Document:

Exhibit 10.54

AMENDED AND RESTATED SECURITY AGREEMENT

THIS AMENDED AND RESTATED SECURITY AGREEMENT (this “Agreement”) is entered
into as of October 1, 2006, by FS PATRIOT LLC
and FS COMMONWEALTH LLC,
each a Maryland limited liability company, jointly and severally, (the “Tenant”),
and HRES1 PROPERTIES TRUST, a
Maryland real estate investment trust (the “Secured Party”).

W  I  T  N  E
S  S  E  T  H:

WHEREAS, pursuant to a Master Lease Agreement, dated as of
March 3, 2006 (as amended to date, the “Original Lease”), the Secured
Party leased to the Tenant and the Tenant leased from the Secured Party,
certain premises as more particularly described in the Original Lease, subject
to and upon the terms and conditions set forth in the Original Lease; and

WHEREAS, the Secured Party and the Tenant are
parties to that certain Security Agreement, dated as of March 3, 2006 (the “Original
Security Agreement”), executed in connection with the Original Lease; and

WHEREAS, the Secured Party and the Tenant have
entered into that certain Amended and Restated Master Lease Agreement, dated as
of the date hereof (the “New Lease”), which amends and restates the
Original Lease in its entirety; and

WHEREAS, the Secured Party and the Tenant wish to amend and restate the Original
Security Agreement to clarify that the Tenant has agreed to grant to the
Secured Party a first and perfected lien and security interest in the
Collateral as security for the
payment and performance of each and every obligation and liability of the
Tenant to the Secured Party, whether now existing or hereafter arising, under
the New Lease or any other document or agreement executed and delivered
pursuant thereto, including, without limitation, the payment of the Rent (this
and other capitalized terms used and not otherwise defined herein having the
meanings ascribed to such terms in Section 1), and the payment and
performance of each and every other obligation of the Tenant to the Secured
Party, whether now existing or hereafter arising, whether direct or indirect,
absolute or contingent, due or to become due (collectively, the “Obligations”);

NOW, THEREFORE, in consideration of the mutual covenants herein
contained and other good and valuable consideration, the

mutual receipt and legal sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

Section 1. 
Definitions.  As used in
this Agreement, the following terms shall have the meanings specified
below.  Except as otherwise defined,
terms defined in the Uniform Commercial Code and used herein without definition
shall have the meanings given such terms in the Uniform Commercial Code.

“Affiliated
Person” shall have the meaning given such term in the New
Lease.

“Business
Day” shall have the meaning given such term in the New
Lease.

“Collateral” shall mean all of the Tenant’s right, title and
interest in and under or arising out of all and any personal property,
intangibles and fixtures of any type or description (other than Excluded
Collateral), wherever located and now existing or hereafter arising, or which
constitute or arise from the operation, maintenance or repair of the Leased
Property or any portion thereof, together with any and all additions and
accessions thereto and replacements, products, proceeds (including, without
limitation, proceeds of insurance) and supporting obligations thereof,
including, but not limited to, the following:

(a)                                  all
goods, including, without limitation, all Equipment; and

(b)                                 all
General Intangibles; and

(c)                                  all
other personal property or fixtures of any nature whatsoever which relate to
the operation, maintenance or repair of the Leased Property, or any portion
thereof, and all property from time to time described in any financing
statement signed by the Tenant naming the Secured Party as Secured Party; and

(d)                                 all
claims, rights, powers or privileges and remedies relating to the foregoing or
arising in connection therewith, including, without limitation, all Licenses
and Permits which Tenant legally may grant a security interest in, rights to
make determinations, to exercise any election (including, but not limited to,
election of remedies) or option or to give or receive any notice, consent,
waiver or approval; all liens, security, guaranties, endorsements, warranties
and indemnities and all insurance, eminent domain and 

 2
 

condemnation awards and
claims therefor relating thereto or arising in connection therewith; all rights
to property forming the subject matter of any of the foregoing, including,
without limitation, rights to stoppage in transit and rights to returned or
repossessed property; all writings relating to the foregoing or arising in
connection therewith; and

(e)                                  all
contract rights, general intangibles and other property rights of any nature
whatsoever arising out of or in connection with any of the foregoing (other
than Excluded Collateral), including, without limitation, payments due or to
become due, whether as repayments, reimbursements, contractual obligations,
indemnities, damages or otherwise.

“Equipment” shall mean all buildings, structures, improvements,
fixtures and items of machinery, equipment and other tangible personal property
which constitute, arise from or relate to the operation, maintenance or repair
of the Leased Property or any portion thereof, together with all repairs,
replacements, improvements, substitutions, extensions or renewals thereof or
additions thereto, all parts, additions and accessories incorporated therein or
affixed thereto, and all “equipment” as such term is defined in the Uniform
Commercial Code, and all cash and non-cash proceeds therefrom.

“Event
of Default” shall have the meaning given such term in Section
6.

“Excluded
Collateral” shall mean Accounts or Chattel Paper, Support Obligations, General Intangibles or
Deposit Accounts relating to such Accounts or Chattel Paper, Instruments or
Investment Property evidencing or arising from such Accounts or Chattel Paper,
any documents, books, records or other information (including, without
limitation, computer programs, tapes, discs, punch cards, data processing software
and related property and rights) maintained with respect to any of the
foregoing or any Proceeds of any of the foregoing.

“Facility”
shall have the meaning given such term in the New Lease.

“General Intangibles” shall mean all present and future general
intangibles and contract rights (other than Excluded Collateral) which
constitute, arise from or relate to the operation, maintenance or repair of the
Leased Property, or any portion thereof, including, but not limited to, all
causes of action, corporate or business records, inventions, designs, 

 3
 

patents, patent applications, trademarks, trademark
registrations and applications therefor, goodwill, trade names, trade secrets,
trade processes, copyrights, copyright registrations and applications therefor,
franchises, customer lists, computer programs, claims under guaranties, tax
refund claims, rights and claims against carriers and shippers, leases, claims
under insurance policies, all rights to indemnification and all other
intangible personal property of every kind and nature which constitutes, arises
from or relates to the operation, maintenance or repair of the Leased Property,
or any portion thereof.

“Instrument” shall have the meaning give such term in Article 9 of
the Uniform Commercial Code.

“New Lease” shall have the meaning given such term in the
preamble to this Agreement.

“Leased Property” shall have the meaning given such term
in the New Lease.

“Legal
Requirements” shall have the meaning given such term in
the New Lease.

“Licenses” shall mean all certificates of need (if any),
licenses, permits, rights of use, covenants or rights otherwise benefiting or
permitting the use and operation of each applicable Property or any part
thereof pertaining to the operation, maintenance or repair of such Property or
any portion thereof.

“Obligations” shall have the
meaning given such term in the preamble to this Agreement.

“Overdue Rate” shall have the
meaning given to such term in the New Lease.

“Permits” shall mean all permits, approvals, consents, waivers,
exemptions, variances, franchises, orders, authorizations, rights and licenses
obtained or hereafter obtained from any federal, state or other governmental
authority or agency relating to the operation, maintenance or repair, of each
applicable Property, or any portion thereof.

“Person”
shall have the meaning given such term in the New Lease.

“Property”
shall have the meaning given such term in the New Lease.

 4
 

“Rent”
shall have the meaning given such term in the New Lease.

“Tenant” shall have the meaning given
such term in the preamble to this Agreement.

“Uniform
Commercial Code” means Article 9 of the Uniform
Commercial Code as in effect in the Commonwealth of Massachusetts from time to
time.

Section 2. 
Security Interest.  As security
for the prompt payment and performance of all the Obligations, the Tenant
hereby grants, pledges, transfers and assigns to the Secured Party, its
successors and assigns and all other holders from time to time of the
Obligations, a continuing security interest under the Uniform Commercial Code
from time to time in effect in the jurisdiction in which any of the Collateral
is located in and a continuing lien upon all of the Tenant’s right, title and
interest in the Collateral, together with any and all additions thereto and
replacements, products and proceeds thereof, whether now existing or hereafter
arising or acquired and wherever located.

Section 3. 
General Representations, Warranties and  Covenants. 
The Tenant represents, warrants and covenants, which representations,
warranties and covenants shall survive execution and delivery of this
Agreement, as follows:

(a)           Each of the warranties and representations of the Tenant
contained herein, in the New Lease or in any other document executed in
connection herewith or therewith are true and correct on the date hereof.

