Document:

Exhibit 10.13

Exhibit 10.13

MODIFICATION TO PROMISSORY NOTE A-2

THIS MODIFICATION TO PROMISSORY NOTE A-2 (this “Agreement”) is executed as of
September 30, 2010 (the “Execution Date”), but effective for all purposes as of July 11,
2010 (the “Effective Date”), by and between by and between HENRY HUDSON HOLDINGS
LLC, a Delaware limited liability company (“Borrower”), whose address is c/o Morgans Hotel
Group, 475 Tenth Avenue, New York, New York 10018, and BANK OF AMERICA, NATIONAL ASSOCIATION, AS
SUCCESSOR BY MERGER TO LASALLE BANK NATIONAL ASSOCIATION AS TRUSTEE FOR THE REGISTERED HOLDERS OF
THE CITIGROUP COMMERCIAL MORTGAGE SECURITIES INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES,
SERIES 2007-FL3 (“Lender”), having a place of business at 540 West Madison Street, Mail
Code IL4-540-18-04, Chicago, Illinois 60661.

WITNESSETH

A. R.1 Wachovia Bank, National Association (“Original Lender”) made a loan (the
“Loan”) to Borrower in the amount of $217,000,000.00, which Loan is evidenced by that
certain Promissory Note A-1 (representing $108,500,000.00 of the total Debt) (“Note A-1”)
and that certain Promissory Note A-2 (representing $108,500,000.00 of the total Debt), a copy of
which is attached hereto as Schedule A (“Note A-2”, as modified by this Agreement,
together with Note A-1, as modified by a Modification to Promissory Note A-1, dated as of the date
hereof, hereinafter collectively, the “Note”), each dated as of October 6, 2006, between
Borrower and Original Lender.

R.2 On October 6, 2006, Original Lender sold Note A-2 to Citigroup Global Markets Realty Corp.
(“Citigroup”), which was assigned to LaSalle Bank N.A., as Trustee for the Benefit of the
Registered Holders of the Citigroup Commercial Mortgage Securities, Inc., Commercial Mortgage Pass
Through Certificates, Series 2007-FL3 (“LaSalle”).

R.3 By virtue of a merger effective as of October 17, 2008, Bank of America, National
Association, is successor by merger to LaSalle Bank National Association.

R.4 Borrower has requested, and Lender has agreed, subject to the terms of this Agreement, to
modify certain terms and provisions of Note A-2, as more particularly set forth herein.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender hereby agree as
follows:

1. The recitals set forth above are true and correct in every respect and are incorporated
herein by reference.

2. Capitalized terms used herein but not defined shall have the meanings ascribed to them in
Note A-2.

 

 

 

3. Note A-2 is hereby modified by deleting clause (i) in Section 2.1(e) thereof and replacing
it with the following:

“(i) Lender has received written notice not more than one hundred and twenty (120) days prior
to the Maturity Date and not more than ninety (90) days after the Maturity Date that Borrower
desires to extend the Maturity Date (the “Maturity Date Notice”) which shall be accompanied
by a payment of $100,000.00,”

4. Note A-2 is hereby modified by deleting the defined term LIBOR MARGIN and replacing it with
the following:

““LIBOR Margin” shall mean 103.16197135 basis points per annum.”

5. Notwithstanding the provisions of Section 2.1(e) of Note A-2, as a condition to entering
into this Agreement and as a condition to extending the Maturity Date of the Loan pursuant to
Section 2.1(e) of Note A-2, Borrower has delivered, or shall deliver prior to execution hereof, (a)
either an extension of the existing Rate Cap Agreement (the “Cap Agreement Extension”) or a
replacement Rate Cap Agreement (the “Replacement Cap Agreement”) with a LIBOR Rate strike
price of equal to or less than 5.33% per annum and a term expiring no earlier than the Extended
Maturity Date, and in either case issued by a cap provider with a long-term unsecured debt rating
or counterparty rating of at least “A+” (or its equivalent) by each Rating Agency, which Lender
hereby agrees shall satisfy the requirements regarding the Rate Cap Agreement pursuant to Section
2.1(e) of Note A-2, together with (b) either a modification of that certain Collateral Assignment
of Interest Rate Hedge Agreement dated as of October 6, 2006, by Borrower in favor of Original
Lender (the “Existing Hedge Agreement Collateral Assignment”) referencing the Cap Agreement
Extension, if Borrower delivers to Lender the Cap Agreement Extension, or a new Collateral
Assignment of Interest Rate Hedge Agreement collaterally assigning to Lender the Replacement Cap
Agreement in a form and content substantially similar to the Existing Hedge Agreement Collateral
Assignment, if Borrower delivers to Lender the Replacement Cap Agreement.

6. Borrower and Lender hereby acknowledge and agree that (a) this Agreement shall serve as
Borrower’s Maturity Date Notice to extend the Maturity Date of the Loan to the Extended Maturity
Date, (b) Borrower is herewith delivering to Lender the requisite Extension Fee in the amount of
0.25% of the outstanding balance of Note A-2, and (c) the requirement of Borrower to deliver
$100,000 to Lender at the time of the Delivery of the Maturity Date Notice is waived and such
amount shall not be due by Borrower. Lender hereby accepts such Maturity Date Notice and, subject
to Borrower’s satisfaction of Section 5 of this Agreement, confirms that all other conditions to
such extension have been satisfied in accordance with the terms of Section 2.1 of Note A-2 and, as
such, Borrower and Lender hereby agree that October 15, 2011 shall for all intents and purposes be
the Extended Maturity Date of the Loan. Borrower and Lender further agree that Borrower is not
entitled to any further extensions of the Maturity Date or the Extended Maturity Date, and that,
notwithstanding anything else in the Loan Documents to the contrary, the Note shall be due and
payable in full on the Extended Maturity Date of October 15, 2011.

 

2

 

7. this Agreement shall serve as Borrower’s notice of its exercise of the option to extend the
Maturity Date of the Loan to the Extended Maturity Date and that Borrower
is herewith delivering to Lender the requisite payment of $100,000.00 in accordance with
Section 2.1(e) of Note A-2. Lender hereby accepts such notice of the option to extend and, subject
to Borrower’s satisfaction of Section 5 of this Agreement, confirms that all other conditions to
such extension have been satisfied in accordance with the terms of Section 2.1 of Note A-2 and, as
such, Borrower and Lender hereby agree that October 15, 2011 shall for all intents and purposes be
the Extended Maturity Date of the Loan.

8. Except as expressly provided herein, the execution of this Agreement by Lender does not and
shall not constitute a waiver of any rights or remedies to which Lender is entitled pursuant to the
Loan Documents, nor shall the same constitute a waiver of any default or Event of Default which may
have heretofore occurred or which may hereafter occur with respect to the Loan Documents. Lender
reserves the right to declare any existing default or Event of Default which subsequently comes to
the attention of Lender whether pertaining to a period prior to the Effective Date or on or after
the Effective Date.

9. This Agreement may be executed in any number of counterparts with the same effect as if all
parties hereto had signed the same document. All such counterparts shall be construed together and
shall constitute one instrument, but in making proof hereof it shall only be necessary to produce
one such counterpart.

10. This Agreement was negotiated, executed and delivered in the State of New York, and made
by Lender and accepted by Borrower in the State of New York, and the proceeds of the Note were
disbursed from the State of New York, which state the parties agree has a substantial relationship
to the parties and to the underlying transactions embodied hereby, and in all respects, including,
without limiting the generality of the foregoing, matters of construction, validity and
performance, this Agreement and the obligations arising hereunder shall be governed by, and
construed in accordance with, the laws of the State of New York applicable to contracts made and
performed in such state (without regard to principles of conflict of laws) and any applicable law
of the United States of America, except that at all times the provisions for the creation,
perfection, and enforcement of the liens and security interests created pursuant hereto and
pursuant to the other Loan Documents shall be governed by and construed according to the law of the
state in which the property encumbered by the Security Instrument is located, it being understood
that, to the fullest extent permitted by the law of such state, the law of the State of New York
shall govern the construction, validity and enforceability of all loan documents and all of the
obligations arising hereunder or thereunder. To the fullest extent permitted by law, Borrower
hereby unconditionally and irrevocably waives any claim to assert that the law of any other
jurisdiction governs this Agreement and the Note and the other Loan Documents, and this Agreement,
the Note and the other Loan Documents, shall be governed by and construed in accordance with the
laws of the State of New York.

 

3

 

11. Any legal suit, action, or proceeding against Lender or Borrower arising out of or
relating to this Agreement may at Lender’s option be instituted in any Federal or State Court in
the City of New York, County of New York, and Borrower 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 Borrower hereby irrevocably submits to the jurisdiction of any such court in any suit, action
or proceeding. Borrower does hereby designate and appoint CT Corporation System, 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 Borrower in the manner provided
herein shall be deemed in every respect effective service of process upon Borrower, in any such
suit, action or proceeding in the State of New York. Borrower (i) shall give prompt notice to
Lender of any changed address of its authorized agent hereunder, (ii) may at any time and from time
to time upon not less than ten (10) days prior written notice to Lender designate a substitute
authorized agent with an office in New York, New York (which substitute agent and office shall be
designated as the person and address for service of process), and (iii) shall promptly designate
such a substitute if its authorized agent ceases to have an office in New York, New York, or is
dissolved without leaving a successor.

12. Within this Agreement, words of any gender shall be held and construed to include any
other gender, and words in the singular number shall be held and construed to include the plural,
unless the context otherwise requires. The section headings used herein are intended for reference
purposes only and shall not be considered in the interpretation of the terms and conditions hereof.
The parties acknowledge that the parties and their counsel have reviewed and revised this
Agreement and that the normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation of this Agreement
or any exhibits or amendments hereto.

13. The terms and conditions of this Agreement may not be modified, altered or otherwise
amended except by an instrument in writing executed by all of Lender and Borrower.

14. This Agreement and the instruments, documents and agreements referenced in this Agreement
contain the entire Agreement between the parties hereto with respect to the modification of the
Loan and fully supersede all prior agreements and understanding between the parties pertaining to
such subject matter.

15. The terms and conditions of this Agreement shall be binding upon and shall inure to the
benefit of the parties hereto, their successors and permitted assigns.

16. This Agreement represents the final agreement among the parties and may not be
contradicted by the parties. There are no unwritten oral agreements among the parties.

17. Each party to this Agreement agrees that any suit, action, or proceeding brought or
instituted by any party hereto on or with respect to this Agreement or any of the other Loan
Documents or which in any way relates directly or indirectly to the obligations under this
Agreement or the other Loan Documents or any event, transaction or occurrence arising out of or in
any way connected therewith, or the dealings of the parties with respect thereto, shall be tried
only by a court and not a jury. Each party hereby expressly waives any right to a trial by jury in
any such suit, action, or proceeding. Borrower acknowledges and agrees that this provision is a
specific and material aspect of this Agreement between the parties hereto, and that Lender would
not agree to the Agreements set forth herein if this waiver of jury trial provision were not a part
of this Agreement.

 

4

 

18. Nothing contained in this Agreement or the other Loan Documents constitutes or shall be
construed as the formation of a partnership, joint venture, tenancy-in-common, or any other form of co-ownership, between Lender and Borrower or any other person or
entity or the creation of any confidential or fiduciary relationship of any kind between Lender and
Borrower or any other person or entity. Borrower acknowledges and agrees that Lender has at all
times acted and shall at all times continue to be acting only as a lender to Borrower within the
normal and usual scope of activities of a lender.

19. If any clause or provision of this Agreement is determined to be illegal, invalid or
unenforceable under any present or future law by the final judgment of a court of competent
jurisdiction, the remainder of this Agreement will not be affected thereby. It is the intention of
the parties that if any such provision is held to be illegal, invalid or unenforceable, there will
be added in lieu thereof a provision as similar in terms to such provision as is possible and be
legal, valid and enforceable.

20. Except as expressly modified pursuant to this Agreement, all of the terms, covenants and
provisions of the Loan Documents shall continue in full force and effect. In the event of any
conflicts or ambiguity between the terms, covenants and provisions of this Agreement and those of
the Loan Documents, the terms, covenants and provisions of this Agreement shall prevail.

[Signatures on following page.]

 

5

 

IN WITNESS WHEREOF Borrower and Lender have caused this Agreement to be executed as of the
date first above written.

LENDER:

BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY MERGER TO LASALLE BANK
NATIONAL ASSOCIATION AS TRUSTEE FOR THE REGISTERED HOLDERS OF THE CITIGROUP
COMMERCIAL MORTGAGE SECURITIES INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES,
SERIES 2007-FL3

By: BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY MERGER TO
LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE
HOLDERS OF WACHOVIA BANK COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE
PASS-THROUGH CERTIFICATES, SERIES 2007-WHALE 8, as Lead Lender (“Lead
Lender”) under that certain Intercreditor and Servicing Agreement, dated
as of October 6, 2006, between Lead Lender, as Lead Lender and Lender, as
Co-Lender

By and through CWCapital Asset Management LLC, solely in its capacity
as Special Servicer for the Lead Lender

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kevin Thompson
 

Name: Kevin Thompson
	 	 
	 

	 	 	 	Title: Vice President	 	 

[Signature Page to Modification of Hudson A-2 Note]

 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	HENRY HUDSON HOLDINGS LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Henry Hudson Senior Mezz LLC, a Delaware limited liability
company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability
company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a
Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Richard Szymanski
 

	 	 
	 	 	 	 	 	 	 	 	 	 	Name: Richard Szymanski	 	 
	 	 	 	 	 	 	 	 	 	 	Title: Chief Financial Officer	 	 

[Signature Page to Modification of Hudson A-2 Note]

 

 

 

SCHEDULE A

Note A-2

See attached.

 

 

 

Hudson

PROMISSORY NOTE A-2

Note Amount: $108,500,000

Maturity Date: The Final Payment Date in July, 2010.

THIS PROMISSORY NOTE A-2 (this “Note”), is made as of October 6, 2006 by the
undersigned, as maker (“Borrower”), in favor of WACHOVIA BANK, NATIONAL ASSOCIATION and its
successors or assigns, as payee (“Lender”).

R E C I T A L S:

(a) Borrower is indebted to Lender with respect to a loan (the “Original Loan”) in the
original principal amount of TWO HUNDRED SEVENTEEN MILLION and 00/100 DOLLARS ($217,000,000.00)
which is secured by the lien and security interest created, among other things, by that certain
Agreement of Consolidation and Modification of Mortgage, Security Agreement, Assignment of Rents
and Fixture Filing dated as of the date hereof from Borrower, as mortgagor, in favor and for the
benefit of Lender, as mortgagee, as security for the Loan;

(b) The Original Loan is evidenced by that certain promissory note in the original principal
sum of $217,000,000 from Borrower to Lender dated as of October 6, 2006 (the “Original Note”);

(c) The current outstanding principal balance due under the Original Loan is
$217,000,000;

(d) Borrower and Lender have severed the Original Note pursuant to the terms of that certain
note severance agreement between Borrower and Lender dated the date hereof (the “Severance
Agreement”) into two (2) separate and distinct obligations in substitution for the Original
Note represented by this Note in the amount of $108,500,000 and that certain Substitute Promissory
Note A-1 in the amount of $108,500,000 (the “Substitute Note A-1”); and

(e) Borrower and Lender intend these Recitals to be a material part of this Note.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Borrower does hereby covenant and
promise to pay to the order of Lender, without any counterclaim, setoff or deduction whatsoever, on
the Maturity Date (as hereinafter defined), in immediately available funds, at Commercial Real
Estate Services, 8739 Research Drive URP 4, NC 1075, Charlotte, North Carolina 28262 or at such
other place as Lender may designate to Borrower in writing from time to time, in legal tender of
the United States of America, the Loan Amount and all other amounts due or becoming due hereunder,
to the extent not previously paid in accordance herewith, together with all interest accrued
thereon through the end of the Interest Accrual Period in which the Loan is repaid in full, at the
Interest Rate (as hereinafter defined) to be computed on the basis of the actual number of days
elapsed in a 360 day year, on so much of the Loan Amount as is from time to time outstanding on the
first day of the applicable Interest Accrual Period (as hereinafter defined).

