Document:

Exhibit
10.6

 

PLEDGE
AND SECURITY AGREEMENT

(SEVENTH
MEZZANINE LOAN)

 

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

 

RECITALS

 

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

 

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

 

 

(as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time, the “First Mezzanine Loan Agreement”), and secured by, among
other things, a pledge of all of I-A Borrower’s interest in the Mortgage
Borrowers (other than Maryland Borrower (as defined in the Mortgage Loan
Agreement)) and Maryland Owner and I-B Borrower’s interest in I-A Borrower;

 

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

 

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

 

WHEREAS, JPMorgan
Chase Bank, N.A., Column Financial, Inc. and Bank of America, N.A.
(collectively, the “Fourth Mezzanine
Noteholders”) are making a loan in the aggregate principal amount of
$250,000,000.00 (the “Fourth Mezzanine Loan”),
which Fourth Mezzanine Loan is evidenced by that certain Promissory Note
(Fourth Mezzanine Loan), dated as of the date hereof (as the same may be
amended, severed, split, extended, consolidated, restated, replaced,
supplemented or otherwise modified from time to time, the “Fourth
Mezzanine Note”), made by HCR IV Properties, LLC, a Delaware limited
liability company

 

2

 

(“Fourth
Mezzanine Borrower”), in favor of the Fourth Mezzanine Noteholders
pursuant to that certain Loan Agreement (Fourth Mezzanine Loan), dated as of
the date hereof, by and between JPMorgan Chase Bank, N.A., a banking
association chartered under the laws of the United States of America, as
collateral agent for itself and the other Fourth Mezzanine Noteholders
(together with its successors and assigns, the “Fourth
Mezzanine Lender”), and the Fourth Mezzanine Borrowers (as the same
may be amended, restated, replaced, supplemented or otherwise modified from
time to time, the “Fourth Mezzanine Loan
Agreement”), and secured by, among other things, a pledge of all of
Fourth Mezzanine Borrower’s interest in Third Mezzanine Borrower;

 

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

 

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

 

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

 

3

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Article 8
Matter” has the meaning ascribed to such term in Section 18(1) hereof.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

8

 

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

 

(i)                                     all Pledged
Securities;

 

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

 

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

 

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

 

(v)                                 all Proceeds of
any of the foregoing property of Pledgor (including, without limitation, any
proceeds of insurance thereon, all “accounts”, “general intangibles”,
“instruments” and “investment property”, in each case as defined in the Code,
constituting or evidencing the foregoing).

 

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

 

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

 

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

 

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

 

(c)                                  Pledgor is the
record and beneficial owner of, and has good title to, the Pledged Securities,
in each case free of any and all Liens or options in favor of, or claims of,
any

 

9

 

other Person, except the
Lien created by this Agreement, and the Pledged Securities have not previously
been assigned, sold, transferred, pledged or encumbered (except pursuant to
this Agreement);

 

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

 

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

 

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

 

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

 

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

 

(b)                                 Voting. Subject to
the terms of the Loan Agreement and the Sixth Mezzanine Loan Agreement, without
the prior written consent of Lender, Pledgor shall not, directly or indirectly
(i) vote to enable, or take any other action to permit, Sixth Mezzanine
Borrower to issue any limited liability company interests or to issue any other
securities

 

10

 

convertible into or granting
the right to purchase or exchange for any limited liability company interests
in Sixth Mezzanine Borrower or, (ii) except as permitted by the Loan
Agreement, sell, assign, transfer, exchange or otherwise dispose of, or grant
any option with respect to, the Collateral, or (iii) create, incur,
authorize or permit to exist any Lien or option in favor of, or any claim of
any Person with respect to, any of the Collateral, or any interest therein,
except for the Liens created pursuant to this Agreement. Pledgor shall defend
the right, title and interest of Lender in and to the Collateral against the
claims and demands of all Persons whomsoever.

 

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

 

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

 

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

 

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

 

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

 

11

 

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

 

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

 

8.                                      Rights
of Lender.

 

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

 

(b)                                 The rights of
Lender under this Agreement shall not be conditioned or contingent upon the
pursuit by Lender of any right or remedy against Pledgor or against any other
Person which may be or become liable in respect of all or any part of the Debt
or against

 

12

 

any other security therefor,
guarantee thereof or right of offset with respect thereto. Lender shall not be
liable for any failure to demand, collect or realize upon all or any part of
the Collateral or for any delay in doing so (except to the extent of Lender’s
gross negligence or willful misconduct), nor shall it be under any obligation
to sell or otherwise dispose of any Collateral upon the request of Pledgor or
any other Person or to take any other action whatsoever with regard to the
Collateral or any part thereof.

 

(c)                                  Upon
satisfaction in full of the Debt (other than contingent obligations or
liabilities) including the payment of all amounts owed on the Note, Lender’s
rights under this Agreement shall terminate and Lender shall, at Pledgor’s sole
cost and expense (including reasonable attorneys’ fees and disbursements),
execute and deliver to Pledgor, or authorize Pledgor or its authorized
representatives to file, UCC-3 termination statements or similar documents and
agreements required to terminate all of Lender’s rights under this Agreement
and all other Loan Documents and deliver to the applicable Pledgor all
certificates representing the Pledged Securities and all other possessory
Collateral delivered to Lender in connection with the Loan.

 

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

 

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

 

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

 

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

 

(i)                                     all rights and
remedies of a secured party under the Code (whether or not said Code is in
effect in the jurisdiction where the rights and remedies are asserted) and such
additional rights and remedies to which a secured party is entitled under the
laws in effect in any jurisdiction where any rights and remedies hereunder may
be asserted, including, without limitation, the right, to the maximum extent
permitted by law, to

 

13

 

exercise all voting,
consensual and other powers of ownership pertaining to the Collateral as if
Lender were the sole and absolute owner thereof (and each Pledgor agrees to
take all such action as may be necessary to give effect to such right);

 

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

 

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

 