(b)           Except for the lien granted to the Secured Party pursuant
to this Security Agreement and any liens permitted under the New Lease, the
Tenant is, and as to the Collateral acquired from time to time after the date
hereof the Tenant will be, the owner of all the Collateral free from any lien,
security interest, encumbrance or other right, title or interest of any Person,
except for the security interest of the Secured Party therein, and the Tenant
shall defend the Collateral against all claims and demands of all Persons at
any time claiming the same or any interest therein adverse to the Secured
Party.  The lien granted in this
Agreement by the Tenant to the Secured Party in the Collateral is not
prohibited by and does not constitute a default under any agreements or other
instruments constituting a part of the Collateral, and no consent is required
of any Person to effect such lien which has not been obtained.

 5
 

(c)           Except as permitted under the New Lease, there is no financing
statement (or similar statement or instrument of registration under the law of
any jurisdiction) now on file or registered in any public office covering any
interest of any kind in the Collateral, or intended so to be, which has not
been terminated, and so long as this Agreement remains in effect or any of the
Obligations or any obligations of any Affiliated Person of the Tenant to the
Secured Party remain unpaid, the Tenant will not execute and there will not be
on file in any public office any financing statement (or similar statement or
instrument of registration under the law of any jurisdiction) or  statements relating to the Collateral, except
financing statements filed or to be filed in respect of and covering the
security interest of the Secured Party.

(d)           The chief executive office and the principal place of
business of each of the Entities comprising the Tenant are as set forth in Schedule
1 and neither of such Entities will move its chief executive office or
establish any other principal place of business except to such new location as
such Entity may establish in accordance with this Section 3(d). The
location of each Facility comprising a portion of the Leased Property is as set
forth in Schedule 2.  The
originals of all documents evidencing Collateral and the only original books of
account and records of each of the Entities comprising the Tenant relating
thereto are, and will continue to be, kept at such chief executive office or
the applicable Facility, as the case may be, or at such new location as such
Entity may establish in accordance with this Section 3(d).  Neither of the Entities comprising the Tenant
shall move its chief executive office or establish any other principal place of
business until (i) such Entity shall have given to the Secured Party not less
than ten (10) days’ prior written notice of its intention to do so, which
notice shall clearly describe such new location and provide such other
information in connection therewith as the Secured Party may reasonably
request, and (ii) with respect to such new location, such Entity shall have
taken such action, satisfactory to the Secured Party (including, without
limitation, all action required by Section 5), to maintain the security
interest of the Secured Party in the Collateral.

(e)           All tangible personal property owned on the date hereof by
the Tenant to be used in connection with the operation or maintenance of the
Leased Property, or any portion thereof, is located at each applicable Property
or is in transit to such Property from the vendor thereof.  The Tenant agrees that (i) all such property
held by the Tenant on the date hereof, once at each applicable Property, shall
remain at such Property and (ii) 

 6
 

all such property
subsequently acquired by the Tenant shall immediately upon acquisition be
transferred to and remain at the applicable Property.

(f)            The corporate name and organizational identification
number of each of the Entities comprising the Tenant are as set forth on the
signature page hereto.  The name under
which each of the Facilities is operated is set forth on Schedule 2.  Neither of the Entities comprising the Tenant
shall (i) change such name without providing the Secured Party with thirty (30)
days’ prior written notice and making all filings and taking all such other
actions as the Secured Party determines are necessary or appropriate to
continue or perfect the security interest granted hereunder, (ii) change its
corporate organizational number, nor (iii) conduct its business in any other
name or take title to any Collateral in any other name while this Agreement
remains in effect.  Except as otherwise
set forth on Schedule 1, neither of the Entities comprising the Tenant
has ever had any other name nor conducted business in any other name in any
jurisdiction.  Each of the Entities
comprising the Tenant is formed as a Maryland limited liability company.  Subject to the terms and conditions of the
New Lease, neither of the Entities comprising the Tenant shall change its
organizational structure or jurisdiction of formation without giving at least
thirty (30) days’ prior written notice thereof to the Secured Party.

(g)           The Secured Party is authorized (but is under no
obligation) to make, upon ten (10) Business Days’ notice to the Tenant (except
in the case of exigent circumstances, in which circumstances upon such notice,
if any, as may then be reasonably practical), any payments which in the Secured
Party’s opinion are necessary to:

(i)                                     discharge
any liens which have or may take priority over the lien hereof; and

(ii)                                  pay
all premiums payable on the insurance policies referred to in the New Lease or
any other document or agreement executed in connection therewith or herewith,
upon the failure of the Tenant to make such payments within the time permitted
therein.

The Tenant shall have no claim against the Secured
Party by reason of its decision not to make any payments or perform such
obligations permitted under this Section 3(g).  The Tenant shall repay to the Secured Party
any sums paid by the Secured Party upon demand. 
Any sums paid and expenses incurred by the Secured 

 7
 

Party pursuant to this paragraph shall bear interest
at the Overdue Rate.

(h)           If any of the Collateral at any time becomes evidenced by
an Instrument, the Tenant shall promptly deliver such Instrument to the Secured
Party, appropriately endorsed to the order of the Secured Party, to be held
pursuant to this Agreement.

(i)            The Tenant shall not sell, transfer, change the
registration, if any, of, dispose of, attempt to dispose of, or substantially
modify or abandon the Collateral or any material part thereof, other than as
permitted under the New Lease, without the prior written consent of the Secured
Party.  Except as permitted under the New
Lease, the Tenant shall not create, incur, assume or suffer to exist any lien
upon any of the Collateral without the prior written consent of the Secured
Party.

(j)            The Tenant shall not assert against the Secured Party any
claim or defense which the Tenant may have against any seller of the Collateral
or any part thereof or against any Person with respect to the Collateral or any
part thereof.

(k)           The Tenant shall, upon demand, pay to the Secured Party
the amount of any and all reasonable expenses, including the reasonable fees
and expenses of its counsel and of any experts and agents, which the Secured
Party may incur in connection with (i) the administration of this Agreement,
(ii) the custody or  preservation of, or
the sale of, collection from, or other realization upon, any of the Collateral,
(iii) the exercise or enforcement of any of the rights of the Secured Party
hereunder and under such other agreements or (iv) the failure by the Tenant to
perform or observe any of the provisions hereof.

(l)            The Tenant shall indemnify and hold harmless the Secured
Party from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind and nature whatsoever which may be imposed on, incurred by or asserted
against the Secured Party in any way relating to or arising out of this
Agreement or arising out of the Tenant’s obligations under any other documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or the enforcement of any of the terms hereof or
of any such other documents.

 8
 

Section 4. 
Special Provisions Concerning Equipment. 
The Tenant shall not impair the rights of the Secured Party in the
Equipment.  Regardless of the manner of
the affixation of any Equipment to real property, the Equipment so attached
shall at all times constitute and remain personal property.  The Tenant retains all liability and
responsibility in connection with the Equipment and the liability of the Tenant
to pay the Obligations shall in no way be affected or diminished by reason of
the fact that such Equipment may be lost, destroyed, stolen or damaged or for
any reason whatsoever have become unavailable to the Tenant.  Upon the request of the Secured Party, the
Tenant shall provide to the Secured Party a current list of Equipment.

Section 5.  Financing
Statements; Documentary Stamp Taxes.

(a)           The Tenant shall, at its own expense, make, execute,
endorse, acknowledge, file and/or deliver to the Secured Party from time to
time such lists, descriptions and designations of inventory, warehouse
receipts, bills of lading, documents of title, vouchers, invoices, schedules,
confirmatory assignments, conveyances, financing statements, transfer
endorsements, powers of attorney, certificates, reports and other assurances or
instruments and take such further steps relating to the Collateral and other
property or rights covered by the security interest hereby granted, which the
Secured Party reasonably deems appropriate or advisable to perfect, preserve or
protect its security interest in the Collateral.  The Tenant authorizes the Secured Party to
file any such financing statements without the signature of the Tenant and the
Tenant will pay all applicable filing fees and related expenses.  To the extent permitted by law, a carbon, photographic
or other reproduction of this Agreement or a financing statement shall be
sufficient as a financing statement.

(b)           The Tenant shall procure, pay for, affix to any and all
documents and cancel any documentary tax stamps required by and in accordance
with, applicable law, and the Tenant shall indemnify and hold harmless the
Secured Party from and against any liability 
(including interest and penalties) in respect of such documentary stamp
taxes.

