to the Security Agreement shall be the sole source of collateral securing the Loan.  In connection with the release of the lien, Borrower shall submit to Lender, not less than thirty (30) days prior to the Total Defeasance Date (or such shorter time as is acceptable to Lender in its sole discretion), a release of lien (and related Loan Documents) for execution by Lender.  Such release shall be in a form appropriate in the applicable jurisdiction and that contains standard provisions protecting the rights of the releasing lender.  In addition, Borrower shall provide all other documentation Lender reasonably requires to be delivered by Borrower in connection with such release, together with an Officer’s Certificate certifying that such documentation (1) is in compliance with all Legal Requirements, and (2) will effect such release in accordance with the terms of this Agreement.  Except as set forth in this Article 2, no repayment, prepayment or defeasance of all or any portion of the Loan shall cause, give rise to a right to require, or otherwise result in, the release of the lien of the Pledge Agreement.
(b)    Partial Defeasance.
(i)    Provided no Event of Default shall have occurred and remain uncured and provided that the Floating Rate Component is being simultaneously prepaid in full in accordance with the terms and conditions of this Agreement (or has been prepaid in full in accordance with the terms and conditions of this Agreement), Borrower shall have the right at any time after the Release Date and prior to the Prepayment Release Date to voluntarily defease a portion of the Loan related to the Fixed Rate Component and obtain a release of the lien on the applicable portion of the equity Collateral relating to one or more Individual Properties being defeased by providing Lender with the Partial Defeasance Collateral (hereinafter, a “Partial Defeasance Event”) upon satisfaction of the following conditions precedent:
(A)    Borrower shall provide Lender not less than thirty (30) days notice (or a shorter period of time if permitted by Lender in its sole discretion) but not more than ninety (90) days notice specifying a date (the “Partial Defeasance Date”) on 

    
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which the Partial Defeasance Event is to occur (the date of Lender’s receipt of such notice shall be referred to herein as the “Partial Defeasance Notice Date”);
(B)    Unless otherwise agreed to in writing by Lender, Borrower shall pay to Lender (1) all payments of principal and interest due and payable on the portion of the Fixed Rate Component being defeased to and including the end of the Interest Accrual Period related to the Partial Defeasance Date (provided that, if such Partial Defeasance Date is not a Monthly Payment Date, Borrower shall also pay to Lender all payments of principal and interest due on the portion of the Fixed Rate Component being defeased to and including the end of the Interest Accrual Period related to the next occurring Monthly Payment Date); (2) all other sums, if any, then due and payable under the Note, this Agreement, the Pledge Agreement and the other Loan Documents through and including the end of the Interest Accrual Period related to the Partial Defeasance Date (or, if the Partial Defeasance Date is not a Monthly Payment Date, the end of the Interest Accrual Period related to the next occurring Monthly Payment Date); (3) all escrow, closing, recording, legal, appraisal, Rating Agency and other fees, costs and expenses paid or incurred by Lender or its agents in connection with the Partial Defeasance Event, the release of the lien of the Pledge Agreement for the applicable Collateral, the review of the proposed Partial Defeasance Collateral and the preparation of the Security Agreement, the Defeasance Collateral Account Agreement and related documentation; and (4) any revenue, documentary stamp, intangible or other taxes, charges or fees due in connection with the transfer or assumption of the Defeased Note and/or the Partial Defeasance Event;
(C)    Borrower shall deposit the Partial Defeasance Collateral into the Defeasance Collateral Account and otherwise comply with the provisions of Section 2.12(c) hereof;
(D)    Lender shall prepare and Borrower shall execute all necessary documents to modify this Agreement and to amend and restate each Note and issue two substitute notes for each Note, one note having a principal balance equal to the pro rata portion of the Release Price (or applicable portion thereof) for the subject Collateral related to such Note (the “Defeased Note”), and the other note having a principal balance equal to the pro rata portion of the excess of (1) the principal amount of such Note existing immediately prior to the applicable Partial Defeasance Event, over (2) the amount of the related Defeased Note (the “Undefeased Note”).  Each Defeased Note and Undefeased Note shall have identical terms as the related Note except for the principal balance.  In connection therewith, the Monthly Debt Service Payment Amount allocated to such Note and the amount of each such payment applied to principal thereafter (if any) shall be divided between the Defeased Note and the Undefeased Note in the same proportion as the unpaid principal balance (in each case immediately after the Partial Defeasance Event) of the Defeased Note and the Undefeased Note, as the case may be, bears to the aggregate principal balance due under the Defeased Note and the Undefeased Note immediately after the Partial Defeasance Event.  The Defeased Note and the Undefeased Note shall be cross 

    
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defaulted and cross collateralized unless the Rating Agencies shall require otherwise.  A Defeased Note may not be the subject of any further defeasance;
(E)    Borrower shall execute and deliver to Lender a Security Agreement in respect of the Defeasance Collateral Account and the Partial Defeasance Collateral;
(F)    Borrower shall deliver to Lender (1) an opinion of counsel for Borrower that is standard in commercial lending transactions and subject only to customary and other reasonably satisfactory qualifications, assumptions and exceptions opining, among other things, that (I) Lender has a legal and valid perfected first priority security interest in the Defeasance Collateral Account and the Partial Defeasance Collateral, (II) the Partial Defeasance Event will not result in a deemed exchange for purposes of the Code and will not adversely affect the status of the Defeased Note and the Undefeased Note as indebtedness for federal income tax purposes and (III) delivery of the Partial Defeasance Collateral and the grant of a security interest therein to Lender shall not constitute an avoidable preference under Section 547 of the Bankruptcy Code or applicable state law; (2) a REMIC Opinion as to the Partial Defeasance Event and (3) a New Non-Consolidation Opinion with respect to the Successor Borrower;
(G)    The Partial Defeasance Event shall be permitted under REMIC Requirements in effect as of each of (I) the Partial Defeasance Notice Date and (II) the date of the consummation of the Partial Defeasance Event;
(H)    If a Securitization has occurred, Borrower shall deliver to Lender a Rating Agency Confirmation as to the Partial Defeasance Event;
(I)    Borrower shall deliver to Lender an Officer’s Certificate certifying that the requirements set forth in this Section 2.12 have been satisfied;
(J)    Borrower shall deliver a certificate of a nationally recognized public accounting firm acceptable to Lender certifying that the Partial Defeasance Collateral will generate monthly amounts equal to or greater than the Scheduled Defeasance Payments;
(K)    Borrower shall have satisfied the conditions to such Release of Collateral in accordance with Section 2.10 hereof (other than Section 2.10(f)); 
(L)    Borrower shall deliver such other certificates, opinions, documents and instruments as Lender may reasonably request; and
(M)    Mortgage Borrower shall have partially defeased the fixed rate portion of the Mortgage Loan with respect to the related Individual Property and paid down the floating rate portion of the Mortgage Loan in full, in each case, in accordance with the Mortgage Loan Agreement.

    
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(c)    On or before the date on which Borrower delivers the Total Defeasance Collateral or Partial Defeasance Collateral (as applicable), Borrower shall open at any Eligible Institution an Eligible Account (the “Defeasance Collateral Account”).  The Defeasance Collateral Account shall contain only (i) Total Defeasance Collateral or Partial Defeasance Collateral (as applicable) and (ii) cash from interest and principal paid on the Total Defeasance Collateral or Partial Defeasance Collateral (as applicable).  All cash from interest and principal payments paid on the Total Defeasance Collateral or Partial Defeasance Collateral (as applicable) shall (subject to the next sentence) be paid over to Lender on each Monthly Payment Date and applied first to accrued and unpaid interest and then to principal.  Any cash from interest and principal paid on the Total Defeasance Collateral or Partial Defeasance Collateral (as applicable) not needed to pay the Scheduled Defeasance Payments shall be (at Borrower’s or Successor Borrower’s option provided that no Event of Default has occurred and is continuing) (i) paid to Borrower or Successor Borrower (as applicable) and/or (ii) to the extent permitted by applicable REMIC Requirements, retained in the Defeasance Collateral Account.  Borrower shall cause the Eligible Institution at which the Total Defeasance Collateral or Partial Defeasance Collateral (as applicable) is deposited to enter an agreement with Borrower and Lender, satisfactory to Lender in its reasonable discretion, pursuant to which such Eligible Institution shall agree to hold and distribute the Total Defeasance Collateral or Partial Defeasance Collateral (as applicable) in accordance with this Agreement (such agreement, the “Defeasance Collateral Account Agreement”).  Borrower or Successor Borrower (as applicable) shall be the owner of the Defeasance Collateral Account and shall report all income accrued on Total Defeasance Collateral or Partial Defeasance Collateral (as applicable) for federal, state and local income tax purposes in its income tax return.  Borrower shall prepay all cost and expenses associated with opening and maintaining the Defeasance Collateral Account.  Lender shall not in any way be liable by reason of any insufficiency in the Defeasance Collateral Account.
(d)    In connection with a Total Defeasance Event or Partial Defeasance Event under this Section 2.12, a successor entity (the “Successor Borrower”) shall be established, which such Successor Borrower shall be (i) a Single Purpose Entity and (ii) at Lender’s option and in Lender’s sole discretion, established and/or designated by Lender or, if Lender does not so elect, established and/or designated by Borrower.  The right of Lender hereunder to designate and/or establish Successor Borrower may, at the option and in the sole discretion of the initial named Lender hereunder, be retained by the initial named Lender hereunder notwithstanding any Secondary Market Transaction.  Borrower shall transfer and assign all obligations, rights and duties under and to the Note or Defeased Note (as applicable), Security Agreement and Defeasance Collateral Account Agreement, together with the Total Defeasance Collateral or Partial Defeasance Collateral (as applicable) to such Successor Borrower.  Such Successor Borrower shall assume the obligations under the Note or Defeased Note (as applicable), the Defeasance Collateral Account Agreement and the Security Agreement in a manner acceptable to Lender and the Rating Agencies and Borrower shall be relieved of its obligations under the Loan Documents relating to the Note or the Defeased Note (as applicable) (other than those obligations which by their terms survive a repayment, defeasance or other satisfaction of the Loan and/or a transfer of the Collateral in connection with Lender’s exercise of its remedies under the Loan Documents).  Borrower shall pay all costs and expenses incurred by Lender and Successor Borrower, including attorney’s fees and expenses, incurred in connection with the foregoing (including, without limitation, Lender’s costs of establishing and/or designating Successor Borrower, if any).

    
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(e)    Notwithstanding anything to the contrary contained in this Section 2.12, the parties hereto hereby acknowledge and agree that after the Securitization of the Loan (or any portion thereof or interest therein), with respect to any Lender approval or similar discretionary rights over any matters contained in this Section 2.12 (any such matter, an “Defeasance Approval Item”), such rights shall be construed such that Lender shall only be permitted to withhold its consent or approval with respect to any Defeasance Approval Item if the same fails to meet the Prudent Lender Standard.
Section 2.13.    Withholding and Indemnified Taxes.
(a)    Defined Terms.  For purposes of this Section 2.13, the term “applicable law” includes FATCA and references to Agent only apply in the event of Syndication pursuant to Section 11.8.
(b)    Payments Free of Taxes.  Any and all payments by or on account of any obligation of Borrower under any Loan Document shall be made without deduction or withholding for any Section 2.13 Taxes, except as required by applicable law.  If any applicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Section 2.13 Taxes from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Section 2.13 Taxes is an Indemnified Tax, then the sum payable by Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.
(c)    Payment of Other Taxes by Borrower.  Without duplication, Borrower shall timely pay (or cause to be paid) to the relevant Governmental Authority in accordance with applicable law, or at the option of the Agent timely reimburse it for the payment of, any Other Taxes. 
(d)    Indemnification by Borrower.  Borrower shall indemnify each Recipient, within ten (10) days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable out-of-pocket expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to Borrower by a Lender (with a copy to Agent), or by Agent, on its own behalf or on behalf of a Co-Lender, shall be conclusive absent manifest error.
(e)    Evidence of Payments.  As soon as practicable after any payment of Section 2.13 Taxes by Borrower to a Governmental Authority pursuant to this Section 2.13, Borrower shall deliver to Lenders or, following a Syndication, Agent, the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to such recipient.

    
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(f)    Status of Agent and Lenders.
(i)    Any Lender that is entitled to an exemption from or reduction of any Section 2.13 Taxes imposed through withholding with respect to payments made under any Loan Document shall deliver to Borrower and Agent, at the time or times reasonably requested by Borrower or Agent, such properly completed and executed documentation reasonably requested by Borrower or Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by Borrower or Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by Borrower or Agent as will enable Borrower or Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements and to satisfy any such requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.13(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.
(ii)    Without limiting the generality of the foregoing,
(A)    any Lender that is a U.S. Person shall deliver to Borrower and Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of Borrower or Agent), executed originals of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;
(B)    any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to Borrower and Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of Borrower or Agent), whichever of the following is applicable:
(i) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding tax pursuant to the “business profits” or “other income” article of such tax treaty;
(ii) executed originals of IRS Form W-8ECI;

    
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(iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit B-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable; or
(iv) to the extent a Foreign Lender is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit B- 2 or Exhibit B-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit B-4 on behalf of each such direct and indirect partner;
(C)    any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to Borrower and Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of Borrower or Agent), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit Borrower or Agent to determine the withholding or deduction required to be made; and
(D)    if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to Borrower and Agent at the time or times prescribed by law and at such time or times reasonably requested by Borrower or Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by Borrower or Agent as may be necessary for Borrower and Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

    
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(iii)    Agent shall deliver to Borrower, on or prior to the date on which Agent becomes an Agent under this Agreement (and from time to time thereafter upon the reasonable request of Borrower) such properly completed and executed documentation reasonably requested by Borrower as will permit payments to be made under any Loan Document to Agent without withholding.  In addition, Agent, if reasonably requested by Borrower, shall deliver such other documentation prescribed by applicable law or reasonably requested by Borrower as will enable Borrower to determine whether or not Agent is subject to information reporting requirements and to satisfy any such requirements.  Without limiting the generality of the foregoing, Agent shall deliver to Borrower (A) executed originals of IRS Form W-9 certifying that Agent is exempt from U.S. federal backup withholding tax or (B) executed originals of IRS Form W-8IMY certifying that Agent is acting as a “qualified intermediary” or a “nonqualified intermediary” and accompanied by any required attachments (including certification documents from each beneficial owner).  For purposes of this Section 2.13(iii), “Agent” shall mean Agent in its capacity as such and not in any other capacity (such as a Lender).
Agent and each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify Borrower and Agent in writing of its legal inability to do so.
(g)    Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Section 2.13 Taxes as to which it has been indemnified pursuant to this Section 2.13 (including by the payment of additional amounts pursuant to this Section 2.13), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Section 2.13 Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses (including Section 2.13 Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund less any Taxes payable by such party with respect to such interest).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-tax position than the indemnified party would have been in if the Section 2.13 Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Section 2.13 Tax had never been paid.  This paragraph shall not be construed to require any indemnified party to make available its tax returns (or any other information relating to its Section 2.13 Taxes that it reasonably deems confidential) to the indemnifying party or any other Person.
(h)    Survival.  Each party’s obligations under this Section 2.13 shall survive the resignation or replacement of Agent or any assignment of rights by, or the replacement of, a Lender, and the repayment, satisfaction or discharge of all obligations under any Loan Document.

    
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ARTICLE 3. 
 
REPRESENTATIONS AND WARRANTIES
Each Borrower represents and warrants as of the Closing Date that:
Section 3.1.    Legal Status and Authority.  Each Borrower (a) is duly organized, validly existing and in good standing under the laws of its state of formation; (b) is duly qualified to transact business and is in good standing in each jurisdiction where it is required to be so qualified in connection with its assets, businesses and operations; and (c) has all necessary approvals, governmental and otherwise, and full power and authority to own the Collateral.  Borrower has full power, authority and legal right to grant, bargain, sell, pledge, assign, warrant, transfer and convey the Collateral pursuant to the terms hereof and to keep and observe all of the terms of this Agreement, the Note, the Pledge Agreement and the other Loan Documents on Borrower’s part to be performed.
Section 3.2.    Validity of Documents.  (a) The execution, delivery and performance of this Agreement, the Note, the Pledge Agreement and the other Loan Documents by Borrower and Guarantor and the borrowing evidenced by the Note and this Agreement (i) are within the power and authority of such parties; (ii) have been authorized by all requisite organizational action of such parties; (iii) have received all necessary approvals and consents, corporate, governmental or otherwise; (iv) will not violate, conflict with, result in a breach of or constitute (with notice or lapse of time, or both) a material default under any provision of law, any order or judgment of any court, Health Care Authority or Governmental Authority, any license, certificate or other approval required for the Mortgage Borrower to operate each Individual Property or any portion thereof, any applicable organizational documents, or any applicable indenture, agreement or other instrument, including, without limitation, the Management Agreement; (v) will not result in the creation or imposition of any lien, charge or encumbrance whatsoever upon any of its assets, except the lien and security interest created hereby and by the other Loan Documents; and (vi) will not require any authorization or license from, or any filing with, any Governmental Authority or Health Care Authority, (b) this Agreement, the Note, the Pledge Agreement and the other Loan Documents have been duly executed and delivered by Borrower and Guarantor and (c) this Agreement, the Note, the Pledge Agreement and the other Loan Documents constitute the legal, valid and binding obligations of Borrower and Guarantor.  The Loan Documents are not subject to any right of rescission, setoff, counterclaim or defense by Borrower or Guarantor, including the defense of usury, nor would the operation of any of the terms of the Loan Documents, or the exercise of any right thereunder, render the Loan Documents unenforceable (except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Creditors Rights Laws, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law)).  Neither Borrower nor Guarantor has asserted any right of rescission, setoff, counterclaim or defense with respect to the Loan Documents.
Section 3.3.    Litigation.  Except for “slip and fall” cases covered by insurance and other matters covered by insurance and except as set forth on Schedule XXIII hereto, there is no action, suit, proceeding or governmental investigation, in each case, judicial, administrative or otherwise (including any condemnation or similar proceeding), pending or, to the best of Borrower’s knowledge, threatened or contemplated against Borrower, Mortgage Borrower, Sponsor or 

    
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Guarantor or against or affecting any Individual Property or any portion thereof or the Collateral or any portion thereof that could have a Material Adverse Effect.
Section 3.4.    Agreements.  Borrower is not a party to any agreement or instrument or subject to any restriction which would have a Portfolio Material Adverse Effect.  Borrower is not in default in any material respect in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which it is a party or by which Borrower or the Collateral (or any portion thereof) is bound which default would have a Material Adverse Effect.  Borrower has no material financial obligation under any agreement or instrument to which Borrower is a party or by which Borrower or the Collateral (or any portion thereof) is otherwise bound, other than (a) obligations incurred in the ordinary course of the ownership of the Collateral and (b) obligations under this Agreement, the Pledge Agreement, the Note and the other Loan Documents.  There is no agreement or instrument to which Borrower is a party or by which Borrower is bound that would require the subordination in right of payment of any of Borrower’s obligations hereunder or under the Note to an obligation owed to another party.
Section 3.5.    Financial Condition.
(a)    Borrower is solvent and Borrower has received reasonably equivalent value for the granting of the Pledge Agreement.  No proceeding under Creditors Rights Laws with respect to any Borrower Party or any Affiliated Manager has been initiated.
(b)    In the last ten (10) years, no (i) petition in bankruptcy has been filed by or against any Borrower Party or any Affiliated Manager and (ii) Borrower Party or Affiliated Manager has ever made any assignment for the benefit of creditors or taken advantage of any Creditors Rights Laws.
(c)    No Borrower Party or Affiliated Manager is contemplating either the filing of a petition by it under any Creditors Rights Laws or the liquidation of its assets or property and Borrower has no knowledge of any Person contemplating the filing of any such petition against any Borrower Party or any Affiliated Manager.
(d)    With respect to any loan or financing in which any Borrower Party or any Affiliated Manager has been directly or directly obligated for or has, in connection therewith, otherwise provided any guaranty, indemnity or similar surety, including, without limitation and to the extent applicable, the loan which is being refinanced by the Loan, none of such loans or financings has ever been (i) more than 30 days in default or (ii) transferred to special servicing.
Section 3.6.    Disclosure.  Borrower has not failed to disclose any material fact that could cause any representation or warranty made herein to be materially misleading.
Section 3.7.    No Plan Assets.  As of the date hereof and until the Debt is repaid in accordance with the applicable terms and conditions hereof, (a) Borrower is not and will not be an “employee benefit plan,” as defined in Section 3(3) of ERISA, subject to Title I of ERISA, (b) Borrower is not and will not be a “governmental plan” within the meaning of Section 3(32) of ERISA, (c) transactions by or with Borrower are not and will not be subject to any state statute 

    
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regulating investments of, or fiduciary obligations with respect to, governmental plans and (d) none of the assets of Borrower constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101.  As of the date hereof, neither Borrower, nor any member of a “controlled group of corporations” (within the meaning of Section 414 of the Code), maintains, sponsors or contributes to a “defined benefit plan” (within the meaning of Section 3(35) of ERISA) or a “multiemployer pension plan” (within the meaning of Section 3(37)(A) of ERISA).
Section 3.8.    Not a Foreign Person.  Borrower is not a “foreign person” within the meaning of § 1445(f)(3) of the Code.
Section 3.9.    Warranty of Title.  Each pledgor under the Pledge Agreement is the record and beneficial owner of, and has good title to, the applicable Collateral, free and clear of all liens whatsoever, except for Liens created by this Agreement and the other Loan Documents and other Permitted Encumbrances.  The Pledge Agreement, together with the Uniform Commercial Code filings relating to the Collateral when properly filed in the appropriate records, will create valid, perfected first priority security interests in and to the Collateral, all in accordance with the terms thereof.  Borrower’s delivery of the certificates, together with the applicable undated limited liability company membership power, limited partnership power, or trust power, as the case may be, if any, to Lender as set forth in Section 3 of the Pledge Agreement creates a first priority valid and perfected security interest in the Collateral.
Section 3.10.    Business Purposes.  The Loan is solely for the business purpose of Borrower, and is not for personal, family, household, or agricultural purposes.
Section 3.11.    Borrower’s Principal Place of Business.  Borrower’s principal place of business and its chief executive office as of the date hereof is c/o NorthStar Realty Finance Corp., 399 Park Avenue, 18th Floor, New York, New York 10022.  Borrower’s mailing address, as set forth in the opening paragraph hereof or as changed in accordance with the provisions hereof, is true and correct.  Each Borrower’s organizational identification number, if any, assigned by the state of its incorporation or organization is set forth on Schedule I attached hereto.  Each Borrower’s federal tax identification number is set forth on Schedule I attached hereto.  No Borrower is subject to back-up withholding taxes.
Section 3.12.    Status of Property.
(a)    Borrower has obtained or caused Mortgage Borrower to obtain all Permits (other than Health Care Licenses which are addressed in Section 3.38(a) hereof) for the operation of Borrower’s or Mortgage Borrower’s business, all of which are in full force and effect as of the date hereof and not subject to revocation, suspension, forfeiture or modification.  Mortgage Borrower has used commercially reasonable efforts to cause each Tenant with respect to each Triple Net Leased Property to obtain all Permits for the operation of such Tenant’s business.
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applicable zoning ordinances, building codes, land use laws, Environmental Laws and other similar Legal Requirements.
(c)    Each Individual Property is served by all utilities required for the current or contemplated use thereof.  All utility service is provided by utilities and each Individual Property has accepted or is equipped to accept such utility service.
(d)    All public roads and streets necessary for service of and access to each Individual Property for the current or contemplated use thereof have been completed, are serviceable and all-weather and are physically and legally open for use by the public.  Each Individual Property has either direct access to such public roads or streets or access to such public roads or streets by virtue of a perpetual easement or similar agreement inuring in favor of Mortgage Borrower and any subsequent owners of the applicable Individual Property.
(e)    Each Individual Property is served by water and sewer systems.
(f)    Except as set forth on Schedule XXIV attached hereto, each Individual Property is free from material damage caused by fire or other casualty.  Except as shown in the Property Condition Reports, (i) each Individual Property, including, without limitation, all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition, order and repair in all material respects and (ii) there exists no structural or other material defects or damages in any Individual Property, whether latent or otherwise, and neither Borrower nor any Mortgage Borrower has received notice from any insurance company or bonding company of any defects or inadequacies in any Individual Property, or any part thereof, which would adversely affect the insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond.
(g)    All costs and expenses of any and all labor, materials, supplies and equipment used in the construction of the Improvements and incurred as of the date hereof have been or will be paid in full.  Except as shown on the Title Insurance Policies, there are no mechanics’ or similar liens or claims which have been filed for work, labor or material affecting any Individual Property which are or may be prior to or equal to the lien of the applicable Security Instrument.
(h)    Mortgage Borrower has paid in full for, and is the owner of, all furnishings, fixtures and equipment (other than Tenants’ and subtenants’ property or the property subject to a Permitted Equipment Lease) used in connection with the operation of each Individual Property, free and clear of any and all security interests, liens or encumbrances, except Permitted Encumbrances.
(i)    Except as shown in the Environmental Reports, all liquid and solid waste disposal, septic and sewer systems located on each Individual Property are in a good and safe condition and repair and in compliance in all material respects with all Legal Requirements.
(j)    Except as expressly disclosed on the Survey, (i) no portion of the Improvements is located in an area identified by the Federal Emergency Management Agency or any successor thereto 

    
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as an area having special flood hazards pursuant to the Flood Insurance Acts and (ii) no part of any Individual Property consists of or is classified as wetlands, tidelands or swamp and overflow lands.
(k)    Except as set forth in the Title Insurance Policies, all the Improvements lie within the boundaries of the Land and any building restriction lines applicable to the Land.
(l)    To Borrower’s knowledge, there are no pending or proposed special or other assessments for public improvements or otherwise affecting any Individual Property (or any portion thereof), nor are there any contemplated improvements to any Individual Property that may result in such special or other assessments.
(m)    Except as set forth on Schedule XXV and except for projects costing less than $100,000 (which projects costing less than $100,000 and not listed on Schedule XXV are not in excess of the Alteration Threshold), neither Borrower nor Mortgage Borrower has (i) made, ordered or contracted for any construction, repairs, alterations or improvements to be made on or to any Individual Property which have not been completed and paid for in full, (ii) ordered materials for any such construction, repairs, alterations or improvements which have not been paid for in full or (iii) attached any fixtures to any Individual Property which have not been paid for in full.  
(n)    Borrower has no direct employees.
Section 3.13.    Financial Information.  All financial data, including, without limitation, the balance sheets, statements of cash flow, statements of income and operating expense and rent rolls, that have been delivered to Lender in respect of Borrower, Mortgage Borrower, Guarantor and/or the Properties (a) are true, complete and correct in all material respects, (b) accurately represent the financial condition of Borrower, Mortgage Borrower, Guarantor, the Collateral and each Individual Property, as applicable, as of the date of such reports, and (c) to the extent prepared or audited by an independent certified public accounting firm, have been prepared in accordance with the Approved Accounting Method throughout the periods covered, except as disclosed therein.  Neither Borrower nor Mortgage Borrower have any contingent liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments that are known to Borrower and reasonably likely to have a Portfolio Material Adverse Effect, except as referred to or reflected in said financial statements.  Since the date of such financial statements, there has been no materially adverse change in the financial condition, operations or business of Borrower, Mortgage Borrower, Sponsor or Guarantor from that set forth in said financial statements.
Section 3.14.    Condemnation.  No Condemnation or other proceeding has been commenced or, to Borrower’s best knowledge, is threatened or contemplated with respect to all or any portion of any Individual Property or for the relocation of the access to any Individual Property.
Section 3.15.    Separate Lots.  Except as set forth on Schedule XXXI, each Individual Property is assessed for real estate tax purposes as one or more wholly independent tax lot or lots, separate from any adjoining land or improvements not constituting a part of such lot or lots, and no other land or improvements is assessed and taxed together with any Individual Property or any portion thereof.

    
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Section 3.16.    Insurance.  Borrower has obtained and has delivered to Lender certified copies of all Policies (or such other evidence acceptable to Lender) reflecting the insurance coverages, amounts and other requirements set forth in the Mortgage Loan Agreement.  There are no present claims of any material nature under any of the Policies, and to Borrower’s knowledge, no Person, including Borrower and Mortgage Borrower, has done, by act or omission, anything which would impair the coverage of any of the Policies.
Section 3.17.    Use of Property.  Each Individual Property is used exclusively as a Skilled Nursing Facility, Assisted Living Facility, Long-Term Acute Care Hospital or Medical Office Building and other appurtenant and related uses (including child daycare).
Section 3.18.    Leases and Rent Roll.  Except as disclosed in the estoppel certificates delivered to Lender in connection with the closing of the Loan and except as disclosed in the rent roll for each Individual Property delivered to, certified to and approved by Lender in connection with the closing of the Loan (the “Rent Roll”), (a) Mortgage Borrower is the sole owner of the entire lessor’s interest in the Leases; (b) the Leases are valid and enforceable and in full force and effect; (c) all of the Leases are arms-length agreements with bona fide, independent third parties; (d) except as set forth on Schedule XXXII, no party under any Lease is in monetary default or material non-monetary default; (e) except as set forth on Schedule XXXII, all Rents due have been paid in full and no Tenant is in arrears in its payment of Rent; (f) except as set forth on Schedule XXVI hereto, the terms of all alterations, modifications and amendments to the Leases are reflected in the rent roll delivered to Lender; (g) none of the Rents reserved in the Leases have been assigned or otherwise pledged or hypothecated except pursuant to the Mortgage Loan Documents; (h) except as set forth on Schedule XXXII, none of the Rents have been collected for more than one (1) month in advance (except a security deposit shall not be deemed rent collected in advance); (i) except as set forth on Schedule XXXII, the premises demised under the Leases have been completed, all improvements, repairs, alterations or other work required to be furnished on the part of Mortgage Borrower under the Leases have been completed, the Tenants under the Leases have accepted the premises demised thereunder and have taken possession of the same on a rent-paying basis and any payments, credits or abatements required to be given by Mortgage Borrower to the Tenants under the Leases have been made in full; (j) there exist no offsets or defenses to the payment of any portion of the Rents and Mortgage Borrower has no monetary obligation to any Tenant under any Lease; (k) neither Borrower nor Mortgage Borrower has received notice from any Tenant challenging the validity or enforceability of any Lease; (l) excluding the Ground Leases, there are no agreements with the Tenants under the Leases other than expressly set forth in each Lease; (m) Intentionally Omitted; (n) except as set forth on Schedule XXXII, no Lease contains an option to purchase any Individual Property (or any portion thereof) during the term of the Loan or any other similar provision; (o) except as set forth on Schedule XXXII, no Person (other than Resident Payors) has any possessory interest in, or right to occupy, any Individual Property except under and pursuant to a Lease (other than Subleases and other subleases); (p) all security deposits relating to the Leases are reflected on the Rent Roll and have been collected by Mortgage Borrower; (q) except as set forth on Schedule XXXII, no brokerage commissions or finders fees are due and payable regarding any Lease; (r) except as set forth on Schedule XXXII and except with respect to the Medical Office Buildings, each Tenant is in actual, physical occupancy of the premises demised under its Lease; (s) there are no actions or proceedings (voluntary or otherwise) pending against any Tenants or 

    
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guarantors under Leases, in each case, under bankruptcy or similar insolvency laws or regulations; and (t) except with respect to the Medical Office Buildings, no event has occurred giving any Tenant the right to cease operations at its leased premises (i.e., “go dark”), terminate its Lease or pay reduced or alternative Rent to Mortgage Borrower under any of the terms of such Lease, such as a co-tenancy provision.  
Section 3.19.    Filing and Recording Taxes.  All recording, stamp, intangible or other similar tax required to be paid by any Person under applicable Legal Requirements currently in effect in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of this Agreement, the Pledge Agreement, the Note and the other Loan Documents have been paid or will be paid, and, under current Legal Requirements, the Pledge Agreement and the other Loan Documents are enforceable in accordance with their terms by Lender (or any subsequent holder thereof), except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar Creditors’ Rights Laws, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
Section 3.20.    Management Agreement.  The Management Agreement is in full force and effect and there is no default thereunder by any party thereto and, to Borrower’s knowledge, no event has occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder.  As of the date hereof, no management fees under the Management Agreement are due and payable.
Section 3.21.    Illegal Activity/Forfeiture.
(a)    No portion of any Individual Property or any Collateral has been or will be purchased, improved, equipped or furnished with proceeds of any illegal activity and to the best of Borrower’s knowledge, there are no illegal activities at any Individual Property.
(b)    There has not been committed by Borrower or its Affiliates or, to Borrower’s knowledge, by any other Person in occupancy of or involved with the operation or use of any Individual Property or the ownership of the Collateral and there shall never be committed by Borrower or its Affiliates, any act or omission affording the federal government or any state or local government the right of forfeiture as against the Property or any part thereof or any monies paid in performance of Borrower’s obligations under this Agreement, the Note, the Pledge Agreement or the other Loan Documents.  Borrower hereby covenants and agrees not to commit any act or omission affording such right of forfeiture.
Section 3.22.    Taxes.  Borrower has filed all federal, state, county, municipal, and city income, personal property and other tax returns required to have been filed by it and has paid all taxes and related liabilities which have become due pursuant to such returns or pursuant to any assessments received by Borrower in writing, except for any such (a) Section 2.13 Taxes that are being contested in good faith by appropriate proceedings and for which Borrower has set aside on its books adequate reserves in accordance with GAAP for payment thereof or (b) Taxes and Other Charges the payment of which is governed by Section 4.5 and Section 8.6 hereof.  Borrower knows 

    
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of no basis for any additional assessment in respect of any such taxes and related liabilities for prior years.
Section 3.23.    Permitted Encumbrances.  None of the Permitted Encumbrances, individually or in the aggregate, materially and adversely affects the value or marketability of any Individual Property or the Collateral, materially impairs the use or the operation of any Individual Property or impairs Borrower’s or Mortgage Borrower’s ability to pay and/or perform its obligations in a timely manner.
Section 3.24.    Third Party Representations.  Each of the representations and the warranties made by Guarantor in the other Loan Documents (if any) are true, complete and correct in all material respects.
Section 3.25.    Non-Consolidation Opinion Assumptions.  All of the assumptions made in the Non-Consolidation Opinion, including, but not limited to, any exhibits attached thereto and/or certificates delivered in connection therewith, are true, complete and correct in all material respects.
Section 3.26.    Federal Reserve Regulations.  No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation U or any other Regulations of such Board of Governors, or for any purposes prohibited by Legal Requirements or by the terms and conditions of this Agreement, the Pledge Agreement, the Note or the other Loan Documents.
Section 3.27.    Investment Company Act.  Borrower is not (a) an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding company” or a “subsidiary company” of a “holding company” or an “affiliate” of either a “holding company” or a “subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended; or (c) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money.
Section 3.28.    Fraudulent Conveyance.  Borrower (a) has not entered into the Loan or any Loan Document with the actual intent to hinder, delay, or defraud any creditor and (b) received reasonably equivalent value in exchange for its obligations under the Loan Documents.  Giving effect to the Loan, the fair saleable value of Borrower’s assets exceeds and will, immediately following the execution and delivery of the Loan Documents, exceed Borrower’s total liabilities, including, without limitation, subordinated, unliquidated, disputed or contingent liabilities.  The fair saleable value of Borrower’s assets is and will, immediately following the execution and delivery of the Loan Documents, be greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities or its debts as such debts become absolute and matured.  Borrower’s assets do not and, immediately following the execution and delivery of the Loan Documents will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted.  Borrower does not intend to, and does not believe that it will, incur debts and liabilities (including, without limitation, contingent liabilities and other commitments) 

    
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beyond its ability to pay such debts as they mature (taking into account the timing and amounts to be payable on or in respect of obligations of Borrower).
Section 3.29.    Embargoed Person.  As of the date hereof, (a) none of the funds or other assets of any Borrower Party or any Affiliated Manager constitute property of, or are beneficially owned, directly or indirectly, by any Person or government that is the subject of economic sanctions under U.S. law, including but not limited to, the USA PATRIOT Act of 2001, 107 Public Law 56 (October 26, 2001) (including the anti-terrorism provisions thereof) and in other statutes and all orders, rules and regulations of the United States government and its various executive departments, agencies and offices related to applicable anti-money laundering laws and regulations, the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., the Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated thereunder with the result that transactions involving or the investment in any such Borrower Party or any such Affiliated Manager (whether directly or indirectly) is prohibited by applicable law or the Loan made by Lender is in violation of applicable law (“Embargoed Person”); (b) none of the funds or other assets of any Borrower Party or any Affiliated Manager constitute property of, or are beneficially owned, directly or indirectly, by any Embargoed Person; (c) no Embargoed Person has any interest of any nature whatsoever in any Borrower Party or any Affiliated Manager, with the result that transactions involving or the investment in any such Borrower Party (whether directly or indirectly), is prohibited by applicable law or the Loan is in violation of applicable law; and (d) none of the funds of any Borrower Party or any Affiliated Manager have been derived from, or are the proceeds of, any unlawful activity with the result that transactions involving or the investment in any such Borrower Party or any such Affiliated Manager (whether directly or indirectly), is prohibited by applicable law or the Loan is in violation of applicable law.  Any violation of the foregoing shall, at Lender’s option, constitute an Event of Default hereunder.
Section 3.30.    Intentionally Omitted.
Section 3.31.    Organizational Chart.  The organizational chart attached as Schedule III hereto (the “Organizational Chart”), relating to Borrower and certain Affiliates and other parties, is true, complete and correct on and as of the date hereof.  
Section 3.32.    Bank Holding Company.  Borrower is not a “bank holding company” or a direct or indirect subsidiary of a “bank holding company” as defined in the Bank Holding Company Act of 1956, as amended, and Regulation Y thereunder of the Board of Governors of the Federal Reserve System.
Section 3.33.    Purchase Options.  Except as set forth on Schedule XXVII hereof, no Individual Property or any part thereof or any Collateral or part thereof is subject to any purchase options, rights of first refusal with respect to the sale of any Individual Property or Collateral, rights of first offer with respect to the sale of any Individual Property or Collateral or other similar rights in favor of third parties.
Section 3.34.    Property Document Representations.  With respect to each Property Document, Borrower hereby represents that (a) except as set forth on Schedule XXVIII hereof, each Property Document is in full force and effect and has not been amended, restated, replaced or 

    
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otherwise modified (except, in each case, as expressly set forth herein or shown in the Title Insurance Policy (including all “back-up documents” thereof) or otherwise disclosed to Lender), (b) there are no defaults under any Property Document by Mortgage Borrower or, to Borrower’s knowledge, by any other party thereto and, to Borrower’s knowledge, no event has occurred which, but for the passage of time, the giving of notice, or both, would constitute a default under any Property Document, (c) all rents, additional rents and other sums due and payable under the Property Documents have been paid in full, (d) no party to any Property Document has commenced any action or given or received any notice for the purpose of terminating any Property Document and (e) the representations made in any estoppel or similar document delivered with respect to any Property Document in connection with the Loan are true, complete and correct in all material respects and are hereby incorporated by reference as if fully set forth herein.
Section 3.35.    No Change in Facts or Circumstances; Disclosure.  All information submitted by (or on behalf of) Borrower, Mortgage Borrower, Guarantor or Sponsor to Lender and in all financial statements, rent rolls, reports, certificates and other documents submitted in connection with the Loan or in satisfaction of the terms thereof and all statements of fact made by Borrower, Mortgage Borrower, Sponsor and/or Guarantor in this Agreement or in the other Loan Documents, are accurate, complete and correct in all material respects.  There has been no material adverse change in any condition, fact, circumstance or event that would make any such information inaccurate, incomplete or otherwise misleading in any material respect or that otherwise have a Material Adverse Effect.  Borrower has not failed to disclose any material fact that could cause any representation or warranty made herein to be materially misleading.
Section 3.36.    Operating Lease Representations.  Mortgage Borrower is the owner and lessor of landlord’s interest in the Operating Lease.  The Operating Lease is in full force and effect and there are no defaults thereunder by either party and there are no conditions that would constitute defaults thereunder.  No rent under the Operating Lease has been paid more than one (1) month in advance of its due date.  All security deposits (if any) are held by Mortgage Borrower in accordance with applicable law.  There has been no prior sale, transfer or assignment, hypothecation or pledge of the Operating Lease or of the rent thereunder which is outstanding.  The Operating Lessee has not assigned the Operating Lease or sublet all or any portion of the premises demised thereby other than pursuant to a Lease.  Operating Lessee has no right or option pursuant to the Operating Lease or otherwise to purchase all or any part of the leased premises or the building of which the leased premises are a part.
Section 3.37.    Ground Lease Representations.
(a)    (i) Each Ground Lease is in full force and effect and has not been modified or amended in any manner whatsoever, (ii) there are no defaults under any Ground Lease by Mortgage Borrower, or, to the best of Borrower’s knowledge, the applicable landlord thereunder, and, to the best of Borrower’s knowledge, no event has occurred which but for the passage of time, or notice, or both would constitute a default under any Ground Lease, (iii) all rents, additional rents and other sums due and payable under each Ground Lease have been paid in full, (iv) neither Mortgage Borrower nor the landlord under any Ground Lease has commenced any action or given or received any notice for the purpose of terminating any Ground Lease, (v) each Fee Owner, as debtor in possession or 