(b)                                 If an Event of
Default shall have occurred and be continuing, without limiting the generality
of the foregoing, Lender, without demand of performance or other demand,
presentment, protest, advertisement or notice (except any notice required by
law or otherwise required by the Loan Documents) of any kind (except any notice
required by law referred to below or otherwise required hereby) to or upon
Pledgor, Sixth Mezzanine Borrower or any other Person (all and each of which
demands, presentments, protests, advertisements and notices, or other defenses,
are hereby waived by Pledgor to the extent permitted under applicable law), may
in such circumstances forthwith collect, receive, appropriate and realize upon
the Collateral, or any part thereof, and/or may forthwith sell, assign, give
option or options to purchase or otherwise dispose of and deliver the
Collateral or any part thereof (or contract to do any of the foregoing), in one
or more parcels at public or private sale or sales, in the over-the-counter
market, at any exchange, broker’s board or office of Lender or elsewhere upon
such terms and conditions as it may deem advisable and at such prices as it may
deem best in its sole discretion, for cash or on credit or for future delivery
without assumption of any credit risk. Lender shall have the right, without
notice or publication, to adjourn any public or private sale or cause the same
to be adjourned from time to time by announcement at the time and place fixed
for such sale, and any such sale may be made at any time or place to which the
same may be adjourned without further notice. Lender shall have the right upon
any such public sale or sales, and, to the extent permitted by law, upon any
such private sale or sales, to purchase the whole or any part of the Collateral
so sold, free of any right or equity of redemption of Pledgor, which right or
equity of redemption is hereby waived or released. Lender shall apply any
Proceeds from time to time held by it and the net proceeds of any such
collection, recovery, receipt, appropriation, realization or sale, after
deducting all reasonable costs and expenses of every kind incurred therein or
incidental to the care or safekeeping of any of the Collateral or in any way
relating to the Collateral or the rights of Lender hereunder, including,
without limitation, reasonable attorneys’ fees and disbursements, to the
payment in whole or in part of the Debt, in such order as Lender may elect, and
only after such application and after the payment by Lender of any other amount
required by any provision of law, including, without limitation, Sections 9-610
and 9-615 of the Code, need Lender account for the surplus, if any, to Pledgor.
To the extent permitted by applicable law, Pledgor waives all claims, damages
and demands it may acquire against Lender arising out of the exercise by Lender
of any of its rights hereunder, except for any claims, damages and demands it
may have against Lender arising from the willful misconduct or gross negligence
of Lender or its affiliates, or any agents or employees of the

 

14

 

foregoing. If any notice of
a proposed sale or other disposition of Collateral shall be required by law,
such notice shall be deemed reasonable and proper if given at least ten
(10) days prior to such sale or other disposition (which each Pledgor
agrees is reasonable notice within the meaning of Section 9-611 of the
Code or its equivalent in other jurisdictions), which notice, in the case of a
public sale, shall state the time and place for such sale and, in the case of a
sale at a broker’s board or on a securities exchange, shall state the board or
exchange at which such sale is to be made and the day on which the Collateral
will first be offered for sale at such board or exchange.

 

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

 

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

 

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

 

(c)                                  Lender shall
not incur any liability as a result of the sale of any Collateral, or any part
thereof, at any private sale conducted in a commercially reasonable manner, it
being agreed that some or all of the Collateral is or may be of one or more
types that threaten to decline

 

15

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

16

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17

 

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

 

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

 

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

 

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

 

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

 

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

 

18.                               Miscellaneous.

 

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

 

18

 

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

 

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

 

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

 

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

 

(f)            Governing Law.

 

(i)            THIS AGREEMENT WAS NEGOTIATED IN THE
STATE OF NEW YORK, AND MADE BY PLEDGOR AND ACCEPTED BY LENDER IN THE STATE OF
NEW YORK, AND THE PROCEEDS OF THE NOTE SECURED HEREBY WERE DISBURSED FROM THE
STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP
TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL
RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS
OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS
ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN

 

19

 

ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT
REGARD TO PRINCIPLES OF CONFLICT LAWS, OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW) AND ANY APPLICABLE LAW OF THE UNITED STATES
OF AMERICA. TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF PLEDGOR AND LENDER
HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW
OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE NOTE, AND THIS
AGREEMENT AND THE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW
YORK GENERAL OBLIGATIONS LAW.

 

(ii)           ANY LEGAL SUIT, ACTION OR PROCEEDING
AGAINST LENDER OR PLEDGOR ARISING OUT OF OR RELATING TO THIS AGREEMENT
MAY AT LENDER’S OR PLEDGOR’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE
COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO
SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND, TO THE EXTENT
NOT PROHIBITED BY APPLICABLE LAW, PLEDGOR AND LENDER EACH WAIVES ANY OBJECTIONS
WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON
CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND PLEDGOR HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION
OR PROCEEDING. PLEDGOR DOES HEREBY DESIGNATE AND APPOINT:

 

CT CORPORATION

111 EIGHTH AVENUE, 13TH FLOOR 

NEW YORK, NEW YORK 10011

 

AS ITS AUTHORIZED AGENT TO ACCEPT
AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE
SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY FEDERAL OR STATE COURT IN
NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID
ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO PLEDGOR IN
THE MANNER PROVIDED IN SECTION 10.6 OF THE LOAN AGREEMENT SHALL BE DEEMED
IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON PLEDGOR IN ANY SUCH SUIT,
ACTION OR PROCEEDING IN THE STATE OF NEW YORK. PLEDGOR (A) SHALL GIVE
PROMPT NOTICE TO LENDER OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT
HEREUNDER, (B) MAY AT ANY TIME AND FROM TIME TO TIME DESIGNATE A
SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH
SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR
SERVICE

 

20

 

OF PROCESS), AND (C) SHALL
PROMPTLY DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN
OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR.

 

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

 

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

 

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

 

(j)            WAIVER OF JURY TRIAL, DAMAGES,
JURISDICTION. PLEDGOR AND LENDER EACH HEREBY AGREES TO WAIVE ITS RIGHTS TO
A JURY TRIAL ON ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, OR ANY DEALINGS
BETWEEN PLEDGOR AND LENDER. THE SCOPE OF THIS WAIVER IS INTENDED TO BE
ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING
WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND
ALL OTHER COMMON LAW AND STATUTORY CLAIMS. PLEDGOR AND LENDER EACH ACKNOWLEDGES
THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO LENDER TO ENTER INTO A BUSINESS
RELATIONSHIP WITH PLEDGOR. PLEDGOR AND LENDER EACH REPRESENTS AND WARRANTS THAT
IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH WAIVER IS
KNOWINGLY AND VOLUNTARILY GIVEN FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED, EITHER ORALLY
OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, REPLACEMENTS, REAFFIRMATIONS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT, OR ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT. IN THE EVENT OF LITIGATION, THIS AGREEMENT
MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

WITH RESPECT TO ANY ACTION
ARISING OUT OF OR RELATING TO THIS AGREEMENT, EACH OF PLEDGOR AND LENDER SHALL
AND HEREBY DOES SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF

 

21

 

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

 

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

 