Section 6. 
Event of Default.  For purposes
of this Agreement, the term “Event of Default” shall mean (a) the
occurrence of an Event of Default under the New Lease or any document or
agreement executed in connection therewith; (b) the failure of the Tenant to
comply with any of its covenants or obligations under this Agreement and the
continuance thereof for a period of ten (10) Business Days after written notice
thereof; (c) any representation or warranty contained herein or made by 

 9
 

the Tenant in connection herewith shall prove to have
been false or misleading in any material respect when made; or (d) the
occurrence of any default or event of default under any document, instrument or
agreement evidencing the Obligations.

Section 7.  Remedies.

(a)           Upon the occurrence and during the continuance of an Event
of Default, in addition to any rights and remedies now or hereafter granted
under applicable law, under the New Lease or under any other documents or
agreements entered into in connection herewith or therewith, and not by way of
limitation of any such rights and remedies, the Secured Party shall have all of
the rights and remedies of a secured party under the Uniform Commercial Code as
enacted in any applicable jurisdiction, and the right, without notice to, or
assent by, the Tenant, in the name of the Tenant or, subject to any limitations
imposed by applicable Legal Requirements, in the name of the Secured Party or
otherwise:

(i)                                               with
respect to the General Intangibles to ask for, demand, collect, receive,
compound and give acquittance therefor or any part thereof, to extend the time
of payment of, compromise or settle for cash, credit or otherwise, and upon any
terms and conditions, any thereof, to exercise and enforce any rights and
remedies in respect thereof, and to file any claims, commence, maintain or discontinue
any actions, suits or other proceedings deemed by the Secured Party necessary
or advisable for the purpose of collecting or enforcing payment and performance
thereof;

(ii)                                            to
take possession of any or all of the Collateral and to use, hold, store,
operate, merge and/or control the same and to exclude the Tenant and all
Persons claiming under it wholly or partly therefrom, and, for that purpose, to
enter, with the aid and assistance of any Person or Persons and with or without
legal process, any premises where the Collateral, or any part thereof, are, or
may be, placed or assembled, and to remove any such Collateral;

(iii)                                         from
time to time, at the expense of the Tenant, to make all such repairs,
replacements, alterations, additions and improvements to and of the Collateral
as the Secured Party may 

 10
 

reasonably deem
proper; to carry on the business and to exercise all rights and powers of the
Tenant in respect to the Collateral, as the Secured Party shall deem best,
including the right to enter into any and all such agreements with respect to
the leasing, management and/or operation of the Collateral or any part thereof
as the Secured Party may see fit; to collect and receive all rents, issues,
profits, fees, revenues and other income of the same and every part thereof
which rents, issues, profits, fees, revenues and other income may be applied to
pay the expenses of holding and operating the Collateral and of conducting the
business thereof, and of all maintenance, repairs, replacements, alterations,
additions and improvements, and to make all payments which the Secured Party
may be required or may elect to make, if any, for taxes, assessments, insurance
and other charges upon the Collateral or any part thereof, and all other
payments which the Secured Party may be required or authorized to make under
any provision of this Agreement (including, without limitation, reasonable
legal costs and attorneys’ fees);

(iv)                                        to
execute any instrument and do all other things necessary and proper to protect
and preserve and realize upon the Collateral and the other rights contemplated
hereby;

(v)                                           upon
notice to such effect, to require the Tenant to deliver, at the Tenant’s
expense, any or all Collateral which is reasonably movable to the Secured Party
at a place designated by the Secured Party, and after delivery thereof the
Tenant shall have no further claim to or interest in the Collateral; and

(vi)                                        without
obligation to resort to other security, at any time and from time to time, to
sell, re-sell, assign and deliver all or any of the Collateral, in one or more
parcels at the same or different times, and all right, title and interest,
claim and demand therein and right of redemption thereof, at public or private
sale, for cash, upon credit or for future delivery, and at such price or prices
and on such terms as 

 11
 

the Secured Party
may determine, with the amounts realized from any such sale to be applied to
the Secured Obligations in the manner determined by the Secured Party.

The Tenant hereby agrees that all of the foregoing may
be effected without demand, advertisement or notice (except as hereinafter
provided or as may be required by law), all of which (except as hereinafter
provided) are hereby expressly waived, to the maximum extent permitted by law.  The Secured Party shall not be obligated to
do any of the acts hereinabove authorized and in the event that the Secured
Party elects to do any such act, the Secured Party shall not be responsible to
the Tenant.

(b)           Upon the occurrence and during the continuance of an Event
of Default, the Secured Party may take legal proceedings for the appointment of
a receiver or receivers (to which the Secured Party shall be entitled as a
matter of right) to take possession of the Collateral pending the sale thereof
pursuant either to the powers of sale granted by this Agreement or to a
judgment, order or decree made in any judicial proceeding for the foreclosure
or involving the enforcement of this Agreement. 
If, after the exercise of any or all of such rights and remedies, any of
the Obligations shall remain unpaid or unsatisfied, the Tenant shall remain
liable for any deficiency or performance thereof, as applicable.

(c)           Upon any sale of any of the Collateral, whether made under
the power of sale hereby given or under judgment, order or decree in any
judicial proceeding for the foreclosure or involving the enforcement of this
Agreement:

(i)                                               the
Secured Party may bid for and purchase the property being sold and, upon
compliance with the terms of sale, may hold, retain and possess and dispose of
such property in its own absolute right without further accountability, and
may, in paying the purchase money therefor, deliver any instruments evidencing
the Obligations or agree to the satisfaction of all or a portion of the
Obligations in lieu of cash in payment of the amount which shall be payable
thereon, and such instruments, in case the amounts so payable thereon shall be
less than the amount due thereon, shall be returned to the Secured Party after
being appropriately stamped to show partial payment;

 12
 

(ii)                                            the
Secured Party may make and deliver to the purchaser or purchasers a good and
sufficient deed, bill of sale and instrument of assignment and transfer of the
property sold;

(iii)                                         all
right, title, interest, claim and demand whatsoever, either at law or in equity
or  otherwise, of the Tenant of, in and
to the property so sold shall be divested; such sale shall be a perpetual bar
both at law and in equity against the Tenant, its successors and assigns, and
against any and all Persons claiming or who may claim the property sold or any
part thereof from, through or under the Tenant, its successors or assigns;

(iv)                                        the
receipt of the Secured Party or of the officers thereof making such sale shall
be a sufficient discharge to the purchaser or purchasers at such sale for his
or their purchase money, and such purchaser or purchasers, and his or their
assigns or personal representatives, shall not, after paying such purchase
money and receiving such receipt of the Secured Party or of such officer
therefor, be obliged to see to the application of such purchase money or be in
any way answerable for any loss, misapplication or nonapplication thereof; and

(v)                                           to
the extent that it may lawfully do so, the Tenant agrees that it will not at
any time insist upon, or plead, or in any manner whatsoever claim or take
advantage of, any appraisement, valuation, stay, extension or redemption laws,
or any law permitting it to direct the order in which the Collateral or any
part thereof shall be sold, now or at any time hereafter in force, which may
delay, prevent or otherwise affect the performance or enforcement of this
Agreement or any other document, the New Lease or any other document or
agreement entered into in connection herewith or therewith, and the Tenant
hereby expressly waives all benefit or advantage of any such laws and covenants
that it will not hinder, delay or impede the execution of any power granted or
delegated to the Secured Party in this Agreement, but will 

 13
 

suffer and permit
the execution of every such power as though no such laws were in force.

In the event of any sale of Collateral pursuant to
this Section 7, the Secured Party shall, at least ten (10) days before
such sale, give the Tenant written notice of its intention to sell, except that,
if the Secured Party shall determine in its reasonable discretion that any of
the Collateral threatens to decline in value, any such sale may be made upon
three (3) days’ written notice to the Tenant, which time periods the Tenant
hereby agrees are reasonable.

(d)  The Secured Party is hereby irrevocably
appointed the true and lawful attorney-in-fact of the Tenant in its name and
stead, to make all necessary deeds, bills of sale and instruments of assignment
and transfer of the property sold pursuant to this Section 7 and for
such other purposes as are necessary or desirable to effectuate the provisions
of this Agreement, and for that purpose it may execute and deliver all
necessary deeds, bills of sale and instruments of assignment and transfer, and
may substitute one or more Persons with like power, the Tenant hereby ratifying
and confirming all that its said attorney, or such substitute or substitutes,
shall lawfully do by virtue hereof.  If
so requested by the Secured Party or by any purchaser, the Tenant shall ratify
and confirm any such sale or transfer by executing and delivering to the
Secured Party or to such purchaser all property, deeds, bills of sale,
instruments or assignment and transfer and releases as may be designated in any
such request.