 

 

 

SECTION 1. DEFINITIONS

As used herein, the following terms shall have the meanings herein specified unless the
context otherwise requires. Defined terms in this Note shall include in the singular number the
plural and in the plural number the singular. All capitalized terms not otherwise defined herein
shall have the meaning ascribed to them in the Security Instrument.

“Additional Taxes” shall have the meaning set forth in Section
2.1(d) hereof.

“Assumed Note Rate” shall mean an interest rate equal to the sum of one percent (1%)
plus the LIBOR Rate as determined on the preceding Interest Determination Date plus the LIBOR
Margin.

“Board” shall mean the Board of Governors of the Federal Reserve System, and any
successor thereof.

“Capital Adequacy Rule” shall mean any law, rule or regulation regarding capital
adequacy, or any interpretation or administration thereof adopted by any Governmental Authority,
central bank or comparable agency charged with the interpretation or administration thereof, or any
request or directive regarding capital adequacy of any such Governmental Authority, central bank or
comparable agency.

“Extension Option” shall have the meaning set forth in Section 2.1(a)
hereof.

“Extension Term” shall have the meaning set forth in Section 2.1(a)
hereof.

“Final Payment Date” shall mean (i) July 12, 2010 or (ii) if the Maturity Date is
extended pursuant to Section 2.1(e) hereof, October 12, 2011. Notwithstanding the foregoing, Lender
shall have the one (1) time right to change the Final Payment Date (but only in connection with a
change to the Interest Accrual Period) by giving notice of such change to Borrower.

“First Interest Accrual Period” shall mean the period commencing on the Closing Date
and ending on, but excluding, the Payment Date first occurring after the Closing Date.

“Interest Accrual Period” shall mean the period from the fifteenth (15th)
day of each month through and including the fourteenth (14th) day of the following
month, provided that, notwithstanding the foregoing, (a) Lender shall have the one (1) time right
to change the Interest Accrual Period but only in connection with a Securitization and concurrently
with a change to the Payment Date, by giving notice of such change to Borrower, and (b) the first
(1st) Interest Accrual Period shall be the First Interest Accrual Period. FOR
CLARIFICATION, NOTWITHSTANDING ANYTHING CONTAINED IN THIS NOTE OR IN THE SECURITY INSTRUMENT, BUT
SUBJECT TO SECTION 2.1(b) HEREOF, IN ADDITION TO ANY SUMS DUE UNDER SECTION 15.01 OF THE SECURITY
INSTRUMENT, IN THE EVENT THAT A PAYMENT OR PREPAYMENT OF THE PRINCIPAL AMOUNT IS MADE DURING THE
PERIOD FROM AND INCLUDING THE FIRST DAY IN A CALENDAR MONTH AFTER THE PAYMENT DATE IN SUCH CALENDAR
MONTH THROUGH AND INCLUDING THE LAST DAY OF THE INTEREST

 

2

 

ACCRUAL PERIOD IN WHICH THE PREPAYMENT OCCURS, ALL INTEREST ON THE PRINCIPAL AMOUNT BEING PREPAID WHICH WOULD HAVE ACCRUED FROM
THE FIRST DAY OF THE INTEREST ACCRUAL PERIOD IMMEDIATELY FOLLOWING THE INTEREST ACCRUAL PERIOD IN
WHICH THE PREPAYMENT OCCURS (THE “SUCCEEDING INTEREST ACCRUAL PERIOD”) THROUGH AND
INCLUDING THE END OF THE SUCCEEDING INTEREST ACCRUAL PERIOD, CALCULATED AT (I) THE INTEREST RATE,
IF SUCH PREPAYMENT OCCURS ON OR AFTER THE INTEREST DETERMINATION DATE FOR THE SUCCEEDING INTEREST
ACCRUAL PERIOD OR (II) THE ASSUMED NOTE RATE, IF SUCH PREPAYMENT OCCURS BEFORE THE INTEREST
DETERMINATION DATE FOR THE SUCCEEDING INTEREST ACCRUAL PERIOD (THE “SHORTFALL”), SHALL BE
DUE TO LENDER AND LENDER SHALL, IN THE EVENT OF A PAYMENT OF THE DEBT IN FULL, RELEASE ITS LIENS ON
THE PROPERTY. IF THE SHORTFALL IS CALCULATED BASED UPON THE ASSUMED NOTE RATE, UPON DETERMINATION
OF THE LIBOR RATE ON THE INTEREST DETERMINATION DATE FOR THE SUCCEEDING INTEREST ACCRUAL PERIOD,
(X) IF THE INTEREST RATE FOR SUCH SUCCEEDING INTEREST ACCRUAL PERIOD IS LESS THAN THE ASSUMED NOTE
RATE, LENDER SHALL PROMPTLY REFUND TO BORROWER THE AMOUNT OF THE SHORTFALL PAID, CALCULATED AT A
RATE EQUAL TO THE DIFFERENCE BETWEEN THE ASSUMED NOTE RATE AND THE INTEREST RATE, OR (Y) IF THE
INTEREST RATE IS GREATER THAN THE ASSUMED NOTE RATE, BORROWER SHALL PROMPTLY (AND IN NO EVENT LATER
THAN THE NINTH (9TH) DAY OF THE FOLLOWING MONTH) PAY LENDER THE AMOUNT OF SUCH ADDITIONAL SHORTFALL
CALCULATED AT A RATE EQUAL TO THE EXCESS OF THE INTEREST RATE OVER THE ASSUMED NOTE RATE. BORROWER
HEREBY ACKNOWLEDGES THAT (X) THE PROVISO IN THE FIRST SENTENCE OF SECTION 15.01(b)(ii) OF THE
SECURITY INSTRUMENT SHALL BE DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: “PROVIDED
THAT, IN THE EVENT OF ANY PREPAYMENT THAT OCCURS ON ANY DATE OTHER THAN A PAYMENT DATE OR THE FINAL
PAYMENT DATE, AS APPLICABLE, THE AMOUNT PREPAID SHALL BE DEPOSITED IN AN INTEREST-BEARING ACCOUNT
UNTIL THE IMMEDIATELY SUCCEEDING PAYMENT DATE OR THE FINAL PAYMENT DATE, AS THE CASE MAY BE, AND
ALL INTEREST ACCRUING THEREON THROUGH THE DATE IMMEDIATELY PRECEDING SUCH IMMEDIATELY SUCCEEDING
PAYMENT DATE OR FINAL PAYMENT DATE, AS THE CASE MAY BE, SHALL BE REMITTED TO BORROWER, PROVIDED
THAT BORROWER ACKNOWLEDGES THAT LENDER MAKES NO REPRESENTATION OR WARRANTY AS TO THE RATE OF
RETURN.”; AND (Y) THE LAST SENTENCE OF SECTION 15.01 (b)(ii) IS SUPERSEDED HEREBY, IS HEREBY
DEEMED DELETED AND IS OF NO FURTHER FORCE AND EFFECT. NOTWITHSTANDING THE FOREGOING, IN THE EVENT
THE OUTSTANDING PRINCIPAL BALANCE OF THE LOAN IS REPAID IN FULL ON ANY DAY FROM AND AFTER THE
COMMENCEMENT OF AN INTEREST ACCRUAL PERIOD UP TO AND INCLUDING THE PAYMENT DATE THAT OCCURS IN SUCH
INTEREST ACCRUAL PERIOD, BORROWER SHALL ONLY BE REQUIRED TO PAY INTEREST THROUGH THE END OF THE
INTEREST ACCRUAL PERIOD IN WHICH SUCH PAYMENT DATE OCCURS.

 

3

 

“Interest Determination Date” shall mean (i) with respect to any Interest Accrual
Period prior to the Interest Accrual Period that commences in the month during which the
Securitization Closing Date occurs, two (2) LIBOR Business Days prior to the fifteenth
(15th) day of the calendar month in which the applicable Interest Accrual Period
commences; and (ii) with respect to each Interest Accrual Period thereafter, the date that is two
(2) LIBOR Business Days prior to the fifteenth (15th) day of the calendar month in which
such Interest Accrual Period commences, provided that notwithstanding the foregoing, (a) Lender
shall have the one (1) time right to change the Interest Determination Date by giving notice of
such change to Borrower and (b) with respect to the First Interest Accrual Period, the Interest
Determination Date shall be two (2) LIBOR Business Days prior to the Closing Date.

“Interest Rate” shall mean the rate per annum (expressed as a percentage) equal to the
LIBOR Rate plus the LIBOR Margin, or if Lender shall exercise its rights under Section 2.6, the
interest rate specified therein.

“LIBOR Business Day” shall mean any day on which banks are open for dealing in foreign
currency and exchange in London, England.

“LIBOR Margin” shall mean 96.790322580645 basis points per annum.

“LIBOR Rate” shall mean the rate per annum calculated as set forth below:

(i) With respect to each Interest Accrual Period, the rate for deposits
in Dollars, for a period equal to one month, which appears on the Dow Jones Market
Service (formerly Telerate) Page 3750 as of 11:00 a.m., London time, on the related
Interest Determination Date. If such rate does not appear on Dow Jones Market
Service Page 3750, the rate for that Interest Accrual Period shall be determined on
the basis of the rates at which deposits in Dollars are offered by any four major
reference banks in the London interbank market selected by Lender to provide such
bank’s offered quotation of such rates at approximately 11:00 a.m., London time, on
the related Interest Determination Date to prime banks in the London interbank
market for a period of one month, commencing on the first day of such Interest
Accrual Period and in an amount that is representative for a single such transaction
in the relevant market at the relevant time. Lender shall request the principal
London office of any four major reference banks in the London interbank market
selected by Lender to provide a quotation of such rates, as offered by each such
bank. If at least two such quotations are provided, the rate for that Interest
Accrual Period shall be the arithmetic mean of the quotations. If fewer than two
quotations are provided as requested, the rate for that Interest Accrual Period
shall be the arithmetic mean of the rates quoted by major banks in New York City
selected by Lender, at approximately 11:00 a.m., New York City time, on the Interest
Determination Date with respect to such Interest Accrual Period for loans in Dollars
to leading European banks for a period equal to one month, commencing on the first
day of such Interest Accrual Period and in an amount that is representative for a
single transaction in the relevant market at the relevant time. Lender shall
determine the
LIBOR Rate for each Interest Accrual Period and the determination of the LIBOR Rate
by Lender shall be binding upon Borrower absent manifest error.

 

4

 

(ii) In the event that Lender shall have determined in its reasonable
discretion that none of the methods set forth in the definition of “LIBOR Rate”
herein are available, then Lender shall forthwith give notice by telephone of such
determination, confirmed in writing, to Borrower at least one (1) day prior to the
last day of the related Interest Accrual Period. If such notice is given, the LIBOR
Rate, commencing with such related Interest Accrual Period, shall be the LIBOR Rate
in effect for the most recent Interest Accrual Period.

“Maturity Date” shall have the meaning set forth in Section 2.1(a)(iii)
hereof.

“Maturity Date Notice” shall have the meaning set forth in Section
2.1(e) hereof.

“Maximum Amount” shall have the meaning set forth in Section
5.4(a) hereof.

“Modification” shall have the meaning set forth in Section
5.2 hereof.

“Parent” shall mean, with respect to Lender, any Person Controlling Lender.

“Payment” shall have the meaning set forth in Section 2.2(a) hereof.

“Payment Date” shall mean the ninth (9th) day of each month, or if such day
is not a Business Day, the immediately preceding Business Day. Notwithstanding the foregoing,
Lender shall have the one (1) time right to change the Payment Date (but only in connection with a
change to the Interest Accrual Period) by giving notice of such change to Borrower.

“Securitization Closing Date” shall mean the date upon which a
Securitization closes.

SECTION 2. PAYMENTS AND LOAN TERMS

Section 2.1. Interest Payments.

(a) Payments under this Note, calculated in accordance with the terms hereof, shall be
due and payable as follows:

(i) interest at the Interest Rate for the First Interest Accrual Period shall be due
and payable on the Closing Date;

(ii) interest at the Interest Rate in effect for the Interest Accrual Period in which
each Payment Date occurs shall be due and payable on the Payment Date in November, 2006 and on each
subsequent Payment Date through and including the month during which occurs the Maturity Date, as
such Maturity Date may be extended from time to time pursuant to Section 2.1(e) hereof;

 

5

 

(iii) the entire outstanding Principal Amount, together with all accrued and unpaid
interest and any other charges and sums due hereon and on the other Loan Documents shall be due and
payable on July 12, 2010 (the “Maturity Date”), as such Maturity Date may be extended
pursuant to Section 2.1(e) hereof.

(b) For the sake of clarity, if Borrower shall have paid interest on the Payment Date in the
month in which the Final Payment Date occurs through the end of the then current Interest Accrual
Period and repays the Debt in full on or before the Final Payment Date, no additional interest
shall be due or payable by Borrower with respect to the period subsequent to the Payment Date.
Payments shall be paid by Borrower, without setoff or counterclaim, by wire transfer to Lender or
to such other location or account as Lender may specify to Borrower from time to time, in Federal
or other immediately available funds in lawful money of the United States of America, not later
than 2:00 PM, New York City time, on each Payment Date. If any payment hereunder or under any of
the other Loan Documents becomes due and payable on a day other than a Business Day, such payment
shall not be payable until the next succeeding Business Day; provided, however, if
such next succeeding Business Day falls within the next calendar month, such payment shall be due
and payable on the immediately preceding Business Day. If the date for any payments of principal is
extended on account of the foregoing or on account of operation of law or otherwise, interest
thereon shall be payable at the then applicable rate during such extension.

(c) Lender shall determine the LIBOR Rate as in effect from time to time on each Interest
Determination Date, and each such determination of the LIBOR Rate shall be conclusive and binding
absent manifest error.

(d) Payments made by Borrower under this Note shall be made free and clear of, and without
reduction for or on account of, any present or future income, stamp or other taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied,
collected, withheld or assessed by any Governmental Authority, excluding income and franchise taxes
of the United States of America or any political subdivision or taxing authority thereof or therein
(such non-excluded taxes being called “Additional Taxes”). If any Additional Taxes are
required to be withheld from any amounts payable to Lender hereunder or under any of the other Loan
Documents, the amounts so payable to Lender shall be increased to the extent necessary to yield to
Lender (after payment of all Additional Taxes) interest or any such other amounts payable hereunder
at the rates or in the amounts specified in this Note.