    
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by a trustee for such Fee Owner, has not given any notice of, and Borrower has not consented to, any attempt to transfer any Fee Estate free and clear of the Ground Lease under section 363(f) of the Bankruptcy Code, and (vi) each Fee Owner under each Ground Lease is not subject to any voluntary or involuntary bankruptcy, reorganization or insolvency proceeding and the applicable Fee Estate under each Ground Lease is not an asset in any voluntary or involuntary bankruptcy, reorganization or insolvency proceeding;
(b)    Each Ground Lease or a memorandum thereof has been duly recorded, each Ground Lease permits the interest of the lessee thereunder to be encumbered by the related Security Instrument.  There has not been any modifications, amendments or other changes in the terms of any Ground Lease since its recordation other than those that have been disclosed to Lender in writing;
(c)    Except for Permitted Encumbrances and as indicated in the related Title Insurance Policy, the applicable Mortgage Borrower’s interest in each Ground Lease is not subject to any lien superior to, or of equal priority with, the related Security Instrument;
(d)    Either (i) each Ground Lease itself provides and/or the related Fee Owner has agreed in a writing for the benefit of Lender, its successors and assigns that such Ground Lease may not be amended, modified, canceled, surrendered or terminated without the prior written consent of Lender and that any such action without such consent is not binding on Lender, its successors or assigns or (ii) Mortgage Borrower is not permitted, without the prior written consent of Lender as set forth in accordance with the terms and conditions of Section 4.23 hereof, to amend, modify, cancel or terminate each Ground Lease;
(e)    Except as set forth on Schedule XXIX hereof, each Ground Lease does not impose any restrictions on subleasing, provided the tenant under the Ground Lease remains primarily liable for such tenant’s obligations thereunder;
(f)    Except as set forth on Schedule XXIX hereof, each Ground Lease requires the related Fee Owner to give notice of any default by Mortgage Borrower to Lender prior to Fee Owner exercising its remedies thereunder;
(g)    Each Ground Lease has a term (including any extension option periods) which extends not less than twenty (20) years beyond the Maturity Date (including any extensions thereof in accordance with the terms and conditions of this Agreement); and 
(h)    Except as set forth on Schedule XXIX hereto, each Ground Lease requires the related Fee Owner to enter into a new lease upon termination of such Ground Lease for any reason, including rejection of such Ground Lease in a bankruptcy proceeding.
Section 3.38.    Health Care Representations.
(a)    Borrower is in possession of all material certificates, certificates of need, certifications, government licenses, permits or regulatory agreements required by Health Care Authorities and Mortgage Borrower is in possession of same to the extent necessary for Mortgage 

    
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Borrower to own or (as applicable) lease the Facilities or for Mortgage Borrower to carry on their respective businesses substantially as is being conducted as of the date hereof, materially in accordance with applicable Health Care Requirements (collectively, the “Health Care Licenses”) and all such Health Care Licenses are valid, and in full force and effect, except, in each case, where the failure to possess and maintain such Health Care License in full force and effect has not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(b)    Since January 1, 2012, no Borrower Party or Affiliated Manager has (i) been excluded, debarred, or suspended from or otherwise determined to be ineligible to participate in any Program, (ii) been notified in writing that it is about to be excluded, debarred, or suspended from or otherwise determined to be ineligible to participate in any Program, (iii) been convicted of any crime relating to any Program, or (iv) operated a facility which is or was identified by Centers for Medicare and Medicaid Services as a “Special Focus Facility” during the time such facility was operated by such Borrower Party or Affiliated Manager.
(c)    Each Non-MOB Facility is duly licensed as set forth on Schedule XVIII attached hereto.  The Licensed Bed Capacity of each Non-MOB Facility is as set forth on Schedule XIV attached hereto and the Available Beds at each Non-MOB Facility as of the date hereof is as set forth on Schedule XIV.  Neither Mortgage Borrower nor to Borrowers’ knowledge, any Master Tenant and/or any Subtenant has applied to reduce the Licensed Bed Capacity at any Non-MOB Facility or to move or transfer the right to any and all of the licensed or certified beds of any Non-MOB Facility to any other location or to amend or otherwise change any Non-MOB Facility and/or reduce the Licensed Bed Capacity of any Non-MOB Facility and to Borrower’s knowledge, there are no proceedings or actions pending or contemplated to reduce the Licensed Bed Capacity of any Non-MOB Facility;
(d)    Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) Mortgage Borrower is, and to Borrower’s knowledge, each Master Tenant and each Subtenant is, in compliance in all material respects with all applicable provisions of Health Care Requirements relating to the ownership and operation of the Non-MOB Facilities and (ii) neither Mortgage Borrower (including any Operating Lessee) nor, to Borrower’s knowledge, any Master Tenant and/or any Subtenant, has received any written notice from any Health Care Authority alleging any material violation of any applicable Health Care Requirements relating to the ownership and operation of the Non-MOB Facilities;
(e)    Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, each Operating Lessee (i) is in compliance in all material respects with the requirements for participation in Programs with respect to each RIDEA Facility that currently participates in such Programs, and (ii) has current Program agreements, as applicable, which are in full force and effect;
(f)    Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, Mortgage Borrower is not, and to Borrower’s knowledge, no Master Tenant and/or Subtenant is, subject to any action, proceeding, suit, audit, investigation or sanction 

    
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by any Health Care Authority alleging a material violation of Health Care Requirements, nor to Borrower’s knowledge, has any such action, proceeding, suit, investigation or audit been threatened.
(g)    Borrower has delivered to Lender an Occupancy Report for each Non-MOB Property.
(h)    No Health Care License held by any Operating Lessee has been (A) transferred to any location other than the applicable Facility or (B) pledged as collateral security.  Each Health Care License held by any Operating Lessee is (i) is held free from restriction or known conflict and (ii) not provisional, probationary or restricted in any way, except where such provisional license is issued in the ordinary course prior to the issuance of a full license.
(i)    No Operating Lessee has taken any action to rescind, withdraw, revoke, materially amend, modify or otherwise materially alter the nature or scope of any Health Care License or any material payor Program in which a RIDEA Facility participates.
(j)    To Borrower’s knowledge, except with respect to plans of correction which are not yet due pursuant to the applicable Facility Survey, no Operating Lessee has had any deficiencies cited during any Facility Survey that remain uncorrected or for which a plan of correction has not been timely filed, and is being implemented.
(k)    The execution and delivery of the Loan Documents, Borrower’s performance thereunder and the recordation of the Security Instruments will not (i) adversely affect in any material respect any Master Tenant’s, Subtenant’s or Operating Lessee’s right to receive payment under any Program, (ii) reduce any Program payments or (iii) adversely affect any Health Care License.
(l)    Each Operating Lessee’s Program accounts receivable are free from any liens, and no Operating Lessee’s accounts receivable have been pledged as collateral for any loan or indebtedness (other than the Loan).  To Borrower’s knowledge, each Master Tenant’s and Subtenant’s Program accounts receivable are free from any liens, and neither Master Tenant’s or Subtenant’s account receivables have been pledged as collateral for any loan or indebtedness.
(m)    Except as would not reasonably be expected to have a Material Adverse Effect, all Program cost reports, financial reports or other required filings submitted by each Operating Lessee have been materially accurate and complete as filed.  To Borrower’s knowledge, there are no current, pending or threatened Program audits, or claims for recoupment, other than non-material claims for recoupment made in the ordinary course of day to day operations.
(n)    All existing Management Agreements for each RIDEA Facility have received all required approvals from the applicable Health Care Authority.
(o)    Except as would not reasonably be expected to have a Material Adverse Effect, to the extent that any Mortgage Borrower is a Covered Entity or a Business Associate as defined in HIPAA, such Mortgage Borrower has materially complied with all Legal Requirements related to patient, medical or individual healthcare information, including the Health Insurance Portability and Accountability Act of 1996 and its implemented regulations promulgated thereunder, all as amended from time to time (collectively, “HIPAA”), including the standards for the privacy of 

    
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Individually Identifiable Health Information at 45 C.F.R. Parts 160 and 164, Subparts A and E, the standards for the protection of Electronic Protected Health Information set forth at 45 C.F.R. Part 160 and 45 C.F.R. Part 164, Subpart A and Subpart C, the standards for transactions and code sets used in electronic transactions at 45 C.F.R. Part 160, Subpart A and Part 162, and the standards for Breach Notification for Unsecured Protected Health Information at 45 C.F.R. Part 164, Subpart D, all as amended from time to time.  Except as would not reasonably be expected to have a Material Adverse Effect, Mortgage Borrower has entered into, where required, and is in compliance in all material respects with the terms of all Business Associate agreements (as defined in HIPAA) to which it is a party or otherwise bound.  No Mortgage Borrower has received written notice from the Office for Civil Rights for the U.S. Department of Health and Human Services or any other Governmental Authority of any allegation regarding its failure to comply with HIPAA or any other state law or regulation applicable to the protection of health information.  To the knowledge of Borrower, no successful “Security Incident” or Breach of Unsecured Protected Health Information have occurred with respect to information maintained or transmitted to Mortgage Borrower.  All capitalized terms in this subsection not otherwise defined in this Agreement shall have the meaning set forth under HIPAA.
Section 3.39.    Contractual Obligations.  Other than the Loan Documents, the organizational documents of Borrower, and the organizational documents of Mortgage Borrower, as of the date of this Agreement, Borrower is not subject to any Contractual Obligations and has not entered into any agreement, instrument or undertaking by which it or its assets are bound, or has incurred any Indebtedness, except for Contractual Obligations or liabilities (not material in the aggregate) that are incidental to its activities as a member of Mortgage Borrower and as borrower hereunder.
Section 3.40.    Mortgage Loan Representations and Warranties.  All of the representations and warranties contained in the Mortgage Loan Documents are (i) true and correct in all respects and (ii) hereby incorporated into this Agreement and deemed made hereunder as and when made thereunder and shall remain incorporated without regard to any waiver, amendment or other modification thereof by the Mortgage Lender or to whether the related Mortgage Loan Document has been repaid or otherwise terminated, unless otherwise consented to in writing by Lender.
Section 3.41.    Affiliates.  Borrower does not have any subsidiaries except Mortgage Borrower.
Section 3.42.    Additional Representations.  Mortgage Borrower has satisfied all of the conditions for disbursement of the Mortgage Loan.  The entire committed amount of the Mortgage Loan has been disbursed.  All collateral, guaranties, interest rate protection agreements, and credit enhancement for the Mortgage Loan, have been duly encumbered, pledged, and delivered as contemplated in the Mortgage Loan Documents.  All reserves and escrows under the Mortgage Loan have been fully funded in accordance with, and in the amounts contemplated by, the Mortgage Loan Documents.  Mortgage Borrower has no other agreement with Mortgage Lender pursuant to which Mortgage Lender has committed to increase the amount of the Mortgage Loan, make any additional loans to Mortgage Borrower, or waive or amend any term or condition under the Mortgage 

    
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Loan Documents.  No party to the Mortgage Loan Documents is in default with respect to any obligation under the Mortgage Loan.  The Property and other collateral for the Mortgage Loan has not been mortgaged, pledged, or encumbered as security for any obligation other than the Mortgage Loan and, except as disclosed in the Mortgage Loan Documents, the Mortgage Loan is not cross-defaulted with any other obligation.  Mortgage Borrower has no material disputes with Mortgage Lender and no party under any of the Mortgage Loan Documents has commenced or threatened litigation or other proceedings against any other party thereto.
Section 3.43.    Master Lease and Sublease Representations.  Except as disclosed in estoppels and for changes in the relevant facts or circumstances related to such representations and warranties of Mortgage Borrower to the extent the same do not have a Material Adverse Effect, all representations and warranties of Mortgage Borrower set forth in each Master Lease are true, complete and correct in all respects as of the date hereof and to Borrower’s knowledge, (i) all representations and warranties of each Master Tenant set forth in each Master Lease are true, complete and correct in all respects as of the date hereof and (ii) all representations of each Subtenant set forth in each Sublease are true, complete and correct in all respects as of the date hereof.
Section 3.44.    Affiliates.  No Borrower is an Affiliate of any Master Tenant and/or any Subtenant.
Section 3.45.    Affiliate Agreements.  As of the date hereof, there are no Affiliate Agreements.
Borrower agrees that, unless expressly provided otherwise, all of the representations and warranties of Borrower set forth in this Article 3 and elsewhere in this Agreement and the other Loan Documents shall survive for so long as any portion of the Debt remains owing to Lender.  All representations, warranties, covenants and agreements made in this Agreement and in the other Loan Documents shall be deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf.
ARTICLE 4. 
 
BORROWER COVENANTS
From the date hereof and until payment and performance in full of all obligations of Borrower under this Agreement, the Pledge Agreement, the Note and the other Loan Documents or the earlier release of the lien of the Pledge Agreement (and all related obligations) in accordance with the terms of this Agreement, the Pledge Agreement, the Note and the other Loan Documents, each Borrower hereby covenants and agrees with Lender that:
Section 4.1.    Existence.  Each Borrower will continuously maintain (a) its existence and shall not dissolve or permit its dissolution, (b) its qualifications to do business and good standing in each jurisdiction where it is required to be so qualified in connection with its assets, businesses and operations and (c) its franchises and trade names, if any.

    
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Section 4.2.    Legal Requirements.
(a)    Borrower shall and shall cause Mortgage Borrower to promptly comply and shall cause each non-Triple Net Leased Property to comply in all material respects with all Legal Requirements affecting the Collateral and any Individual Property or the use thereof (which such covenant shall be deemed to (i) include Environmental Laws and (ii) require Borrower to keep (and cause Mortgage Borrower to keep) all Permits in full force and effect).  Borrower shall or shall cause Mortgage Borrower to use commercially reasonable efforts to cause the Tenants with respect to each Triple Net Leased Property to comply in all material respects with all Legal Requirements affecting such Individual Property or the use thereof (which such covenants shall be deemed to (i) include Environmental Laws and (ii) require Mortgage Borrower to use commercially reasonable efforts to cause such Tenants to keep all Permits in full force and effect).
(b)    Borrower shall or shall cause Mortgage Borrower to from time to time, upon Lender’s request, provide Lender with evidence reasonably satisfactory to Lender that each non-Triple Net Leased Property complies in all material respects with all Legal Requirements or is exempt from compliance with Legal Requirements.  Borrower shall and shall cause Mortgage Borrower to use commercially reasonable efforts from time to time, upon Lender’s request, to provide Lender with evidence reasonably satisfactory to Lender that Borrower is using and causing Mortgage Borrower to use commercially reasonable efforts to cause each Tenant with respect to each Triple Net Leased Property to comply in all material respects with all Legal Requirements or cause such Tenant to be exempt from compliance with Legal Requirements.
(c)    Borrower shall give prompt notice to Lender of the receipt by Borrower or Mortgage Borrower of any notice related to a material violation of any Legal Requirements and of the commencement of any proceedings or investigations which relate to compliance with Legal Requirements.
(d)    After prior written notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the validity of any Legal Requirement, the applicability of any Legal Requirement to Borrower, Mortgage Borrower or any Individual Property or the Collateral or any alleged violation of any Legal Requirement, provided that (i) no Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any instrument to which Borrower or Mortgage Borrower is subject (including without limitation the Mortgage Loan Documents) and shall not constitute a default thereunder and such proceeding shall be permitted by and conducted in accordance with all applicable Legal Requirements; (iii) neither the applicable Individual Property, the Collateral nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, cancelled or lost; (iv) Borrower shall promptly upon final determination thereof comply (or cause compliance) with any such Legal Requirement determined to be valid or applicable or cure any violation of any Legal Requirement; (v) such proceeding shall suspend the enforcement of the contested Legal Requirement against Mortgage Borrower, Borrower, the Collateral or the applicable Individual Property; and (vi) in the event that Mortgage Borrower has not complied with the correlative provision in the Mortgage Loan Agreement, Borrower shall, or shall cause Mortgage Borrower to, furnish such security as may be 

    
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required in the proceeding, or as may be reasonably requested by Lender, to insure compliance with such Legal Requirement, together with all interest and penalties payable in connection therewith.  Lender may apply any such security or part thereof, as necessary to cause compliance with such Legal Requirement at any time when, in the judgment of Lender, the validity, applicability or violation of such Legal Requirement is finally established or the applicable portion of the Collateral or the Individual Property (or any part thereof or interest therein) shall be in danger of being sold, forfeited, terminated, cancelled or lost.
Section 4.3.    Maintenance and Use of Property.  Borrower shall cause Mortgage Borrower to cause each non-Triple Net Leased Property to be maintained in a good and safe condition and repair, reasonable wear and tear excepted.  Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause each Triple Net Leased Property to be maintained in a good and safe condition and repair, reasonable wear and tear excepted.  With respect to each non-Triple Net Leased Property, the Improvements and the Personal Property shall not be removed, demolished or materially altered (except for normal replacement of the Personal Property and normal removal of the Personal Property prior to the continuance of an Event of Default) without the consent of Lender or as otherwise permitted pursuant to Section 4.21 hereof.  With respect to each Triple Net Leased Property, Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause the Improvements and the Personal Property to not be removed, demolished or materially altered (except for normal replacement of the Personal Property and normal removal of the Personal Property prior to the continuance of an Event of Default) without the consent of Lender or as otherwise permitted pursuant to Section 4.21 hereof.  With respect to each non-Triple Net Leased Property, Borrower shall cause Mortgage Borrower to perform (or shall cause to be performed) the prompt repair, replacement and/or rebuilding of any part of any Individual Property which may be destroyed by any casualty, or become damaged, worn or dilapidated or which may be affected by any proceeding of the character referred to in Section 3.14 hereof and shall complete and pay for (or cause the completion and payment for) any structure at any time in the process of construction or repair on the Land.  With respect to each Triple Net Leased Property, Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause each Tenant with respect to each Triple Net Leased Property to perform (or cause to be performed) the prompt repair, replacement and/or rebuilding of any part of any Individual Property which may be destroyed by any casualty, or become damaged, worn or dilapidated or which may be affected by any proceeding of the character referred to in Section 3.14 hereof and Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause such Tenant to complete and pay for (or cause the completion and payment for) any structure at any time in the process of construction or repair on the Land.  Borrower shall cause Mortgage Borrower to operate each non-Triple Net Leased Property for the same primary uses as such Individual Property is currently operated and Borrower shall not permit Mortgage Borrower to, without the prior written consent of Lender, (i) change the primary use of any such Individual Property or (ii) initiate, join in, acquiesce in, or consent to any change in any private restrictive covenant, zoning law or other public or private restriction, limiting or restricting the uses which may be made of any such Individual Property or any part thereof.  Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause each Tenant with respect to each Triple Net Leased Property to use such Triple Net Leased Property for the same primary uses as such Triple Net Leased Property is currently operated and Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause the Tenant with respect to such 

    
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Triple Net Leased Property to not, without the prior written consent of Lender, (i) change the primary use of any Triple Net Leased Property or (ii) initiate, join in, acquiesce in, or consent to any change in any private restrictive covenant, zoning law or other public or private restriction, limiting or restricting the uses which may be made of any Triple Net Leased Property or any part thereof.  If under applicable zoning provisions the use of all or any portion of any non-Triple Net Leased Property is or shall become a nonconforming use, Borrower will not permit Mortgage Borrower to cause or permit the nonconforming use to be discontinued or the nonconforming Improvement to be abandoned without the express written consent of Lender.  If under applicable zoning provisions the use of all or any portion of any Triple Net Leased Property is or shall become a nonconforming use, Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause the Tenant with respect to such Triple Net Leased Property to not cause or permit the nonconforming use to be discontinued or the nonconforming Improvement to be abandoned without the express written consent of Lender.
Section 4.4.    Waste.  Borrower shall not commit or suffer (or permit Mortgage Borrower to commit or suffer) any waste of any non-Triple Net Leased Property or make any change (or permit Mortgage Borrower to make any change) in the use of any non-Triple Net Leased Property which will in any way materially increase the risk of fire or other hazard arising out of the operation of any non-Triple Net Leased Property, or take any action (or permit Mortgage Borrower to take any action) that might invalidate or give cause for cancellation of any Policy, or do or permit to be done thereon anything that may in any way impair the value of any non-Triple Net Leased Property or the security for the Loan.  Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause each Tenant with respect to a Triple Net Leased Property to not commit or suffer any waste of any Triple Net Leased Property or make any change in the use of any Triple Net Leased Property which will in any way materially increase the risk of fire or other hazard arising out of the operation of any Triple Net Leased Property, or take any action that might invalidate or give cause for cancellation of any Policy, or do or permit to be done thereon anything that may in any way impair the value of any Triple Net Leased Property or the security for the Loan.  Borrower will not, without the prior written consent of Lender, permit (or permit Mortgage Borrower to permit) any drilling or exploration for or extraction, removal, or production of any minerals from the surface or the subsurface of any Individual Property, regardless of the depth thereof or the method of mining or extraction thereof.
Section 4.5.    Taxes and Other Charges.
(a)    Subject to Section 4.5(b), Borrower shall cause Mortgage Borrower to pay (or cause to be paid) all Taxes and Other Charges now or hereafter levied or assessed or imposed against each Individual Property or any part thereof as the same become due and payable (except with respect to any Waived Tax Deposit Property (as defined in the Mortgage Loan Agreement) whenever there is not a Borrower Tax Period (as defined in the Mortgage Loan Agreement) with respect to such Waived Tax Deposit Property (as defined in the Mortgage Loan Agreement)); provided, however, prior to the occurrence and continuance of a Mortgage Event of Default, Borrower’s obligation to directly pay Taxes shall be suspended for so long as Borrower causes Mortgage Borrower to comply with the terms and provisions of Section 8.6 of the Mortgage Loan Agreement.  Except with respect to the Waived Tax Deposit Properties whenever there is not a Borrower Tax Period with respect to 

    
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such Waived Tax Deposit Property, Borrower shall or shall cause Mortgage Borrower to furnish to Lender receipts for the payment of the Taxes and the Other Charges prior to the date the same shall become delinquent (provided, however, that Borrower is not required to furnish (or cause to be furnished) such receipts for payment of Taxes in the event that such Taxes have been paid by Mortgage Lender pursuant to Section 8.6 of the Mortgage Loan Agreement).  Subject to Section 4.5(b), Borrower shall not permit Mortgage Borrower to suffer and shall promptly cause Mortgage Borrower to cause to be paid and discharged any lien or charge relating to or arising from Taxes or Other Charges which may be or become a lien or charge against any Individual Property (or any portion thereof) (except with respect to any Waived Tax Deposit Property whenever there is not a Borrower Tax Period with respect to such Waived Tax Deposit Property), and shall promptly pay for all utility services provided to each Individual Property (or any portion thereof) (except with respect to a Triple Net Leased Property).  Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause the Tenant with respect to any Waived Tax Deposit Property (whenever there is not a Borrower Tax Period with respect to such Waived Tax Deposit Property) to pay and discharge any lien or charge relating to or arising from Taxes or Other Charges which may be or become a lien or charge against such Waived Tax Deposit Property (or portion thereof) (whenever there is not a Borrower Tax Period with respect to such Waived Tax Deposit Property) and shall cause Mortgage Borrower to use commercially reasonable efforts to cause each Tenant with respect to each Triple Net Leased Property to promptly pay all utility services provided to each Triple Net Leased Property.
(b)    After prior written notice to Lender, Borrower may cause Mortgage Borrower to, at its own expense, contest (or permit to be contested) by appropriate legal proceeding and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any Taxes or Other Charges, provided that (i) no Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to which Mortgage Borrower is subject and shall not constitute a default thereunder and such proceeding shall be permitted by and conducted in accordance with all applicable Legal Requirements; (iii) neither the applicable Individual Property nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or lost; (iv) Borrower shall cause Mortgage Borrower to promptly upon final determination thereof pay the amount of any such Taxes or Other Charges, together with all costs, interest and penalties which may be payable in connection therewith; (v) such proceeding shall suspend the collection of such contested Taxes or Other Charges from the applicable Individual Property; and (vi) in the event that Mortgage Borrower has not complied with the correlative provision in the Mortgage Loan Agreement and neither Mezzanine Borrower has complied with the correlative provisions of the applicable Mezzanine Loan Documents, Borrower shall, or shall cause Mortgage Borrower, to furnish such security as may be required in the proceeding, or deliver to Lender such reserve deposits as may be reasonably requested by Lender, to insure the payment of any such Taxes or Other Charges, together with all interest and penalties thereon.  Lender may pay over any such cash deposit or part thereof held by Lender to the claimant entitled thereto at any time when, in the judgment of Lender, the entitlement of such claimant is established by the applicable government authority or, in the judgment of Lender, the applicable Individual Property (or part thereof or interest therein) shall be in danger of being sold, forfeited, terminated, canceled or lost or there shall be any danger of the lien of the Security Instrument being primed by any related lien.

    
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Section 4.6.    Litigation.  Borrower shall give prompt written notice to Lender of any litigation or governmental proceedings pending or threatened in writing against Borrower or Mortgage Borrower which are reasonably likely to result in a Portfolio Material Adverse Effect.
Section 4.7.    Access to Property.  Subject to the rights of Tenants and subtenants and in accordance with applicable Legal Requirements and Health Care Requirements, Borrower shall permit (or cause Mortgage Borrower to permit) agents, representatives and employees of Lender to inspect each Individual Property or any part thereof at reasonable hours upon reasonable advance notice.
Section 4.8.    Notice of Default.  Borrower shall promptly advise Lender of any material adverse change in Borrower’s, Mortgage Borrower’s and/or Guarantor’s condition (financial or otherwise) or of the occurrence of any Default or Event of Default of which Borrower has knowledge.
Section 4.9.    Cooperate in Legal Proceedings.  Borrower shall and shall cause Mortgage Borrower to cooperate fully with Lender with respect to any proceedings before any court, board, other Governmental Authority or any Health Care Authority which may in any way affect the rights of Lender hereunder or any rights obtained by Lender under any of the Note, the Pledge Agreement or the other Loan Documents and, in connection therewith, permit Lender, at its election but subject to Legal Requirements, to participate in any such proceedings.
Section 4.10.    Performance by Borrower.  Borrower hereby acknowledges and agrees that Borrower’s observance, performance and fulfillment of each and every covenant, term and provision to be observed and performed by Borrower under this Agreement, the Pledge Agreement, the Note and the other Loan Documents is a material inducement to Lender in making the Loan.
Section 4.11.    Awards.  Subject to the Mortgage Loan Documents and the rights of Mortgage Lender thereunder and the provisions hereof, Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Awards or insurance proceeds lawfully or equitably payable in connection with the Properties (or any portion thereof), and Lender shall be reimbursed for any reasonable expenses incurred in connection therewith (including reasonable, actual attorneys’ fees and disbursements, and the payment by Borrower of the expense of an appraisal on behalf of Lender in case of a Casualty or Condemnation affecting the Properties or any part thereof) out of such Awards or insurance proceeds.
Section 4.12.    Books and Records.
(a)    Borrower shall furnish (or cause Mortgage Borrower to furnish) to Lender:
(i)    quarterly (and prior to a Securitization (if requested by Lender), monthly) certified rent rolls for each Individual Property within thirty (30) days after the end of each calendar quarter or month, as applicable, which certified rent rolls shall include the aggregate occupancy of each Individual Property;
(ii)    quarterly (and prior to a Securitization (if requested by Lender), monthly) operating statements of each Individual Property detailing the revenues received, the 

    
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expenses incurred and the components of Net Operating Income before Debt Service, Gross Revenues and Gross Expenses and major capital improvements for the period of calculation and containing appropriate year-to-date information (but not any information for periods prior to the Closing Date), within thirty (30) days after the end of each calendar quarter or month, as applicable;
(iii)    within seventy five (75) days after the close of each calendar year (other than the 2014 calendar year), (A) with respect to Borrower, an unaudited annual balance sheet, statement of cash flow and profit and loss statement for Borrower and the Properties (each of which shall (I) not include any Person other than Borrower and Mortgage Borrower and (II) show all Borrowers and Mortgage Borrowers on a combined, aggregate basis) and (B) an annual operating statement (showing all Individual Properties in the aggregate), in each case, detailing the revenues received, the expenses incurred and the components of Net Operating Income before Debt Service, Gross Revenues, Gross Expenses and major capital improvements for such calendar year (or portion thereof, from and after the date hereof, in the case of the 2014 calendar year) and containing appropriate year-to-date information);
(iv)    within one hundred twenty (120) days after the close of each calendar year (other than the 2014 calendar year), with respect to Borrower, an annual balance sheet, statement of cash flow and profit and loss statement for Borrower, Mortgage Borrower and the Properties (each of which shall (I) not include any Person other than Borrower and Mortgage Borrower and (II) shall show all Borrowers and Mortgage Borrower on a combined, aggregate basis) which, with respect to the delivery of such financial information pursuant to this clause (iv), shall each be audited by a “Big Four” accounting firm, Grant Thornton LLP, BDO USA, LLP, Marcum LLP or another independent certified public accountant reasonably acceptable to Lender;
(v)    by no later than December 15, 2014 and December 1 of each calendar year thereafter, an annual operating budget for the next succeeding calendar year presented on a monthly basis consistent with the annual operating statement described above for each Individual Property, including cash flow projections for the upcoming year and all proposed capital replacements and improvements, which budget shall, if a Trigger Period has occurred and is continuing, not take effect until approved by Lender which approval shall not be unreasonably withheld (such budget after such approval has been given in writing shall be referred to herein, as the “Approved Annual Budget”).  If a Trigger Period has occurred and is continuing, until such time that Lender approves a proposed Annual Budget, (1) to the extent that an Approved Annual Budget does not exist for the immediately preceding calendar year, all operating expenses of the Property for the then current calendar year shall be deemed extraordinary expenses of the Property and shall be subject to Lender’s prior written approval (not to be unreasonably withheld or delayed) and (2) to the extent that an Approved Annual Budget exists for the immediately preceding calendar year, such Approved Annual Budget shall apply to the then current calendar year; provided, that such Approved Annual Budget shall be adjusted to reflect actual increases in Taxes, Insurance Premiums, Ground Rent and utilities expenses; and

    
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(vi)    by no later than thirty (30) days after and as of the end of each calendar month during the period prior to Securitization (if required by Lender), and thereafter by no later than thirty (30) days after and as of the end of each calendar quarter, a calculation of the then current Debt Yield, together with such back-up information as Lender shall reasonably require with respect to such calculation of Debt Yield.
(b)    Upon request from Lender, Borrower shall furnish (or cause Mortgage Borrower to furnish) in a timely manner to Lender:
(i)    an accounting of all security deposits held in connection with any Lease of any part of any Individual Property, including the name and identification number of the accounts in which such security deposits are held, the name and address of the financial institutions in which such security deposits are held and the name of the Person to contact at such financial institution, along with any authority or release necessary for Lender to obtain information regarding such accounts directly from such financial institutions; and
(ii)    evidence reasonably acceptable to Lender of compliance with the terms and conditions of Articles 5 and 9 hereof.
(c)    Borrower shall, within ten (10) Business Days of request, furnish (or cause Mortgage Borrower to furnish) Lender (and shall cause Sponsor and/or Guarantor to furnish to Lender) with such other additional financial or management information (including State and Federal tax returns) as may, from time to time, be reasonably required by Lender in form and substance reasonably satisfactory to Lender.  Borrower shall furnish (or cause Mortgage Borrower to furnish) to Lender and its agents convenient facilities for the examination and audit of any such books and records.
(d)    Borrower agrees that (i) Borrower shall keep adequate books and records of account and (ii) all Required Financial Items (defined below) to be delivered to Lender pursuant to Section 4.12 shall: (A) be complete and correct; (B) present fairly the financial condition of the applicable Person; (C) disclose all liabilities that are required to be reflected or reserved against; and (D) be prepared (1) in the form required by Lender and certified by a Responsible Officer of Borrower (2) in electronic format and (3) to the extent applicable, in accordance with the Approved Accounting Method.  Borrower agrees that all Required Financial Items shall not contain any misrepresentation or omission of a material fact.
(e)    Borrower acknowledges the importance to Lender of the timely delivery of each of the items required by this Section 4.12 and the other financial reporting items required by this Agreement (each, a “Required Financial Item” and, collectively, the “Required Financial Items”).  Borrower shall pay to Lender the sum of $2,500.00 per occurrence for each failure by Borrower to deliver any of the Required Financial Items to Lender within one (1) Business Day after the due date specified herein (a “Reporting Failure”).  It shall be an Event of Default hereunder if any such payment is not received by Lender within thirty (30) days of the date on which such payment is due, and Lender shall be entitled to the exercise of all of its rights and remedies provided hereunder.

    
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Section 4.13.    Estoppel Certificates.
(a)    After request by Lender, Borrower, within ten (10) Business Days of such request, shall furnish Lender or any proposed assignee with a statement, duly acknowledged and certified, setting forth (i) the original principal amount of each Note and the Mortgage Loan, (ii) the unpaid principal amount of each Note and the Mortgage Loan, (iii) the rate of interest of the Loan and the Mortgage Loan, (iv) the terms of payment and maturity date of the Loan and the Mortgage Loan, (v) the date installments of interest and/or principal were last paid under the Loan and the Mortgage Loan, (vi) that, except as provided in such statement, no Event of Default exists, (vii) that this Agreement, the Note, the Pledge Agreement and the other Loan Documents are valid, legal and binding obligations and have not been modified or if modified, giving particulars of such modification, (viii) whether any offsets or defenses exist against the obligations secured hereby and, if any are alleged to exist, a detailed description thereof, (ix) the date to which the Rents thereunder have been paid pursuant to the Leases, (x) whether or not, to the best knowledge of Borrower, any of the lessees under the Leases are in default under the Leases, and, if any of the lessees are in default, setting forth the specific nature of all such defaults, (xi) the amount of security deposits held by Mortgage Borrower under each Lease and that such amounts are consistent with the amounts required under each Lease, and (xii) as to any other matters reasonably requested by Lender and reasonably related to the Leases, the obligations created and evidenced hereby and by the Pledge Agreement, the Collateral or any Individual Property.
(b)    Borrower shall cause Mortgage Borrower to use its commercially reasonable efforts to deliver to Lender, promptly upon request, duly executed estoppel certificates from any one or more Tenants as required by Lender attesting to such facts regarding its Lease as Lender may reasonably require, including, but not limited to, attestations that each Lease covered thereby is in full force and effect with no defaults thereunder on the part of any party, that none of the Rents have been paid more than one month in advance, except as security, no free rent or other concessions are due lessee and that the lessee claims no defense or offset against the full and timely performance of its obligations under such Lease.
(c)    Borrower shall or shall cause Mortgage Borrower to use commercially reasonable efforts to deliver to Lender, within ten (10) Business Days of request, estoppel certificates from each party under any Property Document in form and substance reasonably acceptable to Lender.
Section 4.14.    Leases and Rents.
(a)    All Leases and all renewals of Leases executed after the date hereof shall (i) be on commercially reasonable terms with unaffiliated, third parties (unless otherwise consented to by Lender), (ii) provide that such Lease is subordinate to the Security Instruments and that the lessee will attorn to Lender and any purchaser at a foreclosure sale and (iii) not contain any terms which would have a Material Adverse Effect.  Notwithstanding anything to the contrary contained herein, Borrower shall not permit Mortgage Borrower to, without the prior written approval of Lender (which approval shall not be unreasonably withheld or delayed), enter into, renew, extend, amend any economic or material non-economic provisions thereof, modify, permit any assignment of or subletting under, waive any economic or material non-economic provisions of, release any party 

    
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to, terminate, reduce rents under, accept a surrender of space under, or shorten the term of, in each case, any Major Lease.
(b)    Without limitation of subsection (a) above, Borrower shall cause Mortgage Borrower to (i) observe and perform in all material respects the obligations imposed upon the lessor under the Leases in a commercially reasonable manner; (ii) enforce the terms, covenants and conditions contained in the Leases upon the part of the lessee thereunder to be observed or performed in a commercially reasonable manner; (iii) not collect any of the Rents more than one (1) month in advance (other than security deposits); (iv) not execute any assignment of lessor’s interest in the Leases or the Rents (except as contemplated by the Loan Documents); (v) not, without Lender’s prior written consent, alter, modify or change any Lease to the extent the same would, individually or in the aggregate, (A) cause any such Lease to violate 4.14(a)(i) through (iii) above or (B) have a Material Adverse Effect; and (vi) hold all security deposits under all Leases in accordance with Legal Requirements.  Upon request, Borrower shall furnish Lender with executed copies of all Leases.
(c)    Notwithstanding anything contained herein to the contrary, Borrower shall not and shall not permit Mortgage Borrower to willfully withhold from Lender any information regarding renewal, extension, amendment, modification, waiver of provisions of, termination, rental reduction of, surrender of space of, or shortening of the term of, any Lease during the term of the Loan.  
(d)    Borrower shall or shall cause Mortgage Borrower to notify Lender in writing, within two (2) Business Days following receipt thereof, of Borrower’s receipt of any early termination fee or payment or other termination fee or payment paid by any Tenant under any Lease (a “Termination Fee”), and within such two (2) Business Day period Borrower shall cause Mortgage Borrower to deposit such Termination Fee into the Termination Fee Account (as defined in the Mortgage Loan Agreement).
Section 4.15.    Management Agreement.
(a)    Borrower shall cause Mortgage Borrower to (i) in a commercially reasonable manner diligently and promptly perform, observe and enforce all of the terms, covenants and conditions of each Management Agreement on the part of Mortgage Borrower to be performed, observed and enforced to the end that all things shall be done which are necessary to keep unimpaired the rights of Mortgage Borrower under each Management Agreement, (ii) promptly notify Lender of any material default under any Management Agreement; (iii) promptly deliver to Lender a copy of any notice of default or other material notice received by Mortgage Borrower under any Management Agreement; (iv) promptly give notice to Lender of any notice or information that Mortgage Borrower receives which indicates that any Manager is terminating its related Management Agreement or that Manager is otherwise discontinuing its management of any Individual Property; and (v) promptly enforce in a commercially reasonable manner the performance and observance of all of the covenants required to be performed and observed by Manager under each Management Agreement.
(b)    Borrower shall not and shall not permit Mortgage Borrower to, without the prior written consent of Lender (which consent shall not be unreasonably withheld, conditioned or delayed), (i) surrender, terminate or cancel any Management Agreement, consent to any assignment 

    
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of any Manager’s interest under the related Management Agreement or otherwise replace Manager or renew or extend any Management Agreement (exclusive of, in each case, any automatic renewal or extension in accordance with its terms) or enter into any other new or replacement management agreement with respect to the Property; provided, however, (1) that Mortgage Borrower may replace Manager and/or consent to the assignment of Manager’s interest under a Management Agreement, in each case, in accordance with the applicable terms and conditions hereof and of the other Loan Documents or (2) if no Event of Default has occurred and is continuing and the Individual Property for which such Management Agreement has been terminated, cancelled and surrendered is a Permitted Self-Management Property, upon such termination, cancellation or surrender of such Management Agreement, Borrower shall be permitted to cause Mortgage Borrower to self-manage such Individual Property so long as Mortgage Borrower complies with the Self-Management Conditions; (ii) reduce or consent to the reduction of the term of a Management Agreement; (iii) increase or consent to the increase of the amount of any charges under a Management Agreement; or (iv) otherwise modify, change, alter or amend, in any material respect, or waive or release any of its material rights and remedies under, a Management Agreement in any material respect.  
(c)    If Mortgage Borrower shall default in the performance or observance of any material term, covenant or condition of any Management Agreement on the part of Mortgage Borrower to be performed or observed, then, without limiting the generality of the other provisions of this Agreement, and without waiving or releasing Borrower from any of its obligations hereunder, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate to cause all the terms, covenants and conditions of such Management Agreement on the part of Mortgage Borrower to be performed or observed to be promptly performed or observed on behalf of Mortgage Borrower, to the end that the rights of Mortgage Borrower in, to and under the Management Agreement shall be kept unimpaired and free from default.  Subject to the rights of Mortgage Lender under the Mortgage Loan Documents, Lender and any Person designated by Lender shall have, and are hereby granted, the right (subject to the rights of Tenants and to the extent permitted by Legal Requirements and Health Care Requirements) to enter upon the related Individual Property at any time and from time to time for the purpose of taking any such action.  If Manager shall deliver to Lender a copy of any notice sent to Mortgage Borrower of default under any Management Agreement, such notice shall constitute full protection to Lender for any action taken or omitted to be taken by Lender in good faith, in reliance thereon.  Manager has agreed to sub-contract to the un-Affiliated third-parties set forth on Schedule XX attached hereto its management responsibilities pursuant to the applicable Sub-Management Agreements set opposite such third-party.  Borrower shall or shall cause Mortgage Borrower to notify Lender if Manager further sub-contracts to a third party or an Affiliate any or all of its management responsibilities under the Management Agreement and Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause Manager to cause any sub-contracts of its management responsibilities to be entered into in accordance with the terms and conditions of the Assignment of Management Agreement.
(d)    Borrower shall or shall cause Mortgage Borrower to, from time to time, use commercially reasonable efforts to obtain from Manager under each Management Agreement such certificates of estoppel with respect to compliance by Mortgage Borrower with the terms of each Management Agreement as may be requested by Lender.