Section 8. 
Application of Moneys.  All moneys
which the Secured Party shall receive pursuant hereto shall first be
applied  (to the extent thereof) to the
payment of all reasonable costs and expenses incurred in connection with the
administration and enforcement of, or the preservation of any rights under,
this Agreement or any of without limitation, the reasonable fees and
disbursements of its counsel and agents), and the balance, if any, shall be
applied first to accrued and unpaid interest, charges and fees on, and then to
outstanding principal of, any Obligations of the Tenant (or its affiliates) to
the Secured Party, and then to any other amounts outstanding on any such
Obligations and then as required by law to any other parties having an interest
therein.

Section 9. 
Waivers, Etc.  The Tenant, on
its own behalf and on behalf of its successors and assigns, hereby waives
presentment, demand, notice, protest and, except as is otherwise specifically
provided herein, all other demands and notices in connection with this
Agreement or the enforcement of the rights 

 14
 

of the Secured Party hereunder or in connection with
any Obligations or any Collateral; waives all rights to require a marshaling of
assets by the Secured Party; consents to and waives notice of (i) the
substitution, release or surrender of any Collateral, (ii) the addition or
release of Persons primarily or secondarily liable on any Obligation or on any
Collateral, (iii) the acceptance of partial payments on any Collateral and/or
the settlement or compromise thereof, (iv) any requirement of diligence or
promptness on the part of the Secured Party in the enforcement of any rights in
respect of any Collateral or any other agreement or instrument directly or
indirectly relating thereto, and (v) any enforcement of any present or future
agreement or instrument relating directly or indirectly to the Collateral.  No delay or omission on the part of the
Secured Party or any holder of Obligations in exercising any right hereunder
shall operate as a waiver of such right or of any other right hereunder.  No waiver of any such right on any one
occasion shall be construed as a bar to or waiver of any such right on any
future occasion.  No course of dealing
between the Tenant and the Secured Party or any holder of Obligations, nor any
failure to exercise, nor any delay in exercising, on the part of the Secured
Party or any holder of Obligations, any right, power or privilege hereunder or
under any of the Obligations, shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, power or privilege hereunder or
thereunder preclude any other or further exercise thereof, or the exercise of
any other right, power or privilege.

The Tenant further waives any right it may have under the constitution
of any state or commonwealth in which any of the Collateral may be located, or
under the Constitution of the United States of America, to notice (except for
notice specifically required hereby) or to a judicial hearing prior to the
exercise of any right or remedy provided by this Agreement to the Secured
Party, and waives its rights, if any, to set aside or invalidate any sale duly
consummated in accordance with the foregoing 
provisions hereof on the grounds (if such be the case) that the sale was
consummated without a prior judicial hearing. 
THE TENANT’S WAIVERS UNDER THIS SECTION 9 HAVE BEEN MADE
VOLUNTARILY, INTELLIGENTLY AND KNOWINGLY AND AFTER THE TENANT HAS BEEN APPRISED
AND COUNSELED BY ITS ATTORNEYS AS TO THE NATURE THEREOF AND ITS POSSIBLE ALTERNATIVE
RIGHTS.

The Secured Party shall not be required to marshal any present or
future security for (including without limitation this Agreement and the
Collateral pledged hereunder), or guaranties of, the Obligations or any of
them, or to resort to such security or guaranties in any particular order; and
all of 

 15
 

the rights hereunder and in respect of such securities
and guaranties shall be cumulative and in addition to all other rights, however
existing or arising.  To the maximum
extent permitted by applicable law, the Tenant hereby agrees that it will not
invoke any law relating to the marshalling of collateral which, might cause
delay in or impede the enforcement of the Secured Party’s rights under this
Agreement or under any other instrument evidencing any of the Obligations or
under which any of the Obligations is outstanding or by which any of the
Obligations is secured or guaranteed, and, to the maximum extent permitted by
applicable law, the Tenant hereby irrevocably waives the benefits of all such
laws.

Section 10. 
Further Assurances as to Collateral; Attorney-in-Fact. 
From time to time hereafter, the Tenant will execute and deliver, or
will cause to be executed and delivered, such additional instruments,
certificates or documents (including, without limitation, financing statements,
renewal statements, mortgages, collateral assignments and other security
documents), and will take all such actions as the Secured Party may reasonably
request, for the purposes of implementing or effectuating the provisions of
this Agreement or of more fully perfecting or renewing the Secured Party’s
rights with respect to the Collateral (or with respect to any additions thereto
or replacements or proceeds thereof or with respect to any other property or
assets hereafter acquired by the Tenant which may be deemed to be a part of the
Collateral) pursuant hereto and thereto. 
The Secured Party is hereby appointed the attorney-in-fact, with full
power of substitution, of the Tenant for the purpose of carrying out the provisions
of this Agreement and taking any action, including, without limitation,
executing, delivering and filing applications, certificates, instruments and
other documents and papers with governmental authorities, and executing any
instruments, including without limitation financing or continuation statements,
deeds to secure debt, mortgages, assignments, conveyances, assignments and
transfers which are required to be taken or executed by the Tenant under this
Agreement, on its behalf and in its name which appointment is coupled with an
interest, is irrevocable and durable and shall survive the subsequent
dissolution, disability or incapacity of the Tenant.

Section 11. 
Arbitration.  The Secured
Party or the Tenant may elect to submit any dispute hereunder that has an
amount in controversy in excess of $250,000 to arbitration hereunder.  Any such dispute shall be resolved in
accordance with the Commercial Arbitration Rules of the American Association
then pertaining 

 16
 

and the decision of the
arbitrators with respect to such dispute shall be binding, final and conclusive
on the parties.

In the event the Secured Party or the Tenant shall elect to submit any
such dispute to arbitration hereunder, the Secured Party and the Tenant shall
each appoint and pay all fees of a fit and impartial person as arbitrator with
at least ten (10) years’ recent professional experience in the general subject
matter of the dispute.  Notice of such
appointment shall be sent in writing by each party to the other, and the
arbitrators so appointed, in the event of their failure to agree within thirty
(30) days after the appointment of the second arbitrator upon the matter so
submitted, shall appoint a third arbitrator. 
If either the Secured Party or the Tenant shall fail to appoint an arbitrator,
as aforesaid, for a period of twenty (20) days after written notice from the
other party to make such appointment, then the arbitrator appointed by the
party having made such appointment shall appoint a second arbitrator and the
two (2) so appointed shall, in the event of their failure to agree upon any
decision within thirty (30) days thereafter, appoint a third arbitrator.  If such arbitrators fail to agree upon a
third arbitrator within forty five (45) days after the appointment of the
second arbitrator, then such third arbitrator shall be appointed by the
American Arbitration Association from its qualified panel of arbitrators, and
shall be a person having at least ten (10) years’ recent professional
experience as to the subject matter in question.  The fees of the third arbitrator and the
expenses incident to the proceedings shall be borne equally between the Secured
Party and the Tenant, unless the arbitrators decide otherwise.  The fees of respective counsel engaged by the
parties, and the fees of expert witnesses and other witnesses called for the
parties, shall be paid by the respective party engaging such counsel or calling
or engaging such witnesses.

The decision of the arbitrators shall be rendered within thirty (30)
days after appointment of the third arbitrator. 
Such decision shall be in writing and in duplicate, one counterpart
thereof to be delivered to the Secured Party and one to the Tenant.  A judgment of a court of competent
jurisdiction may be entered upon the award of the arbitrators in accordance
with the rules and statutes applicable thereto then obtaining.

Section 12.  Miscellaneous.

(a)           The Tenant agrees that its obligations and the rights of
the Secured Party hereunder and in respect of the Obligations may be enforced
by specific performance hereof and thereof and by temporary, preliminary and/or
final injunctive 

 17
 

relief
relating hereto and thereto, without necessity for proof by the Secured Party
or any holder of the Obligations that it would otherwise suffer irreparable harm,
and the Tenant hereby consents to the issuance of such specific and injunctive
relief.

(b)           Any notice or demand upon the Tenant or the Secured Party
shall be deemed to have been sufficiently given when given in accordance with
the provisions of the New Lease.