(e) Subject to the provisions of this Section 2.1(e), Borrower shall have one (1) option to
extend the term of the Loan from the original Maturity Date through October 12, 2011 (the
“Extended Maturity Date”) (the “Extension Option”, and the term extended pursuant
thereto, the “Extension Term”); provided that, with respect to the exercise
of each Extension Option (i) Lender has received written notice not more than one hundred twenty
(120) days but not less than thirty (30) days prior to the Maturity Date that Borrower desires to
extend the Maturity Date or the extended Maturity Date, as the case may be (the “Maturity Date
Notice”) which shall be accompanied by a payment of $100,000, (ii) no Event of Default has
occurred and is continuing as of the date of the Maturity Date Notice or the date the applicable
Extension Term would commence, and (iii) Borrower has delivered proof, reasonably satisfactory to
Lender, that (A) the Debt Service Coverage for the two (2) full fiscal quarters of the Borrower
immediately preceding the

 

6

 

Payment Date which is immediately prior to the Maturity Date is 1.55 to
1.00 or greater and (B) either the existing Rate Cap Agreement has been extended or a replacement
Rate Cap Agreement has been obtained in form and substance substantially similar to the Rate Cap
Agreement delivered on the Closing Date and issued by a cap provider having a long-term unsecured
debt rating of “AA” (or its equivalent) by each Rating Agency with a LIBOR Rate strike price of
seven percent (7.0%) per annum, and a term expiring no earlier than the Extended Maturity Date (and
if Lender is not the named beneficiary thereunder, the same has been pledged to Lender). Provided
that all of the foregoing conditions have been satisfied, as reasonably determined by Lender,
following the giving of the Maturity Date Notice, the term “Maturity Date” when used herein and in
the other Loan Documents shall mean the date to which the Maturity Date has been extended as if
such date was the original Maturity Date set forth herein. Simultaneously with the commencement of
the Extension Term, Borrower shall pay to Lender an extension fee (the “Extension Fee”) in
the amount of 0.25% of the outstanding principal balance of the Loan as of the date of the
applicable Maturity Date Notice less any sums previously paid to Lender pursuant to clause (i)
above (it being acknowledged that if the sums paid to Lender pursuant to clause (i) above are in
excess of those required to be paid pursuant to this sentence, Lender shall reimburse such excess
amount to Borrower). In the event that Lender determines that the conditions set forth in this
subsection (e) have not been satisfied, the exercise of the Extension Option shall be of no
further force or effect and any extension fee previously paid to Lender in connection with the
subject extension request, less any actual costs incurred by Lender in connection with its review
of Borrower’s request for an extension of the Maturity Date, shall be credited towards the
outstanding principal balance of the Loan at Maturity. All reasonable costs and expenses incurred
in connection with each request for, and, if applicable, each extension of the Maturity Date,
including without limitation, reasonable attorneys’ fees incurred by Lender and any sums incurred
in connection with the extension or replacement of the Rate Cap Agreement (and, if applicable, the
pledging of same to Lender) shall be at the sole cost and expense of Borrower and shall either be
paid by Borrower directly or on demand to Lender.

Section 2.2. Application of Payments.

(a) Each and every payment (a “Payment”) made by Borrower to Lender in accordance with
the terms of this Note and/or the terms of any one or more of the other Loan Documents and all
other proceeds received by Lender with respect to the Debt, shall be applied as follows:

(1) Payments other than Unscheduled Payments shall be applied (i) first, to all
interest (other than Default Rate Interest) which shall be due and payable with respect to
the Loan Amount pursuant to the terms hereof as of the date the Payment is received
(including any Interest Shortfalls and interest thereon to the extent permitted by
applicable law), (ii) second, to all Late Charges, Default Rate Interest or other premiums
and other sums payable hereunder or under the other Loan Documents (other than those sums
included in clause (i) of this Section 2.2(a)(1)) in such order and priority as determined by
Lender in its sole discretion and (iii) on the Maturity Date, to the Loan Amount until the
Loan Amount has been paid in full.

 

7

 

(2) Unscheduled Payments shall be applied at the end of the Interest Accrual
Period in which such Unscheduled Payments are received as a principal prepayment of the Loan
Amount to amortize the Loan Amount.

(b) To the extent that Borrower makes a Payment or Lender receives any Payment or
proceeds for Borrower’s benefit, which are subsequently invalidated, declared to be fraudulent or
preferential, set aside or required to be repaid to a trustee, debtor in possession, receiver,
custodian or any other party under any bankruptcy law, common law or equitable cause, then, to such
extent, the obligations of Borrower hereunder intended to be satisfied shall be revived and
continue as if such Payment or proceeds had not been received by Lender.

Section 2.3. Prepayments.

The Debt may not be prepaid, in whole or in part, except as set forth in Article XV
of the Security Instrument.

Section 2.4. Indemnity.

Borrower agrees to indemnify Lender and to hold it harmless from any cost, loss or expense
which Lender may sustain or incur as a consequence of (a) Borrower making a payment or prepayment
of principal on the Loan on a day which is not a Payment Date with respect thereto, (b) default by
Borrower in making any prepayment after Borrower has given a notice of prepayment, and (c) any
acceleration of the maturity of the Loan by Lender in accordance with the terms of this Note and
the other Loan Documents, including, but not limited to, any such reasonable cost, loss or expense
arising in liquidating the Loan and from interest or fees payable by Lender to lenders of funds
obtained by it in order to maintain the Loan hereunder.

Section 2.5. Increased Cost and Reduced Return.

(a) If, on or after the date hereof, the adoption of any applicable law, rule or
regulation, or any change in any applicable law, rule or regulation, or any change in the
interpretation or administration thereof by any Governmental Authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance by Lender with any
request or directive (whether or not having the force of law) of any such Governmental Authority,
central bank or comparable agency, or any such Governmental Authority, central bank or comparable
agency shall impose, modify or deem applicable any reserve (including, without limitation, any such
requirement imposed by the Board), special deposit, insurance assessment or similar requirement
against assets of, deposits with or for the account of, or credit extended by, Lender or shall
impose on Lender or on the London interbank market any other condition affecting the Loan
(excluding, in each case, with respect to any such requirement reflected in the then effective
LIBOR Rate), and the result of any of the foregoing is to increase the cost to Lender of
maintaining the Loan at the Interest Rate (based upon the LIBOR Rate), or to reduce the amount of
any sum received or receivable by Lender under this Note with respect thereto, by an amount deemed
by Lender (acting reasonably) to be material, then, within ten (10) days after written demand by
Lender, Borrower shall pay to Lender such
additional amount or amounts as will compensate Lender for such increased cost or reduction
suffered with respect to the Loan.

 

8

 

(b) If Lender shall have reasonably determined in good faith that, after the date hereof, the
adoption of any Capital Adequacy Rule has or would have the effect of reducing the rate of return
on capital of Lender (or its Parent) as a consequence of Lender’s obligations hereunder to a level
below that which Lender (or its Parent) could have achieved but for such adoption of such Capital
Adequacy Rule (taking into consideration its policies with respect to capital adequacy) by an
amount deemed by Lender (acting reasonably) to be material, then from time to time, within fifteen
(15) days after written demand by Lender, Borrower shall pay to Lender such additional amount or
amounts as will compensate Lender (or its Parent) for such reduction suffered with respect to the
Loan.

(c) By its acceptance of this Note, Lender agrees, for itself and its successors and assigns,
that it will promptly notify Borrower of any event of which it has knowledge, occurring after the
date hereof, which will entitle Lender to compensation pursuant to this Section 2.5. By acceptance
of this Note, Lender agrees, for itself and its successors and assigns, that in connection with
claiming compensation under either Section 2.5(a) or 2.5(b), Lender shall deliver to Borrower a
certificate which shall set forth in reasonable detail the basis for and the calculation of such
amounts, (which at a minimum shall set forth at least the same amount of detail in respect of the
calculation of such amount as Lender provides in similar circumstances to other similarly situated
borrowers from Lender), and (ii) in the case of a certificate delivered in respect of amounts
payable pursuant to Section 2.5(b) include a statement by Lender that it has allocated to the Loan
a proportionately equal amount of any reduction of the rate of return on Lender’s capital due to a
Capital Adequacy Rule as it has allocated to each of its other outstanding loans that are affected
similarly by such Capital Adequacy Rule. Any certificate delivered pursuant to the immediately
preceding sentence shall be conclusive in the absence of manifest error.

(d) By acceptance of this Note, Lender agrees, for itself and its successors and assigns, that
Borrower shall not be required to compensate any Lender pursuant to this Section 2.5 for any
increased costs or reductions (i) incurred more than sixty (60) days prior to the date such Lender
notifies Borrower of the event which entitles Lender to compensation pursuant to Section 2.5 and/or
(ii) unless such Lender is also seeking compensation from other similarly situated borrowers as
well.

Section 2.6. Deposits Unavailable.

In the event, and on each occasion, that (a) Lender shall have determined that Dollar deposits
in the principal amounts of the Loan are not generally available to Lender in the London interbank
market, for such periods and amounts then outstanding hereunder or that reasonable means do not
exist for ascertaining the LIBOR Rate, or (b) Lender determines that the rate at which such Dollar
deposits are being offered will not adequately and fairly reflect the cost to Lender of maintaining
the Loan at the Interest Rate (based upon the LIBOR Rate) during such month, Lender shall, as soon
as practicable thereafter, give written notice of such determination
to Borrower. In the event of
any such determination, until the circumstances giving rise to such
notice no longer exist, the Loan shall bear interest at the interest rate applicable to
the immediately preceding Interest Accrual Period.

 

9

 

Section 2.7. Illegality.

If, on or after the date of this Note, the adoption of any applicable law, rule or regulation,
or any change in any applicable law, rule or regulation, or any change in the interpretation or
administration thereof by any Governmental Authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by Lender with any request or
directive (whether or not having the force of law) of any such authority, central bank or
comparable agency shall make it unlawful or impossible for Lender to maintain the Loan at the
Interest Rate (based upon the LIBOR Rate), Lender shall forthwith give notice thereof to Borrower.
If Lender shall determine that it may not lawfully continue to maintain the Loan at the Interest
Rate (based upon the LIBOR Rate) to maturity and shall so specify in such notice, the Loan shall
bear interest at the interest rate applicable to the immediately preceding Interest Accrual
Period.

SECTION 3. DEFAULTS

Section 3.1. Events of Default.

This Note is secured by, among other things, the Security Instrument which specifies various
Events of Default, upon the happening of which all or portions of the sums owing under this Note
may be declared immediately due and payable as more specifically provided therein. Each Event of
Default under the Security Instrument or any one or more of the other Loan Documents shall be an
Event of Default hereunder.

Section 3.2. Remedies.

If an Event of Default shall occur and shall be continuing hereunder or under any other Loan
Document, interest on the Principal Amount and, to the extent permitted by applicable law, all
accrued but unpaid interest on the Principal Amount shall, commencing on the date of the occurrence
of such Event of Default, at the option of Lender, immediately and without notice to Borrower,
accrue interest at the Default Rate until such Event of Default is cured or if not cured or such
cure is not accepted by Lender, until the repayment of the Debt. The foregoing provision shall not
be construed as a waiver by Lender of its right to pursue any other remedies available to it under
the Security Instrument, or any other Loan Document, nor shall it be construed to limit in any way
the application of the Default Rate.

SECTION 4. EXCULPATION

Section 4.1. Exculpation.

Notwithstanding anything to the contrary contained in this Note or the other Loan Documents,
the obligations of Borrower hereunder shall be non-recourse except with respect to the Property and
as otherwise provided in Section 18.32 of the Security Instrument, the terms of which are
incorporated herein by reference as if fully set forth herein.

 

10

 

SECTION 5. MISCELLANEOUS

Section 5.1. Further Assurances.

Borrower shall execute and acknowledge (or cause to be executed and acknowledged) and deliver
to Lender all documents, and take all actions, required by Lender from time to time to confirm the
rights created or now or hereafter intended to be created under this Note and the other Loan
Documents, to protect and further the validity, priority and enforceability of this Note and the
other Loan Documents, to subject to the Loan Documents any property of Borrower intended by the
terms of any one or more of the Loan Documents to be encumbered by the Loan Documents, or otherwise
carry out the purposes of the Loan Documents and the transactions contemplated thereunder;
provided, however, that no such further actions, assurances and confirmations shall
increase Borrower’s obligations, or decrease Borrower’s rights, under this Note or any of the Loan
Documents.

Section 5.2. Modification, Waiver in Writing.

No modification, amendment, extension, discharge, termination or waiver (a
“Modification”) of any provision of this Note, the Security Instrument or any one or more
of the other Loan Documents, nor consent to any departure by Borrower therefrom, shall in any event
be effective unless the same shall be in a writing signed by the party against whom enforcement is
sought, and then such waiver or consent shall be effective only in the specific instance, and for
the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or
demand on, Borrower shall entitle Borrower to any other or future notice or demand in the same,
similar or other circumstances. Lender does hot hereby agree to, nor does Lender hereby commit
itself to, enter into any Modification. However, in the event Lender does ever agree to a
Modification, the making and the conditions for the making of such Modification shall only be upon
the terms and conditions set forth in the Security Instrument and such Modification.

Section 5.3. Costs of Collection.

Borrower agrees to pay all costs and expenses of collection incurred by Lender, in addition to
principal, interest and late or delinquency charges (including, without limitation, reasonable
attorneys’ fees and disbursements) and including all costs and expenses incurred in connection with
the pursuit by Lender of any of its rights or remedies referred to in Section 3 hereof or its
rights or remedies referred to in any of the Loan Documents or the protection of or realization of
collateral or in connection with any of Lender’s collection efforts, whether or not suit on this
Note, on any of the other Loan Documents or any foreclosure proceeding is filed, and all such costs
and expenses shall be payable on demand, together with interest thereon from the date due until the
date paid in full at the Default Rate thereon, and also shall be secured by the Security Instrument
and all other collateral at any time held by Lender as security for Borrower’s obligations to
Lender.

 

11

 

Section 5.4. Maximum Amount.

(a) It is the intention of Borrower and Lender to conform strictly to the usury and
similar laws relating to interest and the collection of other charges from time to time in force,
and all agreements between Borrower and Lender, whether now existing or hereafter arising and
whether oral or written, are hereby expressly limited so that in no contingency or event
whatsoever, whether by acceleration of maturity hereof or otherwise, shall the amount paid or
agreed to be paid in the aggregate to Lender as interest or other charges hereunder or under the
other Loan Documents or in any other security agreement given to secure the Debt, or in any other
document evidencing, securing or pertaining to the Debt, exceed the maximum amount permissible
under applicable usury or such other laws (the “Maximum Amount”). If under any
circumstances whatsoever fulfillment of any provision hereof, or any of the other Loan Documents,
at the time performance of such provision shall be due, shall involve transcending the Maximum
Amount, then ipso facto, the obligation to be fulfilled shall be reduced to the Maximum Amount.
For the purposes of calculating the actual amount of interest or other charges paid and/or payable
hereunder, in respect of laws pertaining to usury or such other laws, all charges and other sums
paid or agreed to be paid hereunder to the holder hereof for the use, forbearance or detention of
the Debt, outstanding from time to time shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread from the date of disbursement of the proceeds of this
Note until payment in full of all of the Debt, so that the actual rate of interest on account of
the Debt is uniform through the term hereof. The terms and provisions of this Section 5.4 shall
control and supersede every other provision of all agreements between Borrower or any endorser and
Lender.

(b) If under any circumstances Lender shall ever receive an amount which would exceed the
Maximum Amount, such amount shall be deemed a payment in reduction of the Loan Amount owing
hereunder and any other obligation of Borrower in favor of Lender, and shall be so applied in
accordance with Section 2.2 hereof, or if such excessive interest exceeds the unpaid balance of the
Loan Amount and any other obligation of Borrower in favor of Lender, the excess shall be deemed to
have been a payment made by mistake and shall be refunded to
Borrower.

Section 5.5. Waivers.