    
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(e)    Borrower shall have the right to cause Mortgage Borrower to replace Manager or consent to the assignment of Manager’s rights under any Management Agreement, in each case, to the extent that (i) no Event of Default has occurred and is continuing, (ii) Lender receives at least thirty (30) days prior written notice of the same, (iii) such replacement or assignment (as applicable) will not result in a Property Document Event, and (iv) the applicable New Manager is a Qualified Manager engaged pursuant to a Qualified Management Agreement and such Qualified Manager has obtained all required approvals from the applicable Health Care Authorities.  Manager shall not (and Borrower shall not permit Mortgage Borrower to permit Manager to) resign as Manager or otherwise cease managing any Individual Property (i) until a New Manager is engaged to manage such Individual Property in accordance with the applicable terms and conditions hereof and of the other Loan Documents or (ii) if no Event of Default has occurred and is continuing and the Individual Property for which Manager has resigned is a Permitted Self-Management Property, Borrower shall be permitted to cause Mortgage Borrower to self-manage such Individual Property so long as Borrower complies with the Self-Management Conditions.  
(f)    Without limitation of the foregoing, if any Management Agreement is terminated or expires (including, without limitation, pursuant to the Assignment of Management Agreement), comes up for renewal or extension (exclusive of, in each case, any automatic renewal or extension in accordance with its terms) but is not renewed or extended, ceases to be in full force or effect or is for any other reason no longer in effect (including, without limitation, in connection with any Sale or Pledge), then Borrower shall either (A) cause Mortgage Borrower to engage, in accordance with the terms and conditions set forth herein, a New Manager to manage the related Individual Property, which such New Manager shall (i) to the extent a Trigger Period pursuant to clause (A)(ii) of the definition of Trigger Period is continuing or an Event of Default has occurred and is continuing and if opted by Lender, be selected by Lender and (ii) be a Qualified Manager and shall be engaged pursuant to a Qualified Management Agreement or (B) if no Event of Default has occurred and is continuing and the Individual Property related to such Management Agreement which was terminated or expired is a Permitted Self-Management Property, Borrower to cause Mortgage Borrower to self-manage such Individual Property so long as Mortgage Borrower complies with the Self Management Conditions.
(g)    As conditions precedent to any engagement of a New Manager hereunder, (i) New Manager, Borrower and Mortgage Borrower shall execute a Subordination of Management Agreement (with such changes thereto as may be required by the Rating Agencies), (ii) to the extent that such New Manager is an Affiliated Manager, Borrower shall deliver to Lender a New Non-Consolidation Opinion with respect to such New Manager and new management agreement and (iii) if requested by Lender, Borrower shall deliver to Lender evidence reasonably satisfactory to Lender that the engagement of such New Manager will not result in a Property Document Event.
(h)    Borrower shall or shall cause Mortgage Borrower to notify Lender in writing, within five (5) Business Days following receipt thereof, of Mortgage Borrower’s receipt of any early termination fee or similar payment or other termination fee or similar payment paid by any Manager, and Borrower further covenants and agrees that Borrower shall cause Mortgage Borrower to cause any such termination fee or payment to be promptly deposited into the Cash Management Account.

    
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(i)    In the event that an Event of Default has occurred and is continuing, Lender shall have the right to require Borrower to require Mortgage Borrower to appoint a Qualified Manager, which is not an Affiliate of Borrower, to manage all Permitted Self-Management Properties self-managed by Mortgage Borrower pursuant to a Qualified Management Agreement in accordance with the terms and conditions of this Agreement.  In addition, in the event that (i) an Individual Property or Properties shall cease to be a Permitted Self-Management Property and/or (ii) the Self-Management Conditions shall no longer be satisfied, Lender shall have the right to require Borrower to cause Mortgage Borrower to appoint a Qualified Manager to manage all Permitted Self-Management Properties self-managed by Mortgage Borrower pursuant to a Qualified Management Agreement in accordance with the terms and conditions of this Agreement.
(j)    Lender’s consent (not to be unreasonably withheld, conditioned or delayed) shall be required with respect to any Sale or Pledge of any Affiliated Manager, which consent may be conditioned upon receipt of a New Non-Consolidation Opinion.
(k)    Any sums expended by Lender pursuant to this Section shall bear interest at the Default Rate from the date such cost is incurred to the date of payment to Lender, shall be deemed to constitute a portion of the Debt, shall be secured by the lien of the Pledge Instrument and the other Loan Documents and shall be immediately due and payable upon demand by Lender therefor.
Section 4.16.    Payment for Labor and Materials.
(a)    Subject to Section 4.16(b) below, Borrower will promptly pay or cause Mortgage Borrower to pay (or cause to be paid) when due all bills and costs for labor, materials, and specifically fabricated materials incurred in connection with any non-Triple Net Leased Property (any such bills and costs with respect to any Individual Property, a “Work Charge”) and never permit to exist in respect of such non-Triple Net Leased Property or any part thereof any lien or security interest for amounts past due and payable, even though inferior to the liens and the security interests hereof, and in any event never permit to be created or exist in respect of any non-Triple Net Leased Property or any part thereof any other or additional lien or security interest other than the liens or security interests created hereby and by the Security Instruments, except for the Permitted Encumbrances.  Subject to Section 4.16(b) below, Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause each Tenant with respect to each Triple Net Leased Property to promptly pay (or cause to be paid) when due all Work Charges and shall cause Mortgage Borrower to use commercially reasonable efforts to cause each Tenant with respect to each Triple Net Leased Property to never permit to exist in respect of such Triple Net Leased Property or any part thereof any lien or security interest for amounts past due and payable, even though inferior to the liens and the security interests hereof, and in any event shall cause Mortgage Borrower to use commercially reasonable efforts to cause each Tenant with respect to each Triple Net Leased Property to never permit to be created or exist in respect of any Triple Net Leased Property or any part thereof any other or additional lien or security interest other than the liens or security interests created hereby and by the Security Instruments, except for the Permitted Encumbrances.
(b)    After prior written notice to Lender, Borrower, at its own expense, may or may cause Mortgage Borrower to contest by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the validity of any Work Charge, the applicability of any Work 

    
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Charge to Mortgage Borrower or to any Individual Property or any alleged non-payment of any Work Charge and defer paying the same, provided that (i) no Event of Default has occurred and is continuing; (ii) such proceeding shall be permitted under and be conducted in accordance with the provisions of any instrument to which Borrower or Mortgage Borrower is subject and shall not constitute a default thereunder and such proceeding shall be conducted in accordance with all applicable Legal Requirements; (iii) neither the applicable Individual Property nor any part thereof or interest therein will be in imminent danger of being sold, forfeited, terminated, cancelled or lost; (iv) Borrower shall or shall cause Mortgage Borrower to promptly upon final determination thereof pay (or cause to be paid) any such contested Work Charge determined to be valid, applicable or unpaid; (v) such proceeding shall suspend the collection of such contested Work Charge from the applicable Individual Property or Borrower or Mortgage Borrower shall have paid the same (or shall have caused the same to be paid) under protest; and (vi) in the event Mortgage Borrower has not complied with the correlative provision in the Mortgage Loan Agreement, Borrower shall or shall cause Mortgage Borrower to furnish (or cause to be furnished) such security as may be required in the proceeding, or as may be reasonably requested by Lender to insure payment of such Work Charge, together with all interest and penalties payable in connection therewith.  Lender may apply any such security or part thereof, as necessary to pay for such Work Charge at any time when, in the judgment of Lender, the validity, applicability or non-payment of such Work Charge is finally established or the applicable Individual Property (or any part thereof or interest therein) shall be in present danger of being sold, forfeited, terminated, cancelled or lost.
Section 4.17.    Performance of Other Agreements.  Borrower shall and shall cause Mortgage Borrower to observe and perform in all material respects each and every term to be observed or performed by Borrower or Mortgage Borrower pursuant to the terms of any agreement or recorded instrument affecting or pertaining to any Individual Property (or any portion thereof) or the Collateral (or any portion thereof) or given by Borrower to Lender or Mortgage Borrower to Mortgage Lender for the purpose of further securing the Debt (as defined in this Agreement and the Mortgage Loan Agreement) and any amendments, modifications or changes thereto unless the failure to so observe and perform would not have a Material Adverse Effect.
Section 4.18.    Debt Cancellation.  Borrower shall not (and shall not permit Mortgage Borrower to) cancel or otherwise forgive or release any claim or debt (other than termination of Leases in accordance with this Agreement and the Mortgage Loan Agreement) owed to Borrower or Mortgage Borrower by any Person, except for adequate consideration (or other good faith business reasons) and in the ordinary course of Borrower’s or Mortgage Borrower’s business.
Section 4.19.    ERISA.
(a)    Borrower shall not engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder (or the exercise by Lender of any of its rights hereunder or under the other Loan Documents) to be a non exempt (under a statutory or administrative class exemption) prohibited transaction under ERISA.
(b)    Borrower further covenants and agrees to deliver to Lender such certifications or other evidence from time to time throughout the term of the Pledge Agreement, as requested by Lender in its reasonable discretion, that (i) Borrower is not an “employee benefit plan” as defined 

    
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in Section 3(3) of ERISA, or other retirement arrangement, which is subject to Title I of ERISA or Section 4975 of the Code, or a “governmental plan” within the meaning of Section 3(32) of ERISA; (ii) Borrower is not subject to state statutes regulating investments and fiduciary obligations with respect to governmental plans; and (iii) one or more of the following circumstances is true:
(A)    Equity interests in Borrower are publicly offered securities, within the meaning of 29 C.F.R. § 2510.3 101(b)(2);
(B)    Less than twenty-five percent (25%) of each outstanding class of equity interests in Borrower are held by “benefit plan investors” within the meaning of 29 C.F.R.§ 2510.3 101(f)(2); or
(C)    Borrower qualifies as an “operating company” or a “real estate operating company” within the meaning of 29 C.F.R. § 2510.3 101(c) or (e) or an investment company registered under The Investment Company Act of 1940, as amended.
(c)    Borrower shall not maintain, sponsor, contribute to or become obligated to contribute to, or suffer or permit any member of Borrower’s “controlled group of corporations” to maintain, sponsor, contribute to or become obligated to contribute to a “defined benefit plan” or a “multiemployer pension plan”.  The terms in quotes above are defined in Section 3.7 of this Agreement.  
Section 4.20.    No Joint Assessment.  Except as set forth on Schedule XXI hereto, Borrower shall not (and shall not permit Mortgage Borrower to) suffer, permit or initiate the joint assessment of any Individual Property with (a) any other real property constituting a tax lot separate from the applicable Individual Property, or (b) any portion of the applicable Individual Property which may be deemed to constitute personal property, or any other procedure whereby the lien of any taxes which may be levied against such personal property shall be assessed or levied or charged to the applicable Individual Property.
Section 4.21.    Alterations.  Notwithstanding anything contained herein (including, without limitation, Article 8 hereof) to the contrary, Lender’s prior approval shall be required in connection with (I) any alterations to any Improvements with respect to any Individual Property that is not a Triple Net Leased Property (the “Landlord Alterations”) and (II) any alterations to any Improvements with respect to any Individual Property that is a Triple Net Leased Property to the extent that Borrower has the right to consent to, or approve, such alterations, in each instance (a) that may have a Material Adverse Effect, (b) the cost of which (including any related alteration, improvement or replacement) is reasonably anticipated to exceed the applicable Alteration Threshold or (c) that are structural in nature, which approval may be granted or withheld in Lender’s reasonable discretion.  If the total unpaid amounts incurred and to be incurred with respect to any such Landlord Alterations to the Improvements shall at any time exceed the applicable Alteration Threshold, in the event that Mortgage Borrower has not complied with the correlative provision in the Mortgage Loan Agreement and neither Mezzanine Borrower has complied with the correlative provisions of the applicable Mezzanine Loan Documents, Borrower shall promptly deliver to Lender as security for the payment of such amounts and as additional security for Borrower’s obligations 

    
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under the Loan Documents any of the following: (i) cash, (ii) U.S. Obligations, (iii) other security reasonably acceptable to Lender, (provided that Lender shall have received a Rating Agency Confirmation as to the form and issuer of same), (iv) a completion guaranty from Guarantor (provided that Lender shall have received a New Non-Consolidation Opinion and a Rating Agency Confirmation with respect to the same) or (v) a completion bond (provided that Lender shall have received a Rating Agency Confirmation as to the form and issuer of same).  Such security shall be in an amount equal to the excess of the total unpaid amounts incurred and to be incurred with respect to such alterations to the Improvements over the applicable Alteration Threshold.
Section 4.22.    Property Document Covenants.  Without limiting the other provisions of this Agreement and the other Loan Documents, Borrower shall (i) (A) with respect to any non-Triple Net Leased Property, promptly perform and/or observe, (or cause to be performed and/or observed) in all material respects, all of the covenants and agreements required to be performed and observed by it and Mortgage Borrower under the Property Documents (except to the extent the failure to so perform and observe would not have a Material Adverse Effect) and do all things necessary to preserve and to keep unimpaired its and Mortgage Borrower’s material rights thereunder and (B) with respect to any Triple Net Leased Property, cause Mortgage Borrower to use commercially reasonable efforts to cause each Tenant thereunder to promptly perform and/or observe, in all material respects, all of the covenants and agreements required to be performed and observed by such Tenant under the Property Documents (except to the extent the failure to so perform and observe would not have a Material Adverse Effect) and do all things necessary to preserve and to keep unimpaired its and Mortgage Borrower’s material rights thereunder; (ii) promptly notify Lender of any material default under the Property Documents of which it is aware; (iii) promptly deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, notice, report and estimate received by it or Mortgage Borrower under the Property Documents; (iv) (A) with respect to any non-Triple Net Leased Property cause Mortgage Borrower to enforce the performance and observance of all of the covenants and agreements required to be performed and/or observed under the Property Documents in a commercially reasonable manner and (B) with respect to any Triple Net Leased Property, use commercially reasonable efforts to cause each Tenant thereunder to enforce the performance and observance of all of the covenants and agreements required to be performed and/or observed under the Property Documents in a commercially reasonable manner; (v) (A) with respect to any non-Triple Net Leased Property, cause Mortgage Borrower to use commercially reasonable efforts to cause the applicable non-Triple Net Leased Property to be operated, in all material respects, in accordance with the Property Documents and (B) with respect to any Triple Net Leased Property, cause Mortgage Borrower to use commercially reasonable efforts to cause each Tenant thereunder to use commercially reasonable efforts to cause the applicable Triple Net Leased Property to be operated, in all material respects, in accordance with the Property Documents; and (vi) not, without the prior written consent of Lender (not to be unreasonably withheld or as permitted pursuant to Section 4.23 hereof with respect to each Ground Lease), (A) enter into (or permit Mortgage Borrower to enter into) any new Property Document or replace or execute modifications (or permit Mortgage Borrower to replace or so execute modifications) to any existing Property Documents or renew or extend (or permit Mortgage Borrower to renew or extend) the same (exclusive of, in each case, any automatic renewal or extension in accordance with its terms), (B) surrender, terminate or cancel the Property Documents (or permit Mortgage Borrower to do same), (C) reduce or consent to the reduction of the term of 

    
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the Property Documents (or permit Mortgage Borrower to do same), (D) increase or consent to the increase of the amount of any charges under the Property Documents (or permit Mortgage Borrower to do same), (E) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Property Documents in any material respect (or permit Mortgage Borrower to do same) or (F) following the occurrence and during the continuance of an Event of Default, exercise any rights, make any decisions, grant any approvals or otherwise take any action under the Property Documents (or permit Mortgage Borrower to do same).
Section 4.23.    Ground Lease Covenants.  Without limitation of the other provisions herein (including, without limitation, Section 4.22 hereof), each Borrower makes the following covenants with respect to each Ground Lease:
(a)    Borrower shall cause Mortgage Borrower to (i) pay (or cause to be paid) all rents, additional rents and other sums required to be paid by Mortgage Borrower, as tenant under and pursuant to the provisions of each Ground Lease, (ii) diligently perform and observe (or cause to be performed and observed) all of the terms, covenants and conditions of each Ground Lease on the part of Mortgage Borrower, as tenant thereunder, (iii) promptly notify Lender of the giving of any notice by the landlord under any Ground Lease to Mortgage Borrower of any default by Mortgage Borrower and deliver to Lender a true copy of each such notice within five (5) Business Days of receipt, and (iv) promptly notify Lender of any bankruptcy, reorganization or insolvency of the landlord under any Ground Lease or of any notice thereof, and deliver to Lender a true copy of such notice within five (5) Business Days of Mortgage Borrower’s receipt.
(b)    Borrower shall not permit Mortgage Borrower to, without the prior consent of Lender (which consent shall not be unreasonably withheld in the case of clause (ii) of this subsection (b)), (i) surrender the leasehold estate created by any Ground Lease or terminate or cancel any Ground Lease or (ii) modify, change, supplement, alter or amend any Ground Lease, either orally or in writing (provided that Lender’s consent shall not be required for any modification of any Ground Lease that extends its term but does not change any of its other terms and conditions (other than to a de minimis extent)), and if Mortgage Borrower shall default in the performance or observance of any term, covenant or condition of any Ground Lease on the part of Mortgage Borrower and shall fail to cure the same prior to the expiration of any applicable cure period provided thereunder, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate to cause all of the terms, covenants and conditions of such Ground Lease on the part of Mortgage Borrower to be performed or observed on behalf of Mortgage Borrower, to the end that the rights of Mortgage Borrower in, to and under such Ground Lease shall be kept unimpaired and free from default.  If the landlord under any Ground Lease shall deliver to Lender a copy of any notice of default under such Ground Lease, such notice shall constitute full protection to Lender for any action taken or omitted to be taken by Lender, in good faith, in reliance thereon.
(c)    Borrower shall cause Mortgage Borrower to exercise each individual option, if any, to extend or renew the term of each Ground Lease within sixty (60) days prior to the expiration of such Ground Lease (the “Renewal Deadline”) (unless such option is not permitted to be exercised until after a date that is sixty (60) days prior to the expiration of such Ground Lease, in which 

    
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instance Mortgage Borrower shall exercise each individual option on the earliest permitted date), and, subject to the terms of the Mortgage Loan Documents, Borrower hereby expressly authorizes and appoints Lender its attorney-in-fact to exercise any such option in the name of and upon behalf of Borrower to cause Mortgage Borrower to take such action, which power of attorney shall be irrevocable and shall be deemed to be coupled with an interest.  Borrower’s failure to cause Mortgage Borrower to exercise the aforesaid renewal option within the aforesaid period shall, at Lender’s option, constitute an immediate Event of Default hereunder.
(d)    Notwithstanding anything contained in any Ground Lease to the contrary, Borrower shall not permit Mortgage Borrower to, without prior written consent of Lender, sublet any portion of the leasehold estate created by the Ground Lease except in accordance with the express terms and conditions of this Agreement.
(e)    In the event that, pursuant to Section 4.17(b) of that certain Ground Lease, dated November 29, 2007, between Mortgage Borrower and Catholic Health Initiatives Colorado, a nonprofit Colorado corporation d/b/a St. Anthony North Hospital (the “St. Anthony Ground Lease”), the applicable Fee Owner elects to terminate the St. Anthony Ground Lease because Mortgage Borrower does not agree to bear any remedial expenses (with respect to contamination of the Leased Land, as defined in the St. Anthony Ground Lease, existing as of the Lease Commencement Date, as defined in the St. Anthony Ground Lease) in excess of $100,000.00, then (i) such termination shall be a Property Document Event, and an Event of Default pursuant to Section 10.1(t) hereof, provided, however, that Borrower may avoid the occurrence of such Event of Default by prepaying the Loan within fifteen (15) Business Days of such termination of the St. Anthony Ground Lease in accordance with the terms and conditions of Section 2.7 hereof, in an amount equal to the Release Price for the applicable portion of the equity Collateral associated with the Individual Property subject to the St. Anthony Ground Lease together with any other amounts which would be due or payable in connection with the Release of the applicable portion of the equity Collateral associated with such Individual Property pursuant to Section 2.10 hereof, and (ii) such termination shall be deemed to be a “voluntary termination” of the St. Anthony Ground Lease for the purpose of Section 13.1(a)(xi) hereof, unless Borrower shall prepay the Loan in accordance with the foregoing clause (i).
Section 4.24.    Operating Lease Covenants.
(a)    Each Borrower represents, covenants and warrants that it is the express intent of Mortgage Borrower and Operating Lessee that the Operating Lease constitute a lease under applicable real property laws and laws governing bankruptcy, insolvency and creditors’ rights generally, and that the sole interest of the Operating Lessee in each applicable Individual Property is as tenant under the Operating Lease.  In the event that it shall be determined that the Operating Lease is not a lease under applicable real property laws and laws governing bankruptcy, insolvency and creditors’ rights generally, and that the interest of the Operating Lessee in any applicable Individual Property is other than that of tenant under the Operating Lease, Borrower hereby covenants and agrees that it shall cause Mortgage Borrower to cause the Operating Lessee’s interest in such Individual Property, however characterized, to continue to be subject and subordinate to the 

    
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lien of the Security Instruments on all the same terms and conditions as contained in the Operating Lease and the applicable Security Instrument.
(b)    Without Lender’s prior written consent (such consent not to be unreasonably withheld, conditioned or delayed), Borrower shall not permit Mortgage Borrower to (a) surrender, terminate or cancel the Operating Lease, (b) reduce or consent to the reduction of the term of the Operating Lease, (c) increase or consent to the increase or decrease or consent to the decrease of the amount of any charges under the Operating Lease, (d) modify, change, supplement, alter or amend the Operating Lease or waive or release any of Mortgage Borrower’s rights and remedies under the Operating Lease; or (e) waive, excuse, condone or in any way release or discharge the Operating Lessee of or from Operating Lessee’s obligations, covenants and/or conditions under the Operating Lease, in each instance to the extent the same shall be reasonably likely to result in a Portfolio Material Adverse Effect.
(c)    Subject to the terms of the Mortgage Loan Documents, Borrower hereby assigns to Lender, as further security for the payment and performance of the Debt and observance of the terms, covenants and conditions of this Agreement and the other Loan Documents, all of the rights, privileges and prerogatives of each applicable Mortgage Borrower, as landlord and each applicable Operating Lessee, as tenant, as applicable, under each Operating Lease to cause Mortgage Borrower to surrender the leasehold estates created by such Operating Lease or to terminate, cancel, modify, change, supplement, alter or amend such Operating Lease to the extent the same shall be reasonably likely to result in a Portfolio Material Adverse Effect, subject only to rights granted to Borrower and Operating Lessee pursuant to this Section 4.24 hereof, and any such surrender of the leasehold estate created by such Operating Lease or termination, cancellation, modification, change, supplement, alteration or amendment of such Operating Lease not permitted pursuant to the foregoing terms of this Section 4.24 shall be void and of no force or effect.
(d)    If at any time Operating Lessee shall default in the performance or observance of any term, covenant or condition of any Operating Lease to be performed or observed by Operating Lessee as tenant thereunder and such default has resulted in (or is reasonably likely to result in) a Portfolio Material Adverse Effect, if such default is not remedied within the lesser of (i) ten (10) Business Days of receipt of notice by Borrower from Lender and (ii) such period of time as, should Operating Lessee fail to remedy such default after receipt of notice thereof, shall give Lender a reasonable period of time to cure such default, then, without limiting the generality of the other provisions of this Section 4.24, and without waiving or releasing Operating Lessee from any of its obligations under this Agreement and the other Loan Documents, Lender shall have the right, subject to the terms of the Mortgage Loan Documents, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate to cause all of the terms, covenants and conditions of each Operating Lease on the part of Operating Lessee, as tenant thereunder, to be performed or observed or to be promptly performed or observed on behalf of Operating Lessee, to the end that the rights of Operating Lessee in, to and under such Operating Lease shall be kept unimpaired and free from default.  If Lender shall make any payment or perform any act or take action in accordance with the preceding sentence, Lender will notify Operating Lessee thereof.  In any such event, subject to the rights of tenants, subtenants and other occupants under the Leases, Lender and any Person designated by Lender shall have, and are hereby granted, the right to enter 

    
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upon the Properties at any time and from time to time for the purpose of taking any such action.  If Borrower shall deliver to Lender a copy of any notice of default sent by Mortgage Borrower to Operating Lessee, as tenant under any Operating Lease, such notice shall constitute full protection to Lender for any action taken or omitted to be taken by Lender, in good faith, in reliance thereon.  Any sums expended by Lender pursuant to this paragraph shall bear interest at the Default Rate from the date such cost is incurred to the date of payment to Lender, shall be deemed to constitute a portion of the Debt, shall be secured by the lien of the Pledge Agreement and the other Loan Documents and shall be immediately due and payable upon demand by Lender therefor.
(e)    If at any time Mortgage Borrower shall default in the performance or observance of any term, covenant or condition of any Operating Lease to be performed or observed by Mortgage Borrower, as landlord thereunder and such default has resulted in (or is reasonably likely to result in) a Portfolio Material Adverse Effect if such default is not remedied within the lesser of (i) ten (10) Business Days of receipt of notice by Borrower from Lender and (ii) such period of time as, should Borrower fail to remedy such default after receipt of notice thereof, shall give Lender a reasonable period of time to cure such default, then, without limiting the generality of the other provisions of this Section 4.24, and without waiving or releasing Borrower from any of its obligations under this Agreement and the other Loan Documents, Lender shall have the right, subject to the terms of the Mortgage Loan Documents, but shall be under no obligation, to pay any sums and to perform any act or take any action as may be appropriate to cause all of the terms, covenants and conditions of such Operating Lease on the part of Mortgage Borrower, as landlord thereunder, to be performed or observed or to be promptly performed or observed on behalf of Mortgage Borrower, to the end that the rights of Mortgage Borrower in, to and under such Operating Lease shall be kept unimpaired and free from default.  If Lender shall make any payment or perform any act or take action in accordance with the preceding sentence, Lender will notify Borrower thereof.  In any such event, subject to the rights of tenants, subtenants and other occupants under the Leases, Lender and any Person designated by Lender shall have, and are hereby granted, the right to enter upon the Property at any time and from time to time for the purpose of taking any such action.  If Operating Lessee shall deliver to Lender a copy of any notice of default sent by Operating Lessee to Mortgage Borrower, as landlord under any Operating Lease, such notice shall constitute full protection to Lender for any action taken or omitted to be taken by Lender, in good faith, in reliance thereon.  Any sums expended by Lender pursuant to this paragraph shall bear interest at the Default Rate from the date such cost is incurred to the date of payment to Lender, shall be deemed to constitute a portion of the Debt, shall be secured by the lien of the Pledge Agreement and the other Loan Documents and shall be immediately due and payable upon demand by Lender therefor.
(f)    In the event of the bankruptcy, reorganization or insolvency of Mortgage Borrower (including Operating Lessee), any attempt by Mortgage Borrower (including Operating Lessee) to surrender its leasehold estate, or any portion thereof, under any Operating Lease, or any attempt under such circumstances by Mortgage Borrower (including Operating Lessee) to terminate, cancel or acquiesce in the rejection of any Operating Lease without the consent of Lender shall be null and void.  Borrower and Mortgage Borrower (including Operating Lessee) each hereby expressly releases, assigns, relinquishes and surrenders unto Lender all of its right, power and authority to terminate, cancel, acquiesce in the rejection of, modify, change, supplement, alter or amend each Operating Lease in any respect, either orally or in writing, in the event of the bankruptcy, 

    
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reorganization or insolvency of Borrower (including Operating Lessee), and any attempt on the part of Borrower or Mortgage Borrower (including Operating Lessee) to exercise any such right without the consent of Lender shall be null and void.
(g)    Intentionally Omitted.
(h)    Subject to the terms of the Mortgage Loan Documents, Lender shall have the right, but shall be under no obligation, to exercise on behalf of Borrower (and to exercise on behalf of Mortgage Borrower) or Operating Lessee any renewal or extension options under each Operating Lease if Mortgage Borrower and Operating Lessee shall fail to exercise any such options to the extent the same is reasonably likely to result in a Portfolio Material Adverse Effect.  
(i)    In connection with any Secondary Market Transaction and otherwise no more often than one time per calendar year, Borrower shall within fifteen (15) days after request by Lender, execute, acknowledge and deliver a statement certifying as to the existence of any defaults under each Operating Lease and as to the rent payable thereunder.
Section 4.25.    Health Care Covenants.
(a)    Borrower shall cause Operating Lessee to cause the operations conducted or to be conducted at each RIDEA Facility to be conducted in a manner consistent in all material respects with Health Care Requirements and, in connection therewith, Borrower covenants that:
(i)    Operating Lessee shall cause a standard of care to be maintained for the residents of each RIDEA Facility at all times at a level necessary to insure a level of quality care for the residents of such RIDEA Facility in compliance in all material respects with Health Care Requirements;
(ii)    Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause each Master Tenant and each Subtenant to cause a standard of care to be maintained in the storage, use, transportation and disposal of all medical equipment, medical supplies, medical products or gases, and medical waste, of any kind and in any form, that is in compliance in all material respects with all applicable Legal Requirements and Health Care Requirements;
(iii)    Operating Lessee shall cause each RIDEA Facility to be operated in a prudent manner in material compliance with applicable Health Care Requirements relating thereto and all material Health Care Licenses and Program participation agreements;
(iv)    Operating Lessee shall cause all deposits relating to Health Care Requirements, including deposits relating to residents or residency agreements to be maintained in material compliance with all Health Care Requirements.  Operating Lessee shall, upon reasonable written request, provide Lender with evidence reasonably satisfactory to Lender of Operating Lessee compliance with the foregoing; and

    
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(v)    Operating Lessee shall cause all residency and other agreements with residents of the RIDEA Facilities to materially comply with all applicable Health Care Requirements.
(b)    Operating Lessee shall not and Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to not cause or permit any Master Tenant and/or any Subtenant to, (A) assign or transfer any of its interest in any Health Care Licenses or Program (including rights to payment thereunder) pertaining to Mortgage Borrower, such Master Tenant and/or such Subtenant or any applicable Facility, including each RIDEA Facility, as applicable, or (B) assign or transfer, remove or permit any other Person to physically transfer or remove any current records pertaining to any applicable Facility, including each RIDEA Facility, as applicable, therefrom, including a material number of resident records, medical and clinical records (except for removal of such patient resident records as directed by the patients or residents owning such records), without Lender’s prior written consent, which consent shall not be unreasonably withheld.
(c)    Operating Lessee shall not and Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause each Master Tenant and/or each Subtenant to not, with respect to each Health Care License (i) transfer such Health Care License to any location other than the applicable Facility, including each RIDEA Facility, as applicable or (ii) pledge such Health Care License as collateral security and Operating Lessee shall hold (and Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause Master Tenant and/or Subtenant to hold) such Health Care License free from restriction or known conflict that would reasonably be expected to have an Material Adverse Effect.
(d)    Operating Lessee shall not materially change the terms of any Program participation agreement or its normal billing, payment or reimbursement policies or related procedures, including the amount and timing of finance charges, fees and write-offs.
(e)    Operating Lessee shall (i) use commercially reasonable efforts to ensure that all required Program cost reports and all required filings for the RIDEA Facilities are accurate and complete and not misleading in any material respect, and (ii) file all required Program cost reports and required filings on or prior to the date such reports are due including any extensions.  Operating Lessee will make available to Lender a complete and accurate copy of all Program cost reports and required filings for Operating Lessee and thereafter promptly make available to Lender any amendments filed with respect to such reports and all notices, responses, audit reports or inquiries with respect to such reports.
(f)    Operating Lessee shall furnish Lender, within thirty (30) days of receipt but at least five (5) days prior to the earliest date on which Operating Lessee is required to take any action with respect thereto or would suffer any adverse consequence, a copy of any Health Care Authority or Program survey report or any statement of deficiencies relating to a RIDEA Facility, including for any Skilled Nursing Facility any reports making a finding of “Immediate Jeopardy”, a deficiency score of “substandard quality of care” (as that term is defined in Part 488 or 42 C.F.R.), or a “G” level deficiency cited in two consecutive Facility Surveys in a case where a “G” level deficiency was found in a Facility Survey earlier in the same cycle, and for each RIDEA Facility, within the time period required by the particular Health Care Authority or Program for furnishing a plan of 

    
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correction also furnish or cause to be furnished to Lender a copy of the plan of correction generated from such Facility survey or report for Operating Lessee and all subsequent correspondence related thereto, and use commercially reasonable efforts to correct or cause to be corrected any deficiency, the curing of which is a condition of continued licensure or of full participation in any Program by the date required for cure by such Health Care Authority (plus extensions granted by such Health Care Authority).
(g)    Operating Lessee shall furnish Lender, within ten (10) Business Days after receipt thereof by Operating Lessee, any other notices or charges issued relating to the material non‐compliance by Operating Lessee with Health Care Requirements, provided however that Lender shall be promptly notified in writing of any inquiry or investigation relating to a RIDEA Facility by any State Medicaid Fraud Control Unit, any State Office of Medicaid Inspector General, any State Attorney General, the United States Department of Health and Human Services, Office of the Inspector General, or by the United States Department of Justice of the Operating Lessee or any RIDEA Facility.
(h)    Borrower or Mortgage Borrower shall provide prompt written notice upon learning of any inquiry or investigation relating to a Non-RIDEA Facility by the State Medicaid Fraud Control Unit, the State Office of Medicaid Inspector General, the State Attorney General, the United States Department of Health and Human Services, Office of the Inspector General, or by the United States Department of Justice of a Master Tenant, Subtenant or any Non-RIDEA Facility.
(i)    Operating Lessee shall cause all admission agreements and services agreements with residences of the RIDEA Facilities to materially comply with all Health Care Requirements.  Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause all admission agreements and services agreement with residents of the Non-MOB Facilities (other than the RIDEA Facilities) to materially comply with all Health Care Requirements.
(j)    Operating Lessee shall furnish Lender, within ten (10) Business Days of the receipt by Operating Lessee, any and all written notices from any Health Care Authority or Program that (i) Operating Lessee’s Program certification, as applicable, is being or could reasonably be expected to be revoked or suspended or (ii) action is being taken by such Health Care Authority or Program to discontinue, suspend, deny, materially decrease or recoup any material payments due, made or coming due to Operating Lessee, or related to the operation of any RIDEA Facility, any of which would reasonably be expected to have a Material Adverse Effect.
(k)    Operating Lessee shall cause each RIDEA Facility to be operated in a manner that will not result in a reduction, suspension, denial or elimination of reimbursement for services from, or recoupment for, any Program, any of which could reasonably be expected to have a Material Adverse Effect.  Borrower shall cause Mortgage Borrower to use commercially reasonable efforts to cause each Master Tenant and each Subtenant to cause the Non-MOB Facilities (other than the RIDEA Facilities) to be operated in a manner that will not result in a reduction, suspension, denial or elimination of reimbursement for services from, or recoupment for, any Program.
(l)    Borrower shall, and shall cause Mortgage Borrower to use commercially reasonable efforts to cause each of its Tenants (including, without limitation, any Master Tenant and any 

    
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Subtenant) to deliver all reporting required to be delivered by such Tenant under such Tenant’s Lease and Borrower shall, within five (5) Business Days of its receipt thereof, deliver to Lender all reporting delivered by Tenant to Borrower.
Section 4.26.    Master Tenant and Subtenant Indebtedness.  Borrower shall cause Mortgage Borrower to use commercially reasonable efforts (including, without limitation, the filing of legal action to enforce Mortgage Borrower’s rights and remedies under the applicable Master Lease and Sublease, as applicable) to cause each Master Tenant and each Subtenant to conform to the limitations on Indebtedness set forth in each related Master Lease and each related Sublease, as applicable, and shall enforce its rights under such Master Lease and such Sublease subject to and in compliance with the terms hereof in the event of a breach of such provisions by such Master Tenant and/or by such Subtenant.  Borrower shall not permit Mortgage Borrower to waive compliance by any Master Tenant and/or any Subtenant with such provisions, shall not consent to any modification of such provisions and shall not amend such provisions in each case without the prior written consent of Lender, not to be unreasonably withheld, conditioned or delayed.
Section 4.27.    Affiliates.  Without Lender’s consent, Borrower shall not permit Mortgage Borrower to at any time during the term of the Loan be or become an Affiliate of any Master Tenant and/or any Subtenant.  
Section 4.28.    Material Agreements and Affiliate Agreements.  Borrower shall not and shall cause Mortgage Borrower to not, without Lender’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed), (a) enter into, surrender or terminate any Material Agreement or Affiliate Agreement to which it is a party, (b) increase or consent to the increase of the amount of any charges under any Material Agreement or Affiliate Agreement to which it is a party, (c) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under any Material Agreement or Affiliate Agreement to which it is a party in any material respect, or (d) pay any fee or consideration under an Affiliate Agreement other than in accordance with the terms and conditions thereof.  Neither Borrower nor Mortgage Borrower shall request or require any Manager or Sub-Manager to enter into any Affiliate Agreement.  If and to the extent that Borrower or Mortgage Borrower have a contractual right to consent or approve an Affiliate Agreement or amendment thereto, then without Lender’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed) Borrower shall not, and shall cause Mortgage Borrower to not, consent to or approve such Affiliate Agreement or amendment thereto.
Section 4.29.    Limitation on Securities Issuances.  None of Borrower nor any of its subsidiaries shall issue any limited liability company or partnership interests or other securities other than those that have been issued as of the date hereof.
Section 4.30.    Mortgage Borrower Covenants.  Unless otherwise consented to in writing by Lender, Borrower shall cause Mortgage Borrower to comply with and not to breach any covenants and agreements contained in the Mortgage Loan Documents.
Section 4.31.    Curing.  Subject to and to the extent permitted by the Mortgage Loan Documents, Lender shall have the right, but shall not have the obligation, to exercise Borrower’s 

    
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rights, if any, under the Mortgage Borrower’s organizational documents to cause Mortgage Borrower to cure a Mortgage Event of Default, unless Borrower or Mortgage Borrower shall be diligently pursuing remedies to cure to Lender’s reasonable satisfaction.  Borrower shall reimburse Lender on demand for any and all reasonable, out-of-pocket costs incurred by Lender in connection with the foregoing.
Section 4.32.    Special Distributions.  On each date on which amounts required to be disbursed to Lender pursuant to the terms of the Mortgage Loan Documents are required to be paid to Lender pursuant to the terms of any of the Loan Documents, Borrower shall exercise its rights under the Mortgage Borrower Company Agreement to cause Mortgage Borrower to make to Borrower a distribution of any unrestricted funds in Mortgage Borrower’s possession or control up to the aggregate amount required to be so disbursed to Lender on such date.
Section 4.33.    Embargoed Person.  Each Borrower Party and each Affiliated Manager has performed and shall perform reasonable due diligence to insure that at all times throughout the term of the Loan, including after giving effect to any Sale or Pledge or other transfer permitted pursuant to the Loan Documents, (a) none of the funds or other assets of any Borrower Party and/or any Affiliated Manager constitute property of, or are beneficially owned, directly or indirectly, by any Embargoed Person; (b) no Embargoed Person has any interest of any nature whatsoever in any Borrower Party or any Affiliated Manager, as applicable, with the result that the investment in any Borrower Party or any Affiliated Manager, as applicable (whether directly or indirectly), is prohibited by law or the Loan is in violation of law; and (c) none of the funds of any Borrower Party or any Affiliated Manager, as applicable, have been derived from, or are the proceeds of, any unlawful activity, including money laundering, terrorism or terrorism activities, with the result that the investment in any Borrower Party or any such Affiliated Manager, as applicable (whether directly or indirectly), is prohibited by law or the Loan is in violation of law, or may cause any Individual Property (or any portion thereof) to be subject to forfeiture or seizure.  Any violation of the foregoing shall, at Lender’s option, constitute an Event of Default hereunder.
ARTICLE 5. 
 