(c)           None of the terms and conditions of this Agreement may be
changed, waived, modified or varied in any manner whatsoever unless in writing
duly signed by the Tenant and the Secured 
Party.  No notice to or demand on
the Tenant in any case shall entitle the Tenant to any other or further notice
or demand in similar or other circumstances or constitute a waiver of any of
the rights of the Secured Party to any other or further action in any
circumstances without notice or demand.

(d)           The obligations of the Tenant hereunder shall remain in
full force and effect without regard to, and shall not be impaired by, (i) any
bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or the like of any of the Entities comprising the Tenant; (ii) any
exercise or non-exercise, or any waiver of, any right, remedy, power or
privilege under or in respect of this Agreement, the New Lease or any document
or agreement executed in connection herewith or therewith, the Obligations or any
security for any of the Obligations; or (iii) any amendment to or modification
of any of the New Lease or any document or agreement executed in connection
herewith or therewith, the Obligations or any security for any of the
Obligations; whether or not the Tenant shall have notice or knowledge of any of
the foregoing.  The rights and remedies
of the Secured Party herein provided for are cumulative and not exclusive of
any rights or remedies which the Secured Party would otherwise have, including,
without limitation, under the New Lease or any document or agreement executed
in connection herewith or therewith. 
This Agreement is intended as a supplement for and is not intended to
supersede in any respect the New Lease or any document or agreement executed in
connection herewith or therewith.  Each
Entity comprising Tenant hereunder shall be jointly and severally liable for
the payment and performance of each and every obligation and liability of the
Tenant hereunder.

(e)           This Agreement shall be binding upon the Tenant and its
successors and assigns and shall inure to the benefit of the Secured Party, and
its respective successors and assigns. 
All agreements, representations and warranties made herein shall survive
the execution and delivery of this Agreement.

 18
 

(f)            The descriptive headings of the several sections of this
Agreement are inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Agreement.

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

(h)           This Agreement shall be interpreted, construed, applied
and enforced in accordance with the laws of The Commonwealth of Massachusetts
applicable to contracts between residents of Massachusetts which are to be
performed entirely within Massachusetts, regardless of (i) where this Agreement
is executed or delivered; or (ii) where any payment or other performance
required by this Agreement is made or required to be made; or (iii) where any
breach of any provision of this Agreement occurs, or any cause of action
otherwise accrues; or (iv) where any action or other proceeding is instituted
or pending; or (v) the nationality, citizenship, domicile, principle place of business,
or jurisdiction of organization or domestication of any party; or (vi) whether
the laws of the forum jurisdiction otherwise would apply the laws of a
jurisdiction other than the Commonwealth of Massachusetts; or (vii) any
combination of the foregoing. 
Notwithstanding the foregoing, to the extent that matters of title, or
creation, perfection and priority of the security interests created hereby, or
procedural issues of foreclosures are required to be governed by the laws of
the state in which the Collateral, or relevant part thereof, is located, the
laws of such State shall apply.

Section 13. 
Nonliability of Trustees.  THE
DECLARATION OF TRUST ESTABLISHING THE SECURED PARTY, A COPY OF WHICH, TOGETHER
WITH ALL AMENDMENTS THERETO (THE “DECLARATION”), IS DULY FILED WITH THE
DEPARTMENT OF ASSESSMENTS AND TAXATION OF THE STATE OF MARYLAND, PROVIDES THAT
THE NAME “HRES1 PROPERTIES TRUST,” REFERS TO THE TRUSTEES UNDER THE DECLARATION
COLLECTIVELY AS TRUSTEES, BUT NOT INDIVIDUALLY OR PERSONALLY, AND THAT NO TRUSTEE,
OFFICER, SHAREHOLDER, EMPLOYEE OR AGENT OF THE SECURED PARTY SHALL BE HELD TO
ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY OBLIGATION OF OR CLAIM
AGAINST, THE SECURED PARTY.  ALL PERSONS
DEALING WITH THE SECURED PARTY, IN ANY WAY, 

 19
 

SHALL LOOK ONLY TO THE ASSETS OF THE SECURED PARTY FOR
THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF ANY OBLIGATION.

[Remainder of page
intentionally left blank.]

 20

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed under seal as of the date first above written.

	
  

  	
  

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FS PATRIOT LLC,

  	
   

  
	
   

  	
   

  	
  a Maryland limited liability 

  company

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Evrett W. Benton

  	
   

  
	
   

  	
   

  	
  By: Evrett W. Benton

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FS COMMONWEALTH LLC,

  	
   

  
	
   

  	
   

  	
  a Maryland limited liability company

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Evrett W. Benton

  	
   

  
	
   

  	
   

  	
  By: Evrett W.
  Benton

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECURED PARTY:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HRES1 PROPERTIES TRUST

  	
   

  
	
   

  	
   

  	
  a Maryland real estate investment trust

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ David J. Hegarty

  	
   

  
	
   

  	
   

  	
  By: David J.
  Hegarty

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  
					

 

The
following schedules have been omitted and will be supplementally furnished to
the Securities and Exchange Commission upon request:

Schedule 1

Schedule
2

 2Exhibit 10.55

AMENDED AND RESTATED PLEDGE AGREEMENT

THIS AMENDED AND RESTATED PLEDGE AGREEMENT (this “Agreement”) is entered into
as of October 1, 2006 by FSQ, INC.,
a Delaware corporation (the “Pledgor”), for the benefit of HRES1 PROPERTIES TRUST, a Maryland real
estate investment trust (together with its respective successors and assigns,
the “Secured Party”).

W  I  T  N  E
S  S  E  T  H:

WHEREAS, pursuant to a Master Lease Agreement, dated as of
March 3, 2006 (as amended to date, the “Original Lease”), the Secured
Party leased to FS PATRIOT LLC and FS COMMONWEALTH LLC, each a Maryland limited
liability company, jointly and severally (the “Tenant”) certain premises
as more particularly described in the Original Lease, subject to and upon the
terms and conditions set forth in the Original Lease; and

WHEREAS, the Pledgor and the Secured Party are
parties to that certain Pledge Agreement, dated as of March 3, 2006 (the “Original
Pledge Agreement”), executed in connection with the Original Lease; and

WHEREAS, the Secured Party and the Tenant have
entered into that certain Amended and Restated Master Lease Agreement, dated as
of the date hereof (the “New Lease”), which amends and restates the
Original Lease in its entirety; and

WHEREAS, pursuant to an Amended and Restated Guaranty
Agreement, dated as of the date hereof (the “New Guaranty”), Five Star
Quality Care, Inc., a Maryland corporation, being Pledgor’s parent (the “Guarantor”),
guaranteed to the Secured Party the payment and performance of all of the
obligations of the Tenant to the Secured Party with respect to the New Lease
and other related documents, subject to and upon the terms and conditions set
forth therein; and

WHEREAS, the New Lease provides that any assignment or
transfer of the Tenant’s interest under the New Lease shall be subject to such
assignee’s or transferee’s delivery to the Secured Party of a pledge of all of
the stock, partnership, membership or other ownership interests of such
assignee or other transferee, which pledge shall be in form and substance
satisfactory to Landlord in its sole discretion; and

WHEREAS, the Pledgor and the Secured Party wish to amend and restate the Original Pledge
Agreement in its entirety;

NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the mutual receipt and legal sufficiency of which
are hereby acknowledged, and in accordance with the provisions of the New
Lease, the Pledgor hereby agrees as follows:

Section 1. 
Certain Terms.  Capitalized
terms used and not otherwise defined in this Agreement shall have the meanings
ascribed to such terms in the New Lease. 
The New Lease, the New Guaranty and the other Incidental Documents are
herein collectively referred to as the “Transaction Documents”.

Section 2. 
Pledge.  The Pledgor hereby pledges to the Secured
Party all of the membership interests in each of the Entities comprising Tenant
(the “Pledged Interests”) and all other shares of stock, shares of
beneficial interest, membership interests or other ownership interests in each
of the Entities comprising Tenant in which the Pledgor may have rights from
time to time and any other securities or other investment property and other
collateral of the Pledgor now owned or hereafter acquired which under this
Agreement are required to be pledged to the Secured Party, and in each case,
all certificates representing such Pledged Interests or other investment
property or collateral, and all rights, options, warrants, stock or other
securities or other property which may hereafter be received, receivable or
distributed in respect of the Pledged Interests, together with all proceeds of
the foregoing, including, without limitation, all dividends, cash, notes,
securities or other property from time to time acquired, receivable or
otherwise distributed in respect of, or in exchange for, the foregoing, (the
Pledged Interests and any additional securities or collateral pledged
hereunder, collectively, the “Pledged Collateral”), and the Pledgor
hereby grants to the Secured Party a security interest in all of the Pledged
Collateral and the proceeds thereof as security for the due and punctual
payment and performance of the Secured Obligations (as hereinafter defined).