(l)            Irrevocable Proxy. Solely with respect to
Article 8 Matters (as hereinafter defined), Pledgor hereby irrevocably
grants and appoints Lender, from the date of this Agreement until the
termination of this Agreement in accordance with its terms, as Pledgor’s true
and lawful proxy, for and in Pledgor’s name, place and stead to vote the
Pledged Securities, whether directly or indirectly, beneficially or of record,
now owned or hereafter acquired, with respect to such Article 8 Matters.
The proxy granted and appointed in this Section 18(1) shall
include the right to sign Pledgor’s name (as the direct owner of Sixth
Mezzanine Borrower) to any consent, certificate or other document relating to
an Article 8 Matter and the Pledged Securities that applicable law may
permit or require, to cause the Pledged Securities to be voted in accordance
with the preceding sentence. Pledgor hereby represents and warrants that there
are no other proxies and powers of attorney with respect to an Article 8
Matter that Pledgor may have granted or appointed. Pledgor will not give a
subsequent proxy or power of attorney or enter into any other voting agreement
with respect to the Pledged Securities with respect to any Article 8
Matter and any attempt to do so with respect to an Article 8 Matter shall
be void and of no effect. The proxies and powers granted by the Pledgor
pursuant to this Agreement are

 

22

 

coupled with an interest and
are given to secure the performance of the Pledgor’s obligations. As used
herein,  “Article 8 Matter”
means any action, decision, determination or election by Borrower or its member(s) or
partner(s) that its membership interests, partnership interests or other
equity interests, or any of them, be, or cease to be, a “security” as defined
in and governed by Article 8 of the Uniform Commercial Code, and all other
matters related to any such action, decision, determination or election.

 

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

 

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

 

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

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

23

 

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

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  HCR VII PROPERTIES, LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
    

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

EXHIBIT A

 

FORM OF
ACKNOWLEDGMENT AND CONSENT

 

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

 

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

 

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

 

The registered pledgee of
the Pledged Securities is:

 

JPMORGAN
CHASE BANK, N.A., 

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

 

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

 

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

 

1

 

	
  Dated: as of
  December 21, 2007

  	
   

  
	
   

  	
   

  
	
   

  	
  ISSUER:

  
	
   

  	
   

  
	
   

  	
  HCR VI PROPERTIES, LLC, a Delaware
  limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
  AGREED TO AND ACKNOWLEDGED BY:

  
	
   

  
	
  PLEDGOR:

  
	
   

  
	
   

  
	
  HCR VII PROPERTIES, LLC,

  
	
  a Delaware limited
  liability company

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

2Exhibit 10.7

 

FORM OF
OMNIBUS ASSIGNMENT

(SEVENTH MEZZANINE LOAN)

 

THIS OMNIBUS ASSIGNMENT (this “Assignment”), made as
of the 21st day of
December, 2007, by JPMORGAN CHASE BANK, N.A., a banking association chartered
under the laws of the United States of America, in its capacity as collateral
agent for itself and the Seventh Mezzanine Noteholders (as defined on Exhibit G-1, attached hereto and made
a part hereof) (“Assignor”),
having an address at 270 Park Avenue, New York, New York 10017-2014, to HCP
MEZZANINE LENDER, LLC, a Delaware limited liability company (“Assignee”), having an address at c/o
HCP, Inc., 3760 Kilroy Airport Way, Suite 300, Long Beach, California
90806.

 

KNOW
ALL MEN BY THESE PRESENTS, that in consideration of the sum of TEN DOLLARS ($10.00)
lawful money of the United States and other good and valuable consideration, to
it in hand paid at or before the delivery of these presents, Assignor transfers
and sets over, without recourse and without covenant, representation or
warranty in any respect (except as expressly provided herein), and by these
presents does grant, bargain, sell, assign, transfer and set over unto Assignee
without recourse and without covenant, representation or warranty in any
respect (except as expressly provided herein), the Seventh Mezzanine Loan
(hereinafter defined) (the “Loan”)
and the Seventh Mezzanine Loan Documents (hereinafter defined) (the “Loan Documents) which were executed in
connection with the Loan, and all of Seventh Mezzanine Noteholders’ right,
title and interest in, to and under the Loan Documents, and all of Seventh
Mezzanine Noteholders’ right, title and interest, if any, in, to and under all
other documents executed and/or delivered in connection with the Loan evidenced
and/or secured by the Loan Documents, including, without limitation, all of
Seventh Mezzanine Noteholders’ right, title and interest in any mezzanine loan
policies, legal opinions delivered in connection with the Loan Documents,
certificates, collateral, certificates of deposit, letters of credit,
performance bonds, demands, causes of action, all related certificates, bank
accounts, operating accounts, reserve accounts, escrow accounts and other
accounts, opinions, financial statements of Seventh Mezzanine Borrower (as
defined on Schedule G-1,
attached hereto and made a part hereof) and any guarantors and any other
collateral arising out of and/or executed and/or delivered in or to or with
respect to the Loan Documents, all rights and benefits of Seventh Mezzanine
Noteholders related to the Loan Documents and such other documents, and all
claims and choses in action related to the Loan Documents and such documents
and all of Seventh Mezzanine Noteholders’ rights, title and interest in, to and
under such claims and choses in action.

 

Assignor
represents and warrants that:

 

(a)          Schedule A-2 represents a
complete list of all material loan documents delivered by First Mezzanine
Borrower (as defined on Schedule A-1)
in connection with the First Mezzanine Loan (as defined on Schedule A-1) (collectively, the “First Mezzanine Loan Documents”), Schedule B-2 represents a complete
list of all material loan documents delivered by Second Mezzanine Borrower (as
defined on Schedule B-1) in
connection with the Second Mezzanine Loan (as defined on Schedule B-1) (collectively, the “Second Mezzanine Loan Documents”), Schedule C-2 represents a complete
list of all material loan documents delivered by Third Mezzanine Borrower (as
defined on Schedule C-1) in
connection with the Third Mezzanine Loan (as defined on Schedule C-1) (collectively, the “Third Mezzanine Loan Documents”), Schedule D-2 represents a complete
list of all material loan documents delivered by Fourth Mezzanine Borrower (as
defined on Schedule D-1) in
connection with the Fourth Mezzanine Loan (as defined on Schedule D-1) (collectively, the “Fourth Mezzanine Loan Documents”), Schedule E-2 represents a complete
list of all material loan documents delivered by Fifth Mezzanine Borrower (as
defined on Schedule E-1) in
connection with the Fifth Mezzanine Loan (as defined on Schedule E-1) (collectively, the “Fifth Mezzanine Loan Documents”), Schedule F-2 represents a complete
list of all material loan documents delivered by Sixth Mezzanine Borrower (as
defined on Schedule F-1) in
connection with the Sixth Mezzanine Loan (as defined on Schedule F-1) (collectively, the “Sixth Mezzanine Loan Documents”), 

 

 