ENTITY COVENANTS
Section 5.1.    Single Purpose Entity/Separateness.
(a)    Each Borrower will not without obtaining the prior written consent of Lender and, if requested by Lender, a Rating Agency Confirmation with respect thereto:
(i)    engage in any business unrelated to the acquisition, holding, ownership, operation, management, leasing, sale, transfer, exchange, financing, refinancing, improvement and maintenance of the Collateral and activities incidental, ancillary or related thereto or necessary or appropriate therefor;
(ii)    acquire or own any assets other than the Collateral;

    
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(iii)    (A) merge into or consolidate with any Person other than one or more other Borrowers, (B) dissolve, terminate or liquidate, (C) transfer or otherwise dispose of all or substantially all of its assets except as permitted by the Loan Documents, or (D) change its legal structure;
(iv)    fail to observe, in all material respects, all organizational formalities necessary to maintain its separate existence, or fail to preserve its existence as an entity duly organized, validly existing and in good standing (if applicable) under the applicable Legal Requirements of the jurisdiction of its organization or formation, or amend, modify, terminate or fail to comply with the special purpose entity/bankruptcy remote provisions of its organizational documents (provided, that, such organizational documents may be amended or modified to the extent that, in addition to the satisfaction of the requirements related thereto set forth therein, Lender’s prior written consent and, if required by Lender, a Rating Agency Confirmation are first obtained);
(v)    own any subsidiary, or make any investment in, any Person other than Mortgage Borrower or any SPE Component Entity (as defined in the Mortgage Loan Agreement);
(vi)    commingle its funds or assets with the funds or assets of any other Person (except for one or more other Borrowers);
(vii)    incur any Indebtedness, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than (A) the Debt, (B) trade and operational indebtedness incurred in the ordinary course of business with trade creditors or in the routine administration of its affairs not to exceed $25,000, provided such indebtedness is (1) unsecured (it being understood that indebtedness secured only by Permitted Encumbrances will be deemed unsecured), (2) not evidenced by a note, and (3) due not more than ninety (90) days past the date incurred and is either paid on or prior to such date or being contested in good faith, and/or (C) such other liabilities as are permitted pursuant to this Agreement;
(viii)    fail to maintain all of its books, records, financial statements and bank accounts separate from those of any other Person (except for one or more other Borrowers).  Borrower’s assets will not be listed as assets on the financial statement of any other Person (except for one or more other Borrowers); provided, however, that Borrower’s assets may be included in a consolidated financial statement of its Affiliates provided that (A) any such consolidated financial statement contains a note indicating that the Borrower’s separate assets and credit are not available to pay the debts of such Affiliate and that Borrower’s liabilities do not constitute obligations of the consolidated entity, except that one or more other Borrowers may be liable, and Guarantor may be liable (to the extent provided in the Guaranty and the Environmental Indemnity), for obligations of any Borrower and (B) such assets shall also be listed on the balance sheet of one or more Borrowers, as applicable.  Borrower has maintained and will maintain its books, records, resolutions and agreements as official records;

    
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(ix)    except for capital contributions and capital distributions permitted under the terms and conditions of its organizational documents and properly reflected in its books and records, enter into any contract or agreement with any partner, member, shareholder, principal or Affiliate, except, in each case, upon terms and conditions that are substantially similar to those that would be available on an arm’s-length basis with unaffiliated third parties;
(x)    maintain its assets in such a manner that it will be costly or difficult to segregate, ascertain or identify its individual assets from those of any other Person (it being acknowledged that assets of Borrowers may be commingled);
(xi)    assume or guaranty the debts of any other Person, hold itself out to be responsible for the debts of any other Person, or otherwise pledge its assets for the benefit of any other Person or hold out its credit as being available to satisfy the obligations of any other Person, except (in each case) for one or more other Borrowers;
(xii)    make any loans or advances to any Person other than pursuant to Leases entered into in accordance with Section 4.14 hereof and in compliance with the provisions set forth in this Section 5.1;
(xiii)    fail to file its own tax returns, separate from those of any other Person, except (A) to the extent that Borrower is treated as a “disregarded entity” for tax purposes and is not required to file any tax return by applicable Legal Requirements, or (B) if Borrower is prohibited by applicable Legal Requirements from doing so;
(xiv)    fail to (A) hold itself out to the public and identify itself, in each case, as a legal entity separate and distinct from any other Person and not as a division or part of any other Person, (B) conduct its business solely in its own name or in a name franchised or licensed to it or a fictitious name registered with each applicable Governmental Authority (it being understood that such Borrower’s business may be conducted on its behalf by another Person under a management or other agreement pursuant to which the counterparty holds itself out as an agent or contractor of such Borrower), (C) hold its assets in its own name (provided that it may commingle its assets with one or more other Borrowers) or (D) correct any known misunderstanding regarding its separate identity;
(xv)    fail to maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated business operations (to the extent there exists sufficient cash flow from the applicable Individual Property to do so);
(xvi)    without the prior unanimous written consent of all of its partners, shareholders or members, as applicable, the prior unanimous written consent of its board of directors or managers, as applicable, and the prior written consent of each Independent Director (regardless of whether such Independent Director is engaged at the Borrower or SPE Component Entity level), take any Material Action with respect to Borrower or any SPE Component Entity (provided, that, none of any member, shareholder or partner (as 

    
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applicable) of Borrower or any SPE Component Entity or any board of directors or managers (as applicable) of Borrower or any SPE Component Entity may vote on or otherwise authorize the taking of any of the foregoing actions unless, in each case, there are at least two (2) Independent Directors then serving in such capacity in accordance with the terms of the applicable organizational documents and each of such Independent Directors has consented to such foregoing action);
(xvii)    fail to allocate shared expenses (including, without limitation, shared office space) or fail to use separate stationery, invoices and checks, except in each case for expenses, stationery, invoices and checks shared with one or more other Borrowers;
(xviii)    fail to pay its own liabilities (including, without limitation, salaries of its own employees and a fairly allocated portion of any personnel and overhead expenses that it shares with any Affiliate) from its own funds or fail to maintain a sufficient number of employees in light of its contemplated business operations (in each case to the extent there exists sufficient cash flow from the applicable Individual Property to do so and except for payment of any Borrower’s liabilities by one or more other Borrowers and sharing of employees, personnel or overhead expenses by one or more Borrowers);
(xix)    acquire obligations or securities of its partners, members, shareholders or other Affiliates, as applicable, except (A) any SPE Component Entity may acquire securities in any applicable Borrower, (B) any Borrower may be liable for obligations of one or more other Borrowers and (C) Borrower may own securities as permitted in clause (v) above;
(xx)    identify its partners, members, shareholders or other Affiliates, as applicable, as a division or part of it; or
(xxi)    violate or cause to be violated the assumptions made with respect to Borrower and its principals in the Non-Consolidation Opinion or in any New Non-Consolidation Opinion.
(b)    If Borrower is a partnership or limited liability company (other than an Acceptable LLC), each general partner (in the case of a partnership) and at least one member (in the case of a limited liability company) of Borrower, as applicable, shall be a corporation or an Acceptable LLC (each an “SPE Component Entity”) whose sole asset is its interest in Borrower (and personal property incidental, ancillary or related to, or necessary or appropriate for, its ownership of such interest).  Each SPE Component Entity (i) will at all times comply with each of the covenants, terms and provisions contained in Section 5.1(a)(iii) - (vi) (inclusive) and (viii) – (xxi) (inclusive) and, if such SPE Component Entity is an Acceptable LLC, Section 5.1(c) and (d) hereof, as if such representation, warranty or covenant was made directly by such SPE Component Entity; (ii) will not engage in any business or activity unrelated to owning an interest in Borrower (and personal property incidental, ancillary or related to, or necessary or appropriate for, its ownership of such interest); (iii) will not acquire or own any assets other than its partnership, membership, or other equity interest in Borrower (and personal property incidental, ancillary or related to, or necessary or appropriate for, its ownership of such interest); (iv) will at all times continue to own no less than a 0.01% direct equity ownership interest in Borrower; (v) will not incur any debt, secured or 

    
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unsecured, direct or contingent (including guaranteeing any obligation), except for trade payables not to exceed $10,000 which are incurred in the routine administration of its affairs, are unsecured, are not evidenced by a note and are due not more than ninety (90) days past the date incurred and are either paid on or prior to such date or are being contested in good faith; and (vi) will cause Borrower to comply with the provisions of this Section 5.1.
(c)    In the event Borrower or the SPE Component Entity is an Acceptable LLC, the limited liability company agreement of Borrower or the SPE Component Entity (as applicable) (the “LLC Agreement”) shall provide that (i) upon the occurrence of any event that causes the last remaining member of Borrower or the SPE Component Entity (as applicable) (“Member”) to cease to be the member of Borrower or the SPE Component Entity (as applicable) (other than (A) upon an assignment by Member of all of its limited liability company interest in Borrower or the SPE Component Entity (as applicable) and the admission of the transferee in accordance with the Loan Documents and the LLC Agreement, or (B) the resignation of Member and the admission of an additional member of Borrower or the SPE Component Entity (as applicable) in accordance with the terms of the Loan Documents and the LLC Agreement), one person acting as Independent Director of Borrower or the SPE Component Entity (as applicable) shall, without any action of any other Person and simultaneously with the Member ceasing to be the member of Borrower or the SPE Component Entity (as applicable) automatically be admitted to Borrower or the SPE Component Entity (as applicable) as a member with a 0% economic interest (“Special Member”) and shall continue Borrower or the SPE Component Entity (as applicable) without dissolution and (ii) Special Member may not resign from Borrower or the SPE Component Entity (as applicable) or transfer its rights as Special Member unless (A) a successor Special Member has been admitted to Borrower or the SPE Component Entity (as applicable) as a Special Member in accordance with requirements of Delaware law and (B) after giving effect to such resignation or transfer, there remain at least two (2) Independent Directors of the SPE Component Entity or Borrower (as applicable) in accordance with Section 5.2 below.  The LLC Agreement shall further provide that (i) Special Member shall automatically cease to be a member of Borrower or the SPE Component Entity (as applicable) upon the admission to Borrower or the SPE Component Entity (as applicable) of the first substitute member, (ii) Special Member shall be a member of Borrower or the SPE Component Entity (as applicable) that has no interest in the profits, losses and capital of Borrower or the SPE Component Entity (as applicable) and has no right to receive any distributions of the assets of Borrower or the SPE Component Entity (as applicable), (iii) pursuant to the applicable provisions of the limited liability company act of the State of Delaware (the “Act”), Special Member shall not be required to make any capital contributions to Borrower or the SPE Component Entity (as applicable) and shall not receive a limited liability company interest in Borrower or the SPE Component Entity (as applicable), (iv) Special Member, in its capacity as Special Member, may not bind Borrower or the SPE Component Entity (as applicable) and (v) except as required by any mandatory provision of the Act, Special Member, in its capacity as Special Member, shall have no right to vote on, approve or otherwise consent to any action by, or matter relating to, Borrower or the SPE Component Entity (as applicable) including, without limitation, the merger, consolidation or conversion of Borrower or the SPE Component Entity (as applicable); provided, however, such prohibition shall not limit the obligations of Special Member, in its capacity as Independent Director, to vote on such matters required by the Loan Documents or the LLC Agreement.  In order to implement the admission to Borrower or the SPE Component Entity (as applicable) of Special 

    
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Member, Special Member shall execute a counterpart to the LLC Agreement.  Prior to its admission to Borrower or the SPE Component Entity (as applicable) as Special Member, Special Member shall not be a member of Borrower or the SPE Component Entity (as applicable), but Special Member may serve as an Independent Director of Borrower or the SPE Component Entity (as applicable).
(d)    The LLC Agreement shall further provide that, to the fullest extent permitted by law (i) upon the occurrence of any event that causes the Member to cease to be a member of Borrower or the SPE Component Entity (as applicable) the personal representative of Member shall, within ninety (90) days after the occurrence of the event that terminated the continued membership of Member in Borrower or the SPE Component Entity (as applicable) agree in writing (A) to continue Borrower or the SPE Component Entity (as applicable) and (B) to the admission of the personal representative or its nominee or designee, as the case may be, as a substitute member of Borrower or the SPE Component Entity (as applicable) effective as of the occurrence of the event that terminated the continued membership of Member in Borrower or the SPE Component Entity (as applicable), (ii)  any action initiated by or brought against Member or Special Member under any Creditors Rights Laws shall not cause Member or Special Member to cease to be a member of Borrower or the SPE Component Entity (as applicable) and upon the occurrence of such an event, the business of Borrower or the SPE Component Entity (as applicable) shall continue without dissolution and (iii) each of Member and Special Member waives any right it might have to agree in writing to dissolve Borrower or the SPE Component Entity (as applicable) upon the occurrence of any action initiated by or brought against Member or Special Member under any Creditors Rights Laws, or the occurrence of an event that causes Member or Special Member to cease to be a member of Borrower or the SPE Component Entity (as applicable).
(e)    With respect to each Borrower, (i) such Borrower is and always has been duly formed, validly existing and in good standing in the State in which it was formed and in any other jurisdictions where it is qualified to do business; (ii) such Borrower has no judgments or liens of any nature presently outstanding against it (other than Permitted Encumbrances); (iii) such Borrower is in compliance with all laws, regulations and orders applicable to such Borrower and has received all permits necessary for such Borrower to operate, unless a failure to comply with or possess the same would not materially and adversely affect the condition, financial or otherwise, of such Borrower; (iv) except as set forth on Schedule XXIII hereto, no Borrower is aware of any pending or threatened litigation involving such Borrower that, if adversely determined, might materially adversely affect the condition (financial or otherwise) of such Borrower, or the condition or ownership of the property owned by such Borrower; (v) such Borrower is not involved in any dispute with any taxing authority, other than any contesting of taxes in accordance with the terms and conditions of this Agreement; (vi) intentionally omitted; (vii) such Borrower has never owned any property other than the Collateral and such personal property incidental, ancillary or related to or necessary or appropriate for the purposes described in clause (y) of this clause (vii) and (y) has never engaged in any business unrelated to the acquisition, holding, ownership, operation of the Collateral, and activities incidental, ancillary or related thereto or necessary or appropriate therefor; (viii) such Borrower is not now, nor has ever been party to any lawsuit, arbitration, summons or legal proceeding that, if adversely determined, would reasonably be expected to materially adversely affect the condition (financial or otherwise) of such Borrower or the condition or ownership of the property owned by such Borrower; (ix) all financial statements that Borrower has provided to Lender are true, correct and 

    
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complete in all material respects and reflect a fair and accurate view of the financial condition of Borrower (taken as a whole) as of the date thereof; (x) intentionally omitted; (x) such Borrower has no contingent or actual obligations not related to the Collateral, the purposes described in clause (vii) above, or the routine administration of its affairs and (xi) at all times since its formation to the date hereof, such Borrower has complied with the separateness covenants set forth in its organizational documents.
Section 5.2.    Independent Director.
(a)    The organizational documents of Borrower (to the extent Borrower is a corporation or an Acceptable LLC) or the SPE Component Entity, as applicable, shall provide that at all times there shall be at least two duly appointed independent directors or managers of such entity (each, an “Independent Director”) who each shall (I) not have been at the time of each such individual’s initial appointment, and shall not have been at any time during the preceding five years, and shall not be at any time while serving as Independent Director, either (i) a shareholder (or other equity owner) of, or an officer, director (other than in its capacity as Independent Director), partner, member or employee of, Borrower or any of its respective shareholders, partners, members, subsidiaries or Affiliates, (ii) a customer of, or supplier to, or other Person who derives any of its purchases or revenues from its activities with, Borrower or any of its respective shareholders, partners, members, subsidiaries or Affiliates, (iii) a Person who Controls or is under common Control with any such shareholder, officer, director, partner, member, employee supplier, customer or other Person, or (iv) a member of the immediate family of any such shareholder, officer, director, partner, member, employee, supplier, customer or other Person (II) shall have, at the time of their appointment, had at least three (3) years experience in serving as an independent director and (III) be employed by, in good standing with and engaged by Borrower in connection with, in each case, an Approved ID Provider (provided that, if the Approved ID Provider that employs an Independent Director is disapproved by the Rating Agencies, such Independent Director shall be deemed to satisfy this clause (III) unless and until Borrower fails to replace such Independent Director within five (5) Business Days after receiving notice of such disapproval from Lender).
(b)    The organizational documents of each Borrower and the SPE Component Entity shall further provide that (I) the board of directors or managers of Borrower and the SPE Component Entity and the constituent equity owners of such entities (constituent equity owners, the “Constituent Members”) shall not take any action set forth in Section 5.1(a)(xvi) or any other action which, under the terms of any organizational documents of Borrower or the SPE Component Entity, requires the vote of the Independent Directors unless, in each case, at the time of such action there shall be at least two Independent Directors engaged as provided by the terms hereof and such Independent Directors vote in favor of or otherwise consent to such action; (II) any resignation, removal or replacement of any Independent Director shall not be effective without (1) prior written notice to Lender and the Rating Agencies (which such prior written notice must be given on the earlier of five (5) days or three (3) Business Days prior to the applicable resignation, removal or replacement) and (2) evidence that the replacement Independent Director satisfies the applicable terms and conditions hereof and of the applicable organizational documents (which such evidence must accompany the aforementioned notice); (III) to the fullest extent permitted by applicable law, including Section 18-1101(c) of the Act and notwithstanding any duty otherwise existing at law or 

    
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in equity, the Independent Directors shall consider only the interests of the Constituent Members and Borrower and any SPE Component Entity (including Borrower’s and any SPE Component Entity’s respective creditors) in acting or otherwise voting on the matters provided for herein and in Borrower’s and SPE Component Entity’s organizational documents (which such fiduciary duties to the Constituent Members and Borrower and any SPE Component Entity (including Borrower’s and any SPE Component Entity’s respective creditors), in each case, shall be deemed to apply solely to the extent of their respective economic interests in Borrower or SPE Component Entity (as applicable) exclusive of (x) all other interests (including, without limitation, all other interests of the Constituent Members), (y) the interests of other Affiliates of the Constituent Members, Borrower and SPE Component Entity and (z) the interests of any group of Affiliates of which the Constituent Members, Borrower or SPE Component Entity is a part)); (IV) other than as provided in subsection (III) above, the Independent Directors shall not have any fiduciary duties to any Constituent Members, any directors of Borrower or SPE Component Entity or any other Person; (V) the foregoing shall not eliminate the implied contractual covenant of good faith and fair dealing under applicable law; and (VI) to the fullest extent permitted by applicable law, including Section 18-1101(e) of the Act, an Independent Director shall not be liable to Borrower, SPE Component Entity, any Constituent Member or any other Person for breach of contract or breach of duties (including fiduciary duties), unless the Independent Director acted in bad faith or engaged in willful misconduct.
Section 5.3.    Change of Name, Identity or Structure.  Borrower shall not change (or permit to be changed) Borrower’s or the SPE Component Entity’s (a) name, (b) identity (including its trade name or names), (c) principal place of business set forth on the first page of this Agreement or (d) if not an individual, Borrower’s or the SPE Component Entity’s corporate, partnership or other structure or state of formation, without, in each case, notifying Lender of such change in writing at least thirty (30) days prior to the effective date of such change and, in the case of a change in Borrower’s or the SPE Component Entity’s structure or state of formation, without first obtaining the prior written consent of Lender and, if required by Lender, a Rating Agency Confirmation with respect thereto.  Borrower shall execute and deliver to Lender, prior to or contemporaneously with the effective date of any such change, any financing statement or financing statement change required by Lender to establish or maintain the validity, perfection and priority of the security interest granted herein.  At the request of Lender, Borrower shall execute a certificate in form satisfactory to Lender listing the trade names under which Borrower or the SPE Component Entity intends to operate the Collateral, and representing and warranting that Borrower or the SPE Component Entity does business under no other trade name with respect to the Collateral.
Section 5.4.    Business and Operations.  Borrower will qualify to do business and will remain in good standing under the laws of the jurisdiction as and to the extent the same are required for the ownership and operation of the Collateral.
ARTICLE 6. 
 
NO SALE OR ENCUMBRANCE
Section 6.1.    Transfer Definitions.  As used herein and in the other Loan Documents, “Restricted Party” shall mean Borrower, Mortgage Borrower, Sponsor, Guarantor, any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement), any Affiliated Manager, 

    
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or any shareholder, partner, member or non-member manager, or any direct or indirect legal or beneficial owner of, Borrower, Sponsor, Guarantor or any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement); and a “Sale or Pledge” shall mean a voluntary or involuntary sale, conveyance, mortgage, grant, bargain, encumbrance, pledge, assignment, grant of any options with respect to, or any other transfer or disposition of (directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) of a legal or beneficial interest.
Section 6.2.    No Sale/Encumbrance.
(a)    It shall be an Event of Default hereof if, without the prior written consent of Lender, a Sale or Pledge of any Individual Property or any part thereof, the Collateral or any part thereof or any legal or beneficial interest therein (including, without limitation, the Loan and/or Loan Documents) occurs, a Sale or Pledge of an interest in any Restricted Party occurs and/or Borrower shall acquire any land in addition to the land owned by Borrower as of the Closing Date (each of the foregoing, collectively, a “Prohibited Transfer”), other than (notwithstanding the provisions of Section 6.2(b) below) (i) pursuant to Leases of space in accordance with the provisions of Section 4.14 and all subleases thereunder, (ii) Permitted Encumbrances and (iii) as permitted pursuant to the express terms of Section 2.10 hereof and this Article 6.
(b)    A Prohibited Transfer shall include, but not be limited to, (i) an installment sales agreement wherein Borrower or Mortgage Borrower agrees to sell the Properties, any Individual Property or any part thereof or the Collateral or any part thereof for a price to be paid in installments; (ii) an agreement by Mortgage Borrower leasing all or a substantial part of any Individual Property for other than actual occupancy by a Tenant thereunder or a sale, assignment or other transfer of, or the grant of a security interest in, Mortgage Borrower’s right, title and interest in and to any (A) Leases or any Rents or (B) Property Documents; (iii) if a Restricted Party is a corporation, any merger, consolidation or Sale or Pledge of such corporation’s stock or the creation or issuance of new stock in one or a series of transactions; (iv) if a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the change, removal, resignation or addition of a general partner or the Sale or Pledge of the partnership interest of any general or limited partner or any profits or proceeds relating to such partnership interests or the creation or issuance of new limited partnership interests; (v) if a Restricted Party is a limited liability company, any merger or consolidation or the change, removal, resignation or addition of a managing member or non-member manager (or if no managing member, any member) or the Sale or Pledge of the membership interest of any member or any profits or proceeds relating to such membership interest; (vi) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the Sale or Pledge of the legal or beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial interests; (vii) any action for partition of any Individual Property (or any portion thereof or interest therein) or any similar action instituted or prosecuted by Borrower, Mortgage Borrower or by any other Person, pursuant to any contractual agreement or other instrument or under applicable law (including, without limitation, common law) or (viii) Borrower or Mortgage Borrower entering into, or any Individual Property being subject to, any PACE Loan.

    
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Section 6.3.    Permitted Equity Transfers.
(a)    Notwithstanding the restrictions contained in this Article 6, the following equity transfers shall be permitted without Lender’s consent: (i) a transfer (but not a pledge) by devise or descent or by operation of law upon the death of a Restricted Party or any member, partner or shareholder of a Restricted Party (other than a transfer of the direct interests in Mortgage Borrower, Borrower, Mezzanine B Borrower, Mezzanine C Borrower or any Operating Lessee Pledgor), (ii) the transfer (but not the pledge), in one or a series of transactions, of the stock, partnership interests or membership interests (as the case may be) in a Restricted Party (other than a transfer of the direct interests in Mortgage Borrower, Borrower, Mezzanine B Borrower, Mezzanine C Borrower or any Operating Lessee Pledgor), (iii) the Sale or Pledge or issuance of common stock in any Restricted Party that is a publicly traded entity, (iv) the pledge of any direct or indirect interests in Borrower and any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement) in connection with the Mezzanine Loans and the exercise of any rights or remedies that any Mezzanine Lender may have under its respective Mezzanine Loan Documents or (v) the Sale or Pledge or issuance of limited partnership interests in Northstar Healthcare Income Operating Partnership, LP or an “operating partnership” whose general partner is Northstar Realty Finance Corp. and that acquired its interest in accordance with the provisions hereof (provided, that, the foregoing provisions of clauses (i), (ii), (iii), (iv) and (v) above shall not be deemed to waive, qualify or otherwise limit Borrower’s obligation to comply with (or to cause the compliance with) the other covenants set forth herein and in the other Loan Documents (including, without limitation, the covenants contained herein relating to ERISA matters)); provided, further, that, with respect to the transfers listed in clauses (i), (ii) and/or (v) above (but not the transfers listed in clauses (iii) and/or (iv) above, including the transfers listed in clauses (i), (ii) and/or (v) above solely to the extent that they are also transfers pursuant to clauses (iii) and/or (iv) above)), (A) except with respect to the transfers listed in clause (i) and (v) above, Lender shall receive not less than fifteen (15) days prior written notice of such transfers (and with respect to the transfer listed in clause (i) above, Lender shall receive notice of such transfer not less than fifteen (15) days following Borrower’s knowledge thereof); (B) no such transfers shall result in a change in Control of Sponsor, Guarantor or Affiliated Manager; (C) after giving effect to such transfers, Sponsor shall (I) own at least a 51% direct or indirect equity ownership interest in each of Guarantor, each Borrower, each Mortgage Borrower, and each SPE Component Entity (as defined herein or in the Mortgage Loan Agreement) and (II) Control Guarantor, each Borrower, each Mortgage Borrower and each SPE Component Entity (as defined herein or in the Mortgage Loan Agreement); (D) after giving effect to such transfers, each Individual Property shall continue to be managed by Manager or a New Manager approved in accordance with the applicable terms and conditions hereof to the extent required pursuant to the terms and conditions hereof; (E) such transfers shall be conditioned upon continued compliance with the relevant provisions of Article 5 hereof; (F) in the case of (1) the transfer of the management of any Individual Property to a new Affiliated Manager in accordance with the applicable terms and conditions hereof, or (2) if after giving effect to such transfer more than forty-nine percent (49%) in the aggregate of the direct or indirect interests in Borrower or any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement) are owned by any Person and/or its Affiliates that owned less than forty-nine percent (49%) of the direct or indirect interests in Borrower or any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement) as of the Closing Date, Borrower shall deliver to Lender a New Non-Consolidation Opinion addressing such transfer; (G) such 

    
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transfers shall be conditioned upon Borrower’s ability to, after giving effect to the equity transfer in question (I) remake the representations contained herein relating to ERISA matters (and, upon Lender’s request, Borrower shall deliver to Lender an Officer’s Certificate containing such updated representations effective as of the date of the consummation of the applicable equity transfer) and (II) continue to comply with the covenants contained herein relating to ERISA matters; (H) to the extent that any transfer results in the transferee (either itself or collectively with its affiliates) owning a 20% or greater equity interest (directly or indirectly) in Borrower or in any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement), Lender’s receipt of the Satisfactory Search Results shall be a condition precedent to such transfer; and (I) such transfers shall be permitted pursuant to the terms of the Property Documents.  Upon request from Lender, Borrower shall promptly provide (or cause to be provided to) Lender (y) a revised version of the Organizational Chart delivered to Lender in connection with the Loan reflecting any equity transfer consummated in accordance with this Section 6.3 and (z) credit searches (in form, scope and substance and from a provider, in each case, reasonably acceptable to Lender) with respect to any equity transfer consummated in accordance with this Section 6.3.
(b)    Notwithstanding the restrictions contained in this Article 6, so long as no Event of Default has occurred and shall be continuing, a Public Company Exit shall be permitted and may be effectuated by the applicable Person provided that: (i) Lender receives thirty (30) days prior written notice with respect to such Public Company Exit, (ii) after giving effect to such Public Company Exit, each Individual Property shall continue to be managed by Manager or a New Manager approved in accordance with the applicable terms and conditions hereof to the extent required pursuant to the terms and conditions hereof, (iii) in the case of (1) the transfer of the management of any Individual Property to a new Affiliated Manager in accordance with the applicable terms and conditions hereof, or (2) if after giving effect to such Public Company Exit more than forty-nine percent (49%) in the aggregate of the direct or indirect interests in Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) are owned by any Person and/or its Affiliates that owned less than forty-nine percent (49%) of the direct or indirect interests in Borrower or any SPE Component Entity as of the Closing Date, Borrower shall deliver to Lender a New Non-Consolidation Opinion addressing such Public Company Exit; (iv) such Public Company Exit shall be conditioned upon Borrower’s ability to, after giving effect to the equity transfer in question (I) remake the representations contained herein relating to ERISA matters (and, upon Lender’s request, Borrower shall deliver to Lender an Officer’s Certificate containing such updated representations effective as of the date of the consummation of the applicable equity transfer) and (II) continue to comply with the covenants contained herein relating to ERISA matters; (v) to the extent that any transfer results in the transferee (either itself or collectively with its affiliates) owning a 20% or greater equity interest (directly or indirectly) in Borrower or in any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement), Lender’s receipt of the Satisfactory Search Results shall be a condition precedent to such Public Company Exit; (vi) such Public Company Exit shall be permitted pursuant to the terms of the Property Documents, (vii) such Public Company Exit shall be conditioned upon continued compliance with the relevant provisions of Article 5 hereof, (viii) after giving effect to such Public Company Exit, either (I) Sponsor shall (1) own at least a 51% direct or indirect equity ownership interest in each of Guarantor, each Borrower and any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) and (2) Control Guarantor, Borrower, Mortgage Borrower, 

    
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and any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement), (II) a Qualified Public Company shall (1) own at least a 51% direct or indirect equity ownership interest in each of Guarantor, each Borrower and any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) and (2) Control Guarantor, Borrower and any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement), or (III) a Qualified Public Company shall (1) own at least a 51% direct or indirect equity ownership interest in each of the Qualified Replacement Guarantor described in the immediately succeeding clause (3) (unless the Qualified Public Company shall also be a Qualified Replacement Guarantor and shall satisfy the condition described in the immediately succeeding clause (3)), Mortgage Borrower, Borrower and any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) and (2) Control each of the Qualified Replacement Guarantor described in the immediately succeeding clause (3) (unless the Qualified Public Company shall also be a Qualified Replacement Guarantor and shall satisfy the condition described in the immediately succeeding clause (3)), Borrower and any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement); and (3) shall deliver to Lender a replacement limited recourse guaranty in form and substance substantially identical to the Guaranty and a replacement environmental indemnity agreement in form and substance substantially identical to the Environmental Indemnity, each executed by a Qualified Replacement Guarantor or, to the extent that such Qualified Public Company shall also be a Qualified Replacement Guarantor, each executed by such Qualified Public Company; (ix) if a Securitization has occurred and if required by Lender, Lender shall have received a Rating Agency Confirmation with respect to such Public Company Exit and (x) Borrower shall have paid all of Lender’s reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees) in connection with such Public Company Exit.
(c)    Notwithstanding the restrictions contained in this Article 6, so long as no Event of Default has occurred and shall be continuing, each of Sponsor, Northstar Health Care Income Inc., or a Qualified Public Company pursuant to a Public Company Exit in accordance with the terms and conditions of Section 6.3(b) hereof may, as security for debt incurred or to be incurred by Sponsor, Northstar Health Care Income Inc. or such Qualified Public Company, respectively, pledge, hypothecate, grant of a security interest or other encumbrance to a Qualified Lender in the assets of Sponsor, Northstar Health Care Income Inc. or such Qualified Public Company, respectively (including the indirect equity interests of Sponsor, Northstar Health Care Income Inc. or such Qualified Public Company, respectively, in Borrower) and the holder of such pledge or security interest may exercise any remedies or rights pursuant to such pledge or security instrument (including any transfer of any indirect equity in Borrower or any other Borrower Party in lieu of foreclosure) without Lender’s consent, provided that (i) Lender receives thirty (30) days prior written notice with respect to such pledge, hypothecation, grant of a security interest or other encumbrance and/or any foreclosure remedies (with respect to indirect equity interests in Guarantor, Borrower and/or any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement)) pursuant to such pledge or security instrument (or any transfer of any such indirect equity interests in lieu of foreclosure) or any remedies that result in a receiver or another Person Controlling Guarantor, Borrower and/or any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement), (ii) after giving effect to such pledge, hypothecation, grant of a security interest or other encumbrance or any such exercise of any such remedies or rights pursuant to such pledge or security instrument, each Individual Property shall continue to be managed by Manager 

    
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or a New Manager approved in accordance with the applicable terms and conditions hereof to the extent required pursuant to the terms and conditions hereof, (iii) in the case of (1) the transfer of the management of any Individual Property to a new Affiliated Manager in accordance with the applicable terms and conditions hereof, or (2) if after giving effect to such pledge, hypothecation, grant of a security interest or other encumbrance or any such exercise of any such remedies or rights pursuant to such pledge or security instrument more than forty-nine percent (49%) in the aggregate of the direct or indirect interests in Borrower or any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement) are owned by any Person and/or its Affiliates that owned less than forty-nine percent (49%) of the direct or indirect interests in Borrower or any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement) as of the Closing Date, Borrower shall deliver to Lender a New Non-Consolidation Opinion addressing such pledge, hypothecation, grant of a security interest or other encumbrance or any such exercise of any such remedies or rights pursuant to such pledge or security instrument; (iv) such pledge, hypothecation, grant of a security interest or other encumbrance or any such exercise of any such remedies or rights pursuant to such pledge or security instrument shall be conditioned upon Borrower’s ability to, after giving effect to such pledge, hypothecation, grant of a security interest or other encumbrance or any such exercise of any such remedies or rights pursuant to such pledge or security instrument in question (I) remake the representations contained herein relating to ERISA matters (and, upon Lender’s request, Borrower shall deliver to Lender an Officer’s Certificate containing such updated representations effective as of the date of the consummation of such pledge, hypothecation, grant of a security interest or other encumbrance or any such exercise of any such remedies or rights pursuant to such pledge or security instrument) and (II) continue to comply with the covenants contained herein relating to ERISA matters; (v) to the extent that any such pledge, hypothecation, grant of a security interest or other encumbrance or any such exercise of any such remedies or rights pursuant to such pledge or security instrument results in the transferee (either itself or collectively with its affiliates) owning a 20% or greater equity interest (directly or indirectly) in Borrower or in any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement), Lender’s receipt of the Satisfactory Search Results shall be a condition precedent to such transfer; (vi) such pledge, hypothecation, grant of a security interest or other encumbrance or any such exercise of any such remedies or rights pursuant to such pledge or security instrument shall be permitted pursuant to the terms of the Property Documents, (vii) such pledge, hypothecation, grant of a security interest or other encumbrance or any such exercise of any such remedies or rights pursuant to such pledge or security instrument shall be conditioned upon continued compliance with the relevant provisions of Article 5 hereof, (viii) after giving effect to such pledge, hypothecation, grant of a security interest or other encumbrance or any such exercise of any such remedies or rights pursuant to such pledge or security instrument, either (I) Sponsor shall (1) own at least a 51% direct or indirect equity ownership interest in each of Guarantor, each Borrower, each Mortgage Borrower and any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement) and (2) Control Guarantor, Borrower, Mortgage Borrower and any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement), (II) if such pledge, hypothecation, grant of a security interest or other encumbrance or any such exercise of any such remedies or rights pursuant to such pledge or security instrument is related to a Qualified Public Company pursuant to a Public Company Exit in accordance with the terms and conditions of Section 6.4(b) hereof, such Qualified Public Company shall (1) own at least a 51% direct or indirect equity ownership interest in each of each Borrower, Mortgage Borrower and any SPE 

    
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Component Entity (as defined in this Agreement and the Mortgage Loan Agreement) and either (y) Guarantor or (z) a Qualified Replacement Guarantor pursuant to Section 6.4(b) hereof (unless the Qualified Company shall also be a Qualified Replacement Guarantor and shall have satisfied the conditions described in Section 6.4(b)(viii)(III)(3) hereof) and (2) Control Borrower, Mortgage Borrower and any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement) and either (y) Guarantor or (z) a Qualified Replacement Guarantor pursuant to Section 6.4(b) hereof (unless the Qualified Company shall also be a Qualified Replacement Guarantor and shall have satisfied the conditions described in Section 6.4(b)(viii)(III)(3) hereof), (III) such Qualified Lender shall (1) own at least a 51% direct or indirect equity ownership interest in each of Guarantor, each Borrower, each Mortgage Borrower and any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement) and (2) Control Guarantor, Borrower, Mortgage Borrower and any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement), or (IV) such Qualified Lender shall (1) own at least a 51% direct or indirect equity ownership interest in each of the Qualified Replacement Guarantor described in the immediately succeeding clause (3) (unless the Qualified Lender shall also be a Qualified Replacement Guarantor and shall satisfy the condition described in the immediately succeeding clause (3)), Borrower, Mortgage Borrower and any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement) and (2) Control each of the Qualified Replacement Guarantor described in the immediately succeeding clause (3) (unless the Qualified Lender shall also be a Qualified Replacement Guarantor and shall satisfy the condition described in the immediately succeeding clause (3)), Borrower, Mortgage Borrower and any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement); and (3) shall deliver to Lender a replacement limited recourse guaranty in form and substance substantially identical to the Guaranty and a replacement environmental indemnity agreement in form and substance substantially identical to the Environmental Indemnity, each executed by a Qualified Replacement Guarantor or, to the extent that such Qualified Lender shall also be a Qualified Replacement Guarantor, each executed by such Qualified Lender; (ix) if a Securitization has occurred and if required by Lender, Lender shall have received a Rating Agency Confirmation with respect to any foreclosure remedies (with respect to indirect equity interests in Guarantor, Borrower, Mortgage Borrower and/or any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement)) pursuant to such pledge or security instrument (or any transfer of any such indirect equity interests in lieu of foreclosure) or any remedies that result in a receiver or another Person Controlling Guarantor, Borrower, Mortgage Borrower and/or any SPE Component Entity (as defined in this Agreement and the Mortgage Loan Agreement), (x) there will be substantial collateral for such debt in addition to the indirect equity pledge and (xi) Borrower shall have paid all of Lender’s reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees) in connection with such transfer.
Section 6.4.    Permitted Property Transfer (Assumption).  Notwithstanding the foregoing provisions of this Article 6, at any time other than the sixty (60) days prior to and following any Securitization, Lender shall not unreasonably withhold consent to a one-time transfer of the Individual Properties in their entirety or the Collateral (or 100% of the direct or indirect interests therein) in its entirety, and the related assumptions of the Loan by, any Person (a “Transferee”) shall be permitted without Lender’s consent (except as specified in Section 6.4(b) below) provided that each of the following terms and conditions are satisfied:

    
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(a)    no Event of Default has occurred and is continuing;
(b)    Borrower shall have delivered written notice to Lender of the terms of such prospective transfer not less than forty-five (45) days before the date on which such transfer is scheduled to close and, concurrently therewith, all such information concerning the proposed Transferee as Lender shall reasonably require.  Unless such Transferee is a Qualified Transferee (or is fifty-one percent (51%) owned (directly or indirectly) and Controlled by a Qualified Transferee), Lender shall have the right to approve or disapprove the proposed transfer based on its then current underwriting and credit requirements for similar loans secured by similar properties which loans are sold in the secondary market, such approval not to be unreasonably withheld.  In determining whether to give or withhold its approval of the proposed transfer pursuant to the preceding sentence, Lender shall consider the experience and track record of Transferee and its principals in owning and operating facilities similar to the Property, the financial strength of Transferee and its principals, the general business standing of Transferee and its principals and Transferee’s and its principals’ relationships and experience with contractors, vendors, tenants, lenders and other business entities; provided, however, that, notwithstanding Lender’s agreement to consider the foregoing factors in determining whether to give or withhold such approval, such approval shall be given or withheld based on what Lender determines to be commercially reasonable and, if given, may be given subject to such conditions as Lender may deem reasonably appropriate.  To the extent that any transfer results in the transferee (either itself or collectively with its affiliates) owning a 20% or greater equity interest (directly or indirectly) in Borrower or in any SPE Component Entity (as defined herein or in the Mortgage Loan Agreement), Lender’s receipt of the Satisfactory Search Results shall be a condition precedent to such transfer;
(c)    Borrower shall have paid to Lender, concurrently with the closing of such prospective transfer, (i) a non-refundable assumption fee in an amount equal to $ $331,800, (ii) all out-of-pocket costs and expenses, including reasonable attorneys’ fees, incurred by Lender in connection therewith and (iii) all fees, costs and expenses of all third parties and the Rating Agencies incurred in connection therewith;
(d)    If such assumption pursuant to this Section 6.4 is accomplished by the conveyance of any Properties or any Collateral, Transferee assumes and agrees to pay the Debt as and when due subject to the provisions of Article 13 hereof.  Prior to or concurrently with the closing of such transfer, Transferee shall execute or cause the execution of, without any cost or expense to Lender, such documents and agreements as Lender shall reasonably require to evidence and effectuate said assumption and to include a new borrower of the Loan in form and substance reasonably acceptable to Lender (including, without limitation, organizational documents, new Single Purpose Entities as borrowers hereunder and under the Mortgage Loan, pledge agreements, UCC financing statements, assignments of owners insurance proceeds, and legal opinions) and Qualified Transferee shall execute a recourse guaranty and an environmental indemnity in form and substance substantially identical to the Guaranty and Environmental Indemnity;
(e)    Borrower and Transferee, without any cost to Lender, shall furnish any information requested by Lender for the preparation of, and shall authorize Lender to file, new financing statements and financing statement amendments and other documents to the fullest extent permitted 

    
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by applicable Legal Requirements, and shall execute any additional documents reasonably requested by Lender;
(f)    If such assumption pursuant to this Section 6.4 is accomplished by the conveyance of the Properties or any Collateral, Borrower shall have delivered to Lender, without any cost or expense to Lender, such UCC title insurance policies insuring the Transferee’s pledge of the Collateral and Lender’s lien thereon together with Owners’ Insurance Policies insuring the transferee of the Properties’ fee simple or leasehold title to the Properties, hazard insurance endorsements or certificates and other similar materials as Lender may deem necessary at the time of the transfer, all in form and substance reasonably satisfactory to Lender;
(g)    Transferee shall have furnished to Lender all appropriate papers evidencing Transferee’s organization and good standing, and the qualification of the signers to execute the assumption of the Debt (if applicable), which papers shall include certified copies of all documents relating to the organization and formation of Transferee and of the entities, if any, which are partners or members of Transferee;
(h)    If such assumption pursuant to this Section 6.4 is accomplished by the conveyance of the Properties or any Collateral, Transferee shall assume the obligations of Borrower under any Management Agreement or provide a new management agreement with a new manager which meets with the requirements of the Subordination of Management Agreement and Section 4.15 hereof and assign to Lender as additional security such new management agreement;
(i)    Transferee shall furnish to Lender a New Non-Consolidation Opinion and an additional opinion of counsel reasonably satisfactory to Lender and its counsel (A) if Section 6.4(f) applies, that the assumption of the Debt has been duly authorized, executed and delivered, and that the assumption agreement and the other Loan Documents are valid, binding and enforceable against Transferee in accordance with their terms, (B) that Transferee and any entity which is a controlling stockholder, member or general partner of Transferee, have been duly organized, and are in existence and good standing and (C) with respect to such other matters as Lender may reasonably request;
(j)    If a Securitization has occurred and if required by Lender, Lender shall have received (A) a Rating Agency Confirmation with respect to such transfer and (B) reasonably satisfactory evidence that the proposed transfer will not result in a Property Document Event; 
(k)    Borrower’s obligations under the contract of sale pursuant to which the transfer is proposed to occur shall expressly be subject to the satisfaction of the terms and conditions of this Section 6.4;
(l)    Borrower shall provide an updated organizational chart to Lender that reflects the updated ownership structure; and
(m)    Borrower shall have delivered to Lender evidence reasonably satisfactory to Lender that the Mortgage Borrower and each Mezzanine Borrower has complied with all of the terms and 

    
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conditions set forth in the applicable Mezzanine Loan Agreement with respect to the assumption corresponding to the assumption requested pursuant to this Section 6.4.
Section 6.5.    Lender’s Rights.  Lender reserves the right to condition the consent to a Prohibited Transfer requested hereunder (other than consents pursuant to Section 6.3 and 6.4 hereof) upon (a) a modification of the terms hereof and on assumption of this Agreement and the other Loan Documents as so modified by the proposed Prohibited Transfer, (b) payment of a transfer fee of 1% of outstanding principal balance of the Loan and all of Lender’s expenses incurred in connection with such Prohibited Transfer, (c) receipt of a Rating Agency Confirmation with respect to the Prohibited Transfer, (d) the proposed transferee’s continued compliance with the covenants set forth in this Agreement, including, without limitation, the covenants in Article 5, (e) receipt of a New Non-Consolidation Opinion with respect to the Prohibited Transfer and/or (f) such other conditions and/or legal opinions as Lender shall determine in its sole discretion to be in the interest of Lender.  All expenses incurred by Lender shall be payable by Borrower whether or not Lender consents to the Prohibited Transfer.  Lender shall not be required to demonstrate any actual impairment of its security or any increased risk of default hereunder in order to declare the Debt immediately due and payable upon a Prohibited Transfer without Lender’s consent.  This provision shall apply to every Prohibited Transfer, whether or not Lender has consented to any previous Prohibited Transfer.
Section 6.6.    Economic Sanctions, Anti-Money Laundering and Transfers.  Borrower shall (and shall cause its applicable direct and indirect constituent owners and Affiliates to) (a) at all times comply with the representations and covenants contained in Sections 3.29 and 3.30 such that the same remain true, correct and not violated or breached and (b) not permit a Prohibited Transfer to occur and shall cause the ownership and Control requirements specified in this Article 6 (including, without limitation, those stipulated in Section 6.3 hereof) to be complied with at all times.  
ARTICLE 7. 
 