Pledgor’s membership interests in the Tenant are not evidenced by any
certificates or other instruments.  If in
the future Pledgor possesses or controls any certificates or other instruments
representing the Pledged Collateral, Pledgor shall immediately and without
notice deliver the same to the Secured Party together with undated stock powers
endorsed in blank, as security for the payment and performance of all of the
Secured Obligations.

 2
 

Section 3. 
Secured Obligations.  For purposes
of this Agreement, the term “Secured Obligations” shall mean the payment
and performance of each and every obligation of the Tenant and the Guarantor
under the Transaction Documents or relating thereto, whether now existing or
hereafter arising, and including, without limitation, the payment of the full
amount of the Rent payable under the New Lease.

Section 4. 
Representations of the Pledgor.  Pledgor
covenants that the Pledged Interests are duly and validly pledged to the
Secured Party in accordance with law and Pledgor shall warrant and defend the
Secured Party’s right, title and security interest in and to the Pledged
Interests against the claims and demands of all persons whomsoever. Pledgor
represents and warrants to the Secured Party that Pledgor has good and
marketable title to all the Pledged Interests pledged by it hereunder, free and
clear of all claims, mortgages, pledges, liens, security interests and other
encumbrances of every nature whatsoever; that the Pledged Interests are not
subject to any restriction on transfer contained in the Certificates of
Formation, Limited Liability Company Agreements or any other charter documents
of any of the Entities comprising the Tenant or in any agreement or instrument
to which any of the Entities comprising the Tenant or Pledgor is a party or by
which any of the Entities comprising the Tenant or Pledgor is bound which would
prohibit or restrict the pledge of the Pledged Interests hereunder or the
disposition thereof upon default hereunder; that all of the Pledged Interests
have been duly and validly issued and are fully paid for and nonassessable; and
that the Pledged Interests constitute all of the presently issued and
outstanding shares of the membership interests of each of the Entities
comprising the Tenant.

Section 5. 
Covenants of the Pledgor.  Pledgor
hereby covenants and agrees that it shall not sell, convey or otherwise dispose
of any of the Pledged Collateral nor create, incur or permit to exist any
pledge, mortgage, lien, charge, encumbrance or any security interest whatsoever
with respect to any of the Pledged Collateral or the proceeds thereof, other
than the liens on and security interests in the Pledged Collateral created
hereby.  Pledgor further covenants and
agrees that it shall not consent to or approve the admission of any new member
in either of the Entities comprising the Tenant.  Pledgor further covenants and agrees that,
until the Secured Obligations are paid in full, Pledgor shall not change the
state of its organization or its name without providing the Secured Party with
thirty (30) days’ prior written notice and making all filings and taking all
such other actions as the Secured Party

 3
 

determines are necessary or appropriate to continue or
perfect the security interest granted hereunder.

Section 6. 
Filing of Financing Statements, Etc. 
Pledgor authorizes the Secured Party to file from time to time one or
more financing statements describing the Pledged Collateral. Pledgor will
cooperate with the Secured Party at its request from time to time in obtaining
control agreements in form and substance reasonably satisfactory to the Secured
Party with respect to any collateral investment property, deposit accounts, or
other Pledged Collateral as to which the Secured Party determines such
agreements are necessary or appropriate to perfect the security interest
granted hereunder.

Section 7. 
Distributions, Etc.  Upon the
dissolution, winding up, liquidation or reorganization of any Entity comprising
Tenant, whether in bankruptcy, insolvency or receivership proceedings or upon
an assignment for the benefit of creditors or any other marshalling of the
assets and liabilities of any Entity comprising Tenant, if any sum shall be
paid or any property shall be distributed upon or with respect to any of the
Pledged Collateral, such sum shall be paid over to the Secured Party, to be
held as collateral security for the Secured Obligations.  If any dividend shall be declared on any of
the Pledged Collateral (excluding cash dividends), or any share of beneficial
interest or fraction thereof shall be issued pursuant to any split of
beneficial interests involving any of the Pledged Collateral, or any
distribution of capital shall be made on any of the Pledged Collateral, or any
property shall be distributed upon or with respect to the Pledged Collateral
pursuant to recapitalization or reclassification of the capital of any Entity
comprising Tenant, the shares or other property so distributed shall be
delivered to the Secured Party to be held as collateral security for the
Secured Obligations.

Section 8. 
Event of Default.  For purposes
of this Agreement, the term “Event of Default” shall mean (a) the
occurrence of an Event of Default under the Transaction Documents; (b) the
failure of the Guarantor to comply with any of its covenants or obligations
under the New Guaranty and the continuation thereof for a period of ten (10)
Business Days after written notice thereof; (c) the failure of Pledgor to
comply with any of its covenants or obligations under this Agreement and the
continuation thereof for a period of ten (10) Business Days after written
notice thereof; or (d) any representation or warranty contained herein or made
by Pledgor in connection herewith shall prove to have been false or misleading
in any material respect when made.

 4
 

Section 9. 
Remedies.  (a)
Upon the occurrence and during the continuance of an Event of Default, the
Secured Party may cause all or any of the Pledged Collateral to be transferred
into its name or into the name of its nominee or nominees, subject to the
provisions of the Uniform Commercial Code or other applicable law.

(b)           Upon
the occurrence and during the continuance of an Event of Default, the Secured
Party shall be entitled to exercise the voting power with respect to the
Pledged Collateral, to receive and retain, as collateral security for the
Secured Obligations, any and all dividends or other distributions at any time
and from time to time declared or made upon any of the Pledged Collateral, and
to exercise any and all such rights of payment, conversion, exchange,
subscription or any other rights, privileges or options pertaining to the
Pledged Collateral as if it were the absolute owner thereof, including, without
limitation, all such rights under the Certificates of Formation, Limited
Liability Company Agreements or any other charter documents of any Entity
comprising Tenant, and further including, without limitation, the right to
exchange, at its discretion, any and all of the Pledged Collateral upon the
merger, consolidation, reorganization, recapitalization or other readjustment
of such Entity, upon the exercise of any such right, privilege or option
pertaining to the Pledged Collateral, and in connection therewith, to deposit
and deliver any and all of the Pledged Collateral with any committee,
depositary, transfer agent, registrar or other designated agency upon such
terms and conditions as the Secured Party may determine.

(c)           Upon
the occurrence and during the continuance of an Event of Default, the Secured
Party shall have all of the rights and remedies of a secured party under the
Uniform Commercial Code or other applicable law and shall have the right to
sell, resell, assign and deliver all or any of the Pledged Collateral in one or
more parcels at any exchange or broker’s board or at public or private
sale.  The Secured Party shall give
Pledgor at least ten (10) days’ prior written notice of the time and place of
any public sale thereof or of the time after which any private sale or any
other intended disposition thereof is to be made.  Any such notice shall be deemed to meet any
requirement hereunder or under any applicable law (including the Uniform
Commercial Code) that reasonable notification be given of the time and place of
such sale or other disposition.  Such
notice may be given without any demand of performance or other demand, all such
demands being hereby expressly waived by the Pledgor to the extent permitted by
applicable law.  All such sales shall be

 5
 

at such commercially reasonable price or prices as the
Secured Party shall deem best and either for cash or on credit or for future
delivery (without assuming any responsibility for credit risk).  At any such sale or sales, the Secured Party
may purchase any or all of the Pledged Collateral to be sold thereat upon such
terms as the Secured Party may deem best. 
Upon any such sale or sales, the Pledged Collateral so purchased shall
be held by the purchaser absolutely free from any claims or rights of any kind
or nature of the Pledgor, including any equity of redemption and any similar
rights, all such equity of redemption and any similar rights being hereby
expressly waived and released by the Pledgor to the extent permitted by
applicable law.  In the event any
consent, approval or authorization of any governmental agency will be necessary
to effectuate any such sale or sales, the Pledgor shall execute, and hereby
agrees to cause the applicable Entity comprising Tenant to execute, all such
applications or other instruments as may be required.  The proceeds of any such sale or sales,
together with any other additional collateral security at the time received and
held hereunder, shall be received and applied: 
first, to the payment of all costs and expenses of such sale,
including attorneys’ fees; and second, to the payment of the Secured
Obligations in such order of priority as the Secured Party shall reasonably
determine; and any surplus thereafter remaining shall be paid to the Pledgor or
to whomever may be legally entitled thereto (including, if applicable, any
subordinated creditor of Pledgor).