Schedule G-2 represents a complete list
of all material loan documents delivered by Seventh Mezzanine Borrower (as
defined on Schedule G-1) in
connection with the Seventh Mezzanine Loan (as defined on Schedule G-1) (collectively, the “Seventh Mezzanine Loan Documents”), and Schedule H-2 represents a complete
list of all material loan documents delivered by Mortgage Borrower (as defined
on Schedule H-1) in connection
with the Mortgage Loan (as defined on Schedule H-1)
(collectively, the “Mortgage Loan Documents”);

 

(b)         true counterpart originals
of the Seventh Mezzanine Loan Documents have been delivered by Assignor to
Assignee;

 

(c)          true and correct copies of
the Mortgage Loan Documents, the First Mezzanine Loan Documents, the Second
Mezzanine Loan Documents, the Third Mezzanine Loan Documents, the Fourth
Mezzanine Loan Documents, the Fifth Mezzanine Loan Documents, and the Sixth
Mezzanine Loan Documents have been delivered by Assignor to Assignee;

 

(c)          Seventh Mezzanine
Noteholders currently own the Loan Documents and the related rights described
above and that the Loan Documents and the related rights described above are
not, and have not been, pledged, nor assigned, to another party and are not
otherwise encumbered or subject to any adverse claim as of the execution and
delivery of this Assignment;

 

(d)         the principal amount
outstanding under the Seventh Mezzanine Loan as of the execution and delivery
of this Assignment is $250,000,000.00;

 

(e)          the Loan Documents have not
been amended, modified, supplemented or restated;

 

(f)            to Assignor’s knowledge,
there currently exists no monetary default and no material non-monetary
default, or event which given the passage of time or giving of notice would
constitute a default, under any of the Loan Documents;

 

(g)         Assignor is duly organized
and is validly existing under the laws of the jurisdiction under which it was
organized with full power to execute and deliver this Assignment;

 

(h)         all actions necessary to
authorize the execution, delivery, and performance of this Assignment on behalf
of Seventh Mezzanine Noteholders have been duly taken, and all such actions
continue in full force and effect as of the date hereof;

 

(i)             no consent, approval,
authorization or order of, or registration or filing with, or notice to, any
court or governmental agency or body having jurisdiction or regulatory
authority over Assignor is required for (x) Assignor’s execution and
delivery of this Assignment, (y) Assignor’s transfer and assignment of the
Loan, or (z) the consummation by Assignor of the transactions contemplated
by this Assignment or, to the extent so required, such consent, approval,
authorization, order, registration, filing or notice has been obtained, made or
given (as applicable); and,

 

(j)             there have been no waivers
of any material provisions of the Loan Documents.

 

This
Assignment is being delivered subject to the Intercreditor Agreements, as
defined in that certain Assignment and Assumption Agreement (Seventh Mezzanine
Loan), of even date herewith, made by and between Assignor and Assignee.

 

It
is hereby understood and agreed that any and all commitment and loan
origination fees collected by Assignor are not being transferred hereby and
that Seventh Mezzanine Noteholders shall have the sole rights thereto.

 

TO
HAVE AND TO HOLD unto Assignee, its successors, and assigns forever.

 

2

 

Assignee
joins in this Assignment to evidence its consent hereto and to agree to, and
hereby does, assume all of the obligations of Seventh Mezzanine Noteholders
under the Loan Documents to be observed and performed from and after the date
hereof.

 

This
Assignment may be executed by one or more parties to this Assignment in any
number of counterparts and all said counterparts taken together shall be deemed
to constitute one and the same instrument.

 

This
Agreement shall be governed by, and construed in accordance with, the internal
laws of the State of New York.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

3

 

IN
WITNESS WHEREOF, Assignor and Assignee have caused these presents to be duly
executed as of the day and year first above written.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK, N.A.,

  a banking association chartered under the

  laws of the United States of America

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  HCP
  MEZZANINE LENDER, LLC,

  a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  HCP, INC., 

  
	
   

  	
   

  	
  a Maryland corporation, 

  
	
   

  	
   

  	
  its Managing Member

  

 

	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: Edward J. Henning

  Title: Executive Vice President

  

 

 

EXHIBIT A-1

 

FIRST
MEZZANINE LOAN

 

Mezzanine Loan, in the
original principal amount of $100,000,000.00, made by JPMORGAN CHASE, N.A., a
banking association chartered under the laws of the United States of America,
COLUMN FINANCIAL, INC., a Delaware corporation, and BANK OF AMERICA, N.A.,
a national banking association, to HCR I-A PROPERTIES, LLC, a Delaware limited
liability company, and HCR I-B PROPERTIES, LLC, a Delaware limited liability
company (collectively, “First Mezzanine Borrower”)
(the “First Mezzanine Loan”)

 

 

SCHEDULE
A-2

 

FIRST
MEZZANINE LOAN DOCUMENTS

 

(attached
hereto)

 

 

LIST OF
LOAN DOCUMENTS

(FIRST
MEZZANINE LOAN)

 

MEZZANINE LOAN DOCUMENTS:

 

1.     Promissory Note (First
Mezzanine Loan), in the stated principal amount of $100,000,000.00

 

2.     Loan Agreement (First
Mezzanine Loan)

 

3.     Pledge and Security
Agreement (First Mezzanine Loan)

 

4.     Acknowledgment and Consent,
from the I-A Borrower (as such term is defined in the Pledge Agreement listed
above)

 

5.     Acknowledgment and Consent,
from the Mortgage Borrowers (other than Maryland Borrower) and Maryland Owner
(as such terms are defined in the Pledge Agreement listed above)

 

6.     UCC-l Financing Statement,
to be filed with the Secretary of State of the State of Delaware, with respect
to the collateral granted under the Pledge and Security Agreement and the
Collateral Assignment of Interest Rate Cap Agreements listed below.

 

7.     Cash Management Agreement
(First Mezzanine Loan)

 

8.     Guaranty Agreement (First
Mezzanine Loan)

 

9.     Collateral Assignment of
Interest Rate Cap Agreement (First Mezzanine Loan), with respect to the
interest rate cap issued by JPMorgan Chase Bank, N.A.

 

10.   Collateral Assignment of
Interest Rate Cap Agreement (First Mezzanine Loan), with respect to the
interest rate cap issued by Credit Suisse International

 

11.   Collateral Assignment of
Interest Rate Cap Agreement (First Mezzanine Loan), with respect to the
interest rate cap issued by Bank of America, N.A.