INSURANCE; CASUALTY; CONDEMNATION; RESTORATION
Section 7.1.    Insurance.  Borrower shall cause Mortgage Borrower to (a) maintain at all times during the term of the Loan the Policies required under the Mortgage Loan Agreement, and (b) otherwise satisfy all covenants related thereto as provided in the Mortgage Loan Agreement.  Subject to applicable law and the prior rights of Mortgage Lender under the Mortgage Loan and to the extent not inconsistent with the terms of the Mortgage Loan Documents, Borrower shall cause Lender to (i) be named as certificate holder on all property policies and as an additional insured on all liability policies, and (ii) be entitled to such notice and consent rights afforded Mortgage Lender under the applicable terms and conditions of the Mortgage Loan Agreement relating to the Policies as may be designated by Lender.  Borrower shall provide Lender with evidence of all such insurance required hereunder and with the other related notices required under the Mortgage Loan Documents, in each case, on or before the date on which Mortgage Borrower is required to provide the same to Mortgage Lender.  If at any time Lender is not in receipt of written evidence that the Policies are in full force and effect, Lender shall have the right, without notice to Borrower to take such action as Lender deems necessary to protect its interest in the Property, including, without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate, and all 

    
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expenses incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect shall be paid by Borrower to Lender upon demand and until paid shall be secured by the Loan Documents and shall bear interest at the Default Rate.
Section 7.2.    Casualty.  Subject to Section 7.4(d) of the Mortgage Loan Agreement, if any Individual Property shall be damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”), Borrower shall (or shall cause Mortgage Borrower to) give prompt notice of such damage to Lender and shall (or shall cause Mortgage Borrower to) promptly commence and diligently prosecute the completion of the Restoration of the applicable Individual Property and otherwise comply with the provisions of Section 7.4 of the Mortgage Loan Agreement.  Borrower shall cause Mortgage Borrower to pay all costs of any such Restoration (including, without limitation, any applicable deductibles under the Policies) whether or not such costs are covered by the Net Proceeds.  Lender may, but shall not be obligated to, make proof of loss if not made promptly by Borrower or Mortgage Borrower.
Section 7.3.    Condemnation.  Borrower shall (or shall cause Mortgage Borrower to) promptly give Lender notice of the actual or threatened commencement of any proceeding for the Condemnation of any Individual Property (or portion thereof) of which Borrower has knowledge and shall (or shall cause Mortgage Borrower to) deliver to Lender copies of any and all papers served in connection with such proceedings.  Lender may participate in any such proceedings, and Borrower shall from time to time deliver to Lender all instruments requested by it to permit such participation.  Borrower shall cause Mortgage Borrower to, at Borrower’s or Mortgage Borrower’s expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them in the carrying on or defense of any such proceedings.  Notwithstanding any taking by any public or quasi-public authority through Condemnation or otherwise (including but not limited to any transfer made in lieu of or in anticipation of the exercise of such taking), Borrower shall continue to pay the Debt at the time and in the manner provided for its payment in the Note and in this Agreement and the Debt shall not be reduced until any Net Liquidation Proceeds After Debt Service shall have been actually received and applied by Lender, after the deduction of expenses of collection, to the reduction or discharge of the Debt.  Lender shall not be limited to the interest paid on the Award by the condemning authority but shall be entitled to receive out of the Net Liquidation Proceeds After Debt Service interest at the rate or rates provided herein or in the Note.  If any Individual Property or any portion thereof is taken by a condemning authority, Borrower shall cause Mortgage Borrower to promptly commence and diligently prosecute the Restoration of the Property and otherwise comply with the provisions of Section 7.4 of the Mortgage Loan Agreement.  Borrower shall (or shall cause Mortgage Borrower to) pay all costs of Restoration whether or not such costs are covered by the Net Proceeds.  Subject to the rights of Mortgage Lender under the Mortgage Loan Documents, if any Individual Property (or any portion thereof) is sold, through foreclosure or otherwise, prior to the receipt by Lender of the Net Liquidation Proceeds After Debt Service, Lender shall have the right, whether or not a deficiency judgment on the Note shall have been sought, recovered or denied, to receive the Award, or a portion thereof sufficient to pay the Debt.  The provisions of this Section 7.3 are subject to section 7.4(d) of the Mortgage Loan Agreement.

    
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Section 7.4.    Restoration.  Borrower shall (or shall cause Mortgage Borrower to) deliver to Lender all reports, plans, specifications, documents and other materials that are delivered to Mortgage Lender under the Mortgage Loan Agreement in connection with the Restoration by Mortgage Borrower of any Individual Property after a Casualty or Condemnation.  Borrower shall cause Mortgage Borrower to comply with the terms and conditions of the Mortgage Loan Documents relating to Restoration.  Notwithstanding anything to the contrary contained in this Agreement, if at any time and for any reason the Mortgage Loan Restoration provisions cease to exist or are waived or modified in any material respect (in each case, including without limitation, due to any waiver, amendment or refinance) (such provisions, the “Waived Restoration Provisions”), to the extent permitted to do so pursuant to the Mortgage Loan Documents (if applicable), Borrower shall promptly (i) notify Lender of the same, (ii) execute any amendments to this Agreement and/or the Loan Documents implementing the Waived Restoration Provisions as may be reasonably required by Lender (provided such amendments are substantially similar to the provisions set forth in the Mortgage Loan Agreement relating to the same) and shall cause Mortgage Borrower to acknowledge and agree to the same and (iii) remit to Lender (and shall cause Mortgage Borrower to remit to Lender) any Net Proceeds related to the Waived Restoration Provisions to the extent not required to be paid to Mortgage Lender.
Section 7.5.    Securitization Provision.  Notwithstanding anything to the contrary contained herein or in any other Loan Document, if the Loan or any portion thereof is included in a REMIC Trust and, immediately following a release of any portion of the lien of the Security Instrument or Collateral in connection with a Condemnation of an Individual Property (but taking into account any proposed Restoration on the remaining portion of such Individual Property) (based solely on real property and excluding any personal property or going concern value), the Loan-to-Value Ratio (as determined in Lender’s reasonable discretion, by any commercially reasonable method permitted to a REMIC Trust) is greater than 125%, the principal balance of the Loan must prepaid down by an amount not less than the least of the following amounts:  (i) the net amount of the Award, after deduction of Lender’s and Borrower’s reasonable costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Condemnation Proceeds”), (ii) the fair market value of the released property at the time of the release, or (iii) an amount such that the Loan-to-Value Ratio (as determined in Lender’s reasonable discretion, by any commercially reasonable method permitted to a REMIC Trust) does not increase after the release, unless Lender receives an opinion of counsel that if such amount is not paid, the Securitization will not fail to maintain its status as a REMIC Trust as a result of the related release of such portion of the lien of the Security Instrument.  Any such prepayment shall be deemed a voluntary prepayment and shall be subject to Section 2.7(b) hereof (other than the requirements to provide thirty (30) days’ notice to Lender and other than payment of any Prepayment Premium (as applicable)).
ARTICLE 8. 
 
RESERVE FUNDS
Section 8.1.    Reserve Funds.
(a)    Borrower shall cause Mortgage Borrower to deposit and maintain each of the Mortgage Loan Reserve Funds as required under the Mortgage Loan Documents and to perform 

    
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and comply with all the terms and provisions relating thereto.  If requested by Lender, Borrower will promptly provide evidence reasonably acceptable to Lender of compliance with the foregoing.
(b)    Notwithstanding anything to the contrary contained in this Agreement, if at any time and for any reason the Mortgage Loan Reserve Funds are no longer being maintained and/or are reduced, waived or modified in any material respect (in each case, including, without limitation, due to any waiver, amendment or refinance) (such Mortgage Loan Reserve Funds, the “Waived Reserve Funds”), Borrower shall promptly (i) notify Lender of the same and establish and maintain with Lender and for the benefit of Lender reserves in replacement and substitution thereof (the “Substitute Reserves”), which Substitute Reserves shall be subject to all of the same terms and conditions applicable under the Mortgage Loan Documents, (ii) execute any amendments to this Agreement and/or the other Loan Documents relating to the Substitute Reserves reasonably required by Lender (provided such amendments are substantially similar to the provisions set forth in the Mortgage Loan Agreement relating to the same) and shall cause Mortgage Borrower to acknowledge and agree to the same, and (iii) remit to Lender (and shall cause Mortgage Borrower to remit to Lender) any Mortgage Loan Reserve Funds remaining in the accounts in which the Waived Reserve Funds are held only if such accounts are no longer being held by Mortgage Lender.  For the avoidance of doubt, Borrower shall not be required to establish or maintain any Substitute Reserve related to any Mortgage Loan Reserve Funds so long as Mortgage Lender is maintaining the account related to such Mortgage Loan Reserve Funds in accordance with the Mortgage Loan Agreement.  In the event that the Mortgage Lender subsequently reinstates all or any Waived Reserve Funds, then the Lender shall cooperate to transfer such Substitute Reserves to the Mortgage Lender, and Borrower shall no longer be required to deposit funds into the accounts which held such Substitute Reserves until such time as any such Waived Reserve Funds subsequently exists.  
(c)    In the event that Lender or Borrower receives Special Reserve Funds (as defined in the Mortgage Loan Agreement) in connection with a Special Reserve Property (as defined in the Mortgage Loan Agreement) in accordance with Section 8.10(b) of the Mortgage Loan Agreement, then:
(i)    such funds shall promptly be applied to pay down the Loan;
(ii)    in the event that the related Borrower directly or indirectly no longer owns any Properties other than such Special Reserve Property and the Special Reserve Funds received by Lender for such Special Reserve Property equal or exceed the Allocated Loan Amount for such Special Reserve Property, then (A) Borrower shall provide to Lender, for Lender’s review, a release of lien (for the applicable portion of the Collateral relating to such Special Reserve Property) in a form appropriate in each jurisdiction in which such Special Reserve Property is located which shall contain standard provisions reasonably satisfactory to Lender and (B) if such release satisfies the conditions in the preceding clause (A), Lender shall promptly deliver to Borrower, at Borrower’s cost and expense, if applicable, such release of lien for such applicable portion of the Collateral relating to such Special Reserve Property; and
(iii)    Borrower shall pay to Lender within three (3) Business Days of notice from Lender, the Breakage Costs (if any) and the applicable Interest Shortfall associated with 

    
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such paydown and in the event that such paydown in accordance with the terms and conditions of this Section 8.1(c) shall occur on a date from (and including) the tenth (10th) day of a calendar month through (and including) the fourteenth (14th) day of a calendar month, Borrower shall pay to Lender the Interest Shortfall estimated by Lender to be due in connection with such prepayment; provided, that, once the Interest Rate for the next occurring Interest Accrual Period can be determined, Lender shall calculate the actual Interest Shortfall required to be paid by Borrower for such prepayment and (x) if the Interest Shortfall paid to Lender is in excess of the amount required to be paid pursuant to this Section 8.1(c), Lender shall promptly return to Borrower such excess amount and (y) if the Interest Shortfall is less than the amount required to be paid to Lender pursuant to this Section 8.1(c), Borrower shall pay to Lender the amount of such deficiency within three (3) Business Days of notice to Borrower from Lender.
Section 8.2.    Reserve Funds Upon Payment In Full.  Any Reserve Funds remaining on deposit pursuant to the terms of this Agreement after the Debt has been paid in full shall be paid (a) if the Mezzanine B Loan is outstanding, to Mezzanine B Lender to be held by Mezzanine B Lender pursuant to the Mezzanine B Loan Agreement for the same purposes as those described in Article 8 of the Mortgage Loan Agreement, and (c) if the Mezzanine B Loan is no longer outstanding, but the Mezzanine C Loan is outstanding, to Mezzanine C Lender to be held by Mezzanine C Lender pursuant to the Mezzanine C Loan Agreement for the same purposes as those described in Article 8 of the Mortgage Loan Agreement, or (f) if none of the Mezzanine B Loan or Mezzanine C Loan is then outstanding, to Borrower.
Section 8.3.    The Accounts Generally.
(a)    Borrower grants to Lender a first-priority perfected security interest in each of the Accounts and any and all sums now or hereafter deposited in the Accounts as additional security for payment of the Debt.  Until expended or applied in accordance herewith, the Accounts and the funds deposited therein shall constitute additional security for the Debt.  The provisions of this Section 8.3 (together with the other related provisions of the other Loan Documents) are intended to give Lender and/or Servicer “control” of the Accounts and the Account Collateral and serve as a “security agreement” and a “control agreement” with respect to the same, in each case, within the meaning of the UCC.  Borrower acknowledges and agrees that the Accounts are subject to the sole dominion, control and discretion of Lender, its authorized agents or designees, subject to the terms hereof, and Borrower shall have no right of withdrawal with respect to any Account except with the prior written consent of Lender or as otherwise provided herein.  The funds on deposit in the Accounts shall not constitute trust funds and may be commingled with other monies held by Lender.  Notwithstanding anything to the contrary contained herein, unless otherwise consented to in writing by Lender, Borrower shall only be permitted to request (and Lender shall only be required to disburse) Reserve Funds on account of the liabilities, costs, work and other matters (as applicable) for which said sums were originally reserved hereunder, in each case, as reasonably determined by Lender.
(b)    Borrower shall not, without obtaining the prior written consent of Lender, further pledge, assign or grant any security interest in the Accounts or the sums deposited therein or permit any lien to attach thereto, or any levy to be made thereon, or any UCC-1 Financing Statements, 

    
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except those naming Lender as the secured party, to be filed with respect thereto.  Borrower hereby authorizes Lender to file a financing statement or statements under the UCC in connection with any of the Accounts and the Account Collateral in the form required to properly perfect Lender’s security interest therein.  Borrower agrees that at any time and from time to time, at the expense of Borrower, Borrower will promptly execute and deliver all further instruments and documents, and take all further action, that may be reasonably necessary or desirable, or that Lender may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby (including, without limitation, any security interest in and to any Permitted Investments) or to enable Lender to exercise and enforce its rights and remedies hereunder with respect to any Account or Account Collateral.
(c)    Notwithstanding anything to the contrary contained herein or in any other Loan Document, upon the occurrence and during the continuance of an Event of Default, without notice from Lender or Servicer (i) Borrower shall have no rights in respect of the Accounts, (ii) Lender may liquidate and transfer any amounts then invested in Permitted Investments pursuant to the applicable terms hereof to the Accounts or reinvest such amounts in other Permitted Investments as Lender may reasonably determine is necessary to perfect or protect any security interest granted or purported to be granted hereby or pursuant to the other Loan Documents or to enable Lender to exercise and enforce Lender’s rights and remedies hereunder or under any other Loan Document with respect to any Account or any Account Collateral, and (iii) Lender shall have all rights and remedies with respect to the Accounts and the amounts on deposit therein and the Account Collateral as described in this Agreement and in the Pledge Agreement, in addition to all of the rights and remedies available to a secured party under the UCC, and, notwithstanding anything to the contrary contained in this Agreement or in the Pledge Agreement, may apply the amounts of such Accounts as Lender determines in its sole discretion including, but not limited to, payment of the Debt.
(d)    The insufficiency of funds on deposit in the Accounts shall not absolve Borrower of the obligation to make any payments, as and when due pursuant to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned on any event or circumstance whatsoever.
(e)    Borrower shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses, damages (excluding consequential, special and punitive damages), obligations and costs and expenses (including litigation costs and reasonable attorneys fees and expenses) arising from or in any way connected with the Accounts, the sums deposited therein or the performance of the obligations for which the Accounts were established, except to the extent arising from the gross negligence or willful misconduct of Lender, its agents or employees.  Borrower shall assign to Lender all rights and claims Borrower may have against all Persons supplying labor, materials or other services which are to be paid from or secured by the Accounts; provided, however, that Lender may not pursue any such right or claim unless an Event of Default has occurred and remains uncured.
(f)    Borrower and Lender (or Servicer on behalf of Lender) shall maintain each applicable Account as an Eligible Account, except as otherwise expressly agreed to in writing by Lender.  In the event that Lender or Servicer no longer satisfies the criteria for an Eligible Institution, Borrower 

    
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shall cooperate with Lender in transferring the applicable Accounts to an institution that satisfies such criteria.  Borrower hereby grants Lender power of attorney (irrevocable for so long as the Loan is outstanding) with respect to any such transfers and the establishment of accounts with a successor institution.
(g)    Interest accrued on any Account other than an Interest Bearing Account shall not be required to be remitted either to Borrower or to any Account and may instead be retained by Lender.  Funds deposited in the Interest Bearing Accounts shall be invested in Permitted Investments in accordance with this Agreement.  Interest accrued, if any, on sums on deposit in the Interest Bearing Accounts shall be remitted to and become part of the applicable Account.  All such interest that so becomes part of the applicable Account shall be disbursed in accordance with the disbursement procedures contained herein applicable to such Account; provided, however, that Lender may, at its election, retain any such interest for its own account during the occurrence and continuance of an Event of Default.
(h)    Borrower acknowledges and agrees that it solely shall be, and shall at all times remain, liable to Lender or Servicer for all fees, charges, costs and expenses in connection with the Accounts, this Agreement and the enforcement hereof, including, without limitation, any monthly or annual fees or charges as may be assessed by Lender or Servicer in connection with the administration of the Accounts and the reasonable fees and expenses of legal counsel to Lender and Servicer as needed to enforce, protect or preserve the rights and remedies of Lender and/or Servicer under this Agreement.
Section 8.4.    Letters of Credit.
(a)    In lieu of Borrower making deposits into any Reserve Account pursuant to this Agreement, Borrower may from time to time deliver to Lender a Letter of Credit in accordance with the provisions of this Section 8.4.  Any Letter of Credit from time to time delivered in lieu of Borrower making deposits into any Reserve Account shall be in an amount not less than (x) with respect to any Reserve Account which is subject to monthly deposits, the amount of deposits required to be made by Borrower to such Reserve Account for the twelve (12) calendar month period following the date such Letter of Credit is delivered to Lender and (y) with respect to any Reserve Account which is subject to a deposit on the Closing Date or a future date, the then outstanding amount on deposit (or to be deposited) in such Reserve Account.  If during the term of any Letter of Credit delivered by Borrower to this Section 8.4, the amount of deposits required to be made by Borrower to the applicable Reserve Account for such twelve (12) calendar month period shall increase to an amount exceeding the amount of such Letter of Credit, Borrower shall deliver to Lender an amendment to such Letter of Credit or a replacement Letter of Credit which shall be in an amount not less than the aggregate amount of such deposits required to be made during such twelve (12) calendar month period.
(b)    Borrower shall give Lender no less than ten (10) days written notice of Borrower’s election to deliver a Letter of Credit together with a draft of the proposed Letter of Credit and Borrower shall pay to Lender all of Lender’s reasonable out-of-pocket costs and expenses in connection therewith.  No party other than Lender shall be entitled to draw on any such Letter of Credit.  Upon fifteen (15) days notice to Lender, Borrower may replace a Letter of Credit related 

    
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to a Reserve Account with a cash deposit to such Reserve Account in the amount of such Letter of Credit.  In the event that any disbursement of any Reserve Funds relates to a portion thereof provided through a Letter of Credit, any “disbursement” of said funds as provided above shall be deemed to refer to (i) Borrower providing Lender a replacement Letter of Credit in an amount equal to the original Letter of Credit posted less the amount of the applicable disbursement provided hereunder and (ii) Lender, after receiving such replacement Letter of Credit, returning such original Letter of Credit to Borrower; provided, that, no replacement Letter of Credit shall be required with respect to the final disbursement of the applicable Reserve Funds such that no further sums are required to be deposited in the applicable Reserve Funds.
(c)    Each Letter of Credit delivered hereunder shall be additional security for the payment of the Debt.  Upon the occurrence and during the continuance of an Event of Default, Lender shall have the right, at its option, to draw on any Letter of Credit and to apply all or any part thereof to the payment of the items for which such Letter of Credit was established or to apply each such Letter of Credit to payment of the Debt in such order, proportion or priority as Lender may determine.  Any such application to the Debt shall be subject to the terms and conditions hereof relating to application of sums to the Debt.  Lender shall have the additional rights to draw in full any Letter of Credit:  (i) if Lender has received a notice from the issuing bank that the Letter of Credit will not be renewed and a substitute Letter of Credit is not provided at least thirty (30) days prior to the date on which the outstanding Letter of Credit is scheduled to expire; (ii) if Lender has not received a notice from the issuing bank that it has renewed the Letter of Credit at least thirty (30) days prior to the date on which such Letter of Credit is scheduled to expire and a substitute Letter of Credit is not provided at least thirty (30) days prior to the date on which the outstanding Letter of Credit is scheduled to expire; (iii) upon receipt of notice from the issuing bank that the Letter of Credit will be terminated (except if the termination of such Letter of Credit is permitted pursuant to the terms and conditions hereof or a substitute Letter of Credit is provided by no later than thirty (30) days prior to such termination); (iv) if Lender has received notice that the bank issuing the Letter of Credit shall cease to be an Approved Bank and Borrower has not substituted a Letter of Credit from an Approved Bank within fifteen (15) days after notice; and/or (v) if the bank issuing the Letter of Credit shall fail to (A) issue a replacement Letter of Credit in the event the original Letter of Credit has been lost, mutilated, stolen and/or destroyed or (B) consent to the transfer of the Letter of Credit to any Person designated by Lender.  If Lender draws upon a Letter of Credit pursuant to the terms and conditions of this Agreement, provided no Event of Default exists, Lender shall deposit the proceeds thereof into the applicable Account to which such Letter of Credit relates.  Notwithstanding anything to the contrary contained in the above, Lender is not obligated to draw any Letter of Credit upon the happening of an event specified in (i), (ii), (iii), (iv) or (v) above and shall not be liable for any losses sustained by Borrower due to the insolvency of the bank issuing the Letter of Credit if Lender has not drawn the Letter of Credit.
Section 8.5.    Interest Rate Cap Funds.  In the event that Borrower receives Interest Rate Cap Funds (as defined in the Mortgage Loan Agreement) in accordance with Section 8.12(b) of the Mortgage Loan Agreement, Borrower shall cause such funds to be used to purchase the Closing Date Interest Rate Caps applicable to the Loan.

    
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ARTICLE 9. 
 
CASH MANAGEMENT
Section 9.1.    Establishment of Certain Accounts.
(a)    Borrower shall cause Mortgage Borrower to comply with the Mortgage Loan Cash Management Provisions and not, without Lender’s prior consent, amend, restate, replace and/or otherwise modify the same.  If requested by Lender, Borrower will promptly provide evidence reasonably acceptable to Lender of its compliance with the foregoing. 
(b)    Notwithstanding anything to the contrary contained in this Agreement, if at any time and for any reason the Mortgage Loan Cash Management Accounts are no longer being maintained and/or the Mortgage Loan Cash Management Provisions cease to exist or are reduced, waived or modified in any material respect (in each case, including, without limitation, due to any waiver, amendment or refinance) (such accounts, the “Waived Cash Management Accounts” and such provisions, the “Waived Cash Management Provisions”), to the extent permitted to do so pursuant to the Mortgage Loan Documents (if applicable), Borrower shall promptly (i) notify Lender of the same and establish and maintain with Lender and for the benefit of Lender in replacement and substitution thereof, substitute accounts (the “Substitute Cash Management Accounts”), which Substitute Cash Management Accounts shall be subject to all of the same terms and conditions applicable under the Mortgage Loan Documents, (ii) execute any amendments to this Agreement and/or the other Loan Documents implementing the Waived Cash Management Provisions as may be reasonably required by Lender (provided such amendments are substantially similar to the provisions set forth in the Mortgage Loan Agreement relating to the same) and shall cause Mortgage Borrower to acknowledge and agree to the same and (iii) remit to Lender (and shall cause Mortgage Borrower to remit to Lender) any funds remaining in the Waived Cash Management Accounts only if such Mortgage Loan Cash Management Accounts are no longer being held by Mortgage Lender.  For the avoidance of doubt, Borrower shall not be required to establish or maintain any Substitute Cash Management Accounts so long as Mortgage Lender is maintaining the Mortgage Loan Cash Management Accounts in accordance with the Mortgage Loan Agreement.  In the event that the Mortgage Lender subsequently reinstates all or any Waived Cash Management Accounts, then the Lender shall cooperate to transfer such funds in the Substitute Cash Management Accounts to the Mortgage Lender, and Borrower shall no longer be required to deposit funds into such Substitute Cash Management Accounts until such time as any such Waived Cash Management Accounts subsequently exists.
Borrower hereby authorizes and directs Lender (and any Servicer acting on behalf of Lender) to (A) rely on any notice received from (i) Directing Mortgage Lender with respect to the existence or cure of a Mortgage Event of Default, (ii) Directing Mezzanine B Lender with respect to the existence or cure of a Mezzanine B Event of Default, and (iii) Directing Mezzanine C Lender with respect to the existence or cure of a Mezzanine C Event of Default and (B) disregard any competing notices from Mortgage Borrower or Mezzanine Borrower with respect to the Loan.  In addition, with respect to (i) the disposition of funds to Mortgage Lender pursuant to Section 9.3 of the Mortgage Loan Agreement, Lender (or any Servicer acting on behalf of Lender) shall be entitled to rely on directions from the Directing Mortgage Lender with respect to such disposition of funds, 

    
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(ii) the disposition of funds pursuant to Section 9.3(k) of the Mortgage Loan Agreement, Lender (or any Servicer acting on behalf of Lender) shall be entitled to rely on directions from the Directing Mezzanine B Lender with respect to such disposition of funds and (iii) the disposition of funds pursuant to Section 9.3(l) of the Mortgage Loan Agreement, Lender (or any Servicer acting on behalf of Lender) shall be entitled to rely on directions from the Directing Mezzanine C Lender with respect to such disposition of funds.  No insufficiency of funds in the Mortgage Lender’s cash management waterfall shall excuse any obligation of Borrower to Lender.
ARTICLE 10. 
 
EVENTS OF DEFAULT; REMEDIES
Section 10.1.    Event of Default.  The occurrence of any one or more of the following events shall constitute an “Event of Default”:
(a)    if (A) any monthly Debt Service payment or the payment due on the Maturity Date is not paid when due, (B) any deposit to any of the Accounts required hereunder or under the other Loan Documents is not paid when due or (C) any other portion of the Debt is not paid when due and such non-payment continues for five (5) Business Days following notice to Borrower that the same is due and payable; except, in each case, to the extent sums sufficient to pay such Debt Service or any other portion of the Debt have been deposited with Lender for such specific purpose in accordance with the terms of this Agreement and Lender’s access to such sums is not restricted or constrained by Borrower or its Affiliates;
(b)    if any of the Taxes or Other Charges are not paid when the same are due and payable (other than (i) Taxes and Other Charges being contested by Borrower in accordance with Section 4.5(b) hereof and (ii) with respect to any Waived Tax Deposit Property (as defined in the Mortgage Loan Agreement) for so long as no Borrower Tax Period (as defined in the Mortgage Loan Agreement) is continuing with respect to such Waived Tax Deposit Property) (as defined in the Mortgage Loan Agreement) except to the extent (A) sums sufficient to pay the Taxes or Other Charges in question had been reserved in the Tax Account (as defined in the Mortgage Loan Agreement) or the corresponding Substitute Reserve (as defined in this Agreement or any Mezzanine Loan Agreement) prior to the applicable due date for the Taxes or Other Charges in question for the purpose of paying the Taxes or Other Charges in question and were available in the Tax Account (as defined in the Mortgage Loan Agreement) or the corresponding Substitute Reserve (as defined in this Agreement or any Mezzanine Loan Agreement), (B) Mortgage Borrower, Mezzanine Borrower or Borrower (as applicable) materially complied with all requirements set forth in this Agreement with respect to notifying Mortgage Lender, Mezzanine Lender or Lender of the amounts, schedules and instructions for payment of such Taxes and Other Charges, (C) Mortgage Lender, Mezzanine Lender or Lender (as applicable) failed to pay the Taxes or Other Charges in question if and when required hereunder or thereunder, (D) Mortgage Lender’s, Mezzanine Lender’s or Lender’s access to such sums was not restricted or constrained by Borrower or its Affiliates and (D) no Event of Default was continuing;
(c)    (1) if the Policies are not kept in full force and effect (except to the extent (A) such Policies are cancelled solely by reason of nonpayment of Insurance Premiums, (B) sums sufficient 

    
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to pay the Insurance Premiums in question had been reserved in the Insurance Account or the corresponding Substitute Reserve (as defined in this Agreement or any Mezzanine Loan Agreement) prior to the applicable due date for the payment of the Insurance Premiums and were available in the Insurance Account or the corresponding Substitute Reserve (as defined in this Agreement or any Mezzanine Loan Agreement), (C) Mortgage Borrower, Mezzanine Borrower or Borrower (as applicable) shall have complied with all requirements set forth in this Agreement with respect to notifying Mortgage Lender, Mezzanine Lender or Lender (as applicable) of the amounts, schedules and instructions for payment of such Insurance Premiums, (D) Mortgage Lender, Mezzanine Lender or Lender (as applicable) failed to pay the Insurance Premiums in question if and when required hereunder or thereunder, (E) Mortgage Lender’s, Mezzanine Lender’s or Lender’s (as applicable) access to such sums was not restricted or constrained by Borrower or its Affiliates and (F) no Event of Default was continuing or (2) if evidence of the same is not delivered to Lender within two (2) Business Days after request therefor;
(d)    if any of the representations or covenants contained in Section 3.29 hereof or Sections 4 and 5 of the Pledge Agreement (other than Section 5(f)(ii)(A) thereof) are breached or violated;
(e)    if any of the representations or covenants contained in Article 5 are breached or violated; provided, that, (A) with respect to any failure to comply with the requirements relating to trade and operational indebtedness set forth in Section 5.1(a)(vii) hereof, it shall only be an Event of Default if Borrower does not cure such failure within fifteen (15) days after notice thereof from Lender to Borrower and (B) except as provided in (A) of this clause (e) with respect to trade and operational indebtedness, any such breach or violation shall not constitute an Event of Default (1) if such breach or violation is inadvertent and non-recurring, (2) if such breach or violation is curable, Borrower shall promptly cure such breach within thirty (30) days from the earlier of (I) Borrower’s knowledge of such breach or violation or (II) notice thereof from Lender and (3) Borrower shall have within such thirty (30) day period delivered to Lender a New Non-Consolidation Opinion or an update from the law firm under the most recent Non-Consolidation Opinion previously delivered to Lender to the effect that such breach or violation does not negate or impair the Non-Consolidation Opinion previously delivered to Lender;
(f)    if (A) a Prohibited Transfer shall occur in violation of this Agreement or (B) any representation or covenants contained in Section 6.6 hereof is breached or violated in any material respect unless, with respect to this clause (B), (I) such breach or violation was immaterial, inadvertent and non-recurring and (II) Borrower corrects (or causes to be corrected) such failure within twenty (20) days of obtaining knowledge thereof;
(g)    if there is a breach of any of the covenants contained within any of Section 4.22, Section 4.23, Section 4.24, Section 4.25, Section 4.26, or Section 4.27 which breach continues for a period of thirty (30) days after Borrower’s receipt of notice from Lender; provided, however, if such breach of Section 4.25 hereof is caused by the Manager or any of its vendors with respect to any RIDEA Facility, such breach does not pose a material and imminent threat to health or human safety and such breach continues unabated for more than ten (10) Business Days after notice from Lender, then it shall only be a default with respect to such breach of Section 4.25 hereof if such breach continues for a period of one hundred and eighty (180) days after Borrower’s receipt of 

    
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notice from Lender (or, if the cure of such breach requires approvals from Governmental Authorities which cannot reasonably be obtained during such period, such longer period as may be necessary for Borrower (acting diligently) to cause Mortgage Borrower to obtain such approvals and cure such breach);
(h)    if any representation or warranty made herein (other than the representations or warranties described in clauses (d) or (e) of this Section 10.1), in the Guaranty or in the Environmental Indemnity or in any other guaranty, or in any certificate, report, financial statement or other instrument or document furnished to Lender by or on behalf of Borrower in connection with the Loan shall have been false or misleading in any material adverse respect when made; provided that if such untrue representation or warranty is susceptible of being cured, Borrower shall have the right to cure such representation or warranty within thirty (30) days of receipt of notice from Lender;
(i)    if (i) Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) shall commence any case, proceeding or other action (A) under any Creditors Rights Laws seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, liquidation or dissolution, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets (unless required to do so by Lender), or Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) shall make a general assignment for the benefit of its creditors; (ii) there shall be commenced against Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) any case, proceeding or other action of a nature referred to in clause (i) above (other than any case, action or proceeding already constituting an Event of Default by operation of the other provisions of this subsection) which (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or unbonded for a period of ninety (90) days; (iii) there shall be commenced against Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) any case, proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its assets (other than any case, action or proceeding already constituting an Event of Default by operation of the other provisions of this subsection) which results in the entry of any order for any such relief which shall not have been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the entry thereof; (iv) Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) shall collude with respect to, approve of, or acquiesce in, any of the actions set forth in clause (i), (ii), or (iii) above; (v) Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) shall admit in writing its inability to pay its debts as they become due; (vi) Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) is substantively consolidated with any other entity in connection with any proceeding under the Bankruptcy Code or any other Creditors Rights Laws involving Sponsor or its subsidiaries; or (vii) a Bankruptcy Event occurs;
(j)    intentionally omitted;

    
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(k)    if any Individual Property or any Collateral becomes subject to any tax liens (other than liens of Taxes and Other Charges and liens described in clause (l) below) other than a Permitted Encumbrance and such lien shall remain undischarged of record (by payment, bonding or otherwise) within thirty (30) days after Borrower first receives notice of the same; 
(l)    if any federal tax lien that is not a Permitted Encumbrance is filed against Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) or any Individual Property and same is not discharged of record (by payment, bonding or otherwise) within sixty (60) days after Borrower first receives notice of the same;
(m)    if any Individual Property (or any portion thereof) or any Collateral (or portion thereof) becomes subject to any mechanic’s, materialman’s or other lien (in each case, other than a Permitted Encumbrance) and the lien shall remain undischarged of record (by payment, bonding or otherwise) for a period of thirty (30) days;
(n)    if Borrower shall fail to deliver to Lender, within ten (10) Business Days after request by Lender, the estoppel certificates required by Section 4.13(a) hereof and such failure continues for five (5) days after Borrower’s receipt of notice thereof from Lender;
(o)    if any default occurs under any guaranty or indemnity executed in connection herewith (including, without limitation, the Environmental Indemnity and/or the Guaranty) and such default continues (i) after the expiration of applicable grace periods, if any and (ii) if there is no applicable cure and/or grace period, then (A) for no more than five (5) Business Days with respect to any default related to the payment of money, (B) for no more than ten (10) Business Days with respect to any material non-monetary default and (C) for no more than thirty (30) days with respect to any non-material non-monetary default;
(p)    if any of the assumptions contained in the Non-Consolidation Opinion, or in any New Non-Consolidation Opinion (including, without limitation, in any schedules thereto and/or certificates delivered in connection therewith) are untrue or shall become untrue in any material respect and, provided no action has been filed with respect to Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) under any Creditor Rights Law prior to the time that Lender becomes aware of the untrue assumption, Borrower shall fail to deliver to Lender within ten (10) Business Days after Lender’s request a New Non-Consolidation Opinion without such assumption;
(q)    if Mortgage Borrower defaults under the Management Agreement beyond the expiration of applicable notice and grace periods, if any, thereunder (and the Manager terminates the same) or if the Management Agreement is canceled, terminated or surrendered, expires pursuant to its terms or otherwise ceased to be in full force and effect, unless, in each such case, Mortgage Borrower, within fifteen (15) Business Days of such cancellation, termination, surrender, expiration or cessation, enters into a Qualified Management Agreement with a Qualified Manager in accordance with the applicable terms and provisions hereof;
(r)    if Mortgage Borrower fails to appoint a New Manager within ten (10) Business Days of the request of Lender and/or fails to comply with any limitations on instructing the Manager and 

    
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such failure continues for more than ten (10) Business Days after notice from Lender, each as required by and in accordance with, as applicable, the terms and provisions of, this Agreement, the Subordination of Management Agreement and the Pledge Agreement;
(s)    if any prepayment of the Mortgage Loan, the Mezzanine B Loan or the Mezzanine C Loan is made except in accordance with the terms of this Agreement, and such default remains uncured for ten (10) Business Days after notice thereof from Lender;
(t)    if a Mortgage Event of Default shall occur;
(u)    if (A) Mortgage Borrower shall fail (beyond any applicable notice or grace period) to pay any rent, additional rent or other charges payable under any Ground Lease as and when payable thereunder (unless funds are on deposit with Mortgage Lender or Lender for such purpose and Mortgage Lender’s or Lender’s (as applicable) access to such funds is not restricted or constrained by Borrower or its Affiliates), (B) Mortgage Borrower defaults under any Ground Lease beyond the expiration of applicable notice and grace periods, if any, thereunder, (C) any Ground Lease is amended, supplemented, replaced, restated or otherwise modified by Mortgage Borrower without Lender’s prior written consent, in each instance, to the extent that Lender’s consent is required pursuant to this Agreement, (D) any Ground Lease and/or the estate created thereunder is canceled, rejected, terminated, surrendered or expires pursuant to its terms without Lender’s consent (to the extent that Lender’s consent is required pursuant to this Agreement), or (E) a Property Document Event occurs which results in a Portfolio Material Adverse Effect;
(v)    if Borrower shall fail to obtain and/or maintain the Interest Rate Cap Agreement in accordance with Section 2.8 hereof;
(w)    intentionally omitted;
(x)    any Restricted Party (or Affiliate thereof) contesting or opposing any motion made by Lender to obtain relief from the automatic stay or seeking to reinstate the automatic stay in the event of any proceeding under the Bankruptcy Code or any other Creditors Rights Laws involving Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement); or any Restricted Party (or Affiliate thereof) shall collude with respect to, approve of, or acquiesce in, any Bankruptcy Event;
(y)    if (i) Guarantor shall commence any case, proceeding or other action (A) under any Creditors Rights Laws seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, liquidation or dissolution, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or Guarantor shall make a general assignment for the benefit of its creditors; (ii) there shall be commenced against Guarantor any case, proceeding or other action of a nature referred to in clause (i) above (other than any case, action or proceeding already constituting an Event of Default by operation of the other provisions of this subsection) which (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or unbonded for a period of ninety (90) days; (iii) there shall be commenced against Guarantor any case, proceeding or other action seeking issuance of a warrant 

    
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of attachment, execution, distraint or similar process against all or any substantial part of its assets (other than any case, action or proceeding already constituting an Event of Default by operation of the other provisions of this subsection) which results in the entry of any order for any such relief which shall not have been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the entry thereof; (iv) Guarantor shall collude with respect to, or consent to, approve of, or acquiesce in, any of the actions set forth in clause (i), (ii), or (iii) above; or (v) Guarantor shall admit in writing its inability to pay its debts as they become due; unless, within ten (10) Business Days of the occurrence of any event in each of clauses (i), (ii), (iii), (iv) and/or (v) above, Borrower shall (I) replace Guarantor with a Qualified Replacement Guarantor and (II) the Guarantor Replacement Conditions shall have been satisfied within such ten (10) Business Day period;
(z)    intentionally omitted;
(aa)    with respect to any default or breach by any Borrower Party of any term, covenant or condition of this Agreement or any other Loan Document not specified in subsections (a) through (z) above or subsection (bb) below not otherwise specifically specified as an Event of Default in this Agreement or in any other Loan Document, if the same is not cured (i) within ten (10) days after notice from Lender (in the case of any default which can be cured by the payment of a sum of money) or (ii) within thirty (30) days after notice from Lender (in the case of any other default or breach); provided, that, with respect to any default or breach specified in subsection (ii), if the same cannot reasonably be cured within such thirty (30) day period and Borrower shall have commenced to cure the same within such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period shall be extended for so long as it shall require Borrower in the exercise of due diligence to cure the same, it being agreed that, if such default or breach has a Portfolio Material Adverse Effect, no such extension shall be for a period in excess of sixty (60) days and if such default or breach shall not have a Portfolio Material Adverse Effect, no such extension shall be for a period in excess of one-hundred twenty (120) days; or
(bb)    if any default by any Borrower Party shall exist under any of the other Loan Documents beyond any applicable cure periods contained in such Loan Documents or if any other such event shall occur or condition shall exist, and (in either case) if the effect of such default, event or condition is to accelerate the maturity of any portion of the Debt or to permit Lender to accelerate the maturity of all or any portion of the Debt.
Section 10.2.    Remedies.
(a)    Upon the occurrence and during the continuance of an Event of Default (other than an Event of Default described in Section 10.1(i) above with respect to Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) and at any time thereafter while such Event of Default continues to exist Lender may, in addition to any other rights or remedies available to it pursuant to this Agreement, the Pledge Agreement, the Note and the other Loan Documents or at law or in equity, take such action, without notice or demand, that Lender deems advisable to protect and enforce its rights against Borrower and in the Collateral, including, without limitation, declaring the Debt to be immediately due and payable, and Lender may enforce or avail itself of any or all rights or remedies provided in this Agreement, the Pledge 

    
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Agreement, the Note and the other Loan Documents and may exercise the rights and remedies of a secured party under the Uniform Commercial Code against Borrower and the Collateral, including, without limitation, all rights or remedies available at law or in equity.  Upon any Event of Default described in Section 10.1(i) above with respect to Borrower, Mortgage Borrower or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement), the Debt and all other obligations of Borrower under this Agreement, the Pledge Agreement, the Note and the other Loan Documents shall immediately and automatically become due and payable, without notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained herein or in the Pledge Agreement, the Note and the other Loan Documents to the contrary notwithstanding.
(b)    Upon the occurrence and during the continuance of an Event of Default, all or any one or more of the rights, powers, privileges and other remedies available to Lender against Borrower under this Agreement, the Pledge Agreement, the Note or the other Loan Documents executed and delivered by, or applicable to, Borrower or at law or in equity may be exercised by Lender at any time and from time to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under this Agreement, the Pledge Agreement, the Note or the other Loan Documents with respect to the Collateral.  Any such actions taken by Lender shall be cumulative and concurrent and may be pursued independently, singularly, successively, together or otherwise, at such time and in such order as Lender may determine in its sole discretion, to the fullest extent permitted by applicable law, without impairing or otherwise affecting the other rights and remedies of Lender permitted by applicable law, equity or contract or as set forth herein or in the Pledge Agreement, the Note or the other Loan Documents.  No delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient.  A waiver of one Default or Event of Default with respect to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon.
(c)    With respect to Borrower and the Collateral, nothing contained herein or in any other Loan Document shall be construed as requiring Lender to resort to any portion of the Collateral for the satisfaction of any of the Debt in any preference or priority to any other portion of the Collateral, and Lender may, if an Event of Default shall have occurred and be continuing, seek satisfaction out of all of the Collateral or any part thereof, in its absolute discretion in respect of the Debt.  In addition, if an Event of Default shall have occurred and be continuing, Lender shall have the right from time to time to partially foreclose upon the Collateral in any manner and for any amounts secured by the Pledge Agreement then due and payable as determined by Lender in its sole discretion including, without limitation, the following circumstances:  (i) in the event Borrower defaults beyond any applicable grace period in the payment of one or more scheduled payments of principal and interest, Lender may foreclose upon the Collateral (or any portion thereof) to recover such delinquent payments, or (ii) in the event Lender elects to accelerate less than the entire outstanding principal balance of the Loan, Lender may foreclose upon the Collateral (or any portion thereof) to recover so much of the principal balance of the Loan as Lender may accelerate and such other sums secured by the Pledge Agreement as Lender may elect.  Notwithstanding one or more partial foreclosures, 

    
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the Collateral shall remain subject to the Pledge Agreement to secure payment of sums secured by the Pledge Agreement and not previously recovered.
(d)    Upon the occurrence and during the continuance of an Event of Default, Lender shall have the right from time to time to sever the Note and the other Loan Documents into one or more separate notes, security instruments and other security documents (the “Severed Loan Documents”) in such denominations as Lender shall determine in its sole discretion for purposes of evidencing and enforcing its rights and remedies provided hereunder.  Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other documents as Lender shall request in order to effect the severance described in the preceding sentence, all in form and substance reasonably satisfactory to Lender.  Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall do by virtue thereof; provided, however, Lender shall not make or execute any such documents under such power until three (3) days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such power.  Borrower shall not be obligated to pay any costs or expenses incurred in connection with the preparation, execution, recording or filing of the Severed Loan Documents and the Severed Loan Documents shall not contain any representations, warranties or covenants not contained in the Loan Documents and any such representations and warranties contained in the Severed Loan Documents will be given by Borrower only as of the Closing Date.
(e)    Notwithstanding anything to the contrary contained herein or in any other Loan Document, any amounts recovered from the Collateral (or any portion thereof) or any other collateral for the Loan and/or paid to or received by Lender may, after an Event of Default, be applied by Lender toward the Debt in such order, priority and proportions as Lender in its sole discretion shall determine.
(f)    Upon the occurrence and during the continuance of an Event of Default, Lender may, but without any obligation to do so and without notice to or demand on Borrower and without releasing Borrower from any obligation hereunder or being deemed to have cured any Event of Default hereunder, make, do or perform any obligation of Borrower hereunder in such manner and to such extent as Lender may deem necessary.  Lender is authorized to appear in, defend, or bring any action or proceeding to protect its interest in any the Collateral for such purposes, and the cost and expense thereof (including reasonable attorneys’ fees to the extent permitted by applicable law), with interest as provided in this Section, shall constitute a portion of the Debt and shall be due and payable to Lender upon demand.  All such costs and expenses incurred by Lender in remedying such Event of Default or such failed payment or act or in appearing in, defending, or bringing any action or proceeding shall bear interest at the Default Rate, for the period after such cost or expense was incurred into the date of payment to Lender.  All such costs and expenses incurred by Lender together with interest thereon calculated at the Default Rate shall be deemed to constitute a portion of the Debt and be secured by the liens, claims and security interests provided to Lender under the Loan Documents and shall be immediately due and payable upon demand by Lender therefor.