Pledgor recognizes that the Secured Party may be unable to effect a
public sale of all or a part of the Pledged Collateral by reason of certain
prohibitions contained in the Securities Act of 1933, and may be compelled to
resort to one or more private sales to a restricted group of purchasers who
will be obliged to agree, among other things, to acquire such Pledged
Collateral for their own accounts, for investment and not with a view to the
distribution or resale thereof.  Pledgor
agrees that private sales so made may be at prices and upon other terms less
favorable to the seller than if such Pledged Collateral were sold at public
sales, and that the Secured Party shall have no obligation to delay sale of any
such Pledged Collateral for the period of time necessary to permit such Pledged
Collateral to be registered for public sale under the Securities Act of 1933.
Pledgor agrees that private sales made under the foregoing circumstances may be
deemed to have been made in a commercially reasonable manner.  Nothing herein shall be deemed to require the
Pledgor to effect a registration of the Pledged Collateral under the Securities
Act of 1933.

 6
 

(d)           Upon
the occurrence and during the continuance of any Event of Default, the Secured
Party, in its discretion, may demand, sue for and/or collect any money or
property at any time due, payable or receivable, to which it may be entitled
hereunder, on account of or in exchange for any of the Pledged Collateral.  Upon the occurrence and during the
continuance of any Event of Default, the Secured Party shall further have the
right, for and in the name, place and stead of Pledgor, to execute
endorsements, assignments, or other instruments of conveyance or transfer with
respect to all or any of the Pledged Collateral.

(e)           The
Secured Party shall not be obligated to do any of the acts hereinabove
authorized and in the event that the Secured Party elects to do any such act,
the Secured Party shall not be responsible to Pledgor, other than for
negligence or willful misconduct.

(f)            The Secured Party
shall have no obligation to marshal any assets in favor of Pledgor, or against
or in payment of the Secured Obligations or any other obligation owed to the
Secured Party by Pledgor or any other person.

Section 10. 
Rights of Secured Party.  No course of
dealing between Pledgor and the Secured Party nor any failure to exercise, nor
any delay in exercising, on the part of the Secured Party, any right, power or
privilege hereunder or under any of the Secured Obligations, shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, power or
privilege hereunder or thereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.  The rights and remedies herein provided and
provided under any of the Secured Obligations are cumulative and are in addition
to, and not exclusive of, any rights or remedies provided by law, including,
without limitation, the rights and remedies of a Secured Party under the
Uniform Commercial Code.

Section 11. 
Assignment, Etc.  No waiver by
the Secured Party or by any other holder of Secured Obligations of any default
shall be effective unless in writing nor operate as a waiver of any other
default or of the same default on a future occasion.  In the event of a sale or assignment by the
Secured Party of its interests under the Transaction Documents, the Secured
Party may assign or transfer its rights and interests under this Agreement in
whole or in part to the purchaser or assignee of such interests, whereupon such
purchaser or purchasers shall become vested with all of the powers and rights
given to the Secured Party hereunder, and the Secured Party

 7
 

shall thereafter be forever released and fully
discharged from any liability or responsibility thereafter arising hereunder
with respect to the rights and interests so assigned.

Section 12. 
Duty of Secured Party.  Beyond the
exercise of reasonable care to assure the safe custody of the Pledged
Collateral while held hereunder, the Secured Party shall have no duty or
liability to collect any sums due in respect thereof or to protect or preserve
rights pertaining thereto, and shall be relieved of all responsibility for the
Pledged Collateral upon surrendering the same to Pledgor.

Section 13. 
Waivers, Etc.  To the extent
permitted by applicable law, Pledgor, on its own behalf and on behalf of its
successors and assigns, hereby waives presentment, demand, payment, notice of
dishonor, protest and, except as otherwise provided herein, all other demands
and notices in connection with this Agreement or the enforcement of the rights
of the Secured Party hereunder or in connection with any Secured
Obligations.  The Secured Party may
release, supersede, exchange or modify any collateral security it may from time
to time hold and release, surrender or modify the liability of any third party
without giving notice hereunder to Pledgor. 
The Secured Party shall be under no duty to exhaust its rights against
any such collateral security or any such third party before realizing on the
Pledged Collateral.  Such modifications,
changes, renewals, releases or other actions shall in no way affect Pledgor’s
obligations hereunder.

Pledgor further waives any right it may have under the Constitution of
the Commonwealth of Massachusetts (or under the constitution of any other state
in which the any of the Pledged Collateral may be located), or under the
Constitution of the United States of America, to notice (except for notice
specifically required hereby) or to a judicial hearing prior to the exercise of
any right or remedy provided by this Agreement to the Secured Party, and waives
its rights, if any, to set aside or invalidate any sale duly consummated in
accordance with the foregoing provisions hereof on the grounds (if such be the
case) that the sale was consummated without a prior judicial hearing. PLEDGOR’S
WAIVERS UNDER THIS SECTION 13 HAVE BEEN MADE VOLUNTARILY, INTELLIGENTLY
AND KNOWINGLY AND AFTER THE PLEDGOR HAS BEEN APPRISED AND COUNSELED BY ITS
ATTORNEYS AS TO THE NATURE THEREOF AND ITS POSSIBLE ALTERNATIVE RIGHTS.

Section 14. 
Further Assurances as to Collateral; Attorney-in-Fact. 
From time to time hereafter, Pledgor shall execute and deliver, or will
cause to be executed and delivered, such 

 8
 

additional instruments, certificates or documents
(including, without limitation, financing statements, renewal statements,
collateral assignments and other security documents), and shall take all such
actions, as the Secured Party may reasonably request, for the purposes of
implementing or effectuating the provisions of this Agreement or of more fully
perfecting or renewing the Secured Party’s rights with respect to the Pledged
Collateral (or with respect to any additions thereto or replacements or
proceeds thereof or with respect to any other property or assets hereafter
acquired by the Pledgor which may be deemed to be a part of the Pledged
Collateral) pursuant hereto and thereto. 
The Secured Party is hereby appointed the attorney-in-fact, with full
power of substitution, of Pledgor for the purpose of carrying out the
provisions of this Agreement and taking any action, including, without
limitation, executing, delivering and filing applications, certificates,
instruments and other documents and papers with governmental authorities, and
executing any instruments, including without limitation, assignments, conveyances
and transfers which are required to be taken or executed by Pledgor under this
Agreement, on its behalf and in its name which appointment is coupled with an
interest, is irrevocable and durable and shall survive the subsequent
dissolution, disability or incapacity of the Pledgor.

Section 15. 
Notices.  (a)
Any and all notices, demands, consents, approvals, offers, elections and other
communications required or permitted under this Agreement shall be deemed
adequately given if in writing and the same shall be delivered either in hand,
by telecopier with electronic confirmation of receipt, or by mail or Federal
Express or similar expedited commercial carrier, addressed to the recipient of
the notice, postpaid and registered or certified with return receipt requested
(if by mail), or with all freight charges prepaid (if by Federal Express or
similar carrier).

(b)           All notices required or permitted to be
sent hereunder shall be deemed to have been given for all purposes of this
Agreement upon the date of electronic confirmation of receipt, in the case of a
notice by telecopier, and, in all other cases, upon the date of receipt or
refusal, except that whenever under this Agreement a notice is either received
on a day which is not a Business Day or is required to be delivered on or
before a specific day which is not a Business Day, the day of receipt or
required delivery shall automatically be extended to the next Business Day.

 9
 

(c)           All such notices shall be addressed,

	
   

  	
  if to the Secured Party to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c/o HRES1
  Properties Trust400 Centre Street

  	
   

  
	
   

  	
   

  	
  Newton,
  Massachusetts 02458

  	
   

  
	
   

  	
   

  	
  Attn: President

  	
   

  
	
   

  	
   

  	
  [Telecopier No.
  (617) 796-8349]

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  if to Pledgor
  to:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  c/o FSQ, INC.