 

12.   Assignment of Title
Insurance Proceeds(1)

 

13.   Environmental Indemnity
Agreement (First Mezzanine Loan)

 

14.   Operations and Maintenance
Agreement (First Mezzanine Loan)

 

(1) applies to all
levels of debt in the debt stack

 

1

 

15.   Subordination of Management
Agreement (First Mezzanine Loan), with respect to the properties located in
South Carolina only

 

16.   Cooperation Agreement(1)

 

17.   Escrow Instructions
Letter(1)

 

MEZZANINE LOAN MODIFICATION
DOCUMENTS:

 

18.   Note Splitter and Loan
Modification Agreement (First Mezzanine Loan)

 

19.   Promissory Note A-1 (First
Mezzanine Loan), in the stated principal amount of $45,000,000.00

 

20.   Promissory Note A-2 (First
Mezzanine Loan), in the stated principal amount of $32,500,000.00

 

21.   Promissory Note A-3 (First
Mezzanine Loan), in the stated principal amount of $22,500,000.00

 

INTERCREDITOR AGREEMENTS:

 

22.   Intercreditor Agreement (with
respect to the corporate loan)(1)

 

23.   Intercreditor Agreement
(with respect to the mortgage and other mezzanine loans)(1)

 

2

 

EXHIBIT B-1

 

SECOND
MEZZANINE LOAN

 

Mezzanine Loan, in the
original principal amount of $250,000,000.00, made by JPMORGAN CHASE, N.A., a
banking association chartered under the laws of the United States of America,
COLUMN FINANCIAL, INC., a Delaware corporation, and BANK OF AMERICA, N.A.,
a national banking association, to HCR II PROPERTIES, LLC, a Delaware limited
liability company (“Second Mezzanine Borrower”)
(the “Second Mezzanine Loan”)

 

 

SCHEDULE
B-2

 

SECOND
MEZZANINE LOAN DOCUMENTS

 

(attached
hereto)

 

 

LIST OF
LOAN DOCUMENTS

(SECOND
MEZZANINE LOAN)

 

MEZZANINE LOAN DOCUMENTS:

 

1.     Promissory Note (Second
Mezzanine Loan), in the stated principal amount of $250,000,000.00

 

2.     Loan Agreement (Second
Mezzanine Loan)

 

3.     Pledge and Security
Agreement (Second Mezzanine Loan)

 

4.     Acknowledgment and Consent

 

5.     UCC-1 Financing Statement,
to be filed with the Secretary of State of the State of Delaware, with respect
to the collateral granted under the Pledge and Security Agreement and the
Collateral Assignment of Interest Rate Cap Agreements listed below

 

6.     Cash Management Agreement
(Second Mezzanine Loan)

 

7.     Guaranty Agreement (Second
Mezzanine Loan)

 

8.     Collateral Assignment of
Interest Rate Cap Agreement (Second Mezzanine Loan), with respect to the interest
rate cap issued by JPMorgan Chase Bank, N.A.

 

9.     Collateral Assignment of
Interest Rate Cap Agreement (Second Mezzanine Loan), with respect to the
interest rate cap issued by Credit Suisse International

 

10.   Collateral Assignment of
Interest Rate Cap Agreement (Second Mezzanine Loan), with respect to the
interest rate cap issued by Bank of America, N.A.

 

11.   Assignment of Title
Insurance Proceeds(1)

 

12.   Environmental Indemnity
Agreement (Second Mezzanine Loan)

 

13.   Operations and Maintenance
Agreement (Second Mezzanine Loan)

 

14.   Subordination of Management
Agreement (Second Mezzanine Loan), with respect to the properties located in
South Carolina only

 

15.   Cooperation Agreement(1)

 

(1) applies to all
levels of debt in the debt stack

 

1

 

16.   Escrow Instructions
Letter(1)

 

MEZZANINE LOAN MODIFICATION
DOCUMENTS:

 

17.   Note Splitter and Loan
Modification Agreement (Second Mezzanine Loan)

 

18.   Promissory Note A-1 (Second
Mezzanine Loan), in the stated principal amount of $112,500,000.00

 

19.   Promissory Note A-2 (Second
Mezzanine Loan), in the stated principal amount of $81,250,000.00

 

20.   Promissory Note A-3 (Second
Mezzanine Loan), in the stated principal amount of $56,250,000.00

 

INTERCREDITOR AGREEMENTS:

 

21.   Intercreditor Agreement
(with respect to the corporate loan)(1)

 

22.   Intercreditor Agreement
(with respect to the mortgage and other mezzanine loans)(1)

 

2

 

EXHIBIT C-1

 

THIRD
MEZZANINE LOAN

 

Mezzanine Loan, in the
original principal amount of $250,000,000.00, made by JPMORGAN CHASE, N.A., a
banking association chartered under the laws of the United States of America,
COLUMN FINANCIAL, INC., a Delaware corporation, and BANK OF AMERICA, N.A.,
a national banking association, to HCR III PROPERTIES, LLC, a Delaware limited
liability company (“Third Mezzanine Borrower”)
(the “Third Mezzanine Loan”)

 

 

SCHEDULE
C-2

 

THIRD
MEZZANINE LOAN DOCUMENTS

 

(attached
hereto)

 

 

LIST OF
LOAN DOCUMENTS

(THIRD
MEZZANINE LOAN)

 

MEZZANINE LOAN DOCUMENTS:

 

1.     Promissory Note (Third
Mezzanine Loan), in the stated principal amount of $250,000,000.00

 

2.     Loan Agreement (Third
Mezzanine Loan)

 

3.     Pledge and Security
Agreement (Third Mezzanine Loan)

 

4.     Acknowledgment and Consent

 

5.     UCC-1 Financing Statement,
to be filed with the Secretary of State of the State of Delaware, with respect
to the collateral granted under the Pledge and Security Agreement and the
Collateral Assignment of Interest Rate Cap Agreements listed below

 

6.     Cash Management Agreement
(Third Mezzanine Loan)

 

7.     Guaranty Agreement (Third
Mezzanine Loan)

 

8.     Collateral Assignment of
Interest Rate Cap Agreement (Third Mezzanine Loan), with respect to the
interest rate cap issued by JPMorgan Chase Bank, N.A.

 

9.     Collateral Assignment of
Interest Rate Cap Agreement (Third Mezzanine Loan), with respect to the
interest rate cap issued by Credit Suisse International

 

10.   Collateral Assignment of
Interest Rate Cap Agreement (Third Mezzanine Loan), with respect to the interest
rate cap issued by Bank of America, N.A.