    
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ARTICLE 11. 
 
SECONDARY MARKET
Section 11.1.    Securitization.
(a)    Lender shall have the right (i) to sell or otherwise transfer the Loan (or any portion thereof and/or interest therein), (ii) to sell participation interests in the Loan (or any portion thereof and/or interest therein) or (iii) to securitize the Loan (or any portion thereof and/or interest therein) in a single asset securitization or a pooled asset securitization (including a collateralized debt obligation (CDO) securitization).  The transactions referred to in clauses (i), (ii) and (iii) above shall hereinafter be referred to collectively as “Secondary Market Transactions” and the transactions referred to in clause (iii) shall hereinafter be referred to as a “Securitization”.  Any certificates, notes or other securities issued in connection with a Securitization are hereinafter referred to as “Securities”.
(b)    If requested by Lender, Borrower shall assist Lender in satisfying the market standards to which Lender customarily adheres or which may be reasonably required in the marketplace by prospective investors, transferees, lenders and/or participants or by the Rating Agencies in connection with any Secondary Market Transactions, including, without limitation, to:
(i)    provide or cause Mortgage Borrower to (A) provide updated financial and other information with respect to the Properties, the Collateral, the business operated at the Properties, Borrower, Mortgage Borrower, Mezzanine B Borrower, Mezzanine C Borrower, Guarantor, Sponsor, SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) and Manager, and updated budgets relating to the Property, which (in each case) are available or reasonably obtainable using systems of Borrower and Manager that are currently in place (the “Updated Information”), together, if customary, with appropriate verification of the Updated Information through letters of auditors or opinions of counsel reasonably acceptable to Lender and acceptable to the Rating Agencies, (B) cooperate with Lender in obtaining updated appraisals, market studies, environmental reviews (Phase I’s and, if appropriate, Phase II’s), property condition reports and other due diligence investigations of the Properties and (C) use commercially reasonable efforts to obtain revisions to and other agreements with respect to the Property Documents in form and substance reasonably acceptable to Lender and acceptable to the Rating Agencies;
(ii)    provide new and/or updated opinions of counsel, which may be relied upon by Lender and the Rating Agencies, as to substantive non-consolidation, fraudulent conveyance, matters of Delaware and federal bankruptcy law relating to limited liability companies with respect to Borrower, Mortgage Borrower, any Mezzanine Borrower and SPE Component Entities (as defined herein and in the Mortgage Loan Agreement) and due execution and enforceability of the Loan Documents, customary in Secondary Market Transactions or required by the Rating Agencies, which counsel and opinions shall be reasonably satisfactory in form and substance to Lender and satisfactory in form and substance to the Rating Agencies;

    
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(iii)    provide updated, as of the closing date of the Secondary Market Transaction, representations and warranties made in the Loan Documents and such additional representations and warranties as the Rating Agencies may require, in each case consistent with the facts covered by such representations and warranties as they exist on the date thereof;
(iv)    execute such amendments to the Loan Documents, the Mezzanine Loan Documents, and the Mortgage Loan Documents and Borrower’s, Mezzanine Borrower’s, Mortgage Borrower’s and any Operating Lessee Pledgor’s or any SPE Component Entity’s organizational documents as may be reasonably requested by Lender or requested by the Rating Agencies in order to effect any Secondary Market Transaction, including, without limitation, (A) to amend and/or supplement the Independent Director provisions provided herein and therein, in each case, in accordance with the applicable requirements of the Rating Agencies, (B) further bifurcating the Loan into two or more additional components, re-allocating the Loan among existing components or existing Notes, reducing the number of components of the Loan or of any Note and/or creating additional separate notes and/or creating additional senior/subordinate note structure(s), including, without limitation, re-allocating the principal amounts of the Loan, the Note and any Mezzanine Loan, including, without limitation, re-allocating the portions of each of the Loan and/or any Mezzanine Loan that accrue at a fixed rate of interest and that accrue at a floating rate of interest and/or re-allocating the portion of the Loan and any Mezzanine Loan which is subject to open prepayment in accordance with the terms and conditions of the Loan Documents (any of the foregoing, a “Loan Bifurcation”) and (C) to modify all operative dates (including but not limited to payment dates, interest period start dates and end dates, etc.) under the Loan Documents, by up to ten (10) days; provided, however, that (I) Borrower and/or Guarantor shall not be required to so modify or amend any Loan Document, Mortgage Loan Document or Mezzanine Loan Document if such modification or amendment would change any economic or non-economic term, including the interest rate or the stated maturity (except as would not have an adverse effect on Borrower, Guarantor and/or any of their Affiliates other than to a de minimus extent) or otherwise increase the obligations (other than to a de minimus extent) or decrease the rights of Borrower or any Affiliates pursuant to the Loan Documents, Mortgage Loan Documents or Mezzanine Loan Documents (other than to a de minimus extent), except in connection with a Loan Bifurcation which may result in varying interest rates but will have the same weighted average coupon of the original Note (except following an Event of Default) and (II) none of Borrower, Mortgage Borrower, any Mezzanine Borrower, any Operating Lessee Pledgor nor any SPE Component Entity shall be required to modify its organizational structure or make any other modification, if such modification would cause it or any of its Affiliates or direct or indirect owners to incur any additional tax liability or suffer other adverse consequences (other than to a de minimus extent).  Borrower acknowledges and agrees that the execution of any Loan Bifurcation in accordance with terms and conditions hereof shall not in itself increase the obligations or decrease the rights of Borrower pursuant to the Loan Documents; and 
(v)    prior to the Securitization of the entire Loan, reallocate the Allocated Loan Amounts in Lender’s reasonable discretion and reasonably approved by Borrower, such reasonable approval not to be unreasonably withheld, conditioned or delayed.

    
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Notwithstanding anything herein to the contrary, with respect to any compliance by any Borrower Party with requests made pursuant to this Section 11.1 or any of Sections 11.2, 11.8 and 11.9 with respect to any Secondary Market Transaction, each Borrower Party shall pay their own costs and expenses incurred prior to the consummation of the corresponding Secondary Market Transaction in connection therewith (including, without limitation, attorneys’ fees and expenses) and Lender shall pay its own costs and expenses in connection therewith (including, without limitation, attorneys’ fees and expenses); provided that Lender shall reimburse the Borrower Parties for any reasonable, out-of-pocket costs incurred by the Borrower Parties prior to the consummation of the corresponding Secondary Market Transaction in Borrower’s complying with such requests (exclusive of the Borrower Parties’ legal fees, costs and disbursements, which shall be paid by the Borrower Parties and exclusive of all of Borrower’s costs and expenses with respect to Section 11.1(b)(v) hereof, which shall be paid by the Borrower Parties).
(c)    If, at the time a Disclosure Document is being prepared for a Securitization, Lender reasonably expects that Borrower alone or Borrower and one or more Affiliates of Borrower collectively, or the Properties alone or the Properties and Related Properties collectively, will be a Significant Obligor, Borrower shall furnish to Lender upon reasonable request the following financial information:
(i)    If Lender reasonably expects that the principal amount of the Loan together with any Related Loans, as of the cut-off date for such Securitization, may equal or exceed ten percent (10%), but be less than twenty percent (20%), of the aggregate principal amount of all mortgage loans included or expected to be included in the Securitization, net operating income for the Property and the Related Properties as required under Item 1112(b)(1) of Regulation AB, or
(ii)    If Lender reasonably expects that the principal amount of the Loan together with any Related Loans, as of the cut-off date for such Securitization, may equal or exceed twenty percent (20%) of the aggregate principal amount of all mortgage loans included or expected to be included in the Securitization, the financial statements required under Item 1112(b)(2) of Regulation AB.
(d)    In the event all or a portion of the Loan is included in a securitization involving a registered public offering of Securities pursuant to the Securities Act, and if Lender determines that Borrower alone or Borrower and one or more Affiliates of Borrower collectively, or the Properties alone or the Properties and the Related Properties, collectively, are a Significant Obligor, then Borrower shall furnish to Lender, on an ongoing basis, selected financial data or financial statements meeting the requirements of Item 1112(b)(1) or (2) of Regulation AB, as specified by Lender, but only for so long as such entity or entities are a Significant Obligor and either (x) filings pursuant to the Exchange Act in connection with or relating to the Securitization (an “Exchange Act Filing”) are required to be made under applicable Legal Requirements or (y) comparable information is required to otherwise be “available” to holders of Securities under Regulation AB or applicable Legal Requirements.

    
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(e)    Any financial data or financial statements required pursuant to Section 11.1(d) above shall be furnished to Lender (1) not later than forty-one (41) days after the end of the fiscal quarter of Borrower and (2) not later than eighty-five (85) days after the end of each fiscal year of Borrower.
(f)    If requested by Lender, Borrower shall provide Lender, promptly following Lender’s request therefor, and in any event within the time periods required to comply with Regulation AB or other Legal Requirements relating to a Securitization (but no earlier than five (5) Business Days following notice from Lender), with any other or additional financial statements, or financial, statistical or operating information, as Lender shall reasonably determine to be required pursuant to Regulation AB, or any amendment, modification or replacement thereto or other Legal Requirements relating to a Securitization.
(g)    All financial data and statements provided by Borrower hereunder in connection with a Securitization shall meet (and shall be accompanied by such auditors’ reports or consents and such certificates as may be necessary to comply with) the requirements of Regulation AB and other Legal Requirements, in each case to the extent applicable and as specified by Lender. 
(h)    Provided that no Event of Default has occurred and is continuing, Lender agrees that it shall not sell any portion of the Loan or participation interest therein (excluding any note, certificate or other instrument issued in a Securitization) to an Excluded Entity in connection with the initial sale thereof.  For the avoidance of doubt, Borrower’s rights under this Section do not apply to any sale of Securities or similar certificated instruments, and apply solely to the initial sale of a note, participation or mezzanine interest and not any subsequent resale thereof.  Lender shall be entitled to rely on a representation from a transferee that such transferee is not an Excluded Entity without any need for independent investigation.
(i)    Notwithstanding anything to the contrary contained herein, the provisions regarding the delivery of REMIC Opinions and satisfaction of REMIC Requirements will only apply if all or any portion of the Loan has been securitized. 
Section 11.2.    Disclosure.
(a)    Borrower (on its own behalf and on behalf of each other Borrower Party) understands that information provided to Lender by Borrower, any other Borrower Party and/or their respective agents, counsel and representatives may be (i) included in (A) the Disclosure Documents and (B) filings under the Securities Act and/or the Exchange Act and (ii) made available to Investors, the Rating Agencies and service providers, in each case, in connection with any Securitization.  
(b)    Borrower and Guarantor shall indemnify Lender and its officers, directors, partners, employees, representatives, agents and affiliates against any losses, claims, damages or liabilities (collectively, the “Liabilities”) to which Lender and/or its officers, directors, partners, employees, representatives, agents and/or affiliates may become subject in connection with (x) any Disclosure Document and/or any Covered Rating Agency Information and (y) after a Securitization, any indemnity obligations incurred by Lender or Servicer in connection with any Rating Agency Confirmation, in each case, insofar as such Liabilities arise out of or are based upon any untrue statement of any material fact in the Provided Information and/or arise out of or are based upon the 

    
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omission to state a material fact in the Provided Information required to be stated therein or necessary in order to make the statements in the applicable Disclosure Document and/or Covered Rating Agency Information, in light of the circumstances under which they were made, not misleading.  
(c)    Borrower and Guarantor shall provide in connection with each of (i) a preliminary and a final private placement memorandum, offering memorandum or offering circular, (ii) a free writing prospectus, (iii) a preliminary and final prospectus or prospectus supplement or (iv) a structural and collateral term sheet, as applicable, an agreement (A) certifying that Borrower and Guarantor have examined such sections of the Disclosure Documents entitled “Executive Summary”, “Property Overview”, “Summary of Mortgage Loan Terms”, “Risk Factors”, “Special Considerations”, “Description of the Properties”, “Description of the Loan Parties”, “Description of the Property Manager, Management Agreement and Assignment and Subordination of Management Agreement” (to the extent than any Manager is an Affiliated Manager), “Description of the Operating Lease”, “Description of the Mortgage Loan”, “Description of the Mezzanine Loan”, “Sources and Uses”, “Description of the Loan”, “Annex E - Representations and Warranties of Borrower”, “Annex F-Allocated Loan Amounts”, “Annex G-Borrower Organizational Chart”, and “Risk Factors” and that each such Disclosure Document, as it relates to Borrower, Borrower Affiliates, the Properties, the Collateral, Manager, Sponsor, Guarantor, the Mezzanine Loans, the Loan, the Mortgage Loan, the Mortgage Borrower, the Mezzanine Borrower, the Operating Lessee Pledgor and Borrower’s, Mortgage Borrower’s and Mezzanine Borrower’s rights and obligations under the Loan, the Mortgage Loan and the Mezzanine Loan (but excluding any forward-looking budgets and projections) (collectively, with the Provided Information, the “Covered Disclosure Information”), does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, (B) indemnifying Lender (and for purposes of this Section 11.2(c), Lender hereunder shall include its officers and directors), the Affiliate of Lender (“Lender Affiliate”) that has filed the registration statement relating to the Securitization (the “Registration Statement”), each of its directors, each of its officers who have signed the Registration Statement and each Person that controls the Affiliate within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Lender Group”), and Lender Affiliate, and any other placement agent or underwriter with respect to the Securitization, each of their respective directors and each Person who controls Lender Affiliate or any other placement agent or underwriter within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act (collectively, the “Underwriter Group”) for any Liabilities to which Lender, the Lender Group or the Underwriter Group may become subject insofar as the Liabilities arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Covered Disclosure Information or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated in the Covered Disclosure Information or necessary in order to make the statements in the Covered Disclosure Information, in light of the circumstances under which they were made, not misleading and (C) agreeing to reimburse Lender, the Lender Group and/or the Underwriter Group for any out-of-pocket legal or other expenses reasonably incurred by Lender, the Lender Group and the Underwriter Group in connection with investigating or defending the Liabilities; provided, however, that (I) Borrower and Guarantor will be liable in any such case under Section 11.2(b) or clauses (B) or (C) above only to the extent that any such loss claim, damage or liability arises out of or is based upon any such untrue statement or omission 

    
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made therein in reliance upon and in conformity with information furnished to Lender by or on behalf of Borrower in connection with the preparation of the Disclosure Document or in connection with the underwriting or closing of the Loan, including, without limitation, financial statements of Borrower, operating statements and rent rolls with respect to the Property or is contained under the section headings referenced in clause (A) above (but, in each case, excluding forward-looking budgets and projections), (II) Borrower and Guarantor shall not be obligated to provide the certification set forth in clause (A) above or be liable under Section 11.2(b) or clause (B) or (C) above if Borrower has not been afforded three (3) Business Days to review and comment on the applicable sections of the applicable Disclosure Document, and (III) Borrower and Guarantor shall not be liable under Section 11.2(b) or clause (B) or (C) above with respect to any statement or omission if Borrower shall have notified Lender as to the existence of such untrue statement or omission within a reasonable period of time prior to pricing of the securities and Lender shall have failed to cause such Disclosure Document to be revised accordingly.  The indemnification provided for in clauses (B) and (C) above shall be effective (subject to the proviso set forth in the immediately preceding sentence) whether or not the indemnification agreement described above is provided.  The aforesaid indemnity will be in addition to any liability which Borrower may otherwise have.
(d)    In connection with filings under Exchange Act and/or the Securities Act (subject to the same provisos set forth in clauses (I), (II) and (III) of Section 11.2(c)) Borrower shall (i) indemnify Lender, the Lender Group and the Underwriter Group for Liabilities to which Lender, the Lender Group or the Underwriter Group may become subject insofar as the Liabilities arise out of or are based upon the omission or alleged omission to state in the Covered Disclosure Information a material fact required to be stated in the Covered Disclosure Information in order to make the statements in the Covered Disclosure Information, in light of the circumstances under which they were made, not misleading and (ii) reimburse Lender, the Lender Group or the Underwriter Group for any out-of-pocket legal or other expenses reasonably incurred by Lender, the Lender Group or the Underwriter Group in connection with defending or investigating the Liabilities.
(e)    Promptly after receipt by an Indemnified Person under this Section 11.2 of notice of the commencement of any action, such Indemnified Person will, if a claim in respect thereof is to be made against the Indemnifying Person under this Section 11.2, notify the Indemnifying Person in writing of the commencement thereof (but the omission to so notify the Indemnifying Person will not relieve the Indemnifying Person from any liability which the Indemnifying Person may have to any Indemnified Person hereunder except to the extent that failure to notify causes prejudice to the Indemnifying Person).  In the event that any action is brought against any Indemnified Person, and it notifies the Indemnifying Person of the commencement thereof, the Indemnifying Person will be entitled, jointly with any other Indemnifying Person, to participate therein and, to the extent that it (or they) may elect by written notice delivered to the Indemnified Person promptly after receiving the aforesaid notice from such Indemnified Person, to assume the defense thereof with counsel satisfactory to such Indemnified Person.  After notice from the Indemnifying Person to such Indemnified Person under this Section 11.2, such Indemnifying Person shall pay for any legal or other expenses subsequently incurred by such Indemnifying Person in connection with the defense thereof; provided, however, if the defendants in any such action include both the indemnified party and the Indemnifying Person and the indemnified party shall have reasonably concluded that there are any legal defenses available to it and/or other indemnified parties that are different from or 

    
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additional to those available to the Indemnifying Person, the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party at the cost of the Indemnifying Person.
After notice from such Indemnifying Person to such Indemnified Person of its election to so assume the defense of such claim or action, such Indemnifying Person shall not be liable to such Indemnified Person for any legal or other expenses subsequently incurred by such Indemnified Person in connection with the defense thereof, unless, (1) if the defendants in any such action include both an Indemnified Person and any of the Indemnifying Persons and an Indemnified Person shall have reasonably concluded that there are any legal defenses available to it and/or other Indemnified Persons that are different from or additional to those available to an Indemnifying Person, the Indemnified Person or Persons shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such Indemnified Person at the expense of the Indemnifying Persons, (2) the Indemnifying Person shall not have employed counsel reasonably satisfactory to the Indemnified Person to represent the Indemnified Person within a reasonable time after notice of commencement of the action (provided that the Indemnified Person has provided the Indemnifying Person with ten (10) days prior written notice that it intends to exercise its rights pursuant to this clause (2) and the Indemnifying Person has not employed counsel reasonably satisfactory to the Indemnified Person within such 10-day period), or (3) the Indemnifying Person has authorized in writing the employment of counsel of the Indemnified Person at the expense of the Indemnifying Person. 
Without the prior written consent of the applicable Indemnified Persons (which consent shall not be unreasonably withheld), no Indemnifying Person shall settle or compromise or consent to the entry of any judgment in any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is an actual or potential party to such claim, action, suit or proceeding) unless (i) such Indemnifying Person shall have given the Indemnified Persons reasonable prior written notice thereof and shall have obtained an unconditional release of each Indemnified Person from all liability arising out of such claim, action, suit or proceedings and (ii) such settlement, compromise or judgment does not include a statement as to, or admission of, fault, culpability or a failure to act by or on behalf of any Indemnified Person.  As long as an Indemnifying Person has complied with its obligations to defend and indemnify hereunder, such Indemnifying Person shall not be liable for any settlement made by any Indemnified Person(s) without the consent of such Indemnifying Person (which consent shall not be unreasonably withheld or delayed).  Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested that an Indemnifying Person reimburse the Indemnified Person for fees and expenses of counsel to which the Indemnified Person is entitled pursuant to this Agreement, the Indemnifying Person shall be liable for any settlement, compromise or entry of a judgment in connection with any proceeding effected without its written consent if (i) such settlement, compromise or judgment is entered into or entered, as applicable, more than ninety (90) days after receipt by the Indemnifying Person of such request, (ii) the Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request prior to the date of such settlement, compromise or judgment, and (iii) such settlement, compromise or judgment does not include a statement as to, or an admission of, fault, culpability or failure to act by or on behalf of any such Indemnifying Person; provided, that the Indemnified Person has provided the 

    
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Indemnifying Person with five (5) Business Days prior notice of its intent to exercise its rights under this sentence.
The Indemnifying Person agrees that if any indemnification or reimbursement sought pursuant to this Agreement is judicially determined to be unenforceable for any reason or is insufficient to hold any Indemnified Person harmless (with respect only to the Liabilities from which such Indemnified Person is entitled to be held harmless under this Agreement), then the Indemnifying Persons, on the one hand, and such Indemnified Person, on the other hand, shall contribute to the Liabilities for which such indemnification or reimbursement is held unavailable or is insufficient: (x) in such proportion as is appropriate to reflect the relative benefits to the Indemnifying Persons, on the one hand, and such Indemnified Person, on the other hand, from the transactions to which such indemnification or reimbursement relates; or (y) if the allocation provided by clause (x) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (x) but also the relative faults of the Indemnifying Persons, on the one hand, and all Indemnified Persons, on the other hand, as well as any other equitable considerations.  Notwithstanding the foregoing, no party found liable for a fraudulent misrepresentation shall be entitled to contribution from any other party who is not also found liable for such fraudulent misrepresentation, and the Indemnifying Persons agree that in no event shall the amount to be contributed by the Indemnified Persons collectively pursuant to this paragraph exceed the amount of the fees (by underwriting discount or otherwise) actually received by such Indemnified Persons in connection with the closing of the Loan or the Securitization.
The Indemnifying Persons agree that the indemnification, contribution and reimbursement obligations set forth in this Agreement shall apply whether or not any Indemnified Person is a formal party to any lawsuits, claims or other proceedings.  The Indemnifying Persons further agree that the Indemnified Persons are intended third party beneficiaries under this Agreement.
(f)    The liabilities and obligations of each of Borrower, Guarantor and Lender under this Section 11.2 shall survive the termination of this Agreement and the satisfaction and discharge of the Debt.  Failure by Borrower and/or Guarantor to comply with the provisions of Section 11.1 and/or Section 11.2 within the timeframes specified therein, and if such failure continues for an additional ten (10) Business Days after notice from Lender to Borrower of such failure shall, at Lender’s option, constitute a breach of the terms thereof and/or an Event of Default.
Section 11.3.    Reserves/Escrows.  In the event that Securities are issued in connection with the Loan, all funds held by Lender in escrow or pursuant to reserves in accordance with this Agreement and the other Loan Documents shall be deposited in “eligible accounts” at “eligible institutions” and, to the extent applicable, invested in “permitted investments” as then defined and required by the Rating Agencies.
Section 11.4.    Servicer.  At the option of Lender, the Loan may be serviced by a servicer/special servicer/trustee selected by Lender (collectively, the “Servicer”) and Lender may delegate all or any portion of its responsibilities under this Agreement and the other Loan Documents to such Servicer pursuant to a servicing agreement between Lender and such Servicer.  Without limitation of any other provision contained herein, Borrower shall be liable for the costs and expenses of Lender incurred with respect to any Servicer to the extent provided in Section 17.6 hereof.

    
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Section 11.5.    Rating Agency Costs.  In connection with any Rating Agency Confirmation or other Rating Agency consent, approval or review required hereunder (other than the initial review of the Loan by the Rating Agencies in connection with a Securitization), Borrower shall pay all of the costs and expenses of Lender, Servicer and each Rating Agency in connection therewith, and, if applicable, shall pay any fees imposed by any Rating Agency in connection therewith
Section 11.6.    Mezzanine Option.  Borrower acknowledges and agrees that Mortgage Lender shall have the options set forth in Section 11.6 of the Mortgage Loan Agreement.  Borrower shall cooperate with Mortgage Lender and Lender in Mortgage Lender’s exercise, from time to time, of any and all such options in good faith and in a timely manner, which cooperation shall include, but not be limited to, cooperating with respect to all of the actions and items specified and/or referenced in Section 11.6 of the Mortgage Loan Agreement (subject to the limitations set forth therein, mutatis mutandis.  Lender shall have the option (the “Mezzanine Option”) at any time to divide the Loan into two mezzanine loans, provided, that (i) the total loan amounts for such mezzanine loans shall equal the then outstanding amount of the Loan immediately prior to Lender’s exercise of the Mezzanine Option, (ii) the weighted average interest rate of such mezzanine loans shall equal the Interest Rate (except following an Event of Default) and (iii) the Allocated Loan Amounts shall be allocated between such mezzanine loans on a pro rata basis.  Borrower shall cooperate with Lender in Lender’s exercise of the Mezzanine Option in good faith and in a timely manner, which such cooperation shall include, but not be limited to, (i) executing such amendments to the Loan Documents and organizational documents as may be reasonably requested by Lender or requested by the Rating Agencies (provided, that any such amendment shall not change any economic or non-economic term, including the interest rate or the stated maturity, or otherwise have an adverse effect on Borrower, Guarantor and/or any of their Affiliates or increase the obligations or decrease the rights of Borrower pursuant to the Loan Documents (in each case other than to a de minimus extent), except as provided in clause (ii) of the immediately preceding sentence), (ii) creating one or more Single Purpose Entities (the “New Mezzanine Borrower”), which such New Mezzanine Borrower shall (A) own, directly or indirectly, 100% of the equity ownership interests in Borrower (the “Equity Collateral”), and (B) together with such constituent equity owners of such New Mezzanine Borrower as may be designated by Lender, execute such customary agreements, instruments and other documents as may be required by Lender in connection with the mezzanine loan (including, without limitation, a promissory note evidencing the mezzanine loan and a pledge and security agreement pledging the Equity Collateral to Lender as security for the mezzanine loan); and (iii) delivering such opinions, title endorsements and UCC title insurance policies and using commercially reasonable efforts to deliver documents and/or instruments relating to the Property Documents and other materials as may be reasonably required by Lender or required by the Rating Agencies.  Borrower acknowledges and agrees that the execution of any documents in connection with Lender’s exercise of the Mezzanine Option in accordance with terms and conditions hereof shall not in itself increase the obligations or decrease the rights of Borrower pursuant to the Loan Documents.
Section 11.7.    Conversion to Registered Form.  At the request of Lender, Borrower shall appoint, as its agent, a registrar and transfer agent (the “Registrar”) reasonably acceptable to Lender which shall maintain, subject to such reasonable regulations as it shall provide, such books and records as are necessary for the registration and transfer of the Note in a manner that shall cause 

    
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the Note to be considered to be in registered form for purposes of Section 163(f) of the Code.  The option to convert the Note into registered form once exercised may not be revoked.  Any agreement setting out the rights and obligation of the Registrar shall be subject to the reasonable approval of Lender.  Borrower may revoke the appointment of any particular person as Registrar, effective upon the effectiveness of the appointment of a replacement Registrar.  The Registrar shall not be entitled to any fee from Borrower or Lender or any other lender in respect of transfers of the Note and other Loan Documents.
Section 11.8.    Syndication.  Without limiting Lender’s rights under Section 11.1, the provisions of this Section 11.8 shall only apply in the event that the Loan is syndicated in accordance with the provisions of this Section 11.8 set forth below.
(a)    Sale of Loan, Co-Lenders, Participations and Servicing.
(i)    Lender and any Co-Lender may, at their option, without Borrower’s consent (but with notice to Borrower), sell with novation all or any part of their right, title and interest in, and to, and under the Loan (the “Syndication”), to one or more additional lenders (each a “Co-Lender”).  Each additional Co-Lender shall enter into an assignment and assumption agreement (the “Assignment and Assumption”) assigning a portion of Lender’s or Co-Lender’s rights and obligations under the Loan, and pursuant to which the additional Co-Lender accepts such assignment and assumes the assigned obligations.  From and after the effective date specified in the Assignment and Assumption (i) each Co-Lender shall be a party hereto and to each Loan Document to the extent of the applicable percentage or percentages set forth in the Assignment and Assumption and, except as specified otherwise herein, shall succeed to the rights and obligations of Lender and the Co-Lenders hereunder and thereunder in respect of the Loan, and (ii) Lender, as lender and each Co-Lender, as applicable, shall, to the extent such rights and obligations have been assigned by it pursuant to such Assignment and Assumption, relinquish its rights and be released from its obligations hereunder and under the Loan Documents.
(ii)    The liabilities of Lender and each of the Co-Lenders shall be several and not joint, and Lender’s and each Co-Lender’s obligations to Borrower under this Agreement shall be reduced by the applicable amount assigned under each such Assignment and Assumption.  Neither Lender nor any Co-Lender shall be responsible for the obligations of any other Co-Lender.  Lender and each Co-Lender shall be liable to Borrower only for their respective proportionate shares of the Loan.
(iii)    Borrower agrees that it shall, in connection with any sale of all or any portion of the Loan, whether in whole or to an additional Co-Lender or Participant, within ten (10) Business Days after requested by Agent, furnish Agent with the certificates required under Sections 4.12 and 4.13 hereof and such other information as reasonably requested by any additional Co-Lender or Participant in performing its due diligence in connection with its purchase of an interest in the Loan.
(iv)    Citi (or an Affiliate of Citi) shall act as administrative agent for itself and the Co-Lenders (together with any successor administrative agent, the “Agent”) pursuant to 

    
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this Section 11.8.  Borrower acknowledges that Citi, as Agent, shall have the sole and exclusive authority to execute and perform this Agreement and each Loan Document on behalf of itself, as a Lender and as agent for itself and the Co-Lenders subject to the terms of the Co-Lending Agreement.  Each Lender acknowledges that Citi, as Agent, shall retain the exclusive right to grant approvals and give consents with respect to all matters requiring consent hereunder.  Except as otherwise provided herein, Borrower shall have no obligation to recognize or deal directly with any Co-Lender, and no Co-Lender shall have any right to deal directly with Borrower with respect to the rights, benefits and obligations of Borrower under this Agreement, the Loan Documents or any one or more documents or instruments in respect thereof.  Borrower may rely conclusively on the actions of Citi as Agent to bind Citi and the Co-Lenders, notwithstanding that the particular action in question may, pursuant to this Agreement or the Co-Lending Agreement be subject to the consent or direction of some or all of the Co-Lenders.  Citi may resign as Agent of the Co-Lenders, in its sole discretion, or if required to by the Co-Lenders in accordance with the term of the Co-Lending Agreement, in each case without the consent of but upon prior written notice to Borrower.  Upon any such resignation, a successor Agent shall be determined pursuant to the terms of the Co-Lending Agreement.  The term Agent shall include any successor Agent.
(v)    Notwithstanding any provision to the contrary in this Agreement, the Agent shall not have any duties or responsibilities except those expressly set forth herein (and in the Co-Lending Agreement) and no covenants, functions, responsibilities, duties, obligations or liabilities of Agent shall be implied by or inferred from this Agreement, the Co-Lending Agreement, or any other Loan Document, or otherwise exist against Agent.
(vi)    Except to the extent its obligations hereunder and its interest in the Loan have been assigned pursuant to one or more Assignments and Assumption instruments, Citi, as Agent, shall have the same rights and powers under this Agreement as any other Co-Lender and may exercise the same as though it were not Agent, respectively.  The term “Co-Lender” or “Co-Lenders” shall, unless otherwise expressly indicated, include Citi in its individual capacity.  Citi and the other Co-Lenders and their respective Affiliates may accept deposits from, lend money to, act as trustee under indentures of, and generally engage in any kind of business with, Borrower, or any Affiliate of Borrower and any Person who may do business with or own securities of Borrower or any Affiliate of Borrower, all as if they were not serving in such capacities hereunder and without any duty to account therefor to each other.
(vii)    If required by any Co-Lender, Borrower hereby agrees to execute and deliver (in exchange for the original Note being replaced) supplemental notes in the principal amount of such Co-Lender’s pro rata share of the Loan substantially in the form of the Note, and such supplemental note shall (i) be payable to order of such Co-Lender, (ii) be dated as of the Closing Date, and (iii) mature on the Maturity Date.  Such supplemental note shall provide that it evidences a portion of the existing indebtedness hereunder and under the Note and not any new or additional indebtedness of Borrower.  The term “Note” as used in this Agreement and in all the other Loan Documents shall include all such supplemental notes.

    
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(viii)    Citi, as Agent, shall maintain at its domestic lending office or at such other location as Citi, as Agent, shall designate in writing to each Co-Lender and Borrower a copy of each Assignment and Assumption delivered to and accepted by it and a register for the recordation of the names and addresses of the Co-Lenders, the amount of each Co-Lender’s proportionate share of the Loan (including the principal amounts and stated interest owing to each Co-Lender) and the name and address of each Co-Lender’s agent for service of process (the “Register”).  The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and Borrower, Citi, as Agent, and the Co-Lenders may treat each person or entity whose name is recorded in the Register as a Co-Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection and copying by Borrower or any Co-Lender during normal business hours upon reasonable prior notice to the Agent.  A Co-Lender may change its address and its agent for service of process upon written notice to Lender, as Agent, which notice shall only be effective upon actual receipt by Citi, as Agent, which receipt will be acknowledged by Citi, as Agent, upon request.
(ix)    Notwithstanding anything herein to the contrary, any financial institution or other entity may be sold a participation interest in the Loan by Lender or any Co-Lender without Borrower’s consent (such financial institution or entity, a “Participant”).  No Participant shall have any rights under this Agreement, the Note or any of the Loan Documents and the Participant’s rights in respect of such participation shall be solely against Lender or Co-Lender, as the case may be, as set forth in the participation agreement executed by and between Lender or Co-Lender, as the case may be, and such Participant.  Borrower may rely conclusively on the actions of Lender as Agent to bind Lender and any Participant, notwithstanding that the particular action in question may, pursuant to this Agreement or any participation agreement be subject to the consent or direction of some or all of the Participants.  No participation shall relieve Lender or Co-Lender, as the case may be, from its obligations hereunder or under the Note or the Loan Documents and Lender or Co- Lender, as the case may be, shall remain solely responsible for the performance of its obligations hereunder.  Each Lender or Co-Lender that sells a participation shall, acting solely for this purpose as agent of Borrower, maintain a register on which it enters the name and address of each participant and the principal amounts and stated interest of each Participant’s interest (the “Participant Register”); provided that no Lender or Co-Lender shall have any obligation to disclose all or any portion of the Participant Register to any Person (including the identity of any participant or any information relating to a Participant’s interest) except to the extent that such disclosure is necessary to establish that the applicable obligation is in registered form under Section 5f.103-1(c) of the U.S. Department of Treasury regulations.  The entries in the Participant Register shall be conclusive absent manifest error.  The Borrower, the Lenders and the Servicer may treat each Person whose name is recorded in the Participant Register pursuant to the terms hereof as the owner of such participation for all purposes of this Agreement.  Failure to make any such recordation, or any error in such recordation, however, shall not affect Borrower’s obligations in respect of the Loan.
(x)    Notwithstanding any other provision set forth in this Agreement, Lender or any Co-Lender may at any time create a security interest in all or any portion of its rights under this Agreement (including, without limitation, amounts owing to it in favor of any 

    
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Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the Federal Reserve System).
(b)    Cooperation in Syndication.
(i)    Borrower agrees to use (and cause its Affiliates to use) commercially reasonable efforts to assist Lender in completing a Syndication satisfactory to Lender.  Such assistance shall include the following, in each case, as reasonably requested by Lender (i) direct contact between senior management and advisors of Borrower, Sponsor and Guarantor and the proposed Co-Lenders, (ii) provision of information for use in the preparation of a confidential information memorandum and other marketing materials to be used in connection with the Syndication, (iii) the hosting, with Lender, of one or more meetings of prospective Co-Lenders or with the Rating Agencies, and (iv) working with Lender to procure a rating for the Loan by the Rating Agencies.
(ii)    Lender shall manage all aspects of the Syndication of the Loan, including decisions as to the selection of institutions to be approached and when they will be approached, when their commitments will be accepted, which institutions will participate (subject to the other provisions of this Agreement), the allocations of the commitments among the Co-Lenders and the amount and distribution of fees among the Co-Lenders.  To assist Lender in its Syndication efforts, Borrower agrees promptly to prepare and provide to Lender all information with respect to Borrower, Mortgage Borrower, Manager, Guarantor, Sponsor, any SPE Component Entity (if any), Mezzanine Borrower, Operating Lessee Pledgor, the Collateral and the Properties contemplated hereby, including all financial information and projections (the “Projections”), as Lender may reasonably request in connection with the Syndication of the Loan.  Borrower hereby represents and covenants that (i) all information other than the Projections (the “Information”) that has been or will be made available to Lender by Borrower or any of their representatives is or will be, when furnished, complete and correct in all material respects and does not or will not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made and (ii) the Projections that have been or will be made available to Lender by Borrower or any of their representatives have been or will be prepared in good faith based upon reasonable assumptions.  Borrower understands that in arranging and syndicating the Loan, Lender, the Co-Lenders and, if applicable, the Rating Agencies, may use and rely on the Information and Projections without independent verification thereof.
(iii)    If required in connection with the Syndication, Borrower hereby agrees that, in addition to complying with Section 11.1, it shall use commercially reasonable efforts to obtain and deliver reliance letters reasonably satisfactory to Lender with respect to the environmental assessments and reports delivered to Lender prior to the Closing Date, which will run to Lender, any Co-Lender and their respective successors and assigns.
Borrower shall be responsible for payments of its legal fees incurred in connection with compliance with the requests made under this Section.  