  	
   

  
	
   

  	
   

  	
  400 Centre
  Street

  	
   

  
	
   

  	
   

  	
  Newton,
  Massachusetts 02458

  	
   

  
	
   

  	
   

  	
  Attn: President

  	
   

  
	
   

  	
   

  	
  [Telecopier No.
  (617) 796-8385]

  	
   

  

(d)           By notice given as herein provided, the parties hereto
and their respective successors and assigns shall have the right from time to
time and at any time during the term of this Agreement to change their
respective addresses effective upon receipt by the other parties of such notice
and each shall have the right to specify as its address any other address
within the United States of America or to such other address as the party to
whom such notice is directed may have designated in writing to the other
parties hereto.

Section 16. 
Successors and Assigns.  This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, and the term “Secured Party” shall
be deemed to include any other holder or holders of any of the Secured
Obligations.  Where the context so
permits or requires, terms defined herein in the singular number shall include
the plural, and in the plural number, the singular.  This Agreement may be executed in any number
of counterparts and by the different parties on separate counterparts, each of
which, when so executed and delivered, shall be an original and all of which
shall together constitute one and the same agreement.

Section 17. 
Reinstatement.  This
Agreement shall continue to be effective, or be reinstated, as the case may be,
if at any time any amount received by the Secured Party in respect of the
Pledged Collateral is rescinded or must otherwise be restored or returned by
the Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of Pledgor or upon the appointment of any intervenor or
conservator of, or trustee

 10
 

or similar official for the Pledgor or any substantial
part of its or property, or otherwise, all as though such payments had not been
made.

Section 18. 
Restrictions on Transfer.  To the extent
that any restrictions imposed by the Certificates of Formation, Limited
Liability Company Agreements or any other charter documents of any Entity
comprising Tenant or any other document or instrument would in any way affect
or impair the pledge of the Pledged Collateral hereunder or the exercise by the
Secured Party of any right granted hereunder including, without limitation, the
right of the Secured Party to dispose of the Pledged Collateral upon the
occurrence of any Event of Default, Pledgor hereby waives such restrictions,
and Pledgor hereby agrees that it will take any action which the Secured Party
may reasonably request in order that the Secured Party may obtain and enjoy the
full rights and benefits granted to the Secured Party by this Agreement free of
any such restrictions.

Section 19. 
Applicable Law.  This
Agreement and any other instruments executed and delivered to evidence,
complete or perfect the transactions contemplated hereby and thereby shall be
interpreted, construed, applied and enforced in accordance with the laws of the
Commonwealth of Massachusetts applicable to contracts between residents of
Massachusetts which are to be performed entirely within Massachusetts
regardless of (i) where any such instrument is executed or delivered; or (ii)
where any payment or other performance required by any such instrument is made
or required to be made; or (iii) where any breach of any provision of any such
instrument occurs, or any cause of action otherwise accrues; or (iv) where any
action or other proceeding is instituted or pending; or (v) the nationality,
citizenship, domicile, principal place of business, or jurisdiction of
organization or domestication of any party; or (vi) whether the laws of the
forum jurisdiction otherwise would apply the laws of a jurisdiction other than
the Commonwealth of Massachusetts; or (vii) any combination of the foregoing.

Section 20. 
Arbitration.  The Secured
Party or Pledgor may elect to submit any dispute hereunder that has an amount
in controversy in excess of $250,000 to arbitration hereunder.  Any such arbitration shall be conducted in
Boston, Massachusetts in accordance with the Commercial Arbitration Rules of
the American Association then pertaining and the decision of the arbitrators
with respect to such dispute shall be binding, final and conclusive on the
parties.

 11
 

In the event the Secured Party or Pledgor shall elect to submit any
such dispute to arbitration hereunder, the Secured Party and Pledgor shall each
appoint and pay all fees of a fit and impartial person as arbitrator with at
least ten (10) years’ recent professional experience in the general subject
matter of the dispute.  Notice of such
appointment shall be sent in writing by each party to the other, and the
arbitrators so appointed, in the event of their failure to agree within thirty
(30) days after the appointment of the second arbitrator upon the matter so
submitted, shall appoint a third arbitrator. 
If either the Secured Party or Pledgor shall fail to appoint an
arbitrator, as aforesaid, for a period of twenty (20) days after written notice
from the other party to make such appointment, then the arbitrator appointed by
the party having made such appointment shall appoint a second arbitrator and
the two (2) so appointed shall, in the event of their failure to agree upon any
decision within thirty (30) days thereafter, appoint a third arbitrator.  If such arbitrators fail to agree upon a
third arbitrator within forty five (45) days after the appointment of the
second arbitrator, then such third arbitrator shall be appointed by the
American Arbitration Association from its qualified panel of arbitrators, and
shall be a person having at least ten (10) years’ recent professional
experience as to the subject matter in question.  The fees of the third arbitrator and the
expenses incident to the proceedings shall be borne equally between the Secured
Party and Pledgor, unless the arbitrators decide otherwise.  The fees of respective counsel engaged by the
parties, and the fees of expert witnesses and other witnesses called for the
parties, shall be paid by the respective party engaging such counsel or calling
or engaging such witnesses.

The decision of the arbitrators shall be rendered within thirty (30)
days after appointment of the third arbitrator. 
Such decision shall be in writing and in duplicate, one counterpart
thereof to be delivered to the Secured Party and one to Pledgor.  A judgment of a court of competent
jurisdiction may be entered upon the award of the arbitrators in accordance
with the rules and statutes applicable thereto then obtaining.

The Secured Party and Pledgor acknowledge and agree that, to the extent
any such dispute shall involve any Manager and be subject to arbitration
pursuant to such Manager’s Management Agreement, the Secured Party and Pledgor
shall cooperate to consolidate any such arbitration hereunder and under such
Management Agreement into a single proceeding.

 12
 

Section 21. 
Severability.  In case any
one or more of the provisions contained in this Agreement should be invalid,
illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any
way be affected or impaired thereby, but this Agreement shall be reformed and
construed and enforced to the maximum extent permitted by applicable law.

Section 22. 
Entire Contract.  This
Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof and shall supersede and take the place of
any other instruments purporting to be an agreement of the parties hereto
relating to the subject matter hereof.

Section 23. 
Headings; Counterparts.  Headings in
this Agreement are for purposes of reference only and shall not limit or
otherwise affect the meaning hereof. 
This Agreement may be executed in any number of counterparts, each of
which shall be an original, but all of which together shall constitute one
instrument, and in pleading or proving any provision of this Agreement, it
shall not be necessary to produce more than one of such counterparts.

Section 24. 
Nonliability of Trustees.  THE
DECLARATION OF TRUST ESTABLISHING THE SECURED PARTY, A COPY OF WHICH, TOGETHER
WITH ALL AMENDMENTS THERETO (THE “DECLARATION”), IS DULY FILED WITH THE
DEPARTMENT OF ASSESSMENTS AND TAXATION OF THE STATE OF MARYLAND, PROVIDES THAT
THE NAME “HRES1 PROPERTIES TRUST” REFERS TO THE TRUSTEES UNDER SUCH DECLARATION
COLLECTIVELY AS TRUSTEES, BUT NOT INDIVIDUALLY OR PERSONALLY, AND THAT NO
TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE OR AGENT OF THE SECURED PARTY SHALL BE
HELD TO ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY OBLIGATION OF OR
CLAIM AGAINST, THE SECURED PARTY.  ALL
PERSONS DEALING WITH THE SECURED PARTY, IN ANY WAY, SHALL LOOK ONLY TO THE
ASSETS OF THE SECURED PARTY FOR THE PAYMENT OF ANY SUM OR THE PERFORMANCE OF
ANY OBLIGATION.

 13
 

WITNESS the execution hereof under seal as of the date above first written.

	
   

  	
   

  	
  PLEDGOR:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FSQ,
  INC.

  	
   

  
	
   

  	
   

  	
  a Delaware
  corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Evrett W. Benton

  	
   

  
	
   

  	
   

  	
  By: Evrett W.
  Benton

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SECURED
  PARTY:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HRES1
  PROPERTIES TRUST,

  	
   

  
	
   

  	
   

  	
  a Maryland real estate investment trust

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ David J. Hegarty

  	
   

  
	
   

  	
   

  	
  By: David J.
  Hegarty

  	
   

  
	
   

  	
   

  	
  Its: President

  	
   

  

 

 14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}]]