Borrower hereby expressly and unconditionally waives presentment, demand, protest, notice of
protest or notice of any kind, including, without limitation, any notice of intention to
accelerate and notice of acceleration, except as expressly provided herein, and in connection with
any suit, action or proceeding brought by Lender on this Note, any and every right it may have to
(a) a trial by jury, (b) interpose any counterclaim therein (other than a counterclaim which can
only be asserted in the suit, action or proceeding brought by Lender on this Note and cannot be
maintained in a separate action) and (c) have the same consolidated with any other or separate
suit, action or proceeding.

Section 5.6. Governing Law.

This Note and the obligations arising hereunder shall be governed by, and construed in
accordance with, the laws of the State of New York applicable to contracts made and performed in
such State and any applicable law of the United States of America.

 

12

 

Section 5.7. Headings.

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

Section 5.8. Assignment.

Lender shall have the right to transfer, sell and assign this Note in accordance with
Section 17.01 of the Security Instrument. All references to “Lender” hereunder shall be
deemed to include the assigns of the Lender.

Section 5.9. Severability.

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

Section 5.10. Joint and Several.

If Borrower consists of more than one Person or party, the obligations and liabilities
of each such Person or party hereunder shall be joint and several.

Section 5.11. Substitute Note.

This Note is “Substitute Note A-2” executed and delivered pursuant to the Severance Agreement.
The principal indebtedness evidenced hereby is a portion of the principal indebtedness evidenced by
the Original Note in the original principal sum of $217,000,000 made by Borrower to Lender.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

13

 

IN WITNESS WHEREOF, this Note has been duly executed by the Borrower the day and year first
written above.

	 	 	 	 	 
	 	BORROWER:

HENRY HUDSON HOLDINGS LLC, a

Delaware limited liability company

 	 
	 	By:  	/s/ Marc S. Gordon
 	 
	 	 	Name:  	Marc S. Gordon 	 
	 	 	Title:  	Authorized Signatory	 
	 	 	Borrower’s Tax ID/SS#: 13-4035148Exhibit 10.15

Exhibit 10.15

Prepared by and after recording
return to:

Nixon Peabody LLP

437 Madison Avenue

New York, New York 10022

Attn: Arthur J. Rosner, Esq.

Property: 356 West 58th Street

New York, New York

MODIFICATION OF AGREEMENT OF

CONSOLIDATION AND MODIFICATION OF MORTGAGE, SECURITY

AGREEMENT, ASSIGNMENT OF RENTS AND FIXTURE FILING

THIS MODIFICATION OF AGREEMENT OF CONSOLIDATION AND MODIFICATION OF MORTGAGE, SECURITY
AGREEMENT, ASSIGNMENT OF RENTS AND FIXTURE FILING (this “Agreement”) is executed as of
September 30, 2010 (the “Execution Date”), but effective for all purposes as of July 11,
2010 (the “Effective Date”), by and between HENRY HUDSON HOLDINGS LLC, a Delaware limited
liability company (“Borrower”), whose address is c/o Morgans Hotel Group, 475 Tenth
Avenue, New York, New York 10018, and BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY MERGER
TO LASALLE BANK NATIONAL ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS OF WACHOVIA BANK
COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-WHALE 8
(“Lender”), having a place of business at 540 West Madison Street, Mail Code IL4-540-18-04,
Chicago, Illinois 60661.

R E C I T A L S:

A. Wachovia Bank, National Association (“Original Lender”) made a loan (the
“Loan”) to Borrower in the amount of $217,000,000.00, which Loan is evidenced by that
certain Promissory Note A-1 (representing $108,500,000.00 of the total Debt) (“Note A-1”)
and that certain Promissory Note A-2 (representing $108,500,000.00 of the total Debt) (“Note
A-2”, together with Note A-1, as modified by the A-1 Note Modification Agreement and A-2 Note
Modification Agreement (as such terms are hereinafter defined), respectively, hereinafter
collectively, the “Note”), dated as of October 6, 2006, between Borrower and Original
Lender.

B. In order to secure Borrower’s obligations under the Note, Original Lender and Borrower
entered into that certain Agreement of Consolidation and Modification of Mortgage, Security
Agreement, Assignment of Rents and Fixture Filing, dated as of October 6, 2006 (the
“Consolidation Agreement”), which Consolidation Agreement was recorded in the Office of the
City Register, New York County (the “Office”) on December 11, 2006, with City Register File
No. (“CRFN”) 2006000679020 (see Schedule A for full mortgage schedule), which
Consolidation Agreement encumbers certain property located at 356 West 58th Street, New
York, New York, and which is more particularly described on Schedule A attached hereto.

 

 

C. The Consolidation Agreement was assigned by Original Lender to LaSalle Bank National
Association, as Trustee for the Benefit of the Holders of Wachovia Bank Commercial Mortgage Trust,
Commercial Mortgage Pass-Through Certificates, Series 2007-WHALE 8 (“LaSalle”) pursuant to
an Assignment of Mortgage, dated as of June 27, 2007, and recorded in the Office on November 27,
2007 as CRFN 2007000587889.

D. By virtue of a merger effective as of October 17, 2008, Bank of America, National
Association, has succeeded to the interests of LaSalle in and to the Loan Documents.

E. Borrower has requested, and Lender has agreed, to modify the Note by and in accordance with
the terms of that certain Modification to Promissory Note A-1 (the “A-1 Note Modification
Agreement”) and that certain Modification to Promissory Note A-2 (the “A-2 Note
Modification Agreement”, together with the A-1 Note Modification Agreement, hereinafter
collectively, the “Note Modification Agreement”), having an execution date the same date as
the Execution Date hereof, between Lender and Borrower, as more particularly set forth therein.

F. In connection with the Note Modification Agreement, Borrower and Lender have agreed to
modify certain terms and provisions of the Consolidation Agreement.

G. This Agreement, together with the Note Modification Agreement are hereinafter referred to
collectively as the “Modification Agreements.”

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Borrower and Lender hereby agree as follows:

A G R E E M E N T S:

1. Definitions.  All capitalized terms not defined shall have the meanings ascribed to such terms in the
Consolidation Agreement.

2. Principal Reduction; Outstanding Principal Balance of the Loan; Special Servicing
Fee.

(a) Concurrently with the execution of this Agreement, Lender acknowledges the receipt of the
following:

(i) a wire transfer from Borrower of good funds equal to $7,918,668.75, which amount has been
applied to reduce the principal amount due under Note A-1; and

(ii) a wire transfer from the Escrow Accounts of good funds equal to $7,918,668.75, which wire
transfer was made by Lender pursuant to Borrower’s authorization, and which amount has been applied
to reduce the principal amount due under Note A-2.

(b) By virtue of Lender’s receipt of the funds set forth in Section 2(a)(i) above:

(i) Lender and Borrower hereby acknowledge and agree that the outstanding principal amount of
the Loan allocated to Note A-1 is presently $100,581,331.25;

 

2

 

(ii) Lender and Borrower hereby acknowledge and agree that the outstanding principal amount of
the Loan allocated to Note A-2 is presently $100,581,331.25; and

(iii) The total principal amount thus secured hereunder is $201,162,662.50.

(c) Concurrently with the execution of this Agreement, Lender acknowledges that Borrower has
delivered by wire transfer to CWCapital Asset Management LLC good funds equal to $1,085,000.00 as a
special servicing fee in connection with the Modification Agreements.

3. Amendment to Definition of Debt Service Coverage.

(a) As of the Effective Date, the definition of “Debt Service Coverage” in the Consolidation
Agreement shall mean the following only with respect to its use in Section 2.1(e) of the Note:

“Debt Service Coverage” shall mean the quotient obtained by dividing Adjusted Net Cash
Flow by the sum of the (a) aggregate payments of interest, principal and all of the sums due for
such specified period under the Note (determined as of the date the calculation of Debt Service
Coverage is required or requested hereunder) and (b) aggregate payment of interest, principal and
all other sums due for such specified period pursuant to the terms of subordinate or mezzanine
financing, if any, then affecting or related to the Property or, if Debt Service Coverage, is being
calculated in connection with a request for consent to any subordinate or mezzanine financing, then
proposed. In determining Debt Service Coverage, the applicable interest rate for the Loan and for
any floating rate loan referred to in clause (b) above, if any, shall be the LIBOR Margin, with
respect to the Loan, and the applicable margin over the applicable index, with respect to any other
loan referred to in clause (b) above.

4. Cash Management.

(a) Section 5.05(a) of the Consolidation Agreement is hereby amended by deleting clause (ix)
thereof and replacing it with the following:

“(ix) ninth, the balance, if any, to the Curtailment Reserve Sub-Account.”

(b) Section 5.11 of the Consolidation Agreement is hereby amended by (i) deleting the proviso
in the first sentence thereof commencing with “provided, that whenever, from time to time,” and
continuing through the end of the first sentence, and (ii) adding the following sentence to the end
thereof: “In furtherance of the foregoing, Lender shall be permitted to apply funds in the
Curtailment Reserve Sub-Account toward any and all special servicing fees incurred by Lender while
the Loan is outstanding, which special servicing fees are due and payable monthly, in advance, on
the first (1st) day of each calendar month during any Special Servicing Period (as that
term is defined in that certain Pooling and Servicing Agreement, dated as of June 1, 2007, among
Wachovia Large Loan, Inc., as Depositor, Wachovia Bank, National Association, as Servicer, Wachovia
Bank, National Association, as Special Servicer and LaSalle Bank National Association, as Trustee),
in the amount of 0.0208% (i.e., 0.000208) of the then outstanding principal balance of the Note per
month.”

 

3

 

5. Rate Cap Agreement.

 (a) 
The fifth sentence of Section 5.10 of the Consolidation Agreement is hereby amended to
read in its entirety as follows:

“In the event that (a) the long-term unsecured debt obligations or the counterparty rating
of the Counterparty are downgraded by the Rating Agency below “A+” or its equivalent or (b)
the Counterparty shall default in any of its obligations under the Rate Cap Agreement,
Borrower shall, at the request of Lender, promptly but in all events within thirty (30)
days, replace the Rate Cap Agreement with an agreement having identical payment terms and
maturity as the Rate Cap Agreement and which is otherwise in form and substance
substantially similar to the Rate Cap Agreement and otherwise acceptable to Lender with a
cap provider with a long-term unsecured debt or counterparty rating of at least “A+” (or its
equivalent) by each Rating Agency, or which will allow each Rating Agency to reaffirm their
then current ratings of all rated certificates issued in connection with the Securitization.

(b) The definition of Rate Cap Agreement in Section 1.01 of the Consolidation Agreement is
hereby amended to read in its entirety as follows:

“Rate Cap Agreement” shall mean that certain interest rate protection agreement
(together with the confirmation and schedules related thereto) with a notional amount which
shall not at any time be less than the Principal Amount and a LIBOR strike equal to or less
than 5.33% per annum entered into by Borrower in accordance with the terms hereof or the
other Loan Documents and any similar interest rate cap or collar agreements subsequently
entered into in replacement or substitution therefor by Borrower with respect to the Loan.

6. Cooperation.

(a) From the Execution Date until the earlier of (x) the date that Lender files an action to
foreclose against the Property (the “Foreclosure Action”) after the occurrence of an Event
of Default (the “Filing Date”) and (y) the satisfaction in full of the Note and all other
obligations of Borrower under the Loan Documents, Borrower shall: (i) provide Lender with
concurrent copies of all material written notices in any way related to the Property sent by
Borrower, and prompt copies of all material written notices in any way related to the Property
received by Borrower (it being understood that Borrower shall have no obligation to provide
correspondence with Borrower’s attorneys’ accountants, or investors), (ii) in connection with any
third party action, whether threatened or filed, in any way related to the Property, participate in
meetings with Lender and its counsel regarding factual matters and appear for depositions and/or
witness preparation sessions as may be reasonably requested by Lender’s counsel, (iii) maintain all
material documents, agreements, surveys, plats, approvals, written notices and other items relating
to the Property, and (iv) provide copies of such documents, agreements, surveys, plats, approvals,
written notices, and all other items relating to the Property in the possession of Borrower, and/or
its Affiliates, including, without limitation, Guarantor, as Lender or its counsel may reasonably
request.

 

4

 

(b) At all times following the Execution Date, Borrower agrees to execute and deliver, or to
cause to be executed and delivered, such documents and to do, or cause to be done, such other acts
and things as might reasonably be requested by Lender to assure that the benefits of this Agreement
are realized by the parties hereto. Borrower specifically agrees to assist Lender and the entity
designated by Lender (which entity may be Lender) (the “Transferee”) to take title to the
Property in the event of Lender’s foreclosure thereof in the disposition of any claims asserted
against or on behalf of the Property or Lender or the Transferee in connection with the Property
which arose prior to the Filing Date.

7. Covenants Related to Future Default

(a) Non-Contested Foreclosure. Borrower and Guarantor knowingly and voluntarily
acknowledge that Lender has the right to file the Foreclosure Action upon the occurrence of an
Event of Default in accordance with the Loan Documents. Borrower and Guarantor knowingly and
voluntarily covenant and agree that, neither Borrower nor any of its Affiliates, including, without
limitation, Guarantor, other than as specifically permitted in Section 7(e) below, shall, now or at
any time in the future, contest, challenge, oppose, or seek any legal or equitable remedy to
prevent or oppose or avoid foreclosure of the Property, institute any insolvency proceeding (or
acquiesce in or fail to contest any involuntary insolvency proceeding), or otherwise attempt to
delay, hinder, prevent or avoid Lender’s prosecution of the Foreclosure Action or contest or
challenge the validity thereof or take any appeal thereof, and hereby agree, after the issuance of
a judgment of foreclosure (the “Foreclosure Order”) in said Foreclosure Action, to
diligently and in good faith cooperate with Lender to effect any: (i) foreclosure by court action
or otherwise, or any other proceedings instituted by Lender in connection with realizing upon the
security granted pursuant to the Loan Documents, or (ii) action to quiet title which may be
instituted by Lender to perfect its right, title, and interest in the Property. For the avoidance
of doubt, it is the intention of Borrower and Guarantor to fully, completely, knowingly and
voluntarily waive, now and forever, any and all defenses or rights to contest foreclosure, be they
in law or equity, now and forever, except those specifically permitted to Borrower under Section
7(e) below. Subject to the terms hereof, including, but not limited to Section 7(e) below,
Borrower and Guarantor, when requested by Lender shall execute and deliver to Lender a stipulation
confirmatory of the foregoing and any and all other pleadings or other documents as Lender may
reasonably request to evidence Borrower’s and Guarantor’s knowing and voluntary waiver, now and
forever, of defenses and agreement not to contest, challenge, oppose, appeal or avoid the
Foreclosure Action in a form and content reasonably acceptable to, and prepared by, Lender within
two (2) business days of Lender’s request, which stipulation and other pleadings may be filed by
Lender in the Foreclosure Action. Subject to the terms hereof, including, but not limited to
Section 7(e) below, Borrower and Guarantor knowingly and voluntarily waive, now and forever, the
right to require a hearing in connection with any such Foreclosure Action, for appointment of a
receiver for the Property or other suit or proceedings and further knowingly and voluntarily waive
the right, now and forever, to require sale of the Property in any such suit to be made in parcels.
Borrower and Guarantor may be named as defendants in the Foreclosure Action or other proceeding.

(i) Upon the issuance of the Foreclosure Order, Borrower will execute and deliver any and all
documents reasonably requested by Lender to (A) effectuate the enforcement of the Foreclosure Order
and foreclosure sale, including, but not limited to, powers of attorney in
favor of Lender, and (B) permit the issuance of an owner’s title insurance policy reflecting
fee simple title to the Property vested in Transferee without exception for any interest in the
Property in favor of Borrower or any of its Affiliates, including, without limitation, Guarantor.