    
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(c)    No Joint Venture.  Notwithstanding anything to the contrary herein contained, neither Agent, Lender nor any Co-Lender by entering into this Agreement or by taking any action pursuant hereto, will be deemed a partner or joint venturer with Borrower.
(d)    Voting Rights of Co-Lenders.  Borrower acknowledges that the Co-Lending Agreement may contain provisions which require that amendments, waivers, extensions, modifications, and other decisions with respect to the Loan Documents shall require the approval of all or a number of the Co-Lenders holding in the aggregate a specified percentage of the Loan or any one or more Co-Lenders that are specifically affected by such amendment, waiver, extension, modification or other decision.  Borrower’s rights and obligations hereunder are independent of the Co-Lending Agreement and remain unmodified by the terms and provisions thereof.
Section 11.9.    Intentionally Omitted.
Section 11.10.    Intercreditor Agreement.  Lender, Mortgage Lender, Mezzanine B Lender and Mezzanine C Lender are or will be parties to a certain Intercreditor Agreement (the “Intercreditor Agreement”) memorializing their relative rights and obligations with respect to the Loan, the Mortgage Loan, the Mezzanine B Loan, the Mezzanine C Loan, Borrower, Mortgage Borrower, Mezzanine B Borrower, Mezzanine C Borrower, the Collateral and the Properties.  Borrower hereby acknowledges and agrees that (i) such Intercreditor Agreement is intended solely for the benefit of Lender, Mortgage Lender, Mezzanine B Lender and Mezzanine C Lender and (ii) Borrower, Mortgage Borrower, Mezzanine B Borrower and Mezzanine C Borrower are not intended third-party beneficiaries of any of the provisions therein and shall not be entitled to rely on the provisions contained therein.  Lender, Mortgage Lender, Mezzanine B Lender and Mezzanine C Lender shall have no obligation to disclose to Borrower the contents of the Intercreditor Agreement.  Borrower’s obligations hereunder are independent of such Intercreditor Agreement and remain unmodified by the terms and provisions thereof.
ARTICLE 12. 
 
INDEMNIFICATIONS
Section 12.1.    General Indemnification.  Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Persons from and against any and all Losses imposed upon or incurred by or asserted against any Indemnified Persons and arising out of or in any way relating to any one or more of the following: (a) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about any Individual Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (b) any use, nonuse or condition in, on or about any Individual Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (c) performance of any labor or services or the furnishing of any materials or other property in respect of any Individual Property or any part thereof; (d) any failure of any Individual Property (or any portion thereof) or the Collateral (or any portion thereof) to be in compliance with any applicable Legal Requirements; (e) any and all claims and demands whatsoever which may be asserted against Lender by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants, or agreements contained 

    
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in any Lease, management agreement or any Property Documents; (f) the payment of any brokerage commission, charge or fee to anyone (other than a broker or other agent retained by Lender) which may be payable in connection with the funding of the Loan evidenced by the Note and secured by the Pledge Agreement; and/or (g) the holding or investing of the funds on deposit in the Accounts or the performance of any work or the disbursement of funds in each case in connection with the Accounts; provided, however, that the foregoing covenant shall not apply to any matter to the extent arising from the gross negligence, fraud, illegal acts or willful misconduct of an Indemnified Person or from events or conditions first arising from and after the taking of control or possession by Lender, its nominee, or any purchaser at a foreclosure sale, (ii) resulting from any breach of a Loan Document by an Indemnified Person as determined by a court of competent jurisdiction (to the extent and for so long as such Indemnified Person disputes the occurrence of such breach), or (iii) constituting Excluded Taxes.  Any amounts payable to Lender by reason of the application of this Section 12.1 shall become due and payable immediately after demand therefor by Lender and shall bear interest at the Default Rate from the date loss or damage is sustained by Lender until paid.  
Section 12.2.    Mortgage and Intangible Tax Indemnification.  Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Persons from and against any and all Losses imposed upon or incurred by or asserted against any Indemnified Person and directly or indirectly arising out of or in any way relating to any tax on the making and/or recording of the Security Instrument, any of the other Mortgage Loan Documents, the Note and/or any of the other Loan Documents.
Section 12.3.    ERISA Indemnification.  Borrower shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Persons from and against any and all Losses (including, without limitation, reasonable attorneys’ fees and costs incurred in the investigation, defense, and settlement of Losses incurred in correcting any prohibited transaction or in the sale of a prohibited loan, and in obtaining any individual prohibited transaction exemption under ERISA that may be required, in Lender’s sole discretion) that Lender may incur as a result of a default under Sections 3.7 or 4.19 of this Agreement.
Section 12.4.    Duty to Defend, Legal Fees and Other Fees and Expenses.  Upon written request by any Indemnified Person, Borrower shall defend such Indemnified Person (if requested by any Indemnified Person, in the name of the Indemnified Person) by attorneys and other professionals selected by Borrower and reasonably approved by the Indemnified Persons.  Notwithstanding the foregoing, any Indemnified Persons may, in their sole discretion and at the Indemnified Persons’ sole cost and expense, engage their own attorneys and other professionals to defend or assist them, and, at the option of Indemnified Persons, their attorneys shall control the resolution of any claim or proceeding.  Upon demand if Borrower is not defending the Indemnified Persons in accordance with this Section 12.4, Borrower shall pay or, in the sole discretion of the Indemnified Persons, reimburse, the Indemnified Persons for the payment of reasonable fees and disbursements of attorneys, engineers, environmental consultants, laboratories and other professionals in connection therewith.
Section 12.5.    Survival.  The obligations and liabilities of Borrower under this Article 12 shall fully survive indefinitely notwithstanding any termination, satisfaction, assignment, entry of 

    
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a judgment of foreclosure, exercise of any power of sale, or delivery of an assignment in lieu of foreclosure of the Pledge Agreement.
Section 12.6.    Environmental Indemnity.  Simultaneously herewith, Borrower and Guarantor have executed and delivered the Environmental Indemnity to Lender, which Environmental Indemnity is not secured by the Pledge Agreement.
ARTICLE 13. 
 
EXCULPATION
Section 13.1.    Exculpation.
(a)    Subject to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and observe the obligations contained in the Note, this Agreement, the Pledge Agreement or the other Loan Documents by any action or proceeding wherein a money judgment or any deficiency judgment or other judgment establishing personal liability shall be sought against Borrower or any principal, director, officer, employee, beneficiary, shareholder, partner, member, trustee, agent, or Affiliate of Borrower or any legal representatives, successors or assigns of any of the foregoing (collectively, the “Exculpated Parties”), except that Lender may bring a foreclosure action, an action for specific performance or any other appropriate action or proceeding to enable Lender to enforce and realize upon its interest under the Note, this Agreement, the Pledge Agreement and the other Loan Documents, or in the Collateral (or any portion thereof) or any other collateral given to Lender pursuant to the Loan Documents; provided, however, that, except as specifically provided herein, any judgment in any such action or proceeding shall be enforceable against Borrower only to the extent of Borrower’s interest in the Collateral and in any other collateral given to Lender, and Lender, by accepting the Note, this Agreement, the Pledge Agreement and the other Loan Documents, shall not sue for, seek or demand any deficiency judgment against Borrower or any of the Exculpated Parties in any such action or proceeding under or by reason of or under or in connection with the Note, this Agreement, the Pledge Agreement or the other Loan Documents.  The provisions of this Section shall not, however, (1) constitute a waiver, release or impairment of any obligation evidenced or secured by any of the Loan Documents; (2) impair the right of Lender to name Borrower as a party defendant in any action or suit for foreclosure and sale under the Pledge Agreement; (3) affect the validity or enforceability of any indemnity, guaranty or similar instrument (including, without limitation, indemnities set forth in Article 12 hereof, Section 11.2 hereof, in the Guaranty and the Environmental Indemnity) made in connection with the Loan or any of the rights and remedies of Lender thereunder (including, without limitation, Lender’s right to enforce said rights and remedies against Borrower and/or Guarantor (as applicable) personally and without the effect of the exculpatory provisions of this Article 13); (4) impair the rights of Lender to (A) obtain the appointment of a receiver and/or (B) enforce its security interest in the Accounts as provided in Articles 8 and 9 hereof; (5) impair the enforcement of the Pledge Agreement; (6) constitute a prohibition against Lender to seek a deficiency judgment against Borrower in order to fully realize the security granted by the Pledge Agreement or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against the Collateral (or any portion thereof); or (7) constitute a waiver of the right of Lender to enforce the liability and obligation of Borrower, by money judgment or otherwise, to the extent of any reasonable 

    
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out-of-pocket Loss incurred by Lender (including out-of-pocket attorneys’ fees and costs reasonably incurred but in all events excluding consequential, punitive and special damages (except to the extent Lender is actually liable for such damages)) arising out of or in connection with the following:
(i)    fraud or intentional misrepresentation by any Borrower Party in connection with the Loan;
(ii)    the gross negligence or willful misconduct of any Borrower Party;
(iii)    material physical waste to any Individual Property arising from the intentional acts or omissions of any Borrower Party (it being acknowledged that omissions to perform acts for which sufficient cash flow is not available from the Properties shall not be deemed an intentional omission for purposes of this clause (iii));
(iv)    the removal or disposal by any Borrower Party or any of its respective Affiliates of any portion of any Individual Property after an Event of Default unless such portion of any Individual Property so removed or so disposed of is replaced with property of equal utility and value or such removal or disposal was otherwise permitted pursuant to the terms and conditions hereof;
(v)    the misapplication or conversion by any Borrower Party of (A) any insurance proceeds paid by reason of any loss, damage or destruction to any Individual Property (or any portion thereof), (B) any Awards or other amounts received in connection with the Condemnation of all or a portion of any Individual Property, (C) any Rents following an Event of Default, (D) any Rents paid more than one month in advance and/or (E) any Net Liquidation Proceeds After Debt Service);
(vi)    failure to pay Taxes, charges for labor or materials or other charges that can create liens on any portion of any Individual Property in accordance with the terms and provisions hereof; provided, however, Borrower shall have no liability under this subsection (vi) if (A) such Taxes, charges for labor or materials or other charges that can create liens are being contested in accordance with the terms and conditions hereof or (B) sufficient cash flow is not available from the Properties to pay such amounts; provided, that, in no instance shall Borrower be released from any liability pursuant to this clause (vi) to the extent (1) such insufficiency of cash flow arises from the intentional misappropriation or conversion of Rent by any Borrower Party or (2) Borrower or Mortgage Borrower incurred such charges after the occurrence and during the continuance of an Event of Default, except to the extent such charges were (I) necessary to protect against imminent danger to the health or safety of any Tenant or any Person at or in the immediate vicinity of any Individual Property or to prevent any imminent defect, damage or harm to any Individual Property, (II) contracted for prior to such Event of Default or (III) consented to in writing by Lender;
(vii)    any security deposits, advance deposits or any other deposits collected with respect to any Individual Property which are not delivered to Lender upon a foreclosure of any Collateral or action in lieu thereof, except to the extent any such security deposits were 

    
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applied in accordance with the terms and conditions of any of the Leases prior to the occurrence of the Event of Default that gave rise to such foreclosure or action in lieu thereof; 
(viii)    the breach or violation by Borrower, Mortgage Borrower and/or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) of any representation, warranty or covenant contained in Article 5 hereof;
(ix)    the failure by Borrower to (A) permit (or cause Mortgage Borrower to permit) on-site inspections of any Individual Property, (B) provide any financial information regarding hereunder and/or pursuant to the other Loan Documents and/or (C) appoint (or cause Mortgage Borrower to appoint) a Qualified Manager pursuant to a Qualified Management Agreement upon the request of Lender which failure constitutes an Event of Default;
(x)    a breach of Section 11.1 and/or Section 11.2 hereof, which breach continues for three (3) Business Days after notice from Lender;
(xi)    any material amendment, material modification or voluntary termination of any Ground Lease by any Borrower or any Mortgage Borrower without Lender’s consent other than as expressly permitted pursuant to the terms hereof;
(xii)    the termination or suspension of any Health Care License arising in connection with any grossly negligent or willful material violation of any Health Care Requirement or otherwise by Borrower or Mortgage Borrower or any voluntary termination or rejection of any such Health Care License by Borrower or Mortgage Borrower, in each instance, which termination, suspension or rejection constitutes an Event of Default;
(xiii)    any violation of Article 6 hereof not otherwise covered pursuant to clauses (b)(iv) and (b)(v) immediately below, provided, however, for the avoidance of doubt, a Sale or Pledge resulting from the consummation of an enforcement action by Lender, Mortgage Lender or the holder of any Mezzanine Loan shall not be a Sale or Pledge in violation of Article 6 hereof; or
(xiv)    the incurrence by Mortgage Borrower of any voluntary indebtedness prohibited by the Mortgage Loan Agreement.
(b)    Notwithstanding anything to the contrary in this Agreement, the Note or any of the Loan Documents, (A) Lender shall not be deemed to have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a claim for the full amount of the Debt or to require that all collateral shall continue to secure all of the Debt owing to Lender in accordance with the Loan Documents, and (B) the Debt shall be fully recourse to Borrower in the event that: (i) a Bankruptcy Event occurs, (ii) the first full monthly payment of principal (if any) and interest under the Note is not paid when due; (iii) any representation, warranty or covenant contained in Article 5 is violated or breached and such breach or violation results in, or is a substantial factor in, a substantive consolidation of Borrower, Mortgage Borrower and/or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) with any other 

    
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Person in a bankruptcy or similar proceedings; (iv) if Borrower, Mortgage Borrower and/or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) fails to obtain Lender’s prior written consent to (A) any voluntary indebtedness or (B) voluntary monetary lien encumbering any Individual Property or any Collateral to the extent such lien required Lender’s consent under this Agreement or the other Loan Documents; or (v) if Borrower, Mortgage Borrower and/or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) fails to obtain Lender’s prior written consent to any voluntary transfer of any material portion of any Individual Property or any Collateral or to any voluntary act that causes a change in the ownership of Borrower, Mortgage Borrower and/or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) to the extent such ownership change required Lender’s consent under this Agreement; provided, however, for the avoidance of doubt, a Sale or Pledge resulting from the consummation of an enforcement action by Lender, Mortgage Lender or the holder of any Mezzanine Loan shall not be a Sale or Pledge in violation of Article 6 hereof.
Notwithstanding any provision contained herein or in any other Loan Document, no direct or indirect shareholder, partner, member, principal, affiliate, employee, officer, director, agent or representative of Borrower (each, a “Related Party”) (other than (a) Guarantor in accordance with the Guaranty and the Environmental Indemnity and (b) any Manager that is an Affiliate of Borrower in accordance with any Loan Document to which such Manager may be a party) shall have any personal liability for, nor be joined as a party to any action with respect to (i) the payment of any sum of money which is or may be payable hereunder or under any other Loan Documents, including, but not limited to, the repayment of the Loan or (ii) the performance or discharge of any covenants, obligations or undertakings of Guarantor or any Related Party with respect thereto.  In addition to the foregoing, anything contained herein or in the other Loan Documents notwithstanding, in no event will the assets of any Related Party (other than Guarantor in accordance with the Guaranty and the Environmental Indemnity) be available to satisfy any obligation of Borrower hereunder.
ARTICLE 14. 
 
NOTICES
Section 14.1.    Notices.  All notices or other written communications hereunder shall be deemed to have been properly given (a) upon delivery, if delivered in person or by facsimile transmission with receipt acknowledged by the recipient thereof and confirmed by telephone by sender, (b) one (1) Business Day after having been deposited for overnight delivery with any reputable overnight courier service, or (c) three (3) Business Days after having been deposited in any post office or mail depository regularly maintained by the U.S.  Postal Service and sent by registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

    
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	If to Borrower:
	c/o NorthStar Realty Finance Corp. 
399 Park Avenue, 18th Floor 
New York, New York 10022 
Attn:  Ronald Lieberman 
Facsimile No.: (212) 547-2704
and
c/o NorthStar Realty Finance Corp. 
399 Park Avenue, 18th Floor 
New York, New York 10022 
Attn:  Debra A. Hess 
Facsimile No.: (212) 547-2705

	With a copy to:
	Paul, Weiss, Rifkind, Wharton & Garrison LLP 
1285 Avenue of the Americas 
New York, New York 10019-6064 
Attention :  Harris B. Freidus, Esq. 
Facsimile No.:  (212) 492-0064

	If to Lender:
	Citigroup Global Markets Realty Corp. 
388 Greenwich Street 
19th Floor 
New York, New York 10013 
Attention :  Ana Rosu Marmann 
Facsimile No.:  (646) 328-2938

	And to:

And to:

And to:

With a copy to:
	JPMorgan Chase Bank, National Association
383 Madison Avenue
New York, New York 10179
Attention: Joseph Geoghan
Facsimile No.: (212) 834-6029

Barclays Bank PLC
745 Seventh Avenue
New York, New York 10019
Attention:  Michael S. Birajiclian
Facsimile No.:  (646) 531-5391

Column Financial, Inc.
Eleven Madison Avenue
New York, New York  10010
Attention:  Legal and Compliance Department/FID Securitized Product
Facsimile No.: (212) 322-1730

Dechert LLP
Cira Centre
2929 Arch Street
Philadelphia, Pennsylvania 19104
Attention:  David W. Forti, Esq.
Facsimile No.:  (215) 655-2647

    
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or addressed as such party may from time to time designate by written notice to the other parties.
Either party by notice to the other may designate additional or different addresses for subsequent notices or communications.
ARTICLE 15. 
 
FURTHER ASSURANCES
Section 15.1.    Replacement Documents.  Upon receipt of an affidavit of an officer of Lender as to the loss, theft, destruction or mutilation of the Note, this Agreement or any of the other Loan Documents which is not of public record, and, in the case of any such mutilation, upon surrender and cancellation of the Note, this Agreement or such other Loan Document, Borrower will issue, in lieu thereof, a replacement thereof, dated the date of the Note, this Agreement or such other Loan Document, as applicable, in the same principal amount thereof and otherwise of like tenor
Section 15.2.    Execution of Pledge Agreement.
(a)    Borrower forthwith upon the execution and delivery of the Pledge Agreement and thereafter, from time to time, will cause the Pledge Agreement and any of the other Loan Documents creating a lien or security interest or evidencing the lien hereof upon the Collateral; and each instrument of further assurance to be filed, registered or recorded in such manner and in such places as may be required by any present or future law in order to publish notice of and fully to protect and perfect the lien or security interest hereof upon, and the interest of Lender in, the Collateral.  Borrower will pay all taxes, filing, registration or recording fees, and all expenses incident to the preparation, execution, acknowledgment and/or recording of the Note, the Pledge Agreement, this Agreement, the other Loan Documents, any note or instrument supplemental hereto, any security instrument with respect to the Collateral and any instrument of further assurance, and any modification or amendment of the foregoing documents, and all federal, state, county and municipal taxes, duties, imposts, assessments and charges arising out of or in connection with the execution and delivery of the Pledge Agreement or any instrument supplemental hereto, any security instrument with respect to the Collateral or any instrument of further assurance, and any modification or amendment of the foregoing documents, except where prohibited by applicable law so to do.  
Section 15.3.    Further Acts, etc.  Borrower will, at the cost of Borrower, and without expense to Lender, do, execute, acknowledge and deliver all and every further acts, deeds, conveyances, pledges, assignments, notices of assignments, transfers and assurances as Lender shall, from time to time, reasonably require, for the better assuring, conveying, assigning, transferring, and confirming unto Lender the property and rights hereby granted, bargained, sold, conveyed, confirmed, pledged, assigned, warranted and transferred or intended now or hereafter so to be, or which Borrower may be or may hereafter become bound to convey or assign to Lender, or for carrying out the intention or facilitating the performance of the terms of this Agreement and the Pledge Agreement or for filing the financing statements, or for complying in all material respects with all Legal Requirements and all Health Care Requirements.  Borrower, on demand, will execute and deliver, and in the event it shall fail to so execute and deliver, hereby authorizes Lender to execute in the name of Borrower or without the signature of Borrower to the extent Lender may 

    
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lawfully do so, one or more financing statements to evidence more effectively the security interest of Lender in the Collateral.  Borrower grants to Lender an irrevocable power of attorney coupled with an interest for the purpose of exercising and perfecting any and all rights and remedies available to Lender at law and in equity in connection with the Loan, including without limitation, such rights and remedies available to Lender pursuant to this Section 15.3, exercisable, in each case, to the extent that Borrower fails to take the necessary actions within ten (10) days after Borrower’s receipt of written request therefor from Lender.
Section 15.4.    Changes in Tax, Debt, Credit and Documentary Stamp Laws.
(a)    If any law is enacted or adopted or amended after the date of this Agreement which deducts the Debt from the value of the Collateral (or any portion thereof) for the purpose of taxation and which imposes a tax, either directly or indirectly, on the Debt or Lender’s interest in the Collateral (or any portion thereof) (other than an Excluded Tax), Borrower will pay the tax, with interest and penalties thereon, if any.  If Lender is advised by counsel chosen by it that the payment of tax by Borrower would be unlawful or taxable to Lender or unenforceable or provide the basis for a defense of usury then Lender shall have the option by written notice of not less than one hundred eighty (180) days to declare the Debt immediately due and payable.
(b)    Borrower will not claim or demand or be entitled to any credit or credits on account of the Debt for any part of the Taxes or Other Charges assessed against the Property, or any part thereof, or the Collateral (or any part thereof), and no deduction shall otherwise be made or claimed from the assessed value of the Collateral, or any respective part thereof, for real estate tax purposes by reason of the Security Instrument, the Pledge Agreement or the Debt.  If such claim, credit or deduction shall be required by applicable law, Lender shall have the option, by written notice of not less than one hundred eighty (180) days, to declare the Debt immediately due and payable.
(c)    If at any time the United States of America, any State thereof or any subdivision of any such State shall require revenue or other stamps to be affixed to the Note, the Pledge Agreement, or any of the other Loan Documents or impose any other tax or charge on the same (other than an Excluded Tax), Borrower will pay for the same, with interest and penalties thereon, if any.
ARTICLE 16. 
 
WAIVERS
Section 16.1.    Remedies Cumulative; Waivers.  The rights, powers and remedies of Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Lender may have against Borrower pursuant to this Agreement, the Pledge Agreement, the Note or the other Loan Documents, or existing at law or in equity or otherwise.  Lender’s rights, powers and remedies may be pursued singularly, concurrently or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion.  No delay or omission to exercise any remedy, right or power accruing upon an Event of Default shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient.  A waiver of one Default or Event of Default with respect to Borrower shall not be construed to be a waiver of 

    
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any subsequent Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon.
Section 16.2.    Modification, Waiver in Writing.  No modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement, the Pledge Agreement, the Note and the other Loan Documents, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given.  Except as otherwise expressly provided herein, no notice to, or demand on Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances.
Section 16.3.    Delay Not a Waiver.  Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege under this Agreement, the Pledge Agreement, the Note or the other Loan Documents, or any other instrument given as security therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege.  In particular, and not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement, the Pledge Agreement, the Note or the other Loan Documents, Lender shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement, the Pledge Agreement, the Note and the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount.
Section 16.4.    Waiver of Trial by Jury.  BORROWER AND LENDER HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN, THE APPLICATION FOR THE LOAN, THIS AGREEMENT, THE NOTE, THE PLEDGE AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY ACTS OR OMISSIONS OF LENDER OR BORROWER.
Section 16.5.    Waiver of Notice.  Borrower shall not be entitled to any notices of any nature whatsoever from Lender except (a) with respect to matters for which this Agreement specifically and expressly provides for the giving of notice by Lender to Borrower and (b) with respect to matters for which Lender is required by applicable law to give notice, and Borrower hereby expressly waives the right to receive any notice from Lender with respect to any matter for which this Agreement does not specifically and expressly provide for the giving of notice by Lender to Borrower.
Section 16.6.    Remedies of Borrower.  In the event that a claim or adjudication is made that Lender or its agents have acted unreasonably or unreasonably delayed acting in any case where by applicable law or under this Agreement, the Pledge Agreement, the Note and the other Loan Documents, Lender or such agent, as the case may be, has an obligation to act reasonably or promptly, Borrower agrees that neither Lender nor its agents shall be liable for any monetary damages, and Borrower’s sole remedies shall be limited to commencing an action seeking injunctive relief or declaratory judgment.  The parties hereto agree that any action or proceeding to determine whether 

    
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Lender has acted reasonably shall be determined by an action seeking injunctive relief or declaratory judgment.  Lender agrees that, in such event, it shall cooperate in expediting any action seeking injunctive relief or declaratory judgment.
Section 16.7.    Marshalling and Other Matters.  Borrower hereby waives, to the extent permitted by applicable Legal Requirements, the benefit of all appraisement, valuation, stay, extension, reinstatement and redemption laws now or hereafter in force and all rights of marshalling in the event of any sale under the Pledge Agreement or the Collateral or any part thereof or any interest therein.  Further, Borrower hereby expressly waives any and all rights of redemption from sale under any order or decree of foreclosure of the Pledge Agreement on behalf of Borrower, and on behalf of each and every person acquiring any interest in or title to the Collateral (or any portion thereof) subsequent to the date of the Pledge Agreement and on behalf of all persons to the extent permitted by applicable Legal Requirements.
Section 16.8.    Waiver of Statute of Limitations.  To the extent permitted by applicable Legal Requirements, Borrower hereby expressly waives and releases to the fullest extent permitted by applicable Legal Requirements, the pleading of any statute of limitations as a defense to payment of the Debt or performance of its obligations hereunder, under the Note, the Pledge Agreement or other Loan Documents.
Section 16.9.    Waiver of Counterclaim.  Borrower hereby waives the right to assert a counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents.
Section 16.10.    Sole Discretion of Lender.  Wherever pursuant to this Agreement (a) Lender exercises any right given to it to approve or disapprove, (b) any arrangement or term is to be satisfactory to Lender, or (c) any other decision or determination is to be made by Lender, the decision to approve or disapprove all decisions that arrangements or terms are satisfactory or not satisfactory, and all other decisions and determinations made by Lender, shall be in the sole discretion of Lender, except as may be otherwise expressly and specifically provided herein.
ARTICLE 17. 
 
MISCELLANEOUS
Section 17.1.    Survival.  This Agreement and all covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in full force and effect so long as all or any of the Debt is outstanding and unpaid unless a longer period is expressly set forth in this Agreement, the Pledge Agreement, the Note or the other Loan Documents.  Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the legal representatives, successors and assigns of such party.  All covenants, promises and agreements in this Agreement, by or on behalf of a party, shall inure to the benefit of the legal representatives, successors and assigns of the other party.

    
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Section 17.2.    Governing Law.  THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, THE LOAN WAS MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE LOAN DELIVERED PURSUANT HERETO 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, THE NOTE AND THE OTHER LOAN DOCUMENTS AND THE OBLIGATIONS ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, PRIORITY, ENFORCEMENT AND/OR FORECLOSURE OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER.  TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF BORROWER AND LENDER HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS, AND THIS AGREEMENT, THE NOTE AND THE OTHER LOAN DOCUMENTS 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.
ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS WILL BE INSTITUTED IN (OR, IF PREVIOUSLY INSTITUTED, MOVED TO) ANY FEDERAL OR STATE COURT DESIGNATED BY LENDER IN THE CITY OF NEW YORK, COUNTY OF NEW YORK.  EACH OF BORROWER AND LENDER HEREBY (I) 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 (II) IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING.  BORROWER AND LENDER HEREBY ACKNOWLEDGE AND AGREE THAT THE FOREGOING AGREEMENT, WAIVER AND SUBMISSION ARE MADE PURSUANT TO SECTION 5‐1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW.  

    
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BORROWER DOES HEREBY DESIGNATE AND APPOINT:
HC Mezz 1-T, LLC
C/O NORTHSTAR REALTY FINANCE CORP. 
399 PARK AVENUE, 18TH FLOOR 
NEW YORK, NEW YORK 10022
AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK.  BORROWER (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.
Section 17.3.    Headings.  The Article and/or 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 17.4.    Severability.  Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Legal Requirements, but if any provision of this Agreement shall be prohibited by or invalid under applicable Legal Requirements, 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 17.5.    Preferences.  Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the obligations of Borrower hereunder.  To the extent Borrower makes a payment or payments to Lender, which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other party under any Creditors Rights Laws, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds received, the obligations hereunder or part thereof intended to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by Lender.
Section 17.6.    Expenses.  Borrower covenants and agrees to pay its own costs and expenses in connection with the Loan and pay, or, if Borrower fails to pay, to reimburse, Lender, upon receipt 

    
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of written notice from Lender, for Lender’s reasonable costs and expenses (including reasonable, actual attorneys’ fees and disbursements) in each case, incurred by Lender in accordance with this Agreement in connection with (i) the preparation, negotiation, execution and delivery of this Agreement, the Pledge Agreement, the Note and the other Loan Documents and the consummation of the transactions contemplated hereby and thereby and all the costs of furnishing all opinions by counsel for Borrower (including without limitation any opinions requested by Lender as to any legal matters arising under this Agreement, the Pledge Agreement, the Note and the other Loan Documents with respect to the Properties); (ii) Borrower’s ongoing performance of and compliance with Borrower’s respective agreements and covenants contained in this Agreement, the Pledge Agreement, the Note and the other Loan Documents on its part to be performed or complied with after the Closing Date, including, without limitation, confirming compliance with environmental and insurance requirements; (iii) Lender’s ongoing performance and compliance with all agreements and conditions contained in this Agreement, the Pledge Agreement, the Note and the other Loan Documents on its part to be performed or complied with after the Closing Date (including, without limitation, those contained in Articles 8 and 9 hereof); (iv) the negotiation, preparation, execution, delivery and administration of any consents, amendments, waivers or other modifications to this Agreement, the Pledge Agreement, the Note and the other Loan Documents and any other documents or matters requested by Borrower; (v) securing Borrower’s compliance with any requests made pursuant to the provisions of this Agreement; (vi) the filing and recording fees and expenses, title insurance and reasonable fees and expenses of counsel for providing to Lender all required legal opinions, and other similar expenses incurred in creating and perfecting the lien in favor of Lender pursuant to this Agreement, the Pledge Agreement, the Note and the other Loan Documents; (vii) enforcing or preserving any rights, in response to third party claims or the prosecuting or defending of any action or proceeding or other litigation, in each case against, under or affecting Borrower, this Agreement, the Pledge Agreement, the Note, the other Loan Documents, the Collateral, or any other security given for the Loan; (viii) servicing the Loan (including, without limitation, enforcing any obligations of or collecting any payments due from Borrower under this Agreement, the Pledge Agreement, the Note and the other Loan Documents or with respect to the Collateral) or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or of any insolvency or bankruptcy proceedings (with respect to Borrower, any SPE Component Entity or Guarantor); and (ix) the preparation, negotiation, execution, delivery, review, filing, recording or administration of any documentation associated with the exercise of any of Borrower’s rights hereunder and/or under the other Loan Documents regardless of whether or not any such right is consummated (including, without limitation, Borrower’s rights hereunder to defease the Loan and to permit or undertake transfers (including under Sections 6.3 and 6.4 hereof), in each case, in accordance with the applicable terms and conditions hereof); provided, however, that, with respect to each of subsections (i) though (ix) above, (A) none of the foregoing subsections shall be deemed to be mutually exclusive or limit any other subsection, (B) the same shall be deemed to (I) include, without limitation and in each case, any related appraisal costs if the Loan is a specially serviced loan, special servicing fees, liquidation fees, modification fees, work-out fees, special servicer inspection costs, operating advisor consulting fees and other similar costs or expenses payable to any Servicer, trustee, operating advisor and/or special servicer of the Loan (or any portion thereof and/or interest therein) and (II) exclude any requirement that Borrower directly pay the servicing fees due to any master servicer on account of the day to day, routine servicing of the Loan (provided, further, that the foregoing subsection (II) shall not be deemed to 

    
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otherwise limit any fees, costs, expenses or other sums required to be paid to Lender under this Section, the other terms and conditions hereof and/or of the other Loan Documents) and (C) Borrower shall not be liable for the payment of any such costs and expenses to the extent the same arise by reason of the gross negligence, illegal acts, fraud or willful misconduct of Lender.  Borrower shall also pay the first $250,000 (when aggregated with all amounts paid pursuant to the last sentence of Section 17.6 in the Mezzanine B Loan Agreement and the Mezzanine C Loan Agreement) of attorney’s fees for purchaser’s attorneys in connection with Secondary Market Transactions.
Section 17.7.    Cost of Enforcement.  In the event (a) that the Pledge Agreement is foreclosed in whole or in part, (b) of the bankruptcy, insolvency, rehabilitation or other similar proceeding in respect of Borrower, Mortgage Borrower and/or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) or Guarantor or an assignment by Borrower, Mortgage Borrower and/or any SPE Component Entity (as defined herein and in the Mortgage Loan Agreement) or Guarantor for the benefit of its creditors, or (c) Lender exercises any of its other remedies under this Agreement, the Pledge Agreement, the Note and the other Loan Documents, Borrower shall be chargeable with and agrees to pay all costs of collection and defense, including attorneys’ fees and costs, incurred by Lender or Borrower in connection therewith and in connection with any appellate proceeding or post judgment action involved therein, together with all required service or use taxes.
Section 17.8.    Schedules Incorporated.  The Schedules annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof.
Section 17.9.    Offsets, Counterclaims and Defenses.  Any assignee of Lender’s interest in and to this Agreement, the Pledge Agreement, the Note and the other Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which are unrelated to such documents which Borrower may otherwise have against any assignor of such documents, and no such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents and any such right to interpose or assert any such unrelated offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower.
Section 17.10.    No Joint Venture or Partnership; No Third Party Beneficiaries.
(a)    Borrower and Lender intend that the relationships created under this Agreement, the Pledge Agreement, the Note and the other Loan Documents be solely that of borrower and lender.  Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Collateral other than that of pledgee, beneficiary or lender.
(b)    This Agreement, the Pledge Agreement, the Note and the other Loan Documents are solely for the benefit of Lender and Borrower and nothing contained in this Agreement, the Pledge Agreement, the Note or the other Loan Documents shall be deemed to confer upon anyone other than Lender and Borrower any right to insist upon or to enforce the performance or observance of any of the obligations contained herein or therein.  All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender and no other 

    
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Person shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all thereof and no other Person shall under any circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so.
(c)    The general partners, members, principals and (if Borrower is a trust) beneficial owners of Borrower are experienced in the ownership and operation of properties similar to the Properties, and Borrower and Lender are relying solely upon such expertise and business plan in connection with the ownership and operation of the Collateral and the Property.  Borrower is not relying on Lender’s expertise, business acumen or advice in connection with the Collateral and/or the Properties (or any portion thereof).
(d)    Notwithstanding anything to the contrary contained herein, Lender is not undertaking the performance of (i) any obligations related to the Properties (or any portion thereof) (including, without limitation, under the Leases) or the Collateral; or (ii) any obligations with respect to any agreements, contracts, certificates, instruments, franchises, permits, trademarks, licenses and other documents to which any Borrower Party, the Collateral (or any portion thereof) and/or the Properties (or any portion thereof) is subject (other than the Loan Documents).
(e)    By accepting or approving anything required to be observed, performed or fulfilled or to be given to Lender pursuant to this Agreement, the Pledge Agreement, the Note or the other Loan Documents, including, without limitation, any officer’s certificate, balance sheet, statement of profit and loss or other financial statement, survey, appraisal, or insurance policy, Lender shall not be deemed to have warranted, consented to, or affirmed the sufficiency, the legality or effectiveness of same, and such acceptance or approval thereof shall not constitute any warranty or affirmation with respect thereto by Lender.
(f)    Borrower recognizes and acknowledges that in accepting this Agreement, the Note, the Pledge Agreement and the other Loan Documents, Lender is expressly and primarily relying on the truth and accuracy of the representations and warranties set forth in Article 3 of this Agreement without any obligation to investigate the Property or the Collateral and notwithstanding any investigation of the Property or the Collateral by Lender; that such reliance existed on the part of Lender prior to the date hereof, that the warranties and representations are a material inducement to Lender in making the Loan; and that Lender would not be willing to make the Loan and accept the this Agreement, the Note, the Pledge Agreement and the other Loan Documents in the absence of the warranties and representations as set forth in Article 3 of this Agreement.
Section 17.11.    Publicity.  All news releases, publicity or advertising by Borrower or its Affiliates through any media intended to reach the general public which refers to this Agreement, the Note, the Pledge Agreement or the other Loan Documents or the financing evidenced by this Agreement, the Note, the Pledge Agreement or the other Loan Documents, to Lender or any of its Affiliates shall be subject to the prior written approval of Lender, not to be unreasonably withheld.  Nothing in this Section 17.11 shall prevent Borrower or any of its Affiliates from disclosing any information in connection with any statutory reporting requirement or other Legal Requirements applicable to Borrower or any of its Affiliates.

    
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Section 17.12.    Limitation of Liability.  Notwithstanding anything to the contrary contained in this Agreement or any other Loan Document to the contrary, no claim may be made by any Person against Borrower, Guarantor, Lender, Agent, Co-Lender or their respective Affiliates, directors, officers, employees, attorneys or agents of any of such Persons for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement or any act, omission or event occurring in connection therewith; and each party hereby waives, releases and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor, other, than, with respect to Borrower and Guarantor, as expressly provided herein.
Section 17.13.    Conflict; Construction of Documents; Reliance.  In the event of any conflict between the provisions of this Agreement and the Pledge Agreement, the Note or any of the other Loan Documents, the provisions of this Agreement shall control.  The parties hereto acknowledge that they were represented by competent counsel in connection with the negotiation, drafting and execution of this Agreement, the Note, the Pledge Agreement and the other Loan Documents and this Agreement, the Note, the Pledge Agreement and the other Loan Documents shall not be subject to the principle of construing their meaning against the party which drafted same.  Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in entering into the Loan without relying in any manner on any statements, representations or recommendations of Lender or any parent, subsidiary or Affiliate of Lender.  Lender shall not be subject to any limitation whatsoever in the exercise of any rights or remedies available to it under this Agreement, the Note, the Pledge Agreement and the other Loan Documents or any other agreements or instruments which govern the Loan by virtue of the ownership by it or any parent, subsidiary or Affiliate of Lender of any equity interest any of them may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies.  Borrower acknowledges that Lender engages in the business of real estate financings and other real estate transactions and investments which may be viewed as adverse-to or competitive with the business of Borrower or its Affiliates.
Section 17.14.    Entire Agreement.  This Agreement, the Note, the Pledge Agreement and the other Loan Documents contain the entire agreement of the parties hereto and thereto in respect of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written between Borrower and Lender are superseded by the terms of this Agreement, the Note, the Pledge Agreement and the other Loan Documents.
Section 17.15.    Liability.  If Borrower consists of more than one Person, the obligations and liabilities of each such Person hereunder shall be joint and several.  This Agreement shall be binding upon and inure to the benefit of Borrower and Lender and their respective successors and assigns forever.
Section 17.16.    Duplicate Originals; Counterparts.  This Agreement may be executed in any number of duplicate originals and each duplicate original shall be deemed to be an original.  

    
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The failure of any party hereto to execute this Agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.
Section 17.17.    Brokers.  Borrower agrees (i) to pay any and all fees imposed or charged by all brokers, mortgage bankers and advisors (each a “Broker”) hired or contracted by any Borrower Party or their Affiliates in connection with the transactions contemplated by this Agreement and (ii) to indemnify and hold Lender harmless from and against any and all claims, demands and liabilities for brokerage commissions, agency fees, finder’s fees or other compensation whatsoever arising from this Agreement or the making of the Loan which may be asserted against Lender by any Person.  The foregoing indemnity shall survive the termination of this Agreement and the payment of the Debt.  Borrower hereby represents and warrants that the no Broker was engaged by any Borrower Party in connection with the transactions contemplated by this Agreement.  Lender hereby agrees to pay any and all fees imposed or charged by any Broker hired solely by Lender.  Borrower acknowledges and agrees that (a) any Broker is not an agent of Lender and has no power or authority to bind Lender, (b) Lender is not responsible for any recommendations or advice given to any Borrower Party by any Broker, (c) Lender and the Borrower Parties have dealt at arms-length with each other in connection with the Loan, (d) no fiduciary or other special relationship exists or shall be deemed or construed to exist among Lender and the Borrower Parties and (e) none of the Borrower Parties shall be entitled to rely on any assurances or waivers given, or statements made or actions taken, by any Broker which purport to bind Lender or modify or otherwise affect this Agreement or the Loan, unless Lender has, in its sole discretion, agreed in writing with any such Borrower Party to such assurances, waivers, statements, actions or modifications.  Borrower acknowledges and agrees that Lender may, in its sole discretion, pay fees or compensation to any Broker in connection with or arising out of the closing and funding of the Loan.  Such fees and compensation, if any, (i) shall be in addition to any fees which may be paid by any Borrower Party to such Broker and (ii) create a potential conflict of interest for Broker in its relationship with the Borrower Parties.  Such fees and compensation, if applicable, may include a direct, one-time payment, servicing fees and/or incentive payments based on volume and size of financings involving Lender and such Broker.
Section 17.18.    Set-Off.  In addition to any rights and remedies of Lender provided by this Agreement and by law, Lender shall have the right in its sole discretion, without prior notice to Borrower, any such notice being expressly waived by Borrower to the extent permitted by applicable law, upon any amount becoming due and payable by Borrower hereunder (whether at the stated maturity, by acceleration or otherwise), to set-off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by Lender or any Affiliate thereof to or for the credit or the account of Borrower; provided however, Lender may only exercise such right during the continuance of an Event of Default.  Lender agrees promptly to notify Borrower after any such set-off and application made by Lender; provided that the failure to give such notice shall not affect the validity of such set-off and application.