 

11.   Assignment of Title
Insurance Proceeds(1)

 

12.   Environmental Indemnity
Agreement (Third Mezzanine Loan)

 

13.   Operations and Maintenance
Agreement (Third Mezzanine Loan)

 

14.   Subordination of Management
Agreement (Third Mezzanine Loan), with respect to the properties located in
South Carolina only

 

15.   Cooperation Agreement(1)

 

(1) applies to all
levels of debt in the debt stack

 

1

 

16.   Escrow Instructions Letter(1)

 

MEZZANINE LOAN MODIFICATION
DOCUMENTS:

 

17.   Note Splitter and Loan
Modification Agreement (Third Mezzanine Loan)

 

18.   Promissory Note A-1 (Third
Mezzanine Loan), in the stated principal amount of $112,500,000.00

 

19.   Promissory Note A-2 (Third Mezzanine
Loan), in the stated principal amount of $81,250,000.00

 

20.   Promissory Note A-3 (Third
Mezzanine Loan), in the stated principal amount of $56,250,000.00

 

INTERCREDITOR AGREEMENTS:

 

21.   Intercreditor Agreement
(with respect to the corporate loan)(1)

 

22.   Intercreditor Agreement
(with respect to the mortgage and other mezzanine loans)(1)

 

2

 

EXHIBIT D-1

 

FOURTH
MEZZANINE LOAN

 

Mezzanine Loan, in the
original principal amount of $250,000,000.00, made by JPMORGAN CHASE, N.A., a
banking association chartered under the laws of the United States of America,
COLUMN FINANCIAL, INC., a Delaware corporation, and BANK OF AMERICA, N.A.,
a national banking association, to HCR IV PROPERTIES, LLC, a Delaware limited liability
company (“Fourth Mezzanine Borrower”) (the “Fourth Mezzanine Loan”)

 

 

SCHEDULE
D-2

 

FOURTH
MEZZANINE LOAN DOCUMENTS

 

(attached
hereto)

 

 

LIST OF
LOAN DOCUMENTS

(FOURTH
MEZZANINE LOAN)

 

MEZZANINE LOAN DOCUMENTS:

 

1.     Promissory Note (Fourth
Mezzanine Loan), in the stated principal amount of $250,000,000.00

 

2.     Loan Agreement (Fourth
Mezzanine Loan)

 

3.     Pledge and Security
Agreement (Fourth Mezzanine Loan)

 

4.     Acknowledgment and Consent

 

5.     UCC-1 Financing Statement,
to be filed with the Secretary of State of the State of Delaware, with respect
to the collateral granted under the Pledge and Security Agreement and the
Collateral Assignment of Interest Rate Cap Agreements listed below

 

6.     Cash Management Agreement
(Fourth Mezzanine Loan)

 

7.     Guaranty Agreement (Fourth
Mezzanine Loan)

 

8.     Collateral Assignment of
Interest Rate Cap Agreement (Fourth Mezzanine Loan), with respect to the
interest rate cap issued by JPMorgan Chase Bank, N. A.

 

9.     Collateral Assignment of
Interest Rate Cap Agreement (Fourth Mezzanine Loan), with respect to the
interest rate cap issued by Credit Suisse International

 

10.   Collateral Assignment of
Interest Rate Cap Agreement (Fourth Mezzanine Loan), with respect to the
interest rate cap issued by Bank of America, N. A.

 

11.   Assignment of Title
Insurance Proceeds(1)

 

12.   Environmental Indemnity
Agreement (Fourth Mezzanine Loan)

 

13.   Operations and Maintenance
Agreement (Fourth Mezzanine Loan)

 

14.   Subordination of Management
Agreement (Fourth Mezzanine Loan), with respect to the properties located in
South Carolina only

 

15.   Cooperation Agreement(1)

 

(1) applies to all
levels of debt in the debt stack

 

1

 

16.   Escrow Instructions Letter(1)

 

MEZZANINE LOAN MODIFICATION
DOCUMENTS:

 

17.   Note Splitter and Loan
Modification Agreement (Fourth Mezzanine Loan)

 

18.   Promissory Note A-1 (Fourth
Mezzanine Loan), in the stated principal amount of $112,500,000.00

 

19.   Promissory Note A-2 (Fourth
Mezzanine Loan), in the stated principal amount of $81,250,000.00

 

20.   Promissory Note A-3 (Fourth
Mezzanine Loan), in the stated principal amount of $56,250,000.00

 

INTERCREDITOR AGREEMENTS:

 

21.   Intercreditor Agreement
(with respect to the corporate loan)(1)

 

22.   Intercreditor Agreement
(with respect to the mortgage and other mezzanine loans)(1)

 

2

 

EXHIBIT E-1

 

FIFTH
MEZZANINE LOAN

 

Mezzanine Loan, in the
original principal amount of $250,000,000.00, made by JPMORGAN CHASE, N. A., a
banking association chartered under the laws of the United States of America,
COLUMN FINANCIAL, INC., a Delaware corporation, and BANK OF AMERICA, N.
A., a national banking association, to HCR V PROPERTIES, LLC, a Delaware
limited liability company (“Fifth Mezzanine Borrower”)
(the “Fifth Mezzanine Loan”)

 

 

SCHEDULE
E-2

 

FIFTH
MEZZANINE LOAN DOCUMENTS

 

(attached
hereto)

 

 

LIST OF
LOAN DOCUMENTS

(FIFTH
MEZZANINE LOAN)

 

MEZZANINE LOAN DOCUMENTS:

 

1.     Promissory Note (Fifth
Mezzanine Loan), in the stated principal amount of $250,000,000.00

 

2.     Loan Agreement (Fifth
Mezzanine Loan)

 

3.     Pledge and Security Agreement
(Fifth Mezzanine Loan)

 

4.     Acknowledgment and Consent

 

5.     UCC-1 Financing Statement,
to be filed with the Secretary of State of the State of Delaware, with respect
to the collateral granted under the Pledge and Security Agreement and the
Collateral Assignment of Interest Rate Cap Agreements listed below

 

6.     Cash Management Agreement
(Fifth Mezzanine Loan)

 

7.     Guaranty Agreement (Fifth
Mezzanine Loan)

 

8.     Collateral Assignment of
Interest Rate Cap Agreement (Fifth Mezzanine Loan), with respect to the
interest rate cap issued by JPMorgan Chase Bank, N. A.

 

9.     Collateral Assignment of
Interest Rate Cap Agreement (Fifth Mezzanine Loan), with respect to the
interest rate cap issued by Credit Suisse International

 

10.   Collateral Assignment of
Interest Rate Cap Agreement (Fifth Mezzanine Loan), with respect to the
interest rate cap issued by Bank of America, N. A.