 

5

 

(b) Action Constituting a Contest; Not a Limitation of Remedies. Other than as
specifically permitted in Section 7(e) below, if Borrower or any of its Affiliates, including,
without limitation, Guarantor, asserts any defenses or contests, challenges, opposes, appeals or
seeks to avoid or seek an injunction prohibiting Lender’s right to proceed with the Foreclosure
Action, appeals any judgment obtained in said Foreclosure Action, or otherwise contests,
challenges, hinders or delays the granting of a judgment of foreclosure or a foreclosure sale in
such Foreclosure Action, then any of such actions shall constitute a “Contest,” as defined in
Section 18.32 of the Consolidation Agreement, and, in addition to Borrower and Guarantor being
liable to Lender for all damages which Lender may suffer as a result thereof and as set forth in
said Section 18.32 of the Consolidation Agreement, Borrower and Guarantor knowingly and voluntarily
acknowledge and agree that they shall be liable to Lender for all reasonable attorneys’ fees and
court costs incurred by Lender related to such a Contest. Nothing in the foregoing sentence shall
limit or impair or be deemed to limit or impair the liability and obligations of Borrower and its
Affiliates, including, without limitation, Guarantor, to Lender under the Loan Documents in the
event that Lender obtains a judgment that Borrower or any of its Affiliates, including without
limitation, Guarantor, has, other than in good faith, as provided in Section 7(e) below, engaged in
a Contest regarding Lender’s right to proceed with the Foreclosure Action as provided for in this
Agreement.

(c) Delivery of Items. Within three (3) Business Days of request by Lender following
the occurrence of an Event of Default, Borrower agrees to execute and/or deliver (to the extent in
Borrower’s possession, or otherwise obtainable by exercise of commercially reasonable efforts), as
applicable, the following items to Lender:

(i) Authorizations. Original or certified copies of all authorization documents
indicating the legal entity status of Borrower and Guarantor, together with such accompanying
certificates, consents, and approvals as may be required by Lender;

(ii) Books and Records. Certified copies of all books and records relating to the
Property and Borrower’s business operations thereon, together with income and expense statements
covering the operation of the Property for the term of Borrower’s ownership;

(iii) Construction Documents. Certified copies of all plans and specifications,
engineering data, as built drawings, blue prints, drawings, maps, plans, permits, certificates of
occupancy, general contractor agreements, architects’ agreements, engineer agreements and other
agreements relating to, affecting or engaged in connection with the construction or renovation of
the Property together with a schedule of all contractors, subcontractors, engineers, testing
companies and architects engaged in connection with the construction, renovation, alteration, or
any other construction-related work affecting any of the Property;

(iv) Leases. Certified copies of the Leases;

(v) Licenses. Certified copies of any licenses and permits which affect the Property;

(vi) Tax Bills. Certified copies of all real and personal property tax bills relating
to the Property for the prior two (2) years;

 

6

 

(vii) Title Documents. Any affidavits, releases, satisfactions, certificates or other
corrective title documents as may be required by Lender or its title insurer in order to convey to
Transferee marketable fee simple title to the Property subject only to the Permitted Encumbrances
and the applicable Leases;

(viii) Test Reports. Certified copies of all soil boring tests, environmental audits,
engineering reports and related information, if any, which Borrower has acquired or caused to be
acquired with respect to the Property;

(ix) Utility Bills. Certified copies of all current utility bills for all utilities
servicing the Property including, without limitation, water, sewer, electric, and gas bills; and

(x) Other Documents. Certified copies of any and all other documents or instruments
relating to the Property, Borrower or the Guarantor, as may be reasonably requested by Lender.

(d) Authorization of Lender to Contact Parties. Without limiting or impairing
Lender’s rights as set forth in the Loan Documents, following Lender filing the Foreclosure Action,
Borrower authorizes Lender, the Transferee and their respective employees, officers, agents,
representatives, directors, consultants, accountants or other designees (collectively, the
“Lender Parties”), without any prior approval or authorization, to communicate fully, give
direction to third parties, contact directly and meet and otherwise coordinate with any and all
parties deemed necessary by Lender Parties, in their sole discretion, in connection with the
Property (including, without limitation, the construction, development, marketing, management,
operation, financing, leasing and sale thereof), all without liability to or consent of, further
notice to or any participation by Borrower or any of its Affiliates, including, without limitation,
Guarantor. It is expressly agreed and acknowledged that the right of Lender Parties hereunder
shall include, without limitation, the unilateral and unqualified right to discuss the status of
the Property, direct third parties to act or perform services with respect to the Property, share
information directly, and negotiate with any engineers, architects, contractors, subcontractors,
managers, management companies, leasing agents, brokers, operators, tenants, purchasers, builders,
suppliers, governmental agencies, legal counsel, litigants in actions and other third parties with
respect to the Property. In addition to the foregoing, Borrower shall use commercially reasonable
efforts to cooperate with Lender, at Lender’s sole cost and expense, such cost and expense shall be
limited to the actual, verifiable and reasonable third party out-of-pocket costs and expenses of
Borrower in all respects in connection with the resolution of any litigation, mechanics liens,
insurance claims or other disputes related to Borrower’s period of ownership.

(e) Notwithstanding any other provision of this Agreement, (i) nothing in this Agreement shall
be deemed to prevent Borrower or Guarantor from seeking, in good faith,
injunctive relief to contest Lender’s right of foreclosure or other exercise by Lender of any
remedies solely on the grounds that either (A) an Event of Default has not occurred or (B) Lender
has failed to comply in all material respects with the requirements of the Loan Documents relating
to the exercise of such remedy thereunder, and (ii) the provisions of the last full paragraph of
Section 18.32 of the Original Deed of Trust shall be applicable to any such contest (a “Contest” as
defined in such section).

 

7

 

8. Additional Amendments to Loan Agreement.

(a) Notices. As of the Effective Date, the addresses for the respective parties
contained in Section 11.01 of the Consolidation Agreement are amended as follows:

If to Lender:

BANK OF AMERICA, NATIONAL ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS OF WACHOVIA
BANK COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2007-WHALE 8

540 West Madison Street

Mail Code IL4-540-18-04

Chicago, Illinois 60661

With a copy to:

CWCapital Asset Management LLC

701 13th Street NW, #1000

Washington, DC 20005

Attn: Mr. Kevin Thompson

With a copy to:

Nixon Peabody LLP

437 Madison Avenue

New York, NY 10022

Attn: Arthur J. Rosner, Esq. and

Andrew Glincher, P.C., Esq.

If to Borrower:

Henry Hudson Holdings LLC

c/o Morgans Hotel Group

475 Tenth Avenue

New York, New York 10018

Attn: General Counsel

 

8

 

With a copy to:

Hogan Lovells US LLP

Columbia Square

555 Thirteenth Street, NW

Washington, DC 20004

Attn: Bruce Gilchrist, Esq.

9. Expenses. Except as otherwise expressly provided in this Agreement, each party
shall pay all of its own costs, expenses and fees associated or in any way pertaining to this
Agreement, including, without limitation, the consummation of the transactions contemplated by this
Agreement; provided, however, that Borrower shall pay contemporaneously with the delivery of a deed
in the Foreclosure Action (i) any documentary stamps or other transfer taxes required to be affixed
to or required to be paid in connection with such deed, together with the costs of recording such
deed and any and all other documents to be recorded in connection therewith; and (ii) the cost of
updating title and the premium for an ALTA 2006 owner’s title policy to be obtained by Lender in
connection with the delivery of such deed, which title policy shall (a) be in the amount of the bid
in foreclosure (or such lesser amount as Lender shall accept), (b) omit all general exceptions set
forth in such policy (other than matters which would be deleted by delivery of a current boundary
survey to the title company), and (c) include such reinsurance (with such reinsurers) as Lender may
require, together with direct access agreements with such reinsurers. Nothing in this Agreement
shall limit or impair or be deemed to limit or impair Lender’s rights to a deficiency judgment in
the Foreclosure Action, or otherwise, against Borrower or Guarantor in accordance with the Loan
Documents or otherwise to enforce any obligation of any Guarantor. The obligations of Borrower and
Guarantor set forth in this Section 9 shall survive the termination or other expiration of this
Agreement.

10. Representations and Warranties

(a) Borrower does hereby make the following representations and warranties to Lender as of the
Execution Date in order to induce Lender to enter into this Agreement, it being hereby acknowledged
by Borrower that Lender is relying upon such representations and warranties as a material
inducement to Lender’s execution hereof:

(i) All representations and warranties made by Borrower in the Loan Documents are
true and correct as of the Execution Date (except in the case for representations
and warranties which by their terms are expressly applicable only to an earlier
date, in which event such representations and warranties shall be true and correct
on such earlier date);

(ii) Borrower is in full compliance with all covenants, agreements and obligations
of Borrower set forth in the Loan Documents, as modified by the Modification
Agreements, Lender is in full compliance with all covenants, agreements and
obligations of Lender set forth in the Loan Documents, as modified by the
Modification Agreements, and no default exists thereunder, and no event or
circumstance exists which with the passage of time or the giving of notice, or both, would constitute an Event of Default under the Loan Documents
subject to any defaults cured on the date hereof by this Agreement or otherwise;

 

9

 

(iii) Borrower has no set-offs, counterclaims, defenses or other causes of action
against Lender arising out of the Loan, the Loan Documents, any other indebtedness
of Borrower to Lender, or otherwise, and to the extent any such set-offs,
counterclaims, defenses or other causes of action may exist, whether known or
unknown, said items are hereby knowingly and voluntarily waived, now and forever, by
Borrower;

(iv) Lender has duly performed all its obligations under the Loan Documents, and,
except as set forth herein and in the Note Modification Agreement, Lender has no
obligation to extend any financial accommodations to Borrower under the Loan
Documents;

(v) Borrower is the sole legal and beneficial owner of (A) that part of the Property
owned in fee simple by Borrower, and (B) that part of the Property to which Borrower
holds a leasehold interest, all as more particularly set forth in that certain Loan
Policy of Title Insurance No. H65-0642913, having an Effective Date of October 6,
2006, and issued by Commonwealth Land Title Insurance Company in connection with the
Loan (the “Title Policy”);

(vi) The Modification Agreements constitute the legal, valid and binding obligations
of Borrower enforceable in accordance with their terms, and the execution and
delivery of Modification Agreements do not contravene, result in a breach of, or
constitute a default under any mortgage, loan agreement, indenture or other contract
or agreement to which Borrower is bound, nor would such execution and delivery
constitute a default with the passage of time or the giving of notice, or both;

(vii) The lien of the Consolidation Agreement is valid and subsisting and shall
remain an enforceable and valid first lien against the Property until the Debt is
paid in full;

(viii) Borrower has thoroughly read and reviewed the terms and provisions of the
Modification Agreements and is familiar with same, and Borrower has entered into the
Modification Agreements voluntarily, without duress or undue influence of any kind,
and with the advice and representation of legal counsel selected by Borrower;

(ix) The financial statements of Borrower and Guarantor heretofore delivered to
Lender are complete and accurate in all material respects, all financial data and
reports of Borrower and Guarantor, and all financial data and reports with respect
to the Property, presented to Lender are based on the actual books and records of
Borrower and Guarantor and have been prepared in conformance with Borrower’s normal
and customary accounting procedures, and any such financial statements that are audited have been prepared in accordance with generally accepted accounting
principles consistently applied;

 

10

 

(x) Neither Borrower nor Guarantor is insolvent or bankrupt. The consummation of
the transactions contemplated by the Modification Agreements will not render
Borrower or Guarantor insolvent or constitute a fraudulent conveyance or fraudulent
transfer under any applicable law. Neither Borrower nor Guarantor has made any
general assignment for the benefit of its creditors. No proceeding seeking (i)
relief for Borrower or Guarantor under any bankruptcy or insolvency law, (ii) the
rearrangement or readjustment of debt of Borrower or Guarantor, (iii) the
appointment of a receiver, custodian, liquidator or trustee to take possession of
substantially all of the assets of Borrower or Guarantor, or (iv) the liquidation of
Borrower or any of its members, has been commenced or is threatened;

(xi) All federal, state and other tax returns of Borrower and Guarantor required by
law to be filed by them have been filed, and all federal, state and other taxes,
assessments, fees and other governmental charges imposed upon Borrower and Guarantor
or upon any of their properties or assets, which are due and payable, have been
paid;

(xii) There are no judgments, orders, suits, actions, garnishments, attachments or
proceedings by or before any court, commission, board or other governmental body
pending, or to the knowledge of Borrower or Guarantor threatened, which (A) involve
or affect, or will involve or affect, the Property or the validity or enforceability
of the Modification Agreements, or the Loan Documents, or (B) involve any risk of
any lien, judgment or liability being imposed upon Borrower or the Property that
could materially adversely affect the financial condition of Borrower or Guarantor
or the ability of Borrower or Guarantor to observe or perform fully their respective
agreements and obligations under the Modification Agreements or under the Loan
Documents; and

(xiii) This Agreement and the Note Modification Agreement are included in the
defined term “Loan Documents”.