    
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Section 17.19.    Contributions and Waivers.
(a)    As a result of the transactions contemplated by this Agreement and the other Loan Documents, each Borrower will benefit, directly and indirectly, from each Borrower’s obligation to pay the Debt and perform its obligations hereunder and under the other Loan Documents (collectively, the “Obligations”) and in consideration therefore each Borrower desires to enter into an allocation and contribution agreement among themselves as set forth in this Section to allocate such benefits among themselves and to provide a fair and equitable agreement to make contributions among each of Borrowers in the event any payment is made by any individual Borrower hereunder to Lender (such payment being referred to herein as a “Contribution,” and for purposes of this Section, includes any exercise of recourse by Lender against any Collateral of a Borrower and application of proceeds of such Collateral in satisfaction of such Borrower’s obligations, to Lender under the Loan Documents).
(b)    Each Borrower shall be liable hereunder with respect to the Obligations only for such total maximum amount (if any) that would not render its Obligations hereunder or under any of the Loan Documents subject to avoidance under Section 548 of the Bankruptcy Code or any comparable provisions of applicable Legal Requirements.
(c)    In order to provide for a fair and equitable contribution among Borrowers in the event that any Contribution is made by an individual Borrower (a “Funding Borrower”), such Funding Borrower shall be entitled to a reimbursement Contribution (“Reimbursement Contribution”) from all other Borrowers for all payments, damages and expenses incurred by that Funding Borrower in discharging any of the Obligations, in the manner and to the extent set forth in this Section.
(d)    For purposes hereof, the “Benefit Amount” of any individual Borrower as of any date of determination shall be the net value of the benefits to such Borrower and its Affiliates from extensions of credit made by Lender to (i) such Borrower and (ii) to the other Borrowers hereunder and the Loan Documents to the extent such other Borrowers have guaranteed or mortgaged their property to secure the Obligations of such Borrower to Lender.
(e)    Each Borrower shall be liable to a Funding Borrower in an amount equal to the greater of (i) the (A) ratio of the Benefit Amount of such Borrower to the total amount of Obligations, multiplied by (B) the amount of Obligations paid by such Funding Borrower, or (ii) ninety-five percent (95%) of the excess of the fair saleable value of the property of such Borrower over the total liabilities of such Borrower (including the maximum amount reasonably expected to become due in respect of contingent liabilities) determined as of the date on which the payment made by a Funding Borrower is deemed made for purposes hereof (giving effect to all payments made by other Funding Borrowers as of such date in a manner to maximize the amount of such Contributions).
(f)    In the event that at any time there exists more than one Funding Borrower with respect to any Contribution (in any such case, the “Applicable Contribution”), then Reimbursement Contributions from other Borrowers pursuant hereto shall be allocated among such Funding Borrowers in proportion to the total amount of the Contribution made for or on account of the other Borrowers by each such Funding Borrower pursuant to the Applicable Contribution.  In the event 

    
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that at any time any Borrower pays an amount hereunder in excess of the amount calculated pursuant to this Section above, that Borrower shall be deemed to be a Funding Borrower to the extent of such excess and shall be entitled to a Reimbursement Contribution from the other Borrowers in accordance with the provisions of this Section.
(g)    Each Borrower acknowledges that the right to Reimbursement Contribution hereunder shall constitute an asset in favor of Borrower to which such Reimbursement Contribution is owing.
(h)    No Reimbursement Contribution payments payable by a Borrower pursuant to the terms of this Section shall be paid until all amounts then due and payable by all of Borrowers to Lender, pursuant to the terms of the Loan Documents, are paid in full in cash.  Nothing contained in this Section shall limit or affect in any way the Obligations of any Borrower to Lender under the Loan Documents.
(i)    To the extent permitted by applicable Legal Requirements, each Borrower waives:
(i)    any right to require Lender to proceed against any other Borrower or any other Person or to proceed against or exhaust any security held by Lender at any time or to pursue any other remedy in Lender’s power before proceeding against Borrower;
(ii)    any defense based upon any legal disability or other defense of any other Borrower, any guarantor of any other Person or by reason of the cessation or limitation of the liability of any other Borrower or any guarantor from any cause other than full payment of all sums payable under the Loan Documents;
(iii)    any defense based upon any lack of authority of the officers, directors, partners or agents acting or purporting to act on behalf of any other Borrower or any principal of any other Borrower or any defect in the formation of any other Borrower or any principal of any other Borrower;
(iv)    any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in any other respects more burdensome than that of a principal;
(v)    any defense based upon any failure by Lender to obtain collateral for the indebtedness or failure by Lender to perfect a lien on any collateral;
(vi)    presentment, demand, protest and notice of any kind;
(vii)    any defense based upon any failure of Lender to give notice of sale or other disposition of any collateral to any other Borrower or to any other Person or any defect in any notice that may be given in connection with any sale or disposition of any collateral;
(viii)    any defense based upon any failure of Lender to comply with applicable laws in connection with the sale or other disposition of any collateral, including any failure of Lender to conduct a commercially reasonable sale or other disposition of any collateral;

    
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(ix)    any defense based upon any use of cash collateral under Section 363 of the Bankruptcy Code;
(x)    any defense based upon any agreement or stipulation entered into by Lender with respect to the provision of adequate protection in any bankruptcy proceeding;
(xi)    any defense based upon any borrowing or any grant of a security interest under Section 364 of the Bankruptcy Code;
(xii)    any defense based upon the avoidance of any security interest in favor of Lender for any reason;
(xiii)    any defense based upon any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding, including any discharge of, or bar or stay against collecting, all or any of the obligations evidenced by the Note or owing under any of the Loan Documents;
(xiv)    any defense or benefit based upon Borrower’s, or any other party’s, resignation of the portion of any obligation secured by the Pledge Agreement to be satisfied by any payment from any other Borrower or any such party; and 
(xv)    all rights and defenses arising out of an election of remedies by Lender even though the election of remedies, such as non-judicial foreclosure with respect to security for the Loan or any other amounts owing under the Loan Documents, has destroyed Borrower’s rights of subrogation and reimbursement against any other Borrower.
(j)    Each Borrower hereby restates and makes the waivers made by Guarantor in the Guaranty for the benefit of Lender.  Such waivers are hereby incorporated by reference as if fully set forth herein (and as if applicable to each Borrower) and shall be effective for all purposes under the Loan (including, without limitation, in the event that any Borrower is deemed to be a surety or guarantor of the Debt (by virtue of each Borrower being co-obligors and jointly and severally liable hereunder, by virtue of each Borrower encumbering its interest in the Property for the benefit or debts of the other Borrowers in connection herewith or otherwise)).
Section 17.20.    Cross-Default; Cross-Collateralization.  Borrower acknowledges that Lender has made the Loan to Borrower upon the security of its collective interest in the Collateral and in reliance upon the aggregate of the Collateral taken together being of greater value as collateral security than the sum of each equity pledge taken separately.  Borrower agrees that each of the Loan Documents are and will be cross collateralized and cross defaulted with each other so that (i) an Event of Default under any of Loan Documents shall constitute an Event of Default under each of the other Loan Documents; (ii) an Event of Default hereunder shall constitute an Event of Default under the Pledge Agreement; (iii) the Pledge Agreement shall constitute security for the Note as if a single blanket lien were placed on all of the Collateral as security for the Note; and (iv) such cross collateralization shall in no event be deemed to constitute a fraudulent conveyance and Borrower waives any claims related thereto.

    
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Section 17.21.    Waiver of Rights, Defenses and Claims.  Borrower hereby unconditionally and irrevocably waives all rights, defenses and claims that Borrower may have based on the fact that certain terms and provisions of the Mortgage Loan Agreement, including without limitation certain definitions set forth in Section 1.1 of the Mortgage Loan Agreement, are incorporated into this Agreement by reference (other than rights, defenses and claims arising under such terms and conditions).
Section 17.22.    Borrower Affiliate Lender.  Lender agrees that the Lender Documents shall not prohibit or restrict Affiliates of Borrower from purchasing or otherwise acquiring and owning any direct or indirect interest in the Loan or in any of the Mezzanine Loans (or otherwise impose additional restrictions or requirements on a transfer to such Affiliate of Borrower other than restrictions or requirements on a transfer that are imposed on other purchasers of the Loan or the Mezzanine Loans), provided, however, that the Lender Documents may include restrictions on the exercise of the rights and remedies by such Affiliates of Borrower under the Loan and the Mezzanine Loans including, without limitation, (a) restrictions on any such Affiliate having the right to, or exercising, directly or indirectly, any control, decision-making power, voting rights, notice and cure rights, or other rights that would otherwise benefit a holder by virtue of its ownership or control of any interest with respect to the Loan or any Mezzanine Loan, (b) restrictions on any such Affiliate’s approval and consent rights under any intercreditor agreement, (c) limitations on such Affiliate’s initiation of enforcement actions against equity collateral, (d) limitations on the making of protective advances, (e) restrictions on such Affiliate from making or bringing any claim, in its capacity as a holder of any direct or indirect interest in the Loan or any Mezzanine Loan against Lender, any Mezzanine Lender or any agent of any of the foregoing with respect to the duties and obligations of such Person under the Loan Documents, any Mezzanine Loan Documents, any intercreditor agreement or any applicable co-lender agreement and (f) restrictions on such Affiliate's access to any electronic platform for the distribution of materials or information among the Lender and the Mezzanine Lender, “asset status reports” or any correspondence or materials or notices of or participation in any discussions, meetings or conference calls (among Lender and the Mezzanine Lenders, any of their respective co-lenders or participants, or otherwise) regarding or relating to any workout discussions or litigation or foreclosure strategy (or potential litigation strategy) involving the Loan or the Mezzanine Loans, other than in its capacity as Borrower or a Mezzanine Borrower to the extent discussions and negotiations are being conducted with Borrower or such Mezzanine Borrower (as distinct from internal discussions and negotiations among the various creditors).
Section 17.23.    Additional Provisions.  Notwithstanding anything to the contrary contained herein, Borrower hereby agrees as follows:
(a)    Borrower shall cause Mortgage Borrower to:  (i) pay all principal, interest and other sums required to be paid by Mortgage Borrower under and pursuant to the provisions of the Mortgage Loan Documents; (ii) perform and observe all of the terms, covenants and conditions of the Mortgage Loan Documents on the part of Mortgage Borrower to be performed and observed; and (iii) promptly deliver to Lender a true and complete copy of any notice by Mortgage Lender to Mortgage Borrower or Guarantor of any default by Mortgage Borrower under the Mortgage Loan Documents.

    
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(b)    Borrower agrees to notify Lender promptly upon the occurrence of any Mortgage Event of Default under the Mortgage Loan Documents.  If any Mortgage Event of Default occurs under the Mortgage Loan Documents, Borrower agrees that Lender shall have the immediate right, without prior notice to Borrower, but shall be under no obligation to (A) pay all or any part of the Mortgage Loan and any other sums that are then due and payable, and perform any act or take any action on behalf of Borrower and/or Mortgage Borrower as may be appropriate, to cause all of the terms, covenants and conditions of the Mortgage Loan Documents on the part of Mortgage Borrower to be performed or observed thereunder to be promptly performed or observed, and (B) pay any other amounts and take any other action as Lender, in its sole and absolute discretion, shall deem advisable to protect or preserve the rights and interests of Lender in the Loan and/or the Collateral, except, in each case, to the extent Borrower or Mortgage Borrower is diligently pursuing remedies to cure such default in Lender’s reasonable discretion.  Borrower shall not impede, interfere with, hinder or delay, and shall not permit Mortgage Borrower to impede, interfere with, hinder or delay, any effort or action on the part of Lender to cure any Mortgage Event of Default under the Mortgage Loan, or to otherwise protect or preserve Lender’s interests in the Loan and the Collateral following a Mortgage Event of Default under the Mortgage Loan.  In the event that Lender makes any payment in respect of the Mortgage Loan, Lender shall be subrogated to all of the rights of Mortgage Lender under the Mortgage Loan Documents against the Properties (or any portion thereof) and Mortgage Borrower in addition to all other rights Lender may have under the Loan Documents or applicable law.
(c)    Borrower hereby grants to Lender and its designees the right to enter upon the Properties (or any portion thereof) (subject to Legal Requirements and the rights of Tenants and subtenants) at any time following the occurrence and during the continuance of any Mortgage Event of Default under the Mortgage Loan Documents, for the purpose of taking any such action or to appear in, defend or bring any action or proceeding to protect Lender’s interest in the Collateral.  Lender may take such action as Lender deems reasonably necessary or desirable to carry out the intents and purposes of this Section (including communicating with Mortgage Lender with respect to any Mortgage Loan defaults), without consent from Borrower or Mortgage Borrower, but with prior reasonable notice.  Lender shall have no obligation to complete any cure or attempted cure undertaken or commenced by Lender.  All sums so paid and the costs and expenses incurred by Lender in exercising rights under this Section (including, without limitation, reasonable attorneys’ and other professional fees), with interest at the Default Rate, for the period from the date of demand by Lender to Borrower for such payments to the date of payment to Lender, shall constitute a portion of the Debt, shall be secured by the Pledge Agreement and shall be due and payable to Lender within five (5) Business Days following demand therefor.
(d)    If Lender shall receive a copy of any notice of default under the Mortgage Loan Documents sent by Mortgage Lender, such notice shall constitute full protection to Lender for any action taken or omitted to be taken by Lender, in good faith, in reliance thereon, except to the extent such action or omission is deemed to be fraudulent, gross negligence, illegal or willful misconduct.  As a material inducement to Lender’s making the Loan, Borrower hereby absolutely and unconditionally releases and waives all claims against Lender arising out of Lender's exercise of its rights and remedies provided in this Section, except for Lender’s gross negligence, fraud, illegal acts or willful misconduct.

    
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(e)    Lender shall have the right at any time to acquire all or any portion of the Mortgage Loan or any interest in any holder of, or participant in, the Mortgage Loan without notice or consent of Borrower or any other Borrower Party, in which event Lender shall have and may exercise all rights of Mortgage Lender thereunder (to the extent of its interest), including the right (i) to declare that the Mortgage Loan is in default in accordance with the terms of the Mortgage Loan Agreement and (ii) to accelerate the Mortgage Loan indebtedness, in accordance with the terms of the Mortgage Loan Agreement and (iii) to pursue all remedies against any obligor under the Mortgage Loan Documents.  In addition, Borrower hereby expressly agrees that any claims, counterclaims, defenses, offsets, deductions or reductions of any kind which Mortgage Borrower or any other Person may have against Mortgage Lender relating to or arising out of the Mortgage Loan shall be the personal obligation of Mortgage Lender, and in no event shall Mortgage Borrower be entitled to bring, pursue or raise any such claims, counterclaims, defenses, offsets, deductions or reductions against Lender or any Affiliate of Lender or any other Person as the successor holder of the Mortgage Loan or any interest therein for any causes on or prior to the date such Lender or Person acquires such interest in the Mortgage Loan, provided that Mortgage Borrower may seek specific performance of its contractual rights under the Mortgage Loan Documents.
(f)    Lender shall have the right to routinely consult with and advise Borrower’s management regarding the significant business activities and business and financial developments of Borrower.  Lender shall have the right to cause consultation meetings to occur on a regular basis (no less frequently than quarterly) with Lender having the right to call special meetings at any reasonable times and upon reasonable advance notice.
Section 17.24.    Further Additional Provisions.
(a)    Mortgage Loan Notices, Communications, and Certificates.
(i)    Promptly after receipt (but no more than five (5) Business Days after receipt), Borrower shall deliver or cause Mortgage Borrower to deliver to Lender a true, correct and complete copy of all material notices, demands, requests or material correspondence (including electronically transmitted items) received from Mortgage Lender by Mortgage Borrower or any Borrower Party under the Mortgage Loan Documents.  If Mortgage Borrower delivers to Mortgage Lender any request for consent, approval, waiver, or modification with respect to the Mortgage Loan or any matter requiring the consent of Mortgage Lender, Borrower shall concurrently deliver to Lender a true and complete copy of such request and thereafter shall keep Lender reasonably and currently informed of the status of such request.
(ii)    Unless directly delivered by Borrower to Lender, Borrower shall cause each Mortgage Borrower and Borrower Party to concurrently deliver to Lender all of the financial statements and material reports, certificates, notices, requests for consent, and related items delivered or required to be delivered by Mortgage Borrower or any other Borrower Party to Mortgage Lender under the Mortgage Loan Documents as and when due under the Mortgage Loan Documents.  Borrower certifies that any certificate delivered by Mortgage Borrower to Mortgage Lender pursuant to the Mortgage Loan Documents (including any certified financial statement or rent roll) shall be accurate and complete in all material 

    
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respects, and Lender may rely on a copy thereof as if such certificate had been certified by Borrower and delivered directly by Borrower to Lender.
(b)    Communications with Mortgage Lender.  Lender shall have the right, at any time, to communicate with Mortgage Lender regarding the Property, the Collateral, the Loan, the Mortgage Loan, or any other matter without notice to or permission from Borrower or any Borrower Party.  Such communications may include disclosure of information and reports received from any Borrower Party or Manager, and discussions relating to amending (or declining to amend) the terms of the Loan and Mortgage Loan, issuing (or declining to issue) consents under the Loan and Mortgage Loan, and enforcing (or declining to enforce) rights under the Loan and Mortgage Loan.  Lender and Mortgage Lender may enter into such communications with a view solely to the advancement and protection of their own respective interests, without any duty or obligation to any Borrower Party.  In no event shall either Lender or Mortgage Lender have any liability to Borrower or any Borrower Party on account of communications between Lender and Mortgage Lender.  Neither Lender nor Mortgage Lender shall have any obligation to disclose to Borrower or any Borrower Party the existence or contents of such communications.
(c)    Mortgage Loan Estoppels.  Borrower shall or shall cause Mortgage Borrower to from time to time, use reasonable efforts to obtain from Mortgage Lender such estoppel certificates with respect to the status of the Mortgage Loan and compliance by Mortgage Borrower with the terms of the Mortgage Loan Documents as may reasonably be requested by Lender.  In the event or to the extent that Mortgage Lender is not legally obligated to deliver such estoppel certificates and is unwilling to deliver the same, or is legally obligated to deliver such estoppel certificates but breaches such obligation, then Borrower shall not be in breach of this provision so long as Borrower furnishes to Lender estoppels executed by Borrower or Mortgage Borrower, each expressly representing to Lender the information requested by Lender regarding the status of the Mortgage Loan and the compliance by Mortgage Borrower with the terms of the Mortgage Loan Documents.  Borrower shall indemnify, defend, and hold harmless Lender from and against all Losses which may be imposed on, incurred by, or asserted against Lender based in whole or in part upon any fact, event, condition, or circumstances relating to the Mortgage Loan which was misrepresented in such estoppel certificate executed by Borrower or Mortgage Borrower.
(d)    Refinancing of Mortgage Loan.  Without obtaining the prior written consent of Lender, Borrower shall not cause or permit Mortgage Borrower to refinance the entire Mortgage Loan unless such refinancing is in an amount sufficient to repay the entire Debt and the proceeds of the refinance are so used to repay the entire Debt.
(e)    Reserved.
(f)    Modification of Mortgage Loan Documents.  Borrower shall not permit Mortgage Borrower to enter into or be bound by any new Mortgage Loan Documents after the date hereof, agree to any modifications, consolidation, restatement, or waiver of any existing Mortgage Loan Documents, grant to Mortgage Lender any consent or waiver, or exercise any remedy available to Mortgage Borrower under the Mortgage Loan Documents or any right or election under the Mortgage Loan Documents, in each case without the prior written approval of Lender.  Borrower 

    
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shall provide Lender with a copy of any amendment or modification of, or waiver or consent granted under, the Mortgage Loan Documents within five (5) days after its receipt thereof.
(g)    Deed in Lieu of Foreclosure.  Without the express prior written consent of Lender, Borrower shall not, and Borrower shall not cause, suffer or permit Mortgage Borrower to, enter into, execute, deliver, or consent to, as the case may be, any deed-in-lieu or consensual foreclosure with or for the benefit of Mortgage Lender or any of its Affiliates, successors, or designees; and delivery of a deed-in-lieu of foreclosure shall be construed as a Transfer that is not permitted hereunder.
(h)    Independent Approval Rights.  If any action, proposed action or other decision is consented to or approved by Mortgage Lender, such consent or approval shall not be binding or controlling on Lender.  Borrower acknowledges and agrees that (i) the risks of Mortgage Lender in making the Mortgage Loan are different from the risks of Lender in making the Loan, (ii) in determining whether to grant, deny, withhold or condition any requested consent or approval, Mortgage Lender and Lender may reasonably reach different conclusions, and (iii) Lender has an absolute independent right to grant, deny, withhold or condition any requested consent or approval based on its own point of view, but subject to the standards of consent set forth herein.  Furthermore, the denial by Lender of a requested consent or approval shall not create any liability or other obligation of Lender if the denial of such consent or approval results directly or indirectly in a default under the Mortgage Loan, and Borrower hereby waives any claim of liability against Lender arising from any such denial unless Lender has not complied with any applicable standard for consent.  The rights described above may be exercised by any entity which owns and controls, directly or indirectly, substantially all of the interests in Lender.
(i)    In the event Mortgage Lender has the right to approve any Extraordinary Operating Expense (as defined in the Mortgage Loan Agreement), Lender shall also have such right on the same terms.
(j)    Borrower shall not, nor shall any Borrower Party, seek the substantive consolidation of Borrower or Mortgage Borrower with any other Person in any proceeding under the Bankruptcy Code.  Borrower acknowledges, and agrees that it shall be estopped to deny, that in agreeing to make the Loan, Lender is placing substantial reliance on the separate existence of Borrower and each Borrower Party as independent economic units, separate and distinct from each other and from any other Person, each with its own separate assets, liabilities, financial condition, and business purpose.
[NO FURTHER TEXT ON THIS PAGE]

    
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their duly authorized representatives, all as of the day and year first above written.
BORROWER:
HC MEZZ 1-T, LLC 
MA OPS MB2-T, LLC 
MA OWNER MB1-T, LLC 
CCRC OPS MB2-T, LLC 
CCRC OWNER MB1-T, LLC 
GLENWOOD OPS MB2-T, LLC 
GLENWOOD OWNER MB1-T, LLC, 
each a Delaware limited liability company
		
	By:
	/s/ Jenny B. Neslin     
Name:     Jenny B. Neslin
Title:     Authorized Signatory

[Signatures continue on following page]

LENDER:
CITIGROUP GLOBAL MARKETS REALTY CORP.
		
	By:
	/s/ Tina Lin     
Name:  Tina Lin     
Title:     Authorized Signatory

[Signatures continue on following page]

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
		
	By:
	/s/ Jennifer Lewin     
Name:    Jennifer Lewin 
Title:    Vice President

[Signatures continue on following page]

BARCLAYS BANK PLC
		
	By:
	/s/ Michael Birajiclian     
Name: Michael Birajiclian     
Title:    Authorized Signatory

[Signatures continue on following page]

COLUMN FINANCIAL, INC.
		
	By:
	/s/ N. Dante La Rocca     
Name:  N. Dante La Rocca     
Title:    Authorized Signatory

[NO FURTHER TEXT ON THIS PAGE]

SCHEDULE I 
 
BORROWER/FEDERAL TAX IDENTIFICATION NUMBER/ORGANIZATIONAL IDENTIFICATION NUMBER

	
			
	Entity
	Org ID
	EIN

	Glenwood Owner MB1-T, LLC
	5634312
	47-1594153

	Glenwood OPS MB2-T, LLC
	5634314
	47-1594153

	HC Mezz 1-T, LLC
	5634291
	47-1594153

	CCRC OPS MB2-T, LLC
	5587900
	47-1594153

	CCRC Owner MB1-T, LLC
	5587879
	47-1594153

	MA OPS MB2-T,LLC
	5587873
	47-1594153

	MA Owner MB1-T,LLC
	5587854
	47-1594153

SCHEDULE II 
 
MORTGAGE BORROWERS 

1.    G&E HC REIT II Alice MOB, LLC
2.    G&E HC REIT II Athens LTACH, LLC
3.    G&E HC REIT II Austell MOB, LLC
4.    G&E HC REIT II Bastian SNF, LLC
5.    G&E HC REIT II Benton Home Health MOB, LLC
6.    G&E HC REIT II Benton Medical Plaza I & II MOB, LLC
7.    G&E HC REIT II Boynton MOB, LLC
8.    G&E HC REIT II Bryant MOB, LLC
9.    G&E HC REIT II Buckhead SNF, LLC
10.    G&E HC REIT II Cape Girardeau LTACH, LLC
11.    G&E HC REIT II Care Pavilion SNF, L.P.
12.    G&E HC REIT II Carlsbad MOB, LLC
13.    G&E HC REIT II Charlottesville SNF, LLC
14.    G&E HC REIT II Cheltenham York SNF, L.P.
15.    G&E HC REIT II Chula Vista MOB, LLC
16.    G&E HC REIT II Cliveden SNF, L.P.
17.    G&E HC REIT II Columbia LTACH, LLC
18.    G&E HC REIT II Covington SNF, LLC
19.    G&E HC REIT II El Paso MOB, LLC
20.    G&E HC REIT II Ennis MOB, LLC
21.    G&E HC REIT II Fincastle SNF, LLC
22.    G&E HC REIT II Gainesville SNF, LLC
23.    G&E HC REIT II Hardy Oak MOB, LLC
24.    G&E HC REIT II Highlands Ranch Medical Pavilion LLC
25.    G&E HC REIT II Hobbs MOB, LLC
26.    G&E HC REIT II Hope MOB, LLC
27.    G&E HC REIT II Hot Springs SNF, LLC
28.    G&E HC REIT II Jersey City MOB, LLC
29.    G&E HC REIT II Joplin LTACH, LLC
30.    G&E HC REIT II Lacombe MOB, LLC
31.    G&E HC REIT II Lafayette Rehabilitation Hospital, LLC
32.    G&E HC REIT II Lake Charles MOB, LLC
33.    G&E HC REIT II Lakewood MOB I, LLC
34.    G&E HC REIT II Lawton MOB Portfolio, LLC
35.    G&E HC REIT II Lebanon SNF, LLC
36.    G&E HC REIT II Livingston MOB, LLC
37.    G&E HC REIT II Loma Linda Pediatric Specialty Hospital, LLC
38.    G&E HC REIT II Low Moor SNF, LLC
39.    G&E HC REIT II Lufkin MOB, LLC
40.    G&E HC REIT II Maplewood Manor SNF, L.P.
41.    G&E HC REIT II Maxfield Sarasota MOB, LLC

42.    G&E HC REIT II Memphis SNF, LLC
43.    G&E HC REIT II Midlothian SNF, LLC
44.    G&E HC REIT II Millington SNF, LLC
45.    G&E HC REIT II Mobile SNF, LLC
46.    G&E HC REIT II Muskogee LTACH, LLC
47.    G&E HC REIT II Okatie MOB, LLC
48.    G&E HC REIT II Parkway Medical Center, LLC
49.    G&E HC REIT II Pocatello MOB, LLC
50.    G&E HC REIT II Rockdale SNF, LLC
51.    G&E HC REIT II Shreveport SNF, LLC
52.    G&E HC REIT II Snellville SNF, LLC
53.    G&E HC REIT II Spokane MOB, LLC
54.    G&E HC REIT II St. Anthony North Denver MOB, LLC
55.    G&E HC REIT II St. Vincent Cleveland MOB, LLC
56.    G&E HC REIT II Surgical Hospital of Humble, LLC
57.    G&E HC REIT II Sylva MOB, LLC
58.    G&E HC REIT II Tempe MOB, LLC
59.    G&E HC REIT II Tucker House SNF, L.P.
60.    G&E HC REIT II Victoria MOB, LLC
61.    G&E HC REIT II Westminster SNF, LLC
62.    G&E HC REIT II Wharton MOB, LLC
63.    G&E HC REIT II Yuma SNF, LLC
64.    G&E Healthcare REIT II Sartell MOB, LLC
65.    GA HC REIT II 1 Rykowski NY MOB, LLC
66.    GA HC REIT II 109 Rykowski NY MOB, LLC
67.    GA HC REIT II 155 Crystal Run NY MOB, LLC
68.    GA HC REIT II 300 Crystal Run NY MOB, LLC
69.    GA HC REIT II 61 Emerald NY MOB, LLC
70.    GA HC REIT II 610 East Southport Indy MOB, LLC
71.    GA HC REIT II 8205 56th Indy MOB, LLC
72.    GA HC REIT II 8220 & 8240 Naab Road MOB, LLC
73.    GA HC REIT II 8260 Naab Road MOB, LLC
74.    GA HC REIT II 8325 East Southport Indy MOB, LLC
75.    GA HC REIT II 95 Crystal Run NY MOB, LLC
76.    GA HC REIT II Abilene MOB, LLC
77.    GA HC REIT II Amarillo MOB, LLC
78.    GA HC REIT II Avon MOB, LLC
79.    GA HC REIT II Bartlett TN MOB, LLC
80.    GA HC REIT II Batavia OH MOB, LLC
81.    GA HC REIT II Bellaire Hospital, LLC
82.    GA HC REIT II Bend OR Pilot Butte SNF, LLC
83.    GA HC REIT II Bend OR Wilson Ave ALF, LLC
84.    GA HC REIT II Bend OR Wilson Ave SNF, LLC
85.    GA HC REIT II Bessemer MOB, LLC
86.    GA HC REIT II Bloomington MOB, LLC

87.    GA HC REIT II Brentwood CA MOB, LLC
88.    GA HC REIT II Brownsburg IN MOB, LLC
89.    GA HC REIT II Calumet Munster IN MOB I, LLC
90.    GA HC REIT II Calumet Munster IN MOB II, LLC
91.    GA HC REIT II Carmel Penn MOB, LLC
92.    GA HC REIT II Carmel Physicians MOB, LLC
93.    GA HC REIT II Champaign MOB, LLC
94.    GA HC REIT II Chillicothe OH MOB, LLC
95.    GA HC REIT II Columbia MOB, LLC
96.    GA HC REIT II Corvallis OR ALF, LLC
97.    GA HC REIT II Dalton ALF, LLC
98.    GA HC REIT II Dalton SNF, LLC
99.    GA HC REIT II Des Plaines Surgical Center, LLC
100.    GA HC REIT II DeSoto MOB, LLC
101.    GA HC REIT II Durham ALF, LLC
102.    GA HC REIT II Eagle Carson City MOB, LLC
103.    GA HC REIT II Eagles Landing GA MOB, LLC
104.    GA HC REIT II East LA Hospital, LLC
105.    GA HC REIT II East Tennessee MOB Portfolio, LLC
106.    GA HC REIT II Effingham ALF, LLC
107.    GA HC REIT II Escanaba MI MOB, LLC
108.    GA HC REIT II Evansville IN MOB, LLC
109.    GA HC REIT II Evergreen CCRC, LLC
110.    GA HC REIT II Evergreen TRS Sub, LLC
111.    GA HC REIT II Falls of Neuse Raleigh MOB, LLC
112.    GA HC REIT II Fayetteville ALF, LLC
113.    GA HC REIT II Fishers Medical Arts MOB, LLC
114.    GA HC REIT II Frisco MOB, LLC
115.    GA HC REIT II Fuquay-Varina ALF, LLC
116.    GA HC REIT II Gardena CA Hospital, LLC
117.    GA HC REIT II Grants Pass OR 6th Street SNF, LLC
118.    GA HC REIT II Grants Pass OR Fairview SNF, LLC
119.    GA HC REIT II Greeley Cottonwood MOB, LLC
120.    GA HC REIT II Greeley MOB, LLC
121.    GA HC REIT II Greeley Northern Colorado MOB Portfolio, LLC
122.    GA HC REIT II Greenfield MOB, LLC
123.    GA HC REIT II Greenville ALF, LLC
124.    GA HC REIT II Hazel Dell MOB, LLC
125.    GA HC REIT II Hendersonville TN MOB, LLC
126.    GA HC REIT II Hilo MOB, LLC
127.    GA HC REIT II Hinsdale MOB I, LLC
128.    GA HC REIT II Hinsdale MOB II, LLC
129.    GA HC REIT II Hope MOB, LLC
130.    GA HC REIT II Humble TX MOB, LLC
131.    GA HC REIT II Huntsville MOB, LLC

132.    GA HC REIT II Hyde Park SNF, LLC
133.    GA HC REIT II Indian Trail ALF, LLC
134.    GA HC REIT II Indiana Heart MOB, LLC
135.    GA HC REIT II Indiana Orthopedics MOB, LLC
136.    GA HC REIT II Jasper MOB I & II, LLC
137.    GA HC REIT II Jasper MOB III, LLC
138.    GA HC REIT II Johns Creek GA MOB, LLC
139.    GA HC REIT II Kennestone Marietta MOB Portfolio, LLC
140.    GA HC REIT II Keystone Medical Center MOB, LLC
141.    GA HC REIT II Killeen MOB, LLC
142.    GA HC REIT II Knightdale ALF, LLC
143.    GA HC REIT II Lacombe MOB II, LLC
144.    GA HC REIT II Lafayette MOB, LLC
145.    GA HC REIT II Las Vegas Alta Vista MOB, LLC
146.    GA HC REIT II Lemont MOB, LLC
147.    GA HC REIT II Liberty CCRC, LLC
148.    GA HC REIT II Liberty TRS Sub, LLC 
149.    GA HC REIT II Lincolnton ALF, LLC
150.    GA HC REIT II Lincolnwood CCRC, LLC
151.    GA HC REIT II Lincolnwood TRS Sub, LLC
152.    GA HC REIT II Mahomet ALF, LLC
153.    GA HC REIT II Milton SNF, LLC
154.    GA HC REIT II Mt. Zion ALF, LLC
155.    GA HC REIT II Muncie MOB, LLC
156.    GA HC REIT II Naperville MOB, LLC
157.    GA HC REIT II New Port Richey MOB, LLC
158.    GA HC REIT II Noblesville MOB, LLC
159.    GA HC REIT II North Bend WA SNF, LLC
160.    GA HC REIT II North Meridian MOB, LLC
161.    GA HC REIT II Norwalk CA Hospital, LLC
162.    GA HC REIT II Olympia WA SNF, LLC
163.    GA HC REIT II Penn St. Indianapolis MOB, LLC
164.    GA HC REIT II Pittsfield MA SNF, LLC
165.    GA HC REIT II Post Road Indy MOB I, LLC
166.    GA HC REIT II Post Road Indy MOB II, LLC
167.    GA HC REIT II Prairie Lakes MOB, LLC
168.    GA HC REIT II Prineville OR ALF, LLC
169.    GA HC REIT II Prineville OR SNF, LLC
170.    GA HC REIT II Redmond OR ALF, LLC
171.    GA HC REIT II Redmond OR SNF, LLC
172.    GA HC REIT II River Oaks Houston MOB, LLC
173.    GA HC REIT II Rockwall MOB II, LLC
174.    GA HC REIT II Rockwall MOB, LLC
175.    GA HC REIT II Rowlett MOB, LLC
176.    GA HC REIT II Royersford SNF, LLC

177.    GA HC REIT II Ruston MOB, LLC
178.    GA HC REIT II Salem OR ALF, LLC
179.    GA HC REIT II Salt Lake LTACH, LLC
180.    GA HC REIT II San Angelo MOB I, LLC
181.    GA HC REIT II San Angelo MOB II, LLC
182.    GA HC REIT II Santa Rosa Health Plaza MOB, LLC
183.    GA HC REIT II Schertz MOB, LLC
184.    GA HC REIT II Seasons CCRC, LLC
185.    GA HC REIT II Seasons TRS Sub, LLC
186.    GA HC REIT II Shelbyville MOB, LLC
187.    GA HC REIT II Shenandoah TX MOB, LLC
188.    GA HC REIT II St. Anthony North Denver MOB II, LLC
189.    GA HC REIT II St. Francis Lafayette MOB I, LLC
190.    GA HC REIT II St. Francis Lafayette MOB II, LLC
191.    GA HC REIT II St. John IN MOB, LLC
192.    GA HC REIT II St. Petersburg MOB, LLC
193.    GA HC REIT II Staunton ALF, LLC
194.    GA HC REIT II Tacoma WA SNF, LLC
195.    GA HC REIT II Temple MOB, LLC
196.    GA HC REIT II Texarkana MOB, LLC
197.    GA HC REIT II Township Line Indy MOB, LLC
198.    GA HC REIT II Treeline San Antonio MOB, LLC
199.    GA HC REIT II Urbana MOB, LLC
200.    GA HC REIT II Valparaiso Munster IN MOB, LLC
201.    GA HC REIT II Villa Rosa San Antonio MOB, LLC
202.    GA HC REIT II Warsaw MOB, LLC
203.    GA HC REIT II Watsontown SNF, LLC
204.    GA HC REIT II Wellspring CCRC, LLC
205.    GA HC REIT II Wellspring TRS Sub, LLC
206.    GA HC REIT II West Oaks MOB, LLC
207.    GA HC REIT II Winn GA MOB II, LLC
208.    GA HC REIT II Winn GA MOB Portfolio, LLC
209.    GAHCR II Dalton ALF TRS Sub, LLC 
210.    GAHCR II Dalton SNF TRS Sub, LLC
211.    GAHCR II Effingham ALF TRS Sub, LLC
212.    GAHCR II Greenville ALF TRS Sub, LLC
213.    GAHCR II Hyde Park SNF TRS Sub, LLC
214.    GAHCR II Mahomet ALF TRS Sub, LLC
215.    GAHCR II Mt. Zion ALF TRS Sub, LLC
216.    GAHCR II Pittsfield MA SNF TRS Sub, LLC
217.    GAHCR II Staunton ALF TRS Sub, LLC
218.    MA OPS MB1-T, LLC 
219.    CCRC OPS MB1-T, LLC 
220.    Glenwood OPS MB1-T, LLC

SCHEDULE VIII 
 
MEZZANINE B BORROWER

1.    HC Mezz 2-T, LLC
2.    Glenwood Owner MB2-T, LLC
3.    Glenwood OPS MB3-T, LLC
4.    MA Owner MB2-T, LLC
5.    MA OPS MB3-T, LLC
6.    CCRC Owner MB2-T, LLC
7.    CCRC OPS MB3-T, LLC

SCHEDULE IX 
 
MEZZANINE C BORROWER

1.    HC Mezz 3-T, LLC
2.    Glenwood Owner MB3-T, LLC
3.    Glenwood OPS MB4-T, LLC
4.    MA Owner MB3-T, LLC
5.    MA OPS MB4-T, LLC
6.    CCRC Owner MB3-T, LLC
7.    CCRC OPS MB4-T, LLC

EXHIBIT A 
 
Reserved

Exhibit B-1
[FORM OF] 
U.S. TAX COMPLIANCE CERTIFICATE
(For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Loan Agreement dated as of December [__], 2014 (as amended, supplemented or otherwise modified from time to time, the “Agreement”), among CITIGROUP GLOBAL MARKETS REALTY CORP., JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, BARCLAYS BANK PLC and COLUMN FINANCIAL, INC., collectively as Lender and each of the entities listed on Schedule I attached hereto, collectively as Borrower.
Pursuant to the provisions of Section 2.13 of the Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan (as well as any Note(s) evidencing such Loan) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of Domestic Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to Domestic Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished Agent and Domestic Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform Domestic Borrower and Agent, and (2) the undersigned shall have at all times furnished Domestic Borrower and Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 
Unless otherwise defined herein, terms defined in the Agreement and used herein shall have the meanings given to them in the Agreement.

	
		
	[NAME OF LENDER]

	By:   

	 
	Name:

	 
	Title:

Date: ________ __, 20[  ]

Exhibit B-2
[FORM OF] 
U.S. TAX COMPLIANCE CERTIFICATE
(For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Loan Agreement dated as of December 3, 2014 (as amended, supplemented or otherwise modified from time to time, the “Agreement”), among CITIGROUP GLOBAL MARKETS REALTY CORP., JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, BARCLAYS BANK PLC and COLUMN FINANCIAL, INC., collectively as Lender and each of the entities listed on Schedule I attached hereto, collectively as Borrower.
Pursuant to the provisions of Section 2.13 of the Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of Domestic Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation related to Domestic Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Agreement and used herein shall have the meanings given to them in the Agreement.

	
		
	[NAME OF PARTICIPANT]

	By:   

	 
	Name:

	 
	Title:

Date: ________ __, 20[  ]

EXHIBIT C-2

Exhibit B-3 
[FORM OF] 
U.S. TAX COMPLIANCE CERTIFICATE
(For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is hereby made to the Loan Agreement dated as of December 3, 2014 (as amended, supplemented or otherwise modified from time to time, the “Agreement”), among CITIGROUP GLOBAL MARKETS REALTY CORP., JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, BARCLAYS BANK PLC and COLUMN FINANCIAL, INC., collectively as Lender and each of the entities listed on Schedule I attached hereto, collectively as Borrower.
Pursuant to the provisions of Section 2.13 of the Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of Domestic Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to Domestic Borrower as described in Section 881(c)(3)(C) of the Code. 
The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Agreement and used herein shall have the meanings given to them in the Agreement.

	
		
	[NAME OF PARTICIPANT]

	By:   

	 
	Name:

	 
	Title:

Date: ________ __, 20[  ]

EXHIBIT C-3

Exhibit B-4 
[FORM OF] 
U.S. TAX COMPLIANCE CERTIFICATE
(For Non-U.S. Lenders That Are Partnerships For U.S. Federal Income Tax Purposes and Are Providing a U.S. Tax Certificate on Behalf of Their Partners)

Reference is hereby made to the Loan Agreement dated as of December 3, 2014 (as amended, supplemented or otherwise modified from time to time, the “Agreement”), among CITIGROUP GLOBAL MARKETS REALTY CORP., JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, BARCLAYS BANK PLC and COLUMN FINANCIAL, INC., collectively as Lender and each of the entities listed on Schedule I attached hereto, collectively as Borrower.
Pursuant to the provisions of Section 2.13 of the Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan (as well as any Note(s) evidencing such Loan) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan (as well as any Note(s) evidencing such Loan), (iii) with respect to the extension of credit pursuant to this Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of Domestic Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to Domestic Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished the Agent and Domestic Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform Domestic Borrower and Agent, and (2) the undersigned shall have at all times furnished Domestic Borrower and Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Agreement and used herein shall have the meanings given to them in the Agreement.
	
		
	[NAME OF LENDER]

	By:   

	 
	Name:

	 
	Title:

Date: ________ __, 20[  ]

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