 

11.   Assignment of Title
Insurance Proceeds(1)

 

12.   Environmental Indemnity
Agreement (Fifth Mezzanine Loan)

 

13.   Operations and Maintenance
Agreement (Fifth Mezzanine Loan)

 

14.   Subordination of Management
Agreement (Fifth Mezzanine Loan), with respect to the properties located in
South Carolina only

 

15.   Cooperation Agreement(1)

 

(1) applies to all
levels of debt in the debt stack

 

1

 

16.   Escrow Instructions Letter(1)

 

MEZZANINE LOAN MODIFICATION
DOCUMENTS:

 

17.   Note Splitter and Loan
Modification Agreement (Fifth Mezzanine Loan)

 

18.   Promissory Note A-1 (Fifth
Mezzanine Loan), in the stated principal amount of $112,500,000.00

 

19.   Promissory Note A-2 (Fifth
Mezzanine Loan), in the stated principal amount of $81,250,000.00

 

20.   Promissory Note A-3 (Fifth
Mezzanine Loan), in the stated principal amount of 56,250,000.00

 

INTERCREDITOR AGREEMENTS:

 

21.   Intercreditor Agreement
(with respect to the corporate loan)(1)

 

22.   Intercreditor Agreement
(with respect to the mortgage and other mezzanine loans)(1)

 

2

 

EXHIBIT F-1

 

SIXTH
MEZZANINE LOAN

 

Mezzanine Loan, in the
original principal amount of $250,000,000.00, made by JPMORGAN CHASE, N. A., a
banking association chartered under the laws of the United States of America,
COLUMN FINANCIAL, INC., a Delaware corporation, and BANK OF AMERICA, N.
A., a national banking association, to HCR VI PROPERTIES, LLC, a Delaware
limited liability company (“Sixth Mezzanine Borrower”)
(the “Sixth Mezzanine Loan”)

 

 

SCHEDULE
F-2

 

SIXTH
MEZZANINE LOAN DOCUMENTS

 

(attached
hereto)

 

 

LIST OF
LOAN DOCUMENTS 

(SIXTH
MEZZANINE LOAN)

 

MEZZANINE LOAN DOCUMENTS:

 

1.     Promissory Note (Sixth
Mezzanine Loan), in the stated principal amount of $250,000,000.00

 

2.     Loan Agreement (Sixth
Mezzanine Loan)

 

3.     Pledge and Security
Agreement (Sixth Mezzanine Loan)

 

4.     Acknowledgment and Consent

 

5.     UCC-1 Financing Statement,
to be filed with the Secretary of State of the State of Delaware, with respect
to the collateral granted under the Pledge and Security Agreement and the
Collateral Assignment of Interest Rate Cap Agreements listed below

 

6.     Cash Management Agreement
(Sixth Mezzanine Loan)

 

7
     Guaranty Agreement (Sixth
Mezzanine Loan)

 

8.     Collateral Assignment of
Interest Rate Cap Agreement (Sixth Mezzanine Loan), with respect to the
interest rate cap issued by JPMorgan Chase Bank, N.A.

 

9.     Collateral Assignment of
Interest Rate Cap Agreement (Sixth Mezzanine Loan), with respect to the
interest rate cap issued by Credit Suisse International

 

10.   Collateral Assignment of
Interest Rate Cap Agreement (Sixth Mezzanine Loan), with respect to the
interest rate cap issued by Bank of America, N.A.

 

11.   Assignment of Title
Insurance Proceeds(1)

 

12.   Environmental Indemnity
Agreement (Sixth Mezzanine Loan)

 

13.   Operations and Maintenance
Agreement (Sixth Mezzanine Loan)

 

14.   Subordination of Management
Agreement (Sixth Mezzanine Loan), with respect to the properties located in
South Carolina only

 

15.   Cooperation Agreement(1)

 

(1) applies to all
levels of debt in the debt stack

 

1

 

16.   Escrow Instructions Letter(1)

 

MEZZANINE LOAN MODIFICATION
DOCUMENTS:

 

17.    Note Splitter and Loan
Modification Agreement (Sixth Mezzanine Loan)

 

18.   Promissory Note A-1 (Sixth
Mezzanine Loan), in the stated principal amount of $112,500,000.00

 

19.   Promissory Note A-2 (Sixth
Mezzanine Loan), in the stated principal amount of $81,250,000.00

 

20.   Promissory Note A-3 (Sixth
Mezzanine Loan), in the stated principal amount of $56,250,000.00

 

INTERCREDITOR AGREEMENTS:

 

21.   Intercreditor Agreement
(with respect to the corporate loan)(1)

 

22.   Intercreditor Agreement
(with respect to the mortgage and other mezzanine loans)(1)

 

2

 

EXHIBIT G-1

 

SEVENTH
MEZZANINE LOAN

 

Mezzanine Loan, in the
original principal amount of $250,000,000.00, made by JPMORGAN CHASE, N.A., a
banking association chartered under the laws of the United States of America,
COLUMN FINANCIAL, INC., a Delaware corporation, and BANK OF 

AMERICA, N.A., a national
banking association, to HCR VII PROPERTIES, LLC, a Delaware limited liability
company (“Seventh Mezzanine Borrower”) (the “Seventh Mezzanine Loan”)

 

 

SCHEDULE
G-2

 

SEVENTH
MEZZANINE LOAN DOCUMENTS

 

(attached
hereto)

 

 

LIST OF
LOAN DOCUMENTS

(SEVENTH
MEZZANINE LOAN)

 

MEZZANINE LOAN DOCUMENTS:

 

1.     Promissory Note (Seventh
Mezzanine Loan), in the stated principal amount of $250,000,000.00

 

2.     Loan Agreement (Seventh
Mezzanine Loan)

 

3.     Pledge and Security
Agreement (Seventh Mezzanine Loan)

 

4.     Acknowledgment and Consent

 

5.     UCC-1 Financing Statement,
to be filed with the Secretary of State of the State of Delaware, with respect
to the collateral granted under the Pledge and Security Agreement and the
Collateral Assignment of Interest Rate Cap Agreements listed below

 

6.     Cash Management Agreement
(Seventh Mezzanine Loan)

 

7.     Guaranty Agreement (Seventh
Mezzanine Loan)

 

8.     Collateral Assignment of
Interest Rate Cap Agreement (Seventh Mezzanine Loan), with respect to the
interest rate cap issued by JPMorgan Chase Bank, N.A.

 

9.     Collateral Assignment of
Interest Rate Cap Agreement (Seventh Mezzanine Loan), with respect to the
interest rate cap issued by Credit Suisse International

 

10.   Collateral Assignment of
Interest Rate Cap Agreement (Seventh Mezzanine Loan), with respect to the
interest rate cap issued by Bank of America, N.A.