11. Release of Claims

(a) BORROWER, ON BEHALF OF ITSELF AND ITS SUCCESSORS AND ASSIGNS (THE “BORROWER RELEASE
PARTIES”), HEREBY FULLY, FINALLY AND COMPLETELY RELEASE AND FOREVER DISCHARGE LENDER, LENDER’S
SERVICERS, AND THEIR RESPECTIVE AFFILIATES, SUBSIDIARIES, PARENTS, OFFICERS, SHAREHOLDERS,
DIRECTORS, EMPLOYEES, ATTORNEYS, AGENTS AND PROPERTIES, PAST, PRESENT AND FUTURE, AND THEIR
RESPECTIVE HEIRS, PERSONAL REPRESENTATIVES, DISTRIBUTEES, SUCCESSORS AND ASSIGNS (COLLECTIVELY AND
INDIVIDUALLY, THE “LENDER RELEASE PARTIES”), OF AND FROM ANY AND ALL CLAIMS, CONTROVERSIES,
DISPUTES, LIABILITIES, OBLIGATIONS, DEMANDS, DAMAGES, DEBTS, LIENS, ACTIONS

 

11

 

  AND CAUSES OF ACTION OF ANY AND EVERY NATURE WHATSOEVER, KNOWN OR UNKNOWN, WHETHER AT LAW, BY STATUTE OR IN
EQUITY, IN CONTRACT OR IN TORT, UNDER STATE OR FEDERAL JURISDICTION, AND WHETHER OR NOT THE
ECONOMIC EFFECTS OF SUCH ALLEGED MATTERS ARISE OR ARE DISCOVERED IN THE FUTURE, WHICH THE BORROWER
RELEASE PARTIES HAVE AS OF THE EXECUTION DATE OR MAY CLAIM TO HAVE AGAINST THE LENDER RELEASE
PARTIES ARISING OUT OF OR WITH RESPECT TO ANY AND ALL TRANSACTIONS RELATING TO THE LOAN OR THE LOAN
DOCUMENTS OCCURRING ON OR BEFORE THE EXECUTION DATE, INCLUDING ANY LOSS, COST OR DAMAGE OF ANY KIND
OR CHARACTER ARISING OUT OF OR IN ANY WAY CONNECTED WITH OR IN ANY WAY RESULTING FROM THE ACTS,
ACTIONS OR OMISSIONS OF THE LENDER RELEASE PARTIES OCCURRING ON OR BEFORE THE EXECUTION DATE. THE
FOREGOING RELEASE IS INTENDED TO BE, AND IS, A FULL, COMPLETE AND GENERAL RELEASE IN FAVOR OF THE
LENDER RELEASE PARTIES WITH RESPECT TO ALL CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION AND OTHER
MATTERS DESCRIBED THEREIN, INCLUDING SPECIFICALLY, WITHOUT LIMITATION, ANY CLAIMS, DEMANDS OR
CAUSES OF ACTION BASED UPON ALLEGATIONS OF BREACH OF FIDUCIARY DUTY, BREACH OF ANY ALLEGED DUTY OF
FAIR DEALING IN GOOD FAITH, ECONOMIC COERCION, USURY, OR ANY OTHER THEORY, CAUSE OF ACTION,
OCCURRENCE, MATTER OR THING WHICH MIGHT RESULT IN LIABILITY UPON THE LENDER RELEASE PARTIES ARISING
OR OCCURRING ON OR BEFORE THE EXECUTION DATE. THE BORROWER RELEASE PARTIES UNDERSTAND AND AGREE
THAT THE FOREGOING GENERAL RELEASE IS IN CONSIDERATION FOR THE AGREEMENTS OF LENDER CONTAINED IN
THE MODIFICATION AGREEMENTS AND THAT THEY WILL RECEIVE NO FURTHER CONSIDERATION FOR SUCH RELEASE.
IN ADDITION, BORROWER AGREES NOT TO COMMENCE, JOIN IN, PROSECUTE OR PARTICIPATE IN ANY SUIT OR
OTHER PROCEEDING IN A POSITION WHICH IS ADVERSE TO ANY OF THE LENDER RELEASE PARTIES ARISING
DIRECTLY OR INDIRECTLY FROM ANY OF THE FOREGOING MATTERS. NOTWITHSTANDING ANYTHING CONTAINED IN
THIS AGREEMENT TO THE CONTRARY, IN THE EVENT THAT ANY SETTLEMENT EFFECTED UNDER THIS AGREEMENT IS
DEEMED VOID OR IS NO LONGER IN FORCE OR EFFECT, THE RELEASE HEREIN CREATED SHALL NOT BE RESCINDED
BUT SHALL REMAIN IN FULL FORCE AND EFFECT AND UNAFFECTED THEREBY. NOTHING HEREIN SHALL TRANSFER TO
TRANSFEREE, NOR SHALL TRANSFEREE ACCEPT OR ASSUME, ANY SUCCESSOR DEVELOPER OBLIGATION, LIABILITY OR
STATUS.

(b) BORROWER WARRANTS AND REPRESENTS TO LENDER THAT BORROWER HAS NOT SOLD, ASSIGNED,
TRANSFERRED, CONVEYED OR OTHERWISE DISPOSED OF ANY CLAIMS WHICH ARE THE SUBJECT OF THIS SECTION.
THE INCLUSION OF THIS PROVISION SHALL NOT BE DEEMED TO BE AN ADMISSION BY LENDER THAT ANY SUCH
CLAIMS EXIST.

 

12

 

12. Indemnification. Borrower shall, at Borrower’s own expense, and does hereby agree to, protect, indemnify,
reimburse, defend and hold harmless Lender and Transferee (if other than Lender) and their
respective directors, officers, agents, employees, attorneys,
successors and assigns from and against any and all liabilities (including strict liability),
losses, suits, proceedings, settlements, judgments, orders, penalties, fines, liens, assessments,
claims, demands, damages, injuries, obligations, costs, disbursements, expenses or fees, of any
kind or nature (including attorneys’ fees and expenses paid or incurred in connection therewith)
arising out of or by reason of the following: an incorrect legal description of the Property; any
failure or breach of any of Borrower’s or Guarantor’s representations, warranties and covenants
contained in this Agreement and all documents executed or delivered in connection therewith; claims
for brokerage commissions or leasing commissions asserted by any party claiming by, through or
under Borrower, Guarantor or Affiliates of any of them; claims asserted against the Property or
against Lender or the Transferee (if other than Lender) in connection with the Property which arose
prior to the date hereof including, without limitation, any management fees or fees for other
services provided in connection with the Property; any acts or omissions of Borrower or Guarantor
or any other Person (during the time the Property was owned by Borrower) at, on or about the
Property regarding the contamination of air, soil, surface waters or ground waters over, on or
under Property; the presence, whether past or present, of any Hazardous Materials (as such term is
defined in the Consolidation Agreement) on, in or under the Property; any past, present or future
events, conditions, circumstances, activities, practices, incidents, actions or plans involving the
manufacture, processing, distribution, use, transport, handling, treatment, storage, disposal,
cleanup, emission, discharge, seepage, spillage, leakage, release or threatened release of any
Hazardous Material on, in, under or from the Property, in connection with Borrower’s operations on
the Property, or otherwise; all of the foregoing regardless of whether within the control of
Lender, so long as any act, omission or occurrence that took place prior to the delivery of the
deed in the Foreclosure Action brought by Lender and the complete dispossession of Borrower from
the Property (the “Final Transfer Date”). Anything herein to the contrary notwithstanding,
no liability shall arise from any act, omission or occurrence concerning Hazardous Material that
occurs from and after the Final Transfer Date. This indemnification shall survive the execution
and delivery of this Agreement and the expiration or other termination of this Agreement.

13. Default. Any default by Borrower in the performance of its obligations herein contained or contained
in the Note Modification Agreement shall constitute a default pursuant to Section 13.01(y) of the
Consolidation Agreement and, subject to the provisions thereof, shall entitle Lender to exercise
all of its rights and remedies set forth in the Loan Documents. An Event of Default shall exist if
any representation or warranty made by Borrower or Guarantor in this Agreement or in any other Loan
Document, or in any report, certificate, financial statement or other instrument, agreement or
document furnished to Lender shall not have been true, accurate and complete as of the date the
representation or warranty was made and has a Material Adverse Effect; provided, however, if the
failure of any such representation or warranty to be true, accurate and complete is susceptible to
cure, then Borrower shall have thirty (30) days after notice from Lender to cure the failure of
such representation or warranty to be true, accurate and complete. The failure of Borrower to so
cure the failure of such representation or warranty to be true, accurate and complete within said
thirty(30) day period shall constitute an Uncured Event of Default.

 

13

 

14. Ratification and Confirmation.

(a) Borrower and Lender hereby expressly ratify and confirm (i) each of the Loan Documents,
and (ii) all rights, assignments, liens, pledges, security interests, and obligations thereunder,
including, without limitation, the assignments, liens, pledges and security interests of the Loan
Documents. Notwithstanding the foregoing or any other provision hereof to the contrary, nothing in
this Agreement is intended to be, and shall not be deemed or construed to be, a novation of the
Note or the Loan Documents.

(b) This Agreement constitutes a Loan Document. The provisions of Section 18.32 of the
Consolidation Agreement are incorporated by reference herein with the same effect as if they were
set forth herein in their entirety, but shall not be applicable to the obligations of Guarantor
hereunder except to the extent set forth in Section 7(e) above.

(c) Borrower expressly acknowledges and agrees that the Loan remains outstanding and that
Borrower continues to be fully bound by all of the terms and conditions of the Loan Documents as
set forth herein and therein. Except as otherwise expressly set forth herein, nothing contained in
this Agreement shall be deemed to be or effect (a) any waiver or release of any of the terms and
conditions of the Note or any of the other Loan Documents or of any existing or future defaults or
events of default thereunder, (b) an extension of time for the payment or performance of any
obligation to be performed on the part of Borrower or any other obligor thereunder, or (c) any
waiver or release of Lender’s rights to exercise any and all remedies with respect thereto, or the
effectiveness of any notices of intention to accelerate, notices of acceleration, or acceleration
given subsequent to the execution of the Modification Agreements.

15. Further Assurances. Borrower agrees to execute any instruments which, in the opinion of Lender, are necessary
or desirable to perfect such mortgages, liens, security interests, assignments and encumbrances.

16. Lift of Bankruptcy Stay. In the event of the filing of any voluntary or involuntary petition under the Bankruptcy
Code (11 U.S.C. § 101, et seq.) by or against Borrower, in consideration for Lender’s agreements
hereunder, neither Borrower nor any of its Affiliates, including, without limitation, Guarantor
shall assert, or request any other party to assert, that the automatic stay under 11 U.S.C. § 362
shall operate or be interpreted to stay, interdict, condition, reduce, prohibit, inhibit, or
interfere with the ability of Lender to enforce any rights it has by virtue of this Agreement, or
any other rights that Lender has, whether now or hereafter acquired, against Borrower or the
Property. Further, in consideration for Lender’s agreements hereunder, neither Borrower nor any of
its Affiliates, including, without limitation, Guarantor shall seek a supplemental stay or any
other relief, whether injunctive or otherwise, pursuant to 11 U.S.C. § 105 or any other provision
of the Bankruptcy Code to stay, interdict, condition, reduce, prohibit, inhibit, or interfere with
the ability of Lender to enforce any rights it has by virtue of this Agreement or otherwise against
Borrower or the Property. The waivers contained in this paragraph are knowingly and voluntarily
made, now and forever, and are a material inducement to Lender’s willingness to enter into this
Agreement and Borrower and Guarantor acknowledge and agree that no ground exists for equitable
relief which would bar, delay or impede the exercise by Lender of Lender’s rights and remedies
against Borrower or the Property. In the

 

14

 

event any property, any portion thereof or any interest therein (including, without
limitation, the Property) of Borrower becomes property of any bankruptcy estate or subject to any
state or federal insolvency proceeding, then, in consideration for Lender’s agreements hereunder,
Lender shall immediately become entitled, in addition to all other relief to which Lender may be
entitled, including, without limitation, under this Agreement or the Loan Documents, to obtain an
order from the Bankruptcy Court or other court of competent jurisdiction granting immediate relief
from the automatic stay pursuant to 11 U.S.C. § 362 permitting Lender to pursue its rights and
remedies against Borrower or the Property as provided under this Agreement, the Loan Documents, and
all other rights and remedies of Lender at law, in equity, or otherwise. In connection with such
an order, in consideration for Lender’s agreements hereunder, neither Borrower nor any of its
Affiliates, including, without limitation, Guarantor, shall contend or allege, in any pleading,
petition filed in any court proceeding, or otherwise, that Lender does not have sufficient grounds
for relief from the automatic stay. Any bankruptcy petition or other action taken by Borrower or
any of its Affiliates, including, without limitation, Guarantor (or any person claiming through
such Person) to stay, condition, or inhibit Lender from exercising its remedies are hereby admitted
by Borrower to be in bad faith, and Borrower further admits that Lender would have just cause for
relief from the automatic stay in order to take such actions authorized under law, equity, or
otherwise.

17. Conditions Precedent.

(a) In addition to those conditions described elsewhere in this Agreement, the following shall
be conditions precedent to the effectiveness of this Agreement:

(i) Prior to or simultaneously with the execution of this Agreement, Borrower
shall have executed, or caused to be executed, and delivered to Lender all documents
required by Lender in connection with the modification of the Loan contemplated
hereby, including without limitation, the Note Modification Agreement.

(ii) Prior to or simultaneously with the execution hereof, Borrower shall
furnish, or cause to be furnished, to Lender, at the Borrower’s expense, a title
policy (the “Modification Title Policy”), which Modification Title Policy
must show that the lien of the Consolidation Agreement is unimpaired,
notwithstanding this Agreement or the Note Modification Agreement and showing only
such exceptions accepted by Original Lender or Lender and otherwise be satisfactory
to Lender and Lender’s counsel.

(iii) Prior to or simultaneously with the execution of this Agreement, Lender
shall have received from legal counsel retained by Borrower and acceptable to Lender
an opinion of counsel (the “Legal Opinion”) covering the following matters:
(A) the due authorization of the Modification Agreements and any other documents
executed in connection herewith in accordance with their respective terms
(collectively, the “Modification Transaction Agreements”); (B) the validity
and enforceability of the Modification Transaction Agreements (subject to such
qualifications as shall be acceptable to Lender);

 

15

 

(C) compliance with applicable
usury laws of the State of New York; (D) the due organization
 and valid legal existence of Borrower, any entity owning at least a 20% equity
interest in the Borrower and the Guarantor; (E) the execution and delivery of the
Modification Transaction Agreements will not impair the security for the Loan
(including, but not limited to, the continued validity and enforceability of any
guaranty given as security for the Loan); and (F) such other matters incident to the
transaction contemplated herein as Lender may reasonably request.

(b) If for any reason any of the foregoing conditions precedent (or any other condition
precedent set forth in this Agreement) fails to occur within the time period specified, all
provisions of this Agreement, except for the release of the Lender Release Parties by the Borrower
Release Parties contained in Section 11 of this Agreement, shall terminate and be of no further
force or effect and the Loan shall remain payable as if this Agreement had never been executed.
The foregoing conditions precedent are for the sole benefit of Lender and may be waived only by
Lender by written agreement executed by Lender.

18. Usury Savings Clause. Section 18.16 of the Consolidation Agreement is hereby incorporated by reference in its
entirety as if fully restated herein.

19. OFAC. In consideration of Lender’s agreements set forth herein, Borrower represents and warrants
to Lender that neither Borrower nor to Borrower’s knowledge, any person owning an interest in
Borrower (except that knowledge shall not require any investigation into ownership of publicly
traded stock or other publicly traded securities), is a country, territory, individual or entity
named on a list maintained by the U.S. Treasury Department’s Office of Foreign Assets Control
(“OFAC”), or is a Specially Designated National or Blocked Person under the programs
administered by OFAC. If the foregoing representation and warranty shall at any time be or become
untrue or incorrect during the term of the Loan, an Event of Default shall be deemed to have
occurred.

20. No Waiver. Except as expressly provided herein, the execution of this Agreement by Lender does not and
shall not constitute a waiver of any rights or remedies to which Lender is entitled pursuant to the
Loan Documents, nor shall the same constitute a waiver of any Event of Default which may have
heretofore occurred or which may hereafter occur with respect to the Loan Documents. Lender
reserves the right to declare any existing default or Event of Default which subsequently comes to
the attention of Lender whether pertaining to a period prior to the Effective Date or on or after
the Effective Date.

21. Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all
parties hereto had signed the same document. All such counterparts shall be construed together and
shall constitute one instrument, but in making proof hereof it shall only be necessary to produce
one such counterpart.

 

16

 

22. Governing Law.

(a) This Agreement was negotiated, executed and delivered in the State of New York, and made
by Lender and accepted by Borrower in the State of New York, and the proceeds of the note delivered
pursuant hereto were disbursed from the State of New York, which state the parties agree has a
substantial relationship to the parties and to the underlying transactions
embodied hereby, and in all respects, including, without limiting the generality of the
foregoing, matters of construction, validity and performance, this Agreement and the obligations
arising hereunder shall be governed by, and construed in accordance with, the laws of the State of
New York applicable to contracts made and performed in such state (without regard to principles of
conflict of laws) and any applicable law of the United States of America, except that at all times
the provisions for the creation, perfection, and enforcement of the liens and security interests
created pursuant hereto and pursuant to the other loan documents shall be governed by and construed
according to the law of the state in which the property is located, it being understood that, to
the fullest extent permitted by the law of such state, the law of the State of New York shall
govern the construction, validity and enforceability of all loan documents and all of the
obligations arising hereunder or thereunder. Borrower hereby unconditionally and irrevocably and
knowingly and voluntarily waives, now and forever, 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.

(b) Any legal suit, action or proceeding against Lender or Borrower arising out of or relating
to this Agreement may at Lender’s option be instituted in any Federal or State Court in the City of
New York, County of New York, and Borrower knowingly and voluntarily 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 Borrower hereby irrevocably submits to the jurisdiction of any such court in any
suit, action or proceeding. Borrower does hereby designate and appoint CT Corporation System, 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 Borrower in the manner provided herein shall be deemed in every
respect effective service of process upon Borrower, in any such suit, action or proceeding in the
State of New York. Borrower (i) shall give prompt notice to Lender of any changed address of its
authorized agent hereunder, (ii) may at any time and from time to time designate a substitute
authorized agent with an office in New York, New York (which substitute agent and office shall be
designated as the person and address for service of process), and (iii) shall promptly designate
such a substitute if its authorized agent ceases to have an office in New York, New York or is
dissolved without leaving a successor.

23. Interpretation. Within this Agreement, words of any gender shall be held and construed to include any other
gender, and words in the singular number shall be held and construed to include the plural, unless
the context otherwise requires. The section headings used herein are intended for reference
purposes only and shall not be considered in the interpretation of the terms and conditions hereof.
The parties acknowledge that the parties and their counsel have reviewed and revised this
Agreement and that the normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation of this Agreement
or any exhibits or amendments hereto.

24. Amendment. The terms and conditions hereof may not be modified, altered or otherwise amended except by
an instrument in writing executed by all of the Loan Parties.

 

17

 

25. Entire Agreement. This Agreement and the instruments, documents and Agreements referenced in this Agreement
contain the entire Agreement between the parties hereto with respect to the modification of the
Loan and fully supersede all prior agreements and understanding between the parties pertaining to
such subject matter.

26. Successors and Assigns. The terms and conditions of this Agreement shall be binding upon and shall inure to the
benefit of the parties hereto, their successors and permitted assigns.

27. Cumulative Rights. The rights of Lender under this Agreement and the other Loan
Documents shall be separate, distinct and cumulative and none shall be given effect to the
exclusion of the others. No act of Lender shall be construed as an election to proceed under any
one provision herein or under any of the other Loan Document to the exclusion of any other
provision herein or in any other Loan Document. Lender shall not be limited to the rights and
remedies herein stated but shall be entitled to any and all rights and remedies afforded Lender
herein, in the other Loan Documents and as otherwise now or hereafter afforded by law.

28. Surviving Obligations. Any and all of the obligations imposed upon Borrower and
Guarantor in this Agreement that are to occur after the entry of the Foreclosure Order shall
survive entry of the Final Order, shall not be deemed in any way to merge into the Final Order and
shall survive the expiration or other termination of this Agreement.

29. Final Agreement. This Agreement represents the final agreement among the parties
and may not be contradicted by the parties. There are no unwritten oral agreements among the
parties.

30. WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT AGREES THAT ANY SUIT, ACTION,
OR PROCEEDING BROUGHT OR INSTITUTED BY ANY PARTY HERETO OR ANY SUCCESSOR OR ASSIGN OF ANY PARTY ON
OR WITH RESPECT TO THIS AGREEMENT, ANY OF THE OTHER DOCUMENTS EXECUTED IN CONNECTION WITH THIS
AGREEMENT, ANY OF THE LOAN DOCUMENTS OR WHICH IN ANY WAY RELATES DIRECTLY OR INDIRECTLY TO THE
OBLIGATIONS UNDER THIS AGREEMENT, THE OTHER DOCUMENTS EXECUTED IN CONNECTION WITH THIS AGREEMENT OR
ANY OF THE LOAN DOCUMENTS OR ANY EVENT, TRANSACTION OR OCCURRENCE ARISING OUT OF OR IN ANY WAY
CONNECTED THEREWITH, OR THE DEALINGS OF THE PARTIES WITH RESPECT THERETO, SHALL BE TRIED ONLY BY A
COURT AND NOT A JURY. EACH PARTY HEREBY EXPRESSLY KNOWINGLY AND VOLUNTARILY WAIVES, NOW AND
FOREVER, ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH SUIT, ACTION, OR PROCEEDING. THE BORROWER PARTIES
ACKNOWLEDGE AND AGREE THAT THIS PROVISION IS A SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT
BETWEEN THE PARTIES HERETO AND THAT LENDER WOULD NOT AGREE TO THE AGREEMENTS SET FORTH HEREIN IF
THIS WAIVER OF JURY TRIAL PROVISION WERE NOT A PART OF THIS AGREEMENT.

 

18

 

31. Relationship of Parties. Nothing contained in this Agreement or the other Loan
Documents constitutes or shall be construed as the formation of a partnership, joint venture,
tenancy-in-common, or any other form of co-ownership, between Lender and the Borrower Parties or
any other person or entity or the creation of any confidential or fiduciary relationship of any
kind between the Lender and the Borrower Parties or any other person or entity. The Borrower
Parties acknowledge and agree that Lender has at all times acted and shall at all times continue to
be acting only as a lender to Borrower within the normal and usual scope of activities of a lender.

32. Section 13 of the New York Lien Law. Pursuant to Section 13 of the Lien Law of
the State of New York, Borrower shall receive the advances, if any, secured hereby and shall hold
the right to receive such advances, if any, as a trust fund and shall apply such advances first to
the payment of the cost of any such improvement on the Real Estate before using any part of the
total of the same for any other purpose.

33. Severability. If any clause or provision of this Agreement is determined to be
illegal, invalid or unenforceable under any present or future law by the final judgment of a court
of competent jurisdiction, the remainder of this Agreement will not be affected thereby. It is the
intention of the parties that if any such provision is held to be illegal, invalid or
unenforceable, there will be added in lieu thereof a provision as similar in terms to such
provision as is possible and be legal, valid and enforceable.

34. Recitals. The “Recitals” set forth at the beginning of this Agreement are hereby
acknowledged to be true and correct by the parties and are incorporated into this Agreement.

35. Conflicts. Except as expressly modified pursuant to this Agreement, all of the terms, covenants and
provisions of the Loan Documents shall continue in full force and effect. In the event of any
conflicts or ambiguity between the terms, covenants and provisions of this Agreement and those of
the other Loan Documents, the terms, covenants and provisions of this Agreement shall prevail.

36. Further Amendment. Except as modified by this Agreement, the Consolidation Agreement and each of the covenants,
terms and conditions set forth therein are and shall remain in full force and effect and are hereby
ratified, confirmed and approved. It is expressly understood and agreed that the Consolidation
Agreement is only amended as set forth herein and any further amendment of the Consolidation
Agreement, if the parties hereafter shall agree to same, shall be by written agreement between the
parties hereto and any such agreement shall not be binding upon Lender unless same is fully
executed and unconditionally delivered by Lender and Borrower.

37. Time is of the Essence. Time is of the essence with respect to the payment,
performance and observance of each and every covenant, agreement, condition and obligation of
Borrower under this Agreement and the other Loan Documents, subject to applicable notice and cure
periods.

 

19

 

IN WITNESS WHEREOF, the Lender and Borrower hereto have executed and delivered this Agreement
to be effective as of the day and year first above written.

LENDER:

BANK OF AMERICA, NATIONAL ASSOCIATION, AS SUCCESSOR BY MERGER TO LASALLE BANK
NATIONAL ASSOCIATION, AS TRUSTEE FOR THE BENEFIT OF THE HOLDERS OF WACHOVIA BANK
COMMERCIAL MORTGAGE TRUST, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2007-WHALE 8

	 	 	 	 	 	 	 
	 	 	By and through CWCapital Asset Management LLC, solely in its
 capacity
as Special Servicer for the Holder
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kevin Thompson	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Kevin Thompson

Title:   Vice President	 	 

BORROWER:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	HENRY HUDSON HOLDINGS LLC, a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Henry Hudson Senior Mezz LLC, a Delaware limited liability
company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability
company, its sole member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a
Delaware corporation, its managing member
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	 /s/ Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name: Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:    Chief Financial Officer	 	 

 

20

 

The undersigned Guarantors and SPE Pledgors hereby (i) consent to the terms of the
Modification Agreements and (ii) join in this Agreement for the sole purposes of agreeing to the
obligations imposed on the undersigned Guarantors and SPE Pledgors in this Agreement, for which
obligations Guarantor and SPE Pledgors shall be bound as if Guarantor and SPE Pledgors are parties
to this Agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	HUDSON PLEDGOR LLC, a Delaware limited liability company, Guarantor and SPE Pledgor	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Henry Hudson Senior Mezz LLC, a Delaware limited liability

company, its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability

company, its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a
Delaware corporation, its managing member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name: Richard Szymanski

Title:   Chief Financial Officer	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	58th STREET BAR COMPANY LLC, a Delaware limited liability company,
Guarantor and SPE Pledgor	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Hudson Pledgor LLC, a Delaware limited liability company, its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Henry Hudson Senior Mezz LLC, a Delaware limited liability company, its
sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability company, its sole
member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its
managing member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	By:
	 	/s/ Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	Name: Richard Szymanski

Title:   Chief Financial Officer	 	 

 

21

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	HUDSON MANAGING MEMBER LLC, a Delaware limited liability company, Guarantor and SPE
Pledgor	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Henry Hudson Senior Mezz LLC, a Delaware limited liability

company, its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Morgans Group LLC, a Delaware limited liability

company, its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By:	 	Morgans Hotel Group Co., a
Delaware corporation, its managing member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	/s/ Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name: Richard Szymanski

Title:   Chief Financial Officer	 	 

The undersigned Guarantor hereby (i) consents to the terms of the Modification Agreements and
(ii) joins in this Agreement for the sole purposes of agreeing to the obligations imposed on the
undersigned Guarantor in this Agreement, for which obligations Guarantor shall be bound as if
Guarantor is a party to this Agreement.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	MORGANS GROUP LLC, a Delaware limited liability company, Guarantor	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	Morgans Hotel Group Co., a Delaware corporation, its managing
member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	By:
	 	 /s/ Richard Szymanski	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name: Richard Szymanski

Title:   Chief Financial Officer	 	 

 

22

 

SCHEDULE A

LEGAL DESCRIPTION OF PROPERTY

 

 

SCHEDULE “A”

UNIT 1 A/K/A EBC UNIT, LOT 1701

THE CONDOMINIUM UNIT (HEREINAFTER REFERRED TO AS THE “UNIT”) KNOWN AS UNIT 1, ALSO KNOWN AS EBC
UNIT, IN THE BUILDING (HEREINAFTER REFERRED TO AS THE “BUILDING”) KNOWN AS 353 WEST 57TH STREET
CONDOMINIUM AND BY THE STREET NUMBER 353 WEST 57TH STREET, NEW YORK, NEW YORK, SAID UNIT BEING
DESIGNATED AND DESCRIBED IN A CERTAIN DECLARATION DATED APRIL 11, 1985 MADE BY IRVING SCHATZ
PURSUANT TO ARTICLE 9-B OF THE REAL PROPERTY LAW OF THE STATE OF NEW YORK ESTABLISHING A PLAN
FOR CONDOMINIUM OWNERSHIP OF THE BUILDING AND THE LAND (HEREINAFTER REFERRED TO AS THE “LAND”)
UPON WHICH THE BUILDING IS SITUATE (WHICH LAND IS MORE PARTICULARLY DESCRIBED ON EXHIBIT A),
WHICH DECLARATION WAS RECORDED IN THE NEW YORK COUNTY OFFICE OF THE REGISTER OF THE CITY OF NEW
YORK (THE “CITY REGISTER’S OFFICE”) ON APRIL 24, 1985 IN REEL 902 PAGE 1 AND AMENDED BY FIRST
AMENDMENT TO DECLARATION DATED JANUARY 29, 1993 AND RECORDED MAY 11, 1993 IN REEL 1969 PAGE
2286, FURTHER AMENDED BY AMENDED AND RESTATED DECLARATION MADE BY HENRY HUDSON HOLDINGS LLC,
IRVING SCHATZ, ADRIENNE WECHSLER AND CHERYL HIRSCH DATED AS OF FEBRUARY 12, 1999 AND RECORDED
JULY 16, 1999 IN REEL 2913 PAGE 1753 AND AMENDMENT TO AMENDED AND RESTATED DECLARATION DATED AS
OF SEPTEMBER 30, 1999, RECORDED OCTOBER 27, 1999 IN REEL 2979 PAGE 2159 (WHICH DECLARATION, AS
AMENDED, IS HEREINAFTER REFERRED TO AS THE “DECLARATION”). SAID UNIT IS ALSO DESIGNATED AS TAX
LOT 1701 IN BLOCK 1048 OF SECTION 4 OF THE BOROUGH OF MANHATTAN ON THE TAX MAP OF THE REAL
PROPERTY ASSESSMENT DEPARTMENT OF THE CITY OF NEW YORK AND ON THE FLOOR PLANS OF THE BUILDING,
CERTIFIED BY BUTLER ROGERS BASKETT, ARCHITECTS, ON MARCH 27, 1985 AND FILED IN THE REAL
PROPERTY ASSESSMENT DEPARTMENT OF THE CITY OF NEW YORK ON APRIL 22, 1985 AS CONDOMINIUM PLAN
NO. 208 AND ALSO FILED IN THE NEW YORK COUNTY REGISTER’S OFFICE ON APRIL 24, 1985 AS
CONDOMINIUM MAP NO. 4326, AS AMENDED BY AMENDED FLOOR PLANS CERTIFIED BY BUTLER ROGERS BASKETT,
ARCHITECTS, ON DECEMBER 14, 1992, WHICH AMENDED FLOOR PLANS WERE FILED IN THE REAL PROPERTY
ASSESSMENT DEPARTMENT OF THE CITY OF NEW YORK ON MAY 5, 1993 AS CONDOMINIUM PLAN NO. 208A AND
ALSO FILED IN THE NEW YORK COUNTY REGISTER’S OFFICE ON MAY 11, 1993 AS CONDOMINIUM MAP NO.
5192.

TOGETHER WITH AN UNDIVIDED 44.05105% INTEREST IN THE COMMON ELEMENTS (AS SUCH TERM IS
DEFINED IN THE DECLARATION).

UNIT 2 A/K/A MODIFIED HOTEL UNIT, LOT 1702

THE CONDOMINIUM UNIT (HEREINAFTER REFERRED TO AS THE “UNIT”) KNOWN AS UNIT 2, ALSO KNOWN AS
MODIFIED HOTEL UNIT, IN THE BUILDING (HEREINAFTER REFERRED TO AS THE “BUILDING”) KNOWN AS 353
WEST 57TH STREET CONDOMINIUM AND BY THE STREET NUMBER 353 WEST 57TH STREET, NEW YORK, NEW YORK,
SAID UNIT BEING DESIGNATED AND DESCRIBED IN A CERTAIN DECLARATION DATED APRIL 11, 1985 MADE BY
IRVING SCHATZ PURSUANT TO ARTICLE 9-B OF THE REAL PROPERTY LAW OF THE STATE OF NEW YORK
ESTABLISHING A PLAN FOR CONDOMINIUM OWNERSHIP OF THE BUILDING AND THE LAND (HEREINAFTER
REFERRED TO AS THE “LAND”) UPON WHICH THE BUILDING IS SITUATE (WHICH LAND IS MORE PARTICULARLY
DESCRIBED ON EXHIBIT A), WHICH DECLARATION WAS RECORDED IN THE NEW YORK COUNTY OFFICE OF THE
REGISTER OF THE CITY OF NEW YORK (THE “CITY REGISTER’S OFFICE”) ON APRIL 24, 1985 IN REEL 902
PAGE 1 AND AMENDED BY FIRST AMENDMENT TO DECLARATION DATED JANUARY 29, 1993 AND RECORDED MAY
11, 1993 IN REEL 1969 PAGE 2286, FURTHER AMENDED BY AMENDED AND RESTATED DECLARATION MADE BY

CONTINUED...