 

11.   Assignment of Title
Insurance Proceeds(1)

 

12.   Environmental Indemnity
Agreement (Seventh Mezzanine Loan)

 

13.   Operations and Maintenance
Agreement (Seventh Mezzanine Loan)

 

14.   Subordination of Management
Agreement (Seventh Mezzanine Loan), with respect to the properties located in
South Carolina only

 

15.   Cooperation Agreement(1)

 

(1) applies to all
levels of debt in the debt stack

 

1

 

16.   Escrow Instructions Letter(1)

 

MEZZANINE LOAN MODIFICATION
DOCUMENTS:

 

17.   Note Splitter and Loan
Modification Agreement (Seventh Mezzanine Loan)

 

18.   Promissory Note A-1 (Seventh
Mezzanine Loan), in the stated principal amount of $112,500,000.00

 

19.   Promissory Note A-2 (Seventh
Mezzanine Loan), in the stated principal amount of  $81,250,000.00

 

20.   Promissory Note A-3 (Seventh
Mezzanine Loan), in the stated principal amount of $56,250,000.00

 

INTERCREDITOR
AGREEMENTS:

 

21.   Intercreditor Agreement
(with respect to the corporate loan)(1)

 

22.   Intercreditor Agreement
(with respect to the mortgage and other mezzanine loans)(1)

 

2

 

EXHIBIT H-1

 

MORTGAGE
LOAN

 

Mortgage Loan, in the
original principal amount of $3,000,000,000.00, made by JPMORGAN CHASE, N.A., a
banking association chartered under the laws of the United States of America,
COLUMN FINANCIAL, INC., a Delaware corporation, and BANK OF AMERICA, N.A., a
national banking association, to 301 HCR PROPERTIES OF OKLAHOMA CITY
(NORTHWEST), LLC, a Delaware limited liability company, 304 HCR PROPERTIES OF
MIDWEST CITY OK, LLC, a Delaware limited liability company, 306 HCR PROPERTIES
OF OKLAHOMA CITY (SOUTHWEST), LLC, a Delaware limited liability company, 307
HCR PROPERTIES OF TULSA OK. LLC, a Delaware limited liability company, 503 HCR
PROPERTIES-STRATFORD HALL OF RICHMOND VA, LLC, a Delaware limited liability
company, 512 HCR PROPERTIES-COLUMBIA SC, LLC, a Delaware limited liability
company, 526 HCR PROPERTIES-LEXINGTON SC, LLC, a Delaware limited liability
company, 527 HCR PROPERTIES OF ARLINGTON VA, LLC, a Delaware limited liability
company, 531 HCR PROPERTIES-WEST ASHLEY-CHARLESTON SC, LLC, a Delaware limited
liability company, 539 HCR PROPERTIES-FAIR OAKS OF FAIRFAX VA, LLC, a Delaware
limited liability company, 553 HCR PROPERTIES-IMPERIAL OF RICHMOND VA, LLC, a
Delaware limited liability company, 670 HCR PROPERTIES-ARDEN COURTS OF
ANNANDALE VA, LLC, a Delaware limited liability company, 4015 HCR
PROPERTIES-CHARLESTON OF HANAHAN SC, LLC, a Delaware limited liability company,
4031 HCR PROPERTIES-OAKMONT OF UNION SC, LLC, a Delaware limited liability
company, 4032 HCR PROPERTIES-OAKMONT EAST-GREENVILLE SC, LLC, a Delaware
limited liability company, 4033 HCR PROPERTIES-OAKMONT WEST-GREENVILLE SC, LLC,
a Delaware limited liability company, 4071 HCR PROPERTIES-MEDICAL CARE
CENTER-LYNCHBURG VA, LLC, a Delaware limited liability company, 4074 HCR
PROPERTIES OF ALEXANDRIA VA, LLC, a Delaware limited liability company, HCR
MANORCARE MARYLAND PROPERTIES II, LLC, a Delaware limited liability company,
HCR MANORCARE PROPERTIES, LLC, a Delaware limited liability company, HCR
MANORCARE WEST VIRGINIA PROPERTIES, LLC, a Delaware limited liability company
(collectively, the “Mortgage Borrower”)
(the “Mortgage Loan”)

 

 

SCHEDULE
H-2

 

MORTGAGE
LOAN DOCUMENTS

 

(attached
hereto)

 

 

LIST OF
LOAN DOCUMENTS

(MORTGAGE
LOAN)

 

CORE LOAN DOCUMENTS:

 

1.     Promissory Note, in the
stated principal amount of $3,000,000,000.00

 

2.     Loan Agreement

 

3.     a mortgage, deed of trust,
or deed to secure debt encumbering each Individual Property (as such term is
defined in the Loan Agreement listed above)

 

4.     an Assignments of Leases and
Rents covering each Individual Property (as such term is defined in the Loan
Agreement listed above)

 

5.     UCC-1 Fixture Filing
Financing Statement for each Individual Property (as such term is defined in
the Loan Agreement listed above)

 

6.     UCC-1 Financing Statement,
to be filed with the Secretary of State of the State of Delaware, perfecting
lender’s interest in the collateral granted under the mortgages, deeds of
trust, and deeds to secure debt and the Collateral Assignment of Interest Rate
Cap Agreements listed below

 

7.     Cash Management Agreement 

 

8.     Guaranty Agreement

 

9.     Indemnity Guaranty Agreement

 

10.   Collateral Assignment of
Joint and Several Cross-Default Guaranty

 

11.   Collateral Assignment of Security
Agreement

 

12.   Collateral Assignment of
Interest Rate Cap Agreement, with respect to the interest rate cap issued by
JPMorgan Chase Bank, N.A.

 

13.   Collateral Assignment of
Interest Rate Cap Agreement, with respect to the interest rate cap issued by
Credit Suisse International

 

14.   Collateral Assignment of
Interest Rate Cap Agreement, with respect to the interest rate cap issued by Bank
of America, N.A.

 

15.   Collateral Assignment of
Management Agreement, with respect to the properties located in South Carolina
only

 

16.   Environmental Indemnity
Agreement

 

1

 

17.   Operations and Maintenance
Agreement

 

18.   Subordination of Management
Agreement, with respect to the properties located in South Carolina only

 

19.   Contribution Agreement 

 

20.   Cooperation Agreement(1)

 

21.   Escrow Instructions Letter(1)

 

MORTGAGE LOAN MODIFICATION
DOCUMENTS:

 

22.   Note Splitter and Loan
Modification Agreement (Mortgage Loan) 

 

23.   Promissory Note A-1, in the
stated principal amount of $1,350,000,000.00 

 

24.   Promissory Note A-2, in the
stated principal amount of $975,000,000.00 

 

25.   Promissory Note A-3, in the
stated principal amount of $675,000,000.00

 

INTERCREDITOR AGREEMENTS:

 

26.   Intercreditor Agreement
(with respect to the corporate loan)(1)

 

27.   Intercreditor Agreement
(with respect to the mortgage and other mezzanine loans)(1)

 

(1) applies to all
levels of debt in the debt stack

 

2

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