 

Page 1 of 4 

 

SCHEDULE ‘A’ CONTINUED

HENRY HUDSON HOLDINGS LLC, IRVING SCHATZ, ADRIENNE WECHSLER AND CHERYL HIRSCH DATED AS OF FEBRUARY 12, 1999 AND RECORDED JULY 16, 1999 IN REEL 2913 PAGE
1753 AND AMENDMENT TO AMENDED AND RESTATED DECLARATION DATED AS OF SEPTEMBER 30, 1999 AND
RECORDED OCTOBER 27, 1999 IN REEL 2979 PAGE 2159 WHICH DECLARATION, AS AMENDED, IS HEREINAFTER
REFERRED TO AS THE “DECLARATION”). SAID UNIT IS ALSO DESIGNATED AS TAX LOT 1702 IN BLOCK 1048
OF SECTION 4 OF THE BOROUGH OF MANHATTAN ON THE TAX MAP OF THE REAL PROPERTY ASSESSMENT
DEPARTMENT OF THE CITY OF NEW YORK AND ON THE FLOOR PLANS OF THE BUILDING, CERTIFIED BY BUTLER
ROGERS BASKETT, ARCHITECTS, ON MARCH 27, 1985 AND FILED IN THE REAL PROPERTY ASSESSMENT
DEPARTMENT OF THE CITY OF NEW YORK ON APRIL 22, 1985 AS CONDOMINIUM MAP NO. 4326, AS AMENDED BY
AMENDED FLOOR PLANS CERTIFIED BY BUTLER ROGERS BASKETT, ARCHITECTS, ON DECEMBER 14, 1992, WHICH
AMENDED FLOOR PLANS WERE FILED IN THE REAL PROPERTY ASSESSMENT DEPARTMENT OF THE CITY OF NEW
YORK ON MAY 5, 1993 AS CONDOMINIUM PLAN NO. 208A AND ALSO FILED IN THE NEW YORK COUNTY
REGISTER’S OFFICE ON MAY 11, 1993 AS CONDOMINIUM MAP NO. 5192.

TOGETHER WITH AN UNDIVIDED 46.94011% INTEREST IN THE COMMON ELEMENTS (AS SUCH TERM IS
DEFINED IN THE DECLARATION).

UNIT 4 A/K/A STORE UNIT, LOT 1704

TERMS, COVENANTS AND CONDITIONS OF LEASE MADE BY AND BETWEEN ADRIENNE SCHATZ, ALSO KNOWN AS
ADRIENNE WECHSLER, AND CHERYL HIRSCH, AS LANDLORD, AND HENRY HUDSON HOLDINGS LLC, AS TENANT,
DATED AS OF JANUARY 1, 1999 AS REFERENCED IN MEMORANDUM OF LEASE AS OF SEPTEMBER 30, 1999, AND
RECORDED OCTOBER 27, 1999 IN REEL 2979 PAGE 2172 (THE “UNIT 1704 LEASE”), AS AMENDED PURSUANT
TO AMENDMENT TO LEASE BY AND BETWEEN ADRIENNE SCHATZ, ALSO KNOWN AS ADRIENNE WECHSLER AND
CHERYL HIRSCH, TOGETHER AS LANDLORD AND HENRY HUDSON HOLDINGS LLC, AS TENANT, DATED AS OF
SEPTEMBER 30, 1999.

THE LEASEHOLD ESTATE INSURED HEREIN COVERS PREMISES MORE PARTICULARLY BOUNDED AND
DESCRIBED AS FOLLOWS:

THE CONDOMINIUM UNIT (HEREINAFTER REFERRED TO AS THE “UNIT”) KNOWN AS UNIT 4, ALSO KNOWN AS
STORE UNIT IN THE BUILDING (HEREINAFTER REFERRED TO AS THE “BUILDING”) KNOWN AS 353 WEST 57TH
STREET CONDOMINIUM AND BY THE STREET NUMBER 353 WEST 57TH STREET, NEW YORK, NEW YORK, SAID UNIT
BEING DESIGNATED AND DESCRIBED IN A CERTAIN DECLARATION DATED APRIL 11, 1985 MADE BY IRVING
SCHATZ PURSUANT TO ARTICLE 9-B OF THE REAL PROPERTY LAW OF THE STATE OF NEW YORK ESTABLISHING A
PLAN FOR CONDOMINIUM OWNERSHIP OF THE BUILDING AND THE LAND (HEREINAFTER REFERRED TO AS THE
“LAND”) UPON WHICH THE BUILDING IS SITUATE (WHICH LAND IS MORE PARTICULARLY DESCRIBED ON
EXHIBIT A), WHICH DECLARATION WAS RECORDED IN THE NEW YORK COUNTY OFFICE OF THE REGISTER OF THE
CITY OF NEW YORK (THE “CITY REGISTER’S OFFICE”) ON APRIL 24, 1985 IN REEL 902 PAGE 1 AND
AMENDED BY FIRST AMENDMENT TO DECLARATION DATED JANUARY 29, 1993 AND RECORDED MAY 11, 1993 IN
REEL 1969 PAGE 2286, FURTHER AMENDED BY AMENDED AND RESTATED DECLARATION MADE BY HENRY HUDSON
HOLDINGS LLC, IRVING SCHATZ, ADRIENNE WECHSLER AND CHERYL HIRSCH DATED AS OF FEBRUARY 12, 1999,
RECORDED JULY 16, 1999 IN REEL 2913 PAGE 1753 AND AMENDMENT TO AMENDED AND RESTATED DECLARATION
DATED AS OF SEPTEMBER 30, 1999 AND RECORDED OCTOBER 27, 1999 IN REEL 2979 PAGE 2159 WHICH
DECLARATION, AS AMENDED, IS HEREINAFTER REFERRED TO AS THE “DECLARATION”). SAID UNIT IS ALSO
DESIGNATED AS TAX LOT 1704 IN BLOCK 1048 OF SECTION 4 OF THE BOROUGH OF MANHATTAN ON THE

CONTINUED...

 

Page 2 of 4 

 

SCHEDULE ‘A’ CONTINUED

 TAX
MAP OF THE REAL PROPERTY
 ASSESSMENT DEPARTMENT OF THE CITY OF NEW YORK AND ON THE FLOOR PLANS OF THE BUILDING, CERTIFIED
BY BUTLER ROGERS BASKETT, ARCHITECTS, ON MARCH 27, 1985 AND FILED IN THE REAL PROPERTY
ASSESSMENT DEPARTMENT OF THE CITY OF NEW YORK ON APRIL 22, 1985 AS CONDOMINIUM MAP NO. 4326, AS
AMENDED BY AMENDED FLOOR PLANS CERTIFIED BY BUTLER ROGERS BASKETT, ARCHITECTS, ON DECEMBER 14,
1992, WHICH AMENDED FLOOR PLANS WERE FILED IN THE REAL PROPERTY ASSESSMENT DEPARTMENT OF THE
CITY OF NEW YORK ON MAY 5, 1993 AS CONDOMINIUM PLAN NO. 208A AND ALSO FILED IN THE NEW YORK
COUNTY REGISTER’S OFFICE ON MAY 11, 1993 AS CONDOMINIUM MAP NO. 5192.

TOGETHER WITH AN UNDIVIDED 0.34577% INTEREST IN THE COMMON ELEMENTS (AS SUCH TERM IS
DEFINED IN THE DECLARATION).

UNIT 6 A/K/A TENTH FLOOR UNIT, LOT 1706

TERMS, COVENANTS AND CONDITIONS OF AMENDED AND RESTATED LEASE (OF UNIT LOT 1706) MADE BY AND
BETWEEN IRVING SCHATZ, AS LANDLORD, AND IAN SCHRAGER HOTELS LLC, AS TENANT, DATED AS OF
FEBRUARY 11, 1999, AS REFERENCED IN AMENDED AND RESTATED MEMORANDUM OF LEASE DATED AS OF
FEBRUARY 12, 1999, AND RECORDED MARCH 23, 1999 IN REEL 2841 PAGE 1872 (THE “UNIT LOT 1706
LEASE”), WHICH LEASE AMENDS, RESTATES AND SUPERSEDES A PRIOR LEASE MADE BY AND BETWEEN IRVING
SCHATZ, AS LESSOR, AND EDUCATIONAL BROADCASTING CORPORATION, AS LESSEE, DATED AUGUST 11, 1988,
AS REFERENCED IN MEMORANDUM OF LEASE DATED SEPTEMBER 1, 1988, AND RECORDED SEPTEMBER 30, 1988
IN REEL 1472 PAGE 883, AS ASSIGNED OF RECORD.

ASSIGNMENT AND ASSUMPTION OF LEASE MADE BY AND BETWEEN IAN SCHRAGER HOTELS LLC (F/K/A WEST 57TH
LLC), AS ASSIGNOR, AND HENRY HUDSON HOLDINGS LLC, AS ASSIGNEE, DATED AS OF FEBRUARY 12, 1999
AND RECORDED MARCH 23, 1999 IN REEL 2841 PAGE 1882.

THE LEASEHOLD ESTATE INSURED HEREIN COVERS PREMISES MORE PARTICULARLY BOUNDED AND
DESCRIBED AS FOLLOWS:

THE CONDOMINIUM UNIT (HEREINAFTER REFERRED TO AS THE “UNIT”) KNOWN AS UNIT 6, ALSO KNOWN AS
TENTH FLOOR UNIT IN THE BUILDING (HEREINAFTER REFERRED TO AS THE “BUILDING”) KNOWN AS 353 WEST
57TH STREET CONDOMINIUM AND BY THE STREET NUMBER 353 WEST 57TH STREET, NEW YORK, NEW YORK, SAID
UNIT BEING DESIGNATED AND DESCRIBED IN A CERTAIN DECLARATION DATED APRIL 11, 1985 MADE BY
IRVING SCHATZ PURSUANT TO ARTICLE 9-B OF THE REAL PROPERTY LAW OF THE STATE OF NEW YORK
ESTABLISHING A PLAN FOR CONDOMINIUM OWNERSHIP OF THE BUILDING AND THE LAND (HEREINAFTER
REFERRED TO AS THE “LAND”) UPON WHICH THE BUILDING IS SITUATE (WHICH LAND IS MORE PARTICULARLY
DESCRIBED ON EXHIBIT A), WHICH DECLARATION WAS RECORDED IN THE NEW YORK COUNTY OFFICE OF THE
REGISTER OF THE CITY OF NEW YORK (THE “CITY REGISTER’S OFFICE”) ON APRIL 24, 1985 IN REEL 902
PAGE 1 AND AMENDED BY FIRST AMENDMENT TO DECLARATION DATED JANUARY 29, 1993 AND RECORDED MAY
11, 1993 IN REEL 1969 PAGE 2286, FURTHER AMENDED BY AMENDED AND RESTATED DECLARATION MADE BY
HENRY HUDSON HOLDINGS LLC, IRVING SCHATZ, ADRIENNE WECHSLER AND CHERYL HIRSCH DATED AS OF
FEBRUARY 12, 1999 AND RECORDED JULY 16, 1999 IN REEL 2913 PAGE 1753 AND AMENDMENT TO AMENDED
AND RESTATED DECLARATION DATED AS OF SEPTEMBER 30, 1999, RECORDED OCTOBER 27, 1999 IN REEL 2979
PAGE 2159 WHICH DECLARATION, AS AMENDED, IS HEREINAFTER REFERRED TO AS THE “DECLARATION)”. SAID
UNIT IS ALSO DESIGNATED AS TAX LOT 1706 IN BLOCK 1048 OF SECTION 4 OF THE BOROUGH OF MANHATTAN
ON THE TAX MAP OF THE REAL PROPERTY ASSESSMENT DEPARTMENT OF THE CITY OF NEW YORK AND ON THE
FLOOR PLANS OF THE BUILDING, CERTIFIED BY BUTLER ROGERS BASKETT, ARCHITECTS, ON MARCH 27, 1985
AND FILED IN THE REAL PROPERTY ASSESSMENT DEPARTMENT OF THE CITY OF NEW YORK ON APRIL 22, 1985 AS CONDOMINIUM MAP NO.
4326, AS AMENDED BY AMENDED FLOOR PLANS CERTIFIED BY BUTLER ROGERS BASKETT, ARCHITECTS, ON
DECEMBER 14, 1992, WHICH AMENDED FLOOR PLANS WERE FILED IN THE REAL PROPERTY ASSESSMENT
DEPARTMENT OF THE CITY OF NEW YORK ON MAY 5, 1993 AS CONDOMINIUM PLAN NO. 208A AND ALSO FILED
IN THE NEW YORK COUNTY REGISTER’S OFFICE ON MAY 11, 1993 AS CONDOMINIUM MAP NO. 5192.

CONTINUED...

 

Page 3 of 4 

 

SCHEDULE ‘A’ CONTINUED

TOGETHER WITH AN UNDIVIDED 3.89067% INTEREST IN THE COMMON ELEMENTS (AS SUCH TERM IS
DEFINED IN THE DECLARATION).

ALL THAT CERTAIN PLOT, PIECE OR PARCEL OF LAND, SITUATE, LYING AND BEING IN THE BOROUGH OF
MANHATTAN, CITY, COUNTY AND STATE OF NEW YORK, BOUNDED AND DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE NORTHERLY SIDE OF 57TH STREET, DISTANT 20 FEET EASTERLY FROM THE
CORNER FORMED BY THE INTERSECTION OF THE EASTERLY SIDE OF NINTH AVENUE WITH THE NORTHERLY
SIDE OF 57TH STREET;

RUNNING THENCE EASTERLY ALONG THE SAID NORTHERLY SIDE OF 57TH STREET, 155 FEET;

THENCE NORTHERLY PARALLEL WITH NINTH AVENUE, 200 FEET 10 INCHES TO THE SOUTHERLY SIDE OF
58TH STREET;

THENCE WESTERLY ALONG THE SAID SOUTHERLY SIDE OF 58TH STREET, 135 FEET TO A POINT DISTANT 40
FEET EASTERLY FROM THE CORNER FORMED BY THE INTERSECTION OF THE SOUTHERLY SIDE OF 58TH STREET
WITH THE EASTERLY SIDE OF NINTH AVENUE;

THENCE SOUTHERLY PARALLEL WITH NINTH AVENUE AND PART OF THE DISTANCE THROUGH A PARTY WALL,
100 FEET 10 INCHES;

THENCE WESTERLY PARALLEL MORE OR LESS WITH 58TH STREET, 20 FEET; AND

THENCE SOUTHERLY AND PART OF THE WAY THROUGH ANOTHER PARTY WALL, 100 FEET TO THE
NORTHERLY SIDE OF 57TH STREET, THE POINT OR PLACE OF BEGINNING.

TOGETHER WITH THE BENEFIT OF THAT FINAL CERTIFICATE OF ELIGIBILITY FOR INDUSTRIAL AND
COMMERCIAL INCENTIVE BENEFITS MADE BY THE COMMISSIONER OF FINANCE OF THE CITY OF NEW YORK TO
HENRY HUDSON HOLDINGS, LLC, DATED MARCH 30, 2001 AND RECORDED DECEMBER 26, 2001 IN REEL 3415
PAGE 573.

 

Page 4 of